About Relocation > Broadcaster Compensation

Compensation Policies for Broadcasters

Relocation Costs Covered by Sprint Nextel

The Federal Communications Commission ("FCC") requires Sprint Nextel to provide eligible licensees reimbursement for the cost of relocating to "comparable facilities" in the new channel plan.  The payments and reimbursments may be audited by Sprint Nextel, the FCC's Transition Administrator and the Government Accountability Office ("GAO").

Broadcaster Eligibility

Per the FCC's rules, Broadcasters that were licensed before November 22, 2004 are eligible for relocation reimbursement from Sprint Nextel.  Broadcasters that were licensed on or after that date are not eligible for reimbursement from Sprint Nextel, but are still responsible for relocating to the new channel plan on their market's timeline.

Channels of Payment and Reimbursement

Sprint Nextel will cover the costs of "comparable facilities" for each broadcaster through two forms of payment:  (1) manufacturer direct payments, and (2) broadcaster direct payments.

Manufacturer Direct Payment

Sprint Nextel will pay equipment manufacturers directly for comparable upgrades or replacements of eligible 2 GHz equipment that operate in the new 12 MHz channel plan.

• Sprint Nextel will cover the cost of a comparable replacement if upgrades are not possible.
• Broadcasters may choose replacements from a manufacturer of comparable equipment.
• Broadcasters may choose equipment with dual digital and analog, digital-only or analog-only modulation/demodulation schemes that support the new channel plan.
• Broadcasters that want additional features or capabilities to what a comparable unit provides can pay the manufacturer the incremental difference between the comparable unit and the desired unit.  For example, if a broadcaster with a 2 GHz mobile (truck) ENG transmitter wanted to replace it with a multi-band 2 and 7 GHz transmitter, then: 
  
  Without relocation reimbursement, the broadcaster would have to pay the entire equipment and installation cost.
  
  With relocation reimbursement, the broadcaster would pay the incremental difference:

• The cost difference between the comparable radio and the multi-band radio;
• Additional materials, such as replacing a Nycoil that would have worked with the comparable model;
• Additional installation costs, such as installing an additional mast top unit and preparing and installing the Nycoil.

Broadcaster Direct Payments

Sprint Nextel will reimburse broadcasters for reasonable relocation expenses in addition to direct equipment payments to manufacturers.  Upon signing a relocation agreement with Sprint Nextel, in some cases a broadcaster may be eligible for a payment upon execution of the contract.  Subsequently, the broadcaster can submit receipts to Sprint Nextel to receive monthly reimbursement payments for actual expenses that have been anticipated in the agreement.  If a station receives an initial payment, subsequent monthly payments are deducted against the payment until that amount has been depleted.

The following types of relocation expenses may be eligible for reimbursement through broadcaster direct payments:

 

Talent cueing system upgrades

Digital encoding introduces a video and audio delay that some current talent cueing systems may not be able to address.  Where this problem occurs, Sprint Nextel will cover the cost of the upgrades and/or additions necessary to maintain functionality comparable to the pre-relocation cueing system.  Facilities upgrades that are not required to achieve comparable cueing system functionality and/or performance will not be eligible for reimbursement.

Spectrum Monitors

Sprint Nextel considers spectrum monitoring solutions as a requirement for comparable facilities and thus eligible for inclusion in the Broadcaster's relocation compensation.  Generally, Sprint Nextel has set a not-to-exceed cap on spectrum monitoring solutions of $3500 per receive site, but there are permutations to this guideline.  Examples include:

Scenario 1.  A station has one receiver at a receive site and one link to backhaul it to the station.  Station receives: $3500 for the spectrum monitor for that receiver and a $1000 software/monitor allowance for the whole system (assuming that this is not the only receive site).

Scenario 2.  A station has two receivers at a receive site and one link to backhaul them to the station.  Currently, they use a video switcher to switch between the outputs of the two receivers.  Station receives: $3500 for a spectrum monitor, a $1000 allowance to switch the IF outputs from the receiver into the spectrum monitor, and a $1000 software/monitor allowance for the whole system.  The $1000 allowance for the switch can't be applied to anything else, and it's to be applied to any switching arrangement desired whether it's an in-house built station solution or a commercial product.

Scenario 3.  A station has two receivers at a receive site and two links to get them both back to the station.  Station receives: 2 x $3500 for two spectrum viewers - one for each backhaul since the station is used to looking at both receivers simultaneously, and a $1000 software monitor allowance for the whole system.

Any other scenarios are combinations of the three scenarios.  For example, a station that had three receivers and 2 backhauls at a receive site would combine Scenario 1 and Scenario 2 above.