Bush gives carriers relief on hotly contested 700 MHz auction

President Bush signed legislation today to delay most of the 700 MHz auctions and eliminate other legislative deadlines for auctioning other spectrum bands.

The law allows the Federal Communications Commission to proceed with an auction of 18 MHz of spectrum in the 700 MHz band later this summer but eliminates legislative deadlines for auctioning the remaining portions of the 700 MHz band as well as other bands, including the 1700 MHz and 2100 MHz bands, which are being considered for third-generation services.

The FCC had planned to begin auctioning airwaves used by channels 52 to 59 in the 700 MHz band tomorrow. In April, the commission denied the Cellular Telecommunications and Internet Association’s plea to postpone the 700 MHz auction. CTIA wanted the auction delayed because of the uncertainty surrounding when the spectrum, which is encumbered today be television broadcasters, might become available. Broadcasters don’t have to vacate the spectrum until 2006 or when the penetration rate for digital television reaches 85%. Legislative action was CTIA’s last hope.

“Today’s action enables us to continue the important work of crafting sound spectrum management policies,” said CTIA President and CEO Tom Wheeler. “It is critical that we break the cycle of ad hoc spectrum allocation that fails to meet the needs of 21st century national defense, wireless consumers and public safety providers.”

Much to carriers’ relief, the new law also removes the statutory deadlines for the 700 MHz auctions. Previously, the FCC was required to sell spectrum for channels 52 to 59 by the end of September and spectrum for channels 60 to 69 was supposed to be auctioned nearly two years ago. Now the commission must report to Congress on transition plans for digital television and the availability of spectrum for advanced services.

--Lynnette Luna, Senior Editor