FCC rejected 5 petitions for reconsideration of modified rules fo...

FCC rejected 5 petitions for reconsideration of modified rules for C- and F-block PCS auction that began Dec. 12. Petitions challenged rules that split C-block spectrum into 10 MHz blocks for 422-license auction. In order (CD Aug 28 p1), Commission reconfigured 30 MHz of C-block spectrum into 2 tiers, with first covering populations of at least 2.5 million and 2nd below that threshold. Two of three 10 MHz blocks in first tier and one of 3 blocks in lower tier are subject to open bids. Others are closed for entrepreneurial bidders. Alpine PCS, National Telephone Cooperative Assn., Northcoast Communications, OPASTCO, Rural Telecommunications Group (RTG) and U.S. Small Business Administration petitioned for reconsideration. On spectrum blocks, agency reiterated finding that “10 MHz is a viable minimum license size.” Order also: (1) Rejected Northcoast request to eliminate tiers and allow open bids only for single 10 MHz C-block license in each market. Northcoast raised concerns it wouldn’t be able to meet business plans to vie competitively for licenses in larger markets. (2) Rejected contentions by Alpine that by eliminating some entrepreneur eligibility restrictions, agency failed to follow statutory objectives, such as avoiding excessive license concentration. Some petitioners pointed to recent news reports in which large carriers said they had enough spectrum. Agency said by doing away with some, but not all, of eligibility restrictions for small business bidders, it balanced as many statutory goals as possible. (3) Denied request by Nextel to put in place bulk bidding procedure. (4) Rejected petitions for Northcoast, OPASTCO and RTG to increase bidding credits in open bidding as well as Alpine request on legislation passed by Congress in Aug. that granted qualifying Alaska Native regional corporations relief from transfer restrictions for small business bidders, as well as from unjust enrichment payment requirements. Legislation had effect of allowing Cook Inlet Region Inc. (CIRI) to transfer license to large carrier without paying unjust enrichment penalties. Alpine wanted agency to give same relief to entrepreneur bidders. If FCC were to reject that request, Alpine wanted it to amend auction rules to exclude CIRI from PCS auction altogether. Agency denied request, saying: “The relief accorded CIRI under the statute was specifically authorized by Congress and narrowly tailored.” Congress could have chosen to broaden relief to all similar bidders, but instead created exemption that applied to CIRI, order said.