Spectrum Financial Partners supports a request by the Blooston Rural Carriers that the FCC change a requirement that bidders in the TV incentive auction are active on 95 percent of their eligibility from the start of the auction, without activity waivers even for small carriers. The wireless carriers represented by the Blooston law firm asked the FCC for changes to the rule last month. Spectrum Financial Partners said it's “partnering with others in bidding in the upcoming 600 MHz incentive auction, and is keenly interested in the opportunities for small businesses to competitively participate in these transactions.” The forward auction is more likely to be a success “if the Commission adopts procedures that allow greater bidding flexibility by smaller applicants to reduce the risk of their prematurely exiting the auction,” the firm said. The filing was posted Friday in docket 15-146.
Verizon will bid, at least at some level, in the TV incentive auction, said Chief Financial Officer Fran Shammo Monday at a UBS financial conference. But Verizon likely won’t pursue licenses for major urban markets like New York, he said. Shammo also confirmed that Verizon has some interest in buying at least part of Yahoo. In June, Verizon wrapped up (see 1510230054) its buy of AOL.
FCC rules on the methodology to be used during the incentive auction to predict interservice interference between broadcasting and wireless services and on a cap on the aggregate amount of new interference a TV station may receive from other TV stations in the repacking process take effect Dec. 17, said a notice in Tuesday's Federal Register. Parts of the rules still being reviewed by the Office of Management and Budget don't take effect until the review is complete, the FCC said. Rules approved by the FCC in August allowing wireless mics to use new bands and share spectrum in the TV band (see 1508060050) also take effect Dec. 17, except for parts still being reviewed by OMB, said a second notice in the FR.
The FCC should quickly reject NAB arguments that the agency locate one or more vacant channels for unlicensed users in broadband spectrum rather than the UHF band, the Competitive Carriers Association said in a letter to the FCC in docket 15-146. NAB “contrary to evidence in the record, questions the need for wireless broadband spectrum opportunities,” CCA said. “NAB’s proposal contradicts the Spectrum Act, disregards competitive carriers’ dire need for low-band spectrum and the likely robust competition for reserve spectrum, and ignores the agency’s consistent public interest findings regarding the 600 MHz band plan.” NAB and other broadcaster commenters strongly opposed the FCC’s vacant channel proposal in comments at the agency (see 1511020059). NAB warned in Oct. 30 reply comments the proposal would be a windfall for some big companies that want spectrum for free rather than buying it in the TV incentive auction. “The Commission’s reversal of years of decisions regarding the priority of licensed over unlicensed services is not only legally questionable, it also represents picking winners and losers in the marketplace,” NAB said.
The U.S. is putting unprecedented focus on identifying and harmonizing bands for international mobile telecom (IMT), as the U.S. delegation negotiates with other countries at the World Radiocommunication Conference in Geneva, industry observers said. Some skeptics question U.S. motives and whether it should really matter to such a large market as the U.S. whether other nations support its move to reallocate TV spectrum for mobile broadband.
Investor Chamath Palihapitiya and his boutique venture capital firm Social Capital are looking at coming into the TV incentive auction in a big way, spending as much as $10 billion on 600 MHz spectrum, said a report in Re/code. The new venture, Rama, would use software from one of Palihapitiya's companies, LotusFlare, to help manage and organize a new network, he reportedly said. Preston Padden, former Expanding Opportunities for Broadcasters Coalition executive director, had a brief response in an email: “WooHoo!” Palihapitiya didn't comment. He's an electrical engineer and partial owner of the NBA's Golden State Warriors.
T-Mobile expects a very successful TV incentive auction, Chief Technology Officer Neville Ray said Thursday at a Morgan Stanley financial conference. “There is a dearth of low-band spectrum and there’s a dearth of licensed spectrum, period,” Ray said. “I think there’s going to be a lot of interest in the spectrum.” He predicted it would be difficult for any carrier to pass up the opportunity to buy 600 MHz spectrum if they can. The auction is going to be a “once-in-a-lifetime opportunity to level the playing field for T-Mobile US versus the other national carriers who have always had low-band spectrum,” said T-Mobile Chief Financial Officer Braxton Carter, also speaking at the conference. T-Mobile plans to raise about $6 billion in capital before the auction but could spend as much as $10 billion, he said. Carter also predicted T-Mobile will see relatively affordable spectrum as a result of the FCC's decision to set aside reserve spectrum for competitive carriers in many markets. Peter Ewens, executive vice president-corporate strategy, said T-Mobile will be in the market for additional 700 MHz spectrum right up to the start of the incentive auction quiet period Jan. 28.
Many unknowns remain about the TV incentive auction and it's still too early to make predictions about Verizon’s participation in the spectrum sale, Chief Financial Officer Fran Shammo said Tuesday at a Wells Fargo investor conference. Shammo said Verizon sees the 600 MHz spectrum as at best useful for supplementing its national 700 MHz footprint. He downplayed any Verizon interest in Dish Network’s AWS-3 holdings.
Pointing to possible harm to the over-the-top (OTT) market, Dish Network officials want the FCC to deny approval of Charter Communications buying Bright House Networks and Time Warner Cable. Dish was a major opponent of Comcast's now-dead attempt at buying TWC, citing potential harm to OTT competition. "The only difference [this time] is Charter doesn't own NBC," Dish CEO Charlie Ergen said Monday in a conference call on Q3 financial results. Some thought his comments on the incentive auction, meanwhile, signaled Dish may not go big on the auction.
CTIA and NAB were unable to resolve a key question on the broadcaster repacking after the TV incentive auction: Should the FCC stick with its current 39-month deadline for clearing the spectrum or make more decisions on timing after the auction?