******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. 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 Applications of ) ) Guy Gannett Communications ) (Assignor) ) ) and ) File Nos. BALCT-980925II ) BALCT-980925IK through IN WGME Licensee, LLC ) BALCT-980925IP through IQ WTWC Licensee, LLC ) BALTTV-980925IJ WOKR Licensee, LLC ) WICS Licensee, LLC ) WICD Licensee, LLC ) WGGB Licensee, LLC ) KGAN Licensee, LLC ) (Assignees) ) ) For Consent to the Assignment of License) of Television Stations ) ) KGAN(TV), Cedar Rapids, IA ) WGGB-TV, Springfield, MA ) WGME-TV, Portland, ME ) WICD(TV), Champaign, IL ) WICS(TV), Springfield, IL ) WOKR(TV), Rochester, NY ) WTWC-TV, Tallahassee, FL ) K13MN, Washington, IA ) ) WOKR Licensee, LLC ) (Assignor) ) ) and ) File No. BALCT-980925IR ) Central NY News, Inc. ) (Assignee) ) ) For Consent to the Assignment of License of) Television Station ) WOKR(TV), Rochester, NY ) MEMORANDUM OPINION AND ORDER Adopted: April 5, 1999 Released: April 6, 1999 By the Chief, Mass Media Bureau: I. Introduction 1. The Commission, by the Chief, Mass Media Bureau, acting pursuant to delegated authority, has before it unopposed applications seeking consent to the assignment of license of KGAN(TV), Channel 2 (CBS), Cedar Rapids, Iowa; WGGB-TV, Channel 40 (ABC), Springfield, Massachusetts; WGME-TV, Channel 13 (CBS), Portland, Maine; WICD(TV), Channel 15 (NBC), Champaign, Illinois; WICS(TV), Channel 20 (NBC), Springfield, Illinois; WOKR(TV), Channel 13 (ABC), Rochester, New York; WTWC-TV, Channel 40 (NBC), Tallahassee, Florida; and K13MN, Washington, IA, from Guy Gannett Communications (Gannett) to KGAN Licensee, LLC, WGGB Licensee, LLC, WGME Licensee, LLC, WICD Licensee, LLC, WICS Licensee, LLC, WOKR Licensee, LLC, and WTWC Licensee, LLC, subsidiaries of Sinclair Communications, Inc. (Sinclair). 2. Sinclair also requests that the Commission grant several waivers of its television duopoly rule to accomplish this multi-station transaction. In addition, Sinclair has filed an application seeking consent to the assignment of license of WOKR(TV) from WOKR Licensee, LLC to Central NY News, Inc. (Central). Central is also requesting a waiver of the television duopoly rule to accomplish its acquisition of WOKR(TV). II. Background 3. Sinclair requests that the Commission grant waivers of Section 73.3555(b), the Commission's television duopoly rule, to permit the acquisition of four of the stations involved in this transaction. The Grade B contour of KGAN-TV, Channel 2 (CBS), Cedar Rapids, Iowa, overlaps the Grade B contour of KDSM-TV, Channel 17 (Fox), Des Moines, Iowa, which is licensed to a Sinclair subsidiary. The Grade B contour of WICS(TV), Channel 20 (NBC), Springfield, Illinois, overlaps the Grade B contour of KDNL-TV, Channel 30 (ABC), St. Louis, Missouri, which is licensed to a Sinclair subsidiary. Finally, there is Grade B overlap between WICD(TV), Channel 15 (satellite of WICS(TV)), Champaign, Illinois, and WYZZ-TV, Channel 43 (Fox), Bloomington, Illinois, which is licensed to a Sinclair subsidiary. There is no Grade A overlap in any of these cases. Therefore, Sinclair requests that these waivers be granted pursuant to the interim waiver policy expressed by the Commission in connection with its pending review of the duopoly rule. See Review of the Commission's Regulations Governing Television Broadcasting, Second Further Notice of Proposed Rule Making, 11 FCC Rcd 21655 (1996) (Television Ownership Second Further Notice). 4. Central also requests a waiver of the television duopoly rule to permit common ownership of WOKR-TV, Channel 3 (ABC), Rochester, New York, and WIXT(TV), Channel 9 (ABC), Syracuse, New York, a station licensed to another subsidiary of Central's parent corporation, the Ackerley Group, Inc. While there is Grade B overlap between these stations, there is no Grade A overlap. Central also requests that the waiver be granted pursuant to the Commission's interim waiver policy. 5. In addition, Sinclair requests that the Commission grant a waiver of the television duopoly rule to permit common ownership WICS(TV) and WYZZ-TV which have overlapping Grade A contours. In this case, Sinclair requests a temporary nine-month waiver of the television duopoly rule to permit the orderly divestiture of one of these stations in order to come into compliance with the television duopoly rule. 6. Finally, to permit continued common ownership of WICD(TV) and WICS(TV), the Grade B contours of which overlap, Sinclair proposes to continue operating WICD(TV) as a satellite of WICS(TV) and requests grant of the WICD(TV) assignment application pursuant to Note 5 of Section 73.3555 of the Commission's rules, which exempts satellite stations from the duopoly prohibition. III. Discussion A. Television Duopoly Waivers 1. Standard 7. 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 Review of the Commission's Regulations Governing Television Broadcasting, Further Notice of Proposed Rule Making, 10 FCC Rcd 3524 (1995) (Television Ownership Further Notice). Subsequent to the release of that 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) (Telecom Act). In response to this Congressional directive in the Telecom Act and to update the record, the Commission released the Television Ownership Second Further Notice. 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 to authorize common ownership of television stations that are in different Designated Market Areas (DMA's) and whose Grade A contours do not overlap, conditioned on coming into compliance with the outcome of the proceeding within six months of its conclusion. Television Ownership Second Further Notice, 11 FCC Rcd at 21681. 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 DMA's supplemented with a Grade A overlap criterion." Id. 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. 2. Conditional Duopoly Waiver Requests 10. Waiver Showing - KGAN-TV and KDSM-TV. In its Engineering Statement, Sinclair demonstrates that the area of Grade B overlap between KGAN-TV, Cedar Rapids, Iowa, and KDSM- TV, Des Moines, Iowa, encompasses 3,468 square kilometers and 71,609 persons. This represents 8.31% of area and 7.75% of the population within the KGAN-TV Grade B contour and 16.28% of the area and 10.48% of the population within the KDSM-TV Grade B contour. The Grade A contours do not overlap. Sinclair notes that there is an outstanding construction permit to upgrade the facilities of KDSM-TV. See File No. BPCT-980621KF. However, Sinclair demonstrates that implementation of the proposed upgrade will result in only an insubstantial increase in the area of Grade B overlap which would encompass 4,075 square kilometers and 76,675 persons. This would constitute 17.07% of the area and 10.62% of the population of the KGAN-TV Grade B contour and 9.76% of the area and 8.30% of the population within the KDSM-TV Grade B contour. Sinclair argues that extent of the Grade B overlap area is less than the overlap in other cases in which the Commission previously approved waivers. 11. Sinclair also notes that KGAN-TV and KDSM-TV are located in separate and distinct markets. KGAN-TV is located in the Cedar Rapids-Waterloo & Dubuque, Iowa DMA, the 86th largest, and KDSM-TV is located in the Des Moines-Ames, Iowa DMA, the 72nd largest. Sinclair states that both stations will continue to be operated separately, including the continued use of their own local sales, programming, news and office staffs. 12. Sinclair also maintains that the area of overlap between KGAN-TV's Grade B contour and the Grade B contour of KDSM-TV contains a substantial number of media voices. Nine other television stations (7 commercial and 2 noncommercial) provide Grade B service to some portion of the population in the Grade B overlap area, and 5 of these stations provide Grade B service to the entire Grade B overlap area. After implementation of the proposed KDSM-TV upgrade, these 9 television stations as well as 2 additional stations (1 commercial and 1 noncommercial) will serve the Grade B overlap area. In addition, a minimum of 8 and a maximum of 27 commercial radio stations serve the Grade B overlap area. According to Sinclair's calculations, the same number of radio stations will serve the Grade B overlap area upon implementation of the proposed KDSM-TV upgrade. Sinclair also notes that the Grade B overlap area is served by 4 daily and 27 weekly newspapers as well as 50 cable systems owned by 21 separate operators with a penetration rate of 64% in the Cedar Rapids-Waterloo & Dubuque DMA and 61% in the Des Moines-Ames DMA. Sinclair concludes that the overlap area is served by a multitude of media voices, providing substantial competition and diversity of viewpoints. 13. Finally, Sinclair argues that grant of a waiver will not result in an undue concentration of economic power in the KGAN-TV/KDSM-TV overlap area. Sinclair notes that KGAN-TV is a CBS affiliate and trails both ABC and NBC affiliates in terms of average station shares during prime time and over the total day. KDSM-TV is a Fox affiliate and trails the affiliates of ABC, CBS, and NBC in terms of average station shares during prime time and over the total day. Thus, Sinclair concludes, the proposed common ownership of KGAN-TV and KDSM-TV will not impair competition and fully comports with existing precedent and the Commission's interim waiver policy. 14. Waiver Showing - WICS(TV) and KDNL-TV. Sinclair demonstrates, in its Engineering Statement, that the area of Grade B overlap between WICS(TV), Springfield, Illinois, and KDNL- TV, St. Louis, Missouri, encompasses 251 square kilometers and 5,864 persons. This represents 1.151% of area and 1% of the population within the WICS(TV) Grade B contour and 1.28% of the area and 0.23% of the population within the KDNL-TV Grade B contour. The Grade A contours do not overlap. Sinclair notes that there is an outstanding construction permit to upgrade the facilities of KDNL-TV. See File No. BPCT-960621KJ. However, Sinclair demonstrates that implementation of the proposed upgrade will result in only an insubstantial increase in the area of Grade B overlap which would encompass 728 square kilometers and 13,691 persons. This would constitute 3.33% of the area and 2.34% of the population of the WICS(TV) Grade B contour and 3.07% of the area and 0.52% of the population within the KDNL-TV Grade B contour. Sinclair argues that extent of the Grade B overlap area is less than the overlap in other cases in which the Commission previously approved waivers. 15. Sinclair also notes that WICS(TV) and KDNL-TV are located in separate and distinct markets. WICS(TV) is located in the Champaign & Springfield-Decatur, Illinois DMA, the 82nd largest, and KDNL-TV is located in the St. Louis, Missouri DMA, the 21st largest. Sinclair states that both stations will continue to be operated separately, including the continued use of their own local sales, programming, news and office staffs. 16. Sinclair also maintains that the area of overlap between WICS(TV)'s Grade B contour and the Grade B contour of KDNL-TV contains a substantial number of media voices. Seven other television stations (6 commercial and 1 noncommercial) provide Grade B service to some portion of the population in the Grade B overlap area, and 6 of these stations provide Grade B service to the entire Grade B overlap area. After implementation of the proposed KDNL-TV upgrade, these 7 television stations will continue to serve the Grade B overlap area. In addition, a minimum of 11 and a maximum of 24 commercial radio stations serve the Grade B overlap area. According to Sinclair's calculations, a minimum of 10 and a maximum of 24 commercial radio stations will serve the Grade B overlap area upon implementation of the proposed KDNL-TV upgrade. Sinclair also notes that the Grade B overlap area is served by 1 daily and 13 weekly newspapers as well as 22 cable systems owned by 6 separate operators. Sinclair concludes that the overlap area is served by a multitude of media voices, providing substantial competition and diversity of viewpoints. 17. Finally, Sinclair argues that grant of a waiver will not result in an undue concentration of economic power in the WICS(TV)/KDNL-TV overlap area. Sinclair notes that WICS(TV) is a NBC affiliate and trails the CBS affiliate in terms of average station shares during prime time and over the total day. KDNL-TV is an affiliate of ABC and UPN and trails the affiliates of CBS, NBC and Fox in terms of average station shares during prime time and over the total day and trails the WB affiliate in terms of average station shares over the total day. Thus, neither station dominates its market, Sinclair concludes. In fact, Sinclair points out that, in no one county within the overlap area are both stations significantly viewed. Sinclair states, in these circumstances, the proposed common ownership presents no competitive threat. 18. Waiver Showing - WICD(TV) and WYZZ-TV. As demonstrated in Sinclair's Engineering Statement, the area of Grade B overlap between WICD(TV), Champaign, Illinois, and WYZZ-TV, Bloomington, Illinois, encompasses 711 square kilometers and 6,698 persons. This represents 4.36% of area and 1.56% of the population within the WICD(TV) Grade B contour and 4.6% of the area and 1.12% of the population within the WYZZ-TV Grade B contour. The Grade A contours do not overlap. Sinclair notes that there is an outstanding construction permit to upgrade the facilities of WYZZ-TV. See File No. BPCT-950629KR. However, Sinclair demonstrates that implementation of the proposed upgrade will result in only an insubstantial increase in the area of Grade B overlap which would encompass 1,668 square kilometers and 17,573 persons. This would constitute 10.23% of the area and 4.08% of the population of the WICD(TV) Grade B contour and 7.77% of the area and 2.44% of the population within the WYZZ-TV Grade B contour. Sinclair argues that extent of the Grade B overlap area is less than the overlap in other cases in which the Commission previously approved waivers. 19. Sinclair also notes that WICD(TV) and WYZZ-TV are located in separate and distinct markets. WICD(TV) is located in the Champaign & Springfield-Decatur, Illinois DMA, the 82nd largest, and WYZZ-TV is located in the Peoria-Bloomington, Illinois DMA, the 110th largest. Sinclair states that both stations will continue to be operated separately, including the continued use of their own local sales, programming, news and office staffs. 20. Sinclair also maintains that the area of overlap between WICD(TV)'s Grade B contour and the Grade B contour of WYZZ-TV contains a substantial number of media voices. Seven other television stations (6 commercial and 1 noncommercial) provide Grade B service to some portion of the population in the Grade B overlap area, and 2 of these stations provide Grade B service to the entire Grade B overlap area. After implementation of the proposed WYZZ-TV upgrade, these 7 television stations will continue to serve the Grade B overlap area. In addition, a minimum of 6 and a maximum of 14 commercial radio stations serve the Grade B overlap area. According to Sinclair's calculations, a minimum of 4 and a maximum of 17 commercial radio stations will serve the Grade B overlap area upon implementation of the proposed WYZZ-TV upgrade. Sinclair also notes that the Grade B overlap area is served by 4 daily and 16 weekly newspapers as well as 45 cable systems owned by 10 separate operators. Upon implementation of the WYZZ-TV upgrade, the overlap area will be served by 66 cable systems owned by 16 separate operators, 6 daily and 25 weekly newspapers. Sinclair concludes that the overlap area is served by a multitude of media voices, providing substantial competition and diversity of viewpoints. 21. Finally, Sinclair argues that grant of a waiver will not result in an undue concentration of economic power in the WICD(TV)/WYZZ-TV overlap area. Sinclair notes that WICD(TV), an NBC affiliate, operates as a satellite of WICS(TV) and has never operated as a stand-alone station. WYZZ-TV is an affiliate of Fox and trails the affiliates of ABC/UPN, CBS and NBC in terms of average station shares during prime time and over the total day. Thus, Sinclair concludes that neither station is dominant in its market and the proposed common ownership of WICD(TV) and WYZZ-TV will not impair competition and fully comports with existing precedent and the Commission's interim waiver policy. 22. Waiver Showing - WOKR-TV and WIXT(TV). Central, in its Engineering Statement, demonstrates that the area of Grade B overlap between WOKR-TV, Rochester, New York, and WIXT(TV), Syracuse, New York, encompasses 2,829 square kilometers and 128,199 persons. This represents 21.4% of area and 10.7% of the population within the WOKR-TV Grade B contour and 12.3% of the area and 9.2% of the population within the WIXT(TV) Grade B contour. The Grade A contours do not overlap. Central maintains that the Commission has approved waivers of the television duopoly rule in circumstances where the land area and population percentages of Grade B overlap were similar to the percentages here. 23. Central notes that WOKR-TV and WIXT(TV) are located in separate and distinct markets. WOKR-TV is located in the Rochester, New York DMA, the 75th largest, and WIXT(TV) is located in the Syracuse, New York DMA, the 72nd largest. Central also notes that the stations' transmitting facilities are located 80.1 miles apart. Central includes the Declaration of Steve Kimatian, the General Manager of WIXT(TV), that the Rochester and Syracuse markets are separate and distinct for purposes of advertising sales and he is unaware of any instance in which an advertiser seeking to reach television households in Rochester purchased advertising time on WIXT(TV). Central also states that the each station will maintain its own local sales, programming and news staffs. 24. Central demonstrates that at least 11 other television stations (9 commercial and 2 noncommercial) provide Grade B service to some portion of the population in the Grade B overlap area. Five of these stations provide service to at least 99% of the overlap area and 8 stations cover at least 46% of the overlap area. In addition, at least 7 AM radio stations and 20 FM radio stations are licensed to communities that are within the Rochester TV Metro area and at least 14 AM radio stations and 28 FM radio stations are licensed to communities that are within the Syracuse TV Metro area. Central also notes that the Rochester and Syracuse DMA's are served by 3 daily and 4 weekly newspapers and cable penetration is 73% in both the Rochester and Syracuse DMA's. Central concludes that, even with common ownership of the stations, a diversity of media outlets providing numerous viewpoints will continue to serve the Rochester and Syracuse DMA's and the population within the overlap areas. 25. Finally, Central argues that common ownership of the two stations will not result in anticompetitive concentration of economic market power. Central notes that the WOKR-TV earned a total television household sign-on to sign-off rating in May 1998 of 5 and a share of 17, ranking third overall in its market. WIXT(TV) earned a total television household sign-on to sign-off rating of 5 and a share of 17, ranking second overall in its market. Therefore, Central concludes, common ownership of WOKR-TV and WIXT(TV) will not unduly concentrate economic power in either the markets or the overlap area. 26. Discussion. We believe that grant of conditional waivers of the duopoly rule, subject to the outcome of the pending ownership proceeding, is justified in these cases. The temporary common ownership of KGAN(TV) and KDSM-TV, of WICS(TV) and KDNL(TV), of WICD(TV) and WYZZ-TV, and of WOKR-TV and WIXT(TV) would be consistent with the interim policy set forth in the Television Ownership Second Further Notice as, in all cases, the stations are located 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 these cases. Accordingly, we conclude that grant of temporary waivers, conditioned on Sinclair and Central coming into compliance with the outcome of the pending television ownership rulemaking proceeding within six months of its conclusion, will serve the public interest, convenience and necessity. Any requests to extend these conditional waivers should be filed at least 45 days prior to the end of the six-month period and would be closely scrutinized. 3. Temporary Duopoly Waiver Request 27. Waiver Showing. Both the Grade A and Grade B contours of WICS(TV) and WYZZ-TV overlap, and Sinclair requests a temporary, nine-month waiver of the television duopoly rule to permit the orderly divestiture of one of these stations in order to come into compliance with the duopoly rule. Sinclair maintains that the Commission has previously granted such a temporary waiver where substantial Grade A and Grade B overlap existed between a VHF and UHF television station located in the same DMA. Sinclair notes that, in this case, the stations are located in separate DMA's and both are UHF stations. Sinclair also argues that its acquisition of WICS(TV) is part of a larger transaction involving the assignment of licenses of seven television stations throughout the country. Sinclair argues that the Commission has previously approved temporary duopoly waivers in cases involving Grade A and Grade B contour overlap that was much more substantial than in the instant case in order to facilitate multi-station acquisitions. 28. Sinclair demonstrates that the Grade A overlap between WICS(TV) and WYZZ-TV encompasses 1,026 square kilometers and 11,469 persons, representing 7.9% of the area and 2.67% of the population within the Grade A contour of WICS(TV) and 10.9% of the area and 2.33% of the population of the Grade A contour of WYZZ-TV. The area of Grade B overlap between WICS(TV) and WYZZ-TV encompasses 4,630 square kilometers and 86,790 persons. This represents 21.2% of area and 14.8% of the population within the WICS(TV) Grade B contour and 30% of the area and 14.5% of the population within the WYZZ-TV Grade B contour. Upon implementation of the WYZZ-TV proposed upgrade, the Grade A and B overlap areas will increase slightly. The Grade A overlap area will encompass 1,833 square kilometers and 39,179 persons, which will constitute 14.05% of the area and 9.11% of the population within the Grade A contour of WICS(TV) and 14.04% of the area and 6.88% of the population within the Grade A contour of WYZZ-TV. As for the Grade B overlap area, upon implementation of the proposed WYZZ-TV upgrade, the Grade B overlap area will encompass 6,519 square kilometers and 106,124 persons, which will constitute 29.8% of the area and 18.1% of the population within the Grade B contour of WICS(TV) and 30.3% of the area and 14.7% of the population within the Grade B contour of WYZZ-TV. Though the extent of the overlap is not insignificant, Sinclair argues that the stations' locations in separate DMA's and the existence of a multitude of competing media outlets in the overlap area mitigate concerns regarding diversity and competition. 29. Sinclair notes that WICS(TV) and WYZZ-TV are located in separate and distinct markets. WICS(TV) is located in the Champaign & Springfield-Decatur, Illinois DMA, the 81st largest, and WYZZ-TV is located in the Peoria-Bloomington, Illinois DMA, the 110th largest. Sinclair states that Springfield, as the capital of Illinois and the home of Abraham Lincoln, is dominated by local and state government. Bloomington, on the other hand, has an economy whose strength lies in insurance, education, agribusiness and industry. Sinclair also states that both stations will continue to be operated separately, including the continued use of their own local sales, programming, news and office staffs. 30. Sinclair also maintains that the area of overlap between WICS(TV) and WYZZ-TV contains a multitude of media voices. Thirteen other television stations (11 commercial and 2 noncommercial) provide Grade B service to some portion of the population in the Grade B overlap area, and 1 of these stations provides Grade B service to the entire Grade B overlap area. Nine television stations (8 commercial and 1 noncommercial) provide Grade B service to the Grade A overlap area. Sinclair states that the same number of stations will provide coverage to the Grade A and B overlap areas upon implementation of the proposed WYZZ-TV upgrade. In addition, a minimum of 13 and a maximum of 31 commercial radio stations serve the Grade B overlap area. A minimum of 16 and a maximum of 29 commercial radio stations serve the Grade A overlap area as well. Sinclair also notes that the Grade B overlap area is served by 6 daily and 26 weekly newspapers as well as 78 cable systems owned by 16 separate operators. The Grade A overlap area is served by 6 daily and 16 weekly newspapers as well as 43 cable systems owned by 13 separate operators. Furthermore, cable penetration in the Champaign & Springfield-Decatur DMA is 75% and in the Peoria-Bloomington DMA is 71%. Sinclair concludes that the overlap area is served by a multitude of media voices, providing substantial competition and diversity of viewpoints. 31. Finally, Sinclair argues that grant of a waiver will not result in an undue concentration of economic power in the WICS(TV)/WYZZ-TV overlap area. Sinclair notes that while WICS(TV), an NBC affiliate, trails only the CBS affiliate in its market, WYZZ-TV, a Fox affiliate, trails all the network affiliates in its market in terms of average station share during prime time and over the total day. Sinclair also notes that there are two VHF stations and several other high-powered UHF stations that serve some portion of the Grade B overlap area. Thus, Sinclair concludes, it proposes to own temporarily two UHF television stations which are located in separate DMA's and which are subject to considerable competition. In such circumstances, Sinclair argues that a grant of a temporary nine-month waiver request will have no detrimental effects and is consistent with Commission precedent. 32. Discussion. Although WICS(TV) and WYZZ-TV are located in separate DMA's, we cannot grant a duopoly waiver pursuant to our interim policy because the Grade A contours of the stations overlap. However, we believe that a nine-month, temporary waiver of our television duopoly rule, as requested by Sinclair, is warranted in this case. 33. Applying the traditional waiver factors, we first examine the extent of the overlap. In this case, we find not only significant Grade B overlap but Grade A overlap that constitutes 7.9% of the area and 2.67% of the population within the WICS(TV) Grade A contour and 10.9% of the area and 2.33% of the population within the Grade A contour of WYZZ-TV. These figures will increase significantly if the application for upgrade of the WYZZ-TV facilities is granted and implemented. However, we have found that the extent of the overlap is "more critical" in cases involving requests for a permanent waiver of our rules. See Telemundo Group, Inc., Debtor-in-Possession, 10 FCC Rcd 1104 (1994). We are not constrained, therefore, from granting a temporary waiver where the overlap is large, so long as ownership of the given combination "will not significantly frustrate the policies underlying the multiple ownership rules." Id. Accord John H. Phipps, Inc., 11 FCC Rcd 13053, 13064 (1996). 34. We next consider the number of media voices available in the overlap area. In this case, the Grade A overlap area is served by as few as 25 and as many as 38 broadcast stations including 9 television stations (8 of which are commercial). The number of media outlets in the WICS(TV)/WYZZ-TV overlap area is within the range of other cases in which the Commission has granted temporary waivers of the duopoly rule, including Petracom Equity Partners, L.P., supra; and Brissette Broadcasting, 11 FCC Rcd 6319 (1996). 35. As to the third factor in our analysis, the distinctiveness of the markets involved, we note that WICS(TV) and WYZZ-TV are located in separate DMA's (Champaign & Springfield-Decatur and Peoria-Bloomington) which differ in size (81st versus 110th). As for the fourth and fifth factors, the independence of the stations' operations and the concentration of economic power, we acknowledge and rely upon Sinclair's representation that these stations will continue to be operated separately with distinct staffs during the nine-month waiver period. This mitigates our concern about the effect that temporary common ownership of the stations might have on competition. Id. Based upon Sinclair's commitment to operate the stations separately, as well as the significant number of media outlets available in overlap area, we are persuaded that a brief period of common ownership will not result in increased economic concentration in the market. 36. After considering the above five factors, we examine the public interest benefits that will accrue as a result of the temporary common ownership to determine whether those benefits weigh in favor of granting a duopoly waiver. See, e.g., John H. Phipps, Inc., supra; and Stockholders of CBS, Inc., 11 FCC Rcd 3733, 3762 (1995). We have previously found that in situations involving multiple-station transactions, "facilitating such a transaction by temporary waiver of our multiple ownership rules will 'promote commerce, encourage investment in the broadcast industry, and allow for the free transferability of broadcast licenses.'" Braced Broadcasting, 11 FCC Rcd at 6325 (quoting Stockholders of CBS, 11 FCC Rcd at 3755). We have previously granted temporary waivers of the duopoly rule in transactions that did not meet the interim waiver policy set forth in the Second Further Notice, but that involved transfer of multiple television stations. See, e.g., Petracom Equity Partners, L.P., supra; and AFLAC Broadcasting Group, Inc., supra. In some of these cases, the stations not only had overlapping Grade A contours but were located in the same DMA as well. See, e.g., AFLAC Broadcasting Group, Inc., supra. We considered the facilitation of a multiple-station transaction to be a compelling circumstance weighing in favor of a temporary duopoly waiver. In this case, the stations are located in separate DMA's, will be operated independently, and the facilitation of a transaction involving seven full power television stations weighs in favor of a temporary waiver. 37. Given the totality of the circumstances presented here, we believe that a nine-month temporary waiver of the duopoly rule to permit common ownership of two UHF stations located in separate DMA's would serve the public interest, convenience, and necessity. See J.S. Kelley, LLC, DA 98-2531, released December 11, 1998. Accordingly, we grant Sinclair a nine-month temporary waiver in order to divest its interest in either WICS(TV) or WYZZ-TV or otherwise bring itself into compliance with the television duopoly rule. Any request to extend this temporary period should be filed at least 45 days prior to the end of the nine-month period and would be closely scrutinized. B. Continued Satellite Authority Request 38. Sinclair's Request. Sinclair seeks authority to continue operating station WICD(TV) as a satellite of WICS(TV), after the proposed assignment of license. The Commission requires all applicants seeking to transfer existing satellite stations and to continue those stations' satellite operation to demonstrate that the stations meet our satellite policy at the time of transfer of control. See Television Satellite Stations, 6 FCC Rcd 4212, 4215 (1991), on reconsideration Second Further Notice of Proposed Rulemaking in MM Docket No. 87-8, 6 FCC Rcd 5010 (1991), on further reconsideration Review of the Commission's Regulations Governing Television Broadcasting, 10 FCC Rcd 3524 (1995). Pursuant to the Commission's satellite policy, an applicant is entitled to a presumption that its proposed satellite operation is in the public interest if it meets three criteria: (1) no City Grade contour overlap exists between the parent and the satellite; (2) the proposed satellite would provide service to an underserved area; and (3) no alternative operator is ready and able either to construct or to purchase and operate the satellite as a full-service station. Id. at 4212. If an applicant cannot qualify for the presumption, we will evaluate the proposal on an ad hoc basis to determine whether other compelling circumstances warrant grant of the application. Id. at 4214. As detailed below, we find that the satellite operation here meets all of presumptive criteria. 39. As demonstrated in Sinclair's Engineering Statement, there is no overlap between the City Grade contours of WICS(TV) and WICD(TV). Therefore, Sinclair's satellite proposal meets the first presumptive criterion. 40. With respect to the second criterion, Sinclair has demonstrated that the area where satellite station WICD(TV) is located is underserved by applying the Commission's "transmission" test. That test defines as "underserved" an area with two or fewer full-service stations already licensed to the community. Only two full-service television stations - WICD(TV) and WCIA(TV) are licensed to Champaign, Illinois. Therefore, Champaign is an underserved community for purposes of a satellite waiver. 41. As to the third criterion, to qualify for the presumption, an applicant must demonstrate that no alternative operator is ready and able to construct or to purchase and operate the proposed satellite as a full-service stand-alone station. Sinclair includes the Declaration of Susan D. Harrison, a project manager for the consulting firm of Fieldston Company, Inc., which specializes in financial and economic analyses for regulated industries. Ms. Harrison states that, in 1993, she prepared an exhaustive study of the reasonableness of attempting to operate television station WICD(TV) as a full-service, stand-alone station. She concluded at that time that the station could not sustain itself financially as a stand-alone full-service station. Ms. Harrison states that she has been retained by Sinclair to determine whether any material changes have occurred which would cause her to change her opinion of the economic viability of WICD(TV) as a stand-alone facility. 42. Ms. Harrison states that she has identified no factors which would cause her to change her earlier conclusion. Ms. Harrison finds that, while some elements of viability, such as the station's technical facility and operating characteristics, have improved, some have become worse from a competitive standpoint. For example, Ms. Harrison notes that market rank has declined from 74th to 82nd, and cable penetration has increased from 70% to 77% meaning more households have access to more media sources. Furthermore, Ms. Harrison estimates that as much as $1.5 million a year of advertising revenues which would otherwise have gone to local market television stations is being diverted to cable systems. In addition, one of the area television stations, WFHL, which had been operated as an independent station, has now become part of the new Paxson television network allowing it broader access to better quality, mass appeal programming. Finally, Ms. Harrison notes that annual television revenues for the Champaign market have declined from $43.428 million to $42.287 million during the period of 1993 to 1997. Ms. Harrison concludes that no prudent businessperson could be found who would be ready or able to operate WICD(TV) as a full-service station. 43. Discussion. Based on all of the information provided, we believe that Sinclair has not only satisfied the first two criteria of the Commission's presumptive satellite exemption standard, but has demonstrated the unlikelihood of finding an alternative buyer ready and able to operate WICD(TV) on a stand-alone basis. Therefore, we find that the continued operation of WICD(TV) as a satellite of WICS(TV) would be in the public interest. Among the matters being reexamined in the Commission's broadcast television ownership policies in the Television Ownership Second Further Notice is the continued exemption of satellite stations from broadcast ownership restrictions. Accordingly, we will condition the grant of this satellite proposal on whatever action is taken in that proceeding. IV. Conclusion 44. In view of the foregoing, and having determined that the applicants are qualified, we find that a grant of these applications will serve the public interest, convenience and necessity. 45. ACCORDINGLY, IT IS ORDERED, That the requests of Sinclair Communications, Inc., for conditional waiver of Section 73.3555(b) of the Commission's Rules, to permit the common ownership of television stations KGAN-TV, Cedar Rapids, Iowa, and KDSM-TV, Des Moines, Iowa, WICS(TV), Springfield, Illinois, and KDNL-TV, St. Louis, Missouri, and WICD(TV), Champaign, Illinois, and WYZZ-TV, Bloomington, Illinois, ARE GRANTED, subject to the outcome of the Commission's pending broadcast television ownership rulemaking in MM Docket Nos. 91-221 and 87-8. Should divestiture be required as a result of that proceeding, Sinclair Communications, Inc. or its subsidiary, 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(s) for Commission consent to dispose of such station(s) as would be necessary for it to come into compliance with the rules as provided in the final order. 46. IT IS FURTHER ORDERED, That the request of Central NY News, Inc., for conditional waiver of Section 73.3555(b) of the Commission's Rules, to permit the common ownership of television stations WOKR-TV, Rochester, New York, and WIXT(TV), Syracuse, New York, IS GRANTED, subject to the outcome of the Commission's pending broadcast television ownership rulemaking in MM Docket Nos. 91-221 and 87-8. Should divestiture be required as a result of that proceeding, Central NY News, Inc., 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(s) for Commission consent to dispose of such station(s) as would be necessary for it to come into compliance with the rules as provided in the final order. 47. IT IS FURTHER ORDERED, That the request of Sinclair Communications, Inc., for a temporary waiver of the Commission's duopoly rule, 47 C.F.R.  73.3555(b) to permit the common ownership of WICS(TV), Springfield, Illinois, and WYZZ-TV, Bloomington, Illinois, IS GRANTED, subject to the condition that within nine months of the consummation of this transaction, an application is filed with the Commission to dispose of such station as would be necessary for Sinclair Communications, Inc., or its subsidiary to come into full compliance with 47 C.F.R.  73.3555(b). 48. IT IS FURTHER ORDERED, That the request of Sinclair Communications, Inc., for operation of WICD(TV), Champaign, Illinois, pursuant to the satellite exemption of Note 5 of 47 C.F.R.  73.3555, IS GRANTED, subject to the outcome of the Commission's broadcast television ownership rulemaking in MM Docket Nos. 91-221 and 87-8. 49. IT IS FURTHER ORDERED, That the applications for assignment of license of KGAN- TV, Cedar Rapids, Iowa, WGGB-TV, Springfield, Massachusetts, WGME-TV, Portland, Maine, WICD(TV), Champaign, Illinois, WICS(TV), Springfield, Illinois, WTWC-TV, Tallahassee, Florida, and K13MN, Washington, Iowa, from Guy Gannett Communications, Inc., to KGAN Licensee, LLC, WGGB Licensee, LLC, WGME Licensee, LLC, WICD Licensee, LLC, WICS Licensee, LLC, and WTWC Licensee, LLC (File Nos. BALCT-980925II, BALCT-980925IK through IN, BALCT980925IQ and BALTTV-980925IJ) ARE GRANTED. 50. IT IS FURTHER ORDERED, That the applications for assignment of license of WOKR(TV), Rochester, New York, from Guy Gannett Communications, Inc., to WOKR Licensee, LLC (File No. BALCT-980925IP) and the application for assignment of license of WOKR(TV), Rochester, New York, from WOKR Licensee, LLC to Central NY News, Inc., (File No. BALCT- 980925IR) ARE GRANTED subject to the condition that the assignment of license of WOKR(TV) from Guy Gannett Communications, Inc., to WOKR Licensee, LLC be consummated simultaneously with the assignment of license of WOKR(TV) from WOKR Licensee, LLC to Central NY News, Inc. FEDERAL COMMUNICATIONS COMMISSION Roy J. Stewart Chief, Mass Media Bureau