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 STATEMENT  OF  COMMISSIONER  MICHAEL  J.  COPPS 
 Re:  Implementation  of  the  Commercial  Spectrum  Enhancement  Act  and  Modernization  of  the  Commission’s  Competitive  Bidding  Rules  and  Procedures  (Order  on  Reconsideration  of 
 the  Second  R&  O,  WT  Docket  No.  05-  211). 
 Today’s  reconsideration  order  reaffirms  that  this  Commission  will  not  tolerate  unjust  enrichment  or  fraud  in  the  Designated  Entity  (DE)  program.  In  light  of  allegations  that  some  of 
 our  prior  auctions  were  tainted  by  such  practices,  I  believe  we  have  a  clear  duty  to  take  affirmative  action  to  eliminate  loopholes  in  our  existing  rules. 


 I  repeat  here  what  I  have  stated  previously  –  we  should  have  begun  our  consideration  of  these  rules  last  summer.  That  would  have  given  us  an  opportunity  to  reach  consensus  on  the 
 important  question  of  which  companies  should  be  allowed  to  acquire  a  partnership  interest  in  a  DE.  Unfortunately,  revisiting  that  question  at  this  point  would  mean  further  postponing  the  long-scheduled 
 AWS  auction.  That  we  cannot  do. 
 Study  after  study  demonstrates  that  our  nation’s  broadband  infrastructure  lags  dramatically  behind  other  industrialized  nations.  In  order  to  reverse  this  trend,  we  must 
 encourage  “third  pipe”  technologies  to  provide  some  at  least  some  challenge  to  the  cable/  telco  broadband  duopoly  in  our  cities.  In  rural  areas,  the  situation  is  even  graver.  The  GAO  recently 
 announced  that  the  Commission  has  not  even  properly  measured  the  rural-  urban  broadband  gap  –  a  gap  that  no  one  disputes  is  both  significant  and  deeply  troubling.  In  underserved  rural  regions 
 of  our  country,  AWS  spectrum  can  provide  a  desperately  needed  “first  pipe.”  The  upcoming  auction  can  be  an  important  step  in  making  this  happen. 
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