EOBC: FCC Could Cut TV's Auction Opening Prices By Billions

The Expanding Opportunities for Broadcasters Coalition says that the Federal Communications Commission's opening prices for TV stations in the incentive auction could plummet by more than $8 billion collectively.

In a filing with the FCC July 2, EOBC, which represents most of a hundred TV stations interested in participating in the incentive auction at the right price, said the FCC needs to make three what it calls "relatively minor" changes to the auction framework, beginning with the "anomaly" that it says, if left unchanged, will cut opening prices to stations in the reverse auction by $8.3 billion. EOBC also wants the FCC to reduce the decrements in each round (the degree to which prices drop as the FCC seeks the lowest bidder) and adjust the auction pricing formula.