FCC Closes In on $10B Minimum for Spectrum Auction
12 Rounds Complete in Federal Communications Commission's 700-Megahertz Auction
By John Eggerton -- Broadcasting & Cable, 1/29/2008 2:06:00 PM
After 12 rounds of bidding in the Federal Communications Commission's 700-megahertz auction, the FCC came within striking distance of the $10 billion minimum it needs to raise for the federal treasury and various programs.
The total bid on the five blocks of analog spectrum being reclaimed from TV broadcasters in the switch to digital was $8.659 billion.
There was one new bid, $3,784 billion, on the so-called C block of spectrum, which can be used for a national wireless network. That pushed the FCC's minimum bid for the next round to $4.294 billion, close to the $4.6 billion the commission said it must get.
To make sure it raised that $10 billion, the FCC put minimums on all five blocks and said it would reauction any that did not meet that minimum.
Failing to draw a new bid for the 10th round was the D block. That spectrum also can be used for a national network, but it must be shared with first-responders and turned over to them in times of emergency.
House Energy & Commerce Committee chairman Ed Markey (D-Mass.) Tuesday called the lack of a bidder discouraging and said during a Hill hearing that if the D block failed to reach its minimum bid -- $1.3 billion -- the committee would step in.
"The auction is obviously not over yet," he added, "and it is still possible for successful auction of the D-block license. However, if the auction ends and the D block has not met its reserve price, the subcommittee will actively review the parameters of that auction, including an assessment of its various conditions, the reserve price and the structure of the public-safety trust."
The committee will also work with the commission on a plan for reauctioning the spectrum. Proceeds from the auction are due to the Treasury by June 1.
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