FCC Reforms Competitive Bidding Rules for Spectrum Auctions

Media Contact:

Cecilia Sulhoff, (202) 418-0587

cecilia.sulhoff@fcc.gov

For Immediate Release

FCC REFORMS COMPETITIVE BIDDING RULES FOR SPECTRUM AUCTIONS

Modernizes rules to prevent gaming and provide flexibility for eligible small

businesses and rural service providers -

WASHINGTON, July 16, 2015 - The Federal Communications Commission adopted a Report

and Order today that modernizes and reforms policies designed to facilitate small business'

ability to participate in spectrum auctions and the wireless marketplace. These policies are

commonly known as the Designated Entity Rules.

The Report and Order adopts common sense reforms to ensure that eligible small businesses and

rural service providers are the true recipients of bidding credits. In addition, the Order provides

greater flexibility to smaller companies and rural service providers to build wireless businesses

that can spur additional investment in, and bring greater choice to, consumers and businesses

across the country.

With today's action, the Commission is taking the following steps to provide small businesses-

including enterprises owned by women and minorities- with a better on-ramp into the wireless

industry, to increase the participation of rural service providers in future auctions and to eliminate

outdated rules that no longer reflect the developments in today's wireless marketplace:

Elimination of the attributable material relationship rule that limited the amount of

spectrum a small business could lease in order to provide small businesses the flexibility

to leverage leasing and other spectrum use agreements to gain access to capital and

operational experience.

Adoption of a first ever 15 percent bidding credit for qualifying service providers that

provide commercial communications services to a customer base of fewer than 250,000

combined wireless, wireline, broadband, and cable subscribers and serve predominantly

rural areas.

Establishment of a first ever cap on the total amount of bidding credits that a small

business or rural service provider can receive in any particular auction. The cap will vary

on a service-by-service and auction-by-auction basis. For the Incentive Auction, the

Report and Order adopts a cap of $150 million for small businesses and a $10 million

ceiling on the overall amount that any entity-either a small business or rural service

provider-can receive in smaller markets.

Modifications to the Commission's attribution rules to guard against unjust enrichment.

Amendment of the competitive bidding rules to prohibit joint bidding and multiple

applications by one party as well as parties with common controlling interests except in

limited circumstances.

Action by the Commission July 16, 2015 by Report and Order, Order on Reconsideration,

Third Order on Reconsideration and a Third Report and Order (FCC 15-80). Chairman

Wheeler, Commissioners Clyburn, and Rosenworcel. Commissioner O'Rielly and Pai

dissenting. Chairman Wheeler, Commissioners Clyburn, Rosenworcel, Pai and O'Rielly

issuing statements.

-FCC-

###

Office of Media Relations: (202) 418-0500

TTY: (888) 835-5322

Twitter: @FCC

www.fcc.gov/office-media-relations

This is an unofficial announcement of Commission action. Release of the full text of a Commission order

constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).

LINK:	http://www.fcc.gov/document/fcc-reforms-competitive-bidding-rules-spec...
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