Michael Powell, chairman of the Federal Communication Commission, told a gathering of broadcast industry executives Tuesday that he will continue to push for the deregulation of media markets.
He would not, however, tip his hand as to how media ownership rules could be eased in a vote expected June 2.
Courts have ordered the FCC to justify its ownership rules, including a ban on newspapers owning -- in most cases -- television stations. Also being reviewed are rules limiting a single corporation from controlling more than 35 percent of the national television market, as well as duopoly rules that limit the ownership of both radio and television stations.
Powell said past commissions did "an extremely poor job of justifying rules" governing media ownership, but that executives should not expect to see all of the current rules lifted.
He made his comments in a discussion moderated by Sam Donaldson of ABC News during the National Association of Broadcasters convention in Las Vegas. He said the existing rules -- such as the 35 percent cap -- were created in an unjustifiable, arbitrary fashion.
"We got there because that's where we stopped arguing over lines," Powell said.
Any new rules would be created through an examination of market information, he said.
"You have to take the data and convert it into a rule you can explain to the courts," he said.
The most definitive statement made by the chairman was that a ruling would be made by June 2.
"I am duty bound by law to issue a review every two years," he said. "Technically, a biennial review should have been done by the end of last year," he said. "This doesn't get any easier in the fall or next spring. It will still be controversial."
In statements made during his two years as chairman, Powell has supported easing ownership rules. Donaldson, however, asked the chairman if his ability to advance the agenda had been damaged by a recent defeat on telecommunications reform.
Two months ago, his plan to further deregulate that industry fell short when fellow commissioners voted down his plan in favor of less-comprehensive reform.
Donaldson described the defeat as a "palace coup."
"There is not a palace coup," Powell responded. "I think you can easily read way too much into one set of proceedings. You guys can keep reading about palace coups, but we are going to stick to the issues."
In a later panel discussion among FCC commissioners, moderated by ABC News correspondent John Cochran, the same issues were raised.
Commissioner Kathleen Abernathy said the FCC has information supporting deregulation from markets where newspapers own television stations through a grandfather clause.
"That data demonstrates that there is actually some increase in news coverage in those markets," she said. "Through a scale of economies it has allowed more in-depth coverage. ... I am skeptical that there would be any benefit in continuing the ban."
The rest of the commission indicated that ownership rules are likely to be eased, but none were as supportive as Abernathy.
Commissioner Michael Copps drew criticism from Powell earlier in the day, and Abernathy in the panel discussion, for pushing for further public hearings on the matter.
"I don't think there's any magic information out there that we don't already have," Abernathy said.
Copps said more information was needed to determine the implications of such a move. He pointed to the fact that fewer newspapers exist today than when the ownership rules were established.
"You're really talking about a much more monopolistic environment in the newspaper industry," Copps said.
Commissioner Kevin Martin countered Copps' argument, pointing to tighter regulations as a possible cause.
"The ban could have contributed," he said. "News gathering is very costly."
Easing the ban, Martin said, could allow companies to cut costs and bolster the industry.
Abernathy said there is no excuse if the commission can't reach an agreement.
"We know what the choices are," she said. "We need to find out where we have three votes."
Powell also spoke on the topic of converting television stations from analog signals to digital. He said August 2007 remains a target date for industry-wide conversion. That would include stations broadcasting with the new signal, televisions capable of receiving the signal and cable providers carrying the signal.
"This is not a comfortable political climate for this (transition) to go on," Powell said, adding that the process will be completed in a reasonable time frame, "but not a millisecond more."
Broadcasters have already been ordered to begin transmitting in digital format and television manufacturers have been ordered to make digital tuners available.
The NAB, however, has expressed concern over the fact that while two of the three parties involved have been mandated to convert to digital, no mandate has been made of cable companies.
In Las Vegas, seven stations have converted to digital transmission, and Cox Communications Inc., the dominant local cable provider, carries each of those digital signals.
Nationally, however, of 809 stations transmitting digital signals, less than 13 percent of those signals are being carried by cable providers, said NAB spokesman Dennis Wharton.
Powell encouraged broadcasters and cable system operators to work out deals to carry digital signals among themselves.
Copps said movement must happen soon.
"I think it's past time now that we get this decided," he said.
Wharton said without a mandate pushing cable systems to carry the signal, little leverage exists to create workable deals. He said the association is "hopeful" that legislation will passed be mandating digital carriage.
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