FCC Authorizes Mobile DTV Receivers Without Analog Tuners - Further Signals of the End of Analog LPTV, and Raises Questions of Recapture of TV Spectrum for Broadband

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.

The order allows mobile receivers to leave out not only the analog tuner, but also a tuner that is capable of receiving normal over-the-air digital television pictures, as long as their is a clear disclosure to consumers that these tuners are not capable of receiving normal analog or digital television programming.  Thus, these will be dedicated devices for the new mobile television service. 

One interesting note is that the success of this service will make it more difficult for the Commission to reclaim television spectrum for broadband use.  The old VHF channels, still used by some television stations, though much less congested than in analog days, are reportedly not very good for mobile use.  Were the Commission to try to take back television spectrum for broadband use, where could they put the TV stations displaced from the reclaimed spectrum, especially if they have successful mobile operations?  Thus, the services which this ruling promotes may help to shape the debate about the broadband recapture. 

FCC Seeks Input on Use of TV Spectrum; Comments due Dec. 21

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. 

DTV Station Reminder: FCC Form 317 Reporting of Ancillary Services Due Dec. 1st

By December 1, 2009, all commercial and noncommercial digital television (DTV) stations must electronically file a FCC Form 317 with the Commission reporting on whether the station has provided any ancillary and supplementary services over their digital spectrum during the twelve-month period ending on September 30, 2009.

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.

All 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. 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.  The Form 317 is very brief, soliciting information about the license and the types of services provided, if any, and must be filed electronically through the CDBS filing system.

Some have noted recently in the ongoing debate regarding the future use of television spectrum (see our earlier blog) that Congress and the Commission have already given broadcasters the flexibility to use or lease their spectrum for virtually any purpose, so long as they continue to provide a free, over-the-air video programming stream, and remit 5% of the gross revenues derived from such ancillary services to the government.   Arguably then, the current rules already give broadcast stations the incentive and the ability to lease out any excess capacity to the highest bidder and for the marketplace to influence the optimal usage of the television spectrum.  And in exchange, the government will recoup a percentage of the revenue generated by such use of the spectrum.  So to the extent that parties seek to open the broadcast television spectrum to other possible uses and to ensure that the government benefits from the upside of such leasing, the rules for achieving that goal already seem to be in place.  Now it just remains to be seen whether there is a viable market for leasing television spectrum for such ancillary services.  To date, I think that the number of stations offering ancillary services, leasing their spectrum, and generating revenue from these ventures has been quite small.