MMTC Supports Postponing FCC FM Auction
April 1, 2009 at 5:37 AM (PT)
The MINORITY MEDIA AND TELECOMMUNUCATIONS COUNCIL has submitted reply comments in the FCC's FM Auction No. 89 proceeding supporting MULLANEY ENGINEERING's proposal to postpone the auction for at least six months due to the present economic conditions.
The MMTC said, "A postponenent to a time when the economy has improved would yield greater economic returns for the Treasury, as well as more diversity. Access to capital has always been the primary stumbling block for minority media ownership. In the present economic environment, almost no equity or debt capital is available -– except from high net worth individuals -– to finance the acquisition and buildout of bare construction permits. In such an environment, minorities are especially disadvantaged, given the approximately 6:1 white/minority wealth gap that persists in this country. Indeed MMTC MEDIA BROKERS -- the only minority owned media brokerage in the UNITED STATES -- has been approached by only one minority entrepreneur interested in bidding on these allotments. Others have passed because no funding is available. This does not bode well for the success of this auction."
The MMTC also supported MULLANEY's proposals to increase discounts to new entrants from 35% to 60% and for broadcasters that own fewer than three facilities from 25% to 40%.; to require bidders who bid for an excessive proportion of the available allotments to place on deposit the Minimum Opening Bid for all of the allotments for which they bid; and to limit follow-up bids to be made within no more than six rounds following the initial bid.