In attempt to correct what FCC Chmn. Powell said had been ‘a quag...

it would conduct “comprehensive examination” of its rules and polices on multiple ownership in individual markets. Action is designed to make those rules “more responsive to current marketplace realities” while maintaining its “core public interest concerns” of promoting diversity and competition, Commission said. Noting “substantial changes” had resulted in ownership consolidation as result of 1996 Telecom Act, agency “expressed concern that FCC policies on local ownership do not adequately reflect current industry conditions.” Commission requested comments on: (1) “Specific empirical data” on effect of consolidation on public interest. (2) How sale of existing group should be handled. (3) How to treat claims that station was failing, dark or unbuilt. (4) Whether FCC should rely on numerical limits or other rules in acting on public interest determinations. (5) Whether public interest should be handled in “case-by-case analysis.” (6) How to treat local marketing, time brokerage and joint sales agreements under rules. While rulemaking is under way, Commission said staff will continue to “flag applications that raise competitive concerns” in given market. FCC also set timetable for Mass Media Bureau to resolve pending applications -- giving bureau 90 days to come forward with recommendations on those pending for more than year. Endorsing proceeding, Comr. Copps said “the criteria used to evaluate proposed transfers and mergers cry out for sunshine and clarity… The public interest is served when the private sector has clear and transparent rules of the road… “ Comr. Martin said it was “imperative that we get moving” to clarify the rules,” but said he would have favored “more direct action” immediately to regulate mergers and acquisitions. NAB Exec. Vp Henry Baumann said Commission had “done the right thing” in moving to correct FCC’s “confusing and uncertain standards” on mergers. But, he said, it’s “disappointing” that “flagging” practice will remain. Baumann said it had “resulted in long delays for hundreds of transfer applications that meet all applicable standards.” At news briefing, Mass Media Deputy Bureau Chief Robert Ratcliffe said transfer and merger applications were flagged if approval would result in single owner’s having 50% of radio advertising in given market or 2 group owners combined with 70%.