FCC Proposes Tightening Auction Rules

[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC has decided to change its rules for the auction of spectrum for advanced wireless services to try and make sure that the bidding credits and reserved spectrum blocks that are supposed to go to small businesses actually do so. In issuing the notice of proposed rulemaking Friday, the FCC said it was prompted by evidence that some small businesses that apply for so-called "designated entity" status had already established a "material relationship" with a "large, in-region wireless service provider." Translation: The small business bidder has agreed to sell the spectrum to a larger company that could not qualify for the discount. The commission has also asked for comment on whether it should deny "designated entity" status to bidders with "material relationships" with cable providers, content or equipment companies, or other media interests. The next auction for spectrum to be used for advanced wireless services is scheduled to begin June 29, 2006.
http://www.broadcastingcable.com/article/CA6304977?display=Breaking+News...
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