FCC AUCTION OF ANALOG TV SPECTRUM NETS $19.6B

After 261 rounds of bidding since Jan. 24, the auction of spectrum being freed up by broadcasters' DTV transition closed with the total take nearly doubling congressional estimates, FCC Chairman Kevin Martin announced last night.
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TVNewsCheck,

The auction of spectrum being freed up in TV stations' move to digital broadcasting generated a record $19.6 billion, nearly double congressional estimates, FCC Chairman Kevin Martin announced last night.

The previous record for spectrum auctions was $13.9 billion in 2006.

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The record was set, even though the reserve price for one of the five available block of spectrum was not sold, Martin said in a prepared statement.

“The eight unsold licenses in those blocks remain held by the FCC and will again be made available for commercial bidding in a future auction.”

The FCC began the auction on Jan. 24 and presided over 261 rounds of bidding among companies that plan to use the spectrum for broadband wireless communications.

“The 700 MHz spectrum is attractive to both industry and public safety organizations because it is especially well-suited for wireless broadband, is capable of carrying large amounts of data, can travel far distances, and easily penetrates walls with great efficiency and speed—allowing for more effective and reliable wireless communications,” Martin said.

“The next generation of wireless networks to be deployed in the 700 MHz band will be faster than those available today, and they will extend to both urban and rural areas of the country.

“Wireless broadband will be able to reach unserved areas of the country, and it will bring increased competition to the broadband sector that is currently dominated by DSL and cable providers.”

TV stations have been simulcasting on two channels—one analog and one digital—for several years as part of an FCC plan to transition them from analog to digital.

The auctioned spectrum is now being used by stations for their analog service, but they are required by law to give it up on Feb. 17, 2009, and cut over to digital-only operation.

Auction winners will gain access to their spectrum after the planned analog cut-off.

Martin said he would send the U.S. Treasury a check for $19.6 billion by June 30.

Part of the proceeds—up to $1.5 billion—have been earmarked for the government digital-to-analog converter discount program.

Under the programs, Americans may apply for $40 coupons that may be used toward the purchase of converters that will allow them to watch digital broadcasts or their old analog TV stations.

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