September 2008

Wilmington DTV Test Portends Feb Crisis

[Commentary] From the numbers coming out of Wilmington, Jessell is figuring that about 5 percent of the homes that rely on off-air reception for some or all of their TV were either unaware or unprepared for the market's early DTV switch. If that is the case, then we should expect that at least 1.7 million homes will be at a loss on the morning of Feb 18, 2009, the morning after every full-power TV station as a matter of law must turn off its analog transmitter. That's an awful lot of homes. There are many executive producers who would love to attract that many households to their programs. There is no way the FCC and local broadcasters are going to be able to cope with the problems of 3.4 million homes -- more than eight million people -- no matter how hard they try. Broadcasters should begin touting the benefits of digital so that off-air viewers have an incentive to switch to digital well before the analog cut off. Broadcasters need to do more and longer "soft tests," in which they replace the programming on their analog signal with informational graphics. The government needs to permit at least one station in every market to continue broadcasting an analog signal with a graphic after the cut-off. The government should stagger the cut-off dates so that the millions of confused and frustrated viewers don't all take to the phones expressing their confusion and frustration on the same day.

Copps: More Focused DTV-Transition Efforts

Federal Communications Commission member Michael Copps, a driving force behind the FCC's Wilmington digital-transition test, came up with a list of steps the FCC should take in response to lessons learned out of the early analog cutoff, including more field testing, a contingency plan, better education about the need to rescan channels and getting consumer messages out to analog viewers beyond the transition date. In a proposal to FCC Chairman Kevin Martin Friday, Copps said that unless the FCC "sharpens its approach" to the transition, "we face the possibility of enormous consumer disruption Feb 17, 2009 -- now less than 160 days away." Commissioner Copps pointed to the results from Wilmington indicating that "the great majority of residents who sought help in the wake of the switch-over had specific technical problems -- e.g., converter-box-installation issues, antenna or other reception problems -- and sought individualized assistance from the FCC and others." He added, "Generalized PSAs [public-service announcements]" would have done those folks "no good."

Four Noncoms Join Border Stations vs. Bill

Opposition is growing to a bill allowing some broadcasters to continue in analog years beyond the Feb 17, 2009, cutoff date set by Congress. The general managers of four noncommercial stations along the border with Mexico joined 11 commercial stations in opposing a bill that would extend analog broadcasts for five years past the cutoff date. They signed on to a letter sent to the leadership of the House and Senate earlier this week in advance of a digital-TV-oversight hearing next week in the House that will include that topic. Senate Commerce Committee ranking member Kay Bailey Hutchison (R-Texas) proposed allowing -- though not requiring -- stations within 50 miles of the Mexican border to continue in analog until 2014 to ensure that high populations of over-the-air viewers, particularly Spanish-language, still have access to emergency information. Spanish-language stations pushed for the bill, not wanting to lose access to border viewers in both the United States and Mexico.

Sen Klobuchar Warns of DTV 'Cliff Effect'

Sen Amy Klobuchar (D-MN) wrote the Federal Communications Commission and the National Telecommunications and Information Administration to reiterate her concerns about the DTV "cliff effect." She pointed out that 21% of her state relies on over-the-air TV and said the FCC and industry need to educate consumers about the issue. Unlike analog broadcasters, where a weakening signal means an increasingly weak picture, when a digital signal gets weak enough, there is no picture at all. In addition, the coverage areas of digital can vary from analog, as was the case in Wilmington. The solution may be repositioning or upgrading antennas, but for some fraction, it will mean losing access to that TV-station signal. Sen Klobuchar said not enough has been done to educate viewers that some may lose their signals even if they buy new DTV sets or converter boxes.

Sen Klobuchar said she wanted answers to the following questions:

1) What, if anything, have the FCC and NTIA done to make consumers -- particularly rural viewers -- aware of the potential digital cliff phenomenon?

2) What will happen to those viewers who purchase a new television or converter box and nonetheless cannot receive television coverage because of the digital cliff?

3) Have the agencies given any thought as to how to make the people affected by the digital cliff whole, especially those who acted in good faith but nevertheless find themselves without an ability to receive over-the-air television? What contingencies are being considered for this group?

4) What attention did the FCC give to educating consumers in the Wilmington, N.C., test market about digital-cliff issues prior to the switch-over?

5) How does the FCC and/or NTIA plan to quickly share and apply nationally any lessons learned in Wilmington about coverage and technical issues facing consumers?

Senate Commerce Committee to Review Progress of DTV Transition with FCC, NTIA

The Senate Committee on Commerce, Science, and Transportation announces a Full Committee hearing on Oversight of the DTV Transition - Countdown to February 2009, scheduled for Tuesday, September 23, 2008, at 2:30 p.m. With February 17, 2009 less than five months away, the Committee will assess the Federal Communications Commission and the National Telecommunications Information Administration's efforts to promote broadcaster and consumer preparedness, as well as the recent test pilot in Wilmington, North Carolina.

Why Broadband Matters

[Commentary] The Senate Commerce Committee meets September 16 to hear testimony on the consumer benefits of broadband service. The question of the day is ? I could offer a long list of reasons why broadband matters, but the list of reasons is too long to enumerate here because it is over 305 million names long. Broadband matters for every American. Luckily, the Senate's hearing focuses on people rather than pipes. Because even as we come to recognize that broadband networks are the essential communications medium of the 21st century, those who could benefit the most from this economically empowering technology are also those most likely to be left without access because of where they live or how much money they make. The Senate hearing will undoubtedly reach this answer: universal, affordable broadband access is as important to the advancement of the American ideal of equal opportunity in the 21st century as universal access to education and universal phone service was in the last. As broadband becomes more critical for everything from jobs, to education and even participation in modern campaigns - millions do not have access to affordable high-speed broadband - or any broadband choices at all. We have made great progress in extending broadband's reach, but, unfortunately, America faces a lingering broadband gap that is unlikely to be bridged by market forces alone. Now is the time for government leadership -- for making broadband as universal as telephone service is today and bringing its benefits to all Americans as soon as possible.

The White Space Lobbying Race Pits Internet Vs. Telecom Firms

It looks like static on your old analog TV, but to Microsoft, Google and other tech giants, those unused channels between local broadcast stations represent the future of the Internet. A coalition of tech companies is promising a new generation of wireless offerings and faster, cheaper Internet services if the government frees up chunks of radio-wave spectrum being abandoned in the transition to digital TV. As TV broadcasters switch to digital signals that take up a different slice of the radio-wave spectrum, they'll leave behind airwaves used now for analog signals. A coalition of tech companies hopes to use those frequencies for a slew of wireless devices and services -- everything from Internet-connected cars to interactive TV on the go. That vision hinges on a report the Federal Communications Commission plans to issue in the next few weeks. After nearly a year of research, the FCC is set to define how wireless networks and devices can tap into the spectrum without messing with TV signals and other communication systems that use nearby frequencies. Earlier tests on prototype devices uncovered some glitches, but technology firms say those bugs have been fixed.

Study: Using Data for Targeted Ads a Black Cloud

According to a study by the Pew Internet & American Life Project, 68% of those engaged in the practice of storing data online or using Web-based software programs were "very" concerned about advertisers using that information to target ads to them. That was an even greater concern than the prospect of their files being turned over to the government (49% were very concerned). Targeted advertising came in third among the data policies of most concern to those using cloud services behind companies selling their files to others (90% very concerned) and using their information or images for marketing campaigns (80%).

Strengthening oversight of the Universal Service Fund

The Federal Communications Commission has released a Notice of Inquiry seeking comment on ways to further strengthen management, administration, and oversight of the Universal Service Fund, how to more clearly define the goals of the USF, and how to identify additional quantifiable performance measures that may be necessary. The Commission is also seeking comment on whether, and to what extent, the FCC's oversight of the USF can be improved. Commissioner Michael Copps said, "Only with the Commission's vigilance and scrutiny, along with the responsible use of monies by USF recipients, will the Fund be able to continue its successes in the future."

Proposed Fourth Quarter 2008 Universal Service Contribution Factor

The Federal Communications Commission's Office of Managing Director has proposed that the universal service contribution factor for the fourth quarter of 2008 be 0.114 or 11.4 percent. Contributions to the federal universal service support mechanisms are determined using a quarterly contribution factor calculated by the FCC. The Commission calculates the quarterly contribution factor based on the ratio of total projected quarterly costs of the universal service support mechanisms to contributors' total projected collected end-user interstate and international telecommunications revenues, net of projected contributions.

Benton

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