FCC DELAYS 700 MHZ AUCTION FOR 5TH TIME AS DTV ISSUES LINGER
For 5th time, FCC Wireless Bureau postponed Sept. 12 auction of Ch. 60-69 spectrum in 700 MHz band Wed., but it said wouldn’t set new date until Commission acted on pending petitions for reconsideration. Auction delay covers 747-762 MHz and 777-792 MHz bands now occupied by analog broadcasters that don’t have to vacate band until 2006 or DTV penetration rate reaches 85%. Indefinite postponement marks first such delay under tenure of FCC Chmn. Powell. Way for delay was cleared in congressional budget resolution this year that addressed Bush Administration proposals for auction delays. Action came as industry and FCC officials increasingly acknowledged difficulty of clearing broadcasters from band by 2006.
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Among petitions pending is one submitted by coalition of 21 broadcasters, led by Paxson, that urged agency to delay auction to provide more time to work out private deals to vacate band now occupied by analog broadcasters. That group represented 42% of 99 analog stations now operating in that band and had wanted the new auction date to be set in Jan. 2002. MSTV also asked FCC to reconsider its refusal to rule out use of mandatory band-clearing efforts. (Commission has indicated that it could revisit issue in future if necessary.) Spectrum Exchange, which has proposed that agency could hold 3rd-party auction for clearing 700 MHz, sought clarification on several issues and also asked that auction be set for Jan. 2002. Petitions focus on order in which FCC adopted tools designed to ease clearing of 740-806 MHz for introduction of wireless services and to promote early transition of incumbent broadcasters from band. When those petitions are acted on, Wireless Bureau said it would release public notice with key dates for auction.
Original auction date had been May 10, 2000, later postponed to June 7, 2000, to allow more time for bidder preparation. Commission later pushed back that date to Sept. 6, which eventually slipped to March 6, 2001. Delay earlier this year until Sept. 12 had been advocated by Verizon Wireless, although carrier didn’t seek indefinite postponement that was unveiled Wed. In Jan., Verizon Wireless asked bureau to ensure that there would be “reasonable interval” after close of C- and F-block auction in Jan. before 700 MHz bidding started. Verizon Wireless spokesman said Wed. that “Commission should use this time to unencumber the spectrum before bringing it to market while identifying additional unencumbered spectrum for auction.”
Latest delay came as little surprise since Administration first raised possibility of moving 700 MHz auction earlier this year. White House issued budget blueprint that would postpone both upper and lower band auctions for 700 MHz (CD March 2 p1). Proposal indicated that if upper band auction were moved to 2004 from 2001 and Ch. 52-59 bidding to 2006 from 2002, budget offset of $2.6 billion for fiscal 2002 would be provided. In March, FCC approved proposal that started process for auctioning Ch. 52-59 under statutory deadline of Sept. 30, 2002, for depositing proceeds in U.S. Treasury (CD March 19 p1). Last year, several congressional leaders had signaled support for auction date slipping past statutory deadline of Sept. 30, 2000, for depositing auction proceeds.
CTIA Pres. Thomas Wheeler lauded decision: “While the industry faces a spectrum shortage, this delay reflects the facts on the ground. No one today can predict how or when this spectrum will be available or how it will fit into a national, long-term spectrum policy. Until other, related proceedings are concluded, this spectrum’s full potential value cannot be realized.” Delay will “give greater clarity” to spectrum allocation process, Wheeler said.