WASHINGTON-After raising $21.6 million in net high bids in 173 rounds, the Federal Communications Commission last Thursday ended the 220 MHz auction.
In other 220 MHz news, more than 150 license holders for 220 MHz service were told earlier this month the FCC was canceling their license renewals because of an administrative error. The FCC now is calling that incident a miscommunication and said the renewal applications in question have been returned to pending status while the FCC’s Wireless Telecommunications Bureau determines their eligibility.
220 MHz auction closes
Intek was the big winner in the FCC’s 17th auction. Intek bid $6.3 million for two nationwide licenses. Intek also won regional licenses, bidding between $389,000 for the Northeast region and $959,000 for the Southeast region.
The FCC especially was pleased that small businesses won many of the licenses. Companies claiming small business status won 67 percent of the regional economic area group licenses and 54 percent of the economic area licenses. SOPHIA Licensee Inc., another small business, won the third and final nationwide license.
Bidders won 693 licenses but 215 licenses were not sold. These licenses will be re-auctioned during the second quarter of 1999.
Renewal snafu
The 220 MHz renewal application licenses originally were renewed Sept. 2, but licensees received a letter dated Oct. 2 that said, “Effective immediately, the commercial wireless division of the Wireless Telecommunications Bureau is setting aside its action granting the renewal application for [your license] … The renewal application was granted due to administrative error, and therefore, the renewal authorization has been canceled … This in no way foreshadows our ultimate decision on the application.”
The October date is significant because the wireless bureau has only 30 days from when a renewal is granted to set it aside. These letters were dated right under the wire. Indeed, other renewals were not set aside because they were renewed before the Sept. 2 date. “We’re very concerned the FCC, which has already granted many 220 (MHz) applications, would turn around and seek to hold up-for some reason-extremely routine renewals,” said Alan S. Tilles, outside counsel for the Personal Communications Industry Association.
The September renewal error was a direct result of a miscommunication between the FCC’s Gettysburg processing center and FCC headquarters here, FCC officials said.
Questions have been raised as to whether the real goal of the set-asides is to retrieve commercial mobile radio services licenses that were awarded by methods other than auction so the licenses can be auctioned and more money raised by the FCC.
This is not the case, said the FCC. If the licenses are not renewed, those winning geographic licenses at the just concluded 220 MHz auction would not be required to protect them. “In light of the auction, the issue is not that we retrieve these licenses. The auction winner could retrieve the license. It is not a question of us getting the license back,” said Wireless Bureau Chief Daniel Phythyon.
Some also are concerned there is a shift in the renewal expectancy policy for 220 MHz Phase I licensees. Indeed, in numerous interviews with FCC officials, the renewal expectancy policy could not be fully explained.
“There might not be a renewal policy. This doesn’t make sense since 220 (MHz) is CMRS and there is a renewal expectancy for CMRS,” said Alan Shark, president of the American Mobile Telecommunications Association.
There is specific criteria an applicant must show to gain renewal expectancy. These include a showing of substantial service, an area description including geography and population served, and dollar figures to describe the investment in the systems, said Lloyd Coward, an attorney for various local 220 MHz licensees that received set-aside letters. Coward said he submitted the information required for his clients.
