[IP] Public Broadcasters Propose Bill to Return Analog Spectrum, Create Trust Fund
Delivered-To: dfarber+@xxxxxxxxxxxxxxxxxx
Date: Wed, 03 Mar 2004 14:52:14 -0800
From: Dewayne Hendricks <dewayne@xxxxxxxxxxxxx>
[Note: This item comes from friend Michael Calabrese of NAF. DLH]
At 13:12 -0500 3/3/04, Michael Calabrese wrote:
Subject: Public Broadcasters Propose Bill to Return Analog Spectrum,
Create Trust Fund
Date: Wed, 3 Mar 2004 13:12:10 -0500
From: "Michael Calabrese" <Calabrese@xxxxxxxxxxxxxx>
We thought you'd be interested in the gathering support for an idea
promoted over the past couple years by think tanks often at odds on
spectrum policy -- New America, Cato, Manhattan Institute -- and which has
already been adopted in Berlin, Germany. The idea is to bring a speedy
end to the logjammed DTV transition by earmarking a fraction of future
spectrum auction or user fee revenue to subsidize consumer purchase of a
converter box allowing stations to transmit in digital only -- and rapidly
clear one of the two channels they license for reallocation to public
safety and especially both unlicensed (WiFi-type) and licensed (cellular)
wireless broadband services. (A policy paper updating and detailing New
America's proposal along these lines will be released shortly.)
As the article below describes, the Association of Public Television
Stations (APTS) is already moving ahead with plans to formulate a proposal
for an early return of public broadcasters analog television spectrum in
return for 1) full digital signal carriage on cable and satellite systems,
2) encouragement of the development of a cheap analog-to-digital converter
or set-top box and 3) a trust fund to finance public TV's new digital
content that would "motivate consumers to buy set-top boxes." Some
pubcasters are aiming at $14 billion for the trust fund to be financed by
sale of their analog spectrum. APTS is working with Sen Ernest Hollings
(D-SC) and hopes to have legislation introduced by the second half of
2004. There's no illusion of getting a bill passed in the Congress, but
hopes of having something to rally a coalition around for next year.
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar]
March 3, 2004, Wednesday
SECTION: TODAY'S NEWS
LENGTH: 1129 words
HEADLINE: PUBLIC TV DEVELOPING LEGISLATION FOR TRUST FUND THIS YEAR
BODY:
To give a boost to its digital transition strategy of embracing a hard
date for turning off analog, public TV is planning to develop legislation
with sympathetic members of Congress to create a public broadcasting trust
fund from proceeds of the analog spectrum auction. The move follows clear
signals from public TV stations that setting up a trust fund was a
"prerequisite" for early handover of analog spectrum, Assn. of Public TV
(APTS) Pres. John Lawson told us. A draft plan for adopting a hard date
for digital-only broadcasting (DOB) has been submitted to the APTS board
and to member stations, he said, and "we hope in the first half of this
year to present our membership and our board with a pretty comprehensive
plan for digital-only broadcasting."
Lawson said Sen. Hollings (D-S.C.) had supported the idea of a trust fund
based on the analog spectrum return: "We will continue to work with his
staff and the staff of other senators on what that legislation might look
like. We hope to have legislation introduced on a bipartisan basis." He
said he didn't expect the bill to become law this year, but "if a bill
were introduced it would give us something to rally behind and begin
building coalitions." A recent online survey of stations had made clear
that early analog return would rest on a "series of policy changes that
are up to the federal government," he said.
At last month's APTS board meeting, members were generally supportive of
the DOB proposal, but they also notified the staff some stations were
skeptical the proposal would materialize. "It's hardly a slam dunk," said
David Liroff, chief technology officer for the WGBH Education Foundation.
But given its promise for cost savings for stations alone, the APTS staff
should continue exploring the idea of an early analog switch off, he said.
Lawson said about 92% of the stations were for APTS developing a analog
switch off plan, though 43% of those said they remain unconvinced about
its feasibility. Stations' skepticism was based also on such questions as
whether ATSC was an infeasible standard for getting signals to consumers;
how expensive digital converter boxes would be for consumers; and whether
there would be improvement in antenna performance, he said.
So the plan's success revolves around technical, cost and policy issues,
Lawson said. If the govt. wanted an analog switch off, "there's a very
clear set of conditions on the table," he said: (1) Ensure carriage of all
of PTV's digital signals on cable and satellite. (2) Encourage the
development of a cheap analog-to-digital converter or set-top box. (3) Set
up a trust fund to finance PTV's new digital content that would "motivate
consumers to buy set-top boxes." The money from the fund would also be
used to subsidize set- top boxes "for the relatively small group of
people... who would need some sort of receiver subsidy," he said.
Lawson wasn't clear about what portion of the analog spectrum auction
proceeds should go into the trust fund. However, APTS board member Robert
Shuman, CEO of Md. PTV, put the amount at $14 billion. He said his
calculation was based on Sen. McCain's (R-Ariz.) estimate the analog
spectrum was worth $70 billion. With PTV stations controlling 21% of it,
their share should be about $14 billion. Lawson said the valuation of the
spectrum was a "crucial" issue, but it was also "up in the air at this
point." Experts in the private sector and the govt. he had talked to
agreed that the value of the spectrum was unknown because "no one in a
position to value it believes that the broadcasters will get off of it
anytime soon." They also think that if a section of the broadcast industry
came up with a plausible plan to hand over analog spectrum by a date
certain, then entrepreneurs would get to work to make use of the property,
he said.
PTV also wants to make the case that there's more at stake in the early
analog turn-off plan than the auction revenue. The auction proceeds could
be significant, Lawson said, "but they are by no means the most important
economic consequence of auctioning the spectrum." If the spectrum is freed
up for the private sector to develop, it will provide the foundation for
an enormous increase in economic activity, he said. As for set-top boxes,
he said one vendor had told him that the boxes could be marketed for $69
each if sale of one million units was assured. "This should not surprise
anyone." He said dozens of vendors were selling inexpensive
digital-to-analog converters in Berlin and the U.K. "The bottom line is
that there is nothing inherent in the ATSC digital standard that would
change the economics we've seen in Europe that mass production makes it
pretty cheap for the simple set-top box. It is pretty clear that the
economics of producing these boxes are quite favorable in terms of
widespread consumer adoption."
The PTV proposal for a public broadcasting trust fund financed by analog
spectrum sales appears to have caused apprehension in public radio. NPR
Vp-Govt. Relations Michael Riksen told his board that while the idea of
creating a trust fund for public broadcasting wasn't new, "using proceeds
from the sale of public television's analog spectrum could have an impact
on the levels of future congressional appropriations for public
broadcasting." Asked to elaborate, Riksen told us that he couldn't make a
"meaningful comment," because there wasn't enough information on "even the
general nature of the [trust fund] proposal."
Public broadcasters are also seeking mileage from the outrage generated on
the Hill by recent incidents as the Super Bowl half-time show. "What
happened at the Super Bowl half-time show has really cast into sharp
relief the difference between public television programming and what
consumers are seeing from some of the commercial medium," said Lawson. He
said there were "changed attitudes [toward public broadcasters] even among
Republicans" at a recent House Labor-HSS Appropriations Committee hearing
on CPB funding (CD Feb 26 p12). NPR officials, who are used to barbs from
Republican members about liberal bias and a pro- Palestinian tilt in its
Middle East coverage in such hearings, said they were pleasantly surprised
by the praise NPR got from both sides of the aisle. "It was terrific to
hear to unprompted and unrehearsed comments from the Republicans about NPR
and public radio and our international coverage and our focus on rural
issues," said Riksen. Acknowledging that the Super Bowl incident and
programming on commercial radio had helped to cast NPR and public radio in
a fresh light, he cautioned, however, that "good work doesn't necessarily
translate into dollars." -- Dinesh Kumar
Archives at: <http://Wireless.Com/Dewayne-Net>
Weblog at: <http://weblog.warpspeed.com>
-------------------------------------
You are subscribed as roessler@xxxxxxxxxxxxxxxxxx
To manage your subscription, go to
http://v2.listbox.com/member/?listname=ip
Archives at: http://www.interesting-people.org/archives/interesting-people/