In the last newsletter we reported the arrival of our new Probe(tm) software package from V-Soft Communications. Since that time, we’ve been negotiating the "Learning Curve" and discovering some of the interesting things that it can be do. The program has the ability to make color coverage maps for FM and TV stations where each color represents a different signal strength. The coverage can be predicted using one of several different propagation models that employ terrain data all the way from the transmitter site to each point of interest. In addition, these same propagation models can be used to predict locations where interference from other stations may prevent clear reception of the desired signal. The study divides the entire area into small squares, usually between 1 and 2 km on a side. Each square is then checked for the presence of the desired signal. Once the level of the desired signal has been determined, the program checks for the presence of signals from a list of potential interfering stations. If the ratio between the undesired and desired signals exceeds the interference standards set forth in the rules, the square is marked with a color corresponding to the undesired station. Contours predicted using the standard FCC curves can also be placed on these maps. A pair of these maps, one showing the predicted coverage of the station and another showing interference areas, can provide a complete picture of a given facility’s coverage. They may also provide some good reasons why some areas are more difficult to cover than others.
Commission Matters
In last month’s newsletter we reported on new rules covering main studio locations and public files. The Commission has now set October 30, 1998 as the effective date for these changes. If you missed the story in last month’s newsletter or you passed it along to a colleague, you can still find it on our web site—<www.munn-reese.com>. By the way, our wacky editor, Thumbs Feebleman, says the person who empties your "round file" will be counted as a colleague for these purposes!
A Public Notice has been issued by the Commission to remind broadcasters of some guidelines for accessing Public Filesthat are not changing with the new rules. The notice reads in part, "…it is appropriate to remind licensees, permittees, and applicants of their duty to afford ready access to the public file. Thus, a station may not require that a member of the public make an appointment in advance or return at another time to inspect the public file, or that members of the public examine the public file only at times most convenient to the licensee or its staff. We also remind all licensees, permittees and applicants that while they may require personal identification (names and address) of members of the public visiting the station, public file records are to be provided to them on request and without requiring that they identify their organization." The Commission also urges stations to make an area with a table available for the public to examine the requested documents. The notice emphasizes that these guidelines are simply a reiteration of those found in an earlier Public Notice dated February 23, 1971.
The Commission has suspended the requirement that broadcasters file a number of forms and reports related to the Equal Employment Opportunity (EEO) program. Until further notice, broadcast licensees and permittees will not be required to file the following: Broadcast Station Annual Employment Reports (FCC Form 395-B), Broadcast Equal Employment Opportunity Program Reports (Form 396), and Broadcast EEO Model Program Reports (Form 396-A). The decision follows the refusal of the US Court of Appeals for the DC Circuit to rehear the Lutheran Church - Missouri Synod v. FCC case, as requested by the Commission. Only broadcast (radio and TV) licensees and permittees are involved in the suspension—all other services must continue to file as normal. The Commission is expected to consider ways to revise its EEO rules for broadcasters that will address the concerns expressed by the Court.
Meanwhile, the Commission has revised another form for broadcasters. The Office of Management and Budget has approved a new FCC Form 323, The Commercial Broadcast Station Ownership Report. The new form will be dated as the March, 1998 edition. If you’ve already prepared your report using the old form, you can still file it through the end of October. However, beginning November 2, the FCC will only accept the new forms. The Commission also reminds broadcasters that any Form 323, new or old, that requires a filing fee must be accompanied by a "Remittance Advice"—FCC Form 159 dated July 1997. And you thought you only needed to worry about answering the questions and filling in the blanks!!
Apparently, you are not the only one that has tired of filling out the same forms over and over again. The Commission has issued a Public Notice claiming it took at least 448 actions in processing FM allotment requests during 1997. Of these, nearly 400 were Notices of Proposed Rule Making and Reports and Orders. Many of these documents routinely include significant amounts of "boiler-plate" language, and often other standard documents accompany these—such as an appendix explaining how to file in the proceeding, a Federal Register summary, etc. In an effort to make more efficient use of its resources, the FCC has announced it will begin to combine proposals to add a single channel to a new community. Each proposal will continue to have its own docket and rule making number. However, the Notice of Proposed Rule Making and subsequent Report and Order will include multiple dockets. Proposals in which opposition comments or counter-proposals are filed will be resolved with a separate Report and Order. Eventually, the Commission is hoping to expand the use of the multiple docket procedures to include all types of FM allotment proposals.
Commissioner Matters
In September, Commissioner Gloria Tristani delivered a speech to the Texas Broadcasters Association titled, "Keeping the Local in Local Radio." She addressed some of the changes that have occurred in the radio industry as a result of the Telecommunications Act of 1996. Here are some excerpts—"It’s almost certain that there are fewer station owners here today than there were a year or two ago. You may be a vanishing breed. Nationally, your numbers have dwindled by 12% over the past two years—even though the number of stations has actually increased by 3%." "There’s no doubt that some consolidation can be a good thing for listeners. Like any business, when more than one station can share staff and resources, the public can receive services that wouldn’t otherwise be possible." "But consolidation also carries its share of risks. And it’s those risks I want to focus on. The first risk is important, but one I won’t spend a lot of time on. It’s the risk that consolidation could lead to lots of formats but only one voice." "The second risk of consolidation is the one I’d like to spend a bit more time on—the loss of localism. Localism is the bedrock of our broadcast system. We license stations to communities, not to states or regions. Each station is assigned a specific community that it must serve." "Consolidation is not necessarily the opposite of localism, but homogenization is. If I turn on the radio and can’t tell if I’m in Corpus Christi, Texas or Walla Walla, Washington, we probably have gone too far." After drawing an analogy between consolidation in broadcasting and the replacement of mom-and-pop stores with large chains such as Wal-Mart and Home Depot, Commissioner Tristani said, "Of course, the public’s interest in localism is much higher in broadcasting than in hardware. Nails are nails wherever you go. But the local issues that people need to hear about are always different. And most people still rely on broadcasters for that education. If the number of different voices speaking on local issues dwindles, we'll be depriving our system of the oxygen it needs to survive and grow." "So, how do we keep localism alive in the new world we’re facing? I don’t have any easy answers. The pace of consolidation has driven up the price of stations so high that it’s very tough to get into the business and incredibly tempting to get out. But here are a few thoughts. First, the FCC has to get its own house in order." "Even though Congress clearly said no one should be able to control more than 50% of the stations in a community, under our rules it is possible that one person could own all of the radio stations in a community." "Second, we need to try to find ways for new people to get into the radio business. I would guess there aren’t many independent radio owners here today. In Washington, D.C., where I’m living now, the last small operator was recently swallowed up by one of the big multiple owners. And I wonder, as maybe you do, whether there’s going to be a place for independents in the radio business in 5 or 10 years." "It used to be assumed that local owners—those who know the area and have a vested interest in it—are more likely to serve the local community. Now we are testing that assumption to see if it’s true." "As you probably can tell, I’m not convinced that radio is headed in the right direction. I see a real tension between becoming bigger and more efficient and serving individual communities. What’s good for national advertisers may not necessarily be good for local listeners. In the end, my thoughts boil down to this: the public interest will not be served if ‘local radio’ becomes a contradiction in terms. I hope we can work together to ensure that doesn’t happen."
Just a few days ago, FCC Chairman William Kennard delivered a speech to the NAB Radio Convention in Seattle, WA. He began by recalling some of his own experiences with radio. "…I have been a fan of radio for as long as I can remember. In college, I worked at the college radio station. Every college with a radio station has a group of students who spend more time at the radio station than in class or in the library. I was one of those students. And the reason I have this job today is because of my early fascination with broadcasting and broadcast policy during my college years." After recalling some of the rich traditions of radio for local service, Chairman Kennard addressed some of the changes now occurring in the radio business. "In this rapidly changing and increasingly challenged radio world, I ask myself, what is the proper role for the FCC? What must we in government do to guard the public’s interest in the airwaves? It comes down to two things. First, we must let the marketplace work. We must trust in the marketplace, and let the competitive forces unleashed by the market spur innovation and creativity that benefits the public. And, second, as guardians of the spectrum, we must do everything we can to ensure that it is used efficiently, and that we maximize its potential to provide outlets for many voices and viewpoints." Mr. Kennard then suggested some ways he would like to implement these goals. Here are more excerpts. "Next week, the FCC will vote on proposals to fundamentally change our broadcast application and licensing procedures. I want to streamline all broadcast forms and applications—16 forms in all—and introduce electronic filing. I also want to streamline our technical rules." After addressing the issues of the consolidation of station ownership and the changing status of EEO rules, the Chairman addressed the issue of microradio. "We are seriously evaluating proposals for a new microradio service. I believe that we have an obligation to explore ways to open the doors of opportunity to use the airwaves, particularly as consolidation closes those doors for new entrants. But let me be very clear. Here is what we will not do. We will not undermine the technical integrity of the FM band. Our job is to be the guardian of the spectrum, not to degrade it. And we will not do anything to prevent the conversion to digital." "As we examine the microradio proposals, we will be mindful of interference concerns, and the need to convert to digital. But … we cannot deny opportunities to those who want to use the airwaves to speak to their communities simply because it might be inconvenient to those of you who already have these opportunities. So I need you to work with me to develop these proposals in a way that will not degrade the broadcast spectrum." Mr. Kennard concluded his speech with another reference to his college days, "…I learned back then—first hand—about the power of radio as a community voice. It was one of the most exhilarating times in my life. And now, as I stand here, privileged to be chairman of the FCC, I want to do whatever I can to provide opportunities for others to use the airwaves to speak to their communities. This is the foundation of your business, and it is what makes your business so strong and so important to our country."
Miscellaneous Matters
Apparently, the Commission is beginning to take a closer look at some station transfers in terms of the concentration of ownership. A number of recent transfers listed in the "Broadcast Applications" releases have had the following note attached. "Note: Based on our initial analysis of this application and other publicly available information, including advertising revenue share data from the BIA database, the Commission intends to conduct additional analysis of the ownership concentration in the relevant market. This analysis is undertaken pursuant to the Commission’s obligation under Section 310(D) of the Communications Act, 47 U.S.C. Section 310(D), to grant an application to transfer or assign a broadcast license or permit only if so doing serves the public interest, convenience and necessity. We request that anyone interested in filing a response to this notice specifically address the issue of concentration and its effect on competition and diversity in the broadcast markets at issue."
The FCC continues to shut down pirate broadcasters. After efforts to get unlicensed operators to voluntarily discontinue their broadcasts failed, the FCC teamed up with the U.S. Marshal’s Service to seize equipment recently in both Detroit and Memphis. Both pirate stations were operating in the commercial portion of the FM band.
The familiar red envelopes containing the EBS/EAS Authenticator Lists will become part of broadcast history. The Commission has announced the lists, which have been in use since 1963, will no longer be distributed to stations. The action comes with the concurrence of the Federal Emergency Management Agency and the White House Communications Agency.
Upcoming Matters
We wish all of you a pleasant and prosperous fourth quarter. We are continuing to update the future FM allocation windows on our web site. We invite you to stop by and have a look. We are trying to confirm all new allotments based on the actual Report and Order issued by the Commission before adding them to the web site. You can also find back issues of these newsletters posted there along with information about our staff. May your spirit be lifted as you enjoy the beauty of God’s creation this fall.