WASHINGTON, Feb 16 (Reuters) - U.S. communications regulators should quickly relax ownership restrictions on the radio and broadcast television industry, Rep. Fred Upton, chairman of the House Energy and Commerce subcommittee on communications, said on Thursday.
Upton, a Michigan Republican, cited the proliferation of broadcast stations, cable, satellite television and radio and the Internet as evidence that consumers have sufficient choices to justify allowing companies to own more outlets.
"Common sense tells us that this explosion of media sources should eliminate any concern over a lack of diversity of views in the marketplace and competition," Upton said in a speech to the Media Institute.
"This growth (in sources) remains unabated and more than makes the case for regulatory relief in the broadcast sector," he said. Upton sent letters to U.S. Federal Communications Chairman Kevin Martin last week urging quick action.
An FCC spokeswoman had no immediate comment.
Companies are barred from owning a newspaper and a television or a radio station in the same market. Additionally, companies are restricted to owning a limited number of radio stations in a market depending on its size.
The FCC has been unable to launch its review of restrictions on the radio and television industry because of a two-two split among the four commissioners. The fifth commissioner slot has been vacant for almost a year.
President George W. Bush has nominated Robert McDowell, a telecommunications lawyer, to fill the third Republican seat on the five-member FCC and is expected to break the deadlock over media ownership if he is confirmed by the U.S. Senate.
The FCC in 2003 voted to ease a ban on a company owning a newspaper and a television or radio station in a market. An appeals court agreed with that decision, but put it on hold because the FCC failed to sufficiently justify the new rule.
Regulations also restrict a company from owning more than 8 radio stations in markets with at least 45 stations. In markets with 30 to 44 stations, an operator can own up to 7 stations. And in smaller markets with 15 to 29 stations, a company can own up to 6 stations, and up to 5 stations in markets with less than 14.
The event was sponsored by leading media companies, including some that have sought regulatory relief, including radio operator Clear Channel Communications Inc. (CCU.N: Quote, Profile, Research), and Tribune Co. (TRB.N: Quote, Profile, Research), which owns newspapers and broadcast outlets.
The FCC's Martin, a Republican, tried to launch a review of ownership rules last year but failed to reach an agreement with the two Democrats on the panel. Martin has backed eliminating the cross-ownership ban.
Separately, Upton said he expected his subcommittee to consider a bill to overhaul U.S. telecommunications laws next month and he was aiming to complete the full committee review before the Easter holiday in April.
