EOBC Battles 'Devaluing' Broadcast Auction Spectrum

The Expanding Opportunities for Broadcasters Coalition is pushing back on efforts by Sprint to ensure the Federal Communications Commission reserves reclaimed broadcast 600-Megahertz low-band spectrum for nondominant carriers -- like the wireless provider. The Federal Communications Commission is already planning to set aside at least 30 MHz of that spectrum for competitive carriers; Verizon Communications and AT&T have the majority of it already. Sprint said it supports requests by other parties to increase the reserve of to 40 MHz (which would allow for two new, competitive 20-MHz national wireless offerings). But it said the FCC’s proposal to delay the reserve block until later in the auction -- and after certain financial targets are met -- is particularly problematic. The move could mean the FCC will have to pay broadcasters more in the reverse auction, Sprint said.

Sprint suggested setting the reserve at the beginning of the auction. Doing that, as well as reducing the allotment of spectrum that the two largest carriers can bid on, will devalue the broadcast spectrum -- something the EOBC does not want to see happen. "It is beyond ridiculous for Sprint to file today an ex parte claiming the critical importance of 600-MHz spectrum a day after its CFO, Joe Euteneuer, claimed that Sprint doesn’t really need it saying, 'The 600 MHz auction is something we're looking at but not necessarily something we need to do,' " EOBC executive director Preston Padden said. "A classic case of Wall Street candor contradicting lobbying hyperbole."