Incentive Auction Second Stage: Same as the First? Not Exactly.

On September 13 at 10:00 AM ET bidding resumes in the Incentive Auction with the opening of Stage 2. We wanted to take a moment to preview what happens next and describe how this stage will be different from Stage 1. For Stage 2, the Auction System set the clearing target at 114 megahertz, the next-highest target that meets the Commission’s standards for setting a clearing target in a stage (explained in the Bidding Procedures Public Notice). Compared to the 126 megahertz clearing target, the 114 megahertz clearing target generally clears nine blocks of spectrum in each partial economic area (PEA) instead of 10 blocks and adds two additional channels to the TV band. Adding more channels to the TV band allows more stations to be repacked in their pre-auction band. Thus, some stations that were provisionally winning after Stage 1 will become “unfrozen” in Stage 2 and will be presented decreasing price offers during the bidding rounds. This process will result in lowering the overall costs of clearing spectrum for wireless use.


Incentive Auction Second Stage: Same as the First? Not Exactly.