The Wall Street Journal reports the Federal Communications Commission wants more broadcasters to participate in the upcoming spectrum auction.
The auction is meant to meet growing demand by wireless carriers for more spectrum. Broadcasters who auction off their airwaves will either go dark or be moved to a new channel.
The broadcasters have thrown up roadblocks throughout the process and are currently challenging aspects of the FCC’s order in court, though they say they are fine with the auction as long as it remains voluntary.
AdvertisementTo win them over, FCC Chairman Tom Wheeler is making the case that the auction is a unique opportunity for TV broadcasters and has hired an investment bank, Greenhill & Co., to prepare a pitch document that it will send to every eligible TV station in the country. The document attempts to spell out how broadcasters stand to benefit from participating in the auction—including dollar estimates in every market.
“What we’ve been saying is, you know what, there might just be a higher and better use for that spectrum that will put more money in your pocket,” Mr. Wheeler said in a phone interview.
The auction represents in many ways an existential threat to the broadcasting industry, as it could result in dozens of stations going off the air. The latest information from the FCC indicates the auction could affect more stations and markets than initially thought, partly because of the high projected prices stations can expect to receive for their spectrum in large urban and suburban markets.