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Incentive Auction Marches On – Online Tutorial on Broadcaster Reverse Auction Process, and Notice on Who Can Receive Auction Payments

By David Oxenford on December 4, 2015
Posted in Digital Television, Incentive Auctions/Broadband Report, Television

With the January 12 deadline for the Form 177 incentive auction filings by broadcasters coming ever closer, there is more information from the FCC providing guidance to broadcasters on their participation in the process. The folks at the FCC running the auction posted an article on the FCC blog yesterday, promising an online tutorial available to walk broadcasters through the auction process. This is in addition to the webinar the FCC will be conducting next Tuesday to discuss the initial FCC filing by which TV broadcasters indicate their initial interest in auction participation – see our post here.

In addition, the FCC issued a public notice last week acknowledging that broadcasters can designate who will receive their payments for relinquishing their spectrum after the auction – acknowledging that payments need not be made directly to the station licensee. While only one payee can be designated, this ability to direct payments to someone other than the licensee may facilitate the use of a “qualified intermediary” which may have tax implications for some stations interested in participating in the auction. It may also facilitate some Channel Sharing Agreements, by allowing payments to be made to escrow agents who can disburse the funds as directed by the agreement. The FCC urges, as do we, that interested stations consult their tax advisors on how these payments should be structured to make sure that they get accurate advice on how to maximize tax benefits from the auction.

Tags: FCC Form 177, TV channel sharing
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Photo of David OxenfordDavid OxenfordPartner

David Oxenford represents broadcasting and digital media companies in connection with regulatory, transactional and intellectual property issues. He has represented broadcasters and webcasters before the…

David Oxenford represents broadcasting and digital media companies in connection with regulatory, transactional and intellectual property issues. He has represented broadcasters and webcasters before the Federal Communications Commission, the Copyright Royalty Board, courts and other government agencies for over 30 years.

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Photo of David O'ConnorDavid O'ConnorPartner

David has coordinated the purchase and sale of numerous radio and television stations, and has helped telecommunications companies, industry associations, broadcasters, educational institutions and others…

David has coordinated the purchase and sale of numerous radio and television stations, and has helped telecommunications companies, industry associations, broadcasters, educational institutions and others with FCC compliance matters and advocacy in regulatory proceedings, such as those related to new technologies, media ownership, and spectrum allocations. David also advises voice and data providers on issues related to Telecommunications Relay Services (TRS) for the deaf and hard of hearing, including Internet-based Video Relay Services (VRS) and IP Captioned Telephone Service (IP CTS), and otherwise helps clients with all of their FCC-related needs.

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David is a partner at the law firm of Wilkinson Barker Knauer LLP, practicing out of its Washington, DC office. He has represented broadcasters for over 30 years on a wide array of matters from the negotiation and structuring of station purchase and sale agreements to regulatory matters. His regulatory expertise includes all areas of broadcast law including the FCC’s multiple ownership limitations, the political broadcasting rules, EEO policy, advertising issues, and other programming matters and FCC technical rules.

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