Letter To Julius Genachowski, Chairman, Federal Communications Commission

Letter

Congresswoman Waters Requests FCC Public Hearings on Comcast-NBC Merger

Congresswoman Maxine Waters (D-CA) is requesting that the Federal Communications Commission (FCC) hold public hearings on the proposed Comcast Corporation merger with NBC Universal (NBC). In a letter to FCC Chairman Julius Genachowski that was signed by 45 other Members of Congress, the Congresswoman also submitted a series of questions for both Comcast and NBC to answer.

"I have been concerned about media consolidation and a lack of programming and ownership diversity in media for years," said Congresswoman Waters. "Comcast is the nation's largest provider of cable and internet services, so the merger's impact will affect virtually every American. My colleagues and I want the FCC to conduct a thorough review of the Comcast-NBC merger, including public hearings, and to have our questions answered in a timely and substantive manner."

Recently, the FCC agreed to extend the public comment period for the Comcast-NBC merger by 45 days after Congresswoman Waters asked for the extension in a letter and later introduced legislation to mandate an extension by law. In this most recent letter the Congresswoman and her colleagues applauded the FCC for that decision and cited the FCC's history of holding public hearings on previous large mergers such as AOL/Time Warner, MCI WorldCom/Sprint and AT&T/Media One as precedent for Comcast/NBC public hearings.

The questions submitted by Congresswoman Waters and her colleagues include a detailed analysis of the companies' employment of women and minorities in executive leadership, management positions, and contracting opportunities. The Members also inquire about Comcast and NBC's efforts to foster creative freedom and diversity in media programming, distribution, and ownership, as well as seek information on the companies' carriage agreements, cable rate increases, labor relations, advertising, and their compliance with current FCC rules.

"With a new Administration and new FCC leadership, I believe that this merger will get the scrutiny it deserves," said Congresswoman Waters. "Comcast and NBC's records on corporate and programming diversity have recently been critiqued by many consumer and media advocacy groups. We all have a collective responsibility to ensure that women and minorities have a place in the corporate office and on television, and that the American people are not given less services or charged more money by a result of this merger."

May 7, 2010

Julius Genachowski
Chairman
Federal Communications Commission
445 Twelfth Street, SW
Washington, DC 20554

Dear Chairman Genachowski,

We write to commend you and the Media Bureau for accepting the request for an extension of the comment period in the Federal Communications Commission's review of Comcast Corporation's proposed acquisition of NBC Universal. We strongly believed that it was in the public interest for the FCC to provide adequate time for all impacted parties to file detailed comments and analysis detailing the impact this merger would have on consumers and the media industry.

While your leadership is to be commended on issues such as network neutrality and the preservation of diverse ownership of media licenses, the Commission must give the Comcast-NBC merger its most labor-intensive review. We urge the FCC to thoroughly review this merger and consider Comcast and NBC's previous records on diversity, consumer relations, and labor relations. In addition, the FCC must hold public hearings so that the newly appointed FCC Commissioners will have every opportunity to understand how this merger will impact communities across the nation.

As members of Congress, including many from the Congressional Black Caucus (CBC) and Congressional Hispanic Caucus (CHC), we are most interested in how the applicants to this merger will involve underserved communities and minorities in media programming and ownership opportunities. As Comcast Corporation stand to gain the controlling interest in NBC Universal properties, its record on diversity, labor, and consumer relations must be fully reviewed by the FCC. Recently, the Hispanic Association on Corporate Responsibility (HACR) and the National Hispanic Media Coalition issued report cards grading both companies on the diversity of their workforce. HACR gave Comcast 50 points on a 100-point scale. Similarly, the National Hispanic Media Coalition gave NBC Universal an overall grade of C+, which included and F grade for "Creative Executives." This failing grade was attributed to the absence for several years of any Latinos in NBC Universal's team of creative executives.

Therefor, we have attached a list of questions that we urge the FCC to require Comcast and NBC Universal answer for the public record. These questions include a detailed analysis of the companies' employment of women and minorities in executive leadership, management positions, and contracting opportunities. We also need to understand what Comcast and NBC have done to foster creative freedom and diversity in media programming, distribution, and ownership. In order to fulfill its obligation to review the merger's impact on the public interest, the FCC must consider this and other information on the companies' carriage agreements, cable rate increases, labor relations, advertising, and the companies' compliance with current FCC rules.

In addition to the attached questions, the FCC must also hold public hearings. Ultimately, the impact of a deal between Comcast and NBC Universal will be felt by consumers at the local level. Therefor, it is imperative that the public be given ample opportunity to have an open dialogue with the Commission about how this merger will affect local communities - particularly minority and low-income communities.

By the standards of the current FCC, public hearings are appropriate. This Commission has repeatedly expressed its commitment to greater transparency and public outreach. Indeed, in a number of other important proceedings the FCC has scheduled and held multiple field hearings: AOL/Time Warner (7/27/00); AT&T/Media One (2/4/00), and MCI WorldCom/Sprint (4/5/00). We expect this same commitment to apply to this commission's review of the Comcast-NBC merger. The fact that merger-specific public hearings have not been held by the last two chairmen of the Commission merely reflect the prior administration's approach to merger review - an approach that led to massive media consolidation and FCC deregulation.

Therefore, we urge the Commission to prepare a plan for multiple hearings and require that Comcast and NBC answer the attached questions. Further, the FCC must provide the public with sufficient notice, time, and opportunity to participate. Your vision and leadership on critical issues has proven invaluable in steering the FCC towards policies that consider the importance of diversity, localism, and competition within an ever-evolving dynamic media market. We sincerely hope you will continue to fulfill your commitment to the American public and ensure that the FCC gives the Comcast-NBC merger and exhaustive and thorough review.

Sincerely,

Maxine Waters

CC: Michael J. Copps, FCC Commissioner
CC: Robert M. McDowell, FCC Commissioner
CC: Mignon Clyburn, FCC Commissioner
CC: Meredith Attwell Baker, FCC Commissioner

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