Adelstein Still Worried About AWS Auction
Comr. Adelstein said Tues. he is “troubled” by several decisions the FCC made as it established rules for Aug.’s advanced wireless services auction (AWS), which could potentially “undercut” the auction. Adelstein called special attention to a decision requiring blind bidding, under which bidder identity likely won’t be known as the auction progresses, unless the auction meets a test for competitiveness.
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“I'm worried about the chilling effect this decision might have on participation by small or medium-sized carriers,” he said. “I've heard from companies and investors and from Wall Street that companies are dropping out.” Adelstein said he was also disappointed the FCC failed to close a “loophole” allowing large carriers to invest in DEs.
Adelstein said whether the 3rd Circuit will reverse the FCC in the pending DE court case is difficult to predict. The 3rd U.S. Appeals Court, Philadelphia, is slated to hear oral arguments today (Wed.) in Council Tree v. FCC, in which the DE seeks a stay of revised DE rules headed into the Aug. auction.
“I'm always concerned about delays and of course when you're in court you never know what the outcome will be,” he said. “I'm hopeful that the steps that we took will address those concerns, but I'm sorry that the whole process in general put us in a position where we're in any peril at all. I'm really hopeful that we're going to prevail… But I'm not going to guess what the court’s going to do.” Adelstein said he viewed the AWS auction as “a fantastic auction,” offering opportunities for investment by wireless carriers and new market entrants.
Adelstein said he hoped the FCC would soon address requests from rural carriers that spectrum which is purchased at auction but remains unused be reauctioned as part of a broader rural proceeding. “We can’t afford to let spectrum lie fallow,” he said. “There’s not enough there now… and there’s vast amounts of spectrum that no one is using.” He said he hoped the FCC would move quickly to address a petition for reconsideration by WCA asking for a change in the rules under which broadband radio service (BRS) channels 1 and 2 are to be cleared to make way for the AWS auction (CD June 27 p10).
Adelstein also said from his perspective nothing had changed to make him more likely to support a multicast must- carry order (CD June 20 p5). “It was brought up… There was no new public interest obligation offered by either the chairman or the broadcasting industry.”