*Pages 1--2 from  Microsoft Word - 5408.doc*
 NEWS  News  media  Information  202  /  418-  0500  Fax-  On-  Demand  202  /  418-  2830  TTY  202/  418-  2555  Internet:  http://  www.  fcc.  gov  ftp.  fcc.  gov  Federal  Communications  Commission  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Circ  1974). 
 FOR  IMMEDIATE  RELEASE:  News  Media  contact: 
 December  8,  2000  David  Fiske  (202)  418-  0513 


 FCC  PROPOSES  CHANGES  IN  DEFINING  COMMERCIAL  RADIO  MARKETS 
 The  FCC  is  seeking  comment  on  whether  and  how  it  should  modify  its  existing  definition 
 of  radio  markets  and  the  methods  it  uses  in  counting  radio  stations  for  purposes  of  applying  its 
 ownership  rules. 


 In  a  Notice  of  Proposed  Rulemaking  adopted  on  December  6,  the  Commission  said  that 
 its  current  method  of  defining  a  radio  market  based  on  “mutually  overlapping”  signal  contours 
 and  of  counting  stations  based  on  overlapping  signal  contours  has  sometimes  led  to  results  that 
 are  at  odds  with  commercial  market  definitions  and  economic  reality.  For  example,  it  cited  a 
 transaction  in  Wichita,  Kansas  where  the  FCC  signal  contour  method  produced  a  market  with  52 
 commercial  radio  stations  which  would  allow  a  single  group  owner  to  have  up  to  8  stations,  but 
 where  commonly  used  commercial  market  classifications,  such  as  Arbitron,  defined  the  same 
 market  area  as  including  only  24  stations  which  would  have  limited  that  owner  to  only  6  stations. 


 The  Commission  asked  for  comments  on  a  series  of  alternative  station-  counting  methods. 
 It  suggested  eliminating  its  current  market  definitions  and  instead  relying  on  a 
 commercially  determined  market  definition  service,  such  as  Arbitron.  The  Commission  said 
 these  market  definitions  attempt  to  accurately  reflect  the  location  of  a  station’s  listeners  and  the 
 identity  of  stations  that  are  actually  perceived  by  advertisers  to  be  in  a  market. 


 The  Commission  noted  that  nearly  80%  of  the  nation’s  population  is  included  in  the 
 approximately  850  counties  in  the  United  States  included  in  Arbitron  markets.  However,  it  asked 
 for  comments  on  how  under  this  system  it  would  determine  the  dimensions  of  markets  for 
 stations  in  the  approximately  2250  counties  not  located  in  Arbitron  markets.  It  also  asked  for 
 comments  on  what  the  effect  on  FCC  determinations  would  be  when  the  commercial  market 
 services  make  changes  in  its  market  definitions. 


 Alternatively,  the  Commission  suggested  that  it  could  retain  the  current  “mutual  overlap” 
 method  of  defining  a  geographic  radio  market,  but  revise  the  standard  for  determining  how  many 
 stations  are  in  the  market  and  how  many  of  these  stations  a  particular  owner  is  deemed  to  own. 


 Under  the  current  system,  the  number  of  stations  in  a  market  is  determined  by  counting 
 all  stations  whose  principal  signal  contours  overlap  to  any  degree  the  principal  signal  contours  of 
 any  station  whose  contours  define  the  market.  However,  in  determining  how  many  stations  a 
 particular  licensee  owns  in  the  market,  the  FCC  only  counts  stations  whose  principal  signal 
 contours  mutually  overlap.  In  other  words,  for  purposes  of  ascertaining  compliance  with  the 
 numerical  station  limits,  by  a  given  party,  the  FCC  counts  only  those  stations  whose  contours 
 overlap  the  area  which  the  contours  of  all  of  the  stations  that  define  the  markets  have  in  common. 
 –  more  - 
1
 2 
 The  Commission  asked  for  comment  on  a  number  of  alternative  counting  methods, 
 including: 


 *  counting  against  an  applicant’s  ownership  allowance  any  station  it  owned  in  a  market 
 that  was  included  in  determining  how  many  stations  were  in  the  market, 


 *  excluding  from  the  count  of  the  number  of  stations  in  a  market,  any  stations  owned  by 
 an  applicant  except  the  commonly  owned  stations  that  form  the  market, 


 *  counting  as  being  in  a  market  only  those  stations  whose  principal  community  contours 
 overlap  or  intersect  the  overlap  area  of  the  principal  city  contours  of  the  stations  whose 
 ownership  is  to  be  merged,  or 


 *  counting  only  those  stations  that  overlap  a  certain  percentage  of  the  contour  of  one  or 
 more  mutually  overlapping  station. 


 The  Commission  said  it  did  not  propose  to  apply  any  counting  methodology  changes 
 retroactively  to  any  existing  ownership  combinations,  and  that  as  a  general  matter  it  would 
 continue  to  process  applications  under  existing  standards  unless  and  until  they  are  changed  in 
 this  proceeding. 


 Action  by  the  Commission  December  6,  2000,  by  Notice  of  Proposed  Rulemaking  (FCC  00-  427) 
 Chairman  Kennard,  Ness  and  Tristani,  Commissioners  Furchtgott-  Roth  and  Powell  concurring, 
 and  all  Commissioners  issuing  separate  statements. 


 -  FCC  -MM 
 Docket  No.  00-  244 
 Mass  Media  Bureau  Contact:  Roger  Holberg  (418-  2134) 
2