FCC Heeds Democrats' Call to Modernize Designated Entities Rules

Press Release

Today, after repeated calls for reform by House Energy and Commerce Committee Democrats, the Federal Communications Commission (FCC) finally voted to update its designated entities (DE) rules to ensure that they benefit genuine small businesses. Following the vote, full Committee Ranking Member Frank Pallone, Jr. (D-NJ), Rep. Bobby Rush (D-IL), Rep. Yvette D. Clarke (D-NY), Rep. G. K. Butterfield (D-NC), Rep. Doris Matsui (D-CA), and Rep. Ben Ray Luján (D-NM) commended the FCC for taking a much-needed step to level the playing field for small businesses competing for spectrum at the upcoming broadcast incentive auction.

Today's vote comes after Committee Democrats sent a letter to Chairman Wheeler in June urging the Commission to update its designated entities rules in order to encourage meaningful participation by actual small businesses.

"The need to modernize these rules and ensure a fair and competitive bidding process is clear, and I am pleased to see that our calls for reform were heeded," said Ranking Member Pallone. "Our country's small businesses deserve a fair shot at competing in today's wireless marketplace without large corporations trying to game the system.

"The FCC has worked hard to modernize its rules to accommodate the fast growing tech industry," said Rep. Bobby Rush. "As Members of Congress, we believe it is time for the FCC to update its rules that apply to designated entities. This will allow access to spectrum and wireless markets for DE's to flourish and prosper."

"If we are serious about our commitment to small businesses, we cannot exclude them from acquiring one of our nation's most critical assets - wireless spectrum," said Rep. Butterfield. "Today's action by the FCC should foster the meaningful engagement of small businesses, especially those owned by women and minorities, in this highly capital-intensive business. I am hopeful these new rules will provide the flexibility for DEs, especially new entrants, to raise the necessary capital to compete and win."

"Small businesses can't compete in the wireless industry without a fair shot at access to spectrum," said Rep. Matsui. "I am pleased the FCC is heeding our call for smart reforms to the designated entity rules. I look forward to continue working with the FCC on initiatives that support small businesses."

"Small businesses are the backbone of communities in New Mexico and across our nation," said Rep. Luján. "In today's fast-paced wireless marketplace, where technologies are advancing constantly, the FCC's rule changes will help small businesses compete and enhance their effort to innovate and stay on the cutting edge."

"By expanding opportunities to participate in broadcast spectrum auctions, we will support many small businesses owned by women and people of color -- who remain substantially underrepresented in telecommunications. These small business owners want to obtain licenses to open television and radio stations and to enter the market for wireless services, sectors of the economy that continue to develop as Americans access more content on their smartphones and tablets," said Congresswoman Clarke, who, as a member of both the Energy and Commerce Committee and the Small Business Committee, has worked to increase the participation of diverse small business owners in the market for broadcast spectrum. "This proposal has the potential both to create jobs and to increase diversity in our media."

The six Democratic lawmakers are also co-sponsors of the Small Business Access to Spectrum Act, which Pallone introduced earlier this year. The bill would ensure the FCC's competitive bidding rules are updated in time for real small businesses to have a chance to participate in the incentive auction.