NEWS April 5, 1996 FCC HITS $20 BILLION MARK IN TOTAL AUCTION REVENUES As of today, the FCC has reached the $20 billion mark in total auction revenues to be deposited with the U.S. Treasury. The agency has completed a total of six spectrum auctions and two others are still in progress. These auctions include: Nationwide Narrowband PCS, Interactive Video and Data Services, Regional Narrowband PCS, Broadband PCS (A and B Blocks), Direct Broadcast Satellite, Multipoint Distribution Service, 900 MHz Specialized Mobile Radio and Broadband PCS (C Block). In 1993, Congress gave the FCC authority to conduct spectrum auctions. At that time, the House Budget Committee estimated that auction receipts over a five-year period would reach $10.2 billion. In 1994, the Congressional Budget Office estimated five-year auction receipts at $8.1 billion while the Office of Management and Budget estimated auction receipts at $12.6 billion. "We have exceeded all expectations," said FCC Chairman Reed Hundt. "Auctions have proven once again to be a success not only by awarding licenses to those that value them the most, but also by decreasing the national debt." The Multipoint Distribution Service (MDS) Auction, which just closed last week, contributed $216 million to this total. "This auction brought 67 new entrants to the MDS marketplace, 61 of which claimed small business status," said Michele Farquhar, Acting Wireless Telecommunications Bureau Chief. "This has been a real success in terms of providing incentives for small players, creating jobs for the American public, and introducing more competition in the wireless and video marketplace." The on-going auctions include the 900 MHz Specialized Mobile Radio (SMR) and the Broadband PCS C-Block or "Entrepreneurs" block auction. To date, the 900 MHz SMR auction has raised $200 million. In this auction, licenses won will be used for dispatch and other sophisticated mobile data and voice services. The PCS C-Block has raised $9.8 billion. Licenses in this auction will be used for a broad range of voice and data services. - more - - 2 - The FCC's upcoming auction schedule is very active. This summer it plans to auction the spectrum for the Personal Communications Services D, E and F Blocks. Licenses in this service will award winners with 10 MHz spectrum to be used for PCS. - FCC - News Media Contact: Kara Palamaras at (202) 418-0654 Wireless Telecommunications Bureau contact: Amy Zoslov at (202) 418-0660