Federal Communications Commission Seeks Comment On Widelity Report And Catalog Of Potential Expenses And Estimated Costs

The Spectrum Act establishes a $1.75 billion TV Broadcaster Relocation Fund to be used for reimbursement of eligible relocation costs. In the Broadcast Television Incentive Auction notice of public rulemaking, the Commission sought comment on the types of costs broadcasters and multichannel video programming distributors (MVPDs) are likely to incur and how to determine whether such costs are “reasonable” for purposes of reimbursement under the statute.

Comments in response to the NPRM suggested that the Commission establish cost estimates for categories of reimbursable expenses. The Commission engaged Widelity to aid the Commission in understanding the process and costs associated with the post-incentive auction transition. Widelity has produced a report, “Response to the Federal Communications Commission for the Broadcaster Transition Study Solicitation” along with a “Catalog of Potential Expenses and Estimated Costs” (Appendix B to the Report).

The Widelity Report recognizes that the post-auction repacking process will be complex and that the complexity will vary from station to station. Nevertheless, the Report concludes that, despite the significant challenges that the industry will face, “[w]ith cooperation as well as patience, creative problem solving, and guidance from the FCC and industry groups such as the National Association of Broadcasters, Association of Public Television Stations, and state broadcast associations, the transition can be achieved with the desired outcomes.”

We seek additional input from interested parties on the report and particularly on the Catalog of Potential Expenses and Estimated Costs. We now seek additional comment from industry participants on these suggested prices, as well as any comments on the report and any further comments on the categories of costs included. A final Catalog of Eligible Expenses and Estimated Costs will be released prior to the auction, and we believe the Catalog will provide useful guidance to broadcasters and MVPDs as they navigate the post-auction transition.