FCC Says Decision Denying Bidding Credits to Dish-Affilated DEs in Keeping With FCC Precedent
The FCC told the U.S. Court of Appeals for the D.C. Circuit it was justified in its order denying Northstar and SNR, the designated entities Dish Network used to bid in the AWS-3 auction, bidding credits because of their ties…
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to Dish. The DEs filed their appeal of the case in September (see 1509180048). The ties between the companies was undeniable, the FCC said. “SNR and Northstar had no staff, no network facilities, and no track record providing wireless service, yet in a recent FCC spectrum auction, they placed more than $13 billion in winning bids -- all backed by DISH … a Fortune 250 corporation that owns an 85-percent stake in both SNR and Northstar,” the FCC said in the pleading. “Going forward, DISH will provide all of the funds for build-out of SNR’s and Northstar’s licenses and working capital.” In addition, “pursuant to virtually identical agreements with SNR and Northstar, DISH will control almost every function required of a wireless network licensee,” the agency said. The FCC decision that Dish controlled the two DEs is easily justified, the agency said. “The companies’ financial dependency on DISH is enormous; DISH’s managerial responsibilities include virtually all the functions required of a wireless network licensee; and DISH enjoys investor protections that extend well beyond those deemed necessary by other investors in both companies.” The two DEs don't dispute those facts, the FCC said. “Instead, they argue they relied on “agency precedent” in structuring their relationships with DISH. "In fact, SNR and Northstar disregarded relevant agency precedent, including the rules and published orders the Wireless Bureau directed them to review prior to Auction 97,” the AWS-3 auction.