FCC Assesses Interim Default Payments Against Four FM Auction Bidders

Payments Wanted

The FCC has assessed an interim default payment against NASSAU BROADCASTING HOLDINGS, INC. after the company failed to prosecute two winning bids in FM Auction 37, held in 2004. NASSAU won the bidding for new FMs in JEFFERSON, NH and HARDWICK, VT and made the down payments, but failed to respond to requests for environmental compliance information, leading to the dismissal of its applications and triggering of the interim default payment provision (3% of the winning bid or the actual winning bid, whichever is lower). 

The Commission is taking $49,230 from NASSAU's $328,200 down payment for the interim default payment and will determine exactly how much more the company owes once a final winning bid is established.  NASSAU BROADCASTING went bankrupt in 2011 and sold off its stations in 2012.

The Commission also took an interim default payment from the down payments submitted by BLACK ENTREPRENEURS ASSOCIATION, INC. for failure to prosecute its winning bid in FM Auction 94 in WICKENBURG, AZ, and from EFRAIN O. SAILLE for his bids for COTULLA and PRESIDIO, TX.  And ACE RADIO CORPORATION was hit with an interim default payment assessment for its bid for a new FM at MERTZON, TX in FM Auction 62.

In another action, the Commission is seeking comment on a petition by CANAL PARTNERS MEDIA, LLC seeking a declaratory ruling stating that broadcasters’ use of the Last-In-First-Out (LIFO) method to preempt political candidate ads in favor of commercial spots  purchased earlier in time violates the Communications Act of 1934.  The petition also asks that stations using LIFO treat political candidates as being the First-In advertiser no matter when the candidate bought the ads.  Comments are due MARCH 2nd with replies due MARCH 17th.

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