iHeartMedia 2002 Annual Report Download - page 13

Regulation of Our Business
Existing Regulation and 1996 Legislation
Radio and television broadcasting are subject to the jurisdiction of the Federal Communications Commission under the Communications
Act of 1934. The Communications Act prohibits the operation of a radio or television broadcasting station except under a license issued by the
FCC and empowers the FCC, among other things, to:
The Communications Act prohibits the assignment of a license or the transfer of control of a licensee without prior approval of the FCC.
The Telecommunications Act of 1996 represented a comprehensive overhaul of the country’s telecommunications laws. The 1996 Act
changed both the process for renewal of broadcast station licenses and the broadcast ownership rules. The 1996 Act established a “two-step”
renewal process that limited the FCC’s discretion to consider applications filed in competition with an incumbent’s renewal application. The
1996 Act also liberalized the national broadcast ownership rules, eliminating the national radio limits and easing the national restrictions on TV
ownership. The 1996 Act also relaxed local radio ownership restrictions, but left local TV ownership restrictions in place pending further FCC
review.
License Grant and Renewal
Under the 1996 Act, the FCC grants broadcast licenses to both radio and television stations for terms of up to eight years. The 1996 Act
requires the FCC to renew a broadcast license if it finds that:
In making its determination, the FCC may consider petitions to deny and informal objections, and may order a hearing if such petitions or
objections raise sufficiently serious issues. The FCC, however, may not consider whether the public interest would be better served by a person
or entity other than the renewal applicant. Instead, under the 1996 Act, competing applications for the incumbent’s spectrum may be accepted
only after the FCC has denied the incumbent’s application for renewal of its license.
Although in the vast majority of cases broadcast licenses are renewed by the FCC even when petitions to deny or informal objections are
filed, there can be no assurance that any of our stations’licenses will be renewed at the expiration of their terms.
Current Multiple Ownership Restrictions
The FCC has promulgated rules that, among other things, limit the ability of individuals and entities to own or have an “attributable interest”
in broadcast stations and other specified mass media entities.
The 1996 Act mandated significant revisions to the radio and television ownership rules. With respect to radio licensees, the 1996 Act
directed the FCC to eliminate the national ownership restriction, allowing one entity to
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•issue, renew, revoke and modify broadcasting licenses;
•assign frequency bands;
•determine stations’frequencies, locations, and power;
•regulate the equipment used by stations;
•adopt other regulations to carry out the provisions of the Communications Act;
•impose penalties for violation of such regulations; and
•impose fees for processing applications and other administrative functions.
•the station has served the public interest, convenience and necessity;
•there have been no serious violations of either the Communications Act or the FCC’s rules and regulations by the licensee; an
d
•there have been no other serious violations which taken together constitute a pattern of abuse.