Sale of wireless slots is turning into a flap on affirmative action; critics challenge FCC's plan to aid small companies, women and minorities; lawsuit blocks June auction
Article Abstract:
The FCC's plan to sell a number of new wireless licenses as set asides to small businesses and those owned by minorities and women has turned into a fight over the federal government's affirmative action policies. The set-aside auction was stopped by a federal district court after a company in Mississippi filed suit in an attempt to change the FCC's revenue guidelines for bidders classified as entrepreneurs. The company furthered its claims by charging that the bidding guidelines dealing with gender and race are unconstitutional. The federal court's injunction against the FCC could delay the auction for longer than a year and threatens to eliminate any special preference set asides completely. Republicans in Congress are also expected to use the case as an example to argue that affirmative action programs need to be eliminated entirely.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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On-again, off-again wireless auctions are on again
Article Abstract:
After numerous legal stalls, the FCC appears ready to auction 493 small business licenses for wireless personal communications services (PCS) on Dec 18, 1995. An earlier auction for large companies netted $8 billion. Favorable terms offered to smaller companies include 25% bidding credits and ten-year payment terms. Preliminary deposits from 250 qualified bidders have so far totalled $768 million. An affirmative action clause was struck down in the auction's first legal delay, and a suit alleging that auction rules failed to prevent larger interests from deploying smaller 'front' organizations was overruled. A rule forbidding cellular companies from bidding within their service areas was next removed. Presently, a case is pending that would require the FCC to review its rules, but resolution appears imminent.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
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