NAACP, CWA Challenge Dish/AWS-3 Bidders

Over a half dozen petitions, including a joint filing by the NAACP and Communications Workers of America, have been filed asking the Federal Communications Commission to reject the winning AWS-3 spectrum auction bids of Northstar and SNR Wireless, the two designated entities (DE's) that bid mostly with money supplied by Dish, which has a major ownership stake (85 percent) in both.

The petitions' allegations vary, but at root is the argument that the smaller companies fronted for/colluded with Dish, which, if the FCC grants the 25 percent bidding credits DE's qualify for, would only have to pony up $10 billion for $13.3 billion in licenses. NAACP And CWA, which represents about 700,000 communications workers, said that while they applaud the DE program and the overall success of the AWS-3 auction, the financial ties between Dish and the companies means they do not qualify as DE's and giving them a $3.3 billion discount would be unjust enrichment and violates FCC rules. Also among the petitioners was the National Action Network. AT&T, the top bidder in the AWS-3 auction, has been critical of the bids, but did not petition to deny the deal, having signaled it was looking for changes to the rules going forward.