**DA 08-1681**

**July 31, 2008**

**AUCTION OF LPTV AND TV TRANSLATOR DIGITAL COMPANION CHANNELS SCHEDULED
FOR NOVEMBER 5, 2008**

**SETTLEMENT PERIOD EXTENDED TO AUGUST 14, 2008**

AU Docket No. 08-22

Report No. AUC-08-85-E (Auction 85)

On July 17, 2008, the Wireless Telecommunications Bureau ("WTB") and the
Media Bureau ("MB") (collectively, the "Bureaus") announced an auction
of construction permits for Low Power Television (LPTV), including Class
A Television (TV), and TV Translator digital companion channels (Auction
85) scheduled to commence on November 5, 2008, and sought comment on
procedures for conducting Auction 85.[^1] The *Auction 85 Comment Public
Notice* also announced a two-week settlement period beginning July 17,
2008 and ending at 6:00 PM Eastern Time (ET) on Thursday, July 31, 2008.
The prohibition of collusion set forth in sections 1.2105(c) and
73.5002(d) of the Commission's rules has been temporarily lifted during
this limited period to allow parties with proposals in the mutually
exclusive (MX) groups identified in that Public Notice to dismiss their
proposals, enter into settlement agreements or otherwise resolve their
mutual exclusivities by means of engineering solutions.[^2]

On July 25, 2008, the National Translator Association (NTA) submitted a
request to extend the Auction 85 settlement period until September 8,
2008.[^3] NTA contends that Auction 85 applicants have not had
sufficient time to allow for the negotiation of potential settlements
and the preparation of necessary engineering and legal documents to be
filed by July 31, 2008.[^4] NTA also notes that the settlement window is
occurring during summer months, giving rise to difficulties in
coordinating among parties.[^5] NTA submits that "it is in the public
interest for the Commission to encourage as many settlements as
possible" and suggests that settlements may allow some stations to
construct and begin operation in advance of the February 17, 2009
transition date for full-power TV stations.

NTA has not demonstrated that an extension of the settlement period
until the second week in September is warranted, and NTA's request for a
lengthy extension until the second week of September would adversely
impact the schedule for Auction 85.[^6] NTA's Request presents no
showing that any specific party with a mutually exclusive proposal in
Auction 85 will be unable to complete the necessary documentation by the
current deadline despite exercising due diligence. We note also that no
applicant has filed a request for an extension of the settlement period.
The Bureaus previously provided digital companion channel applicants
with a 60-day window for settlements and that many parties took
advantage of that opportunity to negotiate settlement with other
applicants.[^7] While summer vacation schedules may give rise to
difficulties in coordination, the Commission has scheduled Auction 85 to
start on November 5, 2008 in order to help facilitate the transition of
the Low Power Television Service to digital service. The Commission is
committed to the goal of facilitating a timely and smooth digital
transition.[^8] The DTV transition will be facilitated by allowing
parties an opportunity to resolve their mutual exclusivities and then
conducting Auction 85 as scheduled on November 5, 2008.

While we deny NTA's request for a lengthy extension, we nevertheless
conclude that a brief, two-week extension of the Auction 85 settlement
period may be accommodated without disruption to the auction schedule.
Such extension will permit additional parties to complete their
documentation and will help to avoid incomplete filings. Therefore, the
Auction 85 settlement period is extended to **August 14, 2008 at 6:00 PM
Eastern Time (ET).** The parties must submit their requests for
dismissal or settlement agreements (including affidavits required by
Section 73.3525) and/or engineering submissions by the deadline on
August 14, 2008, following the procedures described in the *Auction 85
Comment Public Notice*. Further instructions on the filings of
settlements, dismissals and engineering submissions are contained in the
*Auction 85 Comment Public Notice* at pages 4-6 and Appendix B.

For further information, contact Shaun A. Maher, Video Division, Media
Bureau, at 202-418-1600 or <Shaun.Maher@fcc.gov>. TTY: (202) 418-0432.

**\-- FCC \--**

[^1]: *See* "Auction of LPTV and TV Translator Digital Companion
    Channels Scheduled for November 5, 2008, Announcement of Settlement
    Period Ending July 31, 2008, Comment Sought on Competitive Bidding
    Procedures for Auction 85," *Public Notice*, DA 08-460 (rel. July
    17, 2008) (*Auction 85 Comment Public Notice*).

[^2]: 47 C.F.R. §§ 1.2105(c), 73.5002(d).

[^3]: *See* National Translator Association's Request for Extension of
    Settlement Period filed July 25, 2008 (NTA Request).

[^4]: NTA Request at 1.

[^5]: *Id.*

[^6]: It is the Commission's policy that requests for extension are not
    routinely granted. *See* 47 C.F.R. § 1.46.

[^7]: "LPTV and TV Translator Digital Companion Channels Mutually
    Exclusive Proposals; Announcement of 60-Day Settlement Period Ending
    December 15, 2006," *Public Notice*, Report No. AUC-06-85-C (Auction
    No. 85), 21 FCC Rcd 11720 (WTB/MB 2006). *See also* "LPTV and TV
    Translator Digital Companion Channel Applications Non-Mutually
    Exclusive Proposals (Auction No. 85)," *Public Notice*, DA 06-1748,
    21 FCC Rcd 9830 (MB Video Div. 2006).

[^8]: NTA Request at 1. We also disagree with NTA's general assertion
    that "it is in the public interest for the Commission to encourage
    as many settlements as possible." *Id.* The Commission has not
    concluded as a general matter that allowing settlement between
    mutually exclusive applicants best serves the public interest. Under
    Section 309(j) of the Communications Act, 47 U.S.C. § 309(j), the
    Commission determines on a service-specific basis whether and to
    what extent it would promote the public interest to use negotiation,
    settlement, or other mechanisms that avoid mutual exclusivity. *See
    DIRECTV, Inc. v. FCC,* 110 F.3d 816 (D.C. Cir. 1997); *Benkelman
    Telephone Co. v. FCC*, 220 F.3d 601 (D.C. Cir. 2000). *See also*
    Implementation of Section 309(j) of the Communications Act --
    Competitive Bidding for Commercial Broadcast and Instructional
    Television Fixed Service Licenses, MM Docket No. 97-234, *Memorandum
    Opinion and Order*, 14 FCC Rcd 8724, 8755-58 ¶¶ 61-64 (1999).