FCC Tightens Wireless Auction Discount Rules

FCC TIGHTENS WIRELESS AUCTION DISCOUNT RULES
[SOURCE: Reuters]
The Federal Communications Commission has tightened rules to prevent big wireless companies from getting discounts on airwaves sold at auction by partnering with smaller entities. Bidding credits for FCC wireless auctions are available only to those entities that meet financial criteria and abide by rules governing who controls them among other requirements. The move comes just over two months before the FCC plans to start auctioning hundreds of licenses that could be used for advanced wireless services such as high-speed Internet access or video. The FCC said late on Tuesday it had adopted rules that bar a bidder or licensee that leases or resells more than half of the spectrum capacity of a license from qualifying for the discounts. Additionally, a bidder or licensee that leases more than 25 percent of the spectrum on a license would be examined to determine if it still qualifies for auction discounts, the agency said. The FCC also decided that if a licensee that qualified for discounts sold or leased the airwaves within the first five years of the license term, the entire discount would have to be repaid plus interest. The agency created a sliding scale requiring repayment of some of the discounts over the rest of the license term.
http://today.reuters.com/news/newsArticle.aspx?type=technologyNews&story...

* See FCC Order: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-52A1.doc

* FCC Closes Wireless Auction Loopholes
http://www.broadcastingcable.com/article/CA6328456?display=Breaking+News

* FCC tightens auction discount rules
http://www.usatoday.com/printedition/money/20060427/fcc27.art.htm

* MAP reaction:
The FCC order "makes no effort to consider how changes to the DE credit program will promote Congress’ goals of promoting diversity of the public airwaves and ensuring that all Americans enjoy access to the economic opportunities made possible by advanced wireless services."
http://www.mediaaccess.org/MAP%20Reaction.pdf