Pai Seeks Congress’ Help to Fix Auction Pause

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FCC Chairman Ajit Pai wants to hold an auction of spectrum in the 28 GHz band in November, followed by a subsequent 24 GHz band auction; he wants to make it available for next-gen wireless use, including 5G.  But to do that, he needs the help of Congress.

Speaking at the Mobile World Congress show in Barcelona, Spain on Monday, Pai called on lawmakers to pass legislation to make it possible for the FCC to hold upfront auction payments in the U.S. Treasury. That needs to happen by May 13 in order to hold a November auction. He said it’s not a hindrance yet, “but if we don’t get the problem fixed, our efforts to realize America’s 5G future will be delayed.”  

The FCC has been working for a year to resolve incumbent licensee disputes, involving Straight Path and FiberTower, for example, on the bands the agency settled on to prepare for an auction. The law now requires auction up-front bidder payments to be placed in an interest-bearing account. But no private bank is willing to hold that amount of money and neither will the U.S. Treasury, FCC officials told reporters on Monday. Using multiple banks, as suggested by Commissioner Jessica Rosenworcel last week, is not a viable option because too many banks would be needed, they said. For the 600 MHz auction last year, the Federal Reserve helped out, but informed the agency it can’t do that again, officials said.

The agency has been working with both the House and the Senate on the issue; a legislative fix is contained in the FCC reauthorization bill recently passed by the House Energy and Commerce Committee, Inside Towers reported. “We are continuing to work with all parties to get this important legislation to the finish line,” said Committee Chair Greg Walden (R-OR) and Communications and Technology Chairman Marsha Blackburn (R-TN) in a statement.

Senate Commerce Committee Chairman John Thune (R-SD) previously introduced a fix. The Commission is working with both the House and Senate “on whichever vehicle they deem appropriate” to get the problem solved, said one official.

The FCC is also reviewing wireless siting and infrastructure regulation to streamline permitting processes. “We know 5G is going to be infrastructure intensive,” said Pai, who added that some project a 100-fold increase in small cells deployed in the U.S. Knowing that “regulations designed to address the siting of 200-foot cell towers are a poor match for small cells,” he cited the agency’s review of its wired and wireless infrastructure siting rules, which is ongoing. Pai said to watch for an announcement soon on next steps.  

By Leslie Stimson, Washington Bureau Chief, Inside Towers

February 27, 2018

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