FCC Chairman Tom Wheeler ‘supremely confident’ 600 MHz auction will begin on March 29
LAS VEGAS – Federal Communications Commission Chairman Tom Wheeler is very confident that the scheduled 600 MHz incentive auction process will indeed begin as planned on March 29, and that he expects a strong turnout from television broadcasters in handing over spectrum as well as from companies looking to bid top dollar to gain control of that spectrum.
During a keynote session at this week’s CTIA Super Mobility 2015 event, Wheeler resoundingly stated he was “supremely confident” the complicated and much delayed 600 MHz incentive auction would begin as currently scheduled on March 29.
Leading up to the auction’s kick-off, Wheeler listed a number of approaching deadlines surrounding upcoming holidays, including releasing updated schedule plans and payment schedules around Columbus Day; broadcasters indicating their interest to participate in the auction around Thanksgiving; and those interested in bidding on the newly available spectrum making their intentions known around New Year’s Day.
“This is in a glide path and on schedule to begin at the end of March,” Wheeler stated, adding he expects to be talking about the results of the auction at next year’s CTIA event.
The FCC in early August released final auction rules as well as the official March 29 start date. The FCC had originally looked to schedule the 600 MHz auction this year, but was forced to push off the proceedings following a lawsuit filed by the National Association of Broadcasters and general complexity of the process. The NAB lawsuit was eventually thrown out, but the auction’s reverse- and forward-auction components remain a challenge.
Despite the potential bad blood from some broadcasters, Wheeler noted recent conversations with executives at some broadcasters indicated robust support for the proceedings.
“A lot have built their future business models on the plan,” Wheeler said, explaining new technology has changed the broadcast business and that consumers will not even realize they are receiving content in a new way.
“Broadcasters will continue to provide content and have cash in their pocket for new innovation,” Wheeler said.
Wheeler earlier this year spoke at the annual NAB event where he tempted broadcasters with simplified auction rules designed to entice their participation. Wheeler said broadcasters that agree to participate in the reverse-auction process are likely set for a significant financial gain, citing the more than $41 billion in net proceeds generated from the recent AWS-3 spectrum auction. He added the auction is a “once-in-a-lifetime” opportunity for television broadcasters to reap part of that financial windfall, and that participation is on a completely voluntary basis all the way up until final bids for the forward-auction part of the proceedings are concluded.
As for those looking to acquire the newly freed up spectrum resources, Wheeler said he expects parties to come from both traditional telecom operators as well as new entrants. Spectrum auctions have at times seen nontraditional entities pick up licenses, though commercial networks remain the domain of established telecom operators.
Whoever picks up the spectrum assets, Wheeler said the licenses would provide a robust platform for the mobile industry as it moves toward “5G” technology. He said the FCC is looking to push rulemaking ahead of the upcoming World Radiocommunication Conference 2015 event scheduled for November in Geneva. That event is expected to begin laying the groundwork for specifications and standards set to shape 5G technology.
“We are going to maintain our leadership in 5G,” Wheeler stated. “I think 600 MHz is a great home for 5G, and there is nothing in our rules to stop that from happening.”
Wheeler also said the FCC would focus on spectrum above 24 GHz in its approach to laying out its view on where new spectrum resources for 5G services should come from. The FCC chairman earlier this year noted in a blog post that the government agency is looking to roll out a Notice of Proposed Rulemaking later this year focused on the use of “higher-frequency bands for mobile” services.
The bands to be proposed by the U.S. for eventual inclusion at the WRC event in 2019 include the 27.5 GHz-29.5 GHz bands; 37 GHz-40.5 GHz bands; 47.2 GHz-50.2 GHz bands; 50.4 GHz-52.6 GHz bands; and the 59.3 GHz-71 GHz bands.
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