For those who don’t know, “spectrum” is techno-speak for the airwaves used to transmit TV shows and cell phone calls among other things. And it’s at the center of what is being called one of the biggest telecom lobbying battles of the year. National Association Of Broadcasters chief Gordon Smith told station owners last week at their annual convention in Las Vegas that the trade group is “in full battle mode.” If he means it, then it would be a big threat to the Obama administration’s wireless broadband plan. The broadcasters’ trade group would rather eat glass than give up the medium they’ve used to transmit shows since the 1950s, when Milton Berle ruled primetime.
The NAB’s biggest concern is that the government might seize spectrum without a broadcaster’s consent. CBS chief Les Moonves echoed that message when he said last week that, as long as it “remains voluntary, we’re fine with that. Because we’re not going to volunteer.”
True, FCC Chairman Julius Genachowski promises that “no broadcaster will be forced to offer up spectrum for auction.” Those who do, he adds, “will know exactly what the deal is before relinquishing any rights.” And that’s the key. Will this turn into a titanic battle that will shape the future of media and the digital economy? I’m of the opinion that there isn’t thatbig a divide between the FCC and NAB’s positions. And I think all the posturing and threats will end as soon as Genachowski and the NAB can agree on how much stations owners should receive for giving up their claim on what used to be thought of as the public’s property.
Here’s what you need to know now:
The Obama administration wants TV stations to give up some of their spectrum so it can be redeployed to offer Internet services to smartphones, iPads, and other mobile devices. The White House considers broadband to be the new national medium. But it sees a crisis coming with too littlespectrum available to accommodate the millions who want to use portable devices to stream videos, data, entertainment and everything else. So the administration wants to free up 300 megahertz over the next five years, and 500 mhz over the next decade, for wireless Internet. (A smartphone typically uses 24 times more spectrum than a conventional cell phone uses, while a tablet computer uses 122 times more spectrum.) Without more wireless broadband capacity, there could have a perfect storm of dropped calls, dead zones, slow speeds, and high prices. To help do that, Genachowski is offering a deal to TV stations ranging from big-city network O&Os to tiny independents in places like Peoria. It goes like this: voluntarily give up your spectrum, and the government will share the proceeds when it auctions the airwaves to a wireless broadband company.
Sounds fair? Not to the National Association Of Broadcasters. The airwaves that the FCC wants TV stations to give up are worth at least $33 billion — but that’s according to a study in February that was supported by two lobbying groups that have a lot at stake in wireless broadband: the Consumer Electronics Association and the cellular phone industry’s CTIA. The NAB says the estimate is bogus because it makes too many big assumptions. Yet there’s no doubt that there’s a lot of money to be had.
True, Genachowski hasn’t hesitated to compromise in other controversies. But he told the NAB gathering last week that “the costs now of delaying voluntary incentive auctions would be severe.” The FCC has the legal authority to simply take broadcast spectrum if it decided that it would serve the public interest. But it needs NAB help to win congressional approval to offer stations a deal. The law requires all cash from spectrum auctions to go to the U.S. Treasury.
People in the know tell me too many TV stations want the cash they could collect by going along with Genachowski’s plan. The big question for them is how big a cut they’ll receive from an auction. The local TV business used to be a cash cow in the good old days before the latest economic crisis, and the outlook could grow bleaker as cable channels and digital media outlets including Netflix lure viewers away from broadcasters’ shows. Advertisers spent just $15.6 billion on local TV last year, down from $18.7 billion in 2006, according to the Television Bureau of Advertising. Put another way, a typical TV station likely will receive $132.77 in advertising for each household it reaches this year, down from $159.53 in 2008, research firm SNL Kagan estimates.
Station owners themselves talk about how difficult broadcasting has become when they insist that cable operators pay for the right to retransmit their programs — even though consumers with antennas can receive them for free. Those fights illustrate how little difference there is between a broadcast station and a cable channel at a time when more than 85% of all homes receive their TV signals via cable or satellite. That provides the groundwork for a compromise. Major broadcast network O&Os and affiliates probably will continue to broadcast over the air. But several stations that are unaffiliated with a major network, including those offering religious and home shopping shows, will take the money. Some will survive on cable. Some will transmit separate signals on the spectrum provided to a single station. And some will just fold.


Eff you Les.
It’s not your spectrum, it’s the people’s spectrum.
Exactly.
It is the broadcasters spectrum, they developed it, they marketed it they make use of it and is all free to the tv watching population. You want to give the Spectrum to the cell companies that charge you by the minute, and now with the smartphones they are charging by the megabite used.
So you rather pay than get it for free.
It was the public’s spectrum until the government sold it to the broadcasters.It’s now private.
The real problem is the feds will not allow broadcasters to sell spectrum among themselves. The feds want to control the spectrum market so whenever anything is sold the feds get a cut – a very large cut. Can you say “more taxes”; “hidden taxes”. It has nothing to do with anything except the government attempting to extort more money from the public/broadcasters. It’s just extortion.
You can thank Ronald Reagan for selling that spectrum to the broadcasters. They paid for it, they now own it. Any deals should be between station owners and cell companies.
Tell you what.
We let you keep the spectrum but re-institute Fin-Syn rules.
yes!
Double yes!
Who will blink first?
That’s a no brainer. Obama. A bad habit has become a tick.
Healthcare for the people? Blink.
Bailout for the banks? Blink.
Tax the corporations? Blink.
Net Neutrality? Blink.
Rebalance the Spectrum? Blinkity, blink.. blink.. blink.
The FCC should just take it. TV over the air is so 20th century. Networks need a kick in the ass to fully embrace the internet, and this is the perfect opportunity to do just that.
“Hate ta tell ya”– but the Airwaves do belong to the public and the free ride bill is coming due.
You Think?
Since the digital switch barely two years ago, some promising new standard-def channels have started to show up. IonTV, ThisTV, AntennaTV – stations that offer movies and old TV shows, free and over the air. There are certainly more channels/netwoks to come, probably with some locally generated content, too. Although some broadcasters may be currently wasting their bandwidth, I’d hate to see the future possibilities for new locally contolled TV channels sacrificed just for more bloated electronic device traffic to personal devices.
There are still a lot of people in this country that can’t afford cable. Pretty soon there will be no free sports or news on the dial, creating an even bigger void between the “haves” and the “have notes.”
Additionally, when all your content is living on a “cloud,” and all cable is “a la cate,” you’ll be happy to have some simple linear broadcast spectrum that allows your entertainment to not become “work” as you sift through “the cloud” looking for your fav content….
I love digital, but let’s be careful before we see ourselves paying for every piece of content with no choice.
SB
No way, networks should’t give up & surrender to internet companies.
Services like local news should remain free to those who do not want to be a home of 300+ channels. TV is still dominant and like the NAB president said – why should people in Kentucky give up their free signal so some NYC urbanite can get fast results on their iPad to find the nearest spa?
Most people who cut their cable, go for big broadcast programs and use the Free OTA service and use Netflix, etc to compliment the free tv.
Spectrum in Kentucky would have to be used in Kentucky. You can’t load it on a truck and move it. Broadcasters were given the spectrum for free. While I agree they have paid to install infrastructure and should therefore be compensated, that compensation should be for capital infrastructure and (declining) earnings potential, not the spectrum itself which belongs to all of us. There is however an alternative. The FCC could license new uses for the spectrum and offer broadcasters the opportunity to provide new services such as streaming data services OR lose it.
The FCC needs to include sub-channels and LD stations into the “must-carry” rules for Cable, Telecoms and DBS services.
It’s not the broadcasters’ spectrum to begin with and it’s even more appalling that they try to charge operators for those channels that people receive for free over the air. If they want to be treated like a cable network then make the investments that other Networks make and that the operator makes to build out the broadband infrastructure instead of clinging to antequated rules that govern broadcasting. People complain about the price of cable, well, those retrans fees are a big reason why those rates continue to rise higher and higher each year. Something’s gotta give because it’s the customers that ultimately suffer the consequences.
It’s a sad day when TV has become a thing only rich people can afford. I can’t afford cable or a dish. I guess that’s my hard luck. Cell phones for rich people and let the poor people have nothing. This is the good old USA. Now Internet providers are capping downloads what good will it do, once all the spectrum is sold off, the TV stations are off the air and no one can afford to download the shows due to the extra money cost for going over the cap. Digital TV is a joke. Every other station needs MORE spectrum for translator stations because they don’t come close to replicating the analog signals. It’s a mess.
Man, that would be great if TV died. It is an immense waste of time.
The FCC is a captive agency — owned by AT&T and Verizon. Those companies are out to make sure that nothing is free — you will pay for access to all media. If you can’t afford the toll, tough. They have put their money behind the scheme to destroy free over-the-air broadcasting. The mandatory switch to digital TV was supposed to kill off economically weak stations, but so far it has only weakened them. Now the FCC wants them to “voluntarily” commit suicide.
Call me old fashioned, or state that I am being redundant; however, I would like to know how many cable signals and DBS antennas were still intact during and following the recent tornados in the Carolinas? We should not forget that broadcast still provides critical emergency information and yes, some state that radio can fill that void, but the live radar, weather graphics, etc simply cannot be adequately described over the aural medium in a timely fashion. Moving stations to VHF will kill the mobile applications without question. Single point to multipoint distribution on a hand held, cell phone, and automobile is an efficient use of spectrum. Don’t underestimate the negative aspects of land grab that is driven by greed, poor fiscal management, but NOT public service as it should be
The two industries can coexist nicely, actually. The FCC is currently looking to take 120 MHz from broadcast TV. The most desireable frequencies for portable devices, smartphones, aircards and such is high UHF (the higher the frequency, the smaller the antenna needs to be). 120 MHz of TV spectrum is all the UHF channels remaining from 30 to 50. The television broadcast industry can survive quite nicely without “movie channel 46″ and “shipping channel 38″ and “old tv show channel 40.”
In almost every market across the country, save perhaps the top five, all meaningful (meaning “watched”) TV channels can easily be moved in to the remaining spectrum between channel 6 and channel 30. When you factor in the possibility of channel sharing and such and the average market could even see more OTA services in the future.
So, can’t we all just get along?
What are you soft or just on the side of the telecoms?
There is no way the broadcast industry can survive nationwide being limited to 7 VHF frequencies (6-13),and 9 UHF Frequencies (21-30)
This puts us back to where things were in the late 1940′s and the need for a building freeze on new stations due to over-lap issues. There were 4 networks then,and in some markets,They had to clear programing on different stations,or shared stations. Now we have twice that.
Who the hell are you to say what is “meaningful” and what you think is watched – The small independents,Religious Broadcasters and least-time enthusiastic all have a right to be on the air.
If anything ,movie all TV stations UHF and let the FCC take the rest of the VHF spectrum.
Nice to see the discussion starting. No one at the commission has admitted that probably 10% of the US public does not have a cell phone or internet & does not care to.
Also they talk about the new jobs created by the added wireless spectrum. This is BS , when AT &T & Verizon lock up the spectrum They will warehouse it for as long as possible. remember that all the old video wireless MMDS systems were snapped by cell firms & these former wireless TV systems are only on air once a year to preserve the license integrity. These are warehoused also.
Any new jobs will be commissioned sales reps at xmas pop up stores.
By doing this they keep out competitors that could get traction in the marketplace and take away their oligopoly.. It’s basic supply & demand.
What the commission needs to do is not rush , so what if some kid downloading his sports has to wait a extra minute , so be it.
We need seasoned & reasoned spectrum policy that looks way over the horizon & sets us up well for the LONG term view etc.
The NAB needs to keep this in meetings till the government is changed from veiled social policy engineers.
The marketplace should not dominate the time table, scientists, demographers, economists & real world operators of both camps. If we rush we get mush , pure & simple.
I don’t have a cell phone – and I know where every payphone is
Great… Lets give more power to CORPORATIONS!!! I have to PAY PAY PAY, up the ying yang for cable & internet. Then the corporations who own the stations and cable networks… limit the TRUTH in the Media… it’s all A HUGH F-ING JOKE !! Lets make the INTERNET FREE for al Citizens!!!
Those of you who think that free broadcast TV is just 20th Century haven’t watched free broadcast TV since it went digital. I get 25 English language channels including ABC, NBC, CBS, FOX, CW, My Network, and PBS in HD. Better HD than the people who subscribe to cable or satellite get. Also get, Create, ThisTV, TheCoolTV, AntennaTV, and MegaHertz Worldview in SD. Stop being taken advantage of by the multichannel video industry and get yourself an antenna. Plus, TV white space is more valuable for use by local WISPs than being wasted on the major wireless companies. Do we really want all of our wireless spectrum to be controlled by 4 companies. That is what we’re headed for if the Obama plan goes through. Wake up people!!! If you’re for this plan you’re being duped!
@Hacky: Eff you, too. Unless you’ve got the money to do something with the “people’s airwaves”, shut up. Local news is a helluva lot more important that some idiot playing games on an iPad. Besides, those of us who actually know anything about the business (unlike Hacky) know that there’s no real spectrum crisis. It’s being manufactured by the telcos, because they know that mobile DTV is coming, and unless they stop it now, it will seriously cut into their bloated profits.
Something the FCC fails to acknowledge: broadcasting is still the most efficient use of spectrum. Unlike cell technology, which is one to one, broadcasting is one to many (infinity, in fact). Remember that during the next disaster when everyone’s cell technology will clog and fail.
And don’t be fooled by this spectrum “shortage.” It’s a lie.
Why is everyone so eager to see telecoms get more spectrum? The way wireless providers have treated their customers, the last thing I would expect is for people to urge that they dominate even MORE of the available spectrum.
I say let the telecoms invest in R&D and find ways to more efficiently exploit the spectrum they already have. More densely packed wireless cells will accomodate more users far better than new bands requiring new equipment on both provider and consumer ends. I smell another boondoggle.
Granted, broadcasters have long ago stopped acting like “public trustees” of the people’s airways… but how can selling outright to private enterprise be considered a better use of a “public resource”?
Lets get the facts straight. Far more than 15% (or 10% or whatever low % number gets quoted) of viewers do rely on over-the-air reception. The majority of those viewing local stations on cable or DBS rely on over-the-air reception. That is because most of the DBS and cable headends receive the local stations over-the-air. Why is this? Broadcasting (point to multi-point) is still the most efficient method to get television to the mass audience whether the last mile is cable or DBS or over-the-air directly. This fact is conveniently left out of discussions of who all relies on over-the-air reception. Further with digital television over-the-air reception is usually better than is available on cable or DBS and it is free. TV antenna manufacturers (like Wineguard) are reporting record sales as viewers discover the benefits of over-the-air reception.
I can’t wait to see the cell networks crumble when their subscribers try to tune into the same content at the same time. With broadcast this is not an issue. Remember, broadcasting was wireless before wireless was cool.
This is wrong. The Federal Government needs to keep their hands and wallets out of the Entertainment and Broadcasting industries period. It seems that as of late the Obama admin has been trying to get a cut of every financial opportunity out there. I agree with “andy” and “Marklaca”.
So the bottomeline is, that if Corporations give in to Obama’s proposed plan then public viewers and common consumers would be subject to government owned airwaves? Sounds a little to much like George Orwell’s 1984 and that wasn’t a nice world.
“Remember, broadcasting was wireless before wireless was cool.”
Yup. When this was the only economically viable way to deliver video to the masses.
Then the very profitable broadcast oligopolies, operating in spectrum LOANED to them virtually for free, faced the inevitable – competition.
Broadcasters lost interest in FOTA delivery when the masses moved to video subscription services. Now suddenly they have discovered that it may be possible to deliver bits to mobile devices…
What a concept!
Along the way the government screwed up and allowed broadcast license owners to create a commercial market for the TV spectrum, with stations selling for tens of millions – most station owners carried (and some still carry) huge amounts of “goodwill” on their books, representing the commercial value for the spectrum that the original licensees were granted at no cost from the government.
And then the TV industry used its political clout to get the politicians to pass laws allowing them to demand compensation for the signals that they broadcast in the free in clear – the original Faustian bargain they agreed to for the free use of a valuable public resource.
Ask ANY broadcaster to make a simple choice:
Retain your spectrum and use it exclusively to reach potential viewers (sorry, no cable carriage, no satellite carriage, no retansmission consent payments);
Cash out while you can…
That being said, reclaiming spectrum and auctioning it to the highest bidder is not in the public’s interest either – this is just indirect taxation. It’s time to look to the spectrum as the public utility that it is. Let’s figure out how to create a marketplace where every spectrum user pays for the privilege of delivering “and receiving” bits, and the best economic uses rise to the top as they should in a competitive marketplace.
The TV broadcasters are holding out to get 100% of the windfall from the shift to mobile broadband internet uses of their spectrum. All this talk about broadcast vs. internet is largely a smokescreen for this negotiating ploy. Broadcasters are moving as fast as they can, without being too blatant, in transitioning to internet services. In other words, they are trying to become what they purport to criticize. Their acquisition of geographic area licensing (vs. site-based licensing) and mobile TV rights in recent years–both acquired below the public radar and without public compensation–is just the tip of the iceberg of this strategy. From the broadcasters’ perspective, too, every day they hold out the demand for spectrum increases and with that their potential windfall.
Lieberman has basically gotten it right. But the extra details matter, and the broadcasters aren’t going to volunteer them. For example, when Les Moonves says he’s not going to participate in voluntary auctions, he’s only telling you half of the story. The other half is that he wants to keep his cake and eat it, too; that is, capture the entire windfall from broadcasters’ abandoning broadcasting in the name of preserving it.
–J.H. Snider, author of the book Speak Softly and Carry a Big Stick: How Local TV Broadcasters Exert Political Power and the website SpectrumBS.info.
No support from me on this. Unless you’re in a big metro area — and I’m not — you can forget about any benefit. You’ll be worse shape than before. Take digital TV. What did we gain outside the metro areas? Nothing. What did we lose? Television service during weather emergencies because digital TV is line of sight and isn’t strong enough (digital is either beautiful or not there). The only option is satellite (no hard-wired cable available), and that vanishes with heavy cloud cover. I only hope I’ll hear the tornado early enough, because I’m hosed if I depend on TV. We were sold a bill of goods on digital TV. I’m not buying another so Verizon can make more money.