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

[mike123abc]

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]

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]

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]

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]

Verizon: Dish & Cos. Colluded on AWS-3 Auction Bids

http://www.multichannel.com/news/technology/verizon-dish-cos-colluded-aws-3-auction-bids/390127

Verizon has alleged that Dish illegally colluded with designated entities (DE's) Northstar Wireless and SNR Wireless during the ASW-3 auction bidding, according to ex parte notifications of meetings it held with top FCC officials. Dish counters that it complied with all legal requirements, including antitrust laws.

 

[Scott Greczkowski]

Yet Verizon and AT&T both used small companies to bid too... only difference is they didn't win with their bids.

 

[Hall]

Yet Verizon and AT&T both used small companies to bid too... only difference is they didn't win with their bids.

And if either of them had, Dish and the others who "lost" out would be suing instead....

 

[mike123abc]

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.

 

[ChadT41]

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.

 

[BBCInc]

A billion here, a billion there, pretty soon you're talking real money!

 

[DishSubLA]

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]

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".

 

[MikeD-C05]

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.

 

[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".

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-]

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!

 

[truckracer]

Yeah! More spectrum for data rationing.

 

[navychop]

Don't change the rules retroactively, after the fact. Maybe change them for the future. I suspect the courts will not allow invalidation.

 

[ChadT41]

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.

 

[Claude Greiner]

I think they should charge dish full price. If dish don't want to pay then sell to next highest bidder

 

[navychop]

I think they should charge dish full price. If dish don't want to pay then sell to next highest bidder

I am SHOCKED that you would say such a thing!