Bill calls for DTV transition in 2008
Rep. Joe Barton (R-Texas), chairman of the House Energy & Commerce Committee, has introduced draft legislation that would require television broadcasters to clear valuable spectrum in the 700 MHz band at the end of 2008, to complete the transition to digital television (DTV).
Currently, broadcasters use the airwaves to transmit analog television signals. Under existing law, broadcasters are not required to vacate the 700 MHz until 85% of all households can receive digital signals–a threshold that many industry observers believe would not be met for decades.
Released on Friday, Barton’s legislative proposal–co-sponsored by Rep. Fred Upton (R-Mich.)–would establish a firm deadline of Dec. 31, 2008, for broadcasters to clear the spectrum, which would allow the 60 MHz to be auctioned for other uses, such as wireless broadband services. The legislation calls for the FCC to conduct the auction by April 1, 2008.
“The current 85 percent penetration test guarantees only confusion and uncertainty,” Barton said in a prepared statement. “It is far wiser to plan for the coming change than to sit back and wait for television sets to go dark.”
Proceeds from the auction are important, because Congress is trying to fill a $4.8 billion gap in the budget. Estimates of the value of the 700 MHz spectrum vary widely, with some projections as high as $27 billion and others as low as $9 billion, according to a Medley Global Advisors report released Monday.
The fact that so much spectrum would be available in the market in a short time period makes it difficult to estimate the full budget impact the proposal would have–and the potential for depressed prices could attract new bidders to the auction arena, the Medley Global Advisors report states.
“The 60 MHz of broadcast spectrum earmarked for sale by the DTV bill released on Friday is enough additional supply to depress prices in pending auctions, including the upcoming sale of airwaves for Advanced Wireless Services (AWS),” the report states. “Falling prices and additional spectrum may attract to the bidding cable companies eager to make good on their threat to compete in the wireless market.”
Another aspect of Barton’s draft legislation would require analog-television makers to clearly mark that their TVs will be rendered obsolete on Jan. 1, 2009, without adaptive technology that will enable receipt of digital signals. Although the notion of subsidized digital-to-analog converters has been debated on Capitol Hill in recent years, the Bush administration has opposed such proposals. Barton’s proposal does not include any provisions for a subsidy.
Barton’s draft legislation will be the subject of a hearing tomorrow, beginning a process that Barton hopes will result in a vote before Congress recesses in August.
“There will be a hearing tomorrow, but there’s no schedule after that,” committee spokesman Terry Lane said.
Meanwhile, in the Senate, reports indicate that Sen. Ted Stevens (R-Alaska) hopes to release draft DTV legislation as soon as next week.
