Pallone Incentive Auction Draft Bill Puts NAB, LPTV Advocate Gravino at Odds

"NAB strongly supports" Pallone’s "pro-consumer TV auction discussion draft legislation,” an association spokesman said. “Millions of viewers reliant on broadcast television could be seriously harmed if this auction is not handled correctly. Ranking Member Pallone is proposing a smart, consumer-friendly approach that addresses urgent ‘repacking’ issues that must be addressed to achieve a successful and truly voluntary incentive auction.”

The draft would allocate $90 million for the FCC to “to conduct a consumer outreach campaign to raise awareness of changes to the television channels available to such consumers as a result of the reorganization of broadcast television spectrum,” the text said. The $1 billion in the Viewer Protection Fund must be used by the end of FY 2022 and any unused funds then returned to the U.S. Treasury. The text also included a section compelling FCC analysis of the repacking plan and transition. “Not later than 5 months after the conclusion of competitive bidding in the forward auction,” the FCC or Media Bureau under delegated authority “shall publish an analysis on how the Commission will complete an expedited reorganization within the 39-month transition period,” the text said. An order would have to delegate the bureau "the authority to adopt a broadcast channel relocation plan with relocation deadlines designed to ensure that wireless licensees obtain access to their licenses expeditiously while broadcast channel relocation efforts are completed as efficiently and effectively as possible. Such plan should seek to provide wireless licensees with access to their licenses on a phased-in basis as separate regions of the country are reorganized for wireless use.” The Media Bureau would be empowered to modify the transition plan to ensure “no station is forced to stop broadcasting due to reasons outside the station’s control,” it said.

A Democratic House staffer told us the draft is an overture to other lawmakers and not meant as a final product. The text is very much open to revision, the beginning of a dialogue and negotiation, the staffer said, hopeful in attaining GOP support and not committed to one particular timeline for advancing the legislation. He compared the focus on this transition to the one for DTV and said the $90 million figure is based on the one used in that earlier transition. The measure isn't meant as a message bill, he said. “We are reviewing the draft and look forward to working with Ranking Member Pallone to ensure a successful auction and a smooth post-auction transition,” an FCC spokesman said.

Policymakers must ensure “we make this transition as seamless as possible for consumers without interruptions in their service,” Pallone said. “The Viewer Protection Act will help to ensure that viewers’ TVs do not go dark because we never know when another emergency might occur. At the same time, my bill will ensure consumers of mobile broadband reap the benefits of the incentive auction as soon as possible.” He said he looks forward to the auction’s start “early this year,” not suggesting any delay due to the broadcaster repacking concerns.

The Competitive Carriers Association shares Pallone's "confidence that Chairman [Tom] Wheeler and the FCC will commence the auction early this year and proceed in a manner that benefits consumers," CCA President Steve Berry told us in a statement. "We share Rep. Pallone’s goal of ensuring that mobile broadband customers reap the benefits of more spectrum repurposed through the auction process as soon as possible. We know the infrastructure market is not static, and the tower industry will respond to the market opportunities created by the auction. If there are legitimate instances where the transition period for individual stations must be modified, it makes sense to affirm that the FCC has the authority to provide additional time and/or impose penalties to ensure a smooth transition that meets the existing timeline and creates a successful auction for all involved -- most importantly consumers."

The measure is the worst news possible for LPTV and TV translators, LPTV Spectrum Rights Coalition Director Mike Gravino told us. He also circulated his criticisms in an alert, featuring the following warning in bright red: “DRAFT BILL BY DEMS COULD LEAD TO THE END OF LPTV.” Gravino met with Capitol Hill staffers last fall pressing for LPTV legislation, which hasn't been offered up (see 1510150066). The Democratic House staffer said the Pallone measure wasn’t meant to revisit 2012 law or directly address the LPTV concerns, although he didn’t oppose the notion of possibly doing so.

“The proposed bill is yet another giveaway to the full power auction eligible stations, and provides no funding for our industry,” Gravino emailed us. “To add insult to injury, if any funds are left over from the new $1 billion offered to the repacking broadcasters, none of it will go to LPTV and TV translators, but will be returned to the government. Further, the proposed bill directs the FCC to tell private industry who their customers should be and when they can do business with them. No way the Congress and the FCC can tell tower crews and manufacturers to ignore LPTV and TV translators they can't contract for services unless they get the permission from the FCC. Congressman Pallone gets it all wrong with this bill. It ain't 2012, and the LPTV and TV translator industry will fight to amend this bill to include us. And NAB had better step up to help us also, or else.”

In his email to supporters, Gravino challenged them to contact Pallone’s office with grievances and provided the contact information. “I then want you to call the Republicans,” Gravino said. “Many of you complain that LPTV and translators suffer because of the Dems, but do not forget, the Repubs have done NOTHING for us also, nothing, nada, zero, zed. … The real action will be what NAB and the Repubs will do. It is time for both of them to stand up and get LPTV and translator relocation funding included in this bill!!!!!”