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Investor Relations

SEC Filings

GRAHAM HOLDINGS CO filed this Form 10-K on 03/29/1994
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     In September 1990 the Company formed a limited partnership with American
Personal Communications, Inc. ("APC"), a private company owned by individuals
with substantial prior experience in the cellular telephone industry, to
develop experimental PCS systems in the Washington, D.C./Baltimore area.  APC
currently is the sole general partner (although the Company has the right,
subject to prior FCC consent, eventually to convert its interest into that of a
general partner); the Company holds a majority of the partnership interests and
provides most of the partnership's financing.  The partnership was awarded two
FCC experimental licenses (subsequently consolidated into a single license) and
began experimental PCS operations in the fall of 1991.

     On December 23, 1993, the FCC finalized the award of a "pioneer's
preference" to the partnership, in recognition of its efforts to develop PCS.
The preference is for 30 MHz of spectrum in the "Block A" set of frequencies
(as described below) and covers the Washington/Baltimore Major Trading Area,
which consists of the District of Columbia and 65 counties in Maryland,
northern Virginia, West Virginia and southern Pennsylvania with an aggregate
population of nearly 8 million people.  The preference entitles the partnership
to apply for a license subject only to meeting basic licensing qualifications.
Accordingly, the partnership filed its application for a PCS authorization on
January 18, 1994.  Petitions for reconsideration and judicial appeals may be
filed with respect to the partnership's preference grant and its scope, and
petitions to deny may be filed with respect to its application.

     The partners may also bid on PCS licenses outside the Washington/Baltimore
area.  The Company and APC have agreed that if either party wishes to bid for
licenses covering such areas the other party will have a right to participate.

     The Omnibus Budget Reconciliation Act of 1993 provided that PCS licenses
would be awarded by auctions, subject to the FCC's power to except holders of a
pioneer's preference.  By mid-1994 the FCC is expected to adopt rules for
conducting these auctions.  For the PCS frequencies for which the partnership
might be interested in applying, auctions are likely to begin late in 1994.

     The FCC also has issued rules for the licensing and operation of PCS
services.  Those rules are the subject of petitions for reconsideration on
which the FCC is expected to act by the summer of 1994.  The present rules
allocate seven different frequency blocks for broadband, licensed PCS
(narrowband PCS uses much narrower bandwidths in other frequencies to provide
more specialized services; and unlicensed PCS, to be implemented on still other
frequencies, also would not generally be competitive with broadband PCS):
Block A--1850-1865 and 1930-1945 MHz, Block B--1865-1880 and 1945-1960 MHz,
Block C--1880-1890 and 1960-1970 MHz, Block D--2130-2135 and 2180-2185 MHz,
Block E--2135-2140 and 2185-2190 MHz, Block F--2140-2145 and 2190-2195 MHz,
and Block G--2145-2150 and 2195-2200 MHz.  The first two sets of frequencies
would be licensed for each of 51 Major Trading Areas ("MTA's") as designated by
Rand McNally and adopted by the FCC.  The remaining five frequency blocks would
be licensed for 492 Basic Trading Areas ("BTA's"), also as designated by Rand
McNally and adopted by the FCC.  Companies with substantial cellular holdings
in these areas would be eligible to bid only for Blocks E, F and G, and could
hold only one such license.  Block C and D frequencies would be reserved for
designated entities   women, minorities, small businesses and rural telephone

     PCS will compete with established cellular providers which generally use
analog technology but which can convert to digital technologies.  Their
eligibility for Block E, F or G spectrum, combined with their current access to
25 MHz of spectrum unencumbered by incumbent microwave users, would potentially
provide them with advantages compared to PCS providers.  Enhanced Specialized