FCC expected to propose dropping UHF discount from TV ownership caps

The Federal Communications Commission is expected to propose eliminating a key component of its television ownership rules that could have significant implications for broadcasters.

Under review is the value the FCC puts on a UHF signal compared to a VHF signal when determining whether a broadcaster is in compliance with the regulatory agency's television station ownership rules. Currently, FCC rules prohibit a broadcaster from owning television stations that reach more than 39% of the United States. However, in determining reach, a UHF signal -- which is allocated to channels higher than 13 -- is valued at 50% of a VHF signal. For example, a VHF signal in Los Angeles counts as 4.92% toward the national cap while a UHF signal counts for just 2.46%. If the FCC does eliminate the UHF discount, it would probably slow the fast rate of consolidation in the television industry. Without the discount, some broadcasters would already be over the FCC's caps and others pushing up against it and would probably be unable to buy more TV stations without exceeding the limit.