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 SEPARATE  STATEMENT  OF  COMMISSIONER  KEVIN  J  .  MARTIN 
 Re:  Amendment  of  Part  1  of  the  Commission’s  Rules  –  Competitive  Bidding  Procedures,  Second  Order  on  Reconsideration  of  the  Third  Report  and  Order  and 
 Order  on  Reconsideration  of  the  Fifth  Report  and  Order,  WT  Docket  No.  97-  82 
 I  am  pleased  to  support  this  Order,  which  facilitates  the  ability  of  rural  telephone  cooperatives  to  participate  in  spectrum  auctions.  Specifically,  the  Order  establishes  an 
 exemption  from  the  rules  for  determining  eligibility  for  small  business  preferences  including  bidding  credits.  Ordinarily,  the  gross  revenues  of  entities  controlled  by  an 
 applicant’s  officers  and  directors  are  attributed  to  the  applicant  for  the  purpose  of  determining  its  eligibility.  In  this  Order,  we  establish  an  exemption  for  rural  telephone 
 cooperatives,  so  that  the  outside  business  interests  of  officers  and  directors  are  not  attributed  to  a  cooperative.  I  am  hopeful  that  this  will  enable  greater  participation  in 
 spectrum  auctions  by  rural  cooperatives  and  will  provide  greater  rural  deployment  of  wireless  services. 


 The  Commission  has  explicit  obligations  to  promote  these  goals.  Section  309  of  the  Communications  Act  directs  the  Commission,  in  designing  systems  of  licensing 
 through  competitive  bidding,  to  promote  “the  development  and  rapid  deployment  of  new  technologies,  products,  and  services  for  the  benefit  of  the  public,  including  those  residing 
 in  rural  areas,  without  administrative  or  judicial  delays.”  47  U.  S.  C.  §  309(  j)(  3)(  A).  Section  309  also  requires  the  Commission  to  ensure  that  “rural  telephone  companies” 
 “are  given  the  opportunity  to  participate  in  the  provision  of  spectrum-  based  services,  and,  for  such  purposes,  [to]  consider  the  use  of  tax  certificates,  bidding  preferences,  and  other 
 procedures.”  Id.  §  309(  j)(  4)(  D).  1 
 This  Order,  by  recognizing  the  unique  structure  of  rural  cooperatives,  is  just  one  small  step  in  fulfilling  these  mandates.  I  hope,  however,  that  it  is  part  of  a  trend. 
 Promoting  the  deployment  of  services  to  rural  America  is  one  of  the  Commission’s  most  important  priorities.  We  need  to  continue  to  identify  the  impact  of  our  rules  on  rural 
 carriers  and  consumers,  and  tailor  them,  as  necessary,  to  promote  rural  participation  and  deployment. 


 1  That  provision  requires  the  Commission  to  provide  the  same  opportunity  to  “small  businesses”  and 
 “businesses  owned  by  members  of  minority  groups  and  women,”  which  are  also  important  Commission  priorities.  47  U.  S.  C.  §  309(  j)(  4)(  D). 
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