Limited Freeze on FM Applications in Anticipation of Upcoming Auction for New Radio Stations

In anticipation of the new auction of 123 FM channels scheduled for March 2012 (about which we wrote here) the FCC has frozen the filing of FM applications and rulemaking requests which seek changes in the frequencies of any of the channels proposed for inclusion in the auction or which otherwise fail to protect the reference coordinates for these channels. This is not a blanket freeze of all FM filings, but instead simply is meant to protect the channels that are included in the auction so that interested applicants can begin the search for transmitter sites and otherwise evaluate the prospects for these channels in a stable environment.

While the procedural dates for this auction (including the dates by which applications must be submitted) have not been finalized, we anticipate that these dates will be set soon, and that initial short-form applications specifying the channels in which each applicant is interested, will be due early in 2012. So if you are interested in the possibility of building a new FM station, check out the tentative list of new allotments here to see what is available, and start making your plans to participate.

FCC Announces Filing Window and Minimum Bids for Next Auction for 144 New FM Stations - And a Freeze on FM Minor Change Applications

Applications to participate in the auction of 144 new FM channels are to be filed at the FCC between January 31 and February 10, 2011.  The FCC today released a Public Notice setting out the dates and procedures to be used in the auction.  Upfront payments of the minimum bids for channels in the auction will be due on March 21.  The auction itself will begin on April 27 - a postponement of about a month from the dates originally proposed as the initially scheduled dates could have resulted in the auction running through this year's NAB Convention, making it difficult for some entities to participate.  We had written about the initial announcement of the proposed auction here.  Note that the list of channels available in the auction has changed slightly, as a few channels originally listed for sale were deleted when it was discovered that they were not vacant or were otherwise not available to be sold.  Thus, the auction will include only 144 channels, not the 147 originally proposed.  The list of open channels is available here, and this list also sets out the minimum bids established for each channel.

To freeze the FCC database so as to allow applicants in the filing window to specify a transmitter site that will be protected from new applications, the FCC will freeze the filing of all applications for minor changes to existing FM stations during the filing window.  Thus, if you need a technical change in an FM station, get that application on file before the January 31-February 10 window.  The FCC Issued a Public Notice setting out the details of the freeze.  After the window, all subsequently filed applications for minor changes in existing stations will need to protect sites specified for the new channels during the window.  The FCC also froze - effective right now - any rulemaking proposal asking for a change in the coordinates assigned to any of the channels to be sold in the auction. 

So, if you have always wanted your own FM station, now may be the time to apply.  For the most part, these channels are not in major metropolitan areas - though some do reach some fairly sizable communities.  Do your diligence carefully before applying, as there may be problems with some channels that limit their use.  In fact, some of these channels are ones that have been returned to the FCC - either from prior auctions where no one bid for them, or as a result of a construction permit that expired when it was not constructed in a timely fashion.  Look for the hidden gems!

Want a New FM Station? - The FCC Offers to Help Find One

As part of its efforts to diversify the ownership of the broadcast media, the FCC promised in its recent order on Localism in the media (see our summary here) to have its engineering staff come up with a computer program to help people determine where a new FM station can be allotted by the FCC, opening the process that will result in an auction to determine who gets a construction permit to build that station.  Today, the Commission's staff released a public notice announcing that this new program is now on-line, and that interested people can see where a new FM station will "fit" consistent with all FCC rules that require that certain spacings be maintained between stations on the same or adjacent channels to avoid interference.  The program for determining whether new allotments can be made is available here.  All you need to do is provide geographic coordinates for a potential station, and the Commission's new program will tell you if a new FM station could work there.

As the Commission notes in its Public Notice, the tool will only locate Class A FM stations - the lowest power station - limited to 6 kw of effective radiated power at 100 meters tower height - giving a station a protected coverage radius of approximately 15 miles (though actual coverage may differ depending on factors including terrain and the proximity of other stations).  Also note that simply finding an empty channel does not get you a station.  Instead, a party who finds a channel in an area that they would like to serve must then petition the FCC to "allot" the channel to a specific community that they want to serve.  That proposal is processed by the FCC's staff and, if acceptable, placed on public notice when other parties can comment on the proposal or file counterproposals suggesting the use of the frequency at some other location.  Once the Commission reviews any comments, they will decide whether to allot the channel.  If and when an allotment is made, it still isn't ready for application.  Instead, the FCC saves new allotments and periodically puts out lists of these new allotments available for application - a "window" notice as a precursor to a possible auction.  Interested parties can then file with the FCC indicating interest in the channel and, if more than one person expresses interest in the channel (which virtually always happens), the channel will be auctioned to the highest bidder (though new entrants do get some bidding credits).  All told, the process can take several years from the discovery of the available channel to the award of the construction permit.  But, while the process may not be fast, this new tool provided by the Commission has made it somewhat easier.

NCE Applications Must Protect Channel 6 TV Stations Until the End of the Digital Television Transition

Channel 6 of the television band is immediately adjacent to the lower end of the FM band.  Noncommercial FM radio stations, located at the lower end of the FM band (88.1 FM to 91.9), have the potential to interfere with television stations on that channel.  Thus, FCC rules require that noncommercial FM stations protect Channel 6 stations that are in their area, often limiting their power unless they can work out interference agreements with the local TV station.  As the FCC has tried to vacate Channel 6 as part of the digital transition, some noncommercial FM applicants, including some who filed during the recent filing window for new Noncommercial FM stations, have filed applications seeking construction permits at power levels that ignore the Channel 6 station, on the theory that, by the time the noncommercial station is on the air, the TV station will have vacated Channel 6.  In a decision issued on Friday, the Commission rejected one such application, finding that the acceptance of the application premised on an event that has not yet occurred would be unfair to potential applicants who were waiting to file applications until the television stations actually changed channels.

The decision, in a footnote, noted another problematic issue raised by these applications.  As only some applicants filed their applications in the recent NCE window premised on the disappearance of the Channel 6 TV stations, those that had not take that tact would be at a comparative disadvantage in assessing their applications under the NCE selection criteria.  As the comparative position of NCE applicants was supposed to have been frozen at the time the window applications were filed, those relying on a future event would seem to get an unfair advantage.  Thus, it appears that, in time, similar actions will be taken with respect to other similarly situated applicants, clearing up a source of concern or consternation for many who filed during that window.