Computerworld — Public comments are due to the Federal Communications Commission (FCC) by the end of the month on rules for a Jan. 16 auction of 700MHz spectrum, which is expected to yield more than US$10 billion.

One provision in the proposed rules calls for keeping the identities of the bidders and the amounts of each bid secret until each round of bidding is closed in order to improve competition. The FCC approved the rules in July.

A 32-page notice posted late last week by the FCC includes the Jan. 16 auction date, along with a request for comments on the proposed rules by Aug. 31. Replies to those comments are due Sept. 7. The auction is officially being dubbed Auction 73, and by law, all bidding must be commenced by Jan. 28.

The notice tabulates a summary of more than $10 billion in "reserve prices" for five portions of the 700MHz band. Reserve prices are the "potential market value" based on several factors, according to the FCC. The spectrum was made available by the freeing up of television channels in the conversion to digital TV by 2009. The auction's proceeds will go to the U.S. Treasury. Some analysts have said the auction total could reach $20 billion, with an active field of bidders.

Bidding will be done anonymously, which "will serve the public interest by reducing the potential for anti-competitive bidding behavior, including bidding activity that aims to prevent the entry of new competitors," according to the proposed rules. The rules further stipulate that the bidders' names and net bid amounts be withheld from public release until the close of each round of bidding.

Anonymous bidding has been used in prior auctions, but the FCC noted that Auction 73 is different because the FCC will withhold information about bidders "irrespective of any pre-auction measurement of the likely auction competition." That means that the FCC plans to withhold the amount of a bidder's up-front payments and bidding eligibility until after the close of bidding. Also, it means that a bidder will be told of other bidders with whom they are not permitted to discuss bidding strategies, in order to enforce the FCC's anti-collusion rules.

Anti-collusion has become especially sensitive in Auction 73, since the FCC is trying to promote competition after calls by public interest groups and companies such as Google for more open networks with nontraditional providers. Google, for example, said it would be willing to bid a minimum of $4.6 billion for spectrum as long as open networks, devices and applications would be allowed over the spectrum, and that a portion would be provided under a wholesale scheme. The FCC rules approved in late July provided for the open networks, devices and applications, but did not specifically provide for a portion of the spectrum to be offered for wholesale use, a system seen by Google and others as a means for small players to use the networks.

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