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FCC tries to close loopholes in wireless spectrum auctions

2015-06-26 10:26 by
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The FCC chairman Tom Wheeler has proposed his colleagues commissioners to change the rules for spectrum auctions in order to prevent the kind of bidding strategy that Dish Network employed during the AWS-3 spectrum auction.

During the spectrum auction last year, Dish network obtained $3 billion worth of "small business" credits by using two tiny companies in order to game the bidding process.

"At our next Open Meeting, the Commission will vote on rules that would revamp our outdated spectrum auction bidding policies to help these entities better compete in today's mobile marketplace," Wheeler wrote. "At the same time, our reforms will enhance the integrity of the FCC's auctions and ensure large corporations can't game the system."

The proposal comes as the agency prepares for a massive auction expected to take place next year. Then the commission will sell spectrum currently allocated to TV broadcasters. It is expected to raise billions for the U.S. Treasury and for emergency services networks.

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