DISH Statement Regarding FCC Draft Order on Designated Entity Credits in Auction 97

[Scott Greczkowski]

WASHINGTON, D.C., July 22, 2015 – Today, DISH, Northstar Wireless, SNR Wireless and certain other parties attended a meeting with staff of the Wireless Telecommunications Bureau of the FCC to discuss a draft order that has been circulated by the Chairman's office for approval by the other Commissioners relating to Northstar Wireless’ and SNR Wireless’ respective pending applications for the AWS-3 Licenses?. At the meeting, DISH was informed that the draft order, if approved, would find that: (i) DISH has a controlling interest in Northstar Wireless and SNR Wireless, therefore DISH’s revenues should be attributed to them, which in turn makes Northstar Wireless and SNR Wireless ineligible to receive the 25% bidding credits (approximately $1.9 billion for Northstar Wireless and $1.4 billion for SNR Wireless) for which each had applied to receive as designated entities under applicable FCC rules; (ii) Northstar Wireless and SNR Wireless are qualified to hold the AWS-3 Licenses; (iii) the FCC will not designate the matter for a hearing, or refer the matter to the FCC enforcement bureau or the Department of Justice; and (iv) all other relief sought by the parties that filed Petitions to Deny will be denied. The draft order remains subject to change, and must be approved by a majority of the Commissioners to become effective.

DISH Executive Vice President and General Counsel, R. Stanton Dodge, issued the following statement:

"DISH has a tremendous amount of respect for the FCC commissioners and staff, and we appreciate their hard work on this matter. However, we respectfully disagree with the proposed denial of the bidding credits. Our approach to the AWS-3 auction, which followed 20 years of FCC precedent and complied with all legal requirements, was intended to enhance competition -- in the auction and in the marketplace long term. Our investments in NorthStar and SNR helped make the AWS-3 auction the most successful spectrum auction in FCC history, and resulted in more than $20 billion of direct benefit to the American taxpayer.”

 

[mike123abc]

It will be interesting to see how this works out. Something tells me Dish will have to cough up another few billion...

 

[ChadT41]

Idea for dish next time. Make Dish the 26% shareholder and Echostar the 25% shareholder(or really any combination of that) that gives multiple companies and parties as bidders. That ought to defeat what they are asking to do.

 

[Tampa8]

"which followed 20 years of FCC precedent and complied with all legal requirements"

I'll translate the DISH statement;
See you in Court.

 

[Claude Greiner]

C'mon everyone knows what Dish was trying to do.

Maybe 15 years ago they could have gotten away with this, but today they are a multi billion dollar company.

 

[ChadT41]

They knew what they were doing. They were using a loophole to LEGALLY do what they did. That is the caveat there. It was all LEGAL and within the written and posted guidelines. Also, again, nothing different than their competitors ATT and Verizon have done in RECENT auctions.

 

[nsafreak]

They knew what they were doing. They were using a loophole to LEGALLY do what they did. That is the caveat there. It was all LEGAL and within the written and posted guidelines. Also, again, nothing different than their competitors ATT and Verizon have done in RECENT auctions.

Agreed, the FCC may not like what Dish did but if they indeed did follow the written and posted guidelines and there are multiple years of precedence then the FCC is going to find it mighty hard to win their case in court. With Dish's litigious nature I can easily see them taking it to court should the FCC try and force the issue. The rules will likely change come the next auction and that's fine but you can't try and turn back the clock on previously completed auctions that followed the rules.

 

[ChadT41]

That's exactly what I am saying. Whether or not people like it, rules were followed. People get paid lots of money to find those loopholes, and if legit, the FCC may find themselves losing. The even bigger issue here is that even with the Discount, dish helped bring in the largest payout ever. Verizon and ATT are just crying over spilled milk.

 

[DishSubLA]

C'mon everyone knows what Dish was trying to do.

Maybe 15 years ago they could have gotten away with this, but today they are a multi billion dollar company.

But AT&T and Verizon did the same thing, without challenge by the FCC, at least a year or two ago.

 

[Poke]

FCC Blocks Dish's $3 Billion 'Small Business' Spectrum Discount

http://www.dslreports.com/shownews/...llion-Small-Business-Spectrum-Discount-134576

 

[Scott Greczkowski]

If they block it then they should re do the auction since Dish was actually bidding against itself which drove up the price.

 

[bobvick]

C'mon everyone knows what Dish was trying to do.

Maybe 15 years ago they could have gotten away with this, but today they are a multi billion dollar company.

Everyone knows what they were trying to do, but I bet if DirecTV had did it, you would probably have less contempt for them

 

[MikeD-C05]

If they block it then they should re do the auction since Dish was actually bidding against itself which drove up the price.

Maybe that is why they Blocked it in the first place. DISH would have to pay more now if they want it, as a form of punishment for trying to use a loop hole.

 

[ChadT41]

Maybe that is why they Blocked it in the first place. DISH would have to pay more now if they want it, as a form of punishment for trying to use a loop hole.

Why should they be punished for following the rules?

 

[Scott Greczkowski]

Yeah after all AT&T and Verizon had their other companies bidding for them as well, only difference was their other companies didn't win.

DISH was playing by the rules that were set.

 

[JM42]

If Dish was within the letter of the regs, everything was fully disclosed up front, and the FCC let it go forward, the sale should should stand. If they don't like it, change the rules going forward.

If they can show some dishonesty or concealment then there may be merit to the block(and I'd probably support it), but I haven't seen anything suggesting that is the case (admittedly am not following it closely).

 

[Claude Greiner]

If they block it then they should re do the auction since Dish was actually bidding against itself which drove up the price.

I disagree. Dish acted like nothing more than a shill bidder. They had no intentions of winning the auction.

All they did was bid up the price for everyone else, so their "fake" company could have the final discounted winning bid.

They only did that so if something like this happened they can go back and use this as an excuse to make it seem as if they where not associated with their other "fake" company.

I have known Dishes games for 17 years. If they aren't stealing from the retailers they are trying to steal from someone else.

 

[ChadT41]

I disagree. Dish acted like nothing more than a shill bidder. They had no intentions of winning the auction.

All they did was bid up the price for everyone else, so their "fake" company could have the final discounted winning bid.

They only did that so if something like this happened they can go back and use this as an excuse to make it seem as if they where not associated with their other "fake" company.

I have known Dishes games for 17 years. If they aren't stealing from the retailers they are trying to steal from someone else.

Are you saying they were breaking the rules? Or that they were following the rules that someone that got pix money Togo through with a fine tooth comb missed, even after companies have been doing this for DECADES? Claude, whether you like them or not, you have to look at the aspect of "was it legal at the time they did it" and "did they violate any of the agreed upon rules?" In this case the answer to those questions is that Dish outsmarted the entire industry. Was it an a$$hole move, yes. Was it a great business tactic, OF COURSE

 

[Juan]

Are you saying they were breaking the rules? Or that they were following the rules that someone that got pix money Togo through with a fine tooth comb missed, even after companies have been doing this for DECADES? Claude, whether you like them or not, you have to look at the aspect of "was it legal at the time they did it" and "did they violate any of the agreed upon rules?" In this case the answer to those questions is that Dish outsmarted the entire industry. Was it an a$$hole move, yes. Was it a great business tactic, OF COURSE

In that sense.al capon was a great business man

 

[ChadT41]

Al Capone was breaking the law. Hence being arrested for Tax evasion.