Traditional DEs Still Have Role To Play in FCC Auctions, U.S. Cellular Says
The FCC shouldn't destroy the historic designated entity classification because of concerns over the bidding practices of a few DEs in the AWS-3 auction, U.S. Cellular said in a meeting with Wireless Bureau Chief Roger Sherman and other FCC officials,…
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according to ex parte filing posted Monday by the FCC. AT&T and smaller carriers last month asked the FCC to restructure the DE program in light of alleged bidding irregularities by two DEs working with Dish Network in the auction, known in FCC parlance as Auction 97 (see 1505110048). The FCC should “not allow a justified concern over possible abuses among participants in a joint bidding arrangement in Auction 97 to obscure its traditional recognition of the necessary financial prerequisites of a solid DE program, one which allows DEs to achieve adequate scale and scope, and gives them a reasonable chance to succeed,” U.S. Cellular said. Since 1994 when the DE program was launched “the Commission has acknowledged that bidding credits for DEs have been a necessary incentive for these investments, which have allowed DEs to obtain more than a negligible number of licenses,” the carrier said. U.S. Cellular highlighted its work with DEs to bid in spectrum auctions. “The DE program has helped U.S. Cellular remain in business and invest aggressively as a mid-sized carrier in an industry dominated by giants,” it said. The filing was made in docket 14-70.