AUCTION OF RECAPTURED BROADCAST TELEVISION SPECTRUM.

SEC. 3003. AUCTION OF RECAPTURED BROADCAST TELEVISION SPECTRUM. Section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)) is amended by adding at the end the following new paragraph: “(14) Auction of recaptured broadcast television spectrum.— “(A) Limitations on terms of terrestrial television broadcast licenses.—A television broadcast license that authorizes analog television service may not be renewed to authorize such service for a period that extends beyond December 31, 2006. “(B) Extension.—The Commission shall extend the date described in subparagraph (A) for any station that requests such extension in any television market if the Commission finds that— “(i) one or more of the stations in such market that are licensed to or affiliated with one of the four largest national television networks are not broadcasting a digital television service signal, and the Commission finds that each such station has exercised due diligence and satisfies the conditions for an extension of the Commission’s applicable construction deadlines for digital television service in that market; “(ii) digital-to-analog converter technology is not generally available in such market; or “(iii) in any market in which an extension is not available under clause (i) or (ii), 15 percent or more of the television households in such market— “(I) do not subscribe to a multichannel video programming distributor (as defined in section 111 STAT. 266602) that carries one of the digital television service programming channels of each of the television stations broadcasting such a channel in such market; and “(II) do not have either— “(a) at least one television receiver capable of receiving the digital television service signals of the television stations licensed in such market; or “(b) at least one television receiver of analog television service signals equipped with digital-to-analog converter technology capable of receiving the digital television service signals of the television stations licensed in such market. “(C) Spectrum reversion and resale.— “(i) The Commission shall— “(I) ensure that, as licenses for analog television service expire pursuant to subparagraph (A) or (B), each licensee shall cease using electromagnetic spectrum assigned to such service according to the Commission’s direction; and “(II) reclaim and organize the electromagnetic spectrum in a manner consistent with the objectives described in paragraph (3) of this subsection. “(ii) Licensees for new services occupying spectrum reclaimed pursuant to clause (i) shall be assigned in accordance with this subsection. The Commission shall complete the assignment of such licenses, and report to the Congress the total revenues from such competitive bidding, by September 30, 2002. “(D) Certain limitations on qualified bidders prohibited.—In prescribing any regulations relating to the qualification of bidders for spectrum reclaimed pursuant to subparagraph (C)(i), the Commission, for any license that may be used for any digital television service where the grade A contour of the station is projected to encompass the entirety of a city with a population in excess of 400,000 (as determined using the 1990 decennial census), shall not— “(i) preclude any party from being a qualified bidder for such spectrum on the basis of— “(I) the Commission’s duopoly rule (47 C.F.R. 73.3555(b)); or “(II) the Commission’s newspaper cross-ownership rule (47 C.F.R. 73.3555(d)); or “(ii) apply either such rule to preclude such a party that is a winning bidder in a competitive bidding for such spectrum from using such spectrum for digital television service.”.