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.
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