FCC's Martin says economy could hurt wireless sale

FCC CHIEF SAYS ECONOMY COULD HURT WIRELESS SALE
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
It's the economy, stupid. Federal Communications Commission Chairman Kevin Martin expressed concern on Tuesday that the credit crunch could hinder bidders in an upcoming government auction of wireless airwaves. Martin's comments came less than a week after a key potential bidder called Frontline Wireless dropped out of the wireless spectrum auction. The auction is scheduled to begin on January 24 and has been expected to raise at least $10 billion for the U.S. government from airwaves being returned by television broadcasters as they move to digital from analog signals in early 2009. The auction comes at a time when a meltdown in the U.S. housing and subprime mortgage markets has severely pinched the ability of companies to raise capital. Chairman Martin said the auction must go forward since Congress has ordered the FCC to begin the auction by January 28. "We're required by law to conduct the auction at this time, so we'll go forward with it no matter what." Stifel Nicolaus analyst Rebecca Arbogast said the credit crunch does not affect large carriers such as AT&T and Verizon and other big companies, which have other ways of raising money for the auction. But for some other bidders, she said, it raises an added hurdle. Arbogast said Martin may be worried that auction bids could fall short of the minimum $1.3 billion "reserve" price set by the FCC.
http://www.reuters.com/article/technologyNews/idUSN1555479420080115

* FCC's Chief Defends Coming Airwave Sale
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