Crafting Balanced Incentive Auction Rules in the Public Interest

[Commentary] June 21 marks the first day of summer, and what will be the critical season for finalizing key details for 2016’s Incentive Auction. Now we turn to the crucial task of finalizing our auction rules.

On June 16, Federal Communications Commission staff briefed the Commissioners’ staffs on proposed recommendations to establish final rules for the auction that balance our statutory obligations, heeds commenters’ calls for simplicity and transparency in the flow of the auction, and -- most importantly -- serves the public’s interest in an effective, efficient, and timely auction. The proposal aims to clear the highest possible amount of spectrum for broadband consistent with broadcasters’ voluntary decisions to relinquish some or all of their spectrum usage rights. At the same time the proposal limits the number of impaired new licenses that are created in those isolated instances where it is necessary to relocate a TV broadcaster on the same or adjacent frequencies as those being auctioned. The proposal eliminates bidding procedures that many commenters believed were burdensome and could limit broadcaster participation. It also adopts a formula for opening bid prices that creates value for both broadcasters and American taxpayers. The proposal responds to requests to make more information about bidding available to bidders before and during the auction. And it ensures that competitive wireless carriers and new entrants have a clear shot at adding sufficient low-band spectrum to their portfolios so that they can compete more effectively in both rural and urban areas. The proposal reflects an incredible amount of modeling and the careful consideration and analysis of all parties’ comments and concerns in a robust public record. The proposed package of rules is designed to best serve the broad public interest -- and that’s the true test of good public policy.