This was the original Report and Order that created the LPFM service with two classes of service, LP-100 and LP-10 to operate as a noncommercial educational (NCE) service by entities that do not have any attributable interests in any other broadcast stations and in a manner that protects the existing FM service. Initially, only local applicants would be eligible to participate in the service and once the eligibility criteria is relaxed, local organizations will be given significant selection preference. The LPFM service will provide new voices to be heard and fulfill the FCC's statutory obligation the authorize facilities in a manner that best serves the public interest.
| Document Information | |
|---|---|
| Type | Report and Order |
| Docket Number(s) | MM 99-25 |
| Related RM(s) | RM-9208, RM-9242 |
| FCC Number | 00-19 |
| FCC Record | 15 FCC Rcd 2205 |
| Relevant Dates | |
| Adoption Date | January 20, 2000 |
| Release Date | January 27, 2000 |
| Commissioner Statements | |
| Approve | Kennard, Tristani, Ness, |
| Dissent | Powell, Furchtgott-Roth |
Commission's goals in creating LPFM
The FCC's goal in creating LPFM was to create a class of radio stations to serve very localized communities or underrepresented groups within communities. Another goal was that any new LPFM service would specifically include the voices of community based schools, churches and civic organizations. Finally, the Commission made it clear that they would not compromise the integrity of the FM service. Engineering testing was performed by the FCC's Office of Engineering and Technology and studies submitted by commenters were comprehensively reviewed.
Classes of Service
LP-1000
In comments, the creation of a primary LP-1000 service created the most controversy. The topic was one of the few areas that generated opposition by both current full-power broadcasters and low power radio proponents. The FCC decided to not authorize the LP-1000 service. Those who opposed LP-1000 stated that they would pose a greater interference concern and would have a preclusive effect on the licensing of new LP-100 and LP-10 stations.
LP-100
LP-100 created the most positive comments. Commenters felt that LP-100 stations would create a reasonable coverage area while remaining small enough to respond to local needs. The service would allow for the use of equipment such as transmitters and single bay antennas which are readily available. Those in opposition stated that LP-100 was undesirable because it be difficult to establish a procedural and enforcement framework that would protect FM broadcasters from interference and that LP-100 stations would only create a marginal new radio listenership given the overriding levels of interference they would receive from full-service stations.
The FCC did authorize the LP-100 service with maximum facilities with the equivalent of 100 watts effective radiated power (ERP) and 30 meters (98 feet) height above average terrain and minimum facilities of 50 watts ERP at 30 meters HAAT. This would create a maximum service contour of 5.6 kilometers (3.5 miles).
LP-10
Those who commented on LP-10 felt that the service would be suitable for school campuses and local community organizations that wish to serve small areas and did not have the resources to construct a higher powered facility. Commenters felt that LP-10 would work better in crowded urban areas where higher class stations could not fit. Those who opposed it stated that the FCC would not be able to enforce the rules against the LP-10 stations and the widespread interference it would cause. Additionally the National Association of Broadcasters (NAB) discussed that the original Class D radio service was eliminated because the stations were inefficient spectrum usage.
The FCC did authorize the LP-10 service with facilities between 1 and 10 watts ERP and antenna heights up to 30 meters HAAT. LP-10 stations would produce a service contour between 1.6 and 3.2 kilometers (1 to 2 miles). These stations would fit in some locations where LP-100 was not available.
Nature of service and licensees
Noncommercial Educational service
Comments received overwhelmingly favored a noncommercial educational (NCE) service saying that NCE would be the best way to serve local communities. Others had argued that LPFM stations should be available for commercial licensees.
The FCC established the service only as noncommercial citing their goals to establish a new service to create new opportunities for new voices on the airwaves and to allow local groups including schools, churches and other community-based organizations to provide programming responsive to the local community needs and interests. Commercial stations, by their nature have commercial incentives to maximize audience size in order to improve ratings and increase advertising revenues. Such incentives could frustrate the FCC's goals in creating the service. Creating LPFM as an NCE service also gave the FCC additional flexibility in assigning licenses as mutually exclusive applications would not be resolved through competitive bidding, All LPFM applicants must meet the NCE eligibility requirements as outlined in Section 397(6) of the Communications Act. This means that applicants must demonstrate that the station would advance the organization's educational objective. With the NCE requirement for LPFM, stations could not be licensed to individuals, partnerships or for-profit entities.
Public Safety and transportation
Based on comments received by the New York State Thruway Authority and the Texas Department of Transportation, the FCC created a carve out to permit LPFM stations to be used by public safety and transportation agencies. These agencies felt that LPFM would be a service more reliable than AM Travelers Information Stations.
Eligibility and ownership
Cross ownership
Several commenters, including NAB stated that there should be no restrictions on LPFM stations being owned by existing broadcasters, NAB stated that a prohibition on cross-ownership would preclude LPFM stations from realizing efficiencies through joint operation with a full-power counterpart. Most commenters, however, opposed cross-ownership. Public interest groups asked why companies that already hold broadcast licenses be able to hold LPFM licenses when 99.9 of the American people are barred from the most effective communications media in the nation.
The FCC did prohibit cross-ownership of LPFM with any other broadcast station including translators and low power TV stations as well as other media subject to the ownership rules, such as local newspapers and cable TV providers. The FCC also prohibited operating agreements in any form, including time brokerage agreements, local marketing and management agreements and similar arrangements between full-power and LPFM broadcasters as well as between LPFM broadcasters. Applicants that already have an attributable interest can pledge to divest that interest in connection to receiving an LPFM license.
Localism requirement
Most commenters favored requirements that LPFM licensees be locally based arguing that local residents are more likely aware of the issues of importance to the local community and to gear their programming accordingly. Some commenters claimed that a local ownership requirement was incompatible with a 5 to 10 station ownership cap and could be struck down under the standards set by Bechtel v. FCC.
While the FCC felt that a local ownership requirement would be preclusive, the service is intended to respond to highly local interests that are not necessarily being met by full-power stations. Since LPFM will be NCE, they can't rely on on commercial market forces and business incentives to assure that local needs are fulfilled. The FCC concluded that the disadvantages of a local ownership requirement are outweighed by the benefits to be gained by maximizing the likelihood that LPFM stations will be well grounded in the communities they serve.
For the first two years of the LPFM service, all LPFM applicants must be based within 10 miles of the station they seek to operate. This means that the applicant must have a headquarters, a local chapter, branch or campus or has 75 percent of its board members residing with 10 miles of the transmitting antenna. 10 miles was chosen to be proportionate to most stations' likely effective reach.
Organizations providing public safety radio service will be considered community-based in the area for which it has jurisdiction.
National ownership
Comments received were very wide ranging including some groups that wanted a nationwide one-station-per-owner limit arguing that such a cap would result in the most diverse ownership Various civil rights organizations supported nationwide ownership Several commenters agreed with the 5 to 10 station cap that the FCC proposed. NAB stated that it did not believe a national ownership cap would be permitted under the Telecommunications Act of 1996.
The FCC will use a staged process where in the first two years, only one station per local owner. If no local organizations want stations, after the two year period, the FCC would allow organizations to own up to 5 stations and after 3 years, up to 10 stations. The FCC dismissed NAB's claims since the ownership rules in the Telecommunications Act of 1996 does not apply to NCE stations.
Local ownership limits
Many commenters agreed strongly that LPFM ownership should be limited to one station per community and that multiple ownership in a local area would reduce the number and diminish the diversity of new entrants. NAB opposed these limits stating that common ownership leads to increase efficiencies.
The FCC found that most of the opposition to the limits were related to commercial ownership of LP-1000 stations. The primary benefit of local multiple ownership, increased efficiency is less compelling with respect to LP-10 and LP-100 NCE stations.
The FCC will require that no entity may not have an attributable interest in two or more LPFM stations located within 7 miles of each other. This would apply to both LP-10 and LP-100 stations.
Attributable interests
The comments on this subject varied widely as some were concerned that if the existing attribution rules were applied to LPFM stations, some entities with large national organizations and small chapters would not be able to hold multiple licenses even though they maintain a local presence and will air local programming. Others stated that attribution rules should be waived for educational institutions so they can hold both a full-power license and a LPFM station.
The FCC will attribute the interests of the applicants, its parents, its subsidiaries, their officers and members of their governing boards. If an entity that holds an LPFM station does have stock, then the existing attribution rules will apply and a voting stock interest of 5 percent or more would be attributable unless the investor is passive in nature, in which case voting stock interests of 20 percent or more would be attributable.
An exception was made for certain officers and directors of the parent of an LPFM applicant or licensee who may hold attributable interest in a broadcast license or other media subject to the ownership rules provided that the duties and responsibility of the officer or director are wholly unrelated to the LPFM station and the officer or director recuses themselves of any matters related to the LPFM station. Another exception is for local chapters of national or other large organizations if the local chapter can demonstrate that it is separately incorporated and has a distinct local presence, it can apply for a license in its own right.
Unlicensed broadcasters
On this issue, various civil rights groups argued for "amnesty" for unlicensed broadcasters. Others stated that if it wasn't for the pirates, LPFM would have not been created. NAB believes that because pirate broadcasters operated illegally, they should not be given any amnesty.
The FCC will apply the same character qualifications for LPFM as they do for full power licensees. For pirate operation, the FCC will accept an applicant who certifies that they voluntarily ceased operating an illegal station no later than February 26, 1999 without any specific direction by the FCC to terminate operations or that they did terminate operations within 24 hours of being notified by the FCC.