As Wireless Industries Meet at CTIA in Atlanta, Public Television Stations
Developing Plan to Make Valuable "Beachfront" Spectrum Available for New Uses

WASHINGTON, March 18, 2004--John Lawson, president and CEO of the Association of Public Television Stations (APTS) recently said: "Public television stations control almost 80 megahertz of spectrum in what is now the richest, most technologically advanced society on the planet, but our continued growth depends upon increased wireless bandwidth. Based upon recent statements on the value of spectrum, public television's analog bandwidth is extremely valuable and could be the basis for a great deal of new economic activity."

Television broadcasters - commercial and noncommercial - control approximately 400 megahertz of analog spectrum, the bulk of which falls within the 480 megahertz through 810 megahertz range. Spectrum in the range below 2 gigahertz is known as the permeable zone, meaning that signals which carry information within this range can easily traverse through dense objects. Lawson said: "Signals transmitted across public television's analog spectrum can go through buildings, trees and storms - and can be used for many commercial and public safety purposes. As such, this truly is 'beachfront property' in the spectrum world. Putting this bandwidth into the private market can unlock its true economic potential, and we want to work with the federal government and private industry to accomplish this task."

Lawson observed, "Nextel and Verizon Wireless are currently debating the value of 10 megahertz of nationwide spectrum in the 1.9 gigahertz band, suggesting it is worth anywhere between $3.5 and $7.2 billion. If you speculate on the value of public television's bandwidth based upon these figures, you can see that we're talking about a very valuable asset. Just do the math." To get a more accurate assessment of the value of this spectrum, APTS hopes to commission an independent study in the near future.

In addition to the receipt of billions of dollars from the auction of public television's spectrum alone, the government would also see increased tax revenue as a result of the increased economic activity that would flow from new entrepreneurial applications when this spectrum is made available for private uses. Lawson observed: "At CTIA, a lot of leading companies like Qualcomm, Intel and Microsoft are demonstrating innovative wireless applications. The pace of this innovation would quicken if significant amounts of permeable spectrum were available. This would result in new equipment orders, the creation of new jobs and greater tax receipts for the federal government."

Under current law, broadcasters are required to return their analog spectrum on or before December 31, 2006. However, that deadline is subject to the qualification that all local digital television stations, either over-the-air or via cable or satellite, are available to at least 85 percent of households in a given market. For public television stations, with their mandate to provide universal service, this figure is closer to 100 percent. Because of the challenges in meeting this requirement, many commentators suggest that broadcasters will not be in a position to return their analog spectrum for at least a decade. Lawson said, "Public television stations want to formulate a plan to return this valuable analog spectrum to the government in a way that helps the society as a whole and provides for the financial stability of public television stations."

Public television stations identified cable carriage as one of the critical obstacles preventing them from returning their spectrum. Lawson said: "More than 65 percent of public television stations are broadcasting a digital signal - reaching into markets with more than 85 percent of American households. That said, over-the-air transmission, alone, is not enough. Because cable and satellite providers reach approximately 86 percent of American households, the digital conversion can not be completed without guaranteed cable carriage of all of a public television station's digital programming." In addition to working to secure cable carriage, APTS is also looking at ways to meet the needs of over-the-air viewers through inexpensive set-top boxes and free, over-the-air digital programming.

To create a new generation of content and services to help drive consumer acceptance of DTV, APTS is seeking the creation of a trust fund based upon retaining at least some of the proceeds the government collects from the auction of analog spectrum. Lawson said: "A trust fund would also support a broad-based effort to improve education at all levels. The trust fund would be in addition to, and not in lieu of, annual appropriations for the Corporation for Public Broadcasting. In a recent consultation with APTS member stations, 81 percent of respondents indicated that they would be able to return their analog spectrum by the end of 2007 if they were guaranteed cable carriage, the availability of low cost set-top-boxes, and the establishment of a public television trust fund." In conclusion, Lawson said: "Public television stations understand that the analog spectrum is not ours to keep - that we hold it in trust to benefit all of the American people. We want to work with the federal government and other stakeholders in the technology and public safety communities to find a solution. I have often heard that business plans are not being developed to utilize broadcasters' spectrum because they do not believe that it will be returned anytime soon. I want to change that perception, and develop a plan to accomplish this sooner - for the benefit of all of America."

Lawson offered: "I invite anyone who is interested in working with APTS to make this happen to contact me through Jeff Davis, our vice president for communications. We are building a coalition to provide hundreds of billions of dollars of benefits to America by speeding up the digital transition and freeing up this beachfront property."

APTS was established to support the continued growth and development of a strong and financially sound noncommercial television service for the American public. As broadcasters make the transition to digital, APTS is working to ensure the federal government continues its commitment to universal public television services.

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Read the Digital-Only Broadcasting Briefing Paper.

Jeffrey Davis 202-654-4209