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FCC set to vote on blind-bidding auction option

WASHINGTON—The Federal Communications Commission is set to vote Wednesday on new rules likely to dramatically curtail bidder information at the advanced wireless services auction scheduled to begin June 29.

The FCC, backed by the Justice Department, Federal Trade Commission and some academics, support anonymous bidding as a safeguard against collusion and other anti-competitive behavior at a high-stakes auction expected to generate $15 billion.

However, the FCC still could allow a tad more bidding transparency than contemplated in the agency’s original blind-bidding proposal. Lobbying has been strong for a compromise plan backed by a coalition that includes Cingular Wireless L.L.C., T-Mobile USA Inc., United States Cellular Corp., MetroPCS Communications Inc., Leap Wireless International Inc., Edge Wireless Licenses, Rural Telecommunications Group Inc., Madison Dearborn Partners L.L.C. and Columbia Capital L.L.C.

That lobbying campaign has been countered by another in which consumer groups, the National Hispanic Media Coalition, the Media Access Project and the New America Foundation have encouraged the FCC to go forward with blinding bidding at the AWS auction.

Verizon Wireless, the No. 2 mobile-phone operator, largely supports AWS blind bidding.

Another controversial matter, one which is not set to be addressed at tomorrow’s FCC meeting, is whether large wireless carriers will be barred from partnering with smaller applicants—called “designated entities”—that qualify for 25-percent bidding discounts.

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