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Court Overturns FCC Auction Rules

in FCC/Spectrum by

WASHINGTON, August 26, 2010 – The Third Circuit Court of Appeals has concluded that the Federal Communications Commission auction rules have violated the Administrative Procedures Act. The rules mandated that small businesses hold their spectrum for 10 years prior to selling it and prevented them from leasing more than 50 percent of the spectrum to third parties.

The court found that the imposition of these rules happened without sufficient notice.

This ruling will allow the winners of the AWS auction and the 700 megahertz auction to resell their spectrum.

“We are gratified that the court recognized the merits of this case in vacating the two new rules,” said Minority Media & Telecommunications Council President David Honig. “This pro-small business, pro-new entrant and pro-diversity ruling will advance wireless industry competition and ultimately benefit consumers and business alike.”

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