TV Relocation Fund Likely To Fall Far Short

The $1.75 billion set aside by the government to pay the expenses of TV broadcasters forced to change channels because of the Federal Communications Commission’s upcoming spectrum repack will fall short by as much as $1.25 billion, according to an estimate given during a spectrum auction and repack presentation at the National Association of Broadcasters Show. While the figure is simply an approximation based on FCC simulations of the channel repack and other factors, it underscores the seriousness of the problems that will soon face broadcasters and the agency as it advances its effort to free up TV spectrum for wireless service companies.

During the “TV Spectrum Auction & Repack Update” program, Ari Meltzer, an attorney with Wiley Rein, a Washington law firm, and GatesAir technology adviser Jay Adrick, tag teamed the topics of the incentive auction and spectrum repack. Both presentations revealed storm clouds ahead.“The numbers [to pay the cost of moving broadcasters to new channel assignments] exceed $1.75 billion by a fairly significant amount,” Adrick said. On the high side, the shortfall in the TV Broadcaster Relocation Fund will be between $1 billion and $1.25 billion based on about 1,200 of the nation’s 1,600 Class A and full-power UHF stations being required to repack to achieve the upper target of 120 MHz of cleared spectrum, said Adrick. If the FCC simply reclaims 84 MHz of TV spectrum, its lower target, the relocation fund will fall short by about $250 million, he added.