OMNu* FEDERAL COMMUNICATIONS COMMISSION WAS HI N G TO N OFFICE OF THE CHAIRMAN June 17, 2015 The Honorable Steve Chabot Chairman Committee on Small Business U.S. House of Representatives Washington, DC 20515 Dear Chairman Chabot: Thank you very much for your June 8, 2015, letter about the Federal Communications Commission's (FCC) Auction of Advanced Wireless Services (AWS-3) Licenses (Auction 97). Attached to this letter is a copy of the correspondence between the FCC and the Small Business Administration you requested in your letter. The two AWS-3 bidders you discuss in your letter - Northstar Wireless, LLC, and SNR Wireless LicenseCo, LLC - have submitted "long-form" license applications to the FCC. The FCC's Wireless Telecommunications Bureau is currently reviewing these two bidders' applications to make sure they are in compliance with FCC rules, including rules pertaining to ownership interests and eligibility for small business bidding credits. Under FCC rules, the review of a license application is a "restricted proceeding," during which ex parte presentations are prohibited.' The Commission' s decision to grant or deny these applications will be based on the totality of circumstances in the record about each application. A number of parties have filed petitions to deny these applications, and these filings are part of the record the Bureau is considering. In addition to adjudicating individual license applications, the Commission is engaged in a more general effort to address the role of small businesses in spectrum auctions. On October 10, 2014, the Commission issued a notice of proposed rulemaking (NPRM) to revise many of the so-called "Part I" competitive bidding rules about which you and others have recently raised concerns, including small-business eligibility for bidding credits and joint bidding agreements.2 On April 17, 2015, the Commission released a request for further comment on this proposed rulemaking, specifically asking interested parties to incorporate "lessons learned" from the Auction 97 into their coniments.3 1 47 C.F.R. §1.120. 2 Updating Part I Competitive Bidding Rules, WT Docket No, 14-170, Notice ofProposedRulemaking, 29 FCC Rcd 12426 (2014). for Further Comment on Issues Related to Competitive Bidding Proceeding, Updating Part I Competitive Bidding Rules, Public Notice, WT Docket No. 14-170 (Apr. 17, 2015). The Honorable Steve Chabot Page 2 of 2 It is my expectation that any new rules that are adopted will both reflect the dynamics of the current spectrum marketplace, and fulfill our statutory obligation to ensure that small businesses, rural telephone companies and minority and women-owned businesses have the opportunity to compete in spectrum auctions.4 Please do not hesitate to contact me if you have further questions. Sincerely, Tom Wheeler Enclosure Cc (with enclosure): The Honorable Nydia M. Velázquez Ranking Member 47 U.S.C. §309(j)(4)(D). FCC-HouseSmBusiness-0001 FCC-HouseSmBusiness-0002 FCC-HouseSmBusiness-0003 FCC-HouseSmBusiness-0004 FCC-HouseSmBusiness-0005 FCC-HouseSmBusiness-0006 FCC-HouseSmBusiness-0007