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Without Sinclair stepping in to keep Dielectric as a viable operating subsidiary, this critical manufacturing capacity would not be available today, making the repack much more expensive and inevitably delaying its completion. What most people dont know is that we bought Dielectric at a time when it was insolvent, about to be shut-down by its corporate parent due to an FCC freeze on granting new licenses. Investment in new product development, new manufacturing equipment, new engineering software, hiring and training of staff culminated in the recent opening of a second factory that will employ 50 people and enable Dielectric to produce up to 1,300 UHF main and auxiliary antennas for this repack. In fact, Dielectric has invested heavily in preparation for repack over the past four years. Huh? We bought Dielectric to be in the antenna building and selling business, not to not-build and not-sell antennas. Our opponents claim that we will use this leadership in the industry to (inexplicably) not sell broadcasters the new antennas they need to repack.
#FCC REPACK TV#
We own Dielectric, the largest TV antenna manufacturer in the U.S., which is a supplier of antennas to approximately 80% of the market. Our ownership of Dielectric is actually helping the repack. Having spent years in leading the development of this technology, we have no incentive to delay its implementation.
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We are very excited about the competitive services that Next Gen TV can offer consumers, including new mobile video services. Delaying the repack would mean delaying a smooth rollout for Next Gen TV for consumers. As the ATSC 3.0 technology standard becomes finalized and approved by the FCC, the implementation can most efficiently happen in conjunction with the repack. Without a completed repack, we cant roll out Next Gen TV as efficiently as we would like to. To the contrary, Sinclair wants the repack to be completed quickly and efficiently. To what end? None of our opponents have articulated a cogent rationale as to why we would slow down the repack. So delaying the repack means, as a practical matter, the pointless and, indeed, suicidal act of losing our audience, advertisers, and other revenue streams. The current FCC rules allow it to immediately force any station off the air if it fails to meet a Phase Completion Date (with very few, highly technical exceptions). There is no formal mechanism for any broadcaster to single-handedly slow down the repack. Sinclair has neither the ability nor the incentive to slow down the repack. While we cant and dont speak for Tribune today, we understand that their engineers are working just as diligently as we are to meet their Phase Completion Dates.
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We have kept the FCCs Media Bureau regularly updated on our progress, and I believe they fully understand the investment of time, expertise and other resources we are making in this effort. We have submitted orders for our first 20 high power antennas, along with 20 wideband auxiliary antennas and transmission line runs, and are ready to submit orders for more, but are awaiting permission from the FCC to maximize our power and antenna patterns. We are proud to say that Sinclair is currently on schedule to meet all of its Phase Completion Dates. The repack process started months ago, when I assembled a team of over 20 professionals to tackle repacking 98 stations. The Tribune deal has no impact on the timing of the repack completion. As Sinclairs lead engineer, I want to set the record straight. Opponents to our merger are fabricating tales that the combined Sinclair/Tribune will intentionally delay completion of the repack. There have been a lot of misleading claims made lately on the impact that Sinclairs acquisition of Tribune will have on the FCCs repack process.
#FCC REPACK FULL#
The following communication was distributed on the Materials page of Sinclairs external website, :īlog: Full Steam Ahead for Sinclairs Repackīy Harvey Arnold, Vice President of Engineering, Sinclair Broadcast Group Under the Securities Exchange Act of 1934 Pursuant to Rule 425 Under the Securities Act of 1933