AGREEMENT REACHED TO DELAY PART OF LOWER 700-MHz AUCTION
Agreement to delay spectrum auction was reached on Hill, according to draft of bill Communications Daily obtained. Spokesman for Senate Commerce Committee said amendment to delay auctions would be added as amendment to House Commerce Chmn. Tauzin (R-La.) bill that would delay auction (HR-4560). Bill says C- and D-blocks would go forward as early as Aug. 19, 2 months later than June 19 date now scheduled. Senate Commerce spokesman said Sens. Hollings (D-S.C.), Stevens (R- Alaska), Kerry (D-Mass.) and Ensign (R-Nev.) agreed to amendment. House Commerce Committee spokesman Ken Johnson said agreement was in place and Tauzin was “hopeful and optimistic” that issue could be resolved legislatively in next few days. Johnson said he couldn’t supply details of agreement. Spokeswoman for Stevens said he wanted agreement to include specific dates for FCC to hold auction, but didn’t detail what time frame was acceptable.
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C- and D-block auctions would have to be conducted before Sept. 19. Carri Bennet, representing Rural Telecom Group, said those delays would be used to “buy more time” to achieve further delay. Draft compromise would direct that within one month after legislation passed, up-front payments for A-, B- and E-block auctions that were being delayed would be paid back to prospective bidders. Agreement also appeared to direct FCC to conduct rescheduled upper 700 MHz band auction and rest of lower band before agency’s auction authority expires, which currently is in 2007.
Movement toward last-min. legislative agreement came as 128 bidders were lined up to participate in lower 700 MHz auction that begins at FCC Wed. Carriers include significant block of rural telcos as well as Paul Allen-backed Vulcan Ventures and Omega Communications, which has backing from investment fund manager Mario Gabelli. After effort for legislative compromise failed on Hill before upfront payment deadline of May 28, FCC late last month decided to keep June 19 date for lower band and delayed lower 700 MHz auction until Jan. 14. Both bands had been scheduled for June 19 and delay of upper band was seen as loss for companies such as Paxson, which had urged FCC to keep timelines for both auctions. Compromise on which key lawmakers appeared to have reached agreement as of Fri. would delay C-block and D-block licenses in lower 700 MHz band. C-block consists of 734 licenses divided along Metropolitan Statistical Areas and Rural Service Areas at 710-716 MHz and 740-746 MHz. D-block consists of spectrum at 716-722 MHz. Remaining A- and B- block spectrum consists of 12 MHz of paired spectrum and E- block is 6 MHz of unpaired spectrum.
Fast-track congressional action would mark victory for CTIA, which had asked FCC to indefinitely postpone date for both upper and lower 700 MHz bands. FCC Wireless Bureau turned down that request and full Commission action marked compromise of sorts, in part by being responsive to concerns of rural carriers that had been particularly interested in lower 700 MHz licenses. When FCC made that decision, House had passed legislation by Tauzin and others that would delay auction indefinitely for both bands. Commission has been especially reluctant to change date for lower band without congressional action to change statutory deadline of Sept. 30 for depositing proceeds from that auction in U.S. Treasury. Commission already has missed Sept. 30, 2000, deadline for depositing funds from upper band auction, which has been delayed 6 times. In Senate, picture has been less clear, with legislation by Ensign and Kerry mirroring that passed on House side. Stevens, ranking Republican on Senate Appropriations Committee, has introduced rival legislation that would order FCC to keep June 19 date. Neither of those bills passed Senate, setting off scramble in last few weeks to craft compromise between Senate bills and Tauzin proposal that could be enacted before start of lower band auction.
Meanwhile, another twist developed late Fri. when 2 state agencies that operate public TV stations filed emergency petition at U.S. Court of Appeals, D.C. Central Wyo. College (CWC) and Idaho State Board of Education (SBE) told FCC they were eligible to be exempt from auction for lower 700 MHz band because they were seeking spectrum for noncommercial educational broadcasting. Emergency motion for partial stay was filed at D.C. Circuit after FCC didn’t move to grant public broadcasters’ June 12 request for similar action. CWC and SBE are seeking stay of auction for cellular markets they are seeking in Idaho and Wyo. They argued to D.C. Circuit that stay request was based on “their status as noncommercial educational applicants” allowing them to be exempt from competitive bidding in light of National Public Radio v. FCC decision of D.C. Circuit last year.
CTIA Pres. Tom Wheeler said CTIA would continue to lobby for delay of 700 MHz spectrum auction, including after auction, should it occur. “Congress writes the rules,” he said. Wheeler stressed that national spectrum management plan was needed. He said congressional leadership was needed to push plan, suggesting House Telecom Subcommittee Chmn. Upton (R-Mich.) or Senate Commerce Committee Chmn. Hollings (D-S.C.) as 2 who could lead spectrum plan effort. Wheeler said agencies studying plan, including FCC and NTIA, had too narrow focus. “We have to get out of the silos,” he said. “We need to get the big picture and quit the ad hockery.”