Tv And Wireless Clash Over Spectrum Clearance

Broadcasters and wireless carriers filed dueling comments with FCC last week on Commission's plan to clear Ch. 60-69 band of analog TV stations to make way for wireless users. Broadcasters urged FCC to embrace voluntary methods of band-clearing as part of 700 MHz auction now set for March and used comments to chide Commission for inaction on digital must-carry. At same time, several wireless companies called on FCC to bar broadcasters from gaining windfall by refusing to participate in coordinated clearing process. Both sides seek certainty before auction and DTV deadlines.

FCC issued further rulemaking in late June on voluntary clearance of 700 MHz band by incumbent UHF broadcasters and whether those stations should be permitted to share spectrum in time and/or bits (TVD June 26 p4). Since then, it has delayed auction twice (it's now scheduled March 6) citing unusually complex issues involving highly coveted spectrum (TVD Aug 7 p1).

Pax TV pointed to spectrum auctions just concluded in Germany that raised nearly $50 billion. With spectrum to be auctioned in U.S. reaching 3 times as many people, auctions "could turn out to be an absolute bonanza for the U.S. Treasury," Chmn. Lowell Paxson said. But, he said, those potential proceeds to U.S. and "continuation of the information revolution... are in grave jeopardy unless the FCC acts now to take down the roadblocks." Those roadblocks include no digital must-carry, "a build-out deadline mandate that ignores the unavailability of towers, transmitters and antennas," plus fact "there are virtually no digital receivers being purchased" in U.S.

USA Bcstg., which owns 8 TV stations in spectrum to be cleared for nonbroadcast users, told Commission it should "reject any mandatory proposals for participating in the band-clearing process" and instead "should provide incumbent broadcasters... broad flexibility" to enter into voluntary "clearing arrangements." Also, USA said, Commission should "clearly and promptly address critical uncertainties that are slowing the digital transition" -- such as must-carry. Broadcasters' digital transition costs are being "exacerbated by the uncertainty surrounding the DTV transition," USA said.

NAB said that even if voluntary clearing of Ch. 60-69 didn't result in TV stations' moving from those channels, "mandatory clearing" of broadcasters from band "would be contrary to congressional intent and the public interest if, as a result, existing analog TV service is lost to consumers." NAB also opposed any temporary relocation of dislocated stations to analog Ch. 52-58 as "stop-gap measures, at best," because those channels also are subject to future licensing for nonbroadcast services.

MSTV said major problem with DTV transition was "that there are too many obstacles between [digital] signals and the consumers who must access them [by buying DTV receivers] in order to reduce reliance on analog television." There's no way to relocate Ch. 60-69 stations during transition "without a heavy service penalty," MSTV said. "That penalty should be borne only by those stations who [voluntarily] agree to absorb it and should not be allowed to impact" on stations that aren't parties to voluntary relocation agreements. Association also said FCC should state "that it will not allow any new interference to existing or planned" DTV operations. Plus, MSTV said, adoption of cable must- carry rules is "long overdue."

Shop At Home told Commission that mandatory early switch of its 3 stations in that band "will have profound [negative] financial implications." Therefore, Shop At Home said, it "strongly encourages" Commission to sanction "a private, voluntary secondary auction to clear the 60s spectrum... Any mechanism that provides for early departure by a licensee from its spectrum must be voluntary and market-oriented." And, because of lack of DTV receivers in consumers' hands, any "band-clearing process" established by Commission "must be given full digital [must] carriage rights," Shop At Home said.

Entravision Holdings, licensee of 11 TV stations, told FCC it was "concerned that in this rush to provide spectrum for wireless purposes and to secure funds for the Treasury, the Commission is ignoring free, over-the-air television." Entravision also questioned agency's authority "to engage itself in a private auction mechanism designed solely to benefit certain classes of participants."

On wireless side, Verizon Wireless said public interest portions of Telecom Act supported FCC's writing rule in which TV station could be ordered to change its channel of operation. "The Commission should remain mindful of the fundamental fact that unless a clear path is found to clearing a substantial number of broadcast stations from the 700 MHz band, this spectrum could remain unusable for a long time," Verizon said. Carrier lauded FCC conclusion that it would adopt presumption in favor of approving requests for voluntary industry band-clearing arrangements. But it said it "believes that the Commission must do more to facilitate the voluntary band-clearing process."

Specifically, Verizon said it favored coordinated secondary auction process to clear 700 MHz band instead of separate negotiations in each market where incumbents occupy that frequency. Company urged FCC to adopt regulatory safeguards so that one incumbent holdout couldn't reap substantial financial rewards by not participating in voluntary coordinated process. Citing Sec. 303 of Telecom Act, carrier said there was "ample authority for the Commission to adopt a limited relocation rule." In that context, FCC has power to make public interest finding to craft rule under which broadcaster "can be ordered to change its channel," it said.

Spectrum Exchange, which is developing private market mechanism to address interference issues, told FCC that private company rather than govt. should run secondary auction. "Generally speaking, it is inappropriate for public agencies to perform jobs that can be done reasonably by the private sector," it said. Spectrum Exchange and investment bank Allen & Co. are planning secondary auction for band-clearing rights, which would be linked to actual FCC spectrum auction. ==================================================================

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