Wheeler: Auction ‘Delivered’ On Its Promise

On what may be his last day in office, FCC Tom Wheeler declared that the FCC incentive auction has “delivered on its ambitious promise,” repurposing 70 MHz of TV spectrum for wireless communications.

The pronouncement came after it became clear that the wireless carriers, in their forward auction bidding, would generate enough money ($18.3 billion so far) to cover the payments due broadcasters who agreed to sell their spectrum in the earlier reverse auction ($10.5 billion) and to reimburse the FCC for its administrative costs (reportedly more than $200 million) and to reimburse hundreds of broadcasters who will have to move to new channels in the post-auction repack of the TV band ($1.75 billion).

The forward auction also met the MHz/POP reserve price of $1.25.

The incentive auction is not final, Wheeler said. Bidding by the carriers will continue until there is no excess demand in any market and following the close of the forward auction, the commission will conduct an assignment phase where winning wireless bidders may bid for specific blocks

Wheeler cautioned that “there is still a long road ahead,” meaning the necessary repack. “This will be an extremely important task for my successor and the new commission,” he said.

Wheeler also noted that the FCC has also set aside 14 MHz of TV band for unlicensed use.

Wheeler has said that he will step down as chairman upon the inauguration of Donald Trump tomorrow. Wheeler was appointed chairman by President Obama. Trump is expected to designate fellow Republican Commissioner Ajit Pai to succeed Wheeler on an interim and possibly permanent basis.