The DTV The DTV TransitionTransition

Jane MagoJane Mago

National Association of BroadcastersNational Association of Broadcasters

Senior Vice President and General Counsel Senior Vice President and General Counsel

Law & Regulatory PolicyLaw & Regulatory Policy

What is NAB?What is NAB?• The National Association of BroadcastersThe National Association of Broadcasters

– 150 people at 1771 N St. NW in Washington 150 people at 1771 N St. NW in Washington DCDC

• NAB is a full-service trade association which NAB is a full-service trade association which represents the interests of free, over-the-air represents the interests of free, over-the-air radio and television broadcasters.radio and television broadcasters.– 7043 Radio Station Members7043 Radio Station Members– 1127 Television Station Members1127 Television Station Members

The DTV Transition is The DTV Transition is ComplexComplex

• The process began in 1987The process began in 1987• Many stakeholders in the transitionMany stakeholders in the transition• DTV transition is now accelerating DTV transition is now accelerating

at a rapid paceat a rapid pace

Advantages of DTVAdvantages of DTV

• More efficient use of spectrumMore efficient use of spectrum• Better quality signal, including Better quality signal, including

cinema-like “high definition” or cinema-like “high definition” or HDTV programmingHDTV programming

• Allows for multicastingAllows for multicasting• Will free up spectrum for other Will free up spectrum for other

uses, including public safety and uses, including public safety and wireless broadbandwireless broadband

Old DTV Transition “Soft” Old DTV Transition “Soft” DateDate

• The Balanced Budget Act of 1997 The Balanced Budget Act of 1997 (BBA) established a soft guideline (BBA) established a soft guideline for the DTV transition:for the DTV transition:– December 31, 2006 or later if 85% in December 31, 2006 or later if 85% in

market have yet to receive digital market have yet to receive digital signalsignal

New DTV Hard DateNew DTV Hard Date

• DTV Television Transition and Public DTV Television Transition and Public Safety Act of 2005 (part of Deficit Safety Act of 2005 (part of Deficit Reduction Act) signed into law by the Reduction Act) signed into law by the PresidentPresident

– Sets hard deadline for cessation Sets hard deadline for cessation of analog broadcasts at of analog broadcasts at February 18, 2009February 18, 2009

Now that the Hard Date is Set …Now that the Hard Date is Set …

How do we finish going from: How do we finish going from:

0110010111011011010011001011101101101011011100110101000101101110011010100010

?

DTV Penetration EstimatesDTV Penetration Estimates

Digital BuildoutDigital Buildout

• 1550 Stations1550 Stations

• 211 markets211 markets

• Reaching 99.9% American Reaching 99.9% American PopulationPopulation

Television Spectrum PlanTelevision Spectrum Plan

Ch. 2 - 69

Ch. 2 - 51 (All DTV) 108 MHz

AuctionPublicSafety

Channel ElectionChannel Election• After the transition, all digital After the transition, all digital

television stations will be relocated to television stations will be relocated to the “core spectrum” consisting of the “core spectrum” consisting of current television channels 2 through current television channels 2 through 51 (54-698MHz) 51 (54-698MHz)

• FCC has adopted a seven-step FCC has adopted a seven-step channel election and repacking channel election and repacking process to help orchestrate the process to help orchestrate the reallocation reallocation

Broadcast Spectrum Shrinks by 108 Broadcast Spectrum Shrinks by 108 MHzMHz

2-4

Channels 52-69

5-6 7-13

14-69

Many unresolved issuesMany unresolved issues

• 73 Million remaining analog 73 Million remaining analog televisions, representing 22 million televisions, representing 22 million householdshouseholds

• MulticastingMulticasting• Downconversion of broadcasters’ Downconversion of broadcasters’

signalsignal• Unlicensed devices in the broadcast Unlicensed devices in the broadcast

spectrumspectrum

On February 18, 2009, 73 million On February 18, 2009, 73 million analog televisions will go darkanalog televisions will go dark

Our Deepest Concern:

Our viewers,

Congress’ constituents

Education CampaignEducation Campaign

• Millions of Americans know little or nothing Millions of Americans know little or nothing about the DTV transitionabout the DTV transition

• NAB is committed to educate the public NAB is committed to educate the public about the DTV transitionabout the DTV transition

• Broadcasters will be working together on a Broadcasters will be working together on a nationwide campaignnationwide campaign

• Doing their partDoing their part• It takes all stakeholdersIt takes all stakeholders• NTIA given $5 million for consumer NTIA given $5 million for consumer

education and program administration costseducation and program administration costs

Converter Box SubsidyConverter Box Subsidy• NTIA will implement program whereby households NTIA will implement program whereby households

may obtain coupons that can be applied toward the may obtain coupons that can be applied toward the purchase of digital-to-analog converter boxespurchase of digital-to-analog converter boxes

– Coupon value of $40Coupon value of $40– Limit of two coupons per householdLimit of two coupons per household– Coupons given on first-come-first-served basisCoupons given on first-come-first-served basis– Households to make coupon requests between Households to make coupon requests between

January 1, 2008 and March 31, 2009 for delivery January 1, 2008 and March 31, 2009 for delivery via USPS.via USPS.

– Coupons expire after 3 monthsCoupons expire after 3 months– Maximum $1.5 billion for coupon programMaximum $1.5 billion for coupon program

Remaining Issues:Remaining Issues:

• MulticastingMulticasting– With digital, broadcasters will provide With digital, broadcasters will provide

more channels, more local contentmore channels, more local content– Issue likely to be revisited by the FCCIssue likely to be revisited by the FCC

DownconversionDownconversion

• Broadcasters have spent billions of dollars Broadcasters have spent billions of dollars converting to digitalconverting to digital

• Some cable operators want to downconvert Some cable operators want to downconvert at the head-end for analog customersat the head-end for analog customers

• This would degrade broadcaster signal for This would degrade broadcaster signal for every cable subscriber – even those with a every cable subscriber – even those with a DTV set will receive an inferior signalDTV set will receive an inferior signal

• Why were broadcasters required to offer a Why were broadcasters required to offer a digital signal if millions of viewers cannot digital signal if millions of viewers cannot see it?see it?

Unlicensed DevicesUnlicensed Devices• Current FCC filingCurrent FCC filing• Very concerned about interferenceVery concerned about interference• Digital signal strength/reception issues still Digital signal strength/reception issues still

murkymurky• At the minimum: At the minimum:

– We should wait until after the DTV transition is We should wait until after the DTV transition is complete in February 2009complete in February 2009

– We need real world testingWe need real world testing

• Proposed Telecom Bill from Sen. Stevens would Proposed Telecom Bill from Sen. Stevens would require FCC to complete rulemaking within 270 require FCC to complete rulemaking within 270 days with rules that allow unlicensed devices to days with rules that allow unlicensed devices to operate in the broadcast television frequenciesoperate in the broadcast television frequencies

Questions?Questions?