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                            Before the
                Federal Communications Commission
                      Washington, D.C. 20554

In re Amos B. Hostetter, Jr.    )  
                                )  CSR-5241-X
Petition for Special Relief     )
Requesting Waiver of 47 C.F.R.  76.501(a))


                             ORDER

     Adopted:  June 8, 1998             Released:  June 10, 1998

By the Acting Chief, Cable Services Bureau:

                          INTRODUCTION
                                
     1.   Amos B. Hostetter, Jr. ("Hostetter") filed the instant petition (the "Petition") seeking a waiver
of Section 76.501, the Commission's cable television broadcast television station cross-ownership rules.  The
petition is unopposed.

                            BACKGROUND
          
     2.   Hostetter is a trustee of the WGBH Educational Foundation ("the Foundation"), the licensee
for three noncommercial broadcast television stations in the greater Boston and Springfield areas.  U S West,
Inc. ("U S West"), owns numerous cable systems within the Grade B contours of the three stations.  While
Hostetter owns shares of U S West common stock, he currently does not own more than 5% of U S West's
common shares.  Thus, Hostetter's position as a trustee of the Foundation and ownership of U S West common
stock do not currently contravene the cross-ownership rules.  However, this summer, U S West will spin-off
MediaOne Group, Inc. ("MediaOne").  MediaOne will retain ownership of the cable systems, and, under the
terms of the transaction, Hostetter will then own 8.5% of the newly formed MediaOne's common shares. 
Hostetter will then own over 5% of the cable operator that falls within the grade B contours of three stations
of which he is trustee, and the Commission's cross-ownership rules will bar the cable operator from carrying
the three stations' signals unless Hostetter resigns his position as a trustee of the Foundation.

     3.   Hostetter states that a waiver of the cross-ownership rules is appropriate because the objectives
of the rules -- to promote competition and maintain a marketplace for diverse ideas -- would not be served by
the application of the rules in his case.  Because the stations are noncommercial, they would not compete with
the cable systems or other broadcast stations carried on the cable systems.  In addition, Hostetter states that
he is a passive investor in MediaOne and will not serve as a director or officer of MediaOne or participate in
the operations of MediaOne in any other way.  

     4.   Hostetter asserts that if he is forced to resign, the Foundation would lose the benefit of his
experience from being the chief executive officer of Continental Cablevision, Inc, for over thirty years.  The
Foundation states that Hostetter's wealth of experience will assist it in navigating critical issues of funding and
management of public television and the uncertainties facing the Foundation by the broadcast community's
transition to digital broadcasting.
.
                            DISCUSSION

     5.   The Commission's cross-ownership rule 47 C.F.R.  76.501(a) reads in relevant part:

          No cable television system . . . shall carry the signal of any television broadcast station if such
     a system directly or indirectly owns, operates, controls, or has an interest in a TV broadcast
     station whose predicted grade B contour . . . overlaps in whole or in part the service area of
     such system . . . .

The policy goals of Section 76.501(a) are to increase competition in the economic marketplace and in the
marketplace of ideas.  In cases where enforcement of the ban on cross-ownership does not promote these
goals, a waiver of these rules will be entertained by the Commission.  The Commission may waive any rule,
in whole or in part, for good cause.  

     6.   In the instant case, the stated policy objectives of the cross-ownership rules would not be
impaired by granting a waiver and allowing Hostetter to simultaneously own stock in MediaOne and sit on the
Foundation's board of trustees.  The Foundation's three public television stations are noncommercial, and
Hostetter will own no more than 8.5% of MediaOne's common shares.  Moreover, Hostetter asserts that he will
remain a passive investor in MediaOne.  Thus, Hostetter does not have the same incentives to engage in the
anticompetitive conduct that the rules are designed to address. Waiver of the television cable cross-ownership
rule is particularly appropriate where the television stations involved are noncommercial, because "`they are
not engaged in economic competition vis-a-vis other media' in the area the cable system will serve."

     7.   In addition, waiving the rules in this instance will benefit the public.  Compelling Hostetter
to resign from the Foundation would deprive three noncommercial broadcast stations of Hostetter's
considerable, unique experience in communications.

                        ORDERING CLAUSE
                                
     8.   Accordingly, IT IS ORDERED that the Petition for Special Relief Requesting Waiver of 47
C.F.R.  76.501(a) filed by Amos B. Hostetter, Jr. is GRANTED.

     9.   This action is taken pursuant to authority delegated by Section 0.321 of the Commission's
Rule's, 47 C.F.R.  0.321 (1996).

                              FEDERAL COMMUNICATIONS COMMISSION



                              John E. Logan
                              Acting Chief, Cable Services Bureau