FCC Commissioner Pai Objects to Dish’s Wireless Deal

Federal Communications Commission member Ajit Pai is objecting to Dish Network’s claim on more than $3 billion in discounts aimed at small business in the government’s auction of wireless licenses. He plans to ask FCC Chairman Tom Wheeler to investigate the award, saying that giving such a lucrative break to a company as large as Dish “makes a mockery” of the small-business discount program.

The move adds an element of uncertainty to an auction that drew surprisingly aggressive bidding that culminated in a record $44.9 billion being spent, mostly by telecom companies looking to meet growing demand for the airwaves that carry signals to smartphones. Dish racked up $13.3 billion in winning bids, topping even Verizon Communications, the largest US wireless carrier. It qualified for the discounts by bidding via a pair of partnerships that reported having less than $15 million in annual revenue. Its partners included mutual-fund giant BlackRock, employees of private-equity firm Madison Dearborn Partners and a native Alaskan investment fund, among others.