FRED UPTON, MICHIGAN
CHAIRMAN
HENRY A. WAXMAN, CALIFORNIA
RANKING MEMBER
ONE HUNDRED THIRTEENTH CONGRESS
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COMMITIEE ON ENERGY AND COMMERCE
2125 RAYBURN HOUSE OFFICE BUILDING
WASHINGTON. DC 20515-<)115
MBjOriry 12021215-2927
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September 12,2013
The Honorable Mignon Clyburn
Acting Chairwoman
Federal Communications Commission
445 Jih Street, S.W.
Washington, D.C. 20515
Dear Chairwoman Clyburn:
Last week you announced the Commission's tentative agenda for the September open
meeting. Among the items you plan to consider is a Notice of Proposed Rulemaking regarding a
potential elimination of the UHF discount. While we are not convinced that the existing
limitations on broadcast ownership as a whole are appropriate or necessary in today's
competitive media marketplace, we have particular apprehension about this proposed change and
its effect on the business decis"ions of broadcast station group owners. Specifically, we are
concerned that elimination of the UHF discount could inequitably hann those broadcast owners
with pending transactions that were initiated under the existing UHF discount rule. We urge the
Commission to ensure that any changes made to the UHF discount do not penalize current
licensees, induding those licensees with transactions pending at the Commission, by applying
any changes to the UHF discount rule prospectively to new applications and by continuing to
process pending applications under the existing rules without delay.
In 2004, Congress enacted legislation that permits a single entity to own any number of
television stations so long as the station group's aggregate coverage is no more than 39 percent
of the United States' television viewing population. The FCC calculates an entity's national
, coverage by determining the percentage of households that receive a signal from the group's
stations. Currently, that calculation treats stations in the Very-High Frequency Band ("VHF")
and Ultra-High Frequency Band ("UHF") differently when detennining the coverage amount
based on historical challenges associated with UHF broadcasting and a desire to encourage
adoption of UHF frequencies. Owners of stations in the UHF band arc 'charged' for only fifty
percent of the population coverage as compared to a similar station in the VHF band. We
acknowledge there have been changes in broadcast teclmology that militate against an allowance
Letter to the'Honorable Mignon Clyburn
Page'2 '
like the UHF discount, but we believe consideration of such policy shifts must take into account
the ne d for regulatory certainty for broadcast licensees.
Changes to th current calculation could potentially drive existing station groups and
those with pending transactions over the new limit, forcing them to make divestitures to comply
with the law or to proceed with their proposed transaction. This outcome would unfairly punish
businesses that have complied with the Commissiqn s rules in good faith and that entered into
transactions in reliance on the Commission's rules. We urge the Commi ion to ensure that any
changes it makes to the UHF discount rule respect the holdings of existing licensees and
applications pending at the Commission and are only applied prospectively to applications tiled
after the adoption of a new rwe.
. If you have any questions, please contact David Redl or Grace Koh with the Committee
on En,erg~ and Commerce at (202) 225-2927.
Sincerely
GTe aid n
Chairman Subcommittee on Communications
and Technology
cc: Hon. I cory Waxman, Ranking Member
Han. Anna Eshoo, Rapking Member, Subcommittee on Communications and Technology
Commissioner Jessica Rosenworcel, FCC
Q;>mmissioner Ajit Pai, FCC