FCC Commissioner Pai Statement on Abuse of the Designated Entity Program

The [Federal Communication Commission’s] Wireless Telecommunications Bureau disclosed that two companies in which DISH has an 85 percent ownership stake claimed over $3 billion dollars in taxpayer-funded discounts when purchasing spectrum in the AWS-3 auction.

Those discounts came through the FCC’s designed entity (DE) program, which is intended to make it easier for small businesses to purchase spectrum and compete with large corporations. DISH, however, has annual revenues of almost $14 billion, a market capitalization of over $32 billion, and over 14 million customers. Its participation makes a mockery of the DE program. I call upon Chairman Wheeler to immediately launch an investigation into these multi-billion dollar subsidies. One analyst was quoted in a recent press story as saying, “[DISH] just created $3.3 billion worth of value [for itself]. Now we will see if they get away with it or not.” For the sake of the FCC’s integrity, American taxpayers, and genuinely struggling wireless entrepreneurs, I hope not. Moreover, the Commission must reform its rules to stop abuse of the DE program. The American people should be outraged about this. I certainly am. And I am determined to do everything in my power to stop it from happening again.