Promoting Spectrum Policies that Serve the Public

Issue
In February, President Barack Obama signed into law legislation authorizing the Federal Communications Commission (FCC) to conduct, for the first time, voluntary incentive auctions of spectrum, including broadcast TV spectrum.

Broadcasters successfully ensured that the law authorizing a spectrum incentive auction provided for entirely voluntary auctions, and did not harm the viewers who rely on local television by threatening their existing TV services or impeding new ones. Now, broadcasters are working to ensure that the FCC implements the law as Congress intended.

History
The 2010 FCC National Broadband Plan (NBP) recommended the reallocation of 500 MHz of spectrum for wireless broadband use, with 120 MHz, or 20 channels, coming from the spectrum currently allocated to local television broadcasting. Wireless companies and others in the wireless industry have been aggressively arguing that they must have access to new spectrum or else the nation will face a spectrum crunch, hampering the mobile economy.

Last February, Congress passed the Middle Class Tax Relief and Job Creation Act of 2012, which included language granting the FCC authority to hold spectrum incentive auctions. Congress incorporated provisions to safeguard local television service during a voluntary incentive auction process. As directed by Congress, the incentive auction of broadcast TV spectrum will have three major interrelated parts, including:

  1. A reverse auction in which TV licensees submit bids to voluntarily relinquish spectrum usage rights in exchange for payment;
  2. A repacking of the broadcast TV bands to free up a portion of the UHF band for alternative uses; and
  3. A forward auction of licenses for flexible use of the newly available spectrum, which will vary in amounts in different geographic locations.

On September 28, the FCC approved a lengthy and complex notice of proposed rulemaking (NPRM) to launch the auction process. In seeking comment on methodologies for repacking, the notice stresses that repacking is part of the process for determining which broadcaster bids will be accepted in the reverse auction, and will enable the FCC to configure part of the UHF band for flexible use. More specifically, the notice asks for comment on how to implement Congress' mandate to make "all reasonable efforts" to preserve the "coverage area and population served" of TV stations remaining after the auction. The FCC proposes to interpret"coverage area" to mean a full power TV station's "service area" as defined by FCC rules, and seeks comment on several approaches to preserving the population served.

Prior to the release of the notice, numerous members of Congress wrote to the FCC urging a transparent auction process and the importance of preserving a robust local broadcast system, including the entire Connecticut congressional delegation, both senators from Illinois; both senators and 22 House members from New York; and both senators and nine House members from Tennessee.

Additionally, members of the Tri-Caucus, representing more than 42 members of the Congressional Black Caucus, 17 members of the Congressional Hispanic Caucus and 15 members of the Asian Pacific Caucus, wrote to the FCC demanding no degradation of service to communities that rely on over-the-air TV more than the general population.

NAB Position
NAB continues to support voluntary spectrum incentive auctions. Truly voluntary auctions will ensure that viewers retain access to the local news, emergency information and quality programming on which they rely, and will also safeguard viewers' ability to take advantage of broadcast innovations on the horizon.

In a letter to FCC Chairman Julius Genachowski, NAB President and CEO Gordon Smith addressed broadcasters' concerns about spectrum auctions. Specifically, Smith urged the FCC to consider the following critical issues as it develops its incentive auction plan:

Action Needed
Congress should provide strong oversight to ensure that the FCC implements the voluntary incentive auction legislation as intended and that the viewer protections provided by the law are fully preserved.

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