LAS VEGAS -- FCC Commissioners Mike O’Rielly and Ajit Pai told CES there are no guarantees the TV incentive auction will be a success. Commissioner Jessica Rosenworcel urged the FCC to release data on broadcaster participation. Earlier at the show, FCC Chairman Tom Wheeler projected confidence, saying all indications are broadcasters will offer spectrum for sale in every major market (see 1601060048). At the last CES a year ago, commissioners other than Wheeler discussed whether it was prudent for the agency to pause the auction, now set to start March 29 (see 1501080032).
Google, Microsoft and the Wireless ISP Association separately sought changes to the FCC’s rules for white spaces devices, in petitions for reconsideration filed at the agency just before a Wednesday deadline. GE Healthcare (GEHC) also sought reconsideration. The FCC approved the rules in August, but they weren't published in the Federal Register until November, which established the deadline for recon petitions. The petitions were posted Wednesday and Thursday in docket 14-165.
The FCC Wireless Bureau plans a pre-auction process tutorial for the forward part of the TV incentive auction before Jan. 19, the bureau said in a notice. The tutorial will offer “additional information concerning access to the Commission’s bidding system,” the bureau said. The forward auction will offer the 600 MHz spectrum made available by broadcasters for sale to carriers and other potential bidders. The bureau reminded potential bidders they must have an FCC-provided SecurID token to access the auction system to place bids in the reverse or forward auctions or to participate in any mock auction. The tokens “will be distributed to applicants for the reverse auction prior to the deadline for initial commitments, and to forward auction applicants prior to the announcement of qualified bidders, to enable applicants with complete applications to practice with the Auction System,” the bureau said Monday.
The Competitive Carriers Association asked the FCC to hold the TV incentive auction as planned and ignore broadcaster arguments for a transition period beyond the 39 months in the current rules. “The FCC’s planned 39-month transition period is more than enough time for broadcasters to relocate off the 600 MHz spectrum,” CCA President Steve Berry said in a Tuesday news release. “In fact, by the time the 39-month period ends, broadcasters will have had more than seven years to prepare for the introduction of new wireless broadband services that consumers crave. … Instead of asking for more time, broadcasters should be making plans now to relocate.” Patrick McFadden, NAB vice president-spectrum policy, said at the CCA convention in October that forcing all broadcasters off their spectrum by a given date makes little sense and will be unworkable (see 1510080026). “NAB supports a successful incentive auction that is voluntary and realistic in its deadlines," an NAB spokesman said in response. "It is not realistic to think that upwards of 1,000 stations can be repacked into a shrunken TV band in 39 months. Rather than setting an arbitrary 39-month deadline, the FCC should wait until the auction is over to set an end date for when stations turn in their licenses.”
AT&T will participate in the TV incentive auction but still has questions about how big it will go in the auction, CEO Randall Stephenson said Tuesday at a UBS financial conference. Stephenson said one big question is whether AT&T will be able to acquire the 2 x 10 MHz blocks that make deployment economically feasible. Executives from Verizon and T-Mobile sounded similar notes at the UBS conference Monday (see 1512070047).
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.