CLOSE-UP- An Internet News Magazine for Broadcast Professionals

Joe Fedele

TELECOMMUNICATIONS ACT OF 1996

Courtesy of the National Association of Broadcasters (NAB)

The Telecommunications Act of 1996 was passed by the Congress on Feb. 1, 1996. The Act is the most far-reaching revision of communications law and regulation since the Communications Act of 1934. The provisions which will have the most significant impact on broadcasters are:

Broadcast Ownership

Radio

• Repeals all national ownership limits; one person can own an unlimited number of radio stations
• Requires FCC to revise radio duopoly rules to allow common ownership of radio stations in a single market up to: 8 stations (no more than 5 in one service) in markets with 45 or more commercial radio stations; 7 stations (no more than 4 in one service) in markets with 30-44 commercial radio stations; 6 stations (no more than 4 in one service) in markets with 15-29 commercial radio stations; 5 stations (no more than 3 in one service) in markets with 14 or fewer commercial radio stations, except that no party may own or control more than half of the commercial radio stations in a market
• The number of radio stations in a market will continue to be determined by counting the number of stations whose principal city grade contours overlap the signals of the stations in a proposed transaction
• Directs the FCC to extend its existing policy permitting waivers of the one-to-a-market rule to the top 50 markets

Television

• Repeals the current 12 station national cap on television station ownership
• Increases the national audience reach cap from 25% to 35%; the FCC may modify that limit as part of a required biennial review of all ownership rules
• Requires the FCC to conduct a rulemaking proceeding to consider changes to the television duopoly rules, but specifies that existing LMAs that comply with FCC regulations should be grandfathered
• Repeals the dual network rule, except that ABC, CBS, Fox, and NBC will not be permitted to merge with each other or with any other existing network-like program service
• Repeals the network-cable cross-ownership rule; repeals the statutory broadcast-cable cross-ownership rule but does not repeal the FCC's similar rule; repeals the cable-MMDS cross-ownership rule where cable systems face effective competition

Broadcast Licenses and Renewals

• Increases radio and television license terms to 8 years
• Eliminates comparative renewal proceedings by providing that FCC must decide whether a station's license should be renewed before accepting competing applications. This provision applies to all renewal applications filed after May 1, 1995.

Advanced Television

• States that if FCC issues licences for advanced TV, it "should limit the initial eligibility" to existing broadcasters. Note: the FCC acceded to a request from Congressional leaders that it not issue any ATV licences this year to allow Congress to consider spectrum legislation.
• Requires FCC to permit ATV licensees to offer ancillary and supplemental services
• Requires FCC to recover either existing or additional license at the end of an unspecified transition period
• Requires FCC to collect fees from broadcasters for the use of ATV channels for subscription or other pay services
  

Violence on Television

• If industry does not develop a ratings system within 1 year, FCC directed to prescribe (in conjunction with an advisory committee) a ratings code for "video programming that contains sexual, violent, or other indecent material about which parents should be informed." FCC must adopt rules requiring carriage of ratings information for any program that is rated. Note: the Act does not specifically require broadcasters to rate programs although the legislative history indicates that this may be viewed as part of stations' public interest obligations.
• All TV sets larger than 13" manufactured one year after Act becomes effective must include chip to allow blocking of rated programming
• Congress supports establishment of a technology fund to develop alternative blocking technologies
• V-chip provisions subject to expedited judicial review by a special 3-judge district court with direct appeal to the Supreme Court

Telephone Company Entry into Video

• Allows telephone companies to provide video programming within their service areas operating either as a common carrier, a cable system, or as an "open video system"
• FCC required to impose must carry, network non-duplication, syndicated exclusivity, sports exclusivity, and protections against discrimination in navigation systems on open video systems (retransmission consent applies already under the 1992 Cable Act)

Other Provisions

• FCC directed to adopt rules requiring closed captioning for all broadcast programming except where captioning would be "economically burdensome;" FCC will report to Congress on ways to implement a video description service (that would provide audio descriptions of on-screen events for visually-impaired TV users)
• FCC directed to adopt rules barring any zoning or other restrictions on the use of television receive antennas

This document was produced by NAB Legal & Regulatory Affairs

RETURN to  Main Menu in Graphics Mode    

RETURN to TEXT MENU