Lawsuit puts ‘cloud’ over airwave auction

Broadcasters are threatening to stand in the way of next year's highly anticipated airwave auction, putting one the Obama Administration’s top priorities at risk.

Officials in the broadcast and wireless industry are hopeful that a new lawsuit from the National Association of Broadcasters will put pressure on the Federal Communications Commission to reach a reach a compromise to save the auction -- expected to net billions of dollars -- from what would could be a months-long delay. “This lawsuit puts a cloud over the auction,” said one Republican FCC aide. “It would make sense for the Commission to work something out with the NAB.” One broadcast industry source said the FCC could avoid lengthy delays to the crucial auction if it is willing to work with the broadcasters. "The suit does not have to result in a delay,” the source said. "There are a couple of issues that if taken off the table, broadcasters would anticipate dropping the lawsuit.”