As authorized by Title VI of the Middle Class Tax Relief and Job Creation Act of 2012 (the Spectrum Act), the Federal Communications Commission is pursuing an incentive auction of the radio broadcast spectrum in which broadcasters can voluntarily relinquish their spectrum usage rights in exchange for a portion of the resulting auction proceeds. This will be the first such auction ever attempted, and there are a number of challenging issues relating to the structure of the auction that may determine not only the success or failure of the auction, but also which entities will be allowed to participate in the auction, and which are likely to challenge the auction rules.
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