The FCC Wireless Bureau turned down a request by the United Telec...

delay the auction of 896-901 and 935-940 MHz licenses until after the Commission resolved issues in the 800 MHz proceeding. In that proceeding, the FCC is examining possible ways to reduce public safety interference at 800 MHz, including relocation of some public safety and private wireless incumbents. UTC and Southern Communications asked for the delay last month, arguing it would be in line with past FCC decisions. The FCC ruled Fri. that Sec. 309(j) of the Communications Act required that after auction bidding rules had been issued, the agency must provide enough time for prospective bidders to develop business plans, assess market conditions and evaluate the availability of equipment for relevant services. “We do not believe that the statutory requirement to provide prospective bidders with time to develop a business plan and evaluate the availability of equipment requires the Commission to postpone an auction until every external factor that might influence a bidder’s business plan is resolved with absolute certainty,” the FCC said. It said the public interest would be served by holding the auction as planned, in part because Sec. 309(j) directed it to consider other goals, including rapid deployment of new technologies. The Commission dismissed arguments that it would be difficult for potential bidders to develop business plans or form strategies for participating in the 900 MHz auction because of uncertainty over how the FCC would decide in the 800 MHz proceeding. A “consensus plan” before the FCC, backed by Nextel and others, would realign spectrum at 700, 800 and 900 MHz. The agency rejected assertions that the Nextel proposal would reallocate the 900 MHz band for noncommercial use. “Even were the consensus parties proposal adopted and some incumbent 800 MHz licensees relocated to the 900 MHz band, we do not believe that this possibility is sufficient reason to delay the scheduled auction,” the agency said. It also said the proposal didn’t depend on the availability of the 900 MHz specialized mobile radio licenses that were included in the Feb. auction, known as Auction No. 55. “We are not persuaded that the prospect of more intensive use of the 900 MHz band is a sound basis for postponing Auction No. 55,” it said. It also turned down suggestions that the auction be postponed because of the possibility that Nextel’s 900 MHz SMR licenses could be cancelled under applicable construction requirements. UTC and Southern Communications had argued that cancellation of Nextel’s licenses would increase the number available for auction in that band. The FCC called such reasoning “highly speculative.”