Senate Commerce Chairman Eyeing Dish's Actions in AWS-3 Auction

Senate Commerce Committee Chairman John Thune, R-S.D., is investigating Dish Network’s use of designated entities in the recent AWS-3 spectrum auction. “The Committee has significant questions about whether conduct surrounding the bidding strategies employed by DISH Network and two affiliates adhered to both the letter and intent of the law, since it may ultimately cost three billion dollars in public funds,” Thune said in a statement. “While the FCC is reportedly already looking at whether DISH broke auction rules, an examination of how these affiliated companies approached the auction is the only way for Congress to determine whether this three billion dollar price tag was appropriate or a result of wrongful conduct, flawed agency rules, or laws Congress must update.” Thune sent four letters -- to Dish, the FCC and Dish DEs Northstar Wireless and SNR Wireless LicenseCo. Thune warned Dish CEO Charlie Ergen that Dish’s bidding activity may have been to “suppress rival bidders” and said in that letter “it is not difficult to draw comparisons” to Justice Department antitrust violation descriptions. Thune requested answers to several questions by May 15. Dish told us it will work with Thune. “We are confident that we fully complied with all legal requirements for the AWS-3 auction, including antitrust law and the DE rules, which were unanimously approved by the full Commission,” Dish said. “Our approach -- which was fully and 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 many other auction participants in the past.”