Latest from Next TV in Northstar-wireless

Big Tech Joins Challenge to FCC’s Northstar Spectrum Smackdown

john.eggerton@futurenet.com (John Eggerton) — Wed, 22 Feb 2023 14:20:43 +0000

Computer companies want the Supreme Court to reverse the Federal Communications Commission's decision to deny Northstar Wireless billions of dollars in designated-entity bidding credits in its AWS-3 spectrum auction, arguing the decision was a case of illegal government overreach.

The Computer & Communications Association has joined an amicus brief by The Phoenix Center and four others supporting Northstar’s appeal of that decision on due-process grounds.

CCIA and company said if the FCC had problems with Northstar, it should have it should have stopped the auction “before the omelette was scrambled.” Northstar followed the rules, it argued, but the FCC “moved the goalposts” because it was unhappy with the auction result.

The brief does not mince words: “The Commission disavowed its prior decisions, treated the Petitioner inconsistently from entities that previously qualified for Designated Entity benefits, and even treated the Petitioner differently from other applicants for such benefits in the same auction. Disparate treatment like this can only happen when an agency feels unconstrained by the ordinary bounds our Constitutional system imposes on those who wield government power.”

FCC commissioners had unanimously ruled that Dish Network improperly received a $3.3 billion government discount on a winning bid for $12 billion worth of wireless spectrum purchased at the 2015 auction. The discount was tied to an FCC program aimed at helping small businesses obtain spectrum. Dish Network chairman Charlie Ergen claimed that the winning bidder — Northstar — is a separate company from Dish.

The FCC disagreed, ruling that Dish owned 85% of Northstar. The agency fined Dish $500 million and decided to force Dish/Northstar to forfeit $3.3 billion worth of the spectrum.

Northstar appealed that decision to the U.S. Court of Appeals for the D.C. Circuit, which has primary jurisdiction over FCC decisions. In June of 2022, that court backed the FCC, setting up the appeal to the Supreme Court, which has not decided whether to take the case. ▪️

FCC: Dish Still Has De Facto Control of Wireless Bidders

john.eggerton@futurenet.com (John Eggerton) — Mon, 13 Sep 2021 21:59:56 +0000

The FCC has told a D.C. Federal Appeals Court that Dish retains de facto control of two wireless companies, Northstar Wireless, LLC (Northstar) and SNR Wireless LicenseCo (SNR), that claimed $3.3 billion in bidding credits in the FCC's AWS-3 spectrum auction.

That came in its response to a challenge by the wireless companies to its decision, actually "decisions" plural, that those companies did not merit the credits because they were controlled by Dish, which put up the $13.3 billion in winning spectrum bids.

The FCC said the court should uphold its decision and deny the petitions to review those decisions.

As to the process, the FCC told the court that it had given those companies a chance to cure their problems, which they didn't, and via procedures consistent with FCC precedent.

As to the challenge to its conclusion that Dish still controlled them, the FCC said that Dish's authority to veto the leasing of the spectrum licenses demonstrated it still had de facto control.

It also told the court it had given the companies fair warning their revisions did not cure Dish's de facto control.

Also Read: Dish Makes Case for AWS-3 Bids

The two companies teamed with Dish to acquire $10 billion worth of spectrum licenses in the AWS-3 auction. But the FCC subsequently concluded that Dish's majority financial interest in the companies were controlling interests that should be attributable to Dish, which meant the companies were ineligible for the $1.9 billion (Northstar) and $1.4 billion (SNR Wireless) bidding credits they had applied for.

That federal court in August 2017 upheld the finding that Dish exercised de facto control, but also held that the FCC, under then chair Tom Wheeler, failed to notify the companies that if the FCC found they did not qualify for the credits, worth billions of dollars, the FCC would not give them a chance to cure that problem and instructed the FCC to correct.

The FCC under new management--Chairman Ajit Pai--and in response to the court remand, in January told the companies to renegotiate with Dish and other parties and file the necessary documents to show they now qualify for the credit. They did, but the FCC again concluded they were still controlled by Dish.

Northstar Weighs In

john.eggerton@futurenet.com (John Eggerton) — Fri, 01 May 2015 13:15:00 +0000

There has been much talk lately about Dish's financial interest in, and relationship to, designated entities (DE) Northstar and SNR Wireless, as the FCC decides whether to grant those DE's some $3 billion-plus — and a 25% discount — in bidding credits for their successful AWS-3 spectrum bids. One of the latest to weigh in is Northstar itself.

Fairbanks, Alaska-based Northstar said Thursday it welcomed the FCC's review of its licenses. The commission last week said Northstar's (and SNR's) applications for the spectrum they won in the auction had been accepted, though that does not mean they have yet been granted or the bidding credits approved. Still, it was a step forward and a chance for the company to argue the spectrum would be going to help minorities.

"With these licenses, Northstar Wireless is poised to become the largest minority, Native American-controlled provider of wireless services in the United States, establishing a benchmark of diversity in an industry virtually devoid of minority ownership," the company said.

The DE determination is meant to help small businesses, including minority and women-owned companies.

“We have previously been granted 43 Commission licenses, partnered with AT&T and Cricket, built out the entire Chicago market from scratch, and deployed innovative services such as prepaid unlimited plans and affordable mobile broadband. This experience will be of enormous value as we prepare to provide new services going forward,” said Aaron Schutt, president of Doyon, LTD., an investor group that "owns and controls" Northstar, and in which Dish is a partner.

Verizon has alleged Dish illegally colluded with Northstar and SNR during the auction, which Dish disputes.

Senate Republicans signaled April 29 that they are looking into those allegations and asked for information from the FCC, Dish, Northstar and SNR.

FCC Sill Vetting Dish-Related AWS-3 Bids

john.eggerton@futurenet.com (John Eggerton) — Wed, 29 Apr 2015 17:00:00 +0000

The FCC has signaled that winning AWS-3 bidder applications from Northstar Wireless and SNR Wireless have been accepted for filing — those are the companies majority owned by Dish — but made it clear that was not a determination of whether those would be approved, or designated bidding credits that would save them billions of dollars would be granted.

In fact, a decision on those credits and the licenses won by those bidders likely can't come until at least May 26.

Dish has been criticized for funding those companies, which then sought bidding credits as designated entities, a credit meant to boost smaller company participation in spectrum auctions.

In a blog post, Wireless Telecommunications Bureau chief Roger Sherman made it clear what the FCC's move was and was not.

"Today’s Accepted for Filing Public Notice is just that – a notice to the public that certain applications are now complete and available for public review," he said. "The Notice does not opine on the merits of any of the applications, nor does it make a finding that any of the applicants who have requested small business bidding credits are eligible for – or will receive – them."

It is the second round of "accepted" applications, which simply means that "following its initial review of the applications, including requesting additional information from some applicants, [Wireless] Bureau staff has determined that nine more AWS-3 license applications are now complete."

Now the Dish-related license applications from Northstar and SNR will be put out for comment to the public, including a 10-calendar-day window for petitions to deny — look for some of those to be filed given the criticism — Verizon, for one, claims Dish illegally colluded in the bids. Then oppositions are due May 18 and replies May 26.

Sherman signaled the vetting process was far from over at any rate given the bidding credit issue.

"The most challenging part of our review is therefore just starting. While we previously granted several uncontested applications representing $30 billion in winning bids, there are now 19 applications that are undergoing a thorough, substantive review by Bureau staff, and one remaining application that has not yet been accepted for filing. The applications that seek small business bidding credits are the most complex, given that they detail the nature of the applicant’s ownership and control structure, and require the review of the related corporate agreements that in some cases consist of a highly complex set of rights and obligations, including agreements pertaining to equity ownership, funding, joint bidding, and management services."

"These are complex and important matters, and we have a long way to go in our review before we reach final conclusions on all of the applications."