FCC Chairman Ajit Pai proposed accelerated relocation payments of up to $9.7 billion for C-band incumbents to clear the band quickly for an auction to start Dec. 8, in a speech (see 2002060031) Thursday at the Information Technology and Innovation Foundation. Those would be above compensation for relocation costs, estimated to be between $3 billion and $5 billion, he said. Pai has the three votes he needs for approval at the commissioners' Feb. 28 meeting (see 2002060048) with quick endorsements of Commissioners Mike O’Rielly and Brendan Carr.
Wireless Spectrum Auctions
The FCC manages and licenses the electromagnetic spectrum used by wireless, broadcast, satellite and other telecommunications services for government and commercial users. This activity includes organizing specific telecommunications modes to only use specific frequencies and maintaining the licensing systems for each frequency such that communications services and devices using different bands receive as little interference as possible.
What are spectrum auctions?
The FCC will periodically hold auctions of unused or newly available spectrum frequencies, in which potential licensees can bid to acquire the rights to use a specific frequency for a specific purpose. As an example, over the last few years the U.S. government has conducted periodic auctions of different GHz bands to support the growth of 5G services.
Latest spectrum auction news
FCC Chairman Ajit Pai proposes holding Phase I auctions for the Rural Digital Opportunity Fund on Oct. 22. Pai circulated a public notice among commissioners Thursday proposing procedures for the Phase I auctions, which would allot up to $16 billion of the $20.4 billion USF rural broadband program, he blogged, outlining his agenda for the Feb. 28 meeting. The RDOF auction procedural PN is one of eight items for what Pai is calling "spectrum month." Drafts are expected to be released Friday. Pai's proposal Thursday to pay up to $9.7 billion to C-band incumbents to free the spectrum for a Dec. 8 auction (see 2002060057) will lead the February meeting.
The amount satellite operators would receive to exit the C band on an expedited basis appears to be in flux headed into FCC Chairman Ajit Pai’s big unveil Thursday of his proposal. Some at the FCC earlier appeared to take a hard line, suggesting a $5 billion incentive payment for all operators (see 2001290049). Pai may be willing to offer a higher amount but less than $10 billion.
Communications sector officials and lobbyists see President Donald Trump’s mention in his Tuesday night State of the Union of prioritizing broadband access improvements (see 2002040070) as a net positive for policymaking efforts on and off Capitol Hill, but also likely having limited effect. Several believe it will draw further attention to existing work at the FCC, Department of Agriculture and Congress. They noted that probably won't change fundamental hurdles likely to prevent lawmakers from advancing an infrastructure funding legislative package before the Nov. 3 presidential election (see 2001240001).
Attorney General William Barr moves Office of Information Policy acting Director Bobby Talebian to permanent post, replacing Melanie Ann Pustay, retired ... Facebook hires Dan Ball, ex-office of Sen. Roger Wicker, R-Miss., as public policy director ... Phone2Action adds Faisal Siddiqui, ex-Virtru, as chief technology officer; Marina Devalia, ex-Higher Logic, as vice president-marketing; Matt Melnick, ex-Vocus, as senior vice president-sales; and Shelli Holland, from Frontpoint, is vice president-human resources.
With the FCC later this week expected to reveal details of moving satellite operators off some of their spectrum to free it up for 5G (see 2002030061), several filings were posted Tuesday. Incumbents in that swath of airwaves, plus carriers and NAB, filed in docket 18-122. So, too, did Cox Communications (see 2002040026).
Questions remain whether the FCC will agree with NTIA that DOD should receive compensation under the Commercial Spectrum Enhancement Act (CSEA) for its costs to make changes needed for sharing in the 3.5 GHz citizens broadband radio service band. The FCC is part of a technical panel, with NTIA and OMB, that last year endorsed the costs. It hasn't issued a public notice required under the CSEA.
FCC Commissioner Mike O’Rielly’s concerns C-band rules give incumbents adequate incentives to voluntarily move is emerging as a key question as Chairman Ajit Pai prepares to unveil his proposal Thursday, for a vote at the Feb. 28 commissioners’ meeting. Industry and FCC officials told us O’Rielly’s support is critical and Democrats Jessica Rosenworcel and Geoffrey Starks may be unlikely to cut a deal with Pai to bypass O’Rielly support, though they're willing to talk. Pai will lay out his vision Thursday at a lunch event at the Information Technology and Innovation Foundation. Also see here.
Charter Communications will offer 5G mobile service this quarter, said CEO Tom Rutledge on a Q4 call Friday. It's "likely to participate" in the upcoming citizens band radio service spectrum auction, he said. Asked whether Charter would ever move to its own wireless network instead of relying at least partly on a mobile virtual network operator, Rutledge said it depends on pricing. He said it has no immediate plans to change its Verizon MVNO relationship, and anticipates it existing "for years to come." Rutledge said 10G investments will be done incrementally over time, and won't require an immediate network overhaul, saying Charter surpassed 10G capabilities in lab testing. Q4 revenue of $11.8 billion rose 4.7 percent year over year. It ended 2019 with 24.9 million residential broadband customers, up 5.4 percent, 15.6 million video customers, down 3 percent, and 9.4 million voice customers, down 6.8 percent. It has 1.08 million mobile lines, compared with 134,000. The stock closed up 5 percent to $517.46.
House Democratic leaders proposed $98 billion in funding over five years for broadband and next-generation 911 projects as part of a new infrastructure plan released Wednesday. Infrastructure Committee Chairman Peter DeFazio of Oregon, Ways and Means Committee Chairman Richard Neal of Massachusetts and Commerce Committee Chairman Frank Pallone of New Jersey released the $760 billion plan. It took the form of a framework, contrary to earlier expectations for a bill (see 2001160063).