IP: FCC Clears the Way for 700 MHz Transition

[David Farber <dave () farber net>]

> From: Dewayne Hendricks <dewayne () warpspeed com>
>
> FCC Clears the Way for 700 MHz Transition
>
> Summary:
>
> Yesterday, the FCC affirmed current rules and granted certain additional 
> flexibility to speed the voluntary clearing of incumbent broadcasters in 
> the 746 MHz-806 MHz spectrum band. The commission modified its policies in 
> such a way as to provide certain additional flexibility for the 
> development of voluntary band-clearing arrangements between incumbent 
> broadcasters and new commercial wireless interests. The broadcasters also 
> won some concessions; they can continue to operate in analog mode and 
> convert to DTV until Dec. 31, 2005. They also may seek further extension 
> of the DTV construction deadline if less than 70% of viewers in the market 
> can receive digital signals.
>
> Full Article:
>
> WASHINGTON, DC - On reconsideration, the Federal Communications Commission 
> (FCC) has affirmed its rules and granted certain additional flexibility to 
> facilitate voluntary clearing of incumbent broadcasters in the 746-806 MHz 
> (Upper 700 MHz) spectrum band. This action builds on previous decisions 
> made pursuant to Congress's mandate that the Upper 700 MHz band be 
> allocated for future use by commercial and public safety wireless licensees.
>
> Television broadcast stations on Channels 60-69 currently occupy the Upper 
> 700 MHz band and may continue to operate on these frequencies until at 
> least December 31, 2006. However, Congress has also directed the 
> Commission to auction commercial spectrum in the band prior to the time 
> that broadcasters are required to vacate. Acknowledging that there are 
> strong public interest benefits favoring comprehensive band-clearing 
> agreements, the FCC has modified its policies to provide certain 
> additional flexibility to facilitate the development of voluntary 
> band-clearing arrangements between incumbent broadcasters and new 
> commercial wireless interests.
>
> The adopted item addresses petitions for reconsideration that were filed 
> in response to the FCC's Third Report and Order in this proceeding. The 
> Commission generally affirmed its earlier decisions that are intended to 
> accommodate voluntary band-clearing agreements among incumbent 
> broadcasters and new commercial wireless interests. The FCC also made 
> adjustments to certain DTV-related rules and policies for broadcasters 
> participating in band-clearing agreements. In particular, the Commission 
> granted petitioners' request to allow a broadcaster that gives up one of 
> its channels to accommodate band clearing the flexibility to continue to 
> operate in analog mode and convert to DTV at any time up until December 
> 31, 2005 and seek further extension of the DTV construction deadline if 
> less than 70% of the television households in its market are capable of 
> receiving DTV signals. The FCC also granted such broadcasters limited 
> relief from DTV policies regarding interference protection of 
> non-replicated service areas, and established a 90-day processing timeline 
> for modification applications filed in connection with band-clearing 
> arrangements. Finally, the FCC rejected arguments by a petitioner seeking 
> to reverse its interference protection policies in connection with 
> band-clearing arrangements.
>
> This decision is intended to promote greater regulatory certainty to 
> facilitate market-based, voluntary band-clearing arrangements between 
> incumbent broadcasters and new wireless interests.
>
> Action by the Commission September 7, 2001, by Order on Reconsideration of 
> the Third Report and Order (FCC 01-258). Chairman Powell, Commissioners 
> Abernathy and Martin, Commissioners Tristani and Copps concurring, and 
> Commissioners Tristani, Abernathy, Copps and Martin issuing separate 
> statements.
>
> Wireless Bureau Contact: Bill Huber (202) 418-0660, e-mail: whuber () fcc gov
>
> Mass Media Bureau Contacts: Mania Baghdadi, (202) 418-2120, e-mail: 
> mbaghdad () fcc gov; Gordon Godfrey, (202) 418-2193, e-mail: ggodfrey () fcc gov
>
> WT Docket No. 99-168
>
> CS Docket No. 98-120
>
> MM Docket No. 00-39
>
> Related Story:
>
> Paxson Lauds FCC Action
>
> WEST PALM BEACH, Fla.--(BUSINESS WIRE)--Sept. 17, 2001--Paxson 
> Communications Corp. (AMEX - PAX) announced today through its Chairman, 
> Lowell ``Bud'' Paxson, that the Federal Communications Commission (FCC) 
> has ruled favorably on the company's petition filed last March to create 
> rules to make it easier for broadcasters to clear the 700 MHz spectrum 
> currently used by UHF TV stations operating on channels 59 to 69. Paxson's 
> petition was filed on behalf of the Spectrum Clearing Alliance, which 
> represents approximately 65 - 70% of the 99 analog television stations 
> currently operating within the U.S. on UHF channels 59 to 69. The Petition 
> sought to allow stations the right to operate in analog on their in-core 
> TV assignments, whether analog or digital, subject only to the FCC's 
> interference rules and then flash-cut to digital operations on their 
> in-core channels at the end of the transition. In allowing this procedure, 
> the FCC permits stations to continue to reach their current audience 
> through analog television on in-core channels and abandon their digital or 
> analog channels in the 59-69 band prior to the end of the DTV transition. 
> Only 6 stations have both their analog and digital channels in the 59-69 
> band and these 6 stations will need FCC approval for a channel change to 
> an in-core channel and the FCC has indicated that it will entertain such 
> petitions.
>
> Coupled with earlier FCC rulings, the stations are now in a position to 
> negotiate early band clearing rights agreements with telcos and other 
> parties interested in participating in the FCC's 700 MHz spectrum auction. 
> With this ruling in place, potential bidders will be able to understand 
> and estimate the costs of clearing the 700 MHz spectrum before 
> participating in the government's auction to secure licenses to operate in 
> this spectrum with their next generation wireless communication technologies.
>
> Bud Paxson said his company, which has 17 stations operating on channels 
> 59 to 69, is the largest group operator of stations utilizing the 700 MHz 
> spectrum. ``In all cases, the early migration of our analog station 
> operations away from channels 59 through 69 would be coordinated with and 
> subject to receiving compensation from bidders in the 700 MHz spectrum 
> auction.''
>
> To facilitate a united negotiating strategy with potential bidders in the 
> 700 MHz auction, Paxson announced he has agreed to retain the services of 
> investment bankers Allen & Company and telco consultants Spectrum Exchange 
> Group, LLC. Under this arrangement, which will allow all other channel 59 
> to 69 analog or digital broadcasters to join the Spectrum Clearing 
> Alliance, Allen & Company will have the exclusive right to negotiate with 
> telcos and other bidders in the 700 MHz auction for compensation to the 
> broadcasters and time frames for abandoning the operation of UHF stations 
> on channels 59 to 69.
>
> Mr. Paxson said the immediate task is to approach all of the licensees of 
> stations operating on channels 59 to 69 to explain the FCC's actions and 
> what it means to them as to the potential compensation, the technical 
> issues, and the part Allen & Company plays in effectuating the Spectrum 
> Clearing Alliance's plan. ``Preliminarily, we have support from 65 - 70% 
> of the stations and now we need to officially get them to join the 
> Spectrum Clearing Alliance and Allen & Company's representation 
> agreement,'' said Paxson. ``As a group we need to work on the other 30% of 
> the incumbents to educate them on the benefits and potential compensation 
> and get them to join the Spectrum Clearing Alliance.'' The Spectrum 
> Clearing Alliance intends to work closely with the FCC to establish an 
> auction date as soon as possible when it has most of the 700 MHz licensees 
> in the Alliance.
>
> Other founding members of the Spectrum Clearing Alliance commented on the 
> FCC actions today as follows:
>
> Walter Ulloa, Chairman and CEO of Entravision, said, ``We believe that 
> this is a first step in the process of clearing of the 700 MHz band and 
> the auctioning of this spectrum for non-broadcast use. We look forward to 
> working with Bud Paxson, the Spectrum Clearing Alliance, and others as 
> agreements are negotiated that will allow a successful band clearing 
> process to occur.''
>
> Harry J. Pappas, President and CEO of Pappas Telecasting Companies, said, 
> ``This action by the Commission will dramatically enable one major step in 
> the digital TV transition scheme. Preparing to serve America's television 
> viewers with advanced free, over-the-air digital TV services is a massive 
> undertaking. By this action the FCC advances the public interest 
> significantly.''
>
> Nat Ostroff, Vice President, New Technology for Sinclair Broadcast Group 
> said, ``We congratulate Bud Paxson on the success of his persistent effort 
> to gain relief for the country's small market stations faced with the 
> economic challenge of building DTV while continuing to operate their 
> analog stations. We are also gratified to see that the FCC and its 
> Chairman have recognized the difficulties faced by the stations operating 
> today on channels 59 through 69. The FCC has demonstrated some of the 
> flexibility needed to ensure that free, over-the-air television will 
> remain a significant media in the digital era.''
>
> Jerry K. Rose, President and CEO of Christian Communications of 
> Chicagoland, Inc., Total Living Network (TLN), said, ``This bold move by 
> the FCC is a giant step forward for all parties concerned. We applaud 
> their visionary thinking and look forward to moving into the digital future.''
>
> Other points in the FCC's ruling include:
>
> -- Single channel broadcasters participating in band-clearing
>
> agreements may continue to operate in analog until December
>
> 31, 2005 or until 70% of the television households in their
>
> markets are capable of receiving digital broadcast signals.
>
> -- Delegated to its Mass Media Bureau the authority to establish
>
> a 90-day processing period for band-clearing requests.
>
> -- Noted the significant support for the Spectrum Clearing
>
> Alliance's band-clearing plan and encouraged broadcasters to
>
> join in this comprehensive plan as the method most likely to
>
> lead to the clearing of the upper 700 MHz band.
>
> -- Extended the period in which single-channel broadcasters have
>
> to replicate their existing analog service with their digital
>
> service.
>
> Finally, Mr. Paxson noted that all of Spectrum Alliance members recognize 
> the bold step taken by the FCC in clearly supporting the 700 MHz 
> incumbents' requests and feel that the FCC has taken a leadership position 
> in alleviating the spectrum crises facing our country. In particular, Mr. 
> Paxson commended FCC Chairman Powell for his personal efforts in focusing 
> the many resources of the FCC to evaluate the petition, study the 
> engineering and legal matters and issue this important final report and order.



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