FCC’s Incentive Auction Task Force Releases Initial Clearing Target Optimization Simulations

The Federal Communications Commission’s Incentive Auction Task Force provides the results of several staff simulations of the initial clearing target optimization procedure proposed in the Auction 1000 Comment Public Notice, modified as discussed below. Releasing this data will better enable interested parties to analyze issues related to the selection of an initial spectrum clearing target.

Preston Padden, who heads the Expanding Opportunities for Broadcasters Coalition (EOBC), said the simulations looked like progress. "It shows that the commission believes 126 MHz is achievable," he said. He also pointed out that the scenarios were run assuming 10% impairment, rather than 20%, and relaxed assumptions about Canada and Mexico. "We clearly have to analyze the data," he said. But it appears to be a positive development. EOBC represents broadcasters looking to give up spectrum in the auction at the right price and under the right circumstances. Since the FCC chose a variable band plan, which means it could collect different amounts of spectrum in different markets, some broadcasters will still be operating in spectrum shared with wireless and there will be some allowable threshold of interference. The lower the allowable interference — 10% rather than 20% — the more valuable the spectrum is.

FCC Commissioner Ajit Pai was not so sanguine about the simulations, including that the FCC commissioners were not allowed to vote on it, which he had requested. Commissioner Pai was concerned that the having proposed that the initial clearing target would assume that up to 20% of spectrum nationwide could be impaired, the FCC based its simulation on another figure. He also said the fact that the simulations did not take into account any interference from Mexican TV stations makes the data misleading and "far from reality."