Local Television Service Act of 1988

Local Television Service Act of 1988 - Amends the Communications Act of 1934 to mandate a policy under which the Federal Communications Commission (FCC) allocates VHF (very high frequency) commercial television broadcasting channels in ways that assure no fewer than one such channel to each Principal Metropolitan Statistical Area (PMSA) of more than 1,000,000 persons, if technically feasible.

Directs the FCC to: (1) order reallocation of a channel or the hyphenation of a community of license within such a PMSA if a VHF commercial television broadcast station licensee notifies the FCC that it wishes such action; (2) issue a license to the licensee under the changed conditions for a term equal to the term remaining on the existing license; and (3) permit the license to be renewed for another term without considering other applications for the same channel, if certain findings are made.

Requires the FCC to initiate rulemaking to ensure primary program service from at least one VHF commercial television station to any PMSA in question that is not receiving such service. Directs the FCC to report to the Congress on these proceedings and on recommendations to achieve the expressed policy.