NANC Floats Changes After FCC Toll-Free Number Auction Issues

The FCC should consider changing the way it auctions toll-free numbers, said a North American Numbering Council Toll-Free Assignment Modernization working group at NANC's virtual meeting Tuesday. NANC members voted OK on the report now, after December's auction of toll-free 833 numbers (see 1912200065). Under the single-round Vickrey model used, participants bidding the highest amount won the auction but paid the second-highest amount bid. Fewer than 2% of numbers up for auction received more than a single bid, said WG co-chair and economist Susan Gately: Winning bidders without a competitive bid paid nothing. "That suggests there is something wrong with the utility of the process," she said. She recommended discarding the model in future toll-free number auctions. Gately suggested there should be a minimum bid, perhaps of $1,000, so revenue covers the cost of auctions and ongoing administration. Single bidders might be pulled from the auction and assigned the toll-free number without the ability to resell it, she said. Only 833-333-3333 received at least 10 bids. NANC members said it's premature to address our questions on how and when a new toll-free numbering administrator might be considered, after iConectiv filed a petition (see 2006300003).