STATEMENT OF 
CHAIRMAN KEVIN J. MARTIN
Re:  In the Matter of Promoting Diversification of Ownership in the Broadcasting 
Services, Report and Order and Third Further Notice of Proposed Rulemaking
In order to ensure that the American people have the benefit of a competitive and 
diverse media marketplace, we need to create more opportunities for different, new and 
independent voices to be heard. The Commission has recently taken steps to address the 
concern that there are too few local outlets available to minorities and new entrants.
Last month, we significantly reformed our Low Power FM rules in order to 
facilitate LPFM stations’ access to limited radio spectrum. The new order streamlines and 
clarifies the process by which LPFM stations can resolve potential interference issues 
with full-power stations and establishes a going-forward processing policy to help those 
LPFMs that have regularly provided eight hours of locally originated programming daily 
in order to preserve this local service. The new rules are designed to better promote entry 
and ensure local responsiveness without harming the interests of full-power FM stations 
or other Commission licensees.
The Commission also adopted an order last month that will facilitate the use of 
leased access channels. Specifically, the order made leasing channels more affordable 
and expedited the complaint process. These steps will make it easier for independent 
programmers to reach local audiences.
I believe it is important for the Commission continually look for ways to foster 
the development of independent channels and voices.  The item before us today adopts
rules that are designed to promote diversity by increasing and expanding broadcast 
ownership opportunities for small businesses, including minority and women-owned 
businesses.  For example, we adopt a new rule that gives small businesses and new 
entrants that acquire expiring construction permits additional time to build out their 
broadcast facilities. We also revise the Commission’s equity/debt attribution standard to 
facilitate investment in small businesses in order to promote diversity of ownership in 
broadcast facilities.  I believe that these actions, along with others like adopting a rule 
barring race or gender discrimination in broadcast transactions, adopting a “zero-
tolerance” policy for ownership fraud, and committing to the Commission convening an 
“Access-to-Capital” conference in the first half of 2008 in New York City will go to a 
long way towards opening up opportunities for small businesses and new entrants.  All of 
the rules and policies that we adopt are designed to serve the public interest, providing for 
competition, localism, and diversity in the media.  
Now, some maintain that the Commission’s definition of “eligible entity” – which 
uses the SBA definition – is insufficient.  They argue that the adoption of this definition 
is regressive and the Commission is better off doing nothing than adopting this definition.  
I disagree.  First, we specifically disagree with the methodology used to argue that our 
definition is regressive.  The item explains how even using Free Press data, we find that 
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at least 8.5 percent, not 5.88 as Free Press claims, of commercial radio stations owned by 
SBA-defined small businesses are minority-owned.  Moreover, their methodology does 
not account for the new entrants that may come in as a result of the opportunities 
presented by the order.   Based on this, we find claims that our definition of eligible 
entity is regressive to be unfounded. 
Second, I disagree that the public would be well-served if the Commission would 
to delay its consideration of these issues.  The fact is that the Commission has put off 
these issues too long.  It is far better that the Commission adopt these proposals that are 
geared toward promoting minority and female ownership of the airwaves than to wait for 
a more perfect definition of eligible entity.  In this regard, I note that we have also opened 
up a further notice specifically considering the issue of whether a more expansive 
definition should adopted.  Although I admit that the legal hurdle is a high one, I remain 
open to considering any other definitions that are put forward.  For example, I understand 
that the Commission’s Diversity Committee is planning to examine this issue and I look 
forward to reviewing their findings.  In the meantime, I am confident that small 
businesses, including minorities and small businesses will benefit from the new rules that 
we adopt today.  Further delay in the implementation of these rules would be a mistake.  
The Commission’s actions today strike an appropriate balance.  They carefully 
take into account the opportunities and challenges of today’s media marketplace and, at 
the same time, prioritize the commitment to localism and diversity.  I hope that our 
policies prove to have a beneficial affect on the diversity of voices in the media market.