FCC Should Reject AWS-3 Bids by Dish-Controlled DEs, Say CWA, NAACP

The Communications Workers of America and NAACP called on the FCC to reject bids made by two designated entities controlled by Dish Network in the AWS-3 auction. The groups sent a letter to commissioners Thursday questioning how Dish, a company with a $34.6 billion market capitalization and $14.6 billion in annual revenue, could qualify for bidding credits designed to help small businesses buy spectrum licenses. The two DEs, Northstar Wireless and SNR Wireless, were the winning bidders for $13.3 billion worth of licenses for $10 billion (see 1501300051). “While the AWS-3 auction was an enormous success, DISH's unusual bidding tactics coupled with its abuse of the designated entity rules are creating a cloud over the auction,” the groups said. “We expect that the FCC will reject DISH's attempt to qualify as a small business eligible for $3.25 billion in taxpayer subsidies.” The letter was filed Thursday in docket 12-268. At Dish, "we respectfully disagree with the criticism of the Designated Entity program, and we are confident that we fully complied with the DE rules in the AWS-3 auction, which were unanimously approved by the full Commission," a Dish spokesman emailed us Friday. "The DE program has been successful in providing much smaller entities the ability to access stronger capital structures, which has facilitated their meaningful participation in an auction process from which they would otherwise be precluded. Our approach -- publicly disclosed ahead of the auction -- was based on DE investment structures that have been approved by the FCC in past wireless spectrum auctions, including structures used by AT&T and Verizon."