Repacking Crunch Not Here Yet; Affected by Reimbursement Uncertainty
The post-incentive auction repacking hasn’t been afflicted by a lack of enough engineers, materials and resources to go around, but that could change once broadcasters have more certainty about what will be reimbursed, broadcast engineers and industry officials told us. Though industry officials said some orders for new equipment have come in, most broadcasters are waiting for results from the FCC’s review of their expenses and for news from Capitol Hill and the agency about how far their reimbursement funds will go (see 1707260061 and 1707310050), said Dennis Wallace, broadcast engineer at Meintel, Sgrignoli. Dielectric Antenna Sales Executive Christine Zuba expects a push once stations have access to their reimbursement funds. Broadcasters likely will “wait until they have a confirmed outcome as to what’s going to be approved,” Wallace said. The IATF said reimbursement funds are expected to be available in Q4 (see 1707270051).
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If broadcasters believe their repacking expenses won’t be fully funded because of the reimbursement fund shortfall, they are going to order more conservatively, which might lessen the projected resource crunch, Wallace said. Broadcasters need certainty to proceed, as it would be difficult for a large company to justify expenses it’s not sure will be covered by the reimbursement fund, Wallace said. The FCC didn’t comment.
Though several engineers said they're severely pressed by the work that preceded the FCC’s recent Form 399 deadline, they also said they don’t feel a resource crunch has come yet. Companies on the manufacturing side increased their workforce to deal with the repacking, and it has paid off, Zuba and Wallace said. Heartland Media CEO Bob Prather said his company hasn’t had trouble procuring services for repacking.
The time crunch caused by the repacking schedule will be the source of the scramble for resources, engineers said. Many broadcasters likely will have to make adjustments to their projected needs because of the rush to file Form 399s on time, said Donald Everist, president of broadcast engineering firm Cohen Dippell. Thirty-nine months “is an aggressive schedule,” said Wallace. Though many industry officials believe that schedule will be changed, it may not happen until much further along in the repacking, said engineers and broadcast attorneys.
Industry allies agree broadcast towers will be the area most affected by the amount of work the repacking requires, and there’s little to be done about it. “You can’t magically manufacture people that have 20 years of experience,” Wallace said, adding that it takes that long for the leaders of the most experienced tower crews to learn their trade. Tower companies have said they would be able to meet the need by hiring experienced workers that have left the industry. The issue is further complicated by business concerns such as insurance that limit the places such crews can work, and the long-standing relationships between broadcasters and certain tower crews. The crews aren’t interchangeable, an industry official said. The National Association of Tower Erectors didn't comment.