"Every dollar that we can provide Congress with through the sale of spectrum the closer they are to reaching their target,
Apple Macbook Pro MC847LL/A, and they don't have to cut anything or increase taxes to do it,
Toshiba Portege R700-S1332 PT311U-01202V," said one lobbyist who didn't want to be named.
The National Association of Broadcasters breathed a sigh of relief that spectrum auctions are not included in the current debt ceiling plan.
"While heavy lobbying will continue in the next three months,
Canon XL H1S, we still expect Congress to give the FCC spectrum auction authority and provide new funding for a public safety network in late 2011 (likely as part of phase 2 of the deficit reduction process),
HP EliteBook 8540p XT923UT," he said in a research note today. "Because of the strong fiscal and policy (i.e. public safety) appeal of the spectrum provisions,
Dell XPS 15-L502X, we believe the Special Committee is likely to include spectrum auction authority in the bill it presents to Congress for a straight up-or-down vote on December 23,
Sony HXR-MC50U, 2011."
The two big questions are when would legislation pass authorizing the FCC to go ahead with the auctions and how much money would it make for the government? These are the details that will likely get worked out over the next few months as Congress' "super committee" works on a plan. Meanwhile,
Sony HXR-NX5U, Rockefeller and Hutchison will likely continue to push their bill further. And House Republicans Reps. Greg Walden (R-Ore.) and Fred Upton (R-Mich.) are also working on drafting legislation to authorize spectrum auctions.
The proposed debt ceiling bill that Congress is expected to pass in the next day or so will not give the Federal Communications Commission authority to auction additional wireless spectrum. But that doesn't mean that wireless incentive auctions are dead.
But the provision was not included in the deal that Democrats and Republicans hammered out over the weekend. And it's unlikely that it will make its way in before the voting. TV broadcasters may view this as a victory. They did not want spectrum auctions included in the debt ceiling bill because it would have lacked detailed plans to ensure that the remaining spectrum used for TV broadcast would not be harmed.
The lead Democrat in the Senate,
HP EliteBook 8440P XT918UT, Harry Reid, had originally included the the wireless auction authorization in his proposal because it offered revenue without much of a downside. Under his proposal the Congressional Budget Office estimated the government could make $12 billion in revenue from wireless auctions,
Canon Optura Xi, which would include spectrum that TV broadcasters would voluntarily give up to the FCC in exchange for a cut of the proceeds. The spectrum would then be auctioned to wireless broadband providers.
Wireless experts in Washington,
Canon EOS 1D Mark IV, D.C. say Congress could tack on the authorization for the FCC to conduct spectrum auctions to a package that may emerge later this year from the bipartisan deficit-reduction panel created by this week's debt agreement. President Obama said the "super committee,
Lenovo ThinkPad X201T," which will consist of six Democrats and six Republicans,
Panasonic AG-HMC40, will prepare a bill by November 23 that can be voted on without any amendments by December 23. This new legislation must find a way to make cuts for reducing the deficit that total $1.5 trillion.
That said, the idea of auctioning off spectrum to make money for the government already has a lot of support from members of Congress on both sides of the political aisles. The Rockefeller-Hutchison spectrum bill passed through the Senate Commerce Committee by a 21-4 vote,
Sony HVR-HD1000U, which Gallant said is an indication that there is strong bipartisan support. The Obama Administration has also made expanding wireless spectrum as a priority. As such,
Canon Vixia HF11, Gallant said in his note that even if the bill doesn't make it into the special committee's legislation,
Panasonic AG-HMC150, "the odds would still favor passage of a spectrum bill through the normal committee process."
"We are pleased that the negotiated debt ceiling bill, to be considered by Congress,
Sony HDR-TD10, does not threaten free and local broadcasting,
Canon Normal EF 50mm f/1.2L USM Autofocus Lens," NAB President Gordon Smith said in a statement. "NAB will continue working with lawmakers on incentive auction legislation that is truly voluntary. Our goal is to ensure that TV stations choosing not to go out of business will be held harmless,
Thinkpad w520, and that tens of millions of Americans who enjoy local news,
Canon EF 24-70mm f/2.8L USM Standard Zoom Lens, entertainment,
ThinkPad W510, sports and life-saving weather warnings from broadcasters will not be penalized."
Wireless spectrum auctions could be a good way to add some money to the government's coffers without increasing or adding new taxes. One lobbyist for the wireless industry put it like this:
Reid's proposal also would have left out funding for public safety as part of the auction requirements. By contrast a standalone bill sponsored by Sens. Jay Rockefeller (D-W.Va.) and Kay Bailey Hutchison (R-Texas) has already passed through the Senate's Commerce Committee this June and allocated some spectrum worth roughly $3 billion to be donated to public safety to build a nationwide first responder wireless network. The bill also included about $12 billion in funding to build the network.
Paul Gallant,
Panasonic AG-HMC70, an analyst with MFGlobal,
Panasonic AG-HVX200A, agreed that spectrum authorization would be a good candidate for inclusion in the "Super-Congress" bill.
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