American Cable Association: FCC Should Not Rush ATSC 3.0

Small and medium-sized cable operators say the Federal Communications Commission is nowhere near ready to let broadcasters start broadcasting in the ATSC 3.0 transmission standard and needs to consider the costs to smaller operators, potentially in higher retransmission fees. In comments to the FCC on the request by commercial and noncommercial TV stations to start rolling out the service while simulcasting in the current format—ATSC 3.0 is not compatible with current TV sets—the American Cable Association said the transition is more than simply filling a switch, pointing out that most viewers are watching TV stations on an multichannel video programming distributor (MVPD, or pay-TV) rather than over the air.

"Depending on how ATSC 3.0 is implemented, the transition could have a dramatic effect on small cable operators, requiring significant new capital outlays and reducing capacity on cable systems that could have been used for other programming or for broadband Internet capacity," said ACA. ACA also suggests that broadcasters will try to pass along the costs of the ATSC 3.0 transition via retrans fees it charges MVPDs. "The dysfunctional retransmission consent marketplace gives broadcasters significant leverage in negotiations with small cable operators—leverage amplified by legacy rules governing the market. This means that, if the costs of this transition are allocated solely by 'the market,' as broadcasters suggest, it is inevitable that these burdens will fall disproportionately on small cable operators. But these are the very businesses that would be least able to absorb these costs."