FM Translator Abuse Creates Ownership Loophole

Nearly a year ago it came to light that radio broadcasters were using FM translator stations as a sort of “back door” to provide more exposure for their HD Radio signals.
Ironically, these translators do not broadcast in digital; rather, many HD-capable radio stations are rebroadcasting their digital-only (“multicast”) programming via analog translator as a way to recoup their investment in a technology which has no meaningful audience.
Some radio conglomerates have purchased or signed lease agreements with FM translator owners to create ostensibly “new” stations in markets around the country in this manner. The practice has caused difficulty for independent broadcasters. Continue reading “FM Translator Abuse Creates Ownership Loophole”

Hardening the Oligopoly in Wireless Broadband

Art Brodsky of Public Knowledge has some incredibly insightful analysis on the proposed purchase of T-Mobile by of AT&T.
The $39 billion deal would effectively reduce the number of national wireless broadband service providers to three (AT&T, Verizon, and Sprint – and as a Sprint customer, why do I have a feeling this development will f*ck me, too?).
Brodsky’s piece catalogs the immense amount of backstage preparation AT&T accomplished to sow the seeds of government approval for the buyout. However, he also touches on one implication of this deal that deserves more attention: it’s “the one issue that never seems to go away – Net Neutrality.” Continue reading “Hardening the Oligopoly in Wireless Broadband”

Striking Back At The Empire?

From the inestimable Jerry Del Colliano: a former employee of Cumulus Media is pursuing a class-action lawsuit against the company (common share stock price as of today: $2.55) alleging several violations of employment law. The suit is in the very preliminary stages now, but if any of Jerry’s other informants inside Cumulus (and other large radio conglomerates) can back up their “believe it or not” horror-stories, the company – and perhaps the entire industry – is in for some serious trouble.
A quick history recap: after the passage of the Telecommunications Act of 1996, the radio industry went on a station-buying binge. This led to massively inflated prices for stations across the nation. Flush with cash from investment banks, radio companies bought other radio companies, leading to a situation where less ten major broadcast conglomerates controlled some two-thirds of the industry’s total revenue. Continue reading “Striking Back At The Empire?”

Comcastic Adventures: Coming to Everyone?

It’s difficult, even for me, to wrap my head around the scale and scope of the merger-in-progress between Comcast and NBC/Universal. I’ll leave it to Harold Feld, who comprehensively (and in eminently-readable fashion) analyzes the implications of this deal.
Quoth Feld, “In ideological terms, it is rather like Vatican City joining the Arab League.” Distinctively, it’s the first merger where historical enemies in the Big Media marketplace are now combining. The implications are massive; Comcast’s promises of the merger’s benefits clearly ring hollow. Continue reading “Comcastic Adventures: Coming to Everyone?”

Microradio: As Pawn and Pain In the Ass

It’s hard to imagine that the FCC in 2007 would end the year with such a thud, but it has. With the promulgation of a rule effectively repealing the ban on newspaper/broadcast station cross-ownership – drafted in the dead of night, formally introduced in a newspaper op-ed, modified without consensus, and approved along partisan lines, with outright disdain for the 99.99% margin of public disapproval of both the practice and policy – Kevin Martin’s FCC has firmly put itself in the political cross-hairs.
A lawsuit to challenge the ruling is in the works, and members of Congress are yelping as their constituents call all pissed off (and rightly so); they’re pondering taking actions ranging from a “resolution of disapproval” of the FCC’s cross-ownership action, to a bill formally repealing the FCC’s decision, to a campaign to scrutinize and overhaul the FCC itself next year. The latter option would definitely be the most interesting to observe – anytime an agency goes into the legislative woodshed for restructuring, it’s going to disrupt business as usual. Regardless, this issue is far from finished, and still has the potential to undertake several dangerous iterations. Continue reading “Microradio: As Pawn and Pain In the Ass”

The FCC's Three Ring Circus

That’s what I get for taking a month-long hiatus: the FCC goes all P.T. Barnum on our ass, in hopes of making suckers of us all.
In the center ring is the agency’s proposed changes to media ownership regulations. After hinting that he wished to ram through major changes allowing broad consolidation by the end of the year, and hustling to finish public hearings on the subject over the last month, FCC Chairman Kevin Martin – in a highly unusual move – published his own proposal to modify only the regulation that restricts cross-ownership of newspapers and broadcast stations in a single market. Unfortunately, as noted by the minority Commissioners, this proposed change contains loopholes that would effectively do away with the cross-ownership ban, while keeping its regulatory shell on the books. This has irked members of Congress, many of whom are threatening to legislatively intervene if the FCC moves on any media ownership rule changes before the end of the year. Continue reading “The FCC's Three Ring Circus”

Kevin Martin, Unfunnyman

Sometimes politicians couch the truth in humor. This typically happens when they converge for one of their pat-on-the-back dinners, where they’re surrounded by like-minded friends. Events like the White House Correspondents’ Association dinner come to mind.
In the world of communications policymaking, the hubris-fest happens during the annual dinner of the Federal Communications Bar Association – the cadre of specialized lawyers who grease the Federal Communications Commission’s wheels to keep their clients happy. Headlining this year’s dinner was FCC Chairman Kevin Martin, who, by all reports, was quite a crowd-pleaser.
Check some of his jokes, as reported by Broadcasting & Cable: Continue reading “Kevin Martin, Unfunnyman”

Clear Channel Buyout Update

The wheels are well in motion to take Clear Channel private. Shareholders will vote on the deal March 21. They’re being offered $37.60 for each share of stock they own, which is about a dollar and small change more than it’s currently trading for, and near the 52-week high, though just 41% of what CCU stock was worth back in its heyday, 1999.
Clear Channel’s executives are obviously urging all shareholders to approve the buyout (they call it a “merger”), as it represents the best option to “maximize shareholder value” given “extensive review of available strategic alternatives, taking into careful account the continued challenges in the broadcasting sector and…recent growth in the domestic outdoor [advertising] business, as well as future growth opportunities.” Continue reading “Clear Channel Buyout Update”

Translator Licensees Spike, Get Cited

The FCC has released year-end broadcast station totals. Of the 17,968 licensed radio stations in the nation, 4,131 (23%) are translator stations. FM translators may outnumber the number of AM stations by the end of this year; if the NAB’s proposal to give away translators to AM stations gains traction, the number of translators could quintuple.
Interestingly, the year-to-year totals of translators don’t seem to reflect the flood of new translators that have gone on the air since 2003. A recent slew of Notices of Apparent Liability released by the FCC for failure to timely renew station licenses somewhat does. Stations have been threatened with fines ranging between $1,500 and $8,500 for the infraction, with penalties inflated for those stations that technically operated without a license when their present one expired. In every case, the FCC has renewed each station’s license without further question.

The Merger of AT&T and BellSouth: Thanks for (Almost) Nothing

Right before the new year, without the benefit of a public meeting or vote, the FCC approved the corporate marriage of AT&T and BellSouth. With this $85 billion deal, Ma Bell is basically just two mergers away from being fully-reconstructed.
Harold Feld of the Media Access Project has already compiled an excellent summary of reaction to the deal, though his own perspective is much more optimistic than mine. I understand that AT&T’s commitment to the preservation of network neutrality is key concession made for the deal, but their 24-month pledge to the principle is six months shorter than the initial acquiescence it made when the FCC merger negotiation-debate began months earlier. Continue reading “The Merger of AT&T and BellSouth: Thanks for (Almost) Nothing”