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Incentive Auction Task Force Update

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Released: June 27, 2013

INCENTIVE AUCTION TASK FORCE UPDATE

June 27, 2013
1

MULTIPLE PUBLIC INTEREST OBJECTIVES


1. Relieve Spectrum Crunch

Repurpose maximum amount of UHF 2.5

h

U.S. Mobile Data Traffic Predicted Growth

spectrum for licensed and unlicensed
2.0
flexible use

per Mont
1.5

2. Provide for a Healthy Broadcast
tes 1.0

Industry


Exaby

Provide unique financial opportunity

0.5
for participants and preserve service
0.0
for nonparticipants
2012 2013 2014 2015 2016 2017
2

Source: Cisco VNI Global Mobile Data Traffic Forecast, 20122017


MULTIPLE PUBLIC INTEREST OBJECTIVES (CONT.)



3. Statutory Fiscal Objectives

Reimburse repacked broadcasters, fund FirstNet, and deficit reduction


4. Promote Innovation and a Vibrant Mobile Market

3

PRE-SPECTRUM ACT - LONG-TERM PREPARATION



1. 2010 National Broadband Plan Proposed incentive auction concept

2. 2011 Long-Term Prep Engaged in long-term planning and preparation

3. 2011 Cross-Border Discussions Commenced cross-border discussions on
the Incentive Auction through preexisting international consultative
channels

4

KEY MILESTONES 2012


Placeholder timeline slide
5

PRE-NPRM PLANNING



1. IA Task Force (One month after Spectrum Act Enactment) Formed special multi-
bureau task force to spearhead the Incentive Auction proceeding

2. Auction Experts (One week after forming Task Force) Announced retention of top
auction design and economic experts

3. Channel Sharing Order (Two months after Spectrum Act Enactment) Adopted

Channel Sharing Order, allowing multiple broadcast stations to stream individual
programming while sharing a single channel

4. NPRM Adopted September 28, 2012

6

EXTENSIVE PUBLIC ENGAGEMENT


Commissioners and Staff
have participated in over
150 Incentive Auction-
related events and
meetings since the
enactment of the Spectrum
Act

http://fcc.gov/learn
7

PUBLIC ENGAGEMENT SIGNIFICANT EVENTS OF

2012-2013

1.

Channel Sharing Workshop Explored financial and strategic opportunities presented by channel sharing and
challenges and potential solutions for broadcasters considering sharing

2.

Reimbursement Fund Workshop Explored possible design of process to reimburse broadcaster costs resulting
from incentive auction-related channel reassignments

3.

LEARN Workshop: NPRM Overview Provided overview explanation of proposals contained in Incentive Auction
Notice of Proposed Rulemaking


4.

SIEPR Conference Participated in a conference hosted by the Stanford Institute for Economic Policy Research
(SIEPR) to explore auction design principles with world-leading auction experts

5.

Band Plan Workshop Examined technical issues relevant to the design of the 600 MHz band plan

6.

Industry Conferences Panel participation at industry conferences, including CES, NAB Show, NCTA Show, and
others

8

SIGNIFICANT PROGRESS JANUARY TO JUNE 2013

9

OET-69

1. OET-69 - Longley-Rice Methodology for Evaluating TV Coverage and Interference
2. Feb. 4, 2013 Public Notice invited comment on new TV Study software:

a)

Software is based on same methodology as OET-69

b)

Software includes options:


Population data

Level of precision of geographic

Terrain data

coordinates

Treatment of inaccurate data in FCC

Establishment of calculation (cell) grid


database

Treatment of internal (Longley-Rice)


Treatment of antenna beam tilt

warnings

Calculation of depression angles


3.

Evaluating comments

10

Band Plan


1.

Multiple Band Plan proposals in NPRM

2.

Over a dozen Band Plan proposals in the record

3.

Band Plan workshop advanced understanding of

technical issues

4.

Public Notice solicited comment on how best to

accommodate market variation

11




MARKET VARIATION: ILLUSTRATION

12

BROADCASTER TRANSITION

1. Contracted with Widelity for preliminary review of:

Range of unit costs for equipment replacement


Sourcing and timing of replacement equipment availability


Logistical challenges of limited tower crews

2. Collecting internal data on installed base of equipment to estimate
replacement costs.
3. Evaluating various policy approaches (e.g., payments in advance or in
arrears, provisions for public television stations, etc.)
4. Exploring tax treatment of various approaches to reimbursement
13

NEXT STEPS


1.

Developments in Repacking


2.

Advances in International Coordination


3.

Encourage Channel Sharing



14



DEVELOPMENTS IN REPACKING


Release data files and details of an

approach to determine permissible
channel assignments in the repacking
process, as well as additional data to
facilitate independent analysis and
public input

15

ADVANCES IN INTERNATONAL COORDINATION


1. Continue staff-level meetings with Canadian and

Mexican regulators

2. Continue contacts by Chairwoman Clyburn with
high-level Canadian and Mexican officials

3. Increase consultation with U.S. Industry
16




ENCOURAGE CHANNEL SHARING


1. Continue recognition of the "Prime Directive"
facilitate broadcaster participation

2. Develop STAs and waivers of the Commission's
rules to facilitate pilot projects

3. Encourage channel sharing pilot projects

17




THE INCENTIVE AUCTION TASK FORCE IS:


1.

Working steadily to provide options for the Commission in the design of
the auction and development of auction rules

2.

Engaging with interested parties, receiving substantial input, and
continuing to provide the public with opportunities to contribute to the
record and inform the rulemaking process

3.

Continuing to work towards providing a record to allow the Commission to
adopt a Report and Order in 2013 and hold the broadcast incentive auction
in 2014

18

INCENTIVE AUCTION TASK FORCE UPDATE

June 27, 2013
19

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