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Policy: NAB claims FCC changed rules in crafting 600 MHz spectrum auction plans

NAB files petition against FCC

The Federal Communications Commission’s plans to auction off spectrum in the 600 MHz spectrum band that is currently held by television broadcasters received a blow as a trade organization representing those interests has filed a motion challenging the FCC’s plans.
In a petition for review filed with the U.S. Court of Appeals for the District of Columbia Circuit, the National Association of Broadcasters claims the FCC in its 600 MHz incentive auction rulemaking changed the “methodology used to predict local television coverage areas and population served, which could result in significant loss of viewership of broadcast TV stations after the FCC ‘repacks’ TV stations into a shrunken TV band.”
“Under this new methodology, many broadcast licensees, including NAB’s members, will lose coverage area and population served during the auction’s repacking and reassignment process, or be forced to participate in the auction (and relinquish broadcast spectrum rights),” the NAB lawsuit stated.
The NAB claim also states that the FCC did not take steps to “preserve licensees’ coverage areas in repacking and that the FCC erred in failing to ensure proper protections for broadcast translators, which are transmitters that help boost the coverage of broadcast TV programming to more rural and remote viewers.”
“NAB has engaged with the FCC throughout the incentive auction rulemaking to implement a successful auction that adheres to Congressional statute, is truly voluntary, and holds harmless the millions of viewers who are reliant on local TV,” noted NAB EVP Rick Kaplan, in a statement. “Unfortunately, the FCC order oversteps congressional mandate and is likely to cause significant harm to broadcast television. We are not looking to delay the auction. We merely hope that, if the FCC does not change course on its own, the Court will help put the auction back on the track Congress envisioned so that we can quickly achieve a balanced auction that benefits all stakeholders.”
Kaplan has previously served three years as FCC wireless bureau chief, before stepping down in mid-2012. Kaplan participated in a panel discussion on the 600 MHz incentive auction topic during the Competitive Carriers Association event earlier this year.

FCC Chairman Tom Wheeler has noted that the greatest challenge for the planned 600 MHz incentive auction process will be in convincing broadcasters to participate in the “reverse” auction process, noting at a recent speech that the opportunity was a once-in-a-lifetime chance to garner financial compensation for under-utilized airwaves.
“Seldom have I seen such a risk-free opportunity as that represented to broadcasters by the incentive auction, including the opportunity to continue their existing business on shared spectrum and take home a check for the spectrum they vacate,” Wheeler said in March at an event at the Brookings Institute in Washington, D.C.
The 600 MHz incentive auction is currently scheduled to begin by mid-2015.
—The FCC earlier this month adopted a Report and Order designed to “streamline” Part 17 rules governing the installation and placement of lighting equipment on tower structures. The FCC said the move would provide greater clarity and “reduce the regulatory burden on tower owners and licensees.”
The new rule looks to align FCC regulations with the Federal Aviation Administration, with the FCC stating the FAA was the expert agency on the matter of air safety. The new rules also take into account advancements in lighting technology and allows for communications between tower owners and tenants to be handled via electronic means.
“The reforms adopted by the commission … will remove barriers to wireless deployment, reduce unnecessary costs, and encourage providers to continue to deploy advanced systems that facilitate safety while preserving the safeguards to protect historic, environmental and local interests,” the agency noted.
—The FCC said it would begin investigating the special access market, collecting data from both special access providers and their customers to determine the level of competition in the market.
Special access lines are high-capacity connections used to transmit large amounts of data and are typically controlled by local telecom providers. Wireless carriers with minimal wireline operations have for years questioned the competitiveness of such arrangements, especially as some of the nation’s largest wireline providers also control the country’s largest wireless operations. The investigation was approved by the Office of Management and Budget.
“Special access service has become increasingly important in the digital economy, enabling businesses large and small to connect to their customers around the globe,” explained Wheeler. “Consistent with the terms of OMB’s approval, we will move forward with data collection and fact-based analysis that will help the commission better understand competition in this marketplace, and the impact on consumers as we pursue the commission’s statutory mandate to ensure special access services are provided at reasonable rates and on reasonable terms and conditions.”
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