FCC Considers Tightening Rules On Airwave-Auction Discounts

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[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz Amy.Schatz@wsj.com]
The Federal Communications Commission is considering tightening rules that have allowed some national wireless carriers to receive multimillion-dollar discounts in spectrum auctions, but the change may not come before a $15 billion auction set for this summer. The FCC will propose closing a loophole that gives discounts to small businesses -- an effort to help small firms compete for licenses with national phone carriers. Critics say the system is being abused because large phone companies are allowed to team up with small businesses to obtain a 25% discount on some licenses. The Commission could unveil its proposal and open the issue for public comment as soon as this week. The revisions would prohibit some alliances between small businesses and national carriers and propose other restrictions. It remains uncertain when the FCC might finalize the proposal and how it might affect the summer auction.
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