Cross Ownership Rules - Before the Legislation

Exhibit 2 - Status Quo: Current Media Concentration and Cross-Ownership Laws and Rules (as of July 5, 1995)

Newspaper Local Exchange Telco Cable TV Broadcast TV Broadcast Radio Cellular PCS DBS
Newspaper no rules
Local Exchange Telephone allowed no rules
Cable TV allowed prohibited, except for video dialtone rules (see 47 C.F.R. Sec. 63.54 and 47 U.S.C. Sec. 533(b)). The 4th and 9th U.S. Circuit Courts have recently found Sec. 533(b) (the telco/cable cross-ownership ban) to be unconstitutional. The U.S. Supreme Court has agreed to hear the appeal from the 4th Circuit consolidated with another case. (see U.S. v. Chesapeake and Potomac Telephone Co., Dk # 94-1893, and National Cable Television Assoc. v. Bell Atlantic Corp., Dk # 94-1900) (lower court cite: C & P Telephone Co. of Va. v. U.S., No. 93-2340, U.S. Court of Appeals for the 4th Circuit, decided Nov. 21, 1994). an entity is prohibited from owning systems which cover more than 30% of all homes nationwide where cable is currently available (35% if additional systems are minority-controlled) (see 47 C.F.R. Sec. 76.503); a cable operator is prohibited from devoting more than 40% of its channels to the carriage of national video programming services in which it has an attributable ownership interest (see 47 C.F.R. Sec. 76.504).
Broadcast TV prohibited, except for grandfathered licenses (see 47 C.F.R. Sec. 73.3555(d)). prohibited, except for video dialtone rules (see 47 C.F.R. Sec. 63.54). prohibited in same market (see 47 U.S.C. Sec. 533(a) and 47 C.F.R. Sec. 76.501). Nationally, an entity is limited to 12 stations, with a cap of 25% of the national audience, or 30 percent if some stations are minority-controlled (see 47 C.F.R. Sec. 73.3555(e)). However, except where grand-fathered, prohibited in same market (see 47 C.F.R. Sec. 73.3555(c)).
Broadcast Radio prohibited, except for grandfathered licenses (see 47 C.F.R. Sec. 73.3555(d)). allowed allowed Except where grand-fathered, prohibited in same market (see 47 C.F.R. Sec. 73.3555(c)). Nationally, a single entity can own up to 20 AM, 20 FM, and 12 TV stations, which can increase to 23-23-14 if some are small business- or minority-controlled (see 47 C.F.R. Sec. 73.3555(e)). For entire country, limit of 20 AM and 20 FM by one entity (23 & 23 if 3 stations are small business- or minority-controlled). Locally, in markets with less than 15 stations, an entity can own up to 3, no more than 2 of which are in the same service (AM or FM), if owned stations represent less than 50% of the stations in the market. In markets with 15 or more stations, an entity may own up to 2 AM and 2 FM, if the combined audience share is not greater than 25% (see 47 C.F.R. Sec. 73.3555(a)(1)).

Cellular allowed The regional Bell operating companies can only provide cellular service through a separate subsidiary (see 47 C.F.R. Sec. 22.901).

allowed allowed allowed 2 cellular licenses allotted per market, one available to the local exchange carrier; a cellular licensee cannot own an interest in a licensee of the other frequency block in an overlapping cellular geographic service area (see 47 C.F.C. Sec. 22.902).
PCS allowed

allowed allowed allowed allowed Cellular carriers are permitted to hold only a single 10 MHz license in any PCS service area where 10% or more of the population of the PCS licensed area is within the cellular service area; . After Jan. 1, 2000, limit rises to 15 MHz, making 40 MHz a uniform cap for all PCS providers. (cellular carriers already have 25 MHz of clear spectrum) (see 47 C.F.R. Sec. 24.204). Broadband PCS licensees can acquire no more than 40 MHz of the PCS spectrum in any area (of 120 MHz total allocated to PCS) (see 47 C.F.R. Sec. 24.229(c)). Narrowband PCS licensees are prohibited from having an ownership interest (i.e., greater than 5%) in more than 3 of the 26 available channels in any geographic area (see 47 C.F.R. Sec.s 24.101 and 24.129).
DBS/
Satellite
allowed allowed allowed allowed allowed allowed allowed no rules
Newspaper

Local Exchange Telephone Cable TV Broadcast TV Broadcast Radio Cellular PCS DBS/Satellite

Complied by James Love and Andrew Saindon, Consumer Project on Technology. Send corrections or comments to P.O. Box 19367, Washington, DC 20036; voice 202/387-8030; fax: 202/234-5176; internet: love@tap.org

	Newspaper	Local Exchange Telco	Cable TV	Broadcast TV	Broadcast Radio	Cellular	PCS	DBS
Newspaper	no rules
Local Exchange Telephone	allowed	no rules
Cable TV	allowed	prohibited, except for video dialtone rules (see 47 C.F.R. Sec. 63.54 and 47 U.S.C. Sec. 533(b)). The 4th and 9th U.S. Circuit Courts have recently found Sec. 533(b) (the telco/cable cross-ownership ban) to be unconstitutional. The U.S. Supreme Court has agreed to hear the appeal from the 4th Circuit consolidated with another case. (see U.S. v. Chesapeake and Potomac Telephone Co., Dk # 94-1893, and National Cable Television Assoc. v. Bell Atlantic Corp., Dk # 94-1900) (lower court cite: C & P Telephone Co. of Va. v. U.S., No. 93-2340, U.S. Court of Appeals for the 4th Circuit, decided Nov. 21, 1994).	an entity is prohibited from owning systems which cover more than 30% of all homes nationwide where cable is currently available (35% if additional systems are minority-controlled) (see 47 C.F.R. Sec. 76.503); a cable operator is prohibited from devoting more than 40% of its channels to the carriage of national video programming services in which it has an attributable ownership interest (see 47 C.F.R. Sec. 76.504).
Broadcast TV	prohibited, except for grandfathered licenses (see 47 C.F.R. Sec. 73.3555(d)).	prohibited, except for video dialtone rules (see 47 C.F.R. Sec. 63.54).	prohibited in same market (see 47 U.S.C. Sec. 533(a) and 47 C.F.R. Sec. 76.501).	Nationally, an entity is limited to 12 stations, with a cap of 25% of the national audience, or 30 percent if some stations are minority-controlled (see 47 C.F.R. Sec. 73.3555(e)). However, except where grand-fathered, prohibited in same market (see 47 C.F.R. Sec. 73.3555(c)).
Broadcast Radio	prohibited, except for grandfathered licenses (see 47 C.F.R. Sec. 73.3555(d)).	allowed	allowed	Except where grand-fathered, prohibited in same market (see 47 C.F.R. Sec. 73.3555(c)). Nationally, a single entity can own up to 20 AM, 20 FM, and 12 TV stations, which can increase to 23-23-14 if some are small business- or minority-controlled (see 47 C.F.R. Sec. 73.3555(e)).	For entire country, limit of 20 AM and 20 FM by one entity (23 & 23 if 3 stations are small business- or minority-controlled). Locally, in markets with less than 15 stations, an entity can own up to 3, no more than 2 of which are in the same service (AM or FM), if owned stations represent less than 50% of the stations in the market. In markets with 15 or more stations, an entity may own up to 2 AM and 2 FM, if the combined audience share is not greater than 25% (see 47 C.F.R. Sec. 73.3555(a)(1)).
Cellular	allowed	The regional Bell operating companies can only provide cellular service through a separate subsidiary (see 47 C.F.R. Sec. 22.901).	allowed	allowed	allowed	2 cellular licenses allotted per market, one available to the local exchange carrier; a cellular licensee cannot own an interest in a licensee of the other frequency block in an overlapping cellular geographic service area (see 47 C.F.C. Sec. 22.902).
PCS	allowed	allowed	allowed	allowed	allowed	Cellular carriers are permitted to hold only a single 10 MHz license in any PCS service area where 10% or more of the population of the PCS licensed area is within the cellular service area; . After Jan. 1, 2000, limit rises to 15 MHz, making 40 MHz a uniform cap for all PCS providers. (cellular carriers already have 25 MHz of clear spectrum) (see 47 C.F.R. Sec. 24.204).	Broadband PCS licensees can acquire no more than 40 MHz of the PCS spectrum in any area (of 120 MHz total allocated to PCS) (see 47 C.F.R. Sec. 24.229(c)). Narrowband PCS licensees are prohibited from having an ownership interest (i.e., greater than 5%) in more than 3 of the 26 available channels in any geographic area (see 47 C.F.R. Sec.s 24.101 and 24.129).
DBS/ Satellite	allowed	allowed	allowed	allowed	allowed	allowed	allowed	no rules
	Newspaper	Local Exchange Telephone	Cable TV	Broadcast TV	Broadcast Radio	Cellular	PCS	DBS/Satellite