1 Prepared Remarks of Chairman Julius Genachowski Federal Communications Commission National Association of Black Owned Broadcasters 33rd Annual Fall Broadcast Management Conference Washington, D.C. September 25, 2009 I’d like to thank Jim Winston for that wonderful introduction. I’ve been in the job not even three months yet. One of the wonderful things about returning to the Commission has been re-acquainting with so many old friends and colleagues – many of whom I see here today, including Jim. I’m very glad to be here. There are so many issues of importance to discuss – and unfortunately my time is short, so I am going to jump right in. First, I want to recognize the current challenges facing traditional media. For many, there is a “Perfect Storm” quality to what is happening and that is very concerning to me and other policymakers. ?Broadcasters today are confronted with a difficult economy, a plummeting advertising market, and rapid technological change buffeting traditional business plans. And I will add, for minority owners – and would-be minority owners – there is the added challenge of capital, which is made even more difficult by a capital market that’s in the basement. Many things have changed since I was last at the Commission and involved in telecommunications policy. One thing that hasn’t changed since I was last at the FCC is the status of minority and female media ownership. While minorities comprise 34 percent of the U.S. population, studies indicate that they own just 3 percent of full-power commercial television stations and 8 percent of full power commercial radio stations. And while women represent 50 percent of the population, they own only 5 percent of full power commercial television stations and just 6 percent of full power radio stations This has been a long-time concern of the agency, and I think it is important to note that concern about minority and female ownership remains bipartisan. My Commission colleague Robert McDowell expressed similar concern to you just yesterday. And, although far from perfect, a bipartisan Commission approved measures to promote diversity in the 2007 Diversity Order. Another thing that isn’t new? The Commission lacks good data on the subject. The studies I mentioned earlier come from outside sources because the Commission currently does not possess reliable data on the precise status of minority and female ownership. ?The Commission is working to obtain more accurate and precise ownership data from broadcast stations in order to better assess the status of minority broadcast ownership. 2 As many of you are aware, the Federal Advisory Committee on Diversity met this week and voted to adopt several recommendations to promote minority ownership and participation in the communications industry. The Commission will review these recommendations carefully. The recommendations include asking the Commission to focus its attention on broadband adoption, education, and training -- especially among minority populations -- and restore the designated entity program to increase opportunities for small businesses, women-owned, and minority-owned businesses. Tom Reed, the new head of the Office of Communications Business Opportunities, will be spearheading Commission efforts to maximize new opportunities for participation in telecommunications markets for small businesses, including women- owned and minority-owned enterprises. I also know that the issue of Portable People Meters is garnering much attention. I understand that several attorneys general have looked into whether PPM methodology undercounts minority audiences. And I know that several members of Congress are actively examining the issue. As most of you know, prior to my getting sworn in, the Commission, under the leadership of Acting Chairman Michael Copps, issued a Notice of Inquiry on Portable People Meters. While the Commission’s authority over the core issue is somewhat limited, the NOI sought comment on how the FCC’s own use of Arbitron PPM data might impact the integrity of agency analyses and trend reporting, and thus policymaking. The Commission is still reviewing the record. I will be asking the Media Bureau to pull together a roundtable with different stakeholders in this debate in the near future to try to reach greater understanding and perhaps resolution of issues in disagreement. And broadband, as you are well aware, will be a big priority over the coming months. Congress has required the Commission to develop a national broadband plan by next February. Congress required three main components: deployment to all Americans, affordability and adoption, and national purposes I mention this because I know many NABOB members are deeply involved or experimenting with online and mobile technologies and services that supplement the core broadcasting mission. I hope NABOB and member companies will get involved in our broadband planning efforts and bring to the Commission your experience, knowledge, and insight to help us craft a plan that meets Congress’ objectives. And my door will always be open – as will those of our key Bureau and office staff – for you to discuss with us pressing issues of concern relating to the health and vibrancy of the media landscape. Thank you.