The FCC this week announced the end of Auction 109, which offered for sale construction permits for 139 new stations – 4 AM stations in the St. Louis area whose licenses were surrendered by the prior licensee, and 135 new FM channels. 97 of the channels were sold but 42, including all of the AM stations, went unsold in the auction. The full auction results can be seen on the FCC’s auction site here. The FCC will raise $12,344,110 from the auction – though over $9,000,000 of that is to be paid for two channels – over $6 million for a Sacramento FM and over $3 million for an FM to be licensed to a community just north of the Dallas metro.
The 42 channels that were unsold range from channels allotted to small communities in states like Wyoming or Alaska that were predicted to serve very few people, thus having opening bids as low as $750 that no one was willing to meet, to channels in somewhat bigger communities including channels in New York state and Colorado that had opening bids of $75,000, indicating that they would serve a substantial number of people, but the prices were apparently deemed too high to justify for companies looking for a business return. The 4 St. Louis area AM stations, which each had opening bids of $50,000, appear to be in that same category. This lack of interest may also say something about the FCC’s local radio ownership rules.
Continue Reading Auction for New AM and FM Channels Ends with Almost a Third of the Channels Unsold – Does the Result Say Something About the FCC’s Local Ownership Rules?