Congress at Odds Over Provisions in Payroll Tax Extenders Bill for Spectrum Auctions

Earlier this week, I attended The New America Foundation’s  “Spectrum Auctions and Super Wi-Fi: A Win-Win for Consumers and Taxpayers,” a briefing for congressional staff and advocates. The event was a reaction to the language in the current version of the House Payroll Tax Extenders bill (Jumpstarting Opportunity with Broadband Spectrum Act – JOBS Act), which proposes to pay for the tax cut via incentive spectrum auctions. The spectrum in question is currently held by TV broadcasters.

The House bill contains language in Section 4105 that prevents the FCC from restricting who can bid in a spectrum auction, i.e. it states that the commission cannot set up auction parameters to prevent tier-one operators from winning the entire auction. The bill also restricts the commission’s authority to set aside spectrum for unlicensed uses.

Of note, the majority in the House has publicly stated that they believe the parameters they are imposing on the commission will generate more revenue for the U.S. Treasury. However, thus far they have refused to cap the amount of money that will be paid to broadcasters to incentivize their vacating their current spectrum holdings. Read more