WQED the reframes the decision for FCC about proposed channel sale
Adapted from Current, July 8, 1996
Pittsburgh's WQED went ahead with Plan A last month: it petitioned the FCC June 24 to de-reserve its second public TV channel so that it can be sold or leased as a commercial station.
At the same time, the debt-burdened licensee revealed Plan B, a contingency plan that will allow it to earn proceeds from its station even if the FCC turns it down.
If the commission refuses to remove the reservation on WQEX, Channel 16, the licensee has arranged to swap the noncommercial license of Channel 16 for a nonreserved Channel 40 held by Cornerstone TeleVision, a local religious broadcaster.
In that case, Cornerstone will not only get Channel 16 in trade, but also 50 percent of the proceeds from Channel 40, if the price is less than $45 million, and 60 percent if the price is higher.
Even if the FCC approves Plan A and lets WQED sell its second channel, Cornerstone will get a fee of $7.5 million for agreeing to the contingency plan, a WQED spokesman confirmed.
With this deal in place, the FCC will no longer be voting on preservation of a second public TV channel in Pittsburgh; it will be voting, in effect, on what share of the proceeds go to WQED and what share to a religious broadcaster.
Under special legislation pushed through Congress by Pennsylvania's congressional delegation on behalf of WQED, the FCC will have just 30 days, until July 24, to consider the petition.
Groups that oppose the plan for various reasons include the Alliance for Progressive Action, which objects to the contraction of noncommercial media capacity; the Association of Local Television Stations (ALTV), which is not keen on the entry of a new commercial station in the Pittsburgh market; and WBPA, a commercial station that might lose its contract to carry the WB Network if Channel 16 becomes available. If the channel becomes available, Tribune Broadcasting is expected to bid for it to turn it into the WB Network affiliate, Variety reported.
Linda Wambaugh, spokeswoman for the Alliance for Progressive Action, objected to "the back room deals they set up that disregard community input." WQED had been planning to file the FCC petition June 1 without a board vote on disposal of Channel 16, and didn't take a board vote until June 20, shortly before filing, she said. Moreover, it was a "cute little maneuver," she said, for WQED to schedule its public meetings about the plan on July 18, almost a month after filing the petition.
WQED did, however, demonstrate some notable community support, filing more than 100 letters from community leaders, including the president of Duquesne University and the chairman of the Pittsburgh Post-Gazette.
A station release said a Duquesne University study puts the station "on the brink of bankruptcy," with $12 million in debts and $700,000 in annual debt service payments.
Proceeds from the surplus station will be used to eliminate WQED's debt and create an endowment for its future.
WQED argues that the dereservation of Channel 16 is in the public interest because it would prevent the "threatened loss or impairment" of local pubcasting service, the new capital would give WQED "breathing room" to redirect its energies, would help pubcasting become more self-sufficient, and would "dissolve an existing duopoly," adding an opportunity for another broadcast voice in Pittsburgh.
Earlier news: Congress asks FCC to expedite WQEX decision.
Web page created July 8, 1996
Current
The newspaper about public television and radio
in the United States
A service of Current Publishing Committee, Takoma Park, Md.
E-mail: webcurrent.org
301-270-7240
Copyright 1996
To Current's home page