FCC states plans to release additional rules for reverse, forward auction components this fall
The Federal Communications Commission continues to work toward the planned March 29, 2016, start date for its highly anticipated 600 MHz incentive auction, today laying out more details on the steps still to be tackled.
The government agency said it plans to release the Applications Procedures Public Notice early this fall that will describe the “nuts and bolts” of the application process and post-auction procedures “including the opening dates for the application filing windows, the filing deadline, the schedule for mock auctions and the information required on the auction application forms.”
No later than 60 days before the deadline for broadcasters to submit applications, the FCC said it will release the opening bid price for the reverse auction procedure established in the APPN. This bid price will use the formula adopted in the Bidding Procedures Public Notice.
As for the forward auction procedure, which is the process that will see mobile operators bid on the spectrum being offered up by television broadcasters, the FCC said this fall it plans to release the final table of bidding units in each partial economic area so applicants can plan for making their upfront payments. The PEA-sized licenses will provide for the country to be divided into 428 markets in which licenses will be available.
Once this information is released, the FCC said it plans to begin taking applications for both the reverse and forward auction proceedings, with the window closing before the end of the year. Broadcasters that filed applications to participate will have until the auction commences to commit to its preferred initial bid option that if met will require the broadcaster to relinquish its spectrum holdings. If the price is not met, the broadcaster can opt out of giving up its spectrum.
For those bidding in the forward auction process, upfront payments will be required after the band plan and clearing targets are set. That first round of forward auction activity will begin at least 15 business days after the FCC releases the names of qualified bidders.
The FCC earlier this month released bidding rules that include a cap of 30 megahertz of spectrum set aside for participants with sparse holdings below 1 GHz, and put a cap of 20 megahertz on acquisitions by a single entity covering partial economic areas with fewer than 500,000 people.
To help prepare for what is expected to be the most complicated spectrum auction procedure ever attempted, the FCC said it plans to conduct multiple “mock auctions” for both the reverse and forward components in order to give those participating a chance to become familiar with the process. The FCC is also set to conduct “workshops, webinars and an interactive on-line tutorial” in order to reduce confusion.
Industry trade association CTIA filed comments on the latest update, expressing its desire that the FCC conduct “multiple mock auctions” leading up to the actual start in order to “to give all participants the experience and understanding needed to make informed bidding decisions.” CTIA also asked that the FCC manage deadlines so its carrier members are not overly encumbered by “quiet periods” that could impact ongoing business discussions.
Bored? Why not follow me on Twitter
