FCC official provides more details on possible broadcasting participants
Federal Communications Commission Media Bureau Chief William Lake gave a few more details on which broadcasters may participate in incentive auctions to make more spectrum available for wireless use, saying some stations have inquired about possibly sharing channels. Lake and media analyst Mark Fratrik, vice president of BIA Kelsey, also said that some investors have been buying up broadcast stations in recent years with the intent of offering their spectrum for auction as part of the proposal authorized by Congress in February.
Under the process, broadcasters that choose to participate will offer a bid for what it will take for them to give up all their spectrum and get out of the business, give up of their spectrum and share a channel with another broadcaster, or trade their UHF channel spectrum for a lower-quality VHF channel. "There are purchases of television stations in the most recent few years ...in anticipation of the auctions," Fratrik said at the National Association of Broadcasters annual show. "We've seen prices of television stations that were sold only two or three years earlier go up by several hundred percent in large markets...These tend to be independent stations that are obviously players on the reverse auctions. So I think you're having an impact already, and it's a positive one." But he added that there's still much uncertainty and concern among broadcasters about the "rules of the road" and how the repacking process will work, which will involve moving broadcast stations that plan to stay in business in order to create a chunk of spectrum that can be auctioned for wireless providers.