According to the NAB’s SmartBriefs, the FCC formally initiated a notice of proposed rule-making to review the national ownership cap for TV stations that limits the number of stations a single entity can own, which is now set at 39 percent of U.S. TV households.

The review of the ownership cap is tied to another decision made by FCC chairman Ajit Pai – the UHF discount — a formula for calculating a company’s TV station holdings against the 39 percent limit — was reinstated by Pai in April after it was eliminated by the previous FCC chair.

“Earlier this year, the Commission reinstated the UHF discount, finding that the prior FCC’s decision last year to eliminate it absent a simultaneous review of the 39 percent national cap effectively tightened the cap without determining whether that was in the public interest. Because the national cap and the UHF discount are inextricably linked, any review of one component of the rule must include a review of the other,” Pai said in a statement.

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