The FCC “has done almost nothing positive or...
The FCC “has done almost nothing positive or proactive” to attract broadcasters to the incentive auction, said Preston Padden, executive director of the Expanding Opportunities for Broadcasters Coalition, in informal comments filed in docket 12-268 Thursday. “We can think of…
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no more sure path to a failed auction,” said Padden. To maximize broadcaster participation, the FCC should disavow any plan to relate the value of a station in the auction to its coverage area or ratings, Padden said. The FCC is buying spectrum rather than broadcast stations, said the filing. “The only factor relevant to the FCC’s valuation of a broadcast license, therefore, is the value of not having to repack that station,” Padden said. There’s no correlation between a station’s population served and the value of not having to repack it, Padden said. The commission could also increase broadcaster participation by keeping any bidding restrictions on AT&T and Verizon from having too much effect, the filing said. Such restrictions shouldn’t kick in until a very high threshold has been reached, and should allow the companies to buy at least 20 MHz of spectrum in any given geographic area, Padden said. “If the FCC prevents Verizon and AT&T from obtaining at least 20 MHz each, it could severely restrict auction revenues, dampening broadcaster interest.” The commission should also provide broadcasters with “a detailed roadmap” of the auction process to allow them to make business decisions, and share any available pricing information with broadcasters, Padden said. “In the absence of pricing guidance from the Commission, innovative channel sharing agreements are on hold and interested broadcasters are developing alternatives to auction participation -- launching new networks and entering into lucrative new programming arrangements,” said the filing.