November 2013

Report: The Prospects of the 2014 “Incentive Spectrum Auction” in the United States

What Will Become of Spectrum Utilization in the Age of Broadband?

Atsushi Shibata

The “Incentive Spectrum Auction” will be held in the United States in 2014, next year, as the world’s first attempt of this kind. The United States have been holding spectrum auctions for twenty years since 1994, but what is unique about the 2014 auction is “having broadcasters voluntarily relinquish TV spectrum rights, which will be allocated to communication carriers through the auction, and giving back a part of the proceeds to the broadcasters.” This attempt was triggered by growing concern over the depletion of frequency bands left for mobile broadband services because the use of smartphones and tablet computers has drastically increased in the United States. Behind it also lies the intention of the Federal Communications Commission (FCC), the organizer of the auction, to have limited spectrum used effectively.

The “Incentive Spectrum Auction” will go through three stages: purchasing spectrum rights, changing channels, and holding the auction. FCC is full of confidence in the success of the auction, but some broadcasters voice concern about possible decline in the broadcast service quality due to small stations’ withdrawal. Besides, there are many unknown aspects, including how much spectrum will be relinquished. Thus, the 2014 auction is drawing much attention from the persons involved.

The NHK Monthly Report on Broadcast Research