On September 20, 1956, Southwest States Inc. – a consortium managed by George Oliver, Robert Houck, Hoyt Houck, John McCarthy, Sam Fenberg and real estate firm Estate Development, and which owned radio station KAMQ (1010 AM, now KTNZ) – filed an application with the Federal Communications Commission (FCC) to obtain a license and construction permit to operate a commercial television station on VHF channel 7. On February 5, 1957, Kenyon Brown – owner of local radio station KLYN (940 AM, now KIXZ) as well as KWFT in Wichita Falls (now Plano-licensed KEXB) – filed a separate license application for channel 7. Brown withdrew his application for VHF channel 7 on December 11 of that year, ceding the application to Southwest States under an agreement in which that group would pay Brown $10,000 for out-of-pocket expenses if application was granted by August 7, 1957 or $7,500 if application was granted by September 20. The FCC awarded the license and permit for channel 7 to Southern States on August 1, 1957; the group subsequently requested and received approval to assign KVII-TV (referencing the roman numeral for the number "7") as the television station's call letters.