FCC Provided Some Needed Clarity on Incentive Auction Quiet Period, Competitive Carriers Say
FORT LAUDERDALE -- Competitive carriers view the guidance offered by the FCC Tuesday evening (see 1510060058) on business practices during the quiet period around the TV incentive auction as mostly positive, industry officials at the Competitive Carriers Association convention told us Wednesday. The FCC has faced recurring questions about the quiet period, which starts when companies file short-form applications to bid in the auction (see 1508130043). Carriers have warned a prolonged quiet period could have a “chilling effect” on how they do business. Broadcasters, meanwhile, had some praise for the guidance, though it could hurt small law firms (see 1510070082">1510070082).
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“It has some helpful clarifying language on some of the language in the rule that previously had been a little bit unclear,” said Kathleen Ham, T-Mobile senior vice president. “When they talk about post-market auction structure, they’re also saying [prohibited action] has to concern bids and bidding strategies related to the licenses that are actually in the auction. That’s something that’s actually helpful.” But Ham also said T-Mobile is still “fully digesting” the rules. “It is complicated,” she said. “We’ll see how it’s applied, in practical terms, to the business. Any guidance is always welcome.”
“We’re pleased that there is more clarity in the rules,” said CCA President Steve Berry. CCA hopes for additional clarity on how discussions with FirstNet on possible partnerships fit in. “It was good that they were much more clear about ongoing business relations and business activities,” Berry said. The quiet period could last for six months or longer, he said. “Most carriers will err on the side of being conservative on this.”
Many CCA members have “spent a lot of time” trying to understand what FirstNet offers and how they can incorporate 700 MHz spectrum leased from FirstNet in their networks, Berry said. Many of the carriers interested in the 600 MHz spectrum sold in the incentive auction are interested in the FirstNet spectrum as well, he said. CCA was disappointed that recent pronouncements by FirstNet seem to favor national carriers over smaller regional carriers, he said.
“The FCC's quiet period rule appears to strike the right balance,” said Michael Calabrese, director of the New America Foundation's Wireless Future Project who also spoke at CCA Wednesday. “It will avoid disrupting business-as-usual by making clear that only communications related to the auction and bidding strategies are prohibited. At the same time, it specifically prohibits broadcasters from revealing their degree of participation in the auction, for example, whether they are selling their license, or just offering to move from UHF to VHF.” These kinds of decisions “will influence both the reverse and forward auction bids in particular markets, so it's appropriate that the commission limits what's public to simply whether or not the station is participating at all in the auction,” he said.
“I think everyone is searching for a way to create information parity to avoid distortions in the auction,” said Roger Entner, analyst at Recon Analytics. “The FCC is wise to threaten sanctions above and beyond what the canon of ethics can and would do in the case of an infraction.”
During a panel at CCA, Ham said it's no surprise that Sprint opted not to participate in the incentive auction (see 1510050059). Sprint wasn't that active in the incentive auction docket and has a history of not participating in FCC auctions, she said. “It’ll be a very healthy auction,” she said. Ham said Sprint hasn't participated in a major FCC spectrum auction since 1996.
The incentive auction has never been only about the largest nationwide carriers, said Tim Donovan, CCA vice president-legislative affairs. “It’s about 100 wireless carriers out there who are trying to compete and need to get access to additional spectrum to do that.”
Alison Minea, Dish Network senior counsel-regulatory affairs, said her company’s stance is no mystery. “Dish has said many times previously that we plan to participate in the incentive auction,” she said. The company is still trying to figure out what it will do in the auction, she said.
Discussing LTE-unlicensed, Ham said Wi-Fi is a “great technology,” but could also improve. “Putting some pressure on Wi-Fi to improve its technology might not be a bad thing,” she said. Some versions of Wi-Fi interfere with other versions, she said. The administration has “made a big deal about sharing” and that’s what LTE-U is all about, she said.
The industry insists that LTE-U contains a “coexistence” mechanism, but each carrier’s version of LTE-U will be different, Calabrese countered. Licensed assisted access is going through the standardization process in Europe and will reportedly have a “much greater emphasis on coexistence,” he said. That is why Wi-Fi advocates asked the FCC to “sort of put the brakes” on LTE-U until potential problems are worked out, he said.
Ham also fired back at Jim Cicconi, AT&T senior executive vice president-external and legislative affairs, who Tuesday accused T-Mobile of implementing wireless VoIP without first getting the proper clearance from the FCC (see 1510060026). Cicconi seems to believe the FCC is picking winners and losers, particularly favoring T-Mobile and the small carriers, she said. “That’s kind of silly,” she said. “If AT&T had its way, T-Mobile wouldn’t exist today. … We’re subject to the same regulations that they are.”