Strange. Demand is exceeding supply, this article says, and yet the FCC is
making noises to reduce the amount of spectrum reclaimed from TV, from 126 MHz
to 114 MHz.
I still think this is one of those things the government can do, and therefore
does, and it makes a big splash in the news, but it's not really a high payoff
tactic. We are talking about the 600 MHz band, hardly what 5G and other new RF
standards are looking at, and hardly compatible with high spectrum reuse. Why
the reported high demand in 9 of the 10 bigger markets (presumably high
density)?
Something isn't adding up. And look at the last sentence. It sounds like
bidders might be having second thoughts? (I wouldn't be surprised.)
Bert
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http://www.multichannel.com/news/distribution/spectrum-auction-round-two-about-500m-new-bids/407098
Spectrum Auction Round Two: About $500M in New Bids
Morning tally brings total so far to $9.038 billion
8/17/2016 12:29 PM Eastern
By: John Eggerton
With two rounds finished in the forward part of the FCC's broadcast spectrum
incentive auction, a total of $9.038 billion has been bid on the available 416
geographic markets where licenses are being offered.
That's up from the $8,490,410,000 bid in round one, which began Tuesday (Aug.
16).
The auction is in its earliest stages -- it is expected to last a couple of
months -- so auction watchers aren't gleaning much from the early returns.
The FCC is raising its prices by 5% in each round. For example, in top market
New York, the opening price for the 10 MHz available -- 5 MHz uplink and 5 MHz
down -- was $135,000,000. The round-two price was $141,750,000. The round three
price will be $148,383,000.
So far, demand is exceeding supply in nine of the top 10 markets, and all
markets have at least one bid on at least some of their available spectrum.
Only American Samoa had lacked a bid in the first round.
The FCC will need to raise at least $88,379,558,704 in total to cover the cost
of paying broadcasters for giving up 126 MHz of their spectrum, 100 MHz of
which is being auctioned (the rest is for guard bands between broadcast and
wireless users).
The licenses in the top 40 markets will also have to draw sufficient dollars to
meet what the FCC has set before the auction as competitive price for those:
$15,896,290,000.
If the FCC does not meet those goals, it will reduce the spectrum clearing
target to 114 MHz and resume the reverse auction.
Currently, the forward auction consists of two, two-hour rounds per day, but
more rounds could be added if the FCC wants to goose the activity.
Bidders are also required to bid on most of the spectrum they have indicated
interest in or face having their eligibility "irrevocably reduced," the FCC has
pointed out to bidders.
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