Incentive auction Stage 3

Yesterday was a busy day for the TV incentive auction, where the FCC is attempting to clear portions of the TV band by paying TV stations to surrender their licenses, and repurpose the cleared spectrum for wireless broadband users. As we wrote earlier this week, Stage 3 of the Forward Auction started yesterday, where wireless companies would have had to come up with over $42 billion dollars to meet the costs of clearing the TV band. The Forward Auction closed after one round of bidding with bids totaling $19,676,240,520. Thus, we are on to Stage 4, with the FCC expected to attempt to clear 84 MHz of TV spectrum instead of the 108 MHz target in the just concluded Stage 3. The Reverse Auction in Stage 4 is expected to commence on Tuesday, December 13, but look for confirmation later this week.

At the same time, there are two other bits of auction related news – both dealing with stations eligible for the auction. In the first, the US Court of Appeals rejected the appeal of Walker Broadcasting Company, a company that had an authorization for a new TV station, but had not finished construction and licensing of that station in time for inclusion in the auction. Had it been included in the auction, the company could have attempted to sell its license in the auction and, if its station was not one purchased in the auction for surrender, the FCC would have had to find a new channel on which the station could operate after the auction. Instead, the Court upheld the FCC’s ruling that the station had not met the required construction deadlines, and therefore did not qualify to be included in the auction or for post-auction protection.
Continue Reading Incentive Auction News: Stage 3 Forward Auction Closes After One Round, Stage 4 to Commence Next Week; GAO Issues Report on Effects on LPTV; Court Dismisses Appeal of TV Station Exclusion from Auction

The FCC last week announced that Stage 3 of the reverse auction portion of the FCC Incentive Auction is now complete, and the amount necessary to be paid to TV stations to vacate the required spectrum in this stage is $40,313,164,425.  This represents a drop from the $54,586,032,836 clearing cost that resulted from Stage

November is one of those few months where there is a very light load of routine regulatory filings for broadcasters.  This is a month with no routine FCC ownership or children’s television reports.  There are no routine EEO reports for the public file, and no other FCC regularly-scheduled deadlines.

Of course, there are several other dates that broadcasters need to be aware of.  October 31 is the end of the FM translator window to move translators up to 250 miles to serve AM stations – so November 1 will likely bring lessened demand for any translator that did not find a new AM home during the window that has been open to various groups of AM stations since January. Those looking for translators to operate with FM stations may find opportunities now less expensive, but harder to move, so opportunities will be limited to stations near to areas where the translators already are located.

Once the FCC’s Broadcast Incentive Auction for television has concluded, the FCC will announce two windows for new FM translators.  These windows (the first for Class C and D AM stations only, and the second for Class A and B AM stations) will only be open to AM licensees that did not participate in the 2016 windows.  See our article here for more information. 
Continue Reading November Regulatory Dates For Broadcasters – Incentive Auction, EAS, Political and More