FCC Limits Discounts to Small Carriers
Apr 26, 2006, 11:28 AM by (staff)
The Federal Communications Commission today decided to limit small carrier discounts on future auctions. Currently large carriers partner with small regional carriers to bid on spectrum because the small carriers are eligible for a 25% discount on the bidding price. This 25% discount was implemented so that small carriers could compete for spectrum against much wealthier national carriers. The new rules will prevent large carriers from receiving the small carrier discount by forcing small carriers to pay full price if they lease or resell 50% or more of the spectrum they win. Additionally, the FCC said it would scrutinize whether a small carrier that leases or resells more than 25% of their winnings is still eligible for the discount.
FCC Keeps Auction Reserve at 30 MHz
The FCC today finalized its proposed rules for next year's 600 MHz spectrum auction and kept the reserve for smaller carriers at 30 MHz. T-Mobile and others petitioned the FCC to raise the reserve to 40 MHz, but FCC Chairman Tom Wheeler believes the 30 MHz cap offers plenty of opportunity for those who may bid.
FCC Embraces New Auction Rules for Designated Entities
The FCC today formally adopted a Report and Order that makes changes to how small businesses participate in spectrum auctions. The changed rules are a response to Dish Networks' use of designated entities to place bids on its behalf in the AWS-3 auction earlier this year.
Dish Unhappy About FCC's Position On Auction Discounts
Dish Networks has confirmed the FCC plans to deny it $3.3 billion in discounts on spectrum licenses. Dish used three small companies — called designated entities — to place bids on its behalf during the AWS-3 auction earlier this year.
FCC Denies Dish $3.3 Billion in Auction Discounts
The FCC has officially and unanimously rejected Dish Network's $3.3 billion in AWS-3 spectrum auction discounts. Dish used three smaller companies, in which it owned an 85% stake each, to place bids on its behalf.
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