NTC sets limit on number of 500-watt FM stations

To protect existing FM radio broadcast stations from the continued proliferation of lower power stations that are threatening the former’s viability, the National Telecommunications Commission (NTC) is limiting the number of 500-watt FM stations to only 200 nationwide and 30 per region.

The commission has also come up with a list of specific areas in the country where new lower power FM stations can be put up.

NTC records show that 139 of this type of radio broadcast stations have been duly authorized and are already in operation. "Inasmuch as there is still a considerable number of applications for this type of radio service that remain pending before this commission, there is a need to rationalize the grant of additional 500 watt radio stations," the commission said in issuing Memorandum Circular 02-06-2006.

The Kapisanan ng mga Brodkaster sa Pilipinas (KBP) earlier expressed concern over the impact on the economic viability of existing radio broadcast stations with the entry of this new type of FM radio broadcast service.

According to the KBP, alternative forms of advertising, such as the Internet and billboards, are already inching their way into the advertising revenue pie so that the introduction of a new type of radio service may further impact on the viability of radio broadcast networks.

On the other hand, proponents of this new classification of FM radio service cited the advantages of operating community-based radio broadcast stations that focus on local or community news and programming.

They added that this new type of broadcast service would afford broadcast operators lower cost in operating and maintaining radio stations in areas of low revenue potential such as the unserved and underserved areas.

The NTC emphasized that it is well aware of the highly competitive situation in the broadcast industry and is thus mindful of the need to rationalize the establishment of 500-watt FM radio stations.

The continued viability of existing FM radio stations remains a primary concern of the NTC and the commission identified "established service areas" and limited the operation of low power FM stations outside of these areas.

As defined, "established service areas" are areas where class "A" or class "B" FM stations are already in operation. "With this proviso, the entry of new low power FM stations would not encroach into established broadcast areas which may result in ruinous competition with existing radio stations," the NTC noted.

The new NTC circular likewise limited the total number of 500 Watt FM radio stations that can be established nationwide to a maximum of 200 stations only to avoid saturating the market and thereby threatening the viability of existing FM radio stations.

The NTC added that the cap would ensure that protection ratios on the assignment of frequencies are strictly observed, noting that the radio spectrum is a finite resource and that there is a limit to the number of frequency assignments that can be made. "Nevertheless, the commission may, in the future, opt to review the cap set by this memorandum circular, as the circumstances warrant," it said.

Noting that low power FM radio stations are intended to cater to the un-served and underserved areas in the country, the MC provides that low power FM (LPFM) radio stations shall be established in pioneering areas, and that only a maximum of 30 of this type of radio stations may be put up in any particular region.