Dish DEs, VTel Lock Horns Over Whether De Facto Control Still Exists
VTel isn't making a persuasive case on why AWS-3 auction bidding credits shouldn't be reinstated to SNR Wireless and Northstar Wireless, given steps they took to modify their agreements with Dish Network, the two said in a consolidated opposition Monday.…
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The designated entities said VTel makes "fundamentally ... flawed" calculations about their indebtedness to Dish, which has been reduced massively. They said VTel's argument the DEs should provide business plans or proof of the ability to finance their buildouts "would be a clear due process violation" since it wouldn't be in line with past de facto control standards. They said VTel arguments and AT&T and T-Mobile comments should be dismissed on procedural grounds. VTel in July said Dish still had de facto control and the modified agreements are crafted in a way to force a sale to Dish by coercing the exercise of the put right in five years. It said the DEs agreed to modified contractual terms that were contrary to their financial interests and that the two are "sham companies that exist solely" for Dish's benefit. T-Mobile had urged the FCC to move swiftly to decide whether the DEs are still Dish-controlled and whether the licenses should be auctioned again. Backing the DEs, the National Association of Black Owned Broadcasters and Multicultural, Media, Telecom and Internet Council in July said steps the two made to cure the de facto control issue were sufficient (see here and here).