FCC Auction Promises Bonanza for Small TV Broadcasters

The Federal Communications Commission recently set opening prices for an auction of airwaves it gave away to many local TV stations across the country more than half a century ago. And soon, broadcasters have to decide if they want to join the auction that will let wireless carriers acquire those station rights for tens of billions of dollars.

The process gives small TV stations a chance to cash out just as their business faces challenges from online video, wireless services and shifting audience behavior. After multiple delays, the process is expected to begin in March. Nearly 2,000 stations across the country could join the auction to sell their broadcasting licenses. In giant media markets like New York City and Los Angeles, the bidding will start out high. One station broadcasting in Manhattan, an affiliate of Telemundo, has an opening bid of $900 million. But smaller cities may hit the jackpot, too. In Lima (OH), the first—and maximum—offer for its most-watched station is about $110 million.