The FCC proposal to restrict interference complaints about translators from full-power FM stations to a 54 dBu contour will vastly reduce full-power stations’ listenership and cause losses of service, said most replies in docket 18-119 Thursday. “There are a substantial number of documented listeners who would be jettisoned from protection against FM translator interference,” said Beasley Media, Cox, Entercom, Gradick Communications, iHeartCommunications, Neuhoff Communications, Withers Broadcasting and Radio One. They offered a compromise of extending the cutoff to 42 dBu, and that wouldn’t be a hard barrier but instead require interference complaints based on a higher threshold of evidence. The contour proposal was the primary focus of most commenters, though not all radio licensees opposed it. Aztec Capital Partners, the company behind one of the petitions that inspired the proceeding, compared opponents of the proposal to “cattle barons” claiming dominion over the entire open range. Opponents ask for “governmental protection to service areas they are not entitled to, with FCC regulatory processes preserving their grazing rights against newcomers and other users of spectrum,” Aztec said. Bloomberg Communications said the FCC plan would create certainty for investments in translators. Numerous commenters -- such as the New Jersey Broadcasters Association -- argued that the proposal threatens the primary status of full-power FM stations, and would clutter the band. “The situation is a classic example of trying to fit 2 pounds of product in a one pound bag,” said Press Communications. NAB didn’t weigh in on the contours but took issue with FCC proposals that would limit listener participation in the complaint process: “Allowing a translator licensee to try to correct interference problems is often a cost-effective way to eliminate complaints quickly and efficiently.” Low-power FM groups opposed the FCC’s proposal to set a six complaint minimum for interference complaints. Such a high number favors larger broadcasters, said REC Networks.
A dangling national ownership cap proceeding and a flurry of TV dealmaking mean there’s an expectation the FCC will act to change the 39 percent audience reach cap, officials said. But broadcasters, industry analysts and attorneys aren’t sure when the commission will do so. The agency was seen as on the brink of issuing a cap order in July, and though that didn’t happen, broadcasters have considered an order possible ever since. Some think the midterm elections could affect timing, and others said the jockeying to buy Tribune could lead the agency to act. Commissioners' Sept. 26 tentative agenda Wednesday (see 1809050029 and 1809050056) doesn’t include action on the cap. Attorneys said a vote on such a contentious issue outside a meeting is unlikely.
Tribune helped plan divestitures it now calls "shams" and violated the terms of its agreement with Sinclair by backing away from the deal in the face of the FCC hearing designation order, the spurned buyer said Wednesday in a response filing and counterclaim to the takeover target's breach of contract lawsuit in Delaware Chancery Court (see 1808150056). FCC objections to the deal “came out of nowhere” and were “abrupt and surprising,” Sinclair said: “At no point during these discussions did the FCC ask for any changes or more information” regarding the divestitures it later called out as deceptive or regarding “the consideration the Parties would receive in the transaction.”
Gray Television’s buy of Raycom is widely expected to be approved by the FCC, industry officials told us, though recent DOJ actions make it harder to predict that agency’s reaction. Gray/Raycom is the leading edge of what could be a wave of dealmaking among TV groups, partially spurred by the demise of Sinclair/Tribune (see 1807230055), said Patrick Communications media broker Gregory Guy. The collapse of a combination that would have been vastly larger than any other broadcaster has “pumped a bunch of air into the industry,” Guy said. TV broadcasting is no longer a “two-horse race,” he said.
The FCC Office of the Inspector General found “no evidence or suggestion of impropriety, unscrupulous behavior, or favoritism” in FCC actions toward Sinclair, said a statement issued Monday by Chairman Ajit Pai that was later confirmed by the original document. An investigation of Pai’s relationship to Sinclair was requested last fall by Democratic lawmakers (see 1802150031) and critics of Sinclair’s buy of Tribune -- including Commissioner Jessica Rosenworcel. Opponents of the Sinclair/Tribune have said the Pai FCC’s moves on ownership deregulation appeared to give Sinclair special treatment, before he advanced the hearing designation order (HDO) that killed the deal.
The FCC, Federal Emergency Management Agency, and Hawaii broadcasters and carriers were gearing up Thursday for landfall of Category 4 Hurricane Lane, we found. Though the storm isn’t expected to cause the same level of damage as Maria and Irma did last year to the U.S. Virgin Islands and Puerto Rico, broadcasters and emergency alert officials are making extensive preparations, said Hawaii Association of Broadcasters President Chris Leonard in an interview. “We don’t take any of these things lightly.” Lane "will bring life threatening conditions across Hawaii through Saturday with damaging winds, dangerous surf, coastal storm surge and INTENSE FLOODING RAINS,” tweeted the National Weather Service.
A draft NPRM on Class A AM station interference rules circulated by FCC Chairman Ajit Pai last week focuses on protections that prevent local Class B, C and D radio stations from interfering with the distant signals of more powerful Class A stations, FCC officials told us.
Tribune’s $1 billion breach of contract lawsuit against Sinclair (see 1808090042) is expected to end with a settlement, and Sinclair would seek to conclude it relatively quickly, said analysts, attorneys and academics in interviews. Since Sinclair/Tribune deal was valued at $3.9 billion, Tribune’s seeking more than a quarter of the value as damages is likely “posturing,” leading to a much smaller payout, said George Mason University School of Business assistant finance professor Derek Horstmeyer.
More than 100 small radio broadcasters want the FCC to create a new C4 class of full-power FM stations, which NAB and some larger groups oppose. C4 will "increase congestion on the already crowded FM band and escalate the risk of interference to other FM services, especially FM translators,” NAB commented in docket 18-184 in response to a notice of inquiry. “There is no chance of increased interference as a result of the proposal,” said SSR Communications, the petitioner behind the C4 proposal. The plan would consume only “previously-unused, available bandwidth,” SSR said.
Tribune filed a $1 billion breach of contract complaint against Sinclair Broadcast in the wee hours of Thursday morning, and the collapse of their deal could mean the end of the FCC’s administrative law judge proceeding against Sinclair but likely won’t put to rest all the consequences of the agency’s hearing designation order, attorneys and broadcasters said in Thursday interviews.