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COALITION OPINION

FEAR vs. CERTAINTY
WHAT DRIVES YOUR LPTV BUSINESS PLANNING 
IS NOT WHAT YOU THINK IT IS, OR IS IT?  



We have gotten a lot of calls and emails lately from LPTV licensees who simply do not understand the basics of what will be happening to them as a result of the incentive spectrum auction. And just as many from who we thought would know since they are large scale operators. Then again, who really does know what is going to happen?  The final rules for the auction and channel repacking have not yet been passed, and we only really know some of the basic outlines of them.  When you consider what the courts might end up doing with the myriad of legal actions brought to them, it is a total unknown and void.  And this is not a great place to be when you are trying to craft your business plan, operations plan, staffing decisions, and your own family legacy and personal retirement plans. And it for sure does not help those of you with organizations which rely on LPTV for getting their non-profit content delivered.  So let's look at what we know, and what we do not know:

WHAT WE KNOW (OUR CERTAINTY)
1)  The Incentive Spectrum Auction legislation passed in 2012, and for the past three years it has been going through a rulemaking process.  This process will not stop until the final rules are passed, although it will have some detours possibly into the courts, before everything is final.  The rest of this rulemaking process could take all the way through 2015 to complete.  

2)  The detours into the courts could take months if not years to work out.  There is one case currently in the courts (NAB & Sinclair) and that could be ruled on this summer or fall. So far there have been legal threats from LPTV (our Coalition on numerous occasions), and now the auction-eligible sellers themselves.  So the crowd is getting larger, and we welcome all of those currently, and soon to be, affected by this legislation.  If you start to see the potential buyers (Verizon, AT&T, etc.) start to use the legal language which signals a pending legal action, then the auction process will grind to a halt.

3)   The auction legislation enshrined the then 2012 existing LPTV rules, and this is where we can say for a certainty that LPTV has the ROD, the "right of displacement".  It is easy to think of the ROD as a "spectrum hunting license" that you have earned by either being a licensed facility or having obtained a permit, before you are displaced.  Many industry leaders and experts still are using fear to say that this right does not matter since there will not be channels to displace to.  Yet none, yes none of these folks have ever produced a study or analysis to back up their claims.  They are using fear to stoke licensees into joining their groups or buying tickets to their events.  If anyone or group tells you LPTV is going to be dead, not have any channels to move to, and is toast, tell them "SHOW ME THE STUDY"!  

4)  We also know for certain that in those few cases in the large markets where remaining spectrum will be at a premium, that LPTV channel sharing, or displacing to another city of license within the DMA may need to be done.  But this is consistent with our current LPTV rules, and is not a "taking" of our spectrum.  You need to understand this.  The FCC is not going to take your license, just tell you to move at your own cost. The Coalition is fighting for the authorization for "adjacent DMA displacement moves", which in most cases could be very useful to "rim shot" LPTV, or those licensed on the edge of a DMA.  By moving into the next DMA they may be able to beam back into the DMA to find your audience.

5)  We also know that there are special interest groups which want priorities in the post auction channel repacking.  The FCC asked about this issue in the NPRM, and four different types of groups are now pushing for it:

a)  The first are major network affiliates which want to be given a retroactive Class-A status for repacking because they are already fulfilling the Class-A rules. 

b)  Another group are also major network affiliates who want to be awarded Class-A stations as a priority for repacking, but to have a short open window to qualify.  

c)  And then there are the PBS-affiliated translators which want to make sure they get to the front of the line for channels

d)  And finally the primary station affiliated translators which also want to make sure they get to the front of the repack, and say that the "service area" which is protected in the repack in more than the "contour" of their primary station.

6)  We also know that current Class-A stations which are not qualified for the auction, since they were out-of-core displacements and did not receive their new Class-A assignments before the arbitrary Feb. 2012 deadline, they also do not receive any priority in the repacking, even though they meet all of the other criteria.  It is almost a certainty these will end up in the courts also. (Hint FCC, let these few in to avoid this, LPTV does not care, that means more channels for us.)

7)  We know for sure that the ATSC Committee will be submitting an ATSC 3.0 candidate standard late this spring or early summer for the FCC to begin a rulemaking on.  And we know that they are asking only for approval of the "transport" layer, and not all of the services.

8)  We also know that without an OFDM-based interference model for post-auction repacking, that there will not be enough channels for even the displaced and moving primary stations.   (Hint FCC, run the repacking simulations for this before we challenge it)

9)  We also know that voluntary channel-sharing for LPTV will be allowed, but it sure would be great to share with a non-com primary so that they can still keep their MVPD must carry status, or a commercial primary also.  This could be huge for LPTV in that they could lease out channels to these other stations. (Hint FCC, model this and see many more auction eligible stations enter the auction.)

WHAT WE DO NOT KNOW (OUR UNCERTAINTY)
1)  We do not know if the FCC will follow through in the final LPTV rulemaking with what they have strongly hinted at in the NPRM.  These include, and are not limited to:

a)  The use of the TV Study auction software "optimization model" to find displaced LPTV stations with new channel assignments after the auction.  This would be the first time they ever have done this, and it would prevent a mass frenzy by those most powerful to file first and often to get in the front of the line for new channel assignments.

b)  We do not know if the FCC will provide LPTV with any cost benefit analysis about the auction impacts to LPTV prior to the auction, which if they do not could force some in the industry into seeking relief from the courts through a mandamus filing.

c)  We do not know, as of now, what the FCC simulations show about the number of channels in each DMA which could be left for LPTV to both displace into, and which would be displaced from.

d)  We do not if the FCC will give priorities to stations claiming that they are acting like a Class-A, or to the PBS affiliates, or to the religious broadcasters, or to any of them. Huge First Amendment fights could be started with ANY priorities given out unfairly. 

e)  Will the proposed digital-to-digital replacement translators will be governed strictly or will they be able to run amuck and grab channels willy nilly.  We suspect a tight regime, and wonder out loudly if by the adopting of ATSC 3.0, with the capability for it to deploy a single-frequency network, is there even a use for the DRT's.

f)   We do not know a lot actually, but we hopefully soon will...although there is no definitive schedule for when we know it. ( Hint FCC, get this done asap or we will be forced to petition for it)

g)  The Commissioners still have an NPRM to vote on issuing to start rulemaking about whether the TV White Space and unlicensed users can have a free TV channel in each market to use, ahead of us licensed users.  While this seems outrageous to even be considered, it is for sure a huge uncertainty to prepare for.

So, as the singer Bobby McFerrin says, 
"DON'T WORRY, BE HAPPY"

DEADLINE FOR ADVERTISING FOR INCLUSION 
IN NAB SHOW PRINT EDITION IN MARCH 25TH




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INDUSTRY NEWS

WHY IS 3ABN SELLING A CLASS-A?
Because they have 16 of them and they can!  Spectrum Investor OTA Broadcasting (aka Michael Dell) Buys Charlotte NC Class-A W21CK-D For $1.1 Million

Number of Affiliates:  138
Population Covered:  92,023,105
Percent of Total:  29.45%
 from rabbitears.info

OTA Broadcasting (bankrolled by Michael Dell of Dell Computers), one of the incentive auction spectrum investors in Class A (and full power) television stations, is now buying an auction eligible Class-A station, W21CK-D, in Charlotte, NC, from powerhouse religious broadcaster, Three Angels Broadcasting (3ABN).  The reported price is $1,100,000 cash. With an estimate pop count of 1,464,472, that works out to about $0.75 per pop, way way, did I say, way low for a Class-A auction eligible station.  There is reported an LMA in place, and who knows what if any size of a back-end deal there is.  But all we care about that the 3ABN viewers continue to get the high-quality programming from 3ABN.  Of all of the religious broadcasters, 3ABN puts out a multitude of diverse channel offerings, and to know they are getting more funding to continue to do so it great.  We also expect that after the auction payday they are in line to get (tax-free?) they will re-invest those zillions back into their other LPTV properties.

 

  

Longley Rice map from  rabbitears.info


 

3ABN owns over 100 stations, some full powers, and 16 Class-A's.  We will not even try to total up the incentive auction opening bid prices and final prices from the FCC. But little W21CK-D could be valued at over $90 million.  

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NEWS ALERT

Check out today's article from TV Technology...they are first to report this late-breaking development.  Has HUGE implications for LPTV going forward.  More on it tomorrow....
COALITION AUCTION RESEARCH PARTNER



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INDUSTRY NEWS

WHAT HAPPENS NEXT?



TV Newscheck today ran an Open Mike op-ed by Jerry Fritz, the new EVP of strategic and legal affairs for ONEMedia, one of several technology companies vying to have its next-gen transmission system adopted as the national standard by the Advanced Television Systems Committee. ONEMedia is a joint venture of Sinclair Broadcast Group and Coherent Logix

We liked EVERYTHING he had to say, including how LPTV can be part of the next-gen operating environment.  But we think he got it wrong in terms of how LPTV will survive the auction.  Read the article, and let Jerry know that the ROD rules!  He is one of the speakers for the morning session of LPTV Day, and he needs to understand the ROD before getting on that stage.  The LPTV right of displacement does not care if there are no channels left, as the licensee, you still have a hunting license to go find a channel.  And the OFDM-based ATSC 3.0 will make it a lot easier.  Do not be ruled by fear!

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INCENTIVE AUCTION FILINGS

THE TORONTO PROBLEM?
"... the Commission will not have much difficulty finding spectrum and repacking television stations located in the overwhelming majority of markets along the U.S. - Canada border. That is because, in most areas, there is sufficient space between the U.S. and Canadian cities."

FROM THE FILING....
"Stated simply, Toronto is the New York City of Canada. It is by far the nation's largest city, with nearly six million people in its metro area. It lies a mere 57 miles north of Buffalo and just 30 miles from U.S. soil. Additionally, there are numerous Canadian stations with transmitter sites in between Toronto and Buffalo, making the spectrum landscape that much more tight. Adding to the congestion, Rochester is just 95 miles from Toronto and just 66 miles from Buffalo. And Syracuse is just 73 miles from Rochester. Much of the focus on what constitutes a "congested corridor" for purposes of the repack focuses on the Eastern U.S. seaboard (Boston to D.C., encompassing numerous markets in between). But the upstate New York Markets and Toronto actually are much closer together."

2015 LPTV INDUSTRY DIRECTORY CONTENT PROVIDER

INDUSTRY NEWS:  INNOVATION


MeTV Announces 87.7 MeTV FM Classic Pop Radio Will Introduce "Me Music" Sound to Chicago
Chicago, Illinois - Weigel Broadcasting Co., the innovative creators of MeTV Memorable Entertainment Television, announce their latest broadcast venture with the debut of 87.7 MeTV FM. 

Unique among local radio stations, 87.7 MeTV FM will bring a distinctive "Me Music" sound featuring a deep playlist of classic pop and timeless tracks.  Owned by Los Angeles-based Venture Technologies Group, WRME-LP 87.7 is a low-power television station that has been operating as an FM radio station since it went on the air in 2008.

COALITION ENGINEERING COLLABORATOR


(703) 392-9090 - Manassas, VA - (202) 332-0110 - Washington, DC 
(646) 513-2997 - New York, NY

VISIT WWW.FCCINFO.COM FOR YOUR FCC LICENSE RESEARCH NEEDS

FCC WATCH

NEW
DA 15-356 Released: March 19, 2015 COMMISSION ANNOUNCES THAT PETITIONS FOR RULEMAKING MAY BE SUBMITTED ONLINE
The Federal Communications Commission today announces the availability of an online-filing module for Petitions for Rulemaking that previously could be filed only on paper. To the extent a petition for rulemaking applies to an already-open docket, it may be submitted electronically in that docket just as it would have been possible before. READ MORE (PDF)

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AMENDMENT TO THE COMMISSION'S RULES CONCERNING EFFECTIVE COMPETITION; IMPLEMENTATION OF SECTION 111 OF THE STELA REAUTHORIZATION ACT.   Seek comment on how we should improve the effective competition process.  Comments due 20 days after Federal Register publication, Replies due 30 days after Federal Register publication. 
(Dkt No. 15-53 ). Action by:  the Commission. Adopted:  03/16/2015 by NPRM.  
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FCC SEEKS NOMINATIONS FOR TRIBAL OFFICIAL TO SERVE ON THE INTERGOVERNMENTAL ADVISORY COMMITTEE.
 

(DA No.  15-312)  Nominations Due: April 10, 2015. CGB

 

Contact:  

Gregory Vadas at  (202) 418-1798email: Gregory.Vadas@fcc.gov or 

Steve Klitzman at  (202) 418-1763email: Steve.Klitzman@fcc.gov

TTY: 1-800-835-5322


The mission of the IAC is to make recommendations to the Commission on the many communications issues affecting local, state and Tribal governments that are within the jurisdiction of the Commission. These issues range from major Commission policy priorities such as implementation of expanded broadband adoption and deployment, especially in unserved and underserved rural areas and 
Tribal lands, to improved public safety communications, facilities siting, universal service reform, and public rights-of-way.


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TWO WEEK EXTENSION GRANTED TO FILE COMMENTS IN MVPD PROCEEDINGS 14-261

Promoting Innovation and Competition in the Provision of Multichannel Video Programming Distribution Services


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INCENTIVE AUCTION TASK FORCE INFO SESSION 
IN MID-WEST AND LAS VEGAS

Locations and Dates 
March 30, 2015: Cincinnati, OH 
March 31, 2015: Columbus, OH 
April 1, 2015: Cleveland, OH 
April 6, 2015: Louisville, KY 
April 7, 2015: Indianapolis, IN 
April 13-14, 2015: Las Vegas, NV (in conjunction with the NAB Show. General session to be held April 14, 12:45 pm to 2:00 pm)

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FCC announces March 26th Open Meeting Agenda which includes STELA.
Market Modification: The Commission will consider a Notice of Proposed Rulemaking to implement Section 102 of the STELA Reauthorization Act of 2014, which directs the Commission to adopt rules that permit the modification of a commercial television broadcast station's local television market for purposes of satellite carriage rights, including the promotion of consumers' access to television broadcast station signals that originate in their State of residence

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LPTV SPECTRUM RIGHTS COALITION R.S.V.P.
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                                                   CONTACT INFO 


                                                               MEMBERSHIP
Mike Gravino
Director
LPTV Spectrum Rights Coalition
(202) 604-0747
lptvcoalition@gmail.com
http://www.lptvcoalition.com