Broadcasters hoping to launch a new FM station have deadlines to work with. The FCC has finalized bidding procedures for the sale of 132 FM construction permits nationwide, confirming a September application window for a previously announced February start.
The procedures resolve issues raised after the FCC first announced the February 2 auction in May, when Chairman Brendan Carr called it “another step toward expanding opportunities for new voices and strengthening competition in the radio marketplace.”
Short-form applications must be filed electronically between September 14 and 30. Upfront payments are due by December 3, followed by a mock auction on January 29 and real bidding starting February 2, 2027. For the first time in a broadcast auction, applicants will file through the FCC’s newer Auction Application System rather than the platform used in past FM sales.
Of the 132 permits on offer, 99 have never previously been available; the remaining 33 went unsold or defaulted on in earlier auctions. Applicants without other media holdings get a bidding advantage: a 35% discount off the winning bid if they have no attributable interest in any other station, or 25% if they hold interests in three or fewer. No discount applies if the bidder already owns four or more stations, or if one of their existing stations covers the same area as the permit up for bid.
As in most recent FCC spectrum sales, bidder identities remain confidential until after the auction closes, a policy meant to prevent rivals from retaliating against each other’s bids or dividing up markets. Winning bidders who back out face a deficiency payment plus a penalty equal to 20% of their bid, and must post a down payment of 20% of their net winning bid within ten business days of the closing notice.
Turnout at FM permit auctions has swung widely before. Auction 37 drew 697 applicants for 288 permits, while the most recent comparable sale, 2021’s Auction 109, drew just 158 applicants for 139 permits. Based on that history, an average of 1.7 applications per permit, the FCC projects this auction could draw between 130 and 260 applicants. Among licensed AM and FM station groups nationally, 99.38% qualify as small entities under the SBA’s $47 million revenue threshold.
