FCC Mulls How Spectrum Auction Will Work

The first “incentive auction” to clear some broadcast television spectrum for sale to wireless operators is on the fast-track, but there are still important details to be worked out on just how the process will work so that enough broadcasters are willing to participate.

Federal Communications Commission officials spelled out some of the financial options in a PricewaterhouseCoopers LLP (PwC) webcast and urged listeners to file comments as the commission works to write rules for the auction. Just how the price to be paid to broadcasters willing to go off the air, relocate from UHF to VHF or possibly accept additional interference (a possibility still up for consideration) will be set is key to making the auction process work. Speaking on the PwC webcast, William Lake, chief of the FCC's Media Bureau, spelled out two options. First is the possibility of conducting a single round auction using sealed bids. The other possibility is a multi-round auction, described as a “descending clock auction.”