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[Open Letter Submitted to Members of Senate Commerce Committee from Free Press and Consumer Federation of America]

Dear Senator,

We are writing to express our deep concerns about the Spectrum Availability for Emergency-Response and Law Enforcement To Improve Vital Emergency Services Act (the Save Lives Act). This bill finally admits that, in spite of a multibillion dollar give-away to broadcasters, the transition to digital television will take decades if the broadcasters are left to their own devices. It sets a much-needed, hard deadline for the return of some of the most valuable airwaves to the public. We support the provisions that seek to enhance public safety by devoting a part of the newly freed airwaves to use by public safety organizations.

Unfortunately, the provisions that claim to protect consumers and promote the public interest in other uses of the airwaves are a disaster. After the needs of public safety users are taken care of, the Save Lives Act misallocates the airwaves between licensed and unlicensed uses, misappropriates the funds that would be raised through auction of the airwaves, and fails to adequately protect consumers from the burden of a forced transition to digital broadcasting.

- The bill fails to allocate any of the airwaves to unlicensed use and makes it harder for the FCC to designate spectrum for unlicensed uses in the future.
- The bill earmarks far too much radio spectrum for auction, without any analysis of the needs for resources to accomplish the transition.
- The bill fails to allocate any of the proceeds of the auction of the airwaves to a public trust for noncommercial or community media.
- The bill fails to require full compatibility for all television sets in all households.
- The bill opens the door for cable and satellite companies to seek subsidies for equipment they are planning to deploy on a commercial basis.
- The bill provides no policy direction for establishing the public interest obligations of broadcasters, cable operators, and satellite companies.

These flaws in the bill have no bearing on the public safety purpose of the bill and can be corrected without detracting from that purpose because there are no conflicts between the goal of protecting the public safety and promoting the public interest in the use of the airwaves. Therefore, the public interest provisions should be amended as follows.

The airwaves made available when broadcasters switch to digital only broadcasting, should be allocated as follows:

- The set aside of spectrum for public safety should be served in the bill as drafted. The Congress should not foreclose the possibility that smart technologies will ultimately make the shared use of all airwaves possible.
- The 30 megahertz of radio spectrum in the bill set aside for a study of unlicensed use (i.e. spectrum not dedicated for public safety or for auction purposes) should be dedicated for unlicensed use. Further, the bill should be crafted in such a way as to make no presumption that unlicensed use of other parts of the spectrum is forbidden or hindered. Promoting unlicensed use in this part of the airwaves would not only serve the purpose of restoring the free speech rights of citizens in the airwaves, it should also make the job of public safety organizations easier, by creating a much larger base for smart communications equipment.
- While 36 megahertz of spectrum can be set aside for auction, the amount of spectrum to be included in the initial auction should be set after estimates are made of the financial resources needed to ensure a smooth transition, effective use of the airwaves by public safety organizations, and the needs of public and community broadcasters are taken into account, and the value of the spectrum is ascertained with greater precision.

Auction proceeds should be allocated as follows.

- One billion dollars for households that rely only on over the air television.
- Public safety needs as determined by the agencies identified as in the draft bill.
- All remaining proceeds not used to smooth the transition or equip public safety organizations should go into a public trust to promote community and noncommercial media.

A smooth transition should be ensured by the following measures.

- Multichannel video program distributors should be required to ensure that all television sets in a household can receive digital signals (whole house compatibility). Auction proceeds should not be used to support this service, since this is part of the industry’s business plan and the Federal Communications Commission recently concluded that low cost network interface devices will soon be available to accomplish this.
- Households that do not receive MVPD service (in the year prior to the date of the transition) should be eligible for tuners or support for installation of MVPD services. Preference should be given for low-income households.
The Congress should express its intent on public interest obligations for digital television and require the FCC to complete its never-ending proceedings.
- Stations should be required to schedule a minimum amount of 3 hours per week of local civic or electoral affairs programming during prime time hours on its primary and multi-cast digital channels.
- Stations should be required to and demonstrate that 25% of programming aired during primetime hours on its primary channel is independently produced. Locally produced independent programming is strongly encouraged on multi-cast digital channels.
- Stations should provide free airtime for political discourse to all qualified candidates in the 60 days preceding primaries or general elections.
- Standards ensuring non-discrimination in employment practices at broadcast stations should be established and enforced.
- Stations should be required to schedule a minimum of three hours per week of children’s educational programming on primary and multi-cast digital channels.
- Stations should be required to implement public hearings to ascertain the needs and interest of the communities they serve. Public input should be solicited on a regular basis through public meetings, postal and electronic mail. Stations should report quarterly to the FCC to demonstrate how ascertainment has led to public interest programming.

There is no excuse for Congress to do the right thing on public safety and the wrong thing on the public interest in communications. As written, the bill wastes the best and perhaps only opportunity for Congress to restore the First Amendments rights of citizens to use the airwaves, to define the public interest obligations of the video industry, and to fund community and noncommercial media. In several respects it will make it harder to promote the public interest. We urge you to amend this bill to protect both the public safety and the public interest.

Sincerely,

Mark Cooper
Director of Research
Consumer Federation of America

Ben Scott
Political Director
Free Press

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