Media Contact: 
Cecilia Sulhoff, (202) 418-0587
cecilia.sulhoff@fcc.gov
For Immediate Release
FCC REFORMS COMPETITIVE BIDDING RULES FOR SPECTRUM AUCTIONS
Modernizes rules to prevent gaming and provide flexibility for eligible small 
businesses and rural service providers  —
WASHINGTON, July 16, 2015 – The Federal Communications Commission adopted a Report 
and Order today that modernizes and reforms policies designed to facilitate small business’ 
ability to participate in spectrum auctions and the wireless marketplace. These policies are 
commonly known as the Designated Entity Rules.  
The Report and Order adopts common sense reforms to ensure that eligible small businesses and 
rural service providers are the true recipients of bidding credits. In addition, the Order provides 
greater flexibility to smaller companies and rural service providers to build wireless businesses 
that can spur additional investment in, and bring greater choice to, consumers and businesses 
across the country. 
With today’s action, the Commission is taking the following steps to provide small businesses—
including enterprises owned by women and minorities— with a better on-ramp into the wireless 
industry, to increase the participation of rural service providers in future auctions and to eliminate 
outdated rules that no longer reflect the developments in today’s wireless marketplace:
? Elimination of the attributable material relationship rule that limited the amount of 
spectrum a small business could lease in order to provide small businesses the flexibility 
to leverage leasing and other spectrum use agreements to gain access to capital and 
operational experience.
? Adoption of a first ever 15 percent bidding credit for qualifying service providers that 
provide commercial communications services to a customer base of fewer than 250,000 
combined wireless, wireline, broadband, and cable subscribers and serve predominantly 
rural areas.  
? Establishment of a first ever cap on the total amount of bidding credits that a small 
business or rural service provider can receive in any particular auction. The cap will vary 
on a service-by-service and auction-by-auction basis. For the Incentive Auction, the 
Report and Order adopts a cap of $150 million for small businesses and a $10 million 
ceiling on the overall amount that any entity—either a small business or rural service 
provider—can receive in smaller markets.
? Modifications to the Commission’s attribution rules to guard against unjust enrichment.
? Amendment of the competitive bidding rules to prohibit joint bidding and multiple 
applications by one party as well as parties with common controlling interests except in 
limited circumstances.
Action by the Commission July 16, 2015 by Report and Order, Order on Reconsideration, 
Third Order on Reconsideration and a Third Report and Order (FCC 15-80). Chairman 
Wheeler, Commissioners Clyburn, and Rosenworcel. Commissioner O’Rielly and Pai 
dissenting. Chairman Wheeler, Commissioners Clyburn, Rosenworcel, Pai and O’Rielly 
issuing statements.
-FCC-
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Office of Media Relations: (202) 418-0500
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www.fcc.gov/office-media-relations
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).