FCC OKs 3-2 C-Band Auction Rules
The FCC approved rules for a C-band auction starting Dec. 8 as circulated, with the general approval of all five commissioners (see 2007280063). Jessica Rosenworcel partially dissented because of concerns about the approach on the C band approved 3-2 in February (see 2002280044). Geoffrey Starks also partially dissented, saying his earlier concerns remain. Chairman Ajit Pai announced the agency plans the next mid-band auction, of 2.5 GHz spectrum, in the first half of next year (see 2008060017).
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Commissioner Mike O’Rielly said in a written statement the rules changed. It was at the request of industry, to allow potential bidders to aggregate 20 MHz licenses “to create the larger channel blocks needed to truly meet 5G’s full promise of faster speeds, greater capacity, and lower latency,” he said. “Changes were made, at industry’s request, to modify the assignment round process to ensure the contiguity of licenses once the entire wireless portion of the band is cleared,” he said. O’Rielly urged action on the 3.1-3.55 GHz band. The changes cited by commissioners were made as part of the draft notice after the FCC sought comment, officials said.
Rosenworcel said the FCC went wrong in its decisions on how satellite operators will be paid for giving up spectrum. For the first time, the value of spectrum in an FCC auction “will not be determined by an efficient and effective market,” she said: “Instead, bids in this auction will be distorted by a nearly $10 billion payment to incumbent satellite operators that was negotiated outside the light of day.” The FCC “should have worked with Congress on a more transparent path,” she said. Congress could have directed auction proceeds to be spent on next-generation 911 or rural broadband, she said. The FCC “missed a big opportunity,” she said.
The notice improved since the rules were first proposed, Rosenworcel said. “We are adjusting the assignment phase of the auction to better ensure that auction winners receive contiguous spectrum blocks, which will be important to providing robust 5G service,” she said.
“Nearly six months later, and we still have tremendous uncertainty surrounding this bad deal,” Starks said: “The D.C. Circuit is now considering two sets of challenges to the February order. Intelsat has declared bankruptcy, and the former C-Band Alliance has turned into a circular firing squad.”
Commissioner Brendan Carr said the auction is a key part of the FCC’s initiatives to provide mid-band spectrum for 5G. “While none of us can say for sure what particular need will arise in the future, we can be sure that this mid-band capacity will help us meet it,” he said.
Approval of the notice “will help ensure a timely auction in December -- an auction that will yield a variety of benefits for the U.S. Government, next-gen technologies and apps, and all those who will benefit from them,” said Will Johnson, Verizon senior vice president-federal regulatory and legal affairs. “We look forward to a successful auction in December and to continuing to work with the FCC to bring more mid-band spectrum to market,” said CTIA President Meredith Baker.