The FCC completed Auction 91 yesterday, netting more than $8.5 million for the U.S. Treasury while awarding 108 new FM construction permits to 66 winning bidders.  The results represent a significant increase in total bids over the last auction of FM Allotments (Auction 79), where the FCC collected more than $5 million while awarding 85 construction permits to 53 winning bidders. 

A comparison of the results is instructive: 

Clearly Auction 91 generated more interest and more dollars than Auction 79.  There are several possible reasons. First, Auction 91 proposed more construction permits (144) for auction than Auction 79 (112).  Auction 91 had 117 qualified bidders while Auction 79 had only 77.  Several markets in Auction 91 were highly contested, with vigorous bidding among existing broadcasters and new entrants in certain markets.  As a result, five of the allotments went for more than a half a million dollars while an additional 14 allotments sold for $100,000 or more.  Auction 91 could reflect the frustrations of new and existing broadcasters wishing to purchase existing radio broadcast stations.  It is no secret the reduction in valuation of broadcast properties combined with a lack of funding for new acquisitions has resulted in a significant drop in broadcast transactions over the past several years.  Consequently, existing and new broadcasters interested in purchasing FM stations could have been motivated to participate in Auction 91.  And of course, never underestimate the interest of spectrum speculators who see an opportunity to upgrade a vacant allotment either through increasing power or changing the community of license. 

Unanswered is what the FCC will do with the 36 allotments that received no bids.  About half of these allotments have been offered in two or more FCC auctions and received no bids from the public. The issue is when the FCC will decide to delete these allotments because of lack of interest from the public.

Even though bidding in Auction 91 is closed, the FCC’s anti-collusion rules prohibit any applicants in Auction 91 from talking with each other until the down payment is made by the winning bidders.  The down payment will be due 10 days after the FCC releases a public notice announcing the winning bidders.  The FCC should release this public notice within the next several days.