Lots of Spectrum Could Be Cleared in Major Markets if FCC Gets Rules for Incentive Auction Right, EOBC Says

Simulations run by the Expanding Opportunities for Broadcasters Coalition suggest the FCC can reallocate at least 126 MHz of TV spectrum in New York and Los Angeles in the incentive auction “especially if it adopts the Coalition’s improved pricing formula,” the group said in a series of meetings at the agency Tuesday. “The initial clearing target should reflect this, reallocating as much unimpaired spectrum as possible in those two markets,” said an ex parte filing by the group, posted in docket 14-252. “This approach will maximize the value of spectrum in the forward auction and lead to the most efficient reallocation of spectrum nationwide.” The group argued that broadcasters and carriers broadly oppose dynamic reserve pricing (DRP), as proposed by the FCC. “By continuing to lower prices after a station should be frozen, DRP undermines broadcaster confidence in the integrity of the auction. Necessary impairment of the flexible use spectrum will be unavoidable in a limited number of border markets,” EOBC said. DRP is a “value destroying unnecessary impairment in a penny-wise/pound foolish attempt to save a few Dollars,” the group said.