November 2006

In several recent actions, the FCC has imposed severe fines on broadcast licensees for operating auxiliary facilities without a license.  These actions highlight the importance of insuring that your broadcast stations have all of the licenses that they need to operate the technical facilities that they are using. 

In a decision issued today, the FCC fined a Regent radio station $7000 for failing to file a required form on a timely basis and for operating an FM translator station without authority.  According to the decision, Regent had inadvertently failed to include the translator on the renewal application for the main station.  Seven months later, it discovered the oversight, filed the renewal, and requested temporary authority to continue to operate the station.   The Commission imposed a fine of $3000 for failing to timely file the renewal, and $4000 for operating for the 7 months without authority.

Two weeks ago, the FCC released another Notice of Apparent Liability, proposing a $6600 fine for the late filing of two renewal applications for earth stations used by a public television licensee.  One renewal was filed about 2 months late, the second about 2 years late.  The FCC again imposed fines both for the late-filing, and for the operation without authorizations for the operation during the period after the licenses had expired and before the late renewals and STA requests were submitted.Continue Reading FCC Gets Tough on Forgetful Licensees

For the last 10 years, since the liberalization of ownership rules under the 1996 Telecommunications Act, the broadcast industry has been in the process of putting together cross-market platforms in radio, television and newspapers in markets across the country.  In the flap over media ownership that began with the FCC’s 2003 multiple ownership decision, and which continues through the current proceeding, media critics have sought the shrinking of big media companies, which they hold responsible for everything from violence and indecency on the airwaves to the lack of new music on radio.  Now, suddenly, 2006 has brought a restructuring of big media, without any government intervention whatsoever.  What impact will this restructuring have on the current proceeding?

The announcement by Clear Channel Communications that it is being sold, and at the same time it’s selling all of its television stations and over 400 of its radio stations in 90 smaller markets, is but the most recent example of that emerging trend.  CBS, which itself was split off from Viacom, is in the process of selling off a number of its radio properties in smaller markets.  ABC also has a deal to sell off the bulk of its radio properties, and announced in its comments in the current multiple ownership proceeding that it did not care what the FCC did, as it had no intent of acquiring any additional broadcast stations or newspaper properties.  Similarly, Tribune is exploring strategic options that reportedly include splitting its broadcast and newspaper properties.  The New York Times has also announced that its exploring spinning off its television properties.

All of this unforced media divestiture should have an impact on the current multiple ownership proceeding.  On a practical level, who is going to push for the current proceeding to be completed?  Many of the players who were active in the past no longer seem like they will care about the outcome of this proceeding, and others seem like they will be preoccupied, at least in the short term, with their business deals.  While the FCC has announced the scheduling of its second field hearing (in Nashville on December 11), it still has 4 more promised hearings to hold at some point in the future.  Unless these are scheduled quickly, and without the big players pushing the FCC to move quickly, the decision could easily drag.  

So who is left to actively push the FCC to reach a decision in this proceeding?  On the TV side, Fox and Sinclair seem likely to be the most active proponents of great deregulation – and, based on past history, most likely to pursue court actions to obtain ownership relief if the FCC does not move quickly on the current proceeding.  Gannett and the Journal Corporation own newspaper and TV stations and may push for more relief.  Clear Channel had been the major proponent of further radio deregulation.  Will their activity continue?

Continue Reading 2006 – Shrinking Big Media – Without Ownership Reform