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The Commission has under consideration: (1) the above-captioned applications for assignment  xtof the licenses of KOLK(FM), Onawa, Iowa from Barnco, Inc. to Waitt Radio, Inc. ("Waitt); (2) Waitt's  xrelated request for a permanent waiver of 47 C.F.R. 73.3555(c), the Commission's one-to-a-market rule,  y_( x8which restricts common radio and television station ownership in the same market; M nZ( xԍ Section 73.3555(c) of the Commission's rules prohibits the common ownership of radio and television stations  x(in the same market if the 2 mV/m contour of an AM station or the 1 mV/m contour of an FM station encompasses  xthe entire community of license of a television station or, conversely, if the Grade A contour of a television station encompasses the entire community of license of an AM or FM station.  (3) a timely Petition  xto Deny the application from Saga Communications, Inc. ("Saga"), licensee of WNAX(AM) and WNAX y_9( xFM, Yankton, South Dakota;9M nZ( xԍ Saga's Yankton stations and KOLKFM, which Waitt seeks to acquire, are all part of the Arbitron Sioux City radio market. and (4) various responsive and supplemental pleadings. For the reasons set forth below, we deny the Petition and grant the application and waiver request.  y_(  2. Waitt Broadcasting, Inc., whose ownership is identical to that of Waitt Radio, Inc., is the  xlicensee of UHF television station KMEG(TV) (CBS affiliate), Sioux City, Iowa. Grant of the instant  xjassignment applications would create a new radiotelevision combination because the 1 mV/m contour of  x KOLK(FM) entirely encompasses Sioux City, Iowa, KMEG(TV)'s city of license. In its Petition to Deny,  xSaga asserts that Waitt's waiver showing is insufficient to show that the transaction would be consistent  y_(with competition and with the public interest. See 47 U.S.C.  309(a).   y_;(?  Request for Waiver and Opposition Thereto Đx  y_ (  N3. Waitt bases its waiver request on the onetoamarket waiver standards adopted in the Second  y_!( x(Report and Order in MM Docket No. 877, 4 FCC Rcd 1741 (1989) ("Second Report and Order"), recon."!, * *,, !"  y_( xgranted in part and denied in part, 4 FCC Rcd 6489 (1989) ("Second Report and Order Recon."). Under  xthese criteria, the Commission presumptively favors waiver requests involving station combinations serving  x the top 25 markets where there are at least 30 separately owned, operated, and controlled broadcast  y_g( xlicensees or "voices" after the proposed combination ("top 25 market/30 voice standard").g nZ( xԍ Pursuant to the statutory directive "to extend its [onetoamarket] waiver policy to any of the top 50 markets,  xconsistent with the public interest, convenience and necessity," under the Telecommunications Act of 1996, Pub. L.  xZNo. 104104,  202(d), 110 Stat. 56 (1996), the Commission is considering a proposal to implement extension of  nZ'( xthe waiver policy in the Review of the Commission's Regulations Governing Television Broadcast Ownership, Second  nZ(Further Notice of Proposed Rule Making, MM Docket Nos. 91221 and 878, 11 FCC Rcd 21655, 21685 (1996). The  xCommission also favors waiver requests involving "failed" broadcast stations, that is, stations that have  xVnot been operating for a substantial period of time or that are in bankruptcy proceedings. Otherwise, the  y_(requests must be evaluated under a casebycase approach. See 47 C.F.R.  73.3555, note 7.   4. We shall review Waitt's waiver request under the casebycase standard because Sioux City,  xIowa is the 141st largest Designated Market Area ("DMA") in the country and there is no claim that  xKOLK(FM) is a "failed station," as defined by the Commission. Under the casebycase standard, the  x~Commission makes a public interest determination based upon the following five criteria: (1) the potential  x~public service benefits that will arise from the joint operation of the facilities involved, such as economies  xof scale, cost savings and programming and service benefits; (2) the types of facilities involved; (3) the  xnumber of media outlets owned by the applicant in the relevant market; (4) the financial difficulties of the  xbstations involved; and (5) the nature of the relevant market in light of the level of competition and  y_ ( xpdiversity after joint operation is implemented. Second Report and Order, 4 FCC Rcd at 175354. In  xenunciating the five factors to be considered under the case-by-case standard, the Commission noted that  xnot all five factors must be satisfied in each case, but rather the overall consideration of these factors must  y_7( xweigh in favor of granting the waiver request. Second Report and Order Recon., 4 FCC Rcd at 6491.  xIn support of its waiver request, Waitt submits a showing which addresses each of the five factors. Saga's Petition to Deny challenges several of these showings.  y_k(  l5. Benefits of Joint Operation. Waitt estimates direct annual savings of approximately $159,000  xresulting from the sharing of technical facilities and consolidation of staffs. Specifically, these cost  xsavings include $96,000 in reduced payroll expenses from combining and consolidating the stations'  xadministrative and staff functions; $23,000 through elimination of interest expense; $25,000 in professional  xfees to station staff now on salary or retainer; $5,000 in rent through colocation of KMEG and KOLK  xLoffices and studios; and $10,000 by consolidating the stations' news and weather functions. Waitt states  x.that it will put these savings back into the stations through major upgrades to their technical, production,  xLand operational facilities. Waitt states that it plans to construct a new studio and production complex for  xVthe FM/TV combination, using the cost savings as well as an additional investment of approximately five  xmillion dollars. The new facilities would include a stateoftheart news production facility for both  xKMEG(TV) and KOLK(FM). According to Waitt, KOLK(FM) does not currently offer local news or  xweather, and KMEG(TV) broadcasts minimal news and weather. Waitt says that it will enhance both  xstations' informational programming and community service efforts by providing, for the first time,  x8regular, daily, live, local news and weather on the radio station, and by initiating more indepth coverage  xof local news and consumer issues and affairs on the television station. Waitt also states that the technical  xenhancements will enable both stations to instantaneously provide information on breaking news of  xLcommunity interest and on weatherrelated and other local emergencies. Further, Waitt states that it will  x.make the stations available to sponsor and promote community events and will meet regularly with local  xLleaders to design and refine issueresponsive public affairs programs for the community. The Petitioner,  x:Saga, questions whether the combined programming functions of the two stations would distance"!x,l(l(,, " KOLK(FM) from its obligation to serve the needs and interests of the residents of Onawa.  y_(  6. Types of Facilities/Other Media Outlets. KOLK(FM), the radio station that Waitt seeks to  x8acquire, is a Class C1 FM station licensed to operate on 102.3 MHz at 100 kW effective radiated power  x("ERP") from an antenna at 196 meters height above average terrain ("HAAT"). Waitt has been brokering  xthe station since August 1, 1998 pursuant to a Time Brokerage Agreement with the current licensee.  x4KMEG(TV), a CBS affiliate, is a UHF station which is currently operating on channel 14 at 380 kW  xvisual ERP from an antenna at 351 meters HAAT. On November 24, 1998 the Commission approved an  xpupgrade of KMEG's facilities to 5,000 kW at 596 meters HAAT. Waitt maintains that, even with the  xupgrade, KMEG's UHF facilities will be inferior to the two VHF network affiliated stations in the Sioux  xCity DMA. Waitt states that KMEG's upgraded facilities will be essentially identical to the other UHF  xcommercial station, but will exceed the facilities of the noncommercial educational television stations in  xthe DMA. Waitt reports that it is also the licensee of the following three translatorlow power stations,  xused to rebroadcast KMEG's signal in the surrounding area: K40CO, Storm Lake, Iowa; K55FL, Spencer,  xIowa; and K30BP, Norfolk, Nebraska. Waitt reports that it holds no other media interests in the Sioux City DMA, the 141st largest.  y_ (  r7. Economic Status. Waitt indicates that none of the stations in its proposed combination is a  x"failed station," as defined by the Commission. It indicates, however, that KOLK(FM) is experiencing  xfinancial difficulties. It states that the station, which began operating in November 1995, has never  xoperated at a profit, and is currently losing about $20,000 per month. Waitt thus maintains that, although  xKOLK(FM), is currently operating, it could not continue to operate much longer were it not for the  xLproposed sale. In the Petition to Deny, Saga contests Waitt's assertions that KOLK(FM) is experiencing  xLfinancial difficulties. According to Saga, Waitt has not provided adequate documentation of its claims of  xstation losses. Saga also believes there is an inconsistency between Waitt's claims of station losses and Waitt's willingness to invest considerable monies to purchase the station and to improve its facilities.   y_(  8. Competition and Diversity in the Market. Waitt asserts that its acquisition of KOLK(FM) will  y_l( xnot affect diversity and competition in the relevant market.xl nZ( x ԍ As to the market definition within which to count the number of broadcast stations in the context of a  xone-to-a-market waiver, the Commission considers "the relevant TV metro market for radio stations and the relevant  nZd( xADI [Arbitron Area of Dominant Influence] TV market for TV stations." Second Report and Order, 4 FCC Rcd  x at 1760 n.101. However, since Arbitron no longer compiles ADI data, we now accept showings using the Nielsen  nZ( xDMA in determining the number of broadcast "voices" in the relevant market. See Media/Communications Partners  nZ( xhL.P., 10 FCC Rcd 8116 n.3 (1995); see also Further Notice of Proposed Rulemaking, MM Dockets Nos. 91-221 and 87-8, 10 FCC Rcd 3524, 3539 n.59 (1995).  Waitt, says that there are seven full powered  xtelevision stations, including KMEG(TV) in the Sioux City DMA. Waitt states that two of the other  xtelevision stations are commercial VHF network affiliated television stations, and that one is a commercial  x\UHF station that recently affiliated with the Fox network. The remaining three television stations are  xnoncommercial educational. With respect to radio stations, KOLK(FM) is located in Monona County,  x~which is part of the Sioux City DMA but is not part of any defined television metro market. Under these  xVcircumstances we count as the market for radio stations, those radio stations in the Sioux City DMA that  xVare licensed to communities in Monona County or that place a principal community service contour over  y_( xMonona County. See Gadsden Broadcasting Co., 10 FCC Rcd 8741, 8743 and n.4 (1995); Triad  y_( xSkywaves, Inc., 12 FCC Rcd 6102, 6105 (MMB 1997). Waitt had originally counted stations pursuant to  x(a different method, but amended its showing at the staff's request. According to Waitt's amended showing,  xthere are 13 radio stations, including KOLK(FM), that provide principal community service within  x~Monona County, Iowa, in which KOLK(FM) is located. Waitt states that after the proposed transaction" ,l(l(,,^"  xthere would be a total of 20 broadcast stations licensed to 16 separate owners. Waitt also indicates that  x.there is a variety of other media available. Specifically, Waitt reports that the television DMA is served,  y_( xin whole or in part, by 34 newspapers including the daily Sioux City Journal and the weekly Sioux City  y_g( xGlobe. It maintains that at least two cable television companies serve the immediate Sioux City  xmetropolitan area, with a 66.1% cable penetration rate. With regard to the impact on advertising revenue  xshares in the market, Waitt states that KMEG(TV)'s share of advertising revenue is 17.4%, as reported by  x the National Association of Broadcasters in 1996. Waitt maintains that KMEG(TV) is not dominant  xbecause it ranks third among the three Sioux City commercial network affiliates and received an audience  xshare of 9%. With respect to radio, Waitt's waiver request is silent as to KOLK(FM)'s advertising revenue  xshare. Waitt maintains nondominance in radio because, in the Spring 1998 Arbitron survey, KOLK  xreceived a 4.1% audience share and was tied for eighth place among 14 stations in the Arbitron Sioux City radio market.  y_i (  N9. Saga objects to an earlier showing by Waitt, which counted all 39 radio stations within the TV  xRDMA as competitive with KOLK(FM). Saga argues that the number of relevant radio competitors is  xcloser to 14, the number of radio stations within the Sioux City Radio Market, as reported by BIA  xResearch, Inc. Thus, according to Saga, Waitt's original data does not provide an accurate picture of radio  x\competition, and the Commission was correct to request additional information. Saga's supplemental  xcomments do not, however, focus on the factual merits of Waitt's revised showing which, using a different method of counting, arrives at fewer radio stations than originally counted by either Saga or Waitt.   y_(` ` P Discussion ă  y_k(   10. OnetoaMarket Waiver. In evaluating a request for a permanent waiver of the onetoa xBmarket rule, the Commission's goal "is to permit the public to benefit from such efficiencies of operation  xas may be achieved through the use of common facilities and staff, consistent with the maintenance of  y_( x~diversity and vigorous competition within the market areas involved." Second Report and Order Recon.,  x4 FCC Rcd at 6491. The Commission has recognized that "[i]n smaller markets, where competition is  xlusually more limited, of particular importance would be demonstrated financial difficulties and the  xpractical question of whether a waiver grant . . . would in fact increase or decrease the vigor of  y_( xcompetition and diversity in the market." Id. at 64916492. We conclude that Waitt's showing in support  xof a waiver of the onetoamarket rule meets our casebycase criteria, and that a permanent waiver in  xthis instance is consistent with the public interest and would not have an adverse effect on diversity and competition in the Sioux City DMA.  y_(   11. Waitt demonstrates that common ownership and joint operation of KMEG(TV) and  xKOLK(FM) will result in significant cost savings and programming and service benefits. Waitt has  xprojected annual savings of approximately $159,000 resulting from the consolidation of operating facilities  xand personnel. Waitt has represented that these cost savings will enable it to improve TV and radio  xprogramming, especially in the areas of local news and weather, which have been minimal or absent from  x the stations at issue. Waitt will also improve the facilities and equipment of both stations, making it  xpossible for both stations to provide more live programming in response to local emergencies. Finally,  xWaitt states that with the combined resources of its proposed TV and radio combination, it will expand  xits participation in local community events by increasing its support of area civic and nonprofit groups.  xjWe note Saga's concern that Waitt's resulting programming might be aimed exclusively at Sioux City, the  x$television station's city of license and the location of the radio station's current and future studios, rather  x4than at Onawa, the radio station's city of license, which it is required to serve. However, we find no  xVsupport for that allegation, and we will not otherwise presume that the radio station's proposed enhanced  xinformational programming including news, weather, and coverage of community events, will not address  xzissues and problems of concern to the residents of Onawa. KOLK(FM), like all broadcast stations, is"=',l(l(,,H&"  xobliged to maintain quarterly issueresponsive programming lists documenting its service to its community  xof license. Moreover, KOLK(FM)'s performance with respect to the community of Onawa would be  y_(subject to Commission review at the time of license renewal. See 47 C.F.R.  73.3526(a)(8)   y_4(   12. With regard to technical facilities, the Commission aims to predict and avoid any significant  y_( xadverse effects on diversity or competition from too powerful a combination. See Great American  y_( xzTelevision and Radio Co., Inc., 4 FCC Rcd 6347, 6349 (1989). Our independent analysis of Waitt's  xshowing indicates that KOLK(FM), is a Class C1 FM station and that there are at least 4 comparable or  x:superior Class C1 FM stations providing principal community service in Monona County. As for  xKMEG(TV), a UHF TV station (CBS affiliate) operating on channel 14, and recently authorized to  xLupgrade its facilities, our independent analysis indicates that there are two VHF stations that are affiliates  xof NBC and ABC, and a UHF station that recently became affiliated with Fox, all with facilities that are  xcomparable or superior to the technical facilities of KMEG(TV). The proposed waiver would give Waitt  xcontrol of one radio station and one full power TV statio. Waitt's only other broadcast interests in the  y_6 ( xSioux City market are low power, i.e. low power television stations that rebroadcast the signal of its full  x4power TV station. We conclude that the technical capabilities of the proposed combination does not present issues of market dominance inconsistent with the public interest.  y_j(   13. With respect to financial conditions, as stated earlier, Waitt does not claim that either of the  xstations in its proposed combination is a failed station. In view of the fact that neither station is  x~considered failed, we do not give great import to the ancillary disagreement between Waitt and Saga over  xthe extent to which the radio station may or may not nevertheless be experiencing financial difficulties.  xAs we previously have indicated, not all five factors need be present to justify grant of a waiver, and have  y_k( xgranted a number of waivers in the absence of financial distress. Second Report and Order Recon., 4 FCC  y_8( xRcd at 6491. See, e.g., DeArias, 11 FCC Rcd at 3666; Alta Gulf FM, Inc., 10 FCC Rcd 7750, 7751  y_((1995); Secret Communications Ltd., 10 FCC Rcd 6874, 687779 (1995).   y_(   14. Regarding Waitt's media holdings, we find that the proposed combination would not create  xany undue concentration of ownership in the relevant market. Our independent analysis of Waitt's  x&showing, indicates that, after the assignment is approved, the relevant market will be served by 4  xcommercial television stations (2 VHF and 2 UHF), 3 noncommercial educational television stations (1  xVVHF and 2 UHF), 9 commercial radio stations (6 FM and 3 AM), and 1 noncommercial educational FM  xradio station. The number of radio stations that we find eligible for inclusion in this count is fewer than  y_m( xthat claimed either by Waitt or by Saga,sm nZ( xԍ We have excluded 3 AM stations originally claimed by Waitt. Stations WOW, Omaha, Nebraska, KFAB,  xPOmaha, Nebraska, and KTIC, West Point, Nebraska all provide principal community service to Monona County but  xare themselves located in counties that fall outside of the Sioux City DMA. Our analysis also contains fewer  xstations than counted by Saga, because Saga examined the Arbitron radio metro market, while we considered only the stations within the DMA that place a community grade signal over Monona County.s but the overall media diversity in the relevant market is  xnevertheless sufficient. Upon consummation of the proposed transaction, there will be a total of 17  x.broadcast stations licensed to 13 separate owners in the 141st largest DMA. Our analysis further shows  y_( xthat in the Sioux City DMA there is a cable penetration rate of 65%Kx nZ#(ԍ 1998 TV & Cable Factbook at I21.K and five daily newspapers. nZ|%( xVԍ These include The Sioux City Journal, The Spencer Daily Reporter, The Storm Lake PilotTribune, The Le  nZD&(Mars Daily Sentinel, and The Daily Times. Bacon's Newspaper Directory (1998). This  xlevel of competition after the proposed combination is consistent with the level we have approved in"` ,l(l(,,$"  y_( xprevious waiver cases involving similar markets. See, e.g. Pennino Broadcasting Corp., 12 FCC Rcd  y_( x10752 (1997) (12 "voices" in 164th DMA); Twenty First Century Broadcasting, Inc., 12 FCC Rcd 6974  y_( x(1997) (12 "voices" in the 140th DMA); Perry Television, Inc., 5 FCC Rcd 1667 (Rev. Bd. 1990) (14 "voices" in the 130th ranked market).   y_(   15. With respect to economic concentration and competition, we usually consider the combined  y_( xadvertising revenue share of the proposed radio/television combination in the relevant market. See, e.g.  y_( xnStockholders of Infinity Broadcasting Corp., 12 FCC Rcd 5012 (1996). Our independent analysis indicates  xthat KMEG(TV) garners 21.2% of the TV advertising revenues, as reported in the BIA Publications, Inc.'s  y_5( xz("BIA") Television Master Access Database.q5 nZ (ԍ BIA provides TV advertising revenue data based on 1997 revenue figures.q KOLK(FM), gets less than 1% of the radio advertising  xrevenues in the Arbitron radio market, as reported in the BIA Radio Master Access Database. The  xBcombined radio/TV advertising revenue share for Waitt's proposed combination would be approximately  y_ ( x16.3%. This figure is consistent with onetoamarket waiver requests previously approved. E.g., S.e.  y_i ( xLicensee G.P., 11 FCC Rcd at 16,734 (1996) (24.2% combined television and radio advertising share).  xBased on the advertising revenue share in the present case, and the fact that the stations at issue compete  xwith comparable or technically superior facilities, we conclude that the proposed combination will not have  xVan adverse effect on competition in this area. Overall, Waitt has demonstrated that economic efficiencies  xHand public interest benefits will be gained and such benefits support the grant of a permanent waiver.  xBased on the totality of circumstances, and our treatment of waiver requests from licensees serving similar  xsize markets, we conclude that grant of the onetoamarket permanent waiver request would be in the public interest. ` `  y_(  16. Accordingly, IT IS ORDERED, that the Petition to Deny filed against the abovecaptioned assignment applications filed by Saga Communications, Inc. IS HEREBY DENIED.  y_(  17. IT IS FURTHER ORDERED, that the request for permanent waiver of the Commission's  x2one-to-a-market rule, 47 C.F.R. Section 73.3555(c), to permit common ownership of KOLK(FM), Onawa, Iowa and KMEG(TV), Sioux City, Iowa IS HEREBY GRANTED.   `18. IT IS FURTHER ORDERED, that having found the applicants fully qualified, the  xabove-captioned application to assign the license of KOLK(FM), Onawa, Iowa from Barnco, Inc. to Waitt Radio, Inc. IS HEREBY GRANTED.  ` `  ,hhhFEDERAL COMMUNICATIONS COMMISSION  ` `  ,hhhMagalie Roman Salas ` `  ,hhhSecretary " X,l(l(,,^"  V(v  ,~&Lmarglsxnmargrsxnmargtsxnmargbsxn,#xT?Y\XY#DISSENTING STATEMENT OF COMMISSIONER GLORIA TRISTANI   V( #xT?Y\XY#In re Applications of Barnco, Inc. and Waitt Radio, Inc., File No. BALH980721EA    V( xxFor the reasons set forth in my dissenting statement in In Re Applications of  V( xUnited Broadcasting Company, Inc, et al., 13 FCC Rcd 21563 (1998), I do not  xZbelieve that the Commission applies the fivepart permanent waiver standard  xwith sufficient rigor. I therefore respectfully dissent. I do note, however, that  xmy concerns are somewhat ameliorated by the applicant's specific and laudable  xcommitment to provide, for the first time, regular, daily, live local news and weather on KOLK(FM).