The Federal Communications Commission (FCC) announced that Stage 2 of the forward spectrum auction closed after only one round of bidding. This round generated bids of $22 billion, well short of the target of $56.5 billion for 114 MHZ.
The FCC said on its auction website: “Bidding in the forward auction has concluded for Stage 2 without meeting the final stage rule and without meeting the conditions to trigger an extended round. The incentive auction will continue with Stage 3 at a lower clearing target.”
On October 25, the FCC announced that the third stage of the reverse portion of the FCC’s broadcast incentive auction will begin November 1 at a 108 MHz clearing target. According to Broadcasting and Cable, “the less spectrum the FCC reclaims, the fewer TV stations will get the big paydays many were hoping for. The FCC has 11 different spectrum targets. If the forward auction bidders don’t cover the stage 3 price, the next target is 84 MHz, which some see as the potential equilibrium point between broadcasters’ asks and forward bidders’ offers.”