Vol. 2, Issue 1, November 2002

Happy 1st Anniversary!

My solo law practice recently celebrated its first anniversary. A special thanks to my friends, family and clients (who I am also fortunate enough to number among my friends). Without the support of each and every one of you, I would not have been able to accomplish this transition. And I now have a much better understanding of the trials and tribulations of business owners, since I now have accounting, bookkeeping and office supply issues to address. I offer a tip of my cap to all of you who run your own small businesses. It is NOT as easy as it looks!

If At First You Don’t Succeed

In July, 2002, the FCC issued an Order stating that application processing fees would be increased effective September 10, 2002, following publication of the new fee schedule in the Federal Register. On October 4, the FCC issued a Public Notice suspending the fee increase because the new fee schedule was never published in the Federal Register.

The new fee schedule was published in the Federal Register on November 5, and the FCC promptly issued a Public Notice advising that the new fees would be effective on December 5, 2002. If you have been thinking about filing an application, get to it before December 5 to avoid the fee increase. For specific information on the new fees, give me a call.

If At First You Don’t Succeed, Part 2

The FCC adopted new EEO rules on November 7, 2002 to replace the rules that were struck down by the U.S. Court of Appeals in 2000. There is not much change from what was previously proposed. Broadcasters must (a) “widely disseminate” information about each full-time job opening; (b) provide notice of full-time openings to recruitment organizations that ask to be notified; and (c) within two years, participate in two (if you have 5-10 full-time employees, or are in a small market) or four (if you have 10 or more full-time employees) job fairs, internship programs or other community events to educate the public on job opportunities in broadcasting.

Licensees must establish an EEO public file, which will be submitted to the Commission and evaluated midway through the license term for a mid-term review, and then again at license renewal time. This file should contain specific information on the applications received, recruitment sources used, and the successful candidate for each full-time position filled during the relevant period. It should also describe the licensee’s participation in job fairs, internship programs, and other activities to satisfy that prong of the EEO program.

Interesting notes on the new program:

1. The FCC deferred action on the collection of data concerning the race, gender or ethnicity of the workforce, saying it would not be used to determine compliance with these new rules.
2. It left open the question of whether these rules will apply to part-time positions, pending further review and public comment.
3. If a station maintains a website, it is required to post its current EEO public file on the website under the new rules.

I will gladly answer any specific questions you have concerning the new rules and reporting/public file requirements.

Merger Trends – Is the FCC Slowing the Pace of Consolidation?

The Commission has made some interesting decisions with respect to big mergers recently, and is also in the throes of addressing a variety of cross-ownership and market concentration issues as part of its Media Ownership Policy Examination. The FCC has, in the past few months, designated several assignment of license applications for a trial type hearing to determine if the assignment would provide the buyer with too great a concentration of radio stations in a particular market. Because of the time and costs involved in such hearings, generally when an application is designated, the deal unwinds. Expect new rules and policies concerning the way market concentration in radio is measured.

The FCC is also slowing the “merger-mania” that has swept the communications business in the last decade. It said “no” to the proposed DirecTV/Echostar merger because that merger would have created a virtual monopoly for the combined entity in the satellite TV marketplace. It is also taking a very long look at the proposed Hispanic Broadcasting/Univision merger to see whether it would create a Spanish language monopoly in broadcasting for the combined entity. However, it did approve the Comcast/AT&T merger.

The ownership policy review is very high on the FCC’s agenda, and is very much anticipated by all sectors of the communications industry.

600 New FM Allotments Waiting, But No Filing Windows in Sight

That is the latest word from the Media Bureau’s Audio Division. Since the U.S. Court of Appeals decided that auctions could not be used in situations where commercial and non-commercial entities are competing for the same frequency, the FCC has been working to craft new rules to decide how to award a construction permit when there is a mix of commercial and non-commercial applicants in competition. The FCC hopes to have new rules out by the end of the year, but fully anticipates reconsideration petitions, and ultimately court challenges to delay implementation of those new rules. It may take until 2004 before application filing windows are opened for any of these new allotments.

This newsletter is intended to be for informational use only. Readers should not act upon the information presented here without seeking professional legal counseling to address the facts and circumstances specific to them. The transmission and/or receipt of this newsletter does not create an attorney-client relationship.

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