******************************************************** 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 ) ) MAC AMERICA ) COMMUNICATIONS, INC. ) (Assignor) ) ) and ) File Nos. BALCT-990709SE ) Fac ID 40993 BELO TV, INC. ) BALTTV-990709SF (Assignee) ) Fac ID 2756 ) BALTTT-990709SG For Consent to the Assignment of License of) Fac ID 56142 Stations ) BALTT-990709SH KTVK(TV), Phoenix, Arizona ) Fac ID 2754 K11LC, Prescott, Arizona ) BALTT-990709SI K34EE, Cottonwood, Arizona ) Fac ID 2753 K38AI, Cottonwood, etc., Arizona ) BALTT-990709SJ K60BP, Flagstaff, Arizona ) Fac ID 5323 K60ED, Williams/Ash Fork, Arizona) MEMORANDUM OPINION AND ORDER Adopted: September 3, 1999 Released: September 8, 1999 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 applications for assignment of license of KTVK(TV), Channel 3 (IND), Phoenix, Arizona, and associated low-power television and translator facilities, from MAC America Communications, Inc. to Belo TV, Inc., an indirect wholly- owned subsidiary of A. H. Belo Corporation ("Belo"). Another wholly-owned indirect subsidiary of Belo is the licensee of KMSB-TV, Channel 11 (FOX), Tucson, Arizona, whose Grade B contour overlaps the Grade B contour of KTVK(TV), the station to be acquired by Belo. This station combination would violate the Commission's existing television local ownership (or duopoly) rule, which prohibits the common ownership of television stations whose Grade B contours overlap. 47 C.F.R.  73.3555(b). To resolve this potential violation, Belo seeks a waiver of the duopoly rule. 2. Belo notes that in the Second Further Notice of Proposed Rule Making in MM Docket No. 91-221 (Review of the Commission's Regulations Governing Television Broadcasting), 11 FCC Rcd 21655 (1996) ("Television Ownership Second Further Notice"), the Commission adopted an interim policy applicable to waivers of the television duopoly rule. The policy stated that the Commission would be inclined to grant waivers of the rule, conditioned on the outcome of the rulemaking proceeding, only where the television stations to be commonly owned were located in separate Designated Market Areas ("DMAs") and there was no Grade A contour overlap between them. Belo therefore seeks a conditional waiver of the television duopoly rule to permit common ownership of KTVK(TV) and KMSB-TV, subject to the outcome of the television ownership rulemaking proceeding within six months of its conclusion. Belo provided a complete showing under our existing precedent to justify grant of a temporary conditional waiver of the duopoly rule. Discussion 3. As Belo has noted, at the time the subject applications were filed, we followed an interim policy that permitted conditional waiver of the duopoly rule, subject to the outcome of the then- pending local television ownership proceeding, only where the stations to be commonly owned were licensed to separate DMAs and there was no Grade A overlap between them. Television Ownership Second Further Notice, 11 FCC Rcd at 21681. On August 5, 1999, however, the Commission adopted a Report and Order in the local television ownership proceeding, revising the duopoly rule to permit common ownership of two television stations located in separate DMAs regardless of contour overlap between them. Review of the Commission's Regulations Governing Television Broadcasting, Report and Order, MM Docket No. 91-221, FCC 99-209 (released August 6, 1999) ("Report and Order"). The proposed transaction appears to comply with the new rules as KTVK(TV), the station to be acquired by Belo, is located in the Phoenix DMA, and commonly- owned KMSB-TV is located in the Tucson DMA. These rules, however, are not yet in effect. Nonetheless, given the Commission's decision and the apparent compliance of the proposed combination with the new rules, it is no longer appropriate to follow the interim policy in disposing of Belo's waiver request. Rather, we believe that we should afford Belo a temporary waiver to accommodate this acquisition and the opportunity to make a showing, if it so elects, that it could retain the stations under our new rules once they become effective. Accordingly, we will grant Belo a temporary waiver of the local television ownership rule for the proposed television combination, subject to compliance with the requirements of the ownership order when those requirements come into effect. Conclusion 4. Having determined that the applicants are qualified in all respects, we find that grant of the above-captioned assignment applications will serve the public interest, convenience and necessity. 5. Accordingly, IT IS ORDERED, That the request for a temporary waiver of the duopoly rule, Section 73.3555(b), to permit common ownership of KTVK(TV), Phoenix, Arizona, and KMSB-TV, Tucson, Arizona, IS GRANTED, subject to Belo's compliance with the requirements and procedures set forth in Review of the Commission's Regulations Governing Television Broadcasting, Report and Order, MM Docket No. 91-221, FCC 99-209 (released August 6, 1999). 6. IT IS FURTHER ORDERED, That the applications for assignment of license of KTVK(TV), Phoenix, Arizona, and associated low-power television and translator facilities, from MAC America Communications, Inc. to Belo TV, Inc. (File Nos. BALCT/BALTTV/BALTT-990709SE-SJ), ARE GRANTED. FEDERAL COMMUNICATIONS COMMISSION Roy J. Stewart Chief, Mass Media Bureau