Another H Block Update: Reconsideration of Auction Procedures Sought

A couple of days ago we called readers’ attention to a petition for reconsideration of the H Block service rules that had been filed by the Rural Wireless Association (RWA).  We mentioned in that post that an FHH client – NCTH, Inc. – had filed for reconsideration of the H Block auction procedures.  And now a public notice of that latter recon petition has made it into the Federal Register.  The NCTH petition urges the Commission to address and resolve RWA’s petition before the auction so that, if the Commission is persuaded by RWA’s arguments, it can make appropriate changes to the auction before the participants – that is, bidders and the FCC – get too deeply wedded to the procedures as originally announced.  (Spoiler alert: NCTH agrees with the RWA position.)

The NCTH petition also suggests that the Commission reduce the reserve price set for the H Block auction.  The reserve price is the minimum amount that the auction must bring in before the auction will be deemed to be valid. Often, the reserve price is set to be close to the initial minimum bid amount.  But here, the reserve price for the H Block auction is $0.50 per MHz/pop, which calculates out to about $1.5 billion – magnitudes greater than most observers had expected.  The astronomical reserve price may be part of an arrangement with DISH Network that has been the source of some speculation.  Since an unusually high reserve price could easily discourage smaller carriers from bidding, NCTH suggests that the Commission should lower the reserve price to increase participation.  (It also expresses concern about the Commission’s failure thus far to make clear on the public record what influence, if any, the DISH arrangement may have had on the establishment of the reserve price.)

Oppositions to the NCTH petition for reconsideration may be filed by November 13, 2013.  Replies may be filed by November 25.

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