Congress Daily

TELECOMMUNICATIONS

Wednesday, Jan. 20, 2010  

The battle over broadcasting's future is on.

Despite growing opposition in Washington and strong resistance from television stations, the FCC is proceeding with a controversial plan to reallocate a significant portion of digital airwaves to wireless carriers.

But in a nod to congressional overseers and the powerful National Association of Broadcasters, headed by former Sen. Gordon Smith, R-Ore., the commission prefers to take a soft-pedal approach.

"Depending on what the proposal is, it could make the broadcasters a subordinate feature in American life," Smith warned in an interview.

Citing the billions of dollars spent on last year's digital TV transition, Smith added: "To have a federal policy in place that essentially says 'never mind' I think is very unwise and very unfair."

While the FCC initially floated the idea of forcing stations to relinquish half their spectrum, it now says that would be a last resort. Instead, it wants to give stations -- particularly struggling ones -- a chance to turn in licenses voluntarily.

This approach would buy time for pending legislation that could free up more airwaves by requiring the government to inventory its communications spectrum.

If necessary, tougher measures could be imposed. "They're not really mutually exclusive," said Phil Bellaria, director of scenario planning for the FCC's Omnibus Broadband Initiative, referring to the ideas in play.

The tussle is a flashpoint in the agency's upcoming national broadband plan that will seek to achieve universal, affordable wireless broadband by 2020. Some experts think the challenge of finding more spectrum contributed to the FCC's decision to give the plan to Congress on March 17, a month late.

Broadcasters speak of dire consequences if their frequencies are cut, with free over-the-air high-definition broadcasts and ancillary digital channels among the casualties. That message is resonating with key lawmakers, including House Energy and Commerce Communications Subcommittee Chairman Rick Boucher, D-Va., former House Energy and Commerce Chairman John Dingell, D-Mich., and Rep. Greg Walden, R-Ore.

Sen. Olympia Snowe, R-Maine, a senior Senate Commerce Committee member, issued a statement expressing "reservations about the FCC's increased focus on broadcasters" while several spectrum proceedings are pending.

Like Snowe, Commerce ranking member Kay Bailey Hutchison prefers an analysis of previously allocated commercial spectrum to determine "if we can promote leasing and other arrangements" that use it more effectively, a committee source said.

"There has been a rush to judgment by some to identify particular areas of the spectrum for reallocation," the source said, referring to broadcast airwaves. "This type of snap judgment is premature without the type of broad analysis and inventory she supports."

The FCC has sought to assure broadcasters that their airwaves can be reallocated with few disruptions. It wants to begin with a "market-based" approach under which stations could voluntarily hand in licenses or consolidate while receiving financial compensation for returned frequencies. But success hinges on the level of participation.

Mandatory steps include requiring broadcasters to cede half their airwaves and double up on transmission towers. The FCC insists each station could offer either one high-definition signal or up to three ancillary signals in not-as-sharp standard definition.

David Donovan, president of the Association for Maximum Television Service, a broadcast industry group, counters that the high-definition TV alternative cannot be offered under this approach, grousing: "To call it HDTV is like calling a weed a rose."

The FCC could "repack" stations closer together without reducing spectrum, though there are downsides. Many broadcasters would have to acquire new transmitters, which could be paid for with auction proceeds, and relocate on the dial. Only a small amount of frequencies would be recouped and viewers would have to rescan their sets.

Another option involves auctioning "overlay licenses" that would let wireless carriers use unoccupied TV spectrum. To expand service, auction winners could negotiate with stations to relocate on the band or go dark, prompting broadcasters to worry about interference and undue pressure.

"We'll explore any ideas the FCC puts on the table," said NAB spokesman Dennis Wharton.