Amendment of the Commission's Rules Regarding Duplication of Programming on Commonly Owned Radio Stations, Modernization of Media Initiative, 70485-70489 [2019-27645]
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Docket No. 18–155. This document is
being published pursuant to 47 CFR
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1.429(f), (g).
Number of Petitions Filed: 1.
Federal Communications Commission.
Marlene Dortch,
Secretary,
[FR Doc. 2019–27608 Filed 12–20–19; 8:45 am]
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47 CFR Part 73
[MB Docket Nos. 19–310 and 17–105; FCC
19–122]
Amendment of the Commission’s
Rules Regarding Duplication of
Programming on Commonly Owned
Radio Stations, Modernization of Media
Initiative
Federal Communications
Commission.
ACTION: Proposed rule.
AGENCY:
This document seeks
comment on whether the Commission
should modify or eliminate its rule (the
radio duplication rule) that bars sameservice (AM or FM) commercial radio
stations from duplicating more than
25% of their total hours of programming
in an average broadcast week if the
stations have 50% or more contour
overlap and are commonly owned or
subject to a time brokerage agreement.
DATES:
Comments Due: January 22, 2020.
Replies Due: February 6, 2020.
ADDRESSES: Interested parties may
submit comments and replies, identified
by MB Docket Nos. 19–310 and 17–105,
by any of the following methods:
• Federal Communications
Commission Website: https://
apps.fcc.gov/ecfs/. Follow the
instructions for submitting comments.
• Mail: Filings can be sent by hand or
messenger delivery, by commercial
overnight courier, or by first-class or
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overnight U.S. Postal Service mail. All
filings must be addressed to the
Commission’s Secretary, Office of the
Secretary, Federal Communications
Commission.
• People with Disabilities: Contact the
FCC to request reasonable
accommodations (accessible format
documents, sign language interpreters,
CART, etc.) by email: FCC504@fcc.gov
or phone: 202–418–0530 or TTY: 202–
418–0432.
For more detailed filing instructions
for submitting comments and additional
information on the rulemaking process,
see the SUPPLEMENTARY INFORMATION
section of this document.
FOR FURTHER INFORMATION CONTACT: Julie
Saulnier, Industry Analysis Division,
Media Bureau, Julie.Saulnier@fcc.gov,
(202) 418–1598.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Notice of
Proposed Rulemaking (NPRM) in MB
Docket Nos. 19–310 and 17–105, FCC
19–122, that was adopted November 22,
2019 and released November 25, 2019.
The full text of this document is
available for public inspection during
regular business hours in the FCC
Reference Center, 445 12th Street SW,
Room CY–A257, Washington, DC 20554,
or online at https://docs.fcc.gov/public/
attachments/FCC–18–179A1.pdf.
Documents will be available
electronically in ASCII, Microsoft Word,
and/or Adobe Acrobat. Alternative
formats are available for people with
disabilities (Braille, large print,
electronic files, audio format, etc.) and
reasonable accommodations (accessible
format documents, sign language
interpreters, CART, etc.) may be
requested by sending an email to
fcc504@fcc.gov or calling the FCC’s
Consumer and Governmental Affairs
Bureau at (202) 418–0530 (voice), (202)
418–0432 (TTY).
Synopsis
1. Background. In 1964, the
Commission first limited radio
programming duplication by commonly
owned stations in the same local area by
prohibiting FM stations in cities with
populations over 100,000 from
duplicating the programming of a coowned AM station in the same local
area for more than 50% of the FM
station’s broadcast day. Even though the
Commission did not consider
programming duplication an efficient
use of FM spectrum, it was willing to
allow limited duplication ‘‘as a
temporary expedient to help establish
the [then-new] FM service.’’ To
minimize the rule’s economic impact on
radio broadcasters, the Commission
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allowed for waivers upon a substantial
showing that programming duplication
would be in the public interest, and
provided that compliance would be
monitored through the license renewal
process. In 1976, the Commission
concluded that ‘‘the virtually complete
absence of available channels as well as
the strengthened economic position of
FM’’ warranted tightening the
restriction to limit FM stations to
duplicating only 25% of the average
program week of a co-owned AM station
in the same local area if either the AM
or FM station operated in a community
of over 25,000 population. The
Commission found that fewer available
channels in communities of substantial
size could inhibit programming
diversity and that programming
duplication was a wastefully inefficient
use of spectrum. In 1986 the
Commission eliminated the crossservice radio duplication rule entirely,
finding that FM service had developed,
and FM stations were fully competitive.
The Commission further found that the
rule was no longer necessary to promote
spectrum efficiency because market
forces would lead stations to provide
separate programming where
economically feasible, and, where
separate programming was not
economically feasible, duplication was
preferable to a station curtailing
programming or going off air entirely to
comply with the rule.
2. In 1992, as part of a broad review
of radio ownership rules, the
Commission adopted a new
programming duplication rule barring
same-service (AM or FM) commercial
radio stations from duplicating more
than 25% of the total hours of an
average broadcast week of programming
if the stations have 50% or more
contour overlap and are commonly
owned or subject to a time brokerage
agreement. Principal community
contours are defined as ‘‘predicted or
measured 5 mV/m groundwave for AM
stations and predicted 3.16 mV/m for
FM stations.’’ 47 CFR 73.3556. A time
brokerage agreement generally involves
the sale by one radio licensee of blocks
of time to a broker who then supplies
programming to fill that time and sells
advertising to support it.
3. The Commission saw no public
benefit in allowing substantial
programming duplication, observing
that, ‘‘when a channel is licensed to a
particular community, others are
prevented from using that channel and
six adjacent channels at varying
distances of up to hundreds of
kilometers. The limited amount of
available spectrum could be used more
efficiently by other parties to serve
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competition and diversity goals.’’ The
Commission concluded, however, that
limited programming duplication had
benefits, stating ‘‘we are persuaded that
limited simulcasting, particularly where
expensive, locally produced
programming such as on-the-spot news
coverage is involved, could
economically benefit stations . . . .’’
4. Discussion. Overall, the
Commission seeks comment on whether
it should modify or eliminate the radio
duplication rule and asks if the rule has
outlived its utility or whether it remains
necessary to further the public interest
goals of competition, programming
diversity and spectrum efficiency for
which it was intended. The broadcast
industry has changed significantly since
the Commission adopted the current
rule in 1992. One change promoting
competition and programming diversity
is the greatly increased number of radio
stations licensed and operating across
the country: Roughly 11,700 commercial
AM and FM and FM translator stations
in 1992, but close to 19,500 such
stations today. There also are many
more non-commercial/educational radio
stations (1,588 in 1992 versus 4,122
today) as well as more than two
thousand low power FM stations, all
adding to diverse programming. Further,
radio broadcasters now expand their
content offerings by using station
websites and mobile applications,
allowing users to listen to a variety of
programming on multiple devices either
for free or with a paid subscription. This
significant growth in the number of
radio broadcasting outlets, combined
with the new and varied formats in
which broadcasters disseminate their
programming, has led to greater radio
broadcasting competition and
programming diversity.
5. Broadcast radio technology also has
improved with the introduction of
digital radio, which enables FM stations
to provide clear sound comparable in
quality to CDs and enables AM stations
to provide sound quality equivalent to
standard analog FM sound quality.
Stations broadcasting in digital also are
able to provide multiple streams of
programming as well as other data such
as information about music airing on the
station, weather updates, traffic reports
and other news.
6. Further, the Commission’s AM
revitalization proceeding has brought
AM programming to the FM band and
enabled greater competition. The
Commission began allowing AM
stations (both commercial and
noncommercial) to use currently
authorized FM translator stations to
retransmit their AM service within their
AM stations’ coverage areas in 2009. In
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2016, the Commission opened two
exclusive windows for AM stations to
apply to relocate FM translator stations,
giving them the ability to expand
service by broadcasting at night when
their signals may be substantially
reduced. In response, the Commission
granted more than 1,000 such
applications. The Commission opened
two additional spectrum windows in
2018 and 2019 and awarded licenses for
more than 1,700 new FM translator
stations to AM stations not participating
in the earlier windows. These efforts
have helped AM stations to increase
their audiences, and potentially their
advertising revenues, in an effort to
better compete against stronger rivals.
7. Collectively, how do these changes
affect the need for the radio duplication
rule? Is the rule still needed to promote
radio broadcast competition or
programming diversity? Is the
Commission’s assessment of the
increased competition and programming
diversity within the radio broadcast
industry correct? Are there advantages
to competition and programming
diversity from giving radio broadcasters
additional programming freedom? Or,
alternatively, is the radio duplication
rule needed to ensure continued
competition and diversity, and if so,
could elimination or modification of
this rule potentially harm programming
diversity? Do other sources of audio
programming, such as satellite radio or
digital streaming audio services, impact
the analysis of the need for the radio
duplication rule, and if so, how? Has
there been consolidation in any aspect
of the media marketplace, and if so, how
does it impact the Commission’s
analysis? Should the Commission also
consider the impact of non-audio
sources of information and
entertainment, such as video providers,
newspapers, and social media outlets,
and if so, how? We seek comment on
whether elimination of the radio
duplication rule would affect any other
public interest goals articulated by the
Commission; for example, the public
interest goals of broadcast localism,
competition and diversity. We also seek
comment on whether elimination or
modification of this rule would impact
local news gathering and journalism,
and how elimination or modification
could impact consumers who rely on
local news for information about their
community. Would the elimination or
modification of this rule have any
special impact on current or prospective
station owners who are women or
people of color and their ability to
compete? Commenters should support
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any assertions on these points with
relevant data and analyses.
8. The Commission also seeks
comment on whether the radio
duplication rule remains necessary to
promote spectrum efficiency. Due in
part to the increased number of stations,
radio broadcast spectrum is now fully
utilized. Demand for spectrum for
wireless data applications has
mushroomed, leading to the first-ever
incentive auction to repurpose
television broadcast spectrum for
wireless broadband and continuous
Commission efforts to free more
spectrum for wireless applications.
Spectrum remains a scarce and valuable
resource, and increased demand for
spectrum now pushes radio
broadcasters, and indeed all spectrum
users, to maximize efficiency. Should
the Commission be concerned that
absent the radio duplication rule, radio
broadcasters will use spectrum less
efficiently? Or are the increased number
of stations and demand for spectrum
today sufficient to ensure that radio
broadcasters use spectrum efficiently
and supply varied programming to the
local market so that the current sameservice duplication rule can be
eliminated or modified? Is there any
evidence to show that radio
broadcasters currently use their
spectrum inefficiently? Would the
limited amount of spectrum available be
used more efficiently by current
licensees broadcasting duplicative
content or other parties to serve
competition and diversity goals?
9. In 1986, the Commission
eliminated the previous cross-service
programming duplication rule, which
had restricted certain FM stations from
rebroadcasting the programming of
commonly owned AM stations in the
same local market. Initially adopted to
encourage the growth of the FM band
and foster competition among local
stations, the Commission eliminated the
rule once it determined that the FM
service was sufficiently established and
FM stations were fully competitive. The
Commission found that the rule was no
longer necessary to promote spectrum
efficiency because market forces would
lead stations to provide separate
programming where economically
feasible, and where it was not
economically feasible, duplication was
preferable to a station curtailing
programming or going off the air
entirely due to failure to comply with
the rule. Do the reasons that caused the
Commission to eliminate the crossservice programming duplication rule
apply equally to our consideration of
the current, same-service duplication
rule (§ 73.3556)? Is competition among
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local broadcast radio stations
sufficiently robust to ensure that
overlapping, commonly owned sameservice stations will provide separate
programming where economically
feasible? And where not economically
feasible, is duplication of programming
preferable to a station ceasing operation
or curtailing programming?
10. In adopting section 73.3556 in
1992, the Commission noted certain
benefits to permitting some level of
programming duplication. Specifically,
the Commission found that some
duplication could save local broadcaster
resources invested in producing
expensive programming. In setting the
limit on programming duplication at
25% of the total hours of a station’s
average weekly programming, the
Commission sought to strike an
appropriate balance between affording
stations the ability to repurpose costly
programming and continuing to foster
competition and programming diversity
in the local market. Do the benefits
previously identified by the
Commission related to the duplication
of programming still exist in today’s
market? Given the changes that have
occurred over the past twenty-seven
years, as discussed above, does
permitting duplication of 25% of the
total hours of a station’s average weekly
programming continue to strike the
appropriate balance? If we were to
retain and modify the rule, should the
amount of programming that can be
duplicated on commonly owned
stations be increased or decreased, and
if so, what would that appropriate
percentage be? Commenters should
substantiate any proposed change in the
amount of permitted programming
duplication and explain the benefits
that they believe would redound to
radio stations and their listeners.
Further, if the Commission were to
modify and retain the radio duplication
rule, would the restriction on
broadcasters’ programming choices raise
any First Amendment concerns?
11. Additionally, in the event the rule
is retained, does the trigger for the rule,
namely, that the overlap between the
stations constitutes more than 50% of
the principal community contour
service area of either station, continue to
be the appropriate standard? Does an
overlap of principal community
contours appropriately identify stations
that should be subject to a programming
duplication rule? Should the overlap
percentage be revised so that the rule
applies if there is some greater, or lesser,
amount of overlap between the
commonly owned stations? And if so,
what should that overlap be?
Commenters should substantiate any
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proposed change in the amount of
overlap before the program duplication
rule would be triggered and explain any
potential benefits or harms. For
example, would any potential
modification of the rule’s trigger have
differential effects on small entities?
What impact could increasing or
decreasing the contour overlap trigger
have on duplicative programming? For
example, could modifying the contour
overlap trigger result in some
communities receiving more duplicative
programming, thereby harming localism
and availability of diverse
programming? Could modifying the rule
so that it is triggered by a larger contour
overlap percentage make valued
programming available to more
listeners?
12. Given the economic and technical
challenges facing AM broadcasters,
should the programming duplication
rule treat the AM service differently
than the FM service? For example,
should the Commission keep the rule
for the FM service but eliminate it for
the AM service? Given reception
challenges in the AM band, particularly
in urban environments, would
eliminating or loosening the AM portion
of the rule allow more listeners to hear
popular programming?
13. Finally, the Commission seeks
comment generally on the benefits and
costs associated with possible
modification or elimination of the radio
duplication rule. Commenters
supporting retention, modification, or
elimination of the rule should explain
the anticipated economic impact of any
proposed action, including the impact
on small entities, and, where possible,
quantify benefits and costs of proposed
actions and alternatives. Does the
current radio duplication rule create
benefits or costs for any segment of
consumers, advertisers, or broadcasters?
If so, how would elimination or
modification of the rule alter the
benefits and costs? If the rule were
eliminated or modified, how could that
impact small entities’ ability to compete
for advertising dollars? What are the
comparative benefits and costs of
modifying the rule rather than
eliminating it entirely?
Procedural Matters
14. Initial Regulatory Flexibility
Analysis. As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA), the Commission has prepared an
Initial Regulatory Flexibility Analysis
(IRFA) relating to this NPRM.
15. Initial Paperwork Reduction Act
Analysis. This document may result in
new or revised information collection
requirements subject to the Paperwork
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Reduction Act of 1995. If the
Commission adopts any new or revised
information collection requirement, the
Commission will publish a notice in the
Federal Register inviting the public to
comment on the requirement, as
required by the Paperwork Reduction
Act. In addition, pursuant to the Small
Business Paperwork Relief Act of 2002,
the Commission seeks specific comment
on how it might ‘‘further reduce the
information collection burden for small
business concerns with fewer than 25
employees.’’
16. Ex Parte Rules—Permit-ButDisclose. The proceeding this NPRM
initiates shall be treated as a ‘‘permitbut-disclose’’ proceeding in accordance
with the Commission’s ex parte rules.
Persons making ex parte presentations
must file a copy of any written
presentation or a memorandum
summarizing any oral presentation
within two business days after the
presentation (unless a different deadline
applicable to the Commission’s premeeting Sunshine period applies).
Persons making oral ex parte
presentations are reminded that
memoranda summarizing the
presentation must (1) list all persons
attending or otherwise participating in
the meeting at which the ex parte
presentation was made, and (2)
summarize all data presented and
arguments made during the
presentation. If the presentation
consisted in whole or in part of the
presentation of data or arguments
already reflected in the presenter’s
written comments, memoranda or other
filings in the proceeding, the presenter
may provide citations to such data or
arguments in prior comments,
memoranda, or other filings (specifying
the relevant page and/or paragraph
numbers where such data or arguments
can be found) in lieu of summarizing
them in the memorandum. Documents
shown or given to Commission staff
during ex parte meetings are deemed to
be written ex parte presentations and
must be filed consistent with § 1.1206(b)
of the Commission’s rules. In
proceedings governed by § 1.49(f) of the
Commission’s rules or for which the
Commission has made available a
method of electronic filing, written ex
parte presentations and memoranda
summarizing oral ex parte
presentations, and all attachments
thereto, must be filed through the
electronic comment filing system
available for that proceeding, and must
be filed in their native format (e.g., .doc,
.xml, .ppt, searchable .pdf). Participants
in this proceeding should familiarize
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themselves with the Commission’s ex
parte rules.
17. Filing Comments and Replies.
Pursuant to §§ 1.415 and 1.419 of the
Commission’s rules, 47 CFR 1.415,
1.419, interested parties may file
comments and reply comments on or
before the dates indicated on the first
page of this document. Comments may
be filed using the Commission’s
Electronic Comment Filing System
(ECFS). See Electronic Filing of
Documents in Rulemaking Proceedings,
63 FR 24121 (1998).
• Electronic Filers: Comments may be
filed electronically using the internet by
accessing the ECFS: https://apps.fcc.gov/
ecfs/.
• Paper Filers: Parties who choose to
file by paper must file an original and
one copy of each filing. If more than one
docket or rulemaking number appears in
the caption of this proceeding, filers
must submit two additional copies for
each additional docket or rulemaking
number.
Filings can be sent by hand or
messenger delivery, by commercial
overnight courier, or by first-class or
overnight U.S. Postal Service mail. All
filings must be addressed to the
Commission’s Secretary, Office of the
Secretary, Federal Communications
Commission.
D All hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary must be
delivered to FCC Headquarters at 445
12th St. SW, Room TW–A325,
Washington, DC 20554. The filing hours
are 8:00 a.m. to 7:00 p.m. All hand
deliveries must be held together with
rubber bands or fasteners. Any
envelopes and boxes must be disposed
of before entering the building.
D Commercial overnight mail (other
than U.S. Postal Service Express Mail
and Priority Mail) must be sent to 9050
Junction Drive, Annapolis Junction, MD
20701.
D U.S. Postal Service first-class,
Express, and Priority mail must be
addressed to 445 12th Street SW,
Washington, DC 20554.
18. People with Disabilities. To
request materials in accessible formats
for people with disabilities (braille,
large print, electronic files, audio
format), send an email to fcc504@fcc.gov
or call the Consumer & Governmental
Affairs Bureau at 202–418–0530 (voice),
202–418–0432 (tty).
19. Availability of Documents.
Comments, reply comments, and ex
parte submissions will be available for
public inspection during regular
business hours in the FCC Reference
Center, Federal Communications
Commission, 445 12th Street SW, CY–
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A257, Washington, DC 20554. These
documents will also be available via
ECFS. Documents will be available
electronically in ASCII, Microsoft Word,
and/or Adobe Acrobat.
20. Additional Information. For
additional information on this
proceeding, contact Julie Saulnier,
julie.saulnier@fcc.gov, of the Industry
Analysis Division, Media Bureau, (202)
418–1598.
Initial Regulatory Flexibility Analysis
21. Need for, and Objective of, the
Proposed Rules. This NPRM seeks
comment on whether the Commission
should eliminate or modify the radio
duplication rule, which limits sameservice programming duplication to
25% of total hours in an average
broadcast week for commercial AM and
FM radio stations with 50% or more
contour overlap that are commonly
owned or subject to a time brokerage
agreement. The radio broadcast industry
has seen significant changes since the
Commission adopted the rule in 1992,
including a greatly increased number of
licensed radio stations, the introduction
of AM broadcasting to the FM band
through FM translator stations,
improved digital radio broadcast
technology, and new, digital methods
for distributing audio content to
multiple devices. Based on these
changes, the NPRM seeks comment on
whether the radio duplication rule has
outlived its utility or whether it remains
necessary to further the public interest
goals of competition, programming
diversity and spectrum efficiency for
which it was intended.
22. Legal Basis. The proposed action
is authorized under sections 14(i), 4(j),
and 303 of the Communications Act of
1934, as amended, 47 U.S.C. 151, 154(i),
154(j), and 303.
23. Description and Estimate of the
Number of Small Entities to Which the
Proposed Rules Will Apply. The RFA
directs agencies to provide a description
of, and where feasible, an estimate of
the number of small entities that may be
affected by the proposed rule revisions,
if adopted. The RFA generally defines
the term ‘‘small entity’’ as having the
same meaning as the terms ‘‘small
business,’’ ‘‘small organization,’’ and
‘‘small governmental jurisdiction.’’ In
addition, the term ‘‘small business’’ has
the same meaning as the term ‘‘small
business concern’’ under the Small
Business Act (SBA). A small business
concern is one which: (1) Is
independently owned and operated; (2)
is not dominant in its field of operation;
and (3) satisfies any additional criteria
established by the SBA. Below, we
provide a description of such small
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entities, as well as an estimate of the
number of such small entities, where
feasible.
24. The radio broadcasting U.S.
Economic Census category ‘‘comprises
establishments primarily engaged in
broadcasting aural programs by radio to
the public.’’ Programming may originate
in the establishment’s own studio, from
an affiliated network, or from external
sources. The SBA has created the
following small business size standard
for such businesses: Those having $38.5
million or less in annual receipts.
Economic Census data for 2012 show
that 2,849 firms in this category
operated in that year. Of that number,
2,806 operated with annual receipts of
less than $25 million per year, 17 with
annual receipts between $25 million
and $49,999,999 million and 26 with
annual receipts of $50 million or more.
Based on this data, we estimate that the
majority of commercial radio broadcast
stations were small under the applicable
SBA size standard.
25. The Commission has estimated
the number of licensed commercial FM
radio stations to be 6,728, the number of
commercial FM translator stations to be
8,177 and the number of commercial
AM stations to be 4601, for a total of
19,505 commercial radio stations. Of
this total, 19,496 stations (or 99.9%) had
revenues of $38.5 million or less in
2018, according to Commission staff
review of the BIA Kelsey Inc. Media
Access Pro Radio Database (BIA) on
October 7, 2019, and therefore these
stations qualify as small entities under
the SBA definition.
26. In assessing whether a business
concern qualifies as small under the
above definition, business (control)
affiliations must be included. Our
estimate, therefore, likely overstates the
number of small entities that might be
affected by our action because the
revenue figure on which it is based does
not include or aggregate revenues from
affiliated companies. In addition, an
element of the definition of ‘‘small
business’’ is that the entity not be
dominant in its field of operation. We
are unable at this time to define or
quantify the criteria that would
establish whether a specific radio
station is dominant in its field of
operation. Accordingly, the estimate of
small businesses to which the proposed
rules may apply does not exclude any
radio station from the definition of
small business on this basis and is
therefore possibly over-inclusive.
27. Description of Projected
Reporting, Recordkeeping and Other
Compliance Requirements. The NPRM
seeks comment on whether to modify or
eliminate the radio duplication rule. If
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the Commission were to eliminate the
rule, it would be expected to reduce
compliance requirements for radio
broadcasters, including small entities. If
the rule were retained but modified to
increase the contour overlap necessary
to trigger the rule or increase the
amount of programming permitted to be
duplicated on the commonly owned
stations, the compliance requirements
would be reduced for radio
broadcasters, as the current restriction
would be made more permissive.
Conversely, were the rule to be modified
so as to decrease the contour overlap
necessary to trigger the rule or to
decrease the amount of programming
permitted to be duplicated, it could
increase the number of radio
broadcasters subject to the rule and/or
potentially increase the compliance
requirements for those broadcasters in
situations that are not subject to the
existing rule.
28. Steps Taken to Minimize
Significant Economic Impact on Small
Entities, and Significant Alternatives
Considered. The RFA requires an
agency to describe any significant
alternatives that it has considered in
reaching its proposed approach, which
may include the following four
alternatives (among others): (1) The
establishment of differing compliance or
reporting requirements or timetables
that take into account the resources
available to small entities; (2) the
clarification, consolidation, or
simplification of compliance or
reporting requirements under the rule
for small entities; (3) the use of
performance, rather than design,
standards; and (4) an exemption from
coverage of the rule, or any part thereof,
for small entities. The NPRM seeks
comment on eliminating the radio
duplication rule, which would relieve
radio broadcasters, including small
entities, from costs of compliance with
the rule. The NPRM also seeks comment
on modifying the rule instead of
repealing it, alternatives that will
minimize any burden on small entities,
and on retention of the existing rule.
29. Federal Rules that May Duplicate,
Overlap, or Conflict with the Proposed
Rule. None.
30. Ordering Clauses. Accordingly, it
is ordered that, pursuant to the
authority found in sections 1, 4(j), and
303(r) of the Communications Act of
1934, as amended, 47 U.S.C. 151, 154(i),
154(j), and 303(r), this Notice of
Proposed Rulemaking is adopted.
31. It is further ordered that, pursuant
to applicable procedures set forth in
§§ 1.415 and 1.419 of the Commission’s
rules, 47 CFR 1.415 and 1.419,
interested parties may file comments on
VerDate Sep<11>2014
17:51 Dec 20, 2019
Jkt 250001
the Notice of Proposed Rulemaking in
MB Docket Nos. 19–310 and 17–105 on
or before thirty (30) days after
publication in the Federal Register and
reply comments on or before forty five
(45) days after publication in the
Federal Register.
32. It is further ordered that the
Commission’s Consumer and
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
this Notice of Proposed Rulemaking,
including the Initial Regulatory
Flexibility Act Analysis, to the Chief
Counsel for Advocacy of the Small
Business Administration.
List of Subjects in 47 CFR Part 73
Television; Radio.
Federal Communications Commission.
Cecilia Sigmund,
Federal Register Liaison Officer.
For the reasons discussed in the
preamble, the Federal Communications
Commission proposes to amend 47 CFR
part 73 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, 155, 301, 303,
307, 309, 310, 334, 336, 339.
§ 73.3556
■
[Removed and Reserved]
2. Remove and reserve § 73.3556.
[FR Doc. 2019–27645 Filed 12–20–19; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Parts 73 and 74
[MB Docket No. 03–185; DA 19–1231]
Low Power Television Digital Rules
Federal Communications
Commission.
ACTION: Proposed rule.
AGENCY:
In this document, the Media
Bureau seeks to update the record in MB
Docket No. 03–185 on the operation of
analog radio services by digital low
power television stations (LPTV) as
ancillary or supplementary services.
DATES:
Comments Due: January 22, 2020.
Reply Comments Due: February 6,
2020.
SUMMARY:
You may submit comments,
identified by MB Docket No. 03–185, by
any of the following methods:
• Electronic Filers: Comments may be
filed electronically using the internet by
ADDRESSES:
PO 00000
Frm 00051
Fmt 4702
Sfmt 4702
70489
accessing the ECFS: https://fjallfoss.fcc
.gov/ecfs2/.
D Paper Filers: Parties who choose to
file by paper must file an original and
one copy of each filing. If more than one
docket or rulemaking number appears in
the caption of this proceeding, filers
must submit two additional copies for
each additional docket or rulemaking
number.
D Filings can be sent by hand or
messenger delivery, by commercial
overnight courier, or by first-class or
overnight U.S. Postal Service mail. All
filings must be addressed to the
Commission’s Secretary, Office of the
Secretary, Federal Communications
Commission.
D All hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary must be
delivered to FCC Headquarters at 445
12th St. SW, Room TW–A325,
Washington, DC 20554. The filing hours
are 8:00 a.m. to 7:00 p.m. All hand
deliveries must be held together with
rubber bands or fasteners. Any
envelopes and boxes must be disposed
of before entering the building.
D Commercial overnight mail (other
than U.S. Postal Service Express Mail
and Priority Mail) must be sent to 9050
Junction Drive, Annapolis Junction, MD
20701.
D U.S. Postal Service first-class,
Express, and Priority mail must be
addressed to 445 12th Street SW,
Washington, DC 20554.
Availability of Documents.
Comments, reply comments, and ex
parte submissions will be available for
public inspection during regular
business hours in the FCC Reference
Center, Federal Communications
Commission, 445 12th Street SW, CY–
A257, Washington, DC 20554. These
documents will also be available via
ECFS. Documents will be available
electronically in ASCII, Microsoft Word,
and/or Adobe Acrobat.
People with Disabilities. To request
materials in accessible formats for
people with disabilities (Braille, large
print, electronic files, audio format),
send an email to fcc504@fcc.gov or call
the FCC’s Consumer & Governmental
Affairs Bureau at (202) 418–0530
(voice), (202) 418–0432 (TTY).
For detailed instructions for
submitting comments and additional
information on the rulemaking process,
see the SUPPLEMENTARY INFORMATION
section of this document.
FOR FURTHER INFORMATION CONTACT:
Shaun Maher, Shaun.Maher@fcc.gov of
the Media Bureau, Video Division, (202)
418–2324.
SUPPLEMENTARY INFORMATION: This is a
summary of the Media Bureau’s Notice
E:\FR\FM\23DEP1.SGM
23DEP1
Agencies
[Federal Register Volume 84, Number 246 (Monday, December 23, 2019)]
[Proposed Rules]
[Pages 70485-70489]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27645]
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 73
[MB Docket Nos. 19-310 and 17-105; FCC 19-122]
Amendment of the Commission's Rules Regarding Duplication of
Programming on Commonly Owned Radio Stations, Modernization of Media
Initiative
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This document seeks comment on whether the Commission should
modify or eliminate its rule (the radio duplication rule) that bars
same-service (AM or FM) commercial radio stations from duplicating more
than 25% of their total hours of programming in an average broadcast
week if the stations have 50% or more contour overlap and are commonly
owned or subject to a time brokerage agreement.
DATES:
Comments Due: January 22, 2020. Replies Due: February 6, 2020.
ADDRESSES: Interested parties may submit comments and replies,
identified by MB Docket Nos. 19-310 and 17-105, by any of the following
methods:
Federal Communications Commission Website: https://apps.fcc.gov/ecfs/. Follow the instructions for submitting comments.
Mail: Filings can be sent by hand or messenger delivery,
by commercial overnight courier, or by first-class or overnight U.S.
Postal Service mail. All filings must be addressed to the Commission's
Secretary, Office of the Secretary, Federal Communications Commission.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by email: [email protected] or phone: 202-418-
0530 or TTY: 202-418-0432.
For more detailed filing instructions for submitting comments and
additional information on the rulemaking process, see the SUPPLEMENTARY
INFORMATION section of this document.
FOR FURTHER INFORMATION CONTACT: Julie Saulnier, Industry Analysis
Division, Media Bureau, [email protected], (202) 418-1598.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice
of Proposed Rulemaking (NPRM) in MB Docket Nos. 19-310 and 17-105, FCC
19-122, that was adopted November 22, 2019 and released November 25,
2019. The full text of this document is available for public inspection
during regular business hours in the FCC Reference Center, 445 12th
Street SW, Room CY-A257, Washington, DC 20554, or online at https://docs.fcc.gov/public/attachments/FCC-18-179A1.pdf. Documents will be
available electronically in ASCII, Microsoft Word, and/or Adobe
Acrobat. Alternative formats are available for people with disabilities
(Braille, large print, electronic files, audio format, etc.) and
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) may be requested by sending an email to
[email protected] or calling the FCC's Consumer and Governmental Affairs
Bureau at (202) 418-0530 (voice), (202) 418-0432 (TTY).
Synopsis
1. Background. In 1964, the Commission first limited radio
programming duplication by commonly owned stations in the same local
area by prohibiting FM stations in cities with populations over 100,000
from duplicating the programming of a co-owned AM station in the same
local area for more than 50% of the FM station's broadcast day. Even
though the Commission did not consider programming duplication an
efficient use of FM spectrum, it was willing to allow limited
duplication ``as a temporary expedient to help establish the [then-new]
FM service.'' To minimize the rule's economic impact on radio
broadcasters, the Commission allowed for waivers upon a substantial
showing that programming duplication would be in the public interest,
and provided that compliance would be monitored through the license
renewal process. In 1976, the Commission concluded that ``the virtually
complete absence of available channels as well as the strengthened
economic position of FM'' warranted tightening the restriction to limit
FM stations to duplicating only 25% of the average program week of a
co-owned AM station in the same local area if either the AM or FM
station operated in a community of over 25,000 population. The
Commission found that fewer available channels in communities of
substantial size could inhibit programming diversity and that
programming duplication was a wastefully inefficient use of spectrum.
In 1986 the Commission eliminated the cross-service radio duplication
rule entirely, finding that FM service had developed, and FM stations
were fully competitive. The Commission further found that the rule was
no longer necessary to promote spectrum efficiency because market
forces would lead stations to provide separate programming where
economically feasible, and, where separate programming was not
economically feasible, duplication was preferable to a station
curtailing programming or going off air entirely to comply with the
rule.
2. In 1992, as part of a broad review of radio ownership rules, the
Commission adopted a new programming duplication rule barring same-
service (AM or FM) commercial radio stations from duplicating more than
25% of the total hours of an average broadcast week of programming if
the stations have 50% or more contour overlap and are commonly owned or
subject to a time brokerage agreement. Principal community contours are
defined as ``predicted or measured 5 mV/m groundwave for AM stations
and predicted 3.16 mV/m for FM stations.'' 47 CFR 73.3556. A time
brokerage agreement generally involves the sale by one radio licensee
of blocks of time to a broker who then supplies programming to fill
that time and sells advertising to support it.
3. The Commission saw no public benefit in allowing substantial
programming duplication, observing that, ``when a channel is licensed
to a particular community, others are prevented from using that channel
and six adjacent channels at varying distances of up to hundreds of
kilometers. The limited amount of available spectrum could be used more
efficiently by other parties to serve
[[Page 70486]]
competition and diversity goals.'' The Commission concluded, however,
that limited programming duplication had benefits, stating ``we are
persuaded that limited simulcasting, particularly where expensive,
locally produced programming such as on-the-spot news coverage is
involved, could economically benefit stations . . . .''
4. Discussion. Overall, the Commission seeks comment on whether it
should modify or eliminate the radio duplication rule and asks if the
rule has outlived its utility or whether it remains necessary to
further the public interest goals of competition, programming diversity
and spectrum efficiency for which it was intended. The broadcast
industry has changed significantly since the Commission adopted the
current rule in 1992. One change promoting competition and programming
diversity is the greatly increased number of radio stations licensed
and operating across the country: Roughly 11,700 commercial AM and FM
and FM translator stations in 1992, but close to 19,500 such stations
today. There also are many more non-commercial/educational radio
stations (1,588 in 1992 versus 4,122 today) as well as more than two
thousand low power FM stations, all adding to diverse programming.
Further, radio broadcasters now expand their content offerings by using
station websites and mobile applications, allowing users to listen to a
variety of programming on multiple devices either for free or with a
paid subscription. This significant growth in the number of radio
broadcasting outlets, combined with the new and varied formats in which
broadcasters disseminate their programming, has led to greater radio
broadcasting competition and programming diversity.
5. Broadcast radio technology also has improved with the
introduction of digital radio, which enables FM stations to provide
clear sound comparable in quality to CDs and enables AM stations to
provide sound quality equivalent to standard analog FM sound quality.
Stations broadcasting in digital also are able to provide multiple
streams of programming as well as other data such as information about
music airing on the station, weather updates, traffic reports and other
news.
6. Further, the Commission's AM revitalization proceeding has
brought AM programming to the FM band and enabled greater competition.
The Commission began allowing AM stations (both commercial and
noncommercial) to use currently authorized FM translator stations to
retransmit their AM service within their AM stations' coverage areas in
2009. In 2016, the Commission opened two exclusive windows for AM
stations to apply to relocate FM translator stations, giving them the
ability to expand service by broadcasting at night when their signals
may be substantially reduced. In response, the Commission granted more
than 1,000 such applications. The Commission opened two additional
spectrum windows in 2018 and 2019 and awarded licenses for more than
1,700 new FM translator stations to AM stations not participating in
the earlier windows. These efforts have helped AM stations to increase
their audiences, and potentially their advertising revenues, in an
effort to better compete against stronger rivals.
7. Collectively, how do these changes affect the need for the radio
duplication rule? Is the rule still needed to promote radio broadcast
competition or programming diversity? Is the Commission's assessment of
the increased competition and programming diversity within the radio
broadcast industry correct? Are there advantages to competition and
programming diversity from giving radio broadcasters additional
programming freedom? Or, alternatively, is the radio duplication rule
needed to ensure continued competition and diversity, and if so, could
elimination or modification of this rule potentially harm programming
diversity? Do other sources of audio programming, such as satellite
radio or digital streaming audio services, impact the analysis of the
need for the radio duplication rule, and if so, how? Has there been
consolidation in any aspect of the media marketplace, and if so, how
does it impact the Commission's analysis? Should the Commission also
consider the impact of non-audio sources of information and
entertainment, such as video providers, newspapers, and social media
outlets, and if so, how? We seek comment on whether elimination of the
radio duplication rule would affect any other public interest goals
articulated by the Commission; for example, the public interest goals
of broadcast localism, competition and diversity. We also seek comment
on whether elimination or modification of this rule would impact local
news gathering and journalism, and how elimination or modification
could impact consumers who rely on local news for information about
their community. Would the elimination or modification of this rule
have any special impact on current or prospective station owners who
are women or people of color and their ability to compete? Commenters
should support any assertions on these points with relevant data and
analyses.
8. The Commission also seeks comment on whether the radio
duplication rule remains necessary to promote spectrum efficiency. Due
in part to the increased number of stations, radio broadcast spectrum
is now fully utilized. Demand for spectrum for wireless data
applications has mushroomed, leading to the first-ever incentive
auction to repurpose television broadcast spectrum for wireless
broadband and continuous Commission efforts to free more spectrum for
wireless applications. Spectrum remains a scarce and valuable resource,
and increased demand for spectrum now pushes radio broadcasters, and
indeed all spectrum users, to maximize efficiency. Should the
Commission be concerned that absent the radio duplication rule, radio
broadcasters will use spectrum less efficiently? Or are the increased
number of stations and demand for spectrum today sufficient to ensure
that radio broadcasters use spectrum efficiently and supply varied
programming to the local market so that the current same-service
duplication rule can be eliminated or modified? Is there any evidence
to show that radio broadcasters currently use their spectrum
inefficiently? Would the limited amount of spectrum available be used
more efficiently by current licensees broadcasting duplicative content
or other parties to serve competition and diversity goals?
9. In 1986, the Commission eliminated the previous cross-service
programming duplication rule, which had restricted certain FM stations
from rebroadcasting the programming of commonly owned AM stations in
the same local market. Initially adopted to encourage the growth of the
FM band and foster competition among local stations, the Commission
eliminated the rule once it determined that the FM service was
sufficiently established and FM stations were fully competitive. The
Commission found that the rule was no longer necessary to promote
spectrum efficiency because market forces would lead stations to
provide separate programming where economically feasible, and where it
was not economically feasible, duplication was preferable to a station
curtailing programming or going off the air entirely due to failure to
comply with the rule. Do the reasons that caused the Commission to
eliminate the cross-service programming duplication rule apply equally
to our consideration of the current, same-service duplication rule
(Sec. 73.3556)? Is competition among
[[Page 70487]]
local broadcast radio stations sufficiently robust to ensure that
overlapping, commonly owned same-service stations will provide separate
programming where economically feasible? And where not economically
feasible, is duplication of programming preferable to a station ceasing
operation or curtailing programming?
10. In adopting section 73.3556 in 1992, the Commission noted
certain benefits to permitting some level of programming duplication.
Specifically, the Commission found that some duplication could save
local broadcaster resources invested in producing expensive
programming. In setting the limit on programming duplication at 25% of
the total hours of a station's average weekly programming, the
Commission sought to strike an appropriate balance between affording
stations the ability to repurpose costly programming and continuing to
foster competition and programming diversity in the local market. Do
the benefits previously identified by the Commission related to the
duplication of programming still exist in today's market? Given the
changes that have occurred over the past twenty-seven years, as
discussed above, does permitting duplication of 25% of the total hours
of a station's average weekly programming continue to strike the
appropriate balance? If we were to retain and modify the rule, should
the amount of programming that can be duplicated on commonly owned
stations be increased or decreased, and if so, what would that
appropriate percentage be? Commenters should substantiate any proposed
change in the amount of permitted programming duplication and explain
the benefits that they believe would redound to radio stations and
their listeners. Further, if the Commission were to modify and retain
the radio duplication rule, would the restriction on broadcasters'
programming choices raise any First Amendment concerns?
11. Additionally, in the event the rule is retained, does the
trigger for the rule, namely, that the overlap between the stations
constitutes more than 50% of the principal community contour service
area of either station, continue to be the appropriate standard? Does
an overlap of principal community contours appropriately identify
stations that should be subject to a programming duplication rule?
Should the overlap percentage be revised so that the rule applies if
there is some greater, or lesser, amount of overlap between the
commonly owned stations? And if so, what should that overlap be?
Commenters should substantiate any proposed change in the amount of
overlap before the program duplication rule would be triggered and
explain any potential benefits or harms. For example, would any
potential modification of the rule's trigger have differential effects
on small entities? What impact could increasing or decreasing the
contour overlap trigger have on duplicative programming? For example,
could modifying the contour overlap trigger result in some communities
receiving more duplicative programming, thereby harming localism and
availability of diverse programming? Could modifying the rule so that
it is triggered by a larger contour overlap percentage make valued
programming available to more listeners?
12. Given the economic and technical challenges facing AM
broadcasters, should the programming duplication rule treat the AM
service differently than the FM service? For example, should the
Commission keep the rule for the FM service but eliminate it for the AM
service? Given reception challenges in the AM band, particularly in
urban environments, would eliminating or loosening the AM portion of
the rule allow more listeners to hear popular programming?
13. Finally, the Commission seeks comment generally on the benefits
and costs associated with possible modification or elimination of the
radio duplication rule. Commenters supporting retention, modification,
or elimination of the rule should explain the anticipated economic
impact of any proposed action, including the impact on small entities,
and, where possible, quantify benefits and costs of proposed actions
and alternatives. Does the current radio duplication rule create
benefits or costs for any segment of consumers, advertisers, or
broadcasters? If so, how would elimination or modification of the rule
alter the benefits and costs? If the rule were eliminated or modified,
how could that impact small entities' ability to compete for
advertising dollars? What are the comparative benefits and costs of
modifying the rule rather than eliminating it entirely?
Procedural Matters
14. Initial Regulatory Flexibility Analysis. As required by the
Regulatory Flexibility Act of 1980, as amended (RFA), the Commission
has prepared an Initial Regulatory Flexibility Analysis (IRFA) relating
to this NPRM.
15. Initial Paperwork Reduction Act Analysis. This document may
result in new or revised information collection requirements subject to
the Paperwork Reduction Act of 1995. If the Commission adopts any new
or revised information collection requirement, the Commission will
publish a notice in the Federal Register inviting the public to comment
on the requirement, as required by the Paperwork Reduction Act. In
addition, pursuant to the Small Business Paperwork Relief Act of 2002,
the Commission seeks specific comment on how it might ``further reduce
the information collection burden for small business concerns with
fewer than 25 employees.''
16. Ex Parte Rules--Permit-But-Disclose. The proceeding this NPRM
initiates shall be treated as a ``permit-but-disclose'' proceeding in
accordance with the Commission's ex parte rules. Persons making ex
parte presentations must file a copy of any written presentation or a
memorandum summarizing any oral presentation within two business days
after the presentation (unless a different deadline applicable to the
Commission's pre-meeting Sunshine period applies). Persons making oral
ex parte presentations are reminded that memoranda summarizing the
presentation must (1) list all persons attending or otherwise
participating in the meeting at which the ex parte presentation was
made, and (2) summarize all data presented and arguments made during
the presentation. If the presentation consisted in whole or in part of
the presentation of data or arguments already reflected in the
presenter's written comments, memoranda or other filings in the
proceeding, the presenter may provide citations to such data or
arguments in prior comments, memoranda, or other filings (specifying
the relevant page and/or paragraph numbers where such data or arguments
can be found) in lieu of summarizing them in the memorandum. Documents
shown or given to Commission staff during ex parte meetings are deemed
to be written ex parte presentations and must be filed consistent with
Sec. 1.1206(b) of the Commission's rules. In proceedings governed by
Sec. 1.49(f) of the Commission's rules or for which the Commission has
made available a method of electronic filing, written ex parte
presentations and memoranda summarizing oral ex parte presentations,
and all attachments thereto, must be filed through the electronic
comment filing system available for that proceeding, and must be filed
in their native format (e.g., .doc, .xml, .ppt, searchable .pdf).
Participants in this proceeding should familiarize
[[Page 70488]]
themselves with the Commission's ex parte rules.
17. Filing Comments and Replies. Pursuant to Sec. Sec. 1.415 and
1.419 of the Commission's rules, 47 CFR 1.415, 1.419, interested
parties may file comments and reply comments on or before the dates
indicated on the first page of this document. Comments may be filed
using the Commission's Electronic Comment Filing System (ECFS). See
Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121
(1998).
Electronic Filers: Comments may be filed electronically
using the internet by accessing the ECFS: https://apps.fcc.gov/ecfs/.
Paper Filers: Parties who choose to file by paper must
file an original and one copy of each filing. If more than one docket
or rulemaking number appears in the caption of this proceeding, filers
must submit two additional copies for each additional docket or
rulemaking number.
Filings can be sent by hand or messenger delivery, by commercial
overnight courier, or by first-class or overnight U.S. Postal Service
mail. All filings must be addressed to the Commission's Secretary,
Office of the Secretary, Federal Communications Commission.
[ssquf] All hand-delivered or messenger-delivered paper filings for
the Commission's Secretary must be delivered to FCC Headquarters at 445
12th St. SW, Room TW-A325, Washington, DC 20554. The filing hours are
8:00 a.m. to 7:00 p.m. All hand deliveries must be held together with
rubber bands or fasteners. Any envelopes and boxes must be disposed of
before entering the building.
[ssquf] Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9050 Junction Drive,
Annapolis Junction, MD 20701.
[ssquf] U.S. Postal Service first-class, Express, and Priority mail
must be addressed to 445 12th Street SW, Washington, DC 20554.
18. People with Disabilities. To request materials in accessible
formats for people with disabilities (braille, large print, electronic
files, audio format), send an email to [email protected] or call the
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).
19. Availability of Documents. Comments, reply comments, and ex
parte submissions will be available for public inspection during
regular business hours in the FCC Reference Center, Federal
Communications Commission, 445 12th Street SW, CY-A257, Washington, DC
20554. These documents will also be available via ECFS. Documents will
be available electronically in ASCII, Microsoft Word, and/or Adobe
Acrobat.
20. Additional Information. For additional information on this
proceeding, contact Julie Saulnier, [email protected], of the
Industry Analysis Division, Media Bureau, (202) 418-1598.
Initial Regulatory Flexibility Analysis
21. Need for, and Objective of, the Proposed Rules. This NPRM seeks
comment on whether the Commission should eliminate or modify the radio
duplication rule, which limits same-service programming duplication to
25% of total hours in an average broadcast week for commercial AM and
FM radio stations with 50% or more contour overlap that are commonly
owned or subject to a time brokerage agreement. The radio broadcast
industry has seen significant changes since the Commission adopted the
rule in 1992, including a greatly increased number of licensed radio
stations, the introduction of AM broadcasting to the FM band through FM
translator stations, improved digital radio broadcast technology, and
new, digital methods for distributing audio content to multiple
devices. Based on these changes, the NPRM seeks comment on whether the
radio duplication rule has outlived its utility or whether it remains
necessary to further the public interest goals of competition,
programming diversity and spectrum efficiency for which it was
intended.
22. Legal Basis. The proposed action is authorized under sections
14(i), 4(j), and 303 of the Communications Act of 1934, as amended, 47
U.S.C. 151, 154(i), 154(j), and 303.
23. Description and Estimate of the Number of Small Entities to
Which the Proposed Rules Will Apply. The RFA directs agencies to
provide a description of, and where feasible, an estimate of the number
of small entities that may be affected by the proposed rule revisions,
if adopted. The RFA generally defines the term ``small entity'' as
having the same meaning as the terms ``small business,'' ``small
organization,'' and ``small governmental jurisdiction.'' In addition,
the term ``small business'' has the same meaning as the term ``small
business concern'' under the Small Business Act (SBA). A small business
concern is one which: (1) Is independently owned and operated; (2) is
not dominant in its field of operation; and (3) satisfies any
additional criteria established by the SBA. Below, we provide a
description of such small entities, as well as an estimate of the
number of such small entities, where feasible.
24. The radio broadcasting U.S. Economic Census category
``comprises establishments primarily engaged in broadcasting aural
programs by radio to the public.'' Programming may originate in the
establishment's own studio, from an affiliated network, or from
external sources. The SBA has created the following small business size
standard for such businesses: Those having $38.5 million or less in
annual receipts. Economic Census data for 2012 show that 2,849 firms in
this category operated in that year. Of that number, 2,806 operated
with annual receipts of less than $25 million per year, 17 with annual
receipts between $25 million and $49,999,999 million and 26 with annual
receipts of $50 million or more. Based on this data, we estimate that
the majority of commercial radio broadcast stations were small under
the applicable SBA size standard.
25. The Commission has estimated the number of licensed commercial
FM radio stations to be 6,728, the number of commercial FM translator
stations to be 8,177 and the number of commercial AM stations to be
4601, for a total of 19,505 commercial radio stations. Of this total,
19,496 stations (or 99.9%) had revenues of $38.5 million or less in
2018, according to Commission staff review of the BIA Kelsey Inc. Media
Access Pro Radio Database (BIA) on October 7, 2019, and therefore these
stations qualify as small entities under the SBA definition.
26. In assessing whether a business concern qualifies as small
under the above definition, business (control) affiliations must be
included. Our estimate, therefore, likely overstates the number of
small entities that might be affected by our action because the revenue
figure on which it is based does not include or aggregate revenues from
affiliated companies. In addition, an element of the definition of
``small business'' is that the entity not be dominant in its field of
operation. We are unable at this time to define or quantify the
criteria that would establish whether a specific radio station is
dominant in its field of operation. Accordingly, the estimate of small
businesses to which the proposed rules may apply does not exclude any
radio station from the definition of small business on this basis and
is therefore possibly over-inclusive.
27. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements. The NPRM seeks comment on whether to modify or
eliminate the radio duplication rule. If
[[Page 70489]]
the Commission were to eliminate the rule, it would be expected to
reduce compliance requirements for radio broadcasters, including small
entities. If the rule were retained but modified to increase the
contour overlap necessary to trigger the rule or increase the amount of
programming permitted to be duplicated on the commonly owned stations,
the compliance requirements would be reduced for radio broadcasters, as
the current restriction would be made more permissive. Conversely, were
the rule to be modified so as to decrease the contour overlap necessary
to trigger the rule or to decrease the amount of programming permitted
to be duplicated, it could increase the number of radio broadcasters
subject to the rule and/or potentially increase the compliance
requirements for those broadcasters in situations that are not subject
to the existing rule.
28. Steps Taken to Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered. The RFA requires an
agency to describe any significant alternatives that it has considered
in reaching its proposed approach, which may include the following four
alternatives (among others): (1) The establishment of differing
compliance or reporting requirements or timetables that take into
account the resources available to small entities; (2) the
clarification, consolidation, or simplification of compliance or
reporting requirements under the rule for small entities; (3) the use
of performance, rather than design, standards; and (4) an exemption
from coverage of the rule, or any part thereof, for small entities. The
NPRM seeks comment on eliminating the radio duplication rule, which
would relieve radio broadcasters, including small entities, from costs
of compliance with the rule. The NPRM also seeks comment on modifying
the rule instead of repealing it, alternatives that will minimize any
burden on small entities, and on retention of the existing rule.
29. Federal Rules that May Duplicate, Overlap, or Conflict with the
Proposed Rule. None.
30. Ordering Clauses. Accordingly, it is ordered that, pursuant to
the authority found in sections 1, 4(j), and 303(r) of the
Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 154(j),
and 303(r), this Notice of Proposed Rulemaking is adopted.
31. It is further ordered that, pursuant to applicable procedures
set forth in Sec. Sec. 1.415 and 1.419 of the Commission's rules, 47
CFR 1.415 and 1.419, interested parties may file comments on the Notice
of Proposed Rulemaking in MB Docket Nos. 19-310 and 17-105 on or before
thirty (30) days after publication in the Federal Register and reply
comments on or before forty five (45) days after publication in the
Federal Register.
32. It is further ordered that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of this Notice of Proposed Rulemaking, including the Initial
Regulatory Flexibility Act Analysis, to the Chief Counsel for Advocacy
of the Small Business Administration.
List of Subjects in 47 CFR Part 73
Television; Radio.
Federal Communications Commission.
Cecilia Sigmund,
Federal Register Liaison Officer.
For the reasons discussed in the preamble, the Federal
Communications Commission proposes to amend 47 CFR part 73 as follows:
PART 73--RADIO BROADCAST SERVICES
0
1. The Authority citation for Part 73 continues to read as follows:
Authority: 47 U.S.C. 154, 155, 301, 303, 307, 309, 310, 334,
336, 339.
Sec. 73.3556 [Removed and Reserved]
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2. Remove and reserve Sec. 73.3556.
[FR Doc. 2019-27645 Filed 12-20-19; 8:45 am]
BILLING CODE 6712-01-P