Coming This September: FCC Auction 79
122 FM CPs set for auction to start on September 1, 2009
Heads up, all you radio folks who have had to sit on the sidelines while the DTV transition got all the attention!! The Commission has announced that the next auction of FM broadcast permits has been scheduled to start on September 1, 2009. Mark your calendars and get your checkbooks ready.
A total of 122 CPs will be on the block. A complete list of the channels/markets involved can be found here.
The public notice is the first step in a standard process which the Commission has historically used in connection with its broadcast auctions. The notice: (a) sets forth the auction methodology which the FCC proposes to use – it appears at first glance to be essentially the same methodology used in earlier auctions, and (b) lists the CPs for sale and ascribes minimum opening bid values to each. The notice also serves as an invitation for public comment about both methodology questions and the specific minimum bid values. Comments are due no later than March 20, 2009, and reply comments by April 1.
Once those dates have passed and the Commission has had an opportunity to address any comments filed, it will issue a further notice providing more detail about the schedule of auction activities, including deadlines for initial applications, upfront payments and the like.
A word of caution. Since the FCC has bothered to include this bold-face disclaimer in its notice, we figure we should pass it along straight from the horse’s mouth:
The FCC makes no representations or warranties about the use of this spectrum for particular services. Applicants should be aware that an FCC auction represents an opportunity to become an FCC construction permittee in the broadcast service, subject to certain conditions and regulations. An FCC auction does not constitute an endorsement by the FCC of any particular service, technology, or product, nor does an FCC construction permit or license constitute a guarantee of business success.
While September may seem well into the distant future at this point, anyone who might have any interest at all in participating in the auction should begin immediately to get familiar with the process.
What is the price range these radio construction permits sell for at auction?
Response to Mark (commenter above) -- As with any auction-based pricing mechanism, the price of any FM permit depends on the bidders. To see the winning bids in the most recent FM auction (conducted in early 2007), see http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-07-1437A2.pdf. The FCC has announced tentative minimum opening bid levels for the permits that will be available in the upcoming Auction No. 79. Those tentative minimum bid levels may be found at http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-09-422A2.pdf. Note that those levels are subject to change after the FCC considers comments which may be filed by interested members of the public. And in any event, once the bidding starts, the opening bid levels may be quickly surpassed by bidders.
Thanks for your quick response. If I may ask a few questions that will prove I'm a novice?
1) What is the difference between Net Bid and Winning Bid on your attached link above?
2) If I won an auction, obtained Call Letters from the FCC, and then bought in to a larger market either prior to or after building the original station, am I able to take my Call letters to the new market?
3) Is any work needed (besides research) prior to bidding on a construction permit such as engineering or finding an actual location to build?
Response to Mark (commenter above) -- Good questions all -- and an illustration of why it is prudent to retain counsel before wading into the regulatory morass of a spectrum auction.
In FCC auctions, bidders may be entitled to "bidding credits" based on a number of factors. The "net bid" (i.e., the price the bidder will actually have to pay) reflects the adjustment of the "winning bid" (i.e., the price the bidder bid) after the credits have been applied.
The transportability of call signs to a different station depends on a number of factors, but it is at least possible, if not likely, that some arrangements could be made to retain a call sign.
As the FCC repeatedly emphasizes, purchase of a permit at auction is at the buyer's risk. It is therefore prudent to research potential purchases exhaustively to be confident that the channel will in fact work as the bidder wants it to. That research may include, among other things, engineering studies to determine (a) the area where the transmitter site could/should be located and (b) whether any sites in that area are both available and suitable. Once a construction permit issues, it is good for three years and three years only (barring certain extraordinary circumstances) -- so it's best to identify and resolve as many potential problems as possible before the construction term starts to run.
Hello: Thank you for this blog. You really seem to know that process. I'm also a novice that wants to get in on the auction. I have a few questions:
1. According to the auction list, there's only one frequency close to me. MM-FM678-A NY Indian Lake. I live in New Jersey, does it matter? Can I move this to New Jersey?
2. What is non Arbitron rated and FCC - PART 15 broadcast station? Can I apply for this type of station during this open window?
I bottom line is I want to start a radio station in New Jersey and I'm trying to understand how to proceed. The FCC Website is so confusing. No straight answers.
Thank you for your help and assistance in understanding this maze.
Response to An Sean (above) --
With respect to your first question, you will need to hire a consulting engineer (and, possibly, a communications attorney) to determine whether the Indian Lake channel you mention could be moved to a New Jersey community consistently with the FCC's technical rules. Such moves are occasionally possible, although the congested state of broadcast spectrum use in the entire mid-Atlantic area may prevent it in your case.
With respect to your second question, your reference to a "non Arbitron rate and FCC-Part 15 broadcast station" is a bit unclear. Regardless of that, the short answer to the second part of your question is that the only channels which are available during Auction 79 are the full-service FM channels which have been listed by the Commission.
The historical info on winning bids is interesting. Any way of knowing how many bids were submitted for each respective CP?
Response to Dan (above) - Both during an auction and afterwards, the FCC compiles and releases a significant amount of data regarding a Construction Permit's bid history. At the close of each auction, the FCC releases a “winning bid" list indicating the round of the auction in which the winning bid was won. That list may be reviewed by researching a specific auction at: http://wireless.fcc.gov/auctions.