FCC to Vote on Exempting ATSC 3.0 Datacasting From Ownership Rules
The FCC’s June 9 agenda item saying some ownership limitations doesn't precisely apply to TV broadcasters banding together to use ATSC 3.0 to lease their spectrum for wireless uses isn’t a new policy but more of a clarification, said Commissioner Brendan Carr and industry attorneys in interviews. The item includes an NPRM seeking comment on other rule changes that could help datacasting.
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The declaratory ruling is intended to provide certainty and remove “regulatory overhang,” Carr told us. The ruling “sends the right signal” to entities looking to take advantage of the new tech, he said. “This decision would remove regulatory uncertainty that could hinder the development of new innovation using available broadcast airwaves,” blogged Chairman Ajit Pai (see 2005180057).
The draft declaratory ruling clarifies TV station ownership rules don’t apply to “leasing arrangements between broadcasters and third parties” for the provision of 3.0 datacasting, Carr said in remarks Monday during a CTA and NAB-hosted teleconferenced panel on the future of 3.0. That would allow a broadcaster or any other entity to sign lease agreements with multiple broadcasters in a market to offer such services, “without triggering the commission’s attribution or ownership rules,” Carr said.
Pearl TV has been asked in the past about whether FCC rules could limit broadcasters seeking to provide spectrum capacity for use by connected cars, said Pearl Managing Director Anne Schelle during the panel discussion (see 2005180062). “Having that clarified will make it that much easier to work with the automotive industry.” The possibility of ownership rules being used against broadcasters leasing their spectrum is remote, but even a small bit of uncertainty can be a deterrent, said Pillsbury broadcast attorney Scott Flick in an interview.
The draft NPRM portion would seek comment “on the extent to which the Commission should clarify or modify its existing rules in order to further promote the deployment of Broadcast Internet services,” Pai blogged. Those modifications could include the FCC’s licensing structure, Carr said.
Current rules “don’t forbid any of this happening,” said General Counsel Rick Kaplan during the panel, saying NAB is pleased to have the matter clarified. He said it’s not always easy to predict what objections will be fielded against broadcasters, citing Free Press’ recent petition asking the FCC to require stations to air disclosures of false information during COVID-19 briefings (see 2004170062). Free Press hasn’t taken a position on the rule modification, but there could be a concern if only large broadcasters are able to participate in pooling spectrum for wireless use, FP General Counsel Matt Wood emailed.
“My work over last many years on issue & industry input says little doubt existing ownership restrictions won’t apply to new functions using standard, eg datacasting & other wireless service,” tweeted Commissioner Mike O’Rielly, applauding Carr and the agenda item. “If codifying doesn’t hurt, okay.”
“Wireless carriers have no ownership limits, spectrum caps or content-based service rules even when they deliver television and other video, so rules that apply ‘diversity’ restrictions to broadcasters when they deliver wireless data would be unconstitutional,” emailed Spectrum Consortium President John Hane. “Our broadcast data network, launching this year, can support entirely new types of service that aren’t viable using commercial wireless networks.” Spectrum Co. is pleased by the FCC’s move, he said.
Carr said he’s not aware of any entities arguing broadcast ownership rules should be applied to datacasting but said he was moved to advocate for the declaratory ruling after speaking at the 2019 NAB Show and learning more about the wireless services broadcasters will offer. Pai described Carr as taking the lead on the item. The FCC should “clear the way” so “legacy ownership rules” don’t prevent stations from competing, Carr said.
DOJ has taken a stiffer stance on broadcaster sharing arrangements than the FCC, but Carr told us he doesn’t expect that to carry over to broadcasters working together to provide what he calls “broadcast internet.” The department's concerns about advertising competition were rooted in the traditional TV business, he said. TV stations pooling spectrum to provide capacity for software updates to fleets of connected cars is a very different situation unlikely to raise the same issues, he said.
ATSC 3.0 and the spectrum capacity it will give to broadcasters is important for uses such as precision agriculture in rural areas where there's limited broadband, said America’s Public Television Stations General Counsel Lonna Thompson during the panel. APTS is “in discussion with several partners” about using public TV spectrum in agriculture, she said. Schelle said 3.0 and its targeting capabilities have special applications during the pandemic. Stations can provide geotargeted COVID-19 updates, which Schelle said viewers would be able to check similar to the day’s weather report.