AT&T Proposes Plan for 39 GHz Spectrum Auction for 5G
AT&T proposed a plan for a high-frequency spectrum auction to consolidate spectrum holdings, especially in the 39 GHz band, one of the first set for sale. A challenge to millimeter wave bidding is that incumbents have holdings “scattered throughout the band, typically in 50 MHz chunks,” blogged Hank Hultquist, vice president-federal regulatory. “Incumbents hold different types of geographic licenses that in many cases overlay each other. In order for the auction to be successful, the FCC must find a way to reorganize the band into block sizes that are more favorable for 5G, ideally 200 MHz blocks, and maximize the number of blocks.” AT&T proposed vouchers to incumbent licensees based on number of MHz/POPs they hold. Values would be set by bidding in the allocation phase. Hultquist said Tuesday the plan puts licensees on a level playing field. “It provides an elegant solution to the mish-mash of existing holdings in a way that maximizes the value and usability of the band,” he wrote. “By guaranteeing contiguity to successful bidders, the proposal allows winning bidders to maximize the bandwidth that will ultimately be available to consumers.” FCC officials say they can hold no major spectrum auctions until Congress approves legislative language that would let auction deposits be sent directly to the Treasury Department (see 1710240065). AT&T laid out the plan in a paper filed Tuesday in docket 14-177, by economists James Bono and Allan Ingraham of Economists Inc.
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The Competitive Carriers Association, still reviewing the proposal, “wholeheartedly agrees that millimeter wave spectrum is key to the roll-out of 5G technologies,” said President Steve Berry. “The FCC should recover and re-auction this valuable taxpayer-owned resource -- including FiberTower’s terminated licenses that AT&T is trying to acquire -- for the benefit of wireless providers and consumers.” CCA supports use of smaller geographic license areas and applauds the FCC’s recent decision to license the 47.2-48.2 GHz band in 200 MHz blocks, he said. “As AT&T notes, adequately protecting incumbents will be a unique ‘challenge to a millimeter wave auction,’ and vouchers alone may not be enough,” Berry said. “If interested in a level playing field … the FCC should set appropriate safeguards and expeditiously move forward with a mmW auction in which all carriers can meaningfully participate.”