February 2005 Newsletter

Graham Brock, Inc.

Broadcast Technical Consultants

Vol. XII, No. 2	R. Stuart Graham, Jr.
February 2005	Jefferson G. Brock

February Newsletter

Joint Sales Agreements

Under the revised radio ownership rules, Joint Sales Agreements (“JSA”) are now considered an attributed interest to the seller of advertising that is to be aired on a station they do not own. The FCC is now requesting that stations located in an Arbitron Metro market and involved in a JSA selling more than 15% of the commercial time of the station, submit a copy of the JSA to the Commission by February 22, 2005. The Commission also wants those parties to update and/or resubmit ownership studies to demonstrate that the JSA complies with the reviewed Arbitron market rules. Some JSA owners with an excess number of stations in a particular market will be grandfathered; other JSA’s must be terminated no later than September 3, 2006.

Radio Ownership Studies

While it was normal to submit ownership studies with transfer applications, a radio ownership study must now be submitted with all applications for construction permits. Therefore, a multiple ownership review must be made and submitted at the same time the technical portion of the application is prepared and filed. In BIA/Arbitron markets with no change to the communities of license, there is typically no impact to the markets, but things may be complicated if the current number of stations owned already exceeds the limit. For non-metro stations, contour overlap rules still apply and a demonstration of compliance must be made. In some cases, both a BIA/Arbitron study and contour overlap study must be submitted, depending on the stations involved. As such, allow sufficient time to have the engineering application and the ownership analysis completed.

FM Auction Applications Submitted

All winning bidders in the November 2004, FM Auction 37 were to have submitted their respective applications for the new stations by January 3, 2005. Staff at the FCC is already reviewing the submissions for technical and legal compliance. In some cases, applications request one-step upgrades, new towers, and station downgrades (Class C to Class C0). One station that required a Class C0 downgrade to accommodate one of the auction filings has already been sent a Show Cause Order by the Commission. This was done only 6 days after the triggering auction application was filed. Several construction permits have already been of FM vacant channels are being cued up for auction. The issued, and we have also heard a rumor that the next batch public notice announcing the channels and dates for the next FM auction may be out in the next few months.

Rule Making Proceedings

The FCC has lifted the freeze on Petitions for Rule Making that would potentially have had an impact on any of the Auction 37 FM channels. Last year, the FCC halted petitions that proposed any changes to channels involved in the auction. Since the auction is completed, with the winning bidders having specified sites for their respective facilities, new Rule Making Petitions can now be submitted that may change channels of the auction allotments. There was no mention of Rule Makings that were pending or filed before the end of the auctions, or proposed alternate channels in auction communities.

DTV Transition

February 10th was the deadline for TV licensees with both their analog and digital channels within the TV core spectrum (Channels 2-51) to elect which channel they will remain on post-transition. The channels selected are available for review on the Commission’s website. The FCC staff now begins the task of reviewing the selections to determine if there are any conflicts. The second round of elections, for stations with one channel in the core and the other outside of the core, is scheduled for July of this year. This date may change as the initial analysis of elections in the first round drags on.

NAB not far away

Make your plans soon for the annual trek to the west for the National Association of Broadcasters Convention in Las Vegas -- just two months away. The NAB is an excellent opportunity to stay in touch with the trends in our industry, the people and the advances in technology available to help your operation be more efficient and effective. If you or someone with your organization plans to attend, please let us know. Stu or Jeff would be happy to set some time aside to meet with you and discuss upcoming issues, or just to say hello.