DSDB is the remaining applicant in what was once a three-party comparative proceeding for a new UHF television station on Channel 52 in Blanco, Texas. It was disqualified based on a finding that its principals had engaged in misrepresentations. Under the proposed settlement, DSDB would amend its application to substitute SL as the applicant in return for reimbursement of its expenses, and the amended application would be granted. The Commission, however, disapproved the proposed settlement because of DSDB's lack of qualifications. Because DSDB had not shown itself qualified to receive the grant of a construction permit, the Commission found that DSDB had nothing to assign.
Petitioners argue that disapproval of the settlement was contrary to the public interest.
They contend that despite the lengthy pendency of this proceeding, the settlement represents the only prospect for bringing a new television service to Blanco by an unquestionably qualified licensee. Petitioners also argue that approving the settlement would be consistent with Commission precedent. In this regard, they assert that, since DSDB prosecuted its application for many years, the application was not filed for the purpose of securing a settlement and cannot be considered abusive. Petitioners assert that under these circumstances only the qualifications of the prospective permittee concern the Commission, not those of the withdrawing applicant. The Bureau responds that Petitioners have shown no material error or omission in the Commission's action.