Study: Broadcasters Need FCC Repacking Info

Former Federal Communications Commission chief economist Thomas Hazlett and the National Association of Broadcasters have been on opposite sides of the spectrum reclamation debate, but there is one thing they agree on, according to a new paper of which Hazlett is co-author. They both agree the FCC needs to release its model for repacking TV stations after reverse incentive spectrum auctions in time for broadcasters to figure out whether it is in their interests to give up spectrum.

Hazlett and company also say that broadcasters should be given bidding flexibility, and that there should be no maximum reserve price in the reverse auction -- no maximum price broadcasters can get for clearing off spectrum in each relevant market. In the paper, "Incentive Auctions: Economic and Strategic Issues," co-authored by Hazlett, David Porter and Vernon Smith of Arlington Economics, they outline options for both the reverse incentive auction, in which winning broadcasters are the ones giving the government the lowest price for reclaiming their spectrum, and the ensuing auction of that reclaimed spectrum by the government to the highest bidders, presumed by most to be wireless companies clamoring for it.