FCC set to auction 16 700 MHz licenses in 2011

The Federal Communications Commission is planning to auction 16 licenses for 700 MHz spectrum next July 19. The licenses previously were offered in Auction 73, but were either not sold or the winning bidder defaulted on the payments.
Based on proposed minimum bid prices, the agency expects the auction to raise a minimum of $1.42 million. 2008’s Auction 73 raised more than $19 billion, netting AT&T Mobility and Verizon Wireless nationwide 700 MHz channels, which the nation’s two largest carriers are now building out. Indeed, VZW turned on its 700 MHz spectrum earlier this month.
Two of the licenses are 12-megahertz (2 by 6 megahertz) in the A block, (698 MHz-704 MHz, 728 MHz-734 MHz) and 14 are in the B block (704 MHz-710 MHz, 734 MHz-740 MHz). The FCC filed a Notice of Proposed Rulemaking around the auction. Comments are due Jan. 12 and reply comments are due Jan. 27.
The A block license for Wheeling, W.V./Ohio carries a minimum bid of $118,000. The minimum proposed bid for its A-block counterpart in Lubbock, Texas, is $135,000.
A B-block license for Yancey, N.C., has a proposed minimum bid of $188,000.
Three of the B-block licenses up for grabs are in North Dakota’s three largest cities: Fargo/Moorhead, Minn., Grand Forks and Bismarck. Minimum bid prices range from $101,000 for Bismarck to $141,000 for Fargo/Moorhead.
Six of the B-block licenses are for markets in Puerto Rico, ranging in proposed minimum bid prices of $15,000 to $59,000.
In South Carolina, two B-block licensese are available. One in Clarendon for $220,000, while its counterpart in Oconee, has a suggested minimum bid price of $24,000. Hudsputh, Texas B-block is suggested to open at $24,000 as well. A license in Lee, Va., carries a suggested minimum bid of $143,000.
The FCC’s Wireless Telecommunications Bureau is proposing to calculate minimum bid amounts based on the greater of a)the minimum opening bid amount for the same license in Auction 73 or b)10% of the highest bid amount received for the license in Auction 73.
The licenses covering Lubbock, Texas and Wheeling, W.Va.; Bismarck, Fargo and Grand Forks, N.D.; Lee, Va.; Yancey, N.C.; and Clarendon, S.C. never received winning bids in the 2008 auction.