According to a report in The Washington Post today, commenters are up in arms about a proposal circulating out of Federal Communications Commission Chairman Julius Genachowski’s office that allegedly relaxes the ban on a television station owning a newspaper in the same town or city. Advocates, such as Free Press and Public Knowledge, don’t like the proposal, fearing that media consolidation would put a damper on speech and expression.

I believe the lack of transparency in the FCC’s decision making process is at the root of the confusion over media ownership rules. Given the impact the rules could have on increasing diversity in media ownership particularly, as well as the flow of capital to struggling newspapers, the FCC should provide an opportunity for scrutiny of the Chairman’s proposal during a hearing process. The comment system does not ensure that different and relevant perspectives are being reflected in any record on the matter.

The FCC risks being seen as a play pen where only a few vocal advocacy groups can be allowed in to play. This approach negatively impacts consumers and investors alike.

In preparation of an article for Politic365.com, yesterday I had the most insightful conversation with the co-founder and president of the Minority Media and Telecommunications Council David Honig. Entry into the media marketplace by members of the minority community is a top priority of the MMTC. For this reason, the MMTC is hosting tomorrow a forum on the spectrum crunch and how this crisis in the airwaves will impact minority communities.

We are hitting a wall on spectrum, Mr. Honig said to me and it’s going to have an impact on minority consumers and entrepreneurs. For consumers we’ll probably see degradation in services, particularly more dropped calls. As spectrum, like any resource, becomes scarcer, we’ll probably see higher prices. One can argue that all consumers, no matter their race, will see price increases, but for minorities there may be a greater negative incidence from an increase in cell phone rates.

For example, Black unemployment is around 13.8%, much higher than the national average of 8.3%. According to the Pew Research Council, White median household wealth is around $113,149 compared to Black household wealth of $5,677. The average income for Black households is $44,780 compared with White households who have an average income of $73,439.

Hispanics households, while having average household income of $51,540, have a household wealth of $6,325, according to Pew Research. The unemployment rate for Hispanics is also above the national average at 10.5%.

For minority entrepreneurs attempting to mitigate the damage of the last recession via self employment, entering the broadband, telecommunications or media markets with little equity or capital makes success even harder. Facing increasing spectrum’s increasing factor cost of production only adds to the burden.

Given MMTC’s knowledge and expertise with broadband and spectrum issues, the forum should provide attendees with great and useful policy insights.

I just finished reading Commissioner Mignon Clyburn’s statement on the Federal Communications Commission’s proposed rule making for media ownership. Ms. Clyburn expressed that she felt “hope, fear, frustration, expectation, and exasperation” regarding the tasks of pursuing diversity in media ownership while ensuring that the information market spoke to the needs of the information consumer.

The conflicting emotions are understandable when you see that the FCC must address not one, but two information related markets at the same time. One I term as the “media market.” In this market buyers and sellers of media platforms such as radio, television, newspapers, and online media properties meet and exchange these properties for a price.

The second market is the “information market.” This is where the news watchers and readers come and consume content in exchange for paying subscription fees or at least clicking on ads.

It’s probably best that the FCC delineate the two markets, at least for the purpose of coming up with actions to address each one. Both are related which drives the confusion. The player that connects the two markets is the buyer of media platforms. Once the buyer enters the media market and negotiates the purchase of radio and television stations, they are in a position to add to the diversity of viewpoints the FCC wants to promote.

The buyers enter the media market in response to final demand from consumers in the information market. It’s a chain derivative that requires you complete the work on one relationship before moving to the next. That approach should help alleviate the frustration.