DTV HEARING HIGHLIGHTS BROADBAND USES FOR ANALOG TV SPECTRUM

In a hearing that featured only a public broadcaster -- no commercial broadcasters, cable executives or consumer electronics representatives -- Commerce Committee Chmn. McCain (R-Ariz.) said: “The end of this transition will mark the beginning of a new age in wireless communications.” McCain told reporters afterward he supports the FCC’s transition plan.

While witnesses at the hearing pushed for a quick transition from the broadcasters, FCC Media Bureau Chief Kenneth Ferree urged patience for broadcasters making the transition. “It’s important that we don’t lose sight of the need for consumer education,” said Ferree, who noted that only the broadcasters accused him of rushing things by proposing a 2009 conversion deadline. “There must be some time for a ramp down. The pain will be less in a few years than if we try to do it now.” Several witnesses also acknowledged that the 2006 deadline was probably unreasonable. Ferree said the bureau’s plan will likely be decided this year by the FCC, as it’s part of 2 open dockets. He said the FCC must first hear comments on how to handle the 15% of viewers who haven’t made the digital transition.

Witnesses emphasized the value of spectrum now used for analog broadcasting. “The ability to use TV frequencies would accelerate the growth, expand the reach, reduce the cost and improve the quality of broadband wireless services,” said Patrick Gelsinger, Intel chief technical officer. Gelsinger said that band of spectrum, which easily passes through walls, would require fewer antennas and allow easier self-installation for consumers. Gelsinger also said Intel supports: (1) The FCC’s recently opened rulemaking on giving rights for unlicensed use on vacant TV channels. (2) The FCC transition plan. (3) Incentives for broadcasters to vacate the spectrum. The FCC should give broadcasters who vacate analog channels before 2009 a pro rata share of auction proceeds.

The analog spectrum could also lower wireless telephony costs and generally improve spectrum efficiency, said Thomas Hazlett of the Manhattan Institute. The analog TV band is twice as large as all spectrum devoted to wireless phones, he said, and an additional 80 MHz for wireless would reduce per- min. charges nearly 25% and increase usage about 47%, leading to more than $30 billion in annual consumer benefits. Hazlett also said the current FCC spectrum command structure left little incentive for spectrum efficiency.

Senators emphasized the need for a quick transition. “I think 2009 is too late,” said Sen. Ensign (R-Nev.). “We have to make things happen.” Sen. Sununu (R-N.H.) called “unnerving” disagreement on how to define what 85% of consumers receiving DTV. McCain noted that proceeds from spectrum auctions should easily be able to offset any subsidies needed to ease the transition. And Commerce Committee ranking Democrat Hollings (S.C.) urged a smooth transition and warned about letting “zeal overcome our desire to minimize disruption to today’s over-the-air viewers.”

Michael Calabrese, New America Foundation vp-spectrum policy project, said that while he didn’t believe the FCC’s plan went far enough, he disputed House Commerce Committee Chmn. Barton’s (R-Tex.) suggestion that a 2006 deadline was possible to meet. Calabrese said equipment manufacturers probably wouldn’t be able to gear up production of converter boxes by the deadline.

Not giving up on over-the-air TV, John Lawson, Assn. of Public TV Stations CEO, encouraged Congress to create a trust fund from auction revenue that would support the creation of digital public TV content focusing exclusively on educational programming. He also said Congress should adopt rules to ensure public TV had digital carriage rights, including multicasting for cable and satellite. He cited examples in England where over-the-air DTV has become competitive with cable and DBS, and said the same could occur in the U.S. with enough programming.

The hearing also featured Rep. Harman (D-Cal.), who touted HR-1425, which would require broadcasters to vacate the analog spectrum by 2006 so public safety can gain access to portions of spectrum already reserved for that purpose. “They've waited long enough,” Harman said of public safety concerns. Asked by McCain why broadcasters are intransigent, Harman said: “They somehow feel they deserve compensation for the cost of the license.” Harman also said broadcasters were ignoring public safety concerns and were being “shortsighted.”

But not all McCain’s comments were critical of broadcasters. He said that while many broadcasters were late in meeting their DTV broadcast obligations, “I recognize that the vast majority of broadcasters are now doing so.” McCain said the Committee invited a “broadcast executive,” but none accepted the invitation. NAB said it offered both NAB Pres. Edward Fritts and Art Brooks, Ariz. Bcstg. Assn., to testify, but the Committee refused both.