WASHINGTON-The White House opposes a spending measure provision enabling Northpoint Technology Ltd. to acquire wireless licenses free rather than competing for licenses at a government auction next year, objecting to what congressional budget experts say would amount to a $100 million giveaway to one firm.
“Auction-based spectrum policy has been a mainstay of wireless services for a decade. Interfering for the efficient allocation of federal spectrum licenses by directing the award of licenses to a particular company would undermine the federal auction systems and establish a damaging precedent,” stated the Bush administration Monday.
The amendment is included in an appropriations bill funding the Federal Communications Commission, Commerce Department and other agencies. The administration also told Congress it wants funding restored to enable a small portion of wireless license sales to underwrite the FCC’s auction program.
Previously, the White House issued a veto threat to a spectrum relocation fund bill that includes an identical Northpoint rider. Northpoint argues the FCC has not used auctions to award other satellite licenses.
