FCC Advisory Committee on Diversity for Communications in the Digital Age: Transactional Transparency and Related Outreach Subcommittee January 26, 2004 Public Meeting

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FCC Advisory Committee on Diversity for
Communications in the Digital AgeTransactional
Transparency and RelatedOutreach
SubcommitteeJanuary 26, 2004Public
Meeting
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Transactional Transparency and Related Outreach
Subcommittee

• Status of Subcommittee Efforts
• Established goals of the Subcommittee and
  evaluated potential recommendations
• Propositions
• A key barrier to achieving ownership diversity in
  the communications business is the limited access
  to industry deal flow for members of minority
  groups and women
• Deal flow encompasses the process by which
  business transaction opportunities are presented,
  evaluated and pursued
• The Subcommittee will be assessing these and
  other ideas through outreach to the Commission,
  experts, and affected groups, particularly
  regarding the pragmatic implications (pro and
  con) of each potential recommendation

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Transactional Transparency and Related Outreach
Subcommittee

• Three Categories of Potential Recommendations
  Under Review
• 1. Affirmative Deal Flow Enhancement Mechanisms
• 2. Transactional Non-Discrimination Rule and
  Certification
• 3. Information, Education, Clearinghouse, and
  Voluntary Outreach Programs

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Transactional Transparency and Related Outreach
Subcommittee

• 1. Affirmative Deal Flow Enhancement Mechanisms
• Create communications business opportunities
  accessible to members of minority groups and
  women (e.g., spectrum leasing, new licenses,
  expansion and policing of auction designated
  entity provisions)
• Create or seek affirmative legal incentives to
  seek out and include members of minority groups
  and women in transactions (e.g., tax
  certificate-like program, expedited processing,
  other regulatory incentives)
• Promote voluntary agreements from businesses,
  associations, brokers, and educational
  institutions to take affirmative steps to make
  members of minority groups and women aware of
  communications transaction opportunities

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Transactional Transparency and Related Outreach
Subcommittee

• 2. Transactional Non-Discrimination Rule and
  Certification
• Consideration of potential FCC rule prohibiting
  transactional discrimination, possible structure
  and operation of any such rule, and compliance
  mechanisms, including whether to require
  certification as to compliance (including
  broadcast, cable, wireline, wireless
  transactions)
• Consideration of how to implement potential rule
  (e.g., whether to require certification on FCC
  application form), and consideration that
  Commission action to craft and enforce underlying
  rule would be required
• Subcommittee still assessing various elements
  (including practical utility of prohibition,
  impact on asset valuation, impact on current
  buy/sell process in market, impact of potential
  litigation, transactional delay, and enforcement
  challenges), and considering other ideas and
  alternatives to achieve same end result

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Transactional Transparency and Related Outreach
Subcommittee

• 3. Information, Education, Clearinghouse, and
  Voluntary Outreach Programs
• Establish a Commission or privately administered
  database of communications business sales,
  leasing, and investment opportunities
• Work to increase awareness of current spectrum
  leasing opportunities
• Conduct educational programs regarding
  communications business ownership and emerging
  technologies
• Provide investment banks, venture funds, other
  entities with a special FCC certification or
  FCC website listing for participating in
  voluntary programs such as these