Articles Posted in Spectrum

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According to a newly-released Public Notice, the FCC has directed the U.S. Department of Treasury to pay all broadcasters who had winning bids in the recently concluded spectrum incentive auction.  The only exceptions are those broadcasters that failed to submit sufficient banking information to the Commission for payment to be made.  Since the FCC does not control the actual release of funds, it indicates it will deem the amounts as paid five business days from the release of yesterday’s Public Notice (ie, July 27).  Any broadcaster expecting to be paid that is not listed in the attachment to the Public Notice will want to promptly fix any issues with its banking information so that it too can receive payment.

The Public Notice also establishes the deadline for each category of auction winner to go off-air after getting paid. For the fewer than a dozen stations actually terminating service and going permanently dark, yesterday’s announcement is a major milestone, establishing their last day of operation as October 25, 2017.  These stations can actually cease operating as early as late August, but only if they start airing their required notices to viewers and sending their notices to MVPDs immediately.  Those needing a longer goodbye can ask for additional time to remain on air as long as they can show the FCC good cause for continuing to operate beyond the deadline.

The approximately 30 stations that elected to move to a high or low VHF channel obviously do not face a “go dark” deadline.  Instead, they will transition to their new channel much the same way as stations being involuntarily repacked.  In other words, these stations will start operations on their new channels according to the FCC’s previously-announced transition phase assignments.  They’ll just do so with lighter hearts and heavier pockets than repacked stations.

The majority of the stations listed in the Public Notice as being eligible for an auction payment indicated at the start of the auction (in their Form 177) that they had entered into or intended to enter into a channel sharing agreement for post-auction operation.  These stations have until January 23, 2018 to cease operating on their current channel and commence operations on their shared channel.  If a station’s “intention” to enter into a channel sharing agreement has not yet been realized, it will have until January 23, 2018 to get that done.  In addition, the FCC is allowing channel sharing stations to request up to two 90-day extensions (until July 2018) if they need it.

The timing of yesterday’s announcement effectively means that auction winners whose channel sharing partner was assigned to a new channel as part of the repack will have to transition twice—once to their sharing partner’s pre-transition channel, and a second time to their partner’s repacked channel.  Since the first transition phase testing period does not begin until September 14, 2018, even a channel sharee obtaining both 90-day extension periods would have to get special dispensation from the FCC or go dark for some period of time if it wants to avoid having to do a two-step transition.

While bidding in the first-ever broadcast incentive auction has been over for months now, today’s Public Notice is a major step in finally closing the book on that auction.  The U.S. Treasury will be sending auction payments out over the next few days, and once that is done, all eyes will be on the repack itself.  Given last week’s implosion of the FCC’s filing system under the strain of the initial round of repack construction permit applications and reimbursement claims, the repack promises to be a challenging endeavor for both broadcasters and the FCC.  However, for those broadcasters whose pockets are flush with auction payments, the repack might seem just a little less burdensome.

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Ever since the idea of holding an incentive auction to reclaim and repurpose broadcast spectrum for new wireless uses first surfaced, a major concern has been how to balance full power stations’ need to replicate their pre-auction signal coverage with low power television (LPTV) and TV Translator stations’ need for displacement channels in the remaining television band.  Throughout the process, the FCC has announced a number of initiatives aimed at balancing those needs.

Included among these efforts is the FCC’s creation of a new category of translator for full-power TV stations to fill in loss areas, a special filing window for LPTV, TV Translator and analog-to-digital replacement translator stations seeking displacement channels, and rules permitting LPTV and TV Translator stations to channel share, both among themselves and with full-power stations.  Until last week, stations in these secondary services have had to stand on the sidelines and wait to see how these initiatives play out.  That changed last Friday when the FCC released a detailed Public Notice outlining procedures and timelines applicable to LPTV, TV Translator, and replacement translator stations during the repack.

Most significantly, the FCC announced its intent to open a Special Displacement Window in the first quarter of 2018.  The FCC stated that it anticipates releasing a public notice in November or December of this year that will give 60 days’ warning of the opening of the Special Displacement Window, which will remain open for 30 days.

Only LPTV, TV Translator, and analog-to-digital replacement translator stations that were “operating” on April 13, 2017 will be eligible to file displacement applications in the window.  To be deemed an “operating” station, the station must have constructed its facilities and filed a license to cover application by that date.  These stations can file a displacement application in the Special Displacement Window if they are displaced by a full-power or Class A TV station being repacked in Channels 2 through 36, or if they are on a channel higher than 36 and are displaced by the flexible uses envisioned by the FCC for the portion of the broadcast band repurposed via the auction.

In the filing window, applicants will have to provide interference protection to other users in the repacked TV Band and in adjacent bands, including land mobile operations, existing LPTV, TV translator and analog-to-digital replacement translator stations, full-power and Class A TV stations that were not repacked, repacked full-power and Class A TV stations as specified in the FCC’s Closing and Reassignment Public Notice, and full-power and Class A television station facilities specified in applications filed in either of the two priority windows occurring prior to the Special Displacement Window.

Helping to balance those restrictions, displaced stations may specify as their displacement channel the pre-auction channel of a station being repacked or which relinquished its spectrum, subject to the condition that operations on the displacement channel cannot commence until the full-power or Class A TV station currently occupying the channel vacates it.  To assist stations in developing their displacement proposals, the November/December public notice announcing the Special Displacement Window will also contain updated channel availability information identifying locations and channels that displaced stations cannot propose in their displacement applications.

To avoid a “race to the courthouse” when the window opens, all applications filed in the Special Displacement Window will be deemed to have been filed on the last day of the window for purposes of determining mutual exclusivity.  In other words, an application filed on the first day of the window will have no higher processing priority than an application filed on the last day of the window.  In cases of mutual exclusivity, the parties will be given an opportunity to resolve the mutual exclusivity among themselves via engineering amendments or settlements.

If applications remain mutually exclusive after the settlement period, the FCC will give priority to any application filed by a full-power TV station for displacement of an analog-to-digital replacement translator station or for a new digital-to-digital replacement translator station.  The analog-to-digital replacement translator stations were authorized to fill in areas of a full-power station’s analog contour that were lost in the digital transition.  The digital-to-digital replacement translator stations are a new class of station intended to serve a similar role in filling in areas of a full-power TV station’s digital contour that its repacked facilities can no longer reach.

Full-power TV stations can apply for new digital-to-digital replacement translator stations beginning with the opening of the Special Displacement Window and continuing through July 13, 2021.  Whenever filed, digital-to-digital replacement translator applications will have priority over all prior new, minor change, and displacement applications filed by LPTV and TV Translator stations.  If applying this priority does not resolve mutual exclusivity among applications filed in the Special Displacement Window, the FCC will resort to conducting an auction among the applicants. Continue reading →

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To use a metaphor those headed to Vegas for the NAB Show will appreciate, two of the three wheels on the Spectrum Repack slot machine had stopped spinning, and all eyes have since been anxiously watching that third and final wheel.  The first stopped spinning on January 13, 2017 when the Reverse Auction concluded.  The second stopped on March 30, 2017 when the Assignment Phase of the Forward Auction came to an end.  The third wheel stopped this afternoon with the release of the FCC’s long-awaited Incentive Auction Closing and Channel Reassignment Public Notice.  That Public Notice formally marks the end of the Incentive Auction, and publicly reveals which stations got cherries and which stations got lemons in the auction and repack.

According to the FCC, there were 175 TV stations that sold spectrum in the auction for just over $10 Billion in total.  Of these 175, 30 are moving to a VHF channel and 133 have indicated that they will be channel sharing with a station that did not sell spectrum in the auction.  That suggests only twelve stations nationwide sold their spectrum with the intent to go dark permanently.

For those stations that did not sell spectrum in the auction, the FCC indicates that 957 of them are being involuntarily moved to new channels.  As a result, the Spectrum Repack looks like it will be every bit as complex and all-encompassing as many had feared.

In that regard, the Public Notice also locks in the deadlines broadcasters must meet for the 39-month Spectrum Repack, officially launching the rush to secure equipment and services needed by each repacked TV station to build out new transmitting facilities. The FCC had addressed in general terms many of the repack deadlines in various notices and webinars, but nearly all were geared to the release date of the Public Notice.  As a result, while we generally knew how long the FCC was allotting for various steps of the repack, they all remained moving targets until today’s release of the Public Notice.

With the Public Notice now in hand, we have assembled below the key deadlines. Continue reading →

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At the end of Stage 2 of the Spectrum Auction, I wrote about bidder fatigue and the hope that the FCC would drop its spectrum clearing target a couple of notches for Stage 3 to expedite the conclusion of a now seemingly interminable auction.  Unfortunately, the FCC held fast to its incremental approach.  As a result, the FCC attempted to clear 108 MHz in Stage 3, leading to a reverse auction that lasted 30 days and resulted in a $40.3B target for the forward auction.  That was roughly double the amount of money bid in the forward auction in Stages 1 and 2.  Also, with the Stage 2 forward auction concluding after only one round of bids, it seemed unlikely the skies would suddenly open up and start raining big-dollar forward bidders in Stage 3.

That has now proven true, as the Stage 3 forward auction commenced at 10am this morning and officially ended at 12:01pm.  Like Stage 2, it lasted only a single round of bidding.  Technically, it concluded even faster than Stage 2, which took 2 hours and 14 minutes before being declared over, a whole 13 minutes longer than today’s auction.  Having taken six years to reach this point, the fact that we are measuring entire auction stages in minutes is disappointing to say the least.

The good news?  The FCC is apparently feeling at least some urgency to move the auction along to a conclusion, announcing today that it anticipates launching the Stage 4 reverse auction on Tuesday, December 13.  Unfortunately, with the Stage 1, 2, and 3 reverse auctions taking 28 days, 30 days, and 30 days respectively, even a fast-moving Stage 4 can’t conclude the auction in 2016.

While the forward auction bid totals have dropped in every stage of the auction as the amount of spectrum being sold has dropped ($23.1B in Stage 1, $21.5B in Stage 2, and now $19.7B in Stage 3), the totals have been fairly consistent.  To declare the auction concluded, the FCC will at a minimum need forward auction payments to cover the reverse auction total, the $1.75B for repacking, and the several hundred million in auction expenses incurred.

As a result, the spectrum clearing target will likely need to drop until the total bids in the reverse auction are less than $17B.  That would allow the FCC to cover the reverse auction payments for spectrum plus the roughly $2B in repacking costs and auction-related expenses if the forward auction still brings in $19B or so.  However, since the total forward bids have dropped a bit in each stage, it’s reasonable to assume that trend will continue, meaning total reverse auction bids will need to drop significantly below $17B for the auction to finally conclude.  That’s quite a way from today’s $40+B target and, barring some surprises, makes it likely the auction will see a Stage 5 and perhaps a Stage 6, taking us far into 2017.

When the National Broadband Plan was announced by the FCC in 2010 as a way of repurposing spectrum while reducing the federal deficit, broadcasters were, for the most part, decidedly uninterested in the reverse auction.  Only after the FCC presented sky-high valuations for broadcast spectrum in the Greenhill Report did shareholders insist broadcast companies take a closer look.  It now looks like that initial disinterest was fully justified, with most broadcasters having spent more on their auction participation and forgoing deal opportunities during the “quiet period” than they can ever hope to derive from the auction itself.

So broadcasters’ first instinct regarding the Spectrum Auction may well have been the right one.  And that part about the excess auction proceeds reducing the federal budget deficit?  Turns out that’s not happening either.

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With great anticipation, the Stage 2 Forward Auction commenced at 10am this morning.  It officially ended at 12:14pm, when the FCC announced:

Bidding in the forward auction has concluded for Stage 2 without meeting the final stage rule and without meeting the conditions to trigger an extended round. The incentive auction will continue with Stage 3 at a lower clearing target.

As I wrote less than a week ago, there was never much hope that the Stage 2 Forward Auction would bring in the $57B or so needed to cover the FCC’s bidding commitments and associated costs in the Stage 2 Reverse Auction.  The Stage 1 Forward Auction concluded at a paltry $23B, and a sudden jump in bidding to nearly $60B in Stage 2 was definitely going to be a bid too far.  However, as we discussed last week, spectrum auction groupies are basically split into two camps: those who think that wireless bidders were holding back in Stage 1 to conceal their resources and bidding strategies, and those who thought Stage 1 represented the high water mark, with the total amount bid going down as the amount of spectrum being cleared dropped with each stage.  Based on this morning’s results, the latter group is growing.

Not that we should be surprised.  With the FCC starting the bidding where the bids left off in Stage 1, the main reason for bidding in Stage 2 was to correct for any refinements of bidding strategy since Stage 1.  Based on Stage 2 concluding after only one round of bidding, it appears that the wireless bidders had already refined their strategies before Stage 1 commenced, and didn’t see any reason to change their approach now.

The rapid conclusion of the Stage 2 Forward Auction does appear to have surprised the FCC a bit.  The FCC announced this morning that:

The FCC expects to release a public notice next week announcing details about the next stage, including the clearing target for Stage 3, and the time and date at which bidding in Stage 3 of the reverse auction will begin.

While this language is quite similar to the language that concluded Stage 1 (except for the addition of “expects to”), it certainly contrasts with recent statements from the FCC about its intent to accelerate the auction process, including its statement (later modified) that the Stage 2 Forward Auction would commence “on the next business day after the close of bidding in Stage 2 of the reverse auction.”

So the big question now is whether the FCC will continue to slowly reduce the clearing target (126 MHz in Stage 1, 114 MHz in Stage 2, and now 108 MHz in Stage 3?) as it previously indicated it was bound to do, or whether it can make a more significant reduction that brings the forward and reverse auction dollar figures much closer together.  While some have argued that there is no reason for the FCC to expedite the process, and that remaining on the slow and meticulous path of very incremental clearing targets converts the greatest amount of broadcast spectrum to wireless use, bidder fatigue is definitely beginning to set in.  More importantly, the sooner the auction is concluded, the sooner spectrum is freed for its newfound purpose, so the delay is not harmless.

In addition, the continued applicability of the rule on prohibited communications during the auction has put much of the TV broadcast industry into a cryogenic state, particularly with regard to station sales.  Dragging the process out any longer than necessary causes real economic harm, and the impact only grows as station owners recognize there will be no windfall and want to move quickly to sell stations they otherwise would have sold several years ago.

With forward auctions now measured in hours, it is clear that it is the reverse auctions where significant time is being lost in concluding the Incentive Auction.  The Stage 1 Reverse Auction lasted 28 days, and the Stage 2 Reverse Auction lasted 30 days.  Unlike the Forward Auction, which went from 14 days to half a day, the Stage 2 Reverse Auction still consumed significant time, even with a reduced spectrum clearing target.  More rapidly reducing the spectrum clearing target is the most efficient way of moving new spectrum to wireless use, commencing the broadcast repack, and putting broadcasters back on the road to normalcy.

After six years of the National Broadband Plan and its key component, the Spectrum Incentive Auction, it’s getting hard for broadcasters to remember what normal feels like.

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The FCC has announced the conclusion of the Stage 2 Reverse Auction, moving the spotlight from the broadcasters willing to relinquish 114 MHz of their spectrum to the bidders in the forward auction hoping to buy it.  Unfortunately for those wishing to see a speedy conclusion to the Spectrum Incentive Auction, the FCC set the cumulative buying price for 114 MHz of spectrum at $54,586,032,836, plus the cost of the $1.75B repacking fund and the cost of conducting the auction itself.

Given that forward auction bidders in Stage 1 stopped bidding at $23 billion, it seems unlikely that they will show up for Stage 2 so rejuvenated as to bid two and a half times that amount now.  If they don’t, then the auction will move to Stage 3 and likely into 2017 as well.  Still, $55B is significantly less than the $88B the FCC was targeting in the Stage 1 Forward Auction, confirming the FCC’s earlier assertion that the additional broadcast spectrum needed to reach the original clearing target of 126 MHz is quite expensive.  While the likelihood of Stage 2 concluding the auction appears small, a 40% drop in the clearing cost, while clearing over 90% of the spectrum originally targeted by the FCC, definitely illuminates the path to where supply will meet demand.  Unfortunately for many broadcasters, that point on the path is not looking like one that will bring stations anywhere close to the prices initially presented to entice them into the auction in the first place.

So while the Stage 2 Forward Auction might be anticlimactic for broadcasters looking for a highly profitable end to what seems a very long trek from the announcement of the National Broadband Plan over six and a half years ago, it will still be informative.  In particular, it may settle the debate between those who believe the Stage 1 Forward Auction set the high water mark for how much the wireless industry would bring to the table for the absolute maximum amount of spectrum, and those who believe wireless bidders were holding back in Stage 1 to conceal their motivations and bidding strategies, nearly certain the auction would proceed to further stages.  If the Stage 2 Forward Auction brings in less than Stage 1’s $23.1B, that trend will not be promising for a quick or profitable end to the auction for those broadcasters still willing to sell spectrum.

Of course, that could be because the wireless bidders are still confident more auction stages are coming, and will continue to hold their ultimate bids in reserve for those later stages.  So it goes with history’s most complicated auction, where the more you know, the more you are left to fathom what it means.

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Perhaps indicating that the rapid conclusion of Stage 1 of the Incentive Auction was not a surprise to the FCC, the Commission moved with lightning speed to announce that Stage 2 of the auction will commence on September 13 with a spectrum clearing target of 114 MHz.  In a Public Notice released less than 24 hours after Stage 1 concluded, the FCC effectively indicated that it was staying the course, and reducing the spectrum clearing target by only 12 MHz for the next stage.  In light of the lackluster results of Stage 1 that we discussed yesterday, many wondered if the FCC would, or legally could, make a more significant adjustment in the spectrum clearing target to expedite the conclusion of the auction.  It now looks like auction participants will indeed be in for a long slow march to the point where spectrum supply meets demand.

However, the quick release of today’s Public Notice at least minimizes the administrative delay in the process.  In fact, the Public Notice also announced that “[b]idding in the clock phase of Stage 2 of the forward auction will begin on the next business day after the close of bidding in Stage 2 of the reverse auction.”  That will eliminate the downtime between the reverse auction and forward auction that slowed Stage 1, and will require forward auction participants to be extremely alert for the end of the reverse auction, lest they miss their opportunity to bid in the forward auction.

Also indicating that the FCC was well-prepared for the move to Stage 2, the Public Notice announced that the FCC will make an online tutorial available for Stage 2 participants tomorrow, September 1.  The tutorial will be found on the Auction 1001 website in the “Education” section, and the FCC is encouraging all broadcasters still eligible to participate in the reverse auction to review the tutorial.  Stations that exited the auction in Stage 1, whether due to withdrawing from the bid process or because the station was not needed in the auction, will not be able to return for Stage 2.  In addition, stations that did not exit in Stage 1, but which are not needed in Stage 2 due to the lower spectrum clearing target, will not be allowed to bid in Stage 2.  However, regardless of whether they are eligible to participate in Stage 2, all full power and Class A TV stations remain subject to the rule against discussing bids or bidding strategies.  Indeed, the Public Notice indicated that “communicating that a party ‘is not bidding’ in or has ‘exited’ the reverse auction could constitute an apparent violation that needs to be reported.”

Given that the auction process has begun to drag out, and may drag out further, the FCC also reminded participants to keep their auction applications (Form 177 for broadcasters, Form 175 for forward auction bidders) up to date, filing any necessary amendments to those applications within five days of a “significant occurrence”.

After being told for the last several years that mobile broadband was a more valuable use of their spectrum, broadcasters might be disappointed in the economic results of Stage 1, but were not truly surprised.  They have been arguing for years that their point-to-multipoint business model is a far more efficient use of spectrum, and that if spectrum is worth less in their hands than in the hands of cell phone companies, it is only because broadcast spectrum is burdened by excessive regulation—regulation that the FCC ironically reaffirmed as essential to the public interest less than a week ago in its Quadrennial Ownership Review.  While the auction may not turn out to be the economic windfall broadcasters had been promised, there may still be some value to it, if only to prove that broadcast spectrum is already being put to its “highest and best” use.

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You can almost hear Agent Maxwell Smart’s trademark “Missed it by that much!”  The FCC quietly announced just after C.O.B. today that “[b]idding in the forward auction has concluded for Stage 1 without meeting the final stage rule and without meeting the conditions to trigger an extended round. The incentive auction will continue with Stage 2 at a lower clearing target.”

When the FCC wrote in its 2014 Spectrum Auction Report and Order that “[w]e are designing the forward auction for speed, so that reverse auction participants need not await its outcome for week or months,” it wasn’t kidding.  The forward auction took just two weeks to conclude, but only because it yielded a highly disappointing $23.1 billion (netting $22.5 billion after auction discounts), a mere quarter of the $88.4 billion the FCC was targeting.  The result is surely disappointing for those intent upon repurposing a big chunk of TV broadcast spectrum for what we were told was an insatiable appetite for mobile broadband spectrum, but even more so for broadcasters that had been told by the FCC that their spectrum was far more valuable for purposes other than broadcasting.

So what’s next? The FCC’s Public Reporting System states that a public notice is on the way, which will announce “details about the next stage, including the clearing target for Stage 2, and the time and date at which bidding in Stage 2 of the reverse auction will begin.”  Given the large mismatch between the amount of spectrum sought by the FCC in Stage 1, and the rather paltry demand revealed by Stage 1, the FCC will have some thinking to do about how many stages of the auction it is willing to endure to achieve equilibrium between spectrum supply and demand.

In the meantime, broadcasters remain subject to the FCC’s rules prohibiting certain communications (a/k/a the “quiet period”) until the FCC releases a public notice announcing the successful completion of the auction.  It looks like that may be a while.

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In a long-anticipated move towards commencement of the spectrum auction, the FCC today released a Public Notice and related Appendix providing an initial clearing target of 126 Megahertz of spectrum in what is currently the broadcast television band. The 126 MHz figure represents the targeted amount of spectrum to be repurposed from broadcast television to mobile wireless uses.  The FCC also announced that bidding in the reverse auction will commence on May 31, 2016.

The 126 MHz target is the highest the FCC was contemplating, and indicates that a large number of television stations have chosen to participate in the auction.  By setting a high clearing target, the FCC is maximizing the amount of broadcast spectrum purchased, but increasing the risk that if there is insufficient interest in the forward auction for this amount of spectrum (at the prices the FCC needs to pay selling broadcasters and cover other costs), the auction may have to be redone with a lower clearing target.

In the forward auction, the FCC will offer 10 paired blocks of spectrum, each block comprised of 10 MHz, to mobile wireless bidders.  The remaining 26 MHz of spectrum to be cleared will be used for guard band and duplex gap purposes; i.e., to protect adjacent users from interference.  If the auction is completed with the 126 MHz clearing target, the post-auction television broadcast band will consist of VHF channels 2-13 and UHF channels 14-29.  The process of repacking stations into channels 2-29 would commence following completion of the auction, and is estimated by the FCC to take approximately three years, although many have questioned whether that is sufficient time for the repack.

With the release of the clearing target information, the FCC has locked in all of the following dates for auction-related events:

May 4, 2016, noon:  Date by which each television broadcast licensee that made an initial commitment in the reverse auction must receive a third confidential status letter from the FCC.  That letter will inform the applicant whether its station(s) will be qualified to participate in the reverse auction.  Applicants who have not received this letter by noon (Eastern Time) on May 4 should contact the FCC Auctions Hotline at (717)338-2868.

May 5, 2016: FCC Incentive Auction Reverse Auction Bidding System User Guide available on Auctions webpage.

May 18, 2016:  Online Bidding Tutorial available on Auctions webpage.

May 23, 2016, 10 a.m.:  Bidding Preview Period begins.

May 24, 2016, 10 a.m.:  Clock Phase Workshop.

May 24, 2016, 6 p.m.:  Bidding Review Period ends.

May 25, 2016, 10 a.m.:  Mock Auction Bidding Round 1.  Additional Mock Auction Rounds occur throughout May 25 and May 26.

May 31, 2016:  Bidding in the reverse auction commences for qualified applicants, with a single round of bidding on May 31 and June 1, and two rounds per day starting on June 2.

While it is unclear how many rounds of bidding will be required before the auction closes, or whether the 126 MHz target might lead to a repeat of the reverse auction, today’s news brings a palpable sense that the auction has really begun.  How successful the auction will be for broadcasters, mobile wireless companies, and the FCC will be a developing story.  Stay tuned for more updates.

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Pillsbury’s communications lawyers have published FCC Enforcement Monitor monthly since 1999 to inform our clients of notable FCC enforcement actions against FCC license holders and others. This month’s issue includes:

  • Noncommercial FM Broadcaster Fined $10,000 for Public Inspection File Violations
  • TV Licensee Faces $20,000 Fine for Untimely Filing of 16 Children’s TV Programming Reports
  • Man Agrees to $2,360 Fine for Using GPS Jamming Device at Newark Airport

FCC Refuses to Take Pity on “Mom and Pop” FM Public Broadcaster With Public Inspection File Violations

The FCC’s Media Bureau denied a New York noncommercial FM licensee’s Petition for Reconsideration of a March 2015 Forfeiture Order, affirming a $10,000 fine against the licensee for failing to place 13 Quarterly Issues/Programs Lists in the station’s public inspection file.

Section 73.3527 of the FCC’s Rules requires noncommercial educational licensees to maintain a public inspection file containing specific types of information related to station operations. Among the materials required for inclusion in the file are the station’s Quarterly Issues/Programs Lists, which must be retained until final Commission action on the station’s next license renewal application. Issues/Program Lists detail programs that have provided the station’s most significant treatment of community issues during the preceding quarter.

In February 2014, the licensee filed an application for renewal of the station’s license, which it had acquired from a university in 2010 after the university decided to defund the station. In the application, the licensee admitted that the station’s public inspection file was missing 13 Quarterly Issues/Programs Lists, commencing with the licensee’s acquisition of the station in 2010.

In March 2015, the FCC issued a Notice of Apparent Liability for Forfeiture in the amount of $10,000, the base fine for a public inspection file violation. The licensee filed a Petition for Reconsideration, urging the FCC to withdraw the fine. While the licensee did not dispute the violations, it explained that it had a history of compliance with the FCC’s rules, and that it was the public radio equivalent of a “mom-and-pop-operation.” It further explained that it only had several employees and volunteers, including an unpaid manager, and was under constant financial strain.

In response, the FCC contacted the station on three separate occasions in 2015 to request that the licensee provide documentation supporting its claim of financial hardship. After receiving no response to these requests, the FCC chose not to reduce the fine based on financial hardship when it issued the resulting Forfeiture Order. In addition, the FCC chose not to reduce the fine based on the station’s history of compliance with the rules because of the “extensive” nature of the violations. Ultimately, however, the FCC stated that it would grant the license renewal application upon the conclusion of the forfeiture proceeding if “there are no issues other than the violations discussed here that would preclude grant of the application.”

Sour Sixteen: Failing to Timely File 16 Children’s TV Programming Reports Nets Proposed $20,000 Fine

A Texas TV licensee is facing a $20,000 fine for failing to timely file sixteen Children’s Television Programming Reports.

Section 73.3526 of the FCC’s Rules requires each commercial broadcast licensee to maintain a public inspection file containing specific information related to station operations. Subsection 73.3526(e)(11)(iii) requires a commercial licensee to prepare and place in its public inspection file a Children’s Television Programming Report for each calendar quarter. The report sets forth the efforts the station made during that quarter and has planned for the next quarter to serve the educational and informational needs of children. Licensees are required to file the reports with the FCC and place them in their public files by the tenth day of the month following the quarter. Continue reading →