FCC Turmoil Creates Guessing Game
Sun Feb 23, 1:34 PM ET Add Business URL:http://story.news.yahoo.com/news?tmpl=story2&cid=568&ncid=749&e=5&u=/nm/20030223/bs_nm/media_fcc_dc
By Jeremy Pelofsky
WASHINGTON (Reuters) - The split at the Federal Communications Commission over deregulating the telephone industry has left some lobbyists scratching their heads over the impact on upcoming decisions to ease ownership and concentration limits in the media industry.
FCC Commissioner Kevin Martin, a Republican, cast the deciding vote last week to preserve rules requiring dominant local phone carriers to share their networks with rivals, bucking Chairman Michael Powell, who favored deregulation.
Unclear is whether Martin's vote with the Democratic minority at the FCC was a one-time event or if he will become a pivotal swing vote at the five-member agency.
The FCC is expected to decide in the coming months whether to ease rules limiting how much of the national television or cable audience one entity can reach as well as bans on common ownership of television and radio stations or television stations and newspapers in a single market.
"Lots of lobbyists are asking what is Kevin going to do on media ownership," said Blair Levin, a former FCC chief of staff and now an analyst at Legg Mason. "He has put himself in the position of being the swing vote."
The FCC chairman is selected by the president and usually aims for a consensus on policy that can attract a unanimous vote or at least a 3-2 majority along party lines. But Martin cast the vote to keep rules on sharing telephone networks, worrying some proponents of easing other rules.
"It puts a cloud over everything," said one media industry lobbyist. "We are now facing a potentially Democratic commission. The Republicans have potentially lost control of this agency."
And the stakes are high since many companies want the rules relaxed so they can expand their businesses. Tribune Co. (TRB.N), owner of newspapers and TV stations, has been anxious to expand and lobbying hard to eliminate the ban on owning papers and TV stations in a market.
Meanwhile Viacom Inc. (VIAb.N), owner of the CBS and UPN networks, and News Corp. (NCP.AX), which runs the Fox networks, have pushed to eliminate the limit that prevents them from reaching more than 35 percent of the national TV audience.
MARTIN ON MEDIA OWNERSHIP
The split among Republicans on the FCC has garnered banner newspaper headlines and criticism from lawmakers, and forced those who lobby the agency to rethink their approaches.
"Majorities of the commission may combine and recombine," said one cable industry lobbyist. "We will be more vigilant and work carefully to make our case to every one of the five commissioners."
Martin said the vote last week was not necessarily a precursor of future splits among Republicans on upcoming decisions.
"I think the commissioners end up reviewing the merits of each issue at the time," Martin told Reuters in a telephone interview. "I don't think necessarily (last week's dispute) will have an impact."
Chairman Powell and Martin do agree on eliminating at least one media ownership restriction, the rule that limits a company owning a television station and newspaper in the same market.
Powell also supports more flexible market share caps on cable and television operators -- presently 30 percent for cable operators and 35 percent for television station owners -- but Martin so far has not made public his views on the limits.
The two Democrats on the commission are expected to oppose easing media ownership limits citing fears it could threaten diversity and local programming. Powell is expected to be joined by Republican Commissioner Kathleen Abernathy to vote to ease the limits.
That puts the spotlight again on Martin, who would hold the deciding vote.
"Commissioner Martin is sitting in the cat-bird seat," said another communications lobbyist. |
