FEDERAL CoM M UN ICATIoNS CoM M ISSIoN \MASHINGToN OFFICE OF THE CHAIRMAN June 18,2014 The Honorable Doris Matsui U.S. House of Representatives 2446Rayburn House Office Building Washington, D.C. 20515 Dear Representative Matsui : Thank you for sharing your views on the importance of the Broadcast Television Incentive Auction, and for your support of the Commission's actions to promote competition. The Incentive Auction is a once-in-a-lifetime opportunity to expand the benefits of mobile wireless coverage and competition to consumers across the Nation - particularly consumers in rural areas - offering more choices of wireless providers, lower prices, and higher quality mobile services, while also providing a game-changing financial opportunity to broadcasters and fully funding the Public Safety Trust Fund for FirstNet. On May 15, the Commission adopted final rules for the Incentive Auction and for Mobile Spectrum Holdings. Consistent with the Middle Class Tax Relief and Job Creation Act of 2012, all who want to participate in the Incentive Auction will be able to bid. A priority of the auction will be to ensure that nationwide providers that already possess significant amounts of low-band spectrum are not able to use the auction to keep competitors from accessing the spectrum they need to provide additional choices to consumers. This is vitally important to rural communities, where such spectrum is necessary for competitors to provide improved service to areas that currently have poor or no wireless coverage, and also in urban areas where low-band spectrum allows cost-effective, reliable coverage in urban canyons and deep into buildings. The market- based reserye for the Incentive Auction appropriately balances the goals of promoting competition and making more spectrum available to all wireless providers. As you note, the Incentive Auction will fully fund any remaining funds necessary for FirstNet. Specifically, under the rules the Commission recently adopted, the proceeds of the auction must be sufficient to fund incentive payments to participating broadcasters, the other mandatory expenses set forth in section 6aB@)(2) of the Spectrum Act,r and any PSTF amounts still needed in connection with FirstNet after the close of the H Block and AWS-3 auctions.2 The Spectrum Act establishes the priority for making payments or deposits from the PSTF as amounts are deposited into the Fund, including for FirstNet and for deficit reduction. I The Spectrum Act requires only that the forward auction generate proceeds sufficient to pay winning bidders in the reverse auction and cover relevant administrative costs ofthe auction and an estimate ofrelocation costs subject to reimbursement. 2 I expect that these two auctions will nearly or fully fund the PSTF with amounts needed for FirstNet, even before the Incentive Auction takes place. Page2 -- The Honorable Doris Matsui Thank you again for sharing your support of the Commission's efforts in creating the first ever Incentive Auction, while bringing the benefits of competition to consumers across the nation. I look forward to working with you toward our mutual goal of a successful auction for the benefit of all American consumers. trh(,,t Tom Wheeler OFFICE OF THE CHAIRMAN FEDERAL CoMMUNICATIoNS CoM MISsIoN WASHINGToN June 18,2014 The Honorable Anna Eshoo U.S. House of Representatives 241 Carrnon House Office Building Washington, D.C. 20515 Dear Representative Eshoo: Tha* you for sharing your views on the importance of the Broadcast Television Incentive Auction, and for your support of the Commission's actions to promote competition. The Incentive Auction is a once-in-a-lifetime opportunity to expand the benefits of mobile wireless coverage and competition to consrmeis across ih. Nutior, - particularly consumers in rural areas - offering more choices of wireless providers, lowei prices, and higherquality mobile services, while also providing a game-changing financial opportunity to broadcasters and fully funding the public Safety Trust Fund for FirstNet. On May 15, the Commission adopted final rules for the Incentive Auction and for Mobile Spectrum Holdings. Consistent with the Middle Class Tax Relief and Job Creation Act of 2012, all who want to participate in the Incentive Auction will be able to bid. A priority of the auction will be to ensure that nationwide providers that already possess significant amounts of low-band spectrum are not able to use the auction to keep competitors from accessing the spectrum they need to provide additional choices to consumers. This is vitally importantio rural communities, where such spectrum is necessary for competitors to provide improved service to areas that currently have poor or no wireless coverage, and also in urban areas where low-band spectrum allows cost-effective, reliable coverage in urban canyons and deep into buildings. The market- based reserve for the Incentive Auction appropriately balances the goals of proiroting competition and making more spectrum available to all wireless providers. As you note, the Incentive Auction will fully fund any remaining funds necessary for FirstNet. Specifically, under the rules the Commission recently adopted, the proceeds of the auction must be sufficient to fund incentive payments to participating broadcasters, the other mandatory expenses set forth in section 6aB@)(2) of thespectium Act,1 and any pSTF amounts still needed in connection with FirstNet after the close of thi H Block and AWS-3 auctions.2 The Spectrum Act establishes the priority for making payments or deposits from the pSTF as amounts are deposited into the Fund, including for FirstNet and for deficit reduction. I The Spectrum Act requires only that the forward auction generate proceeds sufficient to pay winning bidders in the reverse auction and cover relevant administrative costs of the auction and an estimate of reloiation co-sts subject to reimbursement. 2 I expect that these two auctions will nearly or fully fund the PSTF with amounts needed for FirstNet, even before the Incentive Auction takes place. Page2 -- The Honorable Anna Eshoo Thank you again for sharing your support of the Commission's efforts in creating the first ever Incentive Auction, while bringing the benefits of competition to consumers across the nation. I look forward to working with you toward our muiual goal of a successful auction for the benefit of all American consumers. rult OFFICE OF THE CHAIRMAN FEoEnnI CoMMUNICATIoNS CoMMISSIoN WASHINGToN June 18,2014 The Honorable Adam Smith U.S. House of Representatives 2264Rayburn House Office Building Washington, D.C. 20515 Dear Representative Smith: Thank you for sharing your views on the importance of the Broadcast Television Incentive Auction, and for your support of the Commission's actions to promote competition. The Incentive Auction is a once-in-a-lifetime opportunity to expand the benefits of mobile wireless coverage and competition to consumers across the Nation - particularly consumers in rural areas - offering more choices of wireless providers, lowei prices, and higher quality mobile services, while also providing a game-changing financial opportunity to broadcasters and fully funding the Public safety Trust Fund for FirstNet. On May 15, the Commission adopted final rules for the Incentive Auction and for Mobile Spectrum Holdings. Consistent with the Middle Class Tax Relief and Job Creation Act of 2012, all who want to participate in the Incentive Auction will be able to bid. A priority of the auction will be to ensure that nationwide providers that already possess significant amounts of low-band spectrum are not able to use the auction to keep competitors from accessing the spectrum they need to provide additional choices to consumers. This is vitally important to rural communities, where such spectrum is necessary for competitors to provide improved service to areas that currently have poor or no wireless coverage, and also in urban areas where low-band spectrum allows cost-effective, reliable coverage in urban canyons and deep into buildings. The market- based reserve for the Incentive Auction appropriately balances the goals of promoting competition and making more spectrum available to all wireless providers. As you note, the Incentive Auction will fully fund any remaining funds necessary for FirstNet. Specifically, under the rules the Commission recently adopted, the proceeds of the auction must be sufficient to fund incentive payments to participating broadcisters, the other mandatory expenses set forth in section 6aB@)(2) of the Spectrum Act,l and any PSTF amounts still needed in connection with FirstNet after the close of the H Block and AWS-3 auctions.2 The Spectrum Act establishes the priority for making payments or deposits from the PSTF as amounts are deposited into the Fund, including for FirstNet and for deficit reduction. I The Spectrum Act requires only that the forward auction generate proceeds sufficient to pay winning bidders in the reverse auction and cover relevant administrative costs ofthe auction and an estimate ofrelocation coits subject to reimbursement. 2 I expect that these two auctions will nearly or fully fund the PSTF with amounts needed for FirstNet, even before the Incentive Auction takes place. Page2 -- The Honorable Adam Smith Thank you again for sharing your support of the Commission's efforts in creating the first ever Incentive Auction, while bringing the benefits of competition to consumers across the nation. I look forward to working with you toward our mutual goal of a successful auction for the benefit of all American consumers. rutL Tom Wheeler OFFICE OF THE CHAIRMAN FEDERAL CoMMUNICATIoNS CoMMISSIoN WASHINGToN June 18,2014 The Honorable Ben Lujan U.S. House of Representatives 2446Raybum House Office Building Washington, D.C. 20515 Dear Representative Luj an: Thank you for sharing your views on the importance of the Broadcast Television Incentive Auction, and for your support of the Commission's actions to promote competition. The Incentive Auction is a once-in-a-lifetime opportunity to expand the benefits of mobile wireless coverage and competition to consumeir across the Nation - particularly consumers in rural areas - offering more choices of wireless providers, lowei prices, and higher quality mobile services, while also providing a game-changing financial opportunity to broadcasters and fully funding the public safety Trust Fund for FirstNet. On May 15, the Commission adopted final rules for the Incentive Auction and for Mobile Spectrum Holdings. Consistent with the Middle Class Tax Relief and Job Creation Act of 2012, all who want to participate in the Incentive Auction will be able to bid. A priority of the auction will be to ensure that nationwide providers that already possess significant amounts of low-band spectrum are not able to use the auction to keep competitors from accessing the spectrum they need to provide additional choices to consumers. This is vitally important to rural communities, where such spectrum is necessary for competitors to provide improved service to areas that currently have poor or no wireless coverage, and also in urban areas where low-band spectrum allows cost-effective, reliable coverage in urban canyons and deep into buildings. The market- based reserve for the Incentive Auction appropriately balances the goals of proloting competition and making more spectrum available to all wireless providers. As you note, the Incentive Auction will fully fund any remaining funds necessary for FirstNet. Specifically, under the rules the Commission recently adopted, the proceeds of the auction must be sufficient to fund incentive payments to participating broadcasters, the other mandatory expenses set forth in section 6a$@)(2) of the Spectrum Act,l and any pSTF amounts still needed in connection with FirstNet after the close of the H Block and AWS-3 auctions.2 The Spectrum Act establishes the priority for making payments or deposits from the pSTF as amounts are deposited into the Fund, including for FirstNet and for defrcit reduction. I The Spectrum Act requires only that the forward auction generate proceeds sufficient to pay winning bidders in the reverse auction and cover relevant administrative costs ofthe auction and an estimate ofrelocation coits subject to reimbursement. 2 I expect that these two auctions will nearly or fully fund the PSTF with amounts needed for FirstNet, even before the Incentive Auction takes place. Page2 -- The Honorable Ben Lujan Thank you again for sharing your support of the Commission's efforts in creating the first ever Incentive Auction, while bringing the benefits of competition to consumers across the nation' I look forward to working with you toward our mutual goal of a successful auction for the benefit of all American consumers. #tu, Tom Wheeler OFFICE OF THE CHAIRMAN FEDERAL CoMMUNICATIoNS CoMMISSIoN WASHINGToN June 18,2014 The Honorable Zoe Lofgren U.S. House of Representatives 1401 Longworth House Office Building Washington, D.C. 20515 Dear Representative Lofgren: Thank you for sharing your views on the importance of the Broadcast Television Incentive Auction, and for your support of the Commission's actions to promote competition. The Incentive Auction is a once-in-a-lifetime opportunity to expand the benefits of mobile wireless coverage and competition to consumeiJacross ih. Nutio, - particularly consumers in rural areas - offering more choices of wireless providers, lowei prices, and higher quality mobile services, while also providing a game-changing financial opportunity to broadcasters and fully funding the public Safety Trust Fund for FirstNet. On May 15, the Commission adopted final rules for the Incentive Auction and for Mobile Soectrum Holdings. Consistent with the Middle Class Tax Relief and Job Creation Act of 2012, all wtro want to participate in the Incentive Auction will be able to bid. A priority of the auction will be to ensure that nationwide providers that already possess significant amounts of low-band spectrum are not able to use the auction to keep competitors from accessing the spectrum they need to provide additional choices to consumers. This is vitally importantio *rul communities, where such spectrum is necessary for competitors to provide improved service to areas that currently have poor or no wireless coverage, and also in urban areas where low-band spectrum allows cost-effective, reliable coverage in urban canyons and deep into buildings. The market- based reserve for the Incentive Auction appropriately balances the goals of prototing competition and making more spectrum available to all wireless providers. - As you note, the Incentive Auction will fully fund any remaining funds necessary for FirstNet. Specifically, under the rules the Commission recently adopted the proceeds of the auction must be sufficient to fund incentive payments to participating broadcasters, the other mandatory expenses set forth in section 6aB@)(2) of the Spectrum Act,l and any pSTF amounts still needed in connection with FirstNet after the close of the H Block and AWS-3 auctions.2 The Spectrum Act establishes the priority for making payments or deposits from the pSTF as amounts are deposited into the Fund, including for FirstNet and for deficit reduction. I The Spectrum Act requires only that the forward auction generate proceeds sufficient to pay winning bidders in the reverse auction and cover relevant administrative costs ofthe auction and an estimate ofrelocation costs subject to reimbursement. 2 I expect that these two auctions will nearly or fully fund the PSTF with amounts needed for FirstNet, even before the Incentive Auction takes place. Page2 -- The Honorable ZoeLofgren Thank you again for sharing your support of the Commission's efforts in creating the first ever Incentive Auction, while bringing the benefits of competition to consumers across the nation. I look forward to working with you toward our mutual goal of a successful auction for the benefit of all American consumers. XtL,t Tom Wheeler OFFICE OF THE CHAIRMAN FEDERAL CoM M UN ICATIoNs CoM M IsSIoN wASHINGToN June 18,2014 The Honorable peter Welch U.S. House of Representatives 2446Rayburn House Office Building Washington, D.C. 205t5 Dear Representative Welch: - Thank you forsharing your views on the importance of the Broadcast TelevisionIncentive Auction, and for your support of the Commission's actions to promote competition. The Incentive Auction is a once-in-a-lifetime opportunity to expand the benefits ofmobile wireless coverage and competition to consumerc u"ros the Nation - particularly consumers in rural areas - offering more choices of wireless providers, lower prices, and higherquality mobile services, wh]le also providing-a game-changing financial opportunity tobroadcasters and fully funding the public saretfrrusrF;;h for FirstNet. - on May 15, the Commission adopted final rules for the Incentive Auction and for Mobilespectrum Holdings. consistent with the Middle Class Tax Relief and Job Creation Act of 2012,all-who want to participate in the Incentive Auction will be able to bid. A priority of the auctionwill be to ensure that nationwide providers that alreadypossess significant amounts of low-band spectrum are not able to use the auction to keep comp"tiiors from-accessing the spectrum they need to provide additional choices to consumers. This is vitally important to rural communities, where such spectrum is necessary for competitors to provide improved service to areas thatcurrently have poor or no wireless coverage, and also in urban areas where low-band spectrumallows cost-effective,_reliable coverage in ilrban canyons rrJ-a."p ir," irlairgs. The market-based reserve for the Incentive Auction appropriately balances the goals of promoting competition and making more spectrum available to all wireless pririd".r. ' As you note, the Incentive Auction will fully fund any remaining funds necessary forFirstNet' Specifically, under the rules the Commission recently adoptei, the froceeds of theauction must be sufficient to fund incentive payments to participating Uroaacurt..r, the other mandatory expenses set forth in section a+ozliyzlof the spectir-,i."t,r;;;y psrF amountsstill needed in connection with FirstNet after ihe'ciose of the H Block and AWSI3 ";l;.t*'*The Spectrum Act establishes the priority for making payments or deposits from the pSTF as amounts are deposited into the Fund, including for firstNet and for aencit reduction. I rhe Spectmm Act requires only that the forward auction generate proceeds sufficient to pay winning bidders in the [Htsj.3]#::l and cover relevant administrative costs of the auction and an estimate of relotation coits subject to 2 I expect that these two auctions will nearly or fully fund the pSTF with amounts needed for FirstNet, even beforethe Incentive Auction takes place. Page2 -- The Honorable peter Welch Thank you again for sharing your support of the Commission,s efforts in creating the firstever Incentive Auction, while.bringing the u.r.nt. oi.ffi,i,io, to consumers across thenation' I look forwardlo workingiitl you toward our mutual goal of a successful auction forthe benefit of all American constiners. ' Sincerely, Tom Wheeler OFFICE OF THE CHAIRMAN FEDERAL CoMMUNICATIoNS coM M ISSIoN WASHINGToN June 18,2014 The Honorable Michael Doyle U.S. House of Representatives 239 Cawron House Office Building Washington, D.C. 20515 Dear Representative Doyle: - Thank you forsharing your views on the importance of the Broadcast TelevisionIncentive Auction, and for your support of the commission's actions to promote competition. The Incentive Auction is a once-in-a-lifetime opportunity to expand the benefits ofmobile wireless coverage and competition to .orrr-.rr'across the Nation - particularly consumers in rural areas - offering more choices of wireless providers, lower prices, and higherquality mobile services, w!]le also providing_a game-changing financial opportunity tobroadcasters and fully funding the Fubhc sri"tir*rrru"o for FirstNet. - on May 15, the Commission adopted final rules for the Incentive Auction and for MobileSpectrum Holdings' Consistent with the Middle Class Tax Relief and Job Creation Act of 2012,all.wfio want to participate in the Incentive Auction will be able to bid. A priority of the auctionwill be to ensure that nationwide providers that at.euaf possess significant amounts of low-bandspectrum are not able to use the auction to keep compitiiors fromiccesi"g irr. spectrum theyneed to provide additional choices to consumers. This is vitally importantTorural communities, where such spectrum is necessary for competitors to provide improved service to areas thatcurrently have poor or no wireless coverage, and also in urban areas where low-band spectrumallows cost-effective,-reliable coverage i" "iuan.unyon, *d deep into buildings. The market-based reserve for the Incentive Auction appropriately balances the goals of promoting competition and making more spectrum available to all wireless prJviders. ' As you note, the Incentive Auction will fully fund any remaining funds necessary forFirstNet' Specifically, under the rules the Commirrior r"""rrtly adoptei, the froceeds of theauction must be sufficient to fund incentive payments to participating broadcirt".r, the othermandatory expenses set forth in section a+ozlcyzlortne speci'*d;i;; psrF amountsstill needed in connection with FirstNet after ihe'ciose of the H Block and AWS-3 auctions.2The Spectrum Act establishes the priority for making payments or deposits from the pSTF asamounts are deposited into the Fund, including for FirstNet and for aencit reduction. ' The Spectrum Act requires only that the forward auction generate proceeds sufficient to pay winning bidders in the ffiff:#::t and cover relevant administrative costs of the auction and an estimate of relocation costs subject to 2 I expect that these two.auctions will nearly or fully fund the pSTF with amounts needed for FirstNet, even beforethe Incentive Auction takes place. Page2 -- The Honorable Michael Doyle Thank you again for sharing your support of the Commission's efforts in creating the first ever Incentive Auction, while bringing the benefits of competition to consumers across the nation. I look forward to working with you toward our mutual goal of a successful auction for the benefit of all American consumers. WilLl Tom Wheeler OFFICE OF THE CHAIRMAN FEDERAL CoMMUNICATIoNS coMMISSIoN wASHINGToN June 18,2014 The Honorable John Conyers U.S. House of Representatives 2426Raybum House Office Building Washington, D.C. 20515 Dear Representative Conyers: - Thank you forsharing your views on the importance of the Broadcast TelevisionIncentive Auction, and for your support of the commission's actions to promote competition. The Incentive Auction is a once-in-a-lifetime opportunity to expand the benefits ofmobile wireless coverage and competition to .onrr-.r, across the Nation - particularly consumers in rural areas - offering more choices of wireless providers, lower prices, and higherquality mobile serviges, wlr]le also providing a game-changing financial offo.turrity tobroadcasters and fully funding the public saiet/rrusrrrro for FirstNet. on May 15, the Commission adopted final rules for the Incentive Auction and for MobileSpectrum Holdings' consistent with the Middle class tax Rererand Job creation Act of 2012,atf.y-no want to participate in the Incentive Auction will be able to bid. A priority of the auctionwill be to ensure that nationwide providers that "lr*dtp;;sess significant amounts of low-bandspectrum are not able to use the auction to keep competiiors fromiccer;i;;th. spectrum theyneed to provide additional choices to consumers. This is vitally importantTorural communities,where such spectrum is necessary for competitors to provide improved service to areas thatcurrently have poor or no wireless coveragi, and also in urban aieas where low-band spectrumallows cost-effective, reliable coverage i" "ruan .uryo* urd deep into builaings. The market-based reserve for the Incentive Aucti6n appropriately balances the goals of promotingcompetition and making more spectrum available to all wireless prividers. ' As you note, the Incentive Auction will fully fund any remaining funds necessary forFirstNet' Specifically, under the rules the Commir.ior r.""ntly adopted, the proceeds of theauction must be suffrcient to fund incentive payments to participating broadcasters, the othermandatory expenses set forrh in section a+ozrixz)ortne'specilffi;,;;;;y psrF amountsstill needed in connection with FirstNet after ihe'ciose of th! H Block and AWS-3 auctions.2The Spectrum Act establishes the priority for making payments or deposits from the pSTF asamounts are deposited into the Fund, including for FirstNet and for deficit reduction. I rhe Spectrum Act requires only that the forward auction generate proceeds sufficient to pay winning bidders in the ;:ffisj.3fit|f,land cover relevant administrative costs of the auction and an estimate orretocatio, costs subject to 2 I expect that these two.auctions will nearly or fully fund the PSTF with amounts needed for FirstNet, even beforethe Incentive Auction takes place. Page2 -- The Honorable John Conyers Thank you again for sharing your support of the commission's efforts in creating the firstever Incentive Auction, while-bringing the u"n"nts orcomfetition to consumers across thenation' I look forwardlo working *itt, you toward our mutual goal of a successful auction forthe benefit of all American consumers. ' Sincerely, t / -a,,tl/-A llnztr'I'om Wheeler FEDERAL CoMMUNICATIoNS CoMMISSIoN WASHINGToN OFFICE OF IHE CHAIRMAN June 18,2014 The Honorable Jared Polis U.S. House of Representatives 1433 Longworth House Office Building Washington, D.C. 20515 Dear Representative Polis: Thank you for sharing your views on the importance of the Broadcast Television Incentive Auction, and for your support of the Commission's actions to promote competition. The Incentive Auction is a once-in-a-lifetime opportunity to expand the benefits of mobile wireless coverage and competition to consumers across the Nation - particularly consumers in rural areas - offering more choices of wireless providers, lower prices, and higher quality mobile services, while also providing a game-changing financial opportunity to broadcasters and fully funding the Public Safety Trust Fund for FirstNet. On May 15, the Commission adopted final rules for the Incentive Auction and for Mobile Spectrum Holdings. Consistent with the Middle Class Tax Relief and Job Creation Act of 2012, all who want to participate in the Incentive Auction will be able to bid. A priority of the auction will be to ensure that nationwide providers that already possess significant amounts of low-band spectrum are not able to use the auction to keep competitors from accessing the spectrum they need to provide additional choices to consumers. This is vitally important to rural communities, where such spectrum is necessary for competitors to provide improved service to areas that currently have poor or no wireless coverage, and also in urban areas where low-band spectrum allows cost-effective, reliable coverage in urban canyons and deep into buildings. The market- based reserve for the Incentive Auction appropriately balances the goals of promoting competition and making more spectrum available to all wireless providers. As you note, the Incentive Auction will fully fund any remaining funds necessary for FirstNet. Specifically, under the rules the Commission recently adopted, the proceeds of the auction must be sufficient to fund incentive payments to participating broadcasters, the other mandatory expenses set forth in section 6aB@)(2) of the Spectrum Act,r and any PSTF amounts still needed in connection with FirstNet after the close of the H Block and AWS-3 auctions.2 The Spectrum Act establishes the priority for making payments or deposits from the PSTF as amounts are deposited into the Fund, including for FirstNet and for deficit reduction. I The Spectrum Act requires only that the forward auction generate proceeds sufficient to pay winning bidders in the reverse auction and cover relevant administrative costs ofthe auction and an estimate ofrelocation costs subject to reimbursement. 2 I expect that these two auctions will nearly or fully fund the PSTF with amounts needed for FirstNet, even before the Incentive Auction takes place. Page 2 -- The Honorable Jared polis Thank you again for sharing your support of the Commission's efforts in creating the firstever Incentive Auction, while bringing the benefits of competition to consumers across thenation' I look forwardlo working with you toward our mutual goal of a successful auction forthe benefit of all American consumers. - Sincerelv- /Thh "%_v. Tom Wheeler OFFICE OF THE CHAIRMAN FEDERAL CoMMUN ICATIoNS coM MISsIoN WASHINGToN June 18,2014 The Honorable Henry Waxman U.S. House of Representatives 2446Raybum House Office Building Washington, D.C. 20515 Dear Representative Waxman: - Thank you for sharing your views on the importance of the Broadcast TelevisionIncentive Auction' and for your support of the Commission's actions to promote competition. The Incentive Auction is a once-in-a-lifetime opportunity to expand the benefits ofmobile wireless coverage and competition to "orrr-.r, across the Nation - particularlyconsumers in rural areas - offering more choices of wireless providers, lower prices, and higherquality mobile services, whjle also providing a game-changing financial opportunity tobroadcasters and fully funding the Fublic Saf.t}7frurt funa for FirstNet. - on May 15, the Commission adopted final rules for the Incentive Auction and for MobileS.pectrum Holdings. Consistent with the Middle Class Tax Relief and Job Creation Act of 2012,all.wto want to participate in the Incentive Auction will be able to bid. A priority of the auctionwill be to ensure that nationwide providers that already porr.r, significant amounts of low-bandspectrum are not able to use the auction to keep .ornp.tiio.r fromLcessing the spectrum they need to provide additional choices to consumers. This is vitally important to rural communities, where such spectrum is necessary for competitors to provide improved service to areas thatcurrently have poor or no wireless coverage, and also in urban areas where low-band spectrumallows cost-effective,-reliable coverage in urban canyons *a a..p into buildings. The market-based reserve for the Incentive Auction appropriately balances the goals of promoting competition and making more spectrum availible to all wireless prJviders. ' As you note, the Incentive Auction will fully fund any remaining funds necessary forFirstNet' Specifically, under the rules the Commission recently adoptei, the proceeds of theauction must be sufficient to fund incentive payments to participating broadcisters, the other mandatory expenses set forth in section e+oiliyzlof the Spec,'.r* irt,i]f,J *y psrF amountsstill needed in connection with FirstNet after ihe'ciose of the H Block and awsl: *o;oil,.t*'-The Spectrum Act establishes the priority for making payments or deposits from the pSTF as amounts are deposited into the Fund, including for FirstNet and for aencit reduction. t The Spectrum Act requires only that the forward auction generate proceeds sufficient to pay winning bidders in the [ffiffi3}fiHtand cover relevant administrative costs of the auction and an estimate of relocation co-sts subject to - 2 I expect that these two.auctions will nearly or fully fund the PSTF with amounts needed for FirstNet, even beforethe Incentive Auction takes place. Page2 -- The Honorable Henry Waxman Thank you again for sharing your support of the Commission's efforts in creating the firstever Incentive Auction, while bringing the benefits of competition to consumers across thenation' I look forwardto working with you toward our muiual goal of a successful auction forthe beneht of all American consumers. ' ru(t