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 Federal  Communications  Commission  FCC  04-  275 
 DISSENTING  STATEMENT  OF  COMMISSIONER  JONATHAN  S.  ADELSTEIN 


 Re:  Applications  of  Golden  Triangle  Radio,  Inc.  and  Cumulus  Licensing  Corp.  For  Consent  to  the  Assignment  of  the  Licenses  of  WKOR-  FM,  Columbus,  MS,  WMXU(  FM)  and  WSSO(  AM) 
 Starkville,  MS,  and  Application  of  Charisma  Broadcasting  Co.  and  Cumulus  Licensing  Corp.  For  Consent  to  the  Assignment  of  the  License  of  WKOR(  AM)  Starkville,  MS,  and  Application  of  Bravo 
 Communications,  Inc.  and  Cumulus  Licensing  Corp.  For  Consent  to  the  Assignment  of  the  License  of  WSMS(  FM),  Artesia,  MS,  and  Applications  of  Radio  Columbus,  Inc.  and  Cumulus 
 Licensing  Corp.  For  Consent  to  the  Assignment  of  the  Licenses  of  WJWF(  AM)  and  WMBC(  FM),  Columbus,  MS; 


 I  dissent  to  this  Order  on  Reconsideration,  which  affirms  the  Commission’s  approval  of  seven  license  transfers  in  the  Columbus,  Mississippi  area  market  in  February  2002.  I  was  not  a  member  of  the 
 Commission  at  that  time,  but  in  being  asked  to  reconsider  the  approval,  I  believe  the  decision  was  wrong. 
 As  the  Order  states,  the  Commission  found  that  the  seven  stations  involved  in  these  license  transfers  would  have  a  combined  radio  advertising  revenue  share  of  more  than  50%,  and  that  “the  degree 
 of  market  concentration  might  carry  some  risk  of  competitive  harm.”  Indeed,  the  petitioner  seeking  reconsideration  claims  that  the  Herfindahl-  Hirschman  Index  (HHI)  for  this  market  post-  merger  indicates 
 that  it  would  be  highly  concentrated,  and  would  increase  by  a  factor  that  suggests  that  the  merger  would  be  likely  to  create  or  enhance  market  power. 


 The  Commission  found,  however,  that  this  competitive  harm  was  outweighed  by  public  interest  benefits.  The  Order  does  not  enumerate  these  benefits.  The  original  order,  however,  states  that  Cumulus, 
 having  operated  these  stations  through  LMAs  for  several  years,  has  realized  certain  cost  efficiencies  as  a  result  of  the  joint  operations.  Although  Cumulus  apparently  has  produced  more  local  programming 
 through  the  LMAs,  the  original  order  provides  as  one  example  of  the  efficiencies  realized  the  fact  that  “[  o]  perations  have  been  consolidated  so  that  one  newsperson  provides  news  for  all  seven  stations.” 


 Facts  like  these  raise  serious  questions  about  the  harm  to  competition,  diversity,  and  localism  that  the  transaction  would  impose.  I  believe  that  this  transaction  at  a  minimum  warrants  further  inquiry.  I 
 therefore  dissent  from  the  decision  not  to  reconsider  the  approval  of  these  license  transfers  without  a  hearing. 


 I  also  share  Commissioner  Copps’  concern  about  the  elimination  of  what  had  been  an  important  aspect  of  the  Commission’s  review  of  radio  transactions.  Previously,  when  a  proposed  combination 
 resulted  in  one  corporation  having  a  50  percent  or  two  corporations  having  a  70  percent  advertising  revenue  share  in  a  given  market,  the  Commission  flagged  the  transaction  for  more  rigorous  analysis. 
 Failure  to  continue  this  process  in  highly  concentrated  markets  falls  short  of  fulfilling  our  obligation  to  protect  the  public  interest. 
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