AMY KLOBUCHAR
MINNESOTA
COMMIITEES:
AGRICULTURE, NUTRITION.
AND FOAESTRY
COMMERCE. SCIENCE.
AND TRANSPORTAllON
JOINT ECONOMIC COMMITIEE
JUDICIARY
mnited~tatcs~cnatc
WASHINGTON. DC 20510
June 20, 20II
The Honorable Julius Genachowski
Chairman
Federal Communications Commission
445 12
th
St, SW
Washington, D.C. 20515
Dear Chairman Genachowski:
I write in support ofthe Federal Communications Commission's (FCC) comprehensive review of
its media ownership rules. 1realize that such a review is a difficult task. As the process moves
forward, 1have a particular interest with the Commission's review ofthe radio rules.
I know the FCC will place a high priority on striking the right balance between fostering
competition and protecting the public interest. One area in which I believe that thc Commission
could take affirmative steps involves the AM I FM subcap. Competitive realities and
technological developments no longer make this portion ofthe local radio ownership rule
necessary. Repealing the subcap rule would expand diversity in radio ownership and provide a
pro-investment environment for the radio industry. Additionally, eliminating the subcap rule
would help achieve these goals without increasing the overall number ofstations that a single
entity can own in any given market.
The expected outcome ofrepealing the AM I FM subcap will further the Commission's goal of
making the airwaves available to a more diverse group ofbroadcast owners because there would
be additional ownership opportunities, especially within the AM band. Generally, AM stations
cost less than their FM counterparts, and financing such acquisitions is much easier for small
businesses.
Repealing the AM / FM subcap would immediately lead to the injection of much needed
investment. New investors would find opportunities to enter markets that had previously been
completely closed offor had posed little opportunity beforehand. The result would be a
revitalized market for radio stations.
I believe that eliminating the AM / FM subcap offers the FCC the ability to balance the reality of
growing competition within the audio marketplace and protecting the public interest.
I appreciate your consideration, and look forward to hearing from you soon.
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sen~obuchar