Rep. Fred Upton wants to ease ownerships restrictions

Thursday, Feb. 16, 2006
Lawmaker Wants Radio Ownership Rules Relaxed

Rep. Fred Upton, a House Commerce Committee member and communications subcommittee chairman, has asked FCC Chairman Kevin Martin to launch a proceeding to raise the maximum number of stations one company can own in certain U.S. markets.
In a Feb. 9 letter, the Michigan Republican suggested that the ownership limit in markets with 60 or more stations be increased from eight to 10 stations. He also recommended that the limit in markets with 75 or more stations be raised to 12.
"A modest increase would not result in undue concentration," Upton said. "Even with such modest relaxation, radio will remain an industry with very diverse ownership that falls far short of a level of concentration that would be cause for concern." He also believes relaxing the rules could lead to more program diversity. "Owners would be able to experiment with new formats that improve service to underserved segments of the population, or bring a new service to the marketplace for the first time."
Upton also stressed that in just the 10 years since the rules were eased with the Telecommunications Act of 1996, new competitors have emerged to challenge radio. "If free terrestrial radio is to remain a healthy industry capable of fulfilling its public interest responsibilities while competing against an increasing number of competitors, it must be able to grow," said the congressman. "I believe that the modest increases discussed in this letter will provide room for that growth."
Upton repeated his call for relaxed radio ownership rules during a speech delivered Thursday at Washington, DC's Media Institute. He even suggested that the industry might be better off with no ownership limits. "Today's marketplace makes a compelling argument for simply eliminating local terrestrial broadcast ownership caps, except perhaps in the smallest markets," he said. "But those of you who know me understand that I am a pragmatist; such a step will not pass the test of politics in Washington, DC today. I am making a far more targeted proposal because modernization can and should get done with year."
Upton continued, "Setting aside for just a moment the competition from other media, especially satellite radio, there is absolutely no public good to justify the same local radio ownership cap for Cincinnati as for New York City, Chicago and Los Angeles. Let's remember that ownership diversity is only a proxy for viewpoint diversity; America's largest markets are certainly not lacking in diversity of perspective and entertainment."
Thursday, Feb. 16, 2006
Lawmaker Wants Radio Ownership Rules Relaxed

Rep. Fred Upton, a House Commerce Committee member and communications subcommittee chairman, has asked FCC Chairman Kevin Martin to launch a proceeding to raise the maximum number of stations one company can own in certain U.S. markets.
In a Feb. 9 letter, the Michigan Republican suggested that the ownership limit in markets with 60 or more stations be increased from eight to 10 stations. He also recommended that the limit in markets with 75 or more stations be raised to 12.
"A modest increase would not result in undue concentration," Upton said. "Even with such modest relaxation, radio will remain an industry with very diverse ownership that falls far short of a level of concentration that would be cause for concern." He also believes relaxing the rules could lead to more program diversity. "Owners would be able to experiment with new formats that improve service to underserved segments of the population, or bring a new service to the marketplace for the first time."
Upton also stressed that in just the 10 years since the rules were eased with the Telecommunications Act of 1996, new competitors have emerged to challenge radio. "If free terrestrial radio is to remain a healthy industry capable of fulfilling its public interest responsibilities while competing against an increasing number of competitors, it must be able to grow," said the congressman. "I believe that the modest increases discussed in this letter will provide room for that growth."
Upton repeated his call for relaxed radio ownership rules during a speech delivered Thursday at Washington, DC's Media Institute. He even suggested that the industry might be better off with no ownership limits. "Today's marketplace makes a compelling argument for simply eliminating local terrestrial broadcast ownership caps, except perhaps in the smallest markets," he said. "But those of you who know me understand that I am a pragmatist; such a step will not pass the test of politics in Washington, DC today. I am making a far more targeted proposal because modernization can and should get done with year."
Upton continued, "Setting aside for just a moment the competition from other media, especially satellite radio, there is absolutely no public good to justify the same local radio ownership cap for Cincinnati as for New York City, Chicago and Los Angeles. Let's remember that ownership diversity is only a proxy for viewpoint diversity; America's largest markets are certainly not lacking in diversity of perspective and entertainment."