Thursday, July 16, 2015

FCC to Deny Dish Network Spectrum Discount

The Federal Communications Commission reportedly will reject $3.3 billion in spectrum discounts requested by partners of satellite-TV provider Dish Network Corp., for spectrum awarded in the recent AWS-3 auction.

After a review of $13.3 billion of winning bids by two small companies backed by Dish, FCC officials concluded that the two entities didn’t qualify for the small-business discounts, the Wall Street Journal reports.

FCC Chairman Tom Wheeler is said to have circulated a draft order denying the discounts to the FCC’s other four commissioners.

Aside from forcing Dish to pay more for its spectrum, the denial of bidding discounts will not likely affect strategic thinking at Dish, but will force Dish to come up with the full $13.3 billion amount of the bids, rather than the lower $10 billion amount the discounts would have provided.

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