Congress has an opportunity this year to pass bipartisan legislation forcing additional spectrum auctions, after next year’s TV incentive auction, former FCC Commissioner Robert McDowell said Wednesday on a call with reporters. McDowell said he's told by his Capitol Hill contacts that new legislation will premier later this month when Congress returns to Washington. CTIA and some of its major members are making a big push for legislation this year, industry officials told us. That's expected to be one of the hot topics next week at CTIA’s annual show in Law Vegas.
Staffers on Capitol Hill foresee a tall order in the 911 legislative recommendations that FCC Chairman Tom Wheeler laid out last week at APCO’s conference (see 1508190056), which aren't yet manifested in any package or set for the fall agenda to anyone’s knowledge. Several Hill staffers weren't familiar with outreach from the FCC on the legislative package that Wheeler described, which he said would be critical for the implementation of Next-Generation 911 and should factor into the congressional calendar in future months. Former FCC officials agreed the issues deserve serious and expedient Hill attention.
Industry consolidation has been a dominant factor overhanging how the wireless industry is regulated, especially on transactions policy. The FCC under President Barack Obama's appointees repeatedly has drawn a clear line at four national wireless carriers -- AT&T, Sprint, T-Mobile and Verizon. Industry observers disagree whether that makes sense in the current market.
Industry consolidation has been underway for decades and its challenges for the communications bar are nothing new, communications industry lawyers said. Law firms face steady pressure to keep the rates they charge low and, as companies expand, many take routine matters "in-house," the attorneys said. But the attorneys also said technological evolution, including the explosion of wireless, has meant new areas of practice and new clients seeking representation.
The Congressional Budget Office’s monthly budget review for July mentioned that spending increases for the entire federal government during the first 10 months of FY 2015 were in part offset by certain FCC spectrum auction developments. “Payments to the [FCC] from auctions of licenses to use the electromagnetic spectrum increased by $30 billion,” said the CBO report, released Friday. “Because the proceeds from spectrum auctions are recorded in the budget as offsetting receipts, that increase in payments has resulted in lower outlays.”
Broadcasters and public interest groups lost their fight to keep all TV stations out of the duplex gap between uplink and downlink frequencies bought by carriers in the upcoming broadcast incentive auction. That was as expected (see 1507300042), though it left both broadcasters and the public interest groups upset. The FCC approved 3-2 the “procedures” for the auction, after a contentious debate. Commissioners Ajit Pai and Mike O’Rielly said the rules could set the auction up for failure.
The biggest trade associations in the video space spent less money lobbying in Q2 this year than last, according to second quarter lobbying disclosure forms. NCTA spending was $2.95 million vs. last year’s $4.01 million in Q2. NAB lobbying dropped to $4.17 million, from the $4.65 million it spent last year during the same quarter. Those forms were due Monday, and several weren't posted by our deadline.
The Senate Commerce Committee locked down July 29 as the date for its long-expected hearing on spectrum, several industry officials said. Witnesses are widely expected to include CTIA President Meredith Baker, a strong advocate for more commercial spectrum. The committee hasn't announced the hearing, confirmed the date or confirmed any of the witnesses. Industry observers told us that various pieces of spectrum-related legislation seem to be gaining momentum and may be ripe for advancement, though some questioned the carriers' demand for more spectrum.
Policymakers have had enough of T-Mobile’s requests for preferred treatment in the TV incentive auction and are just saying no to a larger spectrum reserve -- spectrum set aside for competitors without extensive low-band holdings in a particular market -- Mobile Future Chairman Jonathan Spalter alleged Friday in a blog post. T-Mobile CEO John Legere has made the issue a top regulatory priority for the carrier (see 1507020057). “After Periscoping his way through Washington, John Legere has left a path of alienation in his wake,” Spalter wrote. “Rather than declaring victory for convincing the FCC to block national rivals AT&T and Verizon from bidding on up to 30 MHz of prime spectrum in the upcoming broadcast spectrum auctions, Legere is seeking to publicly bully the commission into giving his company right of first refusal over even more bandwidth and at an even steeper discount.” T-Mobile is not responding to Spalter, a spokesman said.
Two House Republicans warned the FCC not to restrict participation in spectrum auctions. “We strongly oppose any rule changes that would depress participation in the upcoming incentive auction for 600 MHz [of] broadcast TV spectrum,” said Commerce Committee Vice Chairwoman Marsha Blackburn, R-Tenn., and Communications Subcommittee Vice Chairman Bob Latta, R-Ohio, in a letter sent Friday. They blasted the idea of “greater set-asides” than the FCC has already specified. They also said the FCC needs to further overhaul the designated entity rules. The FCC should be “guided by a simple principle: A small business program must serve small businesses and not become a forum for corporate welfare,” they said. “But real small businesses who are building mobile broadband to serve their communities do not have deep pockets, and placing too high a cap on bidding credits is only likely to encourage speculators and others more interested in profiting from this government program rather than deploying new broadband infrastructure and creating real competition.”