NAB: Verizon Auction Raises Questions About 'Spectrum Shortage'

April 18, 2012

In light of an announcement by Verizon, the NAB is expressing further skepticism about a "spectrum shortage" that raises the need for TV broadcasters to participate in "incentive auctions" to sell off their airwaves. Verizon said it will "conduct an open sale process for all of its 700 MHz A and B spectrum licenses in order to rationalize its spectrum holdings," adding, "The licenses cover dozens of major cities across the country, as well as a number of smaller and rural markets." Verizon acquired the spectrum in an auction in 2008.

NAB EVP/Communications Dennis Wharton said, "Today's proposal by Verizon to sell reallocated broadcast TV spectrum involves airwaves in the largest urban markets in America that it purchased more than four years ago. The fact that it has warehoused this 'beachfront property' raises the fundamental question of whether a spectrum shortage actually exists. Rather than simply take at face value the specious claims of wireless broadband providers, policymakers should heed the words of Martin Cooper, the inventor of the cellphone, who disputes the notion of a spectrum crisis."

The Verizon sale is conteingent on government approval of its purchase of spectrum from SpectrumCo.

FCC Chairman Julius Genachowski, speaking at the NAB Show this week, urged TV broadcasters to participate in voluntary spectrum auctions, while NAB President/CEO Gordon Smith counseled caution. 

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Voluntary Auction Legislation Passes House

12-14-2011

Yesterday, the House passed the spectrum legislation as part of a package that includes a payroll tax holiday. It's unclear how this legislation will end up, many democrats are saying this package will likely fail in the Senate and the President has vowed to veto the payroll tax package if it remains in its current form. The spectrum legislation could raise $16 billion for the Treasury from the auctions. FCC Chairman Julius Genachowski said ?Incentive auction authority, which has broad bipartisan support, needs to become law. Unless we free up new spectrum for mobile broadband, the looming spectrum crunch risks throttling our mobile economy and frustrating mobile consumers."

The House legislation would authorize the FCC to conduct voluntary incentive auctions as recommended in the FCC?s National Broadband Plan. It also provides funding for a public safety broadband network for the nation?s first responders, which was another recommendation of the National Broadband Plan. The NAB "strongly" supports the spectrum language in the House bill.

The bill was not perfect for Genachowski.  "Several provisions of the House bill would tie the agency?s hands in ways that could be counterproductive, reducing economic value and hindering innovation and investment.  One important example is the legislation?s seeming limitation on the Commission?s ability to accommodate new technologies, including those that use unlicensed spectrum, like super WiFi or machine-to-machine Internet connected devices.  I encourage Congress to leave no doubt that the FCC can continue its policies to promote unlicensed spectrum use alongside licensed uses."

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