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 SEPARATE  STATEMENT  OF  CHAIRMAN  KEVIN  J.  MARTIN 
 Re:  Implementation  of  the  Commercial  Spectrum  Enhancement  Act  and  Modernization  of  the  Commission’s  Competitive  Bidding  Rules  and  Procedures,  Further  Notice  of  Proposed 
 Rulemaking  (WT  Docket  No.  05-  211) 


 The  Commission  agreed  to  initiate  this  examination  to  determine  whether  we  should  change  the  designated  entity  program.  That  program  was  intended  to  promote  small  businesses 
 by  providing  them  with  bidding  credits.  During  our  reconsideration  of  the  AWS-  1  service  rules,  Council  Tree  Communications  expressed  concern  that  these  bidding  credits  were  being  used  by 
 carriers  with  billions  of  dollars  in  revenues,  who  partner  with  small  businesses  in  order  to  gain  access  to  the  bidding  credits.  Today,  we  initiate  a  review  of  the  program  to  consider  changing 
 these  kinds  of  practices.  We  also  make  clear  our  intention  that  any  changes  we  make  to  the  program  will  apply  to  the  AWS  auction  scheduled  for  this  summer. 


 We  tentatively  conclude  that  we  should  reform  our  program  by  preventing  large  incumbent  wireless  carriers  from  gaining  access  to  bidding  credits  through  partnering  with 
 designated  entities.  While  I  think  that  is  a  good  step,  I  believe  we  should  consider  going  further,  applying  the  same  rule  to  all  large  communications  service  providers.  Why  single  out  large 
 wireless  carriers  alone  for  this  kind  of  treatment  and  allow  large  wireline  carriers,  cable  companies,  satellite  providers,  and  other  communications  companies  to  continue  to  participate  in 
 a  program  for  small  businesses?  A  more  fair  and  reasonable  way  to  reform  the  program  would  limit  all  large  communications  companies  from  such  small  business  discounts.  I  remain  hopeful 
 that  we  will  be  able  to  adopt  such  a  consistent  approach  in  our  final  rules. 
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