Limiting Spectrum Bids May Lower Auction

Restricting the ability of wireless giants AT&T and Verizon to bid for repurposed broadcast TV spectrum during the Federal Communication Commission’s planned incentive auction could reduce auction revenues by more than $5.8 billion, according to a new study sponsored by the Expanding Opportunities for Broadcasters Coalition and the Consumer Electronics Association.

The research also says an FCC staff proposal to reduce the auction payoffs of smaller broadcasters could undermine station participation in the auctions. “To attract the critical mass of broadcasters necessary to make the auction a success, we need competitive bidding among all wireless carriers for every license, and the assurance that every TV station will be fully compensated for its spectrum rights,” said Preston Padden, executive director of the broadcasters coalition.