FCC Trims Plan to Expand Radio Station Ownership

WASHINGTON â€”  Bowing to pressure from consumers, small businesses and Congress, the Federal Communications Commission on Wednesday scaled back plans to allow increased ownership of radio stations by individual companies.

By a 5-0 vote, the commission increased ownership limits from their present level of 12 AM and 12 FM stations nationwide to 18 AM and 18 FM stations. In two years, the limits will increase to 20 AM and 20 FM stations. In addition, the commission will allow companies already at the ownership limits to hold less than 50% interests in three additional stations if those stations are controlled by minority group members or small businessses.

Wednesday’s action represents a considerable backing down by the commission from its vote in March to increase the ownership limits to 30 AM and 30 FM stations. Commission Chairman Alfred C. Sikes, known for his efforts to deregulate the nation’s telephone and communications industries, had urged the vastly expanded limits to help broadcasters cut costs and weather the industry’s worst recession in decades.

The FCC’s decision to modify its earlier vote came after congressional Democrats threatened to introduce legislation to override the commission’s higher limits. Consumers, minorities and small broadcasters had complained that the new rules would force small broadcasters out of business and promote media giants.

Rather than take on Congress, the commission postponed the Aug. 1 effective date of its first set of new limits and decided to reconsider the matter.

Andrew C. Barrett, the commission’s only black member and the lone dissenter in the earlier vote, said Wednesday that the latest limits are a reasonable compromise between the need to help financially strapped broadcasters and the need to promote programming diversity.

Consumer groups hailed the decision as well. “It’s a victory for small business and consumers who have the right to expect diversity in opinion and programming,� said Andrew Schwartzman, executive director of the Media Access Project, a consumer action group monitoring the entertainment and communications industries.

The new rules also provide that a single owner may hold up to two AM and two FM stations in markets that have 15 or more stations. In markets with fewer than 15 stations a single owner can hold up to a total of three stations, but no more than two of each type.