FCC to hold 700 megahertz auction in June
from yesterday, didn't notice it here yet. Coot
WASHINGTON, Oct 16 (Reuters) - The Federal Communications said this week it will hold in June a much-delayed auction of valuable airwaves currently used by broadcasters but coveted by wireless telephone companies eager to offer wireless Internet, data and video services.
The auction, originally set for May 2000, now is scheduled for June 19, the agency said on Monday.
Twelve licenses will be awarded in the June auction. The FCC said the spectrum would be suitable for high-speed data services, and for fixed-wireless service in more remote areas.
The sale had been delayed four times amid questions over exactly when and how broadcasters would vacate the airwaves as they move to digital signals.
Wireless telephone companies had said they were hesitant to bid since it was unclear when the spectrum would be available for use. Verizon Wireless, the No. 1 U.S. wireless telephone company, and others were jolted earlier this year by another uncertain auction.
An appeals court ruled that the FCC had violated bankruptcy laws when it re-auctioned airwaves owned by bankrupt Nextwave Telecom Inc. for $15.8 billion. The wireless companies are close to a deal with Nextwave to end the protracted battle, a source familiar with the negotiations said on Tuesday.
In the auction set for June, broadcasters occupying channels 60 to 69 do not have to move off the 700 megahertz spectrum until the end of 2006, or later.
Despite the higher signal quality, the transition to digital has been slow because digital televisions cost more than $1,500, while converter boxes run about $550.
Paxson Communications Corp. <PAX.A>, the largest group operator of stations using the spectrum with 17 stations, the has proposed that auction bidders pay broadcasters to vacate the airwaves ahead of schedule.
"Broadcasters are poised to complete arrangements required for early clearing of the band as well as furthering the transition to digital television," said Paxson Chairman Lowell "Bud" Paxson. "The telcos now have a specific date to build into their business plan for acquisition and utilization of new spectrum."
Paxson retained investment bankers Allen & Co. to help it and another 100 television stations negotiate compensation and schedules for clearing the the airwaves.
The FCC last month agreed to modify its rules to encourage private deals for broadcasters to clear the airwaves. The agency relaxed certain deadlines for broadcasters which agree to give up a channel as part of the effort to clear the band.
20:35 10-16-01 |
