FCC Auctioning Construction Permits

[mel]

FCC Auctioning 10 Hawaii State FM Frequencies

The Federal Communications Commission will be auctioning off the rights to build 10 new FM stations in the islands on November 3. Several companies will be vying for the frequencies including stalwarts such as Visionary Entertainment LLC (owners of several stations on Oahu, Kauai and Maui), Big Island Broadcasting Inc., owner of Hilo's KHBC AM, and Cumulus Media Inc., a media firm that wants to enter the market.

More Details at This Link

Isn't Hawaii's radio dial crowded as it is already? Do we need more radio stations?

[adrian]

Re: FCC Auctioning Construction Permits

Maybe there could be a "no advertising" station, where they play "all kinds of music" all day w/out no pauses, ranging from local, to AC, to hip hop/R&b, rock, etc.

Or is that a bad idea?

[pzarquon]

Re: FCC Auctioning Construction Permits

How exactly would you pay for such a station?

As for whether Honolulu's radio dial is too crowded... believe it or not, I'd say no. I mean, the size of our market will probably dictate how many stations we can support, since we don't have cross-country commuters driving through or anything, but I've been in cities of comparable size with many, many more FM broadcasters than what we've got. Especially when you have larger geographic areas, you even have more than one station on the same frequency, and will find your music or talk change as you move from one area to another.

We probably won't see that, but we have lots of gaps between frequencies now that could accommodate more stations. The thing is, we don't have altogether that many ears to reach. As long as satellite radio remains out of reach, though, at least radio broadcasters here don't have to fight that battle.

[IBadget]

Re: FCC Auctioning Construction Permits

I think there may be room for Radio Free Hawaii, Smooth Jazz, and other missing formats because of the FCC auctioning.

[mel]

Re: FCC Auctioning Construction Permits

If a new conglomerate moves into the market and gets some of those frequencies, more than likely we'll end up with similar formatted stations as we have now as the new guy will try to take on the established players in the market. So probably we'll end up with more places to listen to the same Celine Dion and 50 Cent songs depending on what kind of format is adopted.... but all of this is down the line. This is construction permits only and it takes time to put something up.

[mel]

Re: FCC Auctioning Construction Permits

FCC Frequency Auction is On

Visionary wants to buy more stations in Hawaii. From Erika Engle's column this morning:

HAWAII broadcaster John Detz does not keep regular hours. Not with an auction of new FM radio licenses that started at 3 a.m. yesterday by the Federal Communications Commission.

[pzarquon]

Re: FCC Auctioning Construction Permits

What an interesting story. $336,000 for a site in Nanakuli, whereas a site in Wyoming went for $2,100? (Though I'm pretty sure the potential audiences are proportional to the prices.) And a company called "Kona Coast Radio"... based way out there?

For what it's worth, according to Dataworld, these are the Hawaii frequencies and sites up for "FCC Auction 37" (which required registration in September):

LOCATION      FREQ   CLASS  PAYMENT   APPS
CAPTAIN COOK   93.1  C1      $70,000  61
HAIKU         106.5  C      $125,000  61
HANAPEPE       94.3  C1      $70,000  61
HOLUALOA       92.1  C2      $35,000  62
HONOKAA       102.9  C2      $25,000  67
KAUNAKAKAI    102.3  C      $200,000  59
KIHEI         107.5  C2     $125,000  58
KURTISTOWN    102.1  A       $70,000  59
NANAKULI      106.9  A      $200,000  65
WAHIAWA       103.5  A      $200,000  63

The biggest prices were for the Nanakuli (FM106.9) and Wahiawa (FM103.5) licenses. Check it out, Mel! Honokaa may get a broadcaster at FM102.9!

[mel]

Re: FCC Auctioning Construction Permits

Honokaa already has 2 radio stations. Plus we can pick up a bunch of others from Maui and sometimes Oahu (need long antenna or good positioning of your radio). The radio stations already broadcasting from Honokaa are either automated (KJHI LP) or just an extension of a transmission from Hilo (KKBG). I don't think the community is large enough to support a standalone station since the potential advertising base in the immediate area is quite small. More than likely if someone gets that Honokaa frequency, they'll just use it to put up a tower and then broadcast from a different market... perhaps another relay from Maui.

[mel]

Re: FCC Auctioning Construction Permits

And the FM auction continues....

From Erika Engle's article this morning:

Maui-based Visionary Related Entertainment LLC, the only local company in the running, is bidding $165,000 for a license in Kurtistown on the Big Island.

Kurtistown.... that's a major market.

Scroll down to read about this here. (click)

[frank]

Re: FCC Auctioning Construction Permits

Kurtistown is currently at $242,000, Capt. Cook is at $342,000 next round opens in about 10 hrs. From what we've heard, the final prices could be in the $500,000-$700,000 range when all is said and done.

FYI, Kurtistown reaches the Hilo Market with nearly 72% of the entire 18-49 Big Island population... Capt. Cook will reach the Kona market.

Some Maui frequencies are in the nearly 1.5 million price range already, and that's without as much of a population base to generate revenue from.

The two frequencies up on Oahu are at nearly 2 million already.

Keep in mind this is just for the piece of paper that says it's ok... No equipment, no tower, no location, no staff, no history...

Owning a station "ain't cheap".

Aloha,

Frank

[mel]

Re: FCC Auctioning Construction Permits

I think the Maui stations wherever they may be located have the potential to reach many parts of the Big Island and other nearby islands. I know when I am on the Kona side, several Maui FMs come in very clear. I know some of them even ran ads for businesses in Kona.

[frank]

Re: FCC Auctioning Construction Permits

Aloha Mel,

A big reason for at least one of the Maui stations having a strong Kona signal is that it is actually licensed to the Big Island. Q-103 managed to get approval to have their transmitter on Maui for a clearer reach into Kona. As a result their coverage area is greatly enhanced. They mostly sell Maui, but have stepped up their efforts to land B.I. business as well.

The others get a bit of bleed into certain areas, but few if any, have large consistent reach, making it a rough sell outside of Maui.

Some of the Oahu stations reach parts of the Kona side of the island. One has a repeater there...

I suspect the major valuation of the Maui CP's is based on the potential tourism related marketing. But who knows?...

It's interesting to see the prices that are being bid over there. Check out the players, it's definitely not a home court advantage.

On the Big Island... With the next round getting ready to open, Capt. Cook is already over $400K and Kurtistown is on the brink of jumping past the $300k mark. Scuttlebut on the street has a lot of folks expecting those signals to go past $500k and $400k respectively today. Pure speculation...

On Oahu, the 2-mil barrier looks to be shattered in this round. One signal is already there...

Aloha,

Frank

[NewGuy]

Re: FCC Auctioning Construction Permits

Well, Auction 37 is finally over. The bidding for CPs was incredible. The bidding seemed to be led by the proverbial drunken sailors. Notwithstanding this, it appears I was the high bidder for the Holualoa CP for 92.1. I just wanted to say hello here to everyone. Once we get the CP officially, we'll be touring for good tower sites and considering sharing a tower with an existing FM station.

I am still attempting to digest information about all the other stations on the big island in creating a business plan. With 4 more stations coming to the island (Big Island Radio seems to be back in the business and got Captain Cook, Visionary got Kurtistown, and Chaparral got Honokaa) it will be even more interesting and important to do my homework. Part of that homework is reading everything I can about the market, as well as the FCC rules.

Happy Thanksgiving.

[frank]

Re: FCC Auctioning Construction Permits

Aloha New Guy,

Congratulations and welcome to the Big Island. it's a very exciting market with a lot of growth on the horizon.

Aloha,

Frank

[Ty Lee]

Re: FCC Auctioning Construction Permits

Well, being that there's more station getting ready to open on the Big Island, is there enough advertising money to keep all happy or will this turn into a real AE battle for the shrinking buck?

What do you think?

TY