FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Larry Bucshon U.S. House of Representatives 1005 Longworth House Office Building Washington, D.C. 20515 Dear Congressman Bucshon: July 27, 2015 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 top four national carriers serve 98 percent of all subscribers. Given these changes, the Commission acted to afford bona fide 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 service provider 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-fmanced 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 Larry Bucshon Thank you for your ongoing support of our efforts to promote competition and choice in mobile broadband. Sincerely, FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Kevin Cramer U.S. House ofRepresentatives 1032 Longworth House Office Building Washington, D.C. 20515 Dear Congressman Cramer: July 27, 2015 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 top four national carriers serve 98 percent of all subscribers. Given these changes, the Commission acted to afford bona fide 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 service provider 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 $1 0 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-fmanced 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 Kevin Cramer Thank you for your ongoing support of our efforts to promote competition and choice in mobile broadband. ;:_y,I;/J Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Rick Crawford U.S. House ofRepresentatives 1711 Longworth House Office Building Washington, D.C. 20515 Dear Congressman Crawford: July 27,2015 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 top four national carriers serve 98 percent of all subscribers. Given these changes, the Commission acted to afford bona fide 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 service provider 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 Rick Crawford 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 Vicky Hartzler U.S. House ofRepresentatives 1023 Longworth House Office Building Washington, D.C. 20515 Dear Congresswoman Hartzler: July 27, 2015 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 bonafide 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 top four national carriers serve 98 percent of all subscribers. Given these changes, the Commission acted to afford bona fide 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 service provider 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-fmanced 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 Vicky Hartzler Thank you for your ongoing support of our efforts to promote competition and choice in mobile broadband. FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable French Hill U.S. House ofRepresentatives 1229 Longworth House Office Building Washington, D.C. 20515 Dear Congressman Hill: July 27, 2015 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 top four national carriers serve 98 percent of all subscribers. Given these changes, the Commission acted to afford bona fide 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 service provider 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 French Hill Thank you for your ongoing support of our efforts to promote competition and choice in mobile broadband. Sincerely, ~ ~/ / l/£."Pf~1- Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Cynthia M. Lummis U.S. House ofRepresentatives 113 Cannon House Office Building Washington, D.C. 20515 Dear Congresswoman Lummis: July 27, 2015 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 top four national carriers serve 98 percent of all subscribers. Given these changes, the Commission acted to afford bona fide 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 service provider 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 Cynthia M. Lurnmis Thank you for your ongoing support of our efforts to promote competition and choice in mobile broadband. s~~{ Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Kristi Noem U.S. House of Representatives 1323 Longworth House Office Building Washington, D.C. 20515 Dear Congresswoman N oem: July 27,2015 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 top four national carriers serve 98 percent of all subscribers. Given these changes, the Commission acted to afford bona fide 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 service provider 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 Kristi Noem Thank you for your ongoing support of our efforts to promote competition and choice in mobile broadband. ~11t,I- Tom Wheeler