WASHINGTON—The Federal Communications Commission as early as today is expected to issue a new ruling addressing controversial changes to small business bidding rules ahead of the scheduled Aug. 9 start of the advanced wireless services auction, according to sources.
Sources said a move by the FCC is likely today or tomorrow as the agency can reconsider its own decision within 30 days of its publication in the Federal Register. The DE ruling, published May 4 in the Federal Register, is set to become effective June 5.
The FCC is under mounting pressure to rescind revisions to small business—or designated entity—bidding guidelines approved by the agency on April 25, two weeks before the original short-form application filing deadline. In that decision, the agency declined against prohibiting large wireless carriers from partnering with DEs as it originally proposed. DEs are eligible for bidding discounts up to 25 percent and other benefits.
Instead, the FCC extended restrictions on DE license sales from five to 10 years and made the new rule retroactive. The commission also decided to deny benefits to any DE that leases, resells or wholesales more than 50 percent of its spectrum capacity to others.
Small wireless firms, Alaska native entities and venture capital firms oppose changes to the designated entity program, arguing they are unfair, legally unsound and hurtful to DE funding.
Council Tree Communications Inc., Minority Media and Telecommunications Council and Bethel Native Corp. warned the FCC they will sue the commission if it does not overturn major portions of the DE ruling.
Nearly two weeks ago the FCC moved the start of the AWS auction from June 29 to Aug. 9, and pushed back various filing deadlines.
The AWS auction will be the largest ever conducted by the FCC. The 1,122 wireless licenses up for sale could generate more than $10 billion for the U.S. Treasury.
