OFFICE OF THE CHAIRMAN The Honorable Tim Scott United States Senate FEDERAL COMMUNICATIONS COMMISSION WASHINGTON May 1, 2014 113 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Scott: Thank you for your letter expressing concerns regarding the recent Commission action to attribute certain Joint Sales Agreements (JSAs) between television stations. I appreciate the opportunity to provide some clarification about the Commission's March 31, 2014 decision to attribute TV JSAs where one station sells 15% or more of the weekly advertising time on behalf of another station in the same market. The Commission is taking a comprehensive review of the broadcast ownership rules as part of our recently adopted Further Notice of Proposed Rule making that started the 2014 Quadrennial Review. In that proceeding, we seek comment on a tentative conclusion that the current local TV ownership rule should be retained with a limited modification to account for the DTV transition. Historically, the Commission's rules have prohibited one television broadcaster from owning more than one licensee in small and medium-size markets. The purpose of this is to foster competition, localism, and a diversity of voices in the public interest. Even in light of the pending proceeding, it is important that the Commission continues to enforce its existing rules. There has been a growing concern over the last decade that TV stations are using JSAs as a way to circumvent our local TV ownership restrictions by influencing the core operating functions of the other station in a market where joint ownership would not be allowed under the rules. This practice rapidly evolved from an exception to common practice, and in the case of public companies, the Securities and Exchange Commission filings acknowledge this reality in unmistakable terms. Stations have been on notice since 2004 when the Commission first started a proceeding proposing to attribute these types of TV agreements. Since the start, the industry has participated in the proceeding, including in 2010, when the Commission sought additional comment as part of the Quadrennial Review of broadcast ownership rules. Additionally, while some believe attribution of JSAs will hurt diversity of ownership and programming, dozens of minority groups, scholars, and public interest organizations have publicly supported the Commission action. Such agreements stifle competition and can have the effect of eliminating opportunities for minority or women-owned entities. In the event there are Page 2-The Honorable Tim Scott exceptions, the Commission has adopted an expedited waiver process to review any JSAs stations believe are in the public interest. By moving decisions on broadcast ownership into the open, we will enable the public and the Commission to consider more fully and appropriately the public interest issues raised by the implementation of the Commission's rules. I hope this information is helpful. Sincerely, j ( j _ -~f!frnV Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Dan Coats United States Senate 493 Russell Senate Office Building Washington, D.C. 20510 Dear Senator Coats: May 1, 2014 Thank you for your letter expressing concerns regarding the recent Commission action to attribute certain Joint Sales Agreements (JSAs) between television stations. I appreciate the opportunity to provide some clarification about the Commission' s March 31 , 2014 decision to attribute TV JSAs where one station sells 15% or more of the weekly advertising time on behalf of another station in the same market. The Commission is taking a comprehensive review of the broadcast ownership rules as part of our recently adopted Further Notice of Proposed Rulemaking that started the 2014 Quadrennial Review. In that proceeding, we seek comment on a tentative conclusion that the current local TV ownership rule should be retained with a limited modification to account for the DTV transition. Historically, the Commission's rules have prohibited one television broadcaster from owning more than one licensee in small and medium-size markets. The purpose of this is to foster competition, localism, and a diversity of voices in the public interest. Even in light of the pending proceeding, it is important that the Commission continues to enforce its existing rules. There has been a growing concern over the last decade that TV stations are using JSAs as a way to circumvent our local TV ownership restrictions by influencing the core operating functions of the other station in a market where joint ownership would not be allowed under the rules. This practice rapidly evolved from an exception to common practice, and in the case of public companies, the Securities and Exchange Commission filings acknowledge this reality in unmistakable terms. Stations have been on notice since 2004 when the Commission first started a proceeding proposing to attribute these types of TV agreements. Since the start, the industry has participated in the proceeding, including in 2010, when the Commission sought additional comment as part of the Quadrennial Review ofbroadcast ownership rules. Additionally, while some believe attribution of JSAs will hurt diversity of ownership and programming, dozens of minority groups, scholars, and public interest organizations have publicly supported the Commission action. Such agreements stifle competition and can have the effect of eliminating opportunities for minority or women-owned entities. In the event there are Page 2-The Honorable Dan Coats exceptions, the Commission has adopted an expedited waiver process to review any JSAs stations believe are in the public interest. By moving decisions on broadcast ownership into the open, we will enable the public and the Commission to consider more fully and appropriately the public interest issues raised by the implementation ofthe Commission's rules. I hope this information is helpful. -s?iitti-- Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE O F THE CH A IRM A N The Honorable Ron Johnson United States Senate 386 Russell Senate Office Building Washington, D.C. 20510 Dear Senator Johnson: May 1, 2014 Thank you for your letter expressing concerns regarding the recent Commission action to attribute certain Joint Sales Agreements (JSAs) between television stations. I appreciate the opportunity to provide some clarification about the Commission's March 31, 2014 decision to attribute TV JSAs where one station sells 15% or more ofthe weekly advertising time on behalf of another station in the same market. The Commission is taking a comprehensive review of the broadcast ownership rules as part of our recently adopted Further Notice of Proposed Rulemaking that started the 2014 Quadrennial Review. In that proceeding, we seek comment on a tentative conclusion that the current local TV ownership rule should be retained with a limited modification to account for the DTV transition. Historically, the Commission's rules have prohibited one television broadcaster from owning more than one licensee in small and medium-size markets. The purpose of this is to foster competition, localism, and a diversity of voices in the public interest. Even in light of the pending proceeding, it is important that the Commission continues to enforce its existing rules. There has been a growing concern over the last decade that TV stations are using JSAs as a way to circumvent our local TV ownership restrictions by influencing the core operating functions of the other station in a market where joint ownership would not be allowed under the rules. This practice rapidly evolved from an exception to common practice, and in the case of public companies, the Securities and Exchange Commission filings acknowledge this reality in unmistakable terms. Stations have been on notice since 2004 when the Commission first started a proceeding proposing to attribute these types of TV agreements. Since the start, the industry has participated in the proceeding, including in 2010, when the Commission sought additional comment as part of the Quadrennial Review of broadcast ownership rules. Additionally, while some believe attribution of JSAs will hurt diversity of ownership and programming, dozens of minority groups, scholars, and public interest organizations have publicly supported the Commission action. Such agreements stifle competition and can have the effect of eliminating opportunities for minority or women-owned entities. In the event there are Page 2-The Honorable Ron Johnson exceptions, the Commission has adopted an expedited waiver process to review any JSAs stations believe are in the public interest. By moving decisions on broadcast ownership into the open, we will enable the public and the Commission to consider more fully and appropriately the public interest issues raised by the implementation of the Commission's rules. I hope this information is helpful. :;vu Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Patrick Toomey United States Senate 510 Dirksen Senate Office Building Washington, D.C. 20510 Dear Senator Toomey: May 1, 2014 Thank you for your letter expressing concerns regarding the recent Commission action to attribute certain Joint Sales Agreements (JSAs) between television stations. I appreciate the opportunity to provide some clarification about the Commission's March 31 , 2014 decision to attribute TV JSAs where one station sells 15% or more ofthe weekly advertising time on behalf of another station in the same market. The Commission is taking a comprehensive review of the broadcast ownership rules as part of our recently adopted Further Notice of Proposed Rule making that started the 2014 Quadrennial Review. In that proceeding, we seek comment on a tentative conclusion that the current local TV ownership rule should be retained with a limited modification to account for the DTV transition. Historically, the Commission' s rules have prohibited one television broadcaster from owning more than one licensee in small and medium-size markets. The purpose of this is to foster competition, localism, and a diversity of voices in the public interest. Even in light of the pending proceeding, it is important that the Commission continues to enforce its existing rules. There has been a growing concern over the last decade that TV stations are using JSAs as a way to circumvent our local TV ownership restrictions by influencing the core operating functions of the other station in a market where joint ownership would not be allowed under the rules. This practice rapidly evolved from an exception to common practice, and in the case of public companies, the Securities and Exchange Commission filings acknowledge this reality in unmistakable terms. Stations have been on notice since 2004 when the Commission first started a proceeding proposing to attribute these types of TV agreements. Since the start, the industry has participated in the proceeding, including in 2010, when the Commission sought additional comment as part of the Quadrennial Review of broadcast ownership rules. Additionally, while some believe attribution of JSAs will hurt diversity of ownership and programming, dozens of minority groups, scholars, and public interest organizations have publicly supported the Commission action. Such agreements stifle competition and can have the effect of eliminating opportunities for minority or women-owned entities. In the event there are Page 2-The Honorable Patrick Toomey exceptions, the Commission has adopted an expedited waiver process to review any JSAs stations believe are in the public interest. By moving decisions on broadcast ownership into the open, we will enable the public and the Commission to consider more fully and appropriately the public interest issues raised by the implementation of the Commission's rules. I hope this information is helpful. Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Roger Wicker United States Senate 555 Dirksen Senate Office Building Washington, D.C. 20510 Dear Senator Wicker: May 1, 2014 Thank you for your letter expressing concerns regarding the recent Commission action to attribute certain Joint Sales Agreements (JSAs) between television stations. I appreciate the opportunity to provide some clarification about the Commission's March 31 , 2014 decision to attribute TV JSAs where one station sells 15% or more ofthe weekly advertising time on behalf of another station in the same market. The Commission is taking a comprehensive review of the broadcast ownership rules as part of our recently adopted Further Notice of Proposed Rule making that started the 2014 Quadrennial Review. In that proceeding, we seek comment on a tentative conclusion that the current local TV ownership rule should be retained with a limited modification to account for the DTV transition. Historically, the Commission's rules have prohibited one television broadcaster from owning more than one licensee in small and medium-size markets. The purpose of this is to foster competition, localism, and a diversity of voices in the public interest. Even in light of the pending proceeding, it is important that the Commission continues to enforce its existing rules. There has been a growing concern over the last decade that TV stations are using JSAs as a way to circumvent our local TV ownership restrictions by influencing the core operating functions of the other station in a market where joint ownership would not be allowed under the rules. This practice rapidly evolved from an exception to common practice, and in the case of public companies, the Securities and Exchange Commission filings acknowledge this reality in unmistakable terms. Stations have been on notice since 2004 when the Commission first started a proceeding proposing to attribute these types of TV agreements. Since the start, the industry has participated in the proceeding, including in 2010, when the Commission sought additional comment as part of the Quadrennial Review of broadcast ownership rules. Additionally, while some believe attribution of JSAs will hurt diversity of ownership and programming, dozens of minority groups, scholars, and public interest organizations have publicly supported the Commission action. Such agreements stifle competition and can have the effect of eliminating opportunities for minority or women-owned entities. In the event there are Page 2-The Honorable Roger Wicker exceptions, the Commission has adopted an expedited waiver process to review any JSAs stations believe are in the public interest. By moving decisions on broadcast ownership into the open, we will enable the public and the Commission to consider more fully and appropriately the public interest issues raised by the implementation of the Commission's rules. I hope this information is helpful. Sincerely, I j ~C+cv- Tom Wheeler