FCC Set to Finalize ZoneCasting Rules, Sparking Debate Over Geo-Targeted Radio

The Federal Communications Commission (FCC) is preparing to vote on Nov. 21, 2024, on a proposal that would finalize rules allowing FM and LPFM broadcasters to use FM booster stations to originate localized programming through ZoneCasting. This move would shift the technology from a temporary experimental authorization—currently limited to three minutes per hour of geo-targeted content—to a permanent framework, creating both opportunities and challenges for the radio industry.

The Second Report and Order under consideration lays out several key measures. Broadcasters would be required to notify the FCC of any program-originating booster operations, while new procedures would be implemented to predict and prevent interference issues before boosters are built. To maintain balance, the FCC plans to cap the number of program-originating boosters at 25 per station, though GeoBroadcast Solutions (GBS) is advocating for flexibility and waivers in larger markets where more boosters might be necessary. The proposal also ensures protections for the Emergency Alert System, updates political advertising rules to reflect booster-originated programming, and requires broadcasters to certify that the technology is being used in the public interest. This certification would serve as a reminder that the technology should enhance service to specific communities rather than exclude others.

The industry response remains deeply divided. On one side, GBS and some advocates argue that ZoneCasting provides broadcasters with a new way to better serve local communities and diversify revenue opportunities. On the other, the National Association of Broadcasters (NAB), 49 state broadcast associations, and many of the country’s largest groups—including iHeartMedia, Audacy, Beasley, Cumulus, Salem, and Urban One—have voiced strong opposition. Critics argue the technology could cause interference for listeners, depress advertising rates, and disproportionately harm smaller and minority-owned stations. Midway Broadcasting, for instance, has warned that advertisers will not expand their budgets but instead redirect spending to wealthier neighborhoods, leading to reduced revenues for stations across entire markets. They argue this could spark an industry-wide “race to the bottom” on pricing, placing less-resourced broadcasters at a significant disadvantage.

GBS continues to push for additional flexibility, encouraging the FCC to consider waivers to both the 25-booster cap and the three-minute programming limit in cases where stations can demonstrate clear community benefits and minimal interference risks. The company frames these requests as a balanced approach, allowing stations to experiment with multiple local zones and deliver more meaningful service to their audiences.

The FCC’s upcoming vote represents a pivotal moment for ZoneCasting. If finalized, the rules could permanently change the way radio stations deliver content and advertising, allowing hyperlocal targeting that mirrors digital media strategies. Yet, with widespread opposition from major broadcasters and trade groups, the decision highlights an ongoing tension between embracing technological innovation and protecting the economic stability of an already challenged radio industry.

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Shelby HammondComment