DTV the focus of FCC meeting

(Telephony) Digital television issues that indirectly could affect the mobile wireless industry highlight the agenda for Thursday’s FCC meeting, which most industry observers believe will be the last for Chairman William Kennard.

Much-publicized for its ability to give television viewers sharper pictures and greater access to interactive services, digital television (DTV) is particularly important to the commission because it uses bandwidth more efficiently than traditional analog systems.

With this in mind, the FCC is anxious for television stations to make the transition to DTV, which would free spectrum for other uses. In particular, the FCC plans to auction spectrum in the 700 MHz band—television broadcast channels 60 through 69--in March to mobile wireless carriers.

However, this auction has been delayed repeatedly because no one knows when the spectrum will be available. Four years ago, Congress gave broadcasters spectrum worth $70 billion to make the transition to DTV by 2006 with one notable caveat: broadcasters do not have to vacate their current analog spectrum until 85% of the televisions in their territories are capable of receiving digital signals.

With lackluster market demand for DTV so far, Kennard has estimated it will be 2025 before broadcasters would have to clear their analog spectrum, which leaves little incentive for carriers to want to bid in the proposed 700 MHz auction.

Broadcasters have argued that the FCC could accelerate this timetable greatly by requiring the nation’s cable systems to carry digital signals offered by television stations. In fact, a Florida station proposing to be a DTV-only broadcaster is asking for must-carry status. However, industry observers note that this case still differs from the dual carriage issue of broadcasters that transmit analog and digital signals.

A review of the DTV issue also is scheduled for Thursday’s meeting, but no commission order is expected, the spokesman said.

Kennard is expected to be replaced within weeks as FCC chairman, probably by fellow commissioner Michael Powell, the son of Secretary of State nominee Colin Powell.