The FCC is “on track” to hold the US incentive auction in early 2016, chairman Tom Wheeler said.
Speaking at the National Association of Broadcasters (NAB) show in Las Vegas yesterday, Wheeler said that the regulator will begin accepting…
The FCC is “on track” to hold the US incentive auction in early 2016, chairman Tom Wheeler said.
Speaking at the National Association of Broadcasters (NAB) show in Las Vegas yesterday, Wheeler said that the regulator will begin accepting applications for the airwave tender, which aims “to repurpose broadcast spectrum for wireless use and repack the 600 MHz band on a nationwide basis”, in the autumn.
AT&T committed to bid US$9bn in the auction. T-Mobile and Dish also said that they will participate.
Broadcasters that have publicly expressed their interest in participating include Fox, ION, Tribune, and Univision, Wheeler said.
Over the last few months, the FCC embarked on a number of roadshows in a bid to persuade broadcasters to give up their spectrum in order to help enable telcos to cater for the ever-rising demand for 4G services.
“I am pleased that, as part of our outreach, we’ve already talked with broadcasters representing nearly half of the stations eligible for the auction,” the chairman pointed out.
However, he added: “A possible bump in the road is a certain lawsuit challenging our rules. But we are hopeful that the court will dispose of that suit in a way that will allow both of us to move forward.”
Last August, the NAB launched a lawsuit against the regulator, arguing that the auction rules would diminish broadcasters’ coverage areas and could result in lower viewership. The case is still pending.
Wheeler reiterated that participation in the auction is completely voluntary and “risk free”, since the broadcasters can decide whether or not to participate once they see the opening bid price. They may also drop out in any subsequent round.
Furthermore, participating and dropping out does not prevent a station from being able to claim reimbursement for repacking or relocation.
Broadcasters will also be allowed to select channel sharing partners both before and after the auction, and enter into fixed term channel sharing agreements.
The US Congress allocated US$1.75bn to reimburse stations for the costs they incur moving to new channels.
In December, the regulator sought public comment on detailed proposals on the conduct of the auction, establishment of reverse auction prices, and final rules for repacking broadcasters that remain on the air, among other issues.
Based on the inputs it received, the FCC will adopt a procedures public notice in the next few months, with a view to making broadcaster participation “more accommodating”.
Wheeler also expressed support for setting rules and policies that permit foreign ownership of broadcast properties above the current 25% cap, as proposed by commissioner Michael O’Rielly in a blog post in March.
“There are important details that will need to be considered, including how to make appropriate allowance for any national security issues that might arise. But, overall, I am optimistic that this is an opportunity that we will grasp successfully,” Wheeler said.
The country’ latest airwave tender, the AWS-3 auction, kicked off in November and closed on 29 January, raising a record US$41.3bn in net bids.
