The EW Scripps Company says the FCC’s proposed plan for reimbursing TV stations that have to move off of C-band satellite services in 2027 is “incomplete” and underestimates expenses.
The FCC has announced plans to auction C-Band satellite spectrum starting in July 2027 and reimburse the costs of the transition to legacy customers. The commission has released initial reimbursement plans in a so-called “Cost Catalogue," but Scripps says the FCC’s database of incumbent earth stations is outdated and that if not fixed soon, could jeopardize the auction schedule.
“Scripps supports the legal and policy reasons behind the Commission’s decision to quickly auction more C-band spectrum but the short timeline for the auction does not mean the Bureau should rush to complete preliminary steps, such as adopting a new Cost Catalog,” the station group said in a filing. “Auction bidders and incumbent earth station operators will both benefit from a Cost Catalog that contains accurate, complete cost figures whereas an inaccurate, incomplete Cost Catalog risks sending false signals about post-auction expenses and timelines. False signals will hinder the bidding for Upper C-band spectrum and slow the post-auction transition.”
Scripps echoed the National Association of Broadcasters who in October, told the commission that in addition to simplifying and making the reimbursement process more flexible, the FCC needs to update equipment and service cost estimates to reflect current market conditions, and “expand the catalog’s equipment and service categories to encompass the full range of modifications and replacement distribution arrangements necessary to maintain substantially the same service anticipated price increases, and the actual costs of specialized equipment and installation services.”
Since the C-band Cost Catalog was last updated in 2020, Scripps said a simple general inflation adjustment is insufficient.
“Indeed, costs for vital raw materials and energy will keep increasing as data center and artificial intelligence expansion continues to vacuum up resources," they told the commission. "NAB’s common sense suggestion to use current equipment quotations and installation estimates, along with cost ranges that are sufficiently broad to capture reasonable variations, should be implemented before the Cost Catalog is adopted.”
“Adopting an accurate Cost Catalog and allowing earth station operators to update their earth station registrations so the registrations are accurate will speed the post-auction transition process and allow auction bidders to plan accordingly,” Scripps concluded.
