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A. 1. a.(1)(a) i) a) 1. 1. 1. a.(1)(a) i) a)#X\  P6G;P#X01Í ÍX01Í Í#Xj\  P6G;XP#uuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""""2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d""d<d<$YYdCCddooCYd<d<+oodCCddddCoof KNSD(TV), San Diego and KNBC(TV), Los Angeles overlap, NBC requests a permanent  xwaiver of the Commission's duopoly rule, Section 73.3555(b), to allow common ownership of  xthe two stations. In the alternative, NBC seeks a conditional waiver of the duopoly rule, subject  xto the outcome of the pending broadcast television ownership rulemaking concerning the duopoly  XJ!- xand other multiple ownership rules. See Review of the Commission's Regulations Governing  X5"- xTelevision Broadcasting, Second Further Notice of Proposed Rule Making, FCC 96438 (released"5" ,))ZZ9!"  X-Nov. 7, 1996) (Television Ownership Second Further Notice).F yOy- xԍ In a September 24, 1996 amendment to its application, NBC expressed its commitment to proceed pursuant  xto the requirements of the rules and policies adopted in this pending television ownership rulemaking. Specifically,  xYNBC has committed to filing an application for Commission consent to sell either KNSD(TV) or KNBC(TV) within  xsix months from the release of the rulemaking order, should divestiture be required as a result of the rules adopted in such rulemaking. F  X< x2.  Duopoly Waiver Request.   NBC contends that grant of its requested duopoly waiver would  x<be consistent with Commission precedent and would serve the public interest. More specifically, NBC presents four primary arguments to support its waiver request.  x3. First, NBC asserts that the degree of overlap between KNSD(TV), San Diego and  xLKNBC(TV), Los Angeles is well within the range of Grade B overlaps that have been permitted  xin several previous Commission duopoly decisions. According to NBC's engineering study, the  xKpredicted Grade B overlap encompasses 2039 square kilometers, representing 5.6 percent and 20.5  xpercent of the land area within the KNBC(TV) and KNSD(TV) Grade B contours, respectively,  x>and 376,612 people, representing 2.6 percent and 14.9 percent of the populations within the  X -Grade B contours of KNBC(TV) and KNSD(TV), respectively.l xe yO-ԍ The predicted Grade A contours of the two stations do not overlap.l  X -  xz4. Second, NBC identifies a large number of television stations and other media available to  xresidents of the Los Angeles and San Diego markets generally and to residents of the  xKNSD/KNBC overlap area specifically. A total of 21 television stations are licensed to  xycommunities within the Los Angeles Designated Market Area (DMA), including 17 commercial  xstations. An additional eight stations (of which seven are commercial) are licensed to  x=communities within the San Diego DMA. According to NBC's engineering study, a total of 27  xtelevision stations, in addition to KNBC(TV) and KNSD(TV), serve all or part of the overlap area  xjwith at least a Grade B signal, and over 90 percent of the overlap area receives a Grade B signal  xjfrom at least 12 other television stations. NBC asserts that this number of broadcast television  xjstations serving at least a portion of the overlap area is comparable to other cases in which the  xCommission has approved duopoly waivers. Moreover, NBC notes the high level of cable  xpenetration in the Los Angeles and San Diego DMAs, the considerable number of radio stations licensed in these markets, and the existence of several daily newspapers in the area.  x=5. Third, NBC asserts that KNBC(TV) and KNSD(TV) serve separate and distinct markets (the  xsecond and 27th largest DMAs, respectively, in the United States), and are located in  xdemographically different cities with disparate service needs. To demonstrate this market  x<independence, NBC's submissions include a study showing that KNBC(TV) and KNSD(TV) have  x separate viewing audiences and do not directly compete with each other for viewers. NBC  xadditionally states that the independence of KNBC(TV) and KNSD(TV) will be maintained; each  xstation will have its own general manager and will be run autonomously, with separate news and programming operations. ",-(-(ZZ"Ԍ xy6. Fourth, NBC contends that permitting common ownership of KNBC(TV) and KNSD(TV) will  xbenefit the viewers of each station as well as those in the overlap area. Specifically, these  xviewers will, according to NBC, benefit from its commitment to relocate and expand its Orange  xCounty bureau, to increase the amount of locally originated news coverage by KNSD(TV), to  xconstruct an additional microwave link between KNBC(TV) and KNSD(TV), to institute a  xminority internship program at KNSD(TV), and to increase coverage of particular issues of interest to both the Los Angeles and San Diego markets, especially education.  XH< xz7. Discussion . The television duopoly rule, 47 C.F.R.  73.3555(b), generally prohibits the  xcommon ownership of television stations whose Grade B contours overlap. The objective of the  xduopoly rule is to promote diversity in programming sources and viewpoints and to prevent an  xundue concentration of economic power by fostering economic competition in broadcasting.  X - xMultiple Ownership Rules, 22 FCC 2d 306, 307 (1970), recon. granted in part, 28 FCC 2d 662  x(1971). In adopting the duopoly rule's fixed standard of a prohibited overlap of Grade B service  xcontours, the Commission expressly acknowledged the need for "flexibility" in that rule's  xapplication, noting that waivers should be granted where rigid conformance to the rule would be  X- x"inappropriate." Multiple Ownership of Standard, FM and Television Broadcast Stations, 45  X~- xFCC 1476, 1479 n.12, recon. granted in part, 3 RR 2d 1554 (1964). The Commission has  xaccordingly developed a set of factors to be considered when evaluating an applicant's request  xfor permanent or temporary waivers of the duopoly rule, including the extent of the overlap, the  xnumber of media voices available in the overlap area, the distinctiveness of the respective  xmarkets, the independence of the stations' operations, and the concentration of economic power  xresulting from the combination. Assessment of a temporary waiver request relies on the same  x=factors considered for a permanent waiver, but these factors may be accorded different weight  X- xand may be analyzed differently due to the limited duration of the proposed combination.e {OX- xԍ See, e.g., John H. Phipps, Inc., FCC 96395 at  12 (released Sept. 27, 1996); Stockholders of CBS Inc., 11 FCC Rcd 3733, 3755 (1995). After  xweighing these various factors, the Commission considers whether the public interest benefits that  xwould be gained from waiving the duopoly rule outweigh any detrimental effects that would  X- xresult from the overlap.&"e {Om- x-ԍ See, e.g., Capital Cities/ABC, Inc., 11 FCC Rcd 5841, 5863 (1996); Stockholders of CBS Inc., 11 FCC Rcd  {O7- xx3733, 3759 (1995); Iowa State University Broadcasting Corporation, 9 FCC Rcd 481, 487488 (1993), aff'd sub  {O- xnom., Iowans for WOITV, Inc. v. FCC, 50 F.3d 1096 (D.C. Cir. 1995); H & C Communications, Inc., 9 FCC Rcd 144, 146 (1993).  As with any waiver, it will only be granted if the Commission concludes that the waiver is in the public interest.  xN8. The Commission is currently reexamining its broadcast television ownership policies,  xNincluding the duopoly rule. In January 1995, the Commission proposed a new analytical  X'- xframework within which to evaluate our broadcast television ownership rules. See Review of the  xCommission's Regulations Governing Television Broadcasting, Further Notice of Proposed Rule  X- xMaking, 10 FCC Rcd 3524 (1995) (Television Ownership Further Notice). Subsequent to the  X- xkrelease of that Television Ownership Further Notice, Congress directed the Commission to",-(-(ZZ"  xconduct a rulemaking proceeding to determine whether to retain, modify or eliminate existing  xlimitations on the number of television stations that an entity may control within the same  X- x.television market. See Section 202(c) of Telecommunications Act of 1996, Pub. L. No. 104104,  X- x110 Stat. 56 (Feb. 8, 1996) (Telecomm Act).LZe yO6- xԍ In addition to this specific directive to review the television duopoly rule, Congress mandated in the Telecomm  {O- xAct that the Commission conduct a biennial review of all its broadcast ownership rules. See Section 202(h) of the Telecomm Act.L In response to these Congressional directives in  X- xthe Telecomm Act and to update the record, the Commission recently released the Television  X- xOwnership Second Further Notice. In that Second Further Notice, the Commission tentatively  X|- xconcluded to authorize common ownership of television stations that are in separate DMAs and  Xe- xwhose Grade A contours do not overlap. Television Ownership Second Further Notice at  57.  x.Common ownership of KNSD(TV) and KNBC(TV) by NBC would be authorized under the rule  X9- xiproposed in the Television Ownership Second Further Notice, as the two stations are in separate DMAs and their Grade A contours do not overlap.  X - x9. The Commission stated in the Television Ownership Second Further Notice that it will be  xinclined, during the pendency of the television ownership proceeding, to grant duopoly waivers  xinvolving stations in different DMAs with no overlapping Grade A contours, conditioned on  xcoming into compliance with the outcome of the proceeding within six months of its conclusion.  x-Commission staff, moreover, now has delegated authority to act on applications seeking waivers  X- xconsistent with this interim policy. See id. at  57. Given the clearly articulated policy in the  Xp- xTelevision Ownership Second Further Notice, we do not believe that an unconditional grant of  xNBC's permanent duopoly waiver request is appropriate. We conclude, however, that grant of  xa conditional waiver of the duopoly rule, subject to the outcome of the pending television  xownership rulemaking, is justified. NBC's alternative temporary waiver request is consistent with  X- xlthe interim policy set forth in the Television Ownership Second Further Notice, and our  xMexamination of NBC's showings, as summarized above, reveals nothing suggesting that the  $x?Commission should not follow the established interim policy in this case.  xj10. Having determined that the applicants are qualified in all respects, we find that grant of the  xapplication to assign the license of KBNTLP to Outlet Broadcasting will serve the public  xinterest, convenience and necessity. We also find that grant of the application to assign the  xlicense of KNSD(TV) to Outlet Broadcasting, conditioned upon the resolution of the pending  x broadcast television ownership rulemaking, will serve the public interest, convenience and necessity.  x11. Accordingly, IT IS ORDERED, That the request for permanent waiver of the duopoly rule,  xSection 73.3555(b) of the Commission's rules, to permit common ownership of stations KNSD(TV) and KNBC(TV) IS DENIED.  x\12. IT IS FURTHER ORDERED, That the request for conditional waiver of the duopoly rule  x{IS GRANTED, subject to the outcome of the Commission's pending broadcast television"",-(-(ZZ!"  xownership rulemaking (MM Docket Nos. 91221 and 878). Should divestiture be required as  xLa result of that proceeding, the licensee is directed to file, within six months from the release of  xthe final order in MM Docket Nos. 91221 and 878, an application for Commission consent to  xdispose of such station as would be necessary for the National Broadcasting Company to come into compliance with the rules as provided in the final order.  x13. IT IS FURTHER ORDERED, That the applications to assign the licenses of KBNTLP and  xKNSD(TV) from KNSD License, Inc. to Outlet Broadcasting Company, Inc. ARE GRANTED. x` `  hh@FEDERAL COMMUNICATIONS COMMISSION x` `  hh@Roy J. Stewart x` `  hh@Chief, Mass Media Bureau