No broadcaster compensation for 600 MHz move, ISED confirms

Broadcasters have lobbied the government for years to reimburse them for having to switch channels when the 600 MHz spectrum is repurposed for mobile wireless use, but all such requests have so-far been rebuffed, The Wire Report has learned. In 2016, Innovation Canada released a consultation on a joint move by Canada and the United States to repack and move over-the-air (OTA) TV stations to lower frequencies to make room for expanding mobile services in the upper 600 MHz frequencies -- and to help usher in next-generation 5G networks. The move caused some consternation among broadcasters, who said the resulting shift to different channels would cost them significantly in antenna and transmission equipment changes. But despite efforts made by the Radio Advisory Board of Canada (RABC), the Canadian Association of Broadcasters (CAB), and telecoms including BCE Inc., and Rogers Communications Inc. to warn the government of the move’s costly implications, sources say the government declined the requests. In an email on Monday, ISED spokesman Hans Parmer confirmed that the government does not compensate spectrum users for a transition to another band. However, he said “steps are being taken to minimize the impact that the repurposing of the 600 MHz band may have on over-the-air TV broadcasters and viewers,” adding over 70 per cent of OTA originating stations are not affected by the move. He did not specify why the department doesn’t compensate or what these “steps” to minimize the impact would entail. The Wire Report has asked for clarity and did not hear back in time for publishing. “We will continue to engage with broadcasters to understand any operational impacts and to support an effective transition,” the statement said. The 600 MHz spectrum auction wrapped up in April and the transition is expected to be completed by 2022. As of the beginning of May, the CAB had updated its lobby registration to raise the issue of reimbursement. In a submission to ISED’s 2016 consultation, the organization said “there is a real possibility that some television stations may be forced to shut down because the financial cost of continued operation cannot be justified.” In 2016, Rogers argued before a House of Commons committee that they should be compensated for the reallocation, which the CAB, in that same reply to ISED’s consultation, said would cost the private companies in the organization more than $106 million. Bell said in its consultation submission it would cost them alone $63 million to upgrade transmitters. Some of the telecoms suggested that the proceeds from the 600 MHz auction, which netted the government $3.47 billion dollars, could be used for the compensation effort, as had been done south of the border. Before the Federal Communications Commission (FCC) held its 600 MHz auction in 2017 -- which invited broadcasters to give back their spectrum licenses for a share of the proceeds -- it already had a plan to allocate $1.75 billion to those transitioning broadcasters, following the passing of the Spectrum Act in 2012. Then, in March 2018, the U.S. government passed a spending bill that included an additional $1 billion for the repacking of TV stations -- money that the U.S. National Association of Broadcasters lobbied for, a representative told The Wire Report in a phone interview. The transition in the U.S. is estimated to take around 39 months in 10 phases, which began last year. The entire transition is expected to be completed by July 2020. The move entails technical changes in antenna locations and in some cases new transmitters, the NAB said. The NAB added they expect the roughly $3 billion to be sufficient to compensate the 950 or so stations affected. The organization added that, had the FCC not compensated the broadcasters, it would’ve been against the incentive auction. Broadcasters have done this dance before, when the government shifted them off the 700 MHz spectrum for broadband use. The CAB estimated the cost of the transition to digital TV cost broadcasters $113 million, while the auction brought the government $5.27 billion. Some of those broadcasters argued their equipment became obsolete as a result of the move and they had to spend millions to replace it. The RABC said one television group said it spent $1 million to replace 700 MHz and had estimated that it would spend $1.6 million to replace 600 MHz equipment. CBC/Radio-Canada said in a 2015 submission that it spent $60 million on the 700 MHz transition and, at the time, opposed the 600 MHz repurposing. It said that such a repurposing would require it to write-off investments in six stations and require at least $1.8 million to put those channels on different frequencies. — With reporting by Ahmad Hathout at ahathout@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

No broadcaster compensation for 600 MHz move, ISED confirms

Broadcast | May 28, 2019

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No broadcaster compensation for 600 MHz move, ISED confirms

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