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The Commission, by the Chief, Mass Media Bureau, acting pursuant to delegated authority,  S@- xhas before it: (1) the above-captioned application for assignment of the license of KMKY(AM),@? yO-ԍ KMKY(AM)'s prior call sign was KDIA(AM). The new call sign became effective on January 20, 1998. Oakland,  xCalifornia from Pacific FM, Inc. ("Pacific FM") to KGOAM Radio, Inc. ("KGO Radio"); and (2) a related  xrequest for permanent waiver of 47 C.F.R.  73.3555(c), the Commission's onetoamarket rule, which  S- xrestricts common radio and television station ownership in the same market. X? yO- xЍ#]\  PCqP# #C\  P6QP#Section 73.3555(c) of the Commission's rules prohibits the common ownership of radio and television stations  x,in the same market if the 2 mV/m contour of an AM station or the 1 mV/m contour of an FM station encompasses  xYthe entire community of license of a television station or, conversely, if the Grade A contour of a television station  yO-encompasses the entire community of license of an AM or FM station. #x6X@K/X@#і The application and the  x[waiver request are unopposed. For the reasons set forth below, we grant the assignment application and  Sx-a conditional waiver of our onetoamarket rule. ~x@? yOX - xiЍ#X\  P6G;qP# #C\  P6QP# The Commission has delegated to the Mass Media Bureau authority to act on uncontested onetoamarket  yO !- xiwaiver requests that involve stations in the top 100 television markets and that present no new or novel issues.   {O!- xLouis C. DeArias, Receiver, 11 FCC Rcd 3662, 3667 (1996) ("DeArias"); see also Review of the Commission's  {O"- x-Regulations Governing Television Broadcast Ownership, Second Further Notice of Proposed Rule Making, MM  {O|#- xDocket No. 91221 and 878, 11 FCC Rcd 21655, 21689 n.130 (1996) ("Second Further NPRM"). No new or novel  xissues are presented and the stations involved are located in the San FranciscoOaklandSan Jose Designated Market Area ("DMA"), which is ranked 5th in the country.   S(-  x2. KGO Radio is the licensee of KGO(AM) and KSFO(AM), both of which are licensed to San"( 0*''ZZl"  xMFrancisco, California. KGO Radio's sister corporation, KGO Television, Inc., is the licensee of VHF  xstation KGOTV, San Francisco, California, an ABC affiliate. KGO Radio and KGO Television are both  xsubsidiaries of ABC, Inc., ("ABC") which in turn is a subsidiary of the Walt Disney Company ("Disney").  xIn 1997, the Commission approved the merger of Disney with Capital Cities, Inc./ABC ("CC/ABC") and  xgranted applications approving the transfer of control of the broadcast licenses and permits of CC/ABC  S8- xto Disney. See Capital Cities/ABC, Inc., 11 FCC Rcd 5841 (1996). Prior to the CC/ABC and Disney  xmerger, KGO Radio, which was then a whollyowned subsidiary of CC/ABC, was granted a onetoa S- xmarket waiver in 1989 to retain common ownership of KGO(AM) and KGOTV. See Capital Cities/ABC,  S- xMInc., 4 FCC Rcd 5498 (1989). In 1995, KGO Radio was granted another permanent onetoamarket  x<waiver to acquire KSFO(AM), San Francisco, California, to be commonly owned by its parent corporation,  Sv- xLABC, Inc., with VHF station KGOTV, and KGO(AM), San Francisco. See First Broadcasting Co., 10 FCC Rcd 2904 (1995).  S( -x ` `  S -  Ax3. Grant of the instant assignment application would create a new radiotelevision station  xcombination because the Grade A contour of KGOTV encompasses the entire community of license of  x-KMKY(AM) in Oakland, California. KGO Radio's proposed acquisition of this station also implicates the  S - x.radio local ownership rulesG { yO-ԍ 47 C.F.R.  73.3555(a)(1).G because the principal community contours of KGO(AM), KSFO(AM) and  xKMKY(AM) overlap. Consequently, KGO Radio has submitted a showing to demonstrate that its  xacquisition of KMKY(AM) complies with the radio local ownership rules and has requested a permanent  xonetoamarket rule waiver to permit common ownership of one TV and three AM stations in the San FranciscoOaklandSan Jose DMA, the 5th largest.  Q-OnetoaMarket Waiver ShowingĐ Sp-TP x  SH-  x4. KGO Radio bases its request on the onetoamarket waiver standards adopted in the Second  S"- xReport and Order in MM Docket No. 877, 4 FCC Rcd 1741 (1989) ("Second Report and Order"), recon.  S- xjgranted in part and denied in part, 4 FCC Rcd 6489 (1989) ("Second Report and Order Recon."). Under  xKthese criteria, the Commission presumptively favors waiver requests involving station combinations serving  xthe top 25 markets where there are at least 30 separately owned, operated, and controlled broadcast  S- xlicensees or "voices" after the proposed combination ("top 25 market/30 voice standard").%"X{ yO~- xЍ Pursuant to the statutory directive "to extend its [onetoamarket] waiver policy to any of the top 50 markets,  xwconsistent with the public interest, convenience and necessity," under the Telecommunications Act of 1996, Pub. L.  xNo. 104104,  202(d), 110 Stat. 56 (1996), the Commission is considering a proposal to implement extension of  {O-the waiver policy in the Second Further NPRM, 11 FCC Rcd at 21685.% The  xCommission also favors waiver requests involving "failed" broadcast stations, that is, stations that have  S6- xnot been operating for a substantial period of time or that are in bankruptcy proceedings. See 47 C.F.R.  x 73.3555, note 7. Waiver requests not eligible for consideration under either the "top 25 market/30  xvoice" standard or the "failed station" standard are evaluated under the more rigorous casebycase  S-standard, as set forth in the Second Report and Order.  Sr-  x5. KGO Radio contends that it is entitled to a presumptive waiver under the top 25 market/30"rB0*%%ZZ"  S- xvoice standard, but in the alternative submits a casebycase showing. As we have stated previously, in  xjlight of the Commission's ongoing consideration of possible revisions to the onetoamarket prohibition,  xincluding the impact of the revised ownership limits, we will consider onetoamarket waiver requests  xunder the casebycase standard where the proposed transaction involves the common ownership of a  S`- xtelevision station and more than one sameservice radio station. See Memorandum Opinion and Order  S:- xzin MM Docket 91140, 7 FCC Rcd 6387, 6394 n.40 (1992); see also Moosey Communications, Inc., 8  xFCC Rcd 5247 (1993) (consideration of onetoamarket waivers under the casebycase standard still  xappropriate where new radioTV combinations are created, pending the possible revision of the onetoa xmarket rule in the outstanding TV ownership proceeding in MM Docket No. 91221). We note further  xKthat KGO Radio itself concedes that, "[w]ith the proposed combination, KGO Radio would own three AM  St-stations in the market and thus fall[s] under the casebycase analysis.";t{ {O -ԍ Id. at 45.;  S$ -  ]x6. Under the casebycase standard, the Commission makes a public interest determination based  xupon the following five criteria: (1) the potential public service benefits that will arise from the joint  xyoperation of the facilities involved, such as economies of scale, cost savings and programming and service  xbenefits; (2) the types of facilities involved; (3) the number of media outlets owned by the applicant in  xthe relevant market; (4) the financial difficulties of the stations involved; and (5) the nature of the relevant  S\- xMmarket in light of the level of competition and diversity after joint operation is implemented. Second  S6- x/Report and Order, 4 FCC Rcd at 175354. In enunciating the five factors to be considered under the  xcase-by-case standard, the Commission noted that not all five factors must be satisfied in each case, but  xrather the overall consideration of these factors must weigh in favor of granting the waiver request.  S- xMSecond Report and Order Recon., 4 FCC Rcd at 6491. In support of its waiver request, KGO Radio submits a showing which addresses each of the five factors.  SJ-  x7. Public Service Benefits of Joint Operation. KGO Radio states that economic efficiencies would  xbe derived by joint radioTV ownership. Specifically, KGO Radio anticipates $90,000 annually in savings  x-through reduced rent and utilities costs by moving the KMKY operation, upon the expiration of its present  xlease, to the studio building owned by KGOTV from which the existing KGO radio facilities operate.  x?KGO Radio also anticipates savings of approximately $280,000 annually from merging KMKY's  xengineering, traffic and business staff functions with KGO's radio personnel and through the sharing of  xa general manager among the three AM stations. Other cost efficiencies of approximately $100,000 would  xjresult from KMKY's affiliation with ABC through access to ABC's management and financial personnel,  x]sale of advertising time through ABC's use of Katz Media, and volume discounts on supplies and equipment.  S-  x8. According to KGO Radio, these cost efficiencies will help improve programming and public  xzservice benefits. Specifically, plans are underway for KMKY to adopt a children's radio format as an  x.affiliate of Radio Disney, a children's radio network that KGO Radio claims is dedicated to high quality,  xwholesome programming. The Radio Disney format includes virtually aroundthe clock entertainment,  xjmusic, educational, and informational programs and callin shows specifically designed for children under  x12 and their parents. KGO Radio states that given the nature and relatively small size of the potential"!Z0*%%ZZ7#"  xaudience for radio children's programming, the success of the venture is heavily dependent upon providing  x=the service in the most efficient manner possible. Although KMKY will be operated separately because  xof its unique format, KGO Radio asserts that the efficiencies flowing from joint ownership with KGOTV,  xKGO(AM) and KSFO(AM) will play a vital role in this regard. KGO Radio asserts further that with the  xZaddition of KMKY to the existing radioTV combination, there would be opportunities for crosspromotion  x<with KGOTV's successful morning children's TV schedule. Additionally, KMKY could draw upon KGO xTV's award winning expertise to implement community events and public service announcement  x.campaigns dedicated to literacy, drugs and seat belt safety. There would also be opportunities for joint  xkTV and radio sponsorship of charitable and community events and joint ascertainment of community needs. x  SH -  x9. Types of Facilities. Among the two AM stations owned by KGO Radio, KGO(AM) is a Class  xA AM station that operates full time on 810 kHz at 50 kW using a full time directional antenna and  xKSFO(AM) is a Class B AM station that operates on 560 kHz at 5 kW using a nondirectional antenna  x\daytime and with 5 kW using a directional antenna nighttime. KMKY(AM), the station KGO Radio  x{proposes to acquire, is a Class B AM station that operates on 1310 kHz at 5 kW using a full time  xdirectional antenna. KMKY(AM) was granted a construction permit to increase power to 20 kW, File No.  x.BP960213AB. KGO Radio states that there are two AM stations, KNBR and KCBS, whose coverage  xapproaches or exceeds KGO(AM)'s coverage. Additionally, there are at least 18 AM stations with  xcomparable coverage to that of KSFO's daytime coverage. There are also at least 14 Class B FM stations  xlicensed to San Francisco. With regard to the technical facilities of its television station, KGOTV, an  xABC affiliate, is a VHF television station operating on Channel 7 at 316 kW visual at an antenna height  xof 1,670 feet above average terrain. KGO Radio states that there are 5 other VHF television stations with facilities comparable to KGOTV that serve the market.  QB-  S-  ?x 10. Other Media Outlets. As noted above, ABC, Inc. through its subsidiaries owns and operates  xKGOTV, KGO(AM) and KSFO(AM). Neither ABC, Inc. nor its related corporations own other broadcast or print interests operating in the San FranciscoOaklandSan Jose market. x  S|-  x#&J\  P6Q &P# 11. #o\  PC 2XP## &a\  P6G;RY&P##&J\  P6Q &P#Economic Status.  KGO Radio does not address this factor, or claim that any of the stations in the proposed combination are in financial distress.  S-  #&a\  P6G;RY&P#x#&J\  P6Q &P# 12. Competition and Diversity in the Market. KGO Radio contends that its proposed combination  xof one TV station with three AM radio stations will not have an adverse effect on the level of diversity  xand competition in the 5th largest DMA. Moreover, the audience shares of the three radio stations  x=combined would be only 10.6% according to Arbitron Radio, Summer 1997 Survey. According to KGO  xRadio, this "robust media market" is served by 22 TV stations and at least 80 radio stations with a  xycombined television and radio voice count of at least 63 voices. Additionally, KGO Radio states that the  xcable penetration rate for the San FranciscoOaklandSan Jose DMA is high at 71% and that the market  S -is served by 24 daily newspapers. x Q"-9ZDiscussion T  SP$-  TPx 13. Radio Ownership Rules.  We turn first to KGO Radio's compliance with our local radio"P$0*%%ZZ%"  xownership rules. 47 C.F.R. 73.3555(a)(1). Our analysis of the data KGO Radio has submitted indicates  S- x-that the radio market formed by the mutually overlapping contours of its proposed commonly owned radio  xMstations consists of 86 commercial radio stations. Under our rules, in a radio market with 45 or more  xcommercial radio stations, a party may own, operate, or control up to eight commercial radio stations, not  xmore than five of which are in the same service (AM or FM). KGO Radio's proposed ownership of three  xcommercial AM radio station in this market complies with the numerical local ownership cap for radio  xstations. Moreover, our review of the record in this case reveals no other circumstances that would  xpreclude grant of the applications under the radio ownership rules. We conclude that, with respect to local radio ownership, KGO Radio's acquisition of KMKY(AM) would serve the public interest. x  Sp-  ?x 14. OnetoaMarket Waiver. Turning to the substance of KGO Radio's onetoamarket waiver  x>request, we will follow the policy established in recent onetoamarket waiver cases where the radio  xcomponent to a proposed combination exceeds those permitted prior to the adoption of the  S - xTelecommunications Act of 1996. See Maximum Media, Inc., 12 FCC Rcd 3391, 339596 (1997); see  S - xalso S.E. Licensee G.P., 11 FCC Rcd, 16727, 1673233 (1996); Shareholders of Citicasters, Inc., 11 FCC  S - xRcd 19135, 19143 (1996). In such cases, the Commission declined to grant permanent waivers of the one xktoamarket rule, and instead granted temporary waivers conditioned on the outcome of related issues  S^- xyraised in the television ownership rulemaking proceeding. Second Further NPRM, 11 FCC Rcd at 21689.  xSimilarly, we conclude that a permanent, unconditional waiver would not be appropriate here. KGO Radio  xMhas, however, demonstrated sufficient grounds for us to grant a temporary waiver conditioned on the outcome of the rulemaking proceeding.  S-  1x15. KGO Radio has demonstrated that joint ownership of KMKY with its existing radioTV  x combination will result in substantial cost savings of approximately $280,000 to $470,000 annually.  xSpecifically, these savings will be derived from reduced rent and utility costs for KMKY by moving its  xoperations to a studio building owned by KGOTV and the sharing of radio personnel. These cost savings  xwill translate into public service and programming improvements. In this regard, KGO Radio's ownership  xof KMKY(AM), as an affiliate of the Radio Disney network, will enhance children's programming by  xproviding educational programming specifically tailored to children, ages 12 and under. KMKY will be  x=operated separately because of its unique format. However, given the nature and relatively small size of  xthe potential audience for radio children's programming, the efficiencies flowing from joint ownership with  xKKGOTV, KGO(AM) and KSFO(AM) will play a vital role in the success of the venture. Moreover, there  x=will be opportunities for crosspromotion of KMKY's children's programming with KGOTV's popular  xchildren's programming. Additionally, the proposed TV and radio combination will provide opportunities  xMfor joint sponsorship of charitable and community events with KMKY augmenting its public service programming with input from KGOTV's award winning staff.  S@-  x16.  The second factor of our analysis takes into consideration the types of facilities of the stations  xzinvolved in the proposed radiotelevision combination. The Commission's "concern with the types of  xkfacilities merging under the authority of a onetoamarket waiver reflects our interest in assessing the  xpotential impact of a proposed combination of stations in a given market in order that we might predict  xand avoid any significant adverse effect on diversity or competition from too powerful a combination."  Sx#- xGreat American Television and Radio Co., Inc., 4 FCC Rcd at 634950. As we have previously  xacknowledged, KGO Radio's present station combination in the San Francisco market includes stations"R$0*%%ZZ%"  xwith substantial technical facilities including a VHF station and a Class A AM station operating at 50 kW  S- xof power. First Broadcasting Co., 10 FCC Rcd 2904, 2906 (1995). Moreover, we have acknowledged  xthat San Francisco, the fifth largest television market in the country, enjoys robust competition and  S- x{diversity. Id. There is no basis to alter this conclusion in light of KGO Radio's request to acquire  x\KMKY(AM). In addition, our independent analysis confirms that there are competing stations with  xfacilities that are comparable to KGO Radio's proposed combination including at least one other VHF  x/station with technical facilities that are identical to KGOTV and at least one other AM station with  xtechnical facilities that are identical to KGO(AM), the most powerful AM station in KGO Radio's proposed combination.  S-x  St-  x17. With regard to the third factor, KGO Radio will not own any other media outlets in the San  xFranciscoOaklandSan Jose market besides those stations specified in the proposed combination. Fourth,  xKGORadio does not state that KMKY(AM) is a failed station or that it is experiencing financial distress.  xHowever, we previously have indicated that not all five factors need be present to justify grant of a  S - xwaiver. Second Report and Order Recon., 4 FCC Rcd at 6491. We also have granted a number of one S - xtoamarket waivers where there was no finding that any of the stations were in financial distress. See,  S - xe.g., DeArias, 11 FCC Rcd at 3666; Alta Gulf FM, Inc., 10 FCC Rcd 7750, 7751 (1995); Secret  Sb-Communications Ltd., 10 FCC Rcd 6874, 687779 (1995).  S-  lx18.  Finally, the fifth factor relates to the level of diversity and competition in the market. Indicia  xkof the level of diversity include the number of broadcast outlets, the number of separately owned and  S- xoperated "voices" in the market, and the presence of cable and nonbroadcast media.v{ yO,- xЍ #]\  PCqP##C\  P6QP#As to the market definition within which to count the number of broadcast stations in the context of a onetoa xmarket waiver, the Commission considers "the relevant TV metro market for radio stations and the relevant ADI  {O- x-[Arbitron Area of Dominant Influence] TV market for TV stations." Second Report and Order at 1760 n.101.  {O- x[However, since Arbitron no longer compiles ADI data, we now accept showings using the Nielsen DMA. See  {OP- xMedia/Communications Partners L.P., 10 FCC Rcd 8116 n.3 (1995). See also Further Notice of Proposed  {O-Rulemaking, 10 FCC Rcd 3524, 3539 n.59 (1995).v The San Francisco xOaklandSan Jose market is ranked 5th in the country and, according to our independent analysis, there  xare 54 commercial and noncommercial radio stations (18 AMs and 36 FMs) and 22 commercial and  xnoncommercial television stations in the market. These 76 broadcast stations will represent 46 separately  S$- x]owned broadcast "voices" following consummation of KGO Radio's acquisition of KMKY(AM).  xAdditionally, the market is served by numerous daily newspapers and has a substantial cable penetration  xjof 71% of TV households. Therefore, the record demonstrates that the robust competition and diversity  S- xin the San Francisco market will not be adversely affect by the proposed combination. See Buckley  S-Broadcasting Corp., 9 FCC Rcd 1930 (1994). x  S8-  0x19. With respect to economic concentration and competition, our independent analysis indicates  xthat KGOTV garners 19.6 percent of television advertising revenue in the San FranciscoOaklandSan  xLJose DMA, and the three AM radio stations in KGO Radio's proposed combination garner 14.7 percent  x\of radio advertising revenues in the San Francisco Radio Metro Market. Together, the stations in the"H0*%%ZZ"  S- xproposed combination have a combined television and radio advertising revenue share of 18 percent ,T{ yOh- xJЍ#X\  P6G;qP# #C\  P6QP#Advertising revenue data is obtained from BIA Publications, Inc.'s Radio Master Access and Television Master  yO0-Access data bases. #x6X@`7/X@#T a  S- xfigure consistent with temporary onetoamarket waiver requests previously approved. See Greater Los  S- xjAngeles Radio, Inc., 12 FCC Rcd 10501 (1997) (31 percent of radio advertising revenue and 17.6 percent of combined television and radio advertising revenues in 2nd ranked market).  S<-  3x20. We conclude, based on the record, that grant of a temporary, conditional waiver is  xappropriate. Grant of the waiver will result in economic efficiencies and facilitate enhanced public interest  xprogramming without undue effect on competition or diversity in the San FranciscoOaklandSan Jose market.  St-3 Ordering Clauses ă  S$ -  x21. Accordingly, IT IS ORDERED that KGOAM Radio, Inc.'s request for a permanent waiver of the Commission's onetoamarket rule, 47 C.F.R. 73.3555(c), IS HEREBY DENIED.  S -  x22. IT IS FURTHER ORDERED, that a temporary conditional waiver of the onetoamarket rule,  x47 C.F.R. 73.3555(c), to permit common ownership of stations KGOTV, KGO(AM), and KSFO(AM),  xyall San Francisco, California, and KMKY(AM), Oakland, California IS HEREBY GRANTED, subject to  S4- xzthe outcome in the pending television ownership rulemaking proceeding, Review of the Commission's  S- xRegulations Governing Television Broadcast Ownership, Second Further Notice of Proposed Rulemaking,  S- x=MM Docket Nos. 91221 & 878, 11 FCC Rcd 21655 (1996). Should divestiture be required as a result  xof that proceeding, KGOAM Radio, Inc. is directed to file an application for Commission consent to sell  S-the necessary station(s) within six months from the release of the final Order in that proceeding.  SH-  lx23. IT IS FURTHER ORDERED, that, having found the applicants fully qualified and that grant  x.of the application would serve the public interest, the application to assign the license of KMKY(AM),  xMOakland, California from Pacific FM, Inc. to KGOAM Radio, Inc. (BAPL971209EC) IS HEREBY GRANTED.  SX-  FEDERAL COMMUNICATIONS COMMISSION x x` `  Roy J. Stewart x` `  Chief, Mass Media Bureau