FCC Wireless Bureau Auctions & Spectrum Access Div. promotions: Bill Huber to assoc. division chief; Erik Salovaara to deputy assoc. division chief; Brian Carter to special counsel; Rita Cookmeyer to financial policy analyst… Appointed to task force studying Nielsen TV ratings: Mario Baeza of Baeza Group investment firm; actor George Takei; Daniel Villanueva of Bastion Capital; Karen Watson of EchoStar… New at TV Guide TV Group (all ex-ABC Family): Margot Davis, vp-mktg. & promotions; Melissa Van Meter, vp-mktg. & advertising; Todd McNulty, vp-on air promotions… Rainbow Ad Sales promotes Moira Prophet to dir.-ad sales… Jeremy Darroch, ex-Dixons, named BSkyB CFO effective Aug. 16… Mark Rigolle, ex-Belgacom, appointed SES Global CFO, replacing Juergen Schulte, who retires.
Wireless Spectrum Auctions
The FCC manages and licenses the electromagnetic spectrum used by wireless, broadcast, satellite and other telecommunications services for government and commercial users. This activity includes organizing specific telecommunications modes to only use specific frequencies and maintaining the licensing systems for each frequency such that communications services and devices using different bands receive as little interference as possible.
What are spectrum auctions?
The FCC will periodically hold auctions of unused or newly available spectrum frequencies, in which potential licensees can bid to acquire the rights to use a specific frequency for a specific purpose. As an example, over the last few years the U.S. government has conducted periodic auctions of different GHz bands to support the growth of 5G services.
CTIA must decide this week how much to fight a Wireless Bureau decision to allow only designated entities (DEs) to bid for most licenses when Auction 58 takes place next year. Putting together an association position is proving more difficult than expected, and the group is under pressure to draft a more muted response, we have learned.
Comr. Copps Wed. sharply criticized a letter from Verizon Gen. Counsel William Barr suggesting that FCC Comrs. would violate criminal laws if they voted to give Nextel 10 MHz at 1.9 GHz as part of the 800 MHz rebanding proposal. Copps also said he had not seen any interim UNE rules, which he predicted will not be simple to put together.
CTIA Pres. Steve Largent expects major carriers to look to Capitol Hill for support in changing the rules for Auction 58, scheduled for Jan., which set aside a majority of licenses that will be auctioned for purchase by smaller carriers considered to be designated entities (DEs). Largent said members of Congress are “protective” of the revenue from spectrum auctions, but it appears unlikely the FCC will reverse course. “It’s just a dumb provision,” Largent said. “There are numerous ways that are apparent to everybody that people work around the DE [requirements]. What’s the point?” Asked about the FCC changing the rules, FCC Comr. Abernathy noted Thurs. that the Wireless Bureau has supported providing some licenses to just DEs. “I know it’s the rules the bureau wants to use,” she said. “Some of the large players wish there were fewer designated entities, but as of right now I'm unaware of any proceeding that would change that.”
House Budget Committee Chmn. Nussle (R-Ia.) introduced legislation Fri. that would “reaffirm the intent of Congress to use the auction process and competitive bidding for the grant of commercial spectrum,” his office said in a release. The bill would require the FCC to auction its spectrum allocations, including spectrum being sought by Nextel. However, Nussle’s spokesman said the bill isn’t out of concern for the Nextel situation. “The concern is that at the end of the day, the taxpayers should receive the benefit of this public resource,” he said.
CTIA and other wireless carriers launched a massive, last minute offensive Thurs. aimed at turning around the FCC’s expected decision to give Nextel 10 MHz of spectrum at 1.9 GHz. CTIA said in a filing that NextWave auction reserve prices confirm that giving Nextel 1.9 GHz as part of a rebanding scheme would constitute a “massive giveaway.” Meanwhile, an alternate public safety group held a press conference to denounce the plan.
In his most comprehensive remarks so far on broadband and telecom issues, President Bush told a packed auditorium of public officials at the Commerce Dept. he views broadband rollout, including broadband over powerlines (BPL), more efficient use of the spectrum and wireless broadband, as key building blocks of the U.S. economy.
Major wireless carriers were considering their options Tues. and are expected to ask the FCC to reconsider in one form or another its public notice late Fri. setting up the rules for Auction 58 next year (CD June 22 p3). The carriers hope ultimately to tweak the rules so far fewer of the licenses will be available just to designated entities (DEs). DEs and major wireless carriers, meanwhile, are likely to go to Congress seeking support.
The FCC is expected to release a public notice as early as today (Fri.) establishing an auction starting in 6 months of 2,400 MHz of spectrum divided among multiple locations, including spectrum returned by NextWave. Major wireless carriers made a last-min. push to open all licenses to all carriers and do away with designated entities (DE) restrictions. But those efforts largely fell flat in recent days, sources said.
Reaction was generally positive to the FCC’s adoption Thurs. of new band plans for the wireless, educational and satellite industries. “The hard work by the Commission and relevant stakeholders will lead to huge benefits for the public in receiving advanced wireless services under flexible use conditions, whether the user seeks mobile, portable or fixed services as optimal,” said Wireless Communications Assn. (WCA) Pres. Andrew Kreig.