Tele-Media Corp. v. Federal Communications Commission

697 F.2d 402, 225 U.S. App. D.C. 160, 52 Rad. Reg. 2d (P & F) 1571, 1983 U.S. App. LEXIS 27757
CourtCourt of Appeals for the D.C. Circuit
DecidedJanuary 7, 1983
DocketNo. 79-1820
StatusPublished
Cited by1 cases

This text of 697 F.2d 402 (Tele-Media Corp. v. Federal Communications Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tele-Media Corp. v. Federal Communications Commission, 697 F.2d 402, 225 U.S. App. D.C. 160, 52 Rad. Reg. 2d (P & F) 1571, 1983 U.S. App. LEXIS 27757 (D.C. Cir. 1983).

Opinion

Opinion for the court filed by Senior Circuit Judge McGOWAN.

McGOWAN, Senior Circuit Judge:

Petitioners Tele-Media Corporation1 and Tele-Media Company of Key West2 (“TeleMedia” or “company”) seek review of a decision of the Federal Communications Commission (“FCC” or “Commission”) dismissing their petitions to deny the applications for translator station construction permits filed by the Board of County Commissioners of Monroe County, Florida (“County”).

In January, 1977, the County submitted applications to the FCC to construct and operate a number of UHF television translators in order to rebroadcast the signals of five Miami, Florida, television stations. Tele-Media asked the Commission to deny the County’s applications outright or to designate them for an evidentiary hearing pursuant to section 309(e) of the Communications Act of 1934, as amended, 47 U.S.C. § 309(e). Tele-Media contended that the FCC was required to hold such a hearing because Tele-Media, an existing cable operator in the area, had provided substantial evidence that the licensing of the County’s translator system would cause economic injury to the company and that injury would redound to the public detriment. The company also argued that the County had not obtained the retransmission broadcast consent required by 47 U.S.C. § 325(a), lacked the funds required to construct and operate the proposed system, and had not shown a need for the translator project. Finally, the company argued that the applications should not be acted upon until the conclusion of a pending FCC rulemaking proceeding.3 Without conducting an evidentiary hearing, the FCC unconditionally granted the County’s applications. Board of County Commissioners, Monroe County, Florida, 72 F.C.C.2d 683 (1979). Because we find that the company has raised no specific and material questions of fact that would warrant remand for the requested hearing, and because we find that the Commission correctly concluded that grant of the County’s applications is in the public interest, we affirm the Commission’s order in all respects.

I

Monroe County, Florida, is located at the southern tip of the state, and the inhabited portion consists almost entirely of the Florida Keys, a series of small islands stretching from the southern tip of mainland Florida southward for more than 100 miles into the Gulf of Mexico. There are no broadcast television stations presently licensed to any community in the County. The nearest broadcast market is Miami, Florida. The Keys are 40 miles from Miami at their nearest point and some 150 miles at their farthest point. Because of their physical remoteness from Miami,4 the Keys have never had satisfactory off-the-air television reception.5

[163]*163This circumstance led the State of Florida and the County to grant a franchise in 1965 to a private cable television (CATV) company, Cable-Vision, Inc., to furnish cable television service to all the Keys.6 Under the terms of the franchise, Cable-Vision was granted an exclusive, 30-year right to furnish cable service to the entire county. J.A. 292. Cable-Vision, however, did not embark on an ambitious plan of expansion. Although it was authorized to serve the entire county, it only provided service to Key West and to the Marathon area in the central portion of the Keys. The remainder of the county was left without any service. Moreover, the CATV system only carried the three Miami national network stations.7 Id.

The 30-year exclusivity provision effectively barred the County from developing improved service by franchising a competing CATV company. Accordingly, in response to strong public demand, the elected Board of' County Commissioners in 1973 unanimously adopted an ordinance authorizing applications to the FCC for UHF television translator stations to be operated by the County. J.A. 292-93. A television translator is a broadcast station, operating at relatively low power, that receives a television signal from a distant location on its original broadcast channel, amplifies it, and retransmits it to the general public on another channel.8 The ordinance recited that the purpose of the translator system was to rectify “the unsatisfactory conditions existing in the reception of direct television signals now available to the public in [the] County.”9 J.A. 386.

The filing of the translator applications, however, was delayed because the County was forced into litigation by Cable-Vision’s challenge to the County’s right to operate the proposed translators. J.A. 293.10 In 1976, while that litigation was pending, the cable system was sold to Tele-Media Corporation.11 Id. At that time, the CATV sys[164]*164tem served only two communities and had a five-channel capacity. J.A. 164. Tele-Media commenced expansion of its system, which included the construction of new cable plants in Key Largo and Matecumbe and a twenty-channel system with two-way capacity in Big Pine.12 J.A. 164-65.

On January 13, 1977, the County filed with the Commission its applications for construction permits for the translators.13 Petitions to deny the applications were filed by Tele-Media, raising five substantive objections to the proposal. It argued that these objections required the Commission to deny the applications outright or to designate them for hearing pursuant to section 309(e) of the Communications Act, 47 U.S.C. § 309(e). J.A. 81-161, 162-283.

First, it asserted that the competition offered by the County’s translators would result in the elimination of local programming originated by Tele-Media and would ultimately bankrupt the CATV system.14 Tele-Media argued that our decision in Carroll Broadcasting Co. v. FCC, 258 F.2d 440 (D.C.Cir.1958), compelled the FCC to hold an evidentiary hearing in this case. In Carroll, the court’s focus was directed toward projected competition between an existing broadcast licensee and an applicant for a new broadcast station. We were concerned about protecting the public interest in those instances where an additional broadcast station in the market would have such a severe economic impact on an existing broadcast station as to compel it to reduce or discontinue its public service programming, programming that would not be replaced by the new entrant. The court ruled that “when an existing licensee offers to prove that the economic effect of another station would be detrimental to the public interest, the Commission should afford an opportunity for presentation of such proof and, if the evidence is substantial ..., should make a finding or findings.” 258 F.2d at 443. While Tele-Media recognized that the Carroll decision involved competition between an existing broadcasting station and a potential broadcast licensee, J.A. 200, it asserted that the doctrine should apply to existing cable systems threatened by broadcasting services, J.A.

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697 F.2d 402, 225 U.S. App. D.C. 160, 52 Rad. Reg. 2d (P & F) 1571, 1983 U.S. App. LEXIS 27757, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tele-media-corp-v-federal-communications-commission-cadc-1983.