Dish Responds to FCC’s Move to Deny Spectrum Auction Discounts

Dish Network confirmed July 24 that Federal Communications Commission Chairman Tom Wheeler has circulated a draft order to deny $3.3 billion in small business discounts sought by the satellite provider’s affiliated entities in an airwaves auction earlier in 2015. Dish Executive Vice President Stanton Dodge said, “we respectfully disagree with the proposed denial of the bidding credits.” He said Dish followed all the legal requirements needed to qualify and noted that the satellite provider’s participation in the auction helped make it the “most successful” one in the FCC’s history. Dish said it met with the FCC’s wireless bureau July 22 and was told about the contents of the order. The FCC staff’s analysis found that Dish does, in fact, have a “controlling interest” in its affiliated bidding entities, SNR Wireless and Northstar Wireless. Therefore, Dish’s revenues were attributed to those entities, making them ineligible for the 25 percent bidding credit for small businesses under the FCC’s rules, Dish said.

Dish provided 85 percent of the capital in both Northstar and SNR. But in filings with the FCC, both entities had reported revenue of less than $15 million and said that Dish didn’t control them. The two entities won $13.3 billion in wireless licenses in the auction earlier in 2015. The FCC found that SNR and Northstar are still eligible to hold those licenses, Dish said. The FCC told Dish representatives in the meeting that it will not designate the matter for a hearing or refer it to the enforcement bureau or Justice Department.