WASHINGTON—The Federal Communications Commission announced the return of $881 million in unused funds from the TV Broadcaster Relocation Fund, known as the “Repack,” marking a significant milestone in the successful conclusion of the first-ever spectrum Incentive Auction.

Initiated on April 13, 2017, the Incentive Auction repurposed 84 megahertz of low-band broadcast spectrum for commercial and unlicensed wireless use, generating $19.3 billion in net winning bids.

The broadcast incentive auction was made up of two separate but interdependent auctions. One was a reverse auction, which determined the price at which broadcasters could voluntarily relinquish their spectrum usage rights; the second was a forward auction, which determined the price companies were willing to pay for flexible use wireless licenses.

As part of the the Middle Class Tax Relief and Job Creation Act of 2012 and the Reimbursement Expansion Act of 2018 $2.75 billion was allocated by Congress to reimburse broadcasters and other entities for costs incurred due to involuntary channel reassignments.

The Fund supported thousands of broadcasters through licensing, construction, and equipment removal efforts, ensuring a smooth transition to new channels.

“In support of the Trump Administration’s efforts to seek out government waste, we took a hard look at money sitting in our agency with an eye to limiting government spending and reducing wasteful programs,” FCC Chair Carr said in a statement. “As we come to the end of the Fiscal Year, we found the time was ripe to ‘clean house’ and ensure money does not sit languishing at the agency level when it can be given back to the U.S. Treasury for the financial benefits of the Nation.”

WASHINGTON—On the agenda for the FCC’s March 15 meeting is a vote on a Report and Order that will establish the rules of disbursement for the $1 billion in repack funds that Congress approved to aid broadcasters last year in their transition. FCC Chairman Ajit Pai outlined the meeting’s agenda in a recent blog post.

“[L]ast year Congress approved an additional $1 billion to cover broadcaster transition costs, and it expanded the list of entities eligible for reimbursement to include affected low-power TV stations, TV translators and FM radio stations,” wrote Pai.

The $1 billion in funds, which was part of the RAY BAUMS Act, is for the FCC to compensate broadcasters for things like new equipment, tweaked equipment and moving costs as stations transition to new spectrum following the incentive auction in 2017 where wireless carriers won the rights to previous occupied TV spectrum.

The 10-phase process of the repack is currently underway. Phase one concluded on Nov.30, 2018, with all stations meeting their deadline save for those granted extensions or moved to other phases. All stations that are part of the repack will have until July 3, 2020, to complete the move.

For all the latest news and insight on the repack, visit our repack silo.

GRAPEVINE, Texas—FCC Chairman Pai gave a progress report about the channel repack, touting “great progress” since work began in April 2017. He added that the transition—which involves channel and/or location changes for approximately 1,000 full-power and Class A television broadcasters and about 2,000 low-power and translator television stations—is “ahead of schedule.”

In remarks to the annual meeting of the National Association of Tower Erectors today, the chairman noted the abbreviated timetable for finishing the transition by July 2020 and the resulting pressure on tower companies.

“The limited availability of tower crews capable of doing this work was a big factor in our transition planning from the start,” he said. “We designed a phased transition schedule that allows both tower companies and equipment manufacturers to prioritize stations in early phases and to strategically allocate resources. We built in flexibility to make adjustments so that safety is never compromised.”

At the conclusion of Phase 1, which ended Nov. 30, 2018, 143 repacked stations had already moved off their pre-auction channels, approximately 53 more stations than the FCC had planned to be repacked by the end of Phase 1, according to Pai. More than 20 of the approximately 115 stations assigned to Phase 2, which ends April 12, 2019 have been moved to their new channel.

Pai said that a total of $2.75 billion (including an additional $1 billion authorized by Congress last year) is available to reimburse broadcasters for repack costs, with more than $350 million already approved for reimbursements.

The FCC chairman acknowledged the concerns tower companies have had about availability, weather and deadlines, especially in a period when wireless companies are moving forward with 5G deployments. He encouraged the companies to be proactive.

“Coordination with stations and equipment manufacturers will be key,” Pai said. “Working together, I’m optimistic that we can be as successful as we were in Phase 1 and stay on track to complete this work for full-power and Class A stations by July 2020."

Pai added that tower crews are also helping the recipients of the 600MHz spectrum sold off by broadcasters two years ago deploy new services, citing T-Mobile’s recent progress in this area.

“NATE members are also deploying infrastructure so that wireless carriers can put the licenses awarded to incentive auction winners to use,” he said. “This deployment is now a reality in many places and is underway in many others. For example, one carrier has already lit up service using 600 MHz spectrum in more than 1,500 cities and 37 states, including Puerto Rico. For many of your members, this is intense, ongoing work. For American consumers, this means new competition and opportunities to benefit from 5G.”

For all the latest news and insight on the repack, visit our repack silo.

WASHINGTON—Good news for broadcasters that will be affected by the spectrum auction repack — the $1.3 trillion omnibus appropriations legislation unveiled Wednesday includes $1 billion in additional funding for the broadcast spectrum incentive auction repack.

In fiscal year 2018, the bill allocates up to $50 million for radio stations’ expenses out of the total $600 million for the spectrum auction repack fund. It also earmarks up to $350 million authorized for full-power TV stations’ relocation, up to $150 million for low-power TV station and translator relocation and $50 million for consumer education. $400 million in funding is appropriated for FY 2019.

“NAB welcomes the omnibus appropriations bill’s inclusion of RAY BAUM’S Act along with funding that fully and fairly reimburses broadcasters for their spectrum repack relocation expenses,” NAB President and CEO Gordon Smith said in a statement Wednesday.

[Noncoms Seek More Money, Flexibility from FCC]

“We urge immediate passage of this omnibus legislation and look forward to a repack process that holds harmless TV broadcasters, local radio stations and the tens of millions of Americans who rely on our services every day,” Smith said.

Smith also praised Chairmen Walden and Thune, Ranking Members Pallone and Nelson, Appropriations Chairmen Cochran and Frelinghuysen, Vice Chairman Leahy, Ranking Member Lowey and congressional leaders. 

This story originally appeared on TVT's sister publication Radio World.

For more information on the repack, visit TV Technology's repack silo.