FCC’s Latest Move To Finalize Forward Auction

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With Forward Auction proceeds as of Round 53 of Stage 4 at $19,604,250,025, the FCC on Thursday made its latest move designed to wrap up these phase of the spectrum auction.


On Feb. 1, the clock price for a product was adjusted for each round by adding a fixed 10% increment to the previous round’s posted price. Beginning Friday (2/10), the increment will change to 15%.

Also effective Friday: The activity requirement will increase from 95% to 100%.

Specifically, a bidder’s activity requirement will be satisfied when the bidder has bidding activity equal to 100% of its current eligibility. If this requirement is met, the bidder’s eligibility will not be reduced for the next round.

Ahead of the latest Commission effort to wrap up the Forward Auction, Sachin Chhibber, VP of Spectrum and Technology at Auction600MHz.com, AWS3Auction.com, and SAAS Holdings; and Director/Radio Access Technology at Ligado Networks, offered an excellent analysis of the forward auction.

Here’s what Chhibber has to say on this phase of the spectrum auction wrapping up, and the timing as we wait for the assignment bidding phase of the forward auction to begin. The key takeaway: Excess demand is underwhelming.

At end of day Thursday (02/08) only 16 PEAs out of total 416 PEAs have excess demand.

Out of these 16 PEAs, only one PEA has extra demand of two blocks, while another 15 PEAs have excess demand of only one block.

Additionally, some 312 PEAs have demand equal to supply, while 88 PEAs have demand less than supply.

In six rounds on Wednesday, auction proceeds increased by $75 million, to end the day at roughly $19,573,000.

With one round left to go as of deadline Thursday (2/9), the increase is about $25 million.

With only about $15 million worth of extra bids on the table going in to Thursday, the Forward Auction could end by Happy Hour on Friday.

Below are some statistics and highlights as of Thursday morning, prior to Round 48:

spectrum-1

Chhibber also provides a map of where demand was greater than supply, and vice-versa.

spectrum-map

Prior to the FCC’s clock price increment adjustment, Chhibber predicted that clock phase will be complete in next 1 to 2 days.

Now, it seems that Monday will see the initial planning for the Assignment Phase of the auction.

This is expected to start 10-15 days after the clock phase is concluded.

RBR + TVBR