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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In re Applications of ) ) NEWCITY COMMUNICATIONS, INC. ) (TRANSFEROR) ) ) and ) ) COX RADIO, INC. ) (TRANSFEREE) ) ) For transfer of control of the licensee of:) ) WODL(FM), Birmingham, Alabama ) File Nos. BTCH - 960725GS WZZK(AM), Birmingham, Alabama ) BTC - 960725GI WZZK-FM, Birmingham, Alabama ) BTCH - 960725GJ WEZN(FM), Bridgeport, Connecticut) BTCH - 960725GG WDBO(AM), Orlando, Florida ) BTC - 960725GM WWKA(FM), Orlando, Florida ) BTCH - 960725GN WZKD(AM), Orlando, Florida ) BTC - 960725GW WCFB(FM), Daytona Beach, Florida) BTCH - 960725GX WJZF(FM), La Grange, Georgia ) BTCH - 960725GH WBBS(FM), Fulton, New York ) BTCH - 960725GT WSYR(AM), Syracuse, New York ) BTC - 960725GO WYYY(FM), Syracuse, New York ) BTCH - 960725GP KRMG(AM), Tulsa, Oklahoma ) BTC - 960725GK KWEN(FM), Tulsa, Oklahoma ) BTCH - 960725GL KJSR(FM), Tulsa, Oklahoma ) BTCH - 960725GV KKYX(AM), San Antonio, Texas ) BTC - 960725GQ KCYY(FM), San Antonio, Texas ) BTCH - 960725GR KCJZ(FM), Terrell Hills, Texas ) BTCH - 960725GU K237AS, San Antonio, Texas ) BTCFT - 960725TW MEMORANDUM OPINION AND ORDER Adopted: March 24, 1997 Released: March 26, 1997 By the Commission: Commissioners Quello and Chong concurring and issuing separate statements at a later date; Commissioner Ness issuing a statement at a later date. 1. The Commission has under consideration: (1) the above-captioned applications to transfer control of NewCity Communications, Inc. ("NewCity"), the licensee of 18 radio stations and one FM translator station, to Cox Radio, Inc. ("Cox Radio"), a subsidiary of Cox Enterprises, Inc. ("Cox"); (2) requests by Cox for a permanent waiver of the one-to-a-market rule in Orlando and for temporary waivers of the one-to-a-market rule and the daily newspaper cross-ownership rule in Atlanta; and (3) a Petition to Hold Applications in Abeyance filed by Press Broadcasting Co., Inc. ("Press") on September 19, 1996. The petition solely addresses Cox Radio's proposed acquisition of the Orlando stations and the Daytona Beach station. SUMMARY 2. Orlando/Daytona Beach. As a result of this transaction and our recent action granting consent to allow Cox to acquire three Orlando stations from Infinity Holdings Corp. of Orlando, Cox will ultimately control six radio stations in Orlando and one in Daytona Beach, the principal community contours of which all overlap. Cox has submitted a showing to demonstrate its compliance in the Orlando-Daytona Beach-Melbourne DMA with the numerical station limits of our local radio ownership rules. 3. Cox, through a subsidiary, is the licensee of VHF television station WFTV (ABC, Channel 9), Orlando, Florida, a station whose Grade A contour encompasses Orlando and Daytona Beach. Because Cox Radio proposes to be the licensee of six Orlando radio stations and one Daytona Beach radio station as a result of both the instant transaction and our prior decision in Infinity Holdings, Cox Radio requests a permanent waiver of the Commission's one-to-a-market rule to permit common ownership by Cox of WFTV and the seven radio stations. In addition to WFTV, Cox owns a non-attributable 47.5% voting stock interest in News-Journal Corp., which publishes the Daytona Beach News-Journal, a daily newspaper, in Daytona Beach. Cox also owns Cox Communications of Greater Ocala, Inc., a cable system serving Ocala, Florida, which is located in the Orlando-Daytona Beach-Melbourne Designated Market Area (DMA). In addition, Cox has entered into a local marketing agreement (LMA) with the permittee of UHF television station WZWY (independent, Channel 27), Orlando, which is an unbuilt facility. 4. Press objects to Cox's ownership interests in the totality of media outlets contemplated in Cox's waiver showing, including cable, newspaper, television and seven radio stations in the Orlando DMA. Press alleges specifically that the television and radio facilities that Cox is proposing to co-own are dominant in the market. Press requests that the Commission refrain from acting upon the waiver request and the seven applications relating to radio stations that Cox Radio would own in Orlando/Daytona Beach until the Commission has had a chance to complete pending rulemakings that address issues such as the television duopoly rule and the one-to-a-market rule. Press also objects to certain aspects of Cox's waiver showing. Specifically, Press challenges Cox's inclusion of discounts on office supplies as cost savings attributable to combined ownership, and Press asserts that Cox's claimed savings related to personnel are contrary to Cox's other claims that it anticipates enhancing its ability to promote minority and female employment, as well as programming diversity. Press also challenges Cox's inclusion as a public interest benefit its proposal to upgrade the facilities of WHOO(AM) so as to enable the station to operate within its licensed parameters. 5. For the reasons set forth below, we find that Press has failed to raise a substantial and material question of fact that would preclude grant of the transfer of control applications and that grant of temporary conditional waivers to facilitate the transaction is appropriate. Therefore, we will deny the informal objection filed by Press. We will also deny Cox's request for a permanent waiver, but will grant a temporary conditional one-to-a-market waiver in Orlando subject to the outcome in our ongoing rulemaking proceedings involving television ownership and the attribution of broadcast interests. See S.E. Licensee G.P., FCC 96-464 (released November 27, 1996) (granting conditional, temporary waiver of one-to-a-market rule pending outcome of television ownership and attribution proceedings where waiver request involved common ownership of a TV station, seven radio stations and the presence of a TV LMA); Shareholders of Citicasters, Inc., FCC 96-380 (released September 17, 1996) (granting temporary waivers of one-to-a-market rule pending outcome of television ownership proceeding where waiver requests involved new local radio ownership limits). As in S.E. Licensee G.P., our decision here in no way prejudges the issues with respect to LMAs in our ownership and attribution proceedings. See S.E. Licensee G.P., para. 12. After analyzing Cox's 47.5% ownership interest in the Daytona Beach News-Journal, we will also grant the Orlando and Daytona Beach transfer of control applications conditioned on the outcome of our attribution rulemaking. These actions will allow the parties to go forward with the proposed transfer of control, while at the same time ensuring that Cox's ownership interests are subject to the same limitations as other group owners as a result of our pending television ownership and broadcast attribution proceedings. 6. Atlanta. Cox has submitted a showing to demonstrate its compliance in the Atlanta market with the numerical station limits of our radio ownership rules. Cox's proposed ownership of one additional FM station would give Cox attributable interests in a total of 2 FM and 2 AM radio stations in Atlanta. Cox is the licensee of VHF television station WSB-TV (ABC, Channel 2) and WSB-AM-FM in Atlanta, and publishes the Atlanta Journal and the Atlanta Constitution, two daily newspapers. Cox also provides programming to WCNN(AM), North Atlanta, Georgia pursuant to an attributable LMA. By the above-captioned transfer of control application, Cox seeks Commission approval to acquire WJZF(FM), La Grange, Georgia. Cox currently provides programming to WJZF pursuant to an attributable LMA. Because WJZF's 1 mV/m contour encompasses the City of Atlanta, which is the community of license of WSB-TV, Cox requests a temporary waiver of the one-to-a-market rule to permit common ownership of WJZF and WSB-TV. Because Atlanta is also the community in which the Atlanta Journal and the Atlanta Constitution are published, Cox requests a temporary waiver of the daily newspaper/radio cross-ownership rule. Cox requests waivers for either 18 months or until such time as the Commission resolves its pending proceedings relating to the one-to-a-market rule and its radio-newspaper cross-ownership waiver policies, whichever is later. As requested, and in keeping with past practice, we will grant waivers of the one-to-a-market rule and the daily newspaper cross-ownership rule during the pendency of and subject to the outcome in our ongoing proceedings involving television ownership and waiver of the radio-newspaper cross- ownership rule. This action is based upon our finding that the temporary nature of the ownership combination permitted by grant of the waivers will not unduly affect diversity and competition in Atlanta, and will permit the proposed Cox/NewCity merger to go forward. 7. Local Radio Ownership. In Orlando, Cox proposes to own, operate, or control four FM stations and three AM stations. Staff analysis indicates that the seven radio stations combined garner 32% of radio advertising revenues in the market. In Atlanta, Cox proposes to own/broker, operate, or control two FM stations and two AM stations. Staff analysis indicates that the four Cox radio stations combined will garner 17% of radio advertising revenues in the market. With respect to other markets in which Cox will control more than one radio station in the same service, Cox has made the requisite showings to demonstrate compliance with the numerical limitations of our local radio ownership rules, and our own review of the combinations involved, as set forth in paragraphs 58- 65, reveals nothing which should bar our consent. ORLANDO MARKET One-to-a-Market Waiver 8. Cox bases its request for a one-to-a-market waiver on the standards adopted in the Second Report and Order in MM Docket No. 87-7, 4 FCC Rcd 1741 ("Second Report and Order"), recon. granted in part, denied in part, 4 FCC Rcd 6489 (1989) ("Second Report and Order Recon."). Under these criteria, the Commission presumptively favors waiver requests involving station combinations serving the top 25 markets where there remain at least 30 separately owned, operated and controlled broadcast licensees or "voices" after the proposed combination is consummated ("top 25 market/30 voice standard"). The Commission also favors requests involving "failed" broadcast stations, that is, stations that have not been operating for a substantial period of time, e.g., four months, or that are involved in bankruptcy proceedings. See 47 C.F.R. Section 73.3555 note 7. Waiver requests not eligible for consideration under either the "top 25 market/30 voice standard" or the "failed" station standard are evaluated under the more rigorous case-by-case standard, as set forth in the Second Report and Order. 9. Although Orlando-Daytona Beach-Melbourne, Florida is the 22nd largest DMA, according to Nielsen, Cox's request must be evaluated under the case-by-case standard because the proposed transaction involves the common ownership of more than one same service radio station with a television station. Under the case-by-case standard, the Commission makes a public interest determination based upon the following criteria: (1) the potential public service benefits of common ownership of the facilities, such as the economies of scale, cost savings and programming and service benefits; (2) the types of facilities involved; (3) the number of media outlets owned by the applicant in the relevant market; (4) any financial difficulties involving the station(s); and (5) issues pertaining to the level of diversity and competition within the affected market. See Second Report and Order, 4 FCC Rcd at 1753-54. We also note that not all five of the factors mentioned are necessarily relevant in each case. See Second Report and Order Recon., 4 FCC Rcd at 6491. In support of its permanent waiver request, Cox submits a showing which addresses each of the five case-by-case factors. Waiver Showing 10. Benefits of Joint Operation. Cox asserts that numerous cost savings and operating efficiencies will result from its ownership of WFTV(TV) and the seven radio stations, and that public service benefits will be generated by that ownership. Cox estimates at least $423,000 in savings annually from common ownership of WFTV and the seven radio stations. Common ownership of WFTV and the radio stations will account for $187,000 in annual savings, while $236,000 is attributable to consolidation of radio station operations. Cox anticipates that it will be able to derive significant operational and cost efficiencies from centralizing the administration and certain sales, news and programming functions of the radio stations. In addition, Cox expects to obtain discounts on purchases ranging from major capital items to small supplies for WFTV and the radio stations, as well as group discounts on direct mail and outdoor advertising, promotional merchandise and audience research services. Cox states that WFTV and the radio stations will also be able to share technical expertise and to coordinate tower maintenance and inspections, as well as the use of consultants on issues such as tower load capacities. 11. Cox projects that in the area of programming, common ownership of WFTV and the radio stations will permit enhanced news coverage and public affairs programming at reduced costs. For example, WFTV would be in a position to simulcast major events such as town meetings, sporting events and political debates on one or more of the radio stations. Additionally, all stations would be able to share the product of radio and television news resources such as stringers, wire services and other news providers. Cox plans to use WFTV's weather services to broadcast weather reports on WWKA(FM), which Cox claims would save the radio station the expense of hiring its own meteorologist while at the same time greatly enhancing its coverage of weather problems in the Orlando area. Cox notes that WDBO has comprehensive facilities for tracking traffic and road conditions, which could be shared with other radio stations. 12. Common ownership of the television and radio stations will also permit enhanced non- broadcast public service activities, according to Cox. Such activities include promoting charitable efforts and disseminating consumer information to the wide range of audiences attracted to the radio stations' differing formats. In addition, Cox asserts that the proposed common ownership will have unique benefits in the area of children's television programming. Station WZKD(AM) (presently licensed to NewCity) is programmed exclusively for children, a format that Cox states is not commercially viable as a stand-alone format. Cox states that common ownership with WFTV would be critical to the station's continuation, and would permit development and joint purchases of additional educational children's radio and television programs. Cox plans to air a daily program guide on WZKD that would detail WFTV's scheduling of educational and informational children's programming, and conversely, WZKD plans to air a daily program guide on WFTV detailing its children's radio programs. Cox states that parents will thus be informed when such programming will be available for children to watch and listen to, which is consistent with the Commission's recently modified rules governing children's programming. See Policies and Rules Concerning Children's Television Programming, 11 FCC Rcd 10660 (1996). 13. Cox further asserts that common ownership will enable the stations to engage in joint recruitment of minority and female employees, and that common ownership could facilitate the development of a joint radio/television web site on the Internet. Cox claims that common ownership would also facilitate improvement of the technical facilities of AM station WHOO (presently licensed to Infinity) because of Cox's financial resources and technical expertise. Cox reports that the station's facilities are in need of substantial repairs and that WHOO is currently operating at variance from its authorized parameters pursuant to special temporary authority. 14. Other Media Outlets/Types of Facilities. Cox states that the facilities it proposes to own are comparable to many other stations in the Orlando market. VHF television station WFTV, an ABC affiliate, is one of 14 television stations (including three noncommercial stations) licensed to the Orlando-Daytona Beach-Melbourne DMA. The station operates on Channel 9, with 316 kW authorized power, from an antenna height above average terrain (HAAT) of 1570 feet. There are two other network VHF stations in this DMA, and Cox states that parts of the market receive Grade B service from five other commercial VHF stations. Cox has an LMA with the permittee of WZWY(TV), Orlando, which is an unbuilt facility. See supra note 5. 15. WWKA is a Class C FM station, operating at authorized power of 100 kW from an antenna 408 meters HAAT. WCFB is a Class C FM station, operating at authorized power of 100 kW from an antenna 448 meters HAAT. WHTQ is a Class C FM station, operating at authorized power of 100 kW from an antenna 487 meters HAAT. WMMO is a Class C2 FM station, operating at authorized power of 38 kW, from an antenna 134 meters HAAT. WHOO is a Class B AM station operating at authorized power of 50 kW. WDBO and WZKD are Class B AM stations operating at authorized power of 5 kW. According to Cox, there are a total of 38 AM radio stations with principal community contours that overlap those of the radio stations Cox proposes to co-own, and WDBO, WHOO and WZKD are only three of 33 Class B AM stations in this market, including two other 50 kW AM stations, three 10 kW AM stations and 13 other 5 kW AM stations. Cox asserts that there are a total of 23 FM stations in the same market, including nine other Class C stations, four Class C1 stations and three other Class C2 stations. Cox adds that the Orlando DMA is highly competitive and diverse, and that it would be competing against other media group owners, including Paxson Communications, Press Broadcasting Co., Chancellor Broadcasting Co. and Pulitzer Broadcasting. 16. In addition to WFTV, Cox owns a 47.5% voting stock interest in News-Journal Corp., which publishes a daily newspaper in Daytona Beach, the Daytona Beach News-Journal. Cox maintains that this interest is nonattributable under the Commission's ownership rules because a majority of the stock of News-Journal Corp. is held by a single shareholder. See 47 C.F.R. Section 73.3555 note 2(b). Cox also asserts that this interest was reviewed and approved by the staff as not violating the Commission's cross-interest policy in connection with Cox's acquisition of WFTV in 1985. Cox states further that because it is only a minority owner of News-Journal Corp., it has no control over the Daytona Beach News-Journal's operations. As evidence that the newspaper does not compete directly with Orlando media, Cox cites to Circulation 96, which reports no circulation for the Daytona Beach News-Journal in Orange County, Florida (Orlando), while the Orlando Sentinel has a circulation there of 120,245. 17. Cox also owns a cable system serving Ocala, Florida. Cox's cable system serves Ocala and portions of Marion County, Florida. Cox states that Ocala is located on the "fringe" of the Orlando DMA, outside WFTV's Grade B contour, in compliance with 47 C.F.R. Section 76.501. According to an engineering map supplied by Cox, Ocala is located approximately 60 miles northwest of Orlando. As evidence that Ocala media do not compete directly with Orlando media, Cox points out that while television station WOGX-TV, Ocala, is physically located in the Orlando DMA, Nielsen assigns it to the Gainesville DMA for reporting purposes. Cox reports that its Ocala cable system serves less than 5% of all cable subscribers in the Orlando DMA. Cox notes further that some of the largest cable group owners are present in the Orlando DMA, including Cablevision Industries, TCI Cablevision and Time Warner. 18. Economic Status. Cox reports that neither WFTV nor the radio stations are in a state of financial distress. Cox does explain, however, that WZKD, the children's FM radio station, is not a commercial success, ranking 45th out of 51 reported stations in Arbitron's Winter 1996 survey of the Orlando market with an average quarter-hour share of only 0.1. Cox claims that common ownership with WFTV and the other radio stations would permit WZKD to continue its unique children's format despite its lack of financial viability. Cox also notes again that AM station WHOO's facilities are in poor condition and will require extensive repairs so that the station can return to its authorized operations. Cox states that its acquisition of WHOO will permit substantially improved operations. 19. Competition and Diversity in the Market. Cox asserts that the Orlando-Daytona Beach- Melbourne DMA, which is the 22nd largest DMA in the country, is characterized by an unusually high degree of diversity. Cox states that the DMA includes 14 television stations (including three noncommercial stations), and that 21 out-of-market television stations (including six noncommercial stations) provide Grade B service to portions of the Orlando-Daytona Beach DMA. Additionally, 22 low power television stations are licensed to communities in the DMA. The Orlando Television Metro Market includes 76 radio stations, which Cox discusses in four submarkets: (1) the Daytona Beach Metro Market, which will have 18 radio stations licensed to 16 separate entities; (2) the Melbourne-Titusville-Cocoa Metro Market, which will have 23 radio stations licensed to 19 separate entities; (3) the Orlando Metro Market, which will have 28 radio stations licensed to 13 separate entities; and (4) the Lake County Market, which will have seven radio stations licensed to seven different entities. Cox notes that there are 55 cable systems in the Orlando-Daytona Beach DMA operated by 26 different owners. Cable penetration in the DMA is 77%. Additionally, Cox states that there are 14 Multichannel Multipoint Distribution Services operated by nine owners in the Orlando-Daytona Beach DMA. Cox asserts that the DMA is served by seven daily newspapers and 17 weekly newspapers, and that major magazines enjoy a significant circulation within the DMA. 20. Press Petition to Hold Applications in Abeyance. Press Broadcasting Company, Inc. ("Press") is the licensee of WKCF(TV), Clermont, Florida, and WTKS(FM), Cocoa Beach, Florida, both of which are located within the Orlando DMA. Press asserts that its stations compete for audience and revenues against the stations which are the subject of Cox's waiver request, and that Press would therefore be adversely affected by any undue concentration of control that might result from a grant of the above-captioned applications that relate to the Orlando market. Press alleges that WFTV is the dominant VHF television station in the Orlando market and that five of the seven radio stations that Cox proposes to acquire are among the top 15 stations in the market in terms of revenue. Press also disputes aspects of Cox's waiver showing and expresses concern that action on the above- captioned Orlando/Daytona Beach applications could run contrary to the ultimate policy decisions to be made in our pending television ownership and attribution proceedings or that such action might limit the Commission's ability to properly address matters at issue in those rulemakings. 21. With regard to Cox's waiver showing, Press challenges Cox's inclusion of discounts on office supplies as cost savings attributable to combined ownership. Press argues that a large media company like Cox would be entitled to discounts on bulk purchases in any event. With regard to savings related to personnel, Press asserts that such savings run counter to Cox's claim that it anticipates enhancing its ability to promote minority and female employment. Press further points out that Cox's personnel savings will result in part from provision of a "common news feed" from its television station to all of its radio stations, and that it will share traffic and weather information, children's programming and consumer reports among its stations. Press concludes that such actions would actually decrease programming diversity. Press also challenges Cox's inclusion as a public service "benefit" its proposal to upgrade the facilities of WHOO(AM) so as to enable the station to operate within its licensed parameters. Press contends that the station should be operating at present according to the terms of its license. Discussion 22. Press expresses concern that action on the above-captioned Orlando/Daytona Beach applications could run contrary to the ultimate policy decisions to be made in our pending television ownership and attribution proceedings or that such action might limit the Commission's ability to properly address matters at issue in those rulemakings. We have stated that requests for waiver of the one-to-a-market rule submitted prior to resolution of our pending television ownership rulemaking proceeding would be processed pursuant to our current criteria for evaluating such requests, and that waiver requests which are not clearly consistent with prior Commission precedent, would, if granted, be conditioned on the outcome of that proceeding. Our action here grants a temporary waiver of the one-to-a-market rule conditioned on the outcome of the television ownership and attribution proceedings. We appreciate Press' concerns that temporary waivers might unduly influence future Commission policy decisions. We believe, however, that our ability to properly address pending matters contained in those proceedings is uncompromised. Cox gains no substantive advantage over its competitors with respect to its ultimate media holdings in Orlando as a result of our action today, nor have we prejudged the outcome of any of the pending issues in those proceedings. Therefore, we will not delay consideration of Cox's waiver request pending conclusion of the rulemaking proceedings, as requested by Press. 23. Before considering Cox's request for a waiver of the one-to-a-market rule, we must determine what weight, if any, we should accord Cox's existing LMA with WZWY(TV) in assessing that request. Currently, television LMAs are not attributable to the brokering station, nor, taken alone, are they considered a "meaningful" relationship within the scope of the cross-interest policy. At present, therefore, we will not accord significance to Cox's existing television LMA in evaluating its ownership waiver request. Our decision here in no way prejudges our consideration of the issues in our ownership and attribution proceedings. We have proposed to attribute television LMAs to the brokering station where, as in Orlando, the stations involved are in the same market and the brokerage arrangement includes more than 15 percent of the brokered station's weekly broadcast hours. Further Notice of Proposed Rulemaking in MM Docket Nos. 94-150, 92-51 and 87-154, FCC 96-436 (released November 7, 1996) (Attribution Further Notice), at para. 27. Further, we have proposed that any LMA which would be attributable for duopoly rule purposes under this approach "would also count in applying our other ownership rules, including, for example . . . the one-to-a- market rule (or radio-television cross-ownership rule)." Id. (footnotes omitted). And, while we have proposed to grandfather those LMAs -- such as the LMA here -- that were entered into prior to November 5, 1996, the adoption date of the Second Further Notice of Proposed Rulemaking in MM Docket Nos. 91-221 and 87-8, FCC 96-438 (Television Ownership proceeding), (released November 7, 1996), we have also indicated that we would "reserve the right . . . to invalidate an otherwise grandfathered LMA in circumstances that raise particular competition and diversity concerns, such as those that might be presented in very small markets." Id. at para. 88. Thus, if we establish final rules for attributing and grandfathering LMAs, we would also assess whether the class of transactions involving radio, television and LMA interests such as those involved in this case should be permitted to continue. Because this is a pending issue, we will condition the one-to-a-market waiver we grant here on the ultimate result reached in the pending rulemaking proceedings in attribution and television ownership concerning the significance and the grandfathering of television LMAs. See S.E. Licensee, para. 12; REP WWBB G.P., FCC 96-463 (released November 27, 1996), para. 11. 24. Turning to the substance of Cox's one-to-a-market waiver request, we note that the Commission has recently considered waivers of the one-to-a-market rule where the radio combinations involved were governed by the ownership standards adopted in the Telecommunications Act of 1996. See S.E. Licensee, para. 13; Citicasters, para. 17. In Citicasters, we declined to grant a requested permanent waiver of the one-to-a-market rule where an applicant would own more radio stations than we permitted prior to passage of the Telecommunications Act of 1996. We stated that issues related to radio-television combinations remain in the pending rulemaking proceeding concerning broadcast ownership, and we concluded that a permanent, unconditional waiver of the one-to-a-market rule was therefore not appropriate. We also concluded, however, that a temporary waiver of the one-to-a-market rule pending our resolution of the one-to-a- market issues raised in the broadcast ownership rulemaking proceeding was justified, and would not, given its limited duration, unduly affect competition and diversity in the relevant markets. For the same reasons, we conclude that a permanent, unconditional waiver would not be appropriate here, but that, as in Citicasters, the applicant has justified grant of a temporary waiver pending our resolution of the issues raised in the broadcast ownership rulemaking. Our view that a temporary waiver is warranted is based in part upon our analysis of Cox's case-by-case showing in support of its permanent waiver request. 25. Waiver Showing. Cox has demonstrated that common ownership of the Orlando and Daytona Beach stations will create efficiencies resulting in cost savings and the potential for enhanced programming and service benefits. Specifically, Cox has shown that combined operation of WFTV and the radio stations will result in a projected cost savings of at least $423,000 per year. Cox states that these cost savings will translate into public service and programming benefits in the form of improved newsgathering capabilities of the radio stations, as well as more widespread traffic and weather reporting. Cox has also shown that the proposed common ownership will have unique benefits in the area of children's television programming. Cox states that common ownership of television station WFTV and children's programming-oriented FM station WZKD would permit development and joint purchases of additional educational children's radio and television programs. Cox also plans to cross-promote this children's educational and informational programming content with daily program guides on both WZKD and WFTV. As discussed above, Cox has shown that common ownership will enable the stations to engage in joint recruitment of minority and female employees, and that it will facilitate improvement of the technical facilities of AM station WHOO as a result of Cox's financial resources and technical expertise. We find these benefits Cox proposes to implement provide a palpable public interest justification for a temporary conditional waiver. 26. Press challenges Cox's inclusion of discounts on office supplies as cost savings attributable to combined ownership. Press argues that a large media company like Cox would be entitled to discounts on bulk purchases in any event. We have allowed such claimed discounts with respect to previous waiver requests, and we do not find Press' argument to be of significant consequence with respect to the instant waiver request because the claimed savings (approximately $10,000) are a small portion of the total claimed cost savings. Furthermore, there is no indication that such savings would be available to Cox in the absence of common ownership of stations located in the same geographic area, as is contemplated here. 27. With regard to savings related to personnel, Press asserts that such savings run counter to Cox's claim that it anticipates enhancing its ability to promote minority and female employment. As Cox correctly points out, we have in the past recognized that cost savings from staff consolidation and enhanced recruitment opportunities can both be considered as part of a case-by- case showing. See Golden West Broadcasters, 10 FCC Rcd 1081, 2082 (1995); First Broadcasting Co., 10 FCC Rcd 2904, 2904-05 (1995). Here, Cox has shown that its stations will be able to engage in joint efforts to recruit women and minorities in connection with any future employment opportunities. Press also points out that Cox's personnel savings will result in part from provision of a "common news feed" from its television station to all of its radio stations, and that it will share traffic and weather information, children's programming and consumer reports among its stations. Press concludes that such actions would actually decrease programming diversity. However, we have recognized that the use of common facilities to gather news, traffic and weather information can be of public benefit. See, e.g., S.E. Licensee G.P., para. 5 (common news and public affairs resources); Rep WWBB G.P., para. 5 (common news and public affairs resources); Atla Gulf FM, Inc., 10 FCC Rcd 7750, 7751 (1995) (common news, traffic and weather staff/services); Secret Communications L.P., 10 FCC Rcd 6874, 6876 (1995) (common news, public affairs and weather resources); Newmountain Broadcasting II Corp., 11 FCC Rcd 2344, 2345 (MMB 1996) (common news and weather facilities). This is so because the use of common personnel and facilities to gather news, traffic and weather information reduces costs and makes such vital information available to the public through a greater number of outlets. 28. Press also challenges Cox's inclusion as a public service benefit its proposal to upgrade the facilities of WHOO(AM) so as to enable the station to operate within its licensed parameters. Press contends that the station should be operating at present according to the terms of its license. As noted, WHOO is operating outside its licensed parameters pursuant to special temporary authority from the Commission, and thus, a proposal to expeditiously upgrade the station is creditable as a public service benefit. Furthermore, we have granted a number of one-to-a-market waivers in the past where a prospective licensee indicated that it would improve a station's technical facilities. See, e.g., Henry Broadcasting Co., 11 FCC Rcd 1175, 1176 (1995) (public interest benefits included upgrade of FM facilities); Network Properties of America, Ltd., 10 FCC Rcd 12413, 12415 (1995) (public interest benefits included replacement of outdated AM equipment and facilities); Moosey Communications, Inc., 8 FCC Rcd 5247, 5248 (1993) (public interest benefits included purchase of new FM transmitter). 29. Regarding the second factor in our analysis, the types of facilities involved in the waiver request, we stated in the Second Report and Order that "we will consider such factors as whether the proposed radio-TV combination involves a UHF or VHF TV station or an AM or FM radio station, as well as the size or class of the stations involved." 4 FCC Rcd at 1753. Television station WFTV (VHF), is an ABC affiliate, competing with 14 other television stations (including three noncommercial stations) licensed to the Orlando DMA. The station operates at 316 kW authorized power and competes against two other network VHF stations in the Orlando DMA. WWKA, WCFB and WHTQ are all Class C FM stations, authorized to operate at 100 kW. WMMO is a Class C2 FM station, authorized to operate at 38 kW. These FM stations are only four of 27 FM stations in the Orlando-Daytona Beach Radio Market, including nine other Class C stations, four Class C1 stations and three other Class C2 stations. WHOO is a Class B AM station operating at authorized power of 50 kW, and WDBO and WZKD are Class B AM stations operating at authorized power of 5 kW. These AM stations are only three of 41 AM stations in the same market, 33 of which are also Class B AM stations, including two 50 kW AM stations, three 10 kW AM stations and thirteen 5 kW AM stations. Although the facilities that Cox proposes to own in Orlando are significant, we find that comparable facilities do exist and that there is little danger that Cox will be able to dominate the market based on the nature of its facilities. See Stockholders of CBS Inc., 11 FCC Rcd 3733, 3772 (1995) (stating that the type and nature of facilities to be commonly owned must be evaluated against the backdrop of the nature of the relevant market). 30. With respect to the third factor, the number of media outlets owned, Cox already owns a cable system and has a nonattributable 47.5% stock interest in a newspaper in the Orlando-Daytona Beach-Melbourne DMA in addition to the broadcast facilities it is proposing to co-own. Cox has shown that its cable system serves less than 5% of all cable subscribers in the DMA, and that this cable system competes against major cable group owners. Furthermore, this cable system serves Ocala, which is located approximately 60 miles northwest of Orlando and approximately 60 miles west of Daytona Beach. Cox represents that WFTV's Grade B contour does not overlap the service area of its Ocala cable system and thus, that no rule violation is presented by this ownership pattern. Likewise, Cox's non-cognizable minority interest in the Daytona Beach News-Journaldoes not violate any of our cross-ownership rules when considered with Cox's other proposed ownership interests, nor in the circumstances of this case do we believe that our cross-interest policy should be invoked to prohibit combined ownership of the Daytona Beach News-Journal and the seven Orlando/Daytona Beach radio stations for the temporary period pending completion of our attribution rulemaking proceeding (which includes a re-examination of the need for the cross-interest policy). See Notice of Proposed Rule Making in MM Docket Nos. 94-150, 92-51 & 87-154, 10 FCC Rcd 3606, 3642 (1995) ("Attribution Notice"). 31. The cross-interest policy prohibits individuals from having an attributable interest in one facility and a "meaningful" relationship with another facility, where certain media are involved, including two broadcast stations, or a daily newspaper and a broadcast station, or a television station and a cable television system, when both outlets serve "substantially the same area." See id. Non- attributable equity interests, including a minority interest in a corporation having a single majority shareholder, have been viewed as constituting a "meaningful" interest subject to the policy. Id. at 3643-45. See also Roy M. Speer, FCC 96-258 (released June 14, 1996) (limiting exercise of Silver King Communications, Inc.'s option to acquire an equity interest in a competing broadcast licensee to one-third (33%) of the competitor's equity where both Silver King and the competitor owned television stations in the Chicago market). Cox has shown that the Daytona Beach News-Journalis not widely circulated in Orlando, the community of license of WFTV and six of the radio stations that Cox proposes to co-own. However, Cox does propose to own WCFB, a 100 kW Class C FM station licensed to Daytona Beach, where the Daytona Beach News-Journal is published and enjoys substantial circulation. Furthermore, one of the Orlando FM stations, WWKA, has a 1 mV/m contour that encompasses Daytona Beach. WHTQ(FM), one of the Orlando stations that Cox is acquiring from Infinity, also has a 1 mV/m contour that encompasses Daytona Beach. See Infinity Holdings Corp. of Orlando, FCC 96-494 (released December 26, 1996), at para. 23. These are different circumstances than existed when the staff approved Cox's 1985 purchase of WFTV, whose Grade A signal encompasses Daytona Beach, and could present cross-interest concerns. Given these facts and the pendency of our review of the cross-interest policy and our atrribution rules, we find it inappropriate to consent here to this radio-newspaper cross-ownership on a permanent basis. At the same time, because the market involved appears to be highly competitive, we do not believe that any appreciable harm to our interest in competition will result from permitting Cox's common ownership of these newspaper and radio interests during the pendency of and subject to the outcome in the attribution rulemaking proceeding. We placed this same condition on our consent to allow Cox to acquire the three Orlando stations from Infinity Holdings Corp. of Orlando. This conditional grant is appropriate for the same reasons that a temporary conditional waiver of the one- to-a-market rule is appropriate. Like the temporary, conditional waiver, it is of limited duration and will allow the parties to go forward with the proposed transfer of control, while at the same time ensuring that Cox's ownership interests are subject to the same limitations as other group owners as a result of our pending broadcast attribution proceeding. 32. Fourth, regarding the economic status of the stations involved in the proposed combination, none of the stations is experiencing financial difficulties. However, as we have previously indicated, not all five factors need be present to justify grant of a waiver. See Second Report and Order Recon., 4 FCC Rcd at 6491; Great American Television and Radio Co., 4 FCC Rcd 6347, 6349 (1989). We have also granted a number of one-to-a-market waivers where there was no finding that any of the stations were in financial distress. See, e.g., Louis C. DeArias, Receiver, 11 FCC Rcd 3662 (1996); Henry Broadcasting Co., 11 FCC Rcd 1175 (1995); Atlantic Morris Broadcasting, Inc., 10 FCC Rcd 9495 (1995); Alta Gulf FM, Inc., 10 FCC Rcd 7750 (1995); Secret Communications, Ltd., 10 FCC Rcd 6874 (1995). 33. Finally, the fifth factor relates to the level of diversity and competition in the relevant market. Indicia of the level of diversity include the number of broadcast outlets, the number of separately-owned and operated "voices" in the market, and the presence of cable and non-broadcast media. The Orlando-Daytona Beach-Melbourne DMA is ranked 22nd in the country and, according to our independent analysis, the market will have 67 radio stations including 37 AM and 30 FM radio stations (Orlando Television Metro Market), and 14 television stations, licensed to 60 independent owners after the subject transaction is consummated. Additionally, the DMA has substantial cable penetration, and numerous daily and weekly newspapers. 34. With respect to economic concentration and competition, we are unpersuaded by Press's contention that the stations Cox proposes to own are so dominant that their common ownership will lead to adverse competition effects. Our independent analysis indicates that Cox's seven radio stations will garner a 32% share of the radio advertising revenue in the Orlando market, while WFTV garners 28.5% of television advertising revenue. Together, the television and radio stations receive a combined television and radio advertising share of 29%. Given the limited duration of the waiver, we do not believe that these figures are so significant as to raise a concern that diversity and competition in Orlando will be unduly affected for the waiver period. See Stockholders of Infinity Broadcasting Corp., FCC 96-495 (released December 26, 1996) ("Westinghouse/Infinity"); S.E. Licensee G.P., FCC 96-464 (released November 27, 1996) ("S.E. Licensee"); Shareholders of Citicasters, Inc., FCC 96-380 (released September 17, 1996) ("Citicasters"). We note, in this regard, that after investigating the effect on radio competition of allowing the Cox/NewCity merger to go forward, the Department of Justice (DOJ) did not require divestiture of any broadcast properties or interests, as it has done in other cases. See Westinghouse/Infinity, at para. 2 & n.3 (describing settlement of antitrust case brought by DOJ in which Westinghouse agreed to divest one radio station each in Boston and Philadelphia in connection with Westinghouse's acquisition of Infinity Broadcasting Corp.); Citicasters, para. 12 (describing antitrust settlement with DOJ in which Jacor agreed to divest its prospective interest in WKRQ(FM), Cincinnati, in connection with its proposed merger with Citicasters). As we stated in Citicasters, our reliance on the determinations of the Department of Justice to inform our decision here should not be taken to suggest that either our jurisdiction or our obligation with respect to competition in broadcast markets is coincident with that of the Department. Rather, our interests in this area are complementary, and the Department of Justice's determination is both relevant and highly probative. Citicasters, at para. 16. In sum, we find that Press has failed to raise a substantial and material question of fact that would preclude grant of the transfer of control applications and associated waiver request at issue here. Therefore, we will deny the informal objection filed by Press. 35. We conclude, based on the record, that granting a conditional, temporary waiver of the one-to-a-market rule to permit common ownership of WFTV(TV), WHOO(AM), WMMO(FM), WHTQ(FM), WDBO(AM), WWKA(FM), WZKD(FM), and WCFB(FM) will not unduly affect competition or diversity in the Orlando market. See Westinghouse/Infinity; S.E. Licensee, (granting a conditional, temporary waiver of the one-to-a-market rule to Clear Channel in Memphis for a period of six months from issuance of Orders in pending television ownership and attribution proceedings); Citicasters (granting temporary waivers of one-to-a-market rule to Jacor in Cincinnati and Tampa for a period of six months from issuance of an Order in pending television ownership proceeding). While Cox will have substantial ownership interests in the Orlando-Daytona Beach- Melbourne DMA, it has shown that the market is highly competitive and diverse, and that its stations would be competing against other media group owners, including Paxson Communications, Press Broadcasting Co., Chancellor Broadcasting Co. and Pulitzer Broadcasting. Based on this and other factors, we do not believe that diversity in Orlando will be so adversely affected in the short run as to require denial of a temporary conditional waiver to Cox. As Cox's showing suggests and our own analysis confirms, many more than 30 independent broadcast voices will remain in Orlando after the proposed transactions. And, while Cox's commonly owned facilities will be significant in technical terms, comparable competing facilities do exist. Moreover, there are economic efficiencies and program service benefits to be gained by the proposed transactions that support grant of a temporary waiver. Accordingly, we grant Cox a waiver of the one-to-a-market rule in Orlando during the pendency of and subject to the outcome in our ongoing rulemaking proceedings involving television ownership and the attribution of broadcast interests. Because Cox has a substantial nonattributable interest in a daily newspaper in Daytona Beach, we also grant the transfer of control applications for the three Orlando stations and the Daytona Beach station conditioned on the outcome of our attribution rulemaking. ATLANTA MARKET 36. Cox is the licensee of VHF television station WSB-TV (ABC, Channel 2), and WSB- AM-FM in Atlanta and publishes the Atlanta Journal and the Atlanta Constitution, two daily newspapers. Cox also provides programming to WCNN(AM), North Atlanta, Georgia, pursuant to an attributable local marketing agreement (LMA). By the above-captioned transfer of control application, Cox seeks Commission approval to acquire WJZF(FM), La Grange, Georgia. Because WJZF's 1 mV/m contour encompasses the City of Atlanta, which is the community of license of WSB-TV, Cox requests a temporary waiver of the one-to-a-market rule to permit common ownership of WJZF and WSB-TV. Because Atlanta is also the community in which the Atlanta Journal and the Atlanta Constitution are published, Cox requests a temporary waiver of the daily newspaper cross-ownership rule. Cox requests waivers for either 18 months or until such time as the Commission resolves its pending proceedings relating to the one-to-a-market rule and our radio- newspaper cross-ownership waiver policies, whichever is later. One-to-a-Market Waiver 37. Cox bases its request for a one-to-a-market waiver on the standards adopted in the Second Report and Order in MM Docket No. 87-7, 4 FCC Rcd 1741 ("Second Report and Order"), recon. granted in part, denied in part, 4 FCC Rcd 6489 (1989) ("Second Report and Order Recon."). Although Atlanta is the 10th largest DMA, according to Nielsen, Cox's request must be evaluated under the case-by-case standard because the proposed transaction involves the common ownership of more than one same service radio station with a television station. In support of its request, Cox submits a showing which addresses each of the five case-by-case factors. 38. Benefits of Joint Operation. Cox asserts that numerous cost savings and operating efficiencies will result from Cox's ownership of WJZF and WSB-TV, and that public service benefits will be generated by that ownership. Cox states that ownership of WJZF in combination with WSB- AM-FM-TV will result in annual cost savings of approximately $2.29 million. Cox submits a showing that this is the approximate cost of operating WJZF as a stand-alone FM station. Cox states that these costs have been avoided because Cox has been providing programming to WJZF pursuant to a local marketing agreement (LMA) for two-and-a-half years which has permitted WJZF to share facilities and personnel with Cox's Atlanta broadcast stations. Cox also estimates that joint operation has permitted a savings of approximately $1.265 million in capital investment for items such as a telephone system, news equipment, production equipment, computers and office space/office equipment. 39. Cox states that the efficiencies which have yielded these cost savings have been reflected in tangible public service benefits. For instance, Cox points out that WJZF's arrangements with WSB have enabled WJZF to provide its listeners with immediate news bulletins from the WSB news team, and that, in traffic emergencies, WJZF has been able to use information provided by WSB to inform its listeners of that fact. Similarly, Cox asserts that WJZF can utilize WSB's resources to provide listeners with critical public safety information, which is particularly important, according to Cox, because the designated "EBS" station for the Columbus area, WCGQ-FM, monitors WJZF for its emergency broadcasts. 40. Other Media Outlets/Types of Facilities. Cox claims that its facilities are comparable to many other stations in the Atlanta market, and that there are other larger media group owners in the market, including Gannett Co., Inc. and The Tribune Company. Television Station WSB-TV (VHF; ABC affiliate) operates at 100 kW effective radiated power (ERP) visual and 20 kW ERP aural from a 1037-foot antenna height above average terrain (HAAT). WSB-FM is a Class C station operating at 100 kW from an antenna 311 meters HAAT. WJZF(FM), La Grange, Georgia, is a Class C1 station operating at 60 kW from an antenna 371 meters HAAT. WSB(AM) is a Class A station operating at 50 kW. Additionally, Cox provides programming to WCNN(AM), North Atlanta, Georgia pursuant to an LMA. WCNN is a Class B AM station operating at 50 kW. 41. In support of its claim that these facilities are comparable to others in the relevant markets, Cox states that WSB-TV competes against two other affiliated VHF stations in the Atlanta Television Metro Market, and that portions of this market receive Grade B service from 17 other VHF stations. Cox further states that there are 44 AM radio stations with principal community contours that overlap those of the radio stations Cox proposes to co-own, and that there are three 50 kW AM stations in addition to WSB and WCNN. As for FM stations, Cox states that there are 24 FM stations with principal community contours that overlap those of the radio stations Cox proposes to co-own, and that there are 11 Class C stations in addition to WJZF and two Class C1 stations in addition to WSB-FM. 42. Economic Status. Cox reports that none of the stations it proposes to co-own is in financial distress. 43. Competition and Diversity in the Market. Cox characterizes media diversity as "exceptional" in Atlanta, the 10th-largest DMA in the country. According to Cox, there are 12 operating television stations licensed to the DMA, including ten commercial stations and two noncommercial educational stations. Additionally, Cox notes that 33 television stations (30 commercial stations and three noncommercial educational stations) provide Grade B service to portions of the Atlanta DMA. Cox also points out that the Atlanta DMA receives service from 12 low power television stations. With respect to radio facilities, Cox states that there are 62 radio stations (53 commercial stations and nine noncommercial educational stations) licensed to communities in the Atlanta Television Metro Market. These 62 radio stations are operated by 54 separate owners. 44. Cox estimates that there are 97 cable systems in the Atlanta DMA operated by approximately 47 owners, and that cable penetration in the Atlanta DMA is 66% (68% in the Atlanta Television Metro Market). Cox also notes that 82% of market households have VCRs and that 17 out-of-market superstations and cable channels had reportable viewing in the most recent Nielsen survey. In addition, Cox cites service by three multipoint distribution services (MDS) and seven multichannel multipoint distribution services (MMDS). Cox states that the Atlanta Television Metro Market is served by nine independent daily newspapers and 35 weekly newspapers, and that La Grange, which is located outside the Atlanta Television Metro Market, has its own daily newspaper, The La Grange Daily News. In sum, Cox submits that the Atlanta Television Metro Market is larger than most markets where case-by-case waivers have been granted, that it has more television and radio stations and independent voices than such markets, that it has a greater degree of cable penetration than such markets, and that it has more daily newspapers than many such markets. Discussion 45. In NewCity Communications of Massachusetts, Inc., 10 FCC Rcd 4985 (1995), aff'd sub nom. WSB, Inc. v. FCC, 85 F.3d 695 (D.C. Cir. 1996) we denied a permanent waiver of the one-to- a-market rule to permit Cox to purchase WJZF(FM) from NewCity. In the earlier case, Cox stated that traditional cost savings and economies of scale would not result because all of Cox's holdings in Atlanta would be operated on an independent and autonomous basis. NewCity, 10 FCC Rcd at 4990. In that earlier waiver request, Cox failed to quantify its projected cost savings and described only internships and training programs as public interest benefits arising from common ownership of WJZF and its Atlanta facilities. See id. By contrast, Cox has provided a showing of cost savings and public interest benefits in connection with its instant waiver request. Based on the circumstances presented here, we believe that a temporary, conditional waiver of the one-to-a-market rule is appropriate at this time. A temporary waiver will permit Cox and NewCity to go forward with their proposed merger without the necessity of a forced sale of WJZF. See Multimedia, Inc., 11 FCC Rcd 4883, 4891 (1995); Stockholders of CBS Inc., 11 FCC Rcd 3733, 3755 (1995) ("Where mergers or transfers of multiple stations are involved, in general we believe that the benefits derived from such transactions support grant of a reasonable waiver period to effectuate the merger and permit time to come into compliance with our rules."). Such a result also is consistent with the deregulatory spirit of the Telecommunications Act of 1996, which was enacted subsequent to our decision in NewCity. Secondly, as we stated in NewCity, it was not clear that there would be appreciable harm to diversity or competition either in Atlanta or La Grange from addition of the La Grange station to Cox's holdings. See NewCity, 10 FCC Rcd at 4990. Here, the temporary nature of the waiver requested will ensure that any possible negative effects would be short-lived, as Cox will be required to come into compliance with any changes in our multiple ownership rules as a result of the pending television ownership proceeding. 46. Cox has demonstrated that common ownership of WJZF and the Atlanta stations will create efficiencies resulting in cost savings and the potential for enhanced programming and service benefits. Cox provides a showing that combined operation of WJZF and WSB-AM-FM-TV will result in cost savings to Cox of at least $2.29 million. However, we note that the full amount of $2.29 million in cost savings asserted by Cox is not creditable because Cox does not deduct from that figure the actual costs attributable to running WJZF. Cox states that $2.29 million is "the approximate cost of operating WJZF as a stand-alone FM station." Cox provides detailed estimates of savings in administration, programming and sales costs, which total $2.29 million. The actual cost savings, however, the costs avoided through combined ownership and operation, would be the difference between what it would cost to operate WJZF as a stand-alone station and what it actually costs Cox to operate WJZF now. In order to credit this full amount, we would have to make the improbable assumption that it costs Cox no more to operate four broadcast stations (WSB-AM-FM- TV and WJZF) than it costs to run three broadcast stations (WSB-AM-FM-TV). Therefore, we will not credit Cox with the full amount of $2.29 million in claimed savings in operating costs. It is nonetheless clear that substantial savings will be realized through common operation of the stations. Furthermore, Cox estimates that joint operation will permit a savings in capital investment of approximately $1.265 million related to a telephone system, news equipment, production and other equipment, computers and office space and related equipment. Cox states that its cost savings will translate into public service and programming benefits in the form of improved newsgathering capabilities of the radio stations, as well as more widespread traffic and weather reporting. We find these benefits Cox proposes to implement provide a palpable public interest justification for a temporary conditional waiver. 47. Cox has demonstrated that its facilities are comparable to many other stations in the Atlanta market. Television station WSB-TV (VHF) is an ABC affiliate competing with two other affiliated VHF television stations licensed to the Atlanta DMA. The station operates at 100 kW authorized power. The four radio stations that Cox proposes to co-own/broker compete against 68 radio stations, including 44 AM stations and 24 FM stations. WSB-FM is a Class C station operating at 100 kW and WJZF(FM) is a Class C1 station operating at 60 kW in a market with 11 other Class C stations and two other Class C1 stations. WSB(AM) is a Class A station operating at 50 kW, and Cox's brokered station, WCNN(AM) is a Class B station operating at 50 kW in a market with three other 50 kW AM stations. Additionally, we note that the presence of other media group owners in Atlanta, including Gannett Co., Inc. and The Tribune Company, makes it unlikely that Cox will be able to dominate the market based on the technical strength of its facilities. 48. With respect to the third factor, other media outlets, Cox owns daily newspapers, the Atlanta Journal and the Atlanta Constitution, and WSB(AM)/FM and WSB-TV, and seeks to acquire WJZF, the station which is the subject of this waiver request. Cox also has an attributable LMA with an AM station, WCNN. The Atlanta Constitution is published every morning and the Atlanta Journal is published every afternoon. A combined paper is published on Saturdays and Sundays. While Cox's media holdings in Atlanta are very substantial, we find that they are not so dominant that they require denial of a temporary waiver to Cox while we re-examine the one-to-a-market rule. We find the facts that Atlanta is the 10th-largest DMA in the country and that there are other media group owners in the market with powerful competing facilities to be significant considerations weighing in favor of grant of a temporary waiver in this instance. 49. Fourth, regarding the economic status of the stations involved in the proposed combination, none of the stations is experiencing financial difficulties. However, as we have previously indicated, not all five factors need be present to justify grant of a waiver. See Second Report and Order Recon., 4 FCC Rcd at 6491; Great American Television and Radio Co., 4 FCC Rcd 6347, 6349 (1989). We have also granted a number of one-to-a-market waivers where there was no finding that any of the stations were in financial distress. See, e.g., Louis C. DeArias, Receiver, 11 FCC Rcd 3662 (1996); Henry Broadcasting Co., 11 FCC Rcd 1175 (1995); Atlantic Morris Broadcasting, Inc., 10 FCC Rcd 9495 (1995); Alta Gulf FM, Inc., 10 FCC Rcd 7750 (1995); Secret Communications, Ltd., 10 FCC Rcd 6874 (1995). 50. The fifth factor relates to the level of diversity and competition in the relevant market. Indicia of the level of diversity include the number of broadcast outlets, the number of separately- owned and operated "voices" in the market, and the presence of cable and non-broadcast media. The Atlanta DMA is ranked 10th in the country and, according to our independent analysis, the market will have 62 radio stations, including 41 AM and 21 FM radio stations (Atlanta Television Metro Market), and 12 television stations, licensed to 65 independent owners. Additionally, the Atlanta DMA has 12 low power television stations, substantial cable penetration, and numerous daily and weekly newspapers. 51. With respect to economic concentration and competition, our independent analysis indicates that the three radio stations that Cox proposes to own currently garner 15% of the radio advertising revenue in the Atlanta market. Cox's brokered station, WCNN garners 2% of the radio advertising revenue. Together, the Cox owned/brokered stations would garner 17% of the radio advertising revenue in the Atlanta market. WSB-TV captures 27% of the television advertising revenue. Together, the television and radio stations receive a combined television and radio advertising share of 24%. Given the limited duration of the waiver, we do not believe that these figures are so significant as to raise a concern that diversity and competition in Atlanta will be unduly affected for the waiver period. 52. We conclude, based on the record, that granting a conditional, temporary waiver will not unduly affect competition or diversity in the Atlanta market. See Stockholders of Infinity Broadcasting Corp., FCC 96-495 (released December 26, 1996); S.E. Licensee G.P., FCC 96-464 (released November 27, 1996) (granting a conditional, temporary waiver of the one-to-a-market rule to Clear Channel in Memphis for a period of six months from issuance of Orders in pending television ownership and attribution proceedings); Shareholders of Citicasters, Inc., FCC 96-380 (released September 17, 1996) (granting temporary waivers of one-to-a-market rule to Jacor in Cincinnati and Tampa for a period of six months from issuance of an Order in pending television ownership proceeding). Cox has shown that the Atlanta DMA is highly competitive and diverse, and that its stations would be competing against other media group owners, including Gannett Co., Inc. and The Tribune Company. Based on this and other factors, we do not believe that diversity in Atlanta will be so adversely affected in the short run as to require denial of Cox's waiver request. As Cox's showing suggests and our own analysis confirms, many more than 30 independent broadcast voices will remain in Atlanta after the proposed transactions. And, while Cox's commonly owned facilities will be significant in technical terms, comparable competing facilities do exist. Moreover, there are economic efficiencies and program service benefits to be gained by the proposed transactions that support grant of a temporary waiver. Accordingly, we grant to Cox a one-to-a- market waiver during the pendency of and subject to the outcome in our ongoing television ownership rulemaking proceeding. Radio-Newspaper Cross-Ownership Waiver 53. Cox seeks a temporary waiver of the radio-newspaper cross-ownership rule to permit common ownership of WJZF(FM), La Grange, Georgia, with the Atlanta Journal and the Atlanta Constitution. Cox requests a waiver lasting 18 months or until completion of the proceeding re- examining the Commission's radio-newspaper cross-ownership waiver policies. 54. In support of its waiver request, Cox argues that there is no effective economic competition between WJZF, and the Atlanta Journal and the Atlanta Constitution. Cox asserts that this cross-ownership is different from other waiver requests where both the broadcast station and the newspaper were located in the same community. Cox notes that La Grange is 60 miles from Atlanta, and asserts that Atlanta and La Grange are two separate newspaper markets, as well as two separate radio markets. Cox states that the City of Atlanta is barely within the WJZF 1 mV/m contour and that WJZF's city grade (3.16 mV/m) contour covers only 17.3% of Atlanta. Cox points out that La Grange has its own newspaper, the La Grange Daily News, which has a circulation of 15,765 in Troup County. Cox notes that the Atlanta Journal and the Atlanta Constitution, by contrast, have a combined circulation of 1,522 in Troup County -- where La Grange is located -- and have only slightly higher circulation there than the Columbus Ledger-Enquirer. Cox concludes therefore, that the Atlanta Journal and the Atlanta Constitution are not a significant competitive factor in WJZF's city of license, La Grange, just as WJZF is not a part of the Atlanta Television Metro Market. 55. Cox further argues that there is substantial diversity within the relevant market. Cox notes that there are nine television stations licensed to communities within the area encompassed by WJZF's 1 mV/m contour, and that portions of that area also receive Grade B service from four other television stations. Cox states that eight low-power television stations are also licensed to communities in that area, including one licensed to La Grange. Cox notes that 68 radio stations other than WSB, WSB-FM, WCNN and WJZF are licensed to communities within that area and numerous other stations provide service to all or part of the area. In addition, Cox cites the presence of 37 cable systems, seven daily newspapers besides the Atlanta Journal and the Atlanta Constitution, and 33 weekly newspapers. Finally, Cox states that its broadcast stations are operated completely separately from its newspapers. As evidence that the Cox broadcast stations and newspapers "do not speak with one voice," Cox submits examples of Atlanta Journal and Atlanta Constitution articles "highly critical" of its television and radio stations. Cox promises that to the extent that the Atlanta Journal and the Atlanta Constitution cover matters relating to WJZF, it will be "equally as objective and critical." Discussion 56. The daily newspaper cross-ownership rule was instituted to promote diversity of viewpoint and economic competition. Notice of Inquiry in MM Docket No. 96-197, 11 FCC Rcd 13003, 13004 (1996). Of these two goals, the Commission places added emphasis on fostering diverse viewpoints from antagonistic sources. See id. In adopting the rule, the Commission determined that, as a general rule, granting a broadcast license to an entity in the same community as that in which the entity also publishes a newspaper would harm local diversity. Id. The Commission also foresaw the need for waivers of the rule in certain circumstances: (1) where a licensee is unable to sell a station; (2) where the only sale possible would be at an artificially depressed price; (3) where separate ownership and operation of the newspaper and the broadcast station could not be supported in the locality; and (4) where, for whatever reason, the purposes of the rule would be disserved by its application. Id. 57. In recent mergers involving large media companies, the Commission has granted temporary waivers in order to allow an orderly divestiture of broadcast stations or newspapers. SeeCapital Cities/ABC, Inc., 11 FCC Rcd 5841, 5895 (1996) (granting 12-month waivers of radio- newspaper cross-ownership rule to the Walt Disney Company in Fort Worth, Texas and Detroit- Pontiac, Michigan); Multimedia, Inc., 11 FCC Rcd 4883, 4891 (1995) (granting 12-month waiver of television-newspaper cross-ownership rule to Gannett Co., Inc. in Cincinnati, Ohio). We stated that a 12-month period was sufficient to avoid a forced sale of broadcast stations or newspapers. We believe that a temporary waiver period is appropriate in this case to avoid a forced sale. However, because we have recently released a Notice of Inquiry concerning our radio-newspaper cross- ownership waiver policies, we believe that the appropriate period for a temporary waiver is six months from the date of a final order in the radio-newspaper docket, MM Docket No. 96-197. In light of the multiplicity of media outlets serving the Atlanta market, we see no reason to believe that the combined ownership of WJZF and the Atlanta Journal and the Atlanta Constitution will be unduly harmful to diversity or competition in the Atlanta market during this temporary period. LOCAL RADIO OWNERSHIP 58. The local radio ownership rules, as mandated by the Telecommunications Act of 1996, impose numerical restrictions on the number of radio stations in the same service and on the number of radio stations overall that may be commonly owned in any given radio market. The relevant radio market is defined as the area encompassed by the principal community contours of the mutually overlapping stations proposed to be co-owned. See Broadcast Radio Ownership, 11 FCC Rcd 12368, 12370 (1996); Revision of Radio Rules and Policies, 7 FCC Rcd 6387, 6395 (1992). Under the local radio ownership rules, as amended by the Telecommunications Act of 1996, a party may own, operate, or control: (1) up to 8 commercial radio stations -- not more than 5 of which are in the same service -- in a radio market with 45 or more commercial radio stations; (2) up to 7 commercial radio stations -- not more than 4 of which are in the same service -- in a radio market with 30-44 commercial radio stations; (3) up to 6 commercial radio stations -- not more than 4 of which are in the same service -- in a radio market with 15-29 commercial radio stations; and (4) up to 5 commercial radio stations -- not more than 3 of which are in the same service -- in a radio market with 14 or fewer commercial radio stations, except that a party may not own, operate, or control more than 50 percent of the stations in such market. Broadcast Radio Ownership, 11 FCC Rcd 12368 (1996). See also Telecommunications Act of 1996, Section 202(b). 59. As a result of the above-captioned transfer of control, Cox will become the licensee of more than one radio station in the same service in six markets. Therefore, Cox has submitted contour overlap showings to demonstrate compliance with our local radio ownership rules in the following cities: 60. Orlando, Florida. Cox has submitted the required contour overlap showing which indicates that the relevant radio market contains 68 stations. Under our rules, 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. By the instant applications, Cox's proposes to own, operate, or control seven commercial radio stations, only four of which are in the same service. Moreover, our review of the record in this case reveals no other circumstances that would preclude grant of this application. See supra, at paras. 33-34, discussion of Orlando market following consummation of these proposed transactions. We conclude that, with respect to local radio ownership, Cox's acquisition of WDBO(AM), WWKA(FM), WZKD(AM), and WCFB(FM) would serve the public interest. 61. Atlanta, Georgia. Cox has submitted the required contour overlap showing which indicates that the relevant radio market contains 72 commercial radio stations. 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. Cox proposes to own/broker, operate, or control four commercial radio stations, only two of which are in the same service. Moreover, our review of the record in this case reveals no other circumstances that would preclude grant of this application. See supra, at paras. 50-51, discussion of the Atlanta market following grant of the requested one-to-a-market waiver. We conclude that, with respect to local radio ownership, Cox's acquisition of WJZF(FM) would serve the public interest. 62. Birmingham, Alabama. Cox will become the licensee of WZZK-AM-FM and WODL(FM), Birmingham, Alabama. Cox's showing indicates that the relevant radio market contains at least seven stations. Under our rules, a party may own, operate, or control up to five commercial radio stations, not more than three of which are in the same service, in any size market, provided that the party may not own, operate, or control more than 50 percent of the stations in a market with 14 or fewer commercial radio stations. See 47 C.F.R. Section 73.3555(a)(1). Cox proposes to own, operate, or control three commercial radio stations, only two of which are in the same service. These stations do not constitute more than 50 percent of the stations in the market. Moreover, our review of the record in this case reveals no other circumstances that would preclude grant of this application. We conclude that, with respect to local radio ownership, Cox's acquisition of WZZK-AM-FM and WODL(FM) would serve the public interest. 63. Syracuse, New York. Cox, through an affiliate, is the licensee of WHEN(AM) and WWHT(FM), Syracuse, New York. Following the proposed transfer of control, Cox will acquire from NewCity the licenses for three additional stations: WBBS(FM), Fulton, New York, and WSYR(AM) and WYYY(FM), Syracuse, New York. Cox's showing indicates that the relevant radio market contains at least 11 stations. Under our rules, a party may own, operate, or control up to five commercial radio stations, not more than three of which are in the same service, in any size market, provided that the party may not own, operate, or control more than 50 percent of the stations in a market with 14 or fewer commercial radio stations. See 47 C.F.R. Section 73.3555(a)(1). Cox proposes to own, operate, or control five commercial radio stations, only three of which are in the same service. These stations do not constitute more than 50 percent of the stations in the market. Accordingly, Cox's proposed ownership complies with the numerical local radio ownership limits. In addition, staff analysis indicates that the Cox stations combined will garner 52.4% of radio advertising revenues in the market. This level of post-merger control of radio station advertising in the Syracuse market is higher than any we have previously seen in the context of applications for consent to assign or transfer radio station licenses. In Shareholders of Citicasters, Inc., FCC 96-380 (released September 17, 1996) ("Citicasters"), we approved an assignment that resulted in the post- acquisition entity controlling 49% of the radio advertising market in Cincinnati. Citicasters, at para. 12. However, in that case, the Department of Justice had entered into a divestiture agreement with the parties that reduced the radio advertising share from an originally proposed 56.9% to 49%. Id.at para. 12. Also in that case, the approved acquisition increased the acquirer's market share by only 4.7%. Id. See also S.E. Licensee G.P., FCC 96-464 (released November 27, 1996). The instant case involves an advertising market share only incrementally greater than that involved in the Citicasterscase. We note that, after investigating the antitrust implications of Cox's proposed ownership of these five radio stations in Syracuse, the Department of Justice closed its investigation. Moreover, no objections were received from other stations, advertisers or the public with reference to the Syracuse market. We conclude that, with respect to local radio ownership, nothing in the record in this case suggests that Cox's acquisition of WBBS(FM), WSYR(AM) and WYYY(FM) would be inconsistent with the public interest. 64. San Antonio, Texas. Cox will become the licensee of KKYX(AM) and KCYY(FM), San Antonio, Texas, and KCJZ(FM), Terrell Hills, Texas. Cox's showing indicates that the relevant radio market contains at least seven stations. Under our rules, a party may own, operate, or control up to five commercial radio stations, not more than three of which are in the same service, in any size market, provided that the party may not own, operate, or control more than 50 percent of the stations in a market with 14 or fewer commercial radio stations. See 47 C.F.R. Section 73.3555(a)(1). Cox proposes to own, operate, or control three commercial radio stations, only two of which are in the same service. These stations do not constitute more than 50 percent of the stations in the market. Moreover, our review of the record in this case reveals no other circumstances that would preclude grant of this application. We conclude that, with respect to local radio ownership, Cox's acquisition of KKYX(AM), KCYY(FM) and KCJZ(FM) would serve the public interest. 65. Tulsa, Oklahoma. Cox will become the licensee of KRMG(AM), KWEN(FM), and KJSR(FM), Tulsa Oklahoma as a result of the instant transfer of control application. We have recently given our consent to Cox's proposed acquisition of two additional stations in Tulsa: KGTO(AM) and KRAV-FM. Cox's showing in connection with that later-filed application indicates that the relevant radio market contains at least 11 stations. Under our rules, a party may own, operate, or control up to five commercial radio stations, not more than three of which are in the same service, in any size market, provided that the party may not own, operate, or control more than 50 percent of the stations in a market with 14 or fewer commercial radio stations. See 47 C.F.R. Section 73.3555(a)(1). Cox proposes to own, operate, or control five commercial radio stations, only three of which are in the same service. These stations do not constitute more than 50 percent of the stations in the market. Moreover, our review of the record in this case reveals no other circumstances that would preclude grant of this application. We conclude that, with respect to local radio ownership, Cox's acquisition of KRMG(AM), KWEN(FM), and KJSR(FM) would serve the public interest. 66. License renewal applications for KRMG(AM), KWEN(FM) and KJSR(FM), Tulsa, Oklahoma, were filed for the renewal cycle commencing February 1, 1997 and are pending. Generally, when license renewals and transfer applications involving the same broadcast stations are both pending, the Commission refrains from acting on the transfer applications until after it has taken action on the renewals. In this manner, the Commission preserves the public's ability to challenge the qualifications and performance of the proposed transferor. However, where the pendency of a transfer application overlaps with the renewal cycle of a station or stations involved in a multi- station transfer, as here, the Commission has stated that it will allow the transfer if there are no basic qualifications issues raised against the transferor and transferee in the sale transaction, and if both the transferor and transferee indicate a willingness to assume the consequences associated with the transferee succeeding to the place of the current licensee in the renewal application. Citicasters, para. 24 & n.26; Capital Cities/ABC, Inc., 11 FCC Rcd 5841, 5900-01 (1996); Stockholders of CBS, Inc., 11 FCC Rcd 3733 (1995) ("CBS"). There are no outstanding basic qualifications issues against the applicants in the instant case and Cox has demonstrated that it is otherwise qualified to acquire the stations and that the transfer of control would serve the public interest. But, Cox and NewCity have not stated their willingness to abide by the renewal procedures set forth in CBS. Therefore, our consent to the transfer of control of NewCity to Cox will be subject to the condition that the parties may not consummate the transaction until such time as the Commission has acted upon the pending renewal applications for those stations. If the applicants wish to consummate the transaction prior to that time, they must submit within ten (10) days from the release of this Order, a joint statement indicating their willingness to abide by the procedures set forth in CBS. If an acceptable statement is received within this time period, the condition as to consummation will be rendered moot. In this way, the public interest is served by facilitating this multiple station transfer without detriment to the public's ability to comment on the pending renewal applications. ORDERING CLAUSES 67. Accordingly, IT IS ORDERED, That the Petition to Hold Applications in Abeyance filed by Press Broadcasting Co. on September 19, 1996, when considered as an informal objection, IS HEREBY DENIED. 68. IT IS FURTHER ORDERED, That Cox's request for a permanent waiver of the one-to- a-market rule, 47 C.F.R. Section 73.3555(c), to permit common ownership of Stations WFTV(TV), WHOO(AM), WMMO(FM), WHTQ(FM), WDBO(AM), WWKA(FM), and WZKD(FM), Orlando, Florida, and WCFB(FM), Daytona Beach, Florida, IS HEREBY DENIED. 69. IT IS FURTHER ORDERED, That a temporary conditional waiver of the one-to-a- market rule, 47 C.F.R. Section 73.3555(c), to permit common ownership of Stations WFTV(TV), WHOO(AM), WMMO(FM), WHTQ(FM), WDBO(AM), WWKA(FM), and WZKD(FM), Orlando, Florida, and WCFB(FM), Daytona Beach, Florida, IS HEREBY GRANTED, subject to the outcome in the pending television ownership rulemaking proceeding, Second Further Notice of Proposed Rulemaking in MM Docket Nos. 91-221 & 87-8, FCC 96-438 (released November 7, 1996), and in the pending broadcast attribution proceeding, Further Notice of Proposed Rulemaking in MM Docket Nos. 94-150, 92-51 and 87-154, FCC 96-436 (released November 7, 1996). Should divestiture be required as a result of those proceedings, Cox is directed to file an application for Commission consent to sell the necessary station(s) within six months from the release of the final Orders in those proceedings. 70. IT IS FURTHER ORDERED, That, having found the applicants fully qualified, the above-captioned applications to transfer control of the licensee of WDBO(AM), WWKA(FM), and WZKD(FM), Orlando, Florida, and WCFB(FM), Daytona Beach, Florida from NewCity Communications, Inc. to Cox Radio, Inc., ARE GRANTED, subject to the outcome in the pending broadcast attribution proceeding, Further Notice of Proposed Rulemaking in MM Docket Nos. 94- 150, 92-51 and 87-154, FCC 96-436 (released November 7, 1996). Should divestiture be required as a result of that proceeding, Cox is directed to file an application for Commission consent to sell the necessary station(s)/newspaper within six months from the release of the final Order in that proceeding. 71. IT IS FURTHER ORDERED, That the request for a temporary waiver of the one-to-a- market rule, 47 C.F.R. Section 73.3555(c), to permit common ownership of Stations WSB-TV, Atlanta, Georgia, and WJZF(FM), La Grange, Georgia, IS HEREBY GRANTED, subject to the outcome in the pending television ownership rulemaking proceeding, Second Further Notice of Proposed Rulemaking in MM Docket Nos. 91-221 & 87-8, FCC 96-438 (released November 7, 1996). Should divestiture be required as a result of that proceeding, Cox is directed to file an application for Commission consent to sell the necessary station(s) within six months from the release of the final Order in that proceeding. 72. IT IS FURTHER ORDERED, That the request for a temporary waiver of the daily newspaper cross-ownership rule, 47 C.F.R. Section 73.3555(d), to permit common ownership of Station WJZF(FM), La Grange, Georgia, and the Atlanta Journal and the Atlanta Constitution IS HEREBY GRANTED, subject to: (1) the outcome in the pending radio-newspaper cross-ownership waiver proceeding, Notice of Inquiry in MM Docket No. 96-197, 11 FCC Rcd 13003 (1996); and (2) Cox filing within six months from the release of a final Policy Statement in that proceeding, either (i) a waiver request to permit the continued common ownership of the subject newspapers and WJZF, consistent with any standards developed in that proceeding, or (ii) an application for Commission consent to sell the necessary station(s) or newspaper to come into compliance with the applicable ownership rules. 73. IT IS FURTHER ORDERED, That, the remaining applications to transfer control of NewCity Communications, Inc. to Cox Radio, Inc., ARE GRANTED. 74. IT IS FURTHER ORDERED, That, the transfer of control of NewCity Communications, Inc. to Cox Radio, Inc. IS GRANTED, subject to the condition that the parties may not consummate the transaction until such time as the Commission has acted upon the pending renewal applications for KRMG(AM), KWEN(FM) and KJSR(FM), Tulsa, Oklahoma, unless, within ten (10) days from the release date of this Order, the applicants submit an acceptable joint statement indicating that they are willing to assume the consequences associated with the transferee succeeding to the place of the current licensee in the renewal applications. FEDERAL COMMUNICATIONS COMMISSION William F. Caton Acting Secretary