Report No. MM95-20           MASS MEDIA ACTION                March 7, 1995


       PARK RIVER PUBLIC SCHOOL DISTRICT #78 GRANTED CP AND LICENSE
                   FOR ITFS CHANNELS B1-B4 AT MILTON, ND

     The FCC has conditionally granted the application of Park
River Public School District #78 for a construction permit (CP)
and license in the Instructional Television Fixed Service (ITFS)
on Channels B1-B4 in Milton, ND; and denied the competing
application of Midway Public School District #78 for ITFS
facilities at Inkster, ND.

     In cases of mutually exclusive ITFS applications, where
applicants are competing for the same or adjacent channels in the
same geographic area, each application is reviewed pursuant to
the Commission's comparative process.  This procedure awards a
maximum of 12 merit points based on five criteria deemed most
relevant to predicting the applicant best qualified to provide
the service for which the ITFS spectrum was allocated.

     In this case, Midway received four points for being local,
three points for being accredited, and two points for observing
the four-channel limitation, for a total of nine points.  Park
River was awarded four points for being local, three points for
being accredited, two points for observing the four-channel
limitation, and two points for proposing at least 41 hours of
formal educational programming per channel per week, for a total
of 11 points.  Thus, Park River is the tentative selectee.
     
     Park River proposed leasing its excess capacity for non-ITFS
use and submitted a copy of its lease agreement with Control
Technology, Inc. (CTI).  Generally, the parties to an excess
capacity lease agreement are identified as the lessor and lessee. 
The ITFS licensee (in this case Park River) is the lessor, and
the wireless cable operator (CTI) is the lessee.  However, the
lease agreement identified Park River as the lessee and CTI as
the lessor.  Because of this mislabeling, the Commission was
unable to review the lease to determine if it conforms in all
respects to FCC requirements.  Accordingly, the Commission
instructed Park River to submit for review a lease agreement
which correctly and consistently identifies the parties and their
respective obligations.


                                  -more-

                                    -2-

     The Commission noted, however that Park River is fully
qualified to be an ITFS licensee.

     Action by the Commission February 28, 1995, by Memorandum
Opinion and Order (FCC 95-86).  Chairman Hundt, Commissioners
Quello, Barrett, Ness, and Chong.


                                   -FCC-

     News Media contact: Patricia A. Chew at (202) 418-0500.
     Mass Media Bureau contact: Marsha Evans at (202) 418-1610.