When it comes to pirate-hunting, the FCC’s off to a relatively sedate start in 2018. The total number of enforcement actions reported so far for January stands at 15, which is six more than were reported in 2017, but equal to the number reported in 2016, the final full year of previous (Democratic) chairman Tom Wheeler’s tenure. So far this month there have been eight actions, as opposed to 11 in February 2017 and 12 in February 2016.
Many of these cases originated last year. The most notable at present is the case of “Gerlens Cesar,” who was sent a Notice of Unlicensed Operation earlier this month for operating four pirate stations on two FM frequencies in Boston and its surrounding suburbs. Interestingly, a principal by the name of “Cesar Gerlens” has already run afoul of the FCC – having received multiple visits and warning-letters in the latter half of last year – some of which named additional collaborators – for operating unlicensed stations in the Boston area.
I e-mailed the chief of the FCC’s Enforcement Bureau, Rosemary Harold, to ask about this apparent discrepancy: had the agency mistakenly transposed the first and last names of the principal in this case, or are there two distinct individuals who just happen to share identical name-elements working in Boston? So far, no response, but also no correction from the agency. In any case, Cesar Gerlens/Gerlens Cesar seems a likely candiate for a negotiated forfeiture-settlement similar to the one worked out with a prolific pirate in Florida last moth, if/when the agency consolidates the information gleaned in this case. Continue reading “FCC Getting Shady With Anti-Pirate Enforcement?”
Month: February 2018
iHeartMedia Bankruptcy Reorganization Imminent
After spending several years shuffling money between subsidiaries (including creating new ones to raise/preserve capital) and playing footsie with creditors holding more than $20 billion dollars of its debt, iHeartMedia, the nation’s largest radio conglomerate, skipped a scheduled $106 million interest payment on some of its loans earlier this month, triggering a 30-day default-clock. iHeart is portraying this move as something done to increase its leverage over creditors, who might be compelled to agree to new terms and avoid restructuring – but this is precisely what tripped Cumulus Media into Chapter 11 bankruptcy late least year.
None other than the Wall Street Journal calls what’s likely to happen between now and March 3 a “costly reckoning.” If iHeart follows the Cumulus bankruptcy model, preferred (institutional) investors will get a greater share of the restructured company, while others will lose everything. The firms who took iHeart private last decade may not be compensated at all in restructuring, but the WSJ reports that they’ve already “managed to offset virtually all of the potential loss of iHeart’s equity,” and will generally be able to walk away after more than doubling the company’s debt in the buyout process. Continue reading “iHeartMedia Bankruptcy Reorganization Imminent”
HD Radio Still in Stasis, But Has New Friend at FCC
2017 came and went with no great movement in the HD Radio space. According to FCC records, fewer than 2,000 FM stations have received authorization to broadcast in HD, which represents an adoption rate of 15% – a number that has not changed significantly during this decade.
On the AM side, although some 240 stations (5%) are authorized to broadcast in HD, this curated list shows that about half of them have abandoned the protocol. Penetration of HD receivers into the automotive space remains at just under half of all new cars sold in the United States and there’s still no meaningful market for non-automative portable receivers.
Yet the broadcast industry would rather you believe that HD is thriving. A new “e-book” from the folks at Radio World, New Directions for HD Radio, contains useful information about ways to optimize the system, including making sure that the analog and digital signals are properly time-aligned, the necessity of seamless audio processing across the airchain, and National Association of Broadcasters effort to standardize the broadcast of metadata on HD signals. One would think those core operational principles would’ve been hammered out nearly twenty years ago when the technology was first authorized for deployment, but it was more important to the industry to make a digital beachhead on the airwaves than it was to deploy something that worked out of the box. Continue reading “HD Radio Still in Stasis, But Has New Friend at FCC”