By Gautham Nagesh
WASHINGTON--The Federal Communications Commission on Thursday
said it is open to allowing greater foreign investment in radio and
TV stations, but may in exchange ask companies to free up more
airwaves for wireless broadband.
The FCC voted unanimously on Thursday to allow exceptions to the
decades-old limit of 25% for foreign ownership of TV and radio
stations, arguing the move would open up new sources of capital and
boost diversity among station owners.
New Chairman Tom Wheeler said the FCC would consider each
request on its own merits, including whether the transaction would
free up more spectrum to satisfy exploding demand for mobile
broadband.
"From my point of view, efficient use of spectrum is key to
considering applications for what will result from this decision,"
Mr. Wheeler said, adding that deals would also be evaluated for
their impact on diversity in media ownership and service to local
communities.
"I encourage all that want to take advantage of this decision to
keep all of the policy goals in mind when and if they want to take
advantage of this," Mr. Wheeler said.
The move comes at a time of frenzied consolidation in the TV
station market and could have immediate implications for Mexican
media conglomerate Grupo Televisa SAB, which owns 8% of the
Spanish-language broadcaster Univision Communications in a deal
structured around the foreign-ownership cap. Televisa could now be
a potential suitor for Univision, which is controlled by private
equity firms but is said to be considering an initial public
offering.
The FCC has long had the ability to waive the 25% foreign
ownership cap for individual companies, but in practice has rarely
used it. Mr. Wheeler said the declaratory ruling is "far from a
rubber stamp" and that every application to exceed the cap would be
subject to a detailed review.
He suggested some deals would be viewed more favorably, such as
allowing broadcasters to explore shared spectrum arrangements or
letting businesses move from UHF (channels 13 and up) to VHF
(channels 2 to 13) airwaves. Several commissioners suggested that
increasing foreign ownership would boost diversity among media
owners, which has declined in recent years.
Mr. Wheeler's comments, among the first substantive statements
since he became chairman, indicate he wants to make sure enough
broadcasters participate in the voluntary spectrum auctions
scheduled for next year. At that extremely complex proceeding,
stations will consider bids to either go out of business or have
their station repackaged into another frequency.
To be considered a success, the auction must raise enough
revenue to compensate broadcasters and fund the creation of a $7
billion communications network for public safety officials. Most
stations affiliated with the Big Four networks--ABC, NBC, CBS and
Fox--are not expected to participate, putting the focus on smaller
local broadcasters and those that target ethnic, religious and
rural audiences.
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