FCC Rules Should Ensure Integrity of Future Spectrum Auctions, AT&T Says

AT&T warned the FCC that without changes to its designated entity rules, bidders could continue to game the system in future auctions, in comments filed Thursday at the FCC. On Monday, AT&T and small carriers, proposed revisions to the DE program (see 1505110048). The AWS-3 auction raised new questions about the DE program as a result of Dish Network’s use of two DEs to attempt to buy $13.3 billion worth of licenses for $10 billion (see 1501300051), which Dish has repeatedly defended as being within FCC rules. “It is clear that these rules are no longer serving their intended purpose -- to benefit true small businesses to ensure diversity in spectrum ownership,” AT&T said. “Without major reform of the DE rules, such gamesmanship could be repeated in future auctions. AT&T believes that the Commission should adopt changes aimed at ensuring that designated entity benefits inure only to true small businesses and new entrants.” The rules the FCC developed should be “clear, readily understood, easy to administer, and free from loopholes that jeopardize auction integrity,” the carrier said. The filing was made in docket 14-70.