Wireless Execs Ask Martin to Rethink Secret Bidding
A group of 7 wireless carrier executives, joined by 2 investors and the Rural Telecom Group, wrote to Chmn. Martin asking he back off a proposal to conceal bidders’ identities in a June advanced wireless services (AWS) auction. Their letter signals what’s expected to be a full court press. Last week Martin said he would ask the Commission to vote on a public notice, though none is required (CD March 24 p3).
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“By imposing blind bidding, the Commission will introduce an enormous amount of uncertainty into the auction, which will, in our view, directly affect our companies’ risk and level of participation - and, therefore, the ultimate success of the auction,” they said: “A change that reduces transparency in the auction process is particularly troubling. It is very important for our companies as potential bidders or financing sources to be able to assess as much information regarding licensed markets as possible, including the identity, size and technological configurations of our competitors.” The correspondents said they oppose any move from the simultaneous multiple round (SMR) methodology for holding the auction.
The letter was signed by a top executive at Cingular, the chmn. of Dobson Communications, and the CEOs of U.S. Cellular, MetroPCS, Centennial Communications, Leap Wireless and Cleveland Unlimited. Investors Columbia Capital and M/C Venture Partners also signed. The high-level signatures on the letter aim to show the companies view the issue as highly significant, sources said. If, as expected, an order is on the April 12 meeting agenda, lobbying will be cut off when the sunshine notice is released late April 5.
“These guys are keeping the political pressure on the chairman. You can’t go to the FCC and argue with an economist,” said a source with one of the signatories. “This is a political play. These are businesses and this is of critical importance to these businesses. Economic theory be damned… We'll be suited up and at the FCC.”
“There’s going to be a lot of pressure,” said a 2nd source. “Having the CEOs sign shows just how important this is to these companies.”
In the long-awaited AWS auction, which starts June 29, the FCC will sell 1,122 licenses in 1710- 1755 MHz and 2110- 2155 MHz spectrum. The auction could yield $15 billion, the Congressional Budget Office estimated in 2005. But the letter warns that keeping bidder identity secret would lead to “sub-optimal license purchases.”