FCC might reject Dish's "small business" discounts from last auction

mike123abc

mike123abc

Thread Starter
Too many cables
Supporting Founder
Sep 25, 2003
24,403
3,336
Norman, OK
http://www.denverpost.com/business/...reject-dish-entities-spectrum-discount-claims

During the last cell phone spectrum auction Dish used 2 small companies to bid for it to get discounts of around 3.3 billion. Now the FCC is considering forcing Dish to pay the full price or possibly invalidate the bids.

Shortly after the auction wrapped up, FCC Chairman Tom Wheeler told the commission's staff to study SNR and Northstar's applications closely, and told the staff that he thought something didn't smell right, one of the people said. The FCC has yet to approve the discounts and may decide the companies aren't eligible, the people said. While the agency is still weeks away from an official determination, the review has turned up a number of issues that could make the road to approval tough, they said.
 
Voyager6

Voyager6

*Cancelled*
Pub Member / Supporter
Lifetime Supporter
Nov 30, 2005
17,097
5,324
Wokeville
Is this a can of worms that the FCC really wants to open? All the major players in the spectrum bids used or have used proxies. Will they invalid all the previous awards?
 
mike123abc

mike123abc

Thread Starter
Too many cables
Supporting Founder
Sep 25, 2003
24,403
3,336
Norman, OK
Using proxies is allowed by the rules. But, when the proxies claim a 3.3 billion discount on a 13 billion bid(s) for being a small business is when the government takes notice!

The small business concept was mainly conceived for rural areas where a local cell operator could set up service in an area that the big companies were not interested in serving. It was not considered that it would be used for nationwide spectrum bidding.
 
Voyager6

Voyager6

*Cancelled*
Pub Member / Supporter
Lifetime Supporter
Nov 30, 2005
17,097
5,324
Wokeville
Using proxies is allowed by the rules. But, when the proxies claim a 3.3 billion discount on a 13 billion bid(s) for being a small business is when the government takes notice!

The small business concept was mainly conceived for rural areas where a local cell operator could set up service in an area that the big companies were not interested in serving. It was not considered that it would be used for nationwide spectrum bidding.
Short-sightedness on the FCC's part. They set up the rules and now they object due to the size of the discount.
 
osu1991

osu1991

SatelliteGuys Master
Sep 4, 2004
9,939
2,362
Broken Arrow, Oklahoma
Scott Greczkowski

Scott Greczkowski

Welcome HOME to SatelliteGuys!
Staff member
HERE TO HELP YOU!
Sep 7, 2003
101,082
21,248
Newington, CT
Yet Verizon and AT&T both used small companies to bid too... only difference is they didn't win with their bids.
 
  • Like
Reactions: navychop
mike123abc

mike123abc

Thread Starter
Too many cables
Supporting Founder
Sep 25, 2003
24,403
3,336
Norman, OK
Everyone knew Dish was working with and had majority owner ship of these two companies. I do not really see an issue if Dish takes turns bidding via different companies. But, I do have an issue with Dish trying to claim they are small operators and deserve a fee break when Dish has significant ownership of them and is paying for their bids.
 
  • Like
Reactions: dare2be
ChadT41

ChadT41

THE BEST THERE HAS EVER BEEN
Pub Member / Supporter
Apr 20, 2014
11,065
4,448
Mesa, Az
I think they should honor their rules they set forth, and make adjustments for future auctions. This was not the fault of Dish, as they followed the rules as outlined. Business is about finding those loopholes and making the most profit. I congratulate Dish for doing EXACTLY that.
 
D

DishSubLA

SatelliteGuys Master
Apr 9, 2006
5,440
1,402
So how is this different than when Verizon (and possibly AT&T) used the same "practice" (scam)? Old Tom is a former cable TV lobbyist and might be doing this as a favor from cable to hurt Dish. Or I should say, Old Tom, indeed, does all he can for cable, but couldn't deliver the Comcast/TWC merger as The White House seemed to have been upset with the "hands-off" FCC that our Prez personally appointed. Yes, one marching order on Monday (and appointing a former cable lobbyist), but then different marching orders on Wednesday. But such is the current White House.
 
ChadT41

ChadT41

THE BEST THERE HAS EVER BEEN
Pub Member / Supporter
Apr 20, 2014
11,065
4,448
Mesa, Az
I do not know how to respond to this without making it political, so I will leave this little snidbit... Dictators such as Obama will be the reason our infrastructure will crumble, and will not matter about who owns the spectrum, as we will have to rebuild again. We are one step from a "do-over".
 
  • Like
Reactions: JSheridan
MikeD-C05

MikeD-C05

Pub Member / Supporter
Pub Member / Supporter
Nov 25, 2003
27,754
19,252
Nederland , Texas
I do not know how to respond to this without making it political, so I will leave this little snidbit... Dictators such as Obama will be the reason our infrastructure will crumble, and will not matter about who owns the spectrum, as we will have to rebuild again. We are one step from a "do-over".
You're right. You don't know how to respond to this without making it political.:mad:
 
A

AZ.

SatelliteGuys Pro
Mar 26, 2011
1,217
450
crazy
I do not know how to respond to this without making it political, so I will leave this little snidbit... Dictators such as Obama will be the reason our infrastructure will crumble, and will not matter about who owns the spectrum, as we will have to rebuild again. We are one step from a "do-over".

what???? We elected a dictator?......Doesn't congress pass bills to help infrastructure????
Do over?.......... Does this mean we need to start more wars? Please enlighten us to the "easy fix"
 
Ronnie-

Ronnie-

Member of the Year
Staff member
HERE TO HELP YOU!
Aug 28, 2007
31,192
11,339
mississippi
Guys, we still have a Pit for political discussion for pub members. If that is your thing, please join up, and discuss it there. Lets not have it here.

Thanks!
 
navychop

navychop

Member of the Month - July 2014!
Pub Member / Supporter
Lifetime Supporter
Jul 20, 2005
54,837
20,180
Northern VA
Don't change the rules retroactively, after the fact. Maybe change them for the future. I suspect the courts will not allow invalidation.
 
ChadT41

ChadT41

THE BEST THERE HAS EVER BEEN
Pub Member / Supporter
Apr 20, 2014
11,065
4,448
Mesa, Az
Don't change the rules retroactively, after the fact. Maybe change them for the future. I suspect the courts will not allow invalidation.
That's my whole thing. That's like going to work, doing what you need to do according to current rules, and then getting in trouble after you finish, because they want to make new rules and what you did before wasn't according to their new rules that haven't even come out yet.
 
  • Like
Reactions: navychop

Users Who Are Viewing This Thread (Total: 0, Members: 0, Guests: 0)

Top