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FCC PROVIDES FLEXIBILITY IN HOPE OF EXPEDITING DTV TRANSITION

Recognizing that some of its deadlines and requirements in move of TV stations to digital have hindered rather than helped, FCC took several steps Thurs. to clarify and relax its rules in hope of speeding up transition. Agency said relaxed requirements, among other goals, were designed to provide flexibility for stations in transition and to help small-market stations with financial difficulties. Commission also provided for waivers of rules in certain circumstances -- but 3 of 4 commissioners warned those waivers would be hard to come by.

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Among rules liberalized were replication, power maximization and channel selection requirements in attempt to “prioritize elements that are the most important to the DTV transition” and to provide “incentive” for consumers to purchase digital receivers, FCC said. Temporary changes include: (1) Licensees no longer will be required to replicate their entire analog signal at start of digital transmissions in order to preserve their protected coverage areas. That means stations can begin digital signals with low power if they provide signal to their community of license.

(2) “Graduated approach” will allow stations with “core DTV channels (2-51) to select which channel they will use for post-transition DTV. Commercial stations will have until Dec. 31, 2003, noncommercial stations additional year, to make decision. FCC said that would give licensees opportunity to begin DTV with low power and gain experience before deciding. (3) Stations shifting to digital will be permitted to offer DTV minimum number of hours daily, which must include prime time, while also transmitting in analog. Starting April 3, digital signals must be provided 50% of time station is on air, 75% by April 1, 2004, 100% by April 1, 2005.

(4) Financial hardship will be considered under “limited circumstances” as ground for waiver of deadlines, but licensee must provide “detailed evidence” that cost of equipping for DTV “exceeds the station’s financial resources… A brief downturn in economy or ad revenue will not be considered a sufficient showing.” FCC said it soon would issue new form for stations seek waivers -- which must be filed within 60-90 days of construction deadline.

FCC declined to issue blanket extension of construction deadlines (May 1 for commercial stations, May 1, 2003, for noncommercial) -- citing NAB survey projecting that 2/3 of commercial stations would meet deadline. Commission said many of remaining stations that didn’t expect to meet deadline “now may be able to do so” under relaxed rules.

Commission said it would defer decision on technical issues raised in digital conversion -- such as receiver performance standards, DTV tuners in all sets and labeling requirements for TV sets -- until later.

On waiver question, Chmn. Powell said “I have a strong inclination” to limit granting such requests. Comr. Copps said stations must show “strong, indeed compelling,” reasons before receiving waiver, while Comr. Abernathy warned “we will look at each one [waiver requests] of them carefully.

NAB Exec. Vp Henry Baumann praised flexibility provided by FCC action as recognizing “the economic realities facing broadcasters, particularly those in small and medium markets.” He said new rules should allow more stations to begin digital transmissions sooner.