WASHINGTON, Aug 6 (Reuters) - The Federal Communications

Commission voted Thursday to rescind the rule that bars local

broadcast station owners from reaching more than 39% of the

total number of U.S. TV households in a move that could help

spark more industry consolidation.

The FCC voted 2-1 to lift the cap in favor of a new

case-by-case approach. The commission's sole Democrat, Anna

Gomez, said the proposal was illegal and argued only Congress

can lift the cap.

Under the rules, stations with weaker over-the-air signals

can be partially counted against a company's ownership cap. The

FCC has limited the number of stations local broadcast station

owners can own since 1941 and most recently raised the cap to

39% in 2004.