EOBC: Broadcasters Could Get $35 Billion for Spectrum

Armed with 180 reverse auction simulations, the Expanding Opportunities for Broadcasters Coalition (EOBC) argued for changes to the pricing and rules for the broadcast spectrum auction, changes it argues would make the auction more robust, efficient, transparent, simpler and fairer.

The EOBC argues that given the success of the AWS-3 spectrum auction, the FCC should boost its opening prices and scrap its Dynamic Reserve Pricing approach that the coalition said artificially reduces bid prices. According to a new paper from auction expert Peter Cramton and based on those simulations, the FCC would need to pay broadcasters about $35 billion for 126 Megahertz of spectrum [among the FCC’s proposed clearing targets], and could turn around and get about $84 billion from wireless operators in the forward auction, so long as the auction remained in early 2016. The report anticipates AT&T and Verizon Communications will push for a delay in the auction.