Call Sign Assignments for Broadcast Stations

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 73 and 74

[MM Docket No. 98-98; FCC 98-324]

Call Sign Assignments for Broadcast Stations

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission

modifies its practices and procedures regarding the assignment of call

signs to radio and television broadcast stations. The document replaces

the Commission's existing manual procedures with an on-line system for

the electronic preparation and submission of requests for the

reservation and authorization of new and modified call signs.

Implementation of the on-line call sign system will enhance the speed

and certitude of radio and television broadcast station call sign

assignments, thereby providing better service to all broadcast

licensees and permittees, and will also conserve Commission resources.

EFFECTIVE DATE: December 29, 1998.

FOR FURTHER INFORMATION CONTACT: James J. Brown or Jerianne Timmerman

at (202) 418-1600.

SUPPLEMENTARY INFORMATION:

1. In this Report and Order adopted December 8, 1998, and released

December 16, 1998, the Federal Communications Commission is modifying

its practices and procedures regarding the assignment of call signs to

radio and television broadcast stations. As proposed in the Notice of

Proposed Rulemaking in this proceeding, 63 FR 38357 (July 16, 1998),

this Report and Order replaces the Commission's existing manual

procedures for assigning call signs with an on-line system for the

electronic preparation and submission of requests for the reservation

and authorization of new and modified call signs.

2. As described in detail in the Report and Order, implementation

of the on-line call sign system will enhance the speed and certitude of

radio and television broadcast station call sign assignments, thereby

providing better service to all broadcast licensees and permittees, and

will also conserve Commission resources. For these reasons, the Report

and Order requires broadcast licensees and permittees to utilize the

new on-line system in making call sign requests. However, as the

Commission seeks to avoid any disruption to broadcast licensees and

permittees who may not have ready access to the Internet, the Report

and Order allows applicants to request a waiver of the Commission's

requirement to utilize the on-line system to request new or modified

call signs for their stations.

3. The complete text of this Report and Order is available for

inspection and copying during normal business hours in the Federal

Communications Commission Reference Center (Room 239), 1919 M Street,

N.W., Washington, D.C., and it may be purchased from the Commission's

copy contractor, International Transcription Service, Inc., 1231 20th

Street, N.W., Washington, D.C. 20036, (202) 857-3800.

Final Regulatory Flexibility Act Analysis (FRFA)

Summary

4. As required by the Regulatory Flexibility Act (RFA), 5 U.S.C.

603, an Initial Regulatory Flexibility Analysis (IRFA) was incorporated

in the Notice of Proposed Rulemaking (NPRM) in this proceeding. The

Commission sought written public comments on the proposals in the NPRM,

including on the IRFA. The Commission's Final Regulatory Flexibility

Analysis (FRFA) in this Report and Order conforms to the RFA, as

amended by the Contract With America Advancement Act of 1996.

Need for and Objectives of Action

5. This Report and Order adopts modified procedures regarding the

assignment of call signs for radio and television broadcast stations.

By replacing its existing manual procedures with a new on-line system

for the electronic preparation and submission of requests for new and

modified call signs, the Commission will enhance the speed and

certitude of radio and television broadcast station call sign

assignments, while at the same time conserving Commission resources.

Significant Issues Raised by Public in Response to Initial Analysis

6. No comments were received specifically in response to the IRFA

contained in the NPRM. However, two commenters did address an issue

relating to call signs for low power television (LPTV) stations, whose

licensees are generally small businesses. One commenter opposed

allowing LPTV permittees to reserve four-letter call signs, but another

commenter opposed this position. The Commission concluded that there

was no compelling reason to prevent LPTV permittees from obtaining

four-letter call signs via the new electronic system if they wish to

replace their Commission-assigned five character alpha-numeric call

signs.

Description and Estimate of the Number of Small Entities Involved

7. Definition of a ``Small Business.'' Under the RFA, small

entities may include small organizations, small businesses, and small

governmental jurisdictions. 5 U.S.C. 601(6). The RFA, 5 U.S.C. 601(3),

generally defines the term ``small business'' as having the same

meaning as the term ``small business concern'' under the Small Business

Act, 15 U.S.C. 632. A small business concern is one which: (1) is

independently owned and operated; (2) is not dominant in its field of

operation; and (3) satisfies any additional criteria established by the

Small Business Administration (SBA). Pursuant to 5 U.S.C. 601(3), the

statutory definition of a small business applies ``unless an agency

after consultation with the Office of Advocacy of the SBA and after

opportunity for public comment, establishes one or more definitions of

such term which are appropriate to the activities of the agency and

publishes such definition(s) in the Federal Register.''

8. In the IRFA we stated that we tentatively believe that the SBA's

definition of ``small business'' greatly overstates the number of radio

and television broadcast stations that are small businesses and is not

particularly suitable for the purpose of determining the impact of the

proposals in the NPRM on small television and radio stations. While we

utilized the SBA's definition to determine the number of small

businesses to which the revised call sign procedures would apply, we

reserved the right to adopt a more suitable definition of ``small

business'' as applied to radio and television broadcast stations. We

received no comment in response to the IRFA on how to define radio and

television broadcast ``small businesses.'' Therefore, we will continue

to utilize the SBA's definitions for the purposes of this FRFA.

9. Issues in Applying the Definition of a ``Small Business.'' As

discussed below, we could not precisely apply the foregoing definition

of ``small business'' in developing our estimates of the number of

small entities to which the amended call sign procedures will apply.

Our estimates reflect our best judgments based on the data available to

us.

10. An element of the definition of ``small business'' is that the

entity not

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be dominant in its field of operation. We are unable at this time to

define or quantify the criteria that would establish whether a specific

radio or television station is dominant in its field of operation.

Accordingly, the following estimates of small businesses to which the

new call sign rules and procedures will apply do not exclude any radio

or television station from the definition of a small business on this

basis and are therefore overinclusive to that extent. An additional

element of the definition of ``small business'' is that the entity must

be independently owned and operated. As discussed further below, we

could not fully apply this criterion, and our estimates of small

businesses to which the amended call sign procedures may apply may be

overinclusive to this extent.

11. With respect to applying the revenue cap, the SBA has defined

``annual receipts'' specifically in 13 CFR 121.104, and its

calculations include an averaging process. We do not currently require

submission of financial data from licensees that we could use in

applying the SBA's definition of a small business. Thus, for purposes

of estimating the number of small entities to which the rules apply, we

are limited to considering the revenue data that are publicly

available, and the revenue data on which we rely may not correspond

completely with the SBA definition of annual receipts.

12. Under SBA criteria for determining annual receipts, if a

concern has acquired an affiliate or been acquired as an affiliate

during the applicable averaging period for determining annual receipts,

the annual receipts in determining size status include the receipts of

both firms. 13 CFR 121.104(d)(1). The SBA defines affiliation in 13 CFR

121.103. In this context, the SBA's definition of affiliate is

analogous to our attribution rules. Generally, under the SBA's

definition, concerns are affiliates of each other when one concern

controls or has the power to control the other, or a third party or

parties controls or has the power to control both. 13 CFR

121.103(a)(1). The SBA considers factors such as ownership, management,

previous relationships with or ties to another concern, and contractual

relationships, in determining whether affiliation exists. 13 CFR

121.103(a)(2). Instead of making an independent determination of

whether television stations were affiliates based on SBA's definitions,

we relied on the databases available to us to provide us with that

information.

13. Estimates Based on Census Data. The amended call sign rules and

procedures will apply to television and LPTV broadcasting licensees and

permittees and radio broadcasting licensees and permittees. The SBA

defines a television broadcasting station that has no more than $10.5

million in annual receipts as a small business. Television broadcasting

stations consist of establishments primarily engaged in broadcasting

visual programs by television to the public, except cable and other pay

television services. Included in this industry are commercial,

religious, educational, and other television stations. Also included

are establishments primarily engaged in television broadcasting and

which produce taped television program materials. Separate

establishments primarily engaged in producing taped television program

materials are classified under another SIC number.

14. There were 1,509 television stations operating in the Nation in

1992. That number has remained fairly steady as indicated by the

approximately 1,583 operating television broadcasting stations in the

Nation as of August 1998. For 1992, the number of television stations

that produced less than $10.0 million in revenue was 1,155

establishments. Thus, the amended call sign procedures will affect some

of the approximately 1,583 television stations; approximately 77%, or

1219, of those stations are considered small businesses. The amended

call sign procedures will also apply to LPTV stations that choose to

apply for four letter call signs, and we believe that the vast majority

of the existing 2088 LPTV stations are small businesses. These

estimates may overstate the number of small entities since the revenue

figures on which they are based do not include or aggregate revenues

from non-television affiliated companies.

15. The amended call sign rules and procedures will also affect

radio stations. The SBA defines a radio broadcasting station that has

no more than $5 million in annual receipts as a small business. A radio

broadcasting station is an establishment primarily engaged in

broadcasting aural programs by radio to the public. Included in this

industry are commercial, religious, educational, and other radio

stations. Radio broadcasting stations that primarily are engaged in

radio broadcasting and that produce radio program materials are

similarly included. However, radio stations that are separate

establishments and are primarily engaged in producing radio program

material are classified under another SIC number. The 1992 census

indicates that 96 percent (5,861 of 6,127) of radio station

establishments produced less than $5 million in revenue in 1992.

Official Commission records indicate that 11,334 individual radio

stations were operating in 1992. As of August 1998, official Commission

records indicate that 12,365 radio stations were operating. We conclude

that a similarly high percentage (96 percent) of current radio

broadcasting licensees are small entities, some of which will be

affected by the amended call sign procedures. These estimates may

overstate the number of small entities since the revenue figures on

which they are based do not include or aggregate revenues from non-

radio affiliated companies.

Description of Projected Recording, Recordkeeping, and Other Compliance

Requirements

16. The measures adopted in the Report and Order will reduce the

burdens on broadcast station licensees and permittees applying for or

requesting a change in their station call signs. Replacement of the

current manual call sign assignment process with an entirely electronic

system will reduce the overall administrative burden upon both

broadcast licensees and the Commission. Given the expected benefits of

the new electronic system, all broadcast licensees and permittees will

be required to utilize the system to make call sign requests. We

believe that utilization of the new on-line system will, among other

things, increase the speed and certitude of the call sign assignment

process, conserve Commission resources, and aid licensees and

permittees by informing them of errors in their call sign requests

before they are actually sent. The measures adopted in the Report and

Order do not alter the Commission's current rules and policies

regarding call signs (such as what constitutes a valid call sign), but

modify the procedures by which call signs are assigned.

Steps Taken To Minimize Significant Economic Impact on Small Entities

and Significant Alternatives Considered

17. This Report and Order implements the Mass Media Bureau's new

on-line call sign reservation system. Given the expected benefits of

the new electronic system for both broadcast station licensees and the

Commission, we determined to require all broadcast licensees and

permittees to utilize the system for reserving call signs. No comments

were submitted opposing mandatory use of the electronic call sign

system, and none contended that use of the system would impose a

significant economic impact on small entities, although one

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commenter supported a phase in period before use of the system would

become mandatory. Given the significant inefficiencies, for both

licensees and the Commission, associated with maintaining a manual call

sign request system following the implementation of our new electronic

system, we declined to adopt a phase in period for the new on-line

system. However, as we seek to avoid any disruption to broadcast

licensees and permittees (particularly small or rural broadcasters) who

may not have ready access to the Internet, we will allow applicants to

request a waiver of our requirement to utilize the on-line system to

make call sign requests.

Report to Congress

18. The Commission will send a copy of the Report and Order,

including this FRFA, in a report to be sent to Congress pursuant to the

Small Business Regulatory Enforcement Fairness Act of 1996. See 5

U.S.C. 801(a)(1)(A). In addition, the Commission will send a copy of

the Report and Order, including the FRFA, to the Chief Counsel for

Advocacy of the SBA.

19. Authority for issuance of this Report and Order is contained in

Sections 4(i), 4(j) and 303 of the Communications Act of 1934, as

amended, 47 U.S.C. 154(i), 154(j) and 303.

List of Subjects in 47 CFR parts 73 and 74

Radio broadcasting, Reporting and recordkeeping requirements,

Television broadcasting.

Federal Communications Commission.

Magalie Roman Salas,

Secretary.

Rule Changes

Parts 73 and 74 of Chapter I of Title 47 of the Code of Federal

Regulations are amended as follows:

PART 73--RADIO BROADCAST SERVICES

1. The authority citation for part 73 continues to read as follows:

Authority: 47 U.S.C. 154, 303, 334, and 336.

2. Section 73.3550 is revised to read as follows:

Sec. 73.3550 Requests for new or modified call sign assignments.

(a) All requests for new or modified call sign assignments for

radio and television broadcast stations shall be made via the FCC's on-

line call sign reservation and authorization system accessible through

the Internet's World Wide Web by specifying http://www.fcc.gov.

Licensees and permittees may utilize this on-line system to determine

the availability and licensing status of any call sign; to select an

initial call sign for a new station; to change a station's currently

assigned call sign; to modify an existing call sign by adding or

deleting an ``-FM'' or ``-TV'' suffix; to exchange call signs with

another licensee or permittee in the same service; or to reserve a

different call sign for a station being transferred or assigned.

(b) No request for an initial call sign assignment will be accepted

from a permittee for a new radio or full-service television station

until the FCC has granted a construction permit. Each such permittee

shall request the assignment of its station's initial call sign

expeditiously following the grant of its construction permit. All

initial construction permits for low power TV stations will be issued

with a five-character low power TV call sign, in accordance with

Sec. 74.783(d) of this chapter.

(c) Following the filing of a transfer or assignment application,

the proposed assignee/transferee may request a new call sign for the

station whose license or construction permit is being transferred or

assigned. No change in call sign assignment will be effective until

such transfer or assignment application is granted by the FCC and

notification of consummation of the transaction is received by the FCC.

(d) Where an application is granted by the FCC for transfer or

assignment of the construction permit or license of a station whose

existing call sign conforms to that of a commonly-owned station not

part of the transaction, the new licensee of the transferred or

assigned station shall expeditiously request a different call sign,

unless consent to retain the conforming call sign has been obtained

from the primary holder and from the licensee of any other station that

may be using such conforming call sign.

(e) Call signs beginning with the letter ``K'' will not be assigned

to stations located east of the Mississippi River, nor will call signs

beginning with the letter ``W'' be assigned to stations located west of

the Mississippi River.

(f) Only four-letter call signs (plus an LP suffix or FM or TV

suffixes, if used) will be assigned. However, subject to the other

provisions of this section, a call sign of a station may be conformed

to a commonly owned station holding a three-letter call sign assignment

(plus FM, TV or LP suffixes, if used).

(g) Subject to the foregoing limitations, applicants may request

call signs of their choice if the combination is available. Objections

to the assignment of requested call signs will not be entertained at

the FCC. However, this does not hamper any party from asserting such

rights as it may have under private law in some other forum. Should it

be determined by an appropriate forum that a station should not utilize

a particular call sign, the initial assignment of a call sign will not

serve as a bar to the making of a different assignment.

(h) Stations in different broadcast services (or operating jointly

in the 535-1605 kHz band and in the 1605-1705 kHz band) which are under

common control may request that their call signs be conformed by the

assignment of the same basic call sign if that call sign is not being

used by a non-commonly owned station. For the purposes of this

paragraph, 50% or greater common ownership shall constitute a prima

facie showing of common control.

(i) The provisions of this section shall not apply to International

broadcast stations or to stations authorized under part 74 of this

chapter (except as provided in Sec. 74.783).

(j) A change in call sign assignment will be made effective on the

date specified in the postcard acknowledging the assignment of the

requested new call sign and authorizing the change. Unless the

requested change in call sign assignment is subject to a pending

transfer or assignment application, the requester is required to

include in its on-line call sign request a specific effective date to

take place within 45 days of the submission of its electronic call sign

request. Postponement of the effective date will be granted only in

response to a timely request and for only the most compelling reasons.

(k) Four-letter combinations commencing with ``W'' or ``K'' which

are assigned as call signs to ships or to other radio services are not

available for assignment to broadcast stations, with or without the ``-

FM'' or ``-TV'' suffix.

(l) Users of nonlicensed, low-power devices operating under part 15

of this chapter may use whatever identification is currently desired,

so long as propriety is observed and no confusion results with a

station for which the FCC issues a license.

(m) Where a requested call sign, without the ``-FM,'' ``-TV'' or

``-LP'' suffix, would conform to the call sign of any other non-

commonly owned station(s) operating in a different service, an

applicant utilizing the on-line reservation and authorization system

will be required to certify that consent to use the secondary call sign

has been obtained from the holder of the primary call sign.

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PART 74--EXPERIMENTAL RADIO, AUXILIARY, SPECIAL BROADCAST AND OTHER

PROGRAM DISTRIBUTIONAL SERVICES

3. The authority citation for part 74 continues to read as follows:

Authority: 47 U.S.C. 154, 303, 307, and 554.

4. Section 74.783 is amended by revising paragraph (e) to read as

follows:

Sec. 74.783 Station identification.

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(e) Low power TV permittees or licensees may request that they be

assigned four-letter call signs in lieu of the five-character alpha-

numeric call signs described in paragraph (d) of this section. Parties

requesting four-letter call signs are to follow the procedures

delineated in Sec. 73.3550 of this chapter. Such four-letter call signs

shall begin with K or W; stations west of the Mississippi River will be

assigned an initial letter K and stations east of the Mississippi River

will be assigned an initial letter W. The four-letter call sign will be

followed by the suffix ``-LP.''

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[FR Doc. 98-34237 Filed 12-28-98; 8:45 am]

BILLING CODE 6712-01-P