Broadcast Services; Television Station Ownership

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 73

[MM Docket No. 91-221, FCC 95-97]

Broadcast Services; Television Station Ownership

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Commission eliminates two of its television network rules,

the ``network station ownership'' rule, and the ``secondary

affiliation'' rule. This action is taken because a review of the record

in this proceeding indicates that changes in the television marketplace

have rendered these rules obsolete. Thus, the action is taken to ensure

that the Commission's rules are as current and effective as possible.

EFFECTIVE DATE: April 26, 1995.

FOR FURTHER INFORMATION CONTACT:

Dan Bring, Mass Media Bureau, (202) 739-0770, or Roger Holberg, Mass

Media Bureau, (202) 776-1653.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Report and Order

in MM Docket No. 91-221, FCC 95-97, adopted March 7, 1995, and released

March 7, 1995. The complete text of this Report and Order is available

for inspection and copying during normal business hours in the FCC

Reference Center (Room 239), 1919 M Street, N.W., Washington, D.C., and

also may be purchased from the Commission's copy contractor,

International Transcription Service, at (202) 857-3800, 2100 M Street,

N.W., Suite 140, Washington, D.C. 20037.

Synopsis of the Report and Order

1. The Commission eliminates two of its network rules, 47 CFR

Sec. 73.658(f), the ``network station ownership'' rule, and

Sec. 73.658(1), the ``secondary affiliation'' rule. The network station

ownership rule prohibits network ownership of television broadcast

stations in markets that have so few stations, or stations of such

unequal desirability that ``competition would be substantially

restrained'' by permitting network ownership. The secondary affiliation

rule limits secondary network affiliations in markets where two

stations have affiliated with two of the three ``traditional''

networks, and there is at least one independent station with comparable

facilities. In these circumstances, Sec. 73.658(1) requires a third

network seeking an affiliate in the market to offer its programming

first to the independent station.

2. The Notice of Inquiry in this proceeding (56 FR 40847, August

16, 1991) sought comment on the implications of the growth of

competition in the video marketplace for the Commission's regulatory

policies. The Notice of Proposed Rule Making in this proceeding (57 FR

28163, June 24, 1992) sought comments on several long-standing

structural rules that have governed the television industry, proposed

alternative means of lessening the regulatory burden on the television

broadcasting industry, and proposed repeal of the dual network rule 47

CFR 73.658(g), the network station ownership rule, and the secondary

affiliation rule. Based on the record in this proceeding, this Report

and Order eliminated the network station ownership rule and the

secondary affiliation rule.

3. The network station ownership rule was intended to increase the

availability of programming to viewers, prevent domination of smaller

markets by networks, and encourage the creation and growth of new

networks by preventing existing networks from [[Page 15689]] ``bottling

up'' the best facilities. The rule was first applied to television in

1946 when there were only six television stations in the United States.

The Commission finds that because of the growth in the number of

television stations and in network programming made available by cable

and satellite home dishes, the network station ownership rule is no

longer necessary to increase the availability of video programming to

viewers or further the creation of new networks. Therefore, the

Commission eliminates Sec. 73.658(f) of its rules.

4. The secondary affiliation rule was adopted by the Commission in

1971 (36 FR 6507, April 16, 1971) in order to promote development of

UHF television stations. While commenters were divided as to the

continued need for the secondary affiliation rule, the Commission is

persuaded that, due to improvements to UHF reception and the increased

availability of programming, this rule is no longer needed to ensure

the availability of competitive programming to unaffiliated stations.

The Commission thus eliminates Sec. 73.658(1) of its rules.

Administrative Matters

Final Regulatory Flexibility Analysis

5. Pursuant to the Regulatory Flexibility Act of 1980, 5 U.S.C.

605, the Commission believes that this action will eliminate rules no

longer required by the public interest in view of changes in the video

marketplace since their adoption. Additionally, their elimination will

make over-the-air television better able to compete in the current, and

future, video environment. The complete Final Regulatory Flexibility

Act Statement may be found following paragraph 26 of the full text of

this Report and Order.

Ordering Clauses

6. It Is Therefore Ordered that, pursuant to the authority

contained in Sections 4(i) and 303(r) of the Communications Act of

1934, as amended, 47 U.S.C. Sections 154(i) and 303(r), Part 73 of the

Commission's Rules, 47 CFR part 73, is amended as set forth below.

List of Subjects in 47 CFR Part 73

Television broadcasting.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

Amendatory Revisions

Part 73 of Title 47 of the U.S. Code of Federal Regulations is

amended as follows:

PART 73--RADIO BROADCAST SERVICES

1. The authority citation for Part 73 continues to read as follows:

Authority: 47 U.S.C. 154, 303, 334.

Sec. 73.658 [Amended]

2. Section 73.658 is amended by removing and reserving paragraphs

(f) and (l).

[FR Doc. 95-7441 Filed 3-24-95; 8:45 am]

BILLING CODE 6712-01-M