Carr Demands Answers From Voqal; Changes Seen Likely to EBS Draft
FCC Commissioner Brendan Carr sent a letter to Voqal CEO John Schwartz Tuesday asking questions about the nonprofit’s business model and how it has conducted business. Meanwhile, the FCC is preparing to vote on an order relocating the 2.5 GHz educational broadband service band (see 1906190063). FCC officials told us another 10 or so letters are coming for similar entities. The Voqal letter raises questions about alleged self-dealing. Officials also said the draft 2.5 GHz order is likely to be changed to reflect concerns about the national nonprofits.
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“A review of your organization’s publicly available material raises questions about your compliance with the Commission’s rules: whether you properly qualify to hold an EBS license, whether your use of EBS licenses and associated revenues comply with our regulations, and whether your corporate governance practices are consistent with applicable law,” Carr wrote.
“We appreciate Commissioner Carr’s interest in EBS and Voqal,” emailed Kristen Perry, Voqal chief communications officer. “We are reviewing the letter now and look forward to getting the Commissioner the information he has requested.”
The letter asks Schwartz to explain how the organization complies with “our detailed local participation requirements for nonlocal licensees. ... Detail the complete list of accredited educational institutions you serve within each of your license areas, and provide copies of the administrator and local program committees’ letters for those institutions.” Carr noted the rules authorize spectrum leasing if at least 5 percent of capacity is reserved for specified educational uses: “How do you comply with that educational requirement? Provide detailed calculations of total license capacity and the portion used to comply.”
The letter asked for details on the $642,346, including $403,832 for employee salaries, Voqal reported paying to EBS Support Services in the 2016 tax year. It also asked about another $1 million paid that year to Public Communicators, “by far your largest grant.” Public Communicators “appears to have been founded by you (the President of Voqal), and for the 2016 tax year, Public Communicators reported loaning you $60,000,” the letter says.
Voqal has been one of the EBS organizations most active in the 2.5 GHz proceeding. The draft order mentions it more than 30 times.
AT&T, meanwhile, reported Tuesday on a meeting with aides to Carr and Commissioners Mike O’Rielly and Geoffrey Starks on changes it would like to see on the 2.5 GHz rules. “Take critical steps to improve the viability of its proposed overlay auction of spectrum in the 2.5 GHz EBS band,” asked a filing in docket 18-120: “Strive to remedy the comparative information advantage of existing EBS licensees and lessees by making critical details, including lease terms and existing and planned deployments, available to all auction participants,” AT&T advised: “To ensure adequate buildout of this critical spectrum, the Commission should also apply the new buildout obligations to, at a minimum, all 2.5 GHz EBS spectrum licensees that have leased their spectrum for commercial services.”