FCC’s Friends and Family Plan

Holman Jenkins, Wall Street Journal, August 5, 2014

Racial spoils are making a comeback at the Federal Communications Commission after being put mostly to rest in an important 2006 reform.

The latest sign is a quiet, nonpublic vote by Chairman Tom Wheeler and his two fellow Democrats to approve a waiver for minority entrepreneur David Grain, allowing him a 25% discount in this fall’s spectrum auction–a nice windfall.

Mr. Grain already owns several spectrum licenses acquired as part of a swap between AT&T and Verizon–which he leases back to AT&T and Verizon. This alone should have made him ineligible for bidding credits. Credits aren’t supposed to be available to those who are looking merely to flip spectrum for easy profits.

And this is just the latest action in favor of Mr. Grain’s private-equity fund, Grain Management. Last year Acting Chairwoman Mignon Clyburn, in the five months before Mr. Wheeler was confirmed, approved a convoluted bit of regulatory arbitrage in which AT&T and Verizon bought and swapped spectrum among themselves, then sold a portion to Mr. Grain so he could lease it back to them.

Also involved was the Minority Media and Telecommunications Council, a civil-rights lobby group that publicly took credit for promoting Mr. Grain to Verizon (Verizon is a charitable funder of MMTC).

Still left open is what happens in November if Mr. Grain wins more airwaves in the upcoming auction. Nobody anymore expects a minority- or woman-owned small business to raise the billions it would take to battle the big boys in today’s now-mature wireless scrum. Turns out Mr. Wheeler has a solution here too–a separate rule-making that would allow Mr. Grain to turn around and lease any newly acquired airwaves to the big boys as well.

If that weren’t enough, Mr. Wheeler has even taken under advisement a white paper by the MMTC, supported by other minority lobby groups, arguing that the minimum handout to minority bidders should be boosted to 40%.


And the MMTC? It has been helping to rally traditional civil rights-related organizations (several of which get big donations from AT&T and Verizon) to back the FCC chief in his holy war with left-wing groups like Free Press and smaller minority organizations like the National Hispanic Media Coalition.

Apparently one sacrifice the country is going to have to make to save the Internet from regulatory overkill is the 2006 reforms to the minority spectrum bidding regime. Everything the rules were meant to prevent–unjust, overnight enrichment of politically favored bidders–will again become the purpose of the rules.

From the moment Bloomberg News reported the David Grain waiver two weeks ago, the focus has been on Mr. Grain’s political giving. He was a big Obama bundler and lately has been generous to South Carolina Rep. James Clyburn, whose daughter is the FCC’s Ms. Clyburn. {snip}

In any case, he may be a fine person (everybody says so), but his windfall is coming straight from the taxpayer’s pocket. {snip}

Topics: ,

Share This

We welcome comments that add information or perspective, and we encourage polite debate. If you log in with a social media account, your comment should appear immediately. If you prefer to remain anonymous, you may comment as a guest, using a name and an e-mail address of convenience. Your comment will be moderated.
  • MekongDelta69

    Hey – Government – over here. Look over here. I’m a illegal alien black muslim gay trannie feminazi who’s an eco-terrorist, animal rights lunatic, can speak Ebonics as a first language, will stab anybody on command, and I hate everything America stands for.

    Can I get some government cheese too?

    Jes’ axin’

    • Pro_Whitey

      But what if you’re lactose intolerant? Wait! That’s just the result BO is looking for. You’ll be getting the cheese!

      • MekongDelta69

        The only thing I am is NoBama intolerant…

  • This story is just an example of big theft via the racial spoils system. Multiply this by tens of thousands of small thefts via all sorts of local minority set asides and the totals must be in the hundreds of billions of dollars annually. I’ve told the story of how several nearly illiterate Mexican profs at the San Antonio university became incredibly wealthy by plugging into the local spoils system.

    Meanwhile, white families are too poor to have big white families, impovererished by high taxes, affirmative action, and government regulations. Blacks and Mexicans thus outbreed us, forcing us into minority status, where our race will be slowly (or perhaps even speedily) exterminated by leftist totalitarians.

    Speedy extermination happened under Stalin. Extermination will happen again unless we rise up and overthrow this clusterfreak of a government. Like any sane person, I wish that peaceful change were possible, but I don’t think it is anymore. Look at how AT&T and Verizon cooperate with the occupational govenment in Washington. Those companies and the traitors within will have to pay a price when the current government is history.

    • Strichtplatte

      Speedy Liquidation will occur. It is not a pretty sight. Food or lack of it will be the weapon of choice. Biological weapons are now comming in from east and west and north and south, mostly south. The Governors who are allowing these weapons into their States should be charged with child abuse. All Government and “non-profit” agencies are purposefully encouraging and allowing these “children’s” live to be indangered. All from the obamer down are complicit in the crime of child abuse. In many many cases rape’s and murder and deaths have been documented. Enought evidence in rotting on the ground for charges. Sure is a lot of effort being expended to destroy the White European race. Liquidate the Frankfurt school!!!

    • Germanicus

      Your viewpoint is not easy to dismiss. Unlike any time ever in history, their power to “know” almost every opinion, partisan sympathies and plan crudely mimics omniscience. That is unless there is a precipitous congealing, a near-instantaneous awareness and clarity of the necessary action. We can play slow-no-oh-yes-oops-fait accompli game too. This is where the fiction writers and artists and musicians come in. Women are major, major conduits and reservoirs for communication, opinion and resistance (not to mention, THE source of baby sympathizers and compatriots, of course…though the hour is late, soldiers in diapers are always a welcomed encouragement in the pipeline). Getting women to ‘get’ just how perilous things are is difficult. They refuse to be told–except by other women. The women are again key here. The women currently of national prominence are still bedazzled by The Money of the Tribe–after all–these women rely on the Tribe’s airwaves. Never, never forget the driving force of who is using the third worlders as the global-gang trooops. These were the next wave of warriors: spearsman, legionaires, knights, sniper-guerillas, digital warriors, and now–voila–the native street thug & migrant in a super game of would-be post-national plutocracy. Well, sometimes (that is all of the times) things DO fall apart. The next soldier type…happens. Humpty-Dumpty sat on a wall…

  • “He may be a fine person”

    Fine people engage in bribery?

  • frank

    that’s just like insider trading no charges or an inquiry?

    • Jacobite2

      Insider trading is illegal but it isn’t wrong, like driving 50 in a 35 zone. Euro-Americans believe systematic government racial discrimination is wrong, but it isn’t illegal since the ’64 Civil Rights Act – as long as it’s against Euro-Americans.. Welcome to third-world diversity.

  • HJ11

    The war against Whites continues. Wake up Whitey!

  • IKUredux

    Nothing like the smell of 1776 in the morning.

    • Germanicus


  • none of your business

    ” traditional civil rights-related organizations (several of which get big donations from AT&T and Verizon)”
    Any White who is pro capitalist is a Fox channel watching moron. Ever seen the lists of big donors to every thing from Al Sharpton to Tim Wise? GM, Ford, GE, Micorosft and every big business in the country.

    It is all economic. From Drs to dishwashers the capitalists want an endless ocean of non Whites bringing down wages to serf levels. I say serf because slaves got more in food shelter, leisure, clothes and medical care than free labor ever got.

  • A Freespeechzone

    It’s never about fairness; it’s about ‘payback’, retribution and punishment against Whites.

    We let this happen.

  • superlloyd3 coon

    Incestuous feedback loops of vested interests; blatant discrimination for minorities (read low IQ congoids, primarily, and Hispanics, when necessary); immoral, unethical, corrupt rule making and deal brokering; overt, political, gerrymandering manipulation; total lack of public accountability.

    Welcome to Obama’s, liberal (HA, HA) democratic (HA, HA, HA) America.

  • Yancy Derringer

    This is criminal. Wheeler and cohorts should be arrested.

  • Germanicus

    Even if, no–especially if, prevailing in the mechanics of court and bureaucratic decision making in unlikely. Jam the system. Jam it, White boy.