FCC Says It's 'Encouraged' By Form 177 Broadcaster Reverse-Auction Participation

Broadcaster participation in the Form 177 window for the reverse auction has “encouraged” the FCC, said Incentive Auction Task Force Chairman Gary Epstein in a statement Wednesday. The deadline for such applications was 6 p.m. Tuesday. Though numerous broadcaster and industry officials told us their sense was that participation was robust, they also said participation in the Form 177 window doesn’t necessarily equate to a high amount of spectrum going in the auction.

The FCC billed the Form 177 window as a no-risk opportunity for broadcasters, several attorneys noted. Filing an application by Tuesday was a requirement for participating in the incentive auction, but those who did so still have the option to back out before the March 29 final deadline, said FCC staff at the agency’s reverse auction workshop (see 1512080065). FCC officials and incentive auction proponents encouraged broadcasters to file during the Form 177 window to keep their options open, TV station lawyers told us Wednesday, so the number of applications received now doesn’t directly foretell auction participation.

Tuesday’s Form 177 deadline also signaled the start of the “quiet period” required by the incentive auction’s anti-collusion rules, making it difficult to know the actual amount of auction participation. Lawyers told us they expect the FCC to release some general numbers about Form 177 filings if the numbers are high. It’s in the commission’s interest to encourage wireless participation in the forward auction, they said.

Some attorneys and industry officials told us they felt wireless participation in the auction was more of a question than on the broadcast side. Guggenheim Partners analyst Paul Gallant said many investors are “assuming broadcaster participation will be more than adequate.” The issue of whether there will be “a price match” from wireless buyers is more of an open question, he said. “We’ll be reviewing those applications and preparing to open the window for the forward auction wireless bidders on January 26th,” Epstein said.