Incentive Auction Plan Secures White Spaces Spectrum for Unlicensed Use

The FCC said in a notice Friday that the incentive auction NPRM and an NPRM on the spectrum holdings of carriers have both been slated for a vote at the commission’s Sept. 28 meeting. Not on the agenda: A text-to-911 order, which Public Safety Bureau Chief David Turetsky indicated last month might get a vote at the same meeting (CD Aug 22 p 10).

"To ensure ongoing innovation in mobile broadband, we must pursue several strategies vigorously: freeing up more spectrum for both licensed use and for unlicensed services like Wi-Fi; driving faster speeds, greater capacity, and ubiquitous mobile Internet coverage; and taking additional steps to ensure that our invisible infrastructure for mobile innovation can meet the needs of the 21st century,” Genachowski said (http://xrl.us/bnos34). “If adopted, the incentive auction proposal before the Commission will accelerate these strategies. Incentive auctions will help create jobs and strengthen U.S. competitiveness in a world where, increasingly, mobile leadership is required for leadership in the global innovation economy.”

The proposal will help broadcasters, Genachowski said. “In particular, many broadcasters will have a new and unique financial opportunity as a result of incentive auctions,” he said. The proposal also would “create the first uniform, national low-band unlicensed spectrum in any country,” he said.

The FCC likely will look to set aside 12-20 MHz of new, unlicensed spectrum in each U.S. market, Guggenheim analyst Paul Gallant said in a Friday research note. “Will the FCC get enough spectrum from broadcasters for a successful auction?” he asked. “By statute, broadcaster participation in the auction is purely voluntary. So the biggest uncertainty is whether enough broadcasters will decide to sell. We expect the FCC to design an auction that is as attractive as possible for wavering broadcasters to decide to sell spectrum. We also believe the FCC will have some flexibility on repacking that can help carve out enough spectrum. ... We are more optimistic than most that the FCC will indeed assemble the hoped-for 60-80 MHz of spectrum to auction to wireless operators.”

NAB and CTIA both welcomed the NPRM’s circulation. “NAB looks forward to working with the FCC and Congress to implement spectrum incentive auction legislation,” said a spokesman. “We have no quarrel with television stations choosing to voluntarily participate in the auction process. Our overriding objective remains the preservation of a vibrant future for free and local TV stations that serve tens of millions of Americans every day."

"We appreciate that the Commission will take a thoughtful, thorough and efficient approach in this proceeding so the unused and underutilized spectrum is reallocated to its highest and best use in an accelerated timeframe,” said CTIA President Steve Largent. “As CTIA has consistently stated, the economic impact of bringing additional spectrum to market will be tremendous. The FCC is taking a vital step that will foster continued growth in the U.S. while encouraging wireless innovation that will have a significant impact on many additional sectors of our economy, including education, healthcare, transportation and energy."

CEA continues to believe “the auctions will yield innumerable benefits for American consumers to access wireless broadband and ensure that devices such as smartphones and tablets can continue to connect to those networks,” said Julie Kearney, vice president. “The impact of additional spectrum availability on the U.S. economy ... will be enormous and cannot be underestimated,” said Telecommunications Industry Association President Grant Seiffert.