Friday, May 12, 2006

Kushnick's Teletruth Alleges Auction 'Rigging'

Teletruth today filed an $8 billion complaint alleging that Verizon, AT&T, Cingular (SBC, AT&T and BellSouth), T-Mobile, Sprint and others rigged the FCC wireless auctions by creating false fronts to pose as "very small businesses". This allowed these companies to secure valuable wireless spectrum at discounted prices. This Complaint was filed with the FCC, DOJ, SEC, and various committees in Congress. Deceptive Practices: Is it legal for America’s "Very Large Businesses" to pose as ‘Very Small Businesses" to win wireless licenses to be used by the very large business? The whole story from TeleTruth here. The short version from Telecomweb here. Keen quote from Commissioner Adelstein on April 25, 2006: "We missed a real opportunity to shut down what almost everyone recognizes has the potential for the largest abuse of our Designated Entity program: giant wireless companies using false fronts to get spectrum on the cheap."

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