WASHINGTON-The FCC’s Wireless Telecommunications Bureau last week said it may allow package bidding in the upcoming 700 MHz auction.
Package-or combination-bidding would allow participants to bid on a package of licenses all at once for an all-or-nothing bid rather than each license separately.
The 700 MHz auction appears to be the perfect vehicle for package bidding because the Federal Communications Commission has said it will allow carriers to aggregate the six regional licenses to create a nationwide license. Carriers wanting to create a nationwide license could bid for the package and not risk losing one market or paying more than it expects a market is worth to complete its nationwide footprint.
The FCC originally said there was insufficient time to prepare for and conduct a package bidding auction, but since the auction has been delayed twice-it is now scheduled for Sept. 6-the wireless bureau staff believes package bidding is possible.
BellSouth said the proposal was intriguing, but Howard Hauge, associate vice president for strategic management, said he could not comment further because he had not yet finished the public notice at RCR press time.
Likewise, other wireless carriers were not available to comment on the specifics, but some called for flexible auction procedures that allow carriers to bid on what they want-whether that be a single license or a nationwide block.
Use of package bidding also would require changes to some of the rules, such as upfront payments, initial maximum eligibility and bid activity.
The public notice does not deal with perhaps the trickiest issue of the 700 MHz band. There are about 100 broadcasters in the 60-69 band that must be protected before the transition to digital TV is completed. Current law allows the broadcasters to stay in the band until at least 2007 or 85 percent of the homes in their broadcasting area have digital receivers.
