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Onslaught

IATF Received 20 Repacking Construction Permits, Granted 14

The FCC has received 20 applications for construction permits for the post-incentive auction transition, and granted 14, said Media Bureau Associate Chief Hillary DeNigro and Video Division Chief Barbara Kreisman at an FCBA event Monday. Members of the Incentive Auction Task Force also discussed the repacking schedule, timing of payments, and broadcasters seeking payment for equipment upgrades. Though applications aren’t due until July 12, the officials said more applications would be welcome and will be granted on a rolling basis. “We’re ready for the onslaught,” said DeNigro.

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Stations aware of technical or other reasons why they won’t be able to make the July 12 deadline should be in touch with the task force, the officials said. “If you are in that category, I hope we already know it,” DeNigro said.

When stations are preparing construction plans, they should be aware the FCC won’t necessarily consider modernized versions of station equipment to be “upgraded equipment,” said Media Bureau Chief Engineer Jeffrey Neumann. Upgraded equipment purchased for the repacking might not be fully reimbursed, but replacement equipment would be. Neumann compared the matter to buying cars -- though a 2017 Toyota Camry is likely better than an older model, replacing an older Camry with a newer one wouldn’t be considered an upgrade in the sense the IATF will be using for broadcaster reimbursements, he said. “We understand that technology progresses.”

Neumann said ATSC 3.0 compatible equipment wouldn’t necessarily be treated as an upgrade, since a great deal of newer broadcast equipment has that capability. Improved features such as higher power or increased range likely would count as upgrades, he said.

Timing of reimbursement payments depends on how long it takes commission staff to process the estimates submitted by broadcasters and to make the initial allocation payment from the $1.75 billion reimbursement fund, Neumann said, calling it the most important issue in the timing of reimbursement payments. The agency needs to review the estimates “for understanding of the total demand” on the reimbursement funds, he said. Though broadcasters could submit requests for reimbursement for repacking right now, they won’t be processed until closer to when the FCC makes the initial allocation of funds. On payouts to reverse auction winning bidders, IATF Chief Jean Kiddoo said the Treasury Department would need to be paid by the forward auction bidders before sending payments to broadcasters.