Delay In Conversion To Digital TV Could Cost Jobs
By Curt Nickisch

BOSTON – January 28, 2009 – This week the U.S. Senate passed a bill that would postpone the switchover from analog to digital television until June. If the House approves it, too, it would give people who get TV over the air four more months get the converter box — or the new TV they need to receive the better-quality digital signal.

After the deadline, analog TV’s won’t work anymore.

But giving viewers more breathing room comes at the expense of TV stations. They say any delay will hurt them financially at a time when they’re already laying off workers. WBUR’s Curt Nickisch reports.

WUNI is the Univision station in the Boston area — a Spanish-language station that airs a nightly local newscast.

It’s the only Spanish language local TV news for many of the region’s immigrants who can’t afford cable or satellite. They get the show the old-fashioned way — through an antenna. The program’s produced in a small newsroom with low ceilings — by just 13 people.

It’s a small staff by any measure, but it’s been getting smaller. Thanks to declining ad revenue, station manager Alex von Lichtenberg just had to let some people go, including his sports reporter. In Boston, that’s when you know things are tight.

Meanwhile he’s been stressing over his aging transmitter. One of the old analog tubes could die on him any day now, requiring a replacement.

ALEX VON LICHTENBERG: An individual transmitter tube for a full-power transmitter like ours runs somewhere in the vicinity between $35,000 and $45,000 dollars. And that’s, if I have to pay that — in this current economic environment, that’s a job in my building for someone.

All for something that will be obsolete in a few months anyway. WUNI has been airing at lower power, to try to eke enough life out of the transmitter to make it until February 17. That date was supposed to be the cutoff for analog — meaning the station could just shut down the signal and broadcast in digital only. But now Congress may delay that until June.

Even if the tower makes it that long, there’s the cost in electricity to keep it running, something von Lichtenberg did not budget for.

VON LICHTENBERG: Our analog transmitter, the power costs on that is over $10,000 a month. You add four more months at full power, that’s $40,000. Again, in these times, that’s a pill to swallow, a tough pill to swallow for a small operation like ours.

It’s a tough pill even for large operations. At WGBH-TV, the big public television station in Boston, the power costs to maintain the analog signal through June will run six figures. Station VP Jeanne Hopkins is trying to figure where those dollars would come from. The station already cut 12 jobs last month; this could mean more. It’s disappointing, she says.

JEANNE HOPKINS: Anytime you get geared up to do something, and then it’s suddenly like postponed, delayed, you’re kind of like: But we were all ready! I think it’s kind of that.

Hopkins is putting a cheerful face on it. She understands why Congress wants to delay the move and give viewers more time to get ready for digital TV. Still, her station has been telling them all along, by airing special programs on the topic and taking calls.

Deanna Raymond with the Massachusetts Broadcasters Association says running public service announcements for four more months will cost stations.

DEANNA RAYMOND: All those informational messages they have to continue to air, that’s ad revenue not coming into their door.

Raymond’s group has been lobbying Congress to let cash-strapped stations drop their analog signal before June. Some lawmakers are considering the exception. Unless financially squeezed stations can opt out of analog early, Raymond says there will be more layoffs. And that will hurt the news and other local programs viewers will see, when they finally do switch to digital TV.

Full audio here.

Even before we hear a vote on the House floor (that is potentially next week) on the possible DTV Transition Delay, a significant number of stations have or will be shutting off their analog signal based on the original date:

134 stations have already switched;
66 will go before 2/17;
143 filed to switch on 2/17;

The FCC will not be paying strict attention to the 30-day notice, but the 120 spots requirement must be resolved based on each individual station’s “comfort level”.

Here are some early converstion guidelines from Attorney Richard Zaragoza from the Washington DC law firm, Pillsbury Winthrop Shaw Pittman:

The issue of “early DTV conversions” involves not only the question of early termination of analog operations. That is only one-half of the station’s operations. There are the digital operation issues to consider as well. For example, before a station decides to cease its analog operations ahead of the then current national deadline for the DTV transition, the station needs to determine whether any special FCC authority is required for it may begin to operate “early” with its post-transition digital facilities. This will also involve the station in considering any in-market and adjacent market interference issues. If a station needs an STA to commence its post-transition digital operations before the then applicable DTV deadline, e.g., June 12, but has already terminated its analog operations, the station could be transmitting its digital signal without authority with no quick way to revert to analog operations. As a general rule, if a station’s post-transition DTV facilities will be different from its pre-transition DTV facilities, a station must first obtain at least permission from the FCC before it may “go early” and begin to operate with its post-transition DTV facilities.

In all cases, stations should review their DTV construction permits and licenses to determine the need for any special operating authority in order to operate early with their post-transition DTV facilities. If a station currently holds only a CP for its post-DTV transition facilities, it is presumed that an STA will be required before the station may commence early its post-transition DTV operations. The same may be true with respect to licensed facilities depending upon the terms and conditions set forth in those licenses. There are a number of permutations that must be considered so this message is not intended to cover all circumstances. Nor is it intended as substitute for engineering and legal advice from a station’s own consultants/advisers.

The following are my views on the procedures that full-power television stations should consider following before they permanently terminate their analog transmissions and operate solely in the digital mode. Without exception, all stations should consult with their respective communications counsel in advance of making a decision whether, when and how to proceed to cease operating in the analog mode. Such advice should take precedence over the views expressed here.

There are of course required FCC procedures, as well as certain “public relations” factors, to consider.

As a threshold matter, any station considering whether to terminate its analog operations before the applicable statutory deadline, whether it is February 17 or June 12, should distinguish between these two scenarios: If the station terminating its analog service early will continue to operate with post-transition DTV facilities that are the same as its pre-transition DTV facilities, i.e., same channel, same power level, same antenna location, etc., only notice to the FCC and to the viewers is required. If, however, the earlier cessation of analog operations involves a change in the pre-transition DTV facilities of the station will be required for the station’s post-transition DTV facilities, the prior “STA” approval of the FCC will be required.

Under the “No Change Between Pre- and Post-Transition Facilities” scenario,

(1) if the station decides to convert on whatever deadline is finally established by Congress (February 17 or June 12), no additional notice to the FCC or to the public is required before analog service is terminated permanently. An updated FCC Form 387 should be filed, however, if the station’s decision is different from what the station had told the FCC in a prior filing. The principle here is that the 387 form must remain accurate as relates to the DTV status and plans of each television station.

(2) if the station wishes to terminate its analog service earlier than 90 days before the new June 12, 2009 deadline likely to be established by Congress, the station may have to obtain the prior consent of the FCC to do so. I say “may” because that is the procedure that the FCC followed under its Third Periodic Review when a station wanted to terminate its analog service earlier than 90 days before February 17, 2009. The NAB is fully aware of this issue, has worked diligently to educate the House and Senate Committees which are considering the DTV Delay Act, and has stressed to the FCC that the clear intent of Congress under the DTV Delay Act is that the FCC should not interfer with the decision of a station to cease operating in the analog mode so long as the station complies with the notice requirements. The NAB is urging that the Committee Report for the DTV Delay Act make clear to the FCC that its prior approval should not be required.

IMPORTANT: Because of the risk that the FCC might revert to its 90 day interpretation once the June 12, 2009 deadline is enacted, stations intending to cease their analog operations on or before February 17, should give serious consideration to giving the FCC notice of their intent prior to the passage of the DTV Delay Act which may occur as early as Monday, January 26.

(3) if the station wishes to terminate its analog service within 90 days of June 12, 2009, it must update its FCC Form 387 as soon as it has made its decision, file electronically in the FCC’s CDBS system, using the “Legal STA” form (no form number, no engineering and no filing fee) informal notification of the station’s cessation plans and broadcast a total of at least 120 viewer notifications. As a general rule, the Informal Notification should be filed with the FCC at least 30 days before the permanent early cessation of analog operations. Furthermore, at least four viewer notifications should be broadcast daily (one in prime time) over that 30 day period. If, however, the station makes the decision to terminate analog operations less than 30 days before such planned termination, the station should still immediately update its FCC Form 387, file Informal Notification with the FCC, and increase the number of daily viewer notification broadcasts so that by the end of the day before the conversion, the station will have aired a total of at least 120 viewer notifications. It should be stressed that these viewer notifications are in addition to the regular consummer education announcements required to be aired by the stations. For the reasons mentioned above, it is hope that this notice only requirement will also apply to all terminations scheduled to occur outside of the 90-day window before June 12, 2009.

As mentioned above, those stations, whose termination of analog service will involve changes in their pre-transition DTV facilities to accommodate their post-transition DTV facilities, will need the prior approval of the FCC and will also have to broadcast the required number of viewer notifications.

The timing and content of the required viewer notifications were set forth in the FCC’s Third Periodic Report and Order which states:

106. Viewer Notification. We will require that stations filing a notification pursuant to Section 73.1615 to permanently discontinue operation or permanently operate with reduced facilities within 30 days of the transition date must notify their viewers on their pre-transition channel(s) (both analog and digital) about the planned permanent service reduction or termination and inform them about how they can continue to receive the station. Such notifications must occur every day on-air at least four times a day including at least once in primetime for the 30 days prior to the planned permanent service reduction or termination. These notifications must include: (1) the station’s call sign and community of license; (2) the fact that the station is planning to or has reduced or terminated its analog or digital operations before the transition date; (3) the date of the planned reduction or termination; (4) what viewers can do to continue to receive the station, i.e., how and when the station’s digital signal can be received; (5) information about the availability of digital- to-analog converter boxes in their service area; and (6) the street address, email address (if available), and phone number of the station where viewers may register comments or request information. We note that these viewer notifications are in addition to, and separate from, any notification requirements that we may adopt pursuant to our DTV Consumer Education Initiative.

Irrespective of when a station intends to cease its analog transmissions and operate in the digital mode only, such station, acting independently, should consider making that conversion at the same time that the other stations in the market may be planning to undertake the same conversion in order to reduce the risk of viewer confusion and to avoid burdening the public with, what I call, “serial re-scanning” of their television sets.

Early converting stations should also consider notifying in advance their Congressional delegations so that there are no surprises and so that their Congressional delegations can be provided with pertinent telephone numbers in the event that they would like to refer constituents to resources with helpful DTV-related information.

Lastly, stations deciding to convert early should, independently or collectively in each DMA, use their best efforts to provide live operator support for callers for a reasonable period of time post-conversion, as well as identify and train volunteers who would be ready to go into the homes of “at risk” segments of their viewing audience to solve their converter box hook-up and antenna hook-up needs. These added efforts should help to blunt any claims that stations converted early for their convenience without regard to the convenience of their viewers.

Are you on LinkedIn? Join the Massachusetts Broadcasters Association group on LinkedIn! Click here. It’s another way the MBA will bring you news and information.

A guest appearance by Scott R. Flick, Esq. of our Washington DC law firm, Pillsbury Winthrop Shaw Pittman.

In the world of electronics, “digital delay” means electronically delaying one part of a signal until another part of the signal can catch up. The classic example is the digital delay used on the audio portion of a television signal to ensure the sound remains synchronized with the picture despite the more time-consuming processing the video signal undergoes. In Washington, however, “digital delay” has recently acquired an entirely different meaning, with the new President and others calling for broadcasters to delay their transition to digital operation until America can catch up.

After years of racing to meet various government-imposed buildout deadlines in the march to the analog shutoff, broadcasters suddenly find themselves – literally weeks before the DTV transition deadline – being told that they may need to slow down.While concerns over how rocky the transition will be are nothing new, the catalyst for the government’s new hesitance is the announcement by the NTIA in early January that it has run out of funds for the government’s converter box program. The initial calls for delaying the transition date unfortunately overlooked the many complex details involved, and seemed to consider it akin to extending a tax filing deadline. However, as the debate has become more heated, there is a growing appreciation in Congress of how complex the transition has become.Trying to leap into the path of television stations that are on the final lap of a ten year long race is not without risk. It is somewhat like tossing a stick into the spokes of the lead bike and watching the other racers pile up behind it in a cascading series of crashes.

The situation is a frustrating one for broadcasters, who may have years of planning and budgeting torn asunder. It is all the more frustrating when broadcasters, as a group, (1) informed Congress that the funding for the converter box program would likely be inadequate, (2) successfully built out digital facilities and endured the cost of dual analog/digital operation while being derided as the recipients of “corporate welfare” for the “gift” of that second channel, and (3) got the word out to the public on the digital transition so successfully that far more people know about it than know the name of their representative in Congress.

Despite being the one group that has consistently met its obligations in propelling the digital transition along, the reward may be that broadcasters will now uniquely bear the costs, both economic and competitive, of a delayed transition. To meet the mid-winter deadline, many stations with snowbound transmitter sites had to reduce or terminate analog broadcasts months ago in order to install their post-transition digital equipment. Many others quite literally have their analog antenna laying on the ground as they rush to install its digital replacement in time to meet the February 17 deadline.

Given the immense amount invested in constructing digital facilities, particularly for stations that have had to build two digital facilities – one on their pre-transition channel and one on their post-transition channel – keeping their aging analog equipment operational has become increasingly difficult. Many an engineer has their fingers crossed that their analog transmitter will not fail before the February 17 deadline. Setting aside the costs of repair, spare parts are increasingly scarce for what is soon to be obsolete equipment.

Announcing a delay in the transition date six month ago would have been challenging, but possible. Announcing a delay just weeks before one of the most publicized dates in media history can only create confusion and chaos, with many stations having no choice but to terminate analog operation on February 17 regardless. The result is likely to be confusion among viewers and competitive imbalances between stations that could prove fatal in an already challenging economy.

Does that mean that sticking with the February 17 date will ensure a smooth transition? Unfortunately, no. We all recognize that some percentage of viewers will take no steps to prepare until their screens go dark, whether that is on February 17, or June 12. In fact, moving the date will only instill confidence in such viewers that any future transition date is similarly flexible. Inevitably, there will be many problems, some caused by a digital antenna located in a different direction from the viewer than that station’s analog antenna, or other changes in a station’s coverage area, but the date of the transition will not alter these facts. Indeed, if the point of delaying the transition is to ensure the public’s continuity of broadcast service, that will not be accomplished by subjecting viewers to a situation where some local signals are analog, some are digital, and many converter boxes will not even pass through the analog signals.

As a result, Congress and broadcasters face admittedly imperfect choices. However, sticking with plans that have been years in the making, and which are the sum total of thousands of smaller decisions made by government, broadcasters, and others, seems preferable to going with whatever can be cobbled together in the next few weeks or months. As always, broadcasters will do their best to continue to meet the needs of their communities throughout. The question, however, is whether Congress will assist broadcasters by making every effort to cause the currently-scheduled February 17 transition to be a success, or delay and create yet more obstacles on the path to the digital future.