FCC Auction Raise $1.5 Billion Fund for Public Safety Network

The Federal Communications Commission (FCC) was able to raise a $1.5 billion fund for the nationwide public safety network after auctioning the so-called H Block; making Dish Network pay for the airwaves.

Prior to the auction, Dish Network, a direct-broadcast satellite service provider, pledged to pay for the airwaves if it reaches the $1.564 billion reserve price in exchange of a more flexible terms on how long it has to build out the system and how it can use its existing spectrum.

The spectrum auction, the first auction conducted by FCC since the 2008 700 MHz auction, commenced on Jan. 22 and ended on Feb. 27 after it reached the reserve price. Proceeds of it and the 2015 600 MHz TV spectrum auction are aimed to fund a nationwide public safety network.

In a statement to CNET, after the closing of the auction, FCC Chairman Tom Wheeler said, "With this successful auction, the Commission makes good on its commitment to unleash more spectrum for consumers and businesses, delivering a significant down payment towards funding the nationwide interoperable public safety network. The H Block auction is a win for the American people."

He also expressed gratitude to acting FCC Chairwoman Mignon Clyburn for heading the organization for the auction.

Republican FCC commissioner Ajit Pai was also very pleased that FCC has completed the spectrum auction. He told CNET that organizing an auction is not an easy task, adding "the Commission worked together, took steps to ensure that the auction would yield maximum revenue, and refrained from saddling the spectrum with unnecessary conditions."

In a matter of days, the names of the winning bidders and the amounts of their bids will officially be made public, though FCC has already been posting size and quantity of bids for licenses as the auction proceeded. Basing on the posts, Chicago, Los Angeles, and New York generated the most money.