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Lyle  xstates that its counterproposal proposed the substitution of Channel 268C1 for Channel 268B at Carbondale, Illinois,  xand the modification of Station WCILFM's license accordingly. To accommodate the upgrade, Lyle also requested  x that a site restriction of 9.6 kilometers southeast be imposed, if Channel 267C3 is retained at Tiptonville. Lyle further  xwadvises that neither Hailey nor Twin States interposes any objection to the site restriction proposed for Tiptonville.  xMoreover, Lyle states that petitioner's counterproposal to substitute Channel 247A for Channel 267C3 at Tiptonville  xYwould have no impact upon the proceeding in MM Docket 97168. Therefore, Lyle renders no opinion on whether  xJthe Commission should delete Channel 267C3 or substitute Channel 247A at Tiptonville, other than to request that Channel 267C3 be siterestricted if retained. Reply comments were filed by petitioner, Hailey, and Twin States.  X- x` `   {x2. Petitioner states that its counterproposal would result in a preferential arrangement of  xFM allotments under the Commission's policies because it would provide a first local aural  X- xjservice at Tiptonville (population 2,149),]H > yO-ԍAll population figures are taken from the U.S. Census] while providing the larger, faster growing community  xof Martin (population 9,246) with the ability to expand its existing service to a significantly  xgreater population. Petitioner argues that the Commission "regularly" substitutes a lesser class  xjchannel for a higher class, provided an interest has been expressed in the lesserclass channel,  X1- x[citing Perry, Florida, et al., 11 FCC Rcd 4643 (1996). Petitioner further argues that the proposed  x.upgrade can only be accomplished by deleting Channel 267C3 at Tiptonville and allotting it to  xMartin. It is wellsettled, asserts petitioner, that the Commission strongly favors a licensee's  xmaximization of its existing service to the public, particularly where it will serve a significantly  xjlarger population. Petitioner further asserts that substituting Channel 247A for vacant Channel  x267C3 at Tiptonville would not cause any disruption to an "existing service" on which the public  X - xhas come to reply, citing, Sanibel and San Carlos Park, Arizona 10 FCC Rcd 7215 (1995).  xPetitioner claims that the Class C3 upgrade at Martin would result in a 46% increase in  xjpopulation served and that nearly 30,000 listeners would gain at least primary service (60 dBu).  x.Petitioner further claims that the allotment of the higher Class C3 faclility to Martin rather than  xto Tiptonville would provide upgraded FM service to the more populous community of Martin.  xNPetitioner states its intention to apply for Channel 267C3 at Martin and Channel 247A at  xTiptonville, if allotted. Petitioner also states its willingness to reimburse Station WWEZ(FM) at Trenton, Tennessee, for its reasonable costs incurred in moving to Channel 249C3.  X-x` `  "0*%%ZZT"Ԍ X-  x3. In response to the Notice, Hailey and Twin States filed comments and reply comments  xopposing the deletion of Channel 267C3 at Tiptonville, Tennessee, or alternatively, the  X- xsubstitution of Channel 247A for Channel 267C3 at Tiptonville, Tennessee. Both Hailey@> yOK- xhԍIn regard to the Tiptonville C3 allotment Hailey notes that WENK of Union City, Inc. ("WENK") was awarded  xithe construction permit to construct what became Station WAAT(FM) at Tiptonville. On September 15, 1994,  xwWENK filed applications for an extension of time to construction and for a modification of its construction permit,  xYseeking to move its site. Hailey states that on October 27, 1995, the Commission refused to grant the modification  x;sought by WENK and refused to grant the extension of time to permit construction at the original site. A petition  xfor reconsideration was filed by WENK, but by letter dated July 31, 1996, the Commission denied the petition for  xreconsideration, cancelled the permit and deleted the call sign. Hailey states on August 22, 1996, WENK notified the Commission that it would not seek further appeals of the Commission action.  and  xTwin States express their interest in vacant Channel 267C3 at Tiptonville and state their intention  X- x[to apply for the channel, if retained. Twin States argues that petitioner's proposal to substitute  X- xChannel 247A in lieu of Channel 267C3 at Tiptonville is not in the public interest since petitioner  xis the only party to express an interest in a Class A allotment. Twin States further alleges that  xpetitioner's statement that it will effectuate the upgrade at Martin and construct and operate a  xClass A facility at Tiptonville is an "ingenious but unpersuasive ploy," since petitioner has "no  xreal interest" in serving Tiptonville. Moreover, while Tiptonville is a community that deserves  xKits own local service, Twin States asserts that the town and the surrounding area are too sparsely  xpopulated and too wellserved by other regional stations to support a station whose own coverage  x[would be restricted. Thus, argues Twin States, wide area coverage is a prerequisite for service  xby a new station in that community. Consequently, since a desire to construct a Class C3 facility  xhas been expressed, and it has been determined that a Class A station cannot be reasonably be  xconstructed in Tiptonville, Twin States argues that Channel 267C3 should be retained.  xMAccordingly, Hailey and Twin States urge that petitioner's counterproposal requesting the  x-substitution of Channel 247A for vacant Channel 267C3 at Tiptonville be denied since an interest  Xb-has been expressed for the retention of the Class C3 allotment.  X4-  l x4. In its reply comments, petitioner reiterates its earlier arguments. Petitioner claims that  xLHailey's comments are deficient because of his failure to state his intention to promptly build a  xstation, if authorized. Petitioner asserts that it is wellsettled that expressions of interest that are  X- xnot timely filed in contested proceedings are not acceptable, citing Santa Isabel, Puerto Rico and  X- x^Christiansted, Virgin Islands 3 FCC Rcd 2336, 2337 (1988); Franklin and White Castle,  X- xLouisiana, 11 FCC Rcd 8662 (1996); and Oakhurst, Firebaugh and June Lake, California, 9 FCC  X- xRcd 655 n.3 (1994) (failure to state an interest in a channel can cause a dismissal of the  xproposal). Thus, because of this omission, petitioner argues that Hailey's comments should not  X|-be accepted. |> yO"-  ԍWe note that Hailey's comments did express an interest in applying for Channel 267C3 at Tiptonville, and Hailey's reply comments stated his interest in applying for and constructing a Class C3 facility. "e( 0*%%ZZ"Ԍ X-  x5. Discussion. As a threshold matter, we recognize that the petitioner styled its  xadditional proposal to substitute Channel 247A for Channel 267C3 at Tiptonville and the related  xsubstitution of Channel 249C3 for Channel 248C3 at Trenton as a counterproposal. However,  xupon reexamination, this proposal is not a counterproposal because the proposed allotments at  X- x]Tiptonville and Trenton do not conflict with the allotment proposed in the Notice in this  xproceeding. In this regard, it is wellestablished that "[a] counterproposal is a proposal for an  xalternative and mutually exclusive allotment or set of allotments in the context of the proceeding  X_- xzin which the proposal is made." See Implementation of BC Docket No. 8090 to Increase the  XH- xAvailability of FM Broadcast Assignments, 5 FCC Rcd 931, 933 n.5 (1990). Rather than being  x.a counterproposal, this proposal is an alternative allotment plan for resolving this proceeding, which for the reasons that follow, will not be granted.   x6. Based on the information before us, we believe tha )%rq t the public interest would be served  xzby retaining Channel 267C3 at Tiptonville, Tennessee, since there have been expressions of  X - x interest for the Class C3 allotment. > yO7- x-ԍAlthough Lyle requested a site restriction for Channel 267C3 for Tiptonville, that issue will be addressed in MM Docket No. 97168. As stated in the Notice, it is Commission policy not to  X - xdelete a channel in which an interest has been expressed. See e.g., Calhoun City, Mississippi,  X- x11 FCC Rcd 7660 (1996); Driscoll,et al., Texas, 10 FCC Rcd 6528 (1995); and Woodville,  Xy- xMississippi, et al., 9 FCC Rcd 2769 (1994). In this case, Hailey and Twin States have filed  xcomments stating their intention to file applications for Channel 267C3 at Tiptonville, Tennessee.  x Under these circumstances, an allotment at Tiptonville must be retained. Since petitioner's  xoriginal proposal requires deletion of the Tiptonville allotment, it will be denied. Likewise,  xalthough the petitioner's alternative proposal requested the substitution of Channel 247A in lieu  xof Channel 267C3 at Tiptonville, only petitioner has expressed an interest in a Class A allotment.  x[Since the other interested parties have expressed their interest in a Class C3 allotment only, we  x{find no overriding public interest benefit for downgrading the allotment to accommodate  xipetitioner's proposed upgrade at Martin, Tennessee. While we recognize that the proposed Class  xC3 upgrade at Martin would provide new service to nearly 30,000 persons, the upgrade does not  x!outweigh downgrading an allotment that will provide a first local service at Tiptonville,  X|- xtriggering FM allotment priority 3. | > yOM- xiԍThe FM allotment priorities are: (1) First fulltime aural service; (2) Second fulltime aural service; (3) First local service; and (4) Other public interest matters. [Coequal weight given to priorities (2) and (3).]  See Revision of FM Assignment Policies and Procedures,  x90 FCC 2d 88, 92 (1982). Therefore, we are also compelled to deny petitioner's alternative proposal.  X -  ^x7. IT IS ORDERED, That the Secretary shall send a copy of this Report and Order by Certified Mail, Return Receipt Requested, to the following: "x 0*%%ZZ"Ԍx` `  "x 0*%%ZZ"Ԍ X-x` `  Thunderbolt Broadcasting Company   x` `  P.O. Box 318  X-x` `  Martin, Tennessee 38237h x` `  (Licensee of Station WCMTFM) x` `  JoeMyers Productions, Inc. x` `  P.O. Box 68 x` `  Marion, Kentucky 42064 x` `   x8. IT IS FURTHER ORDERED, That the petition for rule making (RM8876) and the  xalternative proposal (RM9015) filed by Thunderbolt Broadcasting Company, proposing the  X -substitution of Channel 267C3 for Channel 269A at Martin, Tennessee, ARE DENIED.(#(#X   x9. IT IF FURTHER ORDERED, That at the request of JoeMyers Productions, Inc., the  xpetition for rule making proposing the allotment of Channel 267A at Princeton, Kentucky, IS DISMISSED. x10. IT IS FURTHER ORDERED, That this proceeding IS TERMINATED. x  XK-   x11. For further information concerning this proceeding, contact Sharon P. McDonald, Mass Media Bureau, (202) 4182180.  X- ` `  hhFEDERAL COMMUNICATIONS COMMISSION x` `  hhJohn A. Karousos x` `  hhChief, Allocations Branch x` `  hhPolicy and Rules Division x` `  hhMass Media Bureau