June was a busy month for both the FCC and TV Broadcasters. As the TV Incentive Spectrum Auction timeline approaches (March 29, 2016), the FCC has closed the loop on several key issues that were previously left open.
Additionally, two petitions filed by the National Association of Broadcasters (NAB) and Sinclair Broadcasting, challenging elements and mechanics of the upcoming spectrum auction, were each turned down by the U.S. Court of Appeals for the District of Columbia.
This major obstacle aside clears the path to the FCC’s proposed overall auction timetable. Highlights from the month include:
Bid & Auction Timing Set.
The FCC announced its intent to deliver the “unique” initial bids to each station by early September 2015. Following receipt of a bid, each station will have 60 days to respond regarding their commitment to participate in the auction process along with the specific level they have chosen.
The primary choices available to each broadcaster include:
1. Participate and go off air (surrender license)
2. Participate and share a UHF channel with another broadcaster
3. Participate and move to VHF
4. Do not participate in the auction
Price To Pay For Optionality. Although options 2 & 3 above provide broadcasters the flexibility of selling their license while also continuing to broadcast post-auction, the timing and amount of payments will lower in each case.
Channel Sharing. Originally, auction rules dictated the need for broadcasters to indicate details of their channel-sharing plans prior to the auctions. The FCC has since modified this provision to allow for an extended window to disclose channel-sharing plans.
Designated Entity (DE) Set-Asides. No increase to the proposed 30 MHz of low-band broadcast spectrum for set-aside for competitive wireless carriers to 40 MHz (as Sprint & T-Mobile have lobbied). The commission also announced that rules governing participation of DE’s will be substantially curtailed. This was a direct result of DISH’s use of DE’s during the AWS-3 auctions.
No Protection for TV Translator Stations. In addition to the incremental request for 1 remaining designated public broadcast channel per unserved market, were both motions have been denied.
White Space. The proposed reserve 1 UHF channel for unlicensed spectrum (white space) remains open.
We now have substantially more detail with less question marks than at any point in this long-awaited event. With the FCC continuing to deliver incrementally more process and logistical details to broadcasters, it appears that final decisions will begin to be made.
