The DTV Transition Jane Mago National Association of Broadcasters Senior Vice President and General Counsel Law & Regulatory Policy

What is NAB? The National Association of BroadcastersThe National Association of Broadcasters –150 people at 1771 N St. NW in Washington DC NAB is a full-service trade association which represents the interests of free, over-the-air radio and television broadcasters.NAB is a full-service trade association which represents the interests of free, over-the-air radio and television broadcasters. –7043 Radio Station Members –1127 Television Station Members

The DTV Transition is Complex The process began in 1987The process began in 1987 Many stakeholders in the transitionMany stakeholders in the transition DTV transition is now accelerating at a rapid paceDTV transition is now accelerating at a rapid pace

Advantages of DTV More efficient use of spectrumMore efficient use of spectrum Better quality signal, including cinema- like “high definition” or HDTV programmingBetter quality signal, including cinema- like “high definition” or HDTV programming Allows for multicastingAllows for multicasting Will free up spectrum for other uses, including public safety and wireless broadbandWill free up spectrum for other uses, including public safety and wireless broadband

Old DTV Transition “Soft” Date The Balanced Budget Act of 1997 (BBA) established a soft guideline for the DTV transition:The Balanced Budget Act of 1997 (BBA) established a soft guideline for the DTV transition: –December 31, 2006 or later if 85% in market have yet to receive digital signal

New DTV Hard Date DTV Television Transition and Public Safety Act of 2005 (part of Deficit Reduction Act) signed into law by the PresidentDTV Television Transition and Public Safety Act of 2005 (part of Deficit Reduction Act) signed into law by the President –Sets hard deadline for cessation of analog broadcasts at February 18, 2009

Now that the Hard Date is Set … How do we finish going from: How do we finish going from: ?

DTV Penetration Estimates

Digital Buildout 1550 Stations1550 Stations 211 markets211 markets Reaching 99.9% American PopulationReaching 99.9% American Population

Television Spectrum Plan Ch Ch (All DTV) 108 MHz Auction Public Safety

Channel Election After the transition, all digital television stations will be relocated to the “core spectrum” consisting of current television channels 2 through 51 ( MHz)After the transition, all digital television stations will be relocated to the “core spectrum” consisting of current television channels 2 through 51 ( MHz) FCC has adopted a seven-step channel election and repacking process to help orchestrate the reallocationFCC has adopted a seven-step channel election and repacking process to help orchestrate the reallocation

Broadcast Spectrum Shrinks by 108 MHz 2-4 Channels

Many unresolved issues 73 Million remaining analog televisions, representing 22 million households73 Million remaining analog televisions, representing 22 million households MulticastingMulticasting Downconversion of broadcasters’ signalDownconversion of broadcasters’ signal Unlicensed devices in the broadcast spectrumUnlicensed devices in the broadcast spectrum

On February 18, 2009, 73 million analog televisions will go dark Our Deepest Concern : Our viewers, Congress’ constituents

Education Campaign Millions of Americans know little or nothing about the DTV transitionMillions of Americans know little or nothing about the DTV transition NAB is committed to educate the public about the DTV transitionNAB is committed to educate the public about the DTV transition Broadcasters will be working together on a nationwide campaignBroadcasters will be working together on a nationwide campaign Doing their partDoing their part It takes all stakeholdersIt takes all stakeholders NTIA given $5 million for consumer education and program administration costsNTIA given $5 million for consumer education and program administration costs

Converter Box Subsidy NTIA will implement program whereby households may obtain coupons that can be applied toward the purchase of digital-to-analog converter boxesNTIA will implement program whereby households may obtain coupons that can be applied toward the purchase of digital-to-analog converter boxes –Coupon value of $40 –Limit of two coupons per household – Coupons given on first-come-first-served basis –Households to make coupon requests between January 1, 2008 and March 31, 2009 for delivery via USPS. – Coupons expire after 3 months –Maximum $1.5 billion for coupon program

Remaining Issues: MulticastingMulticasting –With digital, broadcasters will provide more channels, more local content –Issue likely to be revisited by the FCC

Downconversion Broadcasters have spent billions of dollars converting to digitalBroadcasters have spent billions of dollars converting to digital Some cable operators want to downconvert at the head-end for analog customersSome cable operators want to downconvert at the head-end for analog customers This would degrade broadcaster signal for every cable subscriber – even those with a DTV set will receive an inferior signalThis would degrade broadcaster signal for every cable subscriber – even those with a DTV set will receive an inferior signal Why were broadcasters required to offer a digital signal if millions of viewers cannot see it?Why were broadcasters required to offer a digital signal if millions of viewers cannot see it?

Unlicensed Devices Current FCC filingCurrent FCC filing Very concerned about interferenceVery concerned about interference Digital signal strength/reception issues still murkyDigital signal strength/reception issues still murky At the minimum:At the minimum: –We should wait until after the DTV transition is complete in February 2009 –We need real world testing Proposed Telecom Bill from Sen. Stevens would require FCC to complete rulemaking within 270 days with rules that allow unlicensed devices to operate in the broadcast television frequenciesProposed Telecom Bill from Sen. Stevens would require FCC to complete rulemaking within 270 days with rules that allow unlicensed devices to operate in the broadcast television frequencies

Questions?