FCC Seeks Comment on Report Outlining Potential Costs and Expenses Associated with Repacking Following the Broadcast Television Incentive Auction

The FCC has released a report prepared by Widelity Inc. -- Response to the Federal Communications Commission for the Broadcaster Transition Study Solicitation, available here -- which identifies and analyzes the processes and costs of the involuntary channel changes resulting from the “repacking” of broadcast spectrum following the incentive auction. The Report recognizes the challenges which will be faced by the broadcasting industry in repacking; because the auction procedures are not yet established, and the amount of spectrum to be converted to broadband use cannot be known for certain until the auction is concluded, the post-auction transition will be far more complex and compressed in time than the digital transition, for which channel assignments were specified well in advance. Widelity conducted interviews with station engineers, structural and RF engineers, manufacturers, suppliers, support companies, attorneys, and other service providers to assess and better understand what issues must be considered in order to complete the necessary channel changes within the time frame set forth in the Spectrum Act and to successfully accommodate the demands of the public and the broadcasting and broadband licensees.

The Report analyzes nine specific elements which are critical for affected stations: pre-planning, RF engineering, structural engineering, negotiations with tower owners, permitting, negotiations with the FCC, manufacturing/acquisition of equipment, tower work, and field engineering. Also included in the Report is a Catalog of Potential Expenses and Estimated Costs. The Catalog identifies expenses that broadcasters are most likely to incur in connection with post-auction repacking. Such expenses will include, at a minimum, transmitter modification (retuning if feasible) or replacement; transmitter building modification or relocation construction, replacement of antennas and transmission lines, tower equipment and rigging, development of interim facilities, and related professional expenses. The Catalog sets forth an estimated price range for each of these costs.

Station owners and personnel should review the Report and the Catalog carefully to consider the range of issues which Widelity has identified. The FCC is seeking comments on the Report and the Catalog. The FCC is particularly interested in comments addressing the categories of costs and suggested prices in the Catalog as well as general comments on the Report as a whole. Comments are due April 21, 2014 and Reply Comments are due May 6, 2014.

If you have any questions concerning the incentive auction or would like to submit comments on the Report, please contact your primary attorney in our office.