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Mutually Exclusive Applications & Time Sharing

Overview

When the FCC has a filing window, there's a possibility that two or more applicatons were filed that would not be able to be granted because each application would specify facilities that would conflict with each other. These applications are referred to as "mutually exclusive" or "MX" for short. To address these situations, the FCC has put procedures in place to process these applications.

Special circumstances where MX applications can be dismissed

There are two circumstances where a mutually exclusive application can be dismissed by rule:

Student-run LPFM Station - An LPFM station that will be licensed to an educational institution that also has full power broadcast holdings may hold an LPFM license if the full power station is not student ran and the low power station will be. In addition, the LPFM application must not meet any competing applications. (See 73.860(b))

Traveler's Information Service - Public safety users can waive the ownership limit rules for LPFM stations as long as each station is located within their juristiction and the applications do not meet any competing applications. Public safety users can designate a single "priority" application that would not be automatically dismissed but will more forward in the MX resolution process. (See 73.855(b)(4))

The Point System

When the FCC declares that a group of applications are MX, they will use a point system to determine the most qualified applicants. Points are earned as follows:

Established Community Presence - For a period of at least two years prior to the filing window, organizations that have at least 75% of it's board members living within 10 miles of the proposed transmitting antenna.

Proposed Operating Hours - If granted for a full time station, the applicant pledges to be on the air at least 12 hours a day.

Local Origination - Applicant pledges to originate at least 8 hours a day of local programming. Local programming is considered produced within 10 miles of the transmitting antenna.

Time Sharing

When more than one organization wants to use a channel, the best sharing arrangement is a time share agreement. In this agreement, each party to the agreement will have specific times of the day that they will broadcast. Each time share proponent must propose at least 10 hours a week.

Universal Settlements

When the FCC declares which applications are mutually exclusive, a universal settlement can be reached between all of the proponents in the MX group. These universal settlements can be filed at any time.

Settlement Windows

If a universal settlement can not be reached, the FCC will open up a settlement window among all equally qualified members of the MX group (see "The Point System" above). During this settlement window, the FCC will allow partial time share agreements by allowing each party in an agreement to aggregate their points. For example, let's say we have a MX group of 3 applicants, each claiming 3 points. Two of the three stations reach a settlement agreement within this window. The FCC give that group 6 points and the other applicant will have their 3 points. The 6 point group will beat the 3 point application therefore the applicant who did not reach a settlement agreement would be dismissed.

Successive License Terms

When after a settlement opportunity has been given and there is still a tie for the most qualified applicant, the FCC will declare a tie and grant construction permits to all parties.

Once the station is built, the license will be granted for a portion of the 8 year license based on the number of applicants in the tie. For example, if there were two different groups, each group would get a 4 year license. When each station can go on the air is based on when their full license is granted.

Successive licenses are NOT RENEWABLE.

LPFM applicants reaching this point run the risk that once they build their station, they may have to wait up to 7 years before they can broadcast.

If after a settlement window, there are more than 8 equally qualified applicants, the FCC will find the 8 most qualified applicants based on how long the organization has been established. If there are still over 8 equally qualified applicants, the FCC will dismiss the entire group.

Resources

FCC rules regarding time sharing can be found in 73.872.

Information about current time sharing agreements can be found on the Time Share Report.

 
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