FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Al Franken United States Senate 309 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Franken: September 1, 2015 Thank you for your letter regarding the Commission's efforts to update our competitive bidding rules to provide small businesses and rural service providers with greater flexibility to compete in today's wireless marketplace. I appreciate your leadership and support for our efforts to ensure that bonafide small businesses and eligible rural service providers have the opportunity to participate in our spectrum auctions and in the provision of spectrum-based services. To that end, the Commission recently adopted a Report & Order updating our competitive bidding rules to reflect the dramatic changes in the wireless marketplace since they were last updated in 2006. In 2006, the top four national carriers served 82 percent of the market; today the share of the top four national carriers has increased to 98 percent. Given these changes, the Commission acted in order to afford bonafide small businesses and eligible rural service providers a better on-ramp into the wireless industry and the flexibility to make businesses decisions that can create more wireless choices for consumers. As you note, the Communications Act of 1934, as amended, directs the Commission to ensure rural service providers have the opportunity to compete for spectrum in the Commission's spectrum auctions. To aid these rural service providers, the Report & Order creates a bidding credit to incentivize their participation in future auctions and facilitate competition in rural areas. Specifically, the rural bidding credit will allow entities that serve predominantly rural areas and provide services to 250,000 subscribers or less to receive a 15 percent bidding credit or discount on the amount they must pay for licenses awarded at auction. For the upcoming Incentive Auction, at the request of rural service providers, the Report & Order also establishes a $10 million cap on the overall amount of discounts that either small businesses or rural service providers may receive in smaller markets to ensure that they can compete for spectrum on equal footing with larger, well-financed small businesses. Ultimately, the reforms adopted in the Report & Order will increase the economic oppo11unity for small and rural businesses, as well as ensure that the beneficiaries of our competitive bidding rules are those intended by Congress. Page 2-The Honorable Al Franken Thank you for your ongoing support of our efforts to promote competition and choice in mobile broadband. Sincerely, ~ ~p.~ FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Heidi Heitkamp United States Senate G55 Dirksen Senate Office Building Washington, D.C. 20510 Dear Senator Heitkamp: September 1, 2015 Thank you for your letter regarding the Commission' s efforts to update our competitive bidding rules to provide small businesses and rural service providers with greater flexibility to compete in today ' s wireless marketplace. I appreciate your leadership and support for our efforts to ensure that bonafide small businesses and eligible rural service providers have the opportunity to participate in our spectrum auctions and in the provision of spectrum-based services. To that end, the Commission recently adopted a Report & Order updating our competitive bidding rules to reflect the dramatic changes in the wireless marketplace since they were last updated in 2006. In 2006, the top four national carriers served 82 percent of the market; today the share of the top four national carriers has increased to 98 percent. Given these changes, the Commission acted in order to afford bonafide small businesses and eligible rural service providers a better on-ramp into the wireless industry and the flexibility to make businesses decisions that can create more wireless choices for consumers. As you note, the Communications Act of 1934, as amended, directs the Commission to ensure rural service providers have the opportunity to compete for spectrum in the Commission's spectrum auctions. To aid these rural service providers, the Report & Order creates a bidding credit to incentivize their participation in future auctions and facilitate competition in rural areas. Specifically, the rural bidding credit will allow entities that serve predominantly rural areas and provide services to 250,000 subscribers or less to receive a 15 percent bidding credit or discount on the amount they must pay for licenses awarded at auction. For the upcoming Incentive Auction, at the request of rural service providers, the Report & Order also establishes a $10 million cap on the overall amount of discounts that either small businesses or rural service providers may receive in smaller markets to ensure that they can compete for spectrum on equal footing with larger, well-financed small businesses. Ultimately, the reforms adopted in the Report & Order will increase the economic opportunity for small and rural businesses, as well as ensure that the beneficiaries of our competitive bidding rules are those intended by Congress. Page 2-The Honorable Heidi Heitkamp Thank you for your ongoing support of our efforts to promote competition and choice in mobile broadband. jiJW{t- Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Amy Klobuchar United States Senate 302 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Klobuchar: September 1, 2015 Thank you for your letter regarding the Commission's efforts to update our competitive bidding rules to provide small businesses and rural service providers with greater flexibility to compete in today ' s wireless marketplace. I appreciate your leadership and support for our efforts to ensure that bonafide small businesses and eligible rural service providers have the opportunity to participate in our spectrum auctions and in the provision of spectrum-based services. To that end, the Commission recently adopted a Report & Order updating our competitive bidding rules to reflect the dramatic changes in the wireless marketplace since they were last updated in 2006. In 2006, the top four national carriers served 82 percent of the market; today the share ofthe top four national carriers has increased to 98 percent. Given these changes, the Commission acted in order to afford bonafide small businesses and eligible rural service providers a better on-ramp into the wireless industry and the flexibility to make businesses decisions that can create more wireless choices for consumers. As you note, the Communications Act of 1934, as amended, directs the Commission to ensure rural service providers have the opportunity to compete for spectrum in the Commission ' s spectrum auctions. To aid these rural service providers, the Report & Order creates a bidding credit to incentivize their participation in future auctions and facilitate competition in rural areas. Specifically, the rural bidding credit will allow entities that serve predominantly rural areas and provide services to 250.000 subscribers or less to receive a 15 percent bidding credit or discount on the amount they must pay for licenses awarded at auction. For the upcoming Incentive Auction, at the request of rural service providers, the Report & Order also establishes a $10 million cap on the overall amount of discounts that either small businesses or rural service providers may receive in smaller markets to ensure that they can compete for spectrum on equal footing with larger, well-financed small businesses. Ultimately, the reforms adopted in the Report & Order will increase the economic opportunity for small and rural businesses, as well as ensure that the beneficiaries of our competitive bidding rules are those intended by Congress. Page 2-The Honorable Amy Klobuchar Thank you for your ongoing support of our efforts to promote competition and choice in mobile broadband. -;;It(? Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Pat Roberts United States Senate 109 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Roberts: September 1, 2015 Thank you for your letter regarding the Commission's efforts to update our competitive bidding rules to provide small businesses and rural service providers with greater flexibility to compete in today ' s wireless marketplace. I appreciate your leadership and support for our efforts to ensure that bonafide small businesses and eligible rural service providers have the opportunity to participate in our spectrum auctions and in the provision of spectrum-based services. To that end, the Commission recently adopted a Report & Order updating our competitive bidding rules to reflect the dramatic changes in the wireless marketplace since they were last updated in 2006 . In 2006, the top four national carriers served 82 percent of the market; today the share ofthe top four national carriers has increased to 98 percent. Given these changes, the Commission acted in order to afford bonafide small businesses and eligible rural service providers a better on-ramp into the wireless industry and the flexibility to make businesses decisions that can create more wireless choices for consumers. As you note, the Communications Act of 1934, as amended, directs the Commission to ensure rural service providers have the opportunity to compete for spectrum in the Commission's spectrum auctions. To aid these rural service providers, the Report & Order creates a bidding credit to incentivize their participation in future auctions and facilitate competition in rural areas . Specifically, the rural bidding credit will allow entities that serve predominantly rural areas and provide services to 250,000 subscribers or less to receive a 15 percent bidding credit or discount on the amount they must pay for licenses awarded at auction. For the upcoming Incentive Auction, at the request of rural service providers, the Report & Order also establishes a $1 0 million cap on the overall amount of discounts that either small businesses or rural service providers may receive in smaller markets to ensure that they can compete for spectrum on equal footing with larger, well-financed small businesses. Ultimately, the reforms adopted in the Report & Order will increase the economic opportunity for small and rural businesses, as well as ensure that the beneficiaries of our competitive bidding rules are those intended by Congress. Page 2-The Honorable Pat Roberts Thank you for your ongoing support of our efforts to promote competition and choice in mobile broadband. Sincerely,_ J / {__ ~7~~ Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Jeanne Shaheen United States Senate 520 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Shaheen: September 1, 2015 Thank you for your letter regarding the Commission's efforts to update our competitive bidding rules to provide small businesses and rural service providers with greater flexibility to compete in today's wireless marketplace. I appreciate your leadership and support for our efforts to ensure that bonafide small businesses and eligible rural service providers have the opportunity to participate in our spectrum auctions and in the provision of spectrum-based services. To that end, the Commission recently adopted a Report & Order updating our competitive bidding rules to reflect the dramatic changes in the wireless marketplace since they were last updated in 2006. In 2006, the top four national carriers served 82 percent of the market; today the share of the top four national carriers has increased to 98 percent. Given these changes, the Commission acted in order to afford bonafide small businesses and eligible rural service providers a better on-ramp into the wireless industry and the flexibility to make businesses decisions that can create more wireless choices for consumers. As you note, the Communications Act of 1934, as amended, directs the Commission to ensure rural service providers have the opportunity to compete for spectrum in the Commission ' s spectrum auctions. To aid these rural service providers, the Report & Order creates a bidding credit to incentivize their participation in future auctions and facilitate competition in rural areas. Specifically, the rural bidding credit will allow entities that serve predominantly rural areas and provide services to 250,000 subscribers or less to receive a 15 percent bidding credit or discount on the amount they must pay for licenses awarded at auction. For the upcoming Incentive Auction, at the request of rural service providers, the Report & Order also establishes a $1 0 million cap on the overall amount of discounts that either small businesses or rural service providers may receive in smaller markets to ensure that they can compete for spectrum on equal footing with larger, well-financed small businesses. Ultimately, the reforms adopted in the Report & Order will increase the economic opportunity for small and rural businesses, as well as ensure that the beneficiaries of our competitive bidding rules are those intended by Congress. Page 2-The Honorable Jeanne Shaheen Thank you for your ongoing support of our efforts to promote competition and choice in mobile broadband. ;:~~(_ Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Jon Tester United States Senate 724 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Tester: September 1, 2015 Thank you for your letter regarding the Commission's efforts to update our competitive bidding rules to provide small businesses and rural service providers with greater flexibility to compete in today ' s wireless marketplace. I appreciate your leadership and support for our efforts to ensure that bonafide small businesses and eligible rural service providers have the opportunity to participate in our spectrum auctions and in the provision of spectrum-based services. To that end, the Commission recently adopted a Report & Order updating our competitive bidding rules to reflect the dramatic changes in the wireless marketplace since they were last updated in 2006. In 2006, the top four national carriers served 82 percent of the market; today the share of the top four national carriers has increased to 98 percent. Given these changes, the Commission acted in order to afford bonafide small businesses and eligible rural service providers a better on-ramp into the wireless industry and the flexibility to make businesses decisions that can create more wireless choices for consumers. As you note, the Communications Act of 1934, as amended, directs the Commission to ensure rural service providers have the opportunity to compete for spectrum in the Commission' s spectrum auctions. To aid these rural service providers, the Report & Order creates a bidding credit to incentivize their participation in future auctions and facilitate competition in rural areas. Specifically, the rural bidding credit will allow entities that serve predominantly rural areas and provide services to 250,000 subscribers or less to receive a 15 percent bidding credit or discount on the amount they must pay for licenses awarded at auction. For the upcoming Incentive Auction, at the request of rural service providers, the Report & Order also establishes a $1 0 million cap on the overall amount of discounts that either small businesses or rural service providers may receive in smaller markets to ensure that they can compete for spectrum on equal footing with larger, well-financed small businesses. Ultimately, the reforms adopted in the Report & Order will increase the economic opportunity for small and rural businesses, as well as ensure that the beneficiaries of our competitive bidding rules are those intended by Congress. Page 2-The Honorable Jon Tester Thank you for your ongoing support of our efforts to promote competition and choice in mobile broadband. Tom Wheeler