Goto Section: 73.3550 | 73.3556 | Table of Contents
FCC 73.3555
Revised as of October 2, 2015
Goto Year:2014 |
2016
§ 73.3555 Multiple ownership.
(a)(1) Local radio ownership rule. A person or single entity (or entities
under common control) may have a cognizable interest in licenses for AM or
FM radio broadcast stations in accordance with the following limits:
(i) In a radio market with 45 or more full-power, commercial and
noncommercial radio stations, not more than 8 commercial radio stations in
total and not more than 5 commercial stations in the same service (AM or
FM);
(ii) In a radio market with between 30 and 44 (inclusive) full-power,
commercial and noncommercial radio stations, not more than 7 commercial
radio stations in total and not more than 4 commercial stations in the same
service (AM or FM);
(iii) In a radio market with between 15 and 29 (inclusive) full-power,
commercial and noncommercial radio stations, not more than 6 commercial
radio stations in total and not more than 4 commercial stations in the same
service (AM or FM); and
(iv) In a radio market with 14 or fewer full-power, commercial and
noncommercial radio stations, not more than 5 commercial radio stations in
total and not more than 3 commercial stations in the same service (AM or
FM); provided, however, that no person or single entity (or entities under
common control) may have a cognizable interest in more than 50% of the
full-power, commercial and noncommercial radio stations in such market
unless the combination of stations comprises not more than one AM and one FM
station.
(2) Overlap between two stations in different services is permissible if
neither of those two stations overlaps a third station in the same service.
(b) Local television multiple ownership rule. An entity may directly or
indirectly own, operate, or control two television stations licensed in the
same Designated Market Area (DMA) (as determined by Nielsen Media Research
or any successor entity) only under one or more of the following conditions:
(1) The Grade B contours of the stations (as determined by § 73.684) do not
overlap; or
(i) At the time the application to acquire or construct the station(s) is
filed, at least one of the stations is not ranked among the top four
stations in the DMA, based on the most recent all-day (9 a.m.-midnight)
audience share, as measured by Nielsen Media Research or by any comparable
professional, accepted audience ratings service; and
(ii) At least 8 independently owned and operating, full-power commercial and
noncommercial TV stations would remain post-merger in the DMA in which the
communities of license of the TV stations in question are located. Count
only those stations the Grade B signal contours of which overlap with the
Grade B signal contour of at least one of the stations in the proposed
combination. In areas where there is no Nielsen DMA, count the TV stations
present in an area that would be the functional equivalent of a TV market.
Count only those TV stations the Grade B signal contours of which overlap
with the Grade B signal contour of at least one of the stations in the
proposed combination.
(2) [Reserved]
(c) Radio-television cross-ownership rule—(1) This rule is triggered when:
(i) The predicted or measured 1 mV/m contour of an existing or proposed FM
station (computed in accordance with § 73.313) encompasses the entire
community of license of an existing or proposed commonly owned TV broadcast
station(s), or the Grade A contour(s) of the TV broadcast station(s)
(computed in accordance with § 73.684) encompasses the entire community of
license of the FM station; or
(ii) The predicted or measured 2 mV/m groundwave contour of an existing or
proposed AM station (computed in accordance with § 73.183 or § 73.386),
encompasses the entire community of license of an existing or proposed
commonly owned TV broadcast station(s), or the Grade A contour(s) of the TV
broadcast station(s) (computed in accordance with § 73.684) encompass(es) the
entire community of license of the AM station.
(2) An entity may directly or indirectly own, operate, or control up to two
commercial TV stations (if permitted by paragraph (b) of this section, the
local television multiple ownership rule) and 1 commercial radio station
situated as described in paragraph (c)(1) of this section. An entity may not
exceed these numbers, except as follows:
(i) If at least 20 independently owned media voices would remain in the
market post-merger, an entity can directly or indirectly own, operate, or
control up to:
(A) Two commercial TV and six commercial radio stations (to the extent
permitted by paragraph (a) of this section, the local radio multiple
ownership rule); or
(B) One commercial TV and seven commercial radio stations (to the extent
that an entity would be permitted to own two commercial TV and six
commercial radio stations under paragraph (c)(2)(i)(A) of this section, and
to the extent permitted by paragraph (a) of this section, the local radio
multiple ownership rule).
(ii) If at least 10 independently owned media voices would remain in the
market post-merger, an entity can directly or indirectly own, operate, or
control up to two commercial TV and four commercial radio stations (to the
extent permitted by paragraph (a) of this section, the local radio multiple
ownership rule).
(3) To determine how many media voices would remain in the market, count the
following:
(i) TV stations: independently owned and operating full-power broadcast TV
stations within the DMA of the TV station's (or stations') community (or
communities) of license that have Grade B signal contours that overlap with
the Grade B signal contour(s) of the TV station(s) at issue;
(ii) Radio stations: (A)(1) Independently owned operating primary broadcast
radio stations that are in the radio metro market (as defined by Arbitron or
another nationally recognized audience rating service) of:
(i) The TV station's (or stations') community (or communities) of license;
or
(ii) The radio station's (or stations') community (or communities) of
license; and
(2) Independently owned out-of-market broadcast radio stations with a
minimum share as reported by Arbitron or another nationally recognized
audience rating service.
(B) When a proposed combination involves stations in different radio
markets, the voice requirement must be met in each market; the radio
stations of different radio metro markets may not be counted together.
(C) In areas where there is no radio metro market, count the radio stations
present in an area that would be the functional equivalent of a radio
market.
(iii) Newspapers: Newspapers that are published at least four days a week
within the TV station's DMA in the dominant language of the market and that
have a circulation exceeding 5% of the households in the DMA; and
(iv) One cable system: if cable television is generally available to
households in the DMA. Cable television counts as only one voice in the DMA,
regardless of how many individual cable systems operate in the DMA.
(d) Daily newspaper cross-ownership rule. (1) No license for an AM, FM or TV
broadcast station shall be granted to any party (including all parties under
common control) if such party directly or indirectly owns, operates or
controls a daily newspaper and the grant of such license will result in:
(i) The predicted or measured 2 mV/m contour of an AM station, computed in
accordance with § 73.183 or § 73.186, encompassing the entire community in
which such newspaper is published; or
(ii) The predicted 1 mV/m contour for an FM station, computed in accordance
with § 73.313, encompassing the entire community in which such newspaper is
published; or
(iii) The Grade A contour of a TV station, computed in accordance with
§ 73.684, encompassing the entire community in which such newspaper is
published.
(2) Paragraph (d)(1) of this section shall not apply in cases where the
Commission makes a finding pursuant to Section 310(d) of the Communications
Act that the public interest, convenience, and necessity would be served by
permitting an entity that owns, operates or controls a daily newspaper to
own, operate or control an AM, FM, or TV broadcast station whose relevant
contour encompasses the entire community in which such newspaper is
published as set forth in paragraph (d)(1) of this section.
(3) In making a finding under paragraph (d)(2) of this section, there shall
be a presumption that it is not inconsistent with the public interest,
convenience, and necessity for an entity to own, operate or control a daily
newspaper in a top 20 Nielsen DMA and one commercial AM, FM or TV broadcast
station whose relevant contour encompasses the entire community in which
such newspaper is published as set forth in paragraph (d)(1) of this
section, provided that, with respect to a combination including a commercial
TV station,
(i) The station is not ranked among the top four TV stations in the DMA,
based on the most recent all-day (9 a.m.-midnight) audience share, as
measured by Nielsen Media Research or by any comparable professional,
accepted audience ratings service; and
(ii) At least 8 independently owned and operating major media voices would
remain in the DMA in which the community of license of the TV station in
question is located (for purposes of this provision major media voices
include full-power TV broadcast stations and major newspapers).
(4) In making a finding under paragraph (d)(2) of this section, there shall
be a presumption that it is inconsistent with the public interest,
convenience, and necessity for an entity to own, operate or control a daily
newspaper and an AM, FM or TV broadcast station whose relevant contour
encompasses the entire community in which such newspaper is published as set
forth in paragraph (d)(1) of this section in a DMA other than the top 20
Nielsen DMAs or in any circumstance not covered under paragraph (d)(3) of
this section.
(5) In making a finding under paragraph (d)(2) of this section, the
Commission shall consider:
(i) Whether the combined entity will significantly increase the amount of
local news in the market;
(ii) Whether the newspaper and the broadcast outlets each will continue to
employ its own staff and each will exercise its own independent news
judgment;
(iii) The level of concentration in the Nielsen Designated Market Area
(DMA); and
(iv) The financial condition of the newspaper or broadcast station, and if
the newspaper or broadcast station is in financial distress, the proposed
owner's commitment to invest significantly in newsroom operations.
(6) In order to overcome the negative presumption set forth in paragraph
(d)(4) of this section with respect to the combination of a major newspaper
and a television station, the applicant must show by clear and convincing
evidence that the co-owned major newspaper and station will increase the
diversity of independent news outlets and increase competition among
independent news sources in the market, and the factors set forth above in
paragraph (d)(5) of this section will inform this decision.
(7) The negative presumption set forth in paragraph (d)(4) of this section
shall be reversed under the following two circumstances:
(i) The newspaper or broadcast station is failed or failing; or
(ii) The combination is with a broadcast station that was not offering local
newscasts prior to the combination, and the station will initiate at least
seven hours per week of local news programming after the combination.
(e) National television multiple ownership rule. (1) No license for a
commercial television broadcast station shall be granted, transferred or
assigned to any party (including all parties under common control) if the
grant, transfer or assignment of such license would result in such party or
any of its stockholders, partners, members, officers or directors having a
cognizable interest in television stations which have an aggregate national
audience reach exceeding thirty-nine (39) percent.
(2) For purposes of this paragraph (e):
(i) National audience reach means the total number of television households
in the Nielsen Designated Market Areas (DMAs) in which the relevant stations
are located divided by the total national television households as measured
by DMA data at the time of a grant, transfer, or assignment of a license.
For purposes of making this calculation, UHF television stations shall be
attributed with 50 percent of the television households in their DMA market.
(ii) No market shall be counted more than once in making this calculation.
(3) Divestiture. A person or entity that exceeds the thirty-nine (39)
percent national audience reach limitation for television stations in
paragraph (e)(1) of this section through grant, transfer, or assignment of
an additional license for a commercial television broadcast station shall
have not more than 2 years after exceeding such limitation to come into
compliance with such limitation. This divestiture requirement shall not
apply to persons or entities that exceed the 39 percent national audience
reach limitation through population growth.
(f) The ownership limits of this section are not applicable to noncommercial
educational FM and noncommercial educational TV stations. However, the
attribution standards set forth in the Notes to this section will be used to
determine attribution for noncommercial educational FM and TV applicants,
such as in evaluating mutually exclusive applications pursuant to subpart K
of part 73.
Note 1 to § 73.3555: The words “cognizable interest” as used herein include
any interest, direct or indirect, that allows a person or entity to own,
operate or control, or that otherwise provides an attributable interest in,
a broadcast station.
Note 2 to § 73.3555: In applying the provisions of this section, ownership
and other interests in broadcast licensees, cable television systems and
daily newspapers will be attributed to their holders and deemed cognizable
pursuant to the following criteria:
a. Except as otherwise provided herein, partnership and direct ownership
interests and any voting stock interest amounting to 5% or more of the
outstanding voting stock of a corporate broadcast licensee, cable television
system or daily newspaper will be cognizable;
b. Investment companies, as defined in 15 U.S.C. 80a-3, insurance companies
and banks holding stock through their trust departments in trust accounts
will be considered to have a cognizable interest only if they hold 20% or
more of the outstanding voting stock of a corporate broadcast licensee,
cable television system or daily newspaper, or if any of the officers or
directors of the broadcast licensee, cable television system or daily
newspaper are representatives of the investment company, insurance company
or bank concerned. Holdings by a bank or insurance company will be
aggregated if the bank or insurance company has any right to determine how
the stock will be voted. Holdings by investment companies will be aggregated
if under common management.
c. Attribution of ownership interests in a broadcast licensee, cable
television system or daily newspaper that are held indirectly by any party
through one or more intervening corporations will be determined by
successive multiplication of the ownership percentages for each link in the
vertical ownership chain and application of the relevant attribution
benchmark to the resulting product, except that wherever the ownership
percentage for any link in the chain exceeds 50%, it shall not be included
for purposes of this multiplication. For purposes of paragraph i. of this
note, attribution of ownership interests in a broadcast licensee, cable
television system or daily newspaper that are held indirectly by any party
through one or more intervening organizations will be determined by
successive multiplication of the ownership percentages for each link in the
vertical ownership chain and application of the relevant attribution
benchmark to the resulting product, and the ownership percentage for any
link in the chain that exceeds 50% shall be included for purposes of this
multiplication. [For example, except for purposes of paragraph (i) of this
note, if A owns 10% of company X, which owns 60% of company Y, which owns
25% of “Licensee,” then X's interest in “Licensee” would be 25% (the same as
Y's interest because X's interest in Y exceeds 50%), and A's interest in
“Licensee” would be 2.5% (0.1 × 0.25). Under the 5% attribution benchmark,
X's interest in “Licensee” would be cognizable, while A's interest would not
be cognizable. For purposes of paragraph i. of this note, X's interest in
“Licensee” would be 15% (0.6 × 0.25) and A's interest in “Licensee” would be
1.5% (0.1 × 0.6 × 0.25). Neither interest would be attributed under
paragraph i. of this note.]
d. Voting stock interests held in trust shall be attributed to any person
who holds or shares the power to vote such stock, to any person who has the
sole power to sell such stock, and to any person who has the right to revoke
the trust at will or to replace the trustee at will. If the trustee has a
familial, personal or extra-trust business relationship to the grantor or
the beneficiary, the grantor or beneficiary, as appropriate, will be
attributed with the stock interests held in trust. An otherwise qualified
trust will be ineffective to insulate the grantor or beneficiary from
attribution with the trust's assets unless all voting stock interests held
by the grantor or beneficiary in the relevant broadcast licensee, cable
television system or daily newspaper are subject to said trust.
e. Subject to paragraph i. of this note, holders of non-voting stock shall
not be attributed an interest in the issuing entity. Subject to paragraph i.
of this note, holders of debt and instruments such as warrants, convertible
debentures, options or other non-voting interests with rights of conversion
to voting interests shall not be attributed unless and until conversion is
effected.
f. 1. A limited partnership interest shall be attributed to a limited
partner unless that partner is not materially involved, directly or
indirectly, in the management or operation of the media-related activities
of the partnership and the licensee or system so certifies. An interest in a
Limited Liability Company (“LLC”) or Registered Limited Liability
Partnership (“RLLP”) shall be attributed to the interest holder unless that
interest holder is not materially involved, directly or indirectly, in the
management or operation of the media-related activities of the partnership
and the licensee or system so certifies.
2. For a licensee or system that is a limited partnership to make the
certification set forth in paragraph f. 1. of this note, it must verify that
the partnership agreement or certificate of limited partnership, with
respect to the particular limited partner exempt from attribution,
establishes that the exempt limited partner has no material involvement,
directly or indirectly, in the management or operation of the media
activities of the partnership. For a licensee or system that is an LLC or
RLLP to make the certification set forth in paragraph f. 1. of this note, it
must verify that the organizational document, with respect to the particular
interest holder exempt from attribution, establishes that the exempt
interest holder has no material involvement, directly or indirectly, in the
management or operation of the media activities of the LLC or RLLP. The
criteria which would assume adequate insulation for purposes of this
certification are described in the Memorandum Opinion and Order in MM Docket
No. 83-46, FCC 85-252 (released June 24, 1985), as modified on
reconsideration in the Memorandum Opinion and Order in MM Docket No. 83-46,
FCC 86-410 (released November 28, 1986). Irrespective of the terms of the
certificate of limited partnership or partnership agreement, or other
organizational document in the case of an LLC or RLLP, however, no such
certification shall be made if the individual or entity making the
certification has actual knowledge of any material involvement of the
limited partners, or other interest holders in the case of an LLC or RLLP,
in the management or operation of the media-related businesses of the
partnership or LLC or RLLP.
3. In the case of an LLC or RLLP, the licensee or system seeking insulation
shall certify, in addition, that the relevant state statute authorizing LLCs
permits an LLC member to insulate itself as required by our criteria.
g. Officers and directors of a broadcast licensee, cable television system
or daily newspaper are considered to have a cognizable interest in the
entity with which they are so associated. If any such entity engages in
businesses in addition to its primary business of broadcasting, cable
television service or newspaper publication, it may request the Commission
to waive attribution for any officer or director whose duties and
responsibilities are wholly unrelated to its primary business. The officers
and directors of a parent company of a broadcast licensee, cable television
system or daily newspaper, with an attributable interest in any such
subsidiary entity, shall be deemed to have a cognizable interest in the
subsidiary unless the duties and responsibilities of the officer or director
involved are wholly unrelated to the broadcast licensee, cable television
system or daily newspaper subsidiary, and a statement properly documenting
this fact is submitted to the Commission. [This statement may be included on
the appropriate Ownership Report.] The officers and directors of a sister
corporation of a broadcast licensee, cable television system or daily
newspaper shall not be attributed with ownership of these entities by virtue
of such status.
h. Discrete ownership interests will be aggregated in determining whether or
not an interest is cognizable under this section. An individual or entity
will be deemed to have a cognizable investment if:
1. The sum of the interests held by or through “passive investors” is equal
to or exceeds 20 percent; or
2. The sum of the interests other than those held by or through “passive
investors” is equal to or exceeds 5 percent; or
3. The sum of the interests computed under paragraph h. 1. of this note plus
the sum of the interests computed under paragraph h. 2. of this note is
equal to or exceeds 20 percent.
i.1. Notwithstanding paragraphs e. and f. of this Note, the holder of an
equity or debt interest or interests in a broadcast licensee, cable
television system, daily newspaper, or other media outlet subject to the
broadcast multiple ownership or cross-ownership rules (“interest holder”)
shall have that interest attributed if:
A. The equity (including all stockholdings, whether voting or nonvoting,
common or preferred) and debt interest or interests, in the aggregate,
exceed 33 percent of the total asset value, defined as the aggregate of all
equity plus all debt, of that media outlet; and
B.(i) The interest holder also holds an interest in a broadcast licensee,
cable television system, newspaper, or other media outlet operating in the
same market that is subject to the broadcast multiple ownership or
cross-ownership rules and is attributable under paragraphs of this note
other than this paragraph i.; or
(ii) The interest holder supplies over fifteen percent of the total weekly
broadcast programming hours of the station in which the interest is held.
For purposes of applying this paragraph, the term, “market,” will be defined
as it is defined under the specific multiple ownership rule or
cross-ownership rule that is being applied, except that for television
stations, the term “market,” will be defined by reference to the definition
contained in the local television multiple ownership rule contained in
paragraph (b) of this section.
2. Notwithstanding paragraph i.1. of this Note, the interest holder may
exceed the 33 percent threshold therein without triggering attribution where
holding such interest would enable an eligible entity to acquire a broadcast
station, provided that:
i. The combined equity and debt of the interest holder in the eligible
entity is less than 50 percent, or
ii. The total debt of the interest holder in the eligible entity does not
exceed 80 percent of the asset value of the station being acquired by the
eligible entity and the interest holder does not hold any equity interest,
option, or promise to acquire an equity interest in the eligible entity or
any related entity. For purposes of this paragraph i.2, an “eligible
entity” shall include any entity that qualifies as a small business under
the Small Business Administration's size standards for its industry
grouping, as set forth in 13 CFR 121.201, at the time the transaction is
approved by the FCC, and holds:
A. 30 percent or more of the stock or partnership interests and more than 50
percent of the voting power of the corporation or partnership that will own
the media outlet; or
B. 15 percent or more of the stock or partnership interests and more than 50
percent of the voting power of the corporation or partnership that will own
the media outlet, provided that no other person or entity owns or controls
more than 25 percent of the outstanding stock or partnership interests; or
C. More than 50 percent of the voting power of the corporation that will own
the media outlet if such corporation is a publicly traded company.
j. “Time brokerage” (also known as “local marketing”) 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.
1. Where two radio stations are both located in the same market, as defined
for purposes of the local radio ownership rule contained in paragraph (a) of
this section, and a party (including all parties under common control) with
a cognizable 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 paragraphs (a), (c), and (d) of this section. This
limitation shall apply regardless of the source of the brokered programming
supplied by the party to the brokered station.
2. Where two television stations are both located in the same market, as
defined in the local television ownership rule contained in paragraph (b) of
this section, and a party (including all parties under common control) with
a cognizable 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 paragraphs (b), (c), (d) and (e) of this section.
This limitation shall apply regardless of the source of the brokered
programming supplied by the party to the brokered station.
3. Every time brokerage agreement of the type described in this Note 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 paragraphs (b), (c), and (d) of this section if the
brokering station is a television station or with paragraphs (a), (c), and
(d) of this section if the brokering station is a radio station.
k. “Joint Sales Agreement” is an agreement with a licensee of a “brokered
station” that authorizes a “broker” to sell advertising time for the
“brokered station.”
1. Where two radio stations are both located in the same market, as defined
for purposes of the local radio ownership rule contained in paragraph (a) of
this section, and a party (including all parties under common control) with
a cognizable interest in one such station sells more than 15 percent of the
advertising 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 paragraphs (a), (c), and (d) of this section.
2. Where two television stations are both located in the same market, as
defined for purposes of the local television ownership rule contained in
paragraph (b) of this section, and a party (including all parties under
common control) with a cognizable interest in one such station sells more
than 15 percent of the advertising 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 paragraphs (b), (c), (d), and (e) of
this section.
3. Every joint sales agreement of the type described in this Note 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 limitations
set forth in paragraphs (b), (c), and (d) of this section if the brokering
station is a television station or with paragraphs (a), (c), and (d) of this
section if the brokering station is a radio station.
Note 3 to § 73.3555: In cases where record and beneficial ownership of voting
stock is not identical (e.g., bank nominees holding stock as record owners
for the benefit of mutual funds, brokerage houses holding stock in street
names for the benefit of customers, investment advisors holding stock in
their own names for the benefit of clients, and insurance companies holding
stock), the party having the right to determine how the stock will be voted
will be considered to own it for purposes of these rules.
Note 4 to § 73.3555: Paragraphs (a) through (d) of this section will not be
applied so as to require divestiture, by any licensee, of existing
facilities, and will not apply to applications for assignment of license or
transfer of control filed in accordance with § 73.3540(f) or § 73.3541(b), or
to applications for assignment of license or transfer of control to heirs or
legatees by will or intestacy, if no new or increased concentration of
ownership would be created among commonly owned, operated or controlled
media properties. Paragraphs (a) through (d) of this section will apply to
all applications for new stations, to all other applications for assignment
or transfer, to all applications for major changes to existing stations, and
to applications for minor changes to existing stations that implement an
approved change in an FM radio station's community of license or create new
or increased concentration of ownership among commonly owned, operated or
controlled media properties. Commonly owned, operated or controlled media
properties that do not comply with paragraphs (a) through (d) of this
section may not be assigned or transferred to a single person, group or
entity, except as provided in this Note or in the Report and Order in Docket
No. 02-277, released July 2, 2003 (FCC 02-127).
Note 5 to § 73.3555: Paragraphs (b) through (e) of this section will not be
applied to cases involving television stations that are “satellite”
operations. Such cases will be considered in accordance with the analysis
set forth in the Report and Order in MM Docket No. 87-8, FCC 91-182
(released July 8, 1991), in order to determine whether common ownership,
operation, or control of the stations in question would be in the public
interest. An authorized and operating “satellite” television station, the
Grade B contour of which overlaps that of a commonly owned, operated, or
controlled “non-satellite” parent television broadcast station, or the Grade
A contour of which completely encompasses the community of publication of a
commonly owned, operated, or controlled daily newspaper, or the community of
license of a commonly owned, operated, or controlled AM or FM broadcast
station, or the community of license of which is completely encompassed by
the 2 mV/m contour of such AM broadcast station or the 1 mV/m contour of
such FM broadcast station, may subsequently become a “non-satellite” station
under the circumstances described in the aforementioned Report and Order in
MM Docket No. 87-8. However, such commonly owned, operated, or controlled
“non-satellite” television stations and AM or FM stations with the
aforementioned community encompassment, may not be transferred or assigned
to a single person, group, or entity except as provided in Note 4 of this
section. Nor shall any application for assignment or transfer concerning
such “non-satellite” stations be granted if the assignment or transfer would
be to the same person, group or entity to which the commonly owned,
operated, or controlled newspaper is proposed to be transferred, except as
provided in Note 4 of this section.
Note 6 to § 73.3555: For purposes of this section a daily newspaper is one
which is published four or more days per week, which is in the dominant
language in the market, and which is circulated generally in the community
of publication. A college newspaper is not considered as being circulated
generally.
Note 7 to § 73.3555: The Commission will entertain applications to waive the
restrictions in paragraph (b) and (c) of this section (the local television
ownership rule and the radio/television cross-ownership rule) on a
case-by-case basis. In each case, we will require a showing that the
in-market buyer is the only entity ready, willing, and able to operate the
station, that sale to an out-of-market applicant would result in an
artificially depressed price, and that the waiver applicant does not already
directly or indirectly own, operate, or control interest in two television
stations within the relevant DMA. One way to satisfy these criteria would be
to provide an affidavit from an independent broker affirming that active and
serious efforts have been made to sell the permit, and that no reasonable
offer from an entity outside the market has been received.
We will entertain waiver requests as follows:
1. If one of the broadcast stations involved is a “failed” station that has
not been in operation due to financial distress for at least four
consecutive months immediately prior to the application, or is a debtor in
an involuntary bankruptcy or insolvency proceeding at the time of the
application.
2. For paragraph (b) of this section only, if one of the television stations
involved is a “failing” station that has an all-day audience share of no
more than four per cent; the station has had negative cash flow for three
consecutive years immediately prior to the application; and consolidation of
the two stations would result in tangible and verifiable public interest
benefits that outweigh any harm to competition and diversity.
3. For paragraph (b) of this section only, if the combination will result in
the construction of an unbuilt station. The permittee of the unbuilt station
must demonstrate that it has made reasonable efforts to construct but has
been unable to do so.
Note 8 to § 73.3555: Paragraph (a)(1) of this section will not apply to an
application for an AM station license in the 535-1605 kHz band where grant
of such application will result in the overlap of 5 mV/m groundwave contours
of the proposed station and that of another AM station in the 535-1605 kHz
band that is commonly owned, operated or controlled if the applicant shows
that a significant reduction in interference to adjacent or co-channel
stations would accompany such common ownership. Such AM overlap cases will
be considered on a case-by-case basis to determine whether common ownership,
operation or control of the stations in question would be in the public
interest. Applicants in such cases must submit a contingent application of
the major or minor facilities change needed to achieve the interference
reduction along with the application which seeks to create the 5 mV/m
overlap situation.
Note 9 to § 73.3555: Paragraph (a)(1) of this section will not apply to an
application for an AM station license in the 1605-1705 kHz band where grant
of such application will result in the overlap of the 5 mV/m groundwave
contours of the proposed station and that of another AM station in the
535-1605 kHz band that is commonly owned, operated or controlled. Paragraphs
(d)(1)(i) and (d)(1)(ii) of this section will not apply to an application
for an AM station license in the 1605-1705 kHz band by an entity that owns,
operates, controls or has a cognizable interest in AM radio stations in the
535-1605 kHz band.
Note 10 to § 73.3555: Authority for joint ownership granted pursuant to Note
9 will expire at 3 a.m. local time on the fifth anniversary for the date of
issuance of a construction permit for an AM radio station in the 1605-1705
kHz band.
[ 73 FR 9487 , Feb. 21, 2008, as amended at 73 FR 28369 , May 16, 2008; 75 FR 27199 , May 14, 2010; 79 FR 29006 , May 20, 2014]
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Goto Section: 73.3550 | 73.3556
Goto Year: 2014 |
2016
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