The FCC is aiming to conduct incentive-based spectrum auctions by 2015, the FCC's new chairman, Tom Wheeler, announced Friday.
The auctions were largely expected to take place in 2014, but in a blog post, Wheeler said he wanted to make sure the system that will process spectrum bids is ready for primetime. "I believe we can conduct a successful auction in the middle of 2015," he wrote.
The auction will allow TV broadcasters who are sitting on unused spectrum to auction it off to wireless carriers. A portion of the proceeds go to the broadcasters and the rest goes to the government. Wireless carriers are jockeying to get their hands on that spectrum. As more and more consumers pick up bandwidth-intensive gadgets, providers want to expand their spectrum holdings to accommodate increased usage and avoid an actual spectrum crunch.
But in the wake of the disastrous launch of HealthCare.gov, Wheeler said the FCC and stakeholders must "exhaustively test the operating systems and the software necessary to conduct the world's first-of-a kind incentive auction. This includes ensuring that such systems are user-friendly to both broadcasters and wireless carriers who will participate."
"And as any responsible manager knows, managing a complex undertaking such as this also requires an ongoing commitment to continuously and honestly assess its readiness and its project plan," he said.
The FCC will conduct a mock auction before the real thing, and "only when our software and systems are technically ready, user friendly, and thoroughly tested, will we start the auction," Wheeler said.
Getting to that point will require "a number of important milestones along the way," according to Wheeler, details of which will be outlined at a January commission meeting. The FCC will then vote on policy recommendations in the spring. Next year, the FCC's auction task force will also seek public comment on how the auction should function.
Wheeler acknowledged that there are potential bidders who probably just want to get the show on the road. But, he argued, "these imperatives are balanced with the recognition that we have but one chance to get the incentive auction right."
And at this point, what's one more year? The FCC has been pushing for voluntary broadcast spectrum auctions since at least 2010, when the agency delivered its national broadband plan to Congress.
Steve Largent, president at CEO of wireless trade association CTIA, said that his organization welcomed Wheeler's comment. "As CTIA has previously stressed, the incentive auction is essential to unleashing necessary additional spectrum for mobile broadband," he wrote in a blog post. "I commend Chairman Wheeler for his efforts to advance this important proceeding and his commitment to conducting this critical auction by middle of 2015."
One concern about these auctions is that AT&T and Verizon will buy up all the available spectrum. That issue made headlines last year when Congress introduced a bill that would have stripped the FCC of its authority to impose conditions on spectrum auctions. Ultimately, a compromise allowed the FCC to "enforce rules of general applicability, including rules concerning spectrum aggregation that promote competition."
During a Monday speech at The Ohio University, Wheeler stressed that "spectrum is finite" and that a "key goal of our spectrum allocation efforts is ensuring that multiple carriers have access to airwaves needed to operate their networks."
"We encourage voluntary industry codes of conduct; but we will monitor their effectiveness and will not hesitate to act where warranted," Wheeler said.
For more, check out PCMag Live in the video below, which discusses Wheeler's Ohio speech.