FCC Waives Quiet Period for Broadcasters
The FCC waived the incentive auction prohibited communications rules that prevented broadcasters from discussing their bids and bidding strategies, said an Incentive Auction Task Force and Media and Wireless bureaus public notice. Some had been expecting such a relaxation after it was signaled in an early action under new FCC Chairman Ajit Pai. Broadcast lawyers welcomed the move, in comments to us after Monday's PN.
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“Broadcasters have asked for this waiver in order to make it easier for television stations to engage in planning and coordination for the post-auction transition,” said Pai. “The underlying purpose of the rules creating the prohibition against communicating reverse auction bids or bidding strategies would not be served by continued application of the prohibition and this partial waiver will further the public interest in facilitating the post-auction transition,” said the PN. The move is intended to allow broadcasters to begin planning for the repacking and take advantage of the channel assignment information that will be soon sent out in confidential letters, the PN said. Along with allowing broadcasters to discuss their auction status with engineers and other broadcasters, the waiver allows broadcasters to negotiate and even submit potential transactions to the FCC, though there is still a bar to consummating such deals, the PN said.
The agency case by case may consider waivers to allow takeovers to be consummated, the notice said: The Wireless Bureau "will address whether granting any specific requests for future waivers of the bar may be appropriate or if granting any specific request may create undue risks to the integrity of the auction process." Broadcasters and analysts have predicted a rush of transactions once the quiet period ends (see 1701200050).
The item “appears” to offer broadcasters the relief from the anticollusion rules they have been asking the FCC to grant, industry lawyer Jack Goodman told us. “Kudos to the FCC Staff on being responsive to broadcaster comments and waiving the Quiet Period regarding the reverse auction,” emailed broadcaster auction consultant Preston Padden. “This will be a huge help as broadcasters plan for the transition."