BIDDERS FOR LOWER 700 MHZ BAND LINE UP AT FCC FOR AUCTION
FCC’s upcoming auction for lower 700 MHz spectrum has attracted broad array of prospective bidders, ranging from Paul Allen’s Vulcan Spectrum to broadcaster Univision to expected contingent of small, rural carriers. While broadcast players such as LIN TV applied to bid for licenses in that band, large national wireless carriers appear to have largely stayed away. Intel and Microsoft, which were subject of speculation in recent months about their possible participation, also didn’t file short forms. FCC late Fri. delayed upper 700 MHz auction until Jan. 14, 2003 (CD May 28 p3), retaining June 19 for lower band in move seen as blow for broadcasters such as Paxson Communications, which had urged Commission to keep date for both bands. Decision was seen as at least partial victory for CTIA, which had asked FCC to delay bidding indefinitely for both Ch. 60-69 and Ch. 52-59. Short-form applications that FCC released Fri. for lower band include 72 that it accepted and 81 that it deemed incomplete. Service rules for 48 MHz of spectrum in lower 700 MHz band were created to allow for new fixed and mobile wireless operations in band, as well as new broadcasting services.
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
Telefutura filed to compete for all cellular market areas (CMAs) and economic area groupings (EAGs) in lower band auction. All applicants for 758 licenses in band become qualified bidders after FCC receives upfront payments by May 30 and accepts their short forms for filing. Univision CEO Jerrold Perenchio is named in Telefutura’s filing as chmn., pres. and CEO, and Univision is described as owning 100% of Telefutura’s shares. Company said it had no joint bidding arrangements with other firms, but named Entravision as only party with which it might enter into partnerships or joint ventures for auction, including Telefutura’s “post-auction market structure.” Sinclair Bcst. Group also applied to compete for all CMA licenses. LIN TV in submitting short form for lower band, told FCC it “currently intends to use the licenses on which it seeks to bid for broadcast services.” It listed 15 broadcast stations in which it has ownership interest. Banks Bcstg., in which LIN has 50% preferred, nonvoting stock and fully diluted interest of 49.99%, also plans to bid for some licenses in Ch. 52-59 spectrum. Gregory Schmidt, vp-corp. development for LIN TV, is listed as vp-secy. for Banks Bcstg., which said it qualified for “very small business” bidder status. Pappas Telecasting said it would bid on 100 of 758 licenses, including markets of N.Y., L.A., Chicago, Washington, San Francisco, Houston, Miami.
Space Data Spectrum Holdings said it planned to bid on all CMA and EAG licenses in lower band. Space Data, which characterizes itself as “carrier’s carrier,” is deploying national network of balloon-borne wireless repeaters. It was high bidder last fall on more than 1.4 MHz of national narrowband PCS spectrum in FCC auction of 900 MHz band. It plans to use weather balloons combined with communications technology to provide broadband services to rural areas. Pegasus Development Corp. also filed to bid on all CMA and EAG licenses. Pegasus already owns guard band spectrum at 700 MHz. Guard band auction last year marked first time FCC had doled out spectrum to guardband managers, which subdivide spectrum for lease to 3rd parties for commercial and private wireless uses.
Among applications that FCC deemed incomplete was that of Vulcan Spectrum, listed as fully owned by Microsoft co- founder Paul Allen. Filers of incomplete applications have until May 31 to provide additional information to FCC. Vulcan, which has name similar to Allen’s venture capital firm Vulcan Ventures, lists RCN Corp. and Charter Communications as among related entities that have FCC licenses.
As expected, bidders also included multitude of traditional rural carriers, which have seen spectrum as ideally suited for nonurban and underserved areas. They included Citizens Telephone Cooperative, Commonwealth Telephone Enterprises, Eastern Oregon Telecom, First Cellular of Southern Illinois, Great Plains Communications, N.D. Network, Central Wyo. College, city of Ketchikan, Alaska.
As expected, PGTV filed to compete in lower band bidding. Total.TV, created by Phil Goldman, one of founders of WebTV, had asked FCC to delay auction, citing its interest in bidding for both upper and lower bands. It also had sought changes in rules for that spectrum to enable it to deploy services that would compete with digital cable and other offerings. PGTV told FCC it planned to bid on 330 licenses.
Legg Mason said in research note Tues. that unlike House, which already had passed legislation directing FCC to postpone auction of both bands, Senate had yet to act. In that chamber, Sen. Stevens (R-Alaska), ranking GOP member of Appropriations Committee, has introduced bill that would direct FCC to hold auctions for both bands on time and Sens. Ensign (R-Nev.) and Kerry (D-Mass.) are sponsoring bill that would provide indefinite delay of auctions. “The FCC appears to have split the difference between the large and small carriers,” Legg Mason said. “Lawmakers have been looking at some sort of compromise, but now that the FCC has announced a partial delay, it is unclear if Congress will pass legislation before June 19.”