FCC Chairman Ajit Pai is seen as receptive to a petition from NAB (see 1703170055) for changes to the post-incentive auction repacking plan, but any changes to the repacking timeline are likely to face considerable pushback from industry, said broadcast officials and analysts in interviews. Though broadcasters repeatedly praised Pai, his previous positions in their favor -- on ATSC 3.0, and his perceived plans to roll back media ownership rules -- haven’t faced strong opposition from a competing industry. On the repacking, NAB’s requests for a looser timeline are diametrically opposed to calls for a faster transition from wireless providers such as T-Mobile, said Roger Entner, analyst at Recon Analytics: “They need that spectrum tomorrow!”
Global efforts at spectrum harmonization alternately came under fire and were held up for applause by speakers Tuesday at Satellite 2017. The 2015 World Radiocommunication Conference raised questions about whether there's a fundamental breakdown of the ability to harmonize, said Dynamic Spectrum Alliance President Kalpak Gude. GSMA Senior Spectrum Adviser Veena Rawat said harmonization "is not dead." She said one constant issue with harmonization is the long period that can come between allocation of spectrum for a service and the actual rollout of those services in that band. She cited 600 MHz harmonization through the ITU in 2009, with countries today still transitioning their broadcasting.
U.S. Cellular disclosed it won 600 MHz licenses worth at least $327 million in the TV incentive auction, in an SEC filing. “With the completion of the Clock Phase of the auction, U.S. Cellular is now committed to purchase 600 MHz spectrum licenses on which it submitted bids for a minimum amount of $327 million, subject to increase as the FCC completes the Assignment Phase of the auction, which is pending,” the filing states. “U.S. Cellular expects to be obligated to pay for the total committed amount, less the $143 million upfront payment made in June 2016, in the second quarter of 2017. U.S. Cellular currently expects to make such payment using cash on hand and/or borrowings under its revolving credit agreement.”
The TV incentive auction's assignment phase, in which winning bidders will bid for the actual spectrum blocks in which they will deploy service, is a relatively important part of the auction, said industry lawyers and analysts. The FCC released a public notice Tuesday on the final stage of the auction, saying bidding in the assignment phase will start March 6 and should be over by the end of the month (see 1702140064). Industry observers said the A and G blocks are expected to be the least attractive to winning bidders, especially in urban areas. Meanwhile, some broadcast consultants and a firm affiliated with Dell's founder met with Chairman Ajit Pai and others at the FCC.
Scott Bergmann, CTIA vice president-regulatory affairs, met with Nese Guendelsberger, acting chief of the FCC Wireless Bureau, to make the group’s case for streamlined cell-siting rules. Earlier this month, CTIA President Meredith Baker made similar arguments to FCC Chairman Ajit Pai (see 1702030048). “CTIA highlighted the importance of sound policies at the federal, state, and local levels to facilitate the rapid and efficient deployment of wireless infrastructure to support 4G LTE and 5G networks,” said a filing in docket 16-421. It also encouraged the FCC to adopt the proposals in its recent small-cell public notice, the group said. “CTIA also discussed the importance of facilitating an adequate pipeline of additional spectrum to address consumers’ explosive demand for innovative wireless services,” the association said. “CTIA noted the success to date of the 600 MHz Incentive Auction and expressed its desire to continue to work with the Commission in partnership toward a speedy, workable post-auction repacking process.”
Bidding in the clock phase of the FCC incentive auction ended Friday after round 58, with forward auction bidders having bid $19.63 billion for 600 MHz spectrum that will be vacated by TV broadcasters, according to the Public Reporting System. Roughly $10 billion of those funds will go to pay broadcasters for winning bids in the reverse auction, more than $2 billion will go for reimbursement to repacked broadcasters and to cover the costs of the auction, and more than $6 billion will go to the federal treasury, Incentive Auction Task Force Chairman Gary Epstein and Deputy Chair Jean Kiddoo said in a blog post. The $19.63 billion raised in the forward auction means the incentive auction generated “the second highest total proceeds of any Commission spectrum license auction in its 20-plus year history,” said the blog post.
Wi-Fi advocates told the FCC it shouldn’t make changes to its rules for high-frequency spectrum that would be detrimental to unlicensed use of the bands. Microsoft, Public Knowledge and the Open Technology Institute and the Wi-Fi Alliance were among those weighing in. In December, wireless carriers sought changes (see 1612150067). Oppositions to the recon petitions were due at the FCC Tuesday in docket 14-177. Wireless industry commenters, meanwhile, opposed satellite industry petitions asking for the FCC to give fixed satellite service (FSS) downlink spectrum in the 42 GHz band and for less stringent rules on locating earth stations (see 1612160019).
The FCC must get the questions it asks right as it establishes reporting requirements for “repacked” broadcasters on their progress moving to new channels following the close of the TV incentive auction, NAB said in comments posted Thursday. T-Mobile, which made no secret of its interest in the 600 MHz spectrum being sold, encouraged the FCC to get as much information as possible. Earlier this month, the Incentive Auction Task Force sought comment (see 1701100057) on whether to require progress reports of repacked stations that don't receive repacking reimbursement funds. Comments were due Wednesday in docket 16-306, said a public notice.
The Stage 4 clearing cost for the TV incentive auction, $10.05 billion to clear 70 MHz of usable 600 MHz of spectrum, came as a surprise, but not a shock, to analysts and other auction watchers. Assuming the auction raises the $12.01 billion needed to pay broadcasters and close the auction, carriers bidding for 600 MHz licenses could get spectrum at a relative bargain price, auction watchers said. Overall, the FCC will need to clear 84 MHz to get 70 MHz into the hands of providers (see 1701130077).
The reverse auction portion of Stage 4 of the FCC incentive auction concluded Friday, as expected (see 1701100060), at a cost of $10.05 billion to clear 84 MHz, said the agency's Public Reporting System. That's a more precipitous drop from Stage 3's approximately $40 billion clearing costs than many analysts had predicted, they told us, and could indicate the auction may reach its final stage during the upcoming forward auction.With the cost of the repacking reimbursement fund and the auction added, the forward auction will need to raise a total of $12,011,676,822, according to the Incentive Auction Task Force. "I would expect that there will be enough interest among wireless bidders to close the incentive auction," said BIA/Kelsey Chief Economist Mark Fratrik, saying he was only “cautiously” optimistic. “If there is a God, Stage 4 closes,” said Preston Padden, an auction consultant to broadcasters.