[opendtv] Re: Twang's Tuesday Tribune (Mark's Monday Memo) 2004April20

  • From: "John Willkie" <jmwillkie@xxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Mon, 26 Apr 2004 20:30:35 -0700

Run those numbers through a spreadsheet for a few minutes and you find out
that the 5% is the REASON there will never be those kinds of services, at
least at affordable prices.  It's from THE FIRST DOLLAR of revenue, and to
the last.  Even labor doesn't work that way: you can keep labor costs low
when you start, and you can achieve productivity gains as you refine
processes.

John Willkie

-----Original Message-----
From: opendtv-bounce@xxxxxxxxxxxxx
[mailto:opendtv-bounce@xxxxxxxxxxxxx]On Behalf Of Tom Barry
Sent: Monday, April 26, 2004 4:54 PM
To: opendtv@xxxxxxxxxxxxx
Subject: [opendtv] Re: Twang's Tuesday Tribune (Mark's Monday Memo)
2004April20


If there were services to sell and paying customers to buy them I
don't see how 5% would be enough to stop it.  It actually seems an
alternative to spectrum auctions for at least some purposes since the
government would be collecting it.

And it would at least be something useful that didn't rely on
must-carry, yet accelerated the date when 85% of whoever could receive
DTV.

So I rather like the 5% tithe.

- Tom


Craig Birkmaier wrote:

> At 9:21 AM -0400 4/23/04, John Shutt wrote:
>
>>Frank,
>>
>>I must take exception to this statement.  OTA DTV broadcasters CAN NOT use
>>free spectrum for mobile wireless data or multimedia services.
>>
>>The FCC and Congress made it very clear that if a broadcaster uses his/her
>>spectrum for any purpose other than free services, then 10% of the gross
>>revenues must be paid to the Government.
>>
>>True, it's not a one time purchase of spectrum, but it is an ongoing
revenue
>>stream to the Government.
>>
>>John Shutt.
>
>
> Just a nit, but it is only 5%.
>
> Furthermore, if the service is offered in the free & clear, it will
> be easy to argue that this is just another broadcast service. I
> discussed this with FCC commissioners and communications lawyers at
> the time the order was issued. What's the difference between a PID
> with an ATSC approved format delivering a TV channel and a PID with a
> low resolution streaming video of the same content targeted at a
> mobile audience?
>
> The important language in the FCC order relates to the use of the
> ancillary bits to sell subscription services.  If you are charging
> money for the service you must give the government 5%. If you give it
> away, it is open to interpretation.
>
> Regards
> Craig
>
>
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