Broadcast license

The United States government requires users of radio spectrum to obtain a broadcast license to use the airwaves, except for low-powered transmitters like CB's and Walkie Talkies. Licenses are limited to the available spectrum in the given geographical area. Limits are also placed on entities from owning too many stations locally or nationally. The Telecommunications Act of 1996, which loosened these limits, is a contributing factor to the ongoing conglomeration of Big Media through mega-mergers and acquisitions.

Economics

Originally, broadcast licences were issued for only a nominal payment, but work by economist Ronald Coase developed a theory that broadcast licences in a spectrum that was limited had high economic value, which could and should be paid for on the open market.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~