Identities of high bidders in June’s advanced wireless services (AWS) auction would be secret until the sale ends, under rules apparently headed for FCC approval. Sources said despite wireless carriers’ opposition, the Wireless Bureau seems inclined for the first time to embrace nondisclosure provisions. The proposal got backing this week from the FTC’s Bureau of Economics.
Wireless Spectrum Auctions
The FCC manages and licenses the electromagnetic spectrum used by wireless, broadcast, satellite and other telecommunications services for government and commercial users. This activity includes organizing specific telecommunications modes to only use specific frequencies and maintaining the licensing systems for each frequency such that communications services and devices using different bands receive as little interference as possible.
What are spectrum auctions?
The FCC will periodically hold auctions of unused or newly available spectrum frequencies, in which potential licensees can bid to acquire the rights to use a specific frequency for a specific purpose. As an example, over the last few years the U.S. government has conducted periodic auctions of different GHz bands to support the growth of 5G services.
Latest spectrum auction news
Verizon Wireless largely stands alone at the FCC in advocating secrecy for bidder information and package bidding in June’s advanced wireless services auction, T-Mobile said in an ex parte presentation. “Virtually every other commenter, representing the full spectrum of the industry, supports transparency,” T-Mobile said. “Similarly, only one potential bidder (Verizon) supports package bidding -- most potential bidders support a single auction without package bidding.”
The Technology CEO Council Wed. called on the FCC and NTIA to complete a full analysis of which spectrum bands aren’t being put to the highest and best use. The report should look closely at govt. bands that could be used more efficiently by business, public safety or others, the report said.
The FCC will stick with proposed minimum bids for an air-to-ground auction starting May 10 (CD Jan 12 p2). The Wireless Bureau set a reserve price of $5 million for the entire band. Since the FCC is allowing for many possibilities -- licensees could share the spectrum through overlapping licenses, or a single license holder could buy it all -- it set other minimums. Bids for 3 MHz licenses, with 2 MHz shared, must be at least $1.5 million each. An exclusive bid for the 3 MHz license must be at least $2.8 million. Winners of ATG licenses will be able to offer high- speed wireless Internet service on commercial airline flights.
Small and large wireless carriers want the FCC to drop a proposal to allow both traditional simultaneous multiple round (SMR) bidding and experimental “package” bidding in a June advanced wireless services (AWS) auction. Carriers also said they fret over a proposal to keep critical bidder data secret as the auction progresses. But 2 major carriers expected to be in on the auction -- Verizon Wireless and T-Mobile -- did not agree on whether secrecy would help or hinder bidding. The AWS auction of 1,122 licenses and 90 MHz of spectrum is deemed one of the most significant in many years, especially as carriers roll out spectrum-intensive 3G offerings.
The FCC Fri. released a further notice of proposed rulemaking that would block wireless carriers from partnering with designated entities (DEs) to buy spectrum at cut rates in FCC auctions. The FCC said it plans to wrap up the proceeding in time for the rules to take effect before a June advanced wireless services (AWS) auction.
The 90 MHz of 700 MHz spectrum set to be auctioned by the FCC by 2008 probably will be the last big block of spectrum below 2.5 GHz to reach market for many years. A June auction of advanced wireless services (AWS) spectrum (CD Feb 2 p5) will draw big firms. But the auction of 700 MHz spectrum to be cleared by the end of analog broadcasting (CD Feb 2 p1) may see the long-rumored entry into that spectrum by nontraditional players. Verizon Wireless and T-Mobile, which lobbied hard for the law authorizing the auction, are considered likely participants. The AWS auction is carriers’ first priority now, because it’s “first in the queue,” an industry source said.
T-Mobile and Verizon Wireless are widely expected to emerge as the major bidders, with the role Sprint Nextel and Cingular will play in the auction less clear, when the FCC sells 90 MHz of advanced wireless services (AWS) licenses in an auction slated to start June 29, which could raise $15 billion based on 2005 estimates from the Congressional Budget Office.
T-Mobile met with Chmn. Martin’s wireless legal adviser Fred Campbell last week to ask that the advanced wireless services auction, expected this summer, remain on track. “T-Mobile USA and other carriers, especially Tier II and Tier III carriers, need access to additional spectrum in order to compete effectively,” the carrier said during its presentation. T-Mobile said the auction was especially important with the recent wireless mergers. “With recent mergers and acquisitions, much of the currently available spectrum has been consolidated by a few large carriers,” T-Mobile said. “The AWS Auction represents the most desirable, readily usable spectrum for wireless broadband services (the first time since 1997, an auction that will include a full nationwide footprint of CMRS licenses).”
The House is likely to pass the budget reconciliation bill, with DTV provisions, when it takes the measure up Feb. 1, according to industry and Hill sources. “I think it’s good to go,” said a House aide on the Commerce Committee, who’s hoping the House will act on a voice vote. But a voice vote might be difficult since the conference report passed the House on a 212-206 vote (CD Dec 20 p1) and cleared the Senate 51-50 (CD Dec 22 p1). House Minority Leader Pelosi (D-Cal.) demanded a voice vote before the session ended last year when most lawmakers had left the city for the holidays. Pelosi said in a speech Thurs. that she would ask for a recorded vote on the budget bill.