AT&T, Verizon Get Win in FCC Policy Call on Bifurcating AWS-3 Auction
The FCC moved another step closer to holding the AWS-3 auction, releasing a public notice late Wednesday that puts in place procedures for the auction set to get underway Nov. 13. In a key policy call, the FCC decided not to bifurcate the two different types of spectrum offered, agreeing with arguments by AT&T and Verizon and disagreeing with Dish Network, T-Mobile and other comments. The Wireless Bureau approved the rules on delegated authority.
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The auction will offer the 1695-1710 MHz band, licensed in an unpaired configuration for low-power uplink operations, and 1755-1780 MHz band, which will be paired with the 2155-2180 MHz. T-Mobile and other commenters urged the FCC to treat the spectrum differently in regard to the reserve price that must be met for the auction to not be canceled, in June comments filed at the commission (CD June 16 p8). AT&T and Verizon said some bidders may view the two bands as complementary and the rules should be the same for both.
"Offering both the paired and unpaired bands in the same auction will allow market forces to determine the degree to which market participants view the AWS-3 spectrum blocks as substitutable,” the order said (http://bit.ly/1nYi1a7). “Our approach is grounded in our experience with past auctions where the degree to which licenses may be characterized as substitutable or complementary differs depending upon the perspective of each auction participant."
In another key policy call the FCC will require short-form applications be submitted by potential bidders by 6 p.m. ET Sept. 12. CTIA, NTCA and the Competitive Carriers Association jointly asked the FCC to put off the deadline for submitting short-form applications for the AWS-3 auction until after their separate conferences in September (http://bit.ly/1ohdSz0). The three trade groups noted that anti-collusion rules for the auction kick in the day short-form applications are due. They hoped carriers could freely discuss the auction at the trade shows without worrying about the restrictions.
CCA’s and CTIA’s annual shows will be complete by that date, the bureau notes. But the commission can’t wait for all three to be wrapped up because of the need for FCC staff to have “sufficient time” to complete their review of the applications, the bureau said.
The FCC declined to make any changes to the former defaulter rule, which requires companies to make larger upfront payments for licenses if they ever defaulted on a license or were delinquent on a debt owed to a federal agency (CD June 3 p1). Multiple associations and companies had asked the FCC to limit these restrictions. Charges to the rule are “are beyond the scope of this Public Notice, which is limited to establishing procedures for the upcoming auction of AWS-3 licenses,” the bureau said. “We note, however, that such requests are being addressed separately.”
The FCC rejected Verizon requests that the rules allow carriers to bid for a package of licenses rather than each on an individual basis. Various wireless players released statements applauding the release of rules. The FCC approved service rules for a 65 MHz AWS-3 auction March 31 (CD April 1 p1), setting the stage for the agency’s first major spectrum sale since 2008.