Most of my time was spent learning more about the regulatory issues facing our broadcast industry (I.e. NBP, Spectrum and EAS). I also spent half a day on the floor checking on some (way cool) new technologies (Mobile DTV and 3D solutions were among the most impressive). I also had the opportunity to spend "face time" with old (and new) friends. I will focus here on the regulatory side of things...
Marcellus Alexander (NAB's EVP of TV and President of Education) and his team did another outstanding job putting this event together.
Monday began with a keynote speech by NAB President, Gordon Smith (he's also a former US Senator (Oregon (R)), laying into the FCC's National Broadband Plan (NBP) and the harmful effects that it may have on the future of television broadcasting. "Broadcasting is not an ATM machine that can keep spitting out spectrum", he said. [This] "appears to be an example of unnecessary government intervention when technology in the marketplace is already working through the issue."
Mr. Smith also addressed broadcaster's concerns with the FCC and retransmission consent, and the ongoing "performance tax" debate between the radio industry and the major recording companies saying that the tax was "basically a bailout of the major recording companies, three of the four largest of which are foreign owned. I think that the American people have had enough of bailouts" .
NBP Discussion:
On the regulatory side of things, the FCC / Broadcaster Spectrum debate dominated NAB 2010. Among other things, Broadcasters have expressed the fear that the "Voluntary" spectrum auction outlined in the NBP was tantamount to being "given an offer that they can't refuse" by the FCC (paraphrasing a "Don Corleone" line from "The Godfather").
TV Spectrum Discussion: Use it or Lose it
MSTV President, David Donovan hosted a lively (Phil Donohue style) panel discussion - with standing room only - including panelists Phil Bellaria (FCC Broadband Task Force), Rick Ducey (BIA Financial), Paul Karpowicz (Meredith Broadcasting), and Lawrence Krevor (Sprint Nextel Corporation).
Some of the most heated discussion came with Mr. Donovan pressing Mr. Bellaria for specifics on the FCC's intentions with respect to the 120 MHz recapture, details on process and timing and an explanation on how the FCC could reconcile its 120 MHz goal with today's TV spectrum realities within the nation's most crowded markets.
Donovan said that most stations don’t want to give up spectrum and pointed to the NYC market housing 23 TV stations, 11 of which are broadcasting on channels 31 to 51. With FCC Commissioner Mignon Clyburn looking on from the audience, Mr. Donovan pushed Mr Bellaria for answers...: "How would you squeeze them into the channels below 31?" "Any idea of how many people would be impacted?" "Would Broadcasters need to change all of the digital TV maps?" "... then how would it work…?? " with FCC rulemaking scheduled for the 3rd quarter… before we have a full analysis of existing spectrum – isn’t this putting the cart before the horse? "
Mr. Bellaria, one of the bravest people in the room, advised the group that this was just the beginning of a long process; that the FCC had faith in the approach that the NBP laid out, that the FCC "did not want most TV stations to participate in the voluntary auction" as it "would not be necessary or desirable". He told the group (using a wedding day analogy), that all of the specifics could not be foretold on day one, but assured the room that issues and concerns will be worked out, in close cooperation with one another. He also said that the 3rd quarter rulemaking would concentrate on "enablers", dealing with VHF and other ancillary issues.
Tuesday morning began with a keynote speech by FCC Chairman, Julius Genachowski. Clearly, the Broadcasters' message was heard and the Chairman's speech got right to the point: "I have been compared to a well known unsavory character in the movies ("The Godfather" reference above).
The Chairman worked to connect with the audience, telling them about his background in broadcasting and about growing up in a strictly over the air television household. He told the group that he "respects the industry and understands all that they are going through" and that the National Broadband Plan was a "Win Win Win" for Broadcasters, Broadband Providers, and the American People.
The Chairman told the audience that times and delivery methods are changing rapidly and that his children are indifferent to the medium used to receive content. "Smart phones consume more than 30 times the spectrum of traditional cell phones, laptops consume 450 times, and internet demand over the coming 5 years will increase 40 fold". He told the room that the US is well behind 40 other developed countries on the spectrum planning efforts required to meet future demand and that our ability to compete, effectively, in the future is at stake.
Mr. Genachowski addressed certain "things written that are simply untrue", saying that there were "four points to be made":
1) Spectrum auctions are voluntary. Period.
2) We don’t need very many broadcasters to participate in the auction.
3) We anticipate a mechanism to minimize risk to broadcasters (I.e. reserve prices for auction)
4) The FCC will maintain an open and transparent dialogue with the broadcasters.
He also wanted to "dispel a number of myths":
1) Broadcast spectrum will be confiscated – Untrue
2) NBP will diminish voices, localism, etc. Untrue – the Plan gives funding to stations that need it, especially smaller stations in their markets - keeping them on the air.
3) NBP would prevent the growth of mobile DTV. Untrue - The FCC’s role is to enable new business models
4) Consumers would need to buy new equipment. Untrue - Simple re-scan required.
Mr. Genachowski told the audience that he was optimistic that the spectrum auction, as laid out in the NBP, will work and asked Broadcasters to avoid the "Beltway Tactics" and work constructively with the FCC going forward.
The Chairman also announced that FCC will convene an "Engineers Forum" in the coming months to "help the FCC develop the best path forward".
Interesting times!!
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