*Pages 1--2 from  Microsoft Word - 28291.doc*
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 PRESS  STATEMENT  OF 
 CHAIRMAN  MICHAEL  POWELL 
 In  the  Matter  of  the  2002  Biennial  Regulatory  Review  of  the  Commission’s  Broadcast  Ownership  Rules  and  Other  Rules  Adopted  Pursuant  to  Section  202  of  the 
 Telecommunications  Act  of  1996. 
 Today,  we  complete  the  most  exhaustive  and  comprehensive  review  of  our  broadcast  ownership  rules  ever  undertaken.  We  have  done  so,  obligated  by  our  statutory 
 duty  to  review  the  rules  biennially  and  prove  those  rules  are  “necessary  in  the  public  interest.”  The  Court  of  Appeals  has  interpreted  this  standard  as  placing  a  high  hurdle 
 before  the  Commission  for  maintaining  a  given  regulation,  and  made  clear  that  failure  to  surmount  that  hurdle,  based  on  a  thorough  record,  must  result  in  the  rule’s  modification 
 or  elimination.  This  is  an  exceedingly  difficult  charge,  but  a  critical  one  to  fulfill  if  we  hope  to  continue  to  promote  the  cherished  values  of  diversity,  localism  and  competition. 


 Over  the  past  twenty  months  we  have  been  working  tirelessly  towards  achieving  three  critically  important  goals:  (1)  Reinstating  legally  enforceable  broadcast  ownership 
 limits  that  promote  diversity,  localism  and  competition  (replacing  those  that  have  been  struck  down  by  the  courts);  (2)  Building  modern  rules  that  take  proper  account  of  the 
 explosion  of  new  media  outlets  for  news,  information  and  entertainment,  rather  than  perpetuate  the  graying  rules  of  a  bygone  black  and  white  era;  and  (3)  Striking  a  careful 
 balance  that  does  not  unduly  limit  transactions  that  promote  the  public  interest,  while  ensuring  that  no  company  can  monopolize  the  medium.  I  am  confident  we  succeed  by 
 today’s  Order. 
 This  proceeding  has  been  the  subject  of  extraordinary  public  attention.  It  is  right  that  it  has  been  so,  for  the  values  these  rules  are  intended  to  advance  are  critically 
 important  to  a  vibrant  democracy.  I  have  heard  the  concerns  expressed  by  the  public  about  excessive  consolidation.  Though  such  generalized  worries  do  not  clearly  suggest 
 specific  answers  to  the  specific  issues  the  Commission  must  address,  they  have  introduced  a  note  of  caution  in  the  choices  we  have  made.  Consequently,  our  decisions 
 today—  retaining  the  rule  against  networks  merging,  tightening  the  limits  on  radio  ownership,  and  modifying,  rather  than  eliminating,  the  remaining  rules—  are  modest, 
 albeit  very  significant  changes. 
 I  must  punctuate  one  irreducible  point:  Keeping  the  rules  exactly  as  they  are,  as  some  so  stridently  suggest,  was  not  a  viable  option.  Without  today’s  surgery,  the  rules 
 would  assuredly  meet  a  swift  death.  As  the  only  member  of  this  Commission  here  during  the  last  biennial  review,  I  watched  first  hand  as  we  bent  to  political  pressure  and  left 
 many  rules  unchanged.  Nearly  all  were  rejected  by  the  court  because  of  our  failure  to  apply  the  statute  faithfully.  I  have  been  committed  to  not  repeating  that  error,  for  I 
 believe  the  stakes  are  perilously  high.  Leaving  things  unaltered,  regardless  of  changes  in  the  competitive  landscape,  is  a  course  that  only  Congress  can  legitimately  chart. 
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 For  these  reasons,  we  have  embraced  a  challenge  unparalleled  in  the  FCC’s  history.  We  collected  a  thorough  record,  analyzed  our  broadcast  ownership  rules  from 
 the  ground  up,  and  wrote  rules  that  match  the  times.  For  the  first  time,  we  documented  the  state  of  the  entire  industry,  empirically  analyzed  different  transactions  and  their  effect 
 on  our  diversity  goals,  and—  most  importantly—  sought  the  views  of  our  citizens  as  to  how  they  obtain  their  news  and  public  affairs  information,  in  an  effort  to  craft  rules 
 consistent  with  the  actual,  rather  than  theoretical,  viewing  and  listening  patterns  of  Americans. 


 I  am  confident  and  proud  of  the  job  we  have  done.  I  believe  that  our  actions  will  advance  our  diversity  and  localism  goals  and  maintain  a  vigorously  competitive 
 environment. 
 I  would  like  to  express  my  deep  appreciation  to  each  of  my  colleagues  for  their  tireless  efforts  over  these  past  many  months.  Commissioners  Adelstein  and  Copps  have 
 organized  numerous  hearings  throughout  the  country  and  deserve  credit  for  bringing  unprecedented  public  input  to  this  proceeding.  Commissioners  Abernathy  and  Martin 
 have  been  actively  engaged  in  every  step  of  the  process  and  have  contributed  enormously  to  the  Order  before  us  today.  I  admire  the  genuine  commitment  of  all  four  of  my 
 colleagues  to  serving  the  American  public  in  this  proceeding.  And,  finally,  there  are  not  enough  words  of  commendation  for  the  spectacular  efforts  of  the  men  and  women  of  the 
 Media  Bureau.  Their  dedication  and  commitment  are  in  the  finest  traditions  of  public  service. 
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