Qualified bidders for Aug. 27 auction of licenses in lower 700 MH...

FCC said late Wed. Earlier this summer, Congress delayed June 19 date for upper and lower 700 MHz auctions. Bidding for smaller C- and B-block licenses in lower band was delayed until at least Aug. 19, with FCC ultimately setting Aug. 27 date for that remaining auction. New auction date for rest of spectrum hasn’t been set. Law stipulated that only bidders that could participate in remaining lower 700 MHz band auction this summer were those already qualified to take part in original lower band bidding. Based on that law, FCC Wireless Bureau allowed previously qualified bidders to leave auction altogether and receive return of down payments. Bidders choosing to stay could select additional licenses and supplement upfront payments. Based on original block of licenses that had been part of lower 700 MHz auction, including larger A-, B- and E- block licenses, Council Tree Wireless had made original upfront payment of $40 million, matched by Spectrum Holdings with same amount. Council Tree’s upfront payment, according to FCC public notice released Wed., has been revised to $6.5 million. Spectrum Holdings now has upfront payment totaling $10,000. Based on revised list of qualified bidders, highest upfront payment still is that of Council Tree. Of 125 remaining qualified bidders who chose to stay in lower band auction, only 12 made upfront payments exceeding $1 million, including Paul Allen-backed Vulcan Spectrum, $1.5 million, and Omega Communications, $3.3 million, compared with $18.9 million in original lower 700 MHz band application. Among authorized bidders for Omega is Mario Gabelli, chmn. of Gabelli Asset Management, whose media holdings have included stake in Black Entertainment TV. Spectrum Holdings, whose upfront payments went from $40 million to $10,000, had petitioned FCC for reconsideration of decision to allow previously qualified bidders to select licenses to pursue other than ones originally identified in their applications. Spectrum Holdings had filed petition for reconsideration, which recently was rejected by Wireless Bureau, at around time of July 3 deadline for seeking return of upfront payments.