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Another radio topic sure to be discussed at the NAB convention this week is the ongoing story of the thousands of FM applications translators still pending at the FCC from the 2003 FM translator window. While this has been a topic at many of the NAB Conventions in the last 10 years, it looks like the end is near. On Tuesday, the FCC adopted yet another order in the processing of these translators, allowing applicants who specified that they were noncommercial operators to amend their applications in a window from April 8 to April 17 to specify commercial operations. That is important to such applicants as, soon after these applications were filed back in 2003, the FCC adopted a policy that said that applicants who elect noncommercial processing could not participate in an auction – and that they would be dismissed if they were mutually exclusive with commercial applicants. Not allowing these applicants the opportunity to amend (as the FCC has done in several other auctions from this period), would mean that the applicants would be dismissed for a defect that had not been announced at the time of their filing.

This is but one more step in the ongoing attempts to complete the processing of these applications so as to permit a new LPFM window later in the year. This will probably mean that thousands of new FM translators will be granted in the coming months – providing opportunities for the expansion of broadcasters' signals, either in the traditional way of filling in holes in the coverage of FM broadcast stations, or by allowing for the retransmission of AM and FM-HD signals. This should prompt many discussions at the NAB Convention as broadcasters look at the opportunities that these new translator stations will present.

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Every year, about this time, I dust off the crystal ball to offer a look at the year ahead to see what Washington has in store for broadcasters. This year, like many in the recent past, Washington will consider important issues for both radio and TV, as well as issues affecting the growing on-line presence of broadcasters. The FCC, Congress, and other government agencies are never afraid to provide their views on what the industry should be doing but, unlike other members of the broadcasters' audience, they can force broadcasters to pay attention to their views by way of new laws and regulations. And there is never a shortage of ideas from Washington as to how broadcasters should act. Some of the issues discussed below are perennials, coming back over and over again on my yearly list (often without resolution), while others are unique to this coming year.

Last week, we published a calendar of regulatory deadlines for broadcasters.  This article looks ahead, providing a preview of what other changes might be coming for broadcasters this year – but these are delivered with no guarantees that the issues listed will in fact bubble up to the top of the FCC's long list of pending items, or that they will be resolved when we predict. But at least this gives you some warning of what might be coming your way this year. Issues unique to radio and TV, and those that could affect the broadcast industry generally, are addressed below.

General Broadcast Issues

 

There are numerous issues before the FCC that affect both radio and television broadcasters, some of which have been pending for many years and are ripe for resolution, while others are raised in proceedings that are just beginning. These include:

 

Multiple Ownership Rules Review: The FCC is very close to resolving its Quadrennial review of its multiple ownership proceeding, officially begun in 2011 with a Notice of Proposed Rulemaking. The rumors were that the FCC was ready to issue an order at the end of 2012 relaxing the rules against the cross-ownership of broadcast stations and newspapers, as well as the radio-television cross-interest prohibitions, while leaving most other rules in place. TV Joint Sales Agreements were also rumored to be part of the FCC's considerations – perhaps making some or all of these agreements attributable. But even these modest changes in the rules are now on hold, while parties submit comments on the impact of any relaxation of the ownership rules on minority ownership. Still, we would expect that some decision on changes to the ownership rules should be expected at some point this year – probably early in the year. 

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The FCC has released the text of its Report and Order adopted last week, authorizing full power and Class A TV stations to share spectrum as part of the band clearing process for future wireless broadband spectrum auctions.  This action was authorized by Congress in the Spectrum Act, which became law in February as part of the Middle Class Tax Relief and Job Creation Act of 2012.  We summarized the Spectrum Act in a previous blog available here.

The Report and Order allows full power and Class A TV stations to enter into agreements whereby two stations will share one six MHz channel, thereby allowing one station to return its existing channel to the FCC for cancellation and availability in the upcoming spectrum auctions.  Presumably, one six MHz channel is sufficient bandwidth to support two HD channels.  In the Notice of Proposed Rulemaking for this proceeding, the FCC said it would let the sharing stations decide how much bandwidth each station would get.

The station giving up its channel would be entitled to compensation in the so-called "reverse auction" to be held by the FCC, subject to receipt of compensation deemed acceptable by the licensee.  Presumably, that compensation would be shared with the station giving up part of its 6 MHz band to allow the two stations to share that bandwidth.  The amount of compensation each station would get would likely be determined in their sharing agreement.

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While the FCC has not yet started a proceeding to set rules for the auction of television spectrum for broadband purposes, the Commission is taking steps to clear the spectrum in other ways.  Two weeks ago, we wrote about the FCC's actions proposing to remove the Class A designation from certain LPTV stations that had not met their children's television obligations.  Since then, the FCC has gone further - proposing to take away Class A status for stations that had been off the air for significant periods of time - even with FCC permission as, according to the FCC, they could not have met the requirement for Class A TV stations that they must provide significant local programming each week (see FCC releases here, here and here, all proposing the termination of Class A status for stations that had been off the air for much of the last two years).  Given that Class A stations are as protected in the same way as a full-power TV station from being permanently displaced by the FCC in any spectrum clearing for broadband, the loss of Class A status may well deny these stations a place on the dial after any repacking of the TV band to accommodate a spectrum auction, or they may not be able to receive any share of the proceeds from any incentive auction that would be available to a Class A station that decided to turn in its license in exchange for compensation from auction proceeds.

In another decision released this week, the FCC denied the request of a television station to move from Hagerstown Maryland to a close-in Washington DC suburb.  While part of the basis for the denial was perceived procedural issues, the FCC also specifically stated that "the Commission's priorities no longer support such a move" of a station into a Top 10 market while it was considering the consolidation of the TV band to clear parts of it to be auctioned for broadband.  So it appears that, for the foreseeable future, there will be no move-ins of rural TV stations toward any major market.  

And don't expect to get any slack for rule violations by a Class A TV station, as it seems clear that the FCC is looking to clear the TV band, to the extent possible, to make its job in the incentive auction easier (see this $13,000 fine for a Class A TV station that did not have all required children's television reports in its public file).  With license renewal coming up for TV stations starting in June, TV stations, especially Class A stations, need to make sure that there houses are in order, as the FCC certainly will be looking carefully.

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Yesterday, the FCC issued fines totaling $52,000 against four Class A television stations for belatedly filing their FCC Form 398 Children’s Television Programming Reports. The stations, each of which had missed at least a couple of years’ worth of Children’s Reports, were also fined for failing to timely place the reports in their public inspection files.  (If the Reports were not prepared and filed on time, then they similarly weren’t placed in the file at the right time).  The forfeitures all have essentially the same set of facts as this one.  The Commission had previously notified the licensees that their stations were missing Form 398 Reports and offered the “opportunity” for the station to avoid the issue by simply voluntarily reverting to a secondary LPTV station. While this would have potentially avoided the issue of the missing Children’s Television Reports, it would have left the stations as secondary facilities and without the primary status protection afforded to Class A television stations and full power TV stations. Such protection is critically important in light of the recent grant of authority for incentive auctions, as only Class A and full power TV stations are allowed to participate in the auction and are explicitly protected in the legislation. (See our earlier discussion regarding the incentive auction authority here.) LPTV stations, which did not receive such protection in the statute, are simply secondary services meaning that they can be moved or modified as the Commission sees fit. That authority will likely come in handy if and when it comes time for the FCC to repack the television spectrum, as it will have greater flexibility in moving or changing protections for LPTV stations.

Rather than accepting the chance to revert to low power status, the stations in these cases corrected their oversight and filed the missing Form 398 reports.  Despite responding to the Commisison's earlier letters and following up to file the missing reports, however, the FCC nonetheless issued the hefty forfeitures. Recently, we wrote about a number of “Show Cause Orders" issued by the FCC directing 16 Class A television stations to respond and demonstrate why the stations shouldn’t be downgraded to LPTV status (see our earlier post here). The stations subject to those Show Cause orders apparently failed to respond to the FCC’s letter about missing children’s reports.  With yesterday's forfeiture, it appears there is no good choice for a station that overlooked the obligation to file the children's reports, and these fines serve as an important reminder of the obligations of Class A television stations. 

As we noted in our post last week, all Class A licensees would be well advised to review their FCC compliance efforts to avoid falling victim to the FCC's spectrum clearance process.  The FCC has stated clearly that Class A licensees are required to comply with many full power TV requirements, including the need to maintain a main studio and a public inspection file, to comply with children's programming requirements, political programming requirements, station identification requirements and Emergency Alert System rules. Failure to comply with any of these requirements could result in loss of Class A status.  While the fines issues yesterday are hefty, losing the station's Class A primary status could be even more costly. 

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The FCC has released 16 Show Cause Orders threatening to deprive a number of low power television (LPTV) stations of their Class A status for failure to file Children's Television Programming Reports.  These orders appear to be implementing a long-rumored get-tough policy on Class A TV stations, as the FCC prepares to clear portions of the TV spectrum to auction it for use by wireless broadband providers, in accordance with the authorizing legislation we wrote about last week. Class A stations are protected from interference like full power TV stations, while other LPTV licensees can be displaced from their current channels by new primary users - potentially including future wireless broadband auction winners. Therefore, if these Class A stations are downgraded to LPTV status, the FCC could displace them as needed for spectrum auctions.  If they retain their Class A status, they are protected like full-power TV stations, and the FCC must attempt to replicate their coverage in any repacking of the spectrum that may occur.

These 16 Show Cause Orders all have essentially the same set of facts as this one.  Specifically, all of the stations failed to file multiple Children's Television Programming Reports and failed to respond to FCC letters cautioning the stations that failure to file these reports could result in loss of Class A status.  As the FCC notes in all of the Show Cause Orders, Class A licensees are required to comply with many full power TV requirements, including the need to maintain a main studio and a public inspection file, to comply with children's programming requirements, political programming requirements, station identification requirements and Emergency Alert System rules. Failure to comply with any of these requirements could result in loss of Class A status.

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By December 1, 2011, all commercial and noncommercial full power digital television (DTV) stations, as well as all digital low power, Class A, and television translator stations must electronically file an FCC Form 317 with the FCC. This Form reports whether the station has provided any ancillary and supplementary services during the twelve-month period ending on September 30, 2011. Under the Commission's Rules, in addition to providing free over-the-air broadcast television, DTV stations are permitted to offer services of any nature, consistent with the public interest, convenience, and necessity, on an ancillary or supplementary basis. Some examples of the kinds of services that may be provided include computer software distribution, data transmissions, teletext, interactive materials, aural messages, paging services, audio signals, and subscription video.  If the station did provide such ancillary services, then the FCC wants to know about it. More importantly, if the station generated revenue from the provision of those services, then the FCC wants its 5% cut of the gross revenues derived from such service.

All full power DTV stations -- regardless of whether the station holds a DTV license or is operating pursuant to Special Temporary Authority (STA), program test authority (PTA), or some other authority -- must file a Form 317 reporting whether or not it provided such services and whether it generated any income from such services. In addition, all licensees of digital low power television stations, digital television translator stations, or digital Class A television stations must also file a Form 317 by December 1st.  The Form 317 is brief, soliciting information about the license and the types of services provided, if any, and must be filed electronically through the FCC's CDBS filing system. 

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The Commission's recent Order establishing the rules and time line for low power television stations to convert to DTV has now been published in the Federal Register, meaning that most of the new rules regarding the conversion of low power television stations to digital television are now in effect.  As we wrote about extensively here,on July 15, 2011, the FCC adopted a Report and Order regarding the transition of low power television stations (LPTV), TV translator, and Class A low power stations to digital.  As set forth in that Order, September 1, 2015 will be the hard date for the conversion of all remaining analog LPTV stations to digital. The Order adopts the specific procedures, rules, and timing of the digital conversion for those stations, and with Friday's publication in the Federal Register, those rules are now in effect, with two exceptions.  The extension of the "ancillary and supplementary" rules to LPTV permittees operating pursuant to an STA is still awaiting OMB approval, as is the requirement that stations that have not yet taken steps to convert to digital must notify the FCC of their digital transition plans.  This second requirement will force stations to consider their digital future and share their transition plans with the Commission.  Once the OMB approves the collection of information inherent in that requirement, that part of the new rules will go into effect, and the FCC will announce the timing and requirements by a further public notice.

The FCC's DTV LPTV Order also established December 31, 2011 as the deadline for all LPTV and TV translator stations operating on out-of-core channels -- that is Channels 52 to 69 -- to cease operation. Any station that operates outside the core that does not already have a construction permit for a core band operation must file for a construction permit for the core band by September 1, 2011. Given that today is August 30th, hopefully out-of-core stations have their ducks in a row and are already on file, or preparing to file displacement applications to move into the core.  The FCC states that there will be no hardship extensions of the December 31 deadline – meaning that such stations must terminate operations no later than December 31 of this year no matter what. 

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The FCC today froze all applications for TV channel 51 by both applicants for full-power and low power facilities.  Channel 51 is immediately adjacent to the parts of the television bands that were reclaimed for wireless uses during the DTV transition.  Wireless users, including CTIA and the Rural Cellular Association, have sought to restrict use of Channel 51 because of the potential for interference to the wireless users in these new wireless frequencies.  Today's order not only freezes new applications for Channel 51 by both full-power and low power TV stations (including LPTV, TV translator and Class A TV stations), but it also freezes the processing of pending applications for the channel.  At the same time, the FCC has taken steps to encourage existing users of the channel to vacate it, giving low power applicants 60 days to amend pending applications to specify lower channels.

The freeze on applications is supposedly temporary, while the FCC considers a proposal for a rulemaking to permanently clear Channel 51 of TV users to eliminate the alleged interference to wireless users.  But, given the action here, and the FCC's other actions to clear portions of the TV spectrum for wireless users, it certainly looks like the FCC is predisposed to adopting the proposal of the wireless users to clear this channel.  The freeze affects proposals not only for new channels on this band, but also applications for increases in the facilities of stations already in the band so as to preserve the "status quo."  The FCC will consider waivers of the freeze, but only to replace existing facilities with new ones where the existing facilities need to be replaced or changed due damage by storm, zoning proceedings, or "unforeseen events."  Any new facilities must keep the station within its current coverage area.  No waivers of this requirement will be issued to low power stations - while full-power stations may be able to exceed their current contours only through a waiver request that demonstrates that some expansion is necessary to preserve existing coverage or the quality of service to the public.

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For our readers in the television business, there have been recent developments in two proceedings about which we have written recently.  Last week, we wrote about the extension of time to file reply comments on the CALM Act implementation Notice of Proposed Rulemaking, where the FCC is implementing a Congressional act to curb loud commercials.  The extension on the reply comments was granted as the Advanced Television Systems Committee was about to announce new amendments to its protocol that is the standard proposed as the basis by which compliance with the act is measured.  Given the importance of these standards, the FCC wanted to give interested parties at least a brief opportunity to comment on the revisions, thus warranting the extension.  According to an FCC Public Notice, those revised standard have now been announced, and can be viewed on the ATSC website, here.  Interestingly, as I write this article, the link to the Standards provided in the FCC Public Notice does not work, and the full report is not evident on the ATSC site.   Hopefully, those issues will be short lived, as the Reply comments are due on August 1.

Another recent proceeding of interest to television operators is the recent Order of the FCC dealing with the digital conversion of LPTV stations, Class A TV stations and TV translators.  We wrote about that proceeding here.  That Order sets deadlines this year for stations still operating in the portions of the television band that have already been reclaimed for use by wireless companies (Channels 52 to 69).  Any LPTV or TV translator still on these channels must file for a construction permit to move to the core television band by September 1 of this year.  The Order further requires that these stations stop operating on their current channels by the end of this year.  So that Channels 52 to 69 can be cleared on this very quick schedule, the FCC is expediting this proceeding, and has already published the Order in the Federal Register.  While this publication triggers the effective date of the Order (August 26 except for the portions dealing with fees for ancillary and supplemental services, which will be set at a later date), it also signals the start of the period in which Petitions for Reconsideration or Court appeals can be filed.  A not-so-fearless prediction - some sort of appeal will be filed, but it seems unlikely that it will be resolved by the September 1 filing deadline absent very unusual Court or Congressional intervention.  But watch for the filings in any event but, if you operate one of these stations on any channel between 52 and 69, be prepared to vacate the channel if nothing unusual changes the FCC's collective mind between now and then.

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Update - 7/28 - from an alert reader on the location of the new ATSC protocol:

I checked the ATSC website and the Recommended Practice is there.  Look under "Standards" and drop to "Recommended Practices".  There is probably confusion because the ATSC's A/85 is not a "Standard" but a "Recommended Practice".

recommended-practices/185-a85-techniques-for-establishing-and-maintaining-audio-loudness-for-digital-television

The FCC link is wrong

 

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The deadlines for the digital conversion of LPTV stations, TV translators and Class A TV stations were announced on Friday, in an Order where the FCC also provided some indication of their expected timetable for the reclamation of some of the television spectrum for broadband use – and that expectation is nowhere near as aggressive as originally announced two years ago in the FCC’s Broadband Report. The digital conversion of LPTV and translator stations will happen by September 1, 2015.  The FCC also ordered an earlier December 31, 2011 deadline for the digital conversion and clearing of the reclaimed spectrum by those stations still operating in parts of the  former television band (Channels 52 through 69) that have already been reclaimed and mostly auctioned for wireless uses. The digital conversion of Class A stations and other operational issues were also discussed in the order.  The details of the order may also reveal the Commission's thinking on the proposed reclamation of other portions of the TV spectrum for broadband use, and of the use of Channels 5 and 6 for radio.  Details on the deadlines and other actions by the FCC in this order are set out below. 

Conversion Deadline and Process for Stations in Core TV Band

LPTV, translator and Class A stations (referred to in the rest of this article simply as "LPTV stations" except with respect to the specific Class A rules discussed below) will have a hard deadline for digital conversion of September 1, 2015.  As of that date, all analog television operations in the US will cease.  If LPTV stations do not already have a construction permit authorizing digital operations, they must file for such a permit by May 1, 2015. All existing construction permits for a digital flash-cut on the LPTV station’s current channel are automatically extended by this Order until the September 15, 2015 deadline. This does not extend outstanding construction permits for digital companion channels. Extensions of those permits must be requested by the permittee. 

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Last week the FCC rejected a request by a low power television broadcaster seeking an experimental license to test a technology that would allow broadcast television stations to provide broadband access.  The brief decision, available here, was issued by the FCC's Media Bureau and rejected the request primarily on the grounds that the technology the LPTV broadcaster sought to test is inconsistent with the existing ATSC standard for transmission of digital television signals in the U.S.  This decision brought about a rebuke by a Wall Street Journal columnist, suggesting that the FCC was not fully exploring one way to rapidly deploy broadband through existing TV licensees, in fears of foregoing the revenues that would come from an auction of reclaimed television spectrum.   This issue arises while the FCC considers the digital conversion of LPTV, and the future of the television spectrum generally.

As has been well known and discussed for at least the last decade, the ATSC standard chosen for digital television broadcast service in the United States is not ideal for mobile service and is not well suited for two-way broadband service.  The current ATSC standard was designed to provide a signal to fixed locations for traditional in-home television watching.   As we have written before, in 2000, in the early days of the digital television conversion, some broadcasters suggested that the system be changed to accommodate a more robust signal allowing better mobile reception and other services that maximize the capacity of the digital channel. That proposal was rejected for fears of slowing the digital conversion, but is seemingly being revisited now. 

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A controversy has bubbled up in connection with the FCC proceeding to set the date by which Low Power Television stations will be required to convert to digital operations.  While the analog operations of full-power TV stations were mandatorily terminated in 2009, Low Power television stations and TV translators have not yet faced any end date for their analog operations - though the FCC recently suggested that the final date for analog broadcasting by these stations be set - perhaps as soon as next year.  In comments filed in the proceeding to set the end date, the question of when to terminate analog broadcasting became tangled in another issue - whether Channel 6 LPTV stations should be allowed to continue to be used to broadcast FM programming.  NPR suggested that the practice be terminated now, while Channel 6 licensees argued that this use was perfectly permissible under FCC rules, and that it provides a public interest benefit that should be preserved.

Channel 6 is immediately adjacent to the FM band.  Analog television stations used an audio transmission standard that was very similar to that used by FM stations, and the audio from analog Channel 6 stations could be picked up by FM radio receivers. In many major television markets across the country, LPTV operators have taken their stations, optimized the audio for FM reception, and started broadcasts intended to be treated like radio stations - programming music or talk like a radio station, with the video programming being secondary to the audio output.  Some have called these "Franken FMs", and many listeners don't even realize that they are listening to a station licensed for video operation - just assuming that radio on 87.7 or 87.9 is a normal extension of the FM band.  But this proceeding to end analog television broadcasting has brought the issue to the forefront.

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Last week, we wrote that the FCC is going ahead with a rulemaking looking at how broadband needs may require some reallocation of the TV spectrum to wireless uses.  The initiation of a rulemaking on that issue is planned for the next FCC meeting in late November.  With that proceeding about to begin, the FCC today froze all applications for new Low Power Television (LPTV) stations and for TV Translators, and for major changes in existing LPTV and TV translator stations.  Over a year ago, after not having accepted applications for a decade during the DTV transition, the FCC allowed the filing of applications for new LPTV stations and TV translators in rural areas.  Finding that much of the demand for new translators has been met in these rural areas in the intervening period, the FCC has now determined that, until the spectrum needs for television and broadband are more certain, it would not accept any more applications for these stations. It appears that the long-planned window for LPTV stations in major markets will not happen in the foreseeable future.

The freeze does allow for the filing of minor changes to LPTV and TV translator stations, for applications to flash cut to digital, and for displacement applications if a full-power station precludes the continued operation of such a station on its current channel.  LPTV and translator stations still operating on channels 52 through 69, which have already been reallotted for wireless uses, can also file displacement applications during the freeze.

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The Commission's recent Notice of Proposed Rule Making proposing a framework and time line for the transition of Low Power Television stations to digital operations -- which we wrote about last month here -- was published in the Federal Register today setting December 17, 2010 as the deadline for Comments and January 18, 2011 as the deadline for Reply Comments.  Interested parties should start preparing their comments now.  One continuing issue commenters should be aware of is the possibility of a television spectrum incentive auction or some other reclamation of television spectrum.  In seeking comment on the timing of the transition of LPTV stations to digital, the Commission has asked whether it makes sense for LPTVs to transition sooner rather than later and possibly face the need to reshuffle if the spectrum is compressed or otherwise reconfigured in the future, or alternatively, if LPTVs wait until the spectrum is settled before a DTV transition is mandated.  Comments on that issue and any others responsive to the Commission's NPRM are welcomed from all interested parties.  Comments can be filed in paper with the Commission or electronically through the ECFS filing system.  The proceeding has been designated as MB Docket No. 03-185.

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On Friday, the Commission released a Further Notice of Proposed Rule Making (FNPRM) seeking input on completing the transition of all low power television stations (LPTV) and TV translator stations to digital operations.  Driven by the transition of all full power TV stations last year and the guidance from the National Broadband Plan, which recommended setting a deadline of 2015 for the transition of LPTVs to digital in order to increase efficiency in the TV bands and assist in the reallocation of those bands, the Commission's rulemaking turns to the remaining analog television operations in the spectrum, i.e. LPTV and TV translator stations.  The Commission, having noted a significant increase in the past year of LPTV stations obtaining authority for, and actually switching to, DTV operations, concludes that "low power television stations should now begin to focus their time and resources on developing and implementing a digital conversion plan." 

In response to the main question of "when?", the Commission suggests a date in 2012 as the hard date by which all LPTVs and TV translators would have to complete the construction of digital facilities and cease analog operations.  While a specific date in 2012 is not offered, the Commission believes that three years after the June 12, 2009 full power transition should be a sufficient time period for completing the transition.  And of course, given that it is now September 2010, that really means that LPTV stations would have between 15 and 27 months from today to complete the transition.  The FNPRM does seek comment on alternative time frames or transition mechanisms, but notes that an adoption of an earlier transition date in 2012 might adversely impact some LPTV stations, which could "transition to digital only to find that their digital channel is no longer available as a result of the spectrum reallocation that is one of the recommendations in the Broadband Plan."  Such stations would then be forced to transition a second time.  Given that the Commission has not yet actually commenced a proceeding to implement the spectrum reallocation recommended in the Broadband Plan, this comment is a bit troubling.  Clearly, if the Commission is actually going to reallocate the spectrum as suggested in the National Broadband Plan, it should do so first before it mandates a DTV transition for LPTVs.  Or at the very least, it shouldn't mandate such a transition until it can ensure that LPTV stations are transitioning to digital on a channel that won't subsequently be reclaimed and re-purposed for a competing wireless broadband operation.  In acknowledgment of this, the FNPRM seeks comment on whether the analog termination date should be by the end of 2015 or after the "recommended reallocation of spectrum from the broadcast TV bands". 

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The FCC has issued another in a series of Notice of Proposed Rule Makings aimed at implementing changes to the satellite television rules brought about by the recently enacted Satellite Television Extension and Localism Act of 2010 or "STELA".  In particular, by its NPRM issued last week, the Commission proposes a predictive model to provide presumptive determinations as to whether a household is considered unserved by a local network-affiliated digital station.  The model proposed is a point-to-point predictive model that will allow parties to determine whether a particular location has the ability to receive an over-the-air digital television broadcast signal at the intensity level necessary for service.  The predictive model proposed by the Commission is based on the current model used for predicting reception of analog signals, which uses Longley-Rice to predict signal propagation. 

In proposing this predictive model, the Commission tentatively concludes that the current standard for an outdoor antenna should continue be used in predicting digital television signal strengths at individual locations.  Although STELA revised the definition of an "unserved" household by changing the previous statutory reference to a "conventional, stationary outdoor rooftop antenna" to refer simply to the use of an "antenna" (as we mentioned in our earlier blog), the Commission's recent NPRM finds that the Act's specification of the DTV standard incorporated in the FCC's rules implies the use of an outdoor antenna to receive service.  Therefore, the predictive model the Commission proposes in its NPRM for determining reception of over-the-air digital television signals will continue to include the outdoor antenna standard (with some adjustments for height).  That said, and as the Commission itself notes, given that both of the satellite television providers are moving towards providing local-into-local service in most markets, the need for making determinations as to which households are "unserved" (and hence eligible to receive distant signals), is diminishing, although there are still a number of markets where such local-into-local service has yet to be implemented. 

Although STELA also narrowed the unserved standard to focus just on the reception of signals from an in-market affiliate (rather than simply any affiliate) and to address the notion of multicast digital streams, these changes do not impact the Commission's adoption of a predictive model, and thus were not explicitly addressed by the NPRM.  However, the Commission does include a Further Notice of Proposed Rule Making to address issues regarding on-site measurements in the event that a subscriber requests an on-site signal strength test following application of the predictive model.  Here again, the Commission proposes to limit measurements to outdoor antennas.  Comments on the Commission's proposed rule changes will be due 20 days after publication of the NPRM in the Federal Register, which, as of this writing, has not yet occurred. 

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Last week, the FCC's Media Bureau granted waivers of the requirement that television tuners be capable of receiving both analog and digital television transmissions, but only with respect to tuners meant for mobile use.  The FCC justified the waivers of the All Channel Receiver Act given the technological constraints that an analog reception chip would put on mobile receivers meant for the reception of the Mobile/Handheld Digital Television Standard (A/153) signals.  This signal is being tested now to allow television broadcasters to provide mobile programming in addition to their current over-the-air broadcast signals - a service planned for commercial roll out at the end of the year.  These waivers, granted in response to requests by Dell and LG Electronics, not only signal the seriousness with which this new service is being regarded, but also provide evidence of the coming end of analog television, now used solely by LPTV stations.   

In considering the waiver, the Commission recognized that the only television stations that would be affected by the lack of an analog tuner were LPTV stations, and no such stations opposed the waiver request.  As one of the waiver proponents noted, analog television signals were not meant for mobile reception, and thus the lack of such a receiver in a mobile device was no big loss.  Moreover, the FCC noted that the digital conversion of LPTV stations has already begun, in that it no longer accepts applications for new analog LPTV stations.  The Commission reiterated that it will soon set a date for the final conversion of the last analog LPTV stations to digital.  Thus, the failure to receive analog would be, at most, a temporary issue.

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As we anticipated, the FCC has suspended indefinitely the opportunity to apply for new, digital low power television (LPTV) stations in non-rural areas, which had been slated to begin on July 26, 2010.  Given the FCC's new focus on repacking and reallocating the television spectrum for use by broadband competitors, the Commission's postponement of the filing opportunity is not unexpected.  In fact, based on the fact that the filing opportunity had been extended once already -- from January of this year to July -- it was a fairly safe bet that the window would be closed before it even opened once the National Broadband Plan was released in March.  It would seem to be counter-intuitive to put more stations into the spectrum that you are working to (potentially) reclaim or repack.  And that's just what the FCC thought as well, as they have now postponed "until further notice" filings for new digital LPTV stations in non-rural areas. 

Although it will not accept any applications for brand new digital LPTV stations in non-rural areas on July 26th, the Commission will permit existing LPTV, TV translator, and Class A television stations to file applications seeking digital companion channels in communities nationwide beginning on July 26, 2010.  In addition, parties may continue to file for new digital LPTV stations in rural areas, as well as file applications to flash-cut to digital on their current channels.  A copy of the FCC's Public Notice is available here. 

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In a recent speech before the Community Radio Conference, FCC Commissioner Mignon Clyburn suggested that the proposal to reallocate Channels 5 and 6 for FM radio use had merit and should be considered further.  That proposal is already before the FCC, and ripe for decision - so it could theoretically be adopted tomorrow.  However, the proposal is not backed by all.  While Commissioner Clyburn may think that the idea bears more exploration, there seems to be significantly more consideration that is necessary before a decision on the pending proposals can be made.  What are these proposals, and what is standing in the way of a reallocation? 

As we have written before, the proposals have been made to take TV Channels 5 and 6, which are immediately adjacent to the FM band, and reallocate them to radio broadcasting.  The pending proposals include suggestions that LPFM stations could be located on the new FM channels that could be created, that new space for noncommercial radio operations could be created and, if they operated digitally, there would even be room to move the entire AM band to Channel 5.  While some have suggested that any relief from such a transition would be long in coming, as radios would need to be manufactured, in fact that process might not be as prolonged as suggested, as the frequencies used by these television channels are already used for FM radio in Asia.  Radios already exist that could pick up these channels (at least for analog reception).  However, television interests have opposed this reallotment, but it may well be the broadband plan which could have the greatest impact on the consideration of this issue. 

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Last week, the FCC issued fines to Class A TV stations which seem to have forgotten the requirements for such stations. Class A TV stations were low power television stations on which, early in the decade, Congress decided to confer "protected" status, meaning that they could not be knocked off the air by a new full-power TV station or by a change in the facilities of a full-power station.  LPTV stations, by contrast, are "secondary services," meaning that they can be knocked off the air by changes in primary stations.  Class A stations were given this protection if they could show that they were providing local programming, had a local studio, and otherwise complied with all the operating requirements that a full-power station station has to meet - including a manned main studio, children's television obligations, EEO reporting, and public file requirements.  Cases released last week remind these stations that they must still meet all requirements for full power stations, as the FCC fined Class A stations for main studio, public file and children's television violations.

In one case, the FCC fined a station $1000 for violations of the main studio, main studio staffing and public file rules.  The fine was originally set at $24,000 but, as the licensee demonstrated that it had no ability to pay the higher fine, the penalty was reduced to $1000.  The FCC had tried to inspect the station, and was unable to obtain access to the transmitter site.  The Commission staff then tried to find the station's main studio, and found that no one answered the phone number listed for the station, there did not appear to be anyone at the address on file for the main studio location, and there was of course no access to the public file.  As Commission rules require that stations have main studios in their principal service areas that are manned during normal business hours, and that stations have their public file at this location, the fine was issued.

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The FCC today issued a further Public Notice reminding all Video Programming Distributors (VPDs)-- including those who might otherwise be exempt from some elements of the closed captioning rules -- to register their contact information with the FCC.  All VPDs, including television stations, should have already identified appropriate contact people within their organizations and filed their contact information with the FCC.  Although that info was due to the FCC by March 22, 2010, today's Public Notice, available here, indicates that many folks still have not yet complied with the new rules.  Accordingly, the FCC is seeking to increase compliance by reminding VPDs of this obligation and encouraging distributors to register their contact belatedly.  All television stations and other VPDs should ensure that they have taken the necessary steps and registered their contact information with the FCC.  While the FCC has exercised its discretion thus far and issued a reminder instead of simply cracking down and commencing enforcement proceedings, video programming distributors are now on notice.  And the next actions by the Commission with regard to this new rule will undoubtedly be more aggressive and could possibly involve enforcement actions.

As we've discussed previously, a new FCC closed captioning rule recently went into effect that requires video programming distributors to establish:  1.)  a contact person for handling immediate closed captioning concerns, and 2.)  a contact person for receiving written captioning complaints of a general or non-time sensitive nature.  In order to assist viewers and potentially facilitate the resolution of such captioning complaints, the rule requires that video programming distributors publicize the appropriate contact information and also provide the contact information to the Commission, which will maintain a database open to consumers.  Thus, by March 22, 2010, all television stations and other distributors were to have designated a contact person, posted the necessary contact information on their web site (and in any phone directories the distributor may advertise in), and submitted the information to the FCC.

If stations failed to file that info by March 22nd, they should do so immediately.  The best way for stations to file this information with the FCC is to visit the FCC's website and submit the information online. The Commission’s website contains a detailed web form with step-by-step instructions to walk applicants through the process.  Alternatively, the contact information can be e-mailed directly to the FCC’s Disability Rights Office at: CLOSEDCAPTIONING_POC@fcc.gov . 

Video programming distributors must keep their contact information current and update both their websites and the Commission’s database within 10 business days of any changes to the information. Further details about the contact information requirement and the revised FCC closed captioning complaint rules can be found in our earlier posting here.

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The FCC today issued a Public Notice  instructing applicants for new analog low power TV (LPTV) stations to amend their pending short-form applications by May 24th in order to specify digital operations. If the short-form application is not amended by May 24th it will be dismissed.  As some of you may recall, way back in 2000 the FCC opened a window for the filing of new LPTV stations. Rather than full applications, at the time applicants were simply required to file a "short form" tech-box application specifying the basic parameters of the proposal.  And of course, at the time the proposals were all for new analog LPTV facilities. Over the years, many of these proposals were found to be non-mutually exclusive, and the applicant applied for and received construction permits for new LPTV stations.  Other proposals were conflicted and were included in an FCC Auction to resolve the conflict, which also resulted in the grant of new construction permits. Many others, however, remained mutually exclusive and deadlocked. The FCC has now decided that, as it will no longer grant any new analog LPTV stations, any remaining proposals that are still pending must be amended to specify digital operations. 

Today's action is consistent with the Commission's pronouncement made last Summer when it announced the opportunity to commence filings for new LPTV stations in rural areas (which we wrote about here).  At that time, the FCC stated that going forward it would grant only digital LPTV stations and not any new analog LPTVs.  It's unclear why today's Public Notice was not released last year once that decision was made, but in any event today's action would appear to be one more step towards the ultimate transition of all LPTV stations to digital operations, which was mentioned as part of last week's National Broadband Plan (which we discussed here).  While the Commission has not yet set a date for the transition of existing analog LPTV stations to digital, the Broadband Plan suggested accelerating that process to migrate all broadcast television to digital operations.  However, the Plan also suggested potentially repacking the television spectrum, encouraging the consolidation of television operations, and changing interference protections for teleivsion stations, so whether the Commission would move forward with requiring analog LPTV stations to convert to DTV without clarifying some of these new proposals and their impact on low power television stations is unclear.  One other observation:  with the potential conversion to digital operations looming, the days of analog LPTV stations operating on TV Channel 6 and broadcasting audio intended to be received by FM radios would appear to be numbered. 

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Just a reminder that all Video Programming Distributors -- which includes broadcast television stations --  must identify a contact person for closed captioning issues, both immediate issues and general complaints, and file that contact information with the FCC by March 22, 2010.  As we've discussed previously, new FCC closed captioning rules recently went into effect that require video programming distributors to establish a contact for handling immediate closed captioning concerns, as well a contact for receiving written captioning complaints of a general or non-time sensitive nature.  In order to assist viewers and potentially facilitate the resolution of such captioning complaints, the rules require that video programming distributors publicize the appropriate contact information and also provide the information to the Commission, which will maintain a database open to consumers.  

Accordingly, by March 22, 2010, television stations must designate a contact person, post the necessary contact information on their web site (and in any phone directories the station may advertise in), and submit the information to the FCC.  The best way for stations to file this information with the FCC is to visit the FCC's Web site and submit the information online. The Commission’s Web site contains a detailed form with step-by-step instructions that will walk applicants through the process.  Alternatively, the contact information can be e-mailed directly to the FCC’s Disability Rights Office at: CLOSEDCAPTIONING_POC@fcc.gov.

Video programming distributors must keep their contact information current and update both their Web sites and the Commission’s database within 10 business days of any changes to the information.  Further details about the contact information requirement and the revised FCC closed captioning complaint rules can be found in our earlier posting here. 

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Another year is upon us, and it’s time for predictions as to what Washington may have in store for broadcasters in 2010.  Each year, when we look at what might be coming, we are amazed at the number of issues that could affect the industry – often issues that are the same year to year as final decisions are often hard to come by in Washington with the interplay between the FCC and other government agencies, the courts and Congress. This year, as usual, we see a whole list of issues, many of which remain from prior years. But this year is different, as we have had a list topped by issues such as the suggestion that television spectrum be reallotted for wireless uses and the radio performance royalty, that could fundamentally affect the broadcast business.  The new administration at the FCC is only beginning to get down to business, having filling most of the decision-making positions at the Commission.  Thus far, its attention has been focused on broadband, working diligently to complete a report to Congress on plans for implementation of a national broadband plan, a report that is required to be issued in February.  But, from what little we have seen from the new Commission and its employees, there seems to be a willingness to reexamine many of the fundamental tenants of broadcasting.  And Congress is not shy about offering its own opinions on how to make broadcasting "better."  This willingness to reexamine some of the most fundamental tenets of broadcasting should make this a most interesting, and potentially frightening, year. Some of the issues to likely be facing television, radio and the broadcasting industry generally are set out below.

Television Issues.

In the television world, at this time last year, we were discussing the end of the digital television transition, and expressing the concern of broadcasters about the FCC’s White Spaces decision allowing unlicensed wireless devices into the television spectrum. While the White Spaces process still has not been finalized, that concern over the encroachment on the TV spectrum has taken a back seat to a far more fundamental issue of whether to repurpose large chunks of the television spectrum (if not the entire spectrum) for wireless users, while compressing television into an even smaller part of what’s left of the television band – if not migrating it altogether to multichannel providers like cable or satellite, with subscription fees for the poorest citizens being paid for from spectrum auction receipts. This proposal, while floated for years in academic circles, has in the last three months become one that is being legitimately debated in Washington, and one that television broadcasters have to take seriously, no matter how absurd it may seem at first glance. Who would have thought that just six month after the completion of the digital transition, when so much time and effort was expended to make sure that homes that receive free over-the-air television would not be adversely impacted by the digital transition, we could now be talking about abolishing free over-the-air television entirely? This cannot happen overnight, and it is a process sure to be resisted as broadcasters seek to protect their ability to roll out new digital multicast channels and their mobile platforms. But it is a real proposal which, if implemented, could fundamentally change the face of the television industry.  Watch for this debate to continue this year.

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This afternoon the FCC announced that it would postpone the opportunity to apply for new digital low power television stations until July 26, 2010. The Commission had begun accepting applications for new digital LPTV stations in so-called rural areas beginning in late August, and had previously announced that it intended to expand the first-come, first-served filing opportunity to the rest of the country starting January 25, 2010.  The Commission has now pushed that date back by six months, allegedly to allow it more time to process the applications that it has already received thus far, and also to allow the “Commission staff to dedicate additional time and resources for consideration of the Broadband Plan.”  It is not clear whether this statement literally means that engineers from the Low Power branch of the Video Division of the Media Bureau have been assigned to assist with the Broadband Plan, or if the FCC is simply hesitant to issue permits for more new LPTV stations until it figures out the future of broadcast television.  Either way, the Commission has decided to step back from accepting applications for new digital LPTV stations, at least for now.  A copy today's public notice can be found here. 

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The FCC has wasted no time in pressing ahead with the discussion of whether the spectrum currently used by local broadcast television stations is being put to the greatest use and whether it should be "re-purposed" for the so-called broadband effort.  This afternoon, the FCC issued a Public Notice soliciting comments by December 21st regarding the demand for spectrum, the factors the FCC should review when considering the re-purposing of TV spectrum, and potential approaches to increasing spectrum availability and efficiency.  Although the Public Notice asks broad, far-ranging policy questions, the comment date for the "specific data" that the Commission seeks to obtain from interested parties is less than three weeks away, which hardly seems adequate for a proper, informed discussion on an issue of this magnitude.  The specific topics of discussion identified by the Commission and details about how to submit comments can be found in the Commission's Notice. 

Among the issues broadcasters will undoubtedly address (and indeed have already begun to address in other forums) is the fact that the forthcoming spectrum crisis -- which seems to have become a given in certain circles -- has not been well substantiated.  Related to that is the notion that broadcasters already have the ability to lease any "excess" digital television spectrum and use the capacity to provide broadband access, mobile services, or virtually anything else under the sun.  Stations will likely suggest that this mechanism will allow the wireless broadband market to tap this spectrum without further government intervention, if and when the demands of the wireless market require it.  Other issues sure to be of discussion is the value of local broadcast stations, the usefulness of free over-the-air broadcasting, the future of broadcast journalism, and the service stations provide to the public, just to name a few.   It will be challenging, to say the least, for commenters to quantify and address any of these significant questions within just 19 days. 

Having just completed the DTV transition six months ago, it seems that broadcasters have barely been given a chance to operate on their digital spectrum and to explore the options afforded by the transition in terms of high-definition, multicasting, data casting, broadband access, and mobile TV, just to name a few, before having to rush to defend its use, or lack thereof.  The Commission's rush to solicit comments is clearly guided by its need to develop a broadband plan early next year, however, the issues raised by today's Public Notice are among the most significant it has ever attempted to address, certainly with respect to broadcasting and mass media.  It goes without saying, but there is much, much more to be said about these issues, so stay tuned.   And see our earlier blog entries (including here) for further thoughts on the matter. 

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The FCC today announced that, effective October 27, noncommercial FM stations need no longer protect Channel 6 analog television channels.  The lower end of the FM band, which is reserved for noncommercial educational FM broadcasting, is immediately adjacent to TV Channel 6.  As most television stations abandoned Channel 6 in June when the digital television transition occurred, noncommercial stations had been protecting stations that were no longer there.  However, as we wrote here, the FCC wanted to deal with noncommercial licensees that were trying to jump the gun by filing applications contingent on the disappearance of the Channel 6 station even before the analog television stations had stopped operating.  To give all noncommercial FM stations an equal opportunity to take advantage of the clearing of Channel 6 in most television markets, the Commission set this uniform date for taking advantage of this change in television station operations.  Of course, noncommercial FM stations need to protect the handful of television stations that continue to operate digitally on Channel 6.  Today's public notice notes that noncommercial FM applications trying to take advantage of the fact that Channel 6 has been vacated in their market by filing an application before the October 27 date will be dismissed unless they had specific unconditional permission of the Channel 6 station.

Note that while the FCC has made the process equal for all noncommercial FM stations, there are questions about whether an unfair advantage may have been given to some LPTV stations in the recent LPTV filing window, where channel 6 applications were not prohibited (see our post here).  Some noncommercial broadcasters were concerned that some of these LPTV applicants could take advantage of the vacating of Channel 6 in their market by filing an application for a new LPTV station that could preclude the filing of an FM application once the window announced in this public notice opened.  To some extent, this may not be a major issue, as the LPTV window for applications for major markets does not open until January.  But we will see if this concern actually resulted in any issues in more rural areas as the LPTV applications that have already been filed in these areas are processed in coming months.  But for NCE FM stations that were precluded from filing for upgrades by a Channel 6 TV station that disappeared after the digital transition, the wait for filing opportunities will soon be over.

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This week, the FCC announced that it will begin accepting applications for new digital-only LPTV and translator stations in rural areas as of August 25, 2009. Beginning on that date, the FCC will also begin to accept applications for major changes to existing analog and digital LPTV and TV translators in rural areas, and applications for digital companion channels (DCCs) for existing analog stations in rural areas. By "rural areas", the FCC means stations that specify a transmitter site that is located more than 75 miles away from the reference coordinates of the 100 U.S. cities listed in the FCC’s Public Notice. Applications for new analog facilities will not be accepted. This filing opportunity will be on a first-come, first-served processing basis, and mutually exclusive proposals will be resolved by auction.  A copy of the FCC's Public Notice is available here.

While this window is for new stations, major changes, and DCCs in rural areas, prior to that date all existing LPTV, TV translator, and Class A television stations may wish to review their present options for converting to DTV. The Commission’s Public Notice reminds existing stations that they may file an application for on-channel digital conversion (i.e. flash-cut) at any time. In order to retain processing priority, existing stations are encouraged to file flash-cut applications prior to August 25th, and certainly by January 25, 2010, at which point the FCC will open the door for new digital licensing opportunities on a nationwide first-come, first-served, as discussed below. 

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Reading the papers and watching the news this weekend, one would think that analog television is a relic of the past - something that we can all soon look back at fondly as a quaint childhood memory, never to be seen again.  Yet all the reports fail to mention that for populations that watch their over-the-air television from TV translators or Low Power TV stations, analog television is still very much a reality, and in some places will be for years until the FCC sets a deadline for the digital conversion of these stations. Many of these stations operate in rural areas or serve minority or other specialized audiences, perhaps explaining the lack of coverage in the mainstream media.  But, given all the publicity that has been accorded to the "completion" of the conversion, some of these populations may well have been confused by the process.  We've writtenabout this issue and how it could have created confusion in smaller markets which have service by both full-power and low power TV stations, here.

The transition of LPTV to digital raises a number of issues - including the ability of these stations to deliver radio-type programming when operating on Channel 6.  As we've written, LPTV stations on Channel 6 have been used to provide radio services, as Channel 6 is immediately adjacent to the FM band and can be picked up on most radio receivers..  However, when the ultimate transition of LPTV to digital is completed, the ability of these stations to provide a radio-type service will probably disappear, as the audio system used by digital television will not be picked up by analog radio receivers. 

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This week ,the FCC issued a Public Notice addressing the issue of LPTV stations eager to displace to a new channel or switch to digital operations following the transition of full powers to DTV. (Please note, this notice does not address the filing of applications for brand new LPTV stations, which are still frozen). Many LPTV stations are eager to take advantage of the channels being returned by full power stations either to move their operations to those channels or to flash-cut to digital on their own channel now that an adjacent full-power station is gone.

In fact, some LPTV stations have already submitted applications seeking to move to a channel that is still occupied by a full power station, and which won't vacate the channel until June 12th. Because such applications did not comply with the then-current (pre-transition) interference landscape, they were not grantable at the time of filing, but will become grantable after June 12th. Similarly, many folks have their eye on a particular channel, and once the full power station terminates, the LPTVs will rush to move to that (now) vacant channel. The FCC's Public Notice states that for purposes of determining who filed first, the FCC will treat all such applications as though they were all filed on June 30th. Thus, there was no advantage to the LPTV station that filed for a channel last month that's still occupied by a full power, and there's no rush to be the first one to file for a newly vacated channel come 12:01 AM on June 13th.

What this means, however, is that if any LPTV station intends to take advantage of the full power DTV transition to displace to a newly vacated channel or to flash-cut to digital in a way that would be precluded because of pre-transition interference, any application filed between now and June 30th will be considered as filed the same day as any pending non-compliant application or application filed between now and the 30th that has a conflicting proposal.

This Public Notice does not appear to impact applications proposing changes that comply with the pre-transition interference landscape, which still can be filed at any time and should be processed on a first-come, first-served basis.

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The FCC's Notice of Proposed Rulemaking on Digital Fill-In Translators, to provide television service in areas where a television station's digital signal does not reach locations that were covered by its analog operations (a proposal we summarized here) was published in the Federal Register today, setting comment dates on this proposal.  Comments are due on January 12, and Replies on January 22.  As the Commission has already published instructions for filing for temporary authority to operate these stations, broadcasters who are interested in the final rules that may be adopted should look to file comments on these matters before the January 12 deadline.  This is another proceeding that is being rushed through the Commission in anticipation of the February 17 end of the digital television transition.

The analog nightlight proceeding is on an even faster track, with comments due on Monday (see our summary of that proceeding here). The Commission has just released a tentative agenda for its January 15 meeting, where the only item it will consider (other than reports from the Commission's various Bureau Chiefs) will be the analog nightlight proposal.  This is likely to be Chairman Martin's last meeting as chair of the FCC.  In light of the Congressional mandate to complete this proceeding by January 15, the Commission will have received comments and replies and digested them into a decision - all in the space of  20 days from the release of its Notice of Proposed Rulemaking - with the Christmas and New Years holidays intervening!  If anything, this shows two things - that the FCC can move rapidly if it has to, and that the DTV transition is the one and only real priority on the full Commission's agenda right now. 

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Come the New Year, we all engage in speculation about what’s ahead in our chosen fields, so it’s time for us to look into our crystal ball to try to discern what Washington may have in store for broadcasters in 2009. With each new year, a new set of regulatory issues face the broadcaster from the powers-that-be in Washington. But this year, with a new Presidential administration, new chairs of the Congressional committees that regulate broadcasters, and with a new FCC on the way, the potential regulatory challenges may cause the broadcaster to look at the new year with more trepidation than usual. In a year when the digital television transition finally becomes a reality, and with a troubled economy and no election or Olympic dollars to ease the downturn, who wants to deal with new regulatory obstacles? Yet, there are potential changes that could affect virtually all phases of the broadcast operations for both radio and television stations – technical, programming, sales, and even the use of music – all of which may have a direct impact on a station’s bottom line that can’t be ignored. 

With the digital conversion, one would think that television broadcasters have all the technical issues that they need for 2009. But the FCC’s recent adoption of its “White Spaces” order, authorizing the operation of unlicensed wireless devices on the TV channels, insures that there will be other issues to watch. The White Spaces decision will likely be appealed. While the appeal is going on, the FCC will have to work on the details of the order’s implementation, including approving operators of the database that is supposed to list all the stations that the new wireless devices will have to protect, as well as “type accepting” the devices themselves, essentially certifying that the devices can do what their backers claim – knowing where they are through the use of geolocation technology, “sniffing” out signals to protect, and communicating with the database to avoid interference with local television, land mobile radio, and wireless microphone signals.

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Last week, the FCC introduced a new service to fill in gaps in the service of a digital television station - permitting television stations to immediately apply for Special Temporary Authority to construct digital translators.  Translators rebroadcast the signal of a full-power station, but operate on a channel different than the main station they retransmit.  The Commission has already authorized stations to operate on-channel low-power facilities in the Distributed Transmission Service (DTS) proceeding, about which we wrote here.  The digital translators, however, will only be authorized to serve areas that had received analog service from the television station but which will lose that service when the station goes fully digital, thus raising questions as to how much use these stations will really be.  In a Public Notice released today, providing filing information for these translators, the Commission states that the translators can only serve this loss area.  While the authorization of this Digital Low Power Television Translator service will begin immediately on an STA basis, the Commission's order came out only in a Notice of Proposed Rulemaking, which could ultimately be rejected by the Commission after public comments are submitted.

The Commission seeks comments on a number of proposals made in this proceeding, including the following:

• The new translators would operate on Channels 2-59, with those operations on channels 53-59 being authorized only where the applicant can show that there is no other channel on which a translator can operate
• These translators will be given application priority over all other translator applications except those for the displacement of an existing translator or LPTV station, which would have co-equal priority
• The translators would be authorized as part of the main station license, would be renewed as part of the main station license, and could not be sold except with the main station.
• The translators will be authorized to fill in the area served by an analog full-power station but lost when the station converts to digital.  The Commission seeks comments as to whether even a nominal extension of the coverage area will be permitted (it apparently will not for authorizations initially granted through an STA) 
• Applicants receiving an authorization for this service will be given a construction permit - and the Commission asks if that permit should be limited to a period of six months so that service to the public will be initiated quickly.
• The Commission also asks how this service should interact with white spaces devices recently authorized by the Commission (see our summary).

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In several decisions released on Friday (here, here and here), the FCC fined Class A TV stations for not meeting their obligations under the Children's Television Rules to notify their viewers about the location of their public file containing information about the educational and informational programming they broadcast directed to children, and for failure to inform local program guides of the target ages for this educational and informational programming.  Class A TV stations are essentially LPTV stations that, early in the decade, were certified for Class A status, meaning that they cannot be displaced by subsequent authorizations for new full power stations or changes in the facilities of full power TV stations. These stations had to certify that they broadcast at least three hours of local programming per week, and also had to meet all the other obligations that are applicable to full power stations (but not necessarily to other Low Power Television Stations), e.g. local main studio, local public file, children's television obligations.  A fine of $4000 was imposed on the stations for these failures.

The cases remind Class A stations of their public interest obligations.  It also reminds all stations of their obligations to publicize the existence of its children's television compliance records, and to insure that program guides not only know about their educational and informational programming but also about the ages to which this programming is targeted.  Little details, but details that cost many licensees money for their forgetfulness during the last license renewal cycle. 

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As broadcasters are aware, earlier this year, the FCC imposed DTV Consumer Education requirements mandating that television stations and other video providers educate viewers about the upcoming transition from analog to digital television (DTV).  Thus far, the education efforts have consisted primarily of Public Service Announcements (PSAs), crawls, and longer format programs designed to educate the public about the February 17, 2009 switch to DTV.  Now that stations are approaching the home stretch, however, the FCC's rules require additional efforts.

Specifically, for those stations that elected to follow “Option Two” of the DTV Consumer Education requirements -- which seems to be the vast majority of television stations -- beginning on November 10, 2008, television stations must begin a "100-Day Countdown" to the transition consisting of enhanced efforts leading up to February 17, 2009.  During this period, each station following Option Two must air at least one of the following per day:

Graphic display:  A graphic super-imposed during programming content that reminds viewers graphically there are “[X] number of days” left until the transition, and that visually instructs viewers to call a toll-free number or to visit a web site for further details.  The graphic's duration may vary from 5 to 15 seconds, at the discretion of the station.

Animated graphic: A moving or animated graphic that concludes with a countdown reminder, which will remind viewers that there are “[X] number of days” until the transition. Viewers are to be visually instructed to call a toll-free number or to visit a website for details.  The graphic's duration may vary from 5 to 15 seconds, at the discretion of the station.

Graphic and audio display: Either a graphic display or animated graphic along with an added audio component.  The duration may vary from 5 to 15 seconds, at the discretion of the station.

Longer form reminders: Stations may choose from a variety of longer form options in order to communicate the countdown message.  Examples might include an “Ask the Expert” segment in which viewers can call in to a phone bank and ask knowledgeable people questions about the transition.  The length of these segments can vary from 2 to 5 minutes, at the discretion of the station.  (Some stations may also choose to include during newscasts DTV “experts” who may be asked questions by the anchor or reporter about the impending Feb. 17, 2009, deadline).

With this 100-Day Countdown, the Commission hopes to push strong to the finish line and build viewer and consumer momentum for the final switch to digital on February 17th.  The FCC has been paying close attention to station compliance with the DTV Consumer Education requirements and stations are advised to start planning now for their 100-Day Countdown efforts.  One additional note, stations that have elected to follow Option Two should also be sure to air at least one longer form program (at least 30 minutes in length) if they have not done so already.   At least one such program must be run between the hours of 8:00 AM and 11:35 PM prior to February 17, 2009.  

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On Monday, the President signed into law a bill adjusting the reimbursement dates of the Low Power Television grant program by which LPTV and TV translator stations can seek a $1,000 grant in order to ensure that they are able to continue to receive and rebroadcast the signals of primary full-power television stations once the full-power stations complete the transition to digital television.   In late 2007, the government announced the start of the LPTV Digital-to-Analog grant program designed to help translators and low power television stations continue their analog broadcasts after the February 17, 2009 conversion of full-power television stations to DTV.  Specifically, the LPTV Digital-to-Analog Conversion grant program will provide funds to eligible translators and LPTV stations that need to purchase a digital-to-analog converter box in order to convert the incoming signal of a full-power DTV station to analog format for retransmission on the analog LPTV station.  The program has been funded with a total of $8 million, which is available in $1,000 grants to eligible LPTV stations.  As a result of the recent change, funds granted through the LPTV Digital-to-Analog grant program will available beginning in fiscal year 2009 (Oct. 1, 2008 – Sept. 30, 2009), rather than in fiscal year 2011.  In addition, the recent bill also extends the availability of funding through fiscal year 2012.

Any low-power television broadcast station, Class A television station, television translator station, or television booster station that meets the following three criteria may apply for the grant to defray the cost of the digital-to-analog converter box:

1. It is itself broadcasting exclusively in analog format;
2. It has not purchased a digital-to-analog conversion device prior to February 8, 2006; and
3. It is (or will be) re-transmitting the off-air digital signal of a full-power DTV station.

Applications for this grant program are being accepted until February 17, 2009.  Priority compensation will be given to eligible LPTV stations licensed to 501(c) non-profit entities or LPTV stations serving a rural area of fewer than 10,000 viewers.  Thus, priority is given to stations owned by translator associations and others that might not otherwise be able to afford the costs of converting the signals that they receive from analog to digital, and which might, without the grants, go off the air.  More information on how to apply for such grants is available on the NTIA’s website here.   

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Yesterday, the FCC released its further Public Notice announcing that the freeze on filing certain Class A LPTV applications will be lifted on August 4th.  Previously, Class A stations had been frozen from expanding their authorized contours and from changing channels (displacing) while the DTV transition was underway.  Because Class A stations receive protection as primary stations, the FCC needed to lock those stations down until it had completed the DTV Table of Allotments, which it has now done.

Accordingly, as of August 4th (nearly four years to the day that the freeze was first imposed), Class A LPTV stations will once again be able to seek to modify their contours and change channels.  Applications filed prior to August 4th that requested a waiver of the freeze will be treated as having been filed on the 4th.  Thereafter, changes will be on a first come, first serve basis.  A copy of the public notice is available here. 

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I recently attended the convention of the Montana Broadcasters Association, and just a few weeks before that I had been at an event sponsored by the Washington State Association of Broadcasters.  Talking with small market TV Broadcasters in those states, an issue that does not affect major television markets but which complicates the digital transition has become clear.  In smaller markets in many states, particularly in some of the western states where there are multiple geographically dispersed cities in many television markets, there is at least one network affiliate in many cities that is either an LPTV or TV translator station.   As we've written before, LPTV and translator stations are not required to convert to digital by the February 2009 digital conversion deadline.  Instead, these stations can continue to operate in analog until an as yet unspecified date in the future.  While these stations are allowed to convert to digital, many do not have the resources to do so.  Thus, many of these stations will continue to broadcast in analog after the February 18 transition deadline.  What makes the issue particularly problematic is that most  DTV converters do not allow the "pass through" of analog programming, i.e. once they are hooked up, television sets only receive digital signals and analog signals are effectively blocked.  This presents the potential of marketplace confusion for those viewers who do not receive their signals from cable or satellite, as they will be getting conflicting messages - being told to get a digital converter to pick up the full-power stations in a market as they convert to digital, but if the consumer buys the wrong converter box, they will not be able to receive other LPTV and translator stations in the same market.

The problem has been exaggerated as converter boxes with analog pass through have been delayed in reaching the marketplace.  When I bought converter boxes in Washington, DC early last month, neither of the two major electronics retailers had the converter boxes with analog pass-through available.  A well-reviewed box from EchoStar was supposed to hit stores last month, but it is in short supply.  I can find it on-line only at the Dish Network's (owned by EchoStar) own website.  Thus, for households who buy and connect most of the available digital converter boxes, suddenly their analog LPTV stations are gone.  In some of these smaller Western markets, that may mean the loss of one or more local network affiliates.

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The FCC today issued an order extending the comment deadline in its Broadcast Diversity proceeding, extending the comment date a full month until July 30, with Reply Comments now due on August 29.  This important proceeding, about which we wrote here, will address many issues, including proposals to, among other things, repurpose television Channel 6 (and possibly Channel 5) for FM use after the completion of the television digital transition, to allow FM licensees who multicast to sell one of their multicast channels independently of the main channel, to allow certain AM stations with expanded band channels to avoid turning in one of their channels at the end of the 5 year transition period if the licensee is a designated entity (or sells one of its channels to a designated entity), and to provide Class A television stations with must-carry status.  The rulemaking proceeding will also look at whether the current definition of a designated entity (focusing on the fact that it is a small business as opposed to any review of the race or gender of its owners) is the one that the FCC should continue to use.  Thus, this is an important proceeding in which many broadcasters should be interested, and now you have more time to prepare comments on the issues that are raised.

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The Commission today published notice in the Federal Register revising the dates for submitting comments in its rule making "In the Matter of Promoting Diversification of Ownership in the Broadcasting Services."  If you will recall, this is the rule making proceeding that seeks comment on a number of new proposals, including whether to revise the definition of "Designated Entities", possibly expanding the FM band to include TV channels 5 and 6, possibly adopting rules to allow AM expanded band stations to retain those stations or transfer them to Designated Entities, and whether Class A LPTV stations should be afforded must-carry rights on cable systems. 

Although the FCC had initially pegged the comment date at July 15th when it first published notice a couple of weeks ago, apparently that date was a miscalculation.  Thus, the dates for commenting have now been revised, and Comments in the proceeding are now due on or before June 30, 2008, and Reply Comments are due on or before July 14, 2008.  This means that interested parties have a couple of weeks less than initially thought to prepare and file comments in this proceeding, so start drafting now.  See our earlier summary of this proceeding for more information.  A copy of today's Federal Register notice can be found here. 

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We recently wrote about the Federal Communications Commission’s actions in their Diversity docket, designed to promote new entrants into the ranks of broadcast station owners. In addition to the rules adopted in the proceeding, the FCC is seeking comment on a number of other ideas – some to restrict the definition of the Designated Entities that are eligible to take advantage of these rules, others to expand the universe of media outlets available to potential broadcast owners – including proposals to expand the FM band onto TV channels 5 and 6, and proposals to allow certain AM stations, which were to be returned to the FCC after their owners received construction permits for expanded band stations, to retain those stations or transfer them to Designated Entities. The proposals, on which public comment is being sought, are summarized below.

Definition of Designated Entity. The first issue raised by the Commission deals with whether the class of applicants entitled to Designated Entity status and entitled to take advantage of the Commission’s diversity initiatives should be restricted. One proposal is to restrict the Designated Entity status to companies controlled by racial minorities. The Commission expressed skepticism about that proposal, noting that the courts had throw out several versions of the FCC’s EEO rules, finding that there was insufficient justification offered by the FCC to constitutionally justify raced-based preferences. The Commission asked that proponents of such preferences provide a “compelling” showing of needed, as necessary for a constitutional justification for governmental race-based discrimination.

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In recent weeks, Low Power Television stations have been the center of attention in Washington in connection with the Digital television transition.  While all full-power television stations are set to convert to digital operations less than a year from now, ceasing analog operations at the end of the day on February 17, 2009, there is no specific deadline for LPTV stations to convert to digital.  As the NTIA rolls out its coupon program for the purchase of converter boxes that will take digital signals of over-the-air television stations and convert them to analog for those who do not have digital television receivers (see our summary here), LPTV advocates noted that many converters do not pass through analog signals.  Thus, once a television is hooked up to a converter box, that television will not be able to pick up stations broadcasting in analog - so many unconverted LPTV stations after the conversion date will be denied access to television receivers.

Suggestions have been made that the converter boxes be reconfigured to pass through analog - unlikely as many of the boxes have already been manufactured and are on their way to stores (note that some converters do pass through analog signals, but a consumer needs to look for those boxes).  LPTV advocates have also asked for some form of cable must-carry during the transition process - a proposal sure to be opposed by cable system operators. 

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This evening, at about the close of business on a Friday evening, the FCC issued a decision on an number of indecency complaints involving a five-year old episode of "NYPD Blue."  The Commission fined approximately fifty or so ABC affiliates in the Central and Mountain time zones $27,500 each for airing indecent material.  Specifically, the Commission found that a scene in the episode aired on February 25, 2003 containing adult female nudity to be indecent.  The Commission rejected ABC's seemingly common sense argument that a woman's buttocks are not "sexual organs" within the definition of the indecency rules.  Instead, the FCC has now determined that showing the backside of a naked woman is a violation of the indecency rules if it airs before 10 PM, as it did in the Central and Mountain time zone.  A copy of the FCC's decision can be found here.  If there is a silver lining it is that the FCC imposed the statutory maximum that existed at the time the programming was aired -- $27,500 -- rather the new, stepped up fines.  Further, the Commission fined only those stations about which it received an actual complaint, and not simply all stations in those time zones that aired the episode. 

The stations have until February 11th to either pay the fine or appeal the forfeiture.  This is an accelerated timeframe for responding or paying the fine, as usually Commission gives stations 30 days to respond to a Notice of Apparent Liability for Forfeiture.  It is unclear what the impetus was for the FCC to finally issue a decision on the "NYPD Blue" complaints nearly five years after the episode originally aired and with several challenges on earlier Commission indecency rulings currently pending before the courts.  No word yet on whether ABC and the affected affiliates will appeal the decision, but it seems likely that this indecency decision will join the others already in the pipeline for judicial review.  And in the meantime, broadcasters have been put on notice that a woman's posterior is now officially indecent material.  No word yet on whether showing a man's rear end is equally problematic, but if there's a station willing to air it and a viewer willing to complain, the FCC will undoubtedly tackle that critical issue if and when it arises.   

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A reminder to all radio and television broadcast stations, both commercial and noncommercial, that Quarterly Issues Programs Lists reporting on the important issues facing the stations' communities, and the programs aired in the months of October, November, and December dealing with those issues must be prepared and placed in the stations' public inspection file by January 10, 2008.  The failure to have a complete set of Quarterly Issues Programs lists, which were timely prepared and placed in a station’s public file, can lead to significant fines at license renewal time so all stations are urged to prepare their Quarterly Issues Programs lists in a timely fashion.  See our full advisory for further details.

In addition, commercial full power and Class A low power television stations are reminded that Children's Television Programming Reports on FCC Form 398 must be prepared and filed electronically with the FCC by January 10, 2008.  The Reports must also be placed in the stations' public inspection files by that date.  Our recent advisory is available here with all the details, including the requirements for DTV stations airing multiple program streams and details about the new Form 398.  Quarterly certifications regarding compliance with the commercial limitations in Children's Programming should also be prepared and placed in the public inspection file by January 10th. 

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At last Tuesday's FCC meeting, the Commission adopted a controversial order, over the objection of two Commissioners, that could limit the processing of some applications for improvements by some full power FM stations, and would restrict translator applications, all in the name of encouraging Low Power FM (LPFM) stations to provide outlets for expression by groups that cannot get access to full-power radio stations (see our summary of that action here).  In recent weeks, two ideas have received some publicity providing an alternative outlet for these prospective local broadcasters - and both provide a simple solution (one more immediate and ad hoc than that other), but both leading to the same result - why not just extend the FM band by using TV channel 6?

The current FM band begins at 88.1 MHz, a channel that is actually immediately adjacent to TV Channel 6.  The FCC has for years restricted operations of noncommercial FM stations (which operate from 88.1 to 91.9 on the FM dial) in areas where there are Channel 6 TV stations in order to prevent the radio stations from creating interference to the reception of the TV stations.  That's while you will often find fewer noncommercial stations, or ones with weaker coverage, in communities that have TV Channel 6 licensees.  TV stations use an FM transmission system for their audio.  Thus, you will also find that most FM receivers (especially ones without digital tuners) will pick up the audio from TV channel 6 if tuned all the way to the left of the dial.  The short-term solution to expanding the FM band came from one broadcaster who noted that fact.

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A reminder to all radio and television broadcast stations, both commercial and noncommercial, that Quarterly Issues Programs Lists reporting on the important issues facing the stations' communities, and the programs aired in the months of July, August, and September dealing with those issues must be prepared and placed in the stations' public inspection file by October 10, 2007.  The failure to have a complete set of Quarterly Issues Programs lists, which were timely prepared and placed in a station’s public file, can lead to significant fines at license renewal time so all stations are urged to prepare their Quarterly Issues Programs lists in a timely fashion.  See our full advisory here for further details.

In addition, commercial full power and Class A low power television stations are reminded that Children's Television Programming Reports on FCC Form 398 must be prepared and filed electronically with the FCC by October 10, 2007.  The Reports must also be placed in the stations' public inspection files by that date.  Our recent advisory is available here with all the details, including the requirements for DTV stations airing multiple program streams and details about the new Form 398.  Quarterly certifications regarding compliance with the commercial limitations in Children's Programming should also be prepared and placed in the public inspection file by October 10th.

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This article is no longer available. For more information on this topic, see February Legal Deadlines for Broadcasters - Online Public File, Review of Incentive Auction Comments, Filing Deadline for FM Auction, and Lots of Renewals and EEO Public File Reports

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This article is no longer available. For more information on this topic, see FCC Deadlines in January - Quarterly Issues Programs Lists, Children's Program Reports, Comments on TV Online Public File and Public Interest Obligation Proposals, FM Window and More

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This article is no longer available. For more information on this topic, see Digital Television Takes Over in Less Than Two Years - Will the Public Be Ready? 

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The FCC today released a Public Notice announcing a 60 day settlement window for resolving conflicts between mutually exclusive Low Power Television applications for digital companion channels. Between now and December 15, applicants in 192 separate groups can file engineering amendments to remove the conflict between their applications. Parties cannot pay more than the reimbursement of an opponent's out-of-pocket expenses to remove a conflict. If the conflicts are not removed by the December 15 deadline, applicants in each group will end up in an FCC auction, with the highest bidder getting the rights to build their digital station on the companion channel for which they applied.

These applications were filed in June in response to a window for Low Power Television stations to seek a second channel on which they can begin digital operations. These channels will allow LPTV stations to begin digital operations while continuing to operate their analog facilities until the end of the digital transition. LPTV stations not having this displacement channel will, at some point need to "flash cut" to digital - terminating their analog operations completely in order to commence their digita operation. We reported on this filing window on May 25.

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This article is no longer available. For more information on this topic, see LPTV Digital Companion Channel Settlement Window Opens.

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