Please Stand By
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>> We will start in a few moments.
You on the telephones, hang in there and you will introduce yourselves.

>> everyone should have a copy of the agenda and the proposals for today.
All of you on the telephone, they were sent by e-mail also.
>> terrific.
>> We will start and if we could go around the room and introduce ourselves.
I am the dfo here at the FCC.
>> CBS/Showtime.
>> [INAUDIBLE]
>> Sprint/Nextel Corp..
>> Susan Fox, Disney ABC.
>> ann orr.
>> I am chairing the committee.
>> AT&T.
>> who is next?
>> Disney, ABC.
>> telecom.
>> [INAUDIBLE]
>> anyone else?
>> Racketeer is.
-- ray guitterez.
>> anyone else?
Thank you very much.
Good morning and welcome to the third meeting under its present Charter of the advisory committee and diversity for Communications in a digital age.
Over the past month, all of the subcommittees have met, put in a great deal of effort into they have prepared to record -- report on the progress.
A special thank you to David on the telephone who facilitated today's report.
Some of the reports are interim because the project's proposed are very, very substantial.
And some contain, on the contrary, very clever recommendations that can more quickly serve to provide opportunities for small businesses, minority applicants, and new entrants.
It has been a pleasure to work with all members of the subcommittees.
This is just the beginning.
I feel we are on a roll.
With that, I will turn the meeting over to the chairman.
>> Barbara, I want to share her sentiments.
I think we are off to a terrific start as you'll see as we get through the recommendations this morning.
I have to thank Barbara for all the work she has put in.
We are where we are because of her efforts.
How she has really worked hard.
Could I ask this group to give her a round of applause, please?
[APPLAUSE]
we are joined, fortunately, by Jonathan Adelstein, who has joined us to make some opening remarks.
Mr. Commissioner, the floor is yours.
>> Thank you, Mr. commissioner.
[LAUGHTER]
good morning.
Thank you for all the work you're doing.
Barbara, for your support to this group, I certainly appreciate the energy you bring to this, we have an incredible group here.
I especially appreciate your being here to promote the ideals of diversity in our society.
We saw in Chicago last week, we have a real outpouring from the people of Chicago, really talking about what I think is a crisis in this country.
I sense a concern among the populace, minority populations.
They are very concerned about this issue and we desperately need to enhance the diversity of ownership and employment opportunities for minorities, women in these industries we oversee here.
Under today's -- Barbara said today's meeting has reports from some committees.
I do not want to take too much of your time.
Some of you may note plastic at the Chicago hearing and called for an FCC forum to form an independent panel of female and minority ownership.
But been based on the failure with minority ownership, I think -- we have almost a moral obligation to address this problem.
I think the panel needs to be independent, bipartisan, representatives of all stakeholders, large and small broadcasters, fino minority broadcasters, new entries, investors, advertisers, and this committee needs to this debate and that, too.
-- female minority broadcasters.
We have recommended over the years, an independent panel.
We will get more than 43 proposals that have been collecting dust over the years.
We have a great group.
Some of these go back to the 1990's.
I appreciate this committee's support for it that, in independent panel.
I compliment the work you're doing.
You're doing some very important work.
I think these recommendations are things will interested in your input on the committee will consider proposing access to capital conference from Telecom entrepreneurs, the special focus an investment-banking and private equity groups.
I think is a great idea.
Develop an independent bipartisan panel.
As I said during the first meeting, I think the diversity committee is needed today and in the future.
We can honestly say we have achieved these goals, I think we all need to work together to do a lot more.
I know your predecessor made a lot of thoughtful recommendations to increasing minority levels of capital, talking about lowering various SEC policies that facilitate greater minority participation in these industries.
-- fcc.
I also know the commission has not always been -- acted on any of them.
We want to act on all of the ideas.
I think it is especially important.
We cannot afford to wait any longer.
I think you recognize the desperation of the situation.
I would like to make a brief mention about another recommendation for consideration today that deals with the guide for diversity in media telecom industries.
It is a great idea.
I think it can be very helpful.
It does not provide any regulatory measures, but it is a step in the right direction.
I would like to make one proposal.
I did you should add a section on how the government, federal, state, and local, can help advance ownership diversity.
This guide book will likely be policymakers.
All levels of government.
Those are some of the thoughts I would like to share with you.
Again, thank you.
Thank you for giving me the time to say hello.
>> We appreciate you coming, Jonathan, in your fourth thinking about this terrible problem we're all facing.
And your fourth thinking.
We appreciate it very much.
OK, moving on to the next item on the agenda.
With the National Association broadcasters foundation, has some very interesting diversity initiatives that I thought it would be worthwhile to share with the committee.
Just to give you some ideas of some kinds of other things people are doing might help stimulate some thinking on our part in terms of coming up with some ideas.
I will turn the floor over to ann.
>> thank you.
I want to thank you, Mr. Chairman, for inviting me to be here.
Barbara, you as well.
We are excited to talk about the programs we have at the nab Education foundation.
The mission of our foundation is largely divided into four separate focuses.
The first is education and training programs and those are targeted to people of color and women.
The second is diversity initiatives, largely in the area of our reach which augment these programs.
We also focus on the importance of highlighting the importance of the First Amendment as well as find ways to honor community service and celebrity on behalf of our stations.
-- philanthropy.
I'm here to talk a largely about our diversity programs.
We characterize it as the pipeline to the advancing the goal of expanding diversity at all levels in -- none of broadcasting.
The goal here -- expanding diversity at all levels of broadcasting.
We want to support them along the way as they advance their careers with different training programs, a different career levels until finally, we reach an ultimate program which is the broadcast leadership training program which focuses on station ownership and a senior executive levels.
In terms of ownership and senior executive levels, limit talk about three separate initiatives.
The first is the broadcast leadership training program.
This program is a 10-week and NBA style program that brings together people, color, and women to learn the trade of what it takes to purchase the station and operated effectively.
Over the course of the 10 months, they learn from communication attorneys, the fcc, as well as business and industry leaders in broadcasting and finally, most of courtly, financial experts -- Wall Street, which are capitalists, etc. -- say they have not only agreed handle on how to put together a business plan, how to shop around to different financial opportunities, but also they are able to have this tremendous network that they call upon a time and again of people in the financial industry of communications experts, of people in broadcasting so that when they are ready to forge ahead and work on purchasing stations, they are really on solid ground to do so.
The focus of this 10-weakened program is largely in the categories of developing a business plan in securing financing, identifying and evaluating station, negotiating the deal, closing the takeover, and operating for success.
We started this program in 2000, we are not in the eighth year.
We have had 125 people who have graduated from the program, 15% of its graduates currently own stations and a number of others are actively looking to purchase stations.
An additional 20 have been promoted to higher levels in the corporation's or move to larger markets.
As part of our efforts to facilitate the purchase of stations, we have also been working with some of our member companies to host forums.
We do this -- we serve as a posting a gem.
Mmtc bring together clear Channel Citadel and several other companies who want to provide opportunities for people of color and women to purchase properties up for sale.
We are fortunate enough to serve as the host of those forums, the first is which clear channel.
You see that in the picture here, where the company comes together with people of color in advance the sale of their properties so that everybody is fully informed about the process as well as eventually, the properties that are for sale.
That initially has been very promising.
In fact, David is that the radio show as we speak, about the radio -- the host, another one of these forums.
Another what I do not have a picture of, but we have worked closely with mmtc to post ownership forums and we do this at our show in Las Vegas will bring together experts in the industry as well as financial deep pockets to sit in a series of round tables to people interested in purchasing [INAUDIBLE]
to learn more about the process of their own journey.
We provide fellowships for people of color and women to attend several professional training programs.
Two of those are the mds program and edp.
This is for largely general managers or general sales managers about to be general managers.
Each of those programs focuses on leadership, management, New Technologies, diversity -- all the tools that we general managers will need to be great leaders into MoveOn one day to higher corporate success.
We started this program by 1999.
With a graduated 162 professional fellowships.
We do this in partnership with the McCormick to be in the foundation.
Many of the graduates of these programs then go want to become part of our blt program.
You see how that pipeline is really working.
At the mid management level, we started a new program called connections mid-level mentoring.
This is for managers who are local sales managers, national sales managers, who are just below the general manager or general sales manager level.
We have found that one of the most effective ways of retaining people of color and women in the industry is to provide mentoring opportunities for them at a key point in their career.
If they are where they are not sure if they're going to make it to higher levels or there are many barriers, it helps to have a mentor to help guide people at that level through the process of how they confine their own pathway to future success.
We started this program last September.
We had 10 proteges at the mid management level, and repair them with 10 mentor's you see here on the screen we have executives such as Gary Chapman, Jenny Hubbard, Lyle banks, etc.
Very senior people.
This program has proven success already.
40% have already been promoted in the first year to more senior level positions.
We are about to increase that to 50%.
We are very pleased with that success rate.
>> if you could please move your telephone away, you're interfering with some of the audio.
>> The me focus on the entry level.
We support three media sales institutes, institutes that operate on college campuses.
They bring people of color into the campus to learn from industry experts in this is all media at large -- broadcasting, cable, Internet -- to learn the trade of media sales.
Many people who start in media sales, walked into the station where they're given a phone book and a telephone and told to go.
We do not feel that is proper training for success nine of the industry.
We started this in 1999 at Howard and then expanded with our partner in two years ago on the campus of Florida A&M.
Last year, we expanded to the University of North Texas of the Spanish-language media center there.
As a result since the 1999, we have trained to hundred 21 students for entry-level positions.
90% of the students have been hired at the end of the program.
Each of the college's hosts a career fair at the end of the 10 days and recording companies me with the graduates of these programs and 90% actually go into the industry.
Here is a picture of Howard University students and then we move on to Florida.
Jim, we tried to get your logo as best we could.
I hope we succeeded.
A good-looking bunch.
Then there is the University of North Texas.
As part of our diversity outreach efforts, we host two career fairs, one of the nab your show which happened yesterday, and two at the convention.
At the convention, we have 50 recording companies.
We have CBS, and Oprah, ABC, NBC, and many other companies who meet with 1200 applicants for jobs.
As you can see, there is a broad cross-section of what everybody who looks like.
That has been very successful to help people find jobs in companies were they want to work and to make great networking connections.
And we also have decided this year we branched out to reach into college campuses and to develop some student programs so that we are bringing people long and attracting them into the industry before they make their career decisions.
Last year, we started an nab scholarship.
We offered 10 scholarships to people of color and women.
The only requirement is they have to be a broadcasting major and have to show financial need.
We have selected the institutions in the institutions then select the students.
Here is a map that you see on the screen.
We tried to create some broad geographic diversity of those institutions.
Here is a picture of some of the students.
The size of the scholarship is $10,000 per year.
I could have used at myself in college.
We started junior year and continue through the junior year -- senior year.
We also require the students except an internship at a broadcasting station.
Well, for the rest of my presentation, which is unfortunately failed, which supports equal foundation which Henry is instrumental in the vice chairman, it is a wonderful foundation if you do not know much about it.
The emma bowen basically provide internship programs starting in High School for people of color who are interested in working media.
It carries the internship program through their four years of college.
As you can imagine, it is a tremendous opportunity for many of these students who are extremely bright, who have learned the industry trade, and are hired into the industry.
We were fortunate enough to sponsor -- was sponsored two students as well as support the foundation.
One of our students was student of the year so we're very proud.
We also started an internship program in engineering and technology last year.
We discover the engineering industry in broadcasting is a grain industry.
We needed to bring some new talent in.
We sponsored internship program for 10 people of color and women who were interested in engineering and technology.
We also support an internship at a radio or television station for those 10 students.
Two have already been hired.
I think about two more are going to be hired in the course of the next month.
Those are the initiatives of the foundation in a nutshell.
We are very proud of our work.
It is a slice of what needs to be done, frankly, we welcome any partnerships.
We are not alone in this.
Any questions you may have?
Thank you.
>> thank you.
[APPLAUSE]
you should be proud of these initiatives.
Does anybody have any questions or comments for ann?
>> this is bob.
How do we reach you?
>> i can give you my email address.
Aorr@nab.org.
>> great.
Many of the things you're doing, really dovetail with some of the initiatives we are trying to undertake and I would love to have a conversation with you about how we can work together.
>> Great.
I look forward to that.
>> this is Maria [INAUDIBLE]
due to mention where we could find additional information with the blt?
>> you are fading in and out of think you're wondering for our website?
Www.nabeaf.org.
Also, my e-mail address that I gave, and be happy to supply it with information as well.
>> Maria is a great partner in our work, as you can imagine.
>> Anything else?
If not, we will talk -- we appreciate you coming trade we move on to the next item on the agenda, which is reports from some committees.
The first subcommittee that will be reporting is the access to capital, chaired by Rodney could.
I do not think he is on the telephone.
He had a conflicting meeting.
David, and secured 1 to take this?
>> Sure.
I hope everybody can hear me OK.
I was one to present a station today about called a "how to buy a rigorous station today."
This committee has met a couple of times.
It has considered two questions, one of which is postponed making a recommendation on until it has an opportunity to confer with subject matter experts.
That is the subject of must carry for disadvantaged businesses for dpv seven channels.
We will take up that matter in either fourth quarter 2007 or first quarter 2008.
[UNINTELLIGIBLE]
the conference probably in New York, could take place at the University third year of the recommendation before you.
Sponsorship you saw from some of the leading trade associations, particularly in private equity -- I am walking here.
Private Equity Council.
The purpose of this conference which we're hoping the members would help friend, would be not only to have the dialogue among the scholars, bankers, and entrepreneurs, but also to provide networking between entrepreneurs and the capital providers [UNINTELLIGIBLE]
>> somebody on the phone has speakerphone open and it is making it really hard for us to hear it please, everybody on the telephone, move your telephone.
David?
>> That is better.
Do I need to go back?
But to bridge the communication gap that sometimes exists between the regulatory community and the banking community on these subjects of mutual interest.
This is presented today in your materials as an interim report.
We would like to get feedback from some of the members.
Then come back and present it after it has fleshed out some more as a recommendation.
We're not quite prepared to present this as a recommendation to be voted on in today's meeting.
>> Becky, which like to share your information with the group?
>> I had a conversation with the person named Robert Stewart.
We had a couple of conversations and it was related to the fact they were interested in knowing what our committee was doing.
They were interested in seeing if there was any kind of relevant role that can assist us with.
So there were three different things proposed.
One of them that overlapped with this interim recommendations as far as assisting with the conference.
They were keep numbering that heard the most recently told me about the fact that naic and Private Equity Council worked together to help support the creation of a new trade association called the access to capital coalition.
It has a primary focus on diversity issues.
It is a very new organization and he was offering for the subcommittee on access to capital to work with them and see if there is possibilities to be able to have Private Equity Council played a role and that perhaps access to capital coalition also played a role.
>> thank you.
This is an interim report.
Do we like this idea?
Do we want to have this fleshed out and brought back to us as a recommendation?
Yes?
All right.
OK.
Is anyone here who has a contrary view?
Does anybody else have anything to add to this conversation about this particular issue?
If not, David, I think if you could convey that to Rodney, we will go ahead and move forward with that.
they could use some help.
This looks to be a fairly large undertaking.
Before we go one, a was just handed a letter from Chairman Martin.
I will read it to you.
Dear Chairman, this letter requests the assistance of the Advisory Committee on diversity for Communications 
in the digital age.
In facilitating greater diversity by encouraging educational outreach in the context of ownership transactions.
Specifically, my request the diversity committee work with all industry trade associations to provide small businesses, minority, and women entrepreneurs and other designated energies with the information necessary so they can be aware in emerging ownership opportunities in the industry.
I appoint your attention to a successful model for such outreach.
In January 2006, clear Channel Communications sponsored an educational conference presented by the minority media and telecommunications Council.
This conference helped to assure the Minority Women entrepreneurs have access to information necessary to enable them to participate in the acquisition of clear Channel radio, and television assets.
That was a nice segue.
We did not plan this.
I'm encouraging you to have similar conferences whenever a significant ownership transaction is proposed to the commission.
These conferences would serve to encourage and facilitate communication companies engaged in transactions to include small businesses, minorities, women entrepreneurs and other designatees and properties destined for forfeiture.
There's proposal for a detailed plan for a conference on access to capital for Media Intel, entrepreneurs in cooperation with a major university in New York City occurred it will focus on them as a banking and the opportunities for small businesses and designated entities to require access to financing and thereby facilitate entry to ownership in the communications sector.
Please consider expanding your proposal to include the outrage and educational conferences that I have referred to above in conjunction with major ownership transactions.
It was good we thought that was a good idea.
I'm grateful for your work on the diversity committee and a look for to working with you on developing programs the would increase these opportunities.
Sincerely, Kevin Martin.
We will get copies of this to the entire committee.
David, I think you need to call this to Robin's attention specifically.
-- rodney's attention.
>> We need to consider adopting as the best practice, the proposal to conduct these educational conferences and then go ahead and continue its work on laying out the details.
So the industry would know that this is something that this committee recommends it follows, especially as major transactions come a.
I would hate to lose the time toward >> That is a good suggestion.
Do you like that suggestion?
We would endorse this concept?
>> Yes.
>> Yes.
>> Would somebody make the motion.
>> So moved.
>> Is there second?
>> Second.
>> The motion carries.
We will get copies of this letter to all of you.
I'm very pleased the chairman is as interested as he is and what we're doing and in the work of this particular subcommittee.
>> And he would have been here in person, but it was conflicting with a radio show.
>> Moving on to the new technology subcommittee and max navarro is coming at of Brownsville, Texas.
Again, we will turn to david to present this item.
>> Thank you.
The committee had a couple meetings, one of which lasted four hours of the commission which was our host.
We had six subject matter experts.
I think five of our members participated.
We considered a number of engineering issues relating to radio.
We are not prepared to present a recommendation on that subject at this time, but will probably be able to do so at the next meeting.
We also considered a proposal, which you have before you, that we're voting on and presenting for your consideration, a vote today as a substantive recommendation.
To emphasize, this proposal really presents a voluntary opportunity for broadcasters who own full power dtv television or commercial fm stations, which they could take advantage of if they choose to.
It is one more way for them to use and monetize their spectrum.
Since all of the spectrum some channels or the full main channels are part of the same license, we believe that this spectrum could be subject to the sheer time rule, which has been around for 50 or 60 years.
 -- sharetime rule.
It basically allows a station to be split in two mutually exclusive parts.
Each of which would be licensed.
The advantage of this procedure is that it does not require options.
There'd be no incentive for a broadcaster to lose it to the treasury.
That is why there has been no options of this nature.
Also, by providing an alternative to the least -- leases are also wonderful if they can be encouraged.
It has the advantage of this essentially a package of rights that financial institutions would regard as the equivalent of ownership.
Although, a broadcast license is not collateral, the banking community has figured out how to treat it essentially as that for the purpose of protecting themselves.
It is much easier, especially for new entrants, especially for small businesses.
For them to secure capital for something that looks like ownership as opposed to looking like a lease.
Since there are thousands and thousands of stations which could choose to make available hs2 hd3 race of station in this way -- or a substation in this way.
There would have just enormous impact and providing new opportunities for the industry to monetize their assets, for the growth of digital technology in the tip of receivers and service from consumers.
Especially for new entrants, particularly minorities and women, to have access to the spectrum.
And access to capital in a way that seldom is available through traditional means.
It is committed to the full committee for its consideration and vote.
>> I think it is a tremendous idea and an example of the kind of recommendation that we should be working on in making to the commission.
I agree with David.
This could result in substantial increase in number of minority owners.
Does anyone have any questions for David or comments about this?
Any discussion?
Are you ready for the question?
The chair will take the recommendation of the subcommittees.
Is there a second?
Any further discussion?
All in favor?
any oppose?
The motion carries.
Thank you, David.
Moving on to the next interim report, from the average subcommittee which is chaired by becky kline.
She is with us on the telephone.
The floor is yours.
>> Thank you to David for his contribution to outlining this recommendation.
The subcommittee had this particular recommendation, the guidebook on diversity, as one of its initial ideas to consider.
What you see before you is a draft of an outline of what a guide book would Intel, the guidebook on diversity is somewhat distinct from the previous guide book that was issued a couple years ago.
It was related to workplace diversity.
This one, I would characterize it as more external 99 nature as far as providing some construct for issues related to diversity in terms subcontracting, in terms of ownership diversity.
And outlining the competitive and economic growth advantages of diversity in those areas.
I do understand and insensitive to Commissioner Adelstein's comments, including aspects of top government at different levels may be able to integrate diversity programs.
That is something the subcommittee has not yet spoken of.
Perhaps, that would be a good thing for us to do.
The other thing that has yet to be forwarded from the subcommittee related to this guide book is a proposed budget.
>> thank you, Becky.
It appears that basically we would be voting on the concept of such a book, leaving the details to the subcommittee to flesh out in terms of the actual contents and working up a budget that we would later present to the commission.
Does anyone have any comments about this idea?
Any thoughts or questions for Becky?
>> [INAUDIBLE]
one of the chapters that I think probably needs to be added is how companies can benefit from diversity.
I think that is worth pointing out.
>> A great suggestion.
Any other comments or suggestions?
Shall we vote?
The chair will take the recommendation as a motion, is there a second?
Any further discussion?
All in favor?
Those opposed?
The motion carries.
That brings us to the end of our agenda.
Any new business to come before the committee?
I want -- if not, I want to thank you for being here, particularly those to come from great distances.
Thank you to the subcommittees for all the work that is evidenced by these recommendations.
I want to add my thanks to David he is a member of all of the subcommittees, so he is very busy.
[LAUGHTER]
he has been doing a great job.
Thank you, David.
I think we're off to a great start.
We will be meeting again in December.
We will get you the date as soon as Barbara can get some dates this room is available to us.
We will get that out to you so you can get it on your calendar.
It will be early in December.
Unless anyone has anything else, we will be adjourned until the next meeting turned again, thank you for coming and all of your hard work.
thank you, goodbye.