An auction of airwaves that could be used to offer next-generation wireless services may be delayed -- again -- indefinitely, congressional staff members say.
The sale of 758 licenses to operate on the lower part of the 700 MHz band of spectrum is slated for Wednesday, June 19.
But members of Congress, as of Tuesday afternoon, clashed on whether to postpone a portion of the auction or to call it off indefinitely, staff members said.
Congress "wants to delay portions of the auction, but there's been a variety of lingering objections to the legislation," said Andy Davis, spokesman for Sen. Fritz Hollings (D-South Carolina), chairman of the Commerce, Science and Transportation Committee. "At this point they are trying to address the outstanding objections to approve the bill.
"Until they get the objections addressed, they won't get to move the bill."
At the urging of the wireless industry, Representatives Billy Tauzin (R-Louisiana), John Dingell (D-Michigan), Fred Upton (R-Michigan) and Ed Markey (D-Massachusetts) sponsored legislation that called for an indefinite delay of the sale of 700 MHz band of spectrum currently held by broadcasters that operate UHF TV channels 52 through 69. The broadcasters have until 2007 to move to digital signals.
The wireless industry, eyeing the spectrum to offer future wireless services such as high-speed mobile Internet on phones, has reservations about whether the broadcasters will vacate the band of spectrum in due time.
Some members of Congress are also concerned that the uncertainty may discourage big bidders such as Verizon Wireless from participating in the auction. All proceeds from the sale are deposited into the government's coffers.
But Ted Stevens (R-Alaska) proposed legislation that would let part of the sale go through to help rural mobile phone carriers. The numerous rural carriers that applied to participate in the auction like Arctic Slope Telecommunications and Cellular Inc., as well as firms backed by money manager Mario Gabelli and cable mogul Paul Allen, also favor the auction to move forward.
A source close to Stevens said the senator also opposed an indefinite delay of the auction because the Federal Communications Commission that runs spectrum auctions -– and not Congress -- should decide when the auction will be held.
As of late Tuesday afternoon, Stevens was negotiating a possible compromise to delay the auction for 60 to 90 days, the source said.
In order for the FCC to cancel the auction on Wednesday, Congress would need to pass the bill and have President Bush sign it by Tuesday night.
This auction "has been postponed several years," the source said. "The money should have been in the treasury a long time ago."
An FCC spokeswoman said the auction would move forward as planned. She declined to comment on the pending bills in Congress.
Unwired News: The Next Generation
