FCC Commissioner objects to DISH’s discount from AWS-3 auction
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If it wasn't allowed don't allow it before the bids. That just makes the FCC look even more Larry, Curly and Moe.
It is absurd that shell companies can be created to do these sorts of things. Dish isn't alone, and if it were a problem, why did it become a problem after they were awarded the spectrum?
There is no problem with the awarding of the spectrum. There is a problem with getting the spectrum at a discount. A "small-business" that has the financial backing and majority ownership of a large corporation has a distinct advantage in the bidding over other non-small businesses. For instance, say the market value of the spectrum was $11B and no other bidder was willing to go much over that. Then the corporate-owned "small-business" comes in with a $13B bid, knowing full well that no other bidder is going to match that, and also knowing/thinking that the actual amount they would have to pay is only $10B.
I have no problem with the winning bidder paying the full bid price.
I have no problem with the winning bidder paying the full bid price.
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As I read this, Dish didn't create either company to do these sort of things. They invested in existing companies before the bidding.
Here is a statement from DISH on this...
DISH Statement on AWS-3 Auction Results
Release Date:
Monday, February 2, 2015 11:18 am MST
Terms:
Dateline City:
ENGLEWOOD, Colo.
ENGLEWOOD, Colo.--(BUSINESS WIRE)--DISH Network Corp. (NASDAQ: DISH) issued the following statement today regarding the Federal Communications Commission’s (FCC) AWS-3 auction (Auction 97):
DISH STATEMENT ON AWS-3 AUCTION RESULTS
DISH Network Corp. (NASDAQ: DISH) issued the following statement today regarding the Federal Communications Commission's (FCC) AWS-3 auction (Auction 97):
"We respectfully disagree with the criticism of the Designated Entity program, and we are confident that we fully complied with the DE rules in the AWS-3 auction, which were unanimously approved by the full Commission. The DE program has been successful in providing much smaller entities the ability to access stronger capital structures, which has facilitated their meaningful participation in an auction process from which they would otherwise be precluded. Our approach — publicly disclosed ahead of the auction — was based on DE investment structures that have been approved by the FCC in past wireless spectrum auctions, including structures used by AT&T and Verizon."
DISH Statement on AWS-3 Auction Results
Release Date:
Monday, February 2, 2015 11:18 am MST
Terms:
Dateline City:
ENGLEWOOD, Colo.
ENGLEWOOD, Colo.--(BUSINESS WIRE)--DISH Network Corp. (NASDAQ: DISH) issued the following statement today regarding the Federal Communications Commission’s (FCC) AWS-3 auction (Auction 97):
DISH STATEMENT ON AWS-3 AUCTION RESULTS
DISH Network Corp. (NASDAQ: DISH) issued the following statement today regarding the Federal Communications Commission's (FCC) AWS-3 auction (Auction 97):
"We respectfully disagree with the criticism of the Designated Entity program, and we are confident that we fully complied with the DE rules in the AWS-3 auction, which were unanimously approved by the full Commission. The DE program has been successful in providing much smaller entities the ability to access stronger capital structures, which has facilitated their meaningful participation in an auction process from which they would otherwise be precluded. Our approach — publicly disclosed ahead of the auction — was based on DE investment structures that have been approved by the FCC in past wireless spectrum auctions, including structures used by AT&T and Verizon."
Translation: "Our lawyers did another good job of finding a loophole in the law" 
Find the loophole? Heck, they probably helped write it into the FCC rulebook or legislation.Translation: "Our lawyers did another good job of finding a loophole in the law"
Sooooooo, will this sweet deal on the spectrum lower my bill somehow? That's really all that matters to me . . .
"two designated bidders (Northstar Wireless and SNR Wireless) that qualifies as “small businesses,” thus the FCC allowed a 25% discount to be applied at the close of the auction" So this Moron thinks a small business after a discount can fork out 10 BILLION on bandwidth? What the hell does he consider a small business?
I questioned that myself. There was something said they had to have a revenue stream of less than $15M/year
Yeah, so no way that a business with revenue less than $15M could afford to spend $10B let alone $13B, unless they have major corporate backing, which should disqualify the discount. Especially in this case, when it isn't just financial backing, it is majority ownership by a major corporation.
