FCC Record, Volume 2, No. 1, Pages 1 to 409, January 5 - January 16, 1987 Page: 107
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Federal Communications Commission Record
Federal Communications Commission
Washington, D.C. 20554
In re Application of
B.G.S. BROADCASTING, INC.
Tel-AM HOLDING, INC.
For Assignment of File No. BAPCT-860605KF
Construction Permit for Station WWKI-TV,
Channel 29, Kokomo, Indiana
B.G.S. BROADCASTING, INC.
For modification of
the Facilities of the
Construction Permit for
Station WWKI-TV, Channel
File No. BMPCT-860630KJ
proposals 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 WWKI-TV,
Channel 29, as primarily a satellite of WTTV(TV), the
Assignee has submitted an engineering study that shows
that the Grade B contours of WWKI-TV encompasses
4,553 square miles and a population of 1,052,464. The
study indicates that the Grade B contour of WTTV(TV)
encompasses 12,640 square miles and a population of
2,029,600. The overlap area would encompass 1,867
square miles and a population of 612,908. The overlap
area represents 30.2 percent of the population and 14.8
percent of the area of WTTV(TV)'s Grade B contour and
58.2 percent of the population and 41 percent of the area
of the WWKI-TV's Grade B contour.
4. A detailed economic feasibility study for a fullservice
independent station on Channel 29 was undertaken
by the Assignor in connection with its application
for the construction permit. The study concluded that a
full-service station would operate at a large deficit, with
no substantial increase in revenues expected. In seeking
the construction permit for Channel 29, the Assignor
requested waiver of the Commission's cross-ownership
rule, Section 73.3555(b)(2), to permit common ownership
of the television station with WWKI(FM), which is licensed
to Kokomo. In granting the television construction
permit for Channel 29 to the Assignor, based on a oneto-a-market
UHF exception to the Commission's crossownership
rule, the Administrative Law Judge (A.L.J.)
MEMORANDUM OPINION AND ORDER
Adopted: December 23, 1986 Released: January 9, 1987
By the Commission:
1. The Commission has before it for consideration the
above-captioned applications for modification of facilities
and to assign the construction permit of unbuilt Station
WWKI-TV, Kokomo, Indiana, from B.G.S. Broadcasting,
Inc. (Assignor) to Tel-Am Holding, Inc. (Assignee). The
Assignee is licensee of Station WTTV(TV), Bloomington,
Indiana (Channel 4, Ind.), and the acquisition of WWKITV
will result in an overlap of the predicted Grade B
contour of that station with that of the commonly owned
WTTV(TV). The Assignee proposes to operate WWKI-TV
"primarily as a satellite" of WTTV(TV) and requests that
the assignment application be granted pursuant to the
"satellite exception" provision to the Commission's duopoly
rule for television stations, Section 73.3555(a)(3).'
2. Section 73.3555(a)(3) of the Commission's Rules
provides that no license for a television station shall be
granted to any party if such party directly or indirectly
owns. operates or controls one or more television broadcast
stations and the grant of such license will result in
overlap of the Grade B contours of the existing and
proposed stations. However. Note 5 to the rule exempts
television stations that are "primarily satellite operations"
from a strict application of the Grade B overlap prohibition.
Under Note 5, the Commission considers satellite
BGS has argued and successfully demonstrated that
it is unlikely that Kokomo, with its population, will
ever have a station on Channel 29 unless the Commission
allows common ownership of that television
station and a local radio station. The economic
profiles it has submitted show that significant
economies of operation will result if such common
ownership is permitted. I B. G. S. Broadcasting, Inc.,
MM Docket No. 83-1316, FCC 84D-44 at paragraph
8 (released June 15, 1984).]
The A.L.J. explained that Kokomo, which had a population
under 50,000 persons, was well served by other
television and radio stations originating from Indianapolis,
Lafayette and Anderson, Indiana. Id. at paragraph
7. The A.L.J. also determined that Kokomo could
not support an independent television station, after noting
that the allocation had remained vacant for 26 years since
1957, when the channel was allocated. Id. at paragraph
5. Today, Kokomo remains a small community having
a population of approximately 45,385 persons. As set
forth in a recent study conducted for the Assignee by an
economic consulting firm, the economic condition of the
Kokomo area continues to undermine the viability of a
television station. The unemployment rate is 10.1 percent,
which is greatly in excess of the Indiana rate of 7.4
percent and the national rate of 7.5 percent. With reliance
on steel, auto and farm industries, the Kokomo
economic market is unstable. Further, the study projected
that gross revenues in the first year of operation of an
independent television station would be $182,000 and
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United States. Federal Communications Commission. FCC Record, Volume 2, No. 1, Pages 1 to 409, January 5 - January 16, 1987, book, January 1987; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc1597/m1/114/: accessed May 27, 2020), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.