PUBLIC NOTICE Federal Communications Commission 445 12 th Street, S.W. Washington, D.C. 20554 News Media Information 202 / 418-0500 Internet: https://www.fcc.gov TTY: 1-888-835-5322 MEDIA BUREAU SEEKS COMMENT ON UPDATES TO CATALOG OF REIMBURSEMENT EXPENSES MB Docket No. 16-306 GN Docket No. 12-268 DA 16-1164 Released: October 13, 2016 Comments Due: November 14, 2016 Reply Comments Due: November 29, 2016 Background. In the Incentive Auction Report and Order, 1 the Commission set forth the process for reimbursing eligible broadcasters and Multichannel-Video-Programming-Distributors (MVPDs) from the $1.75 billion TV Broadcaster Relocation Fund (Fund) established by the Spectrum Act. 2 The Commission delegated authority to the Media Bureau to, inter alia, develop the form to be used by entities claiming reimbursement from the Fund and to develop a catalog of eligible reimbursement expenses (Catalog) for reimbursement-eligible entities to use as a guide. 3 As the Commission has explained, the Catalog is not intended to be a definitive list of all reimbursable expenses. 4 Rather, it is a means of facilitating the process of claiming reimbursement by setting forth categories of expenses that are most likely to be incurred by relocated broadcasters and MVPDs. The Commission initially engaged Widelity, Inc. (Widelity), in 2013 to develop a catalog of potentially eligible expenses that were likely to be incurred by broadcasters and MVPDs as a result of the post-incentive auction channel transition, which we adopted after seeking comment. 5 We previously 1 Expanding the Economic and Innovation Opportunities of Spectrum Through Incentive Auctions, GN Docket No. 12-268, Report and Order, 29 FCC Rcd 6567, 6812-6826, paras. 598-636 (2014), affirmed, National Association of Broadcasters v. FCC, 789 F.3d 165 (D.C. Cir. 2015) (Incentive Auction R&O). 2 Middle Class Tax Relief and Job Creation Act of 2012, Pub. L. No. 112-96, 6402, 6403, 125 Stat. 156 (2012) (Spectrum Act) at 6403(d)(1); 47 U.S.C. 309(j)(8)(G)(iii)(I). The Spectrum Act requires the Commission to reimburse costs reasonably incurred by broadcast television licensees that are involuntarily reassigned to new channels as a result of the incentive auction and by MVPDs in order to continue carrying the signals of licensees reassigned to new channels as a result of the incentive auction. 47 U.S.C. 1452(b)(4)(A)(i)-(ii). 3 See Incentive Auction R&O, 29 FCC Rcd at 6820, para. 619 (delegating authority to the Media Bureau to establish the timing and calculate the amount of allocations to eligible entities from the Reimbursement Fund, develop a final Catalog of Eligible Expenses, and make other determinations regarding eligible costs and the reimbursement process. ). 4 Id. at 6817-18, para. 611 (stating that the Catalog will contain a list of many, but not necessarily all, of the modifications an eligible entity may have to make). 5 See Media Bureau Seeks Comment on Catalog of Eligible Expenses and Other Issues Related to the Reimbursement of Broadcaster Channel Reassignment Costs, GN Docket No. 12-268, Public Notice, 28 FCC Rcd 13787 (MB 2013) (Catalog of Expenses Comment PN). See also Media Bureau Seeks Comment on Widelity Report (continued.)
Federal Communications Commission DA 16-1164 sought comment on, 6 but have not yet adopted, baseline cost estimates for the eligible expenses listed in this Catalog. 7 In order to update the prior results, the Commission has again engaged Widelity to determine whether any of the expenses listed in the Catalog, and whether the baseline costs previously proposed, should be modified or supplemented so that the Catalog more accurately reflects the current market for reimbursement-eligible services and equipment. Comment Sought on Updated Catalog. We seek comment on the proposed updated Catalog, which is attached to this Public Notice as the Appendix. 8 The proposed changes to the Catalog include several increases in baseline costs previously proposed; the addition of new categories of expenses; and the removal of other categories of expenses which have been discontinued or will likely not be required due to technological advancements. After considering the comments we receive, we will adopt an updated Catalog, including baseline costs for listed expenses. Consistent with our past practice, we will make the Catalog available as a stand-alone document on the Commission s website for reimbursement-eligible entities to consult. It will also be embedded as part of the on-line Reimbursement Form, FCC Form 2100, Schedule 399, which will be used by entities seeking reimbursement to file estimated costs and reimbursement claims for actual costs incurred. After finalizing the Catalog, we will resubmit the Reimbursement Form to OMB, for approval under the PRA of the changes resulting from the modifications to the Catalog, as well as other minor modifications designed to help filers describe their claims. 9 Comment Sought on Methodology for Updating Baseline Costs during Reimbursement Period. We seek comment on a methodology for adjusting the baseline costs included in the Catalog throughout (Continued from previous page) and Catalog of Potential Expenses and Estimated Costs, GN Docket No. 12-268, Public Notice, 29 FCC Rcd 2989 (MB 2014) (Widelity Report PN). After considering the comments, we released a public notice that announced that we would submit the Reimbursement Form to the Office of Management and Budget (OMB) for approval under the Paperwork Reduction Act (PRA), adopted the Catalog, and provided guidance on certain aspects of the reimbursement process. Media Bureau Finalizes Reimbursement Form for Submission to OMB and Adopts Catalog of Expenses, GN Docket No. 12-268, Public Notice, 30 FCC Rcd 11701 (MB 2015) (Reimbursement Form PN). 6 See Widelity Report PN. 7 See Reimbursement Form PN, 30 FCC Rcd at 11702, n.9 ( We will adopt the baseline estimated costs for the expenses in the catalog in a future Public Notice. ). The Commission has explained previously that the Catalog will include a predetermined estimate of the cost, or range of costs, for equipment and other expenses listed in the Catalog. See Incentive Auction R&O, 29 FCC Rcd at 6817-18, para. 611. When submitting its estimated relocation costs, an eligible entity may select either the predetermined cost estimate from the Catalog or provide its own individualized estimate. Id. An eligible entity that rejects the predetermined cost estimate in the Catalog as too low will be required to justify the higher cost by submitting supporting evidence and to certify that the estimate is made in good faith. Id. The Media Bureau will review the required justification and may accept it or substitute a different amount for purposes of calculating the initial allocation. Id. at 6818, para. 613. 8 To highlight the proposed changes to the Catalog, the appended Catalog illustrates the proposed revisions to the Catalog using strikeout to indicate proposed deletions and italics to indicate proposed substantive additions. See Appendix. 9 In addition to any changes to the Reimbursement Form warranted by updates to the Catalog, we will add check boxes to the Reimbursement Form to allow an entity to indicate if it is seeking reimbursement for equipment that includes an optional upgrade or requesting partial payment for a particular expense. See Incentive Auction R&O, 29 FCC Rcd at 6822-23, para. 624 ( Eligible stations and MVPDs may elect to purchase optional equipment capability or make other upgrades at their own cost, but only the cost of the equipment without optional upgrades is a reimbursable expense. ). 2
Federal Communications Commission DA 16-1164 the three-year reimbursement period. 10 To ensure that the baseline costs remain current throughout the reimbursement period, it will be necessary to periodically adjust them to reflect the natural changes in the economy that affect pricing. Accordingly, we propose to modify the baseline costs contained in the Catalog annually based upon the Producer Price Indexes (PPI). 11 We propose to rely upon the PPI annual average, specifically the WPUFD4 series, as calculated by the Bureau of Labor Statistics (BLS), 12 rather than the seasonally-adjusted final demand index. 13 Because prices for broadcaster and MVPD equipment and services are not affected by cyclical factors such as weather or holidays, we tentatively conclude to use the annual average throughout the three-year reimbursement period because of its reliability and consistency. 14 We propose to update the costs in the Catalog once each year after the annual average PPI value for the WPUFD4 dataset is released by the BLS. We seek comment on this proposal. Comment Filing Procedures. Pursuant to sections 1.415 and 1.419 of the Commission s rules, 15 interested parties may file comments and reply comments on or before the dates indicated on the first page of this document. Comments may be filed using the Commission s Electronic Comment Filing System (ECFS). 16 Electronic Filers: Comments may be filed electronically using the Internet by accessing the 10 See Reimbursement Form PN, 30 FCC Rcd at 11702, n.9 ( [W]e intend to seek comment on the appropriate means of adjusting the baseline costs for the commonly purchased equipment and services included in the catalog from year-to-year. ). The reimbursement period is the period ending three years after the completion of the forward auction. See 47 CFR 73.3700(a)(13). See also 47 U.S.C. 1452(b)(4)(D). 11 The PPI program measures the average change over time in the selling prices received by domestic producers for their output. The prices included in the PPI are from the first commercial transaction for many products and some services. Bureau of Labor Statistics, U.S. Department of Labor, Producer Price Indexes, http://www.bls.gov/ppi/home.htm (last visited Oct. 11, 2016). 12 The PPI, which is widely used as an economic indicator to measure average change in production costs over time, applies the Final Demand-Intermediate Demand system as its primary aggregation structure to incorporate goods, services, construction, government purchases, and exports in its data. Bureau of Labor Statistics, U.S. Department of Labor, Frequently Asked Questions, Question 2: How are PPIs used?, http://www.bls.gov/ppi/ppifaq.htm#2 (last visited Oct. 11, 2016). 13 Bureau of Labor Statistics, U.S. Department of Labor, Data Tools: Price Index Commodity Data: Final demand - WPUFD4, http://data.bls.gov/cgi-bin/surveymost?wp (last visited Oct. 11, 2016). 14 We believe the reliability of the annual average, as opposed to a seasonally-adjusted final demand, makes it appropriate to use this index throughout the three-year reimbursement period. Although the broadcast equipment index is a robust categorical match, BLS states that specific indexes are most likely to be discontinued or pose gaps in availability. Bureau of Labor Statistics, U.S. Department of Labor, Frequently Asked Questions, Question 18: What price index should I use for escalation?, http://www.bls.gov/ppi/ppifaq.htm#18 (last visited Oct. 11, 2016). The broader wired telecommunications index was expanded in 2012 to include telephone service, internet service, bundled services, and advertising. Bureau of Labor Statistics, U.S. Department of Labor, Producer Price Indexes for Wired Telecommunications Carriers NAICS 517110, http://www.bls.gov/ppi/naics517110.htm (last visited Oct. 11, 2016). A comparison between the final demand index and the wired telecommunications index of previous years indicates favorable terms for broadcasters under the annual average, not seasonally-adjusted final demand index. Bureau of Labor Statistics, U.S. Department of Labor, Databases, Tables & Calculators by Subject, Wired telecommunications carriers, http://data.bls.gov/timeseries/pcu517110517110, (last visited Oct. 11, 2016). 15 47 CFR 1.415, 1.419. The Notice of Proposed Rulemaking in GN Docket No. 12-268 included an Initial Regulatory Flexibility Analysis (IRFA) pursuant to 5 U.S.C. 603, exploring the potential impact of the Commission s proposal on small entities. Expanding the Economic and Innovation Opportunities of Spectrum Through Incentive Auctions, GN Docket No. 12-268, Notice of Proposed Rulemaking, 27 FCC Rcd 12357, app. B at 12523-44, paras. 1-95 (2012). The matters discussed in this Public Notice do not modify in any way the IRFA we previously issued. 16 Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121 (1998). 3
Federal Communications Commission DA 16-1164 ECFS: http://apps.fcc.gov/ecfs/. Paper Filers: Parties who choose to file by paper must file an original and one copy of each filing. If more than one docket or rulemaking number appears in the caption of this proceeding, filers must submit two additional copies for each additional docket or rulemaking number. Filings can be sent by hand or messenger delivery, by commercial overnight courier, or by firstclass or overnight U.S. Postal Service mail. All filings must be addressed to the Commission s Secretary, Office of the Secretary, Federal Communications Commission. All hand-delivered or messenger-delivered paper filings for the Commission s Secretary must be delivered to FCC Headquarters at 445 12 th St., SW, Room TW-A325, Washington, DC 20554. The filing hours are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held together with rubber bands or fasteners. Any envelopes and boxes must be disposed of before entering the building. Commercial overnight mail (other than U.S. Postal Service Express Mail and Priority Mail) must be sent to 9300 East Hampton Drive, Capitol Heights, MD 20743. U.S. Postal Service first-class, Express, and Priority mail must be addressed to 445 12 th Street, SW, Washington DC 20554. People with Disabilities: To request materials in accessible formats for people with disabilities (braille, large print, electronic files, audio format), send an e-mail to fcc504@fcc.gov or call the Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-418-0432 (tty). Ex Parte Presentations. The proceeding shall be treated as a permit-but-disclose proceeding in accordance with the Commission s ex parte rules. 17 Persons making ex parte presentations must file a copy of any written presentation or a memorandum summarizing any oral presentation within two business days after the presentation (unless a different deadline applicable to the Sunshine period applies). 18 Persons making oral ex parte presentations are reminded that memoranda summarizing the presentation must (1) list all persons attending or otherwise participating in the meeting at which the ex parte presentation was made, and (2) summarize all data presented and arguments made during the presentation. If the presentation consisted in whole or in part of the presentation of data or arguments already reflected in the presenter s written comments, memoranda or other filings in the proceeding, the presenter may provide citations to such data or arguments in his or her prior comments, memoranda, or other filings (specifying the relevant page and/or paragraph numbers where such data or arguments can be found) in lieu of summarizing them in the memorandum. Documents shown or given to Commission staff during ex parte meetings are deemed to be written ex parte presentations and must be filed consistent with 1.1206(b) of the rules. In proceedings governed by 1.49(f) of the rules or for which the Commission has made available a method of electronic filing, written ex parte presentations and memoranda summarizing oral ex parte presentations, and all attachments thereto, must be filed through the electronic comment filing system available for that proceeding, and must be filed in their native format (e.g.,.doc,.xml,.ppt, searchable.pdf). Participants in this proceeding should familiarize themselves with the Commission s ex parte rules. Additional Information. For additional information on this proceeding, contact Pamela Gallant, Pamela.Gallant@fcc.gov, (202-418-0614), or Raphael Sznajder, Raphael.Sznajder@fcc.gov, (202-418- 1648), of the Media Bureau, Video Division. Press contact: Charles Meisch, Charles.Meisch@fcc.gov, (202-418-2943), of the Incentive Auction Task Force. 17 47 CFR 1.1200 et seq. 18 47 CFR 1.1203. 4
Federal Communications Commission DA 16-1164 FCC 5
APPENDIX CATALOG OF POTENTIAL EXPENSES AND ESTIMATED COSTS October 13, 2016 2016 Update
Table of Contents I. ABOUT THIS CATALOG...- 2 - II. BROADCAST COSTS...- 3 - A. TRANSMITTERS AND IN-BUILDING EXPENSES...- 3-1. Retune Existing Transmitter...- 3-2. New Transmitters...- 5-3. Other Transmitter Expenses...- 7 - B. ANTENNAS...- 8 - C. TRANSMISSION LINES...- 10 - D. TOWER EQUIPMENT AND RIGGING...- 12 - E. INTERIM FACILITIES...- 13 - F. SPECIAL CASES...- 14-1. Channel 14...- 14-2. Distributed Transmission Services (DTS)...- 14-3. AM Pattern Disturbance...- 15 - G. MISCELLANEOUS EXPENSES...- 15-1. DTV Medical Facility Notification...- 15-2. Other...- 15 - H. PROFESSIONAL SERVICES...- 16 - III. MVPD COSTS...- 18 - IV. FIGURES...- 19-1
I. ABOUT THIS CATALOG This catalog of expenses (Catalog) contains descriptions of the expenses that broadcasters and MVPDs are most likely to incur as a result of broadcaster repacking. While we believe the Catalog is relatively comprehensive, it does not cover every expense, for every situation, nor is it an exhaustive list of all expenses that may potentially qualify for reimbursement. Widelity, Inc. (Widelity) developed the original Catalog in 2013 for the Federal Communications Commission (FCC) as part of the Widelity Report, which was published for comment in 2014 (DA/FCC: DA-14-389). As part of the ongoing Broadcast Television Incentive Auction, the FCC engaged Widelity to update the Catalog to reflect the current pricing for the equipment and services that repacked broadcasters may need to purchase to facilitate the moves to their new channel assignments, and the current pricing for equipment and services that MVPDs may need to purchase to continue to carry broadcasters. Widelity first developed the information contained in this Catalog based on its research and interviews with industry stakeholders, conducted in 2013, and later updated in August of 2016, pursuant to its contract with the FCC. The categories and costs contained in the Catalog are intended to serve as a reference guide, and are not intended to identify the particular expenses for which individual broadcasters or MVPDs would be eligible for reimbursement. Individual broadcasters and/or MVPDs will incur only some of the expenses listed in the Catalog, depending upon the broadcaster s or MVPD s existing equipment and the particular transition changes that the entity must make. Some of the expenses will apply only in limited situations, such as, for example, broadcasters operating on a shared antenna or those that require additional power to support an interim transmitter. Supply and demand constraints may have an impact on future costs. - 2 -
II. BROADCAST COSTS A. TRANSMITTERS AND IN-BUILDING EXPENSES 1. Retuning Existing Transmitters Depending on a broadcaster s new channel assignment, it may be able to retune its existing transmitter to transmit on the new channel rather than replace it. Transmitters can be retuned only to channels within the same band (e.g., UHF transmitters can only be retuned to channels within the UHF band). See Widelity Report pp. 17-18 regarding banding issues. Whether retuning is feasible depends on a number of factors, including the type of transmitter, the range of channels (sub-band) for which it and its component parts are designed, and whether replacement parts and manufacturer support are available. In some cases, replacement may be the preferred option if the cost of retuning exceeds the cost of a new transmitter. The transmitter output mask filter is channel-specific and must be replaced to accommodate any channel change. Our discussions indicate that there are a number of potential issues with Inductive Output Tube (IOT) transmitter retuning, including: IOT tubes that have been in service for an extended period may not come back up on the new channel once they have been powered down necessitating replacements that cannot be predicted before starting the retuning process. The lead time for delivery of new IOT tubes can be as long as 6 to 9 months. The skill set to retune IOT transmitters is no longer broadly available. This will cause resource constraints as stations consider retuning their existing IOT transmitters. Manufacturer support and certain parts necessary for retuning existing IOT transmitters may no longer be available. Range of Estimated Costs UHF Inductive Output Tube (IOT) Transmitter (Price would include banded drivers, RF system, and labor. The price does not include the cost of IOT tubes, finger stock and/or tube trolleys. Cost varies by manufacturer.) Single IOT system, minor banding issues (30 kw) 115,000 150,000 Two IOT system, minor banding issues (60 kw) 145,500 225,000 Three IOT system, minor banding issues (90 kw) 160,000 315,000 Proposed RoEC Single IOT system, major banding issues (30 kw) 226,000-3 -
Two IOT system, major banding issues (60 kw) 339,000 Three IOT system, major banding issues (90 kw) 452,000 One IOT system (30kW) 115,000 226,000 Two IOT systems (60 kw) 145,000 339,000 Three IOT systems (90 kw) 160,000 452,000 IOT replacement tube with accessories (price per tube) 75,000 121,000 Solid State Transmitter Prices based on specific channel move and would include field engineering and parts to retune the RF system but would not include the cost of a new mask filter, which is a separate line item below. Costs vary widely by manufacturer and power level. Retuning solid state transmitters is usually only feasible if the banding issues are minor. Stations that use solid state transmitters that have major banding issues will likely need a replacement solid state transmitter. UHF and VHF minor banding issues 10,000 100,000 10,000 100,000 New Mask Filter A new mask filter is required for any channel change 1.5 kw mask filter 2,700 2,800 3 kw mask filter 3,800 3,950 7 kw mask filter 5,600 5,900 10 kw mask filter 7,500 7,900 30 kw mask filter 30,000 31,000 60 kw mask filter 80,000 85,000 90 kw mask filter 90,000 95,000 New Exciter In a few cases, a station may need to purchase a new exciter if the existing exciter cannot be retuned. Single frequency agile exciter 20,000 20,000 Dual exciter system with change over 45,000 45,000-4 -
2. New Transmitters If retuning is not possible or if the cost of retuning exceeds the cost of replacement, a new transmitter may be required. The price of a new transmitter includes installation, mask filter, and proof of performance testing. 2013 Range of Estimated Costs 2016 Estimated Costs Proposed UHF IOT Transmitter Single One IOT system (30 kw) 450,000 525,000 475,000 549,000 Two IOT systems (60 kw) 815,000 855,000 835,000 907,000 Three IOT systems (90 kw) 1,205,000 1,275,000 1,345,000 UHF Air Cooled Solid State Transmitter 1 2.5 kw 35,000 90,000 40,000 120,000 4-6 kw 157,000 180,000 157,000 225,000 10 12 kw 245,000 320,000 245,000 320,000 15 kw 335,000 450,000 392,500 20 kw 530,000-580,000 555,000 UHF Liquid Cooled Solid State Transmitter 6.3 9.25 kw 250,000 315,000 10.5 12.3 kw 345,000 465,000 15 kw 460,000 550,000 18-20 kw 530,000 600,000 23.8 29.3 kw 685,000 835,000 40-50 kw 940,000 1,075,000 UHF Liquid Cooled Solid State Transmitter Previously Unavailable in Updated Ranges 4.9 6.5 kw 225,000 260,000 8.2-13 kw 270,000 470,000 14.2-20 kw 495,000 650,000-5 -
21-31 kw 675,000 900,000 35-50 kw 1,000,000 1,400,000 52-61 kw 1,550,000 1,700,000 68.5-75 kw 1,750,000 1,900,000 86.8 106 kw 2,100,000 2.500,000 High VHF Air Cooled Solid State Transmitter 1 kw 82,000 2.4 kw 135,000 3.3 kw 175,000 5 kw 260,000 10 12 kw 315,000 15 kw 450,000 20 kw 575,000 High VHF Air Cooled Solid State Transmitter Previously Unavailable in Updated Ranges 1.1 4.4 kw 47,000 145,000 6.5 12.5 kw 175,000 315,000 16.6 20.7 kw 400,000 500,000 24.5 kw 650,000 High VHF Liquid Cooled Solid State Transmitter Additional Category 3.3 6.5 kw 135,000 237,000 8.5 12.5 kw 291,000 425,500 16.6 20.7 kw 540,000 675,000 24.5 31.6 kw 877,500 950,000 48.0 kw 1,350,000 62.0 kw 1,700,000-6 -
3. Other Transmitter Expenses In limited situations, these expenses may apply in addition to those listed in Sections II.A.1 or II.A.2, above. 2013 Range of Estimated Costs 2016 Estimated Costs Proposed Combiners for Shared (Broadband Panel) Antenna (UHF/VHF) New combiner, cost per channel (without antenna) 50,000 60,000 50,000-80,000 Adding a module to existing combiner (without antenna) 50,000 50,000 80,000 Combiner output splitting/switching for dual feed lines, if applicable (additional item) 120,000 Electrical Service A station installing replacement transmitter equipment may have to increase the power supply to the transmitter or perform other electrical work (prices include labor and installation). Service entrance 3 phase/800 amp/208 volt 12,500 13,700 Switchgear industrial 800 amp 33,300 36,300 Transformer 3 phase/480v 150 KVA 22,300 24,300 Transformer 3 phase/480v 300 KVA 32,200 35,000 Transformer 3 phase/480v 500 KVA 42,300 46,000 2 Rigid Conduit and Wiring (Cost per foot) 23 25 3 Rigid Conduit and Wiring (Cost per foot) 45 49 4 Rigid Conduit and Wiring (Cost per foot) 88 96 HVAC Service Cooling only A station installing replacement transmitter equipment may need additional cooling capability (prices include labor and installation). 5 Ton system 17,500 19,250 10 Ton system 33,500 37,000 15 Ton system 48,000 53,000 25 Ton system 79,000 87,000 50 Ton system 150,000 164,000 HVAC Service Heating and Cooling A station installing replacement transmitter equipment may need additional air-handling capacity that includes both - 7 -
heating and cooling capability (prices include labor and installation). 10 Ton system 52,500 57,500 15 Ton system 76,000 84,000 20 Ton system 99,000 110,000 30 Ton system 144,000 158,000 50 Ton system 230,000 253,000 Transmitter Building Addition In limited situations, expansion of the transmitter building may be required to accommodate new equipment. Approx. 600-1500 square foot addition (costs vary with location, site access, and construction type) variable variable B. ANTENNAS Most stations moving to a new channel will require new antennas. The price of an antenna does not include installation or removal of existing antennas (for those expenses, see Section II.D, Tower Equipment and Rigging). In some cases, new transmission lines will also be required (for those expenses, see Section II.C, Transmission Lines). 2013 Range of Estimated Costs 2016 Estimated Costs Proposed UHF High Power Top Mount (200-1000 kw) One station antenna, horizontally polarized 150,000 225,000 150,000 235,000 One station antenna, -with V polarization or C polarization elliptically or circularly 180,000 270,000 180,000 275,000 polarized Two station broadband panel antenna with combiner, horizontally polarized 450,000 240,000 520,000 Two station broadband panel antenna, elliptically or circularly polarized (additional item) 325,000 730,000 Four station broadband panel antenna with combiner, horizontally polarized 850,000 285,000 740,000 Four station broadband panel antenna, elliptically or circularly polarized (additional item) 528,000 1,036,000 UHF Lower Power Side Mount One station 200-500 kw, horizontally polarized 125,000 180,000 125,000 180,000 One station 200-500 kw, elliptically or circularly polarized 150,000 216,000 150,000 216,000 One station antenna medium power (50-200 kw), horizontally polarized 50,000 72,000 50,000 85,000-8 -
One station antenna medium power (50-200 kw), elliptically or circularly (additional item) 56,000 98,000 polarized Class A single station antenna basic 12,000 21,000 12,000 25,000 Class A broadband panel (cost per panel) 825 825 1,200 Class A broadband panel (multiple channel array - example 4 panel complete array) 6,000 6,000 8,000 UHF Broadband Slot, Side Mount (additional category) 8 bay, 5 kw input, directional, horizontally polarized 10,000 8 bay, 20 kw input, directional, horizontally polarized 42,000 57,000 8 bay, 20 kw input, directional, elliptically or circularly polarized 82,000 16 bay, 8-10 kw input, directional, horizontally polarized 20,000 36,000 16 bay, 16 kw input, directional, horizontally polarized 43,000 16 bay, 40 kw input, directional, horizontally polarized 64,000 123,000 16 bay, 40 kw input, directional, elliptically or circularly polarized 157,000 24 bay, 15 kw input, directional, horizontally polarized 30,000 24 bay, 60 kw input, directional, horizontally polarized 145,000 181,000 24 bay, 60 kw input, directional, elliptically or circularly polarized 235,000 32 bay, 16 kw input, directional, horizontally polarized 71,000 32 bay, 32 kw input, directional, horizontally polarized 85,000 32 bay, 60-65 kw input, directional, horizontally polarized 120,000 200,000 UHF Broadband Panel, Side Mount Aux/Interim (additional category) 10 kw input, low gain, horizontally polarized 30,000 45,000 45 kw input, low gain, horizontally polarized 100,000 135,000 High-VHF One station antenna top mount, horizontally polarized 250,000 275,000 250,000 325,000 One station antenna top mount, with V polarization or C polarization elliptically 280,000 330,000 280,000 374,000 or circularly polarized One station antenna side mount, horizontally polarized 62,000 100,000 62,000 180,000 One station antenna side mount, elliptically or circularly polarized (additional item) 68,000 207,000 Shared broadband panel antenna 5 station, with V polarization or C polarization elliptically or circularly polarized 700,000 700,000 890,000-9 -
Shared broadband panel antenna 5 station with V polarization or C polarization, including combiner and transmission line 1,000,000 High-VHF, Low Power Class A basic slot antenna side mount, horizontally polarized 19,000 19,000 23,000 Class A basic slot antenna side mount, elliptically or circularly polarized (additional item) 23,000 26,500 Class A broadband panel (cost per panel), horizontally polarized 4,000 4,000 5,000 Class A broadband panel (multiple channel array - example 4 panel complete array), horizontally polarized 16,500 16,500 19,800 Other Sweep test of transmission line and existing antenna 4,500 4,500 6,400 Elbow complex, single channel, at antenna input, per 3-1/8 feedline (if needed) (additional item) 7,400 Elbow complex, broadband, at antenna input, per 3-1/8 feedline (if needed) (additional item) 8,880 Elbow complex, single channel, at antenna input, per 4-1/16 feedline (if needed) (additional item) 9,100 Elbow complex, broadband, at antenna input, per 4-1/16 feedline (if needed) (additional item) 10,400 Elbow complex, single channel, at antenna input, per 6-1/8 feedline (if needed) (additional item) 11,700 Elbow complex, broadband, at antenna input, per 6-1/8 feedline (if needed) (additional item) 13,000 Elbow complex, single channel, at antenna input, per 7-3/16 feedline (if needed) (additional item) 13,200 Elbow complex, broadband, at antenna input, per 7-3/16 feedline (if needed) (additional item) 16,000 Elbow complex, single channel, at antenna input, per 8-3/16 feedline (if needed) (additional item) 14,500 Elbow complex, broadband, at antenna input, per 8-3/16 feedline (if needed) (additional item) 18,000 Side mount brackets for high power antennas (if not included in antenna base cost) (additional item) 7,500 22,000 Pattern scatter analysis for side mount high/med power antennas (if not included in antenna base cost) (additional item) 3,800 5,000 Note: For stacked antennas, the cost of the bottom antenna will likely double due to the increased cost of structural components, such as heavier steel and longer structures C. TRANSMISSION LINES In some situations, transmission lines can be reused in the event of a channel change (e.g., if the move is to a non-prohibited channel or if the transmission line is broadband capable). See Fig. 1 below. New transmission lines, if needed for purchase, are generally priced per foot, based on a length of 1,000 feet. The price generally includes elbows and hangers. 2013 Range of Estimated Costs 2016 Estimated Costs - 10 -
Proposed Flexible Transmission Line Line Diameter: 7/8 foam dielectric 10 10 1 5/8 foam dielectric 23 23 2 1/4 foam dielectric 30 discontinued 7/8 air dielectric 17 17 1 5/8 air dielectric 31 31 2 1/4 air dielectric 42 discontinued 3 air dielectric 53 56 4 air dielectric 66 70 5 air dielectric 91 100 Rigid Transmission Line copper Line Diameter: 3 1/8 75 96 77-99 4 1/16 95 130 99-135 6 1/8 150 185 158-192 7 3/16 263 276 8 3/16 270 327 280-330 3 1/8 broadband previously reported as percentage 89 114 4 1/16 broadband previously reported as percentage 114-155 6 1/8 broadband previously reported as percentage 182 221 7 3/16 broadband previously reported as percentage 317 8 3/16 broadband previously reported as percentage 322 379 Note: Broadband rigid transmission line sections are generally 15% more expensive than other rigid line sections. - 11 -
D. TOWER EQUIPMENT AND RIGGING If replacement or additional antennas are required, it may be necessary to modify the existing tower or to construct a new tower. In addition to these expenses, a broadcaster replacing or adding an antenna would incur rigging costs. Existing Towers Towers without sufficient documentation of tower specifications may need to be mapped prior to completion of a tower load study. Tower mapping for an undocumented/poorly documented tower and preparation of documentation necessary for tower load study 2013 Range of Estimated Costs 2016 Estimated Costs Proposed 12,000 16,000 16,000-25,000 Structural engineering tower load study for documented tower 5,000 7,000 5,000-12,000 Structural engineering tower load study for a documented tower with candelabra 10,000 15,000-19,000 Minor tower reinforcement/modifications (see Fig. 2 for sample minor modifications) Major tower reinforcement/modifications (see Fig. 2 for sample major modifications) Serious tower reinforcement/modifications (see Fig. 2 for sample serious modifications) 100,000 150,000 100,000 150,000 300,000 400,000 300,000 400,000 500,000 1,000,000 500,000 1,000,000 New Towers Cost includes constructing a new tower, priced per foot. New tower between 1000 and 1500 without elevator, presumptive soil conditions 2,000 2,500 New tower between 1500 and 2000 without elevator, presumptive soil conditions 2,500 3,000 Note: Costs may be higher for tower sites with difficult soil or other site conditions and for towers with an elevator. Costs may be lower for towers under 1,000 feet - 12 -
Tower Rigging Costs include fees paid to expert tower crews for equipment removal and installation, such as removing an existing antenna and installing a replacement antenna, and removing an existing transmission line and installing a replacement transmission line. Tall Tower (greater than 500 ) 100,000 200,000 100,000 200,000 Short Tower (less than 500 ) 60,000 80,000 60,000 80,000 Complex Tower (includes, e.g., towers with candelabras and/or stacked antennas) 100,000 300,000 100,000 400,000 Helicopter Lift (e.g., for a rooftop tower, complex tower, tall structure, or terrain constrained location requiring helicopter lift) variable variable E. INTERIM FACILITIES Stations may need to use interim facilities in order to avoid prolonged off-air periods during the repacking or to enable stations to meet their construction deadlines. Some stations currently either have a licensed auxiliary facility or own backup equipment that they can repurpose for this use post-auction, while others may need to purchase or rent equipment or facilities. Transmitter Stations may need additional transmitters for interim use on either their pre- or postauction channels to permit continued operation during construction of their postauction facilities. Existing auxiliary or backup transmitters may require retuning or replacement. Transmitter retuning and replacement costs are listed above. Antenna Interim antenna rental and installation Costs will depend on antenna size and height and/or complexity of the tower. For purchase of interim antennas and/or replacement of existing auxiliary antennas, see Section II.B. Transmission Line For additional transmission line, see Section II.C. Tower Equipment and Rigging Costs will be similar to those described in Section II.D, Tower Equipment and Rigging, above. Interior RF Systems A station that needs an additional transmitter for interim use 2013 Range of Estimated Costs 2016 Estimated Costs Proposed 35,000 100,000 35,000-110,000-13 -
may need an additional interior RF system. UHF inside RF system including switching 130,000 140,000 VHF inside RF system including switching 70,000 75,000 F. SPECIAL CASES 1. Channel 14 Television broadcasters operating on Channel 14 are required to guard against interference with mobile use on frequencies 467-470 MHz. (See 47 CFR 73.687(e)) 2013 Range of Estimated Costs 2016 Estimated Costs Proposed RF Consulting Engineer (to determine correct mask filter to avoid interference) 5,000 5,000 Channel 14 Mask Filter 180,000 180,000 Additional field engineering time, 10-30 days (to test for interference after mask filter is installed) 20,000 60,000 20,000 60,000 2. Distributed Transmission Services (DTS) Television stations operating DTS systems will incur engineering costs related to each DTS site (instead of, and not in addition to, the RF consulting engineer category in Section II.H, Professional Services, below). RF Consulting Engineer (priced per DTS site) Critical Facility: Critical refers to operations that have signal overlap between adjacent DTS sites that are not terrain-shielded; such facilities will require exact power levels, signal synchronization, and antenna directional and elevation patterns to minimize interference between sites. 2013 Range of Estimated Costs 2016 Estimated Costs Proposed 2,000 8,000 2,000 8,000 Terrain-Shielded Facility: Terrain-shielded refers to operations that serve 1,000 2,500 1,000 2,500-14 -
regions that are terrain blocked from each other, resulting in less interference as compared to critical facilities. 3. AM Pattern Disturbance Stations constructing or making significant modifications to an antenna tower in the immediate vicinity of an AM radio station are required to analyze whether such construction or modification would result in disturbance to the AM station s radiation pattern. If it would, the television station is required to notify the AM station of the disturbance and take measures to correct it. (See 47 CFR 1.30000 et seq.) Impact study: to assess the potential impact of tower construction or modification on AM radio stations. Remedy: price includes installing the detuning apparatus or adjusting the existing detuning apparatus as necessary to restore proper operation of the directional or non-directional AM antenna, including before and after field measurements. 2013 Range of Estimated Costs 2016 Estimated Costs Proposed 2,500 7,500 2,500 7,500 5,000 20,000 5,000 20,000 G. MISCELLANEOUS EXPENSES 1. DTV Medical Facility Notification DTV broadcasters are required to notify nearby medical facilities of DTV channel changes pursuant to a condition in their construction permit. 2013 Range of Estimated Costs 2016 Estimated Costs Proposed Medical Facility Notification 1,300 3,500 2,000 11,000 2. Other Obtain building permits from local zoning authorities (cost of preparation, submission, and prosecution of necessary forms or applications) 2013 Range of Estimated Costs variable 2016 Estimated Costs Proposed variable - 15 -
Obtain local permits other than for zoning (cost of preparation, submission, and prosecution of necessary forms or applications) variable variable Coordinate with Bureau of Land Management and National Forest Service (this may be necessary for towers located on land managed by these agencies and would variable variable include the cost of preparing and submitting the relevant forms) Disposal Cost (for equipment and other waste, if applicable) variable variable Equipment Delivery and Handling Charges variable variable Equipment Storage variable variable Develop and Air Announcements of Upcoming Channel Change variable variable Notification to MVPDs of channel change variable variable Other Miscellaneous expenses variable variable H. PROFESSIONAL SERVICES Stations without sufficient internal resources, either at the station itself or at an affiliated station or company, may have to obtain professional services from an outside source to complete the station s channel relocation. 2013 Range of Estimated Costs 2016 Estimated Costs Proposed RF Consulting Engineer Fees Perform engineering study for new channel assignment and antenna development 2,000 7,000 2,000 7,000 Prepare engineering section of FCC Form 2100, Construction Permit Application 1,000 3,000 1,000 3,000 Prepare engineering section of FCC Form 2100, License to Cover Application 250-750 500-1,500 Prepare engineering section of FCC Form 2100, Construction Permit Application 500 2,000 (additional item) for an Auxiliary Antenna Prepare engineering section of FCC Form 2100, License to Cover Application for 500-1,500 (additional item) an Auxiliary Antenna Prepare request for Special Temporary Authorization 750 1,250 1,000-1,500 Attorney Fees Prepare and File FCC Form 2100, Construction Permit Application 750 2,500 750-5,000 Prepare and File FCC Form 2100, License to Cover Application 750 1,500 750-2,250 Prepare and File request for Special Temporary Authorization 750 1,500 750-3,500 Prepare and File FCC Form 2100, Construction Permit or License Application for 500-2,000 (additional item) an Auxiliary Antenna - 16 -
Negotiation of Lease and other matters for Shared Locations (additional item) 2,200-4,000 FCC Filing Fees (adjusted biennially) Form 301 minor change CP 970 FCC Form 2100, license to cover application 295 325 Special Temporary Authorization request 175 190 Other Transition-Related Personnel Professional Services Costs Project management of the transition, if needed (cost per hour) 50 125 50-150 Prepare and/or review reimbursement form (additional item) 750-2,500 Address transition timing and coordination issues with other stations and wireless (additional item) 900-2,500 Field Engineering Fees Comprehensive coverage verification via field study, if needed 20,000 80,000 20,000 80,000 RF Exposure Measurements (for sites where post-construction measurements have 3,000 20,000 3,000 20,000 customarily been required or conducted) Change in Structure Height Services: Modification to Antenna Structure Registration (ASR) (costs can be much higher for new towers) NEPA Section 106 environmental review, if needed 3,000 6,000 3,000 6,000 Environmental Assessment, if triggered by NEPA Section 106 review or for certain structures over 450 feet (cost in addition to NEPA review) 5,000 10,000+ 5,000 10,000 ASR modification (prepare FCC Form 854) 500 2,000 500 2,000 FAA consultant, including cost of preparing FAA Form 7460 (Notice of Proposed Construction), if needed for height increase 750 2,000 750 2,000-17 -
III. MVPD COSTS MVPDs that receive signals over-the-air may be required to make changes to their receive facilities in order to continue to receive a television station s signal that is changing channels. This table identifies the kinds of changes MVPDs may be required to make in order to continue delivering a repacked broadcaster s signal to its customers after the broadcaster has delivered its signal to the MVPD. Costs in this section will vary based on market size and the type of system utilized. Equipment Costs New Receive Antenna Installed. Necessitated if existing antenna is channel-specific or uses directivity to minimize interference from other stations. Some UHF and VHF broadband receive antennas should be able to continue receiving stations that are not changing bands. 2013 Range of Estimated Costs 2016 Estimated Costs Proposed 1,500 2,000 1,500 2,000 New Receive Antenna Hi-Gain Quad Antenna, installed 5,000 6,000 5,000 6,000 New Receive Antenna uninstalled 500 1,000 500 1,000 New Receiver or other RF Processing Equipment (such as pre-amplifiers) 300 1,000 300 3,500 Coaxial cable cost per foot (for MVPDs that install new receive antennas and/or receivers) Structural or Capacity Augments for Towers (to meet new tower loading requirements as a result of installation of replacement equipment) Tower Rigging two-man crew (price includes removal of existing antenna and transmission line, if necessary, and installation of replacement equipment) 2-3 2-3 Varies by tower construction. Varies by tower construction. 2,500 4,000 3,000-5,500 Professional Services Structural Study of tower capacity (to determine if additional support is necessary for any replacement equipment) Engineering Study (to estimate receive strength of new channel assignments, capabilities of current equipment, and determine whether and what replacement equipment may be necessary) 1,500 3,500 1,500-5,500 1,500 3,500 1,500 3,500-18 -
IV. FIGURES Figure 1: Rigid coaxial line section lengths and the channels not supported. Transmission line connects the transmitter or combiner output to the antenna, running from the equipment building up the tower to the antenna. While lines typically come in lengths of about 20 feet, the exact section length is determined by the station s assigned channel. After repacking, the transmission line may have to be replaced depending on whether the new channel is allowable for the existing line section length. This is principally an issue for lines that have been in use to feed a single-station antenna. Transmission line is usually broadbanded for use with shared antennas by making minor, non-repeating changes to the section lengths, designed for the channels involved. Following is a chart of transmission line section lengths and the channels that are prohibited for each length. STRICKEN - 19 -
Catalog of Potential Expenses and Estimated Costs Figure 1: Rigid coaxial line section lengths and the channels not supported. Transmission line connects the transmitter or combiner output to the antenna, running from the equipment building up the tower to the antenna. While lines typically come in lengths of about 20 feet, the exact section length is determined by the station s assigned channel due to VSWR buildup from the repetitive connections between sections. After repacking, the transmission line may have to be replaced depending on whether the new channel is allowable for the existing line section length. This is principally an issue for lines that have been in use to feed a single-station antenna. Transmission line is usually broadbanded for use with shared antennas by making minor, non-repeating changes to the section lengths, designed for the channels involved. The accompanying charts provide transmission line section lengths, and the channels that are prohibited for each length, based on two guard band intervals. Traditional practice was to utilize a guard band of approximately 3 MHz, while a smaller guard band can be considered for repacked stations to employ existing lines that are in in good condition. For a smaller guard band, stations should consult with the line s manufacturer and/or perform a sweep test of the transmission line to determine whether the line should be replaced for use on a new channel. - 20 -
Figure 2: Tower Modifications This chart provides representative samples of minor, major, and serious tower modifications. Tower Modifications Minor Major Serious Guy wire retensioning Guy wire replacement 2 to 3 levels Guy wire replacement > 4 levels Tension Diagonal replacement < 12 bays Tension Diagonal replacement > 15 bays Addition of guy levels Horizontal (struts) reinforcing < 12 levels Horizontal (struts) reinforcing > 15 bays New Anchors for new guy levels Leg reinforcing (addition of redundants)< 12 levels Horizontal (struts) replacement > 15 bays Replacement of tower sections Minor foundation reinforcing at anchors Leg reinforcing (addition of redundants) > 15 bays Tension Diagonal replacement > 15 bays Leg reinforcing (requiring welding) Horizontal (struts) reinforcing > 15 bays Tension/Compression Diagonal replacement Horizontal (struts) replacement > 15 bays Tension/Compression Diagonal -requiring welding Leg reinforcing (addition of redundants) > 15 bays Minor foundation reinforcing at base and anchors Leg reinforcing (requiring welding) Tension/Compression Diagonal replacement Tension/Compression Diagonal -requiring welding Foundation reinforcing at base and anchors - 21 -