Broadcast licensing is a crucial aspect of media regulation in the United States. The Federal Communications Commission (FCC) oversees this process, ensuring stations operate in the public interest and meet specific requirements before going on air.

The licensing system aims to maintain order in the airwaves and promote diversity, competition, and localism. From application processes to renewal procedures and content regulations, the FCC's role in shaping the broadcast landscape is both complex and far-reaching.

Licensing of broadcast stations

• The Federal Communications Commission (FCC) is responsible for licensing and regulating broadcast stations in the United States to ensure they operate in the public interest
• Broadcast stations, including radio and television, must obtain a license from the FCC before they can begin broadcasting
• The licensing process is designed to ensure that broadcasters meet certain standards and serve their local communities

FCC licensing requirements

• Applicants must demonstrate they have the financial, technical, and legal qualifications to operate a broadcast station
• Proposed stations must not cause interference with existing stations and must comply with FCC technical standards
• Applicants must show their programming will serve the needs and interests of their local community (ascertainment)
• Stations must comply with FCC rules on ownership, content, and public interest obligations

Application process for licenses

• Applicants file Form 301 with the FCC, providing detailed information about their proposed station and programming
• The FCC reviews the application to ensure it meets all requirements and is complete
• If approved, the FCC issues a construction permit allowing the applicant to build the station
• Once constructed, the station must file a license to cover application to begin regular broadcasting

Eligibility criteria for licensees

• Applicants must be U.S. citizens or domestic entities (corporations, partnerships, etc.)
• Applicants cannot have a history of FCC rule violations or felony convictions
• Multiple ownership rules limit the number of stations an entity can own nationally and locally
• Preferences may be given to applicants who would increase diversity of ownership (minorities, women)

Public interest obligations of licensees

• Stations must serve the needs and interests of their local communities through programming and outreach
• Stations must air programming responsive to community issues and maintain quarterly issues/programs lists
• Stations must provide reasonable access to candidates for federal office and equal opportunities for candidate appearances
• Stations must comply with rules on children's programming, indecency, sponsorship identification, and other content regulations

License terms and renewals

• Broadcast licenses are granted for set terms and must be periodically renewed
• The renewal process allows the FCC to review a station's performance and compliance with rules
• Interested parties can file petitions to deny renewal based on a station's alleged failings

Length of license terms

• Radio broadcast licenses are issued for 8-year terms
• Television broadcast licenses are issued for 8-year terms
• Licenses automatically continue while a timely renewal application is pending

Renewal application process

• Stations must file Form 303-S four months prior to expiration of license term
• Renewal application must include certification of compliance with FCC rules and public interest obligations
• FCC reviews renewal applications and any petitions to deny filed by interested parties
• If approved, the FCC grants a renewal for another full license term

Factors considered in renewals

• The FCC assesses a station's overall record of compliance with FCC rules during the preceding license term
• The FCC considers whether the station has served the public interest through its programming and community outreach
• The FCC gives weight to any petitions to deny or informal objections filed by listeners or viewers
• Serious rule violations or a pattern of abuse can lead to denial of renewal

Challenges to license renewals

• Interested parties can file petitions to deny renewal, alleging the station has failed to serve the public interest or violated FCC rules
• Petitions to deny must be filed by the first day of the last full calendar month of the license term
• Stations have an opportunity to file an opposition to the petition, and the petitioner can then reply
• If the FCC finds substantial and material questions of fact, it will designate the renewal for hearing

Ownership restrictions

• The FCC limits the number of broadcast stations an entity can own both locally and nationally
• Ownership restrictions aim to promote diversity, competition, and localism in broadcasting
• Rules vary depending on the type of station (radio or TV) and the size of the market

Local vs national ownership caps

• In radio, an entity can own up to 8 stations total in the largest markets, no more than 5 in the same service (AM or FM)
• In television, an entity can own up to 2 stations in the largest markets, as long as both are not among the top four rated
• Nationally, an entity can own radio stations with a total audience reach of 39% of U.S. population
• The national TV ownership cap was eliminated in 2017, but the FCC still prohibits owning stations reaching more than 39% of households

Cross-ownership rules

• Historically, the FCC restricted cross-ownership of newspapers and broadcast stations in the same market
• The newspaper-broadcast cross-ownership ban was eliminated in 2017
• Radio-television cross-ownership is allowed up to a certain number of stations depending on market size

Minority and female ownership

• The FCC has at times adopted policies to encourage minority and female ownership of broadcast stations
• Tax certificates were offered for sales to minority buyers until the program was eliminated by Congress in 1995
• The FCC currently has no specific policies to promote minority and female ownership but considers diversity in certain proceedings

Content regulation by FCC

• The FCC has authority to regulate broadcast content in certain areas to serve the public interest
• Content rules aim to protect children, provide political candidates access, and limit indecent material
• Broadcasters have First Amendment protections but less than other media due to the public airwaves

Obscenity and indecency rules

• Obscene material is prohibited at all times on broadcast stations
• Indecent material (sexual or excretory references) can only air from 10pm-6am safe harbor hours
• The FCC can issue fines for violations but must first give stations notice of the material it considers indecent

Political broadcasting rules

• Stations must provide reasonable access to candidates for federal office to purchase advertising time
• If a station allows one candidate to appear, it must offer equal opportunities to opposing candidates (with some exceptions)
• Stations cannot censor ads by candidates but can limit ads by issue groups

Children's television requirements

• The Children's Television Act requires stations to air at least 3 hours per week of educational/informational programming for children
• Stations must limit the amount of advertising during children's programming to 10.5 min/hour on weekends and 12 min/hour on weekdays
• The FCC reviews compliance with children's programming rules at license renewal

Sponsorship identification

• Stations must disclose when content has been paid for and by whom
• Sponsored content can include ads, paid product placements, and material furnished by outside parties
• Disclosure must occur at the time of broadcast and identify the sponsor by name

Changes in station ownership or control

• Broadcast licenses cannot be bought or sold, only the assets of a station
• Stations must obtain prior FCC approval for assignments or transfers of control of the license
• The FCC reviews whether ownership changes comply with its rules and serve the public interest

Assignment of license

• An assignment is the transfer of a station license from one party to another
• The proposed new owner must file Form 314 and demonstrate its qualifications to be a licensee
• Assignments are subject to the same ownership restrictions and public interest analysis as new licenses

Transfer of control

• A transfer of control is a transaction that results in a new entity gaining control of the licensee
• Control can be voting (de jure) or actual (de facto) and includes transfers of majority stock interest
• Transfers of control require prior FCC approval using Form 315

Public notice requirements

• The FCC requires a station to give public notice of a proposed assignment or transfer of control
• Notice must be broadcast on the station and published in a local newspaper
• The public has 30 days from the last notice to file petitions to deny the application

Sanctions for rule violations

• The FCC has various tools to address violations of its broadcast rules and regulations
• Sanctions aim to punish and deter misconduct while giving stations a chance to come into compliance
• Serious or repeated violations can lead to loss of license

Fines and forfeitures

• The FCC can impose monetary penalties (forfeitures) for violations of its rules
• The base amount varies by violation and is adjusted for factors like the degree of harm and intent
• Stations can either pay the fine or contest the notice of apparent liability

Short-term license renewals

• For less serious violations, the FCC may grant a shortened license renewal (2 years instead of 8)
• The shortened renewal acts as a probationary period for the station to improve compliance
• Further violations during this period can lead to sanctions or designation for hearing

License revocation proceedings

• In extreme cases of repeated or willful violations, the FCC can revoke a station's license
• The FCC issues an order to show cause which initiates a hearing before an administrative law judge
• The station has a chance to present evidence and testimony to contest the grounds for revocation
• If the FCC finds revocation unwarranted, it can renew the license for a full term or a shortened period

Future of broadcast licensing

• Broadcast licensing faces various challenges and potential changes in the digital era
• Developments in technology, competition, and public policy may reshape the licensing process
• Key issues include spectrum scarcity, digital platforms, and the public interest standard

Spectrum reallocation issues

• Broadcast stations have traditionally used public airwaves to transmit signals
• Demand for spectrum from wireless providers has led to reallocation of some broadcast frequencies
• The FCC has conducted incentive auctions to repurpose broadcast spectrum for mobile broadband use
• Remaining broadcasters have had to relocate to different channels or share spectrum with other stations

Transition to digital broadcasting

• Television broadcasters completed a transition from analog to digital transmission in 2009
• Digital broadcasting allows for higher quality picture and sound and more programming options
• The transition freed up spectrum for wireless use but required viewers to obtain new TVs or converter boxes
• The FCC has considered allowing broadcasters to use digital subchannels for non-broadcast purposes

Calls for deregulation vs public interest

• Some argue that broadcast licensing and content rules are outdated in an era of media abundance
• Proponents of deregulation say market forces can ensure programming diversity and quality
• Others contend that public interest obligations remain vital given broadcasting's unique accessibility and influence
• The FCC under different administrations has shifted between regulatory and deregulatory approaches
• The future balance between market and public interest concerns in broadcast licensing remains contested