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 As the digital television transition continues to progress, the FCC has been pursuing not only broadcasters who have been slow in building out their digital facilities, but also consumer electronic manufacturers who have not done enough to facilitate the transition. In a letter released this week, Chairman Martin has by letter urged consumer electronics retailers to stock inexpensive converter boxes that will pick up digital signals and allow analog television sets to broadcast those signals, keeping those sets from becoming obsolete. Also, the FCC recently entered into a consent decree agreeing to a fine for Sling Media for not including a digital television tuner in some of its equipment, reminding all consumer electronics manufacturers, including those who install them as an adjunct to their technology, of the need to include such tuners in their equipment.

The issue of the digital converter boxes is an interesting one. When NTIA started issuing coupons to consumers to subsidize their transition to digital, it was hoped that the $40 coupons that consumers would receive would come close to covering the entire cost of the converter box necessary to keep an analog set operational. In fact, in most cases, the boxes have cost more than $40, requiring the consumer to pay at least some of the cost of the box. What has been particularly frustrating has been the announcement that Echostar, the satellite television provider of the Dish Network, had manufactured a highly rated box that would be available at $40, and would also include the ability to “pass through” analog signals – to continue to receive analog as well as digital signals – a particularly important property in markets where there are LPTV or TV translator stations that will continue to operate in analog after the February 17, 2009 deadline for the digital conversion of full-power television stations (see our post here on that issue). However, as the Chairman’s letter makes clear, that box and boxes like it are not available in most consumer electronics stores. Thus, the Commission has urged retailers to stock such devices in these final months before the digital cut-off so that no one is left behind. Continue Reading FCC Tackles Equipment Manufacturers for Not Including DTV Tuners in Their Devices

Broadcasting and Cable magazine today reported that the FCC is looking to back off some of the requirements for the "enhanced disclosure" of television broadcaster’s public interest programming (see our summary of the new requirements of FCC Form 355, here).  B&C reports that the FCC may lessen or at least better explain…

It’s been a week since Wilmington, North Carolina became the first television market in the country to have virtually all of its television stations convert to digital – ceasing their analog operations.  The FCC, NAB and local stations all concentrated great resources in Wilmington in order to ensure that the transition was smooth and, while most observers believe that disruption was minimal, there are some who remain concerned about the results of the Wilmington experiment, and whether it can be replicated in other television markets.  While the FCC ramps up its efforts to promote the digital television transition around the country, one Commissioner has suggested several other steps that should be taken (including leaving an analog lifeline for those people who don’t get the message), and Congress is set to weigh in on the issues over the next two weeks.  All in all, the push is on for the February 17, 2009 transition to digital.

One of the most thought provoking commentaries on the transition comes from Harry Jessell, editor of TV Newsday.  In a commentary published last Friday, Jessell computes that the complaints in Wilmington amounted to about 5% of the television households in that market.  If that pattern was to be repeated in all markets around the country, Jessell computes that there would be about 1.7 million homes that will miss the transition and be without TV service on February 18.  Jessell further figures that this is a best case number, as all of the publicity showered on Wilmington will not be available in the remainder of the country, and there will likely be more technical problems in other markets with more irregular terrain than Wilmington (which is mostly flat coastal plain) and where TV towers are in different locations.  Jessell suggests several steps – including staggered cut-off dates to avoid overloading national DTV hotlines, more education on antenna issues (one of the major issues in Wilmington), and more "soft-tests" (stations ceasing analog operations for limited periods to see if their viewers are ready for the transition). It is a commentary worth reading.Continue Reading Digital Television Conversion is a Reality in Wilmington NC – Publicity Ramps Up Around the Country While Issues of Readiness are Raised

More than 8 years ago, a group of television station owners (the Network Affiliated Stations Alliance or "NASA") who operated stations affiliated with the major television networks filed a request with the FCC, petitioning the Commission to rule that certain provisions in network affiliation agreements that limited the ability of stations to preempt network programming should be prohibited.  While some of these issues were raised in the Commission’s localism proceeding, the parties have now reached an agreement to resolve many of the issues.  The Commission last week released an order approving that agreement and clarifying some of the legal issues as to what provisions can be contained in network affiliation agreements.  These clarifications not only help to clarify the clauses that can be contained in affiliation agreements, but also give broadcasters insights as to what kinds of provisions can be included in any agreement by which one party provides programming to a broadcast station licensee, including agreements such as LMAs.

 The Commission’s Order sets out standards governing the network-station relationship that insure that the licensee maintains control over programming and other basic operational decisions of their station.  From this basic principal, the following specifics were adopted:

  • Station licensees have an unfettered right to reject network programming that they believe is contrary to the public interest, "unsatisfactory" or "unsuitable
  • Stations can preempt network programming when the licensee thinks there is some other programming which is of greater national or local importance.
  • If a preemption is done for one of these reasons, the affiliation agreement cannot impose monetary or non-monetary penalties or limit the amount of such preemptions
  • Affiliation agreements cannot give networks the right to "option" time in the future unless they make a commitment to fill that time with programming.   This is important in a multichannel digital context, as it prevents networks from tying up time on a second or third channel that they might or might not use.

Continue Reading Setting the Standards for the TV Network-Affiliate Relationship – Guidance for LMAs and Other Programming Relationships

The Commission this week released an Order exempting certain small cable systems from the requirement that, after the February 2009 digital transition, for a three year period, cable systems carry both an analog version of a broadcast television station’s signal plus the station’s high definition signal.  This dual carriage requirement was imposed so that the…

The FCC today released its schedule for Regulatory Fees that will be paid in September of this year.  The Order set the fees to be paid by entities regulated by the FCC, increasing those fees as required by Congress by approximately 7.5% over the fees paid last year. The fees to be paid by broadcasters are set forth below.  Fees for all other services can be found in the appendix to the FCC’s Order setting the fees.  The exact window for paying the fees has not yet been set, but should be announced later this month, in a public notice that will also provide more details on the filing process.  The Order also contains a Further Notice of Proposed Rulemaking, asking if the FCC should change the allocation of fees between the services regulated by the FCC.  As to broadcasters specifically, the FCC asks if it should adopt fees for Digital Television, as the current FCC fees apply only to analog television.  Comments on these issues will be due 30 days after this Order is published in the Federal Register.

In reaching its decision as to the fees for 2008, the FCC decided not to impose a fee on AM expanded band stations for the current fee cycle – but it will decide whether to do so after the FCC decides the issue raised in the pending Diversity proceeding as to whether to allow licensees to retain those AM stations if they are held by a small business entity.

Fees are paid based on the status of the station as of October 1, 2007 (so, for instance, if a station had received an upgrade in the interim, it pays based on its old facilities).  However, the licensee who owns the station as of the date that fees are due is responsible for paying those fees, even if it did not own the station as of October 1, 2007.  Fees for radio are set by a combination of the predicted population served by the station and the class of the station, while TV station’s fees are paid based on TV market size.  Parties holding construction permits for new stations pay flat fees regardless of the area served by the proposed station, and there are also flat fees for broadcast auxiliaries, television stations that are authorized as satellites of other stations, and secondary broadcast stations (e.g. translators).  Noncommercial operators are exempt from the fees.  The fees for broadcasters can be seen by clicking on the "Continue Reading" link below.  Continue Reading FCC Sets 2008 Regulatory Fees and Starts Proceeding to Reallocate Future Fees

On Monday, the President signed into law a bill adjusting the reimbursement dates of the Low Power Television grant program by which LPTV and TV translator stations can seek a $1,000 grant in order to ensure that they are able to continue to receive and rebroadcast the signals of primary full-power television stations once the full-power stations complete the transition to digital television.   In late 2007, the government announced the start of the LPTV Digital-to-Analog grant program designed to help translators and low power television stations continue their analog broadcasts after the February 17, 2009 conversion of full-power television stations to DTV.  Specifically, the LPTV Digital-to-Analog Conversion grant program will provide funds to eligible translators and LPTV stations that need to purchase a digital-to-analog converter box in order to convert the incoming signal of a full-power DTV station to analog format for retransmission on the analog LPTV station.  The program has been funded with a total of $8 million, which is available in $1,000 grants to eligible LPTV stations.  As a result of the recent change, funds granted through the LPTV Digital-to-Analog grant program will available beginning in fiscal year 2009 (Oct. 1, 2008 – Sept. 30, 2009), rather than in fiscal year 2011.  In addition, the recent bill also extends the availability of funding through fiscal year 2012.

Any low-power television broadcast station, Class A television station, television translator station, or television booster station that meets the following three criteria may apply for the grant to defray the cost of the digital-to-analog converter box:

  1. It is itself broadcasting exclusively in analog format;
  2. It has not purchased a digital-to-analog conversion device prior to February 8, 2006; and
  3. It is (or will be) re-transmitting the off-air digital signal of a full-power DTV station.

Applications for this grant program are being accepted until February 17, 2009.  Priority compensation will be given to eligible LPTV stations licensed to 501(c) non-profit entities or LPTV stations serving a rural area of fewer than 10,000 viewers.  Thus, priority is given to stations owned by translator associations and others that might not otherwise be able to afford the costs of converting the signals that they receive from analog to digital, and which might, without the grants, go off the air.  More information on how to apply for such grants is available on the NTIA’s website here.    Continue Reading Dates for Reimbursement Under the LPTV Digital-to-Analog Grant Program Revised

Yesterday, the FCC released its further Public Notice announcing that the freeze on filing certain Class A LPTV applications will be lifted on August 4th.  Previously, Class A stations had been frozen from expanding their authorized contours and from changing channels (displacing) while the DTV transition was underway.  Because Class A stations receive protection as…

With the Digital Television conversion date only eight and a half months away, the end game is beginning.  The FCC has announced that Wilmington, North Carolina will be a test market for the digital conversion, going all-digital on September 8 (or almost all digital, as the local NPR affiliate is not planning to turn off its analog signal, and one LPTV station will continue to operate in analog).  This will provide the FCC with an opportunity to determine what will really happen when the digital transition occurs in February of next year.  What will the FCC learn from this early test?  In the statement of Commissioner Copps at a recent town hall meeting held in Wilmington to address the digital conversion, some of the issues to be watched were set out.

Essentially, the Commissioner identified four different broad categories of issues that would be considered.  They are:

  • Technical issues – will the DTV signals provide adequate service to their communities?  Will the converter boxes be able to receive the signals with "rabbit ear" antennas, or will there be reception problems
  • Will consumers have received the word about the transition, or are there certain groups that will be particularly hard-hit by the transition, missing out on vital information about that transition?
  • How will various partnerships work?  The Commissioner identifies partnerships between various industry, government and community groups to distribute news about the transition, but there are also partnerships between stations and multi-channel video providers (cable and direct broadcast satellite) that need to be worked out
  • The unknown – what other issues that are not anticipated will arise?

As set forth below, many of these issues have been receiving extensive press coverage in recent weeks.Continue Reading What Will the FCC Learn from Wilmington – The Beginning of the End of the TV Digital Transition