Some questions and answers about media ownership rules and proposed changes to them that the Federal Communications Commission will consider June 2:

Q: What are the rules?

A: Adopted between 1941 and 1975, they limit how many newspapers and television and radio stations a company can own, and in what combinations. The rules were created to promote diversity of opinion, encourage competition and prevent a few big companies from controlling what people see, hear and read.

Current rules ban mergers between major television networks – NBC, CBS, ABC and Fox – and limit the number of television and radio stations that a company can own in a market. The rules prohibit any company from owning television stations that reach more than 35 percent of U.S. households, or owning a newspaper and a radio or television station in the same city.

Q: Why might the rules be changed?

A: The FCC is examining whether they still reflect a media landscape changed by cable television, satellite broadcasts and the Internet. A 1996 law required the FCC to study ownership rules every two years and repeal or modify any regulation determined to be no longer in the public interest. Many changes proposed since then have remained unfinished or were sent back to the FCC after court challenges brought by media companies.

Q: Who wants the rules changed?

A: FCC Chairman Michael Powell and the two other Republicans on the five-member commission favor easing ownership regulations. Big media companies including the major television networks and newspaper owners.

such as Tribune Co. and Gannett Inc. want restrictions on their businesses eliminated. Many lawmakers, mainly Republicans, also support easing the rules, believing they are outdated and limit the ability of companies to grow and stay competitive.

Q: Who wants to keep the rules as they are?

A: The two Democrats on the commission, consumer advocates, small broadcasters, writers, musicians, academics and the National Rifle Association, among others. They worry relaxed rules will lead to a merger frenzy, giving a handful of corporations control of news and entertainment. Supporters of the rules say most people still get their news primarily from television and newspapers, and while there are hundreds of cable channels and sources of Internet news, most of those outlets are controlled by a few big companies.

Q: What are the changes the FCC is considering?

A: Raising the national television ownership cap to 45 percent and allowing one company to own two television stations in markets with at least six competitors and three stations in the largest cities such as New York and Los Angeles. Combining two existing “cross-ownership” rules – one that prevents a company from owning a newspaper and a broadcast station in the same city, the second that involves joint radio and television station ownership in the same market. The proposal would allow cross-ownership in large and medium markets and impose restrictions or prohibitions in small markets.

Q: How will this affect what I watch, hear and read?

A: Media companies seeking eased restrictions say new mergers and combinations will let them produce more quality entertainment and local news. The television networks say that without eased rules, the best programming will migrate to pay-television services. Opponents of relaxed rules say combining television stations and newspapers is dangerous because those entities will not monitor each other and provide different opinions. Critics also say television could become like radio: deregulation in 1996 allowed companies to amass hundreds of stations and cut costs by replacing local shows with national programming.

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On the Net: FCC: http://www.fcc.gov

AP-ES-05-25-03 1201EDT

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