Northstar Wireless and SNR Wireless License Co surrendered 197 AWS-3 spectrum licenses and paid a $413 million fine to the FCC for defaulting on their $3.3 billion payment.
Dish Networks participated in this year’s auction through Northstar and SNR. Dish hoped the smaller stature of the designated entities would qualify them for a discount on the spectrum licenses. Together, they won $13.3 billion worth of licenses and expected to receive a discount of $3.3 billion.
The FCC later concluded that Dish held a controlling interest in the designated entities and they did not qualify for the small business discount. As such, the entities were on the hook for the full $13.3 billion.
The companies paid the FCC $10 billion, but missed the deadline for paying the final $3.3 billion. As such, they have returned the spectrum licenses and paid the resulting fine.
The FCC will re-auction the licenses after next year’s 600MHz incentive auction, though Dish, Northstar, and SNR will be on the hook to cover the balance if the licenses don’t win $3.3 billion when put back on sale.
Dish and the smaller companies held onto some 505 spectrum licenses won during the AWS-3 auction, for which they have paid in full.
