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Verizon Annoyed By Dish's AWS-3 Bidding Tactics

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Feb 28, 2015, 11:22 AM   by Eric M. Zeman

Like AT&T, Verizon Wireless is upset with the tactics used by Dish Networks in the recent AWS-3 spectrum auction. It accused the firm of artificially raising prices by creating perceived demand where in fact there was none. Dish used three smaller entities to place bids in the auction, but didn't place any bids itself. Verizon claims Dish closely managed these three entities, two of which ended up winning $13.3 billion in spectrum licenses, beating out Verizon and others. Further, because Dish used to smaller entities to bid for the spectrum, it scored a $3 billion discount on the license costs. Verizon filed a petition with the FCC asking the agency to look into Dish's actions. Dish, however, defended its tactics. "Anyone who's been in auctions knows that's impossible to do," argued Dish Chairman Charlie Ergen. "There was nothing artificial about it. We wanted to win the licenses. We were disappointed we didn't win all the licenses." The FCC hasn't said if it might take any action against Dish.

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Feb 28, 2015, 1:21 PM

Why is Dish allowed to USE Smaller entities to place bids?

There seems to be a problem here with allowing them to use smaller entities as contractors just to place bids. Verizon is correct. At a minimum, DISH should lose their 25% discount since they are not a small entity bidding for spectrum and pay the extra $3 billion. Possibly a fine for the deception as well?

No way the FCC would allow Verizon or AT&T to do this!
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