FCC Gets $2.12 Billion of Requests for Incentive Auction Reimbursement Costs, Less Than Some Feared
Initial demand for the $1.75 billion incentive auction spectrum relocation fund is less than some broadcasters feared yet more than the available money. The FCC said stations and pay-TV providers eligible for reimbursements associated with moving broadcasters' channels have sought a total of $2.12 billion so far, and "we expect to receive additional estimates from MVPDs and a small number of stations."
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"Initial estimates that comprise this amount will be subject to a careful review by the Commission and our fund administrator," said Jean Kiddoo, chair of the Incentive Auction Task Force, to whom Friday's statement was attributed. Virtually all affected stations and most MVPDs submitted estimates for reimbursement, an FCC spokesman said. Officials will review those requests to determine what's a reasonable cost, he said.
Some previously predicted the total amount of initial requests for reimbursement would be more than the $2.12 billion. Congress authorized the $1.75 billion.
Though the potential overage was less than some expected, there's still a shortfall if all costs are allowed. The estimated cost of the "‘TV repack’ shows a shortfall of over $365 million in available repacking funds, with a number of television stations and MVPDs not yet included in the total," said NAB CEO Gordon Smith. "That number could grow as stations amend cost estimates due to changed circumstances."