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Dear Reader:

We wanted to let you know that, after nearly three years of operation on the World Wide Web, National Journal's Insider Update: The Telecom Act ceased publication as of January 1, 2008.

We took this step at a time when the National Journal Group is moving to increase technology coverage -- including reporting on telecommunications and broadcasting issues -- in several of its other publications. In particular, National Journal's CongressDaily -- our twice daily publication for Capitol Hill insiders -- will be adding staff in the coming weeks for this purpose.

CongressDaily will feature the kind of detailed coverage of telecom issues, both on Capitol Hill and at the Federal Communications Commission, that you are accustomed to seeing in Insider Update -- plus a lot more.

If you are interested in a trial subscription to CongressDaily, please call 800-424-2921 or e-mail us at memberships@nationaljournal.com. Thank you for your readership and support of Insider Update, and please don't hesitate to write to me at lpeck@nationaljournal.com if you have any questions or concerns.

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Lou Peck Editor In Chief

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FCC Dems Cry Foul On Media Ownership

By David Hatch

(Wednesday, Aug. 1) The FCC's two Democratic members are accusing FCC Chairman Kevin Martin of largely excluding them from shaping 10 new reports on media ownership that could directly impact the agency's regulations.

The authors and topics were selected by Martin, a Republican, with the exception of one report in which Democratic Commissioner Michael Copps had some involvement, agency sources said. But an FCC spokeswoman insisted that the Democrats were involved. "We're committed to having an open and transparent process," she said.

The Democrats also are crying foul because the reports were released late Tuesday, as Washington nears its summertime hibernation phase when Congress is on a month-long recess. Even the timing of the studies has come under fire, given their release on an afternoon when most reporters were covering the agency's vote on a high-profile item affecting the wireless industry.

"Just when we hoped an open media-ownership process was developing here at the FCC, along comes this bucket of ice water," Copps and fellow Democratic complained in a joint statement. They characterized the reports FCC Commissioner Jonathan Adelstein as "supposedly serious."

The public has 60 days to provide feedback on the reports and 15 days to reply to the comments. "The commission expects the public to analyze all 10 studies, and reams of underlying data, and file comments 60 days from today!" Adelstein and Copps wrote. "This is unfair, unnecessary and ultimately unwise -- inviting public, congressional and judicial outrage."

The agency spokeswoman, however, emphasized that 60 days is twice as long as the comment cycle for most FCC items.

In its announcement, the FCC stated that it "intends to use the data collected in the studies, as well as [public] comments, to inform its decisions in the ownership proceeding."

The agency has been conducting nationwide field hearings on media ownership, with the next one scheduled for Sept. 20 in Chicago. It is reviewing whether to modify rules addressing a range of ownership thresholds affecting television and radio stations, and co-ownership of broadcast and newspaper properties.

The studies tackle issues such as programming quality and consolidation within the broadcast, cable and radio sectors.

A report on ownership of media outlets by minorities and women, whose authors were chosen by Martin, justifies low levels of female ownership by suggesting that women are underrepresented in many industries, including construction. Comparisons also are drawn to female involvement in "transportation and warehousing," among other industries.

The Democrats have questioned the FCC's commitment to allowing the studies to undergo a peer review involving examination of the data by other experts. An agency source said Martin has balked at a peer review at this juncture, meaning that the public will comment on reports that may later be deemed invalid.

"We're going to have them externally peer-reviewed," the spokeswoman said.

"How will the reviewers be selected?" the Democrats asked in their joint statement. "How long will they have to conduct their reviews? Will the public have ample time to examine the reviews before the comment cycle ends? Is this peer review -- or just a brief purview?"


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