The FCC said it cleared the maximum of 126 megahertz of 600 MHz spectrum from broadcasters, with plans for the clock phase process to begin May 31
Story updated to clarify that the clock phase of the reverse auction is set to begin on May 31
Following years of contentious negotiations, television broadcasters look set to take the money in the Federal Communications Commission’s attempt to free up 600 MHz spectrum licenses as part of its incentive auction process.
The FCC announced today it hit the maximum 126 megahertz initial clearing target in the reverse auction process of the proceedings. More importantly for the mobile telecom industry, the FCC said 99.6% of the spectrum being offered up by television broadcasters have less than 15% interference impairment, with 99% of those set for no interference impairment from continuing television broadcasters.
Setting aside guard bands, the FCC said it plans to offer 10 blocks of spectrum, each with 10 megahertz of spectrum across most of the country. Those licenses will be split into 428 partial economic area coverage blocks, with a total of 4,030 licenses with less than 15% impairment and 18 licenses with between 15% and 50% impairment set to be included.
The clock phase of the reverse auction process is set to begin on May 31, with the FCC planning to hold mock auction proceedings ahead of that process on May 25 and 26.
“Based on the initial commitments made by broadcast applicants seeking to bid in the clock phase of Auction 1001, the procedure identified a provisional assignment of eligible television stations to channels for each possible clearing target with the primary objective of minimizing impairments to forward auction licenses, consistent with the commission’s statutory obligation to make all reasonable efforts to preserve stations’ populations served and coverage areas and its international arrangements with Canada and Mexico,” the FCC wrote in its public notice. “The initial clearing target announced is the highest possible clearing target and associated band plan for which the provisional assignment satisfies the optimization objectives and the near-nationwide standard for impairments.”
FCC Chairman Tom Wheeler, who has been very vocal in garnering broadcaster support for the auction process, was obviously pleased with the news.
“Robust broadcaster participation is key to the success of the incentive auction,” Wheeler said. “Today’s announcement reflects the voluntary decision by many broadcasters that this auction truly is a once-in-a-lifetime opportunity. The 126 megahertz initial clearing target ensures that wireless carriers and other forward auction bidders have their chance to compete for the maximum amount of low-band ‘beachfront’ spectrum. The wireless industry has said it needs additional spectrum to meet growing customer demand and usher in the age of 5G. The broadcasters have stepped up and done their part to fulfill that demand.”
In recognizing the milestone, the National Association of Broadcasters highlighted the potential financial wind fall expected from its members.
“Broadcasters are excited that the TV auction process is moving forward and that the FCC is being aggressive in its auction estimates,” said NAB President and CEO Gordon Smith in a statement. “Now the onus is on the wireless industry to demonstrate there is significant demand for 600 MHz spectrum. We look forward to the conclusion of a successful auction that preserves and sustains America’s vibrant free and local television business that is the envy of the world.”
Overall estimates for the forward auction have ranged from $25 billion to in excess of $80 billion in total proceeds, with most in the $35 billion to $45 billion range. With the auction looking set to include the maximum amount of possible spectrum, indications are the process could come close to the more than $41 billion generated in the FCC’s AWS-3 auction from last year.
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