WASHINGTON—The Congressional Black Caucus has urged Federal Communications Commission Chairman Kevin Martin to prohibit the awarding of spectrum auction bidding discounts to small business applicants affiliated with the five largest mobile phone carriers in the United States.
“We are concerned that the commission’s current auction rules, well-intended though they may have been, allow large national carriers to extend their already-considerable influence in the industry through material partnerships with [designated entities],” stated 10 caucus members in a March 3 letter. “It is important that DEs have sources of capital and industry experience on which to rely, but allowing national wireless carriers to perform these functions is no longer good policy in light of their overwhelming dominance in the industry. The result is that DEs—small businesses, new entrants, and minority-owed businesses—are hampered in their ability to compete effectively in the auctions and in post-auction markets against the large national carriers and their partners.”
The FCC is considering reforming the DE program and making controversial procedural changes in advance of the June 29 start of the advanced wireless services auction. The agency plans to sell 1,122 wireless licenses in the 1710-1755 MHz and 2110-2155 MHz bands. The Congressional Budget Office estimates the AWS auction could generate $15 billion for the U.S. Treasury. A portion of AWS auction receipts are expected to fund a variety of communications-related programs approved by Congress.
The cellular industry argues the FCC DE plan discriminates against incumbent wireless carriers.
