Rural Wireless Association Wants Bidding Credits for Rural Telcos
In reforming its designated entity (DE) rules, the FCC should start offering bidding credits to carriers that qualify as a “rural telephone company,” said the Rural Wireless Association in comments filed at the FCC in docket 12-268. CTIA urged the FCC to narrow its "former defaulter" rule, which requires bidders to make larger upfront payments for licenses if they ever defaulted on a license or were delinquent on a debt owed to a federal agency.
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The DE rules have been under scrutiny since Dish Network used bidding credits to buy $13.3 billion worth of licenses for $10 billion through two DEs in the AWS-3 auction (see 1502020039). In July, the FCC loosened the DE rules for the AWS-3 auction as the agency explores whether the rules should be changed for other auctions as well (see 1407240042).
“The Commission should adopt DE and competitive bidding rules that promote deployment of advanced wireless services to consumers living, working and traveling in rural areas and encourage auction participation by the small rural carriers that serve those consumers,” RWA said. RWA said the Communications Act requires the FCC promote the deployment of services “for the benefit of the public, including those residing in rural areas.” Rural carriers should be eligible for a credit equivalent to the average credit available to small businesses, 25 percent, RWA said. Making rural carriers eligible is a matter of “common sense,” the group said. “It would help the Commission to better target resources to all bona fide DEs -- companies that actually need bidding credits to have a hope of competing with nationwide carriers for spectrum at auction.”
CTIA said the FCC should permanently revise its former defaulter rule, which it changed on an interim basis for the AWS-3 auction (see 1409030060). “The circumstances and risks of default” that led the Commission to adoption of the rule no longer exist and changing the rule would be “in the public interest,” CTIA said. “At the same time, the more narrowly tailored rule will continue to preserve the integrity of Commission auctions.”