Radio World revealed earlier this month that the acting chief of the Enforcement Bureau, Michael Carowitz, held a videoconference with members of the Bureau’s field-agent staff. The call revealed that the FCC’s downsizing of its enforcement resources has begun, with 11 field offices closed over the last several months (Anchorage, AK; Buffalo, NY; Detroit, MI; Houston, TX; Kansas City, MO; Norfolk, VA; Philadelphia, PA; San Diego, CA; Seattle, WA; Tampa, FL; and San Juan, PR) and 14 remaining open.
At present, that leaves just 34 field agents covering the entire country – this includes one of two roving “Tiger Teams” of agents organized to backstop the decimated staff in-residence. That’s almost a cut of half from the prior force of 60 that spanned the nation. It’s also important to keep in mind that these agents are responsible for enforcing all FCC regulations, not just the broadcast license requirement. Continue reading “Now They Tell Us: FCC, Congress Rethinking Enforcement Drawdown?”
A surprising uptick in the Enforcement Action Database for 2016: 201 total actions were logged last year, which is up from the prior two years. Furthermore, the frequency of threats of fines and actual fines against unlicensed broadcasters also rose: 9 NALs issued for a total of $155,000, and 5 forfeitures handed out for a total of $65,000. We haven’t seen numbers this large since 2014.
It gives some statistical credence to recently-former FCC Chair Tom Wheeler’s assertion that, despite the agency’s admittance that its license-enforcement protocol is effectively broken, it hasn’t ceded the field entirely. Unfortunately, statistics can be fudged, and the FCC’s done that well in the last year. Continue reading “FCC Anti-Pirate Enforcement in 2016: Symbolic Inflationism Ahoy”
How many ways can you keep debt at bay? Does non-payment sound like a viable option? Perhaps not if you’re just a mere flesh-and-blood human, but the corporate beast’s a special class.
Over at iHeartMedia, $250 million of the company’s $20+ billion debt came due last Thursday (December 15). In a surprise move, the company announced two days before that it would only be paying back just $192.9 million of these notes and foregoing the rest.
The reason? This debt constitutes money that various subsidiaries of iHeartMedia owe to each other. In addition, these particular debt instruments contain a provision that, should the total debt held between these entities fall below $500 million, it would trigger a “springing lien.” This is a fancy term for extra payments owed to debtors as an incentive for giving the conglomerate a nice line of credit.
By witholding $57.1 million of these payments, iHeartMedia’s total debt in this instance doesn’t fall below the threshold, and thus the company can avoid making the bonus-payments to creditors. To stymie any objection to this ploy, iHeart went to the friendly Bexar County, Texas courts and filed a flurry of paperwork last Monday (to give you an idea of how complex its debt structure is, there 11 petitions in all, involving six
Clear Channel iHeart subsidiaries), asking a judge to declare this practice kosher. Continue reading “iHeartMedia, Cumulus Go Debt-Offensive”
Though not by much, and certainly not along the lines of what we saw at the beginning of this decade. August was a busy month for FCC field agents, who conducted nearly three dozen enforcement actions against fewer than half as many stations. The state-leader this year so far is Florida – while New York still leads the all-time pack enforcement action-wise – and the FCC’s flexed its muscle in only seven states, compared to 10 in 2015.
Some of the cases are fairly curious, such as a $15,000 Notice of Apparent Liability issued against a Florida man who first started broadcasting without a license way back in 2013. One visit that year, followed by four visits last year (and a change in frequency), finally compelled the FCC to bring the threat of a fiscal penalty to bear.
Then there’s the case of an Alabama man who first hit the FCC’s radar in 2015; after being warned he voluntarily surrendered his transmitter via mail, only to get a new one and move to a new channel. When contacted again by the federales, he expressed the wish that he could be legal but no application windows for LPFMs are in the works, so his “hands were tied.” Not a good enough excuse to avoid a $15,000 NAL…but then again, it remains to be seen whether the FCC will formalize these as actual forfeitures, much less be able to collect on them. Continue reading “Anti-Pirate Activity Rebounds from 2015 Nadir”
As a part of the campaign now underway to bring the (nonexistent) hammer down on unlicensed broadcasting in the New York metropolitan area, licensed broadcasters are alleging a variety of “harms” caused by pirate stations. Many of them are vastly overblown, such as the threat of interference they pose to a variety of communications networks, dangers from uncontrolled radiation — and, in the newest charge, economic hardships they cause to licensed stations.
The contention that pirate radio stations infringe on the radio industry’s right to make mad profits was first floated in an April 2015 blog post by Republican FCC Commissioner Mike O’Rielly; he claimed unlicensed broadcasting “causes unacceptable economic harm to legitimate and licensed American broadcasters by stealing listeners.” Continue reading “Fiscal "Threat" Posed By NY Pirates Belied By Broadcasters' Own Data”
Tell us something we don’t know: they are pervasive and may outnumber licensed broadcasters in the number one radio market in America.
That’s the most notable takeaway from a 103-page report (also embedded at the end of this post) prepared for the New York State Broadcasters’ Association by Maryland-based consulting engineers Meintel, Sgrignoli, & Wallace, who camped out at four locales in the NYC metropolitan area — two in NYC proper and two in New Jersey — earlier this year with a cleverly-camouflaged monitoring van (at right) and basically did FM bandscans.
They picked up 76 pirates on the dial…though they estimate that “there may be more than 100 unauthorized stations” on the air in total. According to the report, this is not the first pirate-survey MS&W has been commissioned for — similar bandscans were conducted in 2012, 2014 and 2015. Compared to last year’s findings, the number of unlicensed broadcasters in Brooklyn alone has increased some 58%, though there’s no way to compare figures since the earlier reports have not been made publicly available. Continue reading “NY Broadcasters Try Quantifying Pirates”
FCC Commissioner Mike O’Rielly, the pinch-headed ideologue who’s tried to make a name for himself by attempting to launch a war on unlicensed broadcasting in America, actually went out into the mean streets of New York City earlier this summer along with field agents to hunt pirate stations.
Speaking to a very receptive audience at the annual conference of the New Jersey Broadcasters’ Association last month, O’Rielly called unlicensed broadcasting “a key area needing significant attention. . .as it represents a very real problem that is growing.”
Claiming that pirate stations “have no legal or moral right to operate,” O’Rielly asserted (again, without evidence) that pirate radio stations are “stealing listeners” from licensed broadcasters, “weakening [their] financial situation and undermining the health of licensed radio stations” supposedly devoted to serving their communities of license. The threat of interference from unlicensed stations also got a shout-out, but that’s apparently become a secondary issue to O’Rielly’s perferred agency mandate to maximize the profits of the radio industry. Continue reading “O'Rielly Goes Pirate-Hunting, is Flabbergasted by Tower”
Our mid-year update to the Enforcment Action Database shows absolutely no change in the FCC’s enforcement protocol regarding unlicensed broadcasting. Although the agency is running ahead of its enforcement action pace last year (70 to date, compared to 125 for all of 2015), it’s well off the highs seen late last decade. Fewer than three dozen unlicensed radio stations in just six states have had some form of contact with the FCC in 2016.
So far, Florida is the hottest spot for FCC activity with 25 actions to date; New Jersey and New York respectively round out the top three. That’s a surprising drop for the Empire State, which has not only topped the list for the last four years but whose Congressfolk and licensed broadcast constituency (along with their colleagues in New Jersey) have been clamoring for more anti-pirate policing.
Some of this political pressure may have been a factor in three monetary forfeitures issued to New Jersey pirates last month. Industry trades made great hay out of the $40,000 in total penalties — but all of these stem from cases that originated last year. That said, the FCC handed out just a single forfeiture in 2015, but perennial collection difficulties remain. Continue reading “Paper Tiger Teams MIA…So Far”
All five FCC Commissioners spent more than three hours on Capitol Hill last week being questioned by the House Energy and Commerce Committee during an “oversight hearing,” which is a fancy way of saying “let members of Congress score political points by grandstanding on the FCC-related issues they care about the most.” While the hearing itself was mostly dominated by subjects such as the agency’s upcoming spectrum auctions and proposals to detach set-top TV boxes from the grip of cable service providers, two Congressfolk raised the issue of pirate radio with the Commissioners.
First was Rep. Frank Pallone (D-NJ), who’s been a very vocal supporter of increased enforcement efforts against pirate stations in the New York City metropolitan area. He announced that he plans to draft legislation to asssist in these efforts and lobbed Commissioner Michael O’Rielly a softball question on the state of pirate radio enforcement: in effect, “what should this bill include?”
O’Rielly said that “getting at the money part” of pirate radio was paramount. Many entities advertise on pirate stations; he mentioned concert and club promoters and political campaigns (?) in particular. However, O’Rielly also noted that he did not want such legislation to penalize those who may “inadvertently” assist unlicensed broadcast operations, such as landlords who may not know they’re renting space to a pirate station. Continue reading “Congress to Target Pirate Advertisers (and Others?)”
Speaking at the Country Radio Seminar last week, FCC Commissioner Mike O’Rielly laid out several items he’d like to make part of radio’s regulatory agenda this year. And true to form, the man who’s made pirate radio a personal crusade has big plans to try and wipe out what he calls “poison ivy in the garden of the radio spectrum.”
O’Rielly acknowledged that the largest concentrations of unlicensed broadcasters are in America’s cities, such as New York, Boston, and Miami, but claims that “the problem is expanding rapidly,” and it represents “an attack on the integrity of our airwaves – an attack that must be confronted and defeated on no uncertain terms, lest it continue to push forward.” Continue reading “O'Rielly Outlines Anti-Pirate Agenda for 2016”