Reimbursement Order for FM, LPTV, Translators Seen for March
The FCC is on track to issue a reimbursement plan for low-power TV, translators and FM stations in March, said industry lawyers. A public notice and progress report Monday announced allocation of additional repacking funds and reported the repacking is “ahead of schedule.” Broadcast officials told the Incentive Auction Task Force last week that repacking delays are worsening and could degrade further due to a lack of tower crews (see 1902080059).
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The agency is expected to release a reimbursement plan and catalog for TV translators, LPTV and FM stations in time for a March 23 statutory deadline, industry attorneys said. The IATF “continues to work toward implementing Congress’ directive,” Chair Jean Kiddoo emailed us. “We are also working on a cost catalog for use by such stations and expect it to be ready for release in the coming weeks.”
To prevent some stations from exceeding their current allocation of reimbursement funds, the FCC is allocating an additional $68.1 million to 316 full-power and Class A TV stations, said Monday’s PN. Those stations have access to funds totaling 92.5 percent of their current verified repacking cost estimate, the portion established in a previous IATF PN. The extra funds will keep those broadcasters from becoming “under-allocated relative to other program participants,” the new PN said.
It’s “a positive” that the FCC is tracking and responding to changes in the reimbursement levels for broadcasters, said Wiley Rein broadcast attorney Ari Meltzer. He also called the PN a “double-edged sword” and said it’s disappointing the IATF hasn’t released all reimbursement money. Since paybacks won’t be closed out until 2023 according to the PN, the agency is asking broadcasters to “float” the agency for a repacking they never sought, he said.
The commission is “optimistic” the stations in future repacking phases will be able to meet their phase completion dates, said the progress report. The agency has been flexible in allowing stations additional time for unforeseen difficulties such as hurricanes, the PN said. The IATF monitors station progress through regional coordinators, the drawdown on reimbursement funds and industry contacts, the PN said: “Our aim is to identify problems before they result in a missed deadline so that we can offer support and alternatives and thereby avoid impact on the overall transition.”
In two meetings with the IATF, tower and antenna industry officials said the lack of tower crews is likely to delay later repacking phases. Including stations that delayed their repacking deadline to later phases, “172 of the total 987 repacked stations have successfully vacated their pre-auction channel,” the PN said. All stations assigned to phase 1 as of its completion were repacked on time, and some phase 2 stations have transitioned before the April 12 deadline, the PN said.
The eventual LPTV, FM and translator reimbursement order is expected to take into account broadcaster objections to limitations on reimbursement for FM stations affected by the repacking, industry lawyers said. Monday’s PN mentions FY 2018 funds being intended for LPTV, FM stations and TV translators, and says the use of FY 2019 reimbursement funds is being “considered.” NAB has been critical of the FCC stance that the 2019 funds are intended only for full-power and Class A stations (see 1809130045). The order could adopt a compromise offered by T-Mobile letting stations that accepted third-party funding to relocate be reimbursed for additional costs (see 1901280047) after all other eligible stations are recompensed.
The reimbursement order isn’t expected to be considered controversial, and commissioners could approve it on circulation or put it on the March 15 meeting agenda, attorneys said. It wouldn't take effect for many weeks, and displaced broadcasters are starting to get bills, said lawyers and broadcasters.
“It’s a real problem, especially for the small operators,” said National Translator Association President John Terrill. “Everyone wants to know when the money is coming in.” Larger operations like Gray Television -- which owns several LPTV stations -- are also seeing bills come due with no reimbursement plan in place, said Gray Television Vice President-Government Relations and Distribution Rob Folliard. “We’re getting to the point where low-powers are getting displaced.”
It's particularly difficult for LPTV and translators because many had to relocate and buy repacking equipment before repacking phase 1 started, when reimbursement for those stations wasn’t yet secured, Terrill said. Without the reimbursement order, they’re uncertain that they’ll be able to recover those funds, he said. The top message on the NTA homepage reads, “We are still waiting for details relating to the LPTV / TV Translator reimbursement program.”