FOR IMMEDIATE RELEASE         NEWS MEDIA CONTACT
  June 17, 1999                      Audrey Spivack at 202-418-0500
       
                              
      FCC CHAIRMAN KENNARD DETAILS NEW TAX CERTIFICATE
  FOR THE AGE OF CONVERGENCE; URGES CONGRESS, INDUSTRY AND
           CONCERNED CITIZENS TO SUPPORT PROGRAM
  
  
       FCC Chairman William E. Kennard detailed a plan to open the doors of
  opportunity to women, minority and small-scale entrepreneurs across all
  communications industries.  As the different communications industries converge
  - when phone lines carry movies, cable lines carry phone calls, and the airwaves
  carry both, Chairman Kennard declared, "We can and should initiate a new tax
  certificate program."  He made these remarks today at a luncheon in New York
  hosted by the Citizenship Education Fund. 
  
       Kennard outlined five elements of a new tax certificate program;
  
       [1] An effective tax certificate must apply not just to radio, TV and cable,
  but to all telecommunications businesses including wireline, wireless and
  satellite;
  
       [2] A useful tax certificate program should provide incentives for any
  small, disadvantaged business, but it should recognize that companies owned
  by minorities and women face unique obstacles which warrant enhanced
  benefits; 
  
       [3] A successful program must impose limits on how many times an
  entrepreneur can benefit from a certificate;
  
       [4] An efficient plan needs strict standards on firms eligible to purchase
  licenses so that large corporations or unscrupulous dealmakers operating as
  fronts are not the ones to benefit from this program; and
  
       [5] A cost-effective program needs safeguards to prevent speculative
  ventures from indiscriminately flipping properties and to attract owners
  committed to building businesses that serve communities.
  
       Kennard encouraged Congress, industry and activists to support a new
  tax certificate.  He emphasized the need to preserve this diversity of viewpoints
  to keep public debate lively and to keep the nation's democracy vibrant.  He
  said, "Let's work together - business, Congress, experts, activists and citizens -
  to create a new tax incentive program that honors our most cherished values
  and creates a communications sector that is truly open to all Americans."
  
       For 17 years under the original tax certificate program, if an owner of a
  radio or TV station sold it to a minority, the broadcaster could defer capital gains
  tax.  In 1995 Congress ended the program.
  
                          - FCC -