FCC Right to Consider Spectrum Caps in Incentive Auction, Peraertz Says
The FCC is well within its legal authority to consider spectrum aggregation caps in the upcoming incentive auction of broadcast TV spectrum, Louis Peraertz, wireless adviser to acting Chairwoman Mignon Clyburn, said during an Internet Innovation Alliance panel discussion Wednesday. But Peraertz also assured industry the auction is the top “institutional priority” of the FCC under Clyburn. The discussion was also sponsored by the Digital Policy Institute and The Joint Center.
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"We're on track to delivering faster speeds, greater capacity, more ubiquitous wireless connectivity to consumers and businesses across the country,” Peraertz said. Spectrum aggregation limits have emerged as a top fight at the agency as staff work on rules for the incentive auction, pitting AT&T and Verizon Wireless, the nation’s two largest carriers, against smaller carriers that want to limit their ability to buy more sub-1 GHz spectrum.
Last year’s spectrum law “reaffirmed the commission’s authority to issue rules of general applicability on spectrum aggregation to promote competition,” Peraertz said. “The staff is quite aware of what we're not supposed to do with regard to preventing folks from entering [the auction] if they comply with our financial qualifications of the bidding procedure, but the staff is also well aware of our continuing authority to modify spectrum aggregation to promote competition."
Peraertz said the commission was right to ask questions about spectrum aggregation in a September NPRM (http://fcc.us/17gZuRg), since the last similar inquiry was 10 years ago. “There have been a lot of technological developments, changes in the mobile wireless marketplace structure, meaning a lot of consolidation,” he said. “There’s been an increased demand from consumers for mobile broadband services.”
Peraertz indicated that the FCC is looking closely at the Justice Department’s controversial April filing at the commission on spectrum aggregation and competition (CD April 15 p7) “The Department of Justice has great expertise in analyzing the structure of markets, as well as the dynamic functions of those markets,” he said. “The staff is going to take a careful look at what the Department of Justice said in its comments."
Former Rep. Rick Boucher, D-Va., agreed that the inquiry was timely, but disputed the need for spectrum caps. Allowing carriers to buy the spectrum they need “is really fundamental,” said Boucher, who chaired the House Communications Subcommittee. “The carriers need more spectrum. There’s a widely acknowledged spectrum shortage particularly in the urban centers in America,” he said at the event. “It is customer demand for mobile services that drives this need for greater spectrum availability. It really is a consumer issue.” Boucher is honorary co-chairman of the Internet Innovation Alliance, a sponsor of the event, where he spoke. The group’s members include AT&T and other high-technology companies.
The success of the incentive auction relies on all carriers being able to bid, Boucher said. “The more bidders ... the greater those revenues are going to be,” he said. “If the broadcasters have a sense that significant restrictions have been placed on the availability of bidders ... they're going to be less willing to [sell] spectrum."
Peraertz also said the FCC will consider additional changes to its infrastructure rules, similar to the commission’s 2009 shot clock on cell-tower zoning decisions. “What we're trying to do under the chairwoman’s tenure is to continue to push on infrastructure deployment,” he said. “Staff is considering, perhaps, recommendations from CTIA and others about making other changes to the infrastructure rules."
Peraertz also said the FCC will consider additional changes to its infrastructure rules, similar to the commission’s 2009 shot clock on cell-tower zoning decisions. “What we're trying to do under the chairwoman’s tenure is to continue to push on infrastructure deployment,” he said. “Staff is considering, perhaps, recommendations from CTIA and others about making other changes to the infrastructure rules.”