**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

+----------------------------------+---+------------------------------+
| In the Matter of                 | * | File No. EB-04-SE-020        |
|                                  | * |                              |
| Pacific Spanish Network, Inc.,   | ) | NAL/Acct No. 200432100012    |
|                                  | * |                              |
| Holder of Permit to Transmit or  | * | FRN: 0006146484              |
|                                  |   |                              |
| Deliver Programming to Foreign   | * |                              |
| Stations                         | * |                              |
|                                  | ) |                              |
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|                                  | * |                              |
|                                  | * |                              |
|                                  | ) |                              |
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|                                  |   |                              |
|                                  | * |                              |
|                                  | * |                              |
|                                  | ) |                              |
|                                  | * |                              |
|                                  | * |                              |
|                                  |   |                              |
|                                  | * |                              |
|                                  | * |                              |
|                                  | ) |                              |
|                                  | * |                              |
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+----------------------------------+---+------------------------------+
|                                  |   |                              |
+----------------------------------+---+------------------------------+

**NOTICE OF APPARENT LIABILITY FOR FORFEITURE**

**Adopted:** July 28, 2004 **Released:** July 30, 2004

By the Chief, Enforcement Bureau:

# introduction

1.  In this *Notice of Apparent Liability for Forfeiture* ("*NAL*"), we
    find Pacific Spanish Network, Inc., ("PSN") apparently liable for a
    forfeiture in the amount of twenty thousand dollars (\$20,000) for
    providing program material via the Internet to a Mexican AM
    broadcast station in willful and repeated substantial violation of
    the terms and conditions of its authorization granted pursuant to
    Section 325(c) of the Communications Act of 1934, as amended (the
    "Act").[^1]

#  background

2.  Under Section 325(c) of the Act, the transmission or delivery of
    broadcast programming to foreign broadcast stations, such as those
    located in Mexico, for the purpose of being received in the domestic
    radio market requires application to and authorization granted by
    the Commission.[^2] On May 16, 2003, PSN filed with the Commission
    three applications pursuant to Section 325(c). In its applications,
    PSN sought authority to supply broadcast programming from its Chula
    Vista, California studio via the Internet to Station XEKTT,
    frequency 550 kHz ,Tecate, Baja California, Mexico, to Station XESS,
    frequency 780 kHz, Ensenda, Baja California, Mexico, and to Station
    XEDD, frequency 920 kHz, Ensenda, Baja California, Mexico. On July
    16, 2003, the Commission's International Bureau granted PSN's
    applications and issued it a Section 325(c) permit.[^3] The Section
    325(c) permit authorized PSN to supply "music, talk and other
    entertainment and informational programming in Spanish" to Station
    XEKTT on frequency 550 kHz located in Tecate, Mexico, to Station
    XESS on frequency 780 kHz located in Ensenada, Mexico, and to
    Station XEDD[^4] on frequency 920 MHz located in Ensenada, Mexico.
    The Section 325(c) permit expressly states that it is based on PSN's
    "representation that the statements contained in the
    application\[s\] are true and that the undertakings described will
    be carried out in good faith," and that it is conditioned upon the
    Mexican stations' "operation in full compliance with applicable
    treaties and related provisions concerning electrical interference
    to U.S. Broadcast stations."[^5]

3.  In early December 2003, in response to complaints alleging that
    Station XEKTT was causing interference to the reception of licensed
    AM broadcast stations in the U.S., an agent from the Enforcement
    Bureau's San Diego Office visited PSN's studio in Chula Vista,
    California. The FCC agent met with PSN's President, Jaime Bonilla,
    and advised him that Station XEKTT was causing interference to
    licensed U.S. broadcast stations.[^6] Mr. Bonilla told the agent
    that Station XEKTT was operating on frequency 560 kHz, not 550 kHz,
    and that PSN was providing programming to Station XEKTT from its
    Chula Vista studio via the Internet.[^7] Mr. Bonilla provided the
    agent copies of the authorizations granted by the Mexican government
    for Station XEKTT on frequency 550 kHz and frequency 560 kHz.[^8]
    These authorizations indicated that on November 14, 2003, the
    Mexican government authorized Station XEKTT to operate on frequency
    550 kHz with 20 kW daytime and 10 kW nighttime power, and
    subsequently, on December 9, 2003, the Mexican government authorized
    Station XEKTT to operate on frequency 560 kHz with 20 kW daytime and
    10 kW nighttime power. Mr. Bonilla also told the agent that PSN
    expected to initiate similar service to Stations XESS and XESDD at
    some future time.[^9]

4.  On January 16, 2004, the Commission received a petition to rescind
    PSN's Section 325(c) permit.[^10] The petition maintained, and
    provided supporting engineering and technical documentation to
    demonstrate, that Station XEKTT had been operating on frequency 560
    kHz, and that such operations had caused substantial harmful
    interference to the reception of certain U.S. radio stations'
    signals.[^11] The petition further maintained that the International
    Bureau had never been notified of and approved Station XEKTT's
    operation on frequency 560 kHz in accordance with the 1986
    U.S.-Mexico treaty governing coordination of medium frequency AM
    band stations.[^12] The International Bureau confirmed that it had
    received a coordination notification from the Mexican government
    regarding Station XEKTT's operation on 1600 kHz with 250 W daytime
    and nighttime power in accordance with the U.S.-Mexico treaty, but
    the International Bureau had never approved that operation. The
    International Bureau also confirmed that it had never been notified
    of or approved Station XEKTT's operation on either 550 kHz or 560
    kHz, as required by the U.S.-Mexico treaty. In addition, Enforcement
    Bureau staff subsequently confirmed through monitoring of Station
    XEKTT that the Mexican station was operating on 560 kHz at increased
    power levels from a new transmitter site.

5.  On January 28, 2004, the Commission received a supplement to the
    petition to rescind.[^13] The supplement maintained, and provided
    supporting engineering and technical documentation to demonstrate,
    that Station XESS would cause substantial harmful interference to
    the reception of certain U.S. broadcast stations' signals when it
    commenced operation on frequency 780 kHz from a new transmitter site
    just south of the U.S.-Mexico border.[^14] The supplement further
    maintained that Station XESS's prior operation on frequency 1450 kHz
    had been coordinated with and approved by the International Bureau
    in compliance with the U.S.-Mexico treaty, but that its current
    operation on frequency 780 kHz from the new site had not been
    coordinated or approved. In addition, the supplement maintained that
    a new transmitter site for Station XESDD was under construction and
    Station XESDD was expected to operate on frequency 920 kHz. As with
    Stations XEKTT and XESS, the petition maintained that Station
    XESDD's prior operation on frequency 1560 kHz had been coordinated
    with and approved by the International Bureau in compliance with the
    U.S.-Mexican Agreement, but that its operation on frequency 920 kHz
    had not been coordinated or approved. The International Bureau
    confirmed that it had previously approved the operation of Station
    XESS on frequency 1450 kHz with 1 kW daytime and nighttime power.
    The International Bureau also confirmed that it had been notified of
    and approved the operation of Station XESDD on 920 kHz with 200 W
    nighttime power, but it had not approved the proposed operation of
    Station XESDD with 2.5 kW daytime power.

6.  On February 11, 2004, the Commission received a further supplement
    to the petition to rescind,[^15] claiming that Station XESS had
    begun operating from its new site, and as expected, was causing
    substantial harmful interference.[^16]

7.  The Enforcement Bureau's Spectrum Enforcement Division ("Division")
    sent PSN a letter of inquiry on February 11, 2004 and a further
    letter of inquiry, on March 19, 2004.[^17] Pursuant to an extension
    of time, PSN filed responses to the February 11 letter of inquiry on
    March 8, 2004, and responded to the March 19 further letter of
    inquiry on March 29, 2004.[^18]

8.  In its responses, PSN stated that its May 16, 2003 Section 325(c)
    applications which identified and described the Mexican stations'
    operations as subsequently modified by the Mexican government in
    November and December 2003, were intended to be
    "forward-looking."[^19] In this regard, PSN stated that it was aware
    at the time that it filed its Section 325(c) applications that the
    Mexican stations planned to modify and upgrade their
    facilities.[^20] PSN also stated that it did not verify, and did not
    know that it was required to verify, that the Mexican stations'
    operations had been coordinated and were in compliance with the
    U.S.-Mexican Agreement, at the time it filed its Section 325(c)
    applications. PSN acknowledged that it provided programming via the
    Internet from its Chula Vista, California studio to Station XEKTT
    after that station began operating on frequency 560 kHz in
    mid-November 2003.[^21] PSN further acknowledged that it did not
    verify at that time whether Station XEKTT's operation on frequency
    560 kHz had been coordinated with and approved by the
    Commission.[^22] Moreover, although PSN's Section 325(c) permit
    explicitly stated that it authorized PSN to supply program material
    from its Chula Vista, California studio via the Internet to
    "stations identified and located as follows: ... XEKTT, 550 kHz,
    Tecate, Mexico," PSN claimed that "its belief at the time was that
    it could continue supplying programming to XEKTT after it began
    operating on 560 kHz because it had a Section 325(c) permit ...
    \[and\] it was not aware of any requirement that it take further
    action at the FCC."[^23] Additionally, PSN claimed that it did not
    know that Station XEKTT was allegedly interfering with the U.S.
    broadcast stations until the January 16, 2004 petition to rescind
    was served, and that thereafter, it continued to supply broadcast
    programming to Station XEKTT because "it was unaware of any FCC
    requirement that it discontinue service to that station."[^24]
    Finally, PSN stated that it discontinued transmission of programming
    to Station XEKTT on February 17 2004, and would neither resume
    cross-border program transmissions to that station nor initiate such
    transmissions to Stations XESS and XESDD, "until interference and
    other issues identified in the FCC's February 11, 2004 investigatory
    letter have been resolved."[^25]

9.  On April 7, 2004, PSN tendered its Section 325(c) permit for
    cancellation.[^26] PSN explained its tender by stating that "it is
    evident that the proposals to upgrade the Mexican stations were not
    coordinated with the United States Government before or after PSN
    applied for its permit \... and must undergo that procedure."[^27]
    PSN stated that it "reserves the right" to reapply for a Section
    325(c) authorization upon completion of the coordination proceedings
    and resolution of the interference issues .[^28]

10. On April 8, 2004, the Joint Petitioners submitted a reply to PSN's
    April 7, 2004 letter.[^29] The Joint Petitioners assert that PSN's
    tendering of the Section 325(c) permit for cancellation in no way
    eliminates or mitigates the fact that PSN knowingly operated in
    violation of an express condition of its Section 325(c) permit.[^30]
    Accordingly, the Joint Petitioners urge the Enforcement Bureau to
    issue a formal determination regarding such violation and to impose
    appropriate sanctions upon PSN.[^31] Joint Petitioners also submit
    that the record in this proceeding demonstrates that PSN is not
    qualified to hold a permit to deliver programming to foreign
    broadcast stations and assert that its Section 325(c) permit should
    be cancelled with prejudice.[^32]

#  Discussion

11. Section 325(c) of the Act, as previously noted, prohibits the
    transmission or delivery of programming from a broadcast studio,
    place or other apparatus within the United States to a radio station
    in a foreign country "for the purpose of being broadcast from any
    radio station there having a power output of sufficient intensity
    and/or being so located geographically that its emissions may be
    received consistently in the United States, without first obtaining
    a permit from the Commission upon proper application therefor."
    Section 325(c) serves to prevent interference to broadcast stations'
    signals, as well as the introduction of broadcast material deemed
    inimical to the public interest, within the United States.[^33]

12. In the instant case, PSN admitted that it provided programming from
    its Chula Vista, California studio via the Internet to Station XEKTT
    after Station XEKTT began operating on frequency 560 kHz in
    mid-November 2003, notwithstanding the fact that the express terms
    of its Section 325(c) permit only authorized it to provide
    programming to Station XEKTT on frequency 550 kHz. We find wholly
    unpersuasive PSN's claim that that it believed that "it could
    continue supplying programming to XEKTT after it began operating on
    560 kHz because it had a Section 325(c) permit." In this regard,
    PSN's Section 325(c) permit explicitly states that "\[t\]his permit
    shall not vest in the permittee any right to operate beyond the term
    hereof nor in any other manner than authorized herein." Moreover,
    while PSN's Section 325(c) permit is explicitly "conditioned upon
    the Mexican stations operation in full compliance with applicable
    treaties and related provisions concerning harmful interference to
    U.S. Broadcast stations," PSN admitted that it continued to supply
    programming to Station XEKTT until February 17, 2004, at least a
    month after it became aware that the Mexican station's modified
    operations had not been coordinated with and approved by the
    International Bureau in accordance with the U.S.-Mexico treaty and
    that the Mexican station was causing harmful interference to
    licensed U.S. broadcast stations.[^34] Accordingly, based upon the
    record before us, we find that PSN supplied cross-border programming
    to Station XEKTT in apparent willful[^35] and repeated[^36]
    violation of the express terms and conditions of its Section 325(c)
    authorization.

13. Section 503(b)(1)(A) of the Act,[^37] and Section 1.80(a)(2) of the
    Rules,[^38] provide that any person who willfully or repeatedly
    fails to substantially comply with the terms and conditions of a
    Commission issued permit, license or other authorization shall be
    liable for a forfeiture penalty. The forfeiture amount for entities
    other than broadcast licensees or permittees, cable television
    operators and common carriers may not exceed \$11,000 for each
    violation or each day of a continuing violation, up to a maximum of
    \$87,500 for any single continuing violation.[^39] In determining
    the appropriate forfeiture amount, we must consider the factors
    enumerated in Section 503(b)(2)(D) of the Act, such as "the nature,
    circumstances, extent and gravity of the violation, and, with
    respect to the violator, the degree of culpability, any history of
    prior offenses, ability to pay, and such other matters as justice
    may require."[^40]

14. Neither the *Forfeiture Policy Statement* nor the rules establish a
    base forfeiture amount for supplying program material to a foreign
    broadcast station in violation of the terms of an authorization
    granted pursuant to Section 325(c) of the Act.[^41] However, we
    think that a substantial proposed forfeiture is warranted.
    Considering the facts of this case, including the fact that PSN's
    violation continued for at least a month after PSN became aware that
    the operation of Station XEKTT was not in compliance with the
    applicable treaty and was causing harmful interference to licensed
    U.S. broadcast stations, we find that it is appropriate to propose a
    \$20,000 forfeiture. Further, while PSN has tendered its Section
    325(c) permit for cancellation,[^42] we find that such a
    post-remedial measure does not lessen, mitigate, or excuse its past
    violations of the Act.[^43]

#  ORDERING CLAUSES

15. Accordingly, **IT IS ORDERED** that, pursuant to pursuant to Section
    503(b) of the Act[^44] and Sections 0.111, 0.311 and 1.80 of the
    Rules,[^45] Pacific Spanish Network, Inc. **IS** hereby **NOTIFIED**
    of its **APPARENT LIABILITY FOR A FORFEITURE** in the amount of
    twenty thousand dollars (\$20,000) for willfully and repeatedly
    violating the express terms and conditions of its Section 325(c)
    permit.

16. **IT IS FURTHER ORDERED THAT**, pursuant to Section 1.80 of the
    Rules, within thirty days of the release date of this *Notice of
    Apparent Liability for Forfeiture and Order*, Pacific Spanish
    Network, Inc., **SHALL PAY** the full amount of the proposed
    forfeiture or **SHALL FILE** a written statement seeking reduction
    or cancellation of the proposed forfeiture.

17. Payment of the forfeiture may be made by mailing a check or similar
    instrument, payable to the order of the Federal Communications
    Commission, to the Forfeiture Collection Section, Finance Branch,
    Federal Communications Commission, P.O. Box 73482, Chicago, Illinois
    60673-7482. The payment must include the FCC Registration Number
    (FRN) and the NAL/Acct. No. referenced in the caption.

18. The response, if any, must be mailed to the Office of the Secretary,
    Federal Communications Commission, 445 12th Street, S.W.,
    Washington, D.C. 20554, ATTN: Enforcement Bureau -- Spectrum
    Enforcement Division, and must include the NAL/Acct. No. referenced
    in the caption.

19. The Commission will not consider reducing or canceling a forfeiture
    in response to a claim of inability to pay unless the petitioner
    submits: (1) federal tax returns for the most recent three-year
    period; (2) financial statements prepared according to generally
    accepted accounting; or (3) some other reliable and objective
    documentation that accurately reflects the petitioner's current
    financial status. Any claim of inability to pay must specifically
    identify the basis for the claim by reference to the financial
    documentation submitted.

20. Requests for payment of the full amount of this *NAL* under an
    installment plan should be sent to: Chief, Revenue and Receivable
    Operations Group, 445 12th Street, S.W., Washington, D.C.
    20554.[^46]

21. Under the Small Business Paperwork Relief Act of 2002, Pub L. No.
    107-198, 116 Stat. 729 (June 28, 2002), the FCC is engaged in a
    two-year tracking process regarding the size of entities involved in
    forfeitures. If you qualify as a small entity and if you wish to be
    treated as a small entity for tracking purposes, please so certify
    to us within thirty (30) days of this *NAL*, either in your response
    to the *NAL* or in a separate filing to be sent to the Enforcement
    Bureau -- Spectrum Enforcement Division. Your certification should
    indicate whether you, including your parent entity and its
    subsidiaries, meet one of the definitions set forth in the list
    provided by the FCC's Office of Communications Business
    Opportunities ("OCBO") set forth in Attachment A of this *NAL*. This
    information will be used for tracking purposes only. Your response
    or failure to respond to this question will have no effect on your
    rights and responsibilities pursuant to Section 503(b) of the Act.
    If you have questions regarding any of the information contained in
    Attachment A, please contact OCBO at (202) 418-0990.

22. **IT IS FURTHER ORDERED** that a copy of this *Notice of Apparent
    Liability for Forfeiture and Order* shall be sent by first class
    mail and certified mail return receipt requested to Jaime Bonilla
    Valdez, President, Pacific Spanish Network, Inc., 296 H Street,
    Suite 300, Chula Vista, California 91910, and to counsel, Henry A.
    Solomon, Esq., Garvey Schubert & Barer, 1000 Potomac Street, N.W.,
    Fifth Floor, Washington, D.C. 20007-3501.

23. **IT IS FURTHER ORDERED** that a copy of this *Notice of Apparent
    Liability for Forfeiture* shall be sent by first class mail and
    certified mail return receipt requested to counsel for KGO-AM Radio,
    Inc., Tom W. Davidson and Natalie G. Roisman, Akin Gump Strauss
    Hauer & Feld LLP, 1333 New Hampshire Avenue, N.W., Washington, D.C.
    20036, and to counsel for Owens One Company, AMFM Radio Licenses,
    LLC and Capstar TX Limited Partnership, Gregory L. Masters and
    Marnie K. Sarver, Wiley Rein & Fielding LLP, 1776 K Street, N.W.,
    Washington, D.C. 20006.

24. **IT IS FURTHER ORDERED** that the Petition to Rescind Authorization
    filed jointly on January 16, 2004, by Owens One Company, Inc., AMFM
    Radio Licenses, LLC, Capstar TX Limited Partnership and KGO-AM
    Radio, Inc. **IS DISMISSED** as moot, and that proceeding **IS
    HEREBY TERMINATED**.[^47]

FEDERAL COMMUNICATIONS COMMISSION

David H. Solomon

Chief, Enforcement Bureau

> Attachment A

+--------------------------------+-------------------------------------+
| **FCC List of Small Entities** |                                     |
|                                |                                     |
| **As described below, a "small |                                     |
| entity" may be a small         |                                     |
| organization,**                |                                     |
|                                |                                     |
| **a small governmental         |                                     |
| jurisdiction, or a small       |                                     |
| business.**                    |                                     |
+--------------------------------+-------------------------------------+
| **(1) Small Organization**     |                                     |
+--------------------------------+-------------------------------------+
| **Any not-for-profit           |                                     |
| enterprise that is             |                                     |
| independently owned and        |                                     |
| operated and**                 |                                     |
|                                |                                     |
| **is not dominant in its       |                                     |
| field.**                       |                                     |
+--------------------------------+-------------------------------------+
| **(2) Small Governmental       |                                     |
| Jurisdiction**                 |                                     |
+--------------------------------+-------------------------------------+
| **Governments of cities,       |                                     |
| counties, towns, townships,    |                                     |
| villages, school districts,    |                                     |
| or**                           |                                     |
|                                |                                     |
| **special districts, with a    |                                     |
| population of less than fifty  |                                     |
| thousand.**                    |                                     |
+--------------------------------+-------------------------------------+
| **(3) Small Business**         |                                     |
+--------------------------------+-------------------------------------+
| **Any business concern that is |                                     |
| independently owned and        |                                     |
| operated and**                 |                                     |
|                                |                                     |
| **is not dominant in its       |                                     |
| field, *and* meets the         |                                     |
| pertinent size criterion       |                                     |
| described below.**             |                                     |
+--------------------------------+-------------------------------------+
| **Industry Type**              | **Description of Small Business     |
|                                | Size Standards**                    |
+--------------------------------+-------------------------------------+
| ***Cable Services or           |                                     |
| Systems***                     |                                     |
+--------------------------------+-------------------------------------+
| Cable Systems                  | Special Size Standard --            |
|                                |                                     |
|                                | **Small Cable Company** has 400,000 |
|                                | Subscribers Nationwide or Fewer     |
+--------------------------------+-------------------------------------+
| Cable and Other Program        | \$12.5 Million in Annual Receipts   |
| Distribution                   | or Less                             |
+--------------------------------+-------------------------------------+
| Open Video Systems             |                                     |
+--------------------------------+-------------------------------------+
| ***Common Carrier Services and |                                     |
| Related Entities***            |                                     |
+--------------------------------+-------------------------------------+
| Wireline Carriers and Service  | 1,500 Employees or Fewer            |
| providers                      |                                     |
+--------------------------------+-------------------------------------+
| Local Exchange Carriers,       |                                     |
| Competitive Access Providers,  |                                     |
| Interexchange Carriers,        |                                     |
| Operator Service Providers,    |                                     |
| Payphone Providers, and        |                                     |
| Resellers                      |                                     |
+--------------------------------+-------------------------------------+
| **Note:** With the exception   |                                     |
| of Cable Systems, all size     |                                     |
| standards are expressed in     |                                     |
| either millions of dollars or  |                                     |
| number of employees and are    |                                     |
| generally the average annual   |                                     |
| receipts or the average        |                                     |
| employment of a firm.          |                                     |
| Directions for calculating     |                                     |
| average annual receipts and    |                                     |
| average employment of a firm   |                                     |
| can be found in                |                                     |
|                                |                                     |
| 13 CFR 121.104 and 13 CFR      |                                     |
| 121.106, respectively.         |                                     |
+--------------------------------+-------------------------------------+
| ***International Services***   |                                     |
+--------------------------------+-------------------------------------+
| International Broadcast        | \$12.5 Million in Annual Receipts   |
| Stations                       | or Less                             |
+--------------------------------+-------------------------------------+
| International Public Fixed     |                                     |
| Radio (Public and Control      |                                     |
| Stations)                      |                                     |
+--------------------------------+-------------------------------------+
| Fixed Satellite                |                                     |
| Transmit/Receive Earth         |                                     |
| Stations                       |                                     |
+--------------------------------+-------------------------------------+
| Fixed Satellite Very Small     |                                     |
| Aperture Terminal Systems      |                                     |
+--------------------------------+-------------------------------------+
| Mobile Satellite Earth         |                                     |
| Stations                       |                                     |
+--------------------------------+-------------------------------------+
| Radio Determination Satellite  |                                     |
| Earth Stations                 |                                     |
+--------------------------------+-------------------------------------+
| Geostationary Space Stations   |                                     |
+--------------------------------+-------------------------------------+
| Non-Geostationary Space        |                                     |
| Stations                       |                                     |
+--------------------------------+-------------------------------------+
| Direct Broadcast Satellites    |                                     |
+--------------------------------+-------------------------------------+
| Home Satellite Dish Service    |                                     |
+--------------------------------+-------------------------------------+
| ***Mass Media Services***      |                                     |
+--------------------------------+-------------------------------------+
| Television Services            | \$12 Million in Annual Receipts or  |
|                                | Less                                |
+--------------------------------+-------------------------------------+
| Low Power Television Services  |                                     |
| and Television Translator      |                                     |
| Stations                       |                                     |
+--------------------------------+-------------------------------------+
| TV Auxiliary, Special          |                                     |
| Broadcast and Other Program    |                                     |
| Distribution Services          |                                     |
+--------------------------------+-------------------------------------+
| Radio Services                 | \$6 Million in Annual Receipts or   |
|                                | Less                                |
+--------------------------------+-------------------------------------+
| Radio Auxiliary, Special       |                                     |
| Broadcast and Other Program    |                                     |
| Distribution Services          |                                     |
+--------------------------------+-------------------------------------+
| Multipoint Distribution        | Auction Special Size Standard --    |
| Service                        |                                     |
|                                | **Small Business** is less than     |
|                                | \$40M in annual gross revenues for  |
|                                | three preceding years               |
+--------------------------------+-------------------------------------+
| ***Wireless and Commercial     |                                     |
| Mobile Services***             |                                     |
+--------------------------------+-------------------------------------+
| Cellular Licensees             | 1,500 Employees or Fewer            |
+--------------------------------+-------------------------------------+
| 220 MHz Radio Service -- Phase |                                     |
| I Licensees                    |                                     |
+--------------------------------+-------------------------------------+
| 220 MHz Radio Service -- Phase | Auction special size standard -     |
| II Licensees                   |                                     |
|                                | **Small Business** is average gross |
|                                | revenues of \$15M or less for the   |
|                                | preceding three years (includes     |
|                                | affiliates and controlling          |
|                                | principals)                         |
|                                |                                     |
|                                | **Very Small Business** is average  |
|                                | gross revenues of \$3M or less for  |
|                                | the preceding three years (includes |
|                                | affiliates and controlling          |
|                                | principals)                         |
+--------------------------------+-------------------------------------+
| 700 MHZ Guard Band Licensees   |                                     |
+--------------------------------+-------------------------------------+
| Private and Common Carrier     |                                     |
| Paging                         |                                     |
+--------------------------------+-------------------------------------+
| Broadband Personal             | 1,500 Employees or Fewer            |
| Communications Services        |                                     |
| (Blocks A, B, D, and E)        |                                     |
+--------------------------------+-------------------------------------+
| Broadband Personal             | Auction special size standard -     |
| Communications Services (Block |                                     |
| C)                             | **Small Business** is \$40M or less |
|                                | in annual gross revenues for three  |
|                                | previous calendar years             |
|                                |                                     |
|                                | **Very Small Business** is average  |
|                                | gross revenues of \$15M or less for |
|                                | the preceding three calendar years  |
|                                | (includes affiliates and persons or |
|                                | entities that hold interest in such |
|                                | entity and their affiliates)        |
+--------------------------------+-------------------------------------+
| Broadband Personal             |                                     |
| Communications Services (Block |                                     |
| F)                             |                                     |
+--------------------------------+-------------------------------------+
| Narrowband Personal            |                                     |
| Communications Services        |                                     |
+--------------------------------+-------------------------------------+
| Rural Radiotelephone Service   | 1,500 Employees or Fewer            |
+--------------------------------+-------------------------------------+
| Air-Ground Radiotelephone      |                                     |
| Service                        |                                     |
+--------------------------------+-------------------------------------+
| 800 MHz Specialized Mobile     | Auction special size standard -     |
| Radio                          |                                     |
|                                | **Small Business** is \$15M or less |
|                                | average annual gross revenues for   |
|                                | three preceding calendar years      |
+--------------------------------+-------------------------------------+
| 900 MHz Specialized Mobile     |                                     |
| Radio                          |                                     |
+--------------------------------+-------------------------------------+
| Private Land Mobile Radio      | 1,500 Employees or Fewer            |
+--------------------------------+-------------------------------------+
| Amateur Radio Service          | N/A                                 |
+--------------------------------+-------------------------------------+
| Aviation and Marine Radio      | 1,500 Employees or Fewer            |
| Service                        |                                     |
+--------------------------------+-------------------------------------+
| Fixed Microwave Services       |                                     |
+--------------------------------+-------------------------------------+
| Public Safety Radio Services   | **Small Business** is 1,500         |
|                                | employees or less                   |
|                                |                                     |
|                                | **Small Government Entities** has   |
|                                | population of less than 50,000      |
|                                | persons                             |
+--------------------------------+-------------------------------------+
| Wireless Telephony and Paging  | 1,500 Employees or Fewer            |
| and Messaging                  |                                     |
+--------------------------------+-------------------------------------+
| Personal Radio Services        | N/A                                 |
+--------------------------------+-------------------------------------+
| Offshore Radiotelephone        | 1,500 Employees or Fewer            |
| Service                        |                                     |
+--------------------------------+-------------------------------------+
| Wireless Communications        | **Small Business** is \$40M or less |
| Services                       | average annual gross revenues for   |
|                                | three preceding years               |
|                                |                                     |
|                                | **Very Small Business** is average  |
|                                | gross revenues of \$15M or less for |
|                                | the preceding three years           |
+--------------------------------+-------------------------------------+
| 39 GHz Service                 |                                     |
+--------------------------------+-------------------------------------+
| Multipoint Distribution        | Auction special size standard       |
| Service                        | (1996) --                           |
|                                |                                     |
|                                | **Small Business** is \$40M or less |
|                                | average annual gross revenues for   |
|                                | three preceding calendar years      |
|                                |                                     |
|                                | Prior to Auction --                 |
|                                |                                     |
|                                | **Small Business** has annual       |
|                                | revenue of \$12.5M or less          |
+--------------------------------+-------------------------------------+
| Multichannel Multipoint        | \$12.5 Million in Annual Receipts   |
| Distribution Service           | or Less                             |
+--------------------------------+-------------------------------------+
| Instructional Television Fixed |                                     |
| Service                        |                                     |
+--------------------------------+-------------------------------------+
| Local Multipoint Distribution  | Auction special size standard       |
| Service                        | (1998) --                           |
|                                |                                     |
|                                | **Small Business** is \$40M or less |
|                                | average annual gross revenues for   |
|                                | three preceding years               |
|                                |                                     |
|                                | **Very Small Business** is average  |
|                                | gross revenues of \$15M or less for |
|                                | the preceding three years           |
+--------------------------------+-------------------------------------+
| 218-219 MHZ Service            | First Auction special size standard |
|                                | (1994) --                           |
|                                |                                     |
|                                | **Small Business** is an entity     |
|                                | that, together with its affiliates, |
|                                | has no more than a \$6M net worth   |
|                                | and, after federal income taxes     |
|                                | (excluding carryover losses) has no |
|                                | more than \$2M in annual profits    |
|                                | each year for the previous two      |
|                                | years                               |
|                                |                                     |
|                                | New Standard --                     |
|                                |                                     |
|                                | **Small Business** is average gross |
|                                | revenues of \$15M or less for the   |
|                                | preceding three years (includes     |
|                                | affiliates and persons or entities  |
|                                | that hold interest in such entity   |
|                                | and their affiliates)               |
|                                |                                     |
|                                | **Very Small Business** is average  |
|                                | gross revenues of \$3M or less for  |
|                                | the preceding three years (includes |
|                                | affiliates and persons or entities  |
|                                | that hold interest in such entity   |
|                                | and their affiliates)               |
+--------------------------------+-------------------------------------+
| Satellite Master Antenna       | \$12.5 Million in Annual Receipts   |
| Television Systems             | or Less                             |
+--------------------------------+-------------------------------------+
| 24 GHz -- Incumbent Licensees  | 1,500 Employees or Fewer            |
+--------------------------------+-------------------------------------+
| 24 GHz -- Future Licensees     | **Small Business** is average gross |
|                                | revenues of \$15M or less for the   |
|                                | preceding three years (includes     |
|                                | affiliates and persons or entities  |
|                                | that hold interest in such entity   |
|                                | and their affiliates)               |
|                                |                                     |
|                                | **Very Small Business** is average  |
|                                | gross revenues of \$3M or less for  |
|                                | the preceding three years (includes |
|                                | affiliates and persons or entities  |
|                                | that hold interest in such entity   |
|                                | and their affiliates)               |
+--------------------------------+-------------------------------------+
| ***Miscellaneous***            |                                     |
+--------------------------------+-------------------------------------+
| On-Line Information Services   | \$18 Million in Annual Receipts or  |
|                                | Less                                |
+--------------------------------+-------------------------------------+
| Radio and Television           | 750 Employees or Fewer              |
| Broadcasting and Wireless      |                                     |
| Communications Equipment       |                                     |
| Manufacturers                  |                                     |
+--------------------------------+-------------------------------------+
| Audio and Video Equipment      |                                     |
| Manufacturers                  |                                     |
+--------------------------------+-------------------------------------+
| Telephone Apparatus            | 1,000 Employees or Fewer            |
| Manufacturers (Except          |                                     |
| Cellular)                      |                                     |
+--------------------------------+-------------------------------------+
| Medical Implant Device         | 500 Employees or Fewer              |
| Manufacturers                  |                                     |
+--------------------------------+-------------------------------------+
| Hospitals                      | \$29 Million in Annual Receipts or  |
|                                | Less                                |
+--------------------------------+-------------------------------------+
| Nursing Homes                  | \$11.5 Million in Annual Receipts   |
|                                | or Less                             |
+--------------------------------+-------------------------------------+
| Hotels and Motels              | \$6 Million in Annual Receipts or   |
|                                | Less                                |
+--------------------------------+-------------------------------------+
| Tower Owners                   | (See Lessee's Type of Business)     |
+--------------------------------+-------------------------------------+

[^1]: 47 U.S.C. § 325(c).

[^2]: 47 U.S.C. § 325(c).

[^3]: *See* File No. 325-NEW-20030529-00004 (July 16, 2003) ("Section
    325(c) permit")

[^4]: According to PSN, the official call sign for XEDD is XESDD. *See*
    Letter from Henry A. Solomon, Esq. to Kathy Berthot, Deputy Chief,
    Spectrum Enforcement Division, Enforcement Bureau, at note 1 (March
    8, 2004) ("March 8 LOI Response"). Hereinafter, Station XEDD will be
    referred to as Station XESDD.

[^5]: *Id.*

[^6]: In its March 29, 2004 response to a letter of inquiry issued by
    the Enforcement Bureau, PSN stated that Mr. Bonilla "does not
    recall" being advised by the FCC agent that Station XEKTT was
    causing interference to U.S. broadcast stations. PSN stated that the
    agent told Mr. Bonilla that the Commission had been receiving
    complaints that Station XEKTT was not properly authorized on
    frequency 560 kHz. PSN further stated that Mr. Bonilla "does not
    deny that the FCC agent may have meant to imply that XEKTT was
    causing interference." Letter from Henry A. Solomon, Esq. to Kathy
    Berthot, Deputy Chief, Spectrum Enforcement Division, Enforcement
    Bureau, at 2 (March 29, 2004) ("March 29 LOI Response").

[^7]: March 29 LOI Response at 3.

[^8]: *Id*.

[^9]: *Id*.

[^10]: *See* Petition to Rescind Authorization (January 16, 2004)
    (jointly filed by Owens One Company, Inc., licensee of KUZZ(AM), 550
    kHz, Bakersfield, California, AMFM Radio Licenses, LLC, licensee of
    KLAC(AM), 570 kHz, Los Angeles, California and KFYI(AM), 550 kHz,
    Phoenix, Arizona, Capstar TX Limited Partnership, licensee of
    KBLU(AM), 560 kHz, Yuma, Arizona and KGO-AM Radio, Inc., licensee of
    KSFO(AM), 560 kHz, San Francisco, California).

[^11]: *See* note 10, *supra* (identifying the stations licensed to the
    Joint Petitioners and affected by Station XEKTT's operations).

[^12]: *See* *Agreement Between the Government of the United States of
    America and the Government of the United Mexican States Relating to
    the AM Broadcasting Service in the Medium Frequency Band*, 1986.

[^13]: *See* Supplement to and Motion for Expeditious Grant of Petition
    to Rescind Authorization (filed by the Joint Petitioners, January
    28, 2004)

[^14]: The supplement to the petition anticipated that Station XESS's
    operations would affect Station KABC(AM), 590 kHz, Los Angeles,
    California, licensed to KABC-AM Radio, Inc., wholly owned by ABC
    Holding Company, Inc., which also wholly owns KGO-AM Radio, Inc.,
    the licensee of KSFO(AM).

[^15]: *See* Supplement to Motion for Expeditious Grant of Petition to
    Rescind Authorization (filed by the Joint Petitioners, February 11,
    2004).

[^16]: *See* note 14 and accompanying text, *supra.*

[^17]: *See* Letters Joseph P. Casey, Chief, Spectrum Enforcement
    Division, Enforcement Bureau, to Henry A. Solomon, Esq., Jaime
    Bonilla Valdez, President, PSN, Gregory L. Masters, Esq., Marnie K.
    Sarver, Esq., Tom W. Davidson, Esq. and Natalie G. Roisman, Esq.
    (March 18, 2004) and (February 11, 2004).

[^18]: *See* March 8 LOI Response and March 29 LOI Response.

[^19]: *See* March 29 LOI Response at 1, 5, 6.

[^20]: *See* March 29 LOI Response at 1, 5, 6. We note that PSN's
    president, Jaime Bonilla, apparently has attributable and/or related
    interests in the three Mexican stations. Specifically, PSN stated
    that Mr. Bonilla holds the title of General Director (unsalaried) at
    Media Sports De Mexico, S.A. de C.V. ("MSM"), which manages all
    three Mexican stations, and his spouse owns the controlling interest
    (98 percent of the voting shares) of MSM. March 29 LOI Response*.*
    at 7. PSN further stated that MSM is seeking SCT authority to
    acquire the stations and currently "holds title to the \[their\]
    transmitting facilities that were constructed pursuant to the
    upgrade authorizations," for which PSN financed all construction
    costs. *Id.* Finally, PSN stated that it has oral time brokerage
    agreements with all three Mexican stations. *Id.* at 7.

[^21]: March 8 LOI Response at 2. PSN indicates in its March 8 LOI
    Response that it first became aware that Station XEKTT was operating
    on frequency 560 kHz in mid-November 2003. *Id*. However, we note
    that the Mexican government apparently did not authorize Station
    XEKTT to operate on frequency 560 kHz until December 9, 2003. *See*
    paragraph 6, *supra.*

[^22]: March 8 LOI Response at 2.

[^23]: March 29 LOI Response at 2.

[^24]: March 8 LOI Response at 3.

[^25]: *See* Letter from Henry A. Solomon, Esq. to Kathy Berthot, Deputy
    Chief, Spectrum Enforcement Division, Enforcement Bureau (February
    25, 2004).

[^26]: *See* Letter from Henry A. Solomon, Esq. to Kathy Berthot, Deputy
    Chief, Spectrum Enforcement Division, Enforcement Bureau (April 7,
    2004).

[^27]: *Id.* at 1.

[^28]: *Id.* at 2.

[^29]: Letter from Tom W. Davidson and Natalie G. Roisman, counsel for
    KGO-AM Radio, Inc., and Gregory L. Masters and Marnie K. Sarver,
    counsel for Owens One Company, AMFM Radio Licenses, LLC and Capstar
    TX Limited Partnership, to Joseph P. Casey, Chief, Spectrum
    Enforcement Division, Enforcement Bureau (April 8, 2004).

[^30]: *Id.* at 1.

[^31]: *Id.*

[^32]: *Id.*

[^33]: *See American Broadcasting Cos., Inc.,* 35 FCC 2d 1, 5-6 ¶ 9
    (1972); *see also Fox Television Stations, Inc.*, 77 RR 2d 132,133,
    137-38 ¶¶ 5, 30, 33-35 (1994), *vacated and remanded* *on other
    grounds, Channel 51 of San Diego v. FCC,* 79 F.3d 1187, 1188-89
    (D.C. Cir. 1996), *rev'd on remand, Fox Television Stations, Inc.,*
    11 FCC Rcd 14870, 14875-78 ¶¶ 17-25 (1996); *aff'd sub nom, Radio
    Television S.A. DE C.V. et al. v. FCC,* 130 F.3d 1078 (D.C. Cir.
    1997).

[^34]: As previously noted, PSN states that Mr. Bonilla "does not
    recall" being advised of the interference from Station XEKTT to
    licensed U.S. broadcast stations when the FCC agent visited PSN's
    Chula Vista studio in early December 2003. *See* note 6, *supra*.
    However, PSN was clearly on notice of the interference and the fact
    that Station XEKTT's upgraded facilities had not been coordinated
    with and approved by the International Bureau when the petition to
    rescind was filed on January 16, 2004, more than a month before PSN
    ceased supplying programming to Station XEKTT.

[^35]: Section 312(f))(1) of the Act, 47 U.S.C. § 312(f)(1), which
    applies to violations for which forfeitures are assessed under
    Section 503(b) of the Act, provides that "\[t\]he term 'willful',
    ... means the conscious and deliberate commission or omission of
    such act, irrespective of any intent to violate any provision of
    this Act or any rule or regulation of the Commission authorized by
    this Act\...." *See Southern California Broadcasting Co.*, 6 FCC Rcd
    4387 (1991).

[^36]: Section 312(f)(2) of the Act provides that "\[t\]he term
    'repeated', when used with reference to the commission or omission
    of any act, means the commission or omission of such act more than
    once or, if such commission or omission is continuous, for more than
    one day." 47 U.S.C. § 312(f)(2).

[^37]: 47 U.S.C. § 503(b)(1)(A).

[^38]: 47 C.F.R. § 1.80(a)(2).

[^39]: *See* 47 U.S.C. § 503(b); 47 C.F.R. § 1.80(b)(3).

[^40]: 47 U.S.C. § 503(b)(2)(D); *The Commission's Forfeiture Policy
    Statement and Amendment of Section 1.80 of the Rules to Incorporate
    the Forfeiture Guidelines*, 12 FCC Rcd 17087, 17110 (1997), *recon.
    denied* 15 FCC Rcd 303 (1999) ("*Forfeiture Policy Statement"*).

[^41]: The fact that there is no established base forfeiture amount for
    this violation does not indicate that no forfeiture should be
    imposed. The *Forfeiture Policy Statement* states that "\... any
    omission of a specific rule violation from the \... \[forfeiture
    guidelines\] \... should not signal that the Commission considers
    any unlisted violation as nonexistent or unimportant." *Forfeiture
    Policy Statement*, 12 FCC Rcd at 17099. The Commission retains the
    discretion, moreover, to depart from the *Forfeiture Policy
    Statement* and issue forfeitures on a case‑by‑case basis, under its
    general forfeiture authority contained in Section 503 of the Act.
    *Id.*

[^42]: Given that PSN has tendered its Section 325(c) permit for
    cancellation, we find that the Joint Petitioners' petition to
    rescind PSN's Section 325(c) permit is moot and we accordingly
    dismiss it. To the extent that the Joint Petitioners request that
    PSN's permit be cancelled with prejudice, we refer that matter to
    the International Bureau for consideration.

[^43]: *See AT&T Wireless Services, Inc.,* 17 FCC Rcd 21866, 21871 ¶ 14
    (2002); *KGVL, Inc.*, 42 FCC 2d 258, 259 (1973).

[^44]: 47 U.S.C. § 503(b).

[^45]: 47 C.F.R. § 0.111, 0.311 and 1.80.

[^46]: *See* 47 C.F.R. § 1.1914.

[^47]: For purposes of the forfeiture proceeding initiated by this
    *NAL*, Pacific Spanish Network, Inc. shall be the only party to the
    proceeding.