WASHINGTON—Spectrum being reclaimed from broadcasters as part of the digital TV transition should be auctioned in smaller chunks than is currently contemplated, Sen. Conrad Burns told Federal Communications Commission Chairman Kevin Martin in a letter.
“I am convinced of the importance to rural America of smaller spectrum licensing areas,” said Burns. “I am writing to strongly encourage the Federal Communications Commission to initiate a new proceeding to reconsider the 700 MHz band plan, similar to its recent rebanding proceeding for the advanced wireless services scheduled to be auctioned in June.”
Earlier this year, President Bush signed a budget bill requiring TV broadcasters to surrender by Feb. 18, 2009, the six megahertz of spectrum they were given to facilitate the DTV transition. The law also requires the FCC to begin auctioning the reclaimed spectrum not set aside for public safety by Jan. 28, 2008. The Congressional Budget Office estimates the auction of those airwaves could generate $10 billion, while private estimates have reached as high as $30 billion.
When the spectrum was first allocated in the late 1990s, the FCC said it would auction the spectrum into six economic area groupings and allow combinatorial bidding to facilitate a nationwide license option. Spectrum in smaller chunks was already auctioned in rural areas.
“The large geographic areas, presently contained in the 700 MHz band plan, will effectively eliminate participation in the upcoming auctions by smaller, regional and rural wireless carriers. These carriers cannot afford—nor have practical use for—such large blocks of spectrum. Yet the participation of smaller and regional carriers is vital to competition and vital to consumers, particularly in low-density regions of the country like my home state of Montana,” said Burns. “It is imperative the FCC ensure that those carriers most willing and capable of providing wireless services to rural areas are positioned to do so.”
The Rural Telecommunications Group enthusiastically announced the Burns letter.
“RTG is pleased that Sen. Burns is championing the cause of smaller licensing areas for small and rural wireless carriers,” said Jessica Bridges, RTG’s chief executive officer. “The propagation characteristics of 700 MHz spectrum make it an excellent application for providing advanced services in rural areas. It is important that the FCC recognize the need to make 700 MHz spectrum available in smaller licensing areas in order to ensure that those carriers most ready and capable of providing service in rural areas utilizing this spectrum are positioned to do so.”
