**DA 08-2046**

**Released: September 10, 2008**

S&E Network, Inc.

c/o Francisco R. Montero, Esq.

Fletcher, Heald & Hildreth, PLC

1300 N 17^th^ Street, 11^th^ Floor

Arlington, Virginia 22209

CaribeVision Station Group, LLC

c/o Francisco R. Montero, Esq.

Fletcher, Heald & Hildreth, PLC

1300 N 17^th^ Street, 11^th^ Floor

Arlington, Virginia 22209

> Re: *[Application for Consent to Transfer Control of S&E Network
> Inc.]{.underline}*

WJPX(TV), San Juan, PR; Fac. ID No. 58340

WKPV(TV), Ponce, PR; Fac. ID No. 58341

WJWN-TV, San Sebastian, PR; Fac. ID No. 58342

File No. BTCCT-20080502AAR

> *[Application for Consent to Transfer Control of Caribevision Station
> Group, LLC]{.underline}*
>
> WIRS(TV), Yauco, PR, Fac. ID No. 39887
>
> File No. BTCCT-20080502AAM

*[Requests for Continuing Satellite Authorization]{.underline}*

WKPV(TV), WJWN-TV, WIRS(TV)

Dear Counsel:

This concerns the above-referenced applications seeking Commission
consent to: (1) transfer control of S&E Network, Inc., licensee of
WJPX(TV), San Juan, Puerto Rico, WKPV(TV), Ponce, Puerto Rico, and
WJWN-TV, San Sebastian, Puerto Rico from Carlos Barba as sole
stockholder to Carlos Barba and his wife, Teresa Barba, as co-equal
stockholders; and to (2) transfer control of CaribeVision Station Group,
LLC, licensee of WIRS(TV), Yauco, Puerto Rico from Carlos Barba as sole
stockholder to himself and his wife as co-equal stockholders.[^1] As
part of these transactions, the parties request continuing satellite
authority for WKPV(TV), WJWN-TV, and WIRS(TV), all of which rebroadcast
the programming of WJPX(TV).[^2]

In *Television Satellite Stations*[^3] the Commission established the
requirement that all applicants seeking to transfer or assign satellite
stations justify continued satellite status by demonstrating compliance
with a three-part \"presumptive\" satellite exemption standard
applicable to new satellite stations. The presumptive satellite
exemption is met if the following three public interest criteria are
satisfied: (1) there is no City Grade overlap between the parent and the
satellite; (2) the proposed satellite would provide service to an
underserved area; and (3) no alternative operator is ready and able to
construct or to purchase and operate the satellite as a full-service
station.[^4] If an applicant does not qualify for the presumption, the
Commission will evaluate the proposal on an *ad hoc* basis, and grant
the application if there are compelling circumstances that warrant
approval.[^5]

The applicants note that the Commission recently reaffirmed that all of
these satellite relationships serve the public interest.[^6] Moreover,
these stations have previously been approved as satellites by the
Commission at various times over a number of years.[^7] The applicants
assert that since those decisions, and in particular the most recent
decision which was released less than a year ago, the facts upon which
those findings were based, and in particular the economic circumstances
in Puerto Rico, have not changed. The applicants further note that the
Media Bureau's recent approval involved common ownership by the same
companies of precisely the same stations included in the instant
application. The applicants assert that since no new parties without a
prior attributable interest are involved, the proposed transfers will do
nothing more than maintain the *status quo*. In addition, the applicants
state that continuation of the stations' satellite status will permit
them to continue making high-quality programming available to residents
living beyond the economic center of San Juan by maintaining signal
coverage on the island generally equivalent to that enjoyed by the
stations' major competitors.

**WIRS(TV).** As part of its most recent decision, the Commission
approved the continued operation of WIRS(TV) as a satellite to WJPX(TV).
The applicants maintain that the station's circumstances warrant the
continuation of this arrangement. First, Yauco, WIRS(TV)'s community of
license, qualifies as an underserved area under the Commission's
transmission test, because WIRS(TV) remains the only television station
licensed to that community. Second, the applicants point out that there
is substantial and long-standing evidence of the station's inability to
operate as a full-service, stand-alone station. The applicants maintain
that WIRS(TV) does not generate any revenues through the sale of local
advertising time. Thus, the applicants contend that in the absence of
the rebroadcast arrangement with station WJPX(TV), WIRS(TV) would lack
the financial wherewithal to continue operations. The applicants note
that there is an area of City Grade overlap between the 80 dBu signal
contours of the stations on the northeast coast in the vicinity of San
Juan and small pockets of overlap on the north-central coast. However,
the applicants note that the Commission has concluded that the central
mountain range that separates Yauco and San Juan, the communities of
license of WIRS(TV) and WJPX(TV), "cause significant signal blockage,"
thus warranting grant of satellite status to stations located on the
opposite side of the mountain range from their parent stations.[^8]

**WKPV(TV) and WJWN-TV.** The applicants assert that, in 1994, the
Commission granted authority to operate stations WKPV(TV) and WJWN-TV as
satellites to WJPX(TV), San Juan. They assert that this authority was
continued in 1996, 2001, and twice in 2007. There is no City Grade
overlap between WJPX(TV) and either WKPV(TV) or WJWN-TV. Although the
predicted City Grade contours of the two satellites overlap, the
applicants explain that the Commission has concluded in the past that no
actual overlap exists between the two stations when terrain is
considered. Moreover, the San Sebastian area to which WJWN-TV is
licensed remains "underserved," with that facility being the only
full-service station licensed to that community. While Ponce, to which
WKPV(TV) is licensed, does not qualify as "underserved," the applicants
argue that due to the stringent economic circumstances and the unusually
severe terrain conditions on the island, the Commission has not
previously considered this fact to be an obstacle to satellite status.
The applicants assert that neither WKPV(TV) nor WJWN-TV would be
economically viable as a stand-alone station. In this regard, neither
station generates any revenues through the sale of local advertising.
Thus, the applicants contend that the continued satellite operations of
these facilities are crucial to the stations' financial viability.

Regarding the third criterion, an applicant must show that no
alternative operator is ready and able to construct, or to purchase and
operate, the proposed satellite as a full-service station.[^9] However,
applicants do not base satisfaction of the third criterion on efforts to
sell the three satellite stations. In support of the continuing waiver
request, the applicants contend that based on the economic conditions in
Puerto Rico, it is clear that no alternative operator is available to
acquire any of the satellite stations as stand-alone operations. As
discussed above, none of the satellite stations generate any revenues
through the sale of local advertising time. In addition, applicants
assert that while the communities of Puerto Rico are not included in any
Nielsen Designated Market Area ("DMA"), the Commission has repeatedly
treated Puerto Rico as a single market for purposes of the multiple
ownership rules. Likewise, the applicants explain that advertisers
expect to be able to reach the entire island with their messages.
However, the applicants reiterate that the terrain of the island makes
achievement of that goal with a single station a virtual impossibility.
Additionally, the applicants note that poor cable and DBS penetration on
the island precludes any significant additional audience reach from
these sources.

Moreover, the applicants contend that the small size and concentrated
nature of the market add further complications. The applicants assert
that while the island is only 125 miles by 30 miles, there are in excess
of 30 television stations authorized and more than 100 radio stations.
According to the applicants, the result is an intense level of
competition among broadcast stations for advertising dollars. Moreover,
the applicants explain that the generally poor economic condition of
Puerto Rico outside of San Juan makes the generation of sufficient
revenue to survive quite difficult. As a result, the applicants state
that a symbiotic relationship has developed between stations in San
Juan, the economic center of the island, and the stations in poorer,
outlying areas. These relationships, whether through satellite status or
time brokerage/rebroadcast agreements, allow the San Juan stations to
achieve the island-wide coverage that advertisers demand while providing
the stations in more remote communities the economic support and quality
that they need to survive. The Commission has long recognized that areas
outside the San Juan population center lack the economic basis to
sustain full-power operations.[^10] Moreover, applicants maintain that
the problems caused by Puerto Rico's mountainous terrain are aggravated
by the generally poor economic conditions on the island and, more
specifically, in the population centers beyond San Juan. Specifically,
the applicants explain that, according to the US Census Bureau, in the
year 2000 the median per capita income in San Juan in 1999 was \$12,437.
By contrast, the median per capital incomes for the communities of
license for the stations involved in the instant transaction were
dramatically lower. The 1999 median per capita income in Mayaguez was
\$8,003, in Ponce was \$7,276, in San Sebastian was \$5,681, and in
Yauco was \$6,434.[^11]

Based on our review of the materials submitted, we find that the
applicants have set forth information sufficient to warrant continued
satellite operations for WKPV(TV), WJWN-TV and WIRS(TV) under our *ad
hoc* analysis. We agree that, given the terrain and economic factors
militating against successful full-service operation in Puerto Rico
outside of San Juan, it does not appear likely that an alternative
operator would be willing to operate these satellites as full-service
stations. The factors upon which we based our most recent grant of
satellite authorization for these stations, less than a year ago, have
not changed to such an extent as to alter the determination here.
Although the applicants' showing does not satisfy our "presumptive"
satellite standard, the unique terrain and economic obstacles to full
service operation in Puerto Rico constitute "compelling circumstances"
warranting continued satellite status. Thus, we conclude that continued
operation of WKPV(TV), WJWN-TV and WIRS(TV) as satellites of WJPX(TV),
San Juan, Puerto Rico would serve the public interest. In view of the
foregoing, and having determined that the applicants are qualified in
all respects, we find that a grant of the above-referenced applications
would serve the public interest, convenience and necessity.

**ACCORDINGLY**, the request for continued operation of WKPV(TV), Ponce
Puerto Rico, WJWN-TV, San Sebastian, Puerto Rico, and WIRS(TV), Yauco,
Puerto Rico as satellites of WJPX(TV), San Juan, Puerto Rico, pursuant
to the satellite exception to the duopoly rule, Section 73.3555, Note 5,
of the Commission's rules, **IS GRANTED**.

**FURTHERMORE**, the above-referenced applications for consent to: (1)
transfer control of S&E Network, Inc., licensee of WJPX(TV), San Juan,
Puerto Rico, WKPV(TV), Ponce, Puerto Rico, and WJWN-TV, San Sebastian,
Puerto Rico from Carlos Barba as sole stockholder to Carlos Barba and
his wife, Teresa Barba, as co-equal stockholders (File No.
BTCCT-20080502AAR); and to (2) transfer control of Caribevision Station
Group, LLC, licensee of WIRS(TV), Yauco, Puerto Rico from Carlos Barba
as sole stockholder to himself and his wife as co-equal stockholders
(File No. BALCT-20080502AAM) **ARE GRANTED.**

> Sincerely,
>
> Barbara A. Kreisman
>
> Chief, Video Division
>
> Media Bureau

[^1]: The applicants explain that the only change proposed is at the
    level of the ultimate parent company and involves only a transfer of
    50 percent from a husband to his wife, who is already Secretary and
    Treasurer of the parent company. The applicants assert that no new
    parties will be introduced.

[^2]: 47 C.F.R. § 73.3555, Note 5.

[^3]: 6 FCC Rcd 4212, 4215 (1991) (subsequent citations omitted).

[^4]: *Id.* at 4213-14.

[^5]: *Id.* at 4212.

[^6]: *CaribeVision Station Group, LLC*, 22 FCC Rcd 16896, released
    September 20, 2007.

[^7]: *Id.*

[^8]: *JEM Communications, Inc.,* 9 FCC Rcd 4874 (1994); *Hector
    Nicolau*, 5 FCC Rcd 6370 (1990).

[^9]: 6 FCC Rcd at 4215.

[^10]: *See T. Michael Whitney*, 16 FCC Rcd 2297 (2001); *JEM
    Communications, Inc*., 9 FCC Rcd 4874 (1994).

[^11]: The gross national income per capita, a measurement of the income
    actually accruing to residents of the island, is currently only
    about 30 percent of the United States' average.