FCC Embraces New Auction Rules for Designated Entities

Posted by at 10:31 am on July 17, 2015

fcc-logoThe FCC has formally adopted a Report and Order that makes changes to how small businesses participate in spectrum auctions.

The changed rules are a response to Dish Networks‘ use of designated entities to place bids on its behalf in the AWS-3 auction earlier this year.

Dish Networks won $13 billion worth of spectrum licenses, but received a $3 billion discount by placing bids through three smaller companies that qualified for discounts.

Some if the changes include caps on the total amount of bidding credits small businesses can receive, as well as a prohibition of joint bidding or bidding for larger parties with a controlling interest.

“With today’s action, the Commission is taking the following steps to provide small businesses— including enterprises owned by women and minorities— with a better on-ramp into the wireless industry, to increase the participation of rural service providers in future auctions, and to eliminate outdated rules that no longer reflect the developments in today’s wireless marketplace,” said the FCC.

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