FCC Launches Financial Pitch For Incentive Auction

The Federal Communications Commission has begun sending out information packets to broadcasters making the financial case for why broadcasters should participate in the incentive auction. That includes breakdowns of what a station in each market, in an ideal scenario, could be paid for its spectrum, plus the median price in each market.

The packets were prepared by FCC staffers in conjunction with investment banker Greenhill & Co., which the FCC turned to help turn policy into a financial case for giving up spectrum. FCC staffers will also be making road trips to talk to broadcasters about the info and the auction opportunities. A high-end estimate of revenues from the incentive auction could mean as much as $38 billion to compensate broadcasters for giving up spectrum for that auction.