FCC Assesses Max Frequency $28,210 Default Payment
The Texas broadcaster, which withdrew three FM construction permit applications in August, must pay an interim default fee tied to its winning bids.
Updated on Nov. 2, 2026 in Utilities
The Federal Communications Commission has assessed an interim default payment of $28,210 against Max Frequency LLC of Fairview, Texas. The payment follows the company's request in August to voluntarily dismiss three pending FM construction permit applications it won in Auction 109.
Why it matters
The default payment is calculated at 20% of the total net winning bids for the three Texas permits, and the FCC will apply funds Max Frequency already has on deposit toward it. A final default assessment will follow once the Milano, Teague and Bogata permits are sold in a future auction.
The interim payment equals 20% of the $141,050 in total net winning bids Max Frequency placed for three construction permits in the FCC's Auction 109. The final assessment remains pending until the Milano, Teague and Bogata permits are resold in a later auction.
The players
Federal Communications Commission
The federal agency that regulates interstate and international communications by radio, television, wire, satellite and cable, and that conducts the spectrum license auctions.
Max Frequency LLC
A Fairview, Texas-based company that won three FM construction permits in the FCC's Auction 109 and later requested their dismissal.
The details
The Media Bureau granted Max Frequency's request to dismiss its three pending long-form applications, which triggered default provisions under FCC rules. The permits cover a Class A facility at 102.7 FM in Milano, a Class C3 facility at 95.3 FM in Teague, and a Class A facility at 97.3 FM in Bogata.
Timeline
2021: Auction 109 was held and the post-auction long-form application deadline passed.
August 2026: Max Frequency requested voluntary dismissal of its three pending applications.
November 2, 2026: The FCC assessed the interim default payment against Max Frequency.
Industry Landscape
Under the FCC's default rules, winning bidders in spectrum auctions that withdraw before licensing owe a percentage of their bids, with the interim payment set at 20% in this case. The Max Frequency assessment shows how those penalties apply to small-market FM construction permits in Texas.
The default payment reduces Max Frequency's deposit and signals to other auction bidders that withdrawing from won permits carries a financial penalty. Residents near Milano, Teague and Bogata may see those FM frequencies licensed to new operators once the permits are resold.
The takeaway
Winning a spectrum auction carries financial commitments, and withdrawing from licensing can trigger default payments that scale with the bid amount. Bidders should weigh those costs before committing to permits.
What happens next
A final default assessment will be issued once the Milano, Teague and Bogata permits are sold in a future FCC auction.
Further reading
For related coverage of regulated infrastructure in the state, see Utilities in Texas.
Source note: This article includes information reported by Radio World.
