Spectrum Auctions and Lessons Learned

Former Federal Communications Commission Chairman Reed Hundt concedes FCC mistakes in the spectrum auction that involved NextWave, yet he is still pushing for FCC discretion in future spectrum auctions.

As Reed admits, Congress gave the FCC discretion in the PCS C Block auction, and it used that discretion in a way that resulted in an auction that was a disaster for the industry and for the Treasury. And the flaw, in our view, was not simply a function of installment payments. It was the decision to have a closed versus an open auction. Our point is that an auction should be open to all competitors, not just to those handpicked by the FCC. Reed was a good and diligent chairman, and it’s characteristic of him that he’d acknowledge a mistake. But Congress has every right to learn from those mistakes, and to insist the FCC not repeat them. That’s what the House spectrum bill does. The FCC should get behind it and put the interests of the country first so that we can quickly move forward to address the looming spectrum crisis that we all agree is the biggest threat to innovation, job creation and growth for the wireless industry.