Winter Park Communications, Inc. v. Federal Communications Commission

873 F.2d 347, 277 U.S. App. D.C. 134
Court of Appeals for the D.C. Circuit·Decided April 21, 1989·No. Nos. 85-1755, 88-1756·Published·Cited by 1 cases

Opinions

Opinion for the Court filed by Circuit Judge HARRY T. EDWARDS.

Opinion concurring in part and dissenting in part filed by Circuit Judge STEPHEN F. WILLIAMS.

HARRY T. EDWARDS, Circuit Judge:

In these consolidated cases, Metro Broadcasting, Inc. (“Metro”) and Winter Park Communications, Inc. (“Winter”) seek review of an order of the Federal Communications Commission (“FCC” or “Commission”) awarding Rainbow Broadcasting Company (“Rainbow”) a license to operate a UHF television station in Orlando, Florida. Winter argues that the Commission erred in refusing to award it a dispositive preference under section 307(b) of the Communications Act for providing the first local television service to the City of Winter Park, Florida. Metro raises a number of grounds of error, contending principally that the Commission violated the equal protection clause of the Constitution in giving Rainbow credit for minority ownership. On the record before us, we find that the Commission’s application of section 307(b) was consistent with FCC precedent. We also find that this case is clearly controlled by West Michigan Broadcasting Co. v. FCC, 735 F.2d 601 (D.C.Cir.1984), cert. denied, 470 U.S. 1027, 105 S.Ct. 1392, 84 L.Ed.2d 782 (1985), in which this court expressly held that the FCC’s use of an enhancement for minority status “easily passes constitutional muster.” Id. at 613. Accordingly, we deny the petitions for review.

I. Background

On February 26, 1982, following a rule-making proceeding, the FCC assigned a new UHF television channel to the City of Orlando, Florida. Amendment of § 73.606(b), Table of Assignments, 50 Rad. Reg.2d (P & F) 1714 (1982). Under the Commission’s then-existing “15-mile rule,” the channel was available for use in communities located within fifteen miles of Orlando.1 Petitioners Metro and Winter and intervenor Rainbow filed mutually exclusive applications for use of the channel. Metro and Rainbow designated Orlando as their place of license, and Winter specified the neighboring City of Winter Park, but all three applicants proposed to serve the entire Orlando metropolitan area, including Winter Park.

When parties file mutually exclusive applications for use of a broadcast channel in different localities, the Commission first determines whether any of the applicants is entitled to a preference under 47 U.S.C. § 307(b) (1982) for providing first or second local service to a community.2 If one applicant receives a section 307(b) preference over the others, then that applicant normally will prevail without a comparative hearing. See WHW Enterprises, Inc. v. FCC, 753 F.2d 1132, 1135 (D.C.Cir.1985). If no community is entitled to a section 307(b) preference, or if more than one applicant specifies the preferred community, the Commission then conducts a comparative hearing to evaluate the qualifications of [137] the competing applicants. See, e.g., Buena Vista Telecasters, 94 F.C.C.2d 625, 628 (Rev.Bd.1983).

In a comparative hearing, the Commission weighs both “quantitative” and “qualitative” factors. The quantitative assessment rests on the applicant’s proportional integration of ownership into management. If one applicant has a clear quantitative advantage, then that applicant receives the station (assuming that the applicant is otherwise qualified and does not own other media interests). See, e.g., WHW Enterprises, Inc., 89 F.C.C.2d 799, 819 (Rev.Bd. 1982), rev. denied, FCC 83-368 (Sept. 15, 1983), aff'd in part and rev’d in part on other grounds, 753 F.2d 1132 (D.C.Cir. 1985). If no applicant has a clear qualitative advantage, then the Commission assesses the applicants’ relative strengths on a variety of qualitative factors, including minority ownership, local residence, civic participation, and prior broadcast experience. These qualitative enhancements cannot, however, overcome clear quantitative differences. See WHW, 89 F.C.C.2d at 817.

After Metro, Winter and Rainbow filed their applications, the proceeding was assigned to an administrative law judge (“AU”), who issued a decision awarding the channel to Metro for use in Orlando. Metro Broadcasting, 96 F.C.C.2d 1073 (1983) (Miller, AU). The AU found that neither the City of Winter Park nor Orlando was entitled to a preference under section 307(b), because the Commission had assigned the channel to the Orlando area, Winter Park was “an integral part of the Orlando Urbanized Area,” and the center of Winter Park was less than five miles from the center of Orlando. Id. at 1087. The AU then evaluated the qualifications of the applicants themselves, and disqualified Rainbow for “lack of candor” in its application. Of the remaining two applicants, the AU found that Metro had a ninety-nine to ten percent quantitative advantage over Winter and that this advantage, together with Metro’s various qualitative enhancements, made Metro an “overwhelming comparative winner” over Winter. Id. at 1088.

Winter and Rainbow appealed to the FCC’s Review Board (“Board”), which reversed the AU on the lack-of-candor issue and awarded the channel to Rainbow.3 99 F.C.C.2d 688 (Rev.Bd.1984). The Board agreed with the AU that Winter Park was not entitled to a section 307(b) preference. However, the Board reduced Metro’s integration credit and found that Rainbow’s resulting quantitative advantage was “probably a ‘clear’ enough difference to be decisional.” Id. at 703. The Board also concluded, however, that Rainbow was ahead qualitatively. The Board reviewed a number of factors, emphasizing that Rainbow had 90% hispanic ownership participation, whereas Metro had only one 19.8% partner who was black. Overall, the Board concluded:

[Although the qualitative comparison between Rainbow and Metro is close, Rainbow’s substantial minority preference, in conjunction with its slight female ownership advantage and solid broadcast experience preference, somewhat outweighs Metro’s local residence and civil participation advantage.

Id. at 704.

Winter and Metro appealed to the Commission, which denied review of the Board’s decision largely without discussion, stating merely that it “agree[d] with the Board’s resolution of this case.” FCC 85-558, slip op. at 2 (Oct. 18, 1985). Winter and Metro appealed to this court.

Free access — add to your briefcase to read the full text and ask questions with AI

Winter Park Communications, Inc. v. Federal Communications Commission, 873 F.2d 347, 277 U.S. App. D.C. 134 (D.C. Cir. 1989).

873 F.2d 347 (Winter Park Communications, Inc. v. Federal Communications Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related