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Breaking News......

FCC SEEKS COMMENT ON COMPETITIVE BIDDING PROCEDURES FOR 700 MHz BAND LICENSES AUCTION

Comments Due:  August 31, 2007
Reply Comments Due:  September 7, 2007
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BACKGROUND AND SUMMARY

  • On August 17, 2007, the Federal Communications Commission (“FCC”) released a Public Notice in which it announced an auction of 1,099 licenses in the 698-806 MHz band (the “700 MHz Band”).   In Auction 73, the Commission will make available 176 licenses over Economic Areas (EAs) in the A Block, 734 licenses over Cellular Market Areas (CMAs) in the B Block, 176 licenses over EAs in the E Block, 12 licenses over Regional Economic Area Groupings (REAGs) in the C Block, and one nationwide license, to be used as part of the 700 MHz Public/Private Partnership, in the D Block.  In the Public Notice, the FCC proposes and seeks comment on detailed procedures for Auction 73, including, among other things, procedures for

  • anonymous bidding, to enhance competition by safeguarding against potential anti-competitive auction strategies;

  • applicants trying to combine multiple C Block licenses to place bids on packages of those licenses;

  • block-specific aggregate reserve prices, to help assure that the public recovers a portion of the licenses’ value; and

  • offering licenses for the relevant block(s) in a prompt subsequent auction in the event auction results do not satisfy applicable reserve prices.

  • The FCC is offering the licenses in Auction 73 consistent with the requirements of the Digital Television Transition and Public Safety Act of 2005 (“DTV Act”).   Pursuant to the DTV Act the FCC must conduct the auction of licenses for recovered analog spectrum by commencing the bidding not later than January 28, 2008.   The FCC recently released the 700 MHz Second Report and Order, in which it revised rules governing licenses in the 700 MHz Band and made certain determinations regarding the auction of 700 MHz Band licenses.

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