An appeals court upheld federal government auctions of about $33 billion of wireless spectrum, saying it would be “imprudent and unfair” to undo them even though some rules governing them were invalid.
The Third Circuit Court of Appeals Tuesday threw out two FCC auction rules that required small businesses to hold their winning spectrum for at least 10 years before reselling it and prohibited them from leasing more than 50% to third parties.
The three-judge panel of the court concluded that both rules were imposed without sufficient notice and comment and were thus a violation of the Administrative Procedures Act. But it did not invalidate the wireless spectrum auctions conducted under those rules, which included the $14 billion 2006 auction of Advanced Wireless Services (AWS) spectrum and the $19 billion 20008 auction of the 700 MHz spectrum in 2008.
The decision means that entities like small and minority businesses, who did win spectrum will be able to wholesale or sublease as much of their spectrum as they like, and that the FCC will not be able to impose such rules on future spectrum auctions.
“We are gratified that the Court recognized the merits of this case in vacating the two new rules,” said the Minority Media & Telecommunications Council president David Honig. “This pro-small business, pro-new entrant and pro-diversity ruling will advance wireless industry competition and ultimately benefit consumers and business alike.”
AT&T has taken more than $10 Billion in spectrum off the market when you combine AT&T’s unused AWS and 700 MHz spectrum. That has created artificial spectrum scarcity and driven prices up. Verizon spent another $2.8 billion on unused AWS spectrum.
Related Dailywireless articles include; AT&T: Wireless is Different, Phoney Spectrum Scarcity, AWS: It’s Done, 700MHz: It’s Done!, 700MHz: Money Talks, Smartest Guy in the Room, AT&T Buys 700MHz from Aloha, AT&T Data Caps Extend to Femtocells, AT&T’s New Data Plans, T-Mobile: Now HSPA+ Coverage for 75M, Public Safety: Show Us The Money, Clear: No Limits, FCC to Okay $2.3B AT&T Deal, Cellcos: One Thing – Bandwidth, T-Mobile Eyeing Clear Spectrum, FCC Considers Auctioning Off TV Frequencies, FCC Okays Terrestrial LTE for SkyTerra, Battle of the Bands Goes to Congress,
