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Q: Foreign Owned TV Stations ( Answered 5 out of 5 stars,   0 Comments )
Question  
Subject: Foreign Owned TV Stations
Category: Business and Money > Finance
Asked by: santabarbara-ga
List Price: $20.00
Posted: 15 Oct 2006 22:06 PDT
Expires: 14 Nov 2006 21:06 PST
Question ID: 773932
Can foreign companies buy U.S. TV or radio broadcasters? What are the
FCC regulations regarging this issue?
Answer  
Subject: Re: Foreign Owned TV Stations
Answered By: bobbie7-ga on 16 Oct 2006 06:48 PDT
Rated:5 out of 5 stars
 
Hi Santabarbara!


Foreign companies can own up to 25 percent of television stations.

Section 310(b) of the Communications Act.

?That provision prohibits a corporation that is more than 25%
foreign-owned from holding an FCC-issued broadcast license unless the
FCC determines that such ownership would serve the public interest.?
http://www.fcc.gov/Speeches/Tristani/Statements/2001/stgt149.html

Federal Communications Commission 

?Section 310 of the Communications Act of 1934, as amended by the
Telecommunications Act of 1996, imposes foreign ownership restrictions
on U.S. broadcast, common carrier, or aeronautical radio station
licensees. Section 310 covers foreign ownership restrictions
applicable to FCC licences, and Section 310(b) in particular is
implicated in the majority of cases where foreign ownership is an
issue.c
Section 310(b)(3) is non-discretionary, and prohibits foreign
governments, individuals and corporations from directly owning more
than 20% of the stock of a broadcast, common carrier, or aeronautical
radio station licensee. 47 U.S.C. 310(b)(3). According to FCC
Guidelines, this section also applies in situations where a foreign
entity holds equity or voting interests in a licensee through an
intervening domestically organized holding company that itself holds
non-controlling interests in the licensee.?

?Section 310(b)(4) establishes a 25% benchmark for indirect investment
by foreign individuals, corporations and governments in entities that
control a broadcast, common carrier, or aeronautical radio station
licence, and also gives the FCC discretion to allow higher levels of
foreign ownership unless it finds that such ownership is inconsistent
with the public interest. 47 U.S.C. 310(b)(4). According to the FCC
Guidelines, this section also applies in situations where the foreign
entity holds equity or voting interests in a domestically organized
holding company that directly or indirectly controls the licensee. The
FCC also gives preference to foreign investments by WTO Member
countries, who are treated with a refutable presumption that foreign
investment from WTO Member countries does not pose competitive
concerns in the U.S. market.?

infoDev
http://www.ictregulationtoolkit.org/content/practice_notes/detail/1803




The relevant provisions of Section 310 of the Act are as follows:

Section 310. Limitation on Holding and Transfer of Licenses

(a) The station license required under this Act shall not be granted
to or held by any foreign government or representative thereof.

(b) No broadcast or common carrier or aerona utical en route or
aeronautical fixed radio station license shall be granted to or held
by?

(1) any alien or the representative of any alien;

(2) any corporation organized under the laws of any foreign government;

(3) any corporation of which more than one-fifth of the capital stock
is owned of record or voted by aliens or their representatives or by a
foreign government or representative thereof or by any corporation
organized under the laws of a foreign country;

(4) any corporation directly or indirectly controlled by any other
corporation of which more than one-fourth of the capital stock is
owned of record or voted by aliens, their representatives, or by a
foreign government or representative thereof, or by any corporation
organized under the laws of a foreign country, if the Commission finds
that the public interest will be served by the refusal or revocation
of such license.

http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-3610A2.pdf



Read more:

International Bureau Releases Foreign Ownership Guidelines for Common
Carrier and Aeronautical Radio Licensees
http://www.wrf.com/publication.cfm?publication_id=11772

Adoption of an Declaratory Ruling on Section 310(b)(4) Waivers
http://www.fcc.gov/DiversityFAC/041210/foreign_ownership/foreign_ownership_rule.pdf

FOREIGN OWNERSHIP IN COMMUNICATIONS:
ARE THE RESTRICTIONS OUTDATED?
http://www.ndu.edu/inss/books/Books%20-%202000/essa/essafoca.html



Search terms:
FCC foreign ownership


I hope the information provided is helpful!

Best regards,
Bobbie7
santabarbara-ga rated this answer:5 out of 5 stars
Great job! Exactly what I needed. Many thanks.

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