JUNEAU, Alaska -- An Australian couple with more than a decade spent in Alaska has bought more than two dozen radio stations in three states, marking the first time federal regulators have allowed full foreign ownership of U.S. radio stations.
The Federal Communications Commission recently approved a request by Richard and Sharon Burns through their company Frontier Media to increase their interest in 29 radio stations in Arkansas, Alaska and Texas from 20 percent to 100 percent.
In Arkansas, the couple hold licenses for KTOY-FM and KTFS-FM, both in Texarkana, and KBYB-FM in Hope. Just across the border, in Texarkana, Texas, the Burnses hold licenses for KCMC-AM and KTFS-AM. They also will have the license for KTTY-FM, in New Boston, Texas.
The agency long took what some viewed as a hard line in limiting foreign ownership under a 1930s law that harked back to wartime propaganda fears. But in 2013, it acknowledged a willingness to ease up after broadcasters complained the rules were too restrictive of outside investment.
The Burnses are citizens of Australia but have lived and worked in the U.S. since 2006 on special visas offered for Australians.
A family that owned six Alaska stations provided the opportunity that brought the couple to the U.S. The family wanted someone with international experience to operate the stations and help move the company forward, Richard Burns said. The stations in the lower 48 were purchased later.
The Burnses' request to acquire full ownership was unopposed. Besides AM and FM stations, the two bought relay stations known as translators that help provide reception.
Richard Burns said he and his wife consider Alaska home and are pursuing U.S. citizenship.
"Our life is here in Juneau, Alaska, every single day," said Burns, who serves on the board of the Juneau Chamber of Commerce and in 2010 was named its citizen of the year.
Sharon Burns co-hosts a morning show on a Juneau country-music station the couple owns, and does on-air work for two of their other stations in southeast Alaska and one in Texas, her husband said. Richard Burns is the stations' CEO and a host on their Juneau classic-hits station.
The federal law restricting foreign ownership dates from the 1930s and initially was seen as a way to thwart the airing of foreign propaganda during a time of war, according to the FCC. It restricts to 25 percent foreign ownership or voting interests in a company that holds a broadcast license when the commission finds that limit to be in the public interest.
In 2013, in response to broadcasters, interest groups and others who considered the commission's application of the law too rigid, the FCC clarified it has the authority to review, case by case, requests exceeding that threshold and that it is open to doing so.
The commission last year adopted rules for publicly traded companies after a case involving Pandora Media and questions about its level of foreign ownership as it pursued acquisition of a South Dakota radio station. Then-FCC Chairman Tom Wheeler said the case highlighted the need for more clarity for broadcasters and investors in the review process.
It's unclear how many other foreign citizens have a stake in U.S. radio stations. The FCC said it does not keep a comprehensive accounting because stations generally don't have to disclose smaller or nonvoting interest holders.
Lisa Scanlan, deputy chief of the FCC's audio division, said that as part of its public-interest analysis, the commission consults with executive branch agencies that do independent reviews on matters including trade and foreign policy, national security and law enforcement.
Jessica Gonzalez is deputy director and senior counsel for the group Free Press, which has concerns about media consolidation. She said she's not opposed to the Burnses' case. But she said the larger the company, the more skeptical she becomes.
"I'm not fond at all of the idea of giant foreign companies or giant domestic companies buying up a bunch of radio stations," she said. "It's problematic."
She said an owner's nationality doesn't make a difference to her. "It's just a matter of whether or not they are actually going to serve their community," she said.
Richard Burns agreed. He said it's critical for radio station owners to be invested in the communities they serve.
"If you're a good radio operator, I don't think it matters if you're foreign or not, as long as you engage in the community and you understand it," he said.
Information for this article was contributed by Stephen Steed of the Arkansas Democrat-Gazette.
Business on 03/23/2017