FCC Officially Yanks Bidding Credits from Dish

U.S. Sen. John Thune (R-SD), chairman of the Committee on Commerce, Science and Transportation, issued a statement on Monday praising the Federal Communication Commission’s (FCC) decision to strip two DISH Network affiliates, Northstar Wireless and SNR Wireless, of $3.3 billion in bidding credits.

Dish had disclosed its arrangement with the companies ahead of the auction, including its plan to coordinate bidding.

However, rival bidders Verizon Communications Inc, AT&T Inc and T-Mobile US Inc as well as smaller competitors, various groups and lawmakers in Congress have raised red flags about Dish benefiting from the discounts.

The commission unanimously voted Monday that the two small companies, SNR Wireless LicenseCo LLC and Northstar Wireless LLC, aren’t eligible for the program. But in filings with the FCC, both entities had reported revenue of less than $15 million and said Dish didn’t control them.

Dish’s DE partners already have paid about $10 billion and must pay the remaining $3.3 billion within 30 days.

The order concludes that Dish’s majority financial interest in the companies are controlling interests that should be attributable to Dish, which means the companies are ineligible for the $1.9 billion (Northstar) and $1.4 billion (SNR Wireless) bidding credits they had applied for. The entities can file a request for reconsideration or make a judicial appeal within 30 days of the FCC’s decision.

Dish said it complied with all legal requirements after a July 22 FCC briefing outlining the agency’s preliminary decision to disqualify the partners.

“We will the review the order when it becomes available, as we consider our options going forward”, Dish said.

“It will eliminate some of the very negative handcuffs on the spectrum”, Ergen said, explaining that paying in full would allow Dish to sell or lease the spectrum with less restrictions. The management services agreements between Dish and the entities also showed Dish had control, the official said.