The FCC wants input on rule changes needed to implement the Comme...

The FCC wants input on rule changes needed to implement the Commercial Spectrum Enhancement Act (CSEA), signed in Dec. by President Bush as part of a wider HR- 5419 legislation creating a spectrum relocation trust fund. The fund guarantees use of eligible frequency auction revenue to compensate federal agencies for moving off the 216-220 MHz, 1432-1435 MHz, 1710-1755 MHz, 2385- 2390 MHz bands. The Act requires all auctions of eligible frequencies to raise at least 110% of total estimated federal users’ relocation costs, but doesn’t define “total cash proceeds.” The Commission in a declaratory ruling Thurs. defined “total cash proceeds,” for purposes of CSEA, as “winning bids net of any applicable discounts, such as small business bidding credits.” The FCC asked for comments on possible modifications to implement CSEA and update its spectrum rules, including: (1) Revising the reserve price rule to ensure auctions of frequencies eligible under SCEA aren’t concluded without raising 110% of the estimated federal user relocation costs. (2) Options for preserving availability of tribal land bidding credits in eligible frequencies auctions. (3) Increasing FCC discretion with respect to amounts of interim bid withdrawal and additional default payments. (4) Setting procedures in advance of each auction for apportioning bid amounts among licenses in a package. (5) Changing payment rules and procedures for broadcast construction permits won at auction to conform to those for non-broadcast licenses. (6) Facilitating use of small business consortia. The action moves the Commission closer to auctioning spectrum for advanced wireless services (AWS), the agency said. The 1710-1755 MHz band accounts for half the spectrum the Commission plans to auction as early as June 2006 for AWS, including 3G services. Wireless Bureau interim chief Catherine Seidel told reporters the FCC is “on target for the June 2006 [AWS] auction date but there are a number of things that need to happen between now and then, [especially] acting on reconsideration petitions” pending before the Commission. The FCC is expected to act on petitions for reconsideration of the AWS I (1710-1755 MHz and 2110-2155 MHz) rules in the next couple of months, sources said. NTIA is expected to notify the FCC in Dec.