Posted on: Wednesday, June 4, 2003

FCC rules not likely to affect Isle radio

By Sean Hao
Advertiser Staff Writer

New Federal Communications Commission rules covering the radio industry aren't likely to affect existing Hawai'i stations, but could make it harder for out-of-state companies to buy up local stations.

This week the agency announced plans to redefine radio market boundaries, but left intact current limits on station ownership. The redefinition of markets isn't expected to change ownership rules in Honolulu, where no one company can own more than seven radio stations, but it could have an impact on the Neighbor Islands, local radio executives said.

Companies won't have to sell stations should they end up owning more than are allowed in redefined markets. But the new rules would make it more difficult for a company to step into Hawai'i and purchase a bunch of stations, because they require buyers of any stations adhere to the new caps, said Chris Leonard, general manager for New West Broadcasting, owner of three Big Island radio stations.

"I think it will make it harder for a new company to come into the islands and buy a big group" of stations, Leonard said.

Of the 40 or so radio stations on O'ahu, seven are owned by Clear Channel Communications, four by Cox Radio Hawaii and four by New Wave Broadcasting. None of these companies exceed current ownership caps.

The implications of the new market definitions may be more directly felt in the smaller markets, said Jeff Coelho, general manager for Maverick Media Hawaii, which owns three O'ahu stations.

For example, Pacific Radio Group owns five radio stations on Maui and is acquiring an additional five stations from Maverick Media on the Big Island. Although it's still unclear how and if the new rules apply, it's possible that Pacific Radio's ownership could exceed caps in those markets.

Questions about the FCC changes were referred to Chuck Bergson, president of Kahului-based Pacific Radio Group, who was unavailable for comment yesterday.

Other FCC changes could make it easier for the cross-ownership of radio stations and newspapers, Coelho said. However, much is still unknown about the rules, which will likely be challenged in court, he said.