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Fact Sheet on Upcoming Proceedings Related to the Incentive Auction

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Released: May 15, 2014

FACT SHEET: SUMMARY OF UPCOMING PROCEEDINGS RELATED TO THE

INCENTIVE AUCTION

May 15, 2014

In today’s Incentive Auction Report and Order (R&O), the Commission adopted rules to address
important issues related to the Incentive Auction and the resulting reallocation of spectrum in the
600 MHz Band.
Consistent with its past practice, the Commission will resolve discrete outstanding issues and
final auction procedures as part of a pre-auction process that will solicit Commission and public
input. This process will conclude well in advance of the Incentive Auction. In addition, the
Commission will commence several additional proceedings to address a variety of matters
related to the auction.

Incentive Auction Pre-Auction Process

Auction Comment Public Notice


 In the months following the adoption of the R&O, the Commission will issue a Public Notice
seeking comment on the implementation of the rules established in the R&O.
 This Comment PN will seek comment on a variety of issues, including:
o Opening Prices – The methodology for determining the starting prices offered to
broadcasters for each bidding option, and the minimum opening bids for licenses to be
offered in the forward auction.
o Bid Adjustment Factors – The factors, such a station’s potential for interference with
other stations, that affect the value of stations in clearing spectrum.
o Bidding for Aggregated Markets in the Forward Auction. Whether certain Partial
Economic Areas (PEAs) should be aggregated into a single license for bidding purposes
o Final Stage Rule – The specific benchmarks (a price per-MHz-pop and amount of
spectrum) for the final stage rule, which will determine whether a particular stage of the
auction is the closing stage.
o Market Variation - How much market variation to accommodate under different
spectrum recovery scenarios.
o Parameters for price changes from round to round. How prices will be reduced as
rounds progress in the reverse auction and increased as rounds progress in the forward
auction.
o Activity rules. Standards for bidder activity in each round to assure that bidders bid
throughout the auction and to keep the auction moving at a reasonable pace.
o Upfront payments and bidding eligibility. Typically used in FCC spectrum auctions and
related to activity requirements.

Auction Procedures Public Notice

– After the Commission considers the public input received
in response to the Comment PN, it will make final determinations and provide detailed
explanations and instructions for potential auction participants in the Procedures PN.
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Related Policy Items Adopted on May 15, 2014

Mobile Spectrum Holdings R&O

– The Commission adopted a Report and Order that modified
the its policies and adopted rules, including for the Incentive Auction, regarding the aggregation
of spectrum for mobile wireless services through initial licensing and secondary market
transactions.

Wireless Microphones 2nd R&O

– The Commission adopted a Report and Order that provided a
limited expansion to the class of wireless microphone users eligible for a license.

Future Related Proceedings

Interference Issues.

The Commission will adopt rules to prevent harmful “inter-service
interference” between television and wireless broadband operations in the same or adjacent
frequencies after the auction and repacking, and determine whether the repacking process should
include a cap on aggregate interference to a broadcast station from other stations. The
Commission has already provided opportunity for public comment on these issues.

Low-Power Television (LPTV)/TV Translator Proceeding

– The Commission will consider
measures to help alleviate the impact of LPTV and TV translator station displacements resulting
from the Incentive Auction.

Part 15/Unlicensed Use Proceeding

– The Commission will consider changes to the
Commission’s existing Part 15 rules to facilitate the use of TV White Space devices in the
remaining television spectrum, in the 600 MHz Band guard bands and on Channel 37.

Wireless Microphone Future Options Proceeding

– The Commission will address the needs of
wireless microphone users over the longer term, both inside and outside of the television bands.

Designated Entity (DE) Proceeding

– The Commission will review the Commission’s Part 1 DE
rules, including the potential application to the Incentive Auction.
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