DESIGNATED ENTITY ASKS FCC TO CLARIFY REVISED DE RULES

摘要

Designated entity Salmon Wireless met with Chmn. Kevin Martin last week to ask the FCC to clarify that 搖njust enrichment?provisions in the FCC抯 revised DE rules don抰 apply to spectrum sales agreed to but not consummated by April 26, the day the rules took effect. Specifically, Crowley Digital has a 損ut?right allowing it to sell its interest in Salmon to Cingular after the 5th anniversary of the receipt of its licenses. On April 4, Crowley said it will exercise this option. But if the new unjust enrichment schedule applies, Crowley would have to pay back 75% of the value of the bidding credits it used to buy the spectrum licenses, or $36.7 million, plus interest. 揘otably, virtually every other FCC-approved DE is facing the prospect of substantial retroactive penalties, meaning that there will be endless litigation involving this rule change if the FCC tries to apply it to pre-existing DEs,?Salmon said.