In long-awaited move to free up more spectrum for advanced wireless services, FCC approved notice of proposed rulemaking (NPRM) Fri. that begins process of tapping Ch. 52-59 in 700 MHz band for auction. Lower channels in that band must be auctioned before Sept. 30, 2002, one year after Sept. 12 auction for Ch. 60- 69. Commission approved item, with Comr. Tristani dissenting in part on voluntary band-clearing proposals to help relocate incumbent broadcasters ahead of 2006 digital TV deadline. FCC didn’t address budget blueprint by President Bush that would delay several wireless auctions, including proposed move of Ch. 52-59 auction until 2006.
Impediments to DTV transition may be “too great to overcome” without additional govt. intervention, Rep. Dingell (D-Mich.) said at House Telecom Subcommittee hearing Thurs. He said “under normal circumstances” it would be best to allow “unfettered marketplace” to determine outcome of transition, but private sector resolution of must-carry, copyright protection and technical standards issues were impeded by govt.-mandated 2006 transition deadline and return of analog spectrum, he said.
White House officials acted to quell criticism on Hill about merits of Administration’s spectrum auction plan and failure to notify Hill staffers that proposal was coming (CD March 2 p1). Administration talked with office of House Commerce Committee Chmn. Tauzin (R-La.) and appeared to soothe situation somewhat, Tauzin spokesman Ken Johnson said. “The idea of spectrum fees [for broadcasters keeping analog spectrum] is probably DOA,” he said, but Tauzin staffers were finding on rest of package that “there appears to be some merit to parts of it… It certainly opens the door to at least some discussion.” Johnson said several Committee staffers were preparing to brief Tauzin fully on issue today (Mon.), at which point he could be ready to take position, “consulting with [Telecom] Subcommittee Chmn. Upton” [R-Mich.]. “The Administration has indeed been in contact with our office,” said spokesman for Senate Communications Subcommittee Chmn. Burns (R-Mont.), who has ambitious spectrum plans of his own. “We're confident that everything is going to be worked out,” he said: “There’s a lot of communication going on right now.” Spokesman said Burns wasn’t ruling out plan to delay spectrum auctions. “We're willing to work with the Administration and see what can be done,” he said, adding that “the devil will be in the details.” It wasn’t clear last week that broadcasters would be able to take unified position. “We're still studying the proposal,” NAB spokesman said. Source said some broadcasters with lower audiences (Paxson was mentioned) might “want to get out early” from analog spectrum and “get their money from the wireless carriers.” On other hand, we're told, for stations whose primary asset is large audience, such as CBS affiliates, it may be attractive to delay loss of analog spectrum as long as possible.
Dept. of Defense (DoD) and wireless industry remain apart on some technical issues regarding how bands occupied by military users could be altered for 3rd-generation uses. Govt. and industry officials, at meeting hosted by NTIA Thurs., emphasized that analyses of bands that could be used for additional 3G spectrum were continuing, with final FCC and NTIA reports due late next month. “We still have a lot of work to do,” Motorola’s Steve Sharkey said. “We have at least an idea of where the paths to move forward are.” Meanwhile, Congressional Budget Office (CBO) raised budget projections for proceeds from FCC spectrum auctions through 2007, with rosier outlook attributed to interest in 3G.