Broadcast Auctions

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The only significant legal issues that were potentially standing in the way of the broadcast incentive auction are slowly being removed. So far this week, the US Court of Appeals in Washington, DC has denied two requests for stays of the commencement of the reverse auction, scheduled to begin on March 29 with the submission of commitments to accept the FCC’s payout offers by stations interested in surrendering their channels to the FCC or moving from UHF to VHF channels. The Court denied one stay request outright, but it did note that another applicant, Latina Broadcasters, had made a showing sufficient for the Court to order some relief for that applicant. The Court ordered that the licensee be allowed to participate in the incentive auction on a provisional basis – presumably meaning that they can bid but, if their appeal of being thrown out of the auction is denied, they would not get the benefit of any payments that would otherwise have gone their way from any surrender of their license in the auction.  (See our article here about previous actions in this case)

The FCC has now issued a statement that the inclusion of Latina in the auction will not delay the March 29 deadline for auction participants to make their binding commitments about auction participation. A letter to the Court, referenced in the FCC’s statement, contains a cryptic statement that “a short delay would result from Latina’s inclusion in the auction,” perhaps indicating that other aspects of the auction may be delayed somewhat, but the FCC’s notice makes clear that the March 29 deadline will hold. This is of course subject to Court action on the final unresolved request for stay of the auction – a request by Videohouse, Inc., another LPTV licensee claiming that it should have been treated as a Class A station and included in the auction. The Court actions thus far let the FCC proceed with the auction, and the Commission has gone ahead with advancing the auction process itself, sending out letters to all auction applicants including the SecureID tokens necessary for applicants to participate in the auction itself.
Continue Reading Incentive Auction Moves Forward – Two Requests for Stay Denied and SecureID Tokens Distributed to Reverse Auction Participants

The FCC yesterday released a Public Notice dealing with the upcoming March 29 commitment deadline for TV broadcasters who filed their applications back in January indicating a possible intent to participate in the incentive auction to surrender their TV channel so that the FCC can use it to repack the TV band to free spectrum to sell to wireless broadband users. In the Public Notice, the Commission made clear that station’s actual commitments to accept the FCC’s initial offers to give up their spectrum (either by abandoning their channel entirely by going out of business or sharing with a channel with another broadcaster, or by moving from a UHF to a VHF channel) will need to be filed between 10AM on March 28 and 6 PM (Eastern Time) on March 29. The January applications said that a broadcaster might be interested in giving up its current channel – filings made before the upcoming March 29 deadline make that commitment binding.

Yesterday’s notice announced that the FCC will be making available its “Initial Commitment Module” of the Incentive Auction software system at 10 AM on March 24 during a “preview period” for review by TV broadcasters. That is the piece of software on which the broadcaster makes its commitment to participate in the auction at the FCC’s initial offering price. Starting on Monday, February 29, the FCC will be making available an online tutorial to allow broadcasters to familiarize themselves with how the software will work. In addition, today the FCC announced that it will hold a workshop for broadcasters on March 11, starting at 10 AM Eastern Time, providing information on how to make these commitments.  These actions come while the FCC battles with some LPTV stations claiming that they should have been considered Class A TV stations and included in the auction – a legal battle that seems to be the last potential legal speedbump that could in any way derail the upcoming auction.
Continue Reading FCC Announces Previews for TV Broadcasters of Incentive Auction Initial Commitment Software; Denies Auction Stay Request from LPTV Applicant

It’s that time of the year when we need to dust off the crystal ball and make predictions about the legal issues that will impact the business of broadcasters in 2016.  While we try to look ahead to identify the issues that are on the agenda of the FCC and other government agencies, there are always surprises as the regulators come up with issues that we did not anticipate. With this being an election year, issues may arise as regulators look to make a political point, or as Commissioners look to establish a legacy before the end of their terms in office.  And you can count on there being issues that arise that were unanticipated at the beginning of the year.

But, we’ll nevertheless give it a try – trying to guess the issues that we will likely be covering this year.  We’ll start today with issues likely to be considered by the FCC, and we’ll write later about issues that may arise on Capitol Hill and elsewhere in the maze of government agencies and courts who deal with broadcast issues.  In addition, watch these pages for our calendar of regulatory deadlines for broadcasters in the next few days.

So here are some issues that are on the table at the FCC.  While the TV incentive auction may well suck up much of the attention, especially in the first half of the year, there are many other issues to consider.  We’ll start below with issues affecting all stations, and then move on to TV and radio issues in separate sections below. 
Continue Reading What Washington Has in Store for Broadcasters in 2016 – Looking at the Legal Issues that the FCC Will Be Considering in the New Year

While January starts off with some regulatory deadlines that apply to all broadcasters – Quarterly Issues Programs lists must be placed in a station’s public file by the 10th of January – there are many other dates that come due this month, dates to which broadcasters need to pay careful attention. For TV stations, they need to file at the FCC by January 11 (as the 10th is a Sunday) Children’s Television Reports, listing all of the programming that they broadcast in the previous quarter addressing the educational and informational needs of children. Records showing a TV station’s compliance with the commercial limits in children’s television should also be placed in the station’s public file.  As we have written, missing Quarterly Issues Programs lists (see our articles here and here) and Children’s Television Reports (and even late Children’s Television Reports) provided the basis for most of the fines during the last renewal cycle (see, for instance, our article here) – even for missing reports from early in the renewal cycle and, for the Children’s Reports, even where the reports were filed (repeatedly) only a few days late. So it is important to meet the obligations imposed by these regular filing deadlines.

Starting on the first day of this new year, there are a host of other obligations and deadlines that arise. On January 1, TV stations need to be captioning clips of video programming that they make available on their websites or in their mobile apps, if those clips came from programming that was captioned when shown on TV. For more on that obligation, see our article on the new online captioning requirements here.
Continue Reading January Regulatory Dates for Broadcasters – Quarterly Issues Programs Lists and Children’s Television Reports, Incentive Auction, FM Translators for AM Stations, Webcasting Fees, LUR Windows and More

The last week has been a busy one for the FCC in preparing for the December applications by broadcasters for participation in the TV incentive auction. The incentive auction will, of course, offer TV broadcasters money (in some cases, lots of it, at least initially) to vacate their spectrum so that the television band can be “repacked” – consolidated into fewer channels – with the reclaimed spectrum being divided into different size blocks and resold to wireless companies for wireless broadband uses. In the last week, the FCC has made public two forms that will be important to that effort – the Form 177 which (as we wrote here) will be filed in December by broadcasters initially interested in participating in the auction, and the Form 2100 Schedule 399, which will be used to claim reimbursement by TV stations that do not surrender their licenses but which are forced to change channels as part of the repacking. The Form 177, the form that broadcasters must submit if they want to take part in the reverse auction, is not easy to find, but is available here, on the website of the Office of Management and Budget, where it has been submitted for review under the Paperwork Reduction Act before it can be released to broadcasters for submission by the December 18 filing deadline.

Similarly, and a bit more publicly, the FCC has released the form, Form 2100 Schedule 399, which broadcasters who do not sell out in the incentive auction, but instead are repacked and forced to move to another channel, will use to claim reimbursement for such moves. The form reveals the categories of expenses for which reimbursement would be made. This form is also being submitted to OMB for approval under the Paperwork Reduction Act, according to the FCC Public Notice which provided notice of the form.
Continue Reading Closing In on the Incentive Auction – Broadcast Application and Reimbursement Forms Available for Review, Reverse Auction Workshop and TV Interference Calculations

November is another of those months with no regular filing obligations – no EEO public file and Mid-Term reports, no noncommercial ownership reports, and no quarterly issues programs lists or children’s television reports. EEO public file reports and noncommercial station ownership reports, being tied to renewal dates, will be back in December. See our Broadcaster’s Calendar, here, for information about the states where stations have such obligations. For all commercial radio and TV stations, November also means that they should be completing their Biennial Ownership Reports, which are due on December 2 (extended from the November 1 due date by FCC action noted, see our article here). Those reports submit a snapshot of broadcast station ownership as of October 1, so they can be filed at any time in November.

The end of November also brings the effective date of the requirement that TV stations convert the text of their emergency alerts run in entertainment programs (like weather alerts) into speech, with that audio to be broadcast on the station’s SAP channel. See our articles here and here on that requirement.
Continue Reading November Regulatory Dates for Broadcasters – Incentive Auction and Biennial Ownership Report Preparation, Reg Fee Comments, Music Issues, Text to Speech Emergency Information and More

A month ago, the FCC released its Notice of Proposed Rulemaking looking to reassess the requirement that broadcasters and MVPDs (cable and satellite television) engage in “good faith” negotiations over the retransmission consent necessary for the MVPD to rebroadcast the signal of a broadcast television station, triggering numerous questions throughout the industry (and among financial analysts who follow the television industry) as to what that release meant. On Friday, the Notice of Proposed Rulemaking was published in the Federal Register, setting the dates for the filing of comments on the questions raised by the Commission. Comments are due on December 1, and Reply Comments on December 31. Given that this may well be the same period of time in which TV stations are preparing their initial applications for the incentive auction, and given that the reply falls in the middle of the holidays, don’t be surprised if requests for an extension of these comment dates are filed.

But no matter the dates on which comments are filed, this proceeding obviously raises a number of important issues. While many industry analysts wondered if, by the very fact that the Notice was released, it signaled the FCC’s intent to “go after” broadcasters in their retransmission consent dealings – perhaps as a way to encourage them to participate in the incentive auction by threatening the revenue from the retransmission consent fees that they now receive. But what most of these observers fail to note is that the release of the NPRM by September 1 was actually not the initiated by the FCC Commissioners. Instead, the action was mandated by Congress when it adopted STELAR, the law that extended the right of satellite television companies to retransmit the signals of local television stations. That legislations included many required actions and studies (see our summary here), including the requirement that this NPRM be started by September 1. Thus, the Commission actually waited as long as it could in releasing this rulemaking order.
Continue Reading Dates Set for Comments on Good Faith Negotiation of Retransmission Consent Agreements – What is the FCC Asking?