WASHINGTON-A congressional subcommittee and the wireless industry put pressure on the Federal Communications Commission to delay the upcoming 700 MHz auction, while private wireless wants the agency to go ahead with the guard-band auction.
In addition, Verizon Wireless asked to delay the Nov. 29 re-auction of PCS licenses, most of which were reclaimed from bankrupt NextWave Telecom Inc.
“While the industry needs spectrum now, it needs to be usable spectrum … I think both auctions under the current course and speed are flawed … Perhaps this should be delayed somewhat until the legal entitlements are resolved,” said Dennis Strigl, president and chief executive officer of Verizon Wireless.
The FCC already has twice delayed the 700 MHz auction of 30 megahertz of spectrum because of concerns about band clearing, but members of the House telecommunications subcommittee and wireless representatives said the delays were not long enough. The auction is set for Sept. 6.
The wireless industry, however, asked that the auction not be held until June.
Congress last year directed the FCC to auction 36 megahertz of spectrum-known as 60-69 because of its place on the TV dial. The FCC plans to hold two auctions for the spectrum: one for commercial use and one for guard bands to protect public-safety operations from interference.
Current law says proceeds from the auction must be deposited in the U.S. Treasury before Sept. 30. The FCC received permission to miss that deadline, but it is unclear if the agency can delay it nine months. Indeed, FCC Commissioner Harold Furchtgott-Roth told reporters the agency did not have authority to delay the auction.
The wireless industry argues the commission violates another section of the Communications Act-which says that bidders must be given time to prepare for an auction-by holding the auction in September.
The industry is particularly worried about a July 3 change in auction procedures that allows participants to use package bidding.
Package bidding allows parties to bid on individual licenses or to place all-or-nothing bids on up to 12 packages of licenses of their own design.
“These procedures are very complex and have never been used before in a commission spectrum auction … certain aspects of the FCC’s package-bidding system are still in development and have not been made public,” said a letter signed by representatives of AT&T Wireless Services, Ericsson Inc., the Cellular Telecommunications Industry Association, Nextel Communications Inc., Qwest Wireless L.L.C., VoiceStream Wireless Corp., Verizon Wireless and SBC Communications Inc.
Industry also claims the FCC has not done enough to promote clearing the spectrum.
Broadcasters do not have to leave the band as part of their transition to digital TV until 2007 and 85 percent of the homes in their territory have digital receivers.
The FCC also released a further notice of proposed rule making about band-clearing procedures, but the comment cycle on that proceeding does not close until after the start of the auction.
“The bidders will be required to enter the auction without a complete set of rules and procedures, resulting in continuing uncertainty as to a most fundamental consideration in valuing the spectrum, i.e. when it will be available for commercial use,” said the industry letter.
ITA urges guard-band auction to be held as scheduled
All this talk about delaying the auction had the private-wireless industry up in arms as it prepares for the guard-band auction.
Late Friday, the Industrial Telecommunications Association sent a letter to urge the FCC to hold the guard-band auction Sept. 6
“There is absolutely no need for the auctions to be coupled,” said ITA President Mark E. Crosby.
In addition to the letter, ITA is planning to lobby Capitol Hill to have an impact on any letter that might be sent to the FCC on behalf of the commercial wireless industry to delay the commercial auction. ITA’s strategy is to urge Congress to implore the agency to hold the guard-band auction as scheduled.
ITA believes the band-clearing issues associated with the commercial band do not exist in the guard band because private wireless can engineer around existing TV stations. As stations clear, private wireless gains access to additional spectrum, said J. Sharpe Smith, ITA director of industry and public affairs.
Also, public safety would benefit if the guard-band auction remained on schedule because once successful bidders in the guard-band auction got manufacturers to produce equipment, it would also be available for public-safety use.
Rep. Billy Tauzin (R-La.), chairman of the House telecom subcommittee, is one member of Congress expected to write the agency about the 700 MHz auction timing.
