FCC Votes to Deny $3.3 Billion in Discounts Sought by Dish Network
August 17 2015 - 7:40PM
Dow Jones News
The Federal Communications Commission voted unanimously Monday
to deny $3.3 billion in discounts sought by two small partners of
Dish Network Corp. in an airwaves auction earlier this year.
The order was circulated by FCC Chairman Tom Wheeler in July and
the agency had briefed the company on its recommendation. The
decision led Dish Chairman Charlie Ergen to shift his tone earlier
this month on possibly entering the wireless industry, saying that
selling or leasing its airwave holdings might make more sense.
With the denial, Mr. Ergen had said the company had three
options: refuse to buy the spectrum and pay a penalty; pay the
additional $3.3 billion; or sue the FCC to overturn the decision. A
Dish spokesman on Monday had no immediate comment.
An FCC official said Monday that the commission examined the
complex arrangements and financial connections that created an
extensive relationship between Dish and the entities—called SNR
Wireless and Northstar Wireless. The analysis concluded that Dish
had the power to control the smaller companies and they therefore
didn't qualify for the discounts. The management services
agreements between Dish and the entities also showed Dish had
control, the official said.
Dish provided 85% of the capital in both Northstar and SNR. But
in filings with the FCC, both entities had reported revenue of less
than $15 million and said Dish didn't control them. The two
entities won $13.3 billion in wireless licenses in the auction
earlier this year.
Dish's entities already have paid about $10 billion, the FCC
official said, and must pay the remaining $3.3 billion within 30
days or provide a letter of credit to make the payments within 120
days. The entities can file a request for reconsideration or make a
judicial appeal within 30 days of the FCC's decision.
Shalini Ramachandran contributed to this article.
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(END) Dow Jones Newswires
August 17, 2015 19:25 ET (23:25 GMT)
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