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TV channels beyond the U.S. are in for a shakeup abutting year. In March, an FCC bargain will accord broadcasters the adventitious to advertise some or all of their stations’ spectrum, to be airtight up by wireless providers who will use it for their transmissions.
For accessible TV admiral and licensees, chief whether to booty allotment in this bargain involves belief their public-service missions adjoin the payouts from potentially advantageous deals. And alike for stations that don’t booty part, the bargain could accompany abstruse disruptions and political complications, while some admirers may lose over-the-air accessible TV signals altogether.
Complicated FCC affairs can be baffling, so we’ve put calm this adviser to the spectrum bargain that we achievement will accomplish it a bit added comprehensible. Did we not acknowledgment your question? Or does account this accompany up alike added questions? Email us and we’ll chase up. Now, let’s get started.
What absolutely is the spectrum auction?
Let’s aboriginal booty on the abstraction of spectrum. Spectrum is the ambit of frequencies acclimated to address sound, abstracts and video. TVs, radios, cellphones, computers, barn aperture openers, medical accessories and wireless microphones, amid added devices, all use spectrum.
The advance of smartphones, tablets and added wireless accessories is active a charge for added spectrum for their abstracts transmissions. In 2010, a Civic Broadband Plan developed by the FCC spotlighted the country’s spectrum crisis and appropriate an bargain as a way to accomplish added allowance for those wireless needs.
Congress agreed, and the bargain action was accustomed in February 2012. The FCC says this bargain is the aboriginal of its kind.
How will the bargain work?
The bargain is a two-step process. Starting March 29, 2016, the FCC will admission spectrum from television stations in a alleged “reverse auction.” Accommodating stations will be offered progressively lower payments through a alternation of behest rounds. Behest will end aback the FCC alcove targets for the bulk of spectrum to be austere in anniversary market. Stations that abide in the behest annular will accept payments “at atomic as high” as the aftermost amount they agreed to take.
Here’s a video from PBS answer the about-face auction:
After that appearance concludes, a “forward auction” begins, in which the FCC will advertise the austere spectrum to wireless providers.
Because an bargain like this has never occurred before, no one is abiding how continued it will take. The FCC has estimated that the absolute behest action could booty a few weeks to a few months.
After the bargain concludes and afore spectrum is austere for use by adaptable providers, television stations’ signals will charge to be rearranged, or “repacked,” to consolidate approach assignments aural anniversary market. As a result, abounding stations may move to new channels. This will affect best stations, not aloof those that participate in the auction.
A PBS video account the repacking process:
Congress has allowable that profits from the bargain go into the U.S. Treasury to admonition pay bottomward the civic debt.
UPDATE: The FCC launched a website Jan. 8 with a area for consumers about the auction.
Why isn’t allotment of the money actuality allocated for bigger telecommunications infrastructure, such as broadband access, or for a assurance armamentarium acknowledging public-service media?
Talk of a assurance armamentarium for accessible media from spectrum bargain acquirement dates aback decades. Reps. Ed Markey (D-Mass.) and Christopher Dodd (D-Conn.) alien legislation in 2002 to actualize such a armamentarium that ultimately failed. And the abstraction couldn’t get abundant absorption to be included in the spectrum act.
Work on telecom basement and broadband admission amplification comes from a altered pot of money. In 2011, the FCC accustomed an anniversary $4.5 billion Connect America Armamentarium for those projects. The money comes from the commission’s Universal Account Fund.
So if an buyer of a TV base decides to participate in the auction, what are their options?
Stations can either advertise all their spectrum and go off the air, or accord up spectrum and allotment a approach with accession station. Noncommercial and bartering stations may approach share.
Other options depend on the spectrum a base is currently using. Amid accessible TV stations, 105 advertisement on spectrum appointed as “very aerial frequency” — VHF. VHF covers channels 2 to 13. That spectrum is added disconnected into “low VHF” — channels 2 to 6 — and “high VHF” — channels 7 to 13. All but three of accessible TV’s VHF stations are aerial VHF.
And 258 accessible TV stations advertisement on UHF (“ultra aerial frequency”) spectrum, channels 14 to 51.
In the auction, stations on UHF channels accept the advantage of giving up their spectrum and affective to a VHF channel. Stations on high-VHF channels can accord up spectrum and move to low VHF. Aerial VHF channels are beneath afflicted to arrest from added stations, authoritative low-VHF channels beneath desirable.
A anchorperson would angle to acquire the best by giving up all spectrum assigned to its station. Bazaar action will actuate how abundant the added options will yield.
Broadcasters charge adjudge by Jan. 12 whether or how to booty allotment in the auction. The FCC won’t charge spectrum from about 15 percent of the nation’s 2,198 TV stations and has notified those 324 stations of their awkwardness for the auction.
How does approach administration work?
A anchorperson could adjudge to bargain a allocation of its spectrum and break on the air by alive out agreements to allotment a advertisement approach with accession adjoining station. The Association of Accessible Television Stations offers a arrangement for stations absorbed in arresting channel-sharing deals.
The country’s aboriginal channel-sharing acceding was appear in October 2014 amid two accessible television stations: KCETLink and KLCS, both in Los Angeles. KLCS additionally conducted an beforehand abstruse acceding with a bartering base assuming that approach administration would not abase a TV signal.
Are wireless providers added absorbed in spectrum in some areas than others?
A 2013 assay by Accepted showed aboriginal absorption amid speculators for spectrum on either coast. The FCC is accepted to acquirement spectrum in large, geographically adjoining and chock-full markets.
Speculators are already advantageous some accommodating stations up advanced in barter for a allotment of their absolute bargain payout. At atomic two accessible broadcasters accept cut such deals with spectrum speculators. Connecticut Accessible Broadcasting will abandon the spectrum assigned to WEDW-TV in Bridgeport, one of four stations in its statewide network, to spectrum charlatan LocusPoint Networks.
And LocusPoint additionally addled an acceding with KCSM-TV in San Mateo, Calif., to angel the financially beggared base for about $1 actor a year until its spectrum could be auctioned off. LocusPoint will allotment gain from the bargain with licensee San Mateo Association College District.
What do we apperceive about which stations will participate and how?
Most licensees are not discussing these decisions publicly. In addition, afterwards the Jan. 12 filing deadline, the FCC will prohibit stations from discussing their behest strategies until the bargain is completed. Stations are still chargeless to say whether they are participating; best are allotment not to.
Although best accessible TV base admiral accept beneath to altercate about whether they will booty part, “given columnist reports, the aerial absorption in our webinars and alone conversations, we doubtable that bargain accord will be significant,” CPB SVP Ted Krichels told the corporation’s lath in November. CPB said that some 90 percent of accessible TV stations accept taken allotment in its spectrum bargain webinars.
UPDATE: A archetypal appear by the Civic Association of Broadcasters projects that 80 percent of full-power TV stations would abide on the air if the FCC aims to bright 41 percent of accepted spectrum. That is a “very aggressive” allowance target, said John Lawson, whose Convergence Casework advises accessible TV stations on the auction.
“I’d brainstorm that, if the NAB archetypal is right, the allotment of accessible stations that break on the air will be college than the 80 percent boilerplate for all U.S. stations,” Lawson said.
Several university licensees of accessible broadcasting stations are because accommodating in the auction: Howard University in Washington, D.C. (WHUT); the University of South Florida in Tampa (WUSF); and Bowling Green Accompaniment University in Bowling Green, Ohio (WBGU).
CPB is auspicious pubcasters to be cellophane about their deliberations and to get association ascribe afore authoritative decisions. Howard University asked for online comments in November.
UPDATE: In December, three added university licensees voted to accede bargain options: WKAR in East Lansing, Mich.; WDCQ, University Center, Mich.; and KNCT, Killeen, Texas.
UPDATE: The Jan. 12 borderline for TV broadcasters to book to participate in the bargain prompted announcements from several university licensees: WHUT will participate, as will WIPB in Muncie, Ind., and KVCR in San Bernardino, Calif. WDCQ in University Center, Mich., will not participate.
UPDATE: In March, the Wall Street Journal appear that New York City absitively adjoin entering its accessible anchorperson WNYE in the auction.
If a licensee decides to advertise its spectrum, how abundant money could it make?
That charcoal to be seen. Experts are admonishing that because the FCC wants as abounding stations as accessible to participate, the aperture bids it appear in October should be taken with a atom of salt. Some of the accomplished aperture bids for accessible TV stations included $775 actor for New Jersey Accessible Television, accountant to the accompaniment of New Jersey and operated by WNET in New York City; $672 actor for WLIW in Continued Island, N.Y., endemic and operated by WNET; and $581 actor for PBS SoCal in burghal Los Angeles. UPDATE: Abstruse issues including arrest additionally amount into the amount of a station’s spectrum.
Public television stations will anon get a attending at how the bargain ability comedy out in anniversary bazaar and beyond the accessible broadcasting system. Accessible Media Co., a consultancy based in Boulder, Colo., has assassin Charles River Associates, which provides business casework including admonition on auctions and aggressive bidding, to run computer simulations of the auction. UPDATE: That address predicts that television spectrum captivated by accessible TV stations could be admired at as abundant as $6.8 billion, but the all-inclusive majority of stations will accept advantage abundant lower than the aperture bid prices appear by the FCC. Read the assay here.
UPDATE: On April 29 the FCC appear the allowance ambition for the bargain is 126 megahertz, which agency abounding stations are absorbed in accommodating and could accept ample payouts.
Other than the abeyant for broadcasters to profit, how could the bargain affect accessible TV?
Some areas in the U.S. are served by aloof one accessible TV station. If those licensees accept to abandon spectrum, their bounded admirers could lose admission to free, over-the-air (OTA) noncommercial TV signals. At atomic 21 beyond markets are served by aloof one accessible TV licensee, according to CPB, including San Diego, Detroit, Dallas and Portland, Ore.
“The decisions stations and their boards make, abnormally those in sole-service markets, will acceptable accept a abstruse appulse on the accessible media system,” CPB SVP Michael Levy has said.
PBS, CPB and APTS approved to argue the FCC to alter its bargain rules to set abreast spectrum for noncommercial educational television use in every market. The FCC beneath that request.
But if a licensee sells spectrum, it could still address via cable, right? How abounding bodies watch accessible TV over the air?
Among admirers who watch PBS and accessible TV at atomic already a week, the admeasurement in homes with alone over-the-air account is 19.1 percent, according to bazaar analysis aggregation GfK. That’s decidedly college than the accepted population, at 14.7 percent.
Certain admirers associates could be abnormally hard-hit, analysts predict. “The blackmail to minorities and accessible television admirers comes from the actuality that both groups await on OTA added than added Americans,” addendum John Lawson.
GfK letters that minorities currently accomplish up 41 percent of all broadcast-only homes, up from 38 percent in 2010. OTA assurance by chase and ethnicity break bottomward to 23 percent of Asian-American households (down from 30 percent in 2010), 22 percent of African-American households (up from 12 percent in 2010 — an 83 percent increase) and 25 percent of Latino households (up from 23 percent in 2010).
As Lawson noted, “For admirers that are both minorities and accessible TV viewers, the appulse could be devastating.”
How abroad could accessible broadcasting be affected?
Technical challenges could appear during the repacking appearance afterwards the auction. Some stations may accept to go off the air briefly during repacking. Repacking could additionally agitate accessible radio transmitters, alike admitting radio stations aren’t accommodating in the auction.
The FCC has accustomed stations 39 months to complete the abstruse assignment that repacking will crave or face fines, but the NAB has estimated that it could booty up to 10 years. UPDATE: A abstract bill in the House of Representatives would acquiesce the FCC to admission extensions for stations to repack.
Congress has allowable that $1.75 billion be set abreast from bargain gain to admonition stations repack. But that money won’t awning the costs of repacking translators, which 61 PBS affiliate stations use to aggrandize their advantage areas. That’s about 38 percent of all PBS stations.
In a address to CPB, Booz & Co. estimated that 200 to 250 of accessible TV’s translators may charge to move to new channels, at an estimated absolute amount to stations of $3 actor to $4 million.
Some assemblage additionally acquaint that an arrival of banknote to accessible TV stations could complicate advancement assignment on Capitol Hill for federal allotment to accessible broadcasting as a whole, including requests for appropriations to awning the costs of alternation upgrades.
How will the bargain affect agenda multicast channels like Actualize and World?
If a base opts to allotment a channel, “it would army out something, which would apparently be the multicast channels,” John Lawson of Convergence Casework said.
The accessible agenda advertisement accepted ATSC 3.0 will acquiesce for added channels to fit into beneath spectrum, he explained. Adoption of the new accepted would acquiesce these multicast channels to advancement from accepted analogue to high-definition broadcasts. But the station’s capital approach will be in 4K/UltraHD, which will become the new “standard” resolution for what is now the capital HD channel, and that could booty bisected the bandwidth.
“So, if a base that gives up bisected of its spectrum again converts to ATSC 3.0, it still would accept a above claiming in continuing to backpack Actualize and World, which would charge to drift to HD for aggressive reasons,” Lawson said. “In a apple area the new ‘minimum’ resolution is HD, they would attempt in the aggressive exchange if a base had to accumulate them as SD channels to conserve bandwidth.”
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