*************************************************** NOTICE *************************************************** This document was converted from Word97 to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, itallic, underlining, etc. from the original document will not show up in this text version. Features of the orginal document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect, Word97, or Adobe Acrobat versions, if available. The path and name of the WordPerfect, Word97, and Acrobat files will be the same as the ASCII Text file except that they will end with the letters wp, doc, or pdf respectively, instead of the letters txt. ***************************************************** August 24, 1999 PRESS STATEMENT OF COMMISSIONER GLORIA TRISTANI Re: Mass Media Bureau's granting of applications to transfer radio licenses from Fuller-Jeffrey Broadcasting to Citadel Broadcasting in Portland, Maine. I have previously described how the Commission's current method of applying the local radio ownership caps is illogical and unreasonable. This is one of those cases, however, in which application of the Commission's approach appears to cross the line between being illogical and being unlawful. Congress provided in the Telecommunications Act of 1996 that: in a radio market with 45 or more commercial radio stations, a party may own, operate, or control up to 8 commercial radio stations, not more than 5 of which are in the same service (AM or FM). Thus, the plain language of the statute requires us to look at the same market -- i.e., to use the same definition of "market" -- when determining the number of radio stations in the market and when counting the number of stations that an entity owns, operates, or controls within that market. Here, it appears that whatever "market" is examined, Citadel would violate the statute. For instance, based on a signal contour overlap approach, there are 45 stations in Market 3 for purposes of establishing the statutory cap. Of those 45 stations, Citadel will own 8 FM stations -- 3 more than permitted. Similarly, in the 22-station Portland Arbitron market (the definition of market actually used in the economic marketplace), Citadel will own 6 FM stations -- 2 more than permitted under the statute. The only way this deal can be approved is through the definitional shell game to which I have objected repeatedly. Although Citadel will own 8 FM stations in Market 3, the Commission does not count all of those stations against the 5-station limit. We only count those stations in Market 3 with mutually overlapping signal contours against the cap. But then we do not deduct those stations without mutually overlapping signal contours from the count of the overall number of stations in the market, which could reduce the cap itself. So, accordian-like, we expand and contract the size of the "market" to suit our purposes. Because this regulatory sleight-of-hand is at odds with the statute, my initial view is that I disagree with the Bureau's decision to grant the proposed license transfer.