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(1) (a) (i) 1) a)D )DDDFrf?$ a2Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrf@/` ` ` a3Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfA:` ` `  a4Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfBE` ` `  2rCoDpE\qFra5Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfCP  ` ` ` hhh a6Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfD[   a7Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfEf  a8Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfFq 2'z Ks^buFZgy"i~'^09FSS999Sq+9+/SSSSSSSSSS99qqqSggnxggxx9In]nxgxgS]xgg]]?/?FS9SSISI/SS//I/xSSSS??/SInII?C/CZ9+ZF999+999999S9S/gSgSgSgSgSnnIgIgIgIgI9/9/9/9/nSxSxSxSxSxSxSxSxS]IgSxSxSxS]IxSgSgSgSgSnInInZnIxdgIgIgIgIxSxSxSxZxSxZxS9/9S999SSZZnI]/]<]9]5]/nSanSnSxSxSng?g?g?S?S?S?ZZ]<]/]FxSxSxSxSxSxSn]Z]?]?]?xS]9nSS?]9]Sd+SS8%8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuddddddddddddddddddddddddddddddddddddddddN- xof granting the waiver request. Second Report and Order Recon., 4 FCC Rcd at 6491. Emmis has submitted a showing that addresses each of the criteria.  X-  Waiver Showing ă  X-  6.x Public Service Benefits of Joint Operation. Emmis reports that by consolidating the  xLoperations of WTHI(AM), WTHIFM and WTHITV, Wabash Valley has achieved significant  xeconomies of scale and cost efficiencies which translate into substantial public interest benefits  x<for the residents of Terre Haute. Emmis states that it intends to continue the consolidation of the  xthree stations' operations in order to maintain these efficiencies and resulting public interest benefits.  X"-  7.xAccording to Emmis, by sharing a physical plant, the WTHI(AM)/FM/TV combination  xresults in considerable annual savings in rent and utilities. In addition, Emmis states that it plans  xto follow Wabash Valley's current practice of combining postage, telephone and data processing"V$ ,l(l(,,%"  xjexpenses ($55,000 savings). The stations also employ the same legal counsel and accountants  xand maintain joint insurance ($9,000 savings). And Emmis asserts that consolidation of the three  xstations' administrative functions, including business offices, equipment and accounting staffs,  xcreates cost savings of nearly $83,000. Emmis proposes to save an additional $32,000 on  xtechnical expenses by using TV engineers and technicians at the radio stations. Crosspromotions  xlare another source of cost savings, as the radio stations save approximately $200,000 by  xadvertising on WTHITV. Additionally, Emmis states that it expects to achieve roughly $20,000  xin savings through group discounts on promotional items and outdoor advertising. In addition,  xzby Emmis' estimate, Wabash Valley currently saves a minimum of $100,000 annually in news  xcosts because the AM and FM stations have access to the news gathering resources of the  xtelevision station. Emmis contends that if the news functions of the stations were separated, at  xleast four additional fulltime news employees would be required to maintain the current level  xof news coverage. In all, Emmis estimates that it would cost an additional $544,000 annually to operate the three stations separately at the same level of service to the community.  X -  N8.xEmmis asserts that the efficiencies arising from common ownership and operation of the  xWTHI(AM)/FM/TV combination will allow Emmis to maintain enhanced service to the Terre  xHaute community, "primarily [through] . . . substantially increased news and public affairs  xNprogramming." The AM and FM stations will be able to draw on the considerable news  xresources of the television station, which has a news budget of over $1 million. Specifically,  xEmmis maintains that the radio stations which have a news staff of one fulltime and two part xtime employees will be able to take advantage of WTHITV's 32person news, weather and  xLsports department as well as the television station's fiveperson public service and community  xpromotions staff. WTHI(AM), which currently airs public local affairs programming from 10  xa.m. to noon each day, also simulcasts WTHITV's nightly 6 o'clock newscast. Additionally,  xsays Emmis, the AM station provides comprehensive coverage of local high school, college and  xprofessional sports, while the FM station, which has a country format, also broadcasts local programming using local talent.  X -  ]9. xEmmis notes that the three stations jointly sponsor more than 30 different public service  xorganizations and specific community events each year. For example, the radio stations work  xiclosely with the television station to promote public service programs to combat drug and alcohol  xxabuse and crime. Emmis reports that through combined efforts, the stations have raised hundreds  xof thousands of dollars for a local hospital, the March of Dimes, the Children's Miracle Network  xand the United Way of the Wabash Valley. According to Emmis, the continued joint ownership  x\of the three stations will benefit women and minorities. In this regard, Emmis notes that the  xstations have established internship programs and regularly hire students from local colleges as  xparttime employees. Emmis pledges to continue this "aggressive recruitment and support of women and minorities."  X"-  l 10.xThe subject transactions propose to add another FM station to the existing AMFMTV  xcombination. Emmis contends that common ownership of WWVR(FM), in addition to  XB$- xWTHI(AM)/FM/TV, will create further efficiencies of approximately $300,000 per year.  xNSpecifically, Emmis states that the stations would consolidate personnel responsible for  xmanagement, administration, data processing, news, public affairs, and engineering for an  xyestimated annual savings of $60,000. The elimination of duplicate equipment and parts and the"&,l(l(,,'"  xconsolidation of technical maintenance resources for the three radio stations is expected to yield  xzannual savings of about $10,000. According to Emmis, studio consolidation would result in  xannual savings of approximately $30,000 for utilities, office maintenance and equipment. The  xjstations would share expenses for professional services including accountants, attorneys, and  x-insurance services for an annual savings of $5,000. Emmis also states that group advertising and audience research discounts would result in annual savings of $195,000.  X -   11.xEmmis proposes to use these savings to improve service to the community. Emmis  x/anticipates adding a news operation to WWVR(FM), which it states would cost $100,000 if  xWWVR(FM) were a standalone station, but will be less expensive because WWVR(FM) would  xyshare resources with the television station's established news department. Emmis states that it  xwill use the television station's news and information resources to air newscasts and weather  x/updates on WWVR(FM) on a daily basis. Further, Emmis represents that its acquisition of  xKWWVR(FM) would permit the TV and radio stations to engage in crosspromotions. Such cross xpromotions, says Emmis, are particularly important for WWVR(FM) as it launches a new format  xand targets a different demographic, and will also allow WTHITV to more widely promote its  xLchildren's educational and informational programming. According to Emmis, all of the stations  x0would share in public service programming efforts and join in community public service  xprogramming targeted to a younger audience. Lastly, Emmis proposes a capital investment of  xapproximately $90,000 in WWVR(FM)'s facilities which will allow the station to operate more efficiently and provide a stronger signal in the Terre Haute radio market. x` `  X-  M 12.x  Types of Facilities . With respect to the technical facilities of the subject radio stations,  X- xEmmis reports that WWVR(FM) is a Class A station that operates at 3.3 kW ; WTHI(AM) is a  xjClass B station that operates on 1480 kHz and at 5 kW; and WTHIFM is a Class B station that  xoperates at 50 kW. As to the television station, Emmis states that WTHITV is a VHF television  xstation affiliated with the CBS network that operates on Channel 10 at 316 kW authorized power  XO-and 961 meters height above average terrain ("HAAT"). x  X -  N 13.x Other Media Outlets . Following consummation of the proposed transaction, Emmis  x=would own and operate 1 TV, 1 AM and 2 FM stations in the Terre Haute market. Emmis does not own other broadcast or media interests in this market.  X}<   14.x Economic Status.   Emmis reports that none  of the broadcast stations at issue faces  xfinancial distress. However, Emmis maintains that WWVR(FM) and WTHI(AM) hold a weak  xposition in the Terre Haute radio market. According to Emmis, WWVR(FM) garners little  x=market share, does not provide a competitive signal, has minimal night coverage and monaural  xLsound, and has a marginal operating budget, all of which Emmis maintains are indicative of the  xstation's deficient financial situation and ability to compete independently in the market. Emmis  xalso describes WTHI(AM) as a "barely breakeven operation" that is subsidized by WTHIFM and WTHITV. x  XC$-  15.x Competition and Diversity in the Market. Emmis asserts that two commercial  xtelevision stations (excluding WTHITV) and two noncommercial educational television stations  xkare licensed to communities in the Terre Haute DMA (ranked 138th), and that these four TV  xstations have four separate owners. Further, Emmis states that WTHI(AM) competes with four"&,l(l(,,'"  x-other AM stations, and WTHIFM and WWVR(FM) compete with five other commercial FM and  xsix noncommercial FM stations. Following the proposed transactions, says Emmis, the Terre  xHaute market will be served by 18 broadcast radio stations owned by 12 separate entities, not  xzincluding the stations under Emmis' ownership. Emmis maintains that in a market the size of Terre Haute, this level of diversity warrants grant of the requested waiver.  X.-  l16.xEmmis points out that a wide variety of nonbroadcast media are also available. It states  xjthat approximately 45 communities in the Terre Haute DMA receive cable service from 22 cable  xsystems operated by 10 separate owners, for a cable penetration of 61%. Additionally, states  x[Emmis, four daily newspapers, one weekly newspaper, two independently operated Multipoint  x=Distribution Services, and three independently operated Multichannel Multipoint Distribution  xiServices serve the Terre Haute DMA. Emmis also asserts that direct mail and outdoor advertising  X\ <compete with radio and television stations in the local Terre Haute advertising market.   X <x ,0Discussion ă  X -  17.x OnetoaMarket Waiver Standard. In evaluating a request for a permanent waiver of  xzthe onetoamarket rule, the Commission's goal "is to permit the public to benefit from such  xkefficiencies of operation as may be achieved through the use of common facilities and staff,  x[consistent with the maintenance of diversity and vigorous competition within the market areas  XF- xzinvolved." Second Report and Order Recon., 4 FCC Rcd at 6491. We conclude that Emmis'  xjshowing in support of a waiver of the onetoamarket rule meets our casebycase criteria, and  xthat a permanent waiver in this instance is consistent with the public interest and is not likely to unduly diminish diversity and competition in the Terre Haute market.  X-  >18.xEmmis demonstrates that common ownership and operation of WTHI(AM)/FM/TV creates  xefficiencies and cost savings which inure to the public benefit. Emmis represents that the  xstations' operations have been consolidated for more than 25 years, and that operating them  xseparately at the current level of service would cost an additional $544,000 annually. Moreover,  xwe are persuaded that common ownership and operation of the stations allows for more and better  xcoverage of local news, in that WTHITV makes its extensive news gathering resources  x>including a 32person news, weather and sports department available to the AM and FM  xstations. Under joint ownership, the radio stations provide significant local news and public  x=affairs programming to the Terre Haute community, including a simulcast of WTHITV's 6 p.m.  x=newscast, a daily twohour time slot devoted to local community issues, and coverage of local  xysports teams. Emmis states that it intends to continue to operate the stations so as to maintain  xthese efficiencies and resulting public service benefits. Likewise, with respect to the acquisition  xof WWVR(FM), Emmis has shown that the addition of this FM station to the existing AMFM xTV combination will create efficiencies of approximately $300,000 annually which will be used  x.to enhance the station's technical facilities and programming. Like the radio stations involved  xin the original AMFMTV combination, WWVR(FM) will be better able to serve the Terre  xjHaute community by utilizing the television station's news and information resources. We also  xznote with approval Emmis' commitment to continue to recruit women and minorities through television and radio internships and outreach to local colleges.  X&-  19.xOur independent analysis verifies the existence of competing facilities in the market which"&,l(l(,,'"  X- xKare generally technically comparable or superior to the proposed combination. The Commission's  x"concern with the types of facilities merging under the authority of a onetoamarket waiver  xreflects our interest in assessing the potential impact of a proposed combination of stations in a  xgiven market in order that we might predict and avoid any significant adverse effect on diversity  Xt- x.or competition from too powerful a combination." Great American Television and Radio Co.,  XS- xInc., 4 FCC Rcd 6347, 634950 (1989) . According to our review, WTHIFM a Class B  xstation with 50 kW authorized power and 149 meters HAAT faces competition from at least  X- xMone other comparable FM stations in the Terre Haute TV Metro Market.Ǚ yO-  zԍxThere is one other Class B station operating at 50 kW, at 152 meters HAAT. The remaining two Class B stations have authorized power of 28 kW and 27.5 kW, with 201 and 204 meters HAAT, respectively. We also find that  xLWWVR(FM) a Class A FM station operating at 3.3 kW at 90 meters HAAT competes with  x=at least three Class B stations and two Class A FM stations in the TV Metro Market which are  X- x-technically superior. Ǚ yOw -  zԍxOne of these FM stations operates at 4.1 kW, 121 meters HAAT; the other operates at 6 kW, 91 meters HAAT. WTHI(AM), which operates at 5 kW daytime/1kW nighttime, is one of four  X - xClass B AM stations in the TV Metro Market. xǙ yO-  MԍxAs to the other three Class B AM stations in the TV Metro Market, one operates at .5 kW day/.075 kW night, one at .25 kW fulltime, and one at .5 kW (day only). Additionally, there is one Class C AM station  xin the TV Metro Market, with 1 kW authorized power. Our independent analysis also shows that  xin addition to WTHITV, a VHF station affiliated with CBS, there is one other VHF station, an  xNBC affiliate, licensed to the Terre Haute DMA. The market is also served by one commercial  xUHF station affiliated with FOX, and two noncommercial UHF stations affiliated with PBS.  xGiven the existence of these competing television and radio facilities in the market, the proposed combination does not present issues of market dominance inconsistent with the public interest.  Xk-  \20.xAs to the financial condition of the stations, there is no showing that the subject television  xand radio stations are financially compromised. However, the Commission has held that "not all  X%- xof the [five] factors mentioned will be relevant in every case" (Second Report and Order, 4 FCC  xjRcd at 6491), and has granted onetoamarket waivers in the absence of a showing of financial  X- xdistress. See, e.g., S.E. Licensee G.P., 11 FCC Rcd 16728, 16734 (1996); Stockholders of Infinity  X-Broadcasting, 12 FCC Rcd 5012, 5052 (1996).  X|-  21.xFinally, we have carefully considered whether the proposed combination would create  XY- x"undue concentration of ownership or control in the Terre Haute market.YǙ yO -  .ԍxAs to the market definition within which to count the number of broadcast stations in the context of a one x toamarket waiver, the Commission considers "the relevant TV metro market for radio stations and the relevant ADI  {Oj"- xw[Arbitron Area of Dominant Influence] TV market for TV stations." Second Report and Order, 4 FCC Rcd at 1760  xZn. 101. However, since Arbitron no longer compiles ADI data, we now accept showings using the Nielsen DMA.  {O#- xSee Media/Communications Partners L.P., 10 FCC Rcd 8116 n. 3 (1995). See also Further Notice of Proposed  {O$-Rulemaking, 10 FCC Rcd 3524, 3529 n. 59 (1995). Following  xZconsummation of the proposed transaction, Emmis will hold the licenses of one television station,  xone AM station and two FM stations in the Terre Haute market, and will not have any other  xmedia interests in the market. We have independently verified that, following consummation of"N ,l(l(,,"  xthe subject transactions, there will be five commercial AM stations, seven commercial FM  X- xystations, and six noncommercial educational radio stations in the TV Metro Market , licensed to  x[12 individual owners (including Emmis). Following consummation there will also be three UHF  xand two VHF television stations (including WTHITV), each of which is separately owned, in  xthe Terre Haute DMA. Taking into account the grandfathered WTHI(AM)/FM/TV combination,  XQ- xthere are currently 23 stations with 17 owners in the market. After the proposed transactions,  X.- xthese 23 stations would be operated by 16 separate broadcast owners. .Ǚ yO-ԍxWe are not aware of any Local Marketing Agreements (LMAs) in the relevant market. A wide variety of other  xmedia outlets are available in the market as well, including two Multipoint Distribution Services,  xthree Multichannel Multipoint Distribution Services, four daily newspapers, and cable television  X- xreaching 62% of the households in the market.  w XǙ {O -ԍxSee Television & Cable Factbook, Cable Vol. No. 66, F11 (1998).w This level of diversity is consistent with the  X- x1level we have approved in previous waiver requests. See e.g., Twenty First Century  X - x{Broadcasting, Inc., 12 FCC Rcd 6974 (1997) (12 voices in the 140th DMA with 73% cable  X` - xpenetration rate and nine local newspapers); Pennino Broadcasting Corp., 12 FCC Rcd 10752  xM(1997) (12 voices in the 164th ranked market with 90% cable penetration rate and three daily newspapers).  X -  22.xRegarding economic concentration and competition, our independent analysis indicates that  xthe WTHI(AM)/FM/TV combination which has existed for more than 25 years garners a  xcombined television and radio advertising share of 48.0%. This figure, while significant, is  xmainly due to the fact that the television station is the leader in television advertising revenues  xfor the market, receiving an advertising revenue share of 52.2%. We have previously approved  xjone case in which the level of economic concentration in the television market was at least this  X- xhigh. See Pennino Broadcasting Corp., 12 FCC Rcd 10752 (1997) (television station garnered  xy55.3% of television advertising revenue). It is also notable that the acquisition of WWVR(FM)  xwould result in only a 0.4% gain in total radio and TV advertising revenues, and would bring the  X-combined television and radio advertising share to 48.4%. Ǚ yO8-  ԍxAdvertising revenue data is based on 1997 revenue figures and is obtained from BIA Publications, Inc.'s Radio Master Access and Television Master Access databases.  XW-  Q23.xOverall, Emmis has demonstrated that continuation of the WTHI(AM)/FM/TV  xNcombination and the addition of WWVR(FM) to the combination will result in economic  x]efficiencies and cost savings which will be used to maintain and enhance public interest  xprogramming. Furthermore, we find that the number of independent broadcast voices and the  xKexistence of competing facilities in the market ensure continued competition. While the proposed  x<combination garners a combined television and radio advertising share of 48.4% a figure higher  xthan those in previously approved onetoamarket waiver requests we do not believe that the  x0acquisition of WWVR(FM) will have have an additional significant impact on economic  xconcentration in the market. WTHI(AM)/FM and WTHITV have been commonly owned for  xmany years, and the addition of WWVR(FM) garners less than half of one percent of the  xmarket's advertising dollars. Based on the totality of the circumstances, we conclude that grant" B ,l(l(,, "  X- xof a permanent onetoamarket waiver Ǚ yOy-  ԍxWe note that the pending television ownership proceeding, in which the Commission is considering  {OA- xeliminating or modifying the onetoamarket rule, does not preclude our grant of a permanent waiver. Second  {O - xZFurther Notice of Proposed Rulemaking, 11 FCC Rcd 21655, 21689 and n. 130 (1996) . In that Second Further  {O- xNotice, the Commission contemplated approval of permanent, unconditional waivers to allow televisionradio  xcombinations that do not propose common ownership of stations exceeding those permitted prior to the adoption of  x,the Telecommunications Act of 1996 (i.e., one TV, two AM and two FM stations), as long as the requested waivers  {O/- xhare clearly consistent with Commission precedent. Id. Emmis' proposed combination of one television station, one  {O- xAM station and two FM stations is consistent with that standard. See, e.g., Alabama Universal Corporation, 12 FCC Rcd 7556 (1997). would serve the public interest without undue effect on competition or diversity in the Terre Haute market.  X- Ordering Clauses ă  XQ-  24.xHaving determined that the applicants are qualified in all respects, we find that grant of the abovecaptioned applications will serve the public interest, convenience and necessity.  X-  25.xAccordingly, IT IS ORDERED, That the applications to assign the license of station  x[WWVR(FM), West Terre Haute, Indiana, from United Broadcasting Company, Inc. to Wabash  xValley Broadcasting Corp. (File No. BALH971023EF), IS GRANTED, subject to the condition  xthat concurrently with consummation of the subject transaction, the assignment of the license of  x[stations WTHITV, WTHI(AM) and WTHIFM, Terre Haute, Indiana, and WWVR(FM), West Terre Haute, Indiana (File Nos. BAL/BALH/BALCT980403IIIL), is also consummated.  X -  26.xIT IS FURTHER ORDERED, That the request for permanent waiver of the onetoa xmarket rule, 47 C.F.R.  73.3555(c), to permit common ownership of stations WWVR(FM), West  xTerre Haute, Indiana; WTHI(AM) and WTHIFM, Terre Haute, Indiana, and WTHITV, Terre Haute, Indiana, IS GRANTED.  XD-  27.xIT IS FURTHER ORDERED, That the applications to assign the license of stations  xzWTHITV, WTHI(AM) and WTHIFM, Terre Haute, Indiana, and WWVR(FM), West Terre  xHaute, Indiana, from Wabash Valley Broadcasting Corporation to whollyowned subsidiaries of  xEmmis Broadcasting Corporation (File Nos. BAL/BALH/BALCT980403IIIL), ARE  X-GRANTED.#,5\  P6G;(u,P#  X-  #Xj\  P6G;xXP#28. xIT IS FURTHER ORDERED, That the application to assign the license of station  xWFTX(TV), Cape Coral, Florida, from Wabash Valley Broadcasting Corporation to Emmis  x@Television License Corporation of Cape Coral a whollyowned subsidiaries of Emmis Broadcasting Corporation (File No. BALCT980403IH), IS GRANTED.  Xd-x` `  hh FEDERAL COMMUNICATIONS COMMISSION x` `  hhMagalie Roman Salas x` `  hhSecretary"  ,l(l(,,Y"  X-X` hp x (#%'0*,.8135@8: