Commerce department seeks auction delay

The U.S. Department of Commerce has sent a proposal to Congress that would the auction of third-generation wireless spectrum to be delayed by as much as two years.

The proposal would allow the proceeds from the auction to be deposited as late as Sept. 30, 2004, instead of the current Sept. 30, 2002, deadline, effectively giving the FCC extra time to hold the auction.

This breathing room is needed because the FCC would like to allocate additional spectrum for the auction in question. Finding that spectrum has proved difficult, however, with needs of the Department of Defense, fixed wireless providers and educational spectrum holders conflicting with 3G.

According to a spokesman for the Commerce Department, the FCC and the Commerce Department together, “feel that this time is the time that will enable us to come to the best possible decision in terms of spectrum.”

Rudy Baca, global strategist with The Precursor Group, said the proposal likely will be approved. Congress understands that the auction likely will not be completed in time for the original deposit deadline and would loath being forced to estimate for budgetary purposes how much the auction would garner, he said.