Buying worthless AM stations to get an FM signal

This seems to be trend

http://radioinsight.com/blog/netgnomes/32625/amp-radio-coming-to-danville-va/

The FCC changed the rules and explicitly is encouraging AM stations to acquire an FM translator for their stations.   Up until the rules clarification, translators had to be on the same band – now an AM station can buy or lease an FM translator license and shift the AM station’s identity to the FM band.   The AM station can’t shut down – the FM translator is there to “repeat” the AM signal on the FM band.

I’m not picking on the above example, but it is the most blatant.   There are a lot of non-viable AM radio stations out there in small markets.   By buying them, the new owner gets the right to operate the FM translator (assuming a frequency is available and they can buy a license) – often from a non-commerical religious network that doesn’t really need it anymore if the price is right.

This trend is probably being sped up by Congress last year pushing through liberalization of the rules to creation of new LPFM stations (LPFM is Low Power FM – a very local station with a maximum of 100 watts).    Translators and LPFMs will have equal status on open areas – which means “who was here first” is important.

At some point, those AM stations are just going to be turned off and nobody will notice.   I expect at some point that will become a new policy – that an AM+FM translator can surrender the AM license and convert the FM translator to a class A FM station.

So if you’re in the radio wheeling and dealing business, there is an idea for you.  I know a guy in Southfield Michigan who might have a few for sale.

About Art Stone

I'm the guy who used to run StreamingRadioGuide.com (and FindAnISP.com).
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