*Pages 1--3 from Microsoft Word - 50633.doc* Federal Communications Commission Washington, D. C. 20554 July 29, 2005 DA 05- 2186 In Reply Refer to: 1800B3- CNZ Houston Christian Broadcasters, Inc. c/ o Jeffrey D. Southmayd, Esq. Southmayd & Miller 1220 19 th Street, NW Suite 400 Washington, DC 20036 San Antonio Comfort, Inc. c/ o Jerrold D. Miller, Esq. Millar & Millar, PC 1990 M Street, NW Suite 760 Washington, DC 20036 In R e: N EW ( NCE F M), C omfort, T X Facility ID No. 91531 BPED- 19980901MG NEW (NCE FM), Fredericksburg, TX Facility ID No. 90113 BPED- 19980213MA Applications for NCE FM Construction Permits Group No. 980205 Dear Applicants: We have before us Group 980205 – two mutually exclusive applications for permits to construct new noncommercial educational (“ NCE”) FM stations serving different communities. In such situations, the rules require the Commission to make a threshold determination as to whether grant of any of the applications would further the fair, efficient, and equitable distribution of radio service among communities. 1 For the reasons below, we determine that Houston Christian Broadcasters, Inc. (“ HCBI”) is entitled to a decisive Section 307( b) preference. An NCE FM applicant is eligible to receive a Section 307( b) preference if it would provide a first or second reserved channel NCE aural service (in the aggregate) to at least ten percent of the population, 1 See 47 U. S. C. § 307( b); 47 C. F. R. § 73. 7002( a). 1 2 provided that this constitutes at least 2,000 people, within the proposed station’s 60 dBu contour. 2 If more than one applicant in a mutually exclusive group qualifies for a preference, we compare first service population coverage totals. 3 An applicant will receive a dispositive fair distribution preference by proposing to serve at least 5,000 more potential listeners than the next highest applicant’s first service total. 4 If no applicant is entitled to a first service preference, we will consider combined first and second service population totals and apply the same 5,000 listener threshold. In the present group, HCBI would serve Fredericksburg, Texas, and San Antonio Comfort, Inc. (“ SACI”) would serve Comfort, Texas. Each applicant claims that it would provide a new first or second NCE service to 10 percent of the population, and to at least 2,000 people, within its respective service area, and therefore, that it is eligible for a fair distribution preference. 5 HCBI is the only applicant, however, to assert that it is entitled to a first service preference. 6 Based on HCBI’s submissions and calculations, it appears that it qualifies for a first service preference, so no second service analysis is undertaken. Accordingly, pursuant to Section 73.7004 of the Commission’s rules, we identify HCBI as the tentative selectee. Group 980205 thus will not proceed to a point hearing. 7 Accordingly, it is ordered that Houston Christian Broadcasters, Inc. is TENTATIVELY SELECTED to be awarded a construction permit (File No. BPED- 19980213MA) for a new NCE FM station in Fredericksburg, Texas. Petitions to deny the tentative selectee are due within thirty (30) days 2 See 47 C. F. R. § 73. 7002( b). With respect to population information, applicants were to use the 2000 Census data, if available by June 4, 2001. See “Supplements and Settlements to Pending Closed Groups of Noncommercial Educational Broadcast Applications Due by June 4, 2001,” Public Notice, 16 FCC Rcd 6893 (MB Mar. 22, 2001). Applicants were also to base their “fair distribution” analysis on the “snap shot” date of June 4, 2001, which is applicable unless the applicant subsequently makes engineering changes that would diminish its comparative position. Id. In this case, neither of the applicants has made such engineering changes. In addition, each applicant timely supplemented its application with a Section 307( b) showing; each purports to be based on 2000 Census data and a “snap shot” date of June 4, 2001. 3 See 47 C. F. R. § 73. 7002( b). See also “Deadline for NCE Settlements and Supplements Extended to July 19, 2001; Date for Calculating Comparative Qualifications Remains June 4, 2001,” Public Notice, 16 FCC Rcd 10892, 10893 (MB May 24, 2001). 4 Id. 5 HCBI’s 60 dBu contour encompasses 21, 457 people. HCBI’s claimed aggregated first and second service is 6,838 people. SACI’s 60 dBu contour encompasses 33, 542 people. SACI’s claimed aggregated first and second service is 8,589 people. 6 HCBI claims to provide 2, 285 people with new first service. 7 See 47 C. F. R. § 73. 7002( b). The Media Bureau has delegated authority to make 307( b) determinations in NCE cases. See Reexamination of the Comparative Standards for Noncommercial Educational Applicants, 15 FCC Rcd 7386 (2000), partially reversed on other grounds, NPR v. FCC, 254 F. 3d 226 (DC Cir. 2001) (“ NCE Order”). See also 47 C. F. R. § 0.283. In the NCE Order, the Commission concluded that “[ i] n examining the fair distribution issues, we will use the general process set forth in the Section of our Competitive Bidding proceeding that addressed Section 307( b) considerations for AM stations.” See NCE Order, 15 FCC Rcd at 7397 (citing Comparative Bidding for Commercial Broadcasting and Instructional Television Fixed Services, 13 FCC Rcd 15920 (1998) (delegating authority to the staff to conduct Section 307( b) analyses with respect to AM applications prior to conducting auctions of competing applications)). In contrast, the NCE Order noted that the point system analysis conducted when Section 307( b) is not determinative is considered a simplified “hearing” for purposes of 47 U. S. C. § 155( c)( 1). See NCE Order, 15 FCC Rcd at 7420. 2 3 following the issuance of a subsequently issued public notice announcing the tentative selection of this application. 8 Sincerely, Peter H. Doyle Chief, Audio Division Media Bureau 8 See 47 C. F. R. § 73. 7004. If any applicant previously raised issues against the tentative selectee, it must refile its objections within this thirty (30) day period. 3