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List:       dmca-discuss
Subject:    [DMCA_Discuss] CPB Digital Funding for NPR + 100% of ALL copyright fees for over 400 webcasters
From:       IBSHQ () aol ! com
Date:       2002-08-26 18:05:40
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Your federal tax dollars at work funding
100% of all copyright fees RIAA/ASCAP/BMI/SESAC
for over 400 CPB qualified webcasters (usually NPR
affiliates) including over 60% of community
broadcasters/webcasters.

These are studio and equipment grants





Date:           August 21, 2002

To:             Public Radio and Television Managers

From:   The Digital Radio & Television Consultation Panels


Subject:        Final Recommendations Regarding the Allocation of CPB Digital 
Funding


NOTE: This memo contains important information regarding the joint 
recommendations of The Digital Radio and Television Consultation Panels.


Dear Colleagues:


Through a parallel consultation process conducted over the past several 
months culminating in a joint meeting held on August 5, 2002, members of the 
Digital Radio and Television Consultation Panels have developed a set of 
shared recommendations on the allocation of funding appropriated for FY 2001 
& 2002 for public broadcasting's digital conversion.


These recommendations respond to the urgent and immediate needs of both 
public television and public radio and their respective public service 
opportunities in the emerging digital environment. In framing these 
recommendations the panels are mindful of several guiding considerations:


                -       The greatest share of the cost to convert public 
radio and television stations has been, and will continue to be borne by 
local communities.  Of the nearly $1 billion invested to date, Federal 
contributions through appropriations to CPB and the NTIA's PTFP program 
represent about seventeen percent of the total.


                -    While public broadcasting remains optimistic about 
continued and

                     conceivably greater levels of Federal support in FY 2003 
and beyond,

                     both panels recognize there are insufficient funds 
available today to

                     meet all or even the majority of station needs.


-     There are significant differences-- in the timeline, cost, public 
service

                 opportunities and probability of success of digital radio 
and television

                 broadcasting. Notwithstanding the actions of regulators or 
legislators,

     the factors most likely to determine the outcome have less to do

                 with statutory or regulatory requirements, and much more to 
do with

                 the actions of the marketplace.


                -     More than half of all public television licensees are 
also licensees of

                       one or more public radio stations. Public 
broadcasting's health and

                       viability rest on a foundation of common interest and 
mutual

                       dependence across the two media. It is essential that 
public

                       broadcasting have a cohesive strategy for the 
development of public

                       service opportunities and funding sources in the 
digital broadcast

                       environment.



Joint Recommendations:


Through special digital appropriations in FY 2001 and 2002, Congress provided 
a total of $45 million to CPB to assist with the conversion of public 
broadcast stations to digital broadcasting. More than $15 million of these 
funds have already been awarded to public television licensees through CPB's 
Digital Distribution Fund, and it is expected that before the end of this 
fiscal year the remaining $30 million will be committed to public television 
and radio licensees and their associated national organizations for essential 
needs in connection with the digital conversion. This memorandum sets out the 
joint recommendations of the Digital Radio and Television Panels with respect 
to the remaining digital funds.



Support for Digital Transmission Infrastructure:


Digital Television Conversion


The Digital Distribution Fund (DDF) was begun in FY 2001 to provide public 
television stations with the necessary financial assistance to convert to 
digital transmission and commence delivery of new digital services, 
particularly educational and rural broadband services.  Shortly after the DDF 
was launched, the FCC issued a reconsideration order that permits some 
commercial and all non-commercial television stations to meet their May, 
2002/2003 conversion deadlines through the use of reduced power transmitters. 
 On the recommendation of the Digital Television Consultation panel, CPB has 
created a second fund in tandem with the DDF to provide assistance for 
stations seeking to implement reduced power solutions.


The Digital Universal Service Fund (DUSF) will provide public television 
stations with a complete, turn-key transmission plant including transmitter, 
antenna, studio to transmitter link, encoder, and related transmission 
equipment through a discounted group purchasing arrangement negotiated by PBS 
with several US manufacturers. These reduced power transmitter solutions can 
be upgraded to full power, when required by the FCC, at a pre-established 
incremental cost and without the need to replace equipment or incur 
replacement costs.


Our Recommendation:


The joint panels are mindful of the need to assist as many public television 
stations as possible to meet the FCC's May 2003 deadline and recommend, 
therefore, that $24 million be made available to the Digital Distribution and 
Digital Universal Service Funds to be awarded under guidelines developed by 
CPB in consultation with public television stations and PBS.



Digital Radio Conversion


The FCC is currently reviewing the AM & FM In-band/On-Channel (IBOC) 
transmission standard developed by Ibiquity, an organization largely owned by 
the major commercial radio broadcasters*. The National Radio Standards 
Committee has urged adoption of the IBOC standard. As soon as the standard is 
adopted, which may be as early as October of 2002 or later in 2003, 
commercial stations are expected to place orders for digital transmission 
equipment and begin their conversion. The first of these stations will be 
located in thirteen radio markets identified by Ibiquity as seed markets**. 
These markets will serve as a test bed for consumer acceptance of digital 
radio. For this reason Ibiquity has planned significant marketing and 
promotional efforts, prepared for rapid deployment of digital radio 
receivers, and organized other activities designed to jump-start the roll out 
of digital terrestrial radio.


It is imperative that public radio stations located in these seed 
markets-five of which are joint licensees-are able to transition to digital 
broadcast at the same time as their commercial counterparts, with whom they 
share a common audience. Public radio stations serving these thirteen 
communities collectively provide service to more than 30% of public radio's 
total national audience. By leveraging the rollout of public radio's digital 
service in concert with commercial operators that have a vested interest in 
its successful implementation, public radio substantially increases its 
probability of success. Public radio will also gain critical information 
about the rate and degree of consumer acceptance, knowledge that will help 
stations develop a realistic timetable and plan for digital conversion in the 
rest of the country.


Rather than commit to an imposed or artificial deadline, public radio will 
have an opportunity to assess the risks and benefits of further deployment. 
Key market indicators such as the retail availability of digital radio, OEM 
and after-market installations of digital radio receivers in automobiles, and 
equipment orders

placed by stations that share audiences with public radio will help guide 
decisions about the rollout of digital radio and public radio's investment 
therein.


The Digital Radio Panel has proposed that those public radio stations in the 
seed markets that serve a significant audience should be given preference for 
funding assistance.  It is estimated that the cost to convert the fifty or so 
stations that meet this criterion is in excess of $5.3 million.  Based on a 
requirement that local stations fund between 25% and 50% of their cost of 
conversion (rates previously adopted by PTFP and CPB's Digital Distribution 
and Digital Universal Service Funds) public radio would require $3.5 million 
to fund seed market conversion.


Our Recommendation:


The joint panels recommend, therefore, that $3.5 million be made available 
for the conversion of public radio stations in seed markets.  In view of the 
urgent need by public television stations to meet a May, 2003 conversion 
deadline, the joint panels propose that radio seed market funding be 
allocated from the FY 2003 digital appropriation.


Until the availability of FY 2003 funding, sufficient to meet this 
obligation, is assured, the joint panels further recommend that $3.5 million 
in FY 2002 funding be held in reserve for this purpose. Once FY 2003 funding 
is confirmed, the joint panels recommend that the $3.5 million in FY 2002 
funds, held in reserve, be made available for use in CPB's DDF and DUSF 
programs for public television.  In the event FY 2003 funding is not 
forthcoming the panels have agreed to review what options may exist to 
address the immediate needs of radio and television.


The joint panels have been advised that CPB intends to re-convene the 
consultation process once the outcome of FY 2003 digital funding is known, 
and at that time they anticipate the opportunity to consider the best and 
highest uses of FY 2003 funds remaining after the $3.5 million pay out for 
digital radio seed market conversion.



Support for Digital Distribution:


AM Radio Distribution and Testing


One out of every ten public radio licensees operate at least one AM station. 
Unlike the majority of commercial radio operators, most public stations were 
assigned frequencies that require the use of multiple towers, directional 
antennas, and other transmission configurations which may complicate 
conversion to the digital AM In-Band On-Channel (IBOC) transmission standard 
now under review by the FCC, and could result in substantial additional 
conversion costs. In addition, potential interference issues, as yet untested 
and unresolved, could limit digital AM transmission to daytime hours only, 
over what could be a protracted transitional period extending several years. 
Neither the FCC nor the National Radio Standards Committee (NRSC) anticipates 
conducting further tests of the AM IBOC standard prior to its adoption.  As a 
result, the feasibility of full service AM IBOC and the costs to convert 
analog AM stations, a significant number of which serve rural communities, 
are unkno!

 wn.


Digital AM IBOC would provide a significant improvement in audio quality to 
radio listeners. Moreover, the acquisition of additional analog AM stations 
could offer public radio stations opportunities to increase their reach and 
capacity in many markets where spectrum is otherwise unavailable or 
prohibitively expensive, but only if digital AM can be deployed in a cost 
effective and technically sound manner.



Our Recommendation:


The joint panels recommend, therefore, that $1 million be made available for 
the engineering development, conversion, and testing of up to four public 
radio AM stations that currently rely on analog transmission configurations 
known or suspected to pose challenges for digital conversion. The panels 
further recommend that, where possible, candidate stations should be selected 
from those located in the thirteen seed markets where digital radio will be 
launched following adoption of the standard.  The results of this 
implementation and testing should provide workable solutions for digital AM 
transmission, and precise information about the costs to convert public 
radio's AM stations.



Next Generation TV Interconnection System


The proposed next generation television interconnection system will make use 
of both satellite and terrestrial Internet connections to provide expanded 
capacity for anticipated multi-channel services, and support for new forms of 
content and services that stations expect to provide over their digital 
spectrum. Design specifications for the new interconnection system have been 
based on station plans to deliver high definition, multicast, interactive and 
datacast services, make use of shared master control and production 
facilities, and provide support for digital asset and digital rights 
management of system and station content.  Converting stations to digital 
transmission enables the local delivery of advanced services, however, 
stations will continue to rely on a national distribution system to aggregate 
and share the programs and services they deliver. In addition, the shift to a 
digital interconnection architecture will permit stations to distribute 
directly to and receiv!

 e content from each other as well as from a central distribution point 
operated by PBS.


The existing interconnection system is unable to support advanced digital 
services, or station-to-station distribution.  As a result, further 
investment in the national distribution infrastructure will be required over 
the next several years.

While the underlying technologies that would be employed in a new system are 
well proven, PBS has yet to test the proposed design under real world 
conditions. As with digital AM radio, there are many unknowns.  Before the 
design can be finalized, small-scale deployment and technical evaluation must 
be completed.



Our Recommendation:


The joint panels recommend, therefore, that $500,000 be made available to PBS 
for immediate implementation and testing of design elements of the Next 
Generation Interconnection System at up to eight local sites.  The results of 
this work will provide a proof of performance for the advanced features of 
the Next Generation Interconnection System, and permit finalization of its 
design.



Support for Advanced Public Services:


Digital Radio Receivers


Integral to the design of digital IBOC radio are various capabilities that 
would extend the capacity and range of public services public radio could 
provide.  These include the provision of an additional audio channel over 
which public radio broadcasters could offer second language services, reading 
services for the vision impaired, and other new content.  Additionally, 
public radio anticipates being able to use a portion of the digital bandwidth 
for datacasting services that could provide traffic, weather, public safety 
and other listener services.


Radio receiver manufacturers have yet to determine which features of the 
digital radio standard they will implement in consumer sets, or what level of 
demand there may be for advanced services. Nor have they considered the 
public service implications of including or excluding certain functions that 
would benefit important constituencies.  While the cost to implement many of 
these functions would appear to be nominal, there is insufficient data 
available today to suggest the potential audience for advanced features, much 
less the cost/benefit manufacturers might enjoy should they choose to include 
any of the capabilities.


The joint panels support public radio's belief that manufacturers may be 
prepared to adopt those functions that would permit public radio to extend 
its service if reliable information could be provided as to its need, 
financial viability, and desirability.  It is estimated that the cost to 
develop this data is about $100,000.



Digital Radio conversion cost


In 1997, when public broadcasting began its requests for federal support for 
digital conversion it was necessary to establish an accurate assessment of 
the station-by-station costs.  Because digital television was much further 
along in its development at that time it was possible to establish what 
proved to be a very reliable projection of the anticipated conversion costs 
for public television stations.  In each year since, public television's 
conversion costs have been reviewed and the baseline data has been updated to 
reflect market changes, as well as the remaining costs of conversion yet to 
be funded.


By necessity, in 1997 public radio could only estimate the cost to convert 
its 787 transmitters and 716 translators to a digital broadcast standard.  
Since then the estimate has not been revised because until recently there was 
no reliable information on which to base a new calculation.  Now that a 
standard is imminent and transmission equipment is being offered for sale, 
public radio's conversion costs can and must be more accurately determined.  
Accurate station-by-station cost data will make it possible for public radio 
stations to develop a realistic conversion plan and assess their future 
capital funding requirements.


It is estimated that given the number of stations involved, the cost to 
establish this baseline data will be similar to what was provided by CPB for 
the public television assessment in 1997, $250,000.


Our Recommendation:


The joint panels recommend, therefore, that $350,000 be provided for both 
these urgent needs.  Respectful of Congressional report language accompanying 
the FY 2002 digital appropriation, which provides FY 02 funds for "equipment 
and facilities" necessary for the digital conversion, the joint panels 
recommend to the CPB Board that funds for this purpose be allocated by CPB 
from a source other than the FY 02 digital appropriation.


* The IBOC standard was recently re-named HD Radio.


**The thirteen seed markets include: Los Angeles, New York, San Francisco, 
Chicago, Seattle Miami, Boston, Dallas, Denver, Atlanta, Detroit, Las Vegas, 
and Washington, DC.



Members of the Joint Radio & TV Digital Panel:


Ed Caleca

Public Broadcasting Service


Kathleen Cox

CPB


Kathy Dole

National Public Radio


Sherri Hope-Culver

WYBE-TV


David Liroff

WGBH-TV & FM


Don Lockett

National Public Radio


Jon McTaggart

Minnesota Public Radio


Marilyn Mohrman-Gillis

America's Public Television Stations


James Paluzzi

KBSU-FM


Carol Pierson

National Federation of Community Broadcasters


Bill Reed

KCPT-TV


Don Rinker

Alaska Public Broadcast Commission


Rick Schneider

KNBP-TV


Tom Thomas

Station Resource Group


Facilitators:


Andy Bruno

CPB


Doug Weiss

CPB





Andy Bruno

Director, Station Advancement

Corporation for Public Broadcasting

401 Ninth Street, NW

Washington, DC 20004-2129


phone (202)879-9732

fax (202)879-9680

http://www.cpb.org
_______________________________________________


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