Initial Allocation of Reimbursement Funds Expected 'Soon,' IATF Says
A public notice announcing how much of the $1.75 billion repacking reimbursement fund will be allocated upfront to broadcasters will be issued “soon,” FCC Incentive Auction Task Force staff said Tuesday. Many broadcasters have been holding off on ordering repacking-related equipment until the amount of reimbursement money is announced, said broadcast attorneys and NAB filings in docket 14-252. IATF said the initial allocation would be “an amount sufficient to allow stations and MVPDs to get started with their channel transitions." NAB, Ion and other broadcasters pressed the IATF in recent weeks to offer more of the funds upfront (see 1709280068). IATF Chair Jeanne Kiddoo said the commission wants to hold some of the fund in reserve to deal with any differences between estimated and actual costs and to avoid having to get back funds from broadcasters with lower-than-expected expenses (see 1707270051).
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A displacement window for low-power TV broadcasters and translators is also expected, the IATF said. Sixty days before that, the agency will issue a PN with data showing locations unavailable to displaced low-power broadcasters because of interference concerns. The commission also is looking at eventually lifting the freeze on station modifications for non-repacked stations, IATF said.
The total initial allocation will be based on the verified cost amounts for all of the repacked broadcasters -- the cost estimate provided by broadcasters after they’ve gone through the “reasonableness” review by FCC reimbursement fund administrator EY, IATF said. That review is nearly complete, the task force said. Though broadcasters can submit revised estimates of their costs, those won’t be taken into account for the initial allocation, IATF said. Additional allocation will be made based on “careful and continual monitoring of the drawdown amounts," the IATF said. The first repacking progress reports were due Tuesday (see 1709190067). Broadcasters should strive to keep cost estimates up to date throughout the repacking to ensure IATF has the correct data for determining future allocations, it said. The PN will announce the total initial allocation, but broadcasters and MVPDs will need to log into the commission registration system (CORES) to see their individual amounts, the IATF said.
The $1.75 billion isn’t expected to be sufficient to cover the repacking, though the amount of the expected shortfall keeps changing as new estimated costs come in (see 1707140070). An IATF spokesman said the current estimated amount of the shortfall isn't being released. The chance of Congress providing more reimbursement funds to cover the gap is better the smaller that gap is, a broadcast attorney said. Broadcast and wireless industry officials said they believe the number remains well under $500 million. The initial estimate of the shortfall was $365 million.
Broadcasters trying to close deals during the repacking should make sure data filed with the FCC is consistent among the consolidated database system, CORES and the licensing and management system, IATF said. “Changes in transaction structure in the middle of the review process may raise new or different data issues. Contact staff about potential explanatory amendments as early as possible to discuss changes.”
T-Mobile meanwhile signed a deal with Fox to assist in the repacking process for WWOR-TV Secaucus, New Jersey, the carrier said in a news release Tuesday. “WWOR-TV will repack in early 2018, over a year sooner than the originally proposed FCC deadline of August 2019, and will do it for much less.” T-Mobile officials told us WWOR's location in an area of spectrum congestion made it suitable for such an arrangement. The company is on the hunt for opportunities to quickly make use of the spectrum it bought in the incentive auction, a T-Mobile official said. “We’re committed to working with broadcasters across the country to clear 600 MHz spectrum,” said Chief Technology Officer Neville Ray.
Auction Notebook
Modifications to the table of frequency allocations and Part 27 rules to reflect results of the incentive auction take effect Nov. 13, says the FCC. The rules (see 1709130032) are to be published in Wednesday's Federal Register.