July 25, 1995 FCC OPENS FIRST EVER AIRWAVE AUCTIONS The Federal Communications Commission today opened the bidding in the first ever auction of licenses to use the electromagnetic spectrum. Bidding in this first auction is for licenses in the narrowband Personal Communications Service (PCS), expected to be used for advanced paging and data transmission services such as two-way pagers and networked palmtop computers. The FCC will auction ten nationwide licenses this week, using electronic simultaneous multiple round bidding. Future auctions will be held for narrowband PCS licenses covering regional and other local areas. On Thursday and Friday of this week, the FCC will auction almost 600 licenses for Interactive Video Data Service (IVDS), an interactive broadcast service. Commissioner James H. Quello opened the bidding at 10 a.m. with a bang of the gavel that brought up the electronic bidding stations. Quello said today "Personal Communications Services will change the way we communicate. Narrowband PCS will provide for advanced paging and messaging services for an increasingly mobile and information-dependent society. We Commissioners share the vision of a robust competitive new personal mobile communications industry that will benefit the American people in the very near future. Today is the first step in actually implementing that vision." FCC Chief of Staff Blair Levin read a statement from Chairman Reed Hundt, in which the Chairman sad "Today we make history. Today we open a skylight and invite all Americans to gaze up and dream of a future with new wireless technologies that will enrich our lives, expand our economy and contribute to our national Treasury. In fact, in light of last week's anniversary, I am tempted to say that while today we might be taking one small step toward reducing the national debt -- we are making a giant leap toward increasing competition in communications and expanding our economy. This is truly a win-win-win day." Commissioner Susan Ness demonstrated several possible narrowband PCS products including a two-way pager with the following example: "Let's say one of you in this room today wanted to send a message that might read, 'The bidding is going higher than expected. Can we raise our line of credit by $5 million?' And back would come the response, "Done.'" Ness added, "These are just a few of the potential uses of this new spectrum. Other commercial offerings are limited only by the imagination of those of you bidding today." Shortly after ll a.m., Congressman Edward Markey, Chairman of the House Subcommittee on Telecommunications and Finance, announced that the total bids in the first round of bidding exceeded $100 million. Bidding for narrowband PCS will continue until there are no higher bidders. Bidding will begin each day at 9 a.m. Final winning bids will be reported on-site as soon as possible after the close of bidding. IVDS bidding will open at 9 a.m. on Thursday. "We're using brand new electronic bidding techniques to create a new generation of wireless services," said Jerry Vaughan, Deputy Chief of the FCC's Common Carrier Bureau and Head of the Commission's Auction Team. "Later this week we will use a traditional auction method to create another new service. These auctions prove the government can more quickly and flexibly to enable industry and entrepreneurs to bring new services to the market." The auctions are taking place at the Ommi Shoreham Hotel in Washington, D.C. The public can watch the bidding in person or electronically via the Dow Jones Telerate or obtain the results electronically from the Internet (anonymous FTP at fcc.gov). All of these systems are reporting the high bids for each round of bidding. However, official results are available only at the auction site. For more information on to receive daily closing prices, news media can contact the auction press room at (202)745-0850 (or 0857 or 0858). Others interested in these or future auctions should call the FCC auction hotline at (202)418-1400. -FCC-