By Ryan Knutson
Sen. John Thune (R., S.D.) is piling more pressure on Dish
Network Corp. for its tactics in a recent record-setting auction of
wireless airwaves.
Sen. Thune, who is chairman of the Senate Committee on Commerce,
Science and Transportation, sent letters Wednesday to Dish, its
small-entity partners in the auction and the Federal Communications
Commission requesting internal documents and emails. Sen. Thune
said the committee is examining whether Dish's tactics were lawful
and whether the FCC exercised proper oversight.
At issue is Dish's coordination with a pair of small entities
that together won $13.3 billion worth of bids--second only to
AT&T's $18.2 billion--while qualifying for $3.3 billion in
discounts aimed at small businesses.
Dish has said it complied with the law and followed industry
precedent in the auction, which drew $45 billion in bids. On
Wednesday, it said it looks forward to working with Sen. Thune on
his review. The FCC declined to comment.
Rivals Verizon Communications Inc. and AT&T have complained
that Dish's tactics distorted the auction's outcome. Dish didn't
win any licenses itself. Instead, the satellite-TV provider
bankrolled entities called SNR Wireless and Northstar Wireless that
worked together with Dish to place the winning bids.
Other participants were unable to see the identities of those
placing the bids, and Verizon and AT&T have said that Dish, SNR
and Northstar created the false impression there was more demand
than their actually was.
The Wall Street Journal reported Monday that FCC officials were
giving SNR's and Northstar's applications extra scrutiny and that
the bidding credits might be denied. On Wednesday, the FCC opened
Northstar's and SNR's applications for public review.
Parties have 10 days to petition the FCC to deny the companies'
applications. If that happens, the companies may be forced to pay
the extra $3.3 billion or risk losing the licenses. Dish has also
said in filings with the FCC that it could take over the spectrum
in that case.
The companies and the FCC must respond to the request by May
15.
Write to Ryan Knutson at ryan.knutson@wsj.com
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