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02/27/04 5:59 PM

#160 RE: jmhollen #159

Reuters Summit-FCC's Martin ponders indecency on pay TV, radio
Wednesday February 25, 6:31 pm ET
By Jeremy Pelofsky


NEW YORK, Feb 25 (Reuters) - U.S. regulators should consider whether radio and television services carried by cable and satellite must adhere to indecency standards, Federal Communications Commissioner Kevin Martin said on Wednesday.
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Pressure has been building in recent months to address the growing coarseness on television and radio, with some lawmakers and regulators pondering whether the limits on over-the-air broadcasts can be applied to cable and satellite services.

Speaking to the Reuters Technology, Media and Telecommunications Summit, Martin noted that shock jocks Opie and Anthony, fired after a stunt involving sex in famous places, were now on satellite radio.

"I think you are hearing from the radio side the complaint that 'We'll live by whatever rules, but we think the rules have to be fair to everyone who is in this medium,' and you're hearing from the broadcast television side as well," he said.

"I think that's a legitimate issue, which is why I think we need to try to take a look on a wider survey," Martin said.

Satellite radio and television providers are licensed by the FCC, which could potentially hold them accountable, he said. But he conceded that companies like Sirius Satellite Radio Inc. (NasdaqNM:SIRI - News) could argue that since consumers pay for their products, they would not have to comply.

FCC officials have said court decisions have given cable and satellite companies free-speech protections much like newspapers.

Congress so far has only authorized the FCC to go after the over-the-air broadcasters, since they hold licenses to use the public airwaves, but lawmakers have questioned whether the agency should also be looking at channels higher on the dial.

The FCC has been clamping down on indecency incidents on television and radio in recent months, and the issues leapt onto the front burner after singer Janet Jackson exposed her bare breast during the NFL Super Bowl earlier this month, prompting promises of stiffer fines and demands for reform.

Martin renewed his call for the FCC to affirm local television stations' right to offer alternative programming if they object to a show and for cable companies to allow customers to block channels they find offensive and not have to pay for them.

"Cable companies need some way to empower parents and families to have more choice," Martin said. "I think that it has the potential to be a problem when they are receiving things they object to and have to pay for that."

His comments come a day before six network television and radio executives are due to go before a congressional subcommittee for another grilling on indecency.

Lawmakers are contemplating legislation that would increase fines for indecency incidents sharply.

Earlier on Wednesday Clear Channel Communications Inc. (NYSE:CCU - News), the largest owner of U.S. radio stations, said it would enforce a new zero-tolerance policy against disc jockeys who commit indecency violations, one day after firing a popular on-air personality.

In that case, the FCC has proposed fining Clear Channel $755,000 for a broadcast of Bubba the Love Sponge that contained purported cartoon characters describing explicit sexual activities at a time when children were likely to be listening.

Clear Channel also said it would also conduct in-house training for employees and mete out automatic suspensions to anyone the FCC alleges has violated indecency rules.

(News from the Reuters Technology, Media and Telecommunications Summit will be delivered throughout the day from Wednesday to Friday to Reuters terminals and to the Reuters.com Web site, http://www.reuters.com)