FCC chief urges broadcast owners to let more minorities in

Tuesday, April 7, 1998 | 12:59 p.m.

Minorities own only 2.8 percent of the nation's TV and radio stations. The numbers are on the decline.

Bill Kennard, chairman of the Federal Communications Commission, asked the industry to give him ideas within 60 days for reversing the trend. It was Kennard's first address as FCC chairman to the broadcasting industry, which is meeting here.

Eddie Fritts, president of the National Association of Broadcasters, said in an interview that his organization has already commenced meetings with Kennard and other FCC officials to get the ball rolling. Fritts said the industry is up to Kennard's challenge.

Kennard said the dismal state of minority ownership is further threatened by industry concentration. A 1996 telecommunications law has fueled an unprecedented wave of media mergers.

"I'm concerned that as the industry consolidates, as we have more and more stations in fewer and fewer hands, diversity of viewpoints will be hampered and opportunities for new entrants will be further reduced," Kennard said. "I worry about this."

Minorities need greater access to capital, better training and mentoring, Kennard said, adding that they are some of the problems contributing to low minority ownership.

The government used to encourage minority ownership by giving a tax break to broadcasters who sold stations to minorities, but Congress repealed that provision, called a tax certificate, a few years ago, citing abuses.

Both Kennard and Fritts say they would support having Congress bring back the tax break - as long as it was refined to prevent abuses.

Fritts said other steps, which he did not specify, could be taken by broadcasters voluntarily.

"We are not proposing the government launch into a new arena of mandates," Fritts said. The industry probably won't have a concrete plan to give to Kennard in 60 days to foster minority ownership, but is willing to explore new options, Fritts said.

"We don't have any definitive answers," he said.

One way to give minorities a bigger voice in radio is through FCC proposals that would create thousands of new low-power stations across the country. These "micro" radio broadcasters would operate with 1,000 to 3,000 watts, under various FCC proposals, supported by Kennard.

But the radio industry doesn't like the idea, saying it would create interference to, among other things, other radio stations. Fritts called the proposals "troubling."