In this letter to the editor, John Caracciolo responds to Jerry Del Colliano’s guest commentary, “An Outbreak of License Forfeitures.” Radio World welcomes letters to the editor on this or any story. Email [email protected].
Jerry, I think this article connects two issues that really aren’t related.
What it fails to point out is that many of the large groups now surrendering licenses helped create this problem years ago when they sold off their tower assets to companies like American Tower, SBA, Vertical Bridge and others.
Those transactions generated significant one-time cash infusions and looked great on the balance sheet, but they also replaced owned infrastructure with long-term lease obligations.
The tower companies then increased lease revenue, sold those assets at very high multiples, and the broadcasters were left paying rent that many marginal stations simply cannot support.
When a station is carrying an excessive tower lease, surrendering the license often becomes a financial decision driven by real estate costs — not because the FCC ownership rules are too loose or because the station itself has no value.
That has nothing to do with the need to “modernize” the ownership rules.
Broadcasters today compete against streaming platforms, podcasts, social media, YouTube, connected TVs, satellite radio and countless digital entertainment choices.
Yet we’re still operating under ownership restrictions that were written for a media landscape that no longer exists.
Let’s debate ownership reform on its own merits. If we want local broadcasters to remain competitive and continue investing in local news, weather, emergency information and community programming, then the rules need to reflect today’s marketplace — not the one from 30 years ago.
These are separate issues. One is the consequence of financial engineering and expensive infrastructure decisions. The other is the need to modernize broadcast regulation.
We shouldn’t cloud one with the other.
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