An auction of TV spectrum may not raise as much money for the U.S. government and the incumbent broadcast licensees as some incentive auction proponents estimate, said an economist’s paper released Thursday by the NAB. The title of the paper by Managing Director Jeffrey Eisenach of Navigant Economics is: “Revenues From a Possible Incentive Auction: Why the CTIA/CEA Estimate is Not Reliable.” Those two groups’ estimate of winning bids of at least $33 billion to $34 billion (CD Feb 16 p7) is “based on historic spectrum prices, which are subject to wide variation,” it said.
A recent audit that criticized the FCC for not following federal guidelines on tracking public spending (CD March 28 p11) “may come up” when Chairman Julius Genachowski testifies before a House appropriations subcommittee, said a spokesman for Rep. Jo Ann Emerson, R-Mo. The chairman of the subcommittee on Financial Services and General Government “is aware of the situation,” her spokesman said. Managers at both the FCC and the Universal Service Administrative Co. were recently ordered to “update and reinforce” rules for entering expenses into the federal accounting system, after outside auditors labeled the commission’s accounting system “a significant deficiency."
The Communication Workers of America union’s support for AT&T’s purchase of T-Mobile may prove pivotal to approval of the deal, industry lobbyists said at CTIA’s annual meeting, which ended Thursday. The union’s support offers cover for Democrats on Capitol Hill and in the administration to support the purchase, industry officials said. CWA praised the merger Sunday, right after it was announced, calling it “a victory for broadband proponents in both the U.S. and Germany.”
The spectrum inventory discussed by FCC Chairman Julius Genachowski Wednesday likely won’t satisfy calls on Capitol Hill for a more exhaustive inventory, industry and FCC officials said Thursday. An official in the chairman’s office clarified that Genachowski was referring to the extensive research the commission did as reflected in its LicenseView and Spectrum Dashboard initiatives when he discussed the FCC inventory Wednesday (CD March 17 p1). The official said different bills proposed in Congress differ on what would constitute an inventory. “The broadcasters are really pushing the need for an inventory before anything happens” and the inventory unveiled by Genachowski probably won’t fit that bill, a second FCC official said.
Peter Cramton, an expert on spectrum auctions, said Friday he is “optimistic” about the outlook for a voluntary incentive auction. The key to attracting wireless industry interest, he said, is forcing broadcasters to repack their spectrum to make it valuable in multiple markets, he said at a Media Access Project conference.
FCC Chief of Staff Eddie Lazarus said delivering the end product of the National Broadband Plan will take time. Speaking late Wednesday at an FCBA event on the first anniversary of the plan’s announcement, he focused on its success to date. FCC and industry panelists said compromise is needed to make the plan a success. Some said they're cautiously optimistic that the regulator and those it regulates will come together to make the plan work out well. Industry officials disagreed on ways to open up cable set-top boxes to retail competition to stimulate broadband adoption, and whether rules requiring what’s called AllVid are needed.
Nexstar Broadcasting Chairman Perry Sook expects no movement, and certainly nothing “deleterious,” to broadcasters happening in the context of incentive spectrum auctions in 2011, he told investors during the company’s Q4 earnings teleconference Thursday. “In this budget climate, there would be a faction of Congress wholly uninterested in sharing any auction proceeds with broadcasters.” Indications from leaders on the Commerce committees are that Congress wants to move ahead with a spectrum inventory before taking up auction proposals, he said.
The Supreme Court should consider Council Tree’s challenge to the AWS-1 and 700 MHz auction results, in part to clear up longstanding questions about how courts should interpret Section 706 of the Administrative Procedure Act, the designated entity (DE) said in a reply brief to the high court. The 3rd U.S. Court of Appeals in Philadelphia found problems with the FCC’s revised DE rules challenged by Council Tree, but left intact the auction results (CD Aug 25 p1).
The FCC Thursday unanimously approved three items aimed at improving communications and radio service on tribal lands. Commissioners also heard testimony from tribal leaders about the state of communications in Indian country. The meeting came as the White House held a follow up meeting on last year’s Tribal Nations Summit.
A divided Congress can help broadcasters avoid harmful legislation or regulation by slowing down consideration of issues detrimental to the industry, NAB President Gordon Smith said Thursday. “When it comes to broadcast issues, it is helpful to us, to have an extra check and balance between the chambers” so issues are “fully considered,” he said. That’s because decisions can have “lasting and damaging consequences,” Smith said in response to our question on C-SPAN.