WASHINGTON -- Federal regulators, citing a communications boom in America, voted Thursday to end a 31-year-old restriction and let broadcasters own an unlimited number of AM, FM and television stations by 1990.
Since 1953, the Federal Communications Commission has prohibited any one group from owning more than seven stations in each of the three categories or more than five VHF television stations.
The decision, which could revolutionize the industry, sets up a six-year transitional period during which broadcasters will be allowed to own 12 each of AM and FM stations, plus up to 12 television stations - either UHF or VHF.
The nation's broadcasters, who have long said that national ownership limitations were outmoded, hailed the vote as 'most timely' and 'a positive step.' But the action brought a quick bipartisan outcry from Congress.
Members of the House and Senate urged hearings on whether the rule change might encourage monopolies in the TV industry or make it harder for minorities to own stations.
The Telecommunications Research and Action Committee, a consumer group, vowed to appeal the decision, saying, 'Prices for broadcast stations will skyrocket, making entry into the broadcast business more difficult.'
In voting 4-1 to lift the restrictions, with an option to take 'corrective action' between now and 1990, the commission said it found no evidence that the change would do any economic harm or affect the diversity of programming.
Bruce Fein, general counsel of the FCC, noted that broadcasters will still have to comply with antitrust laws and would be subject to scrutiny from the Federal Trade Commission and the Justice Department. The Justice Department, however, has told the commission it foresees no antitrust problems.
Fein also said broadcasters wanting to own more than 12 stations before 1990 may seek a waiver from the FCC, but added that the agency was not encouraging them to do so.
The so-called seven-station rule was first proposed in 1948, when the television industry was in its infancy. The rule, aimed at encouraging ownership diversity to foster a variety of viewpoints and prevent economic concentration, was adopted five years later.
But the commission said the marketplace has changed tremendously since that time.
There are now 9,000 radio stations and the number of television stations has risen from 199 to 1,169. Cable television is available to 64 percent of all TV households and new satellite and microwave TV services are expected to further expand the marketplace.
With 10,000 broadcasters, 5,000 cable broadasters and 12,000 newspapers and magazines, there are about 30,000 'idea sources' nationwide, the commission said.
It said dropping national ownership rules will not affect the number of viewpoints in communities, noting that the FCC policy against cross-ownership of newspapers and television stations at the local level will stay in effect.
FCC Chairman Mark Fowler called the ruling 'pro-competitive,' saying, 'The decision will probably lead to a higher quality of programming as a result of more group ownership in these local markets.'
In September, when the commission first proposed the rule change, there were 174 group television owners -- those who have two or more stations -- in the United States.
Only 10 broadcast groups own seven TV stations and 33 groups, including ABC, CBS and NBC, own five VHF stations.
