Auction delay allows time to think hard about selling spectrum

Selling or keeping spectrum is perhaps the most consequential decision that the current generation of public television station executives and their boards will ever make about the future of public media, not just in their communities but the nation as well. The FCC chairman’s postponement of the spectrum auction until at least 2016 is an opportunity for greater scrutiny of that weighty decision. Pitches from speculators and their FCC allies have focused on the one-time financial windfall to local licensees from selling noncommercial spectrum. However, balanced deliberation requires examining some key issues. Here’s my own short list:

Know when to hold ’em: Next-generation broadcasting technology will open up important new revenue streams for public and commercial stations.

FCC dismissal of indecency complaints clears way for renewal of pubcasters’ licenses

Pubcasters Louisiana Public Broadcasting, Twin Cities Public Television and KCOS-TV in El Paso, Texas, were among the almost 700 broadcasters whose licenses were renewed en masse earlier this month, after the FCC quietly cleared many stations nationwide of indecency charges. The renewals had been on hold due to allegations that some of their programming may have violated FCC regulations barring broadcasters from airing indecent material between the hours of 6 a.m. and 10 p.m. The complaints were thrown out as part of an agency effort to reduce the backlog of applications to be processed. The complaint against LPB was apparently over an episode of Doc Martin, according to LPB President Beth Courtney. “You’re kidding me” was Courtney’s reaction when she learned of the complaint’s target, she said. “There was nothing that I saw under any guideline that would be a problem,” Courtney said, adding that the agency’s rejection of the complaint “was the appropriate response.”

The complaint pending against Twin Cities was apparently over “blurred nudity” in an episode of Globe Trekker, according to station spokesperson Elle Krause-Lyons.

Public radio organizations weigh in on FCC public file proposal

A proposal to require noncommercial radio stations to disclose program funders and share other public file records online has prompted widely varying reactions among public and religious broadcasters. In filings with the FCC, Native Public Media, an association representing tribal media organizations, warned that the change would be too burdensome and could lead to the demise of some of its radio stations. American Public Media Group — the largest owner of public radio stations in the U.S. — welcomed greater standards of transparency. Meanwhile, the National Federation of Community Broadcasters staked out a middle ground, proposing an exemption for stations with small staffs. Another major player among noncommercial radio broadcasters, Educational Media Foundation, objected to online disclosure of its stations’ program donors, as did Native Public Media.

FCC report aims to play up payout from spectrum auction

An FCC-sponsored report projecting huge potential paydays for television broadcasters in next year’s spectrum auctions could prompt public TV licensees to reconsider decisions about participating in the complex proceeding. A full-power station in Los Angeles could fetch up to $570 million by giving up its assigned channel, while a similar property in New York might generate up to $490 million, according to a report by the investment banking firm Greenhill & Co. Issued Oct. 1 to spur interest in the voluntary proceeding, the report broadens the pool of prospective participants by projecting jaw-dropping values for TV channels outside of the top 30 markets. Full-power stations in Palm Springs, Calif., could bring to $180 million in the auction, for example, while a station in Providence, R.I., may be worth as much as $160 million, the report said.

In maintaining towers, stations face higher costs, lack of space

If any part of the broadcast plant ever merited the label “necessary evil,” a top nominee would be the tower. Expensive to maintain, fraught with potential hazards, bound by an ever-growing web of regulations, unloved by neighbors and often located inconveniently far away, a pubcaster’s tower still serves as the essential link between its program service and its audience. In the early years of public TV and radio — before streaming and podcasting and cable and over-the-top video delivery — pubcasters and their audiences depended completely on the reach of the signals their towers could deliver. When broadcasting was a new and developing communications medium, those towers were much easier to build. As long as they weren’t in an airport flight path, the NIMBY factor was rarely a concern as public TV and FM stations spread across the country from the 1950s into the 1970s.

Public TV organizations ask FCC to protect noncoms when repacking spectrum

Three national public broadcasting organizations are asking the FCC to change its spectrum auction rules to ensure that channel repacking leaves no community without noncommercial television. The Association for Public Television Stations, PBS and CPB are concerned that repacking, or the channel shifting that will occur after the auction, could create such “white spaces.” Public television’s mission includes universal coverage, providing every American household with access to free educational television content. In a Sept. 15 petition, the organizations asked the FCC to “reconsider and revise” its auction rules based on the precedence that the agency has long recognized noncom TV spectrum as protected and distinct from commercial. The spectrum auction rules make no distinction between commercial and public spectrum.

Private equity gobbling up public TV stations: what does the public get?

Public stations in Connecticut and San Mateo may be at the leading edge of a mass sell-off of public media assets in next year’s FCC spectrum auction. These stations have entered into agreements with LocusPoint Networks, a subsidiary of the private equity firm Blackstone Group, whereby LocusPoint shoulders the stations’ operating costs until the auction and then takes a significant share of the auction revenue after the station has sold its spectrum to wireless bidders. These deals have to be disclosed to the FCC, but their details do not. When the spectrum is auctioned, stations  may receive tens of millions of dollars for their spectrum, especially in congested coastal areas. This money is unrestricted and can go back into community-based digital media, or into university gyms, or into a city’s general treasury.

Changes to FCC rules ease requirements for tower owners, tenants

Pubcasters who own broadcast towers are about to get regulatory relief thanks to a FCC decision that closes the books on a lengthy effort to revise rules governing tower safety and maintenance. At an open meeting Friday, FCC commissioners approved the changes while decrying the long road their predecessors took to get there. “This issue was first raised in 2005 during the Commission’s 2004 biennial rule review,” said commissioner Michael O’Rielly. The question that has to be asked is, why did it take the commission nine years?”

Though the Part 17 rules apply to all owners of “antenna structures” (FCC-speak for towers), the Commission’s Wireless Telecommunications Bureau promoted the changes as a boon to cellular and data services, which depend on hundreds of thousands of smaller towers across the country to meet ever-growing demand from consumers. By eliminating a requirement that tower owners conduct quarterly physical checks of the monitoring systems at all of their towers, the FCC “will save antenna structure owners millions of dollars annually,” said WTB representative Michael Smith.

In spectrum auction, FCC should protect public TV’s coverage

The FCC recently released the entire text of its Report and Order detailing rules for the upcoming broadcast spectrum auctions, making it clear that it intends to make no effort to preserve public TV signal coverage. The 484-page report, “Expanding the Economic and Innovation Opportunities of Spectrum Through Incentive Auctions,” rejects the proposal supported by CPB and other leading broadcast organizations to preserve at least one station per geographic market. If you dive into this ponderous document, I recommend paragraph 367 and footnote 1090 (unfortunately, not a typo — there really are over 1,000 footnotes). In paragraph 367, the FCC states that it declines to “restrict acceptance of such bids based on the potential loss of television service or specific programming.”

The FCC further states that any such restrictions “could reduce the amount of spectrum available” to carry out the auction and undermine the “goal of allowing market forces to determine the highest and best use of spectrum.” The long and short of it is that if the entities that hold America’s 289 UHF public TV licenses decide to sell their underlying spectrum in the forthcoming “incentive” auction, that spectrum will be lost to noncommercial television forever. It need not be so.

Washington’s WAMU aims to buy signal south of D.C.

WAMU-FM in Washington, D.C., will enter the Fredericksburg, Va., market with the pending purchase of 8,000-watt WWED 89.5-FM. WAMU has proposed to buy WWED from the Educational Media Corp., a nonprofit Christian ministry based in Spotsylvania, Va. According to an asset purchase agreement filed with the FCC, WAMU licensee American University will pay $375,000 for WWED and a booster signal in Fredericksburg. WWED and sister station WWEM-FM in Lynchburg, Va., went dark as of Aug. 1, 2013, according to fredericksburg.com.

FCC staff reports fast clip for processing of LPFM apps

FCC commissioners got an update Friday on the status of low-power FM applications, six months after the closing of the most recent LPFM application window. The FCC received 2,826 applications for low-power stations during the window, which ran from Oct. 17 to Nov. 15, 2013. As of April, FCC staff had granted permits to more than 1,200 of those applicants.