FCC’s C- and F-block auction of 422 PCS licenses inched up to $16.8 billion Mon., as 36 bidders continued to vie for spectrum. Bidding appeared to have particularly slowed in top 15 markets, where Verizon Wireless has kept lock on top bids for 2 licenses in N.Y.C., bidding $2.1 billion and $2.04 billion. Many bids in 15 largest markets have remained unchanged for at least last 16 rounds. Verizon Wireless has 113 high bids totaling $8.8 billion, followed by AT&T Wireless-backed Alaska Native Wireless with 44 valued at $2.9 billion. Cingular Wireless-backed designated entity Salmon PCS had 78 high bids after 79th round of bidding, with $2.3 billion. Dobson Communications subsidiary DCC PCS had $536 million, Cook Inlet/VS GSM $509.2 million, Leap Wireless International $482 million.
Paxson Communications urged broadcasters Fri. to oppose Verizon Communications request that FCC postpone upcoming 700 MHz auction at least 2 months, but ideally until Sept. 6. Auction, which had been set for last Sept. 6, now is scheduled for March 6, with short-form applications due Feb. 2. FCC Wireless Bureau is seeking comments on request until Jan. 24, after Verizon Wireless wrote to Bureau Chief Thomas Sugrue, arguing that if auction were held as scheduled, participants wouldn’t have enough time to assess their interest in acquiring additional spectrum, in part because C-block PCS auction that started Dec. 12 was continuing (CD Jan 19 p9). Paxson urged broadcasters, particularly incumbents in Ch. 60-69 spectrum, to oppose request for delay, noting that bidding already had been delayed 3 times. “We cannot support a 4th delay of the 700 MHz auction,” Chmn. Lowell Paxson said. “This most recent action by Verizon will put the continuation of the information revolution in the U.S. in grave jeopardy.”
As FCC Chmn. Kennard departs today, he leaves legacy as extremely decent man who might have been more effective if he were more of a politician, industry officials told us. “He is a prince of a man, honorable, honest,” said one telecom lobbyist. “But I don’t believe he’s a politician at heart and it’s hard for that kind of person to survive the political cauldron in Washington.” No one we talked with disputed Kennard’s honorable nature. Even his ideological opposite, Comr. Furchtgott-Roth, said Thurs. that he viewed Kennard’s departure to make way for Republican as “somewhat bittersweet” because Kennard was “one of the finest, most decent individuals I've ever met.”
FCC Wireless Bureau is seeking comments on request by Verizon Wireless to postpone 700 MHz auction beyond scheduled date of March 6. Company wrote to FCC Wireless Bureau Chief Thomas Sugrue Jan. 18, asking that auction be postponed to ensure that there would be “reasonable interval” after close of current C- and F- block auction, bureau said in notice released Thurs. Verizon Wireless contended in letter that if auction were held on schedule, participants wouldn’t have enough time to “accurately assess” their interest in acquiring additional spectrum. FCC has Feb. 2 deadline for participants to file short-form applications to participate in bidding. Comments are due Jan. 24. Most recent postponement of auction came last year, when FCC agreed to move it from Sept. 6 at request of several carriers. Verizon Wireless is seeking 2-month delay as “prudent,” although it argues that longer delay is required. Verizon cited issues that remained with incumbent analog broadcasters in Ch. 60-69 spectrum that’s at stake in auction. Carrier said further notice of proposed rulemaking on possible mechanisms for clearing band in advance of DTV transition date of 2006 still was pending. “Consequently, no new band-clearing mechanisms have been established and there is no greater certainty today about the prospects for clearing the 700 MHz band than there was last summer,” Verizon wrote.
NTIA, in notice of proposed rulemaking (NPRM) Wed., outlined changes for how private sector would carry out mandates for reimbursing govt. agencies that relocate from spectrum after frequency reallocations are made. NTIA Dir. Gregory Rohde outlined details of NPRM at Commerce Dept. meeting with industry on upcoming 3rd-generation wireless decisions. Govt. officials stressed proposed framework for reimbursing federal entities that were relocated to other spectrum berths could play “critical” role in upcoming 3G decisions. FCC and NTIA are examining possibility of 2 bands for additional spectrum for 3G and other advanced services: 1755-1850 MHz now used by military systems and 2500- 2690 MHz used by Multichannel Multipoint Distribution Service and Instructional TV Fixed Service licensees. At meeting, some industry representatives also raised concerns that more information was needed from govt. on issues such as relocation cost estimates for private sector to complete its own analyses of different 3G spectrum scenarios.
FCC’s C- and F-block auction hit $16.07 billion Tues., with Verizon Wireless now accounting for more than half of bids with $8.38 billion. Aggressive bidding for N.Y.C. spectrum flirted with $2 billion mark, with Verizon submitting separate bids of $1.8 billion for 2 licenses there and Cingular Wireless-backed Salmon PCS $1.2 billion for 3rd. Salmon PCS, in which Cingular has 85%, noncontrolling stake, bid $3.1 billion, followed by AT&T Wireless-backed Alaska Native Wireless with $1.3 billion, DCC PCS with $960.8 million and VoiceStream with $960.8 million. Bidding for 422 PCS licenses began Dec. 12 and completed 55th round Tues. Bidding for N.Y.C. licenses so far has outstripped that for next largest wireless market of L.A., where Verizon and DCC PCS have bid closer to $515 million.
Canadian Minister of Industry Brian Tobin planned auction of additional PCS spectrum Jan. 15. Qualified bidders reportedly include arm of Sprint PCS Canada Holdings, Bell Mobility subsidiary of BCE, Microcell, Rogers Wireless, Telus, Thunder Bay Telephone.
Bidding in FCC’s C- and F-block auction slowed Fri., but reached $13.07 billion, with Verizon Wireless maintaining wide lead of $5.52 billion in net high bids. Other top bidders include AT&T Wireless-backed Alaska Native Wireless with $2.75 billion and Cingular Wireless-backed Salmon PCS with $1.94 billion. AT&T Wireless doesn’t appear in list of top 15 bidders, and Cingular isn’t competing as standalone entity. In all, top 15 bidders now include 13 designated entities, most of which have links to larger carriers. While Verizon is by far highest bidder, $2.26 billion of its total is in bids for 2 N.Y.C. licenses at $1.17 billion and $1.1 billion. Alaska Native Wireless bid $758 million for 3rd license in that market. After 31 rounds, Verizon had highest bids on licenses in Washington, Boston, L.A., Chicago, San Francisco, Philadelphia. Alaska Native Wireless had high bids for spectrum in L.A. and Atlanta and Salmon PCS in Dallas license. Dobson Communications DCC PCS edged into upper echelon of bidders, placing 4th with $957.68 million, followed by VoiceStream with $540.12 million, affiliated Cook Inlet with $348.69 million, Leap Wireless with $293.47 million. Last week marked exit of several large carriers, including Sprint PCS and Alltel. Of 87 bidders who qualified at Dec. 12 start of auction, 49 remained as of late Fri. SVC BidCo, designated entity in which Sprint has 60% noncontrolling investment, still was in auction. Other bidders who have left auction include Nextel, Sprint affiliate Alamosa PCS, Nextel-affiliated designated entity Connectbid, Cincinnati Bell Wireless.
FCC unanimously adopted notice of proposed rulemaking (NPRM) that eyes frequencies, including those now occupied by military users, for 3rd-generation and other advanced wireless services. Commission also denied petition by Satellite Industry Assn. (SIA) seeking additional spectrum for mobile satellite services (MSS), move that Multichannel Multipoint Distribution Service (MMDS) licensees opposed (CD Aug 30 p1). FCC adopted notice Dec. 29, meeting White House’s year-end deadline for approving item, although text hadn’t been released by our deadline.
Commerce Secy.-nominee Donald Evans was cautious on Internet and telecom issues in his appearance before Senate Commerce Committee Thurs., assuring panel members that he would give attention to their pet issues but making no specific commitments. Evans has been busy wandering halls of Senate since his nomination, having visited virtually all Committee members before hearing. He appeared to have little to no opposition, and several lawmakers said they expected to see him confirmed quickly following President Bush’s inauguration. Among topics raised by Senators: (1) NTIA’s Technology Opportunity Program (TOP), lauded by several members for providing technology funds to underserved regions. “I know how important the issue is,” said Evans of digital divide: “I will give it my attention.” He said he would try to convince business leaders to increase private efforts. (2) Wireless spectrum, which several senators said was major topic in their private meetings with Evans. Sen. Rockefeller (D-W.Va.) said country needed “spectrum management strategy… We go from crisis to crisis.” Evans acknowledged that he had just learned about 3rd-generation wireless technology “in the last 48 hours or so,” but said it might help solve digital divide. He agreed that govt. needed long-term strategy for managing and auctioning spectrum. (3) Bureau of Export Administration’s Critical Infrastructure Assurance Office, which Rockefeller said was “underfunded, understaffed.” (4) Internet taxation quandary, which Evans said was “going to be on all of our minds as we approach” Oct. end of current e-commerce taxation moratorium. However, he said, Bush Administration was “sensitive to what it might mean to the tax base of… the cities and the counties and the states. And so those factors need to be considered.” Evans said “important thing is to get all the right constituents to the table to talk” and “this is not something that we should wait until October or September or whenever to talk about it.” (5) Privacy. Asked by Sen. Wyden (D-Ore.) what his “general approach” would be on topic, Evans said only that he would work with ranking Democrat Hollings (S.C.) and Chmn. McCain (R-Ariz.) and others interested in issue. But he said “we shouldn’t continue to procrastinate.”