FCC Should Let Market Determine Auction Outcome, Says EOBC
The FCC’s proposed pricing structure for broadcasters in the incentive auction reflects “a belief that the Commission, rather than the market, is the best determinant of auction outcomes,” said the Expanding Opportunities for Broadcasters Coalition in comments filed Thursday. A…
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pricing formula that prioritizes any factor other than interference “will lead to distorted auction results and an inefficient reallocation of spectrum,” said EOBC. The FCC shouldn't delay the auction, EOBC said. “Given the many years that it will take to complete the auction, the repacking of broadcast television stations, and the reallocation of spectrum, the Commission cannot afford to delay the auction any further, nor should it,” the filing said. The FCC also should abandon its plan to use dynamic reserve pricing because it will impair spectrum, EOBC said. “Using DRP to impair spectrum before putting it up for auction is like beating your car with a sledge hammer before taking the photo to sell it on Craigslist,” EOBC said. The commission should share information with broadcasters to encourage auction participation, said the filing: “It must also adopt small, predictable price decrements and intra-round bidding so that bidding activity most closely resembles the actual value that stations place on their spectrum.” The coalition Wednesday released a study it commissioned Kagan Media Appraisals to do which said the auction could raise as much as $80 billion (see 1502180061).