• by Frank Saxe , January 14, 2003

The possibility of the Federal Communications Commission allowing further deregulation of television, radio and newspaper appears to be slimming.

Chairman of the Commission Michael Powell told a Senate hearing yesterday that he has concerns the media landscape is already controlled by too few companies.

“I don’t think anything that will come out of the commission will allow one person to own everything,” chairman Michael Powell told the Senate Commerce Committee during a marathon three-and-a-half hour hearing. Although the main focus of the hearing was to examine how the FCC is handling telephone and Internet issues, the discussion never strayed far from media consolidation, as members from both parties are growing increasingly frustrated with the impact of the 1996 Telecommunications Act, which spawned the multi-media conglomerates. The FCC is currently reviewing its media rules, and is expected to announce by late spring whether it will allow further de-regulation in the media.

“We’re heading exactly in the wrong direction in these areas you need to have your foot on the break not your hand on the throttle,” Sen. Byron Dorgan (D-ND) told the five FCC commissioners.

“It seems to me that there is very real possibility that what the Commission will do is shift policy that basically one company could ever thing in town,” continued Sen. Ron Wyden (D-Ore.) “ I’d like to hear how the sky’s-the-limit policy help the consumer, because today’s telecommunications policy.”

Sen. Barbara Boxer (D-Calif.) agreed. “We could have a situation where just a couple of countries own all the news outlets. That’s not healthy.”

Powell conceded he is “troubled” by consolidation, which has seen companies such as the San Antonio-based Clear Channel grow its radio portfolio from 40 to 1,240 stations in the last six years. “I am concerned about concentration, particularly in radio, and I think we are not constructing a regime that will not provide a meaningful filter for undue concentration.” Powell told the Senate that he has taken a more hard line approach to review proposed mergers than his predecessor, saying he has sent “a number” of deals before a judge.

Public advocates say that since media groups were allowed to consolidate, the quality of programming has diminished, going from boring to bland, while news outlets dwindle in number. Powell countered that history may not be the best guide. “The golden age of television was dominated by three major networks,” he said, pointing out that in 1960 the networks did just 15 minutes of news each night, about the same amount local stations aired.

What became clear during the hearing was that there is little support for further deregulation at the FCC. “I am skeptical that some of the more melodramatic versions of what's likely to come out of the Commission are actually an accurate reflection of what the majority of the commission thinks,” said Powell.

Even in the Republican-controlled Congress, it seems the appetite for further deregulation has also waned, as several senators went on record as opposing further relaxation of the rules, including such stalwarts as Sen. Kay Bailey Hutchison (R-Tex.). “I think it is most important that we promote local and diverse voices encouraging local competition and preventing one company from having too much control,” she said. Even conservative Sen. Trent Lott (R-Miss.) said he was worried about the “deterioration” of localism.

Action by the FCC should be taken nonetheless, said Powell, saying the other option would be the courts. “If I really didn’t care about media ownership, I’d do nothing and the courts would vacate every last rule before I’m done. That’s where we’re heading at the moment.”

Advertising buyers are most worried that the consolidated media groups will unilaterally increase rates, something FCC studies indicate has not happened so far. There is debate in the advertising community over whether to take a stand in the FCC’s decision-making process. Meanwhile, the Commission will begin a series of public hearings to be held around the country later this week, with a hearing slated for Thursday at the Columbia Law School in New York.