• B&C, Wednesday, August 25, 2010 11:13 PM

The Third Circuit Court of Appeals Tuesday threw out two FCC auction rules that required small businesses to hold their winning spectrum for at least 10 years before reselling it and prohibited them from leasing more than 50% to third parties.

The court concluded that both rules were imposed without sufficient notice and comment and were a violation of the Administrative Procedures Act. But it did not invalidate the relevant wireless spectrum auctions conducted under those rules, which were the $14 billion 2006 auction of Advanced Wireless Services spectrum in 2006 and the $19 billion 20008 auction in the switch to digital. The decision means designated entities like small and minority businesses that did win spectrum can wholesale or sublease as much of their spectrum as they like.

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