FCC tightens auction discount rules for small carriers

FCC tightens auction discount rules for small carriers

The U.S. Federal Communications Commission has decided to tighten the rules, regarding the wireless auction discounts for small carriers. With this decision, which comes about two months before the planned auctioning of hundreds of licenses, the agency makes an attempt to prevent major wireless companies from getting these discounts by partnering with the smaller ones as was the practice in previous auctions. According to the new rules, smaller carriers who sell or lease more than 50% of their licensed spectrum won't qualify for the discounts. Even those of them who sell more than 25% of their spectrum will be examined by the FCC in order to determine if they still qualify. Moreover, those of the smaller carriers who sell or lease the acquired spectrum license within the first five years of the license term, will have to pay back the entire sum of the discounts as well as an interest.

 

 

Source: Reuters

 

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