LPFMs sell for more than the value of the equipment, we just don’t know about it. An LPFM in New Jersey was sold for $50000 plus a translator. It was sold to a translator owner in order for him to move another translator closer to New York City that would be short spaced to the LPFM.
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HOW TO LOSE AT LPFM and some info to help you win
- Thread starter b-turner
- Start date
In your example, this seems like more of a 'mutual interference agreement'-situation. The station shelling out the money was motivated by getting the LP out of their way. If that was the case, I'm not sure the Commission would object, because the money was being exchanged for elimination of a station/translator, not for the new owner to operate the LP.
This rule was changed in MB Docket 19-3 (2020). If you paid $6,000 for a Nautel, then you can get $6,000 back under the new rule. You are still limited to what the assignor organization paid out.
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Harvey_Dogg
Guest
Was the $6,000 a loan? You are allowed to get your repayment with reasonable interest. But if the money was a donation you wrote off on taxes? Your not for profit must donate the money to another charity if your not for profit is sold and goes out of business.
When one sells a commercial station, you can't assign a dollar value to a broadcast license even if it's only the license that has any worth. You might own a station's property. But you are only a trustee of a Federal license grant. You can transfer a license but can't sell a bare license for money.
When one sells a commercial station, you can't assign a dollar value to a broadcast license even if it's only the license that has any worth. You might own a station's property. But you are only a trustee of a Federal license grant. You can transfer a license but can't sell a bare license for money.
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Regulation involved here is 47 CFR §73.865(a)(1):
(a) Assignment/Transfer: No party may assign or transfer an LPFM license if:
(1) Consideration promised or received exceeds the legitimate and prudent expenses of the assignor or transferor. For purposes of this section, legitimate and prudent expenses are those expenses reasonably incurred by the assignor or transferor in obtaining and constructing the station (e.g., expenses in preparing an application, in obtaining and installing broadcast equipment to be assigned or transferred, etc.). Costs incurred in operating the station are not recoverable (e.g. rent, salaries, utilities, music licensing fees, etc.);
(a) Assignment/Transfer: No party may assign or transfer an LPFM license if:
(1) Consideration promised or received exceeds the legitimate and prudent expenses of the assignor or transferor. For purposes of this section, legitimate and prudent expenses are those expenses reasonably incurred by the assignor or transferor in obtaining and constructing the station (e.g., expenses in preparing an application, in obtaining and installing broadcast equipment to be assigned or transferred, etc.). Costs incurred in operating the station are not recoverable (e.g. rent, salaries, utilities, music licensing fees, etc.);
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Harvey_Dogg
Guest
I disapprove of those who apply for broadcast CP's they can't build or have no intention to build. They keep legitimate applicant's off the air with their greed. They just want to get a construction permit to sell for a great profit. The FCC wanted to keep these people out of LPFM.
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Since LPFM stations are largely non-commercial/valueless except for maybe equipment, I doubt anyone makes a killing from selling a CP for one.
Also, a percentage of non-profit community organizations are not sustainable and do not survive, despite the commendable purpose of the organization. LPFM is more than a monthly meeting place or internet destination, it is the creation of ongoing content by volunteers.
Thought for consideration-
Should non-commercial broadcast stations be allocated to communities in the same manner as commercial broadcast stations?
Given the broader nature of community service, what is "competition" in non-commercial broadcasting? I know of two LPFM stations that are excellent examples of genuine community-based local radio, with volunteers and an active board of directors that reflects the community. One of these communities is getting a more powerful reserve band non-commercial station.
Will the new station harm the existing LPFM? Does a community have a finite amount of "capital" to support non-profit community-based organizations? Do more NCE/LPFM signals have the effect of reducing the ability of each one to survive?
American voters, by way of Congress, created LPFM service. In the introduction of LPFM, spectrum was preserved for operation of LPFM stations within a technical framework to minimize interference. Ongoing demand exists for spectrum in the FM broadcast band to use for broadcasting. Government, stakeholders and the public have the task of determining how to make the spectrum available for use.
Thought for consideration-
Should non-commercial broadcast stations be allocated to communities in the same manner as commercial broadcast stations?
Given the broader nature of community service, what is "competition" in non-commercial broadcasting? I know of two LPFM stations that are excellent examples of genuine community-based local radio, with volunteers and an active board of directors that reflects the community. One of these communities is getting a more powerful reserve band non-commercial station.
Will the new station harm the existing LPFM? Does a community have a finite amount of "capital" to support non-profit community-based organizations? Do more NCE/LPFM signals have the effect of reducing the ability of each one to survive?
American voters, by way of Congress, created LPFM service. In the introduction of LPFM, spectrum was preserved for operation of LPFM stations within a technical framework to minimize interference. Ongoing demand exists for spectrum in the FM broadcast band to use for broadcasting. Government, stakeholders and the public have the task of determining how to make the spectrum available for use.
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For better or worse, the US regulatory system doesn't consider market capacity when licensing new signals. If it fits on the dial and meets the FCC's technical criteria, that's all that counts. It's up to the applicant to decide whether they can make it economically viable, and up to the free market to determine whether it succeeds or fails.
For full-power allocations, the FCC also takes into account Section 307(b) of the Communications Act, which requires it to make sure signals are distributed to communities in a "fair and equitable" manner. My broadcast lawyer friends could write entire books on the twists and turns in the way that's interpreted - but because LPFM is a secondary service, 307(b) doesn't really apply.
I happen to live in a community where multiple LPFMs blossomed during the first window a few years ago. We have three English-languages "community" LPFMs serving my county of about 650,000 people. One found its niche as a freeform outlet with about 70-80 programmers doing weekly shows (usually an hour or two) that are all over the map with talk and music - you never know what you'll get in any given hour. Another was started by some old radio guys and does (mostly syndicated) progressive talk by day and longer music blocks at night. The third belongs to the city cable access channel and focuses on the city's Black community. They've all at least survived, and they all look out for each other. (I was involved in the sale of a commercial station and made absolutely certain that the LPFM that shared its tower was going to be able to keep operating there after the commercial station moved.)
There's also a Spanish-language community LPFM that's run by a civic service organization and a Christian AC signal out in the suburbs that's pretty much a clone of Z88 from Orlando. They obviously serve completely different audiences. And there was a sixth LPFM that was satellite-fed Spanish religion, but it got called out for moving illegally and surrendered its license.
For full-power allocations, the FCC also takes into account Section 307(b) of the Communications Act, which requires it to make sure signals are distributed to communities in a "fair and equitable" manner. My broadcast lawyer friends could write entire books on the twists and turns in the way that's interpreted - but because LPFM is a secondary service, 307(b) doesn't really apply.
I happen to live in a community where multiple LPFMs blossomed during the first window a few years ago. We have three English-languages "community" LPFMs serving my county of about 650,000 people. One found its niche as a freeform outlet with about 70-80 programmers doing weekly shows (usually an hour or two) that are all over the map with talk and music - you never know what you'll get in any given hour. Another was started by some old radio guys and does (mostly syndicated) progressive talk by day and longer music blocks at night. The third belongs to the city cable access channel and focuses on the city's Black community. They've all at least survived, and they all look out for each other. (I was involved in the sale of a commercial station and made absolutely certain that the LPFM that shared its tower was going to be able to keep operating there after the commercial station moved.)
There's also a Spanish-language community LPFM that's run by a civic service organization and a Christian AC signal out in the suburbs that's pretty much a clone of Z88 from Orlando. They obviously serve completely different audiences. And there was a sixth LPFM that was satellite-fed Spanish religion, but it got called out for moving illegally and surrendered its license.
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Harvey_Dogg
Guest
You'd be surprised. I am aware of NCE CP's in some Podunk places with low populations selling for $20,000. But I don't think you can sell an LPFM CP.
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Harvey_Dogg
Guest
I have written several petitions for rulemaking that have been adapted by the FCC. These require a legal and an engineering section. For most of you this would double your costs in applying for the station and cause further delays in the service.
Adding channels to the Table of Allocations requires a petition for rulemaking for each channel. The frequency you wish to add must meet mileage separations between different classes of stations. This is done for primary full power stations in the commercial band, but not secondary stations like LPFM's and translators.
There are those of us who would like translators and LPFM's reclassified as primary and protected as such.
But, the FCC's hands have been tied by congress. I don't think they can change the status of LPFM and. translators.
Adding channels to the Table of Allocations requires a petition for rulemaking for each channel. The frequency you wish to add must meet mileage separations between different classes of stations. This is done for primary full power stations in the commercial band, but not secondary stations like LPFM's and translators.
There are those of us who would like translators and LPFM's reclassified as primary and protected as such.
But, the FCC's hands have been tied by congress. I don't think they can change the status of LPFM and. translators.
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btw- I am posting about ideas and thoughts on the weekend. No personal agenda and not speaking on behalf of my employer.
Spectrum use is an interesting subject. Someone might say the non-reserved band should not be used by non-commercial stations, and non-reserved band stations should NOT be permitted to change between commercial and non-commercial license status at will.
Another may say the entire FM band should be available without those conditions. Another might see this question as connected to fundamental ideas and principals of the United States. How far should government reach?
Someone might say there is not enough spectrum in the reserved band. That is reasonable, but there is never enough spectrum in ANY desirable band, it seems. Another may say non-commercial stations have led the way with contour-based facilities in the reserved band. Others may say non-commercial stations have mucked it up and crammed the reserved band with no room for future signal footprint growth, and the distance spacing based method used for non-reserved band stations is better because it leaves a little bit of breathing room.
A fundamental question is should every bit of spectrum be fully used ASAP at every location in the USA? Or should we leave some open space? Some believe a right of human existence is to make use of everything before us. Propagation of electromagnetic, particle, acoustical or gravitational waves does not respect human rules and agreements.
Spectrum use is an interesting subject. Someone might say the non-reserved band should not be used by non-commercial stations, and non-reserved band stations should NOT be permitted to change between commercial and non-commercial license status at will.
Another may say the entire FM band should be available without those conditions. Another might see this question as connected to fundamental ideas and principals of the United States. How far should government reach?
Someone might say there is not enough spectrum in the reserved band. That is reasonable, but there is never enough spectrum in ANY desirable band, it seems. Another may say non-commercial stations have led the way with contour-based facilities in the reserved band. Others may say non-commercial stations have mucked it up and crammed the reserved band with no room for future signal footprint growth, and the distance spacing based method used for non-reserved band stations is better because it leaves a little bit of breathing room.
A fundamental question is should every bit of spectrum be fully used ASAP at every location in the USA? Or should we leave some open space? Some believe a right of human existence is to make use of everything before us. Propagation of electromagnetic, particle, acoustical or gravitational waves does not respect human rules and agreements.
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Harvey_Dogg
Guest
President Biden just recently signed the Low Power Protection Act into law. This protects low power TV stations from displacement. So again the FCC's hands are tied. I'd guess the NCE FM band will not be expanded into TV channels now.
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Harvey_Dogg
Guest
Recently the FCC granted a CP in my state for a new NCE that will be 100 watts in only one direction, away from population. Now imagine spending $15,000 for an expensive stacked antenna that gives you 15 to 25 watts in the other directions. This is what you will see for LPFM if we go to using contours instead of a mileage separation.
One of the considerations:
"(iii) as of the date of enactment of this Act, operates in a Designated Market Area with not more than 95,000 television households."
Harvey, here is the best summary of LPFM directional antenna topic:
Directional Antennas for LPFM | REC Networks
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Harvey_Dogg
Guest
S. 3405 would require the Federal Communications Commission (FCC) to issue a notice of proposed rulemaking that would authorize qualifying low power television (LPTV) stations to apply for Class A television licenses. That application period would last for one year after the final rule takes effect. LPTV stations afforded Class A status obtain “primary status” as television broadcasters, which protects them from harmful radio interference by full-service television stations. In addition, the FCC would report to the Congress on the implementation of S. 3405.
Using information from the FCC, CBO estimates that it would cost the agency about $1 million to complete a full rulemaking and report to the Congress. Because the FCC is authorized to collect fees each year sufficient to offset the appropriated costs of its regulatory activities, CBO estimates that the net cost to the FCC would be negligible, assuming appropriation actions consistent with that authority.
If the FCC increased fees to offset the costs associated with implementing the bill, S. 3405 would increase the cost of an existing mandate on private entities required to pay those fees. CBO estimates that the incremental cost of that mandate would be small and fall below the annual threshold established in the Unfunded Mandates Reform Act (UMRA) ($184 million in 2022, adjusted annually for inflation).
H.R. 3405 contains no intergovernmental mandates as defined in UMRA
Using information from the FCC, CBO estimates that it would cost the agency about $1 million to complete a full rulemaking and report to the Congress. Because the FCC is authorized to collect fees each year sufficient to offset the appropriated costs of its regulatory activities, CBO estimates that the net cost to the FCC would be negligible, assuming appropriation actions consistent with that authority.
If the FCC increased fees to offset the costs associated with implementing the bill, S. 3405 would increase the cost of an existing mandate on private entities required to pay those fees. CBO estimates that the incremental cost of that mandate would be small and fall below the annual threshold established in the Unfunded Mandates Reform Act (UMRA) ($184 million in 2022, adjusted annually for inflation).
H.R. 3405 contains no intergovernmental mandates as defined in UMRA
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Harvey_Dogg
Guest
I'm quite aware of directional FM antennas that are not allowed to increase your ERP in any direction. They only cut your ERP in other directions towards short spaced stations.Harvey, here is the best summary of LPFM directional antenna topic:
Directional Antennas for LPFM | REC Networks
recnet.com
I once paid $15,000 for a two bay directional for a commercial FM.
Nor should they. It was a largely failed experiment in letting selective members of the public play radio.
There is this magical place called Florida where it seems all of the LPFM assignment applications go into 5 figures... but then again, it's also the same magical place where the LPFMs are airing commercials.
LPFM going to contours (towards full-service stations) would require legislation in Congress to repeal portions of the LCRA.
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