Debunking a Few Myths about the FCC’s Incentive Auction

With the Federal Communications Commission’s Incentive Auction poised to move into its next phase with the August 16th start of active bidding in the forward auction, where companies looking to provide mobile broadband services will bid on licenses carved out of the spectrum vacated by TV broadcasters, we thought it might be helpful to address a few of the myths that seem to be floating around about the auction.
Myth: In the initial stage of the reverse auction, broadcasters were greedy, demanding that the government pay $86.4 billion for their spectrum.
Myth: Given the $86.4 billion clearing cost, this auction is sure to drag on into 2017.
Myth: If the auction goes to a second stage, all of the TV stations that are still in the auction will be forced to accept lower prices.
Myth: The FCC’s rules have chilled all deal-making activities during the Incentive Auction.