1835 K Street, N.W., Suite 650, Washington, D.C. 20006 202/223-8728 telephone, 202/659-0071 facsimile

As an association which looks for solutions to the problems which plague our industry and adversely impact small business, we have sought answers to overzealous use of auctions, unfettered use of freezes, unrecognized contributions of small business incumbents, perversion of entrepreneurial block auctions, and misinterpretations of auction authority by government officials. It is one thing to complain. It is another to find remedies.

To assist our members, SBT has drafted suggested revisions to the Telecommunications Act which, if enacted by Congress, would go a long way toward resolving many of the ills suffered by small business, while assuring a more judicious use of the FCC's authority in future rule makings. Nothing contained within the following revisions is believed to be outside or contrary to the articulated intentions of Congress when it passed the Omnibus Reconciliation Act of 1993, which provided auction authority to the FCC. Instead, the suggested language is intended to clarify and codify the will of Congress, to better guide the FCC's future decisions.

As you contact your Congressional offices ( which we strongly urge you to do) a copy of this suggested language should be presented to your contact. This document will help you explain to your elected representative what they can do to help you and people like you maintain your competitiveness in the years ahead.

Add new section 47 U.S.C. 308(d) below:

(d) Except in the case of an emergency, any order adopted by the Commission to discontinue the acceptance of any class of applications shall be adopted only following notice and comment rule making and any such order which exists upon enactment of this section, that does not comply with the language contained herein, shall be void. The Commission shall not adopt any such order which might create unjust enrichment of one class of competing applicants as against another class.

Revise 47 U.S.C. 309(j)(4) (D) to add the following double underlined portions:

(D) ensure that small businesses, incumbent licensees, rural telephone companies, and businesses owned by members of minority groups or women are given the opportunity to participate in the provision of spectrum-based services and, for such purposes, consider the use of tax certificates, bidding preferences, auctions in which only some or all of the aforementioned entities might participate, and other procedures; and

Revise 47 U.S.C. 309(j)(4)(E) to add the following double underlined portions:

(E) require such transfer disclosures and financial disclosures and antitrafficking restrictions an payment schedules as may be necessary to prevent unjust enrichment as a result of the methods employed to issue licenses and permits, including the unjust creation or financing of an entity which seeks benefits under Section 309(j)(4)(D).

Add new section 47 U.S.C. 309(j)(4)(F) below:

(F) not use competitive bidding procedures to decide among mutually exclusive applications for substantially licensed and occupied spectrum, when such procedures would impair an incumbent licensee's ability to compete, provide services to itself, expand its service area, or to add channels to serve an existing service area.

Add new section 47 U.S.C. 309(j)(6)(I)

(I) be construed as a presumption that use of competitive bidding procedures are in the public interest.