[opendtv] Re: Broadcasters Nix Low-Power DTS Proposal

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Thu, 4 Feb 2010 06:52:44 -0500

At 9:07 PM -0800 2/3/10, Dale Kelly wrote:
Oh if only it were so simple as investing in new transmitters......
In addition to that new transmitter, coupled with a requirement to continue operating the old transmitter for several years, many stations had to virtually duplicate the entire transmission facility by doubling studio to transmitter link capacity, enlarging or constructing new transmitter buildings, adding either new or upgrading towers and upgrading utility power and emergency generator plants. To cap that off, the major investment in new transmitting antenna and transmission line was often staggering (many of these upgrades on towers as tall as 2000ft!).
We're talking Millions....

And we are also talking about an industry with annual revenues in excess of $15 Billion per year, with many stations operating with profit margins above 20% and MOST above 10%. In other words, all of this stuff has already been paid for, except perhaps at highly leveraged station groups.

Add to this the new revenue streams from retransmission consent and the picture does not look so bleak.

Now consider the possibility that stations could off-load the operation of the utility, including the power bill, and the possibility that the telcos would pay billions for another 100 MHz of beach front spectrum.

The Broadband Taskforce has alluded to the possibility that some broadcasters might take the money (for their spectrum) and run. What if the money was used to buy and redeploy all of the transmission assets owned by all broadcasters in the country? What if you ended up with a new transmission infrastructure that improved coverage and was paid for via retransmission consent fees?

Regards
Craig


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