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FCC News & Notices

Report: Copps, Adelstein Seek Interim FCC Position

If Barack Obama is elected President he will likely name one of the two current Democratic FCC commissioners, Jonathan Adelstein and Michael Copps (pictured), as interim Chairman replacing the outgoing Republican Kevin Martin reports TVNewsDay. Insiders say each is currently conducting a "low-key campaign" for the post.

"It makes sense to throw someone in as an interim chairman for a while and focus on getting an attorney general and other cabinet members confirmed," one long-time FCC observer told TVNewsDay.

So far, Copps seems to have the lead for the temporary duties. He's senior to Adelstein and has built a reputation as a strong and effective advocate for broadcast localism rules and against further media consolidation.

Republican Commissioner Deborah Tate is not expected to gain Senate approval for a second term and will exit in January along with Martin in Obama is elected, leaving Robert McDowell as the agency's only Republican. (08-27-08)

The FCC has issued a Notice of Inquiry asking for comment on whether Sirius XM receivers should include HD Radio technology. The NOI also seeks comment on whether or not iBiquity Digital's HD Radio should be required to include satellite radio in receivers.

The Commission is seeking comment on the possible impact of cost and performance of producing the new satellite receivers, and the establishment of an time frame for compliance. The agency is also studying the impact on competition such receivers would have on the marketplace as well as the cost impact on radio manufacturers, auto manufacturers and consumers.

Although back in July, the Commission said the agency found it unnecessary to impose a condition requiring the inclusion of HD Radio in satellite radio receivers, it recognized that important questions had been raised about hybrid digital radio that warrant further examination in a separate proceeding. The Commission had committed to initiating the notice of inquiry within 30 days after adoption of the merger order to gather additional information on the issues. (08-26-08)

FCC Chairman Kevin Martin will participate in a one-on-one interview with NAB Radio Board member Russ Withers, owner of Withers Broadcasting, during a breakfast session on Thursday, September 18 at the NAB Radio Show in Austin. "One-on-One with Chairman Martin" will begin at 7:15am and will be immediately followed by the Group Executives Super Session Breakfast.

As previously announced, FCC Commissioner Jonathan Adelstein will also participate in this year's NAB Radio Show. Adelstein will be interviewed by NAB Radio Board Chairman Steve Newberry, President/CEO of Commonwealth Broadcasting, during "Breakfast with the Commissioner" on Friday, September 19. (08-25-08)

GoodRadio.TV posted a 4.6% rise in same station net revenue for the second quarter over 2007 with a 4.4% boost in June and an 11.1% gain in July. Concurrently, GoodRadio.TV announced that Verax Capital had become a partner in the company, while it plans to launch local portals in all of its markets during Q3 and construction would start on a new FM in Madison, MO (Moberly-Columbia).

CEO Dean Goodman commented, "The sales structure instituted in all markets and local content focus is now taking root and the team is doing an outstanding job in our core business. We look forward to opportunistically targeting additional stations in the not too distant future."

GoodRadio.TV owns 24 radio stations and 2 FM construction permits (one pending FCC approval) in Missouri and Iowa. (08-20-08)

The FCC has denied Nassau Broadcasting's request for temporary waiver of the Commission's attribution rule for in-market Joint Sales Agreements (JSA). The ruling follows the agency's review of Nassau's application to acquire WWHK-FM/Concord, NH, which was dismissed along with the order to end the JSA.

In September, 2004, Arbitron announced the creation of the new Concord, New Hampshire, metro market. Because Nassau already owned five stations in the 26-station Concord metro, the FCC ruled that the proposed transaction would result in Nassau holding seven FM stations and one AM station there, exceeding the six-station total market limit and four-station FM cap limit.

Orginally, Nassau's application for transfer of control of WWHK from Capitol Broadcasting indicated that Nassau would have four stations in the Manchester, NH, metro, as well as the JSA application for Nassau to sell ads on WWHK. Following the dismissal, Nassau argued that there should be a two-year waiting period before a change in an Arbitron Metro would bar station acquisitions.

Nassau also asserted that the Commission has deferred required divestitures pending the outcome of a rulemaking to determine if relaxation of the "one-to-a-market" rule was in the public interest, and that grant of the waiver request would not frustrate the intent of the Commission's multiple ownership rules.

In its ruling, the FCC saind Nassau had not "demonstrated any reason or special circumstance" why it should be permitted to prolong an arrangement the Commission has determined is inimical to competition. Additionally, the agency said that Nassau had no legitimate expectation that a Concord Arbitron Metro would not be created. (08-12-08)

Former KFNS-AM & FM/St. Louis afternoon sports personality Kevin Slaten will have to wait until the end of his non-compete (October 3) before going to work for another sports outlet in the market after being fired on April 4, a judge has rules. Slaten was fired after he aired a controversial phone interview with St. Louis Cardinals pitching coach Dave Duncan that he failed to receive permission to air -- violating FCC rules.

Slaten was originally suspended for two days after Duncan threatened to sue Slaten and the station. He was later fired along with his producer, Evan Makovsky. KFNS then went to court and received a temporary restraining order over his non-compete.

"Today, he can work at any other St. Louis area radio station in a non-sports capacity, or he can work today in any other market other than St. Louis in a sports capacity," the judge wrote.

The ruling is separate from a wrongful termination case that Slaten has filed against the station. Slaten says that KFNS used the Duncan interview as a pretext for his firing when he was actually terminated over budget cuts. (08-12-08)

NAB announced Thursday that FCC Commissioner Jonathan Adelstein will speak during The NAB Radio Show, September 17-19 in Austin, TX. A veteran of Washington, Commissioner Adelstein is expected to address a number of regulatory issues facing radio broadcasters, including the FCC's localism proceeding, HD Radio and Low Power FM.

Adelstein worked for fifteen years as a staff member in the U.S. Senate before joining the Commission in 2002. Prior to his service in the FCC, Adelstein spent seven years as a senior legislative aide, advising then U.S. Senate Majority Leader Tom Daschle on telecommunications, financial services and other key issues. He's also served as professional staff member to Senate Special Committee on Aging Chairman David Pryor. (08-07-08)

Concurrently with the closing of Clear Channel's merger with private equity group co-led by Bain Capital Partners and Thomas H. Lee Partners, the radio giant placed almost 60 radio outlets in a trust to comply with the FCC's ownership rules. Known as the "Aloha Station Trust," controlled by Jeanette Tully, the trustee has engaged Media Venture Partners (MVP) to market the following stations for sale or exchange:

• KTEG-FM, KABQ-FM/Albuquerque
• WIBL-FM/Augusta, GA
• KFMK-FM/Austin
• KDFO-FM/Bakersfield
• WBFN-AM/Battle Creek, MI
• KRRZ-AM/Minot, ND
• WALC-FM/Charleston, SC
• WAKS-FM/Cleveland
• WBFA-FM and WSHE-AM//Columbus, GA
• WDKF-FM/Dayton
• WDSJ-FM/Greenville, OH
• WISM-FM/Eau Claire, WI
• WKEY-FM/Key West, FL
• WKEZ-FM/Tavernier, FL
• WCZR-FM and WQOL-FM/Vero Beach, FL
• WSYR-FM/Gifford, FL
• WOLL-FM/Hobe Sound, FL
• WFMD-AM and WFRE-FM/Frederick, MD
• KFSO-FM/Fresno, CA
• WMAX-FM/Grand Rapids
• WURH-FM/Hartford
• WBKS-FM, WZZW-AM and WIRO-AM/Huntington-Ashland
• WROO-FM/Jacksonville, FL
• KAVL-AM/Lancaster, CA
• KTPI-FM/Mojave, CA
• WHER-FM/Laurel-Hattiesburg, MS
• WMKJ-FM/Lexington-Fayette, KY
• WBUK-FM/Lima, OH
• KHKN-FM/Little Rock
• WKRD-FM/Louisville
• WEBL-FM/Macon, GA
• WALK-AM and WALK-FM/Long Island
• KYRK-FM/New Orleans
• WJRR-FM/Orlando
• WPBH-FM/Panama City, FL
• WGIP-AM/Portsmouth-Dover-Rochester, NH
• WZBL-FM, WSNZ-FM and WSNV-FM/Roanoke-Lynchburg, VA
• WDKZ-FM and WLBW-FM/Salisbury-Ocean City, MD-DE
• KSJO-FM, KCNL-FM and KUFX-FM/San Jose
• WHCY-FM and WTOC-AM/Sussex, NJ
• WWDG-FM/Syracuse, NY
• KBRQ-FM/Waco, TX

The FCC's Advisory Committee on Diversity For Communications in the Digital Age is once again asking Chairman Kevin Martin to begin investigation into PPM's affect on the ratings of stations targeting minority audiences. The panel voted, 8-3, in favor and wants Martin to appoint a federal judge to oversee the investigation.

Earlier this month, an earlier probe sought by the committee was set aside after discovering that Arbitron had no opportunity to participate or respond in a July 2 conference call that ultimately led to the ''diversity issues'' resolution.

Following the committee's request today, Arbitron said in a statement, "Arbitron has great respect and appreciation for the work of the FCC and for the critical and unique role that Black-owned and Spanish-language radio provides as a voice for communities across the country. For those reasons we are committed to working together with the FCC and with minority broadcasters in a collaborative and supportive manner."

The staterment continued, "While Arbitron does not believe that the FCC has jurisdiction over the Company or its operations and assets and consequently lacks the authority to commence a Section 403 investigation, we are committed to continue our voluntary discussions with the FCC and with Black-owned and Spanish-language radio to explain fully the Portable People Meter system." (07-29-08)

The FCC officially released the details of its decision to approve the merger between Sirius and XM Satellite Radio on Friday (7-25). As part of the conditions attached to the deal, the combined companies must file applications within three months of the deal's closing to provide satellite radio service to Puerto Rico via terrestrial repeaters.

After reviewing what the agency called "empirical data," the Commission determined there was "insufficient evidence in the record to predict the likelihood of anticompetitive harms." In its ruling, the FCC says the conditions added to the deal should mitigate any harms.

All of the following voluntary commitments by the combined companies must continue in effect at least three years after the merger:

• Cap prices for 36 months, subject to certain cost pass-throughs after one year. In addition, six months prior to the end of commitment period, the Commission will seek public comment on whether the cap continues to be necessary. The merger approval is conditioned on the Commission's ability to modify or extend the price cap beyond the 3-year commitment period.
• Offer to consumers within three months of the deal's closing, the ability to receive a number of new programming packages, including the ability to select programming on an a la carte basis.
• Make available 4% of its capacity for use by certain Qualified Entities, and an additional 4% of capacity for the delivery of non-commercial educational or informational (NCE) programming, which will enhance the diversity of programming available to consumers.
• Offer interoperable receivers in the "retail after-market," i.e., receivers available at retail outlets for installation in consumers' automobiles or homes, within nine months of closing.
• Refrain from entering into any agreement that would grant an equipment manufacturer an exclusive right to manufacture, market, and sell satellite radio receivers. The companies must also commit to refrain from barring any manufacturer from including in any receiver non-interfering hybrid digital terrestrial radio functionality, iPod compatibility, or other audio technology.

Although the Commission said the agency found it unnecessary to impose a condition requiring the inclusion of HD Radio in satellite radio receivers, it recognized that important questions have been raised about hybrid digital radio that warrant further examination in a separate proceeding. The Commission has committed to initiating a notice of inquiry within 30 days after adoption of the merger order to gather additional information on the issues.

Additionally, as part of the merger's conditions, the FCC is prohibiting the combined companies from entering into any exclusive sports deals that would bar any traditional broadcast outlet from airing the a local sporting event live. (07-28-08)

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