Broadcasters seeking compensation for 600 MHz changes

Broadcasters participating in a consultation on moving 600 MHz spectrum from its role of carrying television signals to mobile usage are intent on avoiding the kind of costs borne by the industry as a result of the 2011 conversion from analog to digital over-the-air TV. In a submission posted on Industry Canada's website, the Canadian Association of Broadcasters (CAB) said broadcasters were responsible for 100 per cent of the costs of the 2011 digital transition. It said broadcasters spent $113 million on the equipment that changeover required. While broadcasters were not compensated, the CAB noted the government took in $5.27 billion from the auction of 700 MHz spectrum, which was made available as a result of the digital transition. For any upcoming provision of 600 MHz spectrum for mobile services, the CAB said 100 per cent of broadcasters' costs related to the loss of this bandwidth should be reimbursed. It added that a support fund for local broadcasters should be created from money made from an auction of 600 MHz spectrum. "Local television is challenged financially and requires the financial support that spectrum auction proceeds could provide," it said in its submission. It added that a sufficient amount of spectrum for carrying over-the-air (OTA) television has to be ensured, noting the CRTC's recent decision to support the continuation of OTA television services. A filing from CBC/Radio Canada said it "opposes any steps aimed at the repurposing of the 600 MHz band at this time." The public broadcaster argued that it would be an unfair burden for broadcasters, noting that it already spent more $60 million in the previous digital transition, which it received a one-year extension on for more than 20 markets. It said the repurposing of 600 MHz spectrum would require it to write off its investments in six stations that use this bandwidth and require at least $1.8 million in new spending to put those channels on different frequencies. CBC also said change in use for 600 MHz could result in the requirement for "significant re-arrangements of the OTA television environment and create yet more inconvenience for consumers," who have already had to update equipment for receiving over-the-air signals. It said most stations would be forced to new locations on the channel dial, and many might become unavailable in certain areas. CBC said there is a lack of evidence that 600 MHz spectrum is needed for mobile services, "especially in light of the proliferation of Wi-Fi in virtually all urban centres." Companies like BCE Inc. and Rogers Communications Inc., which have stakes in both wireless services and TV broadcasting, said they favour the use of 600 MHz for mobile usage while advocating that station operators be compensated for their costs in the changeover, and that adequate spectrum for over-the-air TV be maintained. Bell called for 600 MHz auction funds to be used to support TV stations. "The auctioning off of this spectrum will create a unique opportunity for the Government to provide financial support for local television stations that are being displaced as a result of the harvesting of the 600 MHz spectrum for mobile use at a time when the financial struggles of local television stations across the country are well documented," Bell said in its comments. It added that such an approach is being used toward the broadcasting industry in the United States as it eyes 600 MHz spectrum for use by mobile-service providers. Industry Canada had said it plans to work with U.S. authorities on a “multi-year process” to make 600 MHz spectrum available for wireless service providers. A 600 MHz auction is expected to happen in the U.S. in early 2016, the Federal Communications Commission (FCC) said in an October post on its website. Rogers said in its submission that co-ordinating with the U.S. on the repurposing of 600 MHz spectrum "will allow Canada to benefit from the ecosystem and economies of scale that will develop for this band in the U.S." Rogers called for a implementation period ranging from 18 months to four years for affected stations to adjust to the changes in the mandated use of 600 MHz spectrum. It also said broadcasters should be fully compensated for changes they need to make and that a spectrum auction could raise the money needed for this. In its filing, Telus Corp. called the current use of 600 MHz for over-the-air TV "time limited" and said that "vast majority of Canadians would support the repurposing of 600 MHz spectrum to mobile service from OTA." Telus also urged Industry Canada to work with U.S. officials to minimize interference between different operators on the 600 MHz band, noting that 80 per cent of the Canadian population is adjacent to the U.S. border. Shaw Communications Inc. said in its comments that it supports the government's move to repackage 600 MHz spectrum for mobile use, but also called for full reimbursement to broadcasters for their costs. It also said measures should be taken to ensure that the coverage area of digital channels is not smaller after the changeover. Wind Mobile said it considers 600 MHz "beachfront " spectrum because it is optimal for allowing a newer carriers like itself to expand. It said this band is good for penetrating buildings and "ideal for cost-effective deployment of networks to support the provision of data-intensive mobile broadband services in both urban and rural areas." Wind said incentives being offered in the U.S. to get broadcasters to give up spectrum in this band voluntarily could work in Canada, but it added that measures need to be taken to ensure incumbent wireless operators, some of which also own TV stations, do not drive the prices out of reach of newer entrants. — With reporting by Derek Abma at dabma@thewirereport.ca and editing by Peter Henderson at phenderson@thewirereport.ca

Broadcasters seeking compensation for 600 MHz changes

News | March 17, 2015

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Broadcasters seeking compensation for 600 MHz changes

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