WASHINGTON—The Federal Communications Commission plans to begin auctioning spectrum occupied today by the federal government in the summer of 2006, according to notification sent last week to the National Telecommunications & Information Administration.
President George W. Bush signed the Commercial Spectrum Enhancement Act on Dec. 23. CSEA created a spectrum relocation trust fund so that auction proceeds can be used to move government—mostly military users—off spectrum now allocated for commercial purposes.
“The spectrum relocation fund mechanism that Congress has established will result in successful auctions, smooth relocation of important government operations and, most important, competitive high quality communications services being provided to American consumers. For all of us who believe in the future of wireless broadband, it is truly a banner day,” said FCC Chairman Michael Powell.
To help determine the necessary minimum bid, NTIA has one year to notify the FCC of the estimated relocation costs. Auction bids must equal at least 110 percent of the estimated costs.
The FCC was required to notify NTIA of the auction 18 months before it planned to hold it.
The commission said it will auction the 1700 MHz band (1710-1755 MHz) as early as June 2006 and auction three megahertz in the 1400 MHz band (1432-1435 MHz) in July or August 2006. NTIA has already said there are no relocation costs associated with the 1400 MHz band.
In the notification letter, Powell also suggested the FCC and NTIA form a joint working group to “help facilitate efficient auctions and the timely and effective relocation of government incumbents.”
Later this month the FCC plans to re-auction spectrum that was returned by bankrupt NextWave Telecom Inc.
