WASHINGTON-The Federal Communications Commission last week approved rules implementing relocation fund legislation approved by Congress last December, a move that paves the way to auction third-generation wireless licenses in June 2006.
The guidelines require the Department of Defense and other federal agencies to be reimbursed to move off frequencies subsequently transferred to the private sector and onto new government radio channels. The law calls for the auction to generate at least 110 percent of estimated relocation costs. If the auction does not meet that standard, it will be suspended and conducted again.
The National Telecommunications and Information Administration is expected to inform the FCC of estimated relocation costs this December.
The spectrum covered by relocation fund bill includes 216-220 MHz, 1432-1435 MHz, 1710-1755 MHz, and 2385 MHz-2390 MHz, as well as other spectrum bands that may be reallocated from federal to non-federal use. The 1710-1755 MHz band accounts for half of the spectrum the government plans to auction next summer.
The FCC said that because the law does not define “total cash proceeds” it determined the term should be defined as winning bids net of any applicable discounts, such as small business bidding credits.
In addition, the commission sought comment on a various modifications to further implement the relocation fund legislation and to update the agency’s spectrum auction rule. They include:
- Revising the reserve price rule to ensure that auctions of frequencies eligible under Commercial Spectrum Enhancement Act are not concluded without raising 110 percent of the estimated federal user relocation costs, as required by the statute;
- Options for preserving the availability of tribal land bidding credits in auctions of frequencies eligible subject to CSEA;
- Increasing the commission’s discretion regarding the amount of interim bid withdrawal and additional default payments;
- Establishing procedures in advance of each auction for apportioning bid amounts among licenses in a package;
- Changing the payment rules and procedures for broadcast construction permits won at auction to conform to those for non-broadcast licenses; and
- Facilitating the use of small business bidding consortia.
