Pai Advisor: FCC Can't Hold Another Big Spectrum Auction

A top advisor to FCC Chairman Ajit Pai says that the FCC could not hold another big spectrum auction like the broadcast incentive auction of the previous AWS-3 wireless spectrum auction, both of which freed up spectrum for more and faster wireless broadband.

That came in a speech by Rachael Bender to the 6th Annual Americas Spectrum Management Conference in Washington.

The potential "stumbling block" on the path to the rollout of 5G mobile broadband, she said, is that while the law allows the FCC to keep auction upfront payments in an interest-bearing account, as a result of financial regulations on collateralizing deposits, no financial institution is willing to hold such payments in an interest-bearing account.

As a result, she said flatly, "So the Commission currently has no way to comply with the law or move forward with a large spectrum auction."

She said the good news is an FCC reauthorization bill that was referred to the full House Energy & Commerce Committee this week.

One provision of that multi-provision bill would fix the issue and clear the way for more auctions, she said.

The bill would direct the upfront payments to be held by the Treasury instead.

"Getting this proposal signed into law would have a big impact on our ability to move forward with the mid-band and high-band spectrum auctions that are necessary for 5G deployment," she said.

The bill was referred unanimously, but there remain issues that will have to be hammered out in full committee said some Democrats this week. Those include how much funding will go to broadcasters for repacking their channels in the wake of the FCC's most recent big auction, the broadcast incentive auction.

John Eggerton

Contributing editor John Eggerton has been an editor and/or writer on media regulation, legislation and policy for over four decades, including covering the FCC, FTC, Congress, the major media trade associations, and the federal courts. In addition to Multichannel News and Broadcasting + Cable, his work has appeared in Radio World, TV Technology, TV Fax, This Week in Consumer Electronics, Variety and the Encyclopedia Britannica.