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 NEWS  Federal  Communications  Commission  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Circ  1974).  News  Media  Information  202  /  418-  0500  Internet:  http://  www.  fcc.  gov  TTY:  1-  888-  835-  5322 
 FOR  IMMEDIATE  RELEASE:  NEWS  MEDIA  CONTACT:  February  3,  2006  Chelsea  Fallon:  (202)  418-  7991 
 FCC  PROPOSES  MODIFYING  ITS  “DESIGNATED  ENTITY”  AUCTION  RULES  IN  ADVANCE  OF  THE  UPCOMING  ADVANCED  WIRELESS  SERVICES  AUCTION 
 Washington,  D.  C.  –  Today,  the  Federal  Communications  Commission  (FCC)  released  a  Further  Notice  of  Proposed  Rulemaking  (Notice)  that  tentatively  concludes  that  it  will  modify 
 certain  rules  governing  benefits  reserved  for  businesses  that  qualify  as  “designated  entities”  in  FCC  auctions.  The  FCC  indicated  that  it  intends  to  complete  this  proceeding  in  advance  of  the 
 upcoming  Advanced  Wireless  Services  (AWS)  auction,  which  is  currently  scheduled  to  begin  June  29,  2006,  so  that  any  modifications  to  its  rules  will  apply  to  that  auction. 


 Since  the  inception  of  its  auctions  program,  the  FCC  has  sought  to  facilitate  the  participation  of  small  businesses  in  competitive  bidding.  To  achieve  this  objective,  the  FCC  has 
 instituted  measures  such  as  bidding  credits  and  the  spectrum  blocks  reserved  for  small  businesses.  A  designated  entity  (DE)  must  meet  specified  financial  criteria  –  based  on  its 
 revenues,  assets,  affiliates,  and  controlling  interests  –  in  order  to  qualify  for  such  benefits.  The  FCC  has  also  made  substantial  efforts  to  ensure  that  only  legitimate  small  businesses  obtain  the 
 benefits  of  the  designated  entity  program.  Today’s  Notice  considers  how  the  Commission  can  establish  further  safeguards  to  preserve  the  award  of  such  benefits. 


 In  examining  a  proposal  from  Council  Tree  Communications  (Council  Tree),  the  FCC’s  Notice  tentatively  concludes  that  it  should  modify  its  rules  to  restrict  the  award  of  DE  benefits  to 
 an  otherwise  qualified  DE  where  it  has  a  “material  relationship”  with  a  “large  in-  region  incumbent  wireless  service  provider”  and  seeks  comments  on  the  various  elements  of  the 
 proposal.  The  FCC  seeks  comment  as  well  on  whether  it  should  also  restrict  the  award  of  DE  benefits  in  cases  where  an  otherwise  qualified  DE  has  a  “material  relationship”  with  a  large 
 entity  that  has  a  significant  interest  in  the  provision  of  communications  services,  such  as  voice  or  data  providers,  content  providers,  equipment  manufacturers,  other  media  interests,  and/  or 
 facilities  or  non-  facilities  based  communications  services  providers. 
 Action  by  the  Commission  on  January  27,  2006,  by  Further  Notice  of  Proposed  Rulemaking  (FCC  06-  8).  Chairman  Martin  and  Commissioners  Copps,  Adelstein,  and  Tate.  Separate 
 statements  issued  by  Chairman  Martin  and  Commissioners  Copps  and  Adelstein. 
 For  additional  information,  contact  Brian  Carter,  Wireless  Telecommunications  Bureau,  at  (202)  418-  0660,  or  Brian.  Carter@  fcc.  gov. 
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 WT  Docket  No.  05-  211. 
 –  FCC  – 
 News  and  other  information  about  the  Federal  Communications  Commission  is  available  at  www.  fcc.  gov. 
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