FCC Announces Plans for 2027 Auction of FM Broadcast Station Construction Permits

For the first time since 2021, the Federal Communications Commission (“FCC” or “Commission”) has released a Public Notice announcing plans to conduct Auction 114, offering construction permits for 132 full-power FM broadcast stations in markets throughout the U.S.  Bidding is tentatively scheduled to begin on February 2, 2027, and the Commission is seeking comment on the proposed auction competitive bidding procedures for Auction 114.  Comments on the Public Notice are due June 9, 2026.  Reply comments are due June 24, 2026.  

Construction Permits to be Offered in Auction 114

Auction 114 will offer 132 FM broadcast construction permits, including 33 construction permits that were offered but not sold or were defaulted upon in prior auctions. The Auction 114 FM broadcast construction permits are distributed across 36 states and territories, with the largest concentrations in Texas, Colorado, Wyoming, Arizona, California, Oklahoma, Hawaii, Louisiana, and Missouri markets.  

The specific vacant FM allotments, along with their reference coordinates, are listed in Attachment A to the Public Notice.  

Key Considerations for Potential Bidders

Prospective bidders should pay particular attention to the following proposed requirements and procedures:

• Short-Form Application (FCC Form 175) – Under the FCC’s part 1 and part 73 competitive bidding rules, all prospective bidders must submit a short-form application (FCC Form 175), which includes ownership details and other required certifications.¹
• Upfront Payments and Bidding Units – The FCC proposes requiring upfront payments as a condition of bidding eligibility.  These payments function as refundable deposits that establish a bidder’s eligibility level.  The Commission seeks comment on the proposed upfront payment amounts listed in Attachment A.  The FCC also proposes to assign each construction permit a specific number of bidding units, equal to one bidding unit per dollar of the upfront payment listed in Attachment A. 
• Minimum Opening Bids and Reserve Prices – The FCC seeks comment on whether to establish minimum opening bids and/or reserve prices, taking into account factors such as service type, facility class, market size, population coverage, and recent transaction data.  Proposed minimum opening bids are set forth in Attachment A.  
• Default Payment Obligations – Winning bidders that default or are disqualified after the close of an auction are subject to FCC default payment rules.²  These include: (1) a deficiency payment (the difference between the original winning bid and the subsequent winning bid for the same permit); and (2) an additional payment based on a percentage of the applicable bid.  For Auction 114, the Commission hopes to deter winning bidder defaults by proposing an additional default payment of 20 percent of the relevant winning bid.
• Bidding Credits for New Entrants – Broadcast auction applicants with three or fewer mass media facilities may be eligible for a “new entrant” bidding credit that would reduce a winning bid price by up to 35%.  

Proposed Bidding Procedures

The Commission proposes using a simultaneous multiple-round auction format for Auction 114, under which all permits are available for bidding at the same time and bidding proceeds in successive rounds.  Each round would be followed by the release of results, bidders may place and remove bids during a round, but bids may not be withdrawn after the round closes, and the FCC would release the initial bidding schedule at least one week before bidding begins.

The Commission also proposes a simultaneous stopping rule, meaning all permits remain open for bidding until bidding activity ceases across all permits.  

After each round closes, for each permit, the current provisionally winning bid amount, the minimum acceptable bid amount for the following round, and the number of bids placed on the permit during the round would be made available.  

Activity Requirements and Waivers

The FCC’s activity rule is intended to encourage consistent participation throughout the auction.  A bidder’s activity is measured based on the bidding units associated with its bids and provisionally winning bids.  To maintain full eligibility, the FCC proposes requiring bidders to be active on 100 percent of their eligibility in each round.  

Bidders that fall short of the activity requirement may preserve eligibility by using an activity rule waiver, which applies to the entire round.  Each bidder would receive three waivers.  If a bidder does not use a waiver, its eligibility would be permanently reduced.

Bid Amounts

The FCC proposes that in each round, a qualified bidder will be able to place a bid on a given construction permit in any of up to nine different amounts: the minimum acceptable bid amount or one of eight additional bid amounts.  Initially, the minimum acceptable bid is set at the opening bid.  Once a provisionally winning bid is established, the minimum bid increases by a proposed ten percent increment.  Additional bid options would be calculated using a proposed five percent increment.  

The FCC retains discretion to adjust bid increments during the auction, including on a permit-by-permit basis, to manage auction pace.  

At the close of each round, the highest bid becomes the provisionally winning bid, which carries forward unless exceeded in a subsequent round.

Auction Education and Support

The FCC plans to provide additional guidance on the auction process, including demonstrations and educational resources to familiarize applicants with short-form application system and bidding platform.  

Next Steps

We are available to assist with all aspects of auction participation including: (1) evaluating eligibility and strategic participation options; (2) preparing and submitting FCC Form 175 applications; (3) advising on upfront and payment requirements and compliance obligations; and (4) developing and implementing bidding strategies tailored to business objectives. In the meantime, prospective applicants should conduct their own due diligence of each permit’s market, population, transmission site(s), coverage limitations, advertising opportunities, existing competition, etc.

If you are interested in discussing potential participation in Auction 114 or have any questions about the auction process, please contact us. 
 

¹ 47 CFR §§ 1.2105, 73.5002.
² 47 CFR § 1.2104(g)(2).