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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In re Application of ) ) MEREDITH CORPORATION ) File No. BPCT-960626KE ) For Construction Permit to Modify the) Licensed Facilities of Television Station) WOFL(TV), Orlando, Florida ) MEMORANDUM OPINION AND ORDER Adopted: November 3, 1998 Released: November 5, 1998 By the Chief, Mass Media Bureau: 1. The Commission, by the Chief, Mass Media Bureau, acting pursuant to delegated authority, has before it for consideration the above-captioned unopposed application of Meredith Corporation (Meredith) for a construction permit to modify the licensed facilities of television station WOFL(TV) (FOX), Channel 35, Orlando, Florida ("WOFL"). Meredith is also the licensee of WOGX-TV (FOX), Channel 51, Ocala, Florida ("WOGX"). Because the Grade B contour of WOFL's proposed facilities overlaps the Grade B contour of WOGX, Meredith requests a waiver of the Commission's television duopoly rule, 47 CFR  73.3555(b), to allow common ownership of WOFL as modified and WOGX. 2. Background. Previously, in Letter to John Newcomb from Barbara A. Kreisman, Chief, Video Services Division (September 1, 1995), the Commission granted Meredith a permanent duopoly waiver based on the de minimis nature of the two stations' overlapping Grade B contours. The Commission has characterized a de minimis signal overlap as one in which the overlap area represents less than 1% of both the area and population of the Grade B contour of each station. See Hubbard Broadcasting, Inc., 2 FCC Rcd 7374 (1987). As demonstrated in the engineering exhibit included with the WOFL modification application, the proposed changes to the facilities of WOFL will, for the most part, increase the amount of Grade B overlap with WOGX, both in terms of land area and population, to more than 1%. Therefore, the overlap is no longer de minimis. Nevertheless, Meredith maintains that a grant of a further duopoly waiver would be consistent with Commission precedent and the public interest. 3. Duopoly Waiver Request. Meredith's engineering exhibit demonstrates that, even after WOFL modifies its facilities, there will be no Grade A contour overlap between WOFL and WOGX. According to Meredith's calculations, the Grade B overlap area of the proposed facilities of WOFL and WOGX encompasses 15,063 individuals and 318 square kilometers, comprising approximately 0.73% of the population and 1.75% of the land area within WOFL's proposed Grade B contour and 2.5% of the population and 2.1% of the land area within WOGX's Grade B contour. Meredith contends that the extent of the overlap created by the proposed modification is well below the thresholds granted by the Commission in recent overlap cases. 4. Meredith calculates that a total of 12 television stations (10 commercial and 2 noncommercial), excluding WOFL and WOGX, serve part or all of the Grade B overlap area. Meredith states that the area is served by at least 8 AM radio stations providing at least a 0.5 mV/m signal and 26 FM radio stations providing at least a 1 mV/m signal over the entire overlap area. Additionally, Meredith states that the overlap area is served by 27 cable television operators with a cable penetration rate of 78% and 4 daily newspapers. 5. Meredith maintains that the Ocala and Orlando television markets are quite distinct and that each community is located in a different Designated Market Area ("DMA"). Ocala is located in the Gainesville DMA, the 167th largest, and Orlando in the Orlando-Daytona Beach-Melbourne DMA, the 22nd largest. Meredith states that these communities are located approximately 70 miles apart and the stations serve different geographic areas. WOGX, licensed to Ocala, serves the western side of Florida, with its Grade B signal reaching the Gulf of Mexico. In contrast, WOFL, licensed to Orlando, serves the central and eastern portions of the state, with its Grade B contour reaching the Atlantic Ocean. Meredith points out that grant of the WOFL modification application will not permit the station's Grade B signal to be received in any additional counties located in the overlap area. 6. Meredith states that, in order to achieve staffing efficiencies and to avoid duplication of resources in operating WOGX, some WOFL department heads hold combined responsibilities for both WOFL and WOGX in management, news, sales, traffic, promotion, business, production, programming, and engineering. However, Meredith notes that it employs 22 persons full-time whose responsibilities are dedicated solely to the operation of WOGX. As for programming, both stations are Fox affiliates and Meredith states that all WOGX programming originates from the WOFL studios. The 30 minute news program broadcast daily on both stations is dedicated exclusively to Ocala-Gainesville news with reports gathered by WOGX news staff. The opening nine minute segment of the news program is separately programmed for each television station, providing a discrete, locally-oriented opening news summary to each station's audience. 7. Discussion. In adopting the duopoly rule's fixed standard of prohibiting overlap of Grade B service contours, the Commission also acknowledged the need for "flexibility" in that rule's application, noting that waivers should be granted where rigid conformance to the rule would be "inappropriate." Multiple Ownership of Standard, FM and Television Broadcast Stations, 45 FCC 2d 1476, 1479 n.12, recon. granted in part, 3 RR 2d 1554 (1964). To that end, the Commission has developed a set of factors to be considered when evaluating an applicant's request for waiver of the duopoly rule, including the extent of the overlap, the number of media voices available in the overlap area, the distinctness of the respective markets, the independence of the stations' operations, and the concentration of economic power resulting from the combination. See Iowa State University Broadcasting Corporation, 9 FCC Rcd 481, 487-88 (1993), aff'd sub nom. Iowans for WOI-TV, Inc. v. FCC, 50 F.3d 1096 (D.C. Cir. 1995); H&C Communications, Inc., 9 FCC Rcd 144, 146 (1993). After weighing the factors, the Commission considers any public interest benefits proposed by the applicant to determine whether, in light of the overlap, the benefits outweigh any detriment which may occur from grant of the waiver. See, e.g., Iowa State University, 9 FCC Rcd at 487-88. As with any waiver, it will only be granted if the Commission concludes that the waiver is in the public interest. 8. Currently, the Commission is reexamining its broadcast television ownership policies, including the duopoly rule. In January 1995, the Commission proposed a new analytical framework within which to evaluate its broadcast television ownership rules. See Television Ownership Further Notice, supra. Subsequent to the release of the Television Ownership Further Notice, Congress directed the Commission to conduct a rulemaking proceeding to determine whether to retain, modify or eliminate existing limitations on the number of television stations that an entity may control within the same television market. See Section 202(c) of the Telecommunications Act of 1996, Pub. L. No. 104-104, 110 Stat. 56 (Feb. 8, 1996) ("Telecomm Act"). In response to this Congressional directive in the Telecomm Act and to update the record, the Commission released the Television Ownership Second Further Notice. In that Second Further Notice, the Commission tentatively concluded to authorize common ownership of television stations that are in separate DMAs and whose Grade A contours do not overlap. Television Ownership Second Further Notice at  57. 9. The Commission stated in the Television Ownership Second Further Notice that it will be inclined, during the pendency of the television ownership proceeding, to grant temporary duopoly waivers involving stations in different DMAs with no overlapping Grade A contours, conditioned on coming into compliance with the outcome of the proceeding within six months of its conclusion. It also noted there its tentative conclusion that the record in that proceeding "supports relaxation of the geographic scope of the duopoly rule from its current Grade B overlap standard to a standard based on DMAs supplemented with a Grade A overlap criterion." Id. at  57. The Commission further stated that "we do not believe granting waivers satisfying the proposed standard, and conditioning them on the outcome of this proceeding, will adversely affect our competition and diversity goals in the interim." Id. Additionally, the Commission gave the staff delegated authority to act on applications seeking waivers consistent with this interim policy. Id. 10. Given the clearly articulated policy in the Television Ownership Second Further Notice, we do not believe that an unconditional grant of a duopoly waiver to permit common ownership of the modified facilities of WOFL and WOGX is appropriate. See WHOA-TV, Inc., 11 FCC Rcd 20041, 20046-47 & 20051 (1996). However, we believe that grant of a conditional waiver of the duopoly rule, subject to the outcome of the pending ownership proceeding, is justified in this case. The temporary common ownership of the modified facilities of WOFL and the licensed facilities of WOGX would be consistent with the interim policy set forth in the Television Ownership Second Further Notice, as the stations are in separate DMA's and there is no Grade A overlap between them. Moreover, our examination of the record presented here reveals nothing suggesting that we should not follow the established interim policy in this case. Accordingly, we conclude that grant of a temporary waiver, conditioned on the resolution of the pending broadcast television ownership rulemaking, will serve the public interest, convenience and necessity. Any requests to extend this conditional waiver should be filed at least 45 days prior to the end of the six-month period and would be closely scrutinized. Additionally, we find Meredith has met our technical requirements and we grant the application for modification of WOFL. 11. Accordingly, IT IS ORDERED, that the request for a conditional waiver of Section 73.3555(b) IS GRANTED to permit the common ownership of the modified facilities of WOFL and WOGX, subject to the outcome of the Commission's pending broadcast ownership rulemaking in MM Docket Nos. 91-221 and 87-8. Should divestiture be required as a result of that proceeding, Meredith Corporation is directed to file, within six months from the release of the final order in MM Docket Nos. 91-221 and 87-8, an application for Commission consent to dispose of such station as would be necessary for it to come into compliance with the rules as provided in the final order. 12. IT IS FURTHER ORDERED, that the application for modification of license of WOFL(TV), Orlando, Florida (BPCT-960626KE) IS GRANTED. FEDERAL COMMUNICATIONS COMMISSION Roy J. Stewart Chief, Mass Media Bureau