FEDERAL COMMUNICATIONS COMMISSION 
WASHINGTON 
OFFICE OF 
THE CHAIRMAN 
The Honorable Ron Kind 
U.S. House ofRepresentatives 
September 1, 2015 
1502 Longworth House Office Building 
Washington, D.C. 20515 
Dear Congressman Kind: 
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 bona fide 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 Ron Kind 
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 Todd Young 
U.S. House of Representatives 
September 1, 2015 
1721 Longworth House Office Building 
Washington, D.C. 20515 
Dear Congressman Young: 
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 bona fide 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 Repo11 & 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 Todd Yotmg 
Thank you for your ongoing support of our efforts to promote competition and choice in 
mobile broadband. 
s;J;J/~£ 
Tom Wheeler