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A. 1. a.(1)(a) i) a)#)a [ PQ)P# ## b, oT9 !#)^ `> XiQ)X#   Page ``e%)Copyright  Portola Systems, Inc. 1987, 1988 58Ç.7=@6FFormat Downloaded Document=F*'Ç.7=.EUOP XX    #\ #d6X@7@#Bld/Und7=@6FBold and Underline Text87=F*'Ç.7=.EQR  2G+s)q)qe*q*a1Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*'%STD*  a2Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*'UVa3Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*'WXa4Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*'YZ2=-qy+q+q[,q,a5Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*'[\a6Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*']^a7Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*'_`a8Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*'ab2/o-..@/a159.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'8st@   a259.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'Auv@` `  ` ` ` a359.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'Jwx` ` @  ` `  a459.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'Syz` `  @  2-3001\2a559.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'\{|` `  @hh# hhh a659.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'e}~` `  hh#@( hh# a759.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'n` `  hh#(@- ( a859.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'w` `  hh#(-@pp2 -ppp 25_33405a160.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'8@   a260.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'A@` `  ` ` ` a360.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'J` ` @  ` `  a460.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'S` `  @  29667L8a560.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'\` `  @hh# hhh a660.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'e` `  hh#@( hh# a760.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'n` `  hh#(@- ( a860.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'w` `  hh#(-@pp2 -ppp 2;O99~:#;a129f—+b—!tRight-Aligned Paragraph NumberswH(RK+P8@   a229f—+b—!tRight-Aligned Paragraph NumberswH(RK+PA@` `  ` ` ` a329f—+b—!tRight-Aligned Paragraph NumberswH(RK+PJ` ` @  ` `  a429f—+b—!tRight-Aligned Paragraph NumberswH(RK+PS` `  @  2?<<z=C>a529f—+b—!tRight-Aligned Paragraph NumberswH(RK+P\` `  @hh# hhh a629f—+b—!tRight-Aligned Paragraph NumberswH(RK+Pe` `  hh#@( hh# a729f—+b—!tRight-Aligned Paragraph NumberswH(RK+Pn` `  hh#(@- ( a829f—+b—!tRight-Aligned Paragraph NumberswH(RK+Pw` `  hh#(-@pp2 -ppp 2gBG?@lmAANORMAL INDENT ' 4 <DL!T$#&n P&P##&n P&P#footnote referencefootnote reference4#V\  PUP#Default Paragraph FoDefault Paragraph Font footnote textfootnote text US????US2 EBYCgDzDendnote referenceendnote reference44#XO\  PUXP##B\  PUP#_Equation Caption_Equation Caption11#XX2PQXP##I2PQP#FM7V,,6%TriangleoF4=(g4O7V ,*g4çFM7VE/0a11I.E+')*'0Right-Aligned Paragraph Numbers')8?I u*')8ij@   2LI>EEK}FHa21I.E+')*'0Right-Aligned Paragraph Numbers')8?I u*')Akl@` `  ` ` ` a31I.E+')*'0Right-Aligned Paragraph Numbers')8?I u*')Jmn` ` @  ` `  "i~'^:LpddDDDdp4D48ddddddddddDDpppdLd||p|||D8DpdDddXdXDdp88d8pdddLL8pXdXLD,DpD4ppDDD4DDDDDDdDd8dddddXXXXXL8L8L8L8pddddpppp|Xdddd|Xd|ddddXXpXXXXXdddpdppL8LdLDLdpppd|8|h|D|L|8pppddLLLpLpLpLpp|l|8|ppppppp|p|L|L|Ld|DppL|D|d4ddC8CWddddddddddddddddddddddddddddddddddddddddNHxxHddLdddddd4>iiffSSxSrff8SS?"xxSx[xxS姧0S88xcxxxxxxxxxx8S{g]ix{S8ixSi`xlxxxxxxxxxxYxxxxxxofxGcxxxxxxxSxxxxxxxJxxxxJxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx8xxx8xxx8xxx8xxxxxxxxxxxxx{]iY]S{Y`MfGx`Y.(oS{V]x]iG`x`cYccJiMrYuxPr{{`x8irr{Y]rrz88iiii{xiiirrr{8`SJ8Muu]daqqZZnn{{xu{{M{aZZ5M5M҅P?k"i~'K2^88Ygg888g8888gggggggggg88V{gux`]{x.]oYxcllgxxxrd888SS8Y`Y`Y<``((Y(````;S<`]]]PSSSg0ggggg8ggggggSgd({Y{Y{Y{Y{YuY`Y`Y`Y`Y.(.(.(.(x`````x`x`x`x`r]{Yxa``r]x`c`{Z{g{ZuZuZugugx{aZggggaZ{a{g{g{g{gxgxg/(gggg0dPggogZ(ZCggZFZ/xaxaxgagk>iiffSSxSrff8SSA"xxSxexxS姧0S88xfxxxxxxxxxx8S{gci{P8ix]i`xrxxxxxxxxxxSxxxxxxofxGcxxxxxxxSxxxxxxxSxxxxSxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx8xxx8xxx8xxx8xxxxxxxxxxxxx{`ic]S{``SfMx`f.+oS{Scx]xP`fc`flMiMrcxx]x{`x8irr`lrxz88iiii{xiiirrr8fSJ8Muu]daqqZZnn{{xu{{M{aZZ5M5M҅P?k`7jC:,yoXj\  P6G;XPay.X80,ɓX\  P6G;Pb7nC:,>dL!!!>d!!!!>>>>>>>>>>!!ddd4dJ>FH98JH8C6ZHL;N@@>HHdHE>>>>>!>>>>>>2><J6J6J6J6J6bTF696969696H9L9L9L9L9H9H9H9H9E8J6H:L9L9E8H9;9J6J>J6F6F6F>F>HB:6>>>>:6J:J>J>J>J>H>H>>>>>>C>66">>66H:JH:H>L:L>d[@$@$@>@2@2@2@>>(>$>>H9H:H>H>H:H9dVE><0<0<0H>>>H>@>>>E8B!22!!!WddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddNHHH2>>!488>>`>))dd>&&22>d&!!22?d%%dd??==Ld2d2H2E]]==d!22dd&"ddddHHddd2Hdd7HHddddd2ddddd d2!!dddddH;ddHHHHHHHHHH!d2J>8?ddHdJ2!?H2?9HNAddHHHHHHHHHHddddd6dHHHHdddddddddddddddddddHHddddddSC=NdHddd+;HHHHddddddHHH2HHdHHdddHHH,HHHH,HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH!HHH!HHH!HHH!HHHHHHHHHHHHHJ8?682J69.=+H9L6C2J4[8H8?+L9H9;6;;,?.E6QFH0PEJLJ9H!?LEEJ68LEEI!!????JH???EEEJ!92,!ddhrZz.lZrrvvnFFZ83 * $(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  'Zthere were 44 radio stations in the San JuanBayamon 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 JuanBayamon 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  'jSanJuanCaguasArecibo CMSA, while Chancellor claimed that there were 14 such owners. In  'the end, Telemundo concludes that Chancellor's data shows that it controls onehalf of the six  'largest revenue generating radio stations in the San JuanBayamon PMSA. Telemundo argues  'that Chancellor's revenue data is so patently inadequate that the Commission cannot find that  'Chancellor deserves a waiver of the onetoamarket rule to permit it to augment its already powerful media operation in and around San Juan.  X3 * $ 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  'istations 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  '7Telemundo is left arguing only that Chancellor will have one quarter of the local TV advertising"-' ,-(-(ZZ*"  '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 islandwide  '{basis) and an LMA with a VHF station. Chancellor contends that its acquisition of WAPATV  'poses a threat, not to competition in the San Juan market, but only to Telemundo's dominant  X3position.  X3   Xv3[ II. Discussion ă  XH3 * $(!34. Defective Application. With respect to its allegations concerning the acceptability of  'the WAPATV 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,  '7longstanding Commission practice makes clear that the defective certification may be cured by  X3 'a nunc pro tunc amendment where the application is otherwise substantially complete and the  X}3 'Iequities 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  '7delayed in rectifying the defect, and the defect is shown to be the result of an inadvertent error.  'YFurthermore, 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  ''onetoamarket waiver amendment was received, and therefore a full thirtyday period was  X3 'provided for public comment on the waiver request.`XW yOn" '&ԍ In situations where an assignment or transfer of control application has already been placed on public notice  'before it was ascertained that a multiple ownership waiver was required, it is the staff's current policy to place the application on public notice for a second time. ` 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  X3 '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  Xm3 'misrepresentation warranting designation of the WAPATV transfer application. mW yO " * $[ԍChancellor consummated the radio stations purchase on October 26, 1998, but did not formally report this  'fact pursuant to Section 1.65 of the Commission's Rules until December 17, 1998. Under the circumstances  yO!" 'presented above, we similarly find no intent to deceive on Chancellor's part as a result of its tardiness, nor do we view it as a material omission. We remind  'ZChancellor, however, that certification to the Commission is an extremely important act that demands strict care and attention by all applicants.   X3 * $"35. Request for Waiver of the OnetoaMarket Rule. In evaluating a request for waiver  'Yof the onetoamarket rule, our goal "is to permit the public to benefit from such efficiencies of"  ,-(-(ZZ!"  'operation as may be achieved through the use of common facilities and staff, consistent with the  X3 'maintenance of diversity and vigorous competition within the market areas involved." Second  X3 'Report and Order Recon., 4 FCC Rcd at 6491. We do not require that all five casebycase  'criteria be satisfied as a precondition to a waiver, but rather that the overall consideration of these  X3 'Yfactors weigh in favor of the public interest. Id. at 6493; Second Report and Order, 4 FCC Rcd  'at 1753. In evaluating Chancellor's onetoamarket waiver request, we will follow the policy  '|established in recent onetoamarket waiver cases where the radio component of a proposed  'combination exceeds those permitted prior to the adoption of the Telecommunications Act of  XN3 '1996. See Max Media Properties, LLC, DA 981264, released June 29, 1998; Triathlon  X93 '|Broadcasting of Little Rock Licensee, Inc., 12 FCC Rcd 13907 (1997); S.E. Licensee G.P., 11  '&FCC Rcd at 1673233 (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  'onetoamarket rule, and instead we have granted temporary waivers conditioned on the outcome  'Hof related issues raised in the television ownership rulemaking proceeding. Using this standard,  X 3 'we find that a permanent waiver would not be appropriate here but that, based upon its caseby 'case showing, Chancellor has justified a temporary conditional waiver subject to compliance with  X3the requirements set forth in the Report and Order released August 6, 1999.  Xn3 * $#36. We have granted onetoamarket waivers where the potential benefits of the  'combination, such as economies of scale, cost savings and programming benefits, indicate that  X@3 '7waiver will serve the public interest. See, e.g., Fant Broadcasting Company of Minnesota, Inc.,  X+3 '13 FCC Rcd 21126 (1998). We find that Chancellor has shown that consolidation of the five  'radio stations together with WAPATV will result in significant cost savings through  'iconsolidation of the stations' staff and by joint operation of the stations. Common ownership will  'lalso 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 WAPATV. 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  Xs3 'jcharitable 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, separatelyowned stations would be substantially less likely to join forces on such matters.  X3 * $$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 X 3 '&television combination. Second Report and Order, 4 FCC Rcd at 6349. While WAPATV is a  'powerful VHF station, we find that there are 2 other commercial VHF television stations within  'the San Juan CMSA (WKAQTV and WLII(TV)) that have facilities that are comparable with  'those of WAPATV and 1 commercial VHF television station (WPRVTV) that has superior  'facilities to those of WAPATV. 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"5' ,-(-(ZZ*"  '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 WAPATV will not vest Chancellor with significantly superior facilities that would present issues of market dominance inconsistent with the public interest.  X_3 * $%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 oneto 'kamarket waivers in a number of cases where none of the stations were experiencing financial  X 3 'difficulties. See, e.g.,   S.E. Licensee G.P., 11 FCC Rcd 16727 (1996); Alta Gulf FM, Inc., 10  X 3FCC Rcd 7750 (1995); Secret Communications, L.P., 10 FCC Rcd 6874 (1995).  X 3 * $J&39. With respect to diversity and competition, we find that there are a sufficient number  'Hof 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 WAPATV is approved and consummated, the stations will continue to  X}3 'compete with 15 television stations, of which 12 are commercial, and 45 radio stations, of which  Xf3 '40 are commercial, representing 45 separately owned and operated media voices.x fW {O" * $ԍAs noted infra, Nielsen does not designate DMA's or television metro markets for Puerto Rico and no other  'national ratings service designates equivalent markets. Therefore, we must determine what would be an appropriate  '&alternative "market" for purposes of counting the number of broadcast stations which compete with the stations in  'the proposed combination. Here, WAPATV's Grade A contour encompasses the geographic area of Ponce, Puerto  'Rico and the principal community contours of the radio stations that are licensed to the communities contained  'Htherein. Therefore, it is appropriate to count as a competing television voice, those television stations licensed to  'Ponce. In addition, with respect to the number of competing radio stations, it is appropriate to count those stations  {OY" '{licensed to Ponce, where two of the proposed coowned radio stations are licensed. See WPRA, Inc., 12 FCC Rcd at 2587 n.12. x 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.  X 3 * $'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, WAPATV  'Hcontrols 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  '8otherwise, for this assertion nor does it present any alternative revenue data. Therefore, we  '8accept 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."   ,-(-(ZZ "Ԍ  X3 * $(41. We conclude that, when examined in its totality, Chancellor's showing meets our  'Ycasebycase waiver criteria and grant of a temporary conditional waiver of our onetoamarket  X3 'rule subject to compliance with the requirements set forth in the Report and Order released  X3 'August 6, 1999, would be in the public interest.N $W yO" * $mԍEven assuming that Chancellor will continue WAPATV's LMA relationship with the other television  'stations, such arrangement is not presently accorded significance in our analysis of onetoamarket waiver requests.  {O" 'See S.E. Licensee G.P., 11 FCC Rcd 16727, 16732 (1996). However, our grant of Chancellor's waiver request will  {Oy"also be conditioned on the ultimate result reached in the pending attribution rulemaking proceeding. Id.N Grant of a onetoamarket waiver will result  'in significant cost savings and operational efficiencies that inure to the public's benefit through  'Hstreamlined operations, increased promotion of community activities, and improved emergency  Xa3 'Jinformation, 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.   X 3 * $)42.  Having reviewed Telemundo's allegations, we do not find that Telemundo has raised  X 3 'either a substantial or material question of fact warranting designation of the WAPATV 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,  X 3convenience and necessity.   X 3 ?WIII. Conclusion  X}3  Xf3 * $*43. Accordingly, IT IS ORDERED, That the Petition to Deny of Telemundo of Puerto Rico License Corporation IS DENIED.  X!3 * $+44. IT IS FURTHER ORDERED, That the request for temporary conditional waiver of  'the Commission's onetoamarket rule, 47 C.F.R.  73.3555(c), to permit common ownership  '(of stations WAPATV, 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  X3 'compliance with the procedures set forth in Review of the Commission's Regulations Governing  X3 'Television Broadcasting, Report and Order, MM Docket No. 91221, FCC 99209 (released August 6, 1999)." ,-(-(ZZ"  X3 * $I,45. IT IS FURTHER ORDERED, That the applications (File Nos. BTCCT981002IA and  'BTCTT981002IB ID) for transfer of control of Pegasus Broadcasting of San Juan, LLC, from  X3Pegasus Broadcasting, LLC to Chancellor Media Corporation of Los Angeles, ARE GRANTED.  FEDERAL COMMUNICATIONS COMMISSION  Magalie Roman Salas  X13 Secretary "1 ,-(-(ZZ"     X3A DISSENTING STATEMENT OF COMMISSIONER GLORIA TRISTANI   V3 'I 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 WAPATV, San Juan, Puerto Rico, W43AA, Utuado, Puerto Rico,  'W49AC, Adjuntas, Puerto Rico, W56AA, Orocovis, Puerto Rico File Nos. BTCCT981002IA and BTCTT981002IB ! ID  X13 * $I respectfully dissent for the reasons set forth in my statement in In Re Applications of  X 3United Broadcasting Company, Inc, et al., 13 FCC Rcd 21563 (1998).