FCC Allows Post-Auction Channel Share Deals

[Commentary] TV broadcasters who opt to sell their spectrum in the Federal Communications Commission's incentive auction in 2016 may enter in channel sharing arrangements after the auction, the FCC ruled on June 12. Prior to the ruling, stations had to cut such deals prior to the auction. Channel sharing allows a station to sell its spectrum, but stay in the broadcasting business by doubling up with another station on another channel. The FCC placed two conditions on post-auction sharing deals.

First, it said, broadcasters must inform the agency of their intention to share prior to the auction and, second, they must execute their sharing deals by the date they would otherwise have to relinquish their license. Broadcasters who enter in post-auction sharing deals will be entitled to the same cable carriage rights as those who strike pre-auction deals, the FCC said. The agency also noted, however, that only broadcasters with pre-auction sharing deals will be exempt from the prohibition against talking to one another before and during the auction. The FCC action was a win for the Expanding Opportunities for Broadcasters Coalition, which represents stations that intend to sell in the auction and had petitioned for the changes. Citing the EOBC, the FCC said the modifications will encourage more stations to participate in the auction -- ones who do not find a channel sharing partner before the auction begins.