Congress agrees on incentive auctions

News Wireless United States 17 FEB 2012
Congress agrees on incentive auctions
US lawmakers have reached an agreement on going ahead with the FCC's proposed incentive auctions. This will allow the Federal Communications Commission to auction spectrum currently held by broadcasters for mobile services. Broadcasters may share in part of the proceeds if they voluntarily give up their frequencies. For the spectrum auction to become law, House and Senate lawmakers still must clear the associated legislation, centred on payroll reductions, through both chambers. The vote could come as early as 17 February, with the House expected to go first, the Wall Street Journal reports. AT&T and Verizon scored a victory when lawmakers inserted language in the legislation that will bar the FCC from excluding any company from bidding in the coming auctions. However, the victory wasn't complete because the legislation allows the FCC to set industrywide limits on how much spectrum a company can hold. Smaller mobile providers wanted the FCC to be able to prevent larger operators from bidding in the auction. Under the deal, broadcasters would receive as much as USD 1.75 billion in auction proceeds as payment for giving up their airwaves, which they received free, and for costs associated with moving channels to other locations. Public-safety groups will receive spectrum valued at USD 3 billion for their new national wireless-data network, which would be funded through auction proceeds. Google and Microsoft also scored a victory when congressional negotiators agreed to allow free unlicensed use of some TV airwaves.

Related Articles