The FCC yesterday proposed abolishing the UHF discount – which counts the audience reached by a UHF station as only one-half when computing whether the owner is approaching the 39% cap on nationwide audience that can be reached by one owner. While many FCC rulemaking proposals are very subtle, with many nuances that are important in the debate about the final rules to be adopted, this proposal is actually straightforward – should the discount be abolished or not.  Following the digital transition, which saw many migrate from VHF to UHF, most television stations are now UHF (meaning that they operate on TV channels 14-51). While many stations may continue to identify themselves by their old VHF channel numbers, the vast majority now really operate on UHF channels because of UHF’s technical superiority in a digital world.  Digital allows these stations to identify themselves with a “virtual” number – looking to consumers like they are still on channels 2, 4, 7, 9, etc. – when they are really operating on a UHF channel.  But the actual channel of operation is used for claiming the UHF discount and assessing compliance with the 39% audience cap. In yesterday’s Notice of Proposed Rulemaking, the Commission proposed doing away with that discount, as the impediment that stations used to suffer from being on a UHF channel (worse indoor reception, a more limited coverage area and significantly higher electricity costs) are no longer as severe, and being on UHF actually has become an advantage (as UHF, in a digital world, is less susceptible to interference and needs a smaller antenna, thus being better for mobile operations). While the Commission’s proposal is straightforward, and the logic seems simple, the proposal is not without issues.

These issues were identified by Commissioner Pai who yesterday dissented from the proposal for the abolition of the rule. The Commissioner noted that several television groups are already above the cap if the discount is abolished (including Univision), and several others are nearing the 39% cap. He suggested that, if the discount is to be abolished, the Commission should consider lifting the cap above 39% to reflect today’s competitive television marketplace realities, and to not effectively raise the cap on how many stations can be owned. He also suggested that diversity should be part of the consideration, given the impact on Univision. Perhaps the biggest area of debate that he raised is the question of when any rule change would take effect.

Continue Reading FCC Starts Proceeding to Consider Abolishing the UHF Discount – Effectively Lowering TV Ownership Limits?

FM translator processing and LPFMs have been inextricably tied together for years, as the services compete for spectrum throughout the country. While the principal conflicts between the two services were, for the most part, resolved last year, it seems that there will always be some ties between the two. At Wednesday’s FCC open meeting, this was illustrated by the fact that there were two reports – one on the status of the processing of the remaining applications from the 2003 FM translator window, and another about the preparations for the upcoming LPFM window.  The report on translators talked about the almost 2000 translator applications that have been or will be granted this year, and how the 2003 backlog soon will be down to only about 200 applications still mutually exclusive and to be awarded by an auction,  The LPFM report talked about the well-attended webinars that have been held by the FCC to educate the public about the possibility of new stations – and the reportedly hundreds of draft applications already partially prepared in the FCC’s electronic filing system – even though the filing window does not open for several weeks.

On the translator front. the FCC two weeks ago announced that there will be another 104 “tech box” proposals that are not mutually exclusive with any other translator application from the 2003 FM translator filing window (see the list here). These are on top of the 1700 other applications that were considered to be grantable in two separate lists that came out earlier this year (see our articles about these prior “singleton” groups, here and here). Long-form applications (ones that spell out the details of the applicant’s proposals, including information about the applicant’s ownership and specific technical information about where the station will be built) for the 104 newly identified singleton applications are due on October 9. Instructions for filing those applications are available here.

That deadline is just prior to the deadline for LPFM applications. As with other recent translator filings, the long-form applications for these new translators are only protected against interference from new LPFM applications from the coming window to the extent of their coverage on June 17, the date that the LPFM window was announced. Moves made from the sites specified as of June 17 may not have any protection from subsequent LPFM applications. But the new LPFM applications themselves have numerous rules and procedures that they must follow to be found acceptable in the upcoming window.

Continue Reading More New FM Translators to Be Granted, While FCC Provides More Details for LPFM Filing Window

The buzz in Washington this week is about whether the FCC and the rest of the Federal government will be open come next Tuesday, October 1. October 1 is the start of the FCC’s fiscal year, and without a “continuing resolution” (Congressional authorization to keep the government running at current levels even without a formal budget), there will be no authorized funds to run the government, and there will effectively be a shut-down of all but “essential” government services. Even if Tuesday’s deadline is averted, the government faces another potential shut-down of some of its functions in the middle of the month (apparently by October 17) unless there is a vote to raise the Federal debt ceiling. As attempts to repeal the new health care law are being tied to the legislation necessary to fund the government, many think that there is a real possibility that we will see a shut-down for the first time in almost twenty years in October. What would such a shutdown mean for broadcasters?

While the FCC has not yet issued a plan for a shutdown, such plans are beginning to be seen at other government agencies. So, while we don’t know for sure what the FCC’s plans would look like yet, we can look at the plan issued in 2011, when the government last came within hours of a shutdown. We wrote about that situation here. Basically, most all of the FCC’s workforce would need to go home, and could not perform any functions while the government is closed. Thus, there will be no construction permits issued for new or improved stations, and no grants of other pending applications – including assignments and transfers – meaning that sales of stations would be in limbo for however long the shutdown lasts. FCC officials could not travel, so they could not attend any broadcaster conventions or other meetings that may have been planned. And, in most other shut-downs (or in shutdown planning), the Commission’s staff was not even allowed to voluntarily do anything related to their official business – so they could not answer emails or phone calls from home, or travel on their own dime to anything related to their official functions.

Continue Reading What a Federal Government Shut-Down Would Mean for Broadcasters

In 2011, the FCC conducted the first-ever nationwide test of the Emergency Alert System – commonly known as EAS (see our article here about the FCC’s report on the results of that test). While the system was originally created to convey Presidential alerts to the nation, it has never been used for that purpose and, until the nationwide test, it had never even been tested. Instead, EAS has most commonly been used for local emergencies like weather alerts and, in recent years, Amber Alerts for missing or abducted children. In the Public Notice released this week, the Commission asked for comments on a number of issues uncovered during the nationwide test, which in many ways illustrated how far the EAS system has evolved from its original purpose.

The issues on which comments are sought are principally technical issues of system design, such as whether the time codes in the EAS headers work the same on all EAS hardware, or whether these codes resulted in tests running at different times on different stations.  Apparently, some stations immediately broadcast the alert when received, and others delayed it until the time specified in the codes indicated that it should be run (3 minutes after the alert was sent out). The Commission also noted that there is no specific code in the standard alert codes for a nationwide alert. Similarly, there is no “location code” for a nationwide alert, as all of the location codes (which specify the geographic area where the alert is targeted), have been set up on a state-wide or more localized basis for the weather alerts and other similar localized emergencies for which the system is regularly used. These would all seem like easy things to fix – but are they?

Continue Reading FCC Seeks Comments on Technical Details of Nationwide EAS Test – Preparing for the Next Test?

We have not written as much as we should have about the current FCC proceeding looking to reclaim parts of the television spectrum in order to repurpose it for auction to wireless users. The process by which the FCC will pay some broadcasters to give up their spectrum (the "incentive auction"), and get the money to pay for that surrender of spectrum from a simultaneous auction of the reclaimed spectrum, is a very complicated one. It will require careful judgments about how much money will be received and how much will be needed to be spent to clear the required spectrum, and to pay for other costs required by Congress in the enabling legislation (see our article here about the legislation), including the costs of moving remaining broadcasters to new channels after the auction. In order to provide a uniform block of wireless spectrum across the country (so that devices can be built to receive new signals on the same channels everywhere), the television stations that are not going to return their spectrum to the FCC will have to be “repacked” into a reduced television band, requiring some stations to change channels to accomplish that repacking. This week, the FCC made two announcements that will begin to shed some light on that transition – announcing the panelists for a discussion on the repacking process, and asking for comments on the costs to be incurred by TV broadcasters which can be reimbursed by the fund that the FCC is required to maintain to fund that repacking.

The FCC first released notice of the panelists for a September 30 discussion of how the repacking of TV spectrum will take place, discussing the likely mechanics of the repacking and the ways that the repacking can be accomplished efficiently.  (For more on the discussion, go to this page on the FCC website).  Representatives of the FCC will moderate panels of trade association representatives, engineers and others to discuss the repacking process. The discussion will be webcast by the FCC (go here for the webcast on September 30).

Continue Reading FCC Seeks Comments on Reimbursable Costs of TV Stations Changing Channels as Part of Repacking of TV Spectrum for Incentive Auctions, and Announces Panels to Discuss the Process

Last week, acting FCC Chairwoman Mignon Clyburn delivered a speech at the NAB Radio Show, which talked about new technology and old, and her affection for AM radio.  In the most newsworthy aspect of the speech, the Chairwoman announced that the FCC is currently considering a draft Notice of Proposed Rulemaking looking to improve the service delivered by AM radio. As we wrote here, the issue of AM improvement has been a major initiative advanced by Commissioner Pai, looking to restore AM radio’s competitive posture.  Attention is needed to overcome some of the many obstacles that AM faces, including those from interference that has increased significantly in many metropolitan areas, causing more and more electronic “noise” that disrupts the AM service. The discussion at the Radio Show raised several proposals for AM relief. But will they really help AM stations?

First, it is important to understand that the Chairwoman was talking only about a series of proposed actions – nothing has yet been decided. There is a Notice of Proposed Rulemaking that is circulating at the Commission. This means that the proposal has been drafted and is being reviewed by the other Commissioners. Once they finish their review, the Notice will be released to the public, which will then have some period of time (probably a few months) to comment on the suggestions made by the Commission. According to the Chairwoman’s speech, and echoed by Commissioner Pai in an address that he delivered to the Radio Show, broadcasters will also be urged to come forward with their own ideas as to how to improve AM radio. All of the comments filed by the public will have to be digested before the Commission can actually implement any of them. With that background, what is to be proposed, and which actions will likely move the fastest?

Continue Reading AM Improvement Proposals Coming from the FCC – What is Coming and How Quickly?

The US District Court in Washington DC issued a decision earlier this month, enjoining the operation of the television streaming service FilmOn X throughout the United States – except within the Second Circuit (covering NY) where the US Court of Appeals reached a contrary decision in connection with Aereo – a very similar service. Both of these services utilize multiple small antennas to receive over-the-air television programs, which are recorded on a central server and sent over the Internet on demand to individual viewers. In effect, these viewers, by paying the subscription fee charged by the services, get their television programming on the Internet – through their computers and soon to their mobile devices.  The contrary decisions in these two cases illustrate a fundamental disagreement between two courts as to the meaning of the "public performance" right enjoyed by copyright holders in their copyrighted works.

As we wrote here, the Second Circuit, in the Aereo case, determined that, as the transmission of the over-the-air programming was done on an individual basis, at the demand of the individual viewer, it was not a “public performance.” In the Second Circuit’s opinion, the fact that the transmission is made to a single user, either when the program is aired or on a delayed basis, made each individual performance of the television program a "private performance," which did not infringe on the rights of the copyright holders, and more than a transmission of a signal from an antenna on someone’s roof to the television set in the living room was a public performance.  The DC Court disagreed with that interpretation, joining a District Court in California in deciding that this type of service, without the permission of the broadcaster, is a violation of the copyright laws.

The DC Court was very thorough in its review of the issue and its basis for disagreeing with the Second Circuit (or agreeing with the dissenting opinion in the Second Circuit). The issue raised in the FilmOn X case, whether the retransmission over the Internet of the over-the-air television signal of a broadcaster is essentially the same issue raised 40 years ago when cable television operators first started to operate, charging customers for bring them television signals from over-the-air TV stations. After the Supreme Court at that time, in the Fortnightly and Telepromter cases, agreed with cable operators that their retransmissions of television stations did not constitute a "public performance" of those signals, Congress intervened in 1976, revising the Copyright Act to make clear that such retransmissions of broadcast signals were in fact covered by the Act. The changes adopted then, which are still in place in the Copyright Act, were cited by the DC Court in finding that the operations of FilmOn X indeed violated the copyright holders public performance rights under the Copyright Act.

Continue Reading DC Court Issues Injunction Against FilmOn X for Its Aereo-Like TV-Streaming Service – Increasing Legal Confusion Over TV Public Performance Rights

On September 26, the FCC will hold its next open meeting and, according to a Public Notice released Friday, will consider several issues important to different parts of the broadcast industry. For television broadcasters, there will be concerns about the proposal to do away with the “UHF discount,” which gives UHF stations a 50% discount in determining the number of households they reach when determining an owner’s compliance with the limitation that prevents any one company from owning television stations that reach more than 39% of the US television households. For radio, the FCC will be getting a report on the preparations for the upcoming LPFM window, allowing applications nationwide for new LPFM stations. That window, as we have written before, is to open from October 15-29. Finally, the FCC will be looking at modifications to its Antenna Structure Registration process – which could be important to all tower owners.

As the UHF discount issue is to be considered by the adoption of a Notice of Proposed Rulemaking, it is no doubt the more controversial of the broadcast issues to be discussed at the meeting. The discount was adopted by the FCC in analog days, when UHF broadcasters faced significant disadvantages. Analog UHF signals (TV channels 14 and above) simply did not travel as far as VHF signals, were less likely to penetrate buildings (especially as many over-the-air antennas were designed for VHF reception), and were far more costly than VHF operations (as VHF transmitters operated at far lower power levels than do transmitters for UHF operations). But, in the digital world, broadcasters found that the world had been turned on its end – with UHF signals being far preferable, as the VHF digital signal was found to be far more susceptible to interference, especially in urban areas. In the less forgiving digital environment (where a signal is either there or not, instead of the degraded "snowy" picture that you could get in the analog world), the UHF signal is generally preferred – despite the higher power costs and the fact that the signals still don’t travel as far.

Continue Reading FCC Meeting to Consider UHF Discount on National TV Multiple Ownership Rules, LPFM Window, and Tower Registration Issues

September is one of the few months without a due date for the standard regulatory filings – no renewals, EEO public file reports, and no Quarterly Issues Programs Lists or Children’s Television Reports. Instead, the big filing this month is one that applies to all commercial broadcasters (and most entities regulated by the FCC in other services as well) – the annual regulatory fees due on September 20. We wrote about the deadline here (with links to the FCC webpage on which you can look up your fees), and the amounts of the fees by category of broadcaster, here. But just because there are no other regular filings due at the FCC does not mean that those in charge of regulatory compliance at your stations can take the month off once they have paid the fees.

No, there are plenty of other deadlines to which broadcasters should pay attention. Those who filed license renewal applications for radio stations in California and for TV stations in Illinois and Wisconsin should be running their post-filing license renewal announcements on the 1st and the 16th of the month. The next round of license renewals will be filed on October 1, and stations in the states where those renewals are due should be running the third and fourth of their pre-filing renewal announcements on the 1st and 16th. That would be TV stations in Iowa and Missouri, and radio stations in Alaska, Hawaii, Oregon, Washington, American Samoa, Guam, the Mariana Islands, and Saipan.

Continue Reading September Regulatory Deadlines for Broadcasters – “Reg” Fees and Renewal Notices, With More Action to Come In October

In a decision issued last week, the FCC ruled on 6 applications for LPFM stations from the last LPFM window, dismissing all of them, and warning potential applicants in the upcoming LPFM window to pay attention to the decision so that they can avoid similar issues with their applications. The dismissal of four applicants was the result of those applicants not being legally registered as nonprofit corporations in their states at the time of the FCC filing of their FCC applications. One applicant was dismissed for failing to respond to a Commission request for information in a timely basis. The dismissal of another was upheld based on the applicant’s failure to obtain reasonable assurance of the availability of its transmitter site prior to the submission of its application. These decisions thus resulted in 6 applicants losing their chance to operate LPFM stations in their markets.

Incorporation at the time of filing was deemed important in four cases for different reasons. In connection with two applicants, the failure to be incorporated was deemed fatal to the applications as the application requires a certification at the time of filing that the applicant is either incorporated or in some other form recognized by state law as an existing nonprofit educational entity (or that it is a governmental organization). That existing noncommercial status is required by law. Both applicants falsely certified that they had been incorporated at the time of filing, when in fact they had not. As they had not met the statutory mandate at the time of filing, they were dismissed. In the third case, a group tried to claim that its pre-incorporation activities qualified it as “an unincorporated organization” under state law. But the FCC found that the pre-incorporation activities were simply organizational in nature, and did not qualify the group for a license. 

Continue Reading LPFM Decisions Upholding Dismissal of Several Applicants Give Warning to Applicants in Upcoming Window