[opendtv] Moonves Doesn't Rule Out Selling Spectrum | Broadcasting & Cable
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Thu, 11 Dec 2014 10:13:37 -0500
> http://www.broadcastingcable.com/news/currency/moonves-doesnt-rule-out-selling-spectrum/136279
>
> <http://www.broadcastingcable.com/news/currency/moonves-doesnt-rule-out-selling-spectrum/136279>
>
> Moonves Doesn't Rule Out Selling Spectrum
>
> Speaking at the 42nd annual UBS media conference this week, CBS CEO Les
> Moonves said that given some of the figures being proposed for possible
> station values in an incentive auction, he could not reject the possibility
> of giving up some spectrum.
>
> In fact, he said it could present a "great opportunity" for CBS.
>
> Moonves said that he was seeing numbers that indicated spectrum could be
> worth in the $200 million range per station—the FCC has provided a range of
> prices, conceding they were high-end estimates. It is conducting outreach
> efforts
> <http://wireless.fcc.gov/incentiveauctions/learn-program/docs/ia-opportunities-book.pdf>
> to broadcasters, including a chart with some median high-end pricing. New
> York, for example, is $280 million, though that is a starting price, not what
> any particular broadcaster might be willing to sell at, which will determine
> the auctual payout.
>
> But the success of the AWS-3 auction could boost the value of broadcast
> spectrum as well, some have theorized. That auction, which is still underway,
> has topped $43 billion for likely less spectrum (65 MHz vs. probably at least
> 84 MHz of broadcast spectrum and perhaps more).
>
> Moonves said that selling spectrum could affect a CBS station’s ability to
> broadcast quality HD. That would be if CBS sold spectrum but remained on the
> air sharing a channel and thus cutting in half the amount it would have. But
> if CBS affiliates would likely be keeping their full spectrum to air all
> those big ticket sporting events—sports, in particular, is HD
> bandwidth-hungry—he said that giving up spectrum could be an option for the
> CW side of a CBS duopoly.
>
> He noted that nothing happens till 2016—when the broadcast incentive auction
> is currently scheduled to be held—but “unlike other station groups we’re not
> saying it’s an absolute no when you’re talking about those numbers.”
>
> "With CBS weighing auction participation maybe NAB will retain an
> auction-expert economist to help broadcasters get true market prices instead
> of letting the FCC manipulate the prices down with pop scoring and DRP," said
> Preston Padden, executive director of the Expanding Opportunities for
> Broadcasters Coalition (EOBC).
>
> That is a reference to EOBC's criticism of the way the FCC has proposed to
> value stations in the auction, including population (pop) in the calculation,
> and using dynamic reserve pricing (DRP), which Padden has said
> <http://www.broadcastingcable.com/news/washington/padden-dynamic-reserve-approach-could-doom-auction/136044>
> could doom the auction.
>
> Jon Lafayette contributed to this report.
Other related posts:
