Broadcasters sweat spectrum auction costs ahead of March 26 hearing

TV stations could be stuck with a big moving bill when the Federal Communications Commission rearranges the TV dial following the broadcast incentive auction of wireless spectrum planned for first quarter 2016. Congress set aside $1.75 billion in the law to help stations pay for the cost of moving from one frequency to another. But that may fall short by nearly a billion dollars if as many as 95 percent of TV stations end up being moved onto a new channel, according to a National Association of Broadcasters estimate using the FCC’s own methodology.

“It’s our fear that it may take as much as $2.6 billion to compensate all the TV stations that will be repacked….forcing TV stations to pay hundreds of dollars out of pocket just to stay in business,” said Dennis Wharton, NAB’s executive vice president of communications. Getting more money for repacking may ultimately fall to Congress. Rep. Kevin Yoder (R-KS) asked FCC Chairman Tom Wheeler during a House appropriations subcommittee hearing if there was anything the FCC could do about it. “1.75 billion is the statutory number we have to live with… we can’t redirect funds,” said FCC chairman Tom Wheeler. Congress will turn back to the spectrum auction on March 26 after a marathon series of hearings on the FCC’s net neutrality order. Ahead of the hearing, House commerce committee staff met with a number of groups, including Rick Kaplan, NAB’s executive vice president and general counsel, to talk about spectrum issues.