was also a winning bidder, has filed a petition to deny the applications of SNR and Northstar.
4.
This Memorandum Opinion and Order (MO&O) addresses the petitions to deny, oppositions
thereto, surreplies, and other related filings submitted by various parties in this proceeding.6 We find that
SNR and Northstar are not eligible for bidding credits under Section 1.2110(c)(2), because they have a
“controlling interest” in each other through their respective parent companies (i.e., DISH Network
Corporation (“DISH”) and Liberty Media Corporation (“Liberty”)). We also find that neither SNR nor
Northstar is eligible for bidding credits under Section 1.2110(c)(5)(i) because they do not have “de facto
control” of each other, as required by the Commission’s rules. Accordingly, we deny the applications of
SNR and Northstar for bidding credits in Auction 97.
5.
We also find that SNR and Northstar are not eligible to receive a “very small business”
discount under Section 1.2110(c)(3) because they each had gross revenues of more than $15 million over
the past three years, as required by the Commission’s rules. We therefore deny SNR and Northstar’s
applications for a “very small business” discount in Auction 97.
6.
We also address several other issues raised by the parties to this proceeding. First, we
conclude that VTel Corporation (“VTel”) has standing to challenge the applications of SNR and Northstar
in this proceeding. Second, we deny as moot the motions for leave to file surreplies submitted by CTTI
Wireless LLC (“CTTI”) and Rural Telephone Service Co-op (“RTA”), because their arguments are
addressed in our discussion below. Finally, we dismiss as untimely the petition to deny filed by VTel,
because it was not timely filed within the 30 days required by Commission rules.7
II. BACKGROUND
A. Auction 97
7.
On November 13, 2014, the FCC announced the opening of Auction 97, a public auction
of 1614 licenses in three bands: (1) 1695-1710 MHz; (2) 1755-1780 MHz; and (3) 2155-2180 MHz.8
The Commission established a gross revenue cap of $15 million for each applicant in order to ensure that
Auction 97 would be conducted in a manner consistent with the public interest, competitive bidding
principles, and the goals of promoting economic opportunity and competition.9 The auction was
conducted using an automated bidding system (ABS), which allowed bidders to submit their bids via
the Internet.10 Bidding concluded on January 29, 2015, with Northstar and SNR emerging as the winning
bidders for 345 and 357 licenses, respectively.
B. Contested Long-Form Applications
8.
On February 6, 2015, SNR and Northstar each filed a Form 175 Short-Form Application
(“Form 175”) with the Commission to obtain bidding credits under Section 1.2110 of the Commission’s
rules.11 In their respective Forms 175, both SNR and Northstar claimed that they were “very small
businesses” as defined in Section 1.2110(c)(3) because each had gross revenues of less than $15 million
over the past three years.12 In addition, both applicants asserted that they qualified for a 25 percent bidding
credit under Section 1.2110(c)(2).13 SNR and Northstar also submitted Form 601 “Long-Form
Applications” (“Form 601 Applications”) to the Commission on February 9, 2015.14 In their respective
Form 601 Applications, both applicants claimed that they were eligible for a “very small business”
discount under Section 1.2110(c)(3) and a 25 percent bidding credit under Section 1.2110(c)(2).
9.
On February 17, 2015, VTel filed a Petition to Deny the applications of SNR and Northstar
on the grounds that (1) neither applicant was eligible for a “very small business” discount under Section
1.2110(c)(3); (2) both applicants had a controlling interest in each other; and (3) neither applicant
qualified for a 25 percent bidding credit under Section 1.2110(c)(2).15 On February 24, 2015, CTTI
and RTA filed Petitions to Deny the applications of SNR and Northstar on similar grounds.16 On March
3, 2015, DISH filed a Petition to Deny the applications of both applicants, arguing that neither was
eligible for a “very small business” discount under Section 1.2110(c)(3) or a 25 percent bidding credit
under Section 1.2110(c)(2).17
10.
On March 6, 2015, SNR and Northstar each filed an Opposition to the respective Petitions
to Deny filed by VTel, CTTI, and RTA.18 On March 13, 2015, DISH filed a Surreply in support of its
Petition to Deny.19 On March 24, 2015, VTel filed a Reply in support of its Petition to Deny.20 On
March 30, 2015, CTTI and RTA each filed Replies in support of their respective Petitions to Deny.21
On April 7, 2015, SNR and Northstar each filed Surreplies in opposition to the respective Petitions to
Deny.22 On April 14, 2015, DISH filed a Reply in support of its Petition to Deny.23 On April 28, 2015,
VTel filed a Response to SNR and Northstar’s Surreplies.24 Finally, on May 5, 2015, CTTI and RTA
each filed Responses to the Surreplies of SNR and Northstar.25
C. Pleadings and Other Filings
11.
In addition to the above-described filings, several other parties have submitted pleadings
and other documents in this proceeding. For example: (1) on March 30, 2015, Liberty filed a Motion for
Leave to File a Surreply; (2) on April 7, 2015, CTTI and RTA each filed Motions for Leave to File
Surreplies; (3) on April 14, 2015, VTel filed a Motion for Leave to File a Surreply; (4) on April 28,
2015, SNR and Northstar each filed Oppositions to the respective Motions for Leave to File Surreplies
filed by CTTI and RTA; (5) on May 5, 2015, VTel filed a Motion to Dismiss or Strike DISH’s Petition
to Deny; (6) on May 8, 2015, SNR and Northstar each filed Replies in opposition to VTel’s Motion to
Dismiss or Strike; (7) on May 13, 2015, DISH filed a Surreply in support of its Petition to Deny; (8)
on May 19, 2015, SNR and Northstar each filed Responses to DISH’s Surreply; (9) on June 10,
2015, VTel filed a Reply in support of its Motion to Dismiss or Strike; (10) on June 16, 2015, CTTI
and RTA each filed Responses to VTel’s Reply; and (11) on July 7, 2015, DISH filed a Response to
SNR and Northstar’s respective Responses.
12.
In addition to the above-described pleadings, several parties have also submitted other
documents in support of their positions. For example: (1) on March 3, 2015, DISH filed a Declaration
of Robert J. Levin; (2) on March 6, 2015, SNR and Northstar each filed Declarations of David L.
McClure; (3) on March 9, 2015, VTel
