Senator MAGNUSON. Well, are you talking about multiownership nationwide or are you talking about multiownership within a market area? Mr. HYDE. Nationwide. Senator MAGNUSON. Nationwide. Mr. HYDE. Yes. Senator MAGNUSON. Your limitation of ownership now is how many? Mr. HYDE. Five VHF and two UHF may be under common ownership. Senator MAGNUSON. Do you intend to change that? Mr. HYDE. The new rule, I think, would prevent any acquisitions of additional stations. Senator MAGNUSON. In the 50 markets? Mr. HYDE. In the first 50 markets-I think the limitation is 2 V's and 1 U in the first 50 markets. This does not require Senator MAGNUSON. You mean two more? Mr. HYDE. No. This would be new acquisitions, and the rule as now projected does not require divestments. Mr. Cox. This is really a particularization of the overall limit, that would not be changed. So, if you owned a station in smaller markets you could still have up to five V's and two U's. But there is some feeling which we are now exploring in the major marketsSenator MAGNUSON. Correct me, if I am wrong. You have a limitation of 5 nationwide, regardless of whether they are in the 50 or not. You could only own five? Mr. Cox. That is right. Five V's and two U's. Mr. HYDE. That is right. Senator MAGNUSON. Now, you are directing an inquiry of rulemaking as to the acquisition in the 50 markets. Mr. HYDE. Right, sir. Senator MAGNUSON. New. Mr. HYDE. Well, conditions under which the owner would have more than 3 in the first 50 markets. Mr. Cox. A man who now has two V's in the top 50 markets, who proposes to buy a third either has to go through a hearing to get it granted or make a showing sufficient to justify a waiver. Senator MAGNUSON. So you freeze the companies that have five. Mr. Cox. Yes. We have not proposed presently to divest them of that five, but we are suggesting Senator MAGNUSON. But you do not let anybody else get his head above water, to become equal to them. Mr. Cox. We are suggesting if they were to sell their present holdings, that then the new rule would apply, and they would have to split them up accordingly. Mr. HYDE. This will be examined on the record. Senator MAGNUSON. I do not know which is best, but it seems to me you ought to treat them all equal, whoever they are. TIMETABLE ON TELEPHONE INVESTIGATION What is the timetable on the telephone investigation? Mr. HYDE. Oral hearings will begin on June 7. We will have several days of oral presentation by the respondent. On July 11, we will have prehearing conferences on the matter of separations which I am very hopeful will be productive. On July 18, we go into cross-examination of this testimony that is to be presented beginning June 7 and 8. I will tell you, Senator, that we plan to press this thing as expeditiously as we can, consistent with our duties in the area, because we recognize that the fact we have a study proceeding raises questions of Commission policy. We recognize that the question that has been raised regarding separations should be resolved promptly because the decisions to be made will affect the operation of State public utility commissions as well as FCC action. Senator MAGNUSON. Well, of course, I have no grief for the telephone company, and I do not suspect I ever did have. It seems to me, right or wrong, they should be entitled to some expedition, because in this expanding economy and the population enlargement, they have to make some plans, too, to meet the public needs. Mr. HYDE. Senator, you were referring to what I wanted to say, the need for decisions, settlement or resolution of matters that cause doubts as to policy. Senator MAGNUSON. Yes. Mr. HYDE. Actually, the Commission in this proceeding is simply carrying on the regulatory function which it is required to do as a matter of law on a continuing basis. In this instance, we are holding hearings, but that should not deter us from expeditiously resolving questions that have been raised. You can expect us to proceed just as rapidly as possible. APPLICATIONS FOR SATELLITE SERVICE Senator MAGNUSON. Would you also, for the record, state, when you go into the satellite program at some length, whether you have applications for service other than Comsat and from how many people? Mr. HYDE. Well, we have heard talk from a number, butSenator MAGNUSON. You mentioned ABC. Mr. HYDE, ABC' did file a request for authority to have their own satellite. Senator MAGNUSON. Do you have any more? Mr. Cox. NBC made a study. Mr. HYDE. There have been studies and indications of interest. I think if any action were taken by the Commission looking toward recognition of satellite service, direct satellite service, that there would be other interests to show up immediately. Senator MAGNUSON. That would be service directly to their affilates? Mr. HYDE. Well, that is right. That is the way it is contemplated in the proposals they have submitted. But they indicated a possibility of inviting other networks, as I recall, and educational systems. NO DIRECT SATELLITE SERVICE AS YET Senator MAGNUSON. We have not technologically advanced far enough yet to have direct service to a set. Mr. HYDE. Well, we have issued-no, sir. Senator MAGNUSON. That is a possibility? Mr. HYDE. It is a possibility, Senator. The last time we discussed this technology with NASA, we were advised that it would be technically possible to provide television service direct from satellite to home through the use of about a 6-foot dish antenna which would be oriented toward a synchronized satellite. The receiving set would have to be a little more sensitive than those in current popular use, and the power of the transmitting satellite would have to be somewhat higher than we have now. But we were told that this added power and this antenna business was all within the reach of our present technology but it would involve such changes as I have mentioned. Senator MAGNUSON. Well, of course, it would involve a problem for networks, because they could have their own program, and the franchiser of the station would be cut out; wouldn't he? Mr. HYDE. I would suggest, Senator, that there are many problems in this area other than just technological. Senator MAGNUSON. I am a little bit curious, too, about it; but it can be done. Mr. HYDE. It can be done, with these developments which I have mentioned, all of which are said to be within reach. Senator MAGNUSON. We may have to go through another session similar to the one we did with the U's and the V's. Mr. HYDE. We might. Senator MAGNUSON. We might have to pass a law for all-satellite sets. [Laughter.] Mr. HYDE. I believe that the social, economic, and political problems inherent in this would undoubtedly warrant congressional attention. Senator MAGNUSON. Yes. Well, I think it would be a nice thing if we could pick up satellite programs for the average person. Senator ALLOTT. We could each have our own dish, then. ter.] [Laugh Senator ELLENDER. Would that be in lieu of a coaxial cable? Senator ELLENDER. And they send their own satellite up, they would have to get a booster to get it up there. Mr. HYDE. There would have to be a transmission from earth to the satellite and then a relay back to the consumer. Senator MAGNUSON. Relay back. Senator ELLENDER. I understand. to have a booster to send it up there. But the satellite would have Mr. HYDE. Yes, indeed. But this is done now, you know, for purposes of transmission intercontinental. Senator MAGNUSON. To send it up is not the difficult part. The difficult part is to get it back. Mr. HYDE. That is right. Senator MAGNUSON. To amplify it. FCC AUTHORITY IN SATELLITE COMMUNICATION Your role is still that if anyone is going to operate any part of the satellite system or a satellite in the atmosphere which involves our country, they still would have to be OK'd by the FCC. Mr. HYDE. Yes. Our authority in this area was clearly laid out- Mr. HYDE (continuing). In the satellite legislation. Senator MAGNUSON. In the bill, yes. It could not be done without your authority. Mr. HYDE. We have tremendous problems in administering the act as it now stands without undertaking these new proposals. These questions which I enumerated about whether or not Comsat is to be a carrier's carrier and who would be the authorized users, and so forth. Senator MAGNUSON. Yes, or where there was a combination. Mr. HYDE. Right, sir. CABLE BETWEEN THE UNITED STATES AND PUERTO RICO Senator MAGNUSON. Now, what about a cable between the United States and Puerto Rico? Mr. HYDE. Well, here is an area where we have got to make a careful judgment because we naturally have an interest in fostering communications by satellite. But we have technological developments in submarine cable and transistorized cable which would give us capacity larger than any one we have now. It is a feasible thing. I suppose our national policy should work out to have both systems, but both of them must be viable. INCREASE IN UHF APPLICATIONS Senator MAGNUSON. Would you put in the record the increased number of the UFH applications, since the all-channel set situation? Mr. HYDE. Yes, I would be very pleased to do that, Senator Magnuson. Yes. (The information follows:) The total number of applications for commercial UHF channels since May 1, 1954, when the all-channel receiver law went into effect, is 186. STAFF NEEDED TO PROCESS INCREASED APPLICATIONS Mr. HYDE. May I, as you mentioned, say that in order to implement the policy enunciated by Congress in the enactment of the allchannel set law, and in the interests of more diversity, we just must have the facilities to process this increased number of applications promptly. It is one thing to have a declared policy, and it is another thing to make it effective in terms of acting upon it. Senator MAGNUSON. Well, maybe you take too long on some of these things. Mr. HYDE. Well, I hope not. Senator MAGNUSON. You know it is not necessarily true that three people can do things faster than one. Mr. HYDE. No, sir. Senator MAGNUSON. Sometimes one can do it faster if the other two are not around bothering him. Mr. HYDE. Yes. You, of course, are correct in suggesting it-we do have a study going on in our agency operations designed to increase our efficiency. It is referred to in the attachments, which I submitted, to my statement as an addendum thereto. STATUS OF CLEAR CHANNEL HEARINGS Senator MAGNUSON. What is the status of the clear channel hearings? Mr. HYDE. Well, there are actually no further hearings on the schedule. We do have several general petitions to the Commission to authorize power in excess of 50 kilowatts, which has been the ceiling up to now. When we examined this matter recently against our entire program, we decided that for the time being we should give earlier priority to more pressing problems. APPLICATIONS FOR EDUCATIONAL TELEVISION Senator MAGNUSON. Then, also, put in the record the increased applications in which the chairman is deeply interested, on educational TV. Mr. HYDE. Yes. Senator MAGNUSON. And a little progress report. Mr. HYDE. Senator, if I might mention that subject again, I do believe that this is an area where we can make a greater contribution to excellence in program material than we can in any other way. (The information follows:) The total number of applications for educational television channels since June 1, 1963, when the Department of HEW began accepting applications for matching grants under the Educational Television Facilities Act of 1962, is 73. NETWORK FOR EDUCATIONAL PROGRAMS Senator MAGNUSON. They have a problem of programing, but they are improving some, I think. Mr. HYDE. Recently, I am told the Metropolitan Opera of New York was available for a network show. The commercial networks were unable to show it. I think it would have been educational to show it, and if there were a network which could proceed with cultural matters like that from time to time, this would tend to ease, loosen up, the availabilities in other areas. Senator MAGNUSON. Well, this involves a sensitive area in advertising also, with the networks. Of course this is primarily their problem. NUMBER OF COMMERCIALS PER HOUR Incidentally, what is the status on the number of commercials per hour? Mr. HYDE. The Commission's rulemaking efforts in that area, you know, were abandoned when the House took a critical view of it. The policy now Senator MAGNUSON. So, it has no status now? Mr. HYDE. There is no such rulemaking. It is case by case, and largely it is a matter of administering these new application forms. The stations state their policy in their applications and FCC checks to see how they administer their own policies. Senator MAGNUSON. You only have an opportunity every 3 years, then? Mr. HYDE. Yes; that is right. |