RULES THAT WOULD MAKE IT EASIER for small businesses to bid for the D-Block license in the upcoming January auction are under attack from the three companies that have entangled the Federal Communications Commission in auctionrelated litigation since last year.
Council Tree Communications Inc., Bethel Native Corp. and the Minority Media and Telecommunications Council asked the FCC to repeal a recent waiver that is expected to help startup Frontline Wireless L.L.C. in its campaign to capture the D Block in the 700 MHz auction. Bidding, which could ring up as much as $15 billion, is set to begin Jan. 24.
Council Tree joins Verizon Wireless, the No. 2 wireless service provider, in urging the FCC to overturn the waiver. Under the rule at issue, a small business, or designated entity, applicant is eligible for a bidding discount up to 25% so long as it does not wholesale more than 50% of its spectrum capacity. The FCC waived that provision, concluding circumstances of the D-Block licensee, and other factors made strict adherence to the rule unnecessary.
“Once again the commission has improperly adopted a fundamental change to the DE rules on the eve of a major auction,” stated Council Tree. “DEs in general-whom the FCC is bound by law to ensure have sufficient time to prepare business plans-could not possibly respond to this change announced just 11 business days prior to the closing of the short-form window. If the commission recognizes the 50% retail rule as defective, then it should provide relief for all DEs in Auction 73, not the extremely narrow pool who could conceivably participate on such short notice in bidding on a spectrum block that carries a $1.4 billion minimum bid.” The short-form application filing window closed Dec. 3.
Council Tree, Bethel and MMTC continue to challenge DE rule changes to last year’s auction.
“Again we are troubled by the consistent lack of transparency in the commission’s decision-making process,” stated Council Tree, touching on a more general complaint about FCC processes that Democratic lawmakers have begun to investigate.
Frontline response
Frontline Wireless, which accused Verizon Wireless of attempting to stifle future competition after the carrier challenged the 700 MHz DE waiver, had a different response to Council Tree’s attack on the D-block waiver.
“Council Tree’s petition endorses a wholesale business but then argues that the commission did not go far enough. The commission should reject this attempt to derail the important DE decision in the 700 MHz auction as a tactical step to re-litigate the AWS proceeding,” said Gerard Waldron, outside counsel to Frontline. “It is well settled in administrative law that an expert agency can tackle one issue one at a time, and the commission took the right step here.”
Bidder pool grows
Meanwhile, MetroPCS Communications Inc. and Towerstream Corp. said they plan to bid for licenses.
