FCC Makes Rule Changes to Aid Minorities

The Federal Communications Commission moved Thursday to give minorities and women a better shot at winning licenses in the government’s next auction of the airwaves.

The agency said it adopted an installment payment plan for women- and minority-owned firms on certain licenses they win in the FCC’s next auction. The plan also clarified its definition of businesses owned by women and minorities.

The FCC said last month that it would give women- and minority-owned firms a 40% discount on their licenses. That was up from the 25% discount in the previous auctions. The 40% discounts apply to 10 of the 30 licenses that will be sold in the FCC’s next sale. That auction, for regional licenses to offer advanced paging and messaging services, will begin Oct. 25.

When Congress instructed the agency last year to begin auctioning broadcast licenses, it told the FCC to ensure that minorities, women and small businesses could compete against existing industry giants.

In the agency’s first auction in July, none of the 10 licenses to offer advanced paging and messaging services were captured by these special groups.

Several minority bidders at that auction complained that the FCC failed to satisfy its congressional mandate, even though the agency had said it would give them 25% discounts on certain licenses.

The new rules are an attempt to do a better job at meeting Congress’ aims.

The installment payment plan fixes interest charges at the time of licensing at the rate for 10-year U.S. Treasury obligations plus 2.5%. The agency will allow these groups to make interest-only payments for the first two years.