# Presentation: 139896

## Form 175 and Overview of Radio Service and Auction Rules

- FM Broadcast Auction
- (Auction No. 62)

- Lisa Stover, Auctions Marketing Specialist, ASAD
- Jim Bradshaw, Deputy Chief, Audio Division
- Lisa Scanlan, Assistant Chief, Audio Division
- Howard Davenport, Attorney Advisor, ASAD

## Disclaimer

- Nothing herein is intended to supersede any provision of the Commission's rules or public notices.  These slides should not be used as a substitute for a prospective applicant's review of the Commission's relevant orders, rules, and public notices.  Prospective applicants must familiarize themselves thoroughly and remain current with the Commission's rules relating to the FM Broadcast service, rules relating to application and auction procedures, and the procedures, terms and conditions contained in the Auction No. 62 public notices.

## Questions?

- If you are viewing this presentation live over the web, please feel free to email your questions to...

- auction62@fcc.gov

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## A legal Classification 

- A legal Classification
- must be selected
- in order to proceed

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## Copy Address If same 

- Copy Address If same
- as Applicant

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## PA

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## New Entrant Bidding Credit

- Unique to broadcast auctions
- Will be offered in FM Auction No. 62

## History

- Adopted August 6, 1998 in *Broadcast First Report and Order* * *(FCC 98-194) 13 FCC Rcd 15920 (1998)
- Fulfills 309(j) obligation
- promotes ownership diversification
- Refined on reconsideration in April 15, 1999 *Memorandum Opinion and Order* (FCC 99-74) 14 FCC Rcd 8724 (1999)
- Applied debt/equity attribution provisions in second *Memorandum Opinion and Order* August 4, 1999 (FCC 99-201) 14 FCC Rcd 12541 (1999)
- Governed by the broadcast attribution rules

## Mechanics

- Bidding Credit:  a percentage discount applied to high bid amount if bidder meets designated entity criteria established in broadcast auction rules
- Two tiers:  25% and 35%
- Apply on Form 175 -  New Entrant Eligibility page
-  No opportunity to apply after initial filing window deadline

## Rules

- 47 C.F.R. Section 73.5007 - Designated Entity Provisions
- 47 C.F.R. Section 73.5008 - Definitions
- Applies general broadcast attribution provisions of rule 47 C.F.R. Section 73.3555, note 2

## Eligibility

*Whose* other media interests are counted in establishing eligibility?
- We consider other media interests held by winning bidder, and by any entity or individual with *attributable interest* in winning bidder
- 35% - no attributable interest in any other media of mass communication
- 25% - attributable interest in no more than 3 existing mass media facilities
- Existing interests may not be in “same area” as a proposed facility

## Eligibility

-  “same area” – existing facility in “same area” as proposed if relevant defined service area of existing facility partially overlaps, or is partially overlapped by, proposed facility’s relevant contour
- 	- relevant contours defined in 73.5007
-  *What* media interests are counted?
-  73.5008 defines a “medium of mass communications”: daily newspaper; cable television system; license or construction permit for television, AM or FM broadcast station; direct broadcast satellite transponder; or multipoint distribution service station

## Eligibility

*Which* interests are counted?
-  Attributable interest – determined in accordance with 47 C.F.R. Section 73.3555 and note 2
-  Interests held by winning bidder in LPTV, TV translator, or FM translator facilities not counted as mass media interests in determining eligibility
-  Full service noncommercial educational stations, on both reserved and nonreserved channels, are included as mass media interests.  *Minnesota Christian Broadcasters, Inc*., 18 FCC Rcd 614 (2003)

## Unjust enrichment

- If permittee used bidding credit and seeks to assign or transfer control to entity not meeting eligibility criteria
- Must reimburse Government for bidding credit amount plus interest
- Condition of Commission approval of assignment or transfer
- 5 year reimbursement period
- within first 2 years: 100%
- year 3: 75%
- year 4: 50%
- year 5: 25%.  No reimbursement thereafter

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## If additional 

- If additional
- proposed
-  facilities
- click here

## Click here to 

- Click here to
- identify
- any additional
- existing facilities

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## System allows 

- System allows
- for more than
- 3 parties
- to be
- entered

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**Notes:**

Under Section 1.2105(a)(2)(ii), each applicant is required to disclose all real parties in interest. 
Real parties in interest is defined in Section 1.2112.
YOU MUST INCLUDE INFORMATION ON all parties having a 10 percent or greater interest in the applicant 
YOU MUST ALSO INCLUDE all FCC-regulated entities of which the applicant and entities with disclosable ownership interests in the applicant own 10 percent or more.   

THE FOLLOWING SCREEN SHOTS SHOW WHAT THE SYSTEM WOULD DISPLAY IF AN APPLICANT SELECTED THE ‘ADD DISCLOSABLE INTEREST HOLDER’.    [CLICK] [CLICK]

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## outside the U.S.  

- Link for Address
- outside the U.S.

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## Link if jurisdiction 

- Link if jurisdiction
- outside U.S.

## DIH information 

- DIH information
- previously
- entered displays

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## FRB

- information previously
- entered displays

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## You can check for errors 

- You can check for errors
- before
- certifying and submitting

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