The FCC should remember it works for Congress as legislators work on a spectrum bill, said Rep. Gene Green, D-Texas. At CES, FCC Chairman Julius Genachowski sought flexibility to make rules for spectrum auctions (CD Jan 17 p4). “It is the role and obligation of Congress to specify the authority of regulatory agencies such as the FCC,” Green said in a written statement last week. “It is important that the Commission is reminded that they are not permitted to operate outside the constraints of Congressional authority."
T-Mobile Vice President Kathleen Ham questioned why Congress needs to put tight controls on the FCC’s ability to shape future spectrum auctions, in a blog post Monday. Ham, the first chief of the FCC’s Auctions Division, said the commission has extensive experience managing auctions and should be left to do a job it knows well. Ham’s comments are in sharp contract to those by AT&T, T-Mobile’s recent proposed merger partner (CD Jan 18 p1). “I am puzzled by the newfound distrust in the FCC to establish the ground rules for future spectrum auctions,” Ham wrote (http://xrl.us/bmpkoh). “Legislation pending in Congress would effectively preclude the FCC from considering existing spectrum holdings in determining the qualifications for participation in auctions.” Congress’s fear appears to be “that the FCC will unwisely promulgate regulations to restrict the largest wireless carriers from bidding for licenses in upcoming auctions,” she contended. “Some suggest the FCC is grabbing for new and extraordinary power to impose such limits as part of its effort to gain incentive auction authority and additional spectrum for the mobile broadband future. In truth, for almost 20 years, the FCC has had such authority under section 309(j) of the Communications Act, and has used it to establish reasonable measures to fulfill Congress’s directive to avoid excessive concentration of licenses and promote competition in spectrum auctions."
The FCC misunderstood AT&T’s objections to remarks last week by Chairman Julius Genachowski over how much authority the agency should have to set the rules for incentive spectrum auctions, Senior Vice President Robert Quinn said in a blog. Quinn said AT&T’s primary concern is that the company not be excluded from bidding in upcoming auctions because of its large size relative to other carriers.
LAS VEGAS -- AT&T Senior Executive Vice President Jim Cicconi said he hopes FCC Chairman Julius Genachowski’s remarks on spectrum legislation aren’t a sign the agency would oppose bills that limit the commission’s ability to place conditions on spectrum licenses sold during a voluntary incentive auction of TV spectrum (CD Jan 13 p1). House Commerce Committee Chairman Fred Upton, R-Mich., also raised concerns about Genachowski’s statements made in a CES keynote speech on Wednesday. Wireless Bureau Chief Rick Kaplan defended Genachowski, and T-Mobile backed the chairman, too.
LAS VEGAS -- FCC Commissioner Robert McDowell said in remarks Wednesday at CES it’s unclear whether Congress will approve incentive auction legislation. All three FCC commissioners spoke at the conference, including a keynote address by Chairman Julius Genachowski, prior to a panel featuring McDowell and Mignon Clyburn. A key topic was a proposed incentive auction of broadcast TV spectrum, possible only if Congress gives the agency authority.
FCC Commissioner Robert McDowell expects Universal Service Fund reform to dominate the FCC’s agenda in the early part of 2012, starting with a Lifeline cleanup order at the Jan. 31 meeting. McDowell hopes that will be followed by an order addressing USF contribution issues left unsettled by last October’s order (CD Oct 28 p1), he said during an interview last week. McDowell said he remains open minded on a 700 MHz interoperability order and stressed the importance of spectrum efficiency. McDowell also thinks more media ownership deregulation than the FCC proposed in the quadrennial review may be needed.
The FCC should streamline and clarify its Section 310(b)(4) review process with an eye on spurring foreign investment, CTIA said in comments (http://xrl.us/bmnuxq) responding to an August notice of proposed rulemaking on a review of foreign ownership practices for common carrier and aeronautical radio licensees. “Additional investment is essential for U.S. wireless providers engaged in capital-intensive efforts to expand 4G network deployment, participate in upcoming spectrum auctions, and maintain U.S. leadership in mobile broadband, and access to capital from foreign investment can play a critical role for many carriers in meeting these objectives,” CTIA said. “Thus, CTIA supports the Commission’s proposals to streamline and provide greater transparency and predictability."
An auction of 119 FM frequencies may not raise much money for the U.S. Treasury. With radio stations still recovering from the Great Recession and lending for mergers and acquisitions tight, radio broadcasters may not have the financial wherewithal to bid up by much minimum payments for construction permits in FCC Auction 93, experts said. It seems unlikely to raise more money than auctions of a similar number of stations held by the commission last year and in 2009, said lawyers who represent radio stations before the agency. Last year’s auction had net winning bids of $8.54 million (CD April 28 p9), with $5.25 million (CD Sept 8/09 p7) in 2009.
Small carriers who have long asked the FCC to mandate that handsets developed for use in the 700 MHz band work across lower 700 MHz, could be headed for victory next year. The FCC agreed to launch a notice of proposed rulemaking last week as part of an order approving AT&T’s buy of 700 MHz licenses from Qualcomm (CD Dec 27 p1). The NPRM, slated for the first quarter, would tee up the issue for what could be a key early decision of the newly reconstituted FCC, following the expected confirmation of Jessica Rosenworcel and Ajit Pai as commissioners as early as February.
Spectrum wasn’t included in the two-month payroll tax extension agreed to Friday morning by Congress. The agreement (CD Dec 23 p8) did pave the way for a House-Senate conference on a year-long extension, and it’s expected that the body will consider authorizing spectrum auctions as a spending offset. “For those interested in spectrum legislation, the one significant difference between this agreement and the deal endorsed by the Senate last week is that it means the House and Senate are already in conference on an extension of the payroll tax through 2012,” said David Taylor, executive director of the Wireless Broadband Coalition. “In this conference, the House-passed version of HR 3630 is the only option containing the offsets needed to pay for what now amounts to a 10-month extension of the payroll tax and other expiring provisions. … Procedurally, the deal effectively limits the scope of the conference and increases the odds that spectrum legislation based largely on the [House Commerce Committee’s spectrum bill] will be incorporated into any conference agreement that emerges.” The conference will have until the end of February to reach a deal. Among the eight conferees announced earlier this week by the House: Commerce Committee Chairman Fred Upton, R-Mich., and Communications Subcommittee Chairman Greg Walden, R-Ore. Also joining the conference are House Commerce Committee Ranking Member Henry Waxman, D-Calif., and four other House Democrats, Minority Leader Nancy Pelosi, D-Calif., announced Friday. Senate Majority Leader Harry Reid, D-Nev., chose four senators, but none come from Senate Commerce. Minority Leader Mitch McConnell, R-Ky., didn’t name his conferees by our deadline. President Barack Obama Friday afternoon signed into law the payroll tax extension and the fiscal-year 2012 appropriations bill, including $340 million for the FCC.