The Coalition For Free TV and Broadband will introduce a broadcaster broadband plan on Thursday that it claims will provide wireless high data-rate capacity without damaging TV stations and create an entirely new revenue stream for the U.S. Treasury.
Broadcasters To Unveil Broadband Plan
The Coalition For Free TV and Broadband is proposing a broadcaster broadband plan that it says will raise an estimated $80 billion for the U.S. Treasury by 2023 and $125 billion by 2026 through an ongoing annuity.
The Coalition For Free TV and Broadband will release the details of the plan during a news conference on Thursday, Oct. 20, at 10 a.m. in Washington. The Coalition For Free TV and Broadband describes itself as a group of television broadcasters, concerned organizations and individual citizens formed to ensure the survival of free television and to offer solutions to the nation for better, cheaper wireless broadband utilizing the broadcast industry.
“We have delivered to Congress a robust plan that continues the broadcast industry’s decades-long record of serving our local communities,” said Mark Aitken, VP of advanced technology for Sinclair Broadcast Group, in a statement. The new plan, called A Broadcast Overlay, “serves multiple objectives by delivering a solution providing wireless high data-rate capacity, continues to maximize the efficient use of broadcast TV spectrum, offers the public new wireless service choices, and creates an entirely brand-new revenue stream for the U.S. Treasury,” Aitken continued.
The Coalition said that the Congressional Budget Office has estimated that the auctions authorized by Senate spectrum legislation would raise $25 billion, but net only $6 billion. The Broadcasters Plan, the Coalition said, will allow for higher contributions to the Treasury than the expected auction proceeds in terms of the present value — and a continuing annuity.
Aitken continued: “The figures of $80 billion over 10 years, $125 billion over 15 years and a continuing revenue stream of more than $400 billion obviously dwarfs the amount policymakers hope to receive from a spectrum auction — which the Congressional Budget Office scored at a meager $6 billion — that offers no promises on how or when the spectrum would be used. Broadcasting is very much at the center of any plan for innovation.”
“There is now a clear choice for the Congress,” according to Jim West, a Coalition member and president of the Legacy TV programming service. “They can choose a plan that will further entrench wireless monopolies, destroy thousands of jobs and television stations, decrease competition and raise only $25 billion or they can choose a plan that will eventually raise significantly more money, increase competition and choices for the American public, create jobs and will continue to offer entertainment, news and information to the public through thousands of television stations.”
BRAND CONNECTIONS
According to Lee Miller, communications director for the Coalition, the Broadcasters Plan will address long-term spectrum requirements and offer a continued source of revenue for the Treasury. “An auction is only a short term Band-Aid for two hungry monsters — the wireless industry and the Federal Budget. We already know that the current plan proposed by the big wireless companies — which would destroy thousands of small local television stations — is ethically wrong and unsustainable. Now we know that the wireless company plan is inferior. How much farther down this road will members of Congress follow the wireless industry lobbyists?”
The Coalition plans to distribute a white paper detailing the new proposal prior to the news conference.
Comments (12)
len Kubas says:
October 17, 2011 at 3:09 pm
How come the linked site doesn’t mention Sinclar as a member?
Matthew Castonguay says:
October 17, 2011 at 3:58 pm
No idea if this holds water but would be nice to think it does. Kind of a motley collection of “stations” as members though… but hey, if “BBQ Stu’s” is behind this, it must be solid!
Gregg Palermo says:
October 17, 2011 at 4:14 pm
Nice of the private broadcasters to cook up a plan to actually use their bandwidth to make money, instead of claiming squatters rights on their long-term lease. Given the time value of money, should the government wait 13 years to see if broadcasters can actually deliver on their questionable promise? The reward is obvious, but what of the risk? The operative word in this story is “eventually”! Sounds obvious the broadcasters are stalling for time. Meanwhile, the public demands a better use of the resource (and it’s clear the current tenants aren’t using it in a way that their customers even care). 32 percent of homes have satellite and 60 percent have cable. That leaves a paltry 8 percent using the spectrum (unless you trust the creative math of the Knowledge Networks survey). Our Government needs the money now, not later. And cell phone users need spectrum now, not later. The customers have already voted with their feet. As a longtime broadcasters, I’d say it’s time to declare defeat. One station per market to run hurricane warnings should suffice, and let the Government own it.
Ellen Samrock says:
October 17, 2011 at 4:53 pm
Cellphone companies absolutely DO NOT need spectrum now, nor will they likely need it for decades–if ever. As of this writing, they hold 538 MHz of spectrum of which only 92 MHz is being used, the rest is being held by a few companies who appear to be either speculating or have no plans for deploying it. What the Coalition is proposing is a real plan that will put far more money in the government coffers than any incentive auction can and it will prevent any more spectrum from being in the hands of too few companies. Yes, it will take time to implement the Coalition plan should it be approved, but keep in mind the CBO has already stated that it will take ten years for the government to reclaim spectrum from broadcasters under the current proposal. The rest of your fuzzy math as to who depends on OTA television is baseless.
mike tomasino says:
October 17, 2011 at 4:53 pm
Rustbelt, you are just as full of it as ever. Why don’t you refresh your numbers. They certainly don’t include the 200 to 500 thousand drop in pay-TV subscriptions that happened in quarter 2. Why do you believe CEA when independent voices like SNL Kagen and Knowledge Networks place OTA at 15+% and growing? Oh, I forgot, you’re the CEA troll. Wireless broadband would be a waste of TV spectrum because people can’t afford the services anymore. Wireless is quickly reaching the saturation point (over 100% penetration) despite the fact that the wireless industry hasn’t come anywhere close to using the spectrum they control now. Meanwhile people are dropping their pay-TV subscriptions in droves and “trading down” their wireless service. More efficient use of the airwaves would mean more free DTV channels not fewer.
David Siegler says:
October 17, 2011 at 5:07 pm
You know where I live about 22% have over the air reception only…by choice. The majority of the small cable operators and PUC systems rely on the over the air service from the broadcasters to supply their service. My station supplies a full time HD, two full time SD’s and a reading for the blind service, all for free.
Christina Perez says:
October 17, 2011 at 9:58 pm
Rustbelt2, if you are an agit-propaganda agent provocateur who wants to foment a revolution in this country, take any free, over the air TV from the American people and get ready for a public revolt. The number of Americans dependent on OTV TV (and that includes pay TV subs with second, third and fourth unconnected sets, is far greater than the 8 percent you quote. In many markets, it’s over 50 percent, and in rural markets, even higher than that. If broadcasters really want to sell this plan, they will offer free, OTA mobile DTV capable of reception by any portable device with the right chip — and do it NOW. If they do, and promote FREE TV, they will be on the way to selling this longer-term broadband plan. If they wait to roll out a technology that some stations have up and running now, broadcasters will lose the battle, and maybe even their spectrum, to the broadcand/cable greedsters.
Christina Perez says:
October 17, 2011 at 9:59 pm
I wrote, “take AWAY free over the air TV” and it came out “take any…” Go figure.
len Kubas says:
October 18, 2011 at 12:49 am
made little sense either way
bill schneider says:
October 17, 2011 at 5:03 pm
So it is okay with you Rusty that every American should have to pay for any entertainment or information other than what the government decides we need to have? And it is okay for the ever growing appetite of the wireless carriers to continue to migrate to a fee per data bit that we use so we sell off the right for them to charge us what they want? A few sheckles now for a never ending revenue stream for them. Oh yea no public service requirements either…. Now this is a plan a true socialist can get behind!
Dan DiRicco says:
October 17, 2011 at 6:16 pm
I think it is an outrage in the first place that the FCC and our government would even talk about this Spectrum Auction. It is simply unamerican to TAKE something away from one person (regardless of what it means to them or what they have invested) simply to GIVE it to someone else because our government has decided the new person can do more with it. IF we are going to compare apples to apples, give the broadcasters a chance to “do more with it” and then evaluate. IF we are going to talk fairness, then confiscation without compensation shouldn’t even be on the table. THEN take into account all of those stations that are being used by the 46 MILLION americans who rely 100% on over the air free TV. Who will be responsible to pay for their cable bill when the government takes away other forms of FREE news and entrainment. My assumption is I will as well as every other tax paying citizen.
This whole thing is an outrage. BUT WAY TO GO BROADCASTERS FOR PUTTING TOGETHER A BETTER PLAN!!!!
Paul Farrell says:
October 17, 2011 at 6:59 pm
This blatant attempt at rape by ATT&T, Google, Veriizon has been unmasked by Citibank, the NAB and Broadcast Engineer magazine just to name a few. Harvard hoops buddies Barach and Julius have planned and are attempting a heist of gargantuan terms. They are using the ever-ready cry of “the sky is falling”. to intrigue and fool the un-educated. Shame on you Mr. Genachowski!