FCC Chairman Michael Powell has sent a letter to Capitol Hill objecting to legislation that would prohibit a certain spectrum auction involving Northpoint. In a letter to House Commerce, Justice, State and the Judiciary Subcommittee Chairman Frank Wolf (R-Va.), Powell pointed out that prohibiting the auction would deprive the treasury of revenue.
Wolf had solicited the FCC's opinion on pending legislation that would exempt Multichannel Video Distribution and Data Service (MVDDS) providers from the auction procedure. Last year, the FCC allowed MVDDS providers to use DBS spectrum, but has since determined to include them in the auction process. The pending legislation has bi-partisan support as well as opposition.
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