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Unclear on Incubators

FCC Diversity Committee Plans to Examine Access to Capital, Diversity in Tech

The rechartered FCC Advisory Committee on Diversity and Digital Empowerment will focus on improving access of minority and female would-be broadcast owners to capital, addressing digital redlining, and increasing tech-sector diversity, said FCC Chairman Ajit Pai in a recorded video at ACDDE's first meeting in its latest incarnation. Anyone spending time at a tech conference can see “we're not where we need to be in terms of diversity and inclusion in the tech sector,” said Commissioner Brendan Carr.

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Pai rechartered ACDDE “without hesitation” and praised its work on broadcast incubators and supplier diversity. The Broadcast Diversity and Development working group that tackled the incubator issue has been replaced with the Access to Capital WG, chaired by Beasley Media CEO Caroline Beasley. Pai said the shift's a response to ACDDE's diversity symposium earlier this year, where access to capital was highlighted as a central barrier to ownership diversity (see 1903070070). The incubator program was a point of disagreement between the previous ACDDE and the commission. The FCC incubator program didn't follow the committee's unanimously recommendations (see 1807230035).

It's not clear if the reconstituted ACDDE will get a second crack at the incubator matter, said an FCC official and a broadcast attorney in later interviews. The program was vacated as part of the 3rd U.S. Circuit Court of Appeals Prometheus, and FCC appeal's expected (see 1910250006). It's too early to determine if ACDDE will take up a new incubator program, said Jamila Johnson, ACDDE designated federal officer and Media Bureau attorney adviser. WG membership hasn't been determined, she pointed out. If the ACDDE examines the matter, the Access to Capital group would be the logical place, she said.

Committee Chair Anna Gomez of Wiley Rein said Beasley is interested in meeting with representatives from local and regional banks to spread information about the broadcast business and study financing for new entrants. Beasley, who didn't attend the meeting, is interested in collaborating with other agencies such as Commerce Department's Minority Business Development Agency, Gomez said.

Several committee members said the Access to Capital group should consider such matters as equity capital for diverse owners and ongoing revenue, in addition to startup money. Since pending FCC proceedings such as proposals to allow C4 FM stations or all-digital AM can affect the value of broadcast assets, the working group should look at assessing those effects, said Multicultural Media, Telecom and Internet Council Senior Adviser David Honig.

Where the previous Digital Empowerment and Inclusion WG focused on diverse communities having access to next-generation networks, the current one will focus on “adoption and use,” said its Chair Rudy Brioche, Comcast vice president-global public policy, via speakerphone. The intent is to build on the previous group's work, he said. The WG will also work with the FCC Office of Business Opportunity on improving industry supplier diversity, Brioche said.

The committee's Diversity in Tech group will continue working to aggregate best practices for increasing minority representation among tech companies, said group Chair and Brookings Institute Fellow Nicol Turner-Lee. It's “important” the committee take on an issue where the FCC doesn't have direct authority, she said. ACDDE should expand its definition of the tech industry to include large companies not typically included in that category such as Wal-Mart, said Harin Contractor, Joint Center for Political and Economic Studies director-workforce and economic policy. “This is a tough issue,” said Turner Lee. “We won't just be paying lip service.”

Though ACDDE's membership has been determined, it may be possible for entities not included on the full committee to join and participate in working groups, Johnson said. That would be announced via a public notice, she said.