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FCC Weighing Changes to Auction Discount Rules

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Mar 23, 2015, 3:58 PM   by Eric M. Zeman

The FCC plans to alter how companies qualify for discounts in spectrum auctions. The rules came under fire recently after Dish Networks won $13 billion in spectrum by bidding through smaller entities. The smaller entities are eligible for discounts, wiping about $3 billion from the total price Dish will have to shell out. Dish's competitors, including AT&T and Verizon, decried the strategy as unfair because Dish is a large company and the discounts are meant for small companies. In response, FCC Chairman Tom Wheeler has floated a public notice with the other commissioners, according to sources cited by Reuters, that will close this loophole. Wheeler asked his colleagues to comment on how best to reform the discount program moving forward. The idea behind the discount program is to encourage smaller, regional companies to participate in spectrum auctions.

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