TELECOM Digest OnLine - Sorted: Small Bidders Blame FCC Rule Changes For Auction Woes

Small Bidders Blame FCC Rule Changes For Auction Woes

Reuters News Wire (reuters@telecom-digest.org)
Fri, 08 Sep 2006 15:04:17 -0500

The results thus far of the FCC's ongoing advanced wireless services
(AWS) auction offer 'immediate evidence' that the Commission's new
rules for smaller would-be wireless licensees, known as designated
entities (DEs), are 'flawed' and have led to a 'collapse' of the
'historic level of small business success' in spectrum auctions, DE
interests have told a federal appeals court in a case that, if
successful, could nullify the results of the AWS auction, which has
garnered more than $13 billion in net high bids to date.

In a brief filed yesterday with the U.S. Court of Appeals for the
Third Circuit (Philadelphia), Council Tree Communications, Inc.,

Bethel Native Corp., and the Minority Media and Telecommunications
Council argued that the FCC's 'eleventh-hour revisions' to rules
governing DE participation in spectrum auctions prior to the opening
of the AWS auction violated the Administrative Procedure Act, the
Regulatory Flexibility Act, section 309(j) (promoting opportunities
for DEs) of the 1934 Communications Act, and section 257 (market-entry
barriers) of the 1996 Telecommunications Act.

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