FCC OKs 100% Foreign Ownership Of Stations

The FCC has given permission for husband and wife Australian citizens Richard and Sharon Burns, who own 20% of a radio broadcaster, to become 100% owners.

For many years, Section 310(b)(4) of the Communications Act limited foreign ownership in a broadcast licensee to 20% of the company’s stock, and no more than 25% of a licensee’s parent company stock. Until just a few years ago, proposals to exceed those caps were viewed as having little chance.

However, in September 2016, the FCC released an order extending the same foreign ownership flexibility currently applicable to common carriers. Under this approach, and with a few broadcaster-specific changes, broadcasters can file petitions for declaratory ruling with the FCC to seek authority to have up to 100% foreign ownership, among other things.

On Thursday, the commission granted the Burns’ request that their Frontier Media to be allowed to purchase the remaining 80% of shares in four companies that own KGTW-FM Ketchikan and KINY-AM Juneau, both Alaska; and KCMC-AM Texarkana and KTOY-FM Texarkana, both Texas.

In its filing requesting the decision, Frontier said its ownership would strengthen investment in broadcasting (in Alaska in particular) and ensure continued service in the affected communities. In addition, it emphasized the Burns’ long involvement in civic and commercial activities in Juneau, and Richard Burns’ management of the Alaska stations as CEO since 2006 and the Texarkana stations since 2013.

In its decision approving the request, the FCC noted that their petition was unopposed and said that “we find that the public interest would not be served by prohibiting the foreign ownership of Frontier, as the ultimate controlling U.S. parent.”