[opendtv] Re: Broadcasters, Cable Spar over Retrans

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Tue, 7 Jun 2011 16:12:21 -0500

Craig Birkmaier wrote:

> The real issue here is that the politicians screwed up. They ALLOWED a
> market for TV spectrum to be created via sales of TV stations and their
> FCC licenses. And when this happened, the companies that purchased these
> stations placed LARGE valuations on the spectrum on their books in the
> form of "GOODWILL."
>
> IF the FCC had said, you cannot sell the license, ONLY the facilities,
> the picture today would be much different. But you are correct, there is
> a huge market in TV spectrum, and many stations have paid (some over-paid)
> for those licenses.

I suppose that's true for any business that has access to a scarce resource. As 
long as others keep seeking access to the broadcast spectrum, even knowing the 
content limitations they will be under, I'm not sure I understand what you are 
constantly complaining about. The point continues to be, it's not a free ride. 
For whatever set of reasons.

> What this tells us is that a broadcast TV license has tremendous value,
> ESPECIALLY in large markets. Despite the high cost of spectrum in the
> TVstation market, the value is so great that it is still possible to
> service the debt and make a higher than U.S. average profit.

So, that's good, right? In spite of your consistent protestations that 
broadcasting is dying, it seems not to be. So make up your mind, Craig. Which 
is it?

> As a result the government is in a difficult position with respect to
> recovering broadcast spectrum. They must BUY back a public resource
> that was originally given to a broadcaster.

Let me see if I got this right. They "must" buy back a resource they allowed 
FOTA broadcasters to use, within the more restrictive guidelines that FOTA 
broadcasters have, and still FOTA broadcast (you claim) is very valuable, and 
the FCC wants to hand this public resource over to greedier walled gardens 
whose rate increases are more than annual inflation. Not to mention, businesses 
which make underhanded deals to freeze out the FOTA broadcasting that your 
claim is still very valuable?

Sounds like a bribe.

By the way, turns out that the "advanced" LTE schemes being developed, those 
that promise download speeds of 500 Mb/s or more, will be aggregating (are you 
ready for this) five 20 MHz channels, for a total of 100 MHz channels. Plus 
MIMO, femtocells, etc.

So, even grabbing the whole extra OTA spectrum that the Genachowski FCC wants 
will only provide at most one advanced LTE channel, for one walled garden. Is 
it a wonder why their commissioned report didn't even mention TV spectrum 
grabbing as a solution?

Bert

 
 
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