Home Login RADIO ONLINE RSS Facebook
Advertisement

Alpha Ex Parte Filing Says Zonecasting Too Expensive


Alpha Media
Alpha Media

An ex parte was filed by Alpha Media with the FCC on Wednesday regarding the broadcaster's experience with early tests of the ZoneCasting system. In the ex parte, Alpha provided specific data on the significant costs associated with employing the technology, which led the comapny to conclude that "the substantial investment necessary to deploy ZoneCasting will be out of reach for most broadcasters, and simply out of the question for small and mid-sized broadcasters."

"Alpha has watched this proceeding with growing concern as GBS repeatedly miscasts ZoneCasting as a technology that would be especially helpful to smaller broadcasters," wrote President and Chief Executive Officer D. Robert Proffitt. Based upon Alpha's experience, "it is simply inconceivable that a smaller station, or stations serving smaller markets, would be able to afford to deploy ZoneCasting. Alpha believes that GBS's advocacy, which seeks to portray ZoneCasting as a means for smaller stations to better compete for advertising dollars, is nothing more than a hollow distraction and an empty promise -- one that GBS is attempting to use to drive a wedge between smaller and larger broadcasters."

Alpha says its input is based upon familiarity with the GBS technology in question. In 2016, GBS tested an earlier version of its ZoneCasting system at WIIL-FM that Alpha inherited from the previous owner. In connection with the WIIL test, GBS provided Alpha with estimates of the infrastructure costs needed to implement its technology. GBS determined that four boosters at four different sites were necessary to create a ZoneCasting "Zone" in downtown and northeast Milwaukee for purposes of the test.

The booster site locations included two building rooftops and two antenna tower/monopole structures (note that the cost figures below are in 2015 dollars). Here are the upfront costs for four booster sites (not including booster equipment) from Alpha:

Site acquisition $16,000.00
Equipment installation $32,000.00
FCC fees $3,000.00
Total Upfront Infrastructure Costs $51,000.00

Annual recurring expenses for four booster sites:
Rent/lease fees $48,000.00
Electricity $ 4,800.00
Telco/internet $ 6,400.00
Total Annual Recurring Costs $59,200.00

Alpha wrote that it remains "concerned" that allowing ZoneCasting will cause unavoidable interference, reduce the quality of the listener experience and threaten radio stations' advertising rates and revenues. For example, the company wrote that obtaining a site on top of a well-located building is "often very expensive," and purchasing land on which to install an antenna structure and transmitter enclosure can be even more costly.

Alpha also assured the Commission that renting a site for an FM booster (or an FM translator or similar transmitting facility) is often much higher than the $12,000 per booster per year quoted above, in part because local zoning regulations restrict the locations of broadcast transmitting facilities and antennas, limiting availability.

Additionally, the company wrote that if a radio station were to implement the same system used for the WIIL test, the cost for a single booster would range from $28,440.00 for the lowest-power booster used to more than $32,440.00 for the highest-power booster. The published information from a major vendor on which Alpha bases these figures estimates would be at least $118,160.00 -- just for the equipment necessary to construct the four sites used in the WIIL test.

In response, GeoBroadcast Solutions' Robert Udowitz stated, "Alpha Media claims that geotargeting technology is too expensive. This is incorrect, especially because we have creative vendor financing solutions for station owners like Alpha Media. Moreover, geotargeting is purely voluntary, meaning Alpha Media doesn't have to deploy the technology if it doesn't want to. So from the FCC's perspective, the only question is whether the technology is in the public interest. The record makes clear that it is."

Read the entire filing here.

Advertisement

Latest Radio Stories

JR Ammons Joins Mix 96.5 Houston as Brand Manager
JR Ammons
JR Ammons
Audacy has announced that programming veteran JR Ammons is expanding his responsibilities to include Brand Manager duties at KHMX-FM (Mix 96.5) in Houston. Ammons will guide the Hot AC outlet's content strategy, operations, branding, and air talent. This move adds to Ammons' existing leadership More

Audacy Highlights Audio's Undervalued ROI Potential
Audacy
Audacy
Despite delivering some of the highest returns on investment in media, Audio continues to be undervalued by many marketers due to persistent perception gaps and outdated measurement practices, according to Audacy SVP of Research & Insights Ray Borelli in a new industry insights article. Citing recent More

Webinar to Unveil Deep Dive into Podcast Audience Trends
Edison Research
Edison Research
As the podcast industry continues to grow and evolve, Edison Research is offering a closer look at the changing habits of listeners across the U.S. On July 7 at 2pm ET, Megan Lazovick, Vice President at Edison Research, will host The Podcast Consumer webinar, presenting the latest data on the size and More
Advertisement

NAB Launches 2025 Congressional PSA Campaign
National Association of Broadcasters (NAB)
National Association of Broadcasters (NAB)
The National Association of Broadcasters (NAB) has kicked off its 2025 Congressional PSA Campaign, a nationwide initiative that enables members of Congress to share important public service messages with constituents through local radio and television stations. Now available through NAB's Spot Center, More

Entravision Makes Strategic Amendment to Credit Agreement
Entravision Communications Corporation
Entravision Communications Corporation
Entravision Communications Corporation announced it has amended its credit agreement in a move aimed at enhancing financial stability and accelerating debt reduction. The amendment, finalized on July 15, comes as the media company continues to respond to shifting industry dynamics and seeks to maintain More

Senate Advances Spending Cuts Targeting Public Broadcasting
U.S. Senate
U.S. Senate
The U.S. Senate voted late Tuesday to advance debate on a contentious $9.4 billion rescissions package backed by President Donald Trump, targeting funds previously allocated to public broadcasting and international aid programs, reports NPR. The vote passed by the narrowest possible margin, with Vice More

Return to Menu

Advertisement

Subscribe to our Newsletter
Radio news and headlines delivered right to your e-mail box -- and it's free.

Advertisement

Advertisement