Lawmaker asks FCC to delay media ownership vote

By Peter Kaplan

WASHINGTON (Reuters) - The chairman of the House committee that oversees the Federal Communications Commission urged the agency on Thursday to take more time before voting on a plan to loosen media ownership restrictions in large U.S. cities.

Energy and Commerce Committee Chairman John Dingell said in letter to the FCC that a timetable calling for a December 18 vote on the new rules was "insufficient to allow for meaningful comment and evaluation of comments on the proposed rule."

"Amending media ownership regulations, including a rule that has been on the books for more than three decades, is a grave matter that deserves the Commission's full and fair consideration," the Michigan Democrat wrote in a letter to FCC Chairman Kevin Martin.

Dingell's letter did not specify how much longer the FCC should take to consider the issue. A bipartisan group of senators has introduced legislation in that chamber that would push back any decision by 90 days.

Dingell's letter comes two days after Martin outlined his proposed changes, which would relax the FCC's ban on the cross-ownership of newspapers and broadcast stations in the 20 biggest U.S. cities.

Martin has said the rule changes are small and would help bolster the financial health of the newspaper industry by allowing owners in the top markets to buy a TV or radio station.

Long-standing FCC rules restrict media cross-ownership and ban ownership of a newspaper and a TV or radio station in the same market, unless the FCC grants a waiver.

Rules approved by the FCC in 2003 to scale back the ownership restrictions were struck down by the federal courts.

If cross-ownership limits were eased or lifted, it could help some investors, such as real estate tycoon Sam Zell, who is leading a proposed leveraged buy-out of media group Tribune Co.

Zell has already asked the FCC to reaffirm waivers that allow Tribune to own daily newspapers and broadcast outlets in some markets. The timing of the FCC's decision could be important, since Tribune has said it expects the deal to close in the fourth quarter.

Martin's proposal also could nullify any ownership concerns raised by News Corp's proposed buyout of Wall Street Journal owner Dow Jones & Co. News Corp owns the New York Post newspaper and local stations in New York.

Martin said the proposal would strike a balance between protecting the quality of local news coverage while preventing too much concentration of ownership.

But his plan has provoked criticism from both sides of the issue. Consumer advocates have complained that it goes too far in loosening the restrictions, while the Newspaper Association of America has complained that it does not go far enough.

Reuters/Nielsen