FCC Ruling Favors Small Businesses

Is it fair to allow companies that have outgrown entrepreneur status indefinitely to receive perks intended to benefit small businesses? The FCC says no.

In a Final Rule released Feb. 29, the FCC responded to several petitions concerning upcoming C-block auctions. One petition requested an indefinite extension of a grandfather exception, which allows C-block applicants that have become too large for the entrepreneur designation to continue participating in C-block auctions until March 2001. The petitioner argued that all original C-block bidders should be allowed to bid for the licenses currently tied up in bankruptcy proceedings. The C-block re-auction begins July 26, but these licenses may not be available for re-auction at that time.

The FCC also was asked to extend bidding credit eligibility to the large businesses still participating in the auctions. The credits give small businesses a 15% discount on winning bids and very small businesses a 25% discount.

The petitioner argued that denying credit eligibility would be unfair to the now-large entities that have been generating PCS revenues since the first C-block auction. The FCC declined the request and argued that extending the credits to large businesses would undermine the credit's purpose, which is to enable small businesses to better compete with large ones in auctions.

Additional petitions before FCC seek two major changes that would affect the ability of small businesses to compete in future C- and F-block auctions. SBC and Nextel asked the FCC to include large companies in the auctions. Nextel argued that this change would serve the public by fostering competition and speeding the delivery of wireless services.

In separate petitions, AT&T Wireless, BellSouth and Bell Atlantic Mobile asked for the abolition of spectrum-cap limits at F- and C-block auctions. AT&T Wireless argued that it needs additional PCS spectrum to roll out 3G services, and BellSouth said that it has endured capacity problems because of the spectrum-cap limits.

The FCC currently is reviewing comments concerning the requests and has committed to issuing a ruling prior to the July 26 auction.

For more information, visit the Federal Register Web site.

Auction information can be found at www.fcc.gov.

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The Truth Is Out There

Fed up with an unsympathetic FCC, NextWave has taken its fight to keep its C-block licenses to the pages of The Hill and Roll Call, two newspapers covering federal politics.

In March, the company ran full-page ads, which provoked a letter from FCC Chairman William Kennard. The chairman justified the license cancellation in part because NextWave "has never provided any service to any customer."

Not quite, NextWave counters: "Calls on our network in San Diego were made at the GOP convention in August 1996. Chairman Tom Bliley called FCC Commissioner Rochelle Chong from that convention. The FCC knows all this."

NextWave offers its side of the story at www.nextwavetel.com. Look for the "Learn the Truth" link.