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It is not"v#,p(p(88:""Ԍthe Committee's intention that these provisions be used by cable systems to manipulate their carriage obligations to avoid compliance with the objectives of this section. Further, this section is not intended to permit a cable system to discriminate among several stations licensed to the same community. Unless a cable system can point to particularized evidence that its community is not  S8'part of one station's market, it should not be permitted to single out individual stations serving the same area and request that the cable system's community  S'be deleted from the station's television market.]   yOP'ԍH.R. Rep. 102628, 102d Cong., 2d Sess. 9798 (1992).]  S' e 7. ` ` In adopting rules to implement this provision, the Commission indicated that requested  xchanges should be considered on a communitybycommunity basis rather than on a countybycounty  xbasis, and that they should be treated as specific to particular stations rather than applicable in common  S ' xQto all stations in the market.H X  yO'ԍ8 FCC Rcd at 2977 n. 139. H The rules further provide, in accordance with the requirements of the 1992  S 'Cable Act, that a station not be deleted from carriage during the pendency of an ADI change request.<   yO'ԍ47 C.F.R. 76.59.<  S ' III. THE PLEADINGS  SX' e F8. ` ` In support of its request, Pegasus states that while the entire island of Puerto Rico is  xconsidered to be one television market, none of the communities served by Pegasus are located in WZDE's  xlocal television market. Pegasus states that application of the four market modification factors supports  xexclusion of its communities. First, Pegasus indicates that WZDE has no history of carriage on its system.  x*Pegasus argues that although the Commission has given little weight to historical carriage where a station  xbegan broadcasting only recently, it should give substantial weight in this instance. It points out that while  xWZDE began broadcasting on June15, 1998, it actually had nearly nine years within which to establish  xa history of carriage since it was granted a construction permit on August 9, 1989. Pegasus maintains that  xgwhere a station fails to build within a reasonable amount of time, the Commission has traditionally held  xthat it loses certain rights. For instance, Pegasus states that Section 76.5(e) of the Commission's rules  xyrequires the termination of a station's 35mile specified within 18 months after initial grant of its  S' xconstruction permit if it is not in operation by that date.> x  yO'ԍ47 C.F.R. 76.5(e).> Moreover, Pegasus states that the termination  xof WZDE's specified zone would limit its network nonduplication rights and sports blackout rights under  SP' xSections 76.92 and 76.67.J P  yO!'ԍ47 C.F.R. 76.92 and 76.67.J Pegasus argues that the Commission has traditionally used a station's specified  xzone as one of the indicators of that station's service area. Since WZDE has lost its network  xnonduplication and sports blackout rights, Pegasus asserts that it should likewise lose its right to demand  S'carriage.  S' e 9. ` ` In any event, Pegasus states that it is unlikely that it would have carried WZDE even if  xit had begun broadcasting in a timely manner. Pegasus states that the community of Carolina, to which"` ,p(p(88"  xWZDE is licensed, is located on the east end of the island near San Juan and Pegasus does not carry any  xof the 11 stations licensed to San Juan, Carolina, or other nearby communities, but only stations licensed to communities on the west end of the island.  S`' e  10. ` ` Second, Pegasus states that WZDE's Grade B contour does not encompass the communities  S8' x^it serves.>8  yO'ԍPetition at Exhibit B.> Pegasus points out that on April 4, 1998, WZDE requested a reduction in its effective radiated  xpower, which was subsequently granted. As a result, Pegasus states that WZDE's Grade B contour falls  xtapproximately 25 miles short of the nearest of the system communities. Pegasus argues that if it were  x}WZDE's intention to provide local service to western Puerto Rico, the station would clearly need to  xincrease its effective radiated power, not reduce it. Therefore, Pegasus maintains, the station's application  xto reduce its power is evidence that WZDE has decided not to serve western Puerto Rico. In addition,  xPegasus states that WZDE is geographically distant from the subject communities with the station's city  S ' xxof license and transmitter site approximately 80 and 85 miles distant, respectively.E X  yO'ԍPetition at Exhibits D and E.E Pegasus maintain that  S ' xpsuch distances far exceed distances in other decisions in which the Bureau has granted exclusion.   {O' xt ԍSee e.g., Time Warner Cable, 11 FCC Rcd 13149 (1996)(45 miles); Cablevision of Cleveland and V Cable,  {OJ' x d/b/a Cablevision of Ohio, 11 FCC Rcd 18034 (1996)(41 miles); Continental Cablevision of Western New England,  {O' x 11 FCC Rcd 6488 (1996)(4354 miles); Cablevision Systems Corp., 11 FCC Rcd 6453 (1996)(4043 miles);  {O' x Frederick Cablevision and C/R TV Cable, 11 FCC Rcd 4242 (1996)(4560 miles); and Greater Philadelphia  {O'Cablevision, 10 FCC Rcd 8788 (1995)(55 miles). Ġ  x Pegasus concludes that WZDE's lack of Grade B coverage and its geographic distance make it highly unlikely that it has any measurable viewership in the subject communities.  SX' e   11. ` ` Third, Pegasus states that not only does WZDE not publish a local programming guide,  xbut the cable system manager was informed by WZDE that the station's programming will not contain any  xcommunity service announcements, no local activities and no other programming of relevance to Pegasus's  S' xsubscribers.R  yO"'ԍPetition at Declaration of Ricardo Ferrar.R Pegasus argues that because WZDE's programming has no local ties, it does not meet the  xlocal needs and viewers of the communities which Pegasus serves. In any event, Pegasus states that other  S' xstations which is currently carries provide more focused programming.2  yOb' x ԍPegasus carries the following stations: WIPMTV (PBS); WORATV (Ind.); WJWNTV (Ind.); WELU (PBS); W63BF (Ind.); WVEO (Ind.); WQHA (Ind.); WNJXTV (Ind.); and WOLETV (Ind.). Pegasus argues that more than  xonehalf of the programming of stations WQHA, WELU and W63BF is produced by churches or other  x/religious organizations located in western Puerto Rico. In addition, it states that WOLE's program  xschedule includes more than seven hours of local religious, political and business programming each week.  xFinally, Pegasus states that its headend is located within the Grade B contours of all of the nine local stations it carries.  Sx' e  12. ` ` Finally, Pegasus points out that the Commission has already determined that the economic  SP' x}market served by the Pegasus system is a different economic market from that served by WZDE.>P  yOz''ԍPetition at Exhibit 1.> "P,p(p(88"  xPegasus states that in proceedings to establish boundaries for personal communications service ("PCS"),  xthe Commission decided that Puerto Rico should be divided in two to reflect the island's mountainous  S' xgeography and the fact that the mountains have created two distinct trade areas.0&  {O' xU ԍSee Amendment of the Commission's Rules to Establish New Narrowband Personal Communications Services,  yO' x Second Memorandum and Order, 9 FCC Rcd 4519 (1994). This division of Puerto Rico was initially made in the  {O' x broadband PCS proceeding. Amendment of the Commission's Rules to Establish New Personal Communications  {Ot'Services, Memorandum Opinion and Order, 9 FCC Rcd 4957 (1994), aff'd, 9 FCC Rcd 6908 (1994).0 Pegasus argues that the  xxeconomic and geographic separation of Pegasus from the San Juan/Carolina region explains why it carries  S`' xno broadcast stations from that area.>`  yO 'ԍPetition at Exhibit J.> Pegasus states that the Commission's reliance on economic and  S8' xVgeographic separation of this type was recently affirmed by the Second Circuit Court of Appeals._8F  {O 'ԍSee WLNYTV, Inc., 163 F. 3d 137 (2nd Cir. 1998)._  x&Pegasus maintains that this factor further supports the conclusion that its system communities do not belong in WZDE's television market.  S' e = 13. ` ` In opposition, WZDE argues that because Puerto Rico is considered to be one television  xtmarket, it is entitled to carriage on cable systems serving communities on the island. WZDE maintains  xthat its failure to commence broadcasting earlier merely reinforces the foundation for the Commission's  xmust carry rules which states that, historically, newlyfledged television stations have had an uphill battle  x/in seeking carriage on cable systems. Indeed, WZDE states that it has had to file eight must carry  S ' xcomplaints against island cable systems which ignored its requests for carriage.B   yOH'ԍCSR5298M through 5305M.B WZDE asserts that it  xIfaces numerous hurdles in developing a viable broadcast service, not the least of which is attaining  xcarriage on island cable system in a mountainous terrain. Therefore, WZDE argues, its lack of historic  xcarriage should not be of importance because it "could tend to defeat the underlying purposes of the  xkcarriage requirements . . .[and] would, in effect, prevent weaker or newer stations that cable systems had  S' x^previously declined to carry, from ever being carried."h  {O'ԍSee Time Warner EntertainmentAdvance/Newhouse Partnership, 1997 FCC Lexis 5045 at 2425. WZDE states that the Commission's records will  xQreflect that it was not ontheair for a substantial portion of 1998 primarily due to damage from Hurricane  xMGeorges. WZDE states that although it has had a rocky beginning, carriage on island cable systems is  x*essential to its survival and it is committed to operating a firstrate television station. To that end, WZDE  xindicates that it is taking steps to upgrade by establishing a digital television facility. Therefore, it  xmaintains, it is premature to emasculate its market area when it has only recently commenced broadcasting and is in the process of upgrading and improving its facility.  S' e  14. ` ` In reply, Pegasus states that WZDE fails to address any of the arguments raised in the  xpetition, nor does it dispute any of factors presented which overwhelmingly argue for the requested  xmodification. Pegasus states that WZDE's only argument was to plead that as a new UHF station it should  xkbe given the opportunity to upgrade and improve its facilities before any market modification takes places.  xVHowever, Pegasus points out that WZDE provides no explanation as to how its upgrade to a digital  S' xtelevision facility might provide better Grade B coverage or other local service to Pegasus's service area. " ,p(p(88"Ԍ S'ԙ IV. DISCUSSION  S' e 15. ` ` We grant Pegasus' modification request. Based on geography and other relevant  xinformation, we believe that the cable communities herein are sufficiently removed from WZDE that the  S`' xcommunities ought not be deemed part of the station's market for mandatory carriage purposes.]`  yO'ԍH.R. Rep. 102628, 102d Cong., 2d Sess. 9798 (1992).] As an  xinitial matter, we note that, according to the legislative history of the 1992 Cable Act, the use of ADI  xmarket areas is intended "to ensure that television stations be carried in the areas which they service and  S' xQwhich form their economic market."8X  {O 'ԍId. at 97.8 Changes may be sought and granted by the Commission "to better  S' xyeffectuate the purposes" of the mandatory carriage requirements.=  yOJ 'ԍ47 U.S.C. 534(h).= The market change process  xincorporated into the Communications Act, however, is not intended to be a process whereby cable  xpoperators may seek relief from the mandatory signal carriage obligations apart from the question of  xwhether a change in the market area involved is warranted. When viewed against this backdrop, and  xconsidering all of the relevant factual circumstances in the record, we believe that Pegasus' deletion  xpetition appears to be a legitimate request to redraw ADI boundaries to make them congruous with market  xrealities. Pegasus' actions do not reflect an intention to avoid its signal carriage responsibilities under the  x@1992 Cable Act and the Commission's rules, nor do they evidence a pattern of discriminatory conduct against the station.  S0' A. Historic Carriage  S' e `16. ` ` WZDE began operations in 1998 after a lengthy delay of almost ten years. Given the  xMstatutory directive, consideration must be given to this factor, bearing in mind that the objective of the  x&Section 614(h) process is to "better effectuate the purposes" of the broadcast signal carriage scheme.  xBecause WZDE only began to provide service in 1998, we will give its lack of historic carriage little  xxweight. We do give considerable weight, however, to the fact that Pegasus has no history of carrying the  xtelevision broadcast stations licensed to the eastern portion of the island where WZDE originates. Pegasus'  xfailure to carry these other similarlysituated stations demonstrates a lack of a nexus between itself and the subject communities.   Sx' B. Grade B Coverage/Local Service  SP'  S(' e 17. ` ` A station's local service to cable communities is one of the relevant factors to consider  S' xin this particular case that is not influenced by the type or age of the station involved or historical carriage.  xService may be measured through geographic means: by examining the distance between the station and  xthe cable communities subject to the deletion request and taking into account natural phenomena such as  xZwaterways, mountains and valleys which tend to separate communities. A station's broadcast of local  xprogramming, which has a distinct nexus to the cable communities, is also evidence of local service.  S8' x3Finally, a station's Grade A or Grade B contour coverage is an additional indicator of local service and"8z,p(p(88^"  S' x we will weigh the presence or absence of such technical coverage accordingly.=$  yOh' x ԍAs a general matter, Grade B coverage demonstrates service to cable communities and serves as a measure of  {O0' x a station's natural economic market. See Must Carry Order, 8 FCC Rcd at 2977. See also Amendment of Section  {O' x 76.51 (OrlandoDaytona BeachMelbourne, and Cocoa, Florida), 102 FCC 2d 1062, 1070 (1985) ("We believe that television stations actually do or logically can rely on the area within their Grade B contours for economic support.").= In the instant case,  xWZDE cites no examples of any programming specifically directed to the subject communities. Further,  xMthe cable communities involved lie outside of WZDE's predicted Grade B contour and are, on average, approximately 80 miles from WZDE's city of license.  S8' C. Carriage of Other Stations  S' e #18. ` ` We also believe that Pegasus' carriage of other local television stations provides support  xDfor the action requested. Where a cable operator is seeking to delete a station's mandatory carriage rights  xin certain communities, the issue of local coverage by other stations becomes a factor to which we will  xgive greater weight than in cases where a party is seeking to add communities. In this case, the stations carried by Pegasus have a closer nexus to the cable system than does WZDE.  S ' D. Viewership  S ' e 19. ` ` Pegasus also has argued that WZDE has no audience in the subject cable communities.  xWZDE has presented no evidence to rebut this. Moreover, the A.C. Nielsen 1997 County/Coverage  xSurvey does not even list WZDE. This dearth of viewership is of evidentiary significance when combined with the lack of both historical carriage and Grade B coverage.  S' Summary  S' e  20. ` ` We have carefully considered each statutory factor in the context of the circumstances  xpresented here. Given the evidence as to the lack of Grade B coverage, the lack of viewership, and the  x*lack of local programming, we conclude that it is logical and consistent with the objective of Section 614  xof the Communications Act to delete Pegasus' cable communities from WZDE's market for mandatory carriage purposes.  S' V. ORDERING CLAUSES  SP' e 21. ` ` Accordingly, IT IS ORDERED , pursuant to Section 614(h)(1)(C) of the Communications Act of 1934, as amended (47 U.S.C. 534(h)(1)(C)) and Section 76.59 of the Commission's rules (47 "",p(p(88!"Ԍ xԙC.F.R. 76.59), that the petition for special relief filed by Pegasus Cable Television of San German, Inc.  S'and MCT Cablevision, Limited Partnership IS GRANTED.  S' e 22. ` ` This action is taken pursuant to authority delegated by Section 0.321 of the Commission's  S`'rules.<`  yO'ԍ47 C.F.R. 0.321.< ` `  hhCFEDERAL COMMUNICATIONS COMMISSION ` `  hhCDeborah Klein, Chief ` `  hhCConsumer Protection and Competition Division ` `  hhCCable Services Bureau   S '