Chairman Wheeler Proposing Streamlined Broadcast Foreign Ownership Review

Federal Communications Commission Chairman Tom Wheeler has circulated a notice of proposed rulemaking (NPRM) to simplify the process for exceeding the FCC's 25 percent trigger for further review of the proposed foreign ownership of a US broadcast property, aligning the broadcast review more with the way it handles common carrier requests for foreign ownership above 25 percent.

The FCC is proposing to provide greater flexibility for requests by broadcasters for more than 25 percent foreign ownership and guidance on how to calculate that ownership interest. In part the decision stems from a FCC declaratory decision earlier in Sept upholding its decision allowing Pandora's investment in a radio station. The proposal would also increase the requirement to identify and seek approval for such petitions from every foreign shareholder to those with at least 5 percent of stock. Apparently, what it does not do is change the prohibition on foreign government ownership in broadcast stations, or the 20 percent cap on direct foreign investments, or the fact that the FCC has to coordinate with other agencies on issues like national security.