NEWSReport No. MM 96-24          MASS MEDIA ACTION                        July 24,
1996
     
FCC DENIES PETITION TO DELETE NONCOMMERCIAL RESERVATION
           FOR WQEX(TV), CHANNEL *16, PITTSBURGH, PENNSYLVANIA
 
     The Comission has adopted a Memorandum Opinion and Order
denying the "Petition to Delete Noncommercial Reservation" filed by
WQED Pittsburgh, licensee of noncommercial educational television
Stations WQED(TV), Channel *13 and WQEX(TV), Channel *16,
Pittsburgh, Pennsylvania.   The Commission also denied the Petition to
Revoke License of WQEX(TV) filed by  Pittsburgh Educational Television,
Inc. (PET).

     Pursuant to Pub. L. No. 104-134, WQED requested that the
Commission amend Section 73.606 of its rules to delete the
noncommercial reservation of Channel *16, the frequency on which
WQEX(TV) operates, thus allowing WQED to assign the license to a
commercial broadcaster.  WQED proposed to use the proceeds to relieve
its severe financial distress and create an endowment to enable
WQED(TV) to produce new programming and make major fixed asset
acquisitions.   By Public Notice released June 26, 1996, the Commission
invited interested persons to comment on WQED's petition. 

      Applying the criteria in the statute, the Commission found that it
was presented with strong competing public interest considerations.  On
the one hand, the Commission observed that WQED had demonstrated
that is was in severe financial distress and that the sale of WQEX(TV) as
a commercial station could afford it the means of  resolving these
difficulties.  On the other hand, the FCC noted that the solution proposed
by WQED, the dereservation and commercial sale of a noncommercial
channel, was unprecedented -- the Commission has never dereserved 
noncommercial spectrum without providing a replacement channel -- and
ran contrary to the Commission's longstanding goal of promoting the
growth of public television.  On balance, the Commission concluded that
WQED had failed to make the compelling showing necessary to support
an exception to the Commission's strongly held policy disfavoring
dereservation of noncommercial educational channels.  


                                  (over)

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     Specifically, the Commission found that the record does not
establish that there exists a clear and present "threat to the public of
losing or impairing local public broadcasting service," noting that WQED
has acknowledged that it would not go dark if it were unable to sell
Channel *16 to a commercial broadcaster.  The Commission also stated
that it could not find on the record before it that there is no need for a
second noncommercial channel at Pittsburgh.  While WQED asserted that
it no longer required a second channel to provide educational
progamming, the FCC noted that others, including PET, have expressed an
interest in providing noncommercial educational programming on
Channel *16.  

     The Commission further stated that it did not believe that
dereservation of Channel *16 was necessary to relieve the financial
distress of WQED or to alleviate the threat that distress posed to
noncommercial service in Pittsburgh.  In particular, the FCC noted that
WQED had entered an agreement with Cornerstone TeleVision, Inc.
(Cornerstone), the licensee of commercial  Channel 40, Greensburg,
Pennsylvania, whereby, if approved by the Commission, WQED and
Cornerstone would exchange channels,  Cornerstone would operate on
Channel *16 on a noncommercial educational basis and WQED would sell
Channel 40 to a commercial broadcaster and split the proceeds of the sale
with Cornerstone.  This approach would apparently afford WQED
significant financial relief, yet would avoid the dereservation of Channel
*16 or any other reduction in the number of noncommercial channels
allotted to Pittsburgh.  While WQED argued that this channel exchange
approach would result in WQED receiving smaller proceeds than from an
outright sale of Channel *16, the Commission noted that WQED did not
contend that the channel exchange would produce income inadequate to
redress WQED's financial difficulties.  

     Finally, the Commission noted that one of the public interest
benefits which WQED advanced  as favoring dereservation -- enhanced
diversity and competition in the Pittsburgh market through the divestiture
of Channel *16 to a commercial broadcaster -- will also be achieved if
WQED were to implement its agreement with Cornerstone.

     The Commission noted that the Cornerstone agreement was not
before it and that it was not prejudging any applications that might be
filed based on that agreement.  It stated, however, that it would promptly
consider any further details or arguments WQED wished to make
regarding its channel exchange arrangement with Cornerstone, or any
applications which it wished to file implementing its agreement with
Cornerstone.  

     Action by the Commission July 24, 1996, by Memorandum Opinion
and Order (FCC 96- 314).  Chairman Hundt, Commissioner Ness issuing
a separate statement; Commissioners Quello and Chong concurring in the
result and issuing separate statements.  All statements will be released
with the text of the decision.     

                                  - FCC -          
     
     Mass Media contact:  Bob Ratcliffe at (202) 418-2600.
     News Media contact:  David Fiske at (202) 418-0500.