Pay-TV service uses public airwaves. Will ‘free TV’ viewers be shortchanged?
November 30th, 2005USDTV, a pay-TV service that uses digital broadcast spectrum, launched commercial service in four U.S. cities earlier this month.
For $19.95 a month, plus a one-time charge of $24.95 for a special set-top converter box, viewers get a limited assortment of cable channels, along with local digital TV stations.
To transmit the cable channels via antenna, USDTV pools unused spectrum purchased from local broadcast stations. Which local stations are selling part of their “free TV” signal to pay TV? When asked by a New Mexico business journal, USDTV refused to say. Stations may fear viewer complaints—especially if they shortchange free, over-the-air HDTV because they’ve sold off the spectrum required to transmit high-definition images. Free multicast offerings may also shrink.
Should stations be allowed to sell the public airwaves? Viewers may gain from having a budget-minded alternative to cable and satellite offerings. And consumers who are in the dark about how to receive digital TV may welcome a visit from USDTV’s installer. We must remember, too, that broadcasters have spent millions to upgrade equipment for digital TV.
What troubles me is the air of secrecy.
The lack of disclosure is silly, because the information eventually becomes public anyway. The FCC requires local stations to report fees received for “ancillary or supplementary services,” according to a public notice. The filings are due tomorrow.
• Links: New Mexico BusinessWeekly, FCC (via Schubin)