FCC allows radio

FCC allows radio-station purchase

August 18, 2001

By Jim Mimiaga
Journal Staff Writer

The Federal Communica-tions Commission has rejected a statement of opposition filed by Four Corners Broadcasting that claimed California-based American General Media was forming a monopoly under a buyout initiated last year.

Winton Road Broadcasting, LLC, a subsidiary of American General Media, obtained radio stations KPTE and KDGO in Durango, KISZ in Cortez, and KRWN and KENN in Farmington from Clear Channel Communications in November.

But the sale was challenged by Four Corners Broadcasting’s assertion to the FCC that the Four Corners region was collectively one large market, and that AGM’s purchase would unfairly corner it.

AGM now controls about on-third of the regional radio-station market.

But the FCC ruled in AGM’s favor, and according to AGM, the agency ruled that the Four Corners region contains five individual markets, rather than one large one.

The radio-station cluster’s manager, Sara Olsen, stated in a press release that "we were confident that the FCC would be fair and just in their decision."

Four Corners Broadcasting general manager Ward Holmes disagreed with AGM’s interpretation that the ruling established each town as an individual market.

"It’s just the opposite," Holmes said, explaining that FCC has lately been redefining markets on a larger basis. He said he disagreed with the FCC’s decision but that its ruling would stand.

"AGM is not being completely accurate, because if the FCC were to say that Cortez, Durango and Farmington were individual markets, then that (the purchase) would be in clear violation of the rules," Holmes said. "There is no way they would grant them ownership of a town or market; they can’t."

FCC rules only allow a single entity to own a portion, less than 100 percent, of an individual market. AGM owns all three radio stations in Cortez, so the FCC ruling in the case does not define each town as a separate market as AGM said in its press release, Holmes said.

"If that were the case, they would have been denied" the right to control the Cortez market, he said.

The FCC is reassessing what defines market regions across the country, Holmes said, adding that in his opinion the ruling on this case reflects the FCC’s intention to define the whole Four Corners region as one market. That policy may work for more populated areas, but hurts rural areas with smaller populations that are more vulnerable to a monopoly situation, Holmes said.

"I do not want to come off as sour grapes, God Bless America and free enterprise, but what is concerning to us and a lot of people in the industry is the fact this is being allowed to go on in a lot of places where you do have one broadcast entity owning everything. You don’t have competition then," Holmes said.

AGM representatives did not return a phone call Friday.