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•i <br />FCC To Seek Comment <br />On Cross-Ownership <br />^ r.. . • <br />____ t <br />^w|ryr <br />By JEANNINE AVERSA <br />mi ASHINGTON — In an effort to pul consideration of the broad- <br />wW cast network/cable cross-ownership rule on a fast track, the <br />Federal Communications Commission last Thursday voted 5-0 to <br />seek comment on whether the provision should be eliminated or <br />Importantly, the agency also unveiled proposals that would per­ <br />mit network ownership of cable systems subject to certain s^- <br />guards ?nd asked for interested parties to comment on those. The <br />FCC hopes to come out with a new ruling in late 1992. <br />The safeguards, aimed at protecting editorial diversity and fos­ <br />tering competition, include allowing networks to own cable sys­ <br />tems in large or competitive markets or where second, competing <br />—— cable systems exist. <br />Other options would be to <br />allow the networks to own ca­ <br />ble systems up to a certain na­ <br />tional subscriber limit or sub­ <br />ject to must-carry and anii-dis- <br />crimination safeguards. <br />While four of the FCC’s five <br />commissioners said they have <br />not made up their minds on <br />whether the cross-ownership <br />ban should be eliminated or re­ <br />laxed, FCC Chairman Alfred Sikes advocated a relaxation of the <br />^ m"nde*fMii^ the Big Three broadcast networks from owning <br />cable systems. . . .... <br />FCC Commissioner James Ouello made clear that his vote to <br />move forward on the proceeding should not be construed as a vote <br />in favor of eliminating or relaxing the ban. a point also made by <br />commissioners Sherrie Marshall, Ervin Duggan and Andrew Dar- <br />^ Duggan and Sikes said they are particularly interested in what <br />parties have to say about the proposed safeguards. <br />Wall Street sees a repeal or major change in the rule as positive <br />because it will bring in another group of buyers for cable, sai^car <br />Steams analyst Ken Goldman. Cable stocks were trading up Thurs­ <br />day afternoon. Goldman said this may have been related to the FCC <br />action, but more likely was rooted in the expectation that a new <br />niling on highly leveraged transactions will be coming out stoo. <br />The entire cross-ownership item is expected to be a ‘ough one <br />SEE FCC, PAGE 4J <br />XcoNTisvSD-noujMB^^f^^ <br />Tfof the «>n»n “**<”*^^®“**** 5^^ <br />4.L.V.! <br />Four of the five <br />commissioners <br />said tficv liovef t <br />fTiude uf3 ificir <br />minds aboul l'i<' <br />issue <br />uw new iwi <br />tWS«vef <br />............ <br />l«i^