Digital TV transition to be delayed until June 12: Verizon Wireless, AT&T Mobility forced to delay 700 MHz buildout plans

Congress approved legislation to postpone the digital TV transition from Feb. 17 to June 12, capping a fiercely-partisan House debate today that forces wireless carriers to wait another four months to get 700 MHz licenses they paid nearly $20 billion to acquire in a government auction last year.
The measure passed by the House is the version approved by the Senate on Jan. 29.
“I welcome Congressional passage of the DTV Delay Act. It has long been clear to me – and it’s even clearer since I became acting FCC chairman two weeks ago – that the country is not prepared to undertake a nationwide transition in twelve days without unacceptably high consumer dislocation,” said Michael Copps, interim head of the Federal Communications Commission (pending Senate approval of Julius Genachowski). “The additional four months provided by the law affords urgently-needed time for a more phased transition, including a consumer-friendly converter box coupon program, stepped-up consumer outreach and support – particularly for vulnerable populations – and dealing with coverage, antenna and reception issues that went too long unaddressed.”
President Obama, who requested the delay during the presidential transition to address inadequate funding for converter box coupons and other problems, is poised to promptly sign the bill into law.
Obama aides and key Democrats were able to secure backing from Verizon Wireless and AT&T Mobility, the top two wireless providers and the two largest bidders in the 700 MHz auction, after assuring the companies there would not be any further extensions of the DTV deadline. Qualcomm Inc., the San Diego CDMA technology leader, had complained to lawmakers that a DTV delay would disrupt the rollout of its MediaFLO mobile TV service in new major markets. The firm unsuccessfully lobbied for a limited carve-out to mitigate the fallout from a DTV postponement.
“We are disappointed with the passage of legislation extending the DTV transition date to June 12,” Qualcomm said in a statement. “Due to the investments we made, we were ready for a Feb. 17 transition to provide our innovative FLO TV service nationwide immediately. We are encouraged that several congressmen and Senators who supported the delay stated that this would be a one-time delay only. In light of the fact that the legislation, as amended and finally passed by Congress, allows TV stations to transition voluntarily between now and June 12th, we cannot determine the specific impact of the final bill’s passage on our MediaFLO business.”
“The passage of this bipartisan legislation means that millions of Americans will have the time they need to prepare for the conversion,” said a White House spokesperson. “We will continue to work with Congress to improve the information and assistance available to American consumers in advance of June 12, especially those in the most vulnerable communities.”
Public-safety organizations succeeded in winning a minor concession giving police, firefighters and medics access to more 700 MHz channels in areas where TV broadcasters convert to all-digital transmissions before June 12.
“I applaud the passage of this necessary legislation,” said Rep. Edward Markey (D-Mass.), former chairman of the House telecom subcommittee. “It is unfortunate that Congress had to take additional action on this issue, but the prospect of leaving millions of consumers in the dark was simply unacceptable. This was a foreseeable problem and should have been anticipated and acknowledged by the Bush administration long ago. However, the Bush administration simply left us with insufficient time to make the needed adjustments on a national basis without this short, one-time delay. I commend President Obama for his swift actions on this critical issue.”