FCC Clarifies Commencement of DTV on June 12th

The FCC yesterday issued a brief Order clarifying that stations that are flash-cutting to digital on their analog channel, or are otherwise commencing digital service on another channel as part of the transition, have the flexibility to do so at any time on June 12th without further authorization from the FCC.

[Please note, this information does not affect stations whose pre-transition and post-transition digital channels and facilities are the same. Such stations can complete the transition by simply terminating their analog service.]

Currently, DTV construction permits that specify only "Post-transition" operations state that they can only be implemented after 11:59 PM on June 12th, meaning you could not begin operations until the stroke of midnight on June 13th.  With the FCC's recent clarification, however, stations are free to begin DTV operations whenever they are ready to go on June 12th.  This will hopefully allow stations to commence digital operations with less of a gap between the analog shut off and the digital commencement.  In addition, it will also allow stations the flexibility to commence operations on June 12th and work any bugs out during daylight hours.

Thus, for example, a station that is scheduled to shut off its analog facility at 10 AM on the 12th can begin DTV operations on that same channel at 10:01 AM instead of having to wait until after midnight.  The only caveat is for those stations whose early operation could affect another station (e.g., where Station A's post-transition channel is the same as Station B's channel for pre-transition).  In those cases, the FCC has instructed that the parties must coordinate with one another to ensure that the incumbent station terminates its service before the new co-channel station begins operation.  Again, no authorization is required from the FCC, but if the stations are not able to coordinate with one another, then they must wait until after 11:59:59 to commence post-transition operations.

In any case, once a station commences post-transition DTV operations consistent with their underlying construction permit, they will need to file a notification with the FCC, as well as a Form 302-DT covering license application to complete the process. 

 

Broadcast Station Reminder: 100-Day DTV Countdown Starts November 10th

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.  

DTV Status Reports Due by October 20th

The FCC has released a Public Notice reminding TV stations to update their FCC Form 387 DTV Transition Status Reports by October 20, 2008.  If you will recall, these Reports were filed by stations earlier this year (and updated in July) outlining the steps remaining for the stations to complete the transition to DTV.

As we're now coming down the home stretch, stations that have not already completed the transition to digital must once again update their status reports.  Specifically, stations that by October 20th have not filed a covering license application and notified the FCC that they are operating with full and final DTV facilities must update their Form 387 DTV Status Report by October 20.

A copy of the Public Notice is available here.  Stations should make sure that the Form 387 provides:  (1) the station's detailed plan for the remaining steps in the transition, (2) dates for completion of construction and commencement of full, final DTV operations, and (3) plans for terminating existing service (e.g., reduction or termination of analog or pre-transition digital service).  All stations that have not completed their full and final DTV facilities by October 20th need to review the status of their DTV transition and update the Form 387 accordingly.

In addition, stations are reminded that the Commission's DTV Orders contain specific rules regarding the early termination or reduction of analog service.  In particular, stations that intend to permanently reduce or cease analog operations prior to November 19, 2008, must have obtained authority from the FCC to do so and must have aired the appropriate viewer notifications.  For stations intending to permanently reduce or cease analog operations after November 19th, but before the February 17, 2009 switchover do not require prior FCC approval, however, the station must give the FCC 30-days advance notice, and must also air 30 days of viewer notifications letting the audience know that the analog will be terminated early.  Stations should also include this information in their Form 387 reports so that the FCC knows when the station intends to permanently terminate their analog service.

Dates for Reimbursement Under the LPTV Digital-to-Analog Grant Program Revised

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.   

We have previously written about the unique concerns about the DTV transition for LPTV and TV translators.  In particular, many have expressed concerns that non-profit translator associations and other community groups that are the licensees of rural translators which bring over-the-air television service to isolated communities - particularly those in the West - may not be ready for the DTV transition.  Many of these associations, funded either by local governments or voluntary contributions, are strapped for funds to even pay the electricity bills to keep the translators in operation.  Having these funds from the NTIA available to buy the equipment necessary to down-convert the DTV signal of a full-power station may be crucial to continuing television operations in these communities.  Full-power television operators whose signals are retransmitted by these rural translators should take the initiative to alert these rural organizations about the availability of these grants, so that they are not otherwise overlooked by the persons responsible for the translators - people who very well may not be reading the trade press or other sources of publicity about the availability of these funds.

In addition, wholly apart from the grant program discussed above, which merely ensures that analog LPTV stations will be able to continue to receive and convert the digital signal of a DTV primary station, the government also has plans for assisting LPTV stations to themselves convert to digital operations.  Under this program, grants will be provided to assist LPTV stations and translators to buy the equipment to themselves convert to digital operations.  As these stations do not need to convert to digital by the February 2009 deadline that applies to full-power stations, the delay in rolling out these funds may not be crucial, especially to rural translators outside the service area of full-power stations.  In these isolated areas, as viewers will not need to have digital receivers to watch local full-power stations, so they can continue with their current analog televisions until the local translators are converted.  In larger markets, where full-power stations exist, viewers who buy over-the-air digital receivers may lose the ability to watch LPTV stations or TV translators who do not operate in digital after the February 2009 deadline, so these conversion funds may come only after-the-fact.  Details about that program will be forthcoming from NTIA, hopefully later this year. 

Dates Set for DTV Filings

The Commission's DTV Third Periodic Review adopting the rules and procedures for moving television stations through the end of the DTV transition was published in the Federal Register today, meaning that almost all of the new rules and forms adopted by the Order are now effective.   Now that the majority of the new rules are in effect, several related filing dates have been established.  As expected, this evening the FCC released its Public Notice notifying stations of several deadlines and summarizing some aspects of the Commission recent DTV Order. 

First, the FCC Form 387 DTV Status Report is now available and can be filed electronically through CDBS.  Consistent with the Third Periodic Review, all television stations, even those that have built and licensed their post-transition DTV facilities, must file a DTV Status Report on FCC Form 387 by February 19th (the FCC gave one extra day due to the federal holiday).

Second, as part of the final push to digital many television stations need to obtain a construction permit for their post-transition facilities.  In order to avail themselves of expedited processing, stations must file their Form 301 or Form 340 construction permit applications by March 17th (45 days from today).  If stations 1.) file their applications before March 17th, 2.) the application does not expand the station’s facilities beyond its final post-transition DTV Table Appendix B facilities, and 3.) the application specifies facilities that match or closely approximate the DTV Table Appendix B facilities, then the FCC has said that it will expedite processing of the application, generally acting on such applications within ten days. 

Third, the FCC has imposed deadlines by which stations that need to obtain a construction permit for their post-transition facilities must file their construction permit applications.  Stations with an August 18, 2008 construction deadline must file a CP application no later than March 17, 2008.  Stations with a February 17, 2009 deadline must file a CP application no later than June 19, 2008.

The particular steps necessary for a station to complete the DTV transition by the February 17, 2009 end of analog broadcasting will vary depending on the station, but now that the new rules and forms are in effect stations are urged to begin preparing their applications immediately.  See our earlier posting for more details about the Third Periodic Review and the specifics about how stations will complete the DTV transition. 

FCC Adopts Post-Digital Transition "Must-Carry" Rules, Extends Ban on Exclusive Programming Contracts, and Opens Inquiry Into "Tying" Agreements

Late Tuesday night, in a meeting originally scheduled to start at 9:30 in the morning, the FCC adopted an order establishing the rules governing the carriage of broadcast signals by cable operators after the February 17, 2009 transition to digital television.  While the full text of the Commission’s action has not yet been released (and may not be released for quite some time), based on the FCC’s formal news release and the statements made by the commissioners at the meeting and in their accompanying press releases, we can provide the following summary of these important FCC actions.

First, for a period of at least three years after the February 17, 2009 transition from analog to digital broadcasting, cable operators will be required to make the signals of local broadcast stations available to all of their subscribers by either:  (1) carrying the television station's digital signal in an analog format, or (2) carrying the signal only in digital format, provided that all subscribers have the necessary equipment to view the broadcast content.  This rule reflects a compromise position offered by the National Cable & Telecommunications Association, and is regarded as less burdensome on cable systems then the FCC's original proposal of an indefinite analog carriage obligation. 

Second, the FCC reaffirmed its existing requirement that cable systems must carry High Definition (HD) broadcast signals in HD format, and further that it must carry signals with “no material degradation”, i.e., with picture quality as good as any other programming carried by the operator.  In affirming its "no material degradation" standard, the FCC rejected a proposal by the broadcast industry that would have required operators to pass-through all of the bits in digital television broadcast signal.

Third, the Commission also voted at its open meeting to again extend for five years the existing prohibition on exclusive distribution agreements between cable operators and cable-owned programming networks, and to require disclosure to program-access complainants of certain network affiliation contracts.  Finally, the FCC adopted a Notice of Proposed Rule Making (NPRM) commencing an inquiry into the alleged wholesale “tying” of marquee programming with less desirable or unwanted program services, which some think may also provide a segue into the issue of a retail “à la carte” programming mandate for cable operators.

Further details about these new rules and the new inquiry into the tying of programming can be found in Davis Wright Tremaine's recent bulletin, which is available here.  We will keep you posted and provide more details once the text of these decisions becomes available.