PTV'S ANALOG SWITCH-OFF DRAWS MIXED RESPONSE FROM WIRELESS INDUSTRY

Public TV stations control 21% of the 400 MHz of analog spectrum for public TV and commercial broadcasting, most of which falls within the 480 MHz-810 MHz range. APTS estimates that PTV’s 80 MHz of spectrum could reasonably be valued at $70 billion. The Assn. had based its estimates on recent market valuations of spectrum, including Cingular’s purchase of AT&T Wireless and Verizon Wireless’s letter to the FCC in Feb. that 10 MHz of nationwide spectrum in the 1.9 GHz band is worth $5.3-$7.2 billion. PTV wants to retain part of the sale proceeds of the spectrum that it controls in a trust fund for public broadcasters, in part to pay for new digital content and services it says would drive consumer adoption of DTV devices.

The public TV proposal has generated a less-than- enthusiastic response from commercial broadcasters. An NAB spokesman reiterated the organization’s position that there isn’t a “huge demand on the part of the commercial broadcasters to vacate the analog spectrum given the fact that vast majority of Americans would not have access to free over-the-air TV by doing so.” APTS Pres. John Lawson, who couldn’t be reached because he was traveling, told us last month that because commercial broadcasters were reluctant to play along, APTS was seeking to rally other interests such as the wireless industry and public safety interests (CD March 22 p2).

“Unless you get the commercial guys on board you aren’t going to get very far [with the public TV proposal],” said Diane Cornell, CTIA vp-regulatory policy. She said she was more interested in the FCC’s proposal than PTV’s offer because the PTV proposal “seems to me kind of self-serving.” “I see what they are trying to do, but it seems rather opportunistic.” Asked if CTIA would back APTS efforts to form a coalition of like-minded interests to push its proposal for a trust fund in Congress, Cornell said the group didn’t have a position on that.

Two categories of wireless companies could be interested in the APTS proposal, Cornell said. One was companies that have already purchased some of the licenses in the 700 MHz in the first auction, she said. These companies have licenses, she said, and were interested in getting their markets cleared as quickly as possible so they can use the spectrum. The other category comprised companies who potentially might be interested in the remaining larger markets for the spectrum that hasn’t been auctioned. However, such companies wouldn’t be willing to devote a “lot of resources to it in all likelihood” unless they saw “real momentum towards the spectrum being freed of broadcasters.” Cornell said CTIA hadn’t been approached by public broadcasters.

“It’s step in the right direction, but it really doesn’t solve the problem,” said Charles Townsend, pres. of Aloha Partners, largest owner of 700 MHz spectrum. That was because even if the govt. was willing to set up a trust fund, he said, “you still have all of the traditional [commercial] broadcasters encumbering the spectrum. Unless the traditional broadcasters agree to do a similar type plan, it doesn’t clear off the spectrum -- to clean it up completely.” As for whether he was in favor of supporting APTS’s efforts to form a coalition to press the issue in Congress, Townsend said while Aloha, which has licenses on Ch. 54, 55, 59, favored a date certain for analog handover so “we can use our own spectrum sooner,” the bigger issue was what needs to be done with the 15% of Americans that receive over-the-air signals. In that respect, he said, the APTS proposal for govt. to subsidize digital converter boxes for those who couldn’t afford it was a “pretty good idea.”

Verizon Wireless doesn’t have any “strong interest” in using 700 MHz, “so we haven’t weighed in,” a spokesman said. But as a general issue, he said, the public safety agencies needed the band. “We certainly think that the sooner the broadcasters are out and public safety and others can make use of it the better.” There might be concerns in the wireless industry if auction proceeds are going to interests other than those related to that spectrum, an industry source said, commenting on the public broadcasting trust fund sought by public TV. The industry would expect the proceeds to be used for things like the relocation fund, the source said. But proposals that get “too far afield” from the actual clearing of the spectrum would be a hard-sell, the source said.

One of the benefits of the public TV offer is that it would help free up some spectrum for public safety because some of the channels occupied (Ch.60-69) are those allocated for public safety, said Robert Gurss, dir.-legal & govt. affairs of the Assn. of Public Safety Communications Officials (APCO). Asked if he shared the view that the public TV proposal wouldn’t take off without support from commercial broadcasters, he said it could be true given that public broadcasters represent a small number of stations that have to vacate the spectrum. But in certain areas, it could make a difference: “But I would agree that by itself, it only has a limited benefit.” APTS officials have had talks with APCO, he said: “We are willing to work with them.”