Report No. MM95-12 MASS MEDIA ACTION February 17, 1995 FCC GRANTS TRANSFER OF CONTROL OF KDZN(FM), GLENDIVE, MT; GRANTS REQUEST FOR WAIVER OF ONE-TO-A-MARKET RULE The Commission has granted the application for transfer of control of 100 percent of the stock of Magic Air Communications Company, licensee of KDZN(FM), Glendive, MT, from Burt H. Oliphant, Peggy S. Oliphant, L. Brent Oliphant and Jeffrey S. Oliphant, to Glendive Broadcasting Corporation (GBC). GBC is the licensee of KXGN(AM) and VHF television station KXGN-TV, and the Grade A contour of KXGN-TV encompasses all of Glendive. GBC requested and was granted a waiver of the Commission's one-to-a- market rule. Since GBC's waiver request failed to meet either the top 25 market/30 voice standard, or the "failed station" standard (standards under which waivers are presumptively favored), the Commission evaluated GBC's request under the case-by-case standard. In so doing, the Commission concluded that GBC's waiver request of the one-to-a-market rule meets the Commission's public interest case-by-case criteria. Specifically, the waiver showing indicated that joint operation of the stations will yield significant cost savings which are critical to the continued operation of KDZN(FM) by co-locating the facilities and sharing expenses and personnel. The parties in this case have further demonstrated that cost savings will allow for additional public service programming benefits for listeners in the Glendive area. Additionally, Magic Air has demonstrated that KDZN(FM) is in financial distress and that no one, other than GBC, has offered to buy the station in the two-year period since the station was offered for sale. Finally, in granting the waiver request, the Commission considered the totality of the information presented, and in view of the availability of other radio service received in Glendive, the high rate of cable television penetration in the market, and the newspaper and other broadcast media available, the Commission (over) -2- concluded that the preservation of the KDZN(FM) service and potential enhancement in programming services outweighed the reduction of diversity and competition that would result from the grant of the waiver request. Action by the Commission February 15, 1995, by Memorandum Opinion and Order (FCC 95-61). Chairman Hundt, Commissioners Quello, Ness, and Chong, with Commissioner Barrett concurring in the result and issuing a separate statement. -FCC- News Media contact: Patricia A. Chew at (202) 418-0500. Mass Media Bureau contact: Kelly D. Yaksich at (202) 418- 2710.