The FCC has waived the application of its attributable material relationship (AMR) rule, which establishes a bright-line trigger for the attribution of a lessee’s gross revenues to a Designated Entity (DE) applicant that has leased more than 25% of the capacity of any one of its licenses. The Commission waived application of the AMR rule for Grain Management LLC (Grain) although it leased 100% of the spectrum associated with four licenses to Verizon Wireless and AT&T because the licenses were not subject to DE benefits and, at the time the leases became effective, Grain held no other licenses subject to DE benefits. Application of the AMR rule would have resulted in Verizon Wireless’ and AT&T’s gross revenues being attributed to Grain when determining Grain’s DE eligibility. The Commission reserved the right to assess whether these leases or any other aspects of the parties’ relationships require the attribution of gross revenues to Grain should Grain win licenses claiming DE benefits.
For additional information, please contact Tara Shostek.