FCC opted against adopting cost-sharing rules, cost caps or recov...

appropriate at this time,” Commission said. Decision, made last week and released Tues., “leaves cost-sharing arrangements to voluntary negotiations among new wireless licensees,” agency said. Commission also left implementation of secondary auction process for band-clearing rights to “private, voluntary efforts.” FCC earlier had sought comment on whether govt. or private sector should oversee secondary auction. Decision expands on rebuttable presumption in earlier Commission action. Initial policy provided that under specified circumstances, voluntary arrangements for incumbents to exit spectrum ahead of Dec. 31, 2006, DTV transition would be in public interest. Presumption applies to agreements between 700 MHz wireless licenses and incumbent broadcasters. Now, FCC has expanded that to 3-way agreements, allowing Ch. 59-69 incumbents to relocate to lower band TV channels, which in turn would be cleared voluntarily by incumbents in lower band. Without providing details, Commission said it provided guidance on interference issues that could arise from proposal to relocate broadcaster to channel below Ch. 59. Agency also adopted changes to streamline review of regulatory requests needed to put private band-clearing agreements into force. Report and order received approval of all commissioners, with exception of Comr. Tristani, who approved in part and dissented in part. In separate statement, Tristani reiterated earlier concerns over rebuttable presumption, saying band-clearing proposals needed case-by-case review. She said her earlier concerns extended to 3-way channel swaps. “Although the Commission’s action purports to facilitate the DTV transition with only a temporary loss of service for today’s viewers of over-the-air television, I fear it will do neither,” she wrote. “Moreover, 3-way swaps may result in loss of service not only for viewers of channels 59-69, but in the core spectrum as well.” In statement that was longer than agency’s news release on order, Tristani said she was concerned about impact on overall DTV transition. “Nothing in today’s decision requires a broadcaster to give up its analog operations in favor of digital-only service,” she said. Instead, broadcaster could operate in analog format on digital channel allotment under 3-way swap. Citing “negligible penetration” of DTV sets, Tristani said that made it likely broadcaster would choose to continue analog operations on its only channel “and ‘free ride’ on the efforts of other broadcasters to complete the digital transition.” She also objected to majority’s treatment of so-called lone-holdouts, or single incumbent broadcaster who refuses to leave spectrum block that otherwise is cleared of UHF operators. She said decision didn’t express view on mandatory relocation, but said FCC would revisit matter if needed. Tristani stressed that such action would contravene statutory mandates.