FCC
Technology Policy Institute Panel Discusses Spectrum Incentive Auctions
WASHINGTON May 24, 2011- The Technology Policy Institute assembled auction experts Monday to discuss the value and mechanics of proposed spectrum incentive auctions.
“Markets work best when there are rules for the market players to act within,” said Peter Cramton, Professor of Economics, University of Maryland. “Increasingly people are getting their television service through cable and satellite making the mobile broadband market a much more valuable use for the spectrum currently held by television broadcasters.”
WASHINGTON May 24, 2011 – The Technology Policy Institute assembled auction experts Monday to discuss the value and mechanics of proposed spectrum incentive auctions.
“Markets work best when there are rules for the market players to act within,” said Peter Cramton, Professor of Economics, University of Maryland. “Increasingly people are getting their television service through cable and satellite making the mobile broadband market a much more valuable use for the spectrum currently held by television broadcasters.”
Voluntary incentive auctions would allow current spectrum owners to auction of part or all of their spectrum holdings and obtain a part of the proceeds.
Cramton said that any auction would allow for three possible actions on the part of the broadcasters; keep their entire spectrum holdings, sell a portion of their holdings or sell their entire holdings.
According to Cramton many broadcasters could sell half their holdings and still maintain a robust broadcast area. Using multicasting technology, broadcasters could share a single channel allowing them to transmit up to two high definition signals or five standard definition signals.
“The broadcasters do not want this right now; they feel as though they have just been forced to be moved under the DTV transition,” said Karen Wrege, Senior Auction Consultant, Power Auctions LLC. “But they will sell their holdings for a price. They know the value of their spectrum and will be able to determine through the auction if it’s worth holding on to or selling.”
Moving spectrum licenses for the purposes of improved management and better uses is not new, according to Wrege. The practice has occurred since the Federal Communications Commission began managing the radio spectrum. She also called on the Commission to ensure that the auction process is transparent, with well-established rules.
To improve the auction process, Wrege suggested that the FCC conduct a mock auction with possible participants to test out the proposed rules.
Evan Kwerel, Senior Economic Advisor at the Federal Communications Commission, approved of Wrenge’s suggestion saying that it is likely that before any auction occurs the commission will conduct a number of mock auctions in the lab.
Kwerel went on to say that, while the issue of spectrum auctions is being talked about as a quick solution to the spectrum crunch, the actual auctions would not take place for a while. The FCC – while proficient in auction design – will take many months to study the issue before any rulemaking occurs. Additionally, the comment period alone would last months.
Other panel participants estimated that it would take the Commission nearly two years from Congressional approval of auction legislation to when the auction would occur.
Lawrence Ausubel, Professor of Economics at University of Maryland called the auction a possible solution for the increasing market concentration occurring in the mobile broadband market.
“One of the primary reasons why AT&T is buying T-Mobile is to acquire more spectrum since they cannot buy it in the open market,” Ausubel said. “The auction will create a large amount of supply which will allow for the possibilities of new entrants.”
Cramton supported the idea that the auction would allow for increased competition, but observed that in most developed countries there are only three or four major operators with a handful of regional options.
FCC
FCC Proposed Rules Will Harm Legitimate Text Messages, Say Commenters
The rules would ban the practice of marketers purporting to have written consent for numerous parties to contact a consumer.

WASHINGTON, June 6, 2023 – Commenters claim that the Federal Communications Commission’s proposed rules that would require mobile wireless providers to ban marketers from contacting a consumer multiple times based on one consent will harm legitimate communications.
The new rules will set additional protections that would require the terminating provider to block texts after notification from the FCC that the text is illegal, to extend the National Do-Not-Call Registry’s protections to text messages, and to ban the practice of marketers purporting to have written consent for numerous parties to contact a consumer based on one consent. Comments on the proposal were due in May and reply comments on June 6.
“Robocall campaigns often rely on flimsy claims of consent where a consumer interested in job listings, a potential reward, or a mortgage quote, unknowingly and unwillingly ‘consents’ to telemarketing calls from dozens – or hundreds or thousands – of unaffiliated entities about anything and everything,” read the comments from USTelecom trade association.
Wireless trade association CTIA cited that Medicaid text messages that alert customers to critical health updates may be blocked by the ruling despite the FCC’s acknowledgement that these texts are critical. Many providers are unbending in enforcing robotext policies that mandate agencies must “satisfactorily demonstrate they receive prior express consent from enrollees to contact them.”
CTIA’s comments claimed that the proposed rules would “do little to enhance existing industry efforts to reduce text spam or protect consumers.”
Competitive networks trade association INCOMPAS claimed that the current framework is not well suited to allow the industry to universally resolve text messaging issues. “In the absence of standardized, competitively neutral rules, the current dynamics create perverse incentives that allow gamesmanship and arbitrage schemes as well as fraudulent behaviors to thrive.”
USTelecom commended the FCC for taking these steps and suggested that it expressly ban the practice of obtaining single consumer consent as grounds for delivering calls to multiple receivers by issuing a decisive declaration rather than a rule change. Providing clear guidance will deprive aggressive telemarketers of the plausible deniability they rely on to put calls through, it said.
The new language proposed in the notice is unnecessary and runs the risk of introducing new ambiguity by not eliminating perceived loopholes through a decisive declaration, read its comments.
The Retail Industry Leaders Association claimed that the notice would “primarily and negatively impact those who send legitimate text message solicitations, not scam senders and bad actors.” The well-intentioned measures will sweep in legitimate text communications, it claimed, by reducing consumer control and making assumptions on their behalf.
“Consumers use the DNC list to prevent unwanted telephone call solicitations. They do not expect that the DNC List will prevent normal and desired communications from legitimate businesses like RILA members,” it wrote.
In the event the FCC moves forward with the proposed rules, the RILA urged that the rules include “clear carve-outs or safe harbors” for legitimate solicitations.
This comes as the FCC considers additional proposed rules that will strengthen consumer consent for robocalls and robotexts by allowing consumers to decide which robocalls and texts they wish to receive.
FCC
Proposed Rules to Limit Unwanted Calls Will Not Protect Consumers, Says CTIA
The proposed rules will not protect consumers and will limit consumer’s ability to receive important messages from carriers.

WASHINGTON, June 5, 2023 – Wireless trade association CTIA expressed concerns with provisions in the Federal Communications Commission’s Notice of Proposed Rulemaking released in May that would strengthen consumer consent for robocalls and robotexts by allowing consumers to decide which robocalls and texts they wish to receive.
The draft proposals will not protect consumers and instead will “limit the ability of consumers to receive important, time-sensitive information about their wireless service,” said CTIA. These time-sensitive messages can include bill reminders, international roaming alerts, and fraud alerts, among others.
The notice as currently written does not acknowledge any record support, policy reason or benefits that the proposed limitations to the current framework would deliver, read the report by CTIA.
CTIA urged the FCC to add questions to the notice to clarify the unique relationship between wireless service providers and their consumers and the substantial consumer benefits that have resulted under the current framework.
The action is a response to the rising number of telemarketing and robocalls, stated the Notice. “We believe the rules the commission adopts here strike an appropriate balance between maximizing consumer privacy protections and avoiding imposing undue burdens on telemarketers,” read the Notice.
The Notice seeks to revise the current Telephone Consumer Protection Act rules and adopt new ones that would provide consumers with options for avoiding unwanted telephone solicitations. The ruling would include a national do-not-call registry for all telemarketing calls.
FCC
Former FCC Commissioner Says FCC Not Best Suited to Distribute Affordable Connectivity Program Funds
The FCC’s expertise does not translate to a social distribution mechanism.

WASHINGTON, June 5, 2023 – The Federal Communications Commission is not well suited for distributing the funds in the Affordable Connectivity Program, said former FCC Commissioner Michael O’Rielly at a Brookings Institution event Monday.
The ACP is currently subsidizing broadband access for over 17 million Americans with a discount of up to $30 and $75 a month for low-income and tribal households.
Although O’Rielly did not suggest an alternative solution, he indicated that social service offices could be better suited to distributing ACP funds than the FCC.
The FCC can and should provide technical advice and insight on technical components of the program, he said, but it is “not well suited” to act as a social distribution mechanism. The FCC should participate in the umbrella structure of the ACP program provided another entity deals with the distribution process, he said. He assured the panel that doing so will not reduce the quality of broadband products to the end user.
The FCC is responsible for managing the ACP Outreach Grant Program that provides funding to increase awareness of and participation in the ACP among eligible households. The program is made up of four grant programs: the National Competitive Outreach Program, the Tribal Competitive Outreach Program, the Your Home Your Internet Pilot Program and the ACP Navigator Pilot Program.
A total of $70 million is available for the NCOP and TCOP grant programs. Grants through the YHYI and ACP Navigator program will offer up to $5 million in grants. The FCC has awarded $66 million in grants to date.
Some of the large telecommunications companies have urged Congress to extend the ACP for the long-term, as they say there is a real concern that the $14-billion program could run out of funds by the first quarter of next year.
O’Rielly praised the ACP program as the “best structure we have to date” to achieve digital adoption goals. He expressed his support that the program be funded through congressional appropriations, which increases the level of control Congress has on the program.
“Congress being involved is the only way to ensure the program is sustainable,” he said.
In response to concerns that congressional appropriations will not support the program in the face of looming debts and the recent debt ceiling deal, O’Rielly said that the ACP program deserves appropriate scrutiny on its effectiveness but that it “can be defended” and “deserves additional funding.”
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