LAST-MINUTE SENATE VOTE WOULD DELAY MOST OF 700 MHZ AUCTIONS
On eve of start of FCC auction for Ch. 52-59 spectrum, Senate late Tues. approved and House later also endorsed compromise legislation that would delay bulk of 700 MHz auctions indefinitely. Exception would be C- and D-block licenses in lower 700 MHz band, which have been scheduled with rest of lower band for today’s auction. Bill would delay auction of those licenses until at least Aug. 19 and bill would eliminate legislative deadlines for rest of lower and upper 700 MHz band. Senate approved bill by unanimous consent, clearing substantial hurdles such as threats of holds by rural senators and dwindling timeline to act before auction starts today (Wed.) for lower 700 MHz band. What 11th hour Senate passage of compromise bill means for FCC plans to hold bidding as scheduled wasn’t clear at our deadline, particularly with House passage and presidential signature still needed. Several industry sources had said that if Congress took last-min. action to derail all or part of lower 700 MHz band, Commission could delay start of bidding as late as Wed. morning, although what agency planned wasn’t clear at our deadline.
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As of late Tues. afternoon, before Senate vote, Commission was moving ahead with plans for auction of lower 700 MHz band licenses. “Nothing has changed. The auction is scheduled to begin tomorrow,” FCC spokeswoman said Tues. One potential hurdle to start of today’s bidding was cleared when U.S. Appeals Court, D.C., declined to grant partial stay of licenses in auction for which 2 state agencies that operate public TV stations had sought exemption. D.C. Circuit Tues. afternoon declined limited stay of auction for licenses at issue in emergency petition filed by Central Wyo. College and Idaho State Board of Education. But court ruled that FCC still must respond to agencies’ petition for writ of mandamus. Agencies had argued that they were eligible to be exempt from auction of lower band licenses they sought in Wyo. and Idaho because they were seeking spectrum for noncommercial educational broadcasting (CD June 18 p9).
Late last month, FCC delayed upper band auction of Ch. 60-69 spectrum from to Jan. 14 from June 19, but kept latter date for lower band (CD May 28 p1). Decision reflected agency’s reluctance to delay lower band bidding without congressional move to postpone Sept. 30, 2002, statutory deadline for depositing proceeds in U.S. Treasury. Statutory deadline of Sept. 30, 2000, for Ch. 60-69 spectrum auction already has been passed. Several industry sources said that in face of late Senate action to delay June 19 date for lower band, that might be enough for Commission to follow suit without presidential signature. Bush Administration already had asked FCC to consider delay, with Commerce Secy. Donald Evans urging FCC Chmn. Powell in April to delay bidding for both bands. Without petition for delay, FCC on its own motion could delay auction for lower band if it believed it was receiving clear message from Congress, sources said. That hasn’t been case in recent months, with House passing legislation that would delay both auctions indefinitely. Recent compromise in works in Senate would bridge legislation by Sen. Stevens (R-Alaska) that would require both auctions to be held on time and competing bill by Sens. Ensign (R- Nev.) and Kerry (D-Mass.) that would delay both bands.
“With the Senate legislation expected to quickly pass in the House and be signed into law by the President, this action significantly advances sound spectrum management policies that will benefit our nation’s first responders, wireless consumers and American taxpayers,” CTIA Pres. Tom Wheeler said.
Besides allowing C- and D-block licenses of lower 700 MHz to go forward later this summer, legislation approved by Senate would eliminate legislative deadlines for auctioning remaining parts of 700 MHz bands, as well as 1.7 GHz and 2.1 GHz bands that have been under consideration for additional 3G spectrum.
There was much speculation Tues. about how many and which Senators had holds on spectrum auction delay legislation. Capitol Hill sources said one Republican senator placed hold on bill. Industry sources said FCC probably would act to delay auction if Senate passed legislative delay, even if bill hadn’t yet been signed by President. Ken Johnson, spokesman for House Commerce Chmn. Tauzin (R-La.), said House still would have to act after Senate, but said it was likely that could be easily achieved through unanimous consent. “It should send a clear message to the FCC to halt the auction,” Johnson said. Administration has said it wants auction delayed.
Northpoint Technology said it sought amendment that would require licensing parity between satellite and terrestrial services, but asked supporters to pull back so unanimous consent could be achieved. “We did this out of respect for the House and Senate authors of the bill and the rural interests that worked so hard on it,” Northpoint said. Amendment would have extended to terrestrial operators current prohibition on competitive bidding now given to satellite operations who share spectrum, Northpoint said, and wouldn’t require FCC to grant license to Northpoint.