WPC- 2IBETZE3|P) X-#XP\  P6Q DXP#HP LaserJet 4/4MCL)HPLAS4.WRSSx  @,,!JX@ X-#XP\  P6Q DXP#2;({@XCourier New (TT)Times New Roman (TT)"5@^2CRdd$CCdq2C28dddddddddd88qqqYzoCNzoozzC8C^dCYdYdYCdd88d8ddddCN8ddddY`(`l2CC!CCPRCddYYYYYYzYzYzYzYC8C8C8C8ddddddddddYdddddoddYYYYYzYzYzYddddddPdCdCCCdNdz8zRdddCRoNoNNF2[dCYddddd7>d<d<CCYYdCCddCYCdYzzzzCCCCqodYYYYYYYYYYY8888dddddddnddddddd?xxxX/Xx6X@DQX@7PC2X DXP\  P6QXPa!12J m3}@ Z 3|PTimes New Roman (TT)Times New Roman (Bold) (TT)"5@^*7DSS77S^*7*.SSSSSSSSSS..^^^Jxooxf]xx7Axfxx]xo]fxxxxf7.7NS7JSJSJ7SS..S.SSSS7A.SSxSSJP!PZ*7777CE7SSxJxJxJxJxJooJfJfJfJfJ7.7.7.7.xSxSxSxSxSxSxSxSxSxSxJxSxSxSxSxS]SxSxJxJoJoJoJfJfJfJxSxSxxSxSxSxSCS7S777SAxSf.fExSxSxSxo7oE]A]AN:*LS7JSSSSS.4}}S2S}277JJS77SS7J72t7[[[[^ee*C`^.wRSSn[Cfx`xWlRx[][ceIfIs`Wx[rriwge*7DSS77S^*7*.SSSSSSSSSS..^^^Jxooxf]xx7Axfxx]xo]fxxxxf7.7NS7JSJSJ7SS..S.SSSS7A.SSxSSJP!PZ7SJSS7]777JJ:S7A7xx*7SSSS!S7.S^7SC[227`L*724S}}}Jxxxxxxoffff7777xxxxxxx^xxxxxx]SJJJJJJoJJJJJ....SSSSSSS[SSSSSSSHP LaserJet 4/4MCL)HPLAS4.WRSSC\  P6Q,,!JP2_@| # @@"5@^2CRdd$CCdq2C28dddddddddd88qqqYzoCNzoozzC8C^dCYdYdYCdd88d8ddddCN8ddddY`(`l2CC!CCPRCddYYYYYYzYzYzYzYC8C8C8C8ddddddddddYdddddoddYYYYYzYzYzYddddddPdCdCCCdNdz8zRdddCRoNoNNF2[dCYddddd7>d<d<CCYYdCCddCYCdYzzzzCCCCqodYYYYYYYYYYY8888dddddddnddddddd X- I. A. 1. a.(1)(a) i) a) 1. 1. 1. a.(1)(a) i) a)#XP\  P6Q DXP##XP\  P6Q DXP##XP\  P6Q DXP#"5@^2Coddȧ8CCdr2C28ddddddddddCCrrrdzNdzoȐC8CtdCdoYoYCdo8Co8odooYNCodddYO,Oh2CC!CCPRCdodddddȐYYYYYN8N8N8N8oddddooooddoddddzodddYYYYYYddddooPoNoNCNodo8RoodȐYYoNoNNF2ldCddddddmarket. With regard to WBHJ(FM), HP II reports that there are 11 other radio stations with"@,T'T'33"  X- xcomparable or superior facilities. bL yOy- xԍ This number includes stations licensed to the Birmingham DMA whose principal community service contours  yOA-enter or cover Tuscaloosa. See discussion infra para. 17. HP II claims that WBHJ(FM)'s 3.2 audience share is  xapproximately onesixth that of the market leader. In addition, HP reports that the only television  xstation licensed to Tuscaloosa is UHF station WCFT (ABC affiliate). With regard to other media  xiinterests in the markets, HP and HP II report that they hold no attributable interests in Tuscaloosa or Birmingham other than WDBB(TV) .  Xv- x^10. Economic Status. HP and HP II report that prior to entering into a time brokerage  xagreement, WDBB(TV) had losses of $230,000 in fiscal year 1995. HP now provides  x{programming to WBHK(FM) pursuant to a time brokerage agreement and HP II provides  xprogramming to WBHJ(FM) pursuant to a time brokerage agreement. HP states that prior to its  xprovision of programming to WBHK(FM) pursuant to a time brokerage agreement, the station  xdid not have a positive cash flow. Similarly, HP II reports that WTNW(AM) and WBHJ(FM)  x@had losses of $202,287.97 in 1994 and $246,798.20 in 1995 prior to HP II's provision of  x>programming to WBHJ(FM) under a time brokerage agreement. HP II notes that while only  xWBHJ(FM) is brokered, WTNW(AM) remains viable only by virtue of the payments received by HP II under the time brokerage agreement.  Xy- x11. Competition and Diversity in the Market. With regard to HP's proposed acquisition of  x>WBHK(FM), HP reports that there are 10 television stations licensed to communities in the  XK- xBirmingham DMA, held by 9 separate owners. xK bL yO- xZԍ As to the market definition in which to count the number of broadcast stations in the context of onetoa xmarket waivers, the Commission considers "the relevant TV metro market for radio stations and the relevant ADI  yO- x;[Arbitron Area of Dominant Influence] TV market for TV stations." Second Report and Order, 4 FCC Rcd at 1760  xn. 101. However, since Arbitron no longer compiles television ADI data, we will accept instead the showings using  yO<- xthe Nielsen DMA in determining the number of broadcast "voices" in the Tuscaloosa and Birmingham market. See  yO- xMedia/Communications Partners, L.P., 10 FCC Rcd 8116 n.3 (1995); see also Further Notice of Proposed  yO-Rulemaking, MM Docket Nos. 91221 & 878, 10 FCC Rcd 3524, 3539 n. 59 (1995). In addition, HP reports that there are 15 FM  xzstations and 17 AM stations licensed to the Birmingham television metro market, held by 23  xseparate owners. HP claims that following consummation of the proposed transaction, these 42  xbroadcast stations will be licensed to 31 separate owners. HP reports that the Birmingham DMA  xis served by 37 cable operators, which reach 65.5% of the total households in the market. In  x^addition, the Birmingham DMA is served by 15 low power television stations, 5 daily  xnewspapers, 10 weekly newspapers and 17 magazines having a circulation of 10,000 or more.  x12. HP II contends that WTNW(AM) and WBHJ(FM) are in Tuscaloosa, a market distinct from  xthat of the television station, and that the proposed combination will not have an adverse impact  xon the level of diversity or competition in the Birmingham market. HP II nonetheless provides  xinformation regarding competition and diversity in the Tuscaloosa DMA, which is a onecounty  xDMA. HP II states that there are 5 AM stations, 6 FM stations and 1 UHF television station"7` ,T'T'33{"  xlicensed to communities in the Tuscaloosa DMA. Following consummation of the proposed  xtransaction, HP II reports that these 12 broadcast stations will be held by 8 separate owners. In  x[addition, HP II reports that there are 17 radio stations licensed to the Birmingham DMA whose  x.principal community service contours enter or cover the Tuscaloosa DMA. HP II also reports  xkthat there are 7 television stations licensed to the Birmingham DMA, including WDBB(TV),  xwhose Grade B contours enter or cover Tuscaloosa. Including these additional radio and  xtelevision stations, HP II reports that there are 36 broadcast stations held by 25 separate broadcast  xowners serving Tuscaloosa and that following consummation of the proposed transaction, 24  x-separate broadcast owners would remain. In addition, HP II reports that Tuscaloosa is served by 4 cable operators with 78.6% penetration and one daily newspaper.  X -*0 Discussion ă  x13. With regard to the potential public service benefits, HP and HP II have demonstrated  xprogramming benefits and economic benefits that would result from the joint operation of the  xzthree radio stations. HP and HP II estimate total savings of $170,000 annually from common  xownership of WBHJ(FM) and WBHK(FM). HP and HP II indicate that these savings will enable  x=them to direct more resources to news and public affairs programming, including a local public  xjaffairs program that will be broadcast one hour per week on each radio station. In addition, HP  xII states that in an effort to address the gang problem in Tuscaloosa, it intends to broadcast a  xKprogram called "Stop the Violence/Increase the Peace," which addresses gang violence. Because  xWDBB(TV) currently is programmed by a third party pursuant to a time brokerage agreement,  xLthe radio and television station operations will not be consolidated and therefore no operating  xzefficiencies or cost savings will be realized from joint operation of the radio stations and the  xtelevision station. This fact, however, is not fatal to the request for a onetoamarket waiver.  xWe previously have approved onetoamarket waiver requests where economic efficiencies  x<existed only among the radio stations in a proposed combination of television and radio facilities.  X- x.See Golden West Broadcasters, 10 FCC Rcd 2081 (1995); First Broadcasting Company, 10 FCC Rcd 2904 (1995).  x14. With respect to the types of facilities involved, the Commission aims to predict and avoid  xany significant adverse effects on diversity or competition from too powerful a combination.  X - xGreat American Television and Radio Co., 4 FCC Rcd 6347, 6349 (1989). In the Birmingham  xmarket, our independent analysis of HP's showing indicates that in contrast with WBHK(FM)'s  x6 kW facility, there are 8 FM stations in the market that operate with authorized power of 100  xkW. We have also independently determined that there is at least one other television station in  xthe market operating with more powerful facilities than WDBB(TV)'s newly authorized facilities.  xFurthermore, HP has submitted persuasive evidence showing that WDBB(TV)'s signal, even  xMoperating with modified facilities, will provide only a marginally viewable signal to the most  xdensely populated areas of Birmingham. We therefore conclude that the proposed combination  xdoes not present issues of market dominance in the Birmingham market inconsistent with the  x.public interest. With regard to the Tuscaloosa DMA, we independently have determined that"Q% ,T'T'33 $"  X- xWDBB(TV) has a 7% audience share in the Tuscaloosa market. bL yOy- xKԍ Information regarding audience share was obtained from BIA Publications Inc.'s ("BIA") Television Master Access. In contrast, the only television  x{station licensed to the Tuscaloosa DMA, UHF station WCFT (ABC affiliate), has a 21%  xaudience share three times that earned by WDBB(TV). Although WBHJ(FM) is a 100 kW  xistation, we independently have determined that there are two FM stations licensed to Tuscaloosa  xwith authorized power of 100 kW that will not be under HP II's control. In addition, our  xindependent analysis of HP II's showing indicates that there are at least seven other FM stations  x[whose principal community service contours substantially cover Tuscaloosa that operate with  X_- xauthorized power of 100 kW. _ bL yO0 - xԍ See discussion infra at paragraph 17 regarding which stations are deemed broadcast outlets in the Tuscaloosa market. Also, we independently have determined that WBHJ(FM) has  xa 3.2% audience share in the Tuscaloosa market. Our independent analysis indicates that such  X1- xlaudience share is approximately onefifth of the market leader in the Tuscaloosa DMA. 1xbL yOZ- xԍ Audience share information was obtained from BIA's Radio Master Access. We note that in defining the  xLTuscaloosa market, BIA includes certain FM stations licensed to communities within the Birmingham DMA.  xHowever, there are two FM stations that BIA includes in the Tuscaloosa market that we do not include in the  xTuscaloosa market because they do not have principal community service contours that substantially cover Tuscaloosa.  xFurthermore, our independent analysis indicates that there are 4 AM stations licensed to  xkTuscaloosa with greater authorized power than WTNW(AM)'s 1 kW facility. In light of the  xsubstantial competing facilities in the Tuscaloosa market, we conclude that the proposed  xcombination does not present issues of market dominance inconsistent with the public interest.  xx15. The applicants have demonstrated that the FM stations did not have positive cash flows until  xHP and HP II began brokering the stations. In addition, HP II claims that WTNW(AM) remains  xviable only because HP II receives payments under WBHJ(FM)'s time brokerage agreement.  x/WDBB(TV) likewise suffered losses of $230,000 in fiscal year 1995 until a third party began  xprogramming the station. Although these showings do not demonstrate that the stations are in  X- ximmediate financial distress (cf. Glendive Broadcasting Corporation, 10 FCC Rcd 2708 (1995)),  X- xz"[n]ot all of the factors mentioned will be relevant in every case." Second Report and Order  X- xRecon., 9 FCC Rcd at 6491. Indeed, onetoamarket waivers have been granted absent financial  X- xdifficulties. See, e.g., Louis C. DeArias, Receiver, 11 FCC Rcd 3662 (1996); Alta Gulf FM, Inc.,  X- x{10 FCC Rcd 7750, 7751 (1995); Henry Broadcasting Co., 11 FCC Rcd 1175 (1995); Atlantic  X- xMorris Broadcasting, Inc., 10 FCC Rcd 9495 (1995); Secret Communications Ltd., 10 FCC Rcd 6874 (1995).  x16. Finally, HP and HP II have shown that the proposed combinations will not create any undue  xconcentration of ownership or control of the broadcast media in the Tuscaloosa market or the  x?Birmingham market. In the Birmingham DMA, there are 10 television stations, including"7( ,T'T'33"  xWDBB(TV), licensed to 9 separate owners. In addition, there are 15 FM stations and 17 AM  x=stations in the Birmingham television metro market, licensed to 23 separate owners. Following  xconsummation of the proposed transaction, these 42 broadcast stations will be licensed to 31  xseparate owners. HP also has shown that the Birmingham DMA is served by 37 cable operators  xreaching 65.5% of the total households in the market, 15 low power television stations, 5 daily  xMnewspapers and 10 weekly newspapers. The level of diversity that would be present in the  xKBirmingham market after the proposed combination is consistent with the level we have approved  X_- xin previous waiver requests. See, e.g. Moosey Communications, Inc., 8 FCC Rcd 5247, 5249  XH- x(1993)(24 separate voices, 1 daily newspaper and 73% cable penetration); Liggett Broadcasting,  X1- x Inc., 7 FCC Rcd 7124, 712526 (1992)(28 separate voices, 7 daily newspapers and 51% cable  X - xypenetration); South Central Communications Corp., 5 FCC Rcd 6697, 669899 (1990)(26 separate voices, 2 daily newspapers and 61.9% cable penetration).  x[17. In the Tuscaloosa DMA, HP II has shown that there are 6 FM stations, 5 AM stations and  x2 UHF television stations, including WDBB(TV), held by 9 separate owners. Furthermore,  xbecause there is no television metro market in the onecounty Tuscaloosa DMA, we also count  xZas market stations those radio stations whose principal community service contours substantially  xcover Tuscaloosa and those television stations whose Grade B contours substantially cover  Xb- x\Tuscaloosa.ebbL yO- xԍ HP II has provided information regarding these additional stations at the staff's request. Although HP II  xprovided information regarding the number of radio stations whose principal community service contours enter or  xwcover Tuscaloosa and the number of television stations whose Grade B contours enter or cover Tuscaloosa, we count  xYonly those television stations whose Grade B contours and those radio stations whose principal community contours we have determined substantially cover Tuscaloosa. e See Gadsden Broadcasting Company, 10 FCC Rcd 8741, 8743 and n. 4 (1995).  xBased on these showings, we find that there are at least an additional 12 radio stations and 6  xtelevision stations held by 14 separate owners that serve Tuscaloosa. Thus, there are a total of  x8 television stations and 23 radio stations serving Tuscaloosa. Following consummation of the  xproposed transaction, these 31 broadcast stations will be licensed to 22 separate owners. HP II  xzalso has demonstrated that the Tuscaloosa DMA is served by 4 cable operators with 78.6%  xkpenetration. The level of diversity that would be present in the Tuscaloosa market after the  xiproposed combination is consistent with the level we have approved in previous waiver requests.  X- xWestar Broadcasting, Ltd., FCC 96364 (rel. September 12, 1996)(15 separate voices in the 188th  X- xranked market); Perry Television, Inc., 5 FCC Rcd 1667, 1671 (1990)(14 separate voices in the 130th ranked market).  x<18. With respect to economic concentration and competition, our independent analysis indicates  xithat in the Tuscaloosa DMA, WTNW(AM) and WBHJ(FM) garner 13.3% of the radio advertising  X - xrevenue. xbL yOI$- xiԍ Advertising revenue was obtained from BIA. See discussion supra at n. 13 regarding BIA's definition of the Tuscaloosa market. No advertising revenue share is reported for television stations in the Tuscaloosa  xMmarket and thus we are not able to determine the combined radio and television advertising"  ,T'T'33="  xrevenue share of WTNW(AM), WBHJ(FM) and WDBB(TV) in Tuscaloosa. In the Birmingham  xLmarket, WBHK(FM) garners 0.6% of the advertising revenue. No advertising revenue share is  xreported for WDBB(TV) in the Birmingham market and therefore we are not able to determine  xthe combined radio and television advertising revenue share of WDBB(TV) and WBHK(FM) in Birmingham.  x19. We conclude that, on balance, granting a permanent waiver will not unduly affect  x0competition or diversity in either the Tuscaloosa market or the Birmingham market. The  xcombination does not involve powerful stations nor do the stations garner a significant percentage  xyof advertising revenue. Moreover, HP and HP II have demonstrated that economic efficiencies will be gained and such benefits support the grant of a permanent waiver.  x20. Accordingly, IT IS ORDERED, that the requests for waiver of the Commission's onetoa x|market rule, 47 C.F.R. Section 73.3555(c), to permit common ownership of WDBB(TV),  xBessemer, Alabama; WBHJ(FM) and WTNW(AM), Tuscaloosa, Alabama; and WBHK(FM), Warrior, Alabama, ARE HEREBY GRANTED.  x21. IT IS FURTHER ORDERED, that having found that the applicants are fully qualified and  x=that a grant of the application would be in the public interest, the abovecaptioned application  xto assign the licenses of WBHJ(FM) and WTNW(AM), Tuscaloosa, Alabama from Alabama Universal Corporation to H and P Radio Birmingham II, LLC IS HEREBY GRANTED.  x22. IT IS FURTHER ORDERED, that having found that the applicants are fully qualified and  x=that a grant of the application would be in the public interest, the abovecaptioned application  xto assign the license of WBHK(FM), Warrior, Alabama from North South Broadcasting Company, L.L.C. to H and P Radio Birmingham , LLC IS HEREBY GRANTED. x` `  hh@FEDERAL COMMUNICATIONS COMMISSION x` `  hh@William F. Caton x` `  hh@Acting Secretary