November 14, 2018

Coalition and Sinclair Release Broadcast Overlay Report

November 15, 2011 -The Coalition for Free TV and Broadband and Sinclair Broadcast Group, Inc. (NASDAQ: SBGI) today announced the release of the Broadcast Overlay Report, “THE ECONOMIC VALUE OF BROADCAST INNOVATION – IMPACT ON THE U.S. TREASURY.”

The Broadcast Overlay Report outlines a plan that will bring broadcast television into the future and raise more than $60 billion for the U.S. Treasury compared to a broadcast television spectrum auction that is projected to raise less than $20 billion net.  Best of all, thousands of television stations will continue to exist, and with technology innovation, will thrive with the development of a more effective, efficient and robust wireless ecosystem.  A ‘Broadcast Overlay’ utilizes high power/high tower television broadcast facilities to provide large area coverage for “point-to-multipoint” (broadcast) data/services capable of being converged with “point-to-point” (unicast) data/services provided by other wireless operators.

Rajiv Hazaray of Business Analytix stated “This first of a kind paper quantifies the superiority of a mobile-friendly ‘Broadcast Overlay’ service versus the current policy choice of spectrum re-allocation and auction. With spectrum remaining in the hands of broadcasters to address the growing demand for mobile data, they also create tremendous consumer and taxpayer value from mobile IP services. The demands of a mobile data ecosystem are too diverse to be served only by cellular networks and commercial wireless operators. Different kinds of mobile data traffic require different networks and different service models.”

In commenting about the future of broadcasting, Mark Aitken, Vice President of Advanced Technology for Sinclair Broadcast Group said, “A lot of the discussions about ‘Next Generation’ broadcast technologies bring ‘Broadcast Overlay’ architectures to the front of possibilities. A ‘Broadcast Overlay’ service that is technically compatible with commercial wireless networks would allow users to consume more data at a lower cost with a higher quality of service and bring broadcasters new revenue opportunities through new ancillary services.  Foregoing auctions of television broadcast spectrum would mean a WIN-WIN-WIN for the U.S. Treasury-consumers-broadcasters under this kind of a plan.”

The report concludes that the best way to meet the projected explosive growth in mobile IP is to allow broadcasters to use point-to-multipoint ’Broadcast Overlay’ technology to provide the most efficient possible delivery of high bandwidth data to mobile users. Simply allocating more spectrum to commercial wireless operators would do very little to address projected massive capacity shortfalls and would do even less to address Federal budget deficits.  Commercial mobile networks based on “cellular” one-to-one architectures are not designed to efficiently carry a portion of the mobile data traffic that is likely to grow the fastest.

Irwin Podhajser, the Chairman of the Coalition said, “We imagine a future where the American people have more choices, not less.  We imagine a future where consumers can get faster, better and cheaper video delivery to their computers, cell phones and tablets.  We imagine a future that wireless companies could only dream of providing, but we as broadcasters are ready to make that dream a reality.”

The U.S. Treasury would receive far less revenue from one-time auctions of reclaimed broadcast spectrum than it would from recurring ancillary service fees, if broadcasters are permitted to serve the segment of traffic that commercial mobile networks are inherently weak at delivering.

A Broadband Overlay Report based on the Techno-economic Analysis prepared by Business Analytix, Inc. is now available for download at http://www.FreeTVandBroadband.org.

About the Coalition

The Coalition For Free TV and Broadband is a group of television broadcasters, concerned organizations, and individual citizens and has formed to ensure the survival of free television and to offer solutions to the nation for better, cheaper wireless broadband utilizing the broadcast industry. More information is available at www.FreeTVandBroadband.org

About Sinclair Broadcasting Group

Sinclair Broadcast Group, Inc., one of the largest and most diversified television broadcasting companies, owns and operates, programs or provides sales services to 65 television stations in 39 markets. Sinclair’s television group reaches approximately 24% of U.S. television households and is affiliated with all major networks. Pro forma for the Freedom transaction, Sinclair will own and operate, program or provide sales services to 73 television stations in 46 markets, reaching 26.3% of the U.S. television households. Sinclair’s television portfolio will consist of 20 FOX, 18 MNT, 13 CW, 11 ABC, 9 CBS, 1 NBC, and Azteca stations.

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