FCC Unanimously Approves Repacking Reimbursement Order
The FCC unanimously approved a reimbursement order Friday for low-power TV, TV translator and FM stations. It's little changed from the draft, Media Bureau Chief Michelle Carey said. It was uncontroversial at the meeting, as expected (see 1903130076). Most commissioners cut their pre-vote statements short.
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The reimbursement funds provide “a good example of our government working as intended,” said Commissioner Geoffrey Starks. The repack “has imposed and will continue to impose a financial burden” on LPTV, FM and TV translators, Chairman Ajit Pai said.
Though the final text hadn’t been released, Carey said some language on reimbursement funding for LPTV stations that received funding from third-party stations is changed in the final draft. Carey was responding to a question about whether the agency made changes requested by T-Mobile. Though she wouldn’t provide specifics, T-Mobile sought a change to make it clearer that LPTV stations that received third-party funding could be reimbursed by the FCC for costs that weren’t covered by the third-party payout. Carey said no other substantive changes were made between the draft and final version. The report and order “adopts a mechanism for reimbursing the newly eligible entities that is substantially similar to the process currently used by the Commission to reimburse full power and Class A stations and MVPDs,” said an agency release.
The American Cable Association praised the order for prioritizing reimbursement for full-power broadcasters and MVPDs out of the FY 2019 reimbursement funds. “It is proper that MVPDs, full power and Class A stations are fully reimbursed for any expenses incurred during the post-Incentive Auction transition, and the FCC’s decision today is consistent with Congress’ intent,” ACA said. NPR lobbied the agency to prioritize FM stations over secondary services such as LPTV and translators. Commissioner Mike O’Rielly said he particularly wanted to “ensure that FM radio stations are compensated for legitimate costs in the repack process.” He’s “hopeful” enough funding will remain.
O’Rielly expressed concern about how $50 million marked by Congress for spending on repacking consumer education will be used. O’Rielly “will continue to beat the drum” on ensuring the money is used wisely, for “targeted action in coordination with industry stakeholders.” The agency should avoid “unnecessary or duplicative spending.” The Incentive Auction Task Force says consumer education funds have so far been used toward online advertising targeted to markets being repacked and for the FCC’s new repacking-focused consumer call center.
NAB appreciates “expeditious” implementation of a reimbursement that “is as fair as possible given the challenges presented by the repack.” With "little fanfare, as many as 2,000 displaced LPTV and TV translators now have a chance to hit the [relocation] funding jackpot,” said LPTV Spectrum Coalition Executive Director Mike Gravino in an email newsletter.
Broadcasters are waiting for the agency to release a catalog of reimbursable expenses for LPTV stations, TV translators, and FM stations. Since the catalog will limit what broadcasters can seek reimbursement for, it will also have a huge impact on how far the fund goes, they told us. The catalog likely will be approved on delegated authority and is expected in “weeks,” said IATF.