Encourage competition, then stand back
Government has limited power to intervene in the media. Historically, it has dealt with anticompetitive business practices (especially when a newspaper seeks to become a monopoly) but has not been allowed to go farther. The best thing government can do is remove obstacles to competition (including some of its own existing policies), prohibit anticompetitive practices, and stand back. The people have a great thirst for information; they will do the rest via a free and open marketplace.
A good example of anti competitive practice is when a small ISP has two of the biggest providers block their customers e-mails in order to drive a competitor out of business. The other thing that happens is that they just buy up competition and it's gotten to the point where our media has become monopolies that drive up consumer cost. This is in large part due to our failure to aggressively enforce the Sherman Anti-trust laws regarding monopolies. We used to have at least 50 independent TV broadcasters and now we have roughly 4-5 controlling the majority of broadcast TV. Not sure where radio stands but I hear all the time of more and more local stations being bought up by large companies. Same with newspapers, etc. It's to the point where we have a few large corporations controlling news and information content and this runs contrary to the public interest and right to relevant information.
Marshall Haburne commented
I Agree. Government is getting too big in every area of our lives. Referee the competitive field then back off.
Exactly. The topic question is itself biased. Why does the government even need to be involved in the dissemination of news?
Maneesh Pangasa commented
Yes this is a good idea. The FCC should help encourage competition -- mandate it even if it has to stop anti competitive and anti consumer unsafe mega mergers then in a more competitive market relax regulations slightly to encourage continued competition and limit government intervention so news media can operate in a free and open way.