WASHINGTON-Members of an association representing small and minority-owned businesses have banded together with local attorneys and several C-block personal communications services auction winners in a campaign to persuade the Federal Communications Commission to push back the D-, E- and F-block PCS auctions for at least a month.
According to Micheal Walker, who heads the National Paging & Personal Communications Association, rule changes recently adopted by the FCC for the next round of auctions removed any special bidding consideration ever given to small businesses when upfront payments doubled and the number of interest-only payment years decreased. With D-, E- and F-block bidding set to begin Aug. 26, Walker’s group and its sympathizers don’t have much time to sway the commission. “We need more time-30 to 60 days-to respond to the new rules,” Walker said. “The FCC overreacted to the two C-block defaults by raising the ante and decreasing the interest-only years. The FCC must realize that it needs to give small businesses a break.” Walker added that the group does not want to change the rules; it just wants time to get additional financing together.
NPPCA has put together a $15,000-$20,000 war chest to fund the lobbying effort it plans to launch this week at the FCC and on Capitol Hill.
Meetings have been scheduled with FCC General Counsel Bill Kennard and Wireless Telecommunications Bureau Chief Michele Farquhar; and Walker hopes other commissioners and key staffers will listen to principals of Pocket Communications, Windkeeper Communications, Roberts & Roberts Inc., Wireless Ventures and Northern Telecom Inc. along with communications attorneys Tom Hart and Eliot Greenwald.
Even though he says NPPCA’s cause has the backing of two highly placed commission officials, Walker admitted that Hundt and Farquhar probably won’t be receptive to change, and that no staffer will cross these two.
“I’ve talked to Kennard’s office, and he says if we want to stop this thing, we’ll have to go to court,” Walker said. However, the group plans to produce letters of recommendation from several representatives and senators active in telecommunications matters and FCC oversight. If NPPCA is unsuccessful in getting a commitment from the commission to delay the next auction, Walker already has an alternative plan.
NPPCA is almost ready to submit to the General Accounting Office its analysis of revenues that could be generated by the D-, E- and F-block auctions; the group’s undisclosed economist will submit that more than $100 million will be garnered because of the new rule changes. The FCC already submitted its report to GAO, saying that less than $100 million will be gained, so it will be one economist’s word against another’s.
The $100 million mark is key to Walker’s plan, because it is that monetary figure that triggers possible congressional review of any new FCC ruling. If it chooses, Congress can take up to 60 days to scrutinize any agency decision that concerns $100 million or more, and such a move automatically would stop the auctions until well into the fall. Walker’s final option is to take the commission to court, but he hopes it won’t get to that point.
“The extra 30 days is less of a bitter pill than the FCC thinks.”
