A draft NPRM on repacking reimbursement for FM stations, low-power TV stations and translators appears to “penalize T-Mobile for taking a proactive approach” to funding LPTV relocation (see 1707170043), said the carrier in meetings with the Media Bureau, Incentive Auction Task Force, and aides to Chairman Ajit Pai and to Commissioners Mike O’Rielly and Jessica Rosenworcel, it recounted in docket 18-214, which also had other filings posted Thursday, a week before commissioners vote. The company was represented by former IATF Vice Chairman Howard Symons, now of Jenner & Block. T-Mobile “was willing to step in at a time when Congress had not funded the post-auction relocation of LPTV stations,” but Congress’ authorization of reimbursement funds for LPTV and translators “has materially altered the post-auction landscape for these stations,” T-Mobile said. The draft suggests T-Mobile could remain responsible for funding LPTV repacking despite the new reimbursement fund, and proposes precluding stations that received funding from the company, even for future expenses, it said. Stations that received money from T-Mobile should be able to use the fund “provided that they demonstrate that funds received from the third party have been returned or have not been used to fund the same eligible expenses” and likewise for the future, T-Mobile said. Microsoft also met with the IATF and Office of Engineering and Technology on the draft reimbursement NPRM. It should include questions about letting LPTV, translators and FM stations be reimbursed for transmit filters that will promote “greater overall band utilization,” wrote Microsoft, hoping “the NPRM ask whether the Commission could promote greater use of the television band by reimbursing full-service filters for all low-power broadcasters, rather than stringent or simple masks.” The draft misinterprets legislation authorizing the additional reimbursement, NAB continued to say (see 1807240061) in meetings and calls with Pai Chief of Staff Matthew Berry, Media Bureau Chief Michelle Carey, and aides to Pai, Rosenworcel and Commissioner Brendan Carr, it said (and filings). The draft operates from the premise the legislation lets the FCC draw FY 2018 funds only to reimburse LPTV, FM stations and translators, but NAB argued that’s a “phantom reading.” That led the NPRM to propose graduated payments for FMs based on how they are disrupted by the repacking, NAB said. “Congress specified funding levels from Fiscal Year 2018 funds, but also provided the FCC with discretion as to how to allocate Fiscal 2019 funds.”
The FCC’s likely sinking of Sinclair buying Tribune is “disgraceful” and “so sad and unfair,” said President Donald Trump Tuesday evening in a tweet that angered Democratic lawmakers, but is considered unlikely to influence FCC policy, said boosters and critics of FCC Chairman Ajit Pai. “I don’t think the chairman would kowtow” to Trump, said Benton Foundation and Georgetown Law Institute for Technology Law and Policy fellow Gigi Sohn, an aide to previous FCC Chairman Tom Wheeler. “I’m sure he knows the FCC is an independent agency,” said Newsmax CEO Chris Ruddy, a friend of Trump’s and opponent of Sinclair/Tribune. “I would be very surprised if he ever tried to meddle with FCC policy.”
U.S. Court of Appeals for the D.C. Circuit rejection Wednesday (see 1807250002) of anti-consolidation groups’ petition against the restored UHF discount is seen as removing pressure on the FCC to raise the national cap and paving the way for TV station dealmaking.
The U.S. Court of Appeals for the D.C. Circuit upheld FCC reinstatement of the UHF discount, denying anti-consolidation groups’ petition for review because they didn’t show sufficient standing, according to a judgment (in Pacer) issued Wednesday morning. Some had thought the FCC might lose the case, based on oral argument, but standing was always a question.
Low-power FM broadcasters urged the FCC to adopt a petition to increase LPFM power levels and allow them more interference flexibility, but NAB cautioned against the plan, in comments posted Monday in RM-11810. “Increasing the maximum LPFM power output could not only increase interference to existing FM services, but potentially change the carefully designed hyper-local nature of LPFM service,” NAB responded to the petition from REC Networks. “There is a disparity between how LPFM stations protect FM translator facilities and how FM translator facilities protect LPFM stations,” REC said. The petition would address technical issues that are affecting LPFM stations, REC said. “More than ample time has passed to demonstrate that the interference concerns of existing broadcasters have proven unfounded in the establishment of the LPFM service,” said Cambridge, Maryland, LPFM station WHCP-LP. Prometheus Radio Project and Common Frequency endorsed the REC petition, saying the FCC should work to “simplify and mesh” LPFM and translator regulation and interference methodologies “to eliminate the inconsistencies which lead to unnecessary points of contention.” The petition seeks to grant LPFM too much flexibility, said the Educational Media Foundation. “Existing FM services are already under-protected from LPFM, and the proposals of REC would only exacerbate such under-protection.” The creation of a new class of higher power LPFM stations would be “a welcome step toward a more robust presence for LPFMs on the dial,” said the Future of Music Coalition.
The expected unraveling of Sinclair buying Tribune isn’t likely to deter future deals, said broadcast executives, brokers, analysts and attorneys in interviews (see 1807190060). Sinclair’s deal included circumstances that are unlikely to apply to other transactions, even those with sidecar companies, industry officials said. But continued uncertainty about the ownership cap and a lack of buyers still means dealmaking will be slow, said analysts. With the future of the UHF discount and the cap unclear, companies “can’t be sure what they’re buying,” said Wells Fargo analyst Marci Ryvicker.
Sinclair told FCC Chairman Ajit Pai it didn’t have the time or authority to withdraw the deal to buy Tribune after a hearing designation order (HDO) circulated, said an email from General Counsel Barry Faber to Pai Wednesday. It was filed the next day and posted Friday in docket 17-179 as an ex parte by Commissioner Jessica Rosenworcel’s office. The email mentions a Tuesday call between Faber and Pai. The draft HDO was announced July 16 (see 1807190060) and released Thursday.
FCC designation for hearing of Sinclair’s proposed buy of Tribune will almost certainly kill that deal by early August and could threaten other Sinclair licenses even if the deal goes away, said industry officials in interviews. Though Sinclair withdrew the divestitures in Dallas, Houston and Chicago (see 1807180060) targeted by the hearing designation order, "material questions remain,” said the HDO, released Thursday as expected (see 1807180066). The case “includes a potential element of misrepresentation or lack of candor that may suggest granting other, related applications by the same party would not be in the public interest,” it said.
The FCC voted to unanimously approve the draft order designating Sinclair's proposed purchase of Tribune for an administrative law judge hearing, the agency announced Wednesday evening, noting the document will be released Thursday. This came the same day the companies changed their plan. Many in the industry said pre-announcement that releasing the HDO could kill the entire deal.
The FCC draft hearing designation order (HDO) narrowly identifies lack of candor in Sinclair’s planned divestiture of WGN-TV Chicago, without listing specifics. Such details will be the focus of an administrative law judge proceeding (see 1807160048), officials told us. Commissioner Mike O’Rielly, who hasn’t voted, proposed edits to require the ALJ process to adhere to a schedule. His proposed changes wouldn’t impose a deadline for a ruling, an official said.