FCC Record, Volume 1, No. 5, Pages 786 to 1040, November 24 - December 5, 1986 Page: 1,020
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Federal Communications Commission Record
Federal Communications Commission
Washington, D.C. 20554
In re Application of
AMATURO GROUP, INC.
and File No. BALCT-860716KG
CITADEL COMMUNICATIONS, LTD.
For Assignment of License
of Station KBGT-TV, Channel 8
MEMORANDUM OPINION AND ORDER
Adopted: November 12, 1986Released: November 13, 1986*
By the Commission:
1. The Commission has before it for consideration: (1)
an application to assign the license of television Station
KBGT-TV, Channel 8, Albion, Nebraska, from Amaturo
Group, Inc. (Amaturo) to Citadel Communications, Ltd.
(Citadel); (2) a petition to deny the assignment application
filed by KTIV Television Company (KTIV), licensee
of Station KTIV(TV), Sioux City, Iowa; and (3) responsive
2. Citadel is the licensee of Station KCAU-TV, Sioux
City, Iowa. The acquisition of KBGT-TV will result in an
overlap of the predicted Grade B contours of those stations.
Citadel proposes to operate KBGT-TV "primarily as
a satellite" of KCAU-TV and requests that the assignment
application be granted pursuant to the "satellite exception"
provision of the Commission's duopoly rule for
television stations, Section 73.3555(a)(3). Section
73.3555(a)(3) of the Commission's Rules provides that
"no license for a television broadcast station shall be
granted to any party . . . if such party director indirectly
owns, operates or controls one or more television broadcast
stations and the grant of such license will result in
any overlap of the Grade B contours of the existing and
proposed stations . . . ." However, Note 5 to Section
73.3555 states that "paragraph (a) through (d) of this
Section will not be applied to cases involving television
stations which are primarly 'satellite' operations," and
"such cases will be considered on a case-by-case basis in
order to determine whether common ownership, operation,
or control of the stations in question would be in
the public interest."
3. In support of its proposal to operate KBGT-TV as
primarily a satellite of KCAU-TV, Citadel has submitted
an engineering study that shows that the Grade B contour
of KCAU-TV encompasses 44,050 square kilometers and a
population of 626,324 persons. The study indicates that
the Grade B contour of KBGT-TV encompasses 45,240
square kilometers and a population of 548,839 persons.
The overlap area would encompass 8,490 square
kilometers. The population contained in this area is
86,359 persons. With respect to the Grade B service of
KCAU-TV, 19 percent of the area and 14 percent of the
population will receive duplicated coverage. With respect
to KBGT-TV, 19 percent of the area and 16 percent of the
population will receive duplicated coverage.
4. Citadel contends that, for all but the last two years of
its 22 years on the air, KBGT-TV has operated as a
satellite. The present licensee, Amaturo, has informed
Citadel that by the year's end KBGT-TV will have lost
nearly $5,000,000 since it began independent operation in
1983. In fact, Amaturo has submitted an affidavit from its
President which indicates that the heavy financial losses
sustained from Amaturo's operation of KBGT-TV have
made it necessary to either sell the station or take it off
5. Citadel states that KBGT-TV is the only television
station licensed to Albion. No other station provides
Grade B coverage to Albion and only three stations
provide Grade B service to Boone County, in which
Albion is located. If KBGT-TV were to go dark, all of
Albion and much of Boone County would be without
Grade B service.2
6. Citadel maintains that Albion cannot support the
operation of an independent television station. Reportedly,
this is caused by the decline of an already small
advertising and audience base combined with a troubled
economy. From 1970 to 1980, Albion's population has
declined by 3.7 percent to 1,977 people. According to
Citadel, the region, which is in large part dependent on
agriculture, continues to suffer economic difficulties. In
addition, Citadel asserts that justification for a satellite
operation may be inferred form Albion's market size.
Capitol Broadcasting Co., 54 RR 2d 8I1, 814, n.9 (1983).
Albion is unranked as an independent television market.
However, Citadel states that the result of totaling the Area
of Dominant Influence (ADI) television households in the
counties to which it provides significant Grade B coverage
and that are otherwise considered part of the LincolnHastings-Kearney
ADI,3 would make Albion the 197th
7. Citadel states that, although Albion's market size and
past history justifies a 100 percent satellite operation, it
proposes some local origination from KBGT-TV. Furthermore,
Citadel contends that KBGT-TV's viewers will
benefit from news and public affairs programs of regional
significance locally produced at KCAU-TV. Finally, Citadel
offers that its proposal will result in continued service
in areas that would otherwise go unserved.
8. KTIV, licensee of Station KTIV-TV, Sioux City, Iowa,
alleges that grant of the assignment application would not
be in the public interest. Citadel proposes operation of
KBGT-TV as "primarily a satellite" of its commonly owned
station KCAU-TV, Sioux City, Iowa, an ABC affiliate.
When the application was filed, ABC had not consented
to the rebroadcast of ABC programming on KBGT-TV.
Consequently, KTIV asserts that Citadel has failed to show
that KBGT-TV will be able to comply with the five
percent limit on program origination, so as to qualify as
"primarily a satellite." Therefore, KTIV avers that KBGTTV
does not qualify for the Note 5 exception to Section
73.3555 of the Commission's Rules. However, on September
10, 1986, Citadel submitted a copy of a letter in
which ABC indicates its willingness to affiliate with
KBGT-TV. Accordingly, the petition to deny has become
moot and will be denied.
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United States. Federal Communications Commission. FCC Record, Volume 1, No. 5, Pages 786 to 1040, November 24 - December 5, 1986, book, December 1986; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc1583/m1/239/: accessed November 16, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.