No, no one ever said they were going to do away with OTA. This has nothing to do with that anyways. What they wanted to do with OTA is to get 120 MHz of the 222 MHz of OTA UHF spectrum and auction it off for mobile. They still plan to do that but they are now counting on getting at best 80 MHz and probably closer to 60 MHz. There still would be 42 MHz on hi-VHF like there is today.
