“We will the review the order when it becomes available, as we consider our options going forward”, said Dish’s general counsel, R. Stanton Dodge.
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It’s official: Dish Network has missed out on the US$3.3 billion worth of spectrum discounts it accumulated in the AWS-3 auction, after the Federal Communications Commission (FCC) voted in favour of denying them to the satellite TV provider.
The decision follows a months long inquiry after DISH Network secured a $3 billion taxpayer-funded discount to purchase nearly half of the wireless licenses sold at a government auction in January.
“Small businesses require an on-ramp into the mobile marketplace to provide more choices for consumers”.
FCC staff had recommended that the commission decline to award discounts to SNR and Northstar, people familiar with the matter had told Reuters.
Immediately after the FCC opened its investigation into whether the two DEs complied with the rules for the auction and asked for public comments, CAGW joined with five other organizations in calling for the agency to find that the companies were not eligible for the discount on the winning bids.
However, rival bidders Verizon Communications Inc, AT&T Inc and T-Mobile US Inc as well as smaller competitors, various groups and lawmakers in Congress have raised red flags about Dish benefiting from the discounts.
Dish had disclosed its arrangement with the companies ahead of the auction, including its plan to coordinate bidding.
The Wall Street Journal reported that Dish Chairman Charlie Ergen is thinking of either suing the FCC, paying the $3.3 billion, or refusing to buy the spectrum and paying a penalty fee.
FCC Commissioner Mignon Clyburn said that while she agreed Dish had the power to control Northstar and SNR, “it is unfortunate this finding will likely mean that the small businesses, who obviously lacked bargaining power when negotiating these agreements, will not be able to retain their licenses”. Under the FCC’s designated entity (DE) rules, the pair both qualified for a 25% small business discount on the airwaves, reducing the overall bill by $3.3 billion. Dish owns 85 percent of each company, which it has called a non-controlling interest.
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– see this WSJ article (sub. req.).
