CTIA Weighs Petition Asking for Change in Auction Rules
Wireless carriers led by CTIA are weighing a petition seeking reconsideration after the FCC issued an order late Fri. denying 3 carrier petitions seeking an end to designated entity (DE) set-asides for small players in the upcoming Auction 58. In a positive note for carriers, the FCC delayed the critical PCS auction 2 weeks to Jan. 26.
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Top Wireless Bureau and other FCC officials had signaled for months they were likely to stick with the DE set-aides, so the order wasn’t a surprise. Carrier sources say they would have other means at their disposal to overturn the decision, including taking the FCC to court. However, a petition for reconsideration seems the most likely. One carrier source said industry groups would weigh their options the next few days: “It’s not that we don’t feel we have a good case, it’s whether the timetables are realistic.”
A 2nd industry source said most expected the FCC not to back down. “The Commission seemed pretty dead set in their ways to keep the rules the same,” the source said. “A petition for reconsideration can be filed, but the Commission is under no obligation to act on it before the auction. It doesn’t look like there’s much of a chance to open the auction.”
A DE source said he saw little reason to fear the FCC would be open to a petition for reconsideration. “It is absolutely done as best we can tell,” the DE source said. “The Commission has come out with a written notice here. It is pretty clearly mapped out. The Commission basically did what it should have done. There was no basis to change the rules and it didn’t get browbeaten into it.”
CTIA said it was disappointed the FCC hadn’t reversed course. “The alternative approach of utilizing bidding credits -- which is used in all other spectrum auction contexts -- has a proven track record of success in ensuring that small and minority-owned entities can win and operate spectrum licenses,” the association said. “The track record of set asides, by contrast, has consistently slowed the availability of service to consumers.”
The FCC pushed back to Nov. 30 the Nov. 12 deadline for short-form applications. However, the Commission rejected claims CTIA had made in asking for delay of the key filing deadline. “Offering no support for its assertion, CTIA states that extending the period in which to file short form applications should not interfere with the time allotted for Commission staff to prepare for the auction or to review applicants’ filings,” the FCC said: “This statement significantly underestimates the administrative, technical and regulatory review that Commission staff undertakes to conduct an auction.” - Howard Buskirk