Our recent posts have been obsessed with the FCC’s regulatory fees and the issues with the CORES fee filing system miscomputing the fees for many radio stations (an issue that seemingly has now been resolved so that payments can be made by the September 26 deadline).  In doing so, we have minimized our coverage of some of the other interesting decisions and regulatory activity from the FCC and other agencies that affect broadcasters.  One of those actions involved the proposal of a now-silent AM station to move from the small Alabama community of  Bay Minette, Alabama to another small Alabama community, Spanish Fork.  The Commission issued a letter saying that they could not grant the application as the proposal would move the station from a rural area to a community within an urbanized area – the Fairhope-Daphne urbanized area.  The FCC found that this move would violate the FCC’s rural radio policy unless a showing could be made that there were public interest reasons to rebut the application of the policy in this case.  The letter gave the applicant 30 days to attempt to rebut the presumption against the move.   

The rural radio policy was adopted more than a decade ago to, in theory, preserve program diversity in rural areas by restricting the move of radio stations into more urbanized areas through community of license changes.  The policy restricts rural stations from changing their city of license to a location from which the station could place a principal city contour over 50% of any urbanized area (see our articles here and here for more details on this policy).  As the proposed move in the Alabama case would allow the AM to cover more than 50% of the Fairhope-Daphne urbanized area with its proposed new 2 mv/m contour, the change would be prohibited unless a special showing can be made overcoming the presumption against such moves, even though the move would allow the AM station to cover over 250,000 more people than it currently does.  The Commission notes that it also disfavors removing a second local service (a service licensed to a particular community) from a community of over 7,500 people.  As Bay Minette has over 7,500 people, and the town has only one other existing radio station, the move of the AM station would also run afoul of this policy.  These presumptions are very difficult, if not impossible, to overcome absent some showing that the FCC’s technical analysis is incorrect. Continue Reading FCC Applies Rural Radio Policy to Block Move of Silent AM Station to New City of License – Do We Still Need a Rural Radio Policy? 

Rural communities – do their radio stations need government protection? The FCC seems to think so, proposing a series of new rules and policies that restrict the ability of the owners of rural radio stations to move their stations into Urban areas. These rules would make it harder for entrepreneurs to do “move in” applications – taking stations from less populated areas and moving them to communities where they can serve larger populations in nearby cities. The Commission states that it is making these proposals to attempt to live up to its obligations under Section 307(b) of the Communications Act to ensure a “fair, efficient and equitable” distribution of radio services to the various states and communities in the country. While this may be a noble goal, one wonders if it is a solution in search of a problem. Are there really rural communities that have an unmet demand for missing radio services – and which can economically support such services? And do these proposals conflict with other goals of the new Commission, by effectively decreasing the opportunities for minorities and other new entrants from acquiring stations in major markets – by taking away move-in stations that are often the only stations that these broadcast station owners can afford in urban markets?  These are questions that the FCC will need to resolve as part of this proceeding. 

A Section 307(b) analysis is done by the FCC when it faces conflicting proposals, specifying different communities of license, for new AM stations or requests for new FM allotments. It is also required when an applicant proposes to move a station from one community to another, as the applicant must demonstrate that the move to the new community would better serve the objectives of Section 307(b) than would the current location of the station. In the past, the 307(b)  analysis looks at several factors, or “Priorities.” These include:

 

  1. Service to white areas – when a proposed station will serve “white area,” an area where residents currently receive no predicted radio service (no “reception service” in FCC parlance). 
  2. Service to gray areas – when a proposed station will serve areas that currently receive only a single reception service
  3. Provision of a first local “transmission” service – where the proposed station will be the first station licensed to a particular community, and thus the first station that has the primary responsibility to serve the needs of that community
  4. Other public interest factors – usually meaning which proposal will provide the service to the most people (with service to “underserved areas,” i.e. those that receive 5 or fewer “reception services,” getting somewhat more weight).

Continue Reading FCC Proposes to Encourage Rural Radio By Making it More Difficult to Move Radio Stations to Urban Areas