The 2014 National Association of Broadcasters show was a little tense as broadcasters felt they were being bullied into giving up their spectrum to the mobile carriers. FCC Chairman Tom Wheeler spoke at last year’s NAB explaining that they weren’t conspiring against broadcasters to give preferential treatment to mobile carriers. Wheeler spoke at the 2015 NAB held last week in Las Vegas. “Now, I’ve heard and read how some believe the FCC has been ignoring broadcasting in favor of shiny new baubles such as the Internet,” Wheeler began. As he discussed the importance of the Open Internet Order, he seemed to be placating the broadcasters in the crow. “Local TV and radio broadcasters are still the most important source of breaking news in our cities and neighborhoods. Broadcasters are the first place we turn in times of emergency,” Wheeler said. “Broadcasters also play a critical role in local economies, connecting people to businesses and commerce like few other mediums can.” Wheeler’s speech was fairly long, but he finally got around the 2016 Incentive Auction. “After five years of speculating about the Incentive Auction, it’s about to get real. I couldn’t be more pleased that the broadcasting industry is engaged in a productive dialogue with the FCC about the auction. We are making every effort to provide information about how it will work, including estimates of the potential financial benefits of participating. Last year, I described the auction as ‘a once-in-a-lifetime, virtually risk-free opportunity to expand your business model on somebody else’s dime.’ I don’t see any reason to amend that conclusion,” Wheeler said.
After the AWS-3 auction closed in January of this year, it seemed that much of the hesitance regarding the Incentive Auction died down. This is probably because the auction raised over $40 billion. Wheeler did comment that, “At the recent Mobile World Congress in Barcelona, Gordon Smith was asked about the AWS-3 auction and what it means for the incentive auction. He replied, ‘If you own a television studio and it’s worth $5 million and someone offers you $50, you’d become interested.’” Maybe this is why people are starting to come around to the idea of the Incentive Auction.
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