FCC TO REVIEW CROSS-OWNERSHIP BAN IN MAY

By: Todd Shields Newspapers Await Nod From Chairman Powell


Newspaper industry figures say they are pleased that federal
regulators soon will examine whether to retain a ban on joint
ownership of newspapers and broadcast stations. Federal
Communications Commission Chairman Michael Powell on Thursday
said that beginning in May, his agency will begin to review the
ban it put into place in 1975.

The comment came in the Republican appointee's first public
appearance before Congress. The pledge follows years of inaction
under Democratic administrations.

"I'm a happy camper," said Shaun Sheehan, a Washington-based vice
president for the Tribune Co. of Chicago. "I just want it moving
down the track. ... Now we have a chance."

Tribune has a large stake in the outcome, since deals including
last year's purchase of Times Mirror Co. have left it holding
newspaper-television combinations in four cities. It could be
forced to sell stations or newspapers as broadcast licenses come
up for renewal.

Eliminating the cross-ownership rule could have broad effects
throughout the industry, said John Sturm, president of the
Newspaper Association of America. Newspapers in markets large and
small would be free to use television and radio as a way to reach
consumers with the information produced by large staffs of local
reporters, Sturm said.

"We are very happy the commission seems to finally be getting
around to what they said they'd be doing last year," Sturm said.

The FCC last year said it was poised to examine the cross-
ownership rule, but it has yet to begin doing so. Powell's pledge
means the commission in May will give notice that it is embarking
on a ruling. The process likely would lead to decisive votes
later this year or early next year.

The rule bars common ownership of newspapers and radio or
television stations in the same market. It was meant to ensure
that a diversity of voices reaches the public. Newspaper
executives and other opponents say that role is outmoded, since
consumers now have many options not available in the 1970s,
including cable systems, satellite television, and the Internet.

On Thursday Powell stated succinctly how he wants to treat
regulations. "Validate the purpose of the rule in a modern
context or eliminate it," he said. "Simple as that."

Democrats who dominated the FCC until the recent change of
administration generally have argued for keeping the rule,
perhaps with amendments that would allow cross-ownership in large
markets. Republicans who now control the FCC generally have been
strong skeptics of the rule, with some arguing for its
elimination.



Todd Shields (tshields@editorandpublisher.com) is the Washington editor for E&P.



Copyright 2001, Editor & Publisher.