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

2 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

3 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

4 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

5 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

6 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