Several FCC commissioners doubt whether lowering the minimum opening bid for the valuable D block wireless spectrum will attract commercial partners.WASHINGTON, Sept 25 (Reuters)—The Federal Communications Commission on
Thursday proposed halving the minimum opening bid on a piece of valuable
wireless spectrum, but several commissioners expressed doubt that the plan
would work, after an earlier auction failed to attract industry interest.
The five-member FCC approved a plan devised by agency Chairman Kevin Martin,
cutting to $750 million a prior $1.3 billion minimum bid and easing other
requirements.
The aim is to lure interest in the airwaves, which come with a requirement
to partner with public safety agencies during emergencies.
But several commissioners raised doubts that the changes would entice
commercial partners to buy the spectrum, for reasons including a too-high price
and lack of clarity for public safety officials.
"We are flying blind to some extent," said Jonathan Adelstein, a
Democratic commissioner who concurred in part and dissented in part with the
changes. "We're expecting major investments are going to be made by
private enterprise" without a cost-benefit analysis to make it economical
viable for commercial players.
Of the new $750 million price tag, Adelstein said: "I cannot put my
vote behind such a high figure arrived at so arbitrarily."
The FCC is seeking public comment as part of its rulemaking process. A final
vote by commissioners is needed to approve the rule.
Investors were unwilling to meet the government's minimum price for the
so-called D block spectrum, considered valuable because its signals go long
distances and penetrate thick walls.
The 700-megahertz airwaves are being returned by television broadcasters as
they move to digital from analog signals in early 2009.
The government auctioned off nearly $20
billion worth of 700 MHz spectrum earlier this year, with AT&T Inc and
Verizon Communications Inc the biggest winners.
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