FCC faces suit over spectrum auction

Three groups sued the FCC over changes to the wireless spectrum bidding rules for small businesses. The suit asks a federal appeals court to stay the enforcement of the new rules and delay the scheduled August 9 advanced wireless services auction. The three groups (Council Tree Communications, Bethel Native and the Minority Media and Telecommunications Council) asked that the stay take effect by June 19, which is the deadline for auctions applicants. The groups allege that the FCC's rule change ensure that big telcos will dominate the upcoming spectrum auction to the detriment of small businesses. In 1993 Congress instructed the FCC to promote diversity and competition in the auctions by making bidding credits available to "designated entities." The auction could generate $15 billion for the U.S. Treasury.

For more on the SMB auction suit:
- read this article from RCRNews