Professors question FCC decision

The Federal Communications Commission voted June 2 by a 3-2 margin to adopt a series of revisions on current policy regarding the consolidation of national media. Considered a victory by FCC Chairman Michael Powell, son of Secretary of State Colin Powell, the new adjustments could allow one corporation to reach as many as 45 percent of U.S. households by way of television. \nBut IU Telecommunications professor Makana Chock said this ruling could raise concerns as to who will cover the controversial issues.\n"The story isn't being covered by major news organizations; the majority of the news has come from grass roots organizations like alternet.org or commoncause.org," Chock said\nShe said the issue of the FCC's ruling on deregulation limits the varied news sources that keep the public informed.\n"The overall concern is diversity of voices; it affects both news and entertainment," she said.\nMany media companies suggested the new regulations were needed to allow them to compete due to the mass use of the Internet, satellite television and cable TV. The new regulations could allow one organization to control up to three television stations in a single market, while also lifting bans on "cross-ownership" in markets of nine stations or more. The new reforms would ban any of the four major television organizations, NBC, ABC, Fox, CBS, from merging, as Powell said, "advancing the goal of promoting the widest dissemination of viewpoints."\nThe revisions have been hotly criticized by both Democrats and Republicans, consumer groups and even media powerhouses such as Ted Turner, founder of Turner Network Television, and Barry Diller, former chairman of Vivendi Universal Entertainment. Critics claim the changes made by the FCC grant favors corporations who need them the least. \n"Unless your office is in Manhattan, I don't think this levels the playing field," said Jeffrey Smulyan, CEO of Indianapolis-based Emmis Communications, in an article published in the Indianapolis Star last Tuesday. \nTelecommunications professor Herbert Terry said he believes the effects of the FCC ruling could be felt as close as Indianapolis. \n"It is most likely going to affect the Indianapolis television market," Terry said. "There is likely to be some consolidation or some ownership change. There's already a general rumor that Gannett will look into buying an Indianapolis station." \nTerry said the courts most likely will keep larger companies in check.\n"An important thing to remember is that it is just an FCC decision; parties who think they went too far or didn't go far enough will go to court." \nBut for most mergers, he said they will wait to take place until after the courts have made their decisions.\nChairman of the Senate Commerce Committee John McCain, R-Ariz., weighed in Wednesday on the decision.\n"I have a long voting record in support of deregulation, [but] the business of media ownership, which can have such an immense effect on the nature and quality of our democracy, is too important to be dealt with so categorically,'' he said.\nMcCain said he would put language in an upcoming bill to clarify that the FCC should have the authority to strengthen as well as relax ownership restrictions if that serves the public interest.\nThe Senate Commerce Committee will consider a proposal to roll back a new regulation allowing companies to own television stations reaching nearly half the nation's viewers, McCain said Wednesday.\nPowell has said if Congress is unhappy with the outcome, they should reconsider the responsibilities his agency was given.\nThese revisions come in light of the 1996 Telecommunications Act which changed the maximum number of radio stations owned by one organization from 40 to 1,200, allowing for the emergence of networks such as Clear Channel Communications. The 1996 act also asked that the FCC consider its ownership and cap limits every two years.\nAfter 20 months of research and the creation of the Media Ownership Working Group, Powell and other FCC Commissioners were able to analyze how Americans used the media as well as how different markets functioned. The FCC found that corporations who owned both a newspaper and television station in a single market provide, "dramatically better news coverage in terms of quantity and quality," by producing over 50 percent more news and outpacing non-newspaper owned television stations in news awards.\nThe Associated Press contributed to this story.