FCC Moved Spectrum Aggregation Order in Right Direction, Redl Says
HOT SPRINGS, Va. -- The FCC spectrum aggregation order draft appeared to move in a positive direction before it was approved by the agency on a 3-2 vote Thursday, House Commerce Committee Majority Chief Counsel David Redl said Saturday at the FCBA annual retreat. John Branscome, Democratic senior counsel to the Senate Commerce Committee, said the FCC appeared to take some positive steps forward in both major auction orders approved at the monthly public meeting (CD May 16 p5).
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"Based on where press reports had the original item as white copied and it appears to have come out, it appears that [the FCC] made some pretty positive steps to get folks to the table,” Redl said. “There’s still a lot of questions left to be answered.” The incentive auction order answered a lot of questions on the forward part of the auction, the sale of spectrum to carriers, he said. Less clear are the rules for broadcasters for selling their licenses in the auction, he said. The FCC must “do a lot more just to make sure the broadcasters are on board,” Redl said. “If the broadcasters aren’t willing to put a price on their spectrum that the wireless companies are willing to pay them, this auction is going to fall apart.”
Branscome said his boss, Sen. Jay Rockefeller, D-W.Va., is pleased with the incentive auction order and believes it means the government will raise enough money to pay for the $7 billion startup costs of FirstNet. Paying for FirstNet has always been Rockefeller’s top auction priority, Branscome said. “Congress left a lot of discretion for the FCC as the expert agency to get these auctions right.”
If the incentive auction doesn’t work, the spectrum law that authorized it permits the FCC to schedule other similar auctions, but without “the special rules” designed to protect broadcasters, Redl said. “Those rules that would limit challenges to [a spectrum] repack would fall off.” It seems pretty clear Congress’ intention was “everyone come to the table” and “get it right the first time,” Redl said.
"Broadcasters should really take this auction very seriously,” Branscome said. “Our bosses did build in a lot of protections for this one auction and we hope it will work.” Branscome said concern over spectrum remains bipartisan.
David Quinalty, Senate Commerce Committee Republican policy director, said the FCC appears still to be more focused on the outcome of the auction, and who gets licenses as a result, rather than focusing on making it a success. “There is a lot of flexibility” in the Spectrum Act, he said. “But the flexibility was there to assure a successful auction.”
Redl said House Republicans are serious about a Telecom Act rewrite. He noted that under House rules, Commerce Committee Chairman Fred Upton, R-Mich., is likely to serve only one more term as chairman. There’s “going to be a lot of sitting down with people in the industry and other interested stakeholders and saying essentially, ‘What would you keep? What would you get rid of? And why?” he said. Predicting the timing is difficult, especially since key members of the House and Senate are retiring at the end of the current Congress, Redl said. “There’s no shortage of certain inflection points between now and the end of the year,” he said. “You've got the Title II dance, you've got the Aereo case and you've got the election.” Commissioner Ajit Pai’s complaints about the spectrum aggregation order -- that he got it late the night before the meeting, with thousands of changes over the previous draft -- shows why FCC process reform is critical, Redl said.
Quinalty said his boss, Sen. John Thune, R-S.D., is a willing “dance partner” for Upton as reform efforts get underway. “Communications law … shouldn’t be partisan,” said Quinality. Branscome said this isn’t the first time Congress has looked at rewriting the 1996 act. He said Rockefeller has always been concerned about preserving competition, protecting consumers and public safety.
NTIA Administrator Larry Strickling assured FCBA attendees he plans to be President Barrack Obama’s only NTIA chief. “I'm not going anywhere,” he said. “I've committed to stay until the end of the term.”