Upton & Walden Troubled By FCC's Incentive Auction Decision

Statement

Energy and Commerce Committee Chairman Fred Upton (R-MI) and Communications and Technology Subcommittee Chairman Greg Walden (R-OR) released the following statement today in response to the Federal Communications Commission's adoption of procedures for the upcoming incentive auction:

"Three years ago, Congress put its faith in the FCC to tackle a monumental task: an incentive auction that benefits broadcasters, wireless broadband, and consumers. It appears that faith was misplaced. As Chairman Wheeler derides critics as focusing on the worst-case scenario,our concern is far more troubling -- that the plan adopted today loses sight of producing the best-case scenario.

"It isn't often that competing users of spectrum like broadcasters and wireless providers are in agreement. Yet here, where we need both to be not just willing, but enthusiastic, participants, the FCC has chosen to elevate its own political desires above the engineering and economic expertise of the industries expected to contribute spectrum and capital to this auction. While the problems with this approach are many, in short, it prioritizes quantity over quality.

"The plan the FCC adopted today assumes that it is more important to minimize payments to participating broadcasters and maximize the number of licenses sold rather than to produce high-quality outcomes for both industries. It is beyond belief that the FCC would go down the path of accepting inferior licenses for broadcasters and wireless providers when it doesn't have to. Once the FCC has reached a level of band pollution that it considers acceptable, their system simply stops trying to make it better.

"Moreover, the FCC's plan does little to minimize its impact on the stakeholders involved. The FCC's decision to predetermine acceptable pollution leaves wireless providers with a guarantee of devalued licenses; it leaves broadcasters potentially marooned in the 600 MHz band ; and, it displaces unlicensed and wireless microphone users. Sadly, these avoidable outcomes were acceptable collateral damage to the FCC.

"It's hard to see how the FCC's approach could be in the public interest when it unnecessarily shortchanges everyone involved - including taxpayers."

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