Congress and the Federal Communications Commission, two of this city's slowest bureaucracies, are moving with remarkable alacrity in a fight over control of the airwaves and the future of FM radio.
The lawmakers and the regulators are quickly heading for a collision over the government's plan to transform the nation's FM radio band by giving away hundreds of new licenses for noncommercial, low-power stations for schools, churches, community groups and others.
But Capitol Hill, responding to a wave of lobbying from the nation's largest broadcasters, is moving swiftly to kill the plan. Last Thursday, legislation blocking the plan sailed through a House subcommittee, after the National Association of Broadcasters, National Public Radio and many lawmakers raised concerns that the signals from the new low-power stations would interfere with the signals of existing stations.
In recent weeks, the National Association of Broadcasters has blanketed Capitol Hill with compact discs that purport to demonstrate the kinds of interference that would be caused by Mr. Kennard's plan. The disc simulates such interference as a cacophony of radio programs colliding on one frequency. Although government engineers say the stimulation is downright fraudulent and cannot be replicated at the F.C.C.'s radio lab, the compact disc has had a substantial impact on the debate in Congress and has repeatedly been cited by lawmakers as evidence of the need to block the low-power radio program.
"The broadcasters have engaged in a systematic campaign of misinformation and scare tactics to shut off new voices from coming onto the airwaves," Mr. Kennard said in an interview last week. "This is not rocket science. We have studied the way FM signals propogate around the country. The interference argument is being used as a smokescreen to mask an historic battle by incumbents who want to protect their markets."
He said the F.C.C. had carefully crafted the rules, after study by its engineers, to preclude any significant new radio interference.
The FCC today held its low power FM lottery to determine the order in which it will accept applications for this new radio service.
The lottery determined that the applicants from the following group of states will be the first to be accepted: Alaska, California, District of Columbia, Georgia, Indiana, Louisiana, Maine, Mariana Islands, Maryland, Oklahoma, Rhode Island, Utah.
The Commission will take applications during a five-day filing window that will be announced in a subsequent Public Notice to be issued at the end of April, 30 days prior to the first day of the filing window, which will be at the end of May.
The following is the order, also determined by lottery today, for processing applications from applicants in the remaining state groups:
No. 2. Connecticut, Illinois, Kansas, Michigan, Minnesota, Mississippi, Nevada, New Hampshire, Puerto Rico, Virginia, Wyoming. (Public Notice July 2000; filing window: August 2000)
No. 3. American Samoa, Colorado, Delaware, Hawaii, Idaho, Missouri, New York, Ohio, South Carolina, South Dakota, Wisconsin (Public Notice October 2000; filing window: November 2000)
No. 4. Arizona, Florida, Iowa, New Jersey, North Dakota, Oregon, Tennessee, Texas, U.S. Virgin Islands, Vermont, West Virginia (Public Notice January 2001; filing window: February 2001)
No. 5. Alabama, Arkansas, Guam, Kentucky, Massachusetts, Montana, Nebraska, New Mexico, North Carolina, Pennsylvania, Washington (Public Notice April 2001; filing window: May 2001)
The actual dates for the filing windows in each state grouping will be announced in subsequent Public Notices.
HR3439 now has 153 sponsors. Where is YOUR letter to the elected officials? Write it today!
H.R. 3439 RADIO BROADCASTING PRESERVATION ACT OF 1999, was approved for Full Committee consideration, without amendment, by a voice vote.
The following amendment was considered:
An amendment by Mr. Dingell, #1, providing for a six month pilot program to study the level of Low Power FM radio station interference in various media markets, by temporarily suspending the FCC's current order on the issue, was WITHDRAWN by unanimous consent.
STATEMENT OF DALE HATFIELD, CHIEF, OFFICE OF ENGINEERING AND TECHNOLOGY, AND ROY STEWART, CHIEF, MASS MEDIA BUREAU CONCERNING LOW POWER FM ENGINEERING ISSUES
We are concerned that Members of Congress have received misleading engineering information about alleged interference from low power FM radio stations.
One particularly misleading disinformation effort involves a compact disc being distributed by NAB that purports to demonstrate the type of interference to existing radio stations that NAB claims will occur from new low power FM radio stations. This CD demonstration is misleading and is simply wrong.
The NAB CD does not portray actual interference that might be experienced. The NAB CD was produced by artificially mixing two previously recorded radio signals and is not a demonstration of actual interference between two FM radio stations.
The type of "crosstalk" interference suggested by NAB, that is, where you can intelligibly hear portions of both transmissions, does not occur from LPFM stations operating on 3rd adjacent channels. Any such interference that might occur would only appear as noise or hissing. The NAB "crosstalk" demonstration simply does not represent actual FM radio performance and therefore is meaningless.
The NAB also incorrectly states that the FCC considers a 3% level of total harmonic distortion plus noise from interference to be acceptable. This too is wrong. The FCC Report and Order refuted a similar previous NAB assertion and clearly indicated that the Commission based its evaluations on a 1% level. To continue to make the argument in this CD about the 3% level can only be viewed as a deliberate misrepresentation of the FCC's findings and analysis.
There also have been concerns raised by NPR about the impact of low power FM radio on radio reading services. Radio reading services, which carry newspapers and other information aurally to the visually impaired population, operate as subcarriers on FM frequencies. Just as our testing has determined that existing stations will not experience harmful interference, the Commission stated in the Report & Order that subcarriers on these frequencies should not experience harmful interference. Nevertheless, we will continue to work with NPR to test radio reading service receivers, and will, if necessary, recommend to the Commission steps specifically tailored to deal with the radio reading service issue.
We believe the Commission took a thorough and indeed conservative approach in designing a low power FM radio service that protects the integrity of the broadcast radio spectrum.
The Mass Media Bureau announces the establishment of a five-stage national filing window for 100 watt low power FM (LPFM) applications. The five-stage filing window approach is designed to ensure the expeditious implementation of the LPFM service and to promote the efficient use of Commission resources.
The FCC has divided the fifty states, the District of Columbia, Puerto Rico and the remaining jurisdictions into five groups, each comprised of ten states and at least one other jurisdiction. All LPFM applications proposing to locate transmitters in a particular state or
jurisdiction must file in the filing window for that state or jurisdiction. Applicants in states and jurisdictions in each of the five groups will be permitted to file LPFM applications during a designated five-day filing window.
The five groups are as follows:
I: Connecticut, Illinois, Kansas, Michigan, Minnesota, Mississippi, Nevada, New Hampshire, Puerto Rico, Virginia, Wyoming
II: American Samoa, Colorado, Delaware, Hawaii, Idaho, Missouri, New York, Ohio, South Carolina, South Dakota, Wisconsin
III: Alabama, Arkansas, Guam, Kentucky, Massachusetts, Montana, Nebraska, New Mexico, North Carolina, Pennsylvania, Washington
IV: Arizona, Florida, Iowa, New Jersey, North Dakota, Oregon, Tennessee, Texas, U.S. Virgin Islands, Vermont, West Virginia
V: Alaska, California, District of Columbia, Georgia, Indiana, Louisiana, Maine, Mariana Islands, Maryland, Oklahoma, Rhode Island, Utah
On March 27, 2000, the FCC will select through a random process the first application group. The selection will be held on March 27, 2000 at 10:00 a.m. in the Commission Meeting Room, 445 12th St. S.W., Room TW-C305.
The dates of the first filing window will be announced by Public Notice at least 30 days prior to the first day of the window.
The order of the filing windows in which the four subsequent groups' applications will be accepted will also be determined on March 27, 2000. Tentatively, filing windows will follow each other at three-month intervals. However, the Bureau may reduce or increase the amount of time between filing windows as we gain experience with this new service and filing approach. The dates of the four subsequent filing windows will be announced by Public Notice at least 30 days prior to the first day of each window.
The composition of each group is designed to ensure the equitable distribution of LPFM station licenses in three ways. First, every part of the country is represented in each group. Every state or jurisdiction will have a one in five chance of being selected for the first filing window.
Second, each group is balanced by market size in that each group contains several of the top fifteen markets.
Finally, all of the states in each group are separated geographically, thus eliminating the potential for conflicting proposals across state lines.
The House Commerce Committee, led by Rep. Billy Tauzin, has set a Thursday hearing on Rep. Mike Oxley's anti-LPFM "Radio Preservation Act" with the idea of moving the legislation out to the House of Representatives for a full vote. The bill already has 136 House signatures. "Billy is committed to moving this legislation out to the House floor," Tauzin spokesman Ken Johnson tells R&R ONLINE. "It's time to send a message to the FCC and hit the FCC upside the head with a baseball bat. Sometimes you wave a stick in from of a stubborn mule's face, sometimes you hit him upside the head."
...a Philadelphia law firm filed a class-action lawsuit Friday against Cumulus, saying the company artificially inflated revenue by improperly recording sales contracts in violation of accounting standards.
By booking sales prematurely, the company raised false expectations about the value of its stock, claims the suit, which was filed in federal court in Milwaukee.
A Cumulus spokesman said: "We intend to vigorously defend our position. Our company remains financially strong, and we look forward to continuing to be so."
The suit capped a wild week that began with reports in a trade publication about possible financial irregularities at Cumulus. The reports helped drive the firm's stock price down 39% on Tuesday and Wednesday. Cumulus' stock has lost 74% since the end of last year...
Cumulus was founded in 1997, went public in 1998 and today owns or operates 321 radio stations in 64 midsize markets. Taking advantage of changes in federal regulations, Cumulus and other companies are buying clusters of radio stations to dominate individual markets.
Travel cross-country, and you'll hear a familiar blend of news, sports, music and talk up and down the radio dial.
"Traffic and weather together"... "The best variety, the new MIX" ..."Today's best music on KISS" ... "More than just the headlines" ... "Be the 25th caller, just listen and win" ...
Even the voices could be identical: DJs do shows simultaneously in Cincinnati, Des Moines, Rochester, Louisville, Toledo and Charleston. News reporters broadcast in multiple cities at the same time. The same contest prize offered here is up for grabs in dozens of other cities, too.
Radio has changed radically from a decade ago, when federal law limited companies to one AM-FM combination in each city, and each had a distinctive sound. Today, companies can own eight stations in any city, and corporate radio is gobbling up America's airwaves. While the total number of U.S. radio stations has grown, one of every five station owners has disappeared since the 1996 Telecommunications Act.
Now, Clear Channel Communications, the largest radio company in the world, is engineering the next step. Building on a radio empire it bought from Jacor Communications here last year, Clear Channel is using digital technology to create virtual clones of stations coast to coast.
NBC is reportedly resigning from the National Association of Broadcasters, saying the group has not fought hard enough to ease limits on ownership of television stations.
In a letter to NAB President Edward Fritts, NBC President Robert Wright said the association has "chosen to either stand on the sidelines, drag its feet or flat out oppose the changes that NBC seeks."
The letter was obtained by The Wall Street Journal.
Wright also wrote that NBC cannot support policy decisions that go against "our best interests, and the interests of sustaining broadcasting as a growth business and vigorous competitor to pay television."
Under current federal rules, no company can own stations that reach more than 35 percent of U.S. households.
As of September, NBC, a subsidiary of General Electric Co., was already near that cap, with 13 broadcast outlets reaching about 27 percent of the nation's homes. NBC-affiliated stations reach far more, but most of those are owned by other companies.
Large media companies have been lobbying to get the cap lifted. In June, the Fox network pulled out of the NAB last year over the issue.
Smaller owners of TV stations oppose any increase in the cap. They fear greater concentration of station ownership, especially by networks that distribute programming, would put smaller players in a weak position when negotiating to get shows.
An NAB spokesman told the newspaper that the association generally supports deregulation but "our board has spoken on the 35 percent cap and we support retaining it."
The NAB, based in Washington, represents 1,200 TV stations across the country and more than 5,000 radio stations.
[also at: http://abcnews.go.com/wire/Business/reuters20000308_668.html ]
Cox Radio, Inc. announced that it has entered into a definitive agreement with Clear Channel Communications, Inc. to acquire three FM stations serving Houston, Texas and three FM stations and one AM station serving Richmond, Virginia for a total of $380 million in cash.
Commenting on (the) announcement, Robert F. Neil, President and Chief Executive Officer of Cox Radio, said, "... we look forward to integrating these stations into our portfolio and remain focused on increasing shareholder value over the long-term."
This acquisition marks Cox Radio's entrance into the Houston and Richmond markets, the nation's eighth and 47th ranked radio revenue markets, respectively. The stations being acquired include KKBQ-FM, KKTL-FM and KLDE- FM (Cox Radio will acquire the format of KLDE-FM and the license for KTBZ-FM. The seller will retain the license for 94.5) serving the Houston market and WKHK-FM, WMXB-FM, WKLR-FM and WTVR-AM serving the Richmond market. Pending the close of all announced transactions, Cox Radio will own, operate or provide sales and marketing services for 83 stations (63 FM and 20 AM) clustered in 17 markets including major markets such as Atlanta, Houston, Miami, Tampa, Orlando and San Antonio. Cox Radio is the fifth largest radio company in the United States based on net revenues.
Salem Communications Corporation, the leading provider of Christian-oriented radio, electronic and printed resources, announced today that it has signed a definitive agreement with Clear Channel Communications to acquire radio stations KEZY(AM) and KXMX(FM) in Los Angeles, California; KDGE(FM) in Dallas, Texas; KALC(FM) in Denver, Colorado; WKNR(AM) and WRMR(AM) in Cleveland, Ohio; and WBOB(AM) and WYGY(FM) in Cincinnati, Ohio. Salem will pay $185.6 million in cash for the stations.
Salem Communications Corporations is headquartered in Camarillo, California. Upon the close of all announced transactions, the company will own and/or operate 70 radio stations, including 52 stations in the top 25 markets. In addition to its radio properties, Salem owns the Salem Radio Network, which syndicates talk programming, news and music to more than 1,300 affiliated radio stations throughout the United States; OnePlace, Ltd., a technology company which operates the Christian web portal OnePlace.com; and CCM Communications, the leading publisher of contemporary Christian music trade and consumer publications.
Hispanic Broadcasting Corp. announced it has entered into an agreement with subsidiaries of Clear Channel Communications, Inc. and AMFM Inc. to acquire radio stations KXPK (FM) broadcasting at 96.5 MHz serving the Denver, CO market; KKFR (FM) broadcasting at 92.3 MHz serving the Phoenix, AZ market; and KEYI (FM) broadcasting at 103.5 MHz serving the Austin, TX market, for approximately $127 million in cash, subject to certain adjustments.
HBCCA reported it plans to commence Spanish-language programming in Denver and Austin in the third quarter of 2000 following the anticipated closing date of the transaction. KKFR, "a highly-successful station whose audience includes a large proportion of Hispanics," will continue in its present format.
Radio and advertising giant Clear Channel Communications Inc. will acquire SFX Entertainment Inc., a leader in the live entertainment industry, in a stock swap worth $3.3 billion.
With the deal, and after other pending acquisitions, Clear Channel will own radio stations, outdoor advertising properties and live entertainment venues in more than half of the top 50 U.S. markets.
Clear Channel will assume $1.1 billion of SFX debt, bringing the value of the deal to $4.4 billion.
SFX, based in New York, says it is the world's largest promoter, producer and venue operator for live entertainment events, with 120 live entertainment venues in 31 of the top 50 U.S. markets. It also owns agencies that represent scores of professional athletes.
San Antonio-based Clear Channel, the world's largest billboard company, owns radio and television stations and outdoor displays in 32 countries. It recently agreed to acquire AMFM Inc., which operates more than 400 radio stations in 100 markets in the United States and Puerto Rico. The deal will combine the two largest U.S. radio station owners.
America's largest radio operator, Clear Channel Communications, Inc., said it has agreed to sell off 72 stations in 27 markets in conjunction with its pending merger with AMFM, Inc.
The proposed divestitures, which are subject to regulatory approval and also contingent on the closing of the AMFM merger, involve other major radio operators including Cox Radio Inc., Infinity Broadcasting and Hispanic Broadcasting Corp.
The announcement comes a week after Clear Channel said it plans to acquire sports and entertainment promoter SFX Entertainment Inc. for some $2.8 billion.
Jon Anderson's ABOUT.COM page has the Congressional Hall of Shame available for all to peruse. It's a list of who has signed on in support of the bills against LPFM radio. If your elected official is listed, you need to make a phone call or write a letter! If your elected official is NOT listed, you should still do the same. In our experience, they do not know what the issues really are and they have not been getting contacted by anybody except the NAB and their associates. Have you contacted your official yet?
http://pirateradio.about.com/entertainment/pirateradio/blbill.htm