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S-= X- #&a\  P6G;u&P#Federal Communications Commission`}(#DA 981096  yxdddy  S- =#&a\  P6G;u&P#  v3 #X\  P6G;ɒP#Before the  S-#&a\  P6G;u&P# Federal Communications Commission  S-" Washington, D.C. 20554 ă  S`-#f\  PCu&P#In re Amos B. Hostetter, Jr.R)h  S8-R)hCSR5241X Petition for Special ReliefR) Requesting Waiver of 47 C.F.R.  76.501(a)R)  Sp-< ORDER TP  S -X` hp x (#%'0*,.8135@8:a yOH-ԍ47 C.F.R.  76.501.> The petition is unopposed.  S-M# BACKGROUND ă x` `  S@- ` x2.` ` Hostetter is a trustee of the WGBH Educational Foundation ("the Foundation"), the  S- xlicensee for three noncommercial broadcast television stations in the greater Boston and Springfield areas.Xa yO- xԍPetition at 2. The stations are WGBH, channel 2, Boston; WGBX, channel 44, Boston; and WGBY, channel 57, Springfield.  xU S West, Inc. ("U S West"), owns numerous cable systems within the Grade B contours of the three  xstations. While Hostetter owns shares of U S West common stock, he currently does not own more than  S- xl5% of U S West's common shares.a {O- xԍSee letter dated June 5, 1998 from David M. Don to Magalie Roman Salas, Secretary, Federal Communications Commission. Thus, Hostetter's position as a trustee of the Foundation and  Sx- xownership of U S West common stock do not currently contravene the crossownership rules.x a yO"!- xԍOwnership and other cognizable interests under Section 56.501 of the Commission's rules include owning more than 5% of a company's stock and serving on a company's board of directors. 47 C.F.R.  76.501 notes 2(a), 2(h). However,  xthis summer, U S West will spinoff MediaOne Group, Inc. ("MediaOne"). MediaOne will retain  xownership of the cable systems, and, under the terms of the transaction, Hostetter will then own 8.5% of  S- xthe newly formed MediaOne's common shares.6b a yO&-ԍPetition at 2.6 Hostetter will then own over 5% of the cable operator" 0*''II\"  xthat falls within the grade B contours of three stations of which he is trustee, and the Commission's cross xownership rules will bar the cable operator from carrying the three stations' signals unless Hostetter resigns his position as a trustee of the Foundation.  S`- ` x3.` ` Hostetter states that a waiver of the crossownership rules is appropriate because the  xobjectives of the rules to promote competition and maintain a marketplace for diverse ideas would  xnot be served by the application of the rules in his case. Because the stations are noncommercial, they  xwould not compete with the cable systems or other broadcast stations carried on the cable systems. In  xzaddition, Hostetter states that he is a passive investor in MediaOne and will not serve as a director or  S-officer of MediaOne or participate in the operations of MediaOne in any other way.8/p yO -ԍPetition at 34.8  SH - ` ox4.` ` Hostetter asserts that if he is forced to resign, the Foundation would lose the benefit of  xhis experience from being the chief executive officer of Continental Cablevision, Inc, for over thirty  S - xkyears.6 X/p yO-ԍPetition at 5.6 The Foundation states that Hostetter's wealth of experience will assist it in navigating critical  x[issues of funding and management of public television and the uncertainties facing the Foundation by the  S -broadcast community's transition to digital broadcasting. /p {O0- xԍSee letter dated May 27, 1998 from Edith L. Dabney to William E. Kennard, Chairman, Federal Communications Commission. .  SX-( DISCUSSION ă  S-x5.` ` The Commission's crossownership rule 47 C.F.R.  76.501(a) \B/p yO- xԍSection 613 of the Communications Policy Act of 1984 (47 U.S.C. 533) which acts as the statutory basis for  {O- xthe cable televisionbroadcast station crossownership ban, was modeled after Section 76.501(a).  In Re Kilgore Cable  {O|-TV Company, 11 FCC Rcd. 1684 at  2 (1996).  reads in relevant part:  `XxNo cable television system . . . shall carry the signal of any television broadcast station  if such a system directly or indirectly owns, operates, controls, or has an interest in a TV  Qbroadcast station whose predicted grade B contour . . . overlaps in whole or in part the service area of such system . . . .   x[ $`W  $`W  $`W The policy goals of Section 76.501(a) are to increase competition in the economic marketplace and in the  S- xmarketplace of ideas. f /p {O!-ԍIn re University of Arizona, 12 FCC Rcd. 11458 at 6 (1977); Kilgore Cable, 11 FCC Rcd. at 5. In cases where enforcement of the ban on crossownership does not promote these" 0*%%II"  S- x.goals, a waiver of these rules will be entertained by the Commission. \/p {Oh- xԍArizona, 12 FCC Rcd. at 6; In re Cablevision of Augusta, Inc., 62 FCC 2d 184 (1977), citing Second Report  {O2-and Order, 23 FCC 2d 816, 821 (1970), recon. denied, 39 FCC 2d 377 (1973).  The Commission may waive any  S-rule, in whole or in part, for good cause.C Z/p {Od- xԍ47 C.F.R.  1.3; see also 47 C.F.R.  76.7(a)(1) ("On petition by a cable television system operator. . . or by  xany other interested person, the Commission may waive any provision of the rules relating to cable television systems. . . .").C  S- ` Ax6.` ` In the instant case, the stated policy objectives of the crossownership rules would not be  ximpaired by granting a waiver and allowing Hostetter to simultaneously own stock in MediaOne and sit  xon the Foundation's board of trustees. The Foundation's three public television stations are  xnoncommercial, and Hostetter will own no more than 8.5% of MediaOne's common shares. Moreover,  xjHostetter asserts that he will remain a passive investor in MediaOne. Thus, Hostetter does not have the  xsame incentives to engage in the anticompetitive conduct that the rules are designed to address. Waiver  xof the television cable crossownership rule is particularly appropriate where the television stations  xinvolved are noncommercial, because "`they are not engaged in economic competition visavis other  SH -media' in the area the cable system will serve." H /p {O-ԍArizona, 12 FCC Rcd. at 7 (quoting In re All Clear Cable TV, 50 FCC 2d 693, 694 (1975)).  S - ` }x7.` ` In addition, waiving the rules in this instance will benefit the public. Compelling Hostetter  xto resign from the Foundation would deprive three noncommercial broadcast stations of Hostetter's  S -considerable, unique experience in communications.Q /p {O-ԍSee All Clear, 50 FCC 2d at  3.Q  SX-Te  ORDERING CLAUSE T  S- ` TPx8.` ` Accordingly, IT IS ORDERED that the Petition for Special Relief Requesting Waiver  S-of 47 C.F.R.  76.501(a) filed by Amos B. Hostetter, Jr. is GRANTED .  S- ` _x9.` ` This action is taken pursuant to authority delegated by Section 0.321 of the Commission's Rule's, 47 C.F.R.  0.321 (1996). x` `  hh@FEDERAL COMMUNICATIONS COMMISSION x` `  hh@John E. Logan x` `  hh@Acting Chief, Cable Services Bureau