[Federal Register Volume 61, Number 52 (Friday, March 15, 1996)]
[Rules and Regulations]
[Pages 10689-10691]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6207]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR PART 73
[FCC 96-90]
Implementation of Sections 202(a) and 202(b)(1) of the
Telecommunications Act of 1996 (Broadcast Radio Ownership)
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: This Order amends the Commission's Rules to eliminate current
national multiple radio ownership restrictions and to relax local radio
ownership restrictions (the ``radio contour overlap'' rule). This
action is necessary to conform the current rules to section 202(a) and
202(b)(1) of the Telecommunications Act of 1996.
EFFECTIVE DATE: March 15, 1996.
FOR FURTHER INFORMATION CONTACT: Alan Aronowitz, Mass Media Bureau,
Policy and Rules Division, (202) 418-2130.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order,
FCC 96-92, adopted March 7, 1996 and released March 8, 1996. The full
text of this Commission decision is available for inspection and
copying during normal business hours in the FCC Dockets Branch (Room
239), 1919 M Street, N.W., Washington, D.C. The complete text of this
decision may also be purchased from the Commission's copy contractor,
International Transcription Services, (202) 857-3800, 2100 M Street,
N.W., Suite 140, Washington, DC 20037.
Synopsis of Order
By this Order, the Commission amends 47 CFR 73.3555 of its rules to
conform to provisions of the Telecommunications Act of 1996 (``Telecom
Act''), Public Law 104-104, 110 Stat. 56 (1996), signed into law by
President Clinton on February 8, 1996. Sections 202(a) and 202(b)(1) of
the Telecom Act direct the Commission to revise Sec. 73.3555 of its
Rules (47 CFR 73.3555) regarding the national multiple radio ownership
rule and the local radio ownership (``radio contour overlap'') rule.
National Radio Station Ownership
2. Section 73.3555(e)(1)(i) of the Commission's Rules generally
limits commercial radio ownership on a nationwide basis to no more than
20 AM stations and no more than 20 FM stations. Section
73.3555(e)(1)(i) further provides that an entity may have an
attributable but noncontrolling interest in an additional 3 AM and 3 FM
stations that are small business controlled or minority-controlled.
Section 202(a) of the Telecom Act directs the Commission to ``modify
Section 73.3555 of its regulations * * * by eliminating any provisions
limiting the number of AM or FM broadcast stations which may be owned
or controlled by one entity nationally.'' Accordingly,
Sec. 73.3555(e)(1)(i) will be deleted and the remainder of the rule
will be modified to reflect the changes directed by this section of the
Telecom Act.
Local Radio Station Ownership
3. The local radio ownership (``radio contour overlap'') rule, 47
CFR 73.3555(a)(1), defines the limits of local commercial radio
ownership by a single entity. Section 73.3555(a)(1) permits ownership
of up to three commercial radio stations, no more than two of which may
be in the same service, in radio markets with 14 or fewer stations,
provided that the owned stations, if other than a single AM and FM
station combination, represent less than 50 percent of the stations in
the market; in markets with 15 or more commercial radio stations,
ownership of up to two AM and two FM commercial radio stations is
generally permitted if the combined audience share of the commonly
owned stations does not exceed 25 percent in the market. Section
202(b)(1) of the Telecom Act requires the Commission to ``revise
section 73.3555(a) of its regulations * * * to provide that--
(A) In a radio market with 45 or more commercial radio stations,
a party may own, operate, or control up to 8 commercial radio
[[Page 10690]]
stations, not more than 5 of which are in the same service (AM or
FM);
(B) in a radio market with between 30 and 44 (inclusive)
commercial radio stations, a party may own, operate, or control up
to 7 commercial radio stations, not more than 4 of which are in the
same service (AM or FM);
(C) in a radio market with between 15 and 29 (inclusive)
commercial radio stations, a party may own, operate, or control up
to 6 commercial radio stations, not more than 4 of which are in the
same service (AM or FM); and
(D) in a radio market with 14 or fewer commercial radio
stations, a party may own, operate, or control up to 5 commercial
radio stations, not more than 3 of which are in the same service (AM
or FM), except that a party may not own, operate, or control more
than 50 percent of the stations in such market.''
Accordingly, Sec. 73.3555(a)(1) and 73.3555(a)(3)(iii) of the
Commission's Rules will be revised to reflect the changes directed by
section 202(b)(1) of the Telecom Act, as set forth below. Section
73.3555(a)(3)(iii), which defines a radio station's ``audience share''
for multiple radio ownership under the current rules, will be deleted.
Other Matters
4. This Order is limited to revising our rules as directed by
sections 202(a) and 202(b)(1) of the Telecom Act. Section 202(b)(2) of
the Telecom Act provides that notwithstanding any limitation authorized
by this subsection, the Commission may permit a person or entity to
own, operate, or control, or have a cognizable interest in, radio
broadcast stations if the Commission determines that such ownership,
operation, control, or interest will result in an increase in the
number of radio broadcast stations in operation. The implementation of
this particular provision will be addressed in a subsequent Notice of
Proposed Rule Making. Of course, entities are not precluded from asking
the Commission to apply this statutory exception in a particular case
before any rule changes.
5. The following aspects of our radio ownership rules, as set forth
in previous Commission decisions, are unaffected by the Telecom Act and
will remain in effect: (1) We will continue to define the relevant
radio market as the area encompassed by the principal community
contours (i.e., predicted or measured 5 mV/m for AM stations and
predicted 3.16 mV/m for FM stations) of the mutually overlapping
stations proposing to have common ownership. (2) The number of stations
in the market will continue to be determined based on the principal
community contours of all commercial stations whose principal community
contours overlap or intersect the principal community contours of the
commonly-owned and mutually overlapping stations. (3) The stations that
will be included within the market will continue to be operating
commercial full-power stations, including daytimers and foreign
stations. We will continue to exclude non-commercial stations,
translators and stations that are not operational. However, the
principal community contours of any non-operational commercial stations
that are part of a transaction or that are commonly-owned by a party to
the transaction will continue to be used to define the radio market and
to count the number of stations in the radio market. We also note that
time brokerage agreements between two stations in the same market that
involve more than 15 percent of the brokered station's programming per
week will continue to be treated as if the brokered station is owned by
the brokering station for purposes of the radio local ownership rules.
Administrative Matters
We are revising these rules without providing prior public notice
and comment because the rules being modified are mandated by the
applicable provisions of the Telecom Act. We find that notice and
comment procedures are unnecessary, and that this action therefore
falls within the ``good cause'' exception of the Administrative
Procedure Act. See 5 U.S.C. 553(b)(B) (notice requirements inapplicable
``when the agency for good cause finds . . . that notice and public
procedure thereon are impracticable, unnecessary, or contrary to the
public interest''). The rule changes adopted in this Order do not
involve discretionary action on the part of the Commission. Rather,
they simply implement provisions of the Telecom Act that direct the
Commission to revise its rules according to specific terms set forth in
the legislation.
Ordering Clause
7. Accordingly, it is ordered that pursuant to sections 202(a) and
202(b)(1) of the Telecommunications Act of 1996, and to sections 4(i)
and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C.
154(i), 303(r), part 73 of the Commission's Rules, 47 CFR part 73, is
amended as set forth below. We note that Sec. 73.3555(e) is also being
amended in the Order implementing certain of the Telecom Act's
broadcast television ownership provisions that is being released
simultaneously with this Order.1 For clarity, the amendments to
Sec. 73.3555(e) are being set forth only in that proceeding. The rules
will become effective upon publication of this Order in the Federal
Register.
\1\ Order, FCC 96-91 (released March 8, 1996).
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List of Subjects in 47 CFR Part 73
Radio broadcasting.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
Rule Changes
Part 73 of title 47 of the Code of Federal Regulations is amended
as follows:
PART 73--RADIO BROADCAST SERVICES
1. The authority citation for part 73 continues to read as follows:
Authority: 47 U.S.C. 154, 303, 334.
2. Section 73.3555 is amended by revising paragraph (a) to read as
follows:
Sec. 73.3555 Multiple ownership.
(a)(1) Radio contour overlap rule. No license for an AM or FM
broadcasting station shall be granted to any party (including all
parties under common control) if the grant of such license will result
in overlap of the principal community contour of that station and the
principal community contour of any other broadcasting station directly
or indirectly owned, operated, or controlled by the same party, except
that such license may be granted in connection with a transfer or
assignment from an existing party with such interests, or in the
following circumstances:
(i) In a radio market with 45 or more commercial radio stations, a
party may own, operate, or control up to 8 commercial radio stations,
not more than 5 of which are in the same service (AM or FM);
(ii) In a radio market with between 30 and 44 (inclusive)
commercial radio stations, a party may own, operate, or control up to 7
commercial radio stations, not more than 4 of which are in the same
service (AM or FM);
(iii) In a radio market with between 15 and 29 (inclusive)
commercial radio stations, a party may own, operate, or control up to 6
commercial radio stations, not more than 4 of which are in the same
service (AM or FM); and
(iv) In a radio market with 14 or fewer commercial radio stations,
a party may own, operate, or control up to 5 commercial radio stations,
not more than 3 of which are in the same service (AM or FM), except
that a party may not own, operate, or control more than 50 percent of
the stations in such market.
[[Page 10691]]
(2) Overlap between two stations in different services is
permissible if neither of those two stations overlaps a third station
in the same service.
(3) (i) Where the principal community contours of two radio
stations overlap and a party (including all parties under common
control) with an attributable ownership interest in one such station
brokers more than 15 percent of the broadcast time per week of the
other such station, that party shall be treated as if it has an
interest in the brokered station subject to the limitations set forth
in paragraph (a)(1) of this section. This limitation shall apply
regardless of the source of the brokered programming supplied by the
party to the brokered station.
(ii) Every time brokerage agreement of the type described in
paragraph (a)(3)(i) of this section shall be undertaken only pursuant
to a signed written agreement that shall contain a certification by the
licensee or permittee of the brokered station verifying that it
maintains ultimate control over the station's facilities, including
specifically control over station finances, personnel and programming,
and by the brokering station that the agreement complies with the
provisions of paragraph (a) of this section.
(4) For purposes of this paragraph (a):
(i) The ``principal community contour'' for AM stations is the
predicted or measured 5 mV/m groundwave contour computed in accordance
with Sec. 73.183 or Sec. 73.186 and for FM stations is the predicted
3.16 mV/m contour computed in accordance with Sec. 73.313.
(ii) The number of stations in a radio market is the number of
commercial stations whose principal community contours overlap, in
whole or in part, with the principal community contours of the stations
in question (i.e., the station for which an authorization is sought and
any station in the same service that would be commonly owned whose
principal community contour overlaps the principal community contour of
that station). In addition, if the area of overlap between the stations
in question is overlapped by the principal community contour of a
commonly owned station or stations in a different service (AM or FM),
the number of stations in the market includes stations whose principal
community contours overlap the principal community contours of such
commonly owned station or stations in a different service.
(iii) ``Time brokerage'' is the sale by a licensee of discrete
blocks of time to a ``broker'' that supplies the programming to fill
that time and sells the commercial spot announcements in it.
* * * * *
[FR Doc. 96-6207 Filed 3-14-96; 8:45 am]
BILLING CODE 6712-01-U
