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

In the Matter of:                       )    
                                )
NEPSK, Inc.                     )       CSR-5370-X
                                )       BPCT-961126KH
Petition for Waiver of the Cross-)
ownership Rules                 )


                  MEMORANDUM OPINION AND ORDER

    Adopted:  April 16, 1999            Released:  April 21, 1999  

By the Chief, Cable Services Bureau:

                   INTRODUCTION AND BACKGROUND

     1.   In this proceeding, NEPSK, Inc., licensee of WAGM-TV, Presque Isle, Maine, is seeking a
permanent waiver of the broadcast/cable television cross-ownership rule, 47 C.F.R.  76.501(a), with respect
to three cable systems in which it has an attributable interest  located in Houlton; Patten/Island Falls; and
Oakfield, Maine. These systems serve the communities of Houlton, Hogdon, Patten, Island Falls, Oakfield,
and Smyrna, Maine.  Section 76.501(a) of the Commission's rules prohibits the common ownership and/or
control of a television station and collocated cable television system.  A cable system is considered collocated
if the relevant television station's Grade B contour overlaps the cable system at issue.  The cable communities
in question will be covered by WAGM-TV's Grade B contour when its pending facilities change application
is granted.  NEPSK's request for a waiver is unopposed.

                            DISCUSSION

     2.   On November 26, 1996, NEPSK filed an applications with the Mass Media Bureau requesting
a construction permit to change its antenna site and an asscociated waiver request with the Cable Services
Bureau to waive the Commission's cross ownership rules.  As a result of its proposed modification, WAGM-
TV's grade B service area would include the subject communities. In its original decision, the Cable Services
Bureau concluded it would be premature to grant the requested waiver in full and indicated that it would decide
the matter when WAGM-TV's license modification application was ripe for grant.  The Cable Services Bureau
at that time, however, did grant WAGM-TV a waiver to acquire one system that was in its original Grade B
contour.   WAGM-TV's facilities change application is now ripe for grant.  

     3.   In support of its waiver request, NEPSK states that WAGM-TV is the only commercial
television station in Presque Isle, Maine, a Designated Market Area ("DMA"). WAGM-TV states that should
its waiver be granted, the relevant cable systems would only serve a total of only 2,695 subscribers.  NEPSK
also states that there are 56,812 people within the predicted Grade B contour of WAGM-TV.  Thus, WAGM-
TV maintains that the 2,695 subscribers in question represent only a de minimis portion of the population
within WAGM-TV's market and Grade B contour.

     4.   NEPSK points out that there is only one United States broadcast station serving the Presque
Island area, in addition to WAGM-TV, and that is WMEM-TV, a non-commercial station.  NEPSK contends
that there is no other United States television station in the area which could be competitively affected by
NEPSK's cross-ownership.  Nevertheless, NEPSK asserts that its cable systems will carry any new station that
may, in the future, operate in the Presque Isle DMA.

                            CONCLUSION

     5.   Based on the record before us, we believe that grant of the requested waiver is appropriate
based on the small numbers of subscribers involved and the presence of no other commercial television station
located in WAGM-TV's market place.  Consequently, for the reasons described above, we conclude that
granting a permanent waiver of the broadcast/cable television cross-ownership rule to NEPSK with respect to
its interest in the Houlton, Patten/Island Falls, and Oakfield cable systems would serve the public interest.  

                         ORDERING CLAUSE

     6.   Accordingly, IT IS ORDERED that the request for waiver filed February 2, 1999 in CSR-
5370-X, IS GRANTED to the extent indicated above.

     7.   This action is taken pursuant to authority delegated by Section 0.321 of the Commission's
Rules, 47 C.F.R.  0.321.

                         FEDERAL COMMUNICATIONS COMMISSION



                         Deborah A. Lathen
                         Chief, Cable Services Bureau