FCC Approves Notice Seeking Additional Comment on DE Issues
The FCC approved a public notice seeking additional comment on designated entity (DE) rules that would encourage bidding by small market players in FCC auctions, via electronic voting. Chairman Tom Wheeler circulated the PN in March (see 1503240055). The item…
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was stricken from the agenda of the FCC meeting shortly before it began, so there was no discussion at the meeting by commissioners. Questions have been raised about Dish Network’s use of two DEs in the AWS-3 auction to obtain licenses at reduced prices through bidding credits, including on Capitol Hill (see 1503090034). Wheeler told reporters after the meeting the Wireless Bureau is still collecting information on the bids by the DEs. The FCC will seek comment on the long-form applications by the DEs, Wheeler said. The FCC is “in the first stages” of the investigation, he said. “We will make a decision based on the record, based on the facts.” Rep. Frank Pallone, D-N.J., ranking member of the Commerce Committee, said he was pleased the FCC had approved the notice, "taking action to make sure the agency's policies help small businesses not just survive, but compete, thrive, and best serve their consumers." “Soliciting further input on alternative proposals and exploring other issues raised in the record to date will provide a more complete record for us to evaluate and act upon,” the notice said. It also allows commenters to weigh in based on the lessons learned in the AWS-3 auction, the FCC said. “Abuse of the DE program has robbed actual small businesses of the spectrum they need to serve their local communities,” Commissioner Ajit Pai said in a statement accompanying the order. “This taxpayer-funded program is now being used by Fortune 500 companies to disadvantage the very small companies it was intended to help. This must end.” The AWS-3 auction “put a spotlight on the questionable uses of the FCC’s designated entity program,” Commissioner Mike O’Rielly said. “Although the Commission is taking the first steps to consider rule deficiencies, this does not substitute for the distinct and thorough review of the AWS-3 designated entity applications, which must occur to ensure that the entities receiving government subsidies are in compliance with our rules.” Commissioner Mignon Clyburn said the DE rules are in need of an overhaul. “If we are careful and approach this proceeding in a fair and objective manner, I am confident that we will strike the proper balance and realize all of these important public interest goals,” she said.