700MHz Spectrum Auction  

CTIA Position:
The FCC’s 700 MHz Auction during Winter 2007 ended March 18, 2008 with winning bids covering 1,091 licenses. The Auction fetched more than $19 billion in revenues for A, B, C and E block licenses. The D block, a single nationwide license designed as a public/private partnership to construct a nationwide, broadband interoperable Public Safety network did not receive a bid high enough to exceed the required minimum reserve price. Because of this setback in auctioning the D Block, the FCC is currently considering new service rules for the D block to consider additional incentives for commercial carriers to construct the nationwide, broadband network, while still ensuring that Public Safety’s needs are met. Parties will comment on the FCC’s latest set of proposed rules during November 2008. Because the Commission will need to carefully consider the comments it receives and craft final rules for a subsequent auction, it is unlikely that the D Block auction will take place in 2008.

In its advocacy, CTIA emphasized that the Commission must consider the value of unencumbered spectrum as a potential contributor to achieve the goal of a nationwide public safety broadband network; reject eligibility restrictions; and resist mandating particular business models. CTIA supports a market-based, flexible-use approach that has continued to serve the public well.

Key Points:

• Deployment and Maintenance of a Nationwide, Interoperable Public Safety Broadband Network Will Be Extremely Costly. Congress and the FCC should remain mindful that unencumbered, flexible-use spectrum can serve as an important potential source of funding for a nationwide, interoperable public safety broadband network.
• The Commission Should Continue to Refuse Imposing Eligibility Restrictions. Existing competition continues to deter anticompetitive activity; new competitors are still able to gain entry into the market; and, eligibility restrictions for the D Block could deter broadband deployment and threaten spectrum efficiency.