Specifically, CBI requested clarification that "the FCC
will conduct a substantive, facts, and circumstances evaluation of proposals
for foreign investment in excess of 25 percent in the parent company of a
broadcast licensee...." If adopted, this approach would represent a marked
change of course for the FCC, which has in the past "categorically refused"
to consider transactions involving investment in broadcasters above the 25%
benchmark, according to CBI.
According to a story at mondaq.com, CBI pointed out that
ending the presumption would place broadcasters "on the same footing"
as other industry participants, facilitating crucial access to capital in a
market where they face increasing competition for consumers.
In February 2013, the FCC responded with a Public Notice (MB
Docket No. 13-50) soliciting comments on CBI's request. The first round of
comments were due April 15, and a review of those submissions reveals a uniform
desire for the FCC to relax the de facto 25% indirect cap applied to foreign
ownership in broadcasters.
The question remains whether the FCC will hear the pleas of
the broadcasters for regulatory parity. On the one hand, broadcasters may have
reason for optimism if the FCC's recent Public Notice (IB Docket No. 11-133)
stating that it has streamlined its policies and procedures for reviewing
foreign ownership of common carrier wireless licenses and certain aeronautical
radio licenses is any indication. On the other hand, the broadcast industry has
a long history of special concern in Congress due to its potential to influence
the outcome of elections, and the FCC has not yet heard from Congress on these
issues.
Final comments on the proposal are due at the FCC on April
30.
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