The Minority Media & Telecom Council (MMTC) filed a motion for a ...

they “will lead to substantial gamesmanship and fraud, imperiling fatally the Commission’s only significant policy aimed at fostering minority broadcast ownership -- auction bidding credits.” MMTC said the auction rules contained a major flaw that it said allowed an auction bidder to conceal from opponents that it actually wasn’t entitled to bidding credits for a new entrant. The flaw allows companies that aren’t new entrants to create a “shell” new-entrant structure, then later revert back to what it had planned originally. “Genuine new entrants, including many minorities, will be unable to raise financing to participate in an easily corruptible auction system; or if they do participate, their chances of prevailing against well-financed fraud artists will be minimal,” MMTC said in its motion for a stay. Only a stay can prevent the “disaster” of the FCC’s proceeding with Auction #37, in which the Commission is offering “probably the last new FM facilities in medium-sized and small communities” across the country, the Council said: “Once these approximately 350 construction permits are issued, they cannot be realistically be recalled.” MMTC said it was a “national scandal” that only 1.3% of the asset value of the radio industry was controlled by minorities. It suggested a remedy would be to post on the auction Web site the loss of any attributes that entitled applicants to bidding credits. Auctions would feature next-day status reports on bidding, allowing for post-auction payment adjustments. “Thus, the burden on the Commission and on bidders of preventing auction gamesmanship is virtually zero,” MMTC said. An FCC spokeswoman said the filings wouldn’t affect the timing of the release of the media ownership order, which is expected this week. The agency isn’t required to act on MMTC’s motion or petition within a certain time frame, she said.