ARNOLD PORTER LLP FCC RELEASES FINAL DTV TRANSITION RULES CLIENT ADVISORY JANUARY 2008 SUMMARY OF DECISION 1

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CLIENT ADVISORY The Commission on December 31 st released its Report and Order in its Third Periodic Review ( Report & Order ) of the DTV transition and established the rules for the last phase of the transition to a digital television broadcast environment and the initial rules that will govern changes in DTV allotments and facilities after February 17, 2009, the date when all full power television stations must cease analog operations. This Memorandum will provide you with an overview of that decision. You should also be aware that there will be at least one more major set of decisions governing the transition when the Media Bureau addresses the more than 100 petitions for reconsideration of the 7 th Report and Order, which established the Final DTV Table of Allotments (the Final DTV Table ). SUMMARY OF DECISION 1 This Report and Order sets forth the steps stations must take to obtain the necessary authorizations for their post-transition DTV facilities and the deadlines for constructing those facilities. In this Report and Order, the Commission: Reaffirmed that all full-power analog television stations must cease analog operation on February 17, 2009. All full power television station must operate solely in a digital mode as of February 18, 2009; 2 Will require all television stations to file a report, FCC Form 387, by February 19, 2008, 3 describing where they are in the transition to the construction and deployment of the permanent DTV facilities and their plans for completing construction of that station. Stations are required to keep the report current and must update the form by October 20, 2008 if they have not completed construction; JANUARY 2008 Washington, DC +1 202.942.5000 New York +1 212.715.1000 London +44 (0)20 7786 6100 Brussels +32 (0)2 517 6600 Los Angeles +1 213.243.4000 San Francisco +1 415.356.3000 Northern Virginia +1 703.720.7000 Denver +1 303.863.1000 1 A more detailed discussion of these actions is set forth below. 2 Class A, low power television stations and translators can continue to operate with their analog facilities after that date. At some unspecified date in the future, the Commission will adopt rules requiring the mandatory transition of those stations to digital formats. 3 The Report and Order provides that the report must be filed by February 18, 2008. However, that is President s Day and the federal government is closed. Under the Commission rules, the report can be filed on the following business day, February 19th. This summary is intended to be a general summary of the law and does not constitute legal advice. You should consult with competent counsel to determine applicable legal requirements in a specific fact situation. arnoldporter.com

Adopted a process for filing applications for final posttransition facilities that varies depending on a variety of factors, including whether a station has the same or different pre-transition and post-transition channel assignment, whether its current authorized DTV facilities matches the Final DTV Table 4 and whether the station plans to make any changes to the facilities specified in the Final DTV Table; Will expedite processing of applications for construction permits for post-transition DTV facilities specified in the Final DTV Table 5 and for facilities closely approximating those specified in the Table where the application proposes facilities that (a) do not expand the station s service area beyond that specified in the Final DTV Table of Allotments, (b) are no more than 5% smaller than the Table facilities with respect to predicted population, and (c) are filed within 45 days of the effective date of the Report and Order; Established the following deadlines by which stations must complete construction of their permanent, or post-transition, DTV facilities: May 18, 2008 stations that will operate post-transition on the same channel as their pre-transition DTV authorization using the facilities authorized in their current construction permit; August 18, 2008 stations that will operate posttransition on the same channel as their pre-transition DTV authorization, but with different facilities than they currently employ; February 17, 2009 stations that face unique technical problems, explained below, that effectively preclude construction of their post-transition facilities prior to that date; and, February 17, 2009 stations assigned a channel for post-transition DTV operations that is different from their pre-transition channel, including those that will operate post-transition on their analog channel or move to a new channel; Will allow stations with different pre-transition and posttransition channels to cease further construction of their pre-transition facilities while retaining interference protection for their full authorized post-transition facilities; Adopted a stricter standard for further extensions of construction deadlines leading up to the transition, acknowledging that in very limited circumstances it may grant an extension for a station that does not meet the stricter standard but can show extraordinary circumstances that warrant additional time to complete construction; Granted stations regulatory flexibility in connection with the move to their permanent DTV facilities, including: permitting stations moving to a different post-transition DTV channel to continue operating on their pretransition DTV channel after February 17, 2009, provided that the pre-transition channel is in-core, i.e. between channels 2 and 51, and operation on the channel will not cause unacceptable interference to other DTV stations; permitting stations facing technical difficulties in moving to their post-transition facilities to operate on their post-transition facilities with reduced power prior to February 17, 2009, as long as they continue to serve their current off-the-air viewers and will not cause unacceptable interference to other stations; 4 In Appendix B to the Table, the Commission specified the technical characteristics of each station s post-transition facilities, including its ERP, HAAT, antenna site, and antenna pattern. 5 As mentioned above, the Commission adopted the Final DTV Table in its 7 th Report and Order in the DTV proceeding. Approximately 123 petitions for reconsideration of that decision have been filed seeking modifications of various aspects of the Table. We assume, although the Commission has not expressly so stated, that the references in the Report and Order to the Final DTV Table is to the table as it will be revised in response to those petitions. 2

when necessary to complete construction of their post-transition facilities, permitting stations to temporarily reduce or cease service on their analog or pre-transition digital channel for periods of up to 30 days without Commission authority; when necessary to complete construction of their post-transition facilities, permitting stations to reduce or cease operation of their analog or pretransition digital stations for more than 30 days or permanently with prior Commission approval and, starting on November 19, 2008, upon notification to the Commission; Will require stations terminating or reducing their analog or pre-transition digital services prior to February 17, 2009 to provide extensive public notice of that fact for at least 30 days prior to terminating or reducing service; Will allow limited waivers of the freeze on the filing of applications to expand the service area of stations with different pre- and post-transition DTV channels where necessary to prevent the loss of service to existing viewers provided that the expansion (a) does not exceed 5 miles from the service area of the facilities specified in the Final DTV Table and (b) will not increase interference to another DTV station by more 0.5%; Will lift the filing freeze on August 17, 2008 for expanding the facilities of television stations and filing for new DTV allotments, although that schedule may slip if the Media Bureau has a backlog of transition-related applications at that time; Established rules, effective once the filing freeze is lifted, for adding new DTV allotments to the Table, and stated that it will process applications for new post-transition DTV stations or to maximize facilities specified in the Final DTV Table as long as the application will not increase the interference from that in the Final DTV Table by more than 0.5%; Modified the ATSC DTV standard to reflect the latest revisions; Clarified that both DTV permittees and licensees must pay the fees on revenue obtained from feeable ancillary and supplementary services; Clarified the station identification rule where stations carry programming provided by third parties on one or more of their multicast channel; and Emphasized the importance of broadcasters, cable operators and other MVPDs to coordinate the final transition to digital only operation. These rules became effective immediately upon publication of the Report and Order in the Federal Register on January 30, 2008. Reporting Requirements In order to monitor carefully the final stage of the transition, the Commission requires all full power television stations to file by February 19th a report setting forth (1) their current transition status, (2) any additional steps needed to commence their full, digital operations, and (3) their timeline to meet the February 17, 2009 transition deadline. Even stations that have already constructed their posttransition facilities must file the Feb. 19th report to confirm their status and indicate when they will terminate analog service. The report is to be filed on FCC Form 387, a new form. You should be gathering the information required by the form now so that you will be in a position to file it in a timely manner. Stations that have not completed construction of their post-transition DTV facilities will be required to update the information within 30 days of any material change in the information. At a minimum, stations that have not completed construction of their post-transition facility and applied for a license to cover by October 20, 2008 must update their form at that time. 3

Filing Applications for Post-Transition Facilities Who is required to file? While the Commission has specified in the Final DTV Table the post-transition facilities of every full power television station, that Table is not self-effectuating and stations that are not currently operating digitally on their post-transition channel with the facilities they will use post-transition will be required to file applications for construction permits to modify their facilities to conform with the Table or for authority to operate post-transition with different facilities. However, the Commission will continue to enforce the filing freeze (with one minor exception explained below) until at least August 17, 2008. As a result, until that date, it will generally not allow stations to apply for facilities with service areas that extend on any radial beyond the service contours of the facilities authorized in the Table. What are stations required to file? The filing requirements vary depending on whether a station has the same or different pre- and post-transition channel, and, if the pre- and post-transition channels are the same, whether the facilities authorized in their current authorization are the same or different from those in the Final DTV Table. Stations with the Same Pre- and Post-DTV Channels: 1. 2. Stations that are currently operating with their posttransition DTV facilities and have a license for those facilities must file the FCC Form 387. Otherwise, they are set and need not make any other filings, unless they wish to modify their facilities at a later date. In that event, they can file applications to modify their facilities after August 17th. Stations that have a construction permit to construct their post-transition channel that matches the facility specified in the Final DTV Table do not need to file any additional construction permit application. Once these stations have completed construction and have begun 3. operation pursuant to program test authority, they must file a license to cover application. Stations that (a) intend to operate post-transition with their facilities specified in the Final DTV Table (the Appendix B facilities), but do not have an authorization that conforms to the Final DTV Table (e.g., the center of radiation or ERP is different or a different antenna will be used), or (b) wish to operate post-transition with facilities different from those specified in the Final DTV Table, including those stations that wish to operate post-transition with their currently licensed or CP DTV facilities, must file an application for a construction permit for the modified facilities. 6 These modification applications must comply with the filing freeze and other requirements set forth below. 7 These applications may be filed immediately and need not wait until the effective date of the Report and Order. Stations with Different Pre- and Post-Transition DTV Channels: Stations with different pre- and post-transition DTV channels must file an application for a construction permit to construct the post-transition facilities specified in the Final DTV Table. These stations can request minor modifications from the Final DTV Table facilities, as long as they satisfy the filing freeze and other requirements set forth below. These applications can be filed at any time after the effective date of the Report and Order. However, in order to be eligible for expedited processing as discussed below, applications must be filed within 45 days of the effective date of the Report and Order. In addition, stations with pending petitions for reconsideration of the Final DTV Table should 6 If a station filed a petition for reconsideration of the Final DTV Table to specify its currently authorized facilities, the Commission s decision on reconsideration of the 7 th Report and Order adopting the table may obviate the need to file an additional application to modify the facilities. 7 Under the filing freeze, stations may not seek any modifications of their facilities that will extend their service contours beyond those specified in the Final DTV Table. As noted below, the Commission will waive the freeze in certain limited circumstances. 4

wait until the Commission rules on their petition before filing any application for their post-transition facilities. Expedited Processing of Applications for Post-Transition Facilities The Commission will give expedited processing (generally within ten days) to applications that: Do not seek to expand the station s facilities beyond its Final DTV Table facilities; Specify facilities that are no more than 5% smaller (measured by population) than the station s Final DTV Table facilities; and Are filed within 45 days of the effective date of the Report and Order. Deadlines for Construction of Full Authorized Post-Transition Facilities The Commission adopted the following deadlines for construction of stations full authorized post-transition facilities: 1. 2. 3. Stations that will use their pre-transition channels and already have a construction permit that matches their post-transition facilities must construct their full, authorized post-transition facilities and file an application for a license to cover the construction permit by May 18, 2008, except that stations with construction permits that have not yet expired must meet the existing deadlines in those construction permits, which presumably are earlier than May 18th. Stations that will use their pre-transition channels but do not yet have a construction permit that matches their post-transition facilities must construct those facilities and file an application for a license to cover the construction permit by August 18, 2008. Stations that will return to their analog channels or move to a new digital channel after the transition must construct their full, authorized post-transition facilities by February 17, 2009. These stations may cease further construction of their pre-transition DTV facilities and will retain interference protection for their full authorized post-transition facilities. Stations that wish to continue construction of their pre-transition DTV facility must complete such construction within 30 days after the effective date of the Report and Order. 4. Stations that demonstrate that they face a unique technical challenge which prevents construction of their post-transition facilities must construct their full, authorized post-transition facilities by February 17, 2009. Unique technical challenges are typically situations where the stations cannot operate their full post-transition facilities simultaneously with their pretransition facilities due to physical limitations such as antenna positioning on the tower, inability of the tower structurally to accommodate additional antennas, insufficient space at the transmitter site for additional equipment, or insufficient power. These stations must document their status in their applications for post-transition facilities (if applicable) or by filing an electronic notification; they must also indicate their status on Form 387. Extensions of Construction Deadlines Extension of Post-Transition Construction Deadlines The Commission adopted stricter standards for extensions of these construction deadlines for post-transition facilities, and stressed that every station s authority to operate on pretransition channels, both analog and digital, will expire on February 17, 2009. Only those stations that have requested and been granted specific authority may continue operating on their pre-transition channels after that date. (See below for a discussion of this option.) The Report and Order stressed that we can no longer allow extensions except in the most serious, extraordinary, or truly unavoidable circumstances, such as bankruptcy or zoning or other impediments beyond the station s control. 5

The Commission highlighted the following points: Circumstances beyond a licensee s control, including zoning issues and international coordination, will be considered in evaluating an extension request; The lack of equipment will no longer be considered as justifying an extension, unless there are extraordinary circumstances, such as the bankruptcy of the supplier; and Absent extraordinary circumstances, to obtain an extension on the grounds of financial hardship, a station must show that it is subject to bankruptcy or receivership proceedings or has had negative cash flow for the past three years. The revised standards for obtaining an extension of a construction permit apply to all pending and future requests to extend the post-transition construction deadlines set forth above. Stations subject to the May 18 and August 18, 2008 deadlines that seek extensions and are able to satisfy the new criteria will receive extensions through February 17, 2009. Construction of Pre-Transition Facilities As noted above, the Commission has stated that stations that have not completed construction of their pre-transition DTV facilities need not complete construction and can turn their efforts to the completion of their post-transition facilities. Indeed, it has made clear that stations should be focused on post-transition construction and has suggested in the Report and Order that it will not grant further extensions of the deadlines for pre-transition channels for stations that have been assigned different pre-transition and post-transition channels. Sanctions for Failure to Meet These Deadlines Stations that cannot satisfy these criteria for obtaining an extension of their construction permit and who do not complete construction of their post-transition facility will be admonished, will be placed in remedial programs, will be subjected to forfeitures, will lose interference protection to their unbuilt service areas, and/or will not be permitted to apply for expanded facilities. These stations will also be required to notify their viewers that the station will not be serving some or all of these viewers beginning February 18, 2009. (See below for a discussion of the notification requirements.) When Must Extension Requests be Filed? Extension requests must be filed electronically on Form 337 and must be received by the Commission at least 60 days (and no more than 90 days) prior to the expiring construction deadline. Extensions of Post-February 18, 2009 Construction Deadlines Where a station obtains a construction permit to modify its post-transition facilities, it will be subject to the more rigorous tolling standard of Section 73.3598(b) of the rules to obtain an extension of the construction deadline. Under that provision, construction deadlines are tolled (extended) only when (1) construction is prevented due to an act of God, (2) grant of the construction permit is the subject of administrative review, or (3) construction is delayed by court proceedings such as zoning or environmental disputes. Stations must notify the Commission of tolling events electronically. Tolling due to acts of God automatically ceases after six months unless further notifications are filed. Phased Transition Stations Facing Unique Difficulties in Transitioning While the Commission is very serious about having all stations operating with their full authorized post-transition facilities by February 18, 2009, it recognizes that some flexibility may be required to accommodate stations that are experiencing difficulties in constructing their post-transition facilities but which do not qualify for an extension of their deadlines under the strict standards adopted in the Report 6

and Order. For those stations, it adopted the following options: Remaining temporarily on in-core pre-transition channels after February 17, 2009. Stations moving to new digital channels may remain temporarily on their in-core pre-transition channels for a period up to one year after February 17, 2009 while they complete their post-transition facilities, as long as they: build facilities that serve at least the same population as their current analog and DTV service, 8 and do not cause impermissible interference or prevent other stations from making their transition. 9 Stations seeking this relief must request Special Temporary Authority ( STA ) no later than August 17, 2008, and may not apply for expanded facilities until they complete construction and commence operation on their posttransition channel. The construction deadline for their post-transition facilities will be extended for the time they operate on their pre-transition channels. This option is not available to stations operating on out-of-core channels (Channels 52 and above). Post-transition Operation with Reduced Facilities Stations will be allowed to operate their post-transition facilities at reduced power pursuant to an STA for no longer than six months after the transition deadline if they can demonstrate that they face: a qualifying unique technical challenge and will serve at least 85% of the population served by their current TV and DTV service, 10 or a significant technical impediment to construction of their full authorized facilities that does not otherwise qualify as a unique technical challenge, and will serve at least 100% of the population served by their current TV and DTV service. In either case, the stations must not cause impermissible interference or prevent other stations from making their transition. Stations serving less than 100% of the population served by their current TV and DTV service are required to notify viewers at least 30 days in advance. (See below for a discussion of the notification requirements.) The Commission notes that stations should apply early for this authority perhaps as early as Spring 2008 to allow time for review and to implement alternative plans in case the STA is denied. Service Disruptions Necessary to Construct Post- Transition Facilities In addition to these two options of operating with pretransition facilities or giving stations the ability to operate with reduced post-transition facilities, the Commission will also allow stations that cannot construct their post-transition digital facilities without interrupting either analog or pretransition digital services the flexibility to reduce, interrupt or terminate either their analog or pre-transition digital facilities before February 17, 2009. 1. Temporary reduction or interruption of analog or pretransition digital service. Stations that wish to reduce or temporarily cease either their analog or digital operations in order to construct their post-transition facilities may do so for a period of 30 days or less without prior approval, upon notifying the Commission. Where a station plans to cease operation or reduce the area served within 30 days of February 17, 2009, it must provide the public the notice required of stations that will be terminating or reducing service permanently. (See below) Where a station anticipates that the reduction or interruption will last more than 30 days, it should use the procedure for permanent service reductions and terminations. 8 The Commission did not address the situation where the analog and digital facilities serve somewhat different areas. 9 The Commission concluded that the applicable interference standard will be 0.5% new interference to any station, i.e., 0.5% interference in addition to the interference the other station will incur under the Table. 10 The Commission will consider on a case-by-case basis requests for this relief from stations that would not serve 85% of their current viewers.. 7

2. Permanent reduction or early termination of analog or pre-transition digital service. Stations may permanently reduce or discontinue their analog or pre-transition DTV service prior to the transition date, provided: they demonstrate that the reduction or termination is directly related to the operation of its own or another station s post-transition facilities, and they notify viewers on the affected channel about the planned reduction or termination and tell them how to continue receiving the station, using the procedure discussed above. 11 These stations must obtain prior consent from the Commission and must file a request for an STA at least 90 days before the anticipated reduction or termination. 12 The Commission may deny requests if the public health or safety may be affected or other public interest considerations require maintaining pre-transition service. In addition, these stations must notify their viewers of the planned reduction or termination of service for 60 days prior to the reduction or termination. However, starting on November 19, 2008, 90 days before the transition date, stations will no longer need prior Commission approval and can notify the Commission that they will permanently reduce or cease operation of their analog or pre-transition digital facilities. Stations will be required to provide advance notice to their viewers for 60 days prior to the termination or reduction in service. Viewer Notification Requirements Stations that terminate or reduce their analog or pretransition DTV service are required to provide the public with notice beginning at least 30 days before discontinuing or reducing their service (or, for long term or permanent reduction or termination of analog service, at least 60 days in advance). This notice requirement also applies to stations that may not be able to complete construction of their posttransition facilities by February 17, 2009, and thus will not be in the position to provide post-transition digital service to all viewers. These announcements must air at least four times per day during the 30-day period, including at least once in prime time, and must include: 1. 2. 3. 4. 5. the station s call sign and community of license; the fact that the station must delay the construction and operation of its post-transition (DTV) service; information about the nature, scope, and anticipated duration of the station s post-transition service limitations; what viewers can do to continue to receive the station, i.e., how and when the station s digital signal can be received, or how to get service from another station affiliated with the same network and serving the same lost area; and the street address, email address (if available), and phone number of the station where viewers may register comments or request information. Waiving the Filing Freeze Currently, applications for modifications of any television facility will be processed only if they do not propose to expand service beyond its current Grade B contour, for analog stations, or the noise-limited contour of the facilities authorized in the Final DTV Table, for DTV applications. While the Commission plans to continue applying the freeze for applications for post-transition facilities, it recognizes that the freeze may preclude some stations, particularly those that plan to use their analog antenna for their digital service, from serving their existing audiences after February 17, 2009. Thus, it has provided for waivers of the freeze where: the station plans to use its analog antenna or a new antenna to avoid a significant reduction in posttransition service from its analog service area; 11 For long term or permanent analog reduction or termination, the notice requirement runs for the 60-day period prior to the planned reduction or termination. 12 The Report and Order extends the presumption that band-clearing arrangements between incumbent stations and new (non-broadcast) users on channels 59 69 are in the public interest to all out-of-core channels (52 69). 8

the service area expansion would not exceed five miles in any direction as compared to their authorized service area, as defined by the post-transition Final DTV Table; and operation as proposed would not cause impermissible interference to any other DTV station. 13 Maximization Lifting the Filing Freeze The Commission stated that it anticipates it will have completed the processing of all applications for posttransition facilities by August 17, 2008 and thus will lift the filing freeze on that date. However, it also stated that it will review that date as it gets closer in light of the status of the post-transition applications. Applications to expand facilities i.e., to maximize will not be accepted until that date. However, the Final DTV Table facilities will be protected until roughly one year after the date we intend to lift the filing freeze so that stations that are not be able to obtain construction permits for their desired post-transition facilities because of the freeze (e.g. are required to operate with a reduced ERP because they are using a different antenna) will not face competing applications when they seek to make full use of their desired facilities. The Commission anticipates that it will receive a large number of maximization applications once it lifts the freeze and has warned stations that they should not expect to receive grants by February 17, 2009 of applications filed after the freeze is lifted. Amending the Final DTV Table As noted, there are over 100 petitions for reconsideration of the Commission s 7 th Report and Order, which established the Final DTV Table. In order to facilitate the processing of these requests and others that may be required, the Commission delegated to the Media Bureau the authority to amend the Final DTV Table as needed to ensure that all fullpower stations can complete the DTV transition by February 17, 2009. The Commission also waived the normal rules applicable to the processing of requests to modify the table and authorized the Bureau to process appropriate requests without seeking public comment where the proposed modification will not cause unacceptable interference. We have been advised by the Media Bureau staff that stations may seek amendments to the Final DTV Table by filing an application for a modified license or construction permit. Post-Transition Interference Standard The Commission adopted a 0.5% new interference standard, which will apply to applications for post-transition facilities, future maximization applications, and applications to implement new allotments. New interference refers to interference in addition to the interference predicted to be caused by the interfering station s Final DTV Table of Allotment facilities. The 10% total interference standard i.e. under the former rules, no station could be subject to interference to more than 10% of the population within its noise-limited contour has been deleted since the Commission believes that no station should be subject to that level of interference in the Final DTV Table. Applicants must use 2000 census data. In addition, the Commission will allow applicants to specify the geographic cell size for the interference analysis as 2 km, 1 km, or 0.5 km. Further, it discontinued the 1 db beam-tilting penalty for UHF stations, but declined to adopt the use of actual vertical antenna patterns rather than the standard vertical pattern currently in use to avoid delays during the transition. It said that it intends to revisit the vertical pattern issue in the future. Similarly, the Commission intends to revisit the issue of variable desiredto-undesired interference ratios in cases where adjacentchannel transmitters are proposed to be located within the noise-limited service contour of another station. Proposed new allotments will continue to be evaluated using the Section 73.623(d) mileage separation requirements, although applications for the stations themselves will be evaluated using the new interference standard. Hence, applicants for new allotments will have to demonstrate that the proposed community of license satisfies the 13 The interference standard for post-transition facilities is 0.5% new interference. 9

geographic-spacing requirements, but will be able to file an application for the channel which does not meet the spacing requirements, as long as the proposed station does not cause more that 0.5% new interference to any existing station. Revised ATSC Standards The Commission modified its technical rules to incorporate the latest revisions to the ATSC DTV transmission standard A/53: ATSC Digital Television Standard, Part 1-6:2007. The new standard includes specifications for enhanced 8-VSB terrestrial broadcast, which allow broadcasts to allocate the data rate between main service and enhanced service data, and describes the coding constrains that apply to the use of MPEG-2 systems. The Commission also requires stations to use the latest versions of the ATSC PSIP. 14 PSIP data provides the method by which DTV receivers identify a station and determine how a receiver can tune to it. The PSIP data identifies the channel number and its analog channel number, which is the channel viewers will use to identify the station. Under the rules, stations will continue to be identified post-transition by their analog channel number, even if they are operating on a different channel. PSIP also tells the receiver whether there are multiple program streams being broadcast and how to find them, whether a program is being broadcast in HD or standard definition, the V-chip information, whether the program is closed-captioned, and other program information. Fees on Ancillary and Supplemental Services Section 73.624(g) of the Commission s rules requires licensees of digital television stations to pay a fee of 5% of any revenues earned from ancillary or supplementary services. In this Report and Order, the Commission clarified that obligation also extends to permittees of DTV stations and stations operating pursuant to STAs. Ancillary or supplementary services are subscription services offered by a DTV station or services for which the licensee is paid. It does not include any services supported by advertising revenues. Station Identification Programming Supplied by an Outside Source The current station identification rules for digital stations is the same as the rule for analog stations, i.e., stations are required to announce visually or aurally, hourly and at the beginning and end of their broadcast day, the station s call letters and community of license. Stations may, if they wish, include the station s frequency, channel number and licensee name and/or network. For stations providing a multicast service, the rule allows the station to provide an identification of the multicast channel, e.g., Station WXXX- DT. 26.1, Station WXXX-DT, 26.2. In this Report and Order, the Commission modified the station identification rule to allow stations that carry programming provided by another source on a multicast channel to provide information concerning the source of that multicast programming, if the station so chooses. However, the format of that identification must be: Station WYYY-DT, Hometown, State A, (the transmitting station s city of license) bringing you WXXX, Theirtown, State A. 15 Stations may not include the channel or frequency of the source of the programming since the Commission felt that providing that information would confuse the audience. If the programming is provided by an entity that is not a licensee, the producer can be identified in the same manner. Stations should also remember that the multicast broadcasts are subject to the same sponsorship identification rules as the broadcasts on the primary channel. Thus, where a station is paid to carry programming, that fact must be broadcast at the beginning and end of each such broadcast, e.g. This programming is paid for [or furnished by] Station WXXX, Theirtown. 14 PSIP stands for Program System and Information Protocol. 15 Licensees can continue to include the channel number or frequency in the identification of their station. Thus, a station operating on Channel 20 could identify itself as: Station WZZZ-DT, Channel 20.2, Hometown, State A, bringing you programming produced by The Production Company. 10

Obligations of MVPD s with Respect to Carriage of DTV Stations after the Transition In the Report and Order, the Commission reminds television stations, cable operators, and other MVPDs of the need to coordinate the transition to digital only operation. Under the Commission s DTV must carry decision, cable operators are required to carry the digital programming of mustcarry DTV television stations commencing on February 18, 2009 and are required to down-convert, at the cable operator s expense, the DTV signal to analog if they do not operate a digital-only cable system. In addition, cable operators will be required to carry the signal of DTV-only must-carry television stations prior to February 18th. As such, must-carry stations that cease analog operation early will be entitled to mandatory carriage when they shut down their analog operations, although the station will be responsible for the costs of down-conversation. In addition, cable systems are only required to carry the signals of must-carry television stations that deliver a good quality signal defined as -61dBm to the cable headend. It is clear from the Report and Order that it is in the best interests of television stations relying on cable must-carry to coordinate their conversion with the cable operators in their area so that their programming is carried as they migrate to a digital-only operation. These new rules are very complex and not easy to follow. All stations should begin preparing the Form 387, since all stations will be required to file that Form no later than February 19th less than a month from now. If you have any questions or would like assistance in preparing Form 387, please let Ted Frank, Maureen Jeffreys, or Don Stepka know. Our contact information is set forth below. Ted Frank: +1 202.942.5790 theodore.frank@aporter.com Maureen Jeffreys +1 202.942.6608 maureen.jeffreys@aporter.com Don Stepka +1 202.942.5887 donald.stepka@aporter.com 11