IATF Pressing Broadcasters for More Information; Process 'So Far, So Good'

FCC reimbursement fund administrator EY had to press broadcasters for additional information on their repacking reimbursement requests because many are upgrading to ATSC 3.0-compatible equipment and didn’t submit actual price estimates, said FCC Incentive Auction Task Force Chair Jean Kiddoo and industry officials in interviews.

Detailed estimates on the cost of such upgrades are needed to calculate how much of the $1.75 billion repacking reimbursement fund the FCC will make available up front, said Kiddoo. Commercial broadcasters could receive up to 80 percent of their estimated total reimbursement up front, and the IATF will decide what the actual percentage should be after EY finishes reviewing initial submissions, a task expected to take 60 days, Kiddoo said.

Broadcasters recently submitted Form 399 repacking estimates. EY has been in contact with many for more information, said Kiddoo. “We were geared up,” said Kiddoo. “We know that stations are anxious to get going with their planning and construction.” Instead of seeking reimbursement for comparable equipment to what they already have, broadcasters are taking advantage of the repacking to partially fund their upgrade to ATSC 3.0, said Dielectric Antenna Sales Executive Christine Zuba. Many submitted estimates for the new equipment based on calculations in the Widelity Report, the FCC’s list of acceptable repacking cost estimates. Those aren’t sufficient, Kiddoo told us, and Zuba said she received numerous requests for actual cost estimates to satisfy requirements.

Still, Zuba and other industry officials said the process is proceeding smoothly. “So far, so good,” said Heartland Media CEO Robert Prather.

Many broadcasters also are buying equipment that can be used simultaneously by multiple stations to save money, Zuba said. Many broadcasters doing this own multiple stations, Zuba said. Broadcasters reducing reimbursement costs by sharing equipment is welcomed by the FCC, Kiddoo said.

EY will go through the 399s and submit them all to the IATF for verification once they’re complete, Kiddoo said. Though all broadcaster reimbursements eventually will be verified with receipts, the FCC wants the upfront allocation from the fund to be as close to broadcasters’ actual expenses as possible to minimize situations where the FCC might have to “claw back” reimbursement funds from broadcasters who overestimated their requirements, Kiddoo said. The estimated cost of the repacking is still in flux, since not all MVPD information was submitted and 25 broadcasters will file in a later window since their channel assignments are unbuildable, Kiddoo said. Seventeen of the 25 also filed in the initial 399 window -- if their channel assignments are adjusted, it will alter the current estimated cost of the repacking, which Chairman Ajit Pai testified Tuesday (see 1707250059) was at $2.139 billion (see 1707140070). The eight other broadcasters seeking new channel assignments haven’t filed estimates, Kiddoo said.

Though broadcasters everywhere needed to submit their Form 399s and construction permit applications on the same day, broadcast industry officials said they haven’t felt the resource crunch that broadcasters predicted during the repacking. Though broadcast engineers said they have been very busy, Prather and industry lawyers said they haven’t had trouble getting needed work done. Dielectric ramped up its workforce and resources in preparation for the repacking, Zuba said, though expecting something of a crunch when broadcasters are allowed to maximize their new channel assignments. Several broadcast industry officials said they expect competition for resources to intensify when the FCC gives broadcasters access to their upfront allocation funds. That’s expected to be in Q4, an IATF spokesman said.