Round 19: Spectrum Auction Total Pushes Toward $20 Billion

New price for a spectrum block in New York is 341 million
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With round 19 completed in the forward portion of the FCC's incentive spectrum auction, $19,314,547,000 is the new total and $18.64 billion the new net figure after discounts and bidding credits are taken into account.

That is up from a total $18,578,544,000 and net $17.890 billion in round 18.

That net figure of $17.890 billion is the one to watch. That figure must ultimately equal or surpass $88,379,558,704 to cover broadcasters payments and moving expenses and auction expenses if the auction is to close after stage 1, in which 126 MHz is being auctioned in 416 geographic license parcels to 62 qualified bidders, including Comcast, AT&T, Dish and T-Mobile.

the FCC raises the price for the spectrum blocks up for bid by 5% each round, but is upping that to 10% per round on Monday (Aug. 29).

Currently, the price of a spectrum block in New York (there are 10 available) is $341,148,000 with two more rounds at 5% raises before the FCC starts raising the price by 10%.

If the FCC does not raise enough to cover the $88-plus billion figure, it will move to stage 2 of the auction, where it will lower the spectrum clearing target from 126 MHz to 114 MHz, continue the reverse auction at that lower figure--winnowing out some of the broadcasters that would have been paid at the higher spectrum-clearing total--then try to cover that new figure in a new forward auction.

The FCC has nine possible spectrum clearing targets down to a low of 42.

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