Sinclair/Tribune Would Use Repacking Threat to Force ATSC 3.0 on Wireless, Say Opponents

A combined Sinclair/Tribune will use its increased leverage over the repacking to force wireless carriers to incorporate ATSC 3.0 technology into handsets, said T-Mobile and the Competitive Carriers Association in replies posted in FCC docket 17-179 Wednesday. “If Sinclair is allowed to proceed with its acquisition of Tribune, Sinclair’s attempt to force inefficient, costly behavior from wireless carriers and their customers is likely to succeed,” CCA said.

Other opponents of Sinclair/Tribune such as Public Knowledge and the American Cable Association slammed Sinclair for trying to skate around ownership and retrans rules, and repeatedly failing to demonstrate the deal’s public interest benefits. “Applicants here offer less clarity, and make more vague commitments, than every other broadcast transaction that research has uncovered,” Dish Network said.

Sinclair told T-Mobile it wouldn’t entertain discussions about speeding the repacking of a Sinclair station occupying spectrum T-Mobile purchased “unless T-Mobile agreed to place ATSC 3.0 technology into its mobile devices,” T-Mobile said. Sinclair/Tribune would allow Sinclair to do the same on a larger scale, T-Mobile said. “Delaying repacking prevents T-Mobile and other auction winners from deploying their low-band spectrum until Sinclair is ready to enter the mobile broadband marketplace as a competitor.” Sinclair didn't comment.

PK and others cited Sinclair’s advocacy for pushing back the 39-month deadline and opposition to the incentive auction as indications that Sinclair would delay the repack. Sinclair said such accusations are unfounded (see 1708230061). The deal would enhance Sinclair’s ability to block wireless broadband deployment in the 600 MHz band, CCA said. That strategy would work because wireless carriers have no alternatives, CCA said. “Only Sinclair would possess the power to release the 600 MHz spectrum that the market has valued at nearly $20 billion.”

The American Cable Association and other commenters said Sinclair didn’t provide enough specifics about the public benefits. Though Sinclair and Tribune provided a list of public interest benefits in their joint opposition filing, it was short on details, ACA and Dish said. “The Commission cannot accept such a perfunctory response, as it fails to answer basic questions raised about the public interest harms of this proposed merger,” Dish said. It faulted Sinclair for submitting most of its exhibits on the merger in the public record, since that indicates the filings don’t contain “the type of sensitive information major merger applicants always need to marshal to prove their case,” Dish said.

“Lack of evidence in support of the Applications is fatal,” ACA said. Sinclair and Tribune’s opposition filing shifts the burden of proof to the deal’s opponents, against FCC procedure, ACA said. "We want to know the details, and we don’t think the details will be good for them, that’s why we don’t have them,” said Computer & Communications Industry Association President Ed Black on a news-media call held by transaction opponents Coalition to Save Local Media.

Congressional hearings on the deal could lead to more information, said Black. “There’s a paucity of information.” A hearing could provide a venue for sensitive retrans information to be released that would help opponents, said Steve Pastorkovich, vice president-technology and business development for NTCA.

The question of how Sinclair/Tribune will fall under broadcast ownership rules was a focus of several reply comments. American Television Alliance and others noted Sinclair said it will divest to come into compliance with current ownership rules, and NCTA said the current rules must be applied to the deal rather than pending rule changes. “Mere ‘proposals’ to change the rules are an insufficient basis to permit Applicants to violate those rules,” NTCA said. Any change to local TV ownership rules should require the broadcasters to “subsequently modify their application” and the FCC to “establish a new pleading cycle,” ACA said, echoed by NCTA.

Though Coalition to Save Local Media members said the deal can’t be salvaged by conditions, nonmember NCTA proposed some. The combined company should be prevented from jointly negotiating retrans deals for any of its commonly owned stations, not just those in the same market, NCTA said. The cable association also said conditions should be created that would prevent the new combination from using joint sales agreements and shared sales agreements to jointly negotiate such deals. After each of the 10 large broadcast industry consolidations of the past 10 years, retrans rates increased greatly, Dish said.

Sinclair’s political stance is a valid area of concern, Free Press said. “When a broadcaster’s political perspective is so strident that it inhibits local editorial control and subverts localism,” it raises public interest questions, Free Press said. “The obligatory nature of Sinclair’s ‘must-runs’ and its Central Casting national news initiatives prevent local stations from airing locally responsive news, forcing them to carry content that does not serve their communities’ needs or values.”