FCC postpones 700 MHz spectrum auction

The Federal Communications Commission has decided to postpone until September 12, 2001, its auction of spectrum in the 700 MHz band originally scheduled for March 6.

The FCC based its decision on the belief that bidders needed more time to plan due to the length of the C- and F-block PCS spectrum auctions that concluded last Friday. "We didn’t know when the auctions would end," said an FCC spokesperson. "This is simply an operational issue."

Verizon Wireless, the leading bidder in the C- and F-block auctions, made the initial request to push back the 700 MHz auction. After 13 other organizations weighed in with commentary, the majority favoring a delay, the FCC made its decision.

In prepared statements, FCC Commissioners Harold Furchtgott-Roth and Gloria Tristani took differing viewpoints on whether the Commission acted correctly.

"I am disappointed that the Commission has decided to postpone this auction once again," said Furchtgott-Roth, who recently decided against running for a second term. "Indeed, each postponement points out significant Commission shortcomings: non-compliance with the law, poor auction schedule management, and the repeated disruption of public expectations.

"With each succeeding delay, the credibility of our spectrum and auction management policies becomes more suspect."

For her part, Tristani took a more pragmatic and somewhat less critical perspective.

"The challenges posed by the early auction of 700 MHz spectrum need not be burdened further by unfortunate administrative miscalculations. The [Wireless Telecommunications] Bureau asserts that this delay is necessary to address these administrative matters," she said.

"While the statutory deadline continues to restrict the Commission’s ability to address the larger timing concerns surrounding this auction, I do not oppose the Bureau’s decision here."

In the end, this delay may not matter all that much. Currently, spectrum in the 700 MHz range is utilized by roughly 150 broadcasters who are transmitting over channels 60 to 69 in the UHF band. These broadcasters have until 2006 to relinquish their rights to this spectrum—but only in the event that 85% of each television station’s territory are capable of receiving digital television signals.

Until they do, any spectrum acquired in the 700 MHz band may end up being worthless.