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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Genachowski Focuses on Spectrum Crunch

4-16-2012

As innovation and new technology enters the marketplace at warp speed, it?s obvious FCC Chairman Julius Genachowski wants to be at the helm of an FCC known for being out front of all these changes. The chairman spoke to the National Association of Broadcasters Monday afternoon in Las Vegas and focused on the explosive growth of new technology. His speeches consistently mention the need to remove barriers for advancing technologies and speeding up how Americans consume and receive data.  He's also very aggressive on meeting the demand being placed on spectrum space as those consumers try to squeeze more and more of that data through an information Superhighway running out of lanes.

Genachowski delivers his speeches, not from a teleprompter, but from an iPad (unknown if it?s the newest version). He quotes online useage growth many broadcasters see before their very eyes on a daily basis. And, he commends broadcasters as they increase their share of online revenue. After the facts, figures and accolades, he hits on one of his main issues, the spectrum crunch.

?You?ve heard me talk about the spectrum crunch before, and, over the past 12 months, evidence that the crunch is coming has only continued to mount. Since the last NAB show, the number of active mobile phones in this country passed the number of people. The percentage of cell phone owners with smartphones passed the 50% barrier, up from about 25% a year ago."

Genachowski says with the quick adaptation of the tablet, more pressure will be put on the spectrum. "The growth of the tablet market continues to exceed even the most optimistic forecasts.  In 2010, it was a big deal when Apple sold 1 million iPads in 28 days. The new iPad passed that milestone in less than 28 hours.  And Amazon sold more than 4 million Kindle Fires during the holiday season. In 2011 wireless data traffic increased over 120% over the year before. Failure to meet this growing demand for spectrum could stifle the vast opportunities of mobile broadband.  The world is changing, and stations that have been investing in online and other digital platforms are seeing accelerating usage and revenues. With Wi-Fi and the next generation of mobile broadband networks, the new expectation and the new norm is quickly becoming: the content you want, where you want it, and when you want it, accompanied by the full suite of interactive services.?

The FCC is in the process of implementing a recently passed law that calls for a voluntary auction of spectrum space on the TV side. Genachowski's speech was a little light on radio issues, however, many would say that?s a good thing. Genachowski did not stick around for any questions following his speech.

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FCC Proposes Additional Spectrum For Mobile Broadband

3-21-2012

The proposed rules are designed to provide for flexible use of this spectrum, to encourage innovation and investment in mobile broadband, and to provide a stable regulatory environment in which broadband deployment can develop in the 2 GHz band.  The notice directly follows on last year?s 2 GHz Band Co-Allocation Order, in which the Commission laid the predicate for full terrestrial use of this band. 
In the Notice of Inquiry, the Commission seeks comment on potential ways to free up additional valuable spectrum to address the increased demand for mobile broadband spectrum.

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TV Spectrum Dominates NAB Board Meeting

While the performance "tax" issue is still a very important issue to the radio industry, it's not as white-hot as the spectrum issue is on the television side. The NAB concluded two days of board meetings in Washington yesterday and NAB Joint Board President Steve Newberry tells Radio Ink the performance rights issue is still in the hands of the R.I.A.A. "We made an offer back in November and the ball is in their court." Newberry says the topic most important right now to all broadcasters is the spectrum issue. "We heard the FCC Chairman (Genochowski) say giving up spectrum space should be voluntary. We don't want the word voluntary to have quotes around it."

A bill Newberry and broadcasters are keeping their eye on is Senate Bill 911, the Public Safety Spectrum and Wireless Innovation Act. Yesterday it was sent to the full Senate for consideration.  The bill to build a nationwide communications network for first responders was overwhelmingly approved by the Commerce Committee 21-4. The bill allows broadcasters and other spectrum licensees to voluntarily return unused portions of the airwaves.  The freed up spectrum would be re-auctioned for commercial wireless broadband use in exchange for a portion of the proceeds through ?incentive auctions.?  The costs to build the public safety network will be offset by the proceeds of incentive auctions, and the surplus revenue will go toward deficit reduction."

Broadcasters do not oppose rebuilding the safety infrastructure that failed America on September 11th, 2011. What they are clearly opposed to is a government hammer that mandates a return of spectrum space. Newberry cautioned that the Federal Communications Commission is holding their plans regarding spectrum "close to the vest." He adds "there's a strong inclination to try to address this issue coming from the White House, the FCC and the Senate." Newberry says "we also have a lot of good friends in Congress." Without actually coming out and using the exact words, it appears broadcasters may be slightly worried that while the government keeps saying voluntary, voluntary may either mean something else or turn into something else."

Back in January Chairman Genochowski said "A lot of that spectrum is currently occupied by TV broadcasters, a large majority of which was freed up after the recent digital transition. As part of its national broadband plan, the FCC last year proposed allowing broadcast TV stations to voluntarily sell some of their spectrum for mobile broadband purposes. Genachowski on Thursday pushed hard to make those incentive auctions a reality. In the case of TV broadcasters, under our plan a broadcaster could choose to contribute the six megahertz they are using, or continue to broadcast by sharing a channel with one or more stations, or simply not participate and continue to broadcast as they do today," he said. "Since the DTV transition, some broadcasters are making effective use of the capabilities of their spectrum, but some are not."

It's clear the NAB board is somewhat worried that "voluntary" may turn into "mandatory" and that is when the real fight will begin.

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