WASHINGTON-A federal appeals court last week heard arguments on whether the Federal Communications Commission violated the law and hurt small businesses in crafting rules for 800 MHz specialized mobile radio auctions dominated by Nextel Communications Inc.
Robert Schwaninger, lawyer for Small Business in Telecommunications, said the FCC’s 800 MHz auction rules and its scheduling of auctions created so much uncertainty that small SMRs were effectively denied the right to bid for wireless licenses. He also accused the FCC of misrepresentations in handling the SMR regulatory proceeding
“Certainty was not provided to small business,” Schwaninger told Judges Karen Henderson, Judith Rogers and David Tatel last Thursday.
FCC lawyer Roberta Cook insisted the agency did not run afoul of the law in crafting 800 MHz SMR auction rules.
The judges’ questions focussed on jurisdictional issues and the small business definition adopted by the FCC for the auction. A decision is expected in the next 60 to 90 days.
A decision against the FCC could have major repercussions for Nextel if a new 800 MHz auction is ordered by the U.S. Court of Appeals for the District of Columbia Circuit.
Nextel is the largest holder of 800 MHz licenses. Besides being highly leveraged, the nation’s top SMR needs more frequencies to handle growing voice traffic in major markets and new Internet-driven wireless services.
In December, Nextel dropped out of C-block personal communications services re-auction as prices climbed.
