FCC 700 MHz Auction Over; D-Block Unresolved
The FCC’s 700 MHz auction closed Tuesday afternoon after 38 bidding days and 261 rounds, resulting in total provisional winnings bids of almost $19.6 billion. Attention now turns to the future of the FCC’s public safety D-block and to the release of the names of the winners. FCC Chairman Kevin Martin told reporters he already has circulated a brief item that “de-links” the D-block from the rest of the auction, allowing the FCC to release the names of successful bidders “almost immediately.” He said staff is working on proposals for the D-block and he remains committed to a national public safety broadband network.
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“I plan to work closely with Congress and make sure that we have an opportunity to have a discussion with the Congress and with all the parties about what we should do with the D- block going forward,” Martin said.
Public Knowledge asked the FCC to investigate “the lack of activity” in the D-block. “Following reports that Frontline dropped out of the auction as a result of alleged conditions put on the block by the public safety community, we urge the Commission to look into the auction results,” the group said.
Martin said he has not investigated charges made by Public Knowledge and others but is aware of allegations made on a number of blogs. “The commission will be looking into it thoroughly and it will be part of the process of our discussion.”
Rep. Ed Markey, D-Mass., chairman of the House Telecom Subcommittee, who had vowed to hold a hearing as soon as the auction ended, said he plans to raise a number of questions. “I… am eager to ascertain the extent to which new entrants have succeeded in obtaining licenses through this auction,” Markey said. “Providing new opportunities for competitive entry into the wireless marketplace and offering consumers greater choice is a key objective of wireless policy and for this auction in particular. The upcoming hearing I plan to hold will give members a chance to review these auction results.”
On the D-block, Markey said, “I believe that any new auction… should be consistent with an overarching policy goal of advancing public safety objectives and ultimately achieving a state-of-the-art, broadband infrastructure for first responders.”
“The failure of the D block auction will test the FCC’s and Congress’ commitment to fixing the interoperable communications problem,” said Rep. Jane Harman, D-Calif. “Some are now pressing to drop the public-private partnership concept or let the winners of the C block get the spoils. Either option will be a cop-out, pun intended. Cops-on-the- beat our first preventers will lose out on the chance to converge voice, video, and email in real-time, over a secure, national network.”
Tom Peters of Wireless Strategy said the only thing that kept the auction alive in late rounds was a last-minute battle for the “two smallest licenses offered,” Vieques and Culebra, P.R. “Both are islands off the east coast of Puerto Rico, and since Round 254 they were the only licenses to receive bids,” he said.
Stifel Nicolaus said in a research note anti-collusion rules restricting communication among potential bidders could be lifted as early as April depending on how the commission handles a D-block reauction. “We continue to expect that Verizon Wireless and AT&T will be among the biggest acquirers of spectrum, with the details of what they and others have bought and paid to be closely watched,” the firm said.