'Spectrum extravaganza': Auction gets underway

A major federal wireless spectrum auction got underway March 29. Broadcasters have until 6:00 pm to commit to some level of participation in the auction. A commitment does not guarantee that a company will ever sell its spectrum, however. The process resembles a Dutch auction, in which sellers are knocked out over time.

FCC Chairman Tom Wheeler tweeted triumphantly about the beginning of the long-awaited auction, cheering the team that developed the process: "This morning we began accepting initial bid commitments in the #IncentiveAuction. Hats off to Gary, Howard, and the entire auctions team!" This is the first time the FCC is allowing broadcasters to essentially sell their spectrum through an auction. If all goes as planned, broadcasters will be compensated for going off the air or moving channels. The wireless industry and other buyers, meanwhile, will get access to high-quality spectrum that is crucial to the delivery of the mobile data on smartphones. Chairman Wheeler has said he expects the auction to be "a spectrum extravaganza."