Honolulu Star-Bulletin from Honolulu, Hawaii • 21

Notable KGMB tower will be razed i i 1 i i' iinv-' i "1 '-'AS" DENNIS ODA DODA6STARBULLETIN.COM Staff members of two news departments are uncertain of their future employment in the combined operation. Doug Anderson, above, is the assignment editor for KGMB. Execs explain TV swap, but some see it as blurry 5 tt 4 ill iff Mi OIL PRICES CLIMB TO $72.42 A BARREL NEW YORK Oil prices spiked yesterday after the government reported a huge draw of crude oil from U.S. stockpiles. The report was surprising because the demand for energy has been knocked down so badly by the recession.

Crude withdrawn from storage facilities last week wiped out a buildup in supplies over the past two weeks. Benchmark crude for September delivery jumped $3.23 to settle at $72.42 a barrel on the New York Mercantile Exchange. That contract expires today, and most of the trading already has shifted to the October contract, which climbed $2.74 to settle at $73.83. If the October contract ends the week at that price, it would set a new high for 2009. Associated Press The Iconic KGMB-TV tower, located with the building at 1534 Kapiolani will eventually be torn down, not because of the new shared services agreement with KHNLKFVE-TV, but because KGMB owner MCG Capital sold the property in January 2008.

The tower has been the source of KGMB's broadcast signal since it signed on Dec. 1, 1952, under Pacific Broadcasting led by President Cecil Hef-tel. For years it displayed huge red neon letters that vertically spelled out "Aku," for Akuhead Pupule" (the late Hal Lewis), the popular morning show host on KGMB-AM590. The AM station's tower was actually on Ala Wai Boulevard in those days. KHETs original analog signal first emanated from the KGMB tower on Feb.

23, 1966. Heftel's signature is on the contract signed with the then-University of Hawaii-operated ETV to which Heftel donated the antenna. Heftel put 93.1 on the air using the tower on Oct. 1, 1967. The station's signal continued to emanate from the tower after Heftel sold KGMB-FM to put KULA-FM 92.3 on the air, from Waipahu.

KGMB-FM became KGMQ-FMand then KQMQ-FM and the transmitter eventually moved to Palehua Ridge. The only stations broadcasting from the tower at present are the digital television signals of KGMB and KHON. Erika Engle, Star-Bulletin Sources: Brock Whaley, broadcast historian: Steve Komori, vice president of content delivery, PBS Hawaii; Mike McCarthy, chief engineer, KGMB-TV STAR BULLETIN 2007 ThC tJWerl1CCMB: i lis have agreed to the swap. "The thought is to take CBS and NBC programming and place those on channels that currently Raycom has, and the University of Hawaii sports and other local programming would go onto what was KGMB, which will be KFVE," Folsom said. THE SWAPS "will keep CBS programming associated with the call letters KGMB and University of Hawaii sports associated with KFVE that's the easiest way to view it.

Don't worry about the underlying licenses, the viewers don't see the licenses anyway," Folsom said. Also, channel numbers have lost their significance as technology changes have viewers tuning in to a station using different numbers via over-the-air digital converter boxes, cable boxes or satellite TV services. Nevertheless, Raycom officials will ask Oceanic Time Warner Cable to realign channel assignments, Folsom said. That will leave Raycom operating all three stations with control over, and deriving revenue from, NBC- and CBS-network affiliations in Honolulu: ment "certainly increases the likelihood that an FCC violation will be perceived to have occurred, and increases the possibility that the 'line' will be pushed and an actual violation will occur somewhere down the line in the future," said Dan J. Alpert, a Virginia-based attorney who represents several Hawaii stations.

RAYCOM AND MCG will keep adverting sales separate, but will combine news staffers into one department that will provide newscasts for all three stations and some will be simulcast, McTear said. "Both of our (legal) advisers differ from what (Alpert) suggests," McTear said. Alpert described the agreement as "a very aggressive move" that "may result in questions by the FCC concerning whether an unauthorized transfer of control has occurred, and whether there is a violation of the FCC's multiple ownership limitations." McTear was unswayed by Alpert opinion. "We remain pretty confident that we are not going to be in violation of or flirting with any violation of FCC rules," he said. MCG will give up its major network affiliation but will offer UH sports and other programming a smaller revenue stream, but with no news operation to pay for, a less costly operation.

A single broadcast owner having two network affiliates in one market is not unprecedented, but it "is not commonplace," said Paul McTear, Raycom president and chief executive officer. NBC "has fallen so far that in many markets they're either the fourth or fifth station. The network has lost about 30 percent of its prime-time ratings," he said. Media Council Hawaii has characterized the arrangement as a thinly veiled attempt to circumvent FCC rules prohibiting joint ownership of two or more stations of the top four in a TV market, which KGMB and KHNL are. FCC guidelines for different types of cooperative agreements between broadcasters in the same market limit the parties to control of no more than 15 percent of the air time andor advertising time on another 1 The RaycomMCG agree BY ERIKA ENGLE erikastarbulletin.com The impending swap of call letters and programming between KGMB-TV and KFVE-TV is described as a way to provide a seamless transition for viewers.

Skeptics, media watchdogs and at least one attorney versed in Federal Communications Commission regulations see a different picture. The shared services agreement announced Tuesday between Alabama-based Raycom Media Inc. and Virginia-based MCG Capital Corp. will have both entities retain their broadcast licenses the KHNL and KFVE licenses will stay with Raycom while KGMB's will remain with MCG. However, FCC licenses are directly tied to a station's FCC registration number, facility Identification number and frequency allocation, not call letters, said Dave Folsom, Raycom vice president.

While the call letter swap will involve some FCC oversight despite an automated call letter reservation system, approval will likely be granted without Interven-nit)TT5mC5 RayCoTrY and MCG.