POWELL, PRAISED, CRITICIZED FOR CANDID STATEMENTS ON ISSUES
In his first meeting with reporters as FCC chmn., Michael Powell was very upfront on several issues -- such as consumer protection, cable rates and 35% TV station ownership cap -- which has lead to both praise and criticism for positions he took (CD Feb 7 p2). On plus side, NBC Washington Vp Robert Okun predicted Powell would be “an assertive chairman with a market-oriented agenda, which is very refreshing.” Washington attorney Richard Wiley, who chaired FCC 1974-1977, called Powell’s statements “very learned, very erudite… He laid out his philosophy in very candid terms.”
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Andrew Schwartzman of Media Access Project, speaking for consumers on many issues, said Powell “didn’t say a whole lot that surprised me [but] it’s obvious he hasn’t thought through his ideas on cable competition” in calling cable rates marketplace issue. “He’s looking at all types of [telecom] services through a magnifying glass which makes possible future competitors appear to be much stronger than they really are,” Schwartzman said. There’s big difference of opinion on when real competition is result of govt. action -- which is case in many instances, he said. Another difference Schwartzman sees between consumers and FCC chmn. is on TV station ownership and 35% cap: “He doesn’t see the nexus of ownership with content… We do.”
Broadcast lawyer told us “I really was shocked by [Powell’s] comments… such as saying consumers are just part of the marketplace… There were a lot of people amazed at how candid he was,” though he didn’t appear to be very strong on repeal of ownership cap. As for fight among broadcasters (TV networks want cap repealed, NAB and station groups are against) on issue, “it’s definitely on our agenda,” said network official, and “the NAB is still a problem.” He said it was likely to be a part of FCC’s biennial report to Congress and it would take Hill support to get 35% cap repealed or relaxed.
Civil rights attorney David Honig said citizens’ groups weren’t taking position yet on Powell’s FCC stewardship: “We want to wait and see what he does in specific cases.” On ownership cap (which citizens’ groups want left in place), he said with industry split “it’s not the usual battle of the elephants against the fleas” -- with citizens’ groups the fleas. Groups will be pushing what would be “a trifecta for us,” he said: Return of tax certificates for sale of stations to minorities, return of EEO rules, and removal of market-entry barriers (such as lack of financing) for minorities.
One lawyer was very outspoken about Powell’s comments on cable rates and marketplace: “It’s not good politics for Powell to say he’s not concerned about rise in cable rates… I can’t imagine any member of Congress telling his constituents that ‘I don’t give a damn that your cable rates have gone up 30%.'” He said Powell’s position creates political issue that can be used against Republicans and “Democrats are squirreling those kinds of quotes away for use in future.” New FCC chmn., lawyer said, “isn’t real strong on street smarts… On other hand, when you call on Powell he’s very businesslike [and] interested in everything you say.”