[opendtv] Re: News: The Winds of Spectrum War

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Mon, 26 Oct 2009 12:43:15 -0400

At 6:31 PM -0400 10/24/09, Albert Manfredi wrote:
Craig Birkmaier wrote:


 Sounds like the battle lines are being drawn.
 Broadcasters may have one last chance to feast at
 the public trough, essentially letting those who
 need the spectrum they occupy to pay them to
 vacate.

Right. Let's build those condos on the Grand Canyon.

Get real Bert.

The REAL issue here is that broadcasters were allowed to establish ownership rights in a public resource. The FCC and the politicians screwed up early in the last century allowing a market to be created for broadcast licenses. Over the decades broadcasters established billions in "book value" in the spectrum that they were either GIVEN by the government, or purchased from a broadcaster that was given the spectrum. In the last decade many broadcasters and the media conglomerates have started to write off the value of THEIR spectrum assets.

A "deal" that would allow the broadcasters to be compensated for vacating some of the spectrum they occupy could SAVE free-to-air broadcasting, providing the necessary financial resources to build out an appropriate new transmission infrastructure and pay off the tremendous debt burdens that many broadcasters are now saddled with.

So the real issue becomes what is the most appropriate use of the spectrum that broadcasters would still use.

In my opinion, it should be a service that delivers EDTV (e.g. 854 x 480) quality to fixed and mobile receivers. Better than the NTSC service that has now been retired, but less capable than the MPVDs that will deliver HDTV for the next few years until the Internet scales up to replace them.

After all is said and done, it looks like John Shutt may have been right all along.

Way back at the start of the digital transition, we were arguing about what some FCC order or other was trying to get across, and John said that there was nothing in that FCC order that required broadcasters to continue transmitting even just the primary TV stream on their allocated frequency channel, AFTER the transition was finished. They could do something totally non-TV with their spectrum, as the order was worded.


I do not believe this to be true. But there is no question that the broadcasters do "own" the spectrum they use, and this must be undone. The revenues from the spectrum that is freed up can be used to compensate broadcasters for a portion of the value they still have on their books for their broadcast licenses. When all of the broadcast license holders have been compensated, they should pay to use the spectrum like everyone else.

If the economics work out FTA broadcasting will survive. Maybe the public broadcasters should be responsible for operating the transmission infrastructure, although I still prefer the spectrum utility idea.

Regards
Craig




Hmmm. How very prescient. I'm impressed.

Bert
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