TV Stations Eye Selling Spectrum Twice

Broadcasters who decide to put spectrum in the upcoming incentive auction could have the opportunity to sell it twice. Jan. 12 is the deadline for broadcasters to signal they are potentially putting spectrum in the auction and some of those broadcasters are busy figuring out what auction play makes the most sense for them. According to a source familiar with their thinking, some “major” broadcasters are looking at putting spectrum in the pot and, if they win, taking advantage of tax laws to keep that money in escrow and use more cash, or a loan, to bid on some of that reclaimed broadcast spectrum in the forward auction—they would need to use other money since reverse payments won’t be available until both sides of the auction closes. They could then sell or lease the spectrum to wireless carriers hungry for it. There is some financial risk involved since winning bidders are only provisional winners until the forward auction closes.