FCC Poised to Reject Dish Partners’ Spectrum Discounts
Apparently, the Federal Communications Commission is poised to reject $3.3 billion in discounts requested by partners of satellite-TV provider Dish Network in the government’s $45 billion airwave auction earlier in 2014. After a review of $13.3 billion of winning bids by two small companies backed by Dish, FCC officials concluded that the two entities didn’t qualify for the small-business discounts. Apparently, FCC Chairman Tom Wheeler on July 15 circulated a draft order to the FCC’s other four commissioners.
The auction, which lasted for more than two months, drew more than double the amount analysts expected. Dish’s entities were surprise second-place finishers with a total of $13.3 billion in winning bids. AT&T was the auction’s top bidder with $18.2 billion of licenses, and Verizon won $10.4 billion. Bidding is anonymous during the auction, but Dish and the two entities stayed in contact with one another because they disclosed the arrangement in advance. That meant there were instances where rivals saw three distinct bidders when in fact those were Dish and its partners working together. Dish has said it adhered to the rules and noted that its practices didn’t diverge from those employed by other companies in previous FCC auctions. For this auction, Dish had invested in two small companies, SNR Wireless and NorthStar Wireless, each of which applied for the FCC’s 25 percent discount for small businesses.