Digital Funding Update Jeffrey Bobeck Vice President, Government Relations APTS April 14, 2005

Contact Info Jeffrey Bobeck (202)

Digital Funding Update William Cooperman Director, Public Broadcasting Division U. S. Department of Commerce, Office of Telecommunications & Information Applications April 14, 2005

Contact Info William Cooperman (202)

Digital Funding Update Ed Cameron Director, Advanced Services Division U.S. Department of Agriculture, Rural Utilities Service April 14, 2005

RUS PTV Topics >FY accomplishments >Reuse of old funds >Plans for FY 2005 program

FY Accomplishments >We made 34 grants to 33 applicants >27 grant recipients have executed documents and have “release of funds” >18 have drawn funds >2 are fully advanced – projects complete >Observations: >Grantees have 3 years to draw funds >Many grants were for translators

Unused Grant Funds >These funds can be reused should they go unexpended – they are “no year” funds >After perhaps another year we will contact grantees to ask if funds will be used >In our Distance Learning and Telemedicine Grant Program, we recover and reuse $3-5 Million in prior years’ granted funds >We don’t want to let these funds go unused

2005 Budget Provision >Provided further, That $10,000,000 shall be made available to convert analog to digital operation those noncommercial educational television broadcast stations that serve rural areas and are qualified for Community Service Grants by the Corporation for Public Broadcasting under section 396(k) of the Communications Act of 1934, including associated translators and repeaters, regardless of the location of their main transmitter, studio-to-transmitter links, and equipment to allow local control over digital content and programming through the use of high-definition broadcast, multi-casting and datacasting technologies.

Program Characteristics >Statute defines rural communities to 20,000 and under in population >Will focus on most rural and most economically disadvantaged service areas >We need a way to score and rank applications >Application dollar limit, matching funding, program priorities are open to discussion

2005 Program Planning >On March 29, OMB authorized our writing of the new regulation >We can either simply convert the 2003 NOFA or redesign the program

Contact Info Ed Cameron Director, Advanced Services (202)

Digital Funding Update Luis Guardia Media Technologies Corporation for Public Broadcasting April 14, 2005

Digital conversion status >308 out of 353 stations on the air >Forthcoming digital conversion survey will identify impediments facing remaining 46 stations >86 of the 308 would require upgrade to full power to comply with the power maximization FCC requirement

Digital priorities for 2005 >Received $39M for 2005 >$24M for public television >$20M – DDF >$4M – Digital Services Fund

Digital Distribution Fund >DDF Round 7 >Funded 72 Transmission and IRD apps, totaling $16.6M >IRD Projects - 27 >Transmission Projects - 45

Digital Distribution Fund >DDF Round 8 to open late May 2005 >Priority 1: transmission/related equipment >Priority 2: master control/related equipment >DDF Round 9 (summer 2005 if funds available) >Funding priorities to be informed by conversion survey results and specific station needs

Digital Services Fund >FY04 - $4.7M >33 applications submitted – 15 projects undergoing formal approval or contract negotiation processes >Applications focused on three major areas: >Education (K-12 and Adult) >Public Safety >Life-long learning

Digital Services Fund >FY05 - $4M >Review of DSF guidelines to implement targeted investment strategy >Increased emphasis on sustainability and scalability >Next round expected to open in summer, 2005

FY06 Digital Funding President’s (OMB Budget) CPB Justification to LHHS Digital $30M (out of FY06 general fund) $45M TV Inter- connection $52M (out of FY06 general fund) $52M

Contacts >CPB Media Technologies >Luis Guardia Sr. Director (202) >Alexis Dobbins, Technologies Initiatives Officer (202)