Federal Communications Commission INCENTIVE AUCTION IMPLEMENTATION Bill Lake Chief, Media Bureau May 22, 2012 Channel Sharing Workshop Introduction 2 Incentive Auctions Implementation What Is Channel Sharing? “FCC Shares Channel-Sharing Details” TVTechnology, May 1, 2012 www.tvtechnology.com 3“Spectrum Act” Part of Middle Class Tax Relief and Job Creation Act of 2012, signed by the President on February 22 Creates incentive auction authority (ability to share auction proceeds) Consistent with the vision we laid out in our proposal: – Spectrum contributions will be voluntary – Three options for contributing are included • All 6 MHz • Channel Share • Move from UHF to VHF Incentive Auctions Implementation 4Policy Objectives of Channel Sharing A way for broadcasters to – Contribute spectrum to the auction – Share auction proceeds – Stay on the air Channel sharing -- Provides a way to help meet our need for spectrum, and -- Acknowledges that broadcasting plays an important role in our nation’s communication infrastructure Still many unknowns, including how to incorporate channel sharing into the auction design, but that work is underway and will be shared publicly as part of our forthcoming NPRMs Incentive Auctions Implementation 5Channel Sharing Order: The Fundamentals Channel Sharing Order Released on April 27, 2012. 1. Voluntary arrangements 2. Flexible capacity sharing 3. Channel sharers remain separate FCC licensees 4. Only in connection with the incentive auction at this time 5. Full power and Class A stations • Licensees • Applicants and permittees that have completed facility construction 6. Commercial and NCE stations may channel share 7. Must carry rights preserved Incentive Auctions Implementation