By Gautham Nagesh
WASHINGTON--The Federal Communications Commission said Friday it
has delayed a planned reverse auction of TV airwaves until 2015, a
decision that reflects the commission's intent on getting the
complex proceeding right.
FCC Chairman Tom Wheeler published a blog post Friday announcing
the delay, which was widely expected, saying he hopes the auction
will take place in mid-2015. The FCC had set a goal of completing
the auction in 2014.
At the auction, TV stations will consider bids to relinquish
their airwaves and either go out of business or be placed in
another channel. The spectrum will then be put up for licensing by
wireless carriers, who covet the low-frequency airwaves because
they can cover greater distances and travel more easily through
physical barriers.
Observers have called the spectrum auction the most complex
proceeding ever undertaken by the FCC. Mr. Wheeler said he has
spent more time reviewing the incentive auction than any other
issue since taking office, and determined it would be best to wait
in order to ensure success. He hopes to avoid any technical
difficulties with the software that will be used for the
auction.
"I am also confident that the policy challenges are only part of
the picture; we must also get the enabling technology right," he
said.
Because AT&T Inc. and Verizon Wireless control most of the
spectrum under one gigahertz, the auction is considered
particularly crucial for T-Mobile US Inc. and Sprint Corp. because
it represents a rare opportunity to obtain low-band spectrum.
Wireless companies are ready for a chance to obtain new
spectrum, but at least one interested company said the delay was
reasonable. "While AT&T is eager to see new spectrum
allocations brought to market as soon as practical, we appreciate
the enormity of the task the commission faces," said Joan Marsh,
vice president of regulatory affairs at AT&T.
Public interest groups and the smaller wireless firms have
lobbied the FCC to set auction rules that would prevent AT&T
and Verizon Wireless from scooping up all the low-band spectrum at
the auction. Mr. Wheeler has hinted that he is open to such
limitations, but has yet to tip his hand one way or another.
There is also considerable pressure on the FCC to maximize
revenue from the auction. The proceeds will be used to compensate
broadcasters and fund a $7 billion public safety communications
network known as FirstNet, and some worry that limiting the ability
of AT&T and Verizon to bid could depress the prices paid for
the airwaves.
It remains unclear whether enough broadcasters will sign up for
the auction, which is voluntary. Stations affiliated with the Big
Four networks aren't expected to participate, leaving smaller
stations aimed at religious, ethnic and local audiences as the most
likely participants. Whether those stations will yield enough
spectrum for the auction to be deemed a success is an open
question.
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