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Before the
               Federal Communications Commission
                     Washington, D.C. 20554



In re Peninsula Communications, Inc.
 
Applications for Renewal of License for FM
Translator Stations 

K272DG and K285EG, Seward, Alaska;
K285EF, Kenai, Alaska;
K283AB, Kenai/Soldotna, Alaska; 
K257DB, Anchor Point, Alaska; 
K265CK, Kachemak City, Alaska; 
K272CN, Homer, Alaska; and
K274AB and K285AA, Kodiak, Alaska

And

Applications to Assign the Licenses of 

K272DG and K285EG, Seward, Alaska;
K285EF, Kenai, Alaska;
K283AB, Kenai/Soldotna, Alaska; 
K257DB, Anchor Point, Alaska; 
K265CK, Kachemak City, Alaska; 
K272CN, Homer, Alaska; and
K274AB and K285AA, Kodiak, Alaska

From Peninsula Communications, Inc. to
Coastal Broadcast Communications, Inc.
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File Nos. BRFT-951124UT, YU, YW, ZE
through ZH, ZJ, ZK; BRFT-970930U5, YA
through YH

Facility ID Nos.: 52161, 52155, 52151, 52164,
52160, 52158, 52162, 52154 and 52148






File Nos. BALFT-970701TR through TZ



     MEMORANDUM OPINION AND ORDER AND ORDER TO SHOW CAUSE 

   Adopted:  May 10, 2001               Released: May 18, 2001

By the Commission:  

1.  In this Order, we dismiss as untimely a pleading styled "Rejection of Conditional License
Renewal and Assignment of License Grants," filed on March 15, 2000, by Peninsula Communications,
Inc. ("Peninsula").  We also, on our own motion: (1) rescind the 1995 and 1997 conditional grants of the
above-captioned renewal applications; (2) rescind the conditional grants of the above-captioned
assignment applications; (3) dismiss the 1995 and 1997 renewal applications, cancel the call signs and
terminate the operating authority for the translator stations K285EF, Kenai; K283AB, Kenai/Soldotna;
K257DB, Anchor Point; K265CK, Kachemak City; K272CN, Homer; and K274AB and K285AA,
Kodiak; (4) grant unconditionally the above-captioned renewals for translator stations K272DG and
K285EG, Seward; and (5) order Peninsula pursuant to section 316 of the Communications Act of 1934,
as amended (the "Act"), 47 U.S.C.  316, to show cause why its licenses for translators K272DG and
K285EG, Seward, should not be modified.  Our reasons follow.   

                         I.  Background

2.  This case primarily involves our eligibility and signal delivery requirements for FM
translators, which appear in 47 C.F.R.  74.1231(b), 74.1232(d).  Briefly, those provisions provide that
other-area or non-fill-in translators may only retransmit primary FM station signals received by the
translator directly over-the-air and that authorization for an "other-area" or "non-fill-in" translator will
not be granted to persons interested in or connected with the commercial "primary FM station."  These
rules became effective on June 1, 1991, with pre-existing translators required to comply no later than
June 1, 1994.  As the Commission explained in establishing these rules, translators are intended to
provide "supplementary service to areas in which direct reception of FM radio broadcast stations is
unsatisfactory due to distance or intervening terrain barriers," and the governing rules are meant "to
ensure that the translator service does not adversely affect the operation of FM radio broadcast
operations."  Amendment of Part 74 of the Commission's Rules Concerning FM Translator Stations,
supra note 3, 8 FCC Rcd at 5093.       

3.  Peninsula is the licensee and assignor of the captioned FM translator stations K272DG and
K285EG Seward; K285EF, Kenai; K283AB, Kenai/Soldotna; K257DB, Anchor Point; K265CK,
Kachemak City; K272CN, Homer; and K274AB and 285AA, Kodiak, Alaska.  Peninsula's nine
translator stations are all non-fill-in stations that rebroadcast primary stations licensed to Peninsula.  The
Seward translators, K272DG and K285EG, have received and continue to receive their primary stations'
signals for rebroadcast by methods other than directly over-the-air.  In addition, as explained herein, the
Seward translators are operating in conformance with our rules pursuant to waivers, while the seven
remaining translators are operating in violation of our translator rules and, except for the Kodiak
translators, have been since at least June 1, 1994.    

4.  On November 24, 1995, Peninsula filed license renewal applications for the nine translator
stations ("1995 renewal applications").  On September 11, 1996, the staff, in addressing petitions to deny
filed against six of the nine 1995 renewal applications,  determined that Peninsula had operated the non-
Seward translator stations in violation of our translator rules' ownership restrictions since June 1, 1994. 
See 47 C.F.R.  74.1232(d).  The staff also concluded that, although the Seward translator stations had
previously received waivers of this rule, continued waivers were not warranted.  Finally, the staff
deferred action on the 1995 renewal applications for a period of 60 days to allow Peninsula to file
assignment applications for the nine translators in order to come into compliance with 47 C.F.R.
 74.1232(d).  See Letter to Jeffrey D. Southmayd, Esq., Ref. No. 1800B4-AJS (Chief, Audio Services
Division, Mass Media Bureau, September 11, 1996) ("September 1996 letter").  Ultimately, acceptable
assignment applications were filed on July 1, 1997.  

5.  On November 6, 1997, the staff granted the applications to assign the licenses for all nine
translators.  So that the assignments could go forward, the staff also granted all nine 1995 renewal
applications, conditioned upon consummation of the authorized assignments.  Finally, the staff
conditioned consummation of the assignments on grant of the recently-filed 1997 renewal applications. 
See Letter to Jeffrey D. Southmayd, Esq., Ref. No. 1800B3-BSH (Chief, Audio Services Division, Mass
Media Bureau, November 6, 1997) ("November 1997 staff decision").  The November 1997 staff decision
stated that failure to meet the divestiture condition would render grant of the 1995 renewal applications
null and void.  Peninsula did not seek reconsideration or review of the November 1997 staff decision.
However, Cobb Communications, Inc., Glacier Communications, Inc., KSRM, Inc., and King
Broadcasters, Inc. (collectively referred to as "Petitioners") filed both a petition for reconsideration and
an application for review of the November 1997 staff decision.  As was the case with respect to the 1995
renewal applications, Petitioners did not challenge the license renewals or assignments for K257DB,
Anchor Point; K265CK, Kachemak City; or K272CN, Homer.  

     6.  In December 1998, the Commission dismissed and denied, respectively, Petitioners' petition
for reconsideration and their application for review.  Peninsula Communications, Inc., 13 FCC Rcd
23992 (1998) ("December 1998 MO&O").  Essentially, Petitioners had argued that the staff should
have revoked Peninsula's licenses because of the rule violations and that the staff erred in concluding
instead that Peninsula could sell the subject translator stations.  In our decision, we noted that, in the
absence of an unresolved basic character qualification issue, "there can be no doubt as to the
Commission's authority to cure or remedy [the violation of the ownership restrictions] by granting the
renewal applications conditioned on divestiture of the translators."  December 1998 MO&O, 13 FCC
Rcd at 23996.  In the December 1998 MO&O, we also granted Peninsula's 1997 renewal applications,
conditioned on consummation of the authorized assignments, and denied requests for waiver of 47
C.F.R.  74.1231(b), the over-the-air delivery restrictions, filed by Coastal for the Kodiak translators. 
However, with respect to the Seward translators, we determined that discontinuation of the previously
granted waivers of 47 C.F.R.  74.1231(b) would require termination of the operations of those
translators and would not serve the public interest at that time since the translators provided Seward's
only FM service.  We noted that a construction permit had been issued to William M. Holzheimer, one
of the principals of Glacier Communications, Inc., for a new FM station in Seward.  In regard thereto,
we stated that, if and when that full service FM station commenced operation, we "may consider
whether the circumstances under which the waivers were granted have so changed as to warrant
termination of the Seward translator operations."  See December 1998 MO&O, 13 FCC Rcd at 23997-
99.  
7.  Peninsula and Glacier sought reconsideration of the December 1998 MO&O.  Peninsula
disputed the conditional grants of the 1995 and 1997 renewal applications.  It also contested the
determination that the seven subject translators other than the ones in Seward had been operating in
violation of 47 C.F.R.  74.1232(d) since June 1, 1994 and the determination that continued waiver of 47
C.F.R.  74.1232(d) was not warranted for the two Seward translators.  In addition, Peninsula, but not
Coastal, requested reconsideration of the denial of requests for waivers of 47 C.F.R.  74.1231(b) for the
Kodiak translators.  Finally, Peninsula objected to our statement that we would consider whether to
terminate the Seward translators' 47 C.F.R.  74.1231(b) waivers if and when an unbuilt, full service FM
station authorized in Seward commenced operations.  Glacier argued that Peninsula's waivers of the
over-the-air reception rule, 47 C.F.R.  74.1231(b), should be discontinued for the Seward translators.  
     
8.  On February 14, 2000, we dismissed Peninsula's petition for reconsideration of the December
1998 MO&O.  Peninsula Communications, Inc., 15 FCC Rcd 3293 (2000) ("February 2000 MO&O"). 
We ordered Peninsula to consummate the authorized assignments within thirty days of the decision, and
we directed the staff to rescind the conditional grants of the 1995 and 1997 license renewal applications,
cancel the relevant call signs and terminate the translators' operating authority if Peninsula did not
comply with the divestiture requirement.  February 2000 MO&O, 15 FCC Rcd at 3294.  We also granted
Mr. Holzheimer's application for a license to cover the construction permit for full power FM station
KPFN(FM), Seward, Alaska and terminated the waivers of the 47 C.F.R.  74.1231(b) signal delivery
rule for the subject Seward translators effective 60 days from the release date of the order.  Id. at 3295-
96.  In so doing, we took note of Glacier's argument that the Peninsula translators were taking radio
revenues out of the small community of Seward, creating financial difficulties for the new FM full
service station, KPFN(FM), and we concluded that permitting Peninsula to continue to deliver a distant
signal to Seward would be a clear detriment to the continued viability of full service broadcast stations
licensed to Seward.  Id.  On February 23, 2000, Peninsula filed with the Commission a motion to stay the
effect of the December 1998 MO&O and the February 2000 MO&O pending the filing and resolution of
an appeal it intended to file. 

9.  On March 8, 2000, Peninsula filed an appeal of the Commission's February 2000 MO&O
with the United States Court of Appeals for the District of Columbia Circuit ("Court").  That same day,
Peninsula filed an Emergency Motion for Stay of the February 2000 MO&O with the Court arguing,
inter alia, that, pursuant to 47 U.S.C.  309(k), the Commission was required to grant its renewal
applications unconditionally and that its operating authority could be terminated only after a hearing
pursuant to 47 U.S.C.  312.  On March 14, 2000, the Court denied Peninsula's Emergency Motion for
Stay.  On March 15, 2000, Peninsula filed with the Commission the pleading now before us, a "Rejection
of Conditional License Renewal and Assignment of License Grants."  By order dated July 11, 2000, the
Court dismissed Peninsula's appeal without prejudice to refiling following the Commission's resolution
of the "Rejection of Conditional License Renewal and Assignment of License Grants."  

10.  Peninsula's "Rejection of Conditional License Renewal and Assignment of License Grants"
is premised on 47 C.F.R.  1.110.  Section 1.110 provides that, "[w]here the Commission without a
hearing grants any application in part, or with any privileges, terms, or conditions other than those
requested, the action of the Commission shall be considered as a grant of such application unless the
applicant shall within 30 days from the date on which such grant is made file with the Commission a
written request rejecting the grant as made.  Upon receipt of such request, the Commission will vacate its
original action upon the application and set the application for hearing in the same manner as other
applications are set for hearing."  In its pleading, Peninsula rejects the action of the Commission granting
Peninsula's 1995 and 1997 license renewal applications conditioned on divestiture of the translator
licenses and "upon the other conditions contained in the orders."  Peninsula also states that it rejects the
staff's grant of the 1997 assignment applications "subject to the conditions modifying the licenses for the
two Seward stations, and the other conditions placed thereon."  Peninsula asserts that, pursuant to 47
C.F.R.  1.110, the Commission must now vacate its original action on the applications and set the
applications for hearing.  Peninsula states that it considers the Commission's actions in the December
1998 MO&O and February 2000 MO&O "vacated ab initio as of this date, null, void, and of no further
force and effect, and requiring no further action by Peninsula in accordance therewith."  Peninsula
continues to operate the subject nine translator stations.  

                        II.  Discussion

     11.  After carefully considering all the circumstances, we believe that Peninsula's invocation of
47 C.F.R.  1.110 is untimely and warrants dismissal.  Peninsula's "Rejection of Conditional License
Renewal and Assignment of License Grants" was not filed until more than two years after conditional
grants of the 1995 renewal applications and 1997 assignment applications, which occurred as a result of
the November 1997 staff decision.  Peninsula did not seek reconsideration of the November 1997 staff
decision.  Rather, Peninsula actually accepted and endorsed the November 1997 conditional grants of
the 1995 renewal applications observing that the conditional grants were "fair and consistent with the
facts and existing legal precedent for approving such applications."  See Peninsula's December 30,
1997 Opposition to Application for Review, at page 8.  47 C.F.R.  1.110 "does not allow applicants
first to accept a partial grant, yet later to seek reconsideration of its conditions."  Tribune Company v.
FCC, 133 F.3d 61, 66 (D.C. Cir. 1998), citing Central Television, Inc. v. FCC, 834 F.2d 186, 190 (D.C.
Cir. 1987).  An applicant must file a written request rejecting a conditional grant within 30 days from
the date on which the conditional grant is made; otherwise, the action of the Commission shall be
considered as a grant of the application and that grant is not subject to appeal by the applicant.  See
Mobile Communications Corporation of America v. FCC, 77 F.3d 1399, 1404 (D.C. Cir. 1996), cert.
denied, 117 S.Ct. 81 (1996), citing Central Television, Inc. v. FCC, 834 F.2d 186, 190-91 (D.C. Cir.
1987).  Accordingly, we find the "Rejection of Conditional License Renewal and Assignment of
License Grants" at issue here to be untimely, and it is hereby dismissed.  See 47 C.F.R.  1.110; see
also Capital Telephone Co. v. FCC, 498 F.2d 734, 740 (1974). 
12.  In light of the dismissal of Peninsula's belated "Rejection of Conditional License Renewal
and Assignment of License Grants," we must now determine the fate of Peninsula's translators.  In this
regard, the failure to consummate the assignments, coupled with Coastal's apparent unwillingness to go
forward with the assignments at any time in the foreseeable future, compels the conclusion that the
conditions attached to the grants of Peninsula's 1995 and 1997 renewals were not (and likely will never
be) met.  Consistent with the February 2000 MO&O, we could rescind the 1995 and 1997 renewal grants
and order Peninsula's translators off the air immediately.  However, we believe our ultimate decision
should account for the different factual circumstances attending the different sets of translators. 
Accordingly, on our own motion, we are modifying our February 2000 MO&O as set forth in this
Order. 

13.  K257DB, Anchor Point; K265CK, Kachemak City; K272CN, Homer; K285EF, Kenai;
K283AB, Kenai/Soldotna; and K274AB and K285AA, Kodiak.  The staff correctly concluded in 1996
that Peninsula had been operating these facilities contrary to the requirements of 47 C.F.R.  74.1232(d)
since June 1, 1994.  See September 1996 letter.  To rectify this situation, the November 1997 staff
decision expressly conditioned grant of the translator stations' 1995 renewal applications on
consummation of their assignment to Coastal.  As noted, consummation of the assignments has not
occurred and will not occur.  Thus, Peninsula has not fulfilled the condition notwithstanding our explicit
warning that its failure to divest would result in rescission of the grants of the 1995 and 1997 renewal
applications.  See February 2000 MO&O, 15 FCC Rcd at 3294.  Accordingly, as to these stations, we
rescind the conditional grants of the 1995 and 1997 renewal applications, rescind the 1997 conditional
assignment grants, dismiss the 1995 renewal applications and dismiss, as moot, the 1997 assignment
applications and 1997 renewal applications.  P&R Termer v. FCC, 743 F.2d 918, 928 (D.C. Cir. 1984)
(termination of license for failure to meet license condition did not require hearing).  Finally, inasmuch
as Peninsula's authority to operate these translators has expired, Peninsula must cease operations by
12:00 midnight the day after release of this Order.  Further operations by Peninsula after this time may
subject it to serious sanctions, including but not limited to forfeitures under section 503(b) of the Act. 
See also 47 U.S.C.  401, 501 and 502.

14.  K272DG and K285EG, Seward ("Seward translators").  The procedural posture of the
Seward translators is akin to that of the other seven translators.  However, there is one significant
difference.  In this regard, the staff had explicitly granted Peninsula waivers of 47 C.F.R.  74.1231(b)
and 74.1232(d), waivers that we declined to rescind in our December 1998 MO&O because of concerns
about loss of FM programming to the public.  At the same time, however, we also indicated that
commencement of operations by a new full service FM station in Seward would justify review of the
situation to determine whether the waivers should continue.  In our February 2000 MO&O, we ordered
termination of the Seward waivers within 60 days of the release of that order in light of the
commencement of operations of KPFN(FM), Seward.  Peninsula has challenged this result in Court and
we believe that section 316 of the Act affords the most direct and expedient means of resolving the
matter.  Accordingly, we will grant unconditionally Peninsula's 1995 and 1997 renewals for the Seward
translators.  In addition, pursuant to section 316 of the Act, we will order Peninsula to show cause why
its Seward translators' licenses should not be modified to discontinue the previously granted waivers of
47 C.F.R.  74.1231(b) and 74.1232(d).  Should Peninsula protest the proposed order of modification,
we intend to rule on the matter expeditiously.  If Peninsula's licenses are modified, we expect it to
operate the translators in accordance with those authorizations, and, if it is unable to do so, to terminate
their operation immediately. 

                     III.  ORDERING CLAUSES

15.  Accordingly, IT IS ORDERED that Peninsula Communications, Inc.'s "Rejection of
Conditional License Renewal and Assignment of License Grants" IS DISMISSED. 

16.  IT IS FURTHER ORDERED that the conditional grants of the 1995 and 1997 renewal
applications filed by Peninsula Communications, Inc. for translator stations K257DB, Anchor Point,
Alaska; K265CK, Kachemak City, Alaska; K272CN, Homer, Alaska; K285EF, Kenai, Alaska; K283AB,
Kenai/Soldotna, Alaska; K274AB and K285AA, Kodiak, Alaska; and K272DG and K285EG, Seward,
Alaska, ARE RESCINDED.  

17.  IT IS FURTHER ORDERED that the conditional grants of the 1997 applications to assign
the licenses for translator stations K257DB, Anchor Point, Alaska; K265CK, Kachemak City, Alaska;
K272CN, Homer, Alaska; K285EF, Kenai, Alaska; K283AB, Kenai/Soldotna, Alaska; K274AB and
K285AA, Kodiak, Alaska; and K272DG and K285EG, Seward, Alaska, from Peninsula
Communications, Inc. to Coastal Broadcast Communications, Inc.  ARE RESCINDED.

18.  IT IS FURTHER ORDERED that the 1995 and 1997 renewal applications filed by Peninsula
Communications, Inc. for translator stations K257DB, Anchor Point, Alaska; K265CK, Kachemak City,
Alaska; K272CN, Homer, Alaska; K285EF, Kenai, Alaska; K283AB, Kenai/Soldotna, Alaska; and
K274AB and K285AA, Kodiak, Alaska, ARE DISMISSED.

19.  IT IS FURTHER ORDERED that the 1997 applications to assign the licenses for translator
stations K257DB, Anchor Point, Alaska; K265CK, Kachemak City, Alaska; K272CN, Homer, Alaska;
K285EF, Kenai, Alaska; K283AB, Kenai/Soldotna, Alaska; and K274AB and K285AA, Kodiak, Alaska,
from Peninsula Communications, Inc. to Coastal Broadcast Communications, Inc. ARE DISMISSED.

20.  IT IS FURTHER ORDERED that call signs for translator stations K257DB, Anchor Point,
Alaska; K265CK, Kachemak City, Alaska; K272CN, Homer, Alaska; K285EF, Kenai, Alaska; K283AB,
Kenai/Soldotna, Alaska; and K274AB and K285AA, Kodiak, Alaska, ARE DELETED.

21.  IT IS FURTHER ORDERED that Peninsula Communications, Inc. SHALL TERMINATE
OPERATIONS for translator stations K257DB, Anchor Point, Alaska; K265CK, Kachemak City,
Alaska; K272CN, Homer, Alaska; K285EF, Kenai, Alaska; K283AB, Kenai/Soldotna, Alaska; and
K274AB and K285AA, Kodiak, Alaska, effective at 12:00 midnight on the day after release of this
Order.

22.  IT IS FURTHER ORDERED that the 1995 and 1997 renewal applications filed by Peninsula
Communications, Inc. for translator stations K272DG and K285EG, Seward, Alaska, ARE GRANTED
UNCONDITIONALLY.

23.  IT IS FURTHER ORDERED that the 1997 applications to assign the licenses for translator
stations K272DG and K285EG, Seward, Alaska, from Peninsula Communications, Inc. to Coastal
Broadcast Communications, Inc. ARE DISMISSED.  

24.  IT IS FURTHER ORDERED that, pursuant to 47 U.S.C.  316(a) and 47 C.F.R.  1.87,
Peninsula Communications, Inc., IS DIRECTED TO SHOW CAUSE why the licenses for translator
stations K272DG and K285EG, Seward, Alaska, SHOULD NOT BE MODIFIED:

     [1.] To terminate waivers of 47 C.F.R.  74.1231(b); and 
     
          [2.] To terminate waivers of 47 C.F.R.  74.1232(d).


     25.  Pursuant to 47 C.F.R.  1.87, Peninsula Communications, Inc. may, not later than 30 days
from the release of this Order, file a written protest showing with particularity why the licenses for
translator stations K272DG and K285EG, Seward, Alaska, should not be modified as proposed.  Any
protest will be considered fully before the Commission decides whether to modify the subject licenses.  If
a hearing is deemed necessary because the protest raises a substantial and material question of fact, the
Mass Media Bureau shall designate such hearing in a subsequent order.  If no protest is filed by the date
referenced above, Peninsula Communications, Inc. will be deemed to have consented to the modification
as proposed and the Commission will issue a final order to that effect.   

     26.  IT IS FURTHER ORDERED that the Mass Media Bureau SHALL SEND, BY CERTIFIED
MAIL, RETURN RECEIPT REQUESTED, a copy of this Memorandum Opinion and Order and Order to
Show Cause to:

     Peninsula Communications, Inc.
     c/o Jeffrey D. Southmayd, Esquire
     Southmayd & Miller
     1220 19th Street, N.W., Suite 400
     Washington, D.C. 20036
                               
     Peninsula Communications, Inc.
     Post Office Box 109
     Homer, Alaska 99603

     Chester P. Coleman and Phoenix Broadcasting, Inc.
     c/o David Tillotson, Esquire
     4606 Charleston Terrace, N.W.
     Washington, D.C. 20007

     Kodiak Island Broadcasting Company, Inc.
     c/o Henry A. Solomon, Esquire
     Garvey, Schubert & Barer
     1000 Potomac Street, N.W., 5th Floor
     Washington, D.C. 20007

     KSRM, Inc.
     c/o Peter Gutmann, Esquire
     Pepper & Corazzini, L.L.P.
     1776 K Street, N.W., Suite 200
     Washington, D.C. 20006
                                
                                                                      
                              FEDERAL COMMUNICATIONS COMMISSION


                              Magalie Rom n Salas
                              Secretary