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                         Before the
              Federal Communications Commission
                   Washington, D.C. 20554


In the Matter of                  )
                                 )
Pacific Spanish Network, Inc.,    )   File No. EB-04-SE-020
Holder of Permit to Transmit or   )   NAL/Acct No. 200432100012
Deliver  Programming  to Foreign  )   FRN: 0006146484
Stations                          )



         NOTICE OF APPARENT LIABILITY FOR FORFEITURE

Adopted:  July 28, 2004                 Released:   July 30, 
2004

By the Chief, Enforcement Bureau: 

I.   INTRODUCTION

     1.        In  this  Notice  of Apparent  Liability  for 
Forfeiture (``NAL''), we find Pacific Spanish Network, Inc., 
(``PSN'') apparently  liable for a forfeiture  in the amount 
of twenty thousand dollars  ($20,000) for  providing program 
material via the Internet to  a Mexican AM broadcast station 
in willful  and repeated substantial violation  of the terms 
and  conditions of  its  authorization  granted pursuant  to 
Section 325(c) of the Communications Act of 1934, as amended 
(the ``Act'').1 

II.   BACKGROUND

     2.        Under   Section  325(c)   of  the   Act,  the 
transmission or delivery of broadcast programming to foreign 
broadcast stations, such as those located in Mexico, for the 
purpose  of  being received  in  the  domestic radio  market 
requires  application to  and authorization  granted by  the 
Commission.2  On May 16, 2003, PSN filed with the Commission 
three  applications  pursuant  to Section  325(c).   In  its 
applications,  PSN  sought  authority  to  supply  broadcast 
programming from its Chula  Vista, California studio via the 
Internet to  Station XEKTT, frequency 550  kHz ,Tecate, Baja 
California,  Mexico, to  Station  XESS,  frequency 780  kHz, 
Ensenda,  Baja  California,  Mexico, and  to  Station  XEDD, 
frequency  920 kHz,  Ensenda, Baja  California, Mexico.   On 
July 16, 2003, the Commission's International Bureau granted 
PSN's applications  and issued it a  Section 325(c) permit.3  
The Section 325(c) permit  authorized PSN to supply ``music, 
talk and  other entertainment and  informational programming 
in Spanish'' to  Station XEKTT on frequency  550 kHz located 
in  Tecate, Mexico,  to Station  XESS on  frequency 780  kHz 
located  in  Ensenada,  Mexico,  and  to  Station  XEDD4  on 
frequency 920 MHz located  in Ensenada, Mexico.  The Section 
325(c) permit  expressly states  that it  is based  on PSN's 
``representation  that  the   statements  contained  in  the 
application[s] are true and  that the undertakings described 
will  be  carried  out  in  good faith,''  and  that  it  is 
conditioned upon  the Mexican stations' ``operation  in full 
compliance with  applicable treaties and  related provisions 
concerning   electrical  interference   to  U.S.   Broadcast 
stations.''5

     3.        In  early  December   2003,  in  response  to 
complaints   alleging  that   Station   XEKTT  was   causing 
interference  to  the  reception of  licensed  AM  broadcast 
stations in the U.S., an agent from the Enforcement Bureau's 
San  Diego  Office  visited  PSN's studio  in  Chula  Vista, 
California.  The  FCC agent met with  PSN's President, Jaime 
Bonilla,  and advised  him  that Station  XEKTT was  causing 
interference  to  licensed  U.S.  broadcast  stations.6  Mr. 
Bonilla told the  agent that Station XEKTT  was operating on 
frequency 560 kHz,  not 550 kHz, and that  PSN was providing 
programming to Station XEKTT from its Chula Vista studio via 
the Internet.7 Mr. Bonilla provided  the agent copies of the 
authorizations granted by the Mexican government for Station 
XEKTT on  frequency 550 kHz  and frequency 560  kHz.8  These 
authorizations  indicated that  on  November  14, 2003,  the 
Mexican government  authorized Station  XEKTT to  operate on 
frequency 550  kHz with  20 kW daytime  and 10  kW nighttime 
power, and  subsequently, on  December 9, 2003,  the Mexican 
government authorized Station XEKTT  to operate on frequency 
560 kHz with 20 kW daytime  and 10 kW nighttime power.   Mr. 
Bonilla also  told the agent  that PSN expected  to initiate 
similar service  to Stations XESS  and XESDD at  some future 
time.9

     4.        On January 16,  2004, the Commission received 
a petition  to rescind  PSN's Section 325(c)  permit.10  The 
petition maintained, and provided supporting engineering and 
technical documentation  to demonstrate, that  Station XEKTT 
had  been operating  on  frequency 560  kHz,  and that  such 
operations  had caused  substantial harmful  interference to 
the  reception of  certain U.S.  radio stations'  signals.11  
The  petition  further  maintained  that  the  International 
Bureau  had  never been  notified  of  and approved  Station 
XEKTT's operation  on frequency  560 kHz in  accordance with 
the 1986 U.S.-Mexico treaty governing coordination of medium 
frequency  AM band  stations.12    The  International Bureau 
confirmed that  it had received a  coordination notification 
from  the  Mexican   government  regarding  Station  XEKTT's 
operation on 1600 kHz with 250 W daytime and nighttime power 
in  accordance   with  the   U.S.-Mexico  treaty,   but  the 
International Bureau had never approved that operation.  The 
International Bureau  also confirmed that it  had never been 
notified of or approved  Station XEKTT's operation on either 
550 kHz or  560 kHz, as required by  the U.S.-Mexico treaty.  
In addition, Enforcement Bureau staff subsequently confirmed 
through monitoring of Station XEKTT that the Mexican station 
was operating  on 560 kHz  at increased power levels  from a 
new transmitter site.

     5.        On January 28,  2004, the Commission received 
a supplement  to the petition to  rescind.13  The supplement 
maintained,   and   provided  supporting   engineering   and 
technical  documentation to  demonstrate, that  Station XESS 
would   cause  substantial   harmful  interference   to  the 
reception of  certain U.S. broadcast stations'  signals when 
it  commenced operation  on  frequency 780  kHz  from a  new 
transmitter  site just  south of  the U.S.-Mexico  border.14  
The supplement further maintained  that Station XESS's prior 
operation on  frequency 1450  kHz had been  coordinated with 
and approved by the  International Bureau in compliance with 
the U.S.-Mexico  treaty, but  that its current  operation on 
frequency 780 kHz from the new site had not been coordinated 
or approved.  In addition,  the supplement maintained that a 
new   transmitter  site   for   Station   XESDD  was   under 
construction and  Station XESDD  was expected to  operate on 
frequency 920  kHz.  As  with Stations  XEKTT and  XESS, the 
petition maintained that Station  XESDD's prior operation on 
frequency 1560 kHz had been coordinated with and approved by 
the International Bureau in compliance with the U.S.-Mexican 
Agreement, but that  its operation on frequency  920 kHz had 
not been  coordinated or approved. The  International Bureau 
confirmed that  it had previously approved  the operation of 
Station XESS  on frequency  1450 kHz with  1 kW  daytime and 
nighttime  power.  The  International Bureau  also confirmed 
that it had  been notified of and approved  the operation of 
Station XESDD on 920 kHz with  200 W nighttime power, but it 
had  not approved  the proposed  operation of  Station XESDD 
with 2.5 kW daytime power.

     6.        On February 11, 2004, the Commission received 
a further supplement to  the petition to rescind,15 claiming 
that Station XESS had begun operating from its new site, and 
as expected, was causing substantial harmful interference.16 

     7.        The Enforcement Bureau's Spectrum Enforcement 
Division  (``Division'') sent  PSN  a letter  of inquiry  on 
February 11, 2004 and a  further letter of inquiry, on March 
19, 2004.17   Pursuant to  an extension  of time,  PSN filed 
responses to the  February 11 letter of inquiry  on March 8, 
2004,  and  responded to  the  March  19 further  letter  of 
inquiry on March 29, 2004.18  

     8.        In its responses, PSN stated that its May 16, 
2003  Section  325(c)   applications  which  identified  and 
described the  Mexican stations' operations  as subsequently 
modified by the Mexican  government in November and December 
2003, were  intended to  be ``forward-looking.''19   In this 
regard, PSN  stated that it  was aware  at the time  that it 
filed  its  Section  325(c) applications  that  the  Mexican 
stations planned  to modify and upgrade  their facilities.20  
PSN also  stated that it  did not  verify, and did  not know 
that it was  required to verify, that  the Mexican stations' 
operations had been coordinated  and were in compliance with 
the U.S.-Mexican Agreement, at the time it filed its Section 
325(c)  applications.  PSN  acknowledged  that  it  provided 
programming  via   the  Internet   from  its   Chula  Vista, 
California studio to Station  XEKTT after that station began 
operating on frequency 560  kHz in mid-November 2003.21  PSN 
further acknowledged  that it  did not  verify at  that time 
whether Station  XEKTT's operation on frequency  560 kHz had 
been  coordinated with  and  approved  by the  Commission.22  
Moreover,  although PSN's  Section 325(c)  permit explicitly 
stated  that it  authorized PSN  to supply  program material 
from its Chula Vista, California  studio via the Internet to 
``stations identified and located as follows: ... XEKTT, 550 
kHz, Tecate, Mexico,'' PSN claimed  that ``its belief at the 
time  was that  it could  continue supplying  programming to 
XEKTT after it  began operating on 560 kHz because  it had a 
Section  325(c) permit  ... [and]  it was  not aware  of any 
requirement  that it  take  further action  at the  FCC.''23  
Additionally, PSN claimed that it  did not know that Station 
XEKTT  was allegedly  interfering  with  the U.S.  broadcast 
stations until the January 16,  2004 petition to rescind was 
served,  and   that  thereafter,  it  continued   to  supply 
broadcast  programming to  Station  XEKTT  because ``it  was 
unaware of  any FCC requirement that  it discontinue service 
to   that  station.''24   Finally,   PSN   stated  that   it 
discontinued transmission of programming to Station XEKTT on 
February  17 2004,  and  would  neither resume  cross-border 
program  transmissions to  that  station  nor initiate  such 
transmissions   to   Stations   XESS  and   XESDD,   ``until 
interference  and  other  issues  identified  in  the  FCC's 
February   11,   2004   investigatory   letter   have   been 
resolved.''25  

     9.        On April  7, 2004,  PSN tendered  its Section 
325(c) permit for cancellation.26   PSN explained its tender 
by  stating  that ``it  is  evident  that the  proposals  to 
upgrade the  Mexican stations were not  coordinated with the 
United States Government before or after PSN applied for its 
permit ...  and must undergo that  procedure.''27 PSN stated 
that  it ``reserves  the right''  to reapply  for a  Section 
325(c)  authorization upon  completion  of the  coordination 
proceedings and resolution of the interference issues .28  

     10.       On  April  8,  2004,  the  Joint  Petitioners 
submitted  a reply  to PSN's  April 7,  2004 letter.29   The 
Joint Petitioners assert that PSN's tendering of the Section 
325(c)  permit  for cancellation  in  no  way eliminates  or 
mitigates the fact that  PSN knowingly operated in violation 
of  an express  condition  of its  Section 325(c)  permit.30  
Accordingly,  the  Joint  Petitioners urge  the  Enforcement 
Bureau  to  issue  a  formal  determination  regarding  such 
violation and  to impose  appropriate sanctions  upon PSN.31  
Joint  Petitioners  also  submit  that the  record  in  this 
proceeding demonstrates that PSN is  not qualified to hold a 
permit to deliver programming  to foreign broadcast stations 
and  assert  that  its   Section  325(c)  permit  should  be 
cancelled with prejudice.32

III.       DISCUSSION

     11.       Section  325(c)  of  the Act,  as  previously 
noted, prohibits the transmission or delivery of programming 
from a broadcast studio, place or other apparatus within the 
United States to a radio  station in a foreign country ``for 
the purpose of being broadcast  from any radio station there 
having a  power output of sufficient  intensity and/or being 
so located geographically that its emissions may be received 
consistently in the United States, without first obtaining a 
permit   from  the   Commission   upon  proper   application 
therefor.''  Section  325(c) serves to  prevent interference 
to broadcast stations' signals,  as well as the introduction 
of  broadcast   material  deemed  inimical  to   the  public 
interest, within the United States.33  

     12.       In  the instant  case, PSN  admitted that  it 
provided programming from its Chula Vista, California studio 
via the Internet to Station  XEKTT after Station XEKTT began 
operating  on  frequency  560   kHz  in  mid-November  2003, 
notwithstanding  the  fact that  the  express  terms of  its 
Section  325(c)   permit  only  authorized  it   to  provide 
programming to Station XEKTT on  frequency 550 kHz.  We find 
wholly unpersuasive  PSN's claim that that  it believed that 
``it could continue supplying  programming to XEKTT after it 
began operating on  560 kHz because it had  a Section 325(c) 
permit.''   In  this  regard, PSN's  Section  325(c)  permit 
explicitly states that ``[t]his permit shall not vest in the 
permittee any right to operate beyond the term hereof nor in 
any other manner than  authorized herein.''  Moreover, while 
PSN's Section 325(c) permit is explicitly ``conditioned upon 
the  Mexican  stations  operation in  full  compliance  with 
applicable  treaties   and  related   provisions  concerning 
harmful  interference  to  U.S.  Broadcast  stations,''  PSN 
admitted that it continued  to supply programming to Station 
XEKTT until  February 17,  2004, at least  a month  after it 
became aware that the  Mexican station's modified operations 
had  not   been  coordinated   with  and  approved   by  the 
International  Bureau  in  accordance with  the  U.S.-Mexico 
treaty  and that  the  Mexican station  was causing  harmful 
interference   to   licensed  U.S.   broadcast   stations.34  
Accordingly, based upon  the record before us,  we find that 
PSN supplied  cross-border programming  to Station  XEKTT in 
apparent willful35  and repeated36 violation of  the express 
terms and conditions of its Section 325(c) authorization.

     13.       Section  503(b)(1)(A)   of  the   Act,37  and 
Section 1.80(a)(2)  of the Rules,38 provide  that any person 
who willfully  or repeatedly  fails to  substantially comply 
with the terms and conditions of a Commission issued permit, 
license  or  other  authorization  shall  be  liable  for  a 
forfeiture  penalty.   The  forfeiture  amount for  entities 
other   than  broadcast   licensees  or   permittees,  cable 
television  operators and  common  carriers  may not  exceed 
$11,000  for each  violation  or each  day  of a  continuing 
violation,  up  to  a  maximum of  $87,500  for  any  single 
continuing  violation.39   In  determining  the  appropriate 
forfeiture amount,  we must consider the  factors enumerated 
in Section  503(b)(2)(D) of the  Act, such as  ``the nature, 
circumstances,  extent and  gravity of  the violation,  and, 
with respect to the violator, the degree of culpability, any 
history of  prior offenses, ability  to pay, and  such other 
matters as justice may require.''40

     14.       Neither the  Forfeiture Policy  Statement nor 
the rules  establish a base forfeiture  amount for supplying 
program material to a foreign broadcast station in violation 
of the terms of an authorization granted pursuant to Section 
325(c) of the Act.41    However, we think that a substantial 
proposed forfeiture is warranted.   Considering the facts of 
this case, including the fact that PSN's violation continued 
for  at  least a  month  after  PSN  became aware  that  the 
operation of  Station XEKTT was  not in compliance  with the 
applicable treaty  and was  causing harmful  interference to 
licensed  U.S.  broadcast  stations,  we  find  that  it  is 
appropriate to propose a $20,000 forfeiture.  Further, while 
PSN   has   tendered   its   Section   325(c)   permit   for 
cancellation,42 we  find that  such a  post-remedial measure 
does not lessen, mitigate, or  excuse its past violations of 
the Act.43  

IV.    ORDERING CLAUSES

     15.       Accordingly, IT IS  ORDERED that, pursuant to 
pursuant to Section 503(b) of  the Act44 and Sections 0.111, 
0.311 and 1.80 of the Rules,45 Pacific Spanish Network, Inc. 
IS  hereby   NOTIFIED  of  its  APPARENT   LIABILITY  FOR  A 
FORFEITURE  in   the  amount  of  twenty   thousand  dollars 
($20,000) for willfully and repeatedly violating the express 
terms and conditions of its Section 325(c) permit. 

     16.       IT  IS  FURTHER  ORDERED  THAT,  pursuant  to 
Section 1.80 of the Rules, within thirty days of the release 
date of this Notice of Apparent Liability for Forfeiture and 
Order,  Pacific Spanish  Network, Inc.,  SHALL PAY  the full 
amount of  the proposed forfeiture  or SHALL FILE  a written 
statement seeking reduction or  cancellation of the proposed 
forfeiture.

     17.       Payment  of the  forfeiture  may  be made  by 
mailing a check or similar  instrument, payable to the order 
of the Federal Communications  Commission, to the Forfeiture 
Collection Section,  Finance Branch,  Federal Communications 
Commission,  P.O. Box  73482, Chicago,  Illinois 60673-7482.  
The payment  must include the FCC  Registration Number (FRN) 
and the NAL/Acct. No. referenced in the caption. 

     18.       The response,  if any, must be  mailed to the 
Office of the  Secretary, Federal Communications Commission, 
445  12th  Street,  S.W.,   Washington,  D.C.  20554,  ATTN: 
Enforcement Bureau - Spectrum Enforcement Division, and must 
include the NAL/Acct. No. referenced in the caption.

     19.       The Commission will  not consider reducing or 
canceling a forfeiture  in response to a  claim of inability 
to  pay  unless the  petitioner  submits:   (1) federal  tax 
returns for the most recent three-year period; (2) financial 
statements   prepared   according  to   generally   accepted 
accounting;  or  (3)  some   other  reliable  and  objective 
documentation  that  accurately  reflects  the  petitioner's 
current  financial status.   Any claim  of inability  to pay 
must  specifically  identify  the  basis for  the  claim  by 
reference to the financial documentation submitted.

     20.       Requests for  payment of  the full  amount of 
this NAL under an installment plan should be sent to: Chief, 
Revenue and  Receivable Operations  Group, 445  12th Street, 
S.W., Washington, D.C. 20554.46

     21.       Under the Small Business Paperwork Relief Act 
of 2002, Pub L. No. 107-198,  116 Stat. 729 (June 28, 2002), 
the FCC is engaged in  a two-year tracking process regarding 
the  size  of  entities  involved in  forfeitures.   If  you 
qualify as a small entity and if you wish to be treated as a 
small entity for tracking purposes,  please so certify to us 
within thirty (30) days of this NAL, either in your response 
to  the NAL  or  in a  separate  filing to  be  sent to  the 
Enforcement  Bureau -  Spectrum Enforcement  Division.  Your 
certification  should indicate  whether you,  including your 
parent  entity  and  its   subsidiaries,  meet  one  of  the 
definitions  set forth  in the  list provided  by the  FCC's 
Office of  Communications Business  Opportunities (``OCBO'') 
set forth  in Attachment  A of  this NAL.   This information 
will be used  for tracking purposes only.   Your response or 
failure to respond  to this question will have  no effect on 
your rights and responsibilities  pursuant to Section 503(b) 
of  the Act.   If you  have questions  regarding any  of the 
information contained  in Attachment A, please  contact OCBO 
at (202) 418-0990.

     22.       IT  IS FURTHER  ORDERED that  a copy  of this 
Notice of Apparent Liability  for Forfeiture and Order shall 
be  sent  by first  class  mail  and certified  mail  return 
receipt  requested  to   Jaime  Bonilla  Valdez,  President, 
Pacific  Spanish Network,  Inc.,  296 H  Street, Suite  300, 
Chula  Vista, California  91910,  and to  counsel, Henry  A. 
Solomon, Esq., Garvey Schubert & Barer, 1000 Potomac Street, 
N.W., Fifth Floor, Washington, D.C. 20007-3501.  

     23.       IT  IS FURTHER  ORDERED that  a copy  of this 
Notice of Apparent Liability for Forfeiture shall be sent by 
first class mail and certified mail return receipt requested 
to  counsel for  KGO-AM  Radio, Inc.,  Tom  W. Davidson  and 
Natalie G. Roisman, Akin Gump Strauss Hauer & Feld LLP, 1333 
New Hampshire  Avenue, N.W., Washington, D.C.  20036, and to 
counsel for Owens One Company,  AMFM Radio Licenses, LLC and 
Capstar  TX  Limited  Partnership, Gregory  L.  Masters  and 
Marnie K. Sarver, Wiley Rein  & Fielding LLP, 1776 K Street, 
N.W., Washington, D.C. 20006.

     24.       IT IS  FURTHER ORDERED  that the  Petition to 
Rescind Authorization filed jointly  on January 16, 2004, by 
Owens One  Company, Inc., AMFM Radio  Licenses, LLC, Capstar 
TX Limited  Partnership and KGO-AM Radio,  Inc. IS DISMISSED 
as moot, and that proceeding IS HEREBY TERMINATED.47 

                         FEDERAL COMMUNICATIONS COMMISSION
                         


                         David H. Solomon
                         Chief, Enforcement Bureau
                              


                         Attachment A

                 FCC List of Small Entities

   As described below, a ``small entity'' may be a small 
                       organization,
  a small governmental jurisdiction, or a small business.

(1)  Small Organization 
Any  not-for-profit  enterprise that  is independently  owned 
and operated and 
is not dominant in its field.

  
(2)  Small Governmental Jurisdiction
Governments of  cities, counties, towns, townships, villages, 
school districts, or 
special  districts,  with a  population  of  less than  fifty 
thousand.


(3)  Small Business
Any   business  concern  that  is   independently  owned  and 
operated and 
is  not dominant in its  field, and meets the  pertinent size 
criterion described below.
  

       Industry Type          Description of Small Business 
                                     Size Standards
                 Cable Services or Systems
                             Special Size Standard - 
Cable Systems                 Small Cable Company has 400,000 
                             Subscribers Nationwide or Fewer
Cable   and   Other  Program 
Distribution                      $12.5 Million in Annual 
                                    Receipts or Less

Open Video Systems 
        Common Carrier Services and Related Entities
Wireline     Carriers    and 
Service providers 
                                1,500 Employees or Fewer
Local   Exchange   Carriers, 
Competitive           Access 
Providers,     Interexchange 
Carriers,  Operator  Service 
Providers,          Payphone 
Providers, and Resellers
Note:   With  the   exception  of  Cable  Systems,  all  size 
standards  are expressed  in  either millions  of dollars  or 
number  of employees  and  are generally  the average  annual 
receipts  or the  average employment  of a  firm.  Directions 
for   calculating   average  annual   receipts  and   average 
employment of a firm can be found in 
13 CFR 121.104 and 13 CFR 121.106, respectively.






                   International Services
International      Broadcast 
Stations






                                 $12.5 Million in Annual 
                                    Receipts or Less
International  Public  Fixed 
Radio  (Public  and  Control 
Stations)
Fixed              Satellite 
Transmit/Receive       Earth 
Stations
Fixed  Satellite  Very Small 
Aperture Terminal Systems
Mobile    Satellite    Earth 
Stations
Radio          Determination 
Satellite Earth Stations
Geostationary Space Stations
Non-Geostationary      Space 
Stations
Direct Broadcast Satellites
Home Satellite Dish Service
                    Mass Media Services
Television Services

                             $12 Million in Annual Receipts 
                                         or Less
Low     Power     Television 
Services    and   Television 
Translator Stations
TV     Auxiliary,    Special 
Broadcast  and Other Program 
Distribution Services
Radio Services
                              $6 Million in Annual Receipts 
                                         or Less
Radio   Auxiliary,   Special 
Broadcast  and Other Program 
Distribution Services
Multipoint      Distribution  Auction Special Size Standard -
Service                       Small  Business  is  less  than 
                             $40M in  annual gross  revenues 
                             for three preceding years
          Wireless and Commercial Mobile Services
Cellular Licensees
                                1,500 Employees or Fewer
220   MHz  Radio  Service  - 
Phase I Licensees
220   MHz  Radio  Service  -  Auction special size standard -
Phase II Licensees            Small Business is average gross 
                             revenues  of $15M  or less  for 
                             the   preceding   three   years 
                             (includes    affiliates     and 
                             controlling principals)
                             Very Small Business  is average 
                             gross revenues  of $3M  or less 
                             for the  preceding three  years 
                             (includes    affiliates     and 
                             controlling principals)
700 MHZ Guard Band Licensees


Private  and  Common Carrier 
Paging
Broadband           Personal 
Communications      Services     1,500 Employees or Fewer
(Blocks A, B, D, and E)
Broadband           Personal  Auction special size standard -
Communications      Services  Small Business is  $40M or less 
(Block C)                     in  annual gross  revenues  for 
                             three previous calendar years
                             Very Small Business  is average 
                             gross revenues of  $15M or less 
                             for    the   preceding    three 
                             calendar    years     (includes 
                             affiliates   and   persons   or 
                             entities that hold  interest in 
                             such    entity     and    their 
                             affiliates)
Broadband           Personal 
Communications      Services 
(Block F)
Narrowband          Personal 
Communications Services


Rural Radiotelephone Service     1,500 Employees or Fewer
Air-Ground    Radiotelephone 
Service
800  MHz  Specialized Mobile  Auction special size standard -
Radio                         Small Business is  $15M or less 
                             average  annual gross  revenues 
                             for  three  preceding  calendar 
                             years
900  MHz  Specialized Mobile 
Radio
Private Land Mobile Radio        1,500 Employees or Fewer
Amateur Radio Service                       N/A
Aviation  and  Marine  Radio 
Service                          1,500 Employees or Fewer
Fixed Microwave Services
                             Small    Business   is    1,500 
Public Safety Radio Services  employees or less
                             Small  Government Entities  has 
                             population of less  than 50,000 
                             persons
Wireless    Telephony    and 
Paging and Messaging             1,500 Employees or Fewer
Personal Radio Services                     N/A
Offshore      Radiotelephone     1,500 Employees or Fewer
Service
Wireless      Communications  Small Business is  $40M or less 
Services                      average  annual gross  revenues 
                             for three preceding years
                             Very Small Business  is average 
                             gross revenues of  $15M or less 
                             for the preceding three years 

39 GHz Service
                             Auction  special size  standard 
                             (1996) -
Multipoint      Distribution  Small Business is  $40M or less 
Service                       average  annual gross  revenues 
                             for  three  preceding  calendar 
                             years
                             Prior to Auction -
                             Small   Business   has   annual 
                             revenue of $12.5M or less
Multichannel      Multipoint 
Distribution Service              $12.5 Million in Annual 
                                    Receipts or Less
Instructional     Television 
Fixed Service
                             Auction  special size  standard 
                             (1998) -
Local             Multipoint  Small Business is  $40M or less 
Distribution Service          average  annual gross  revenues 
                             for three preceding years
                             Very Small Business  is average 
                             gross revenues of  $15M or less 
                             for the preceding three years 
                             First   Auction  special   size 
                             standard (1994) -
                             Small  Business  is  an  entity 
                             that,    together   with    its 
                             affiliates, has no  more than a 
218-219 MHZ Service           $6M   net  worth   and,   after 
                             federal income taxes (excluding 
                             carryover losses)  has no  more 
                             than $2M in annual profits each 
                             year for the previous two years
                             New Standard - 
                             Small Business is average gross 
                             revenues  of $15M  or less  for 
                             the   preceding   three   years 
                             (includes    affiliates     and 
                             persons or  entities that  hold 
                             interest  in  such  entity  and 
                             their affiliates)
                             Very Small Business  is average 
                             gross revenues  of $3M  or less 
                             for the  preceding three  years 
                             (includes    affiliates     and 
                             persons or  entities that  hold 
                             interest  in  such  entity  and 
                             their affiliates)
Satellite   Master   Antenna 
Television Systems                $12.5 Million in Annual 
                                    Receipts or Less
24 GHz - Incumbent Licensees     1,500 Employees or Fewer
24 GHz - Future Licensees     Small Business is average gross 
                             revenues  of $15M  or less  for 
                             the   preceding   three   years 
                             (includes    affiliates     and 
                             persons or  entities that  hold 
                             interest  in  such  entity  and 
                             their affiliates)
                             Very Small Business  is average 
                             gross revenues  of $3M  or less 
                             for the  preceding three  years 
                             (includes    affiliates     and 
                             persons or  entities that  hold 
                             interest  in  such  entity  and 
                             their affiliates)
                       Miscellaneous
On-Line Information Services  $18 Million in Annual Receipts 
                                         or Less
Radio     and     Television 
Broadcasting   and  Wireless 
Communications     Equipment      750 Employees or Fewer
Manufacturers
Audio  and  Video  Equipment 
Manufacturers
Telephone          Apparatus 
Manufacturers        (Except     1,000 Employees or Fewer
Cellular)
Medical    Implant    Device      500 Employees or Fewer
Manufacturers
Hospitals                     $29 Million in Annual Receipts 
                                         or Less
Nursing Homes                     $11.5 Million in Annual 
                                    Receipts or Less
Hotels and Motels              $6 Million in Annual Receipts 
                                         or Less
Tower Owners                  (See Lessee's Type of Business)





_________________________

147 U.S.C.  325(c).

247 U.S.C.  325(c).  

3See  File  No.   325-NEW-20030529-00004  (July  16,  2003) 
(``Section 325(c) permit'') 

4According  to PSN,  the  official call  sign  for XEDD  is 
XESDD.  See  Letter from  Henry A.  Solomon, Esq.  to Kathy 
Berthot,  Deputy  Chief,   Spectrum  Enforcement  Division, 
Enforcement Bureau,  at note 1  (March 8, 2004)  (``March 8 
LOI  Response'').    Hereinafter,  Station  XEDD   will  be 
referred to as Station XESDD.

5Id.

6In  its March  29, 2004  response to  a letter  of inquiry 
issued  by  the Enforcement  Bureau,  PSN  stated that  Mr. 
Bonilla ``does not recall'' being  advised by the FCC agent 
that  Station  XEKTT  was   causing  interference  to  U.S. 
broadcast  stations. PSN  stated  that the  agent told  Mr. 
Bonilla that  the Commission had been  receiving complaints 
that Station XEKTT was not properly authorized on frequency 
560 kHz.   PSN further stated  that Mr. Bonilla  ``does not 
deny that the FCC agent may  have meant to imply that XEKTT 
was causing interference.''  Letter  from Henry A. Solomon, 
Esq. to  Kathy Berthot, Deputy Chief,  Spectrum Enforcement 
Division,  Enforcement  Bureau,  at   2  (March  29,  2004) 
(``March 29 LOI Response'').

7March 29 LOI Response at 3.

8Id.

9Id. 

10See Petition to Rescind  Authorization (January 16, 2004) 
(jointly  filed by  Owens  One Company,  Inc., licensee  of 
KUZZ(AM),  550  kHz,  Bakersfield, California,  AMFM  Radio 
Licenses, LLC, licensee of  KLAC(AM), 570 kHz, Los Angeles, 
California and KFYI(AM), 550 kHz, Phoenix, Arizona, Capstar 
TX  Limited Partnership,  licensee  of  KBLU(AM), 560  kHz, 
Yuma, Arizona and KGO-AM Radio, Inc., licensee of KSFO(AM), 
560 kHz, San Francisco, California).  

11See note 10, supra  (identifying the stations licensed to 
the  Joint  Petitioners  and affected  by  Station  XEKTT's  
operations).  

12See Agreement Between the Government of the United States 
of America and the Government  of the United Mexican States 
Relating  to  the AM  Broadcasting  Service  in the  Medium 
Frequency Band, 1986.   

13See  Supplement to  and Motion  for Expeditious  Grant of 
Petition  to  Rescind  Authorization (filed  by  the  Joint 
Petitioners, January 28, 2004)  

14The supplement  to the petition anticipated  that Station 
XESS's operations  would affect Station KABC(AM),  590 kHz, 
Los Angeles,  California, licensed to KABC-AM  Radio, Inc., 
wholly  owned  by ABC  Holding  Company,  Inc., which  also 
wholly owns KGO-AM Radio, Inc., the licensee of KSFO(AM).
15See  Supplement  to  Motion   for  Expeditious  Grant  of 
Petition  to  Rescind  Authorization (filed  by  the  Joint 
Petitioners, February 11, 2004).

16See note 14 and accompanying text, supra.

17See Letters Joseph P.  Casey, Chief, Spectrum Enforcement 
Division, Enforcement  Bureau, to  Henry A.  Solomon, Esq., 
Jaime Bonilla  Valdez, President, PSN, Gregory  L. Masters, 
Esq., Marnie  K. Sarver,  Esq., Tom  W. Davidson,  Esq. and 
Natalie G. Roisman, Esq. (March 18, 2004) and (February 11, 
2004). 

18See March 8 LOI Response and March 29 LOI Response.  

19See March 29 LOI Response at 1, 5, 6.

20See March 29 LOI Response at  1, 5, 6. We note that PSN's 
president,  Jaime  Bonilla,   apparently  has  attributable 
and/or  related interests  in the  three Mexican  stations.  
Specifically, PSN  stated that Mr. Bonilla  holds the title 
of General Director (unsalaried) at Media Sports De Mexico, 
S.A.  de C.V.  (``MSM''), which  manages all  three Mexican 
stations, and his spouse  owns the controlling interest (98 
percent  of  the  voting  shares)  of  MSM.  March  29  LOI 
Response. at  7.   PSN further  stated that MSM  is seeking 
SCT authority to acquire the stations and currently ``holds 
title  to the  [their]  transmitting  facilities that  were 
constructed pursuant  to the upgrade  authorizations,'' for 
which PSN  financed all construction costs.   Id.  Finally, 
PSN stated that it has  oral time brokerage agreements with 
all three Mexican stations.  Id. at 7.  

21March 8 LOI Response at 2.   PSN indicates in its March 8 
LOI Response that it first  became aware that Station XEKTT 
was operating  on frequency  560 kHz in  mid-November 2003.  
Id.   However,   we  note   that  the   Mexican  government 
apparently did  not authorize  Station XEKTT to  operate on 
frequency 560 kHz until December 9, 2003.  See paragraph 6, 
supra.

22March 8 LOI Response at 2.

23March 29 LOI Response at 2.

24March 8 LOI Response at 3.

25See Letter from Henry A.  Solomon, Esq. to Kathy Berthot, 
Deputy  Chief, Spectrum  Enforcement Division,  Enforcement 
Bureau (February 25, 2004).   

26See Letter from Henry A.  Solomon, Esq. to Kathy Berthot, 
Deputy  Chief, Spectrum  Enforcement Division,  Enforcement 
Bureau (April 7, 2004).

27Id. at 1.

28Id. at 2.

29Letter  from  Tom W.  Davidson  and  Natalie G.  Roisman, 
counsel for KGO-AM Radio, Inc.,  and Gregory L. Masters and 
Marnie K. Sarver, counsel for Owens One Company, AMFM Radio 
Licenses, LLC and Capstar TX Limited Partnership, to Joseph 
P. Casey, Chief, Spectrum Enforcement Division, Enforcement 
Bureau (April 8, 2004).

30Id. at 1.

31Id.

32Id.

33See American Broadcasting Cos., Inc.,  35 FCC 2d 1, 5-6  
9 (1972); see also Fox  Television Stations, Inc., 77 RR 2d 
132,133,  137-38    5,  30,  33-35  (1994),  vacated  and 
remanded on other grounds, Channel  51 of San Diego v. FCC, 
79 F.3d  1187, 1188-89 (D.C.  Cir. 1996), rev'd  on remand, 
Fox Television  Stations, Inc., 11 FCC  Rcd 14870, 14875-78 
 17-25  (1996); aff'd sub  nom, Radio Television  S.A. DE 
C.V. et al. v. FCC, 130 F.3d 1078 (D.C. Cir. 1997).

34As previously  noted, PSN states that  Mr. Bonilla ``does 
not recall'' being advised of the interference from Station 
XEKTT  to licensed  U.S.  broadcast stations  when the  FCC 
agent visited  PSN's Chula  Vista studio in  early December 
2003.   See note  6, supra.   However, PSN  was clearly  on 
notice  of  the  interference  and the  fact  that  Station 
XEKTT's upgraded  facilities had not been  coordinated with 
and approved by the  International Bureau when the petition 
to rescind was filed on January 16, 2004, more than a month 
before PSN ceased supplying programming to Station XEKTT.

35Section  312(f))(1) of  the  Act, 47  U.S.C.   312(f)(1), 
which  applies  to  violations  for  which  forfeitures  are 
assessed  under Section  503(b)  of the  Act, provides  that 
``[t]he  term   `willful',  ...  means  the   conscious  and 
deliberate commission or omission  of such act, irrespective 
of any  intent to violate any  provision of this Act  or any 
rule  or regulation  of  the Commission  authorized by  this 
Act....'' See  Southern California  Broadcasting Co.,  6 FCC 
Rcd 4387 (1991). 

36Section 312(f)(2)  of the Act provides  that ``[t]he term 
`repeated', when  used with reference to  the commission or 
omission of  any act, means  the commission or  omission of 
such act more than once  or, if such commission or omission 
is  continuous,  for more  than  one  day.''  47  U.S.C.   
312(f)(2).

3747 U.S.C.  503(b)(1)(A).

3847 C.F.R.  1.80(a)(2).

39See 47 U.S.C.  503(b); 47 C.F.R.  1.80(b)(3).

4047  U.S.C.   503(b)(2)(D);  The Commission's  Forfeiture 
Policy Statement and Amendment of Section 1.80 of the Rules 
to Incorporate the Forfeiture Guidelines, 12 FCC Rcd 17087, 
17110  (1997),   recon.  denied  15  FCC   Rcd  303  (1999) 
(``Forfeiture Policy Statement''). 

41The  fact that  there is  no established  base forfeiture 
amount  for  this  violation  does  not  indicate  that  no 
forfeiture  should  be   imposed.   The  Forfeiture  Policy 
Statement states that ``... any omission of a specific rule 
violation from  the ... [forfeiture guidelines]  ... should 
not  signal  that  the Commission  considers  any  unlisted 
violation  as  nonexistent  or  unimportant.''   Forfeiture 
Policy  Statement, 12  FCC  Rcd at  17099.  The  Commission 
retains  the  discretion,  moreover,  to  depart  from  the 
Forfeiture  Policy Statement  and  issue  forfeitures on  a 
case?by?case basis, under  its general forfeiture authority 
contained in Section 503 of the Act.  Id.

42Given that PSN has tendered its Section 325(c) permit for 
cancellation, we find that  the Joint Petitioners' petition 
to  rescind PSN's  Section  325(c) permit  is  moot and  we 
accordingly  dismiss  it.  To  the  extent  that the  Joint 
Petitioners  request that  PSN's permit  be cancelled  with 
prejudice, we refer that matter to the International Bureau 
for consideration.

43See AT&T Wireless Services, Inc., 17 FCC Rcd 21866, 21871 
 14 (2002); KGVL, Inc., 42 FCC 2d 258, 259 (1973).

4447 U.S.C.  503(b).

4547 C.F.R.  0.111, 0.311 and 1.80.

46See 47 C.F.R.  1.1914.

47For purposes  of the  forfeiture proceeding  initiated by 
this NAL, Pacific  Spanish Network, Inc. shall  be the only 
party to the proceeding.