~70Federal Communicatio'ff/r:COmmission Reports Construction Permit Issuance of Translator FM Section 74.1232(d)(1) of the Rules does not proscribe the authorization of a commercial FM translator to the licensee of the primary station proposing to provide service outside that station's 1 mV1m contour and within the 1 mV1m contour of an unbuilt, non-operational commercial FM broadcast station assigned to a different principal community. -Ber-Tec B/cing, Inc. FCC 85-361 BEFORE THE FEDERAL COMMUNICATIONS COMMISSION WASHINGTON, D.C. 20554 In re Application of BER-TEe Broadcasting, Inc. Gold Beach, Oregon KURY Radio, Inc. Gold Beach, Oregon For Construction Permits for New FM Trans lator Stations File Nos. BPFT-800909IQ BPFT-800421IC MEMORANDUM OPINION AND ORDER Adopted: July 9, 1985; Released: July 16, 1985 By THE COMMISSION: COMMISSIONER RIVERA NOT PARTICIPATING. 1. The Commission has before it for consideration: (a) the above captioned applications; (b) two Petitions to Deny by James N. Hoff, filed November 25, 1980; (c) staff letters, dated January 19, and February 24, 1984, denying the petitions to deny and granting these applications; (d) Petitions for Reconsideration by Chambers Broadcasting (Chambers), filed February 21, and March 23, 1984; (e) two staff letters dated June 6, 1984; denying the petitions for reconsideration; (f) two Applications for Review by Chambers, filed July 16, 1984; (g) an Opposition to Application for Review by BER-TEC Broadcasting, Inc., (BER-TEC) filed July 23, 1984; and (h) related pleadings and correspondence. " 101 F.e.e. 2d ,;'., Ber-Tec B/cing, Inc. 571 2. KURY Radio, Inc. (KURY Radio) and BER-TEC each filed an application for a new station-owned commercial FM translator to serve Gold Beach, Oregon, by rebroadcasting, respectively, the signals of their FM Broadcast Stations, KURY(FM), Brookings, Oregon, and KCRE-FM, Crescent City, California. On November 25, 1980, James N. Hoff (Hoff), who 'at that time had pending an application for a new first local commercial FM broadcast,station at Gold Beach, Oregon (File No. BPH· 800723AH), filed against each translator application a petition to deny alleging that its proposal violated Section 74.1232(d)(1) of the Commission Rules.! Hoffs FM broadcast station application was granted on January 27, 1981, and assigned the call sign KGBR(FM). Station KGBR(FM) still was not operational on January 19, and February 24, 1984, the dates of the staff's actions disposing of Hoff's petitions to deny these translator applications. 2 The staff concluded that the proscription in Section 74.1232(d)(1) of the Rules does not apply where the proposed station owned FM translator is intended to provide reception within the predicted 1 mV1m contour of an unbuilt, non-operational commercial FM broadcast station. Thus, upon a finding that although Gold Beach, Oregon is outside the respective 1 mV1m contours of Stations KURY(FM) and KCRE-FM, it is not within the 1 mV1m contour of any operational commercial FM broadcast station, Hoff's petitions to deny were denied and the captioned translator applications were granted. 3. The construction permit for Station KGBR(FM) was assigned from Hoff to Chambers on February 8, 1983. Chambers petitioned for reconsid eration of the staff's actions, alleging that although Station KGBR(FM) was not operational, the grant of these translator applications neverthe less contravened Section 74.1232(d)(1) of the Rules. 3 Reconsideration was denied on the ground that Chambers neither presented any new substan tial or persuasive arguments which were not previously considered, nor I Section 74.1232(d) provides that "An authorization for a commercial FM translator which is intended to provide reception to places which are beyond the predicted 1 mV1m field strength contour of the primary station and within the predicted 1 mV1m field field strength contour of another commercial FM radio broadcast station assigned to a different principal community will not be granted to: (1) The licensee or permittee of an FM broadcast station.... " [Emphasis added.] 2 Station KGBR(FM) is still not operational. A sixth request for extension of time to construct the station was filed May 15, 1985 (BMPH-850515IA). 3 Since Station KGBR(FM) would compete for audience in Gold Beach, Oregon with these translator stations, and could suffer economic injury to the extent that audience is diverted, Chambers, as Hoffs successor-in-interest, had standing to petition for reconsid eration of the staffs actions granting these applications, and has standing to file these applications for review. See Federal Communications Commission v. Sanders Broth ers Radio Station, 309 U.S. 470 (1940); Sections 1.106 and 1.115 of the Commission's Rules. 101 F.C.C. 2d 572 FederalCommu!l!~atipnsCommission Reports demonstrated any errors in the analysis of the facts or the "authority supporting the staff's actions. See Section 1.106(a)(1) of the Rules. 4. In its application for review, Chambers requests consideration of whether the protection afforded licensees of commercial FM broadcast stations in Section 74.1232(d)(1) of our Rules extends to permittees of commercial FM stations which are authorized but not operational prior to the authorization of a station-owned FM translator. Chambers asserts that due to the size of the GoldBeac~market, the intrusion of even one of these translators, which Chambers claims do not place 1 mV1m signals over the entire community, makes untenable the competitive position of Station KGBR(FM).4 Chambers alleges that the authorization of these translators is contrary to the Commission's FM allocation policy of bringing full local aural service to all communities, and that there is no rational basis for not affording the permittee of a commercial FM station the same right to protection from interference to its proposed contours from a later-authorized FM translator as is accorded licensees. 5 Chambers takes the position that the termination provision in Section 74.1232(h) of our Rules does not adequately guard the viability of the initiation of a first local FM station against economic harm by an FM translator. 6 Finally, Chambers asserts that the -authorization of these translators thwarts the Commission's public interest policy of obligating full service station licensees to serve their communities' needs and, instead, encour ages regional concentration of control. 5. At the outset, we affirm that the term "FM radio broadcast station" in Section 74.1232(d) of our Rules,7 encompasses only operational, and not unbuilt, stations. Accordingly, Section 74.1232(d)(1) proscribes the autho rization of a commercial FM translator to the proposed primary station licensee or permittee only where the translator is intended to provide reception beyond the primary station's predicted 1 mV1m contour and within the predicted 1 mV1m contour of an operational commercial FM 4 We note that the Commission's Rules, 47 U.S.C. Sections 74.1201-.1284, do not prescribe minimum coverage requirements for FM translators, and that the extent to which these translators actually cover Gold Beach, Oregon is irrelevant to the issue herein. 5 We note that Chambers claims, without evidentiary support, that there would be interference to Station KGBR(FM)'s signal from these translators pending their termination. Allegations concerning interference to a primary signal are irrelevant to the eligibility of a translator applicant under Section 74.1232(d) of the Rules. See Section 74.1203 of the Rules. 6 Section 74.1232(h) provides that "Any authorization for an FM translator station issued to an applicant described in paragraph (d) of this section will be issued subject to the condition that it may be terminated at any time, upon not less than 60 days written notice, where the circumstances in the community or area served are so altered as to have prohibited grant of the application had such circumstances existed at the time of its filing." 7 See footnote one, emphasis added. 101 F.e.e. 2d Ber-Tec Bleing, Inc. 573 broadcast station assigned to a different principal community.s 6. Section 74.1232(d)(1) was incorporated into our FM translator rules in its current form at the time Part 74 was amended to include Subpart L. The underlying rationale for its inclusion was to prevent FM station licensees from using FM translators as a competitive means for extending their stations' service areas. Report and Order in Docket 17159, 20 RR 2d 1538, 1541 (1970). In recognition of the fact that FM translators are not being used primarily as "fill-in" devices or as means to provide service to unserved or underserved areas, we have twice explored amending Section 74.1232(d) in order to prevent unfair competition by distant commercial FM stations. In our Notice ofProposed Rulemaking in Docket 19918, 44 FCC 2d 794 (1974), we proposed to prohibit competitive expansion of an FM station's service area through either a licensee or non-licensee owned translator where the area to be served was within the predicted 1 mV1m contours of more than one FM station licensed to a community other than . that of the primary station. Our main concern was to balance the need to protect the viability of local FM stations with Congress' intent that there be competition in the business of broadcasting. Id. at 795. In 1978, we revised our proposal in Docket 19918 to limit primary stations to owning and supporting translators which serve areas only within their 1 mV1m contours, and to permit all other applicants to establish FM translators without restriction as to their intrusion into the predicted 1 mV1m contours of full service commercial FM stations. Memorandum Opinion and Order and Further Notice of Proposed Rulemaking in Docket 19918, 43 FR 14695, published April 7, 1978. 7. Consideration of this revised proposal was ultimately concluded last year. Upon review of the record, we determined that our present limitations on FM station-licensee translator ownership and control are adequate. Thus, we declined to amend Section 74.1232(d) and left the rule intact in its current and original form. Amendment ofPart 7.4, Subpart L ofthe Commission's Rules Pertaining to FMRadio Broadcast Transla tor Stations, 98 FCC 2d 35 (1984). Chambers argues, however, that our policy limiting the protection in Section 74.1232(d)(1) only to licensees of operational commercial FM broadcast stations will result in competitive economic clashes between first-in-time station-owned translators and subsequent first local FM service stations that will adversely affect the 8 We note that in its reply to BER-TEC's opposition to application for review, Chambers argues that "the restrictions of the rule [Section 74.1232(d)(1)] apply wherever predicted service exists, not only where an FM station is in actual operation." [Emphasis in original]. The word "predicted" as used in Section 74.l232(d) is a technical term of art referring to an operating FM station's theoretically predicted contours calculated on the basis of its authorized power and antenna height, as opposed to its actual field strength measurements. The language does not refer to a distinction between an operational and a non-operational station. 101 F.C.C. 2d 574 Federal Communications Commission Reports viability of the latter stations. Weare unpersuaded by this argument. Subpart (h) of Section 74.1232 was proposed in Docket 19918 to provide for retroactive application of subpart (d) "where the circumstances in the community or area served are so altered as to have prohibited grant of the application had such circumstances existed at the time of its filing." In the Notice proposing Docket 19918, we set forth an example of a possible future application of subpart (h) which clarifies the applicability of Section 74.1232(d)(1). We referred to a situation where, subsequent to the authorization of a station-owned FM translator serving an area beyond the primary station's predicted 1 mV1m contour more than one FM station commen"ces operation in the latter community.9 Subpart (h) may be invoked when a full service station licensed to the community being served by a translator begins operation. Therefore, the unbuilt, non operational status of an FM station does not prohibit authorization of a translator to an applicant described in subpart (d). . 8. The explication of this policy in Peninsula Communications, Inc., 50 RR 2d 1135, 1136 (1982), demonstrates the interrelationship of subparts (d) and (h) of Section 74.1232. An FM station petitioned to terminate the operation of an FM translator owned by the licensee of the FM station being rebroadcast beyond its 1 mV1m contour. We stated that authoriza tion of the translator issued to an applicant described in Section 74.1232(d) of the Rules "came within the purview of the termination provision of Section 74.1232(h) as soon as ... [the full service FM broadcast station licensed to the community being served by the translator] comme1lced operation." [Emphasis added]. We explained that "Section 74.1232(h) of the rules is permissive in nature and, therefore allows, but does not require, termination of a translator upon a proper showing that the competitive situation in a market is such that the translator is likely to spell the demise of a local full service FM station," and held that "the station's current status as an operating station is some evidence of its ability to survive." Id. at 1136-1137. 9. Chambers argues that the burden of tbe 6o-day termination provision notice period, and the costs incurred in petitioning for termina tion of these translators after Station KGBR(FM) commences operation, would be sufficiently detrimental as to effectively preclude the initiation of this local service. However, applicants for new broadcast stations, as well as assignors of construction permits for unbuilt stations, certify that they have available sufficient net liquid assets to construct and operate the facility for three months without revenue. The additional costs of petitioning for termination of a translator are unlikely to impose a 9 The reference to "more than one" FM station in this example parallels the proposal in Docket 19918 (discussed above) to amend Section 74.1232(d). 101 F.e.e. 2d Ber-Tec Blcing, Inc. 575 financial hardship sufficient to threaten the viability of a new station even in a small market. 10. Additionally, Chambers alleges that our policy "runs contrary to the theory of preference of a primary signal to a community over a secondary signaL" It cities Harriscope Broadcasting Corporation, 38 FCC 2d 328 (1972), for the proposition that it is within the Commission's discretion to review the impact of a translator's operation on the operation of a full service station, and thus there is no assurance in the present case that the protection in Section 74.1232(d)(I) will ultimately be accorded Station KGBR(FM).10 However, review of a petition for termination is not permissive. Rather, Harriscope Broadcasting and Peninsula Communi cations both make clear that upon review of changed circumstances, which, had they existed at the time the translator application was filed would have prohibited a grant, the Commission may determine that termination of the translator is not in the public interest. In Harriscope Broadcasting we concluded that the viability of the new local UHF-TV station could be ensured by protecting its programs against duplication by the TV translators serving the same community, and that the public interest in the availability of a wide choice of programs warranted maintaining the translators' authorizations. Thus, where translator ser vice in a community preceeds the initiation of a first local FM service, there is an opportunity to assess whether there is a detrimental impact by the translator on the viability of the newcomer FM facility, or whether these stations can competitively co-exist, making available to the public a wider diversity of voices. 11. It is clear that the circumstances of this case do not activate the protection of Section 74.1232(d)(I). Not only was Station KGBR(FM) not operational at the time these translator applications were filed, but contrary to Chambers' representation in its applications for review, the construction permit for that station had not even been granted. Station KGBR(FM) has been authorized since January, 1981, and to this date, remains unbuilt and non-operational. The public interest is best served by permitting FM translator service beyond these primary stations' 1 mV1m contours by the station licensees pending the eventual commencement of operations by Station KGBR(FM). 12. In this regard, and in conclusion, we are unpersuaded by Cham bers' argument that our policy for applying the proscription in Section 74.1232(d)(1) of our Rules eschews our policies against regional concentra tion of control. We note first that we recently repealed the regional concentration of control provisions of the multiple ownership rules. See 10 Harriscope Broadcasting involved the application of Section 74.732(f) of the Rules, which is the termination provision for TV translator stations. Section 74.1232(h) parallels Section 74.732(f). 101 F.e.e. 2d 576 Federal Communications Commission Reports Multiple Ownership (Regional Concentration of Control Provision), 96 FCC 2d 578, 55 RR 2d 1389 (1984). Secondly, Section 74.1232(b) specifically provides that FM translators do not count for purposes of our multiple ownership rules. We reiterate that we believe that our policy best serves the public interest in aural FM broadcast service, our policy best serves the public interest in aural FM broadcast service, and conclude that retroactive application of Section 74.1232(d)(1) via Section 74. 1232(h), where there is evidence of a detrimental impact by the translator on the new local FM facility, sufficiently guards against any threat of regional concentration of control or economic competition injurious to the public interest. 13. Accordingly, IT IS ORDERED, that the aforementioned Applica tions for Review by Chambers Broadcasting ARE HEREBY DENIED. FEDERAL COMMUNICATIONS COMMISSION WILLIAM J. TRICARICO, Secretary