T-Mobile, CCA, Support Some Delay in Scheduling H-Block Auction
FCC Commissioner Jessica Rosenworcel got some support for her opposition to the FCC auctioning the H block in January, instead saying it should wait until it can be sold in combination with other spectrum later in the year. Rosenworcel has been at odds with Commissioner Ajit Pai, who wants the auction to take place as soon as possible (CD Aug 19 p1). While auction timing is a bone of contention at the FCC, it got little mention from the carriers who filed reply comments on H-block auction rules, which were due at the agency Friday. Most focused instead on whether package bidding should be allowed.
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T-Mobile said it generally supports holding spectrum auctions as quickly as possible, but is willing to wait for a few months for the H-block. “In the circumstances currently facing the Commission and the mobile broadband industry, combining the H Block and AWS-3 spectrum auctions may have merit, if feasible and if doing so would not sacrifice other goals of the Commission for these auctions,” T-Mobile said (http://bit.ly/19tIyrG). “Thus, T-Mobile respectfully asks that the Commission consider such an approach -- even if it might result in a short delay of the H Block auction.” The bands have similar characteristics, T-Mobile noted. “The H Block is directly adjacent to the broadband PCS band, which is intensively used for mobile broadband services, while the AWS-3 Bands are either already designated for or are adjacent to existing domestic wireless spectrum."
The Competitive Carriers Association said the FCC should wait on an H-block auction until after the agency wraps up rules on spectrum aggregation. “Potential auction participants need time to prepare for an auction, including time to analyze where they and other potential competitors will be eligible to bid on particular licenses,” CCA said (http://bit.ly/170kFYp).
AT&T and Sprint both filed, but focused more narrowly on hierarchical package bidding (HPB) and other aspects of the auction design. Package bidding would allow a carrier to bid on both individual licenses and on certain predefined packages of licenses.
"The majority of commenters that discuss HPB agree that HPB would add unnecessary complexity to the auction, decrease participation, disproportionately harm smaller carriers, and result in an inefficient H Block auction,” Sprint said (http://bit.ly/1bNnixS). “Notably, the comments also explain that the purported revenue-generating benefits of HPB are uncertain in the context of the H Block and that HPB would violate Commission statutory obligations in carrying out competitive bidding."
AT&T said the FCC itself has recognized why package bidding makes sense for carriers that need to win multiple licenses at the same time to justify investing in H-block spectrum. “Many carriers may wish to invest in H Block technology in a particular geographic area only if they can be assured of having H Block spectrum holdings throughout a larger set of geographic areas,” AT&T said (http://bit.ly/170olJI). “Thus, an inability to place all-or-nothing bids for geographic packages would cause such carriers to suppress their bids lest they ‘win’ geographic areas that have limited value to them unless their spectrum holdings in those areas can be combined with similar spectrum holdings in other geographic areas."
The Rural Telecom Group said many carriers have made their views clear against package bidding. “The comment record ... is essentially a harmonized chorus of small, mid-sized and even large carriers vocalizing their opposition to the Bureau’s proposal to implement package bidding, particularly hierarchical package bidding,” RTG said (http://bit.ly/19tRVaO).