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                     Federal Communications Commission
                          Washington, D.C. 20554


                                                         In reply refer to:
                                                                                  1800B3-MFW
                                May 4, 1998

                                                      Released: May 8, 1998

Mr. Eric Redd
724 East Bay Street
East Tawas, MI  48730

Christopher D. Imlay, Esq.
Booth, Freret, Imlay, & Tepper, P.C.
Suite 204 
1223 20th Street, N.W.
Washington, D.C.  20036-2304

                                        In re:  NEW Commercial FM Translator, East
                                           Tawas, Michigan
                                        Eric Redd
                                        BPFT-970224TD

Gentlemen:

        This letter refers to: (1) the captioned application of Eric Redd ("Redd") for a new commercial
FM translator on Channel 248 (97.5 MHz) in East Tawas, Michigan; and (2) the May 1, 1997 petition
to deny that application, filed on behalf of Carroll Enterprises, Inc. ("Carroll"), licensee of stations
WIOS(AM) and WKJC(FM) in Tawas City, Michigan.  For the reasons set forth below, we will grant
Carroll's petition in part and dismiss Redd's application.

        Redd's translator proposes to rebroadcast station WBMI(FM), West Branch, Michigan; it will
be located beyond WBMI(FM)'s primary coverage (60 dBu) contour.  Carroll notes that the proposed
translator violates 47 C.F.R. 74.1232(d) because Redd has an impermissible business relationship
with the owner of WBMI(FM).  Specifically, Carroll states that: (1) Redd's retail carpet sale business,
Judd's Carpeting, buys advertising time on WBMI(FM); and (2) Redd's proposed transmitter location
is atop a building at 130 Newman Street, East Tawas, which is leased by Ives Broadcasting, Inc.,
WBMI(FM)'s licensee, for use 
in operation of its other station, WHST(FM) in Tawas City.

        Discussion.  In MM Docket No. 88-140, the Commission tightened and/or clarified several
technical and operational requirements for FM translator stations after affirming that the proper role
for that service was to supplement the service provided by full-service FM radio broadcast stations. 
The amended regulations prohibit the licensee of a commercial FM station, or any entity "interested or
connected with" the licensee of such a primary station, from owning an FM translator if the
translator's coverage area extends beyond the primary 
station's coverage contour.  "Interested or connected" parties include group owners, corporate parents,
shareholders, officers, directors, employees, general and limited partners, family members, and
business associates.  See 47 C.F.R. 74.1232(d).  Because of the potential for abuse, the Commission
intended for this restriction to be read very broadly.  Report and Order in MM Docket No. 88-140, 5
FCC Rcd at 7244, note 25 (1990).  The underlying rationale for this prohibition has been to prevent
FM station licensees from using FM translators as a competitive means for extending their stations'
service areas.  Id., at 7213.

        We conclude that the facts presented in this case violate the commercial FM translator
ownership restrictions contained in Section 74.1232(d).   As noted, the Commission will not issue a
commercial FM translator authorization to any person or entity having "any interest whatsoever [in] or
any connection with" a primary FM station.  Redd has evidenced several  business connections with
Ives' -- buying advertising  on the primary station and leasing transmitter site from the primary
station's owner -- that we believe are the types of relationships that the Commission anticipated and
forbade in MM Docket No. 88-140.




        Accordingly, in light of the above discussion, the petition to deny filed by Carroll
Broadcasting, Inc. IS GRANTED to the extent indicated above, and the application (File No. BPFT-
970224TD) of Eric Redd for a new FM translator station on Channel 248 in East Tawas, Michigan, IS
DISMISSED.

        
        Sincerely,


        Linda Blair, Chief
        Audio Services Division
        Mass Media Bureau