Public interest groups ask FCC to keep Dish from selling spectrum

Two public interest groups told the Federal Communications Commission on Friday that if it grants Dish Network a large block of spectrum for free, it should come with conditions meant to ensure the grant serves the public interest — by keeping the company from selling it to AT&T or Verizon.

Public Knowledge and the New America Foundation filed comments with the FCC in a proceeding that Dish hopes will result in the FCC granting it a block of spectrum that has an estimated value of between $4 billion and $6 billion.

Dish is asking the FCC for a waiver that would allow it to use some of the same 2 gigahertz spectrum that it uses to communicate with satellites to operate a mobile network. 

The public interest groups said in the filing that they "welcome the Commission's effort to reallocate fallow Mobile Satellite Spectrum for more fully flexible licensing in a manner that holds the potential to promote wireless industry competition, innovation and consumer welfare.”

But given the value of the spectrum, the groups warned Dish could simply “flip” it to Verizon or AT&T, and said the FCC should impose conditions on the company to prevent that from happening.

The groups urged the FCC to set aside half the spectrum for wholesale leasing or roaming by other carriers.

"Since the Commission is withholding this spectrum from competitive bidding ... there is a compelling public interest in promoting both competition among wireless providers and innovation in the adjacent markets for available on fair and equitable terms," they said.

The groups said the spectrum should be subject to "use it or share it" requirements that would allow other devices to use of the spectrum if Dish doesn't immediately build out its network and the FCC should impose "unjust enrichment" penalties on Dish if it sells any of the spectrum to AT&T or Verizon.

"The unjust enrichment rules ... are particularly appropriate and workable model for a condition ensuring that [Dish] does not use its enormous public subsidy to harm the public by worsening the competitive landscape of an industry that is already consolidating and threatening to become an effective duopoly," they said.