REC statement on the passage of HR-1 and the resumption of FCC spectrum auctions

While REC never took a position on the 'Big Beautiful Bill' in general, we do welcome the return of spectrum auctions at the FCC.

Today, the House of Representatives passed the Senate engrossed version of HR-1, previously known as the “Big Beautiful Bill”.

REC takes no position on HR-1, in general

REC Networks never took an official position on HR-1. Therefore, we take no position on the overall passage of the legislation. REC would not take a position on such omnibus legislation, even if a small part of that legislation would include something within our area of interest. Even if we support that small part, we cannot take a position on all of the remaining issues that are well outside of our wheelhouse.

The “small part” of that legislation that was within REC’s area of interest related to the reinstatement of spectrum auctions at the FCC.

About spectrum auctions

The FCC’s authority to conduct spectrum auctions to determine the awards of commercial spectrum under §309(j)(11) of the Communications Act expired by law on March 9, 2023 with the exception of the spectrum identified in §90008(b)(2)(A)(ii) of the Infrastructure Investment and Jobs Act, which terminated on November 15, 2021 and also with the exception of the spectrum identified under §1004(a) of the Spectrum Pipeline Act, which would have expired on September 30, 2025.

In §40002(b)(1) of HR-1, the Commission’s auction authority has been reinstated and shall expire by matter of law on September 30, 2034. Spectrum between 3.1~3.45 and between 7.4~8.4 GHz was specifically excluded from this new auction authority.

The need for the FCC to resume auction authority is truly a bipartisan issue. Major concerns and efforts were made by both the Rosenworcel and the Carr administrations to reinstate this authority citing the fact that the lack of auction authority has stifled technological growth and has jeopardized the United States’ position as a technology leader.

In general, while taking no specific position on the HR-1 legislation, REC Networks is pleased that FCC auction authority is being reinstated. Spectrum auctions involving the FM broadcast spectrum is consistent with REC’s Objectives of citizen’s access to spectrum, keeping radio relevant and more choices/more voices, while auction authority in both the broadcast and non-broadcast bands is consistent with REC’s objectives on improving the rural quality of life.

Eventual broadcast auctions to be held by the FCC

In the FM broadcast band, there are currently over 200 vacant allotments nationwide including a handful of allotments which are being made available for commercial applicants for the first time as the allotments were re-reserved from noncommercial educational use. These allotments, many of which were already required to be protected by subsequently authorized LPFM stations would likely be available in a future auction.

The reinstatement of FCC auction authority also means that the prospect of a filing window for new FM translator stations will be able to be held. Of course, we are always deeply concerned about the interference that could be caused by new translators to existing LPFM stations, however, with changes to the rules that were made in 2018, there is a standardized method that LPFM stations can use to object translators that may create interference to existing LPFM stations.

REC’s position on opening of any filing window for new FM translator stations

However, REC does not endorse the opening of any translator filing window (commercial nor noncommercial reserved band) at this time. REC is insisting that before there is another translator filing window, whether for the 92~108 MHz band following auction procedures or for the 88~92 MHz reserved band which does not involve auctions, that the Commission must bring to rulemaking, the provisions of RM-11952, the REC Translator Reform Petition for Rulemaking which will codify new regulations or policies for FM translator filing windows, including codifying a modified version of the procedures that the Commission put in place in the 2012 Fourth Report and Order in order to comply with Section 5(1~2) of the Local Community Radio Act of 2010 which mandates that licenses for new be available for both LPFM and translators and that those decisions are made based on the needs of the local community.

REC’s will provide services to FM and translator auction participants

It is REC’s perspective that an full-service FM and FM translator auction windows will not take place in the immediate future. Auctions are very complicated and much of the same staff at the FCC is used for non-broadcast auctions as they are used for broadcast auctions. The policy priorities of both the Rosenworcel and Carr administrations favor appear to favor priority on the auction of non-broadcast (i.e. broadband) spectrum, which is a very logical standpoint.

At a time when the FCC announces that they will conduct an auction for full-service commercial FM or FM translator construction permits, REC Networks will be able to provide all filing services with the exception of providing assistance in the actual round bidding process, which would be the client’s responsibility.

REC will release educational information, service offering notices, rate cards and will establish a show of interest list for the commercial FM allotment and FM translator filing windows at a later date.

For more information, please contact Michelle Bradley, CBT at REC Networks at 202 621-2355 or via email at lpfm@recnet.com.