Last month, we blogged that one of several things that must happen for the U.S. to lead in 5G deployment is an auction of spectrum in the 28 and 37-40 GHz bands. Since then, we have been working with a couple of economists who specialize in auction design and, today, we filed a paper with the FCC that was written by those economists. The paper lays out an innovative proposal for the design of an auction for 5G spectrum, or what the FCC calls “millimeter wave” spectrum.
One of the challenges to a millimeter wave auction, especially in the 39 GHz band, is that there are incumbent licensees with holdings scattered throughout the band, typically in 50 MHz chunks. To make matters even more complicated, incumbents hold different types of geographic licenses that in many cases overlay each other. In order for the auction to be successful, the FCC must find a way to reorganize the band into block sizes that are more favorable for 5G, ideally 200 MHz blocks, and maximize the number of blocks available for auction.
The paper that we filed proposes to achieve these objectives by offering vouchers to incumbent licensees that wish to participate in the auction. The vouchers would be based on the number of MHz-pops associated with their current licenses. The value of the vouchers would be determined by the bidding in the allocation phase of the auction. Following the allocation phase, there would be an assignment phase in which all successful bidders from the allocation phase would be guaranteed contiguity in the band.
This proposal has several important characteristics. First, it puts incumbent licensees and other potential bidders on a level playing field. Incumbents would have no advantage in the auction based on the size or frequency assignment of their current holdings. Second, it provides an elegant solution to the mish-mash of existing holdings in a way that maximizes the value and usability of the band. Third, by guaranteeing contiguity to successful bidders, the proposal allows winning bidders to maximize the bandwidth that will ultimately be available to consumers.
We believe this proposal sets out the best possible design for a millimeter wave auction, and we look forward to discussing it further with all stakeholders and public officials. It’s critical for our 5G future that we get this right.
The days grow shorter for an FCC settlement of Fibertower spectrum approval, with questions yet to be answered about a clean ticket of spectrum incumbency pending bankruptcy court agreement.
The FCC has a deadline to respond by December 18th with some position on the licenses to the bankruptcy court, but there is also the matter for AT&T to formulate what solution to offer in exchange to avoid running up on a reef of lawsuits from previous Fibertower shareholders of record to clear, I presume.
The proposal of AT&T to the FCC is very interesting and it applies to Verizon with the pending approval of the Straight Path licenses too. There’s just the question of how to balance all the facts so that those transfers of incumbent licenses pending FCC approval stand an equal chance of becoming vouchers at the same timely moment without unknown court considerations for one incumbent or another.
Thank you for your blog, insights and proposal to the FCC. Will be interesting to follow.
Seems that Fibertower 39Ghz spectrum is heating up competition in China and Japan. Will the FCC turn it’s back on the United States getting a leadership position? Full court press to get this done, or failure to execute? Time is critical to get that spectrum into use, now with the 3GPP standards coming together. I stand by my earlier comment.
http://english.cctv.com/2017/12/20/ARTIvZgUFV8xzLFTxE2c6lXu171220.shtml
Do not understand A lot of that.
Government agencies long in the tooth and paralyzed by fear. Stifling US innovation just long enough to validate their fears while foreign economies take the driver seat. Participating in a meaningless ruse for control is obviously foolish they ponder. while jotting past the competition lying on the floor, pants tied in knots at the ankle. opening the door just in front of them while looking back with a shameful smirk that reads: empathy, confusion, awkwardness. alas we are reminded why one would vote republican.
What say the economists to this news story now?
https://www.androidheadlines.com/2018/03/atts-dealings-highlight-the-ugly-truth-behind-5g-deployment.html
Stockholders have filed objections with the U.S. Bankruptcy Court. The Fibertower attempt to close their case has been instead re-opened, putting the FCC settlement agreement in jeopardy – if AT&T didn’t do enough due diligence? Or are you going to right the wrongs and make Fibertower’s clever management and lawyers pay the difference?
Were this not bad enough it happens today Congresswoman Anna Eshoo of the House Energy & Commerce Committee has sent a letter to FCC Chairman Pai requesting some disruptive procedures. And the CCA has filed a request for full FCC commission review, and a request for a ‘stay’. Commissioner Clyburn was snubbed, but seems will be coming back strong.
Was this not all fairly predictable and avoidable had the economists actually considered the facts? How is this going to turn out for AT&T ?