FCC Incentive Auction Moves To Mid-2015

Chairman Wheeler says he expects the commission would be ready to vote on major policy regulations for the spectrum auction by the spring of that year. Reaction from industry representatives favorable.

The FCC’s plan to hold an incentive auction to repurpose broadcast spectrum for smartphones and other wireless devices is slipping by a year — to 2015, Tom Wheeler, the agency’s new chairman, announced Friday.

“I believe we can conduct a successful auction in the middle of 2015,” said Wheeler, in a blog on the FCC’s website, (see here).

In his blog, Wheeler also said he expected that the FCC would be ready to vote on major policy regulations for the auction by spring. Under the FCC’s original schedule, the auction rules were supposed to be in place this year.

In addition, Wheeler said the FCC would release a public notice during the second half of 2014 seeking comment “on how specific parts of the auction will actually function.

“For the incentive auction to be a success, we must also ensure that the operating systems and software to run it work from the moment the first bid is placed, until the final broadcast station is relocated or ‘repacked.’ 

“As part of our auction system development, we will check and recheck the auction software and system components against the auction requirements, and under a variety of scenarios replicating real life conditions,” Wheeler continued.

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“Only when our software and systems are technically ready, user friendly, and thoroughly tested, will we start the auction.”

NAB President-CEO Gordon Smith, responded to the news: “NAB appreciates Chairman Wheeler’s decision to set new goals for the commission’s incentive auction timeline. As NAB has long maintained, given the complexity of the auction and its many moving parts, the most important goal is to get the auction done right. We look forward to continuing our efforts with the commission and industry stakeholders as we work towards achieving a successful auction that delivers spectrum for broadband while ensuring a vibrant future for broadcasting.”

Preston Padden, executive director of the Expanding Opportunities for Broadcasters Coalition, a group representing stations interested in participating in the auctions, said: “Our coalition commends Chairman Wheeler for getting on top of the incentive auction issues so quickly and for setting a thoughtful and realistic schedule. We also commend the [FCC] auction task force that has worked so hard to get us this far.”

And House Energy and Commerce Committee Ranking Member Henry A. Waxman said: “I agree with Chairman Wheeler that a successful incentive auction of the broadcast television spectrum must be the FCC’s top priority.  I commend the chairman for laying out an aggressive, yet achievable time frame for the auction.  I also appreciate his commitment in ensuring all the procedural and technical challenges will be fully addressed before the auction takes place.  I look forward to working with the commission to achieve Congress’ directives to promote a vibrant, competitive wireless marketplace while providing a down payment for the nationwide interoperable public safety network that our first responders deserve.”


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Ellen Samrock says:

December 6, 2013 at 2:23 pm

The remaining legacy of little Julius struck down. He pushed so hard for the auction to be conducted by mid-2014. For that matter so did the EOBC. But as Preston Padden is finding out most qualifying station owners are giving the auction a thumbs down. He will need the extra time to strong arm more broadcasters into participating. But a lot can happen between now and 2015. It wouldn’t surprise me if the telcos and broadband providers will have fully satiated themselves on spectrum from the other auctions that are soon to be conducted and be less inclined to commit any more money by the time the 600 MHz auction begins.

Jim Church says:

December 7, 2013 at 10:39 am

Contrary to conventional thinking about this auction, the 6400+ LPTV licensees hold the key to clearing enough spectrum for mobile broadband, provide a contiguous band for unlicensed users, and if restructured properly can generate an additional $ 5 Billion more to the government by lowering the opening bids the government will pay for the spectrum. Without LPTV in the auction they retain all their rights of displacement and they will re-engineer themselves back into most all available channel slots in each DMA. And when you consider that more than 2000 LPTV construction permits for those still completing their A-D conversions and from the 2009 rural filing window are still yet to be built, the new projected mid-2105 auction date could be pushed back even further. LPTV holds the key to a successful 600-MHz auction, and LPTV operators have a lot of suntan lotion to hang-out in this most valuable beachfront spectrum.