******************************************************** 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 ) ) Pegasus Broadcasting, LLC ) (Transferor) ) ) and ) File Nos. BTCCT-981002IA ) BTCTT-981002IB - ID Chancellor Media Corporation of ) Los Angeles ) (Transferee) ) ) For Consent to the Transfer of Control of) Pegasus Broadcasting of San Juan, LLC) Licensee of Television Stations ) WAPA-TV, San Juan, Puerto Rico ) W43AA, Utuado, Puerto Rico ) W49AC, Adjuntas, Puerto Rico ) W56AA, Orocovis, Puerto Rico ) MEMORANDUM OPINION AND ORDER Adopted: August 11, 1999 Released: August 12, 1999 By the Commission: Commissioner Tristani dissenting and issuing a statement. 1. The Commission has before it the above-captioned applications seeking consent to the transfer of control of Pegasus Broadcasting of San Juan, LLC, licensee of television station WAPA- TV, Channel 4 (IND), San Juan, Puerto Rico, and Puerto Rico television translator stations W43AA, Utuado, W49AC, Adjuntas, and W56AA, Orocovis, from Pegasus Broadcasting, LLC (Pegasus), to Chancellor Media Corporation of Los Angeles (Chancellor). Chancellor controls the licensee of Puerto Rico radio stations WIOA(FM), San Juan, WZNT(FM), San Juan, WIOC(FM), Ponce, WOQI(FM), Ponce, and WCOM(FM), Bayamon. Because the Grade A contour of WAPA-TV encompasses the communities of license of each of these radio stations, Chancellor requests a waiver of 47 C.F.R.  73.3555(c), the one-to-a-market rule. 2. On December 4, 1998, Telemundo of Puerto Rico License Corporation (Telemundo), licensee of WKAQ-TV, San Juan, Puerto Rico, submitted a Petition to Deny the transfer of control of WAPA-TV from Pegasus to Chancellor. Telemundo alleges that: (1) the application seeking consent to the transfer of control of WAPA-TV was procedurally defective because it did not contain a properly verified request for waiver; and (2) Chancellor has failed to sufficiently justify a waiver of the one-to-a-market rule. 3. For the reasons stated below, we deny Telemundo's Petition to Deny and grant the transfer of control applications and a temporary conditional waiver of our one-to-a-market rule subject to compliance with the requirements 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) (Report and Order). I. Background A. Chancellor's Request for Waiver of One-to-a-Market Rule 4. In 1989, we set forth our standard for waivers of our one-to-a-market rule. See Second Report and Order in MM Docket 87-7, 4 FCC Rcd 1741 (1989) (Second Report and Order), recon. granted in part and denied in part, 4 FCC Rcd 6489 (1989) (Second Report and Order Recon.). We stated that we would presumptively favor waiver requests involving (a) stations serving the top 25 markets where at least 30 separately owned, operated and controlled stations will remain following the proposed combination (the "top 25 market/30 voice standard"); or (b) "failed" stations, i.e., stations which have not been operating for a substantial period of time (four months or more) or are involved in bankruptcy proceedings. Otherwise, the requests must be evaluated under a case-by-case approach. 47 C.F.R.  73.3555(c) Note 7. 5. Because the stations in this case are located in Puerto Rico and communities in Puerto Rico are not ranked by Arbitron as part of its television Area-of-Dominant Influence (ADI) designation or by Nielsen through statistics reflecting Designated Market Area (DMA), and no other comparable national rating service applies to Puerto Rican markets, the waiver provisions applicable to the top-25 TV markets cannot be readily applied. Ordinarily, in such cases, we would determine whether alternative ratings data support a presumptive waiver under the top-25 TV market/30 voice standard. However, in similar situations, the Commission has found it unnecessary to determine whether alternative data support a presumptive waiver where, as here, we are able to determine that the case-by-case standard for a one-to-a-market waiver has been met. See WPRA, Inc., 12 FCC Rcd 2581, 2582-3 (1997) and WLDI, Inc. (WRAI(AM), San Juan, Puerto Rico), 10 FCC Rcd 12150, 12151 (1995). Furthermore, no claim of a "failed station" has been made in this case. Therefore, we shall examine Chancellor's waiver request under the case-by-case standard. 6. Under the case-by-case standard, we make a public interest determination of whether to grant a waiver based upon the following criteria: (1) the potential public service benefits of joint operation of the facilities, such as economies of scale, cost savings and programming and service benefits; (2) the types of facilities involved; (3) the number of media outlets owned by the applicant in the relevant market; (4) the financial difficulties of the stations involved; and (5) the nature of the relevant market in light of the level of competition and diversity after the joint operation is implemented. Second Report and Order, 4 FCC Rcd at 1753-54. We do not require that all five case-by-case criteria be satisfied as a precondition to a waiver, but rather that the overall consideration of these factors weigh in favor of the public interest. Second Report and Order Recon., 4 FCC Rcd at 6493. We now evaluate Chancellor's waiver request based upon these five criteria. 1. Public Service Benefits of Joint Operations 7. Chancellor states that the economic efficiencies, programming enhancements, and other public interest benefits that will be achieved as a result of this television and radio station combination justify grant of the requested waiver. Chancellor maintains that common ownership of these stations will result in a total annual cost savings of $642,000. Chancellor estimates that it will be able to save annually: (a) approximately $144,000 in rental payments by consolidating the radio stations' operations with those of WAPA-TV; (b) approximately $150,000 through consolidation of the finance and accounting departments of WAPA-TV and the radio stations; (c) approximately $40,000 by eliminating additional staff for sales research; (d) approximately $30,000 by consolidating the back offices of WAPA-TV and the radio stations; (e) approximately $50,000 by eliminating the radio stations' need to hire additional staff in human resources department; (f) approximately $38,000 by consolidating the radio stations' maintenance and messenger staffs; (g) approximately $120,000 by having WAPA-TV use the promotional staff of the radio stations rather than subcontracting out a portion of this work; (h) $50,000 by consolidating the stations' information systems departments which will eliminate the need to hire additional staff members in the future; (i) approximately $10,000 by jointly purchasing insurance coverage for all the stations; and (j) $10,000 by obtaining purchasing discounts from suppliers. 8. In addition, Chancellor argues that grant of the one-to-a-market waiver will create potential cost savings for WAPA-TV which will enable it to advertise on the radio stations. In the past, Chancellor notes, WAPA-TV has been required to pay high commissions to advertising agencies to advertise on other radio stations in the Puerto Rico market. Under joint ownership, WAPA-TV will be able to advertise on the radio stations without having to pay commissions to a third party. 9. Chancellor contends that the public will directly benefit from the joint ownership of WAPA-TV and the radio stations, particularly in times of a weather emergency. Because of the mountainous topography of Puerto Rico, currently no group of broadcast stations is able to provide coverage to the entire island. If the instant waiver is granted, WAPA-TV and the radio stations will be able to cover virtually all of Puerto Rico. Chancellor asserts that this is especially significant in times of emergencies. Chancellor notes that, during the recent hurricane Georges, the radio stations were able to switch to a WAPA-TV simulcast which provided up-to-the-minute hurricane coverage to the entire island. In addition, Chancellor asserts that WAPA-TV will make its news operations available to the radio stations which will enable the radio stations to provide local, national and international news without incurring the expense of developing and maintaining their own news staff and facilities. 10. Chancellor also claims that non-programming benefits will flow from common ownership of WAPA-TV and the radio stations. Chancellor notes that, each year, WAPA-TV sponsors and promotes on the air a number of major community events and charitable causes. The beneficiary organizations and causes have included the Red Cross, Drug Free America, Children's Theater Festival, and various AIDS organizations. In addition, Chancellor notes that the radio stations also promote worthy causes such as Ponce Museum of Art, Proyecto Suene de Amour del Sids Pediatrico, a group that works with HIV-positive children, Hogar Cuan San Cristobal, a home for children waiting for adoption; and Alianza de un Puerto Rico contra Drogas, a drug prevention organization. Under joint ownership, Chancellor maintains that the stations could join each other's promotions to broaden the reach of these campaigns to a more significant portion of the market. 11. Chancellor represents further that the stations will work together to strengthen employment opportunities by sharing information on job openings, recruitment sources, and applicant referrals. For example, Chancellor states that, subject to the consent of the individuals involved, WAPA-TV will regularly provide the radio stations with the names of applicants seeking positions at the television station and vice versa. As a result, Chancellor maintains, the stations should be able to not only increase the effectiveness of their recruitment process, but applicants should be able to learn of additional broadcast employment opportunities. 12. Finally, Chancellor argues that the public will benefit from common ownership of WAPA- TV and the radio stations because it will place the stations in the hands of an experienced and proven broadcaster. Chancellor notes that the transferor of WAPA-TV, General Electric Capital Corporation (GE Capital), acquired the station as part of a debt restructuring plan and GE Capital is not a broadcasting company. Grant of the one-to-a-market waiver will enable WAPA-TV to take advantage of the resources and years of broadcasting experience that Chancellor can bring to the management of the station. 2. Types of Facilities 13. WAPA-TV operates on VHF channel 4 with an authorized power of 54 kilowatts from an antenna 2864 feet above average terrain. WIOA(FM) is a Class B FM station which operates on 99.9 MHz at 31 kilowatts from an antenna 1837 feet above average terrain. WZNT(FM) is a Class B FM station which operates on 93.7 MHz at 32 kilowatts from an antenna 1778 feet above average terrain. WCOM(FM) is a Class B FM station which operates on 94.7 MHz at 31 kilowatts from an antenna 1778 feet above average terrain. WIOC(FM) is a Class B1 FM station which operates on 105.1 MHz at 47 kilowatts from an antenna that is 200 feet below average terrain. Finally, WOQI(FM) is a Class B1 FM station which operates on 93.3 MHz at 14.5 kilowatts from an antenna that is 226 feet below average terrain. 14. In prior cases involving Puerto Rican markets not ranked by national ratings services, the Commission has utilized the U.S. Census Bureau's designation of Metropolitan Statistical Areas (MSA's) to help define the applicable broadcast markets. See WLDI, Inc., supra; and WPRA, Inc., supra. In this case, Chancellor asserts that the radio market may be defined as the San Juan-Bayamon Primary Statistical Metropolitan Area (San Juan PMSA) and the television market may be defined as the San Juan-Caguas-Arecibo Consolidated Metropolitan Area (San Juan CMSA). 15. Within the San Juan CMSA, Chancellor notes that there are 3 VHF television stations (WIPR-TV, Channel 6 (PBS), San Juan, Puerto Rico; WKAQ-TV, Channel 2 (IND), San Juan, Puerto Rico; and WLII(TV), Channel 11 (NBC), Caguas, Puerto Rico) that have facilities that are comparable with those of WAPA-TV and 1 VHF television station that has superior facilities to those of WAPA-TV (WPRV-TV, Channel 13 (IND), Fajardo, Puerto Rico). In addition, Chancellor maintains that, within the San Juan PMSA, there are 9 Class B radio stations with comparable facilities and 1 Class B radio station with superior facilities to those of WZNT(FM), WIOA(FM), and WCOM(FM) - the Class B FM stations that Chancellor controls. In addition, Chancellor points out that 2 stations have facilities that are comparable, and 10 stations have facilities that are superior to those of WIOC(FM) and WOQI(FM) - the less powerful Class B1 FM stations. Finally, Chancellor argues that many television and radio stations in the San Juan CMSA and PMSA reach a share of the population comparable to or greater than the stations involved in the instant waiver request. Chancellor asserts that the Grade A and Grade B signals of WCCV(TV), Channel 54 (IND), Arecibo; WIPR-TV, San Juan; WPRV(TV), Fajardo; and WKAQ-TV, San Juan; cover a population and land area similar to the size of those of WAPA-TV. In addition, Chancellor notes that many AM and FM stations reach an audience comparable or superior in size to the audiences reached by WZNT(FM), WIOA(FM) and WCOM(FM). Thus, Chancellor concludes, the combination would not dominate the market from a technical standpoint. Chancellor argues that, even if the Commission found that the technical facilities of the stations are significant, given the substantial competition in the Puerto Rico market, the proposed combination does not present issues of market dominance inconsistent with the public interest. 3. Other Media Outlets 16. While Chancellor does not own and is not proposing to own any other media outlets in the San Juan CMSA or PMSA, we note that it is the licensee of three additional FM stations on the island of Puerto Rico - WIOB(FM), Mayaguez, Puerto Rico, WOYE-FM, Mayaguez, Puerto Rico, and WCTA-FM, San German, Puerto Rico. However, the Grade A contour of WAPA-TV does not overlap the communities of Mayaguez or San German. 4. Economic Status 17. Chancellor does not claim, under the fourth factor, that any of the stations are in financial distress. Chancellor maintains that this factor carries no substantial weight when a strong showing has been made that the public interest would otherwise be served by grant of a waiver. 5. Economic Concentration and Competition in the Affected Markets 18. Chancellor argues that, given the numerous other competing voices in the Puerto Rico area, grant of the one-to-a-market waiver will not have a significant adverse effect on either diversity or competition in that market. Based upon its engineering analysis, Chancellor maintains that, within the San Juan CMSA there are 15 other television stations of which 12 are commercial. In addition, within the San Juan PMSA, there are 45 radio stations (24 AM and 21 FM) of which 40 are commercial. This constitutes 45 separate media "voices." In addition, to these 45 separate media voices, Chancellor notes that there are 5 cable operators in the San Juan CMSA, 1 Multipoint Multichannel Distribution Service (MMDS) operator and 4 LPTV stations. The island of Puerto Rico is also served by 3 daily and 5 weekly newspapers. Chancellor concludes that this level of market diversity is well within that of other markets in which the Commission has granted one-to-a-market waivers. 19. With respect to economic concentration and competition in the affected markets, Chancellor states that the share of the radio and television advertising revenue which Chancellor will have in the San Juan market is within the bounds of what the Commission has previously approved. Chancellor notes that, according to its internal analysis, WAPA-TV currently has an advertising share in the Puerto Rico television market of about 23%, which places it in last place among the three San Juan television networks. As for the radio stations, Chancellor states that, according to the BIA Radio Analyzer Database, its share of the San Juan radio market will be 15% while Chancellor's internal analysis indicates that the radio stations share of the market is approximately 22%. Chancellor maintains that these shares are comparable to what the Commission has previously approved, and are well below the level of economic concentration about which the Commission has expressed concern. Chancellor pledges to maintain separate sales staffs at the commonly owned stations during the duration of its waiver which it believes would mitigate any concerns the Commission might have about competition in the San Juan market. B. Telemundo's Petition to Deny 1. Defective Application 20. In its Petition to Deny, Telemundo argues that the WAPA-TV transfer application as originally filed was defective because it did not contain a one-to-a-market waiver. While the WAPA- TV transfer application was filed on October 2, 1998, the one-to-a-market waiver was filed as an amendment on October 30, 1998. The October 30th amendment indicates that an officer of Chancellor reviewed and signed the amendment on October 5, 1998. Telemundo alleges that this is not possible because the text of the waiver request cites to a Commission decision, United Broadcasting Company, Inc., which was released by the Commission the following day on October 6, 1998. Furthermore, Telemundo notes that the waiver included information from an Internet search apparently dated October 8, 1998. Telemundo concludes that the amendment could not have been signed on October 5, 1998, as Chancellor claims, because "[n]o one can swear to an event which has not yet transpired, or to material which is not yet in existence." Johnston Broadcasting Co. v. FCC, 175 F. 2d 351, 354 (D.C. Cir. 1949). Telemundo argues that the execution of the amendment prior to its completion renders the amendment legally unverified; and, therefore, the Commission can only review the application as originally filed without the waiver request. In that case, it argues, the application remains defective and should be denied. See New Life Enterprises, Inc., 7 FCC Rcd 843, 844 (1992); see also 47 C.F.R.  73.3566(a). Furthermore, Telemundo requests that the Commission examine the circumstances surrounding the preparation and execution of the October 30th amendment to determine whether Chancellor or its agents perpetrated false representations before the agency. See Post-Newsweek Stations, Florida, Inc., 54 FCC 2d 254, 256 (Rev. Bd. 1975). 21. Chancellor responds that it inadvertently overlooked the fact that the October 30th amendment contained the earlier certification. In response to Telemundo's allegations, Chancellor nunc pro tunc supplied a new certification page to the October 30th amendment signed by one of its officers on December 17, 1998. Chancellor argues that defective certifications may be cured by a nunc pro tunc amendment where the application is otherwise substantially complete and the equities favor such an amendment. See Communication Gaithersburg, Inc., 60 FCC 2d 537 (1976). Chancellor maintains that the WAPA-TV transfer application is complete and the Commission has all the information it needs to process the application. In addition, Chancellor argues that no party will be prejudiced by acceptance of the amendment and it has not delayed in rectifying the defect. 22. In its Reply, Telemundo argues that the equities do not favor acceptance of the nunc pro tunc amendment. Telemundo alleges that Chancellor has admitted improper representations and omissions in its October 30th amendment. Such conduct, Telemundo contends, constitutes far more than clerical error. Telemundo argues that a misrepresentation of fact is a serious matter and the mere appearance of an inaccurate certification can warrant designation for hearing. Furthermore, Telemundo claims that equity would not be served by allowing acceptance of the new signature page because Chancellor did not seek to rectify its error until after a third party discovered and brought the matters to light. Telemundo maintains that an experienced broadcaster such as Chancellor should not be permitted to escape responsibility for a material misrepresentation. 2. Request for Waiver of the One-to-a-Market Rule 23. Telemundo argues that, even if the Commission accepts the October 30th amendment, it should nonetheless deny the WAPA-TV transfer application because Chancellor has not the met the Commission's case-by-case, one-to-a-market waiver standard. It should be noted that some of Telemundo's arguments concerning the sufficiency of Chancellor's waiver showing were resolved when Chancellor supplied additional information through an amendment filed December 17, 1998. We, therefore, focus only upon the remaining arguments raised by Telemundo. 24. Public Service Benefits of Joint Operations. Telemundo questions Chancellor's tardiness in supplying the cost savings information contained in its December 17th amendment. Telemundo argues that Chancellor's excuse for not being able to supply this information in its earlier filings is "unavailing." Telemundo maintains that the unanswered questions surrounding Chancellor's estimation of the cost savings from common ownership of the stations is a matter that warrants designating the WAPA-TV transfer application for hearing. 25. Telemundo also argues that the supposed public benefits cited by Chancellor appear to be in place or achievable without common ownership. Telemundo maintains that common ownership is simply unnecessary for the public interest to be served. Telemundo contends that there is no reason why TV and radio stations cannot now enter into standard industry trade agreements with respect to reciprocal advertisements on each other's facilities. Telemundo notes that WAPA-TV already participates in trade-outs with other stations. Telemundo also notes that the stations could also share those staff members who apparently are now under-employed in their current radio-only or TV-only positions. In addition, Telemundo claims that the radio stations, with WAPA-TV's permission, could and apparently do simulcast some of WAPA-TV's news programming. Telemundo continues that the stations could share with each other information about job openings and could pass along the names of qualified candidates that they could not hire. Furthermore, Telemundo argues that there is no reason why the radio stations and WAPA-TV could not join in each other's community and charitable events today. In sum, Telemundo claims that consolidation would not provide new opportunities for joint effort to serve the public. 26. Chancellor responds that the delay in submitting cost savings estimates was due to the limited information to which it had access prior to acquiring the subject radio stations. After operating the radio stations for a month, Chancellor was able to determine with greater specificity the efficiencies that can be achieved through common ownership of WAPA-TV and the radio stations. Chancellor adds that Telemundo has failed to explain what incentive broadcast stations that are not under common ownership (and thus are competitors) would have to exchange information about job openings and applicants, share staff members, or coordinate, on a permanent basis, news and weather gatherings information and sponsorships of community and charitable events. Chancellor contends that these public interest benefits become much more likely under common ownership and, in any case, the Commission has never required that applicants seeking one-to-a-market waiver demonstrate that these benefits be theoretically impossible except through common ownership. 27. Other Media Outlets. As for Chancellor's other facilities in the market, Telemundo questions Chancellor's statement that it "owns no other media outlets in the Puerto Rico market." Telemundo argues that Chancellor should have identified in its waiver request that it was in the process of acquiring WIOB(FM), WOYE-FM and WCTA-FM - those stations whose communities of license are outside of the Grade A contour of WAPA-TV. Telemundo also notes that WAPA-TV has local marketing agreements with two other UHF television stations in Puerto Rico - WTIN(TV), Ponce and WVEO(TV), Aguada, and Telemundo predicts that Chancellor will most likely assume those agreements. 28. Chancellor responds that it was not required to include the FM stations cited by Telemundo in its one-to-a-market analysis because none of those stations are located in the San Juan PMSA which is the applicable radio market in this case. 29. Type of Facilities. Concerning the types of facilities that Chancellor would own, Telemundo argues that the superior facilities to be amassed by Chancellor in San Juan undermine its claim that the proposed combination would not dominate the market from a technical standpoint. Telemundo points out that Chancellor already owns three of the ten most powerful Class B FM stations licensed to the San Juan-Bayamon PMSA, and, of those ten stations, only one has facilities superior to those of Chancellor's stations. Telemundo argues that Chancellor would own those radio stations as well as the San Juan's Channel 4 television station even though only one of the other VHF stations licensed to the San Juan-Caguas-Arecibo CMSA possesses superior facilities. Telemundo also speculates that Chancellor would assume the local marketing agreements for WTIN(TV) and WVEO(TV). Telemundo concludes that Chancellor has failed to present evidence sufficient to demonstrate that the combination of these technically dominant stations would serve the public interest. In response, Chancellor states that Telemundo has failed to show how Chancellor will be able to dominate the Puerto Rico market in the face of other licensees holding comparable or superior facilities. 30. Economic Status. As to Chancellor's inability to claim that any of the stations are experiencing financial difficulties, Telemundo merely cites precedent where the Commission has stated that a one-to-a-market waiver applicant "faces a heavy burden vis-a-vis the other factors" when the financial criterion does not weigh in favor of a grant of the waiver request. See New City Communications of Massachusetts, Inc., 10 FCC Rcd 4985, 4989 (1995), aff'd sub nom., WSB, Inc. v. FCC, 85 F. 3d 695 (D.C. Cir. 1996). 31. Economic Concentration and Competition in the Affected Markets Telemundo also questions whether Chancellor's analysis of the diversity and competition in the market supports a waiver grant. As an initial matter, Telemundo argues that it is unclear on what "market" Chancellor would have the Commission focus. Telemundo claims that Chancellor's references to the appropriate market in this case are confusing because they differ throughout the text of the waiver request. Telemundo notes that Chancellor refers to the market as the "San Juan PMSA," the "Puerto Rico CMSA," and the "affected markets." 32. Telemundo also claims that some of Chancellor's calculations of the number of other stations in the market are incorrect. For example, Telemundo notes that Chancellor claimed that there were 44 radio stations in the San Juan-Bayamon PMSA but that it listed only 43 in its Appendix 3. Telemundo cites to the Commission's BAPS database system as listing only 40 radio stations licensed to the communities listed in the San Juan-Bayamon PMSA and that those 40 stations are licensed to 32 separate owners and not 34. In addition, Telemundo cites to BAPS as showing 15 separate entities own the 15 television stations licensed to communities within the San-Juan-Caguas- Arecibo CMSA, while Chancellor claimed that there were 14 such owners. In the end, Telemundo concludes that Chancellor's data shows that it controls one-half of the six largest revenue generating radio stations in the San Juan-Bayamon PMSA. Telemundo argues that Chancellor's revenue data is so patently inadequate that the Commission cannot find that Chancellor deserves a waiver of the one-to-a-market rule to permit it to augment its already powerful media operation in and around San Juan. 33. In response, Chancellor states that Telemundo has not even attempted to refute Chancellor's showing that the Puerto Rico market is characterized by intense competition and enormous diversity. Chancellor notes that it clearly stated in its waiver request that it would be using market information from the San Juan PMSA and San Juan CMSA to describe the relevant radio and television markets, respectively. Chancellor disagrees with Telemundo that three radio stations - WYQE(FM), Naguabo, WMTI(AM), Morovis, and WXEW(AM), Yabucoa, should not have been included in the waiver analysis because, as Telemundo claims, each of these stations' respective communities of license is not within the San Juan PMSA. Chancellor's data clearly show that these communities are located within the San Juan PMSA. Chancellor concludes that Telemundo is left arguing only that Chancellor will have one quarter of the local TV advertising market, as well as two television LMA's. Chancellor points out that, according to its internal analysis, Telemundo has 41% of the Puerto Rico television advertising market (on an island-wide basis) and an LMA with a VHF station. Chancellor contends that its acquisition of WAPA-TV poses a threat, not to competition in the San Juan market, but only to Telemundo's dominant position. II. Discussion 34. Defective Application. With respect to its allegations concerning the acceptability of the WAPA-TV transfer application, we find that Telemundo's allegations do not warrant further inquiry. Chancellor noted in its original application that a waiver request was forthcoming and the request was filed as an amendment just four days after Chancellor actually acquired the radio stations in question. As to the allegation of defective certification of the amendment, Chancellor admits that the October 30th amendment was executed by one of its officers prior to its acquisition of the radio stations and the completion and filing of the waiver request. However, long-standing Commission practice makes clear that the defective certification may be cured by a nunc pro tunc amendment where the application is otherwise substantially complete and the equities favor such an amendment. Communication Gaithersburg, Inc., supra. The equities clearly favor acceptance where, as here, no party has alleged any prejudice, Chancellor has not delayed in rectifying the defect, and the defect is shown to be the result of an inadvertent error. Furthermore, in view of Chancellor's statement that a waiver request would be forthcoming, the transfer application was not placed on public notice until November 4, 1998, five days after the one-to-a-market waiver amendment was received, and therefore a full thirty-day period was provided for public comment on the waiver request. In light of Chancellor's statements in its original application as to its intention to seek a waiver, its oversight in including the earlier certification in its subsequently finalized and filed amendment cannot be construed, as argued by Telemundo, as an intent to deceive. The intent to deceive is a necessary element for us to find that a question of misrepresentation has been raised. See Fox River Broadcasting, Inc., 93 FCC 2d 127, 129 (1983). Thus, we do not believe that such an oversight rises to a question of misrepresentation warranting designation of the WAPA-TV transfer application. We remind Chancellor, however, that certification to the Commission is an extremely important act that demands strict care and attention by all applicants. 35. Request for Waiver of the One-to-a-Market Rule. In evaluating a request for waiver of the one-to-a-market rule, our goal "is to permit the public to benefit from such efficiencies of operation as may be achieved through the use of common facilities and staff, consistent with the maintenance of diversity and vigorous competition within the market areas involved." Second Report and Order Recon., 4 FCC Rcd at 6491. We do not require that all five case-by-case criteria be satisfied as a precondition to a waiver, but rather that the overall consideration of these factors weigh in favor of the public interest. Id. at 6493; Second Report and Order, 4 FCC Rcd at 1753. In evaluating Chancellor's one-to-a-market waiver request, we will follow the policy established in recent one-to-a-market waiver cases where the radio component of a proposed combination exceeds those permitted prior to the adoption of the Telecommunications Act of 1996. See Max Media Properties, LLC, DA 98-1264, released June 29, 1998; Triathlon Broadcasting of Little Rock Licensee, Inc., 12 FCC Rcd 13907 (1997); S.E. Licensee G.P., 11 FCC Rcd at 16732-33 (permanent waivers permitted when combination does not exceed 1 TV, 2 AM and 2 FM stations). In such cases, we have declined to grant permanent waivers of the one-to-a-market rule, and instead we have granted temporary waivers conditioned on the outcome of related issues raised in the television ownership rulemaking proceeding. Using this standard, we find that a permanent waiver would not be appropriate here but that, based upon its case-by-case showing, Chancellor has justified a temporary conditional waiver subject to compliance with the requirements set forth in the Report and Order released August 6, 1999. 36. We have granted one-to-a-market waivers where the potential benefits of the combination, such as economies of scale, cost savings and programming benefits, indicate that waiver will serve the public interest. See, e.g., Fant Broadcasting Company of Minnesota, Inc., 13 FCC Rcd 21126 (1998). We find that Chancellor has shown that consolidation of the five radio stations together with WAPA-TV will result in significant cost savings through consolidation of the stations' staff and by joint operation of the stations. Common ownership will also result in public benefits such as the radio stations having greater access to emergency information, which is vital to the island residents of Puerto Rico, as well as to the news and weather resources and expertise of WAPA-TV. This will enable the radio stations to provide enhanced local weather and local, national and international news. The public will also benefit from Chancellor's proposed cross promotion of the radio stations' local community events and charitable causes on the television station and vice versa. We disagree with Telemundo that the stations could undertake such joint activities regardless of common ownership. It seems more reasonable to conclude, as Chancellor does, that competing, separately-owned stations would be substantially less likely to join forces on such matters. 37. With respect to the types of facilities involved, the Commission endeavors to predict and avoid any significant adverse effect on diversity or competition from too powerful a radio-television combination. Second Report and Order, 4 FCC Rcd at 6349. While WAPA-TV is a powerful VHF station, we find that there are 2 other commercial VHF television stations within the San Juan CMSA (WKAQ-TV and WLII(TV)) that have facilities that are comparable with those of WAPA-TV and 1 commercial VHF television station (WPRV-TV) that has superior facilities to those of WAPA-TV. In addition, while Chancellor will own 5 radio stations in the San Juan market, 3 of which will be powerful Class B stations (WZNT(FM), WIOA(FM), WCOM(FM)), these three radio stations must compete with 9 other Class B radio stations with comparable facilities and 1 Class B radio station with superior facilities within the San Juan PMSA. In addition, the following station combinations exist in the San Juan market: International Broadcasting Corp., owns a Class B AM station, Class B FM station and UHF station TV station; and Aerco Broadcasting owns a Class B AM station and a UHF TV station. Therefore, despite Telemundo's allegations, we conclude that common ownership of the radio stations with WAPA-TV will not vest Chancellor with significantly superior facilities that would present issues of market dominance inconsistent with the public interest. 38. While Chancellor has not claimed that any of the stations are experiencing financial difficulties, that fact does not preclude a grant of the waiver request. We have permitted one-to-a- market waivers in a number of cases where none of the stations were experiencing financial difficulties. See, e.g., S.E. Licensee G.P., 11 FCC Rcd 16727 (1996); Alta Gulf FM, Inc., 10 FCC Rcd 7750 (1995); Secret Communications, L.P., 10 FCC Rcd 6874 (1995). 39. With respect to diversity and competition, we find that there are a sufficient number of media voices serving the relevant markets such that the common ownership and operation of these stations will not have a negative impact on these factors. We calculate that, after the transfer of control of WAPA-TV is approved and consummated, the stations will continue to compete with 15 television stations, of which 12 are commercial, and 45 radio stations, of which 40 are commercial, representing 45 separately owned and operated media voices. We further find that the San Juan market is served by numerous other media including 5 cable operators, 1 MMDS operator and 4 LPTV stations, as well as 3 daily and 5 weekly newspapers. 40. Finally, the revenue data supplied by Chancellor indicates that the proposed combination will not create any undue concentration of ownership or control of broadcast media within the San Juan market. According to Chancellor's internal revenue analysis, WAPA-TV controls 23% of the television advertising revenue in the San Juan market and the radio stations control, at most, 22% of the radio advertising revenue in the market. While Chancellor currently owns 3 of the 6 largest revenue generating radio stations in the San Juan market, we note that none of the radio stations in the market, including Chancellor's, have a revenue share of greater than 6% and Chancellor's combined share is, at most, only 22%. While Telemundo maintains that Chancellor's revenue data are "patently inadequate," it offers no support, documentary or otherwise, for this assertion nor does it present any alternative revenue data. Therefore, we accept Chancellor's data and we conclude that the proposed combination will not create any undue concentration of ownership or control of broadcast media in the San Juan market. 41. We conclude that, when examined in its totality, Chancellor's showing meets our case-by- case waiver criteria and grant of a temporary conditional waiver of our one-to-a-market rule subject to compliance with the requirements set forth in the Report and Order released August 6, 1999, would be in the public interest. Grant of a one-to-a-market waiver will result in significant cost savings and operational efficiencies that inure to the public's benefit through streamlined operations, increased promotion of community activities, and improved emergency information, weather, and news coverage for the radio stations. We further conclude that diversity and competition within the market area involved will not be unduly diminished. 42. Having reviewed Telemundo's allegations, we do not find that Telemundo has raised either a substantial or material question of fact warranting designation of the WAPA-TV transfer of control application for hearing. In view of the foregoing, and having determined that the parties are qualified, we find that a grant of these applications will serve the public interest, convenience and necessity. III. Conclusion 43. Accordingly, IT IS ORDERED, That the Petition to Deny of Telemundo of Puerto Rico License Corporation IS DENIED. 44. IT IS FURTHER ORDERED, That the request for temporary conditional waiver of the Commission's one-to-a-market rule, 47 C.F.R.  73.3555(c), to permit common ownership of stations WAPA-TV, San Juan, Puerto Rico, and WIOA(FM), San Juan, Puerto, Rico, WZNT(FM), San Juan, Puerto Rico, WIOC(FM), Ponce, Puerto Rico, WOQI(FM), Ponce, Puerto Rico, and WCOM(FM), Bayamon, Puerto Rico, IS GRANTED, subject to Chancellor's compliance with the 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). 45. IT IS FURTHER ORDERED, That the applications (File Nos. BTCCT-981002IA and BTCTT-981002IB - ID) for transfer of control of Pegasus Broadcasting of San Juan, LLC, from Pegasus Broadcasting, LLC to Chancellor Media Corporation of Los Angeles, ARE GRANTED. FEDERAL COMMUNICATIONS COMMISSION Magalie Roman Salas Secretary DISSENTING STATEMENT OF COMMISSIONER GLORIA TRISTANI In re Applications of Pegasus Broadcasting, LLC and Chancellor Media Corporation of Los Angeles for Consent to the Transfer of Control of Pegasus Broadcasting of San Juan, LLC Licensee of Television Stations WAPA-TV, San Juan, Puerto Rico, W43AA, Utuado, Puerto Rico, W49AC, Adjuntas, Puerto Rico, W56AA, Orocovis, Puerto Rico File Nos. BTCCT-981002IA and BTCTT- 981002IB ID I respectfully dissent for the reasons set forth in my statement in In Re Applications of United Broadcasting Company, Inc, et al., 13 FCC Rcd 21563 (1998).