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FCC Readies Incentive Auction Rules (9/10/12)
FCC Chairman Julius Genachowski circulated a detailed proposal for incentive auctions with the commissioners and scheduled a vote for the next commission meeting Sept. 28.

“Just two years after the concept of incentive auctions was first proposed in the FCC’s national broadband plan, and as a result of authority granted through legislation signed into law in February, the commission is poised to take an important step toward pioneering the world’s first incentive auctions and freeing up significant spectrum for mobile broadband,” Genachowski said in a statement.

Under the Middle Class Tax Relief and Job Creation Act of 2012, the FCC has the authority to pay TV broadcasters for underused broadcast spectrum and resell it at higher prices to wireless companies. A key provision authorizes the FCC to create guard bands in the broadcast spectrum auctioned to wireless carriers that can be used for unlicensed uses.

“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,” he said.

The timeline for the auctions would see the FCC release final rules by mid-2013, with auctions to occur in 2014. The Sept. 28 FCC open meeting will also address licensing and operating rules for satellite services, as well as a review of policies regarding mobile spectrum holdings.

“Spectrum auctions will allow for new investment in critical wireless network infrastructure, leading to hundreds of thousands of new jobs as well as improved mobile broadband service for American consumers,” said Telecommunications Industry Association (TIA) President Grant Seiffert. “The impact of additional spectrum availability on the U.S. economy, including on information communications technology (ICT) manufacturers, will be enormous and cannot be underestimated.”

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