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LPFM Report and Order: Difference between revisions
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=== Localism requirement === | === Localism requirement === | ||
Most commenters | 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 === | === 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 === | === 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 === | === 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. | |||
== Technical rules == | == Technical rules == | ||