FCC Delays Analog Auction; Court OKs Satellite Rights

The Federal Communications Commission announced July 11 that it will postpone indefinitely its much–discussed auction of the analog broadcast spectrum. Many observers interpreted the decision as evidence that the 2006 deadline for converting the nation's television system to digital will not be met.

The original plan for the rollout of digital broadcasting allocated a new channel for each of the 1600 television stations nationwide, with the agreement that broadcasters would relinquish their old analog spectrum to the FCC once 85% of US households were capable of receiving digital broadcasts, or by 2006, whichever came first. The date for that level of market penetration continues to recede, with cable providers refusing to carry the bandwidth-intensive digital signals.

Wireless communications companies had been the most eager customers for the spectrum, but their enthusiasm has dampened somewhat in the current economic climate. Some major players have exited the manufacturing end of the cellular telephone business. Verizon and other companies urged the agency to postpone the auction until all the allocation issues are resolved—a process that could take years. The auction of licenses for bands in the 747–762MHz and 777–792MHz regions was scheduled to begin September 12.

In other action, a US Appeals Court has upheld FCC regulations prohibiting restrictions on certain over-the-air television reception and direct-to-home satellite services. Renters now have legal authority to install dish antennas and downleads despite landlords' objections. The ruling was announced July 12.

"Building owners and managers had questioned the agency's statutory authority and had objected to the FCC's rules concerning over-the-air reception devices (OTARD) that were promulgated following enactment of the 1996 Telecommunications Act and amended in 1998 to extend to leaseholders. The three District of Columbia appellate court judges decidedly rejected the petitioners' claims, delivering a victory to the FCC," said a statement from the Consumer Electronics Association, which celebrated the decision as "a victory for consumers."

"This is a big win for consumers," said CEA president and CEO Gary Shapiro. "The 'unambiguously expressed intent of Congress' was clear in Section 207 of the Telecommunications Act of 1996. The Court has upheld the right of all Americans—including renters—to have access to the latest and best consumer technologies, such as direct-to-home satellite. As the original FCC order recognized, full participation in the digital revolution shouldn't be conditioned on property ownership."

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