Sirius XM Holdings Inc (SIRI)

[Nubedo]

http://washingtontimes.com/apps/pbcs.dll/article?AID=/20080116/BUSINESS/45012722/1006

FCC set for airwaves auction
The federal government's upcoming auction of wireless spectrum represents an "unprecedented opportunity" for innovation, the nation's top media regulator said yesterday.



Bidding starts later this month on the portion of the public airwaves that will be reclaimed by the government next year when the country transitions to digital television, which requires less spectrum. The auction, run by the Federal Communications Commission, is expected to generate $10 billion for the federal Treasury.



The quality of these particular airwaves, whose signals can travel long distances and penetrate walls, will "help resolve some of the universal service challenges we've had in the past," said FCC Chairman Kevin J. Martin, a Republican, in a wide-ranging press briefing yesterday.



"Universal service" refers to a federal program that promotes the availability of broadband Internet service to rural or low-income areas that might not be attractive or profitable to providers.



The media-regulating agency this week announced it has authorized 214 entities — ranging from telecommunications companies like AT&T and Verizon to Internet companies like Google — to bid in the auction of the 700 MHz band. Mr. Martin acknowledged that concerns about a slowing economy might effect the amount participants are willing to bid.



"Is it an ideal time to be conducting an auction? I'm not sure. But we're required by law to hold the auction at this time, so we'll go forward," he said.



On other issues, Mr. Martin said the commission is still waiting for the Department of Justice to issue its opinion on the pending merger between XM Satellite Radio and Sirius Satellite Radio, which requires approval from both the Justice Department and FCC. He noted that the commission is not required to wait before it acts, however.



"But I don't anticipate the commission going first," he said. The agency still has not completed its analysis of the merger, announced in February, he added.