The federal government’s ongoing slumber could have a real impact on the wireless industry connected to plans for a trio of spectrum auctions that were set to begin early next year.
A number of attendees at last week’s PCIA Wireless Infrastructure Show expressed concern that the federal shutdown’s impact on the Federal Communications Commission will likely postpone plans to begin auctioning off much needed wireless spectrum. As part of the shutdown, the FCC has had to curtail operations to a bare minimum, or as the FCC notes on its now disabled website “limited to performing duties that are immediately necessary for the safety of life or the protection of property.”
No mention of moving forward with auction planning in that.
Prior to the shutdown, the FCC had announced plans to auction off 10 megahertz of spectrum in the 1.9 GHz band, also known as the H-Block, beginning Jan. 14. The FCC was also looking to auction off up to 50 megahertz of spectrum in the 1.7/2.1 GHz spectrum bands – known as the AWS-3 band – at some point in 2014, as well as conduct the controversial 600 MHz incentive auction before the end of next year. With the H-Block and AWS-3 auctions seen as closest to being ready, many expect the incentive auction to be delayed until at least early 2015.
However, with the current shutdown, planning for these spectrum auctions has been put on hold, which could translate into a delay in conducting the bidding. Further tampering the issue is that the FCC remains without permanent leadership as the confirmation process for incoming FCC Chairman Tom Wheeler and Republican Commissioner Micheal O’Rielly have also been placed on hold.
Another potential victim to the government shutdown could be AT&T, which is in the process of trying to acquire Leap Wireless. That deal still needs to garner approval from both the FCC and the Department of Justice. AT&T had originally stated it expected that deal to be approved by year end.
FirstNet not impacted … yet
One wireless initiative not impacted by the shutdown is the FirstNet program, which is tasked with building out a nationwide, interoperable public safety network. Speaking at the recent PCIA event FirstNet GM Bill D’Agostino noted the program was operating with a current budget approved before the shutdown and to this point was not impacted by the deadlock.
FirstNet could see some delay from the current shutdown if the pending spectrum auctions are postponed for a significant amount of time as the public safety initiative is to receive nearly all of its planned $7 billion build-out budget from proceeds generated by the auctions.
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