[Federal Register Volume 66, Number 82 (Friday, April 27, 2001)]
[Notices]
[Pages 21143-21156]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-10492]
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FEDERAL COMMUNICATIONS COMMISSION
[Report No. AUC-01-40-B (Auction No. 40); DA 01-850]
Lower and Upper Paging Bands Auction Scheduled for June 26, 2001;
Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments
and Other Procedural Issues
AGENCY: Federal Communications Commission.
ACTION: Notice.
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SUMMARY: This document announces the procedures and minimum opening
bids for the upcoming auction of licenses for the lower and upper
paging bands (Auction No. 40) scheduled for June 26, 2001.
DATES: Auction No. 40 is scheduled for June 26, 2001.
FOR FURTHER INFORMATION CONTACT: Auctions and Industry Analysis
Division: Erik Salovaara, Legal Branch, or Jeff Crooks, Auctions
Operations Branch, at (202) 418-0660; Lisa Stover, Auctions Operations
Branch, at (717) 338-2888. Commercial Wireless Division: Gary Oshinsky,
Policy and Rules Branch, at (202) 418-7167, or Bettye Woodward,
Licensing and Technical Analysis Branch, at (202) 418-0620. Media
Contact: Meribeth McCarrick at (202) 418-0654.
SUPPLEMENTARY INFORMATION: This is a summary of the Auction No. 40
Procedures Public Notice released April 9, 2001. The complete text of
the
[[Page 21144]]
Auction No. 40 Procedures Public Notice, including attachments, is
available for inspection and copying during normal business hours in
the FCC Reference Center (Room CY-A257), 445 12th Street, SW.,
Washington, DC 20554. It may also be purchased from the Commission's
copy contractor, International Transcription Services, Inc. (ITS, Inc.)
1231 20th Street, NW., Washington, DC 20036, (202) 857-3800. It is also
available on the Commission's web site at http://www.fcc.gov.
List of Attachments available at the FCC:
Attachment A--Licenses to be Auctioned
Attachment B--FCC Auction Seminar Registration Form
Attachment C--Electronic Filing and Review of the FCC Form 175
Attachment D--Guidelines for Completion of FCC Form 175 and
Exhibits
Attachment E--Instructions for FCC Remittance Advice (FCC Form 159)
Attachment F--Accessing the FCC Network to File FCC Form 175
Attachment G--Summary of Documents Addressing the Anti-Collusion
Rules
I. General Information
A. Introduction
1. By the Auction No. 40 Procedures Public Notice, the Wireless
Telecommunications Bureau (``Bureau'') announces the procedures and
minimum opening bids for the upcoming auction of licenses for the lower
and upper paging bands (``Auction No. 40'') scheduled for June 26,
2001. On March 7, 2001, in accordance with the Balanced Budget Act of
1997, the Bureau released the Auction No. 40 Comment Public Notice, 66
FR 15254 (March 16, 2001) seeking comment on reserve prices or minimum
opening bids and the procedures to be used in Auction No. 40. The
Bureau received three comments and four reply comments in response to
the Auction No. 40 Comment Public Notice.
i. Background of Proceeding
2. In the Paging Second Report and Order, 66 FR 11616 (March 12,
1997), the Commission adopted rules governing geographic licensing for
exclusive channels in the 35-36 MHz, 43-44 MHz, 152-159 MHz, 454-460
MHz, 929-930 MHz, and 931-932 MHz bands allocated for paging, and
competitive bidding procedures for granting mutually exclusive
applications for non-nationwide geographic area licenses in those
bands. In order to facilitate geographic licensing, the Commission
dismissed all pending mutually exclusive paging applications and all
non-mutually exclusive paging applications filed after July 31, 1996.
In part, the Commission developed a standard methodology for providing
protection to incumbent licensees from co-channel interference for the
929-930 MHz and 931-932 MHz paging bands to supplement the existing
formulas for determining interference contours on other paging bands.
i. Licenses To Be Auctioned
3. The licenses available in Auction No. 40 include 14,000 lower
paging bands (35-36 MHz, 43-44 MHz, 152-159 MHz, and 454-460 MHz)
licenses, as well as 1,514 upper paging bands (929-931 MHz) licenses
that were unsold in the first paging auction (``Auction No. 26''). The
lower bands licenses will be awarded in each of the 175 geographic
areas known as Economic Areas (EAs) and the upper bands licenses will
be awarded in each of the 51 geographic areas known as Major Economic
Areas (MEAs). These EAs and MEAs both encompass the United States, Guam
and Northern Mariana Islands, Puerto Rico and the United States Virgin
Islands, and American Samoa. The tables contain the block/frequency
cross-reference list for the paging bands. A complete list of licenses
available for Auction No. 40 is included as Attachment A of the Auction
No. 40 Procedures Public Notice.
------------------------------------------------------------------------
Block (license suffix) Frequency
------------------------------------------------------------------------
35 MHz Lower Bands Unpaired Paging Channels
------------------------------------------------------------------------
CA...................................................... 35.19-35.21
CB...................................................... 35.21-35.23
CC...................................................... 35.23-35.25
CD...................................................... 35.25-35.27
CE...................................................... 35.29-35.31
CF...................................................... 35.33-35.35
CG...................................................... 35.37-35.39
CH...................................................... 35.41-35.43
CI...................................................... 35.45-35.47
CJ...................................................... 35.49-35.51
CK...................................................... 35.53-35.55
CL...................................................... 35.55-35.57
CM...................................................... 35.57-35.59
CN...................................................... 35.59-35.61
CO...................................................... 35.61-35.63
CP...................................................... 35.65-35.68
------------------------------------------------------------------------
43 MHz Lower Bands Unpaired Paging Channels
------------------------------------------------------------------------
DA...................................................... 43.19-43.21
DB...................................................... 43.21-43.23
DC...................................................... 43.23-43.25
DD...................................................... 43.25-43.27
DE...................................................... 43.29-43.31
DF...................................................... 43.33-43.35
DG...................................................... 43.37-43.39
DH...................................................... 43.41-43.43
DI...................................................... 43.45-43.47
DJ...................................................... 43.49-43.51
DK...................................................... 43.53-43.55
DL...................................................... 43.55-43.57
DM...................................................... 43.57-43.59
DN...................................................... 43.59-43.61
DO...................................................... 43.61-43.63
DP...................................................... 43.65-43.67
------------------------------------------------------------------------
------------------------------------------------------------------------
Block (license suffix) Frequency
------------------------------------------------------------------------
152 MHz Lower Bands Unpaired Paging Channels
------------------------------------------------------------------------
EA............................... 152.230-152.250
EB............................... 152.830-152.850
EC............................... 158.090-158.110
ED............................... 158.690-158.710
------------------------------------------------------------------------
FA............................... 152.015-152.045/158.475-158.505
FB............................... 152.045-152.075/158.505-158.535
FC............................... 152.075-152.105/158.535-158.565
FD............................... 152.105-152.135/158.565-158.595
FE............................... 152.135-152.165/158.595-158.625
FF............................... 152.165-152.195/158.625-158.655
FG............................... 152.195-152.225/158.655-158.685
FH............................... 152.495-152.525/157.755-157.785
FI............................... 152.525-152.555/157.785-157.815
FJ............................... 152.555-152.585/157.815-157.845
FK............................... 152.585-152.615/157.845-157.875
FL............................... 152.615-152.645/157.875-157.905
FM............................... 152.645-152.685/157.905-157.935
FN............................... 152.685-152.705/157.935-157.965
FO............................... 152.705-152.735/157.965-157.995
FP............................... 152.735-152.765/157.995-158.025
FQ............................... 152.765-152.795/158.025-158.055
FR............................... 152.795-152.825/158.055-158.085
------------------------------------------------------------------------
454 MHz Lower Bands Paired Paging Channels
------------------------------------------------------------------------
GA............................... 454.0125-454.0375/459.0125-459.0375
GB............................... 454.0375-454.0625/459.0375-459.0625
GC............................... 454.0625-454.0875/459.0625-459.0875
GD............................... 454.0875-454.1125/459.0875-459.1125
GE............................... 454.1125-454.1375/459.1125-459.1375
GF............................... 454.1375-454.1625/459.1375-459.1625
[[Page 21145]]
GG............................... 454.1625-454.1875/459.1625-459.1875
GH............................... 454.1875-454.2125/459.1875-459.2125
GI............................... 454.2125-454.2375/459.1265-459.2375
GJ............................... 454.2375-454.2625/459.2375-459.2625
GK............................... 454.2625-454.2875/459.2625-459.2875
GL............................... 454.2875-454.3125/459.2875-459.3125
GM............................... 454.3125-454.3375/459.3125-454.3375
GN............................... 454.3375-454.3625/459.3375-459.3625
GO............................... 454.3625-454.3875/459.3625-459.3875
GP............................... 454.3875-454.4125/459.3875-459.4125
GQ............................... 454.4125-454.4375/459.4125-459.4375
GR............................... 454.4375-454.4625/459.4375-459.4625
GS............................... 454.4625-454.4875/459.4625-459.4875
GT............................... 454.4875-454.5125/459.4875-459.5125
GU............................... 454.5125-454.5375/459.5125-459.5375
GV............................... 454.5375-454.5625/459.5375-459.5625
GW............................... 454.5625-454.5875/459.5625-459.5875
GX............................... 454.5875-454.6125/459.5875-459.6125
GY............................... 454.6125-454.6375/459.6125-459.6375
GZ............................... 454.6375-454.6625/459.6375-459.6625
------------------------------------------------------------------------
------------------------------------------------------------------------
Block (license suffix) Frequency
------------------------------------------------------------------------
929-931 MHz Upper Bands Paging Channels
------------------------------------------------------------------------
A....................................................... 929.0125
B....................................................... 929.1125
C....................................................... 929.2375
D....................................................... 929.3125
E....................................................... 929.3875
F....................................................... 929.4375
G....................................................... 929.4625
H....................................................... 929.6375
I....................................................... 929.6875
J....................................................... 929.7875
K....................................................... 929.9125
L....................................................... 929.9625
AA...................................................... 931.0125
AB...................................................... 931.0375
AC...................................................... 931.0625
AD...................................................... 931.0875
AE...................................................... 931.1125
AF...................................................... 931.1375
AG...................................................... 931.1625
AH...................................................... 931.1875
AI...................................................... 931.2125
AJ...................................................... 931.2375
AK...................................................... 931.2625
AL...................................................... 931.2875
AM...................................................... 931.3125
AN...................................................... 931.3375
AO...................................................... 931.3625
AP...................................................... 931.3875
AQ...................................................... 931.4125
AR...................................................... 931.4375
AS...................................................... 931.4625
AT...................................................... 931.4875
AU...................................................... 931.5125
AV...................................................... 931.5375
AW...................................................... 931.5625
AX...................................................... 931.5875
AY...................................................... 931.6125
AZ...................................................... 931.6375
BA...................................................... 931.6625
BB...................................................... 931.6875
BC...................................................... 931.7125
BD...................................................... 931.7375
BE...................................................... 931.7625
BF...................................................... 931.7875
BG...................................................... 931.8125
BH...................................................... 931.8375
BI...................................................... 931.8625
BJ...................................................... 931.9625
BK...................................................... 931.9875
------------------------------------------------------------------------
(Licenses are not available for each block in every market; 985 upper
bands licenses were sold in Auction No. 26. See Attachment A of the
Auction No. 40 Procedures Public Notice to determine what licenses
will be offered in Auction No. 40.)
B. Rules and Disclaimers
i. Relevant Authority
4. Prospective bidders must familiarize themselves thoroughly with
the Commission's rules relating to the paging services, contained in
title 47, parts 22 and 90 of the Code of Federal Regulations, and those
relating to application and auction procedures, contained in title 47,
part 1 of the Code of Federal Regulations.
5. Prospective bidders must also be thoroughly familiar with the
procedures, terms and conditions (collectively, ``Terms'') contained in
the Auction No. 40 Procedures Public Notice; the Auction No. 40 Comment
Public Notice; the Part 1 Fifth Report and Order, 65 FR 52323 (August
29, 2000) (as well as prior Commission proceedings regarding
competitive bidding procedures); the Paging Notice, 61 FR 6199
(February 16, 1996); the Paging First Report and Order, 61 FR 21380
(May 10, 1996); the First Paging Reconsideration Order 61 FR 34375
(July 2, 1996); the Paging Second Report and Order; the Second Paging
Reconsideration Order and Paging Third Report and Order 64 FR 33762
(June 24, 1999); and the Third Paging Reconsideration Order, 66 FR
15041 (March 15, 2001).
6. The terms contained in the Commission's rules, relevant orders,
and public notices are not negotiable. The Commission may amend or
supplement the information contained in our public notices at any time,
and will issue public notices to convey any new or supplemental
information to bidders. It is the responsibility of all prospective
bidders to remain current with all Commission rules and with all public
notices pertaining to this auction. Copies of most Commission
documents, including public notices, can be retrieved from the FCC
Internet node via anonymous ftp at ftp://fcc.gov or the FCC Auctions
World Wide Web site at http://www.fcc.gov/wtb/auctions. Additionally,
documents may be obtained for a fee, by calling the Commission's copy
contractor, International Transcription Service, Inc. (``ITS''), at
(202) 314-3070. When ordering documents from ITS, please provide the
appropriate FCC number (for example, FCC 99-98 for the Paging Third
Report and Order).
ii. Prohibition of Collusion
7. To ensure the competitiveness of the auction process, the
Commission's rules prohibit applicants for the same geographic license
area from communicating with each other during the auction about bids,
bidding strategies, or settlements. This prohibition begins at the
short-form application filing deadline and ends at the down payment
deadline after the auction. Bidders competing for licenses in the same
geographic license areas are encouraged not to use the same individual
as an authorized bidder. A violation of the anti-collusion rule could
occur if an individual acts as the authorized bidder for two or more
competing applicants, and conveys information concerning the substance
of bids or bidding strategies between the bidders he or she is
authorized to represent in the auction. Also, if the authorized bidders
are different individuals employed by the same organization (e.g., law
firm or consulting firm), a violation could similarly occur. In such a
case, at a minimum, applicants should certify on their applications
that precautionary steps have been taken to prevent communication
between authorized bidders and that applicants and their bidding agents
will comply with the anti-collusion rule. However, the Bureau cautions
that merely filing a certifying statement as part of an application
will not outweigh specific evidence that collusive behavior has
occurred, nor will it preclude the initiation of an investigation when
warranted.
8. Commission's anti-collusion rules allow applicants to form
certain agreements during the auction, provided the applicants have not
applied for licenses covering the same geographic
[[Page 21146]]
areas. Note that in Auction No. 40, applicants for licenses in
overlapping EAs and MEAs will not be able to take advantage of these
rule provisions, even though the licenses are not completely co-
extensive. However, all applicants may enter into bidding agreements
before filing FCC Form 175, as long as they disclose the existence of
the agreement(s) in their FCC Form 175. If parties agree in principle
on all material terms prior to the short-form filing deadline, those
parties must be identified on the short-form application pursuant to
Sec. 1.2105(c), even if the agreement has not been reduced to writing.
If the parties have not agreed in principle by the filing deadline, an
applicant would not include the names of those parties on its
application, and may not continue negotiations with other applicants
for licenses covering the same geographic areas. By signing their FCC
Form 175 short-form applications, applicants are certifying their
compliance with Sec. 1.2105(c) of the Commission's rules.
9. In addition, Sec. 1.65 of the Commission's rules requires an
applicant to maintain the accuracy and completeness of information
furnished in its pending application and to notify the Commission
within 30 days of any substantial change that may be of decisional
significance to that application. Thus, Sec. 1.65 requires an auction
applicant to notify the Commission of any violation of the anti-
collusion rules upon learning of such violation. Bidders therefore are
required to make such notification to the Commission immediately upon
discovery.
10. A summary listing of documents from the Commission and the
Bureau addressing the application of the anti-collusion rules may be
found in Attachment G of the Auction No. 40 Procedures Public Notice.
iii. Incumbent Licensees and Due Diligence
11. Incumbent (non-geographic) paging licensees operating under
their existing authorizations are entitled to full protection from co-
channel interference. Geographic area licensees are likewise afforded
co-channel interference protection from incumbent licensees. Adjacent
geographic area licensees are obligated to resolve possible
interference concerns of adjacent geographic area licensees by
negotiating a mutually acceptable agreement with the neighboring
geographic licensee.
12. Potential bidders are reminded that there are a number of
incumbent licensees already licensed and operating on frequencies that
will be subject to the upcoming auction. Geographic area licensees must
protect such incumbents from harmful interference. See 47 CFR
22.503(i). These limitations may restrict the ability of such
geographic area licensees to use certain portions of the
electromagnetic spectrum or provide service to certain areas in their
geographic license areas.
13. In addition, potential bidders seeking licenses for geographic
areas adjacent to the Canadian and Mexican border should be aware that
the use of some or all of the channels they acquire in the auction
could be restricted as a result of current or future agreements with
Canada or Mexico. Licensees on the lower paging channels must submit a
Form 601 to obtain authorization to operate stations north of Line A or
east of Line C because these channels are subject to the Above 30
Megacycles per Second Agreement with Industry Canada. Although the
upper paging channels do not require coordination with Canada, the
U.S.-Canada Interim Coordination Considerations for the Band 929-932
MHz, as amended assigns specific 929 and 931 MHz frequencies to the
United States for licensing along certain longitudes above Line A, and
assigns other specific 929 and 931 MHz frequencies to Canada for
licensing along certain longitudes along the U.S.-Canada border. In
addition, the 929 and 931 MHz frequencies assigned to Canada are
unavailable for use by U.S. licensees above Line A as set out in the
agreement.
14. Potential bidders should also be aware that certain
applications (including those for modification), waiver requests,
petitions to deny, petitions for reconsideration, and applications for
review are pending before the Commission that relate to particular
applicants or incumbent licensees. In addition, certain decisions
reached in the paging proceeding may be subject to judicial appeal and
may be the subject of additional reconsideration or appeal. Resolution
of these matters could have an impact on the availability of spectrum
in Auction No. 40. In addition, the Commission will continue to act on
pending applications, requests and petitions, some of these matters may
not be resolved by the time of the auction.
15. Potential bidders are solely responsible for identifying
associated risks, and investigating and evaluating the degree to which
such matters may affect their ability to bid on, otherwise acquire, or
make use of licenses available in Auction No. 40.
16. Potential bidders may obtain information about licenses
available in Auction No. 40 through the Bureau's licensing databases on
the World Wide Web at http://www.fcc.gov/wtb/uls. Potential bidders
should direct questions regarding the search capabilities to the FCC
Technical Support hotline at (202) 414-1250 (voice) or (202) 414-1255
(TTY), or via e-mail at [email protected]. The hotline is available to
assist with questions Monday through Friday, from 7 am to 10 pm ET,
Saturday, 8 am to 7 pm ET, and Sunday, 12 noon to 6 pm ET. In order to
provide better service to the public, all calls to the hotline are
recorded. The Commission makes no representations or guarantees
regarding the accuracy or completeness of information in its databases
or any third party databases, including, for example, court docketing
systems.
17. The Commission makes no representations or guarantees regarding
the accuracy or completeness of information that has been provided by
incumbent licensees and incorporated into the database. Potential
bidders are strongly encouraged to physically inspect any sites located
in, or near, the geographic area for which they plan to bid.
iv. Bidder Alerts
18. All applicants must certify on their FCC Form 175 applications
under penalty of perjury that they are legally, technically,
financially and otherwise qualified to hold a license, and not in
default on any payment for Commission licenses (including down
payments) or delinquent on any non-tax debt owed to any Federal agency.
Prospective bidders are reminded that submission of a false
certification to the Commission is a serious matter that may result in
severe penalties, including monetary forfeitures, license revocations,
exclusion from participation in future auctions, and/or criminal
prosecution.
19. The FCC makes no representations or warranties about the use of
this spectrum for particular services. Applicants should be aware that
a FCC auction represents an opportunity to become a FCC licensee in
this service, subject to certain conditions and regulations. A FCC
auction does not constitute an endorsement by the FCC of any particular
services, technologies or products, nor does a FCC license constitute a
guarantee of business success. Applicants and interested parties should
perform their own due diligence before proceeding, as they would with
any new business venture.
20. As is the case with many business investment opportunities,
some unscrupulous entrepreneurs may attempt to use Auction No. 40 to
[[Page 21147]]
deceive and defraud unsuspecting investors. Common warning signals of
fraud include the following:
The first contact is a ``cold call'' from a telemarketer,
or is made in response to an inquiry prompted by a radio or television
infomercial.
The offering materials used to invest in the venture
appear to be targeted at IRA funds, for example, by including all
documents and papers needed for the transfer of funds maintained in IRA
accounts.
The amount of investment is less than $25,000.
The sales representative makes verbal representations
that: (a) the Internal Revenue Service (``IRS''), Federal Trade
Commission (``FTC''), Securities and Exchange Commission (``SEC''),
FCC, or other government agency has approved the investment; (b) the
investment is not subject to state or federal securities laws; or (c)
the investment will yield unrealistically high short-term profits. In
addition, the offering materials often include copies of actual FCC
releases, or quotes from FCC personnel, giving the appearance of FCC
knowledge or approval of the solicitation.
21. Information about deceptive telemarketing investment schemes is
available from the FTC at (202) 326-2222 and from the SEC at (202) 942-
7040. Complaints about specific deceptive telemarketing investment
schemes should be directed to the FTC, the SEC, or the National Fraud
Information Center at (800) 876-7060. Consumers who have concerns about
specific proposals regarding Auction No. 40 may also call the FCC
Consumer Center at (888) CALL-FCC ((888) 225-5322).
v. National Environmental Policy Act (``NEPA'') Requirements
22. Licensees must comply with the Commission's rules regarding the
National Environmental Policy Act (NEPA). The construction of a
wireless antenna facility is a federal action and the licensee must
comply with the Commission's NEPA rules for each such facility. The
Commission's NEPA rules require, among other things, that the licensee
consult with expert agencies having NEPA responsibilities, including
the U.S. Fish and Wildlife Service, the State Historic Preservation
Office, the Army Corp of Engineers and the Federal Emergency Management
Agency (through the local authority with jurisdiction over
floodplains). The licensee must prepare environmental assessments for
facilities that may have a significant impact in or on wilderness
areas, wildlife preserves, threatened or endangered species or
designated critical habitats, historical or archaeological sites,
Indian religious sites, floodplains, and surface features. The licensee
must also prepare environmental assessments for facilities that include
high intensity white lights in residential neighborhoods or excessive
radio frequency emission.
A. Auction Specifics
i. Auction Date
23. The auction will begin on Tuesday, June 26, 2001. The initial
schedule for bidding will be announced by public notice at least one
week before the start of the auction. Unless otherwise announced,
bidding on all licenses will be conducted on each business day until
bidding has stopped on all licenses.
ii. Auction Title
24. Auction No. 40--Paging.
iii. Bidding Methodology
25. The bidding methodology for Auction No. 40 will be simultaneous
multiple round bidding. Bidding will be permitted only from remote
locations, either telephonically or electronically (by computer via the
Internet or the Bureau's wide area network).
iv. Pre-Auction Dates and Deadlines
26. These are important dates relating to Auction No. 40:
Auction Seminar--May 3, 2001
Short-Form Application (FCC Form 175)--May 14, 2001; 6:00 p.m. ET
Upfront Payments (via wire transfer)--June 4, 2001; 6:00 p.m. ET
Mock Auction--June 22, 2001
Auction Begins--June 26, 2001
v. Requirements For Participation
27. Those wishing to participate in the auction must:
Submit a short-form application (FCC Form 175)
electronically by 6 p.m. ET, May 14, 2001.
Submit a sufficient upfront payment and a FCC Remittance
Advice Form (FCC Form 159) by 6 p.m. ET, June 4, 2001.
Comply with all provisions outlined in the Auction No. 40
Procedures Public Notice.
vi. General Contact Information
28. The following is a list of general contact information relating
to Auction No. 40:
General Auction Information--General Auction Questions, Seminar
Registration--FCC Auctions Hotline, (888) 225-5322, Press Option #2, or
direct (717) 338-2888, Hours of service: 8 a.m.-5:30 p.m. ET
Auction Legal Information--Auction Rules, Policies, Regulations--
Auctions and Industry Analysis Division, Legal Branch (202) 418-0660
Licensing Information--Rules, Policies, Regulations, Licensing Issues,
Due Diligence, Incumbency Issues--Commercial Wireless Division, (202)
418-0620
Technical Support--Electronic Filing, Automated Auction System--FCC
Auctions Technical Support Hotline, (202) 414-1250 (Voice), (202) 414-
1255 (TTY), Hours of service: Monday through Friday 7 a.m. to 10 p.m.
ET, Saturday, 8 a.m. to 7 p.m., Sunday, 12 noon to 6 p.m.
Payment Information--Wire Transfers, Refunds--FCC Auctions Accounting
Branch, (202) 418-1995, (202) 418-2843 (Fax)
Telephonic Bidding--Will be furnished only to qualified bidders
FCC Copy Contractor--Additional Copies of Commission Documents--
International Transcription Services, Inc., 445 12th Street, SW., Room
CY-B400, Washington, DC 20554, (202) 314-3070
Press Information--Meribeth McCarrick (202) 418-0654
FCC Forms--(800) 418-3676 (outside Washington, DC), (202) 418-3676 (in
the Washington Area), http://www.fcc.gov/formpage.html
FCC Internet Sites--http://www.fcc.gov, http://www.fcc.gov/wtb/auctions
II. Short-Form (FCC Form 175) Application Requirements
29. Guidelines for completion of the short-form (FCC Form 175) are
set forth in Attachment D to the Auction No. 40 Procedures Public
Notice. The short-form application seeks the applicant's name and
address, legal classification, status, small business bidding credit
eligibility, identification of the license(s) sought, the authorized
bidders and contact persons. All applicants must certify on their FCC
Form 175 applications under penalty of perjury that they are legally,
technically, financially and otherwise qualified to hold a license and,
as discussed in section II.D (Provisions Regarding Defaulters and
Former Defaulters), that they are not in default on any payment for
Commission licenses (including down payments) or delinquent on any non-
tax debt owed to any Federal agency.
30. The Commission determines whether there are mutually exclusive
applications for any given license by reviewing all of the Form 175's
submitted to determine whether more than one party has applied for a
given
[[Page 21148]]
license. In the event that review of all the Form 175's accepted for
filing determines that only one party has applied for a given
license(s), those license(s) will be removed from the auction. In such
cases, the party that applied for the given license(s) will be
permitted to file a long-form application.
31. In Auction No. 40, Form 175 will include a mechanism that
allows an applicant to filter the 15,514 licenses by paging service,
frequency band, market area, and/or channel block/license suffix to
create customized lists of licenses. The applicant will make selections
for one or more of the filter criteria and the system will produce a
list of licenses satisfying the specified criteria. The applicant may
apply for all the licenses in the customized list by using the ``Select
All'' option; select individual licenses separately from the list; or
create a second customized list without selecting any of the licenses
from the first list. Applicants also will be able to select licenses
from one customized list and then create a second customized list to
select additional licenses.
A. Ownership Disclosure Requirements (FCC Form 175 Exhibit A)
32. All applicants must comply with the uniform Part 1, ownership
disclosure standards and provide information required by Secs. 1.2105
and 1.2112 of the Commission's rules. Specifically, in completing FCC
Form 175, applicants will be required to file an ``Exhibit A''
providing a full and complete statement of the ownership of the bidding
entity. The ownership disclosure standards for the short-form are set
forth in Sec. 1.2112 of the Commission's rules.
B. Consortia and Joint Bidding Arrangements (FCC Form 175 Exhibit B)
33. Applicants will be required to identify on their short-form
applications any parties with whom they have entered into any
consortium arrangements, joint ventures, partnerships or other
agreements or understandings which relate in any way to the licenses
being auctioned, including any agreements relating to post-auction
market structure. See 47 CFR 1.2105(a)(2)(viii) and 1.2105(c)(1).
Applicants will also be required to certify on their short-form
applications that they have not entered into any explicit or implicit
agreements, arrangements or understandings of any kind with any
parties, other than those identified, regarding the amount of their
bids, bidding strategies, or the particular licenses on which they will
or will not bid. See 47 CFR 1.2105(a)(2)(ix). As discussed, if an
applicant has had discussions, but has not reached a joint bidding
agreement by the short-form deadline, it would not include the names of
parties to the discussions on its applications and may not continue
discussions with applicants for the same geographic license area(s)
after the deadline. Where applicants have entered into consortia or
joint bidding arrangements, applicants must submit an ``Exhibit B'' to
the FCC Form 175.
34. A party holding a non-controlling, attributable interest in one
applicant will be permitted to acquire an ownership interest in, form a
consortium with, or enter into a joint bidding arrangement with other
applicants for licenses in the same geographic license area provided
that (i) the attributable interest holder certifies that it has not and
will not communicate with any party concerning the bids or bidding
strategies of more than one of the applicants in which it holds an
attributable interest, or with which it has formed a consortium or
entered into a joint bidding arrangement; and (ii) the arrangements do
not result in a change in control of any of the applicants. While the
anti-collusion rules do not prohibit non-auction related business
negotiations among auction applicants, bidders are reminded that
certain discussions or exchanges could touch upon impermissible subject
matters because they may convey pricing information and bidding
strategies.
C. Eligibility
i. Small Business Bidding Credit Eligibility (FCC Form 175 Exhibit C)
35. In the Paging Second Report and Order, the Commission adopted
small business bidding credits to promote and facilitate the
participation of small businesses in competitive bidding for licenses
in the paging service. In the Second Paging Reconsideration Order and
Paging Third Report and Order, the Commission subsequently increased
the size of the bidding credits.
36. Bidding credits are available to small businesses, or consortia
thereof, (as defined in 47 CFR 1.2110(c) and 22.217(a)). A bidding
credit represents the amount by which a bidder's winning bids are
discounted. The size of the bidding credit depends on the average
annual gross revenues for the preceding three years of the bidder, its
affiliates, its controlling interests, and the affiliates of its
controlling interests:
A bidder with attributed average annual gross revenues of
more than $3 million but not more than $15 million for the preceding
three years receives a 25 percent discount on its winning bids for
paging licenses;
A bidder with attributed average annual gross revenues of
not more than $3 million for the preceding three years receives a 35
percent discount on its winning bids for paging licenses.
37. Bidding credits are not cumulative; qualifying applicants
receive either the 25 percent or the 35 percent bidding credit, but not
both.
ii. Tribal Land Bidding Credit
38. To encourage the growth of wireless services in federally
recognized tribal lands the Commission has implemented a tribal land
bidding credit. See Part V.C.
iii. Applicability of Part 1 Attribution Rules
39. Controlling interest standard. On August 14, 2000, the
Commission released the Part 1 Fifth Report and Order, in which the
Commission, inter alia, adopted a ``controlling interest'' standard for
attributing to auction applicants the gross revenues of their investors
and affiliates in determining small business eligibility for future
auctions. The Commission observed that the rule modifications adopted
in the various part 1 orders would result in discrepancies and/or
redundancies between certain of the new part 1 rules and existing
service-specific rules, and the Commission delegated to the Bureau the
authority to make conforming edits to the Code of Federal Regulations
(CFR) consistent with the rules adopted in the prt 1 proceeding. Part 1
rules that superseded inconsistent service-specific rules will control
in Auction No. 40. Accordingly, the ``controlling interest'' standard
as set forth will be in effect for Auction No. 40, even if conforming
edits to the CFR are not made prior to the auction.
40. Control. The term ``control'' includes both de facto and de
jure control of the applicant. Typically, ownership of at least 50.1
percent of an entity's voting stock evidences de jure control. De facto
control is determined on a case-by-case basis. The following are some
common indicia of de facto control:
The entity constitutes or appoints more than 50 percent of
the board of directors or management committee;
The entity has authority to appoint, promote, demote, and
fire senior executives that control the day-to-day activities of the
licensee; or
The entity plays an integral role in management decisions.
41. Attribution for small business eligibility. In determining
which entities
[[Page 21149]]
qualify as small businesses, the Commission will consider the gross
revenues of the applicant, its affiliates, its controlling interests,
and the affiliates of its controlling interests. The Commission does
not impose specific equity requirements on controlling interest
holders. Once principals or entities with a controlling interest are
determined, only the revenues of those principals or entities, the
applicant and their affiliates will be counted in determining small
business eligibility.
42. A consortium of small businesses is a ``conglomerate
organization formed as a joint venture between or among mutually
independent business firms,'' each of which individually must satisfy
the definition of small business in Sec. 1.2110(f) and Sec. 22.223(b)
of the Commission's rules. Thus, each consortium member must disclose
its gross revenues along with those of its affiliates, its controlling
interests, and the affiliates of its controlling interests. Although
the gross revenues of the consortium members will not be aggregated for
purposes of determining eligibility for small business credits, this
information must be provided to ensure that each individual consortium
member qualifies for any bidding credit awarded to the consortium.
iv. Supporting Documentation
43. Applicants will be required to file supporting documentation to
their FCC Form 175 short-form applications to establish that they
satisfy the eligibility requirements to qualify as small businesses (or
consortia of small businesses) for this auction.
44. Submission of an FCC Form 175 application constitutes a
representation by the certifying official that he or she is an
authorized representative of the applicant, has read the form's
instructions and certifications, and that the contents of the
application and its attachments are true and correct. Submission of a
false certification to the Commission may result in penalties,
including monetary forfeitures, license forfeitures, ineligibility to
participate in future auctions, and/or criminal prosecution.
D. Provisions Regarding Defaulters and Former Defaulters (FCC Form 175
Exhibit D)
45. Each applicant must certify on its FCC Form 175 application
that it is not in default on any Commission licenses and that it is not
delinquent on any non-tax debt owed to any Federal agency. In addition,
each applicant must attach to its FCC Form 175 application a statement
made under penalty of perjury indicating whether or not the applicant
has ever been in default on any Commission licenses or has ever been
delinquent on any non-tax debt owed to any federal agency. Applicants
must include this statement as Exhibit D of the FCC Form 175. If any of
an applicant's controlling interests holders or their affiliates, as
defined by Sec. 1.2110 of the Commission's rules (as recently amended
in the Part 1 Fifth Report and Order) have ever been in default on any
Commission license or have ever been delinquent on any non-tax debt
owed to any Federal agency, the applicant must include such information
as part of the same attached statement. Prospective bidders are
reminded that the statement must be made under penalty of perjury and,
further, submission of a false certification to the Commission is a
serious matter that may result in severe penalties, including monetary
forfeitures, license revocations, exclusion from participation in
future auctions, and/or criminal prosecution.
46. ``Former defaulters''--i.e., applicants, including their
attributable interest holders, that in the past have defaulted on any
Commission licenses or been delinquent on any non-tax debt owed to any
Federal agency, but that have since remedied all such defaults and
cured all of their outstanding non-tax delinquencies--are eligible to
bid in Auction No. 40, provided that they are otherwise qualified.
However, as discussed infra in Section III.D.iii, former defaulters are
required to pay upfront payments that are fifty percent more than the
normal upfront payment amounts.
E. Installment Payments
47. Installment payment plans will not be available in Auction No.
40.
F. Other Information (FCC Form 175 Exhibits E and F)
48. Applicants owned by minorities or women, as defined in 47 CFR
1.2110(c)(2), may attach an exhibit (Exhibit E) regarding this status.
This applicant status information is collected for statistical purposes
only and assists the Commission in monitoring the participation of
``designated entities'' in its auctions. Applicants wishing to submit
additional information may do so on Exhibit F (Miscellaneous
Information) to the FCC Form 175.
G. Minor Modifications to Short-Form Applications (FCC Form 175)
49. After the short-form filing deadline (May 14, 2001), applicants
may make only minor changes to their FCC Form 175 applications.
Applicants will not be permitted to make major modifications to their
applications (e.g., change their license selections or proposed service
areas, change the certifying official or change control of the
applicant or change bidding credits). See 47 CFR 1.2105. Permissible
minor changes include, for example, deletion and addition of authorized
bidders (to a maximum of three) and revision of exhibits. Applicants
should make these changes on-line, and submit a letter to Margaret
Wiener, Chief, Auctions and Industry Analysis Division, Wireless
Telecommunications Bureau, Federal Communications Commission, 445 12th
Street, SW., Suite 4-A669, Washington, DC 20554, briefly summarizing
the changes. Questions about other changes should be directed to Erik
Salovaara of the Auctions and Industry Analysis Division at (202) 418-
0660.
H. Maintaining Current Information in Short-Form Applications (FCC Form
175)
50. Applicants have an obligation under 47 CFR 1.65, to maintain
the completeness and accuracy of information in their short-form
applications. Amendments reporting substantial changes of possible
decisional significance in information contained in FCC Form 175
applications, as defined by 47 CFR 1.2105(b)(2), will not be accepted
and may in some instances result in the dismissal of the FCC Form 175
application.
III. Pre-Auction Procedures
A. Auction Seminar
51. On Thursday, May 3, 2001, the FCC will sponsor a free seminar
for Auction No. 40 at the Federal Communications Commission, located at
445 12th Street, SW., Washington, DC. The seminar will provide
attendees with information about pre-auction procedures, conduct of the
auction, the FCC Automated Auction System, and the paging and auction
rules. The seminar will also provide an opportunity for prospective
bidders to ask questions of FCC staff.
52. To register, complete the registration form, Attachment B of
the Auction No. 40 Procedures Public Notice, and submit it by Tuesday,
May 1, 2001. Registrations are accepted on a first-come, first-served
basis.
B. Short-Form Application (FCC Form 175)--Due May 14, 2001
53. In order to be eligible to bid in this auction, applicants must
first submit a FCC Form 175 application. This application must be
submitted electronically and received at the Commission no later than 6
p.m. ET on
[[Page 21150]]
May 14, 2001. Late applications will not be accepted.
54. There is no application fee required when filing a FCC Form
175. However, to be eligible to bid, an applicant must submit an
upfront payment. See Part III.D.
i. Electronic Filing
55. Applicants must file their FCC Form 175 applications
electronically. Applications may generally be filed at any time
beginning at noon ET on May 3, 2001, until 6 p.m. ET on May 14, 2001.
Applicants are strongly encouraged to file early and are responsible
for allowing adequate time for filing their applications. Applicants
may update or amend their electronic applications multiple times until
the filing deadline on May 14, 2001.
56. Applicants must press the ``SUBMIT Application'' button on the
``Submission'' page of the electronic form to successfully submit their
FCC Form 175s. Any form that is not submitted will not be reviewed by
the FCC. Information about accessing the FCC Form 175 is included in
Attachment C of the Auction No. 40 Procedures Public Notice. Technical
support is available at (202) 414-1250 (voice) or (202) 414-1255 (text
telephone (TTY)); the hours of service Monday through Friday, from 7 am
to 10 pm ET, Saturday, 8 am to 7 pm ET, and Sunday, 12 noon to 6 pm ET.
In order to provide better service to the public, all calls to the
hotline are recorded.
57. Applicants can also contact Technical Support via e-mail. To
obtain the address, click the Support tab on the Form 175 Homepage.
iii. Completion of the FCC Form 175
58. Applicants should carefully review 47 CFR 1.2105, and must
complete all items on the FCC Form 175. Instructions for completing the
FCC Form 175 are in Attachment D of the Auction No. 40 Procedures
Public Notice. Applicants are encouraged to begin preparing the
required attachments for FCC Form 175 prior to submitting the form.
Attachments C and D to the Auction No. 40 Procedures Public Notice
provide information on the required attachments and appropriate
formats.
iv. Electronic Review of FCC Form 175
59. The FCC Form 175 electronic review system may be used to locate
and print applicants' FCC Form 175 information. Applicants may also
view other applicants' completed FCC Form 175s after the filing
deadline has passed and the FCC has issued a public notice explaining
the status of the applications. For this reason, it is important that
applicants do not include their Taxpayer Identification Numbers (TINs)
on any exhibits to their FCC Form 175 applications. There is no fee for
accessing this system. See Attachment C of the Auction No. 40
Procedures Public Notice for details on accessing the review system.
C. Application Processing and Minor Corrections
60. The FCC will process all timely submitted applications to
determine which are acceptable for filing, and subsequently will issue
a public notice identifying: (i) those applications accepted for
filing; (ii) those applications rejected; and (iii) those applications
which have minor defects that may be corrected, and the deadline for
filing such corrected applications.
61. As described more fully in the Commission's rules, after the
May 14, 2001, short-form filing deadline, applicants may make only
minor corrections to their FCC Form 175 applications. Applicants will
not be permitted to make major modifications to their applications
(e.g., change their license selections, change the certifying official,
change control of the applicant, or change bidding credit eligibility).
D. Upfront Payments--Due June 4, 2001
62. In order to be eligible to bid in the auction, applicants must
submit an upfront payment accompanied by a FCC Remittance Advice Form
(FCC Form 159). After completing the FCC Form 175, filers will have
access to an electronic version of the FCC Form 159 that can be printed
and faxed to Mellon Bank in Pittsburgh, PA. All upfront payments must
be received at Mellon Bank by 6:00 p.m. ET on June 4, 2001.
Please note that:
All payments must be made in U.S. dollars.
All payments must be made by wire transfer.
Upfront payments for Auction No. 40 go to a lockbox number
different from the lockboxes used in previous FCC auctions, and
different from the lockbox number to be used for post-auction payments.
Failure to deliver the upfront payment by the June 4,
2001, deadline will result in dismissal of the application and
disqualification from participation in the auction.
i. Making Auction Payments by Wire Transfer
63. Wire transfer payments must be received by 6 p.m. ET on June 4,
2001. To avoid untimely payments, applicants should discuss
arrangements (including bank closing schedules) with their banker
several days before they plan to make the wire transfer, and allow
sufficient time for the transfer to be initiated and completed before
the deadline. Applicants will need the following information:
ABA Routing Number: 043000261
Receiving Bank: Mellon Pittsburgh
BNF: FCC/AC 910-1174
OBI Field: (Skip one space between each information item)
``AUCTIONPAY''
TAXPAYER IDENTIFICATION NO.: (same as FCC Form 159, block 12)
PAYMENT TYPE CODE (enter ``A40U'')
FCC CODE 1 (same as FCC Form 159, block 24A: ``40'')
PAYER NAME (same as FCC Form 159, block 2)
LOCKBOX NO. #358405
Note: The BNF and Lockbox number are specific to the upfront
payments for this auction; do not use BNF or Lockbox numbers from
previous auctions.
64. Applicants must fax a completed FCC Form 159 (Revised 2/00) to
Mellon Bank at (412) 236-5702 at least one hour before placing the
order for the wire transfer (but on the same business day). On the
cover sheet of the fax, write ``Wire Transfer--Auction Payment for
Auction Event No. 40.'' Bidders should confirm receipt of their upfront
payment at Mellon Bank by contacting their sending financial
institution.
ii. FCC Form 159
65. A completed FCC Remittance Advice Form (FCC Form 159, Revised
2/00) must be faxed to Mellon Bank with each upfront payment. Proper
completion of FCC Form 159 (Revised 2/00) is critical to ensuring
correct credit of upfront payments. Detailed instructions for
completion of FCC Form 159 are included in Attachment E of the Auction
No. 40 Procedures Public Notice. An electronic version of the FCC Form
159 is available after filing the FCC Form 175. The FCC Form 159 can be
completed electronically, but must be filed with Mellon Bank via
facsimile.
iii. Amount of Upfront Payment
66. In the Part 1 Order, Memorandum Opinion and Order, and Notice
of Proposed Rule Making, the Commission delegated to the Bureau the
authority and discretion to determine appropriate upfront payment(s)
for each auction. In addition, in the Part 1 Fifth Report and Order,
the Commission ordered that ``former defaulters,'' i.e., applicants
that have ever been in default on any Commission license or have ever
been delinquent on any non-tax debt owed to
[[Page 21151]]
any Federal agency, be required to pay upfront payments fifty percent
greater than non-``former defaulters.''
67. Bidders' upfront payments will be translated to bidding units
on a bidding unit for dollar basis. In order to bid on a license,
otherwise qualified bidders who applied for that license on Form 175
must make a sufficient upfront payment to have an eligibility level
that meets or exceeds the number of bidding units assigned to that
license.
68. The bidding units for each license will equal the license's
upfront payment on a bidding unit for dollar basis. The bidding unit
level for each license will remain constant throughout the auction. The
specific upfront payments and bidding units for each license are set
forth in Attachment A of the Auction No. 40 Procedures Public Notice.
69. In calculating its upfront payment amount, an applicant should
determine the maximum number of bidding units it may wish to bid on in
any single round, and submit an upfront payment covering that number of
bidding units. In order to make this calculation, an applicant should
add together the upfront payments for all licenses on which it seeks to
bid in any given round. Bidders should check their calculations
carefully, as there is no provision for increasing a bidder's maximum
eligibility after the upfront payment deadline.
70. At a minimum, therefore, an applicant's total upfront payment
must be enough to establish eligibility to bid on at least one of the
licenses applied for on Form 175, or else the applicant will not be
eligible to participate in the auction. An applicant does not have to
make an upfront payment to cover all licenses for which the applicant
has applied on Form 175, but rather to cover the maximum number of
bidding units that are associated with licenses on which the bidder
wishes to place bids and hold high bids at any given time.
71. Former defaulters should calculate their upfront payment for
all licenses by multiplying the number of bidding units they wish to
purchase by 1.5. In order to calculate the number of bidding units to
assign to former defaulters, the Commission will divide the upfront
payment received by 1.5 and round the result up to the nearest bidding
unit. NOTE: An applicant may, on its FCC Form 175, apply for every
applicable license being offered, but its actual bidding in any round
will be limited by the bidding units reflected in its upfront payment.
iv. Applicant's Wire Transfer Information for Purposes of Refunds for
Upfront Payments
72. The Commission will use wire transfers for all Auction No. 40
refunds. To ensure that refunds of upfront payments are processed in an
expeditious manner, all pertinent information should be supplied to the
FCC. Applicants can provide the information electronically during the
initial short-form filing window after the form has been submitted.
Wire Transfer Instructions can also be manually faxed to the FCC,
Financial Operations Center, Auctions Accounting Group, ATTN: Tim Dates
or Gail Glasser, at (202) 418-2843 by June 4, 2001. All refunds will be
returned to the payer of record as identified on the FCC Form 159
unless the payer submits written authorization instructing otherwise.
For additional information, please call (202) 418-1995.
Name of Bank
ABA Number
Contact and Phone Number
Account Number to Credit
Name of Account Holder
Taxpayer Identification Number
Correspondent Bank (if applicable)
ABA Number
Account Number
(Applicants should also note that implementation of the Debt Collection
Improvement Act of 1996 requires the FCC to obtain a Taxpayer
Identification Number (TIN) before it can disburse refunds.)
Eligibility for refunds is discussed in Part V.E.
A. Auction Registration
73. Approximately ten days before the auction, the FCC will issue a
public notice announcing all qualified bidders for the auction.
Qualified bidders are those applicants whose FCC Form 175 applications
have been accepted for filing and have timely submitted upfront
payments sufficient to make them eligible to bid on at least one of the
licenses for which they applied.
74. All qualified bidders are automatically registered for the
auction. Registration materials will be distributed prior to the
auction by two separate overnight mailings, one containing the
confidential bidder identification number (BIN) required to place bids
and the other containing the SecurID cards. These mailings will be sent
only to the contact person at the contact address listed in the FCC
Form 175.
75. Applicants that do not receive both registration mailings will
not be able to submit bids. Therefore, any qualified applicant that has
not received both mailings by noon on Thursday, June 21, 2001 should
contact the Auctions Hotline at (717) 338-2888. Receipt of both
registration mailings is critical to participating in the auction and
each applicant is responsible for ensuring it has received all of the
registration material.
76. Qualified bidders should note that lost bidder identification
numbers or SecurID cards can be replaced only by appearing in person at
the FCC Auction Headquarters located at 445 12th St., SW., Washington,
DC 20554. Only an authorized representative or certifying official, as
designated on an applicant's FCC Form 175, may appear in person with
two forms of identification (one of which must be a photo
identification) in order to receive replacement codes. Qualified
bidders requiring replacements must call technical support prior to
arriving at the FCC.
F. Remote Electronic Bidding
77. This is the first auction that the Commission will conduct over
the Internet. Telephonic bidding and access via the Bureau's wide area
network will also be available, as in prior auctions. Qualified bidders
are permitted to bid telephonically or electronically, i.e., over the
Internet or the Bureau's wide area network. In either case, each bidder
must have their own Remote Security Access SecurID card, which the FCC
will provide at no charge. Each applicant will be issued at least two
SecurID cards, and up to a maximum of three cards. For security
purposes, the SecurID cards are only mailed to the contact person at
the contact address listed on the FCC Form 175. Please note that the
SecurID card is tailored to a specific auction, so a SecurID card
obtained from a source other than the FCC will not work for Auction No.
40. The telephonic bidding phone number will be supplied in the first
Federal Express mailing of the confidential bidder identification
number. Your bidding preference--electronic or telephonic--is specified
on the FCC Form 175.
G. Mock Auction
78. All qualified bidders will be eligible to participate in a mock
auction on Friday, June 22, 2001. The mock auction will enable
applicants to become familiar with the electronic system prior to the
auction. Participation by all bidders is strongly recommended. Details
will be announced by public notice.
IV. Auction Event
79. The first round of bidding for Auction No. 40 will begin on
Tuesday,
[[Page 21152]]
June 26, 2001. The initial bidding schedule will be announced in a
public notice listing the qualified bidders, which is released
approximately 10 days before the start of the auction.
A. Auction Structure
i. Simultaneous Multiple Round Auction
80. All licenses in Auction No. 40 will be awarded in a single,
simultaneous multiple round auction. Unless otherwise announced, bids
will be accepted on all licenses in each round of the auction. This
approach allows bidders to take advantage of any synergies that exist
among licenses and is administratively efficient.
ii. Maximum Eligibility and Activity Rules
81. The amount of the upfront payment submitted by a bidder will
determine the initial maximum eligibility (as measured in bidding
units) for each bidder. Upfront payments are not attributed to specific
licenses, but instead will be translated into bidding units to define a
bidder's initial maximum eligibility (see ``Amount of Upfront Payment''
in Part III.D.iii). The total upfront payment defines the maximum
number of bidding units on which the applicant will be permitted to bid
and hold high bids. As there is no provision for increasing a bidder's
maximum eligibility during the course of an auction (as described under
``Auction Stages'' in Part IV.A.iii), prospective bidders are cautioned
to calculate their upfront payments carefully. The total upfront
payment does not affect the total dollars a bidder may bid on any given
license.
82. In order to ensure that the auction closes within a reasonable
period of time, an activity rule requires bidders to bid actively
throughout the auction, rather than wait until the end before
participating. Bidders are required to be active on a specific
percentage of their current eligibility during each round of the
auction.
83. A bidder's activity level in a round is the sum of the bidding
units associated with licenses on which the bidder is active. A bidder
is considered active on a license in the current round if it is either
the high bidder at the end of the previous bidding round and does not
withdraw the high bid in the current round, or if it submits an
acceptable bid in the current round (see ``Bid Increments and Minimum
Accepted Bids'' in Part IV.B.iii). The minimum required activity level
is expressed as a percentage of the bidder's maximum bidding
eligibility, and increases by stages as the auction progresses.
iii. Auction Stages
84. Auction No. 40 will be conducted in three stages and employ an
activity rule. In each round of Stage One, a bidder desiring to
maintain its current eligibility will be required to be active on
licenses encompassing at least 80 percent of its current bidding
eligibility. In each round of Stage Two, a bidder desiring to maintain
its current eligibility will be required to be active on at least 90
percent of its current bidding eligibility. Finally, in Stage Three, in
order to maintain eligibility, a bidder will be required to be active
on 98 percent of its current bidding eligibility. The FCC reserves the
discretion to further alter the activity percentages before and/or
during the auction.
85. The procedures for each stage are:
Stage One: During the first stage of the auction, a bidder desiring
to maintain its current eligibility will be required to be active on
licenses that represent at least 80 percent of its current bidding
eligibility in each bidding round. Failure to maintain the required
activity level will result in a reduction in the bidder's bidding
eligibility in the next round of bidding (unless an activity rule
waiver is used). During Stage One, reduced eligibility for the next
round will be calculated by multiplying the bidder's current activity
(the sum of bidding units of the bidder's standing high bids and valid
bids during the current round) by five-fourths (5/4).
Stage Two: During the second stage of the auction, a bidder
desiring to maintain its current eligibility is required to be active
on 90 percent of its current bidding eligibility. Failure to maintain
the required activity level will result in a reduction in the bidder's
bidding eligibility in the next round of bidding (unless an activity
rule waiver is used). During Stage Two, reduced eligibility for the
next round will be calculated by multiplying the bidder's current
activity (the sum of bidding units of the bidder's standing high bids
and valid bids during the current round) by ten-ninths (10/9).
Stage Three: During the third stage of the auction, a bidder
desiring to maintain its current eligibility is required to be active
on 98 percent of its current bidding eligibility. Failure to maintain
the required activity level will result in a reduction in the bidder's
bidding eligibility in the next round of bidding (unless an activity
rule waiver is used). In this stage, reduced eligibility for the next
round will be calculated by multiplying the bidder's current activity
(the sum of bidding units of the bidder's standing high bids and valid
bids during the current round) by fifty-fortyninths (50/49).
Caution: Since activity requirements increase in each auction
stage, bidders must carefully check their current activity during the
bidding period of the first round following a stage transition. This is
especially critical for bidders that have standing high bids and do not
plan to submit new bids. In past auctions, some bidders have
inadvertently lost bidding eligibility or used an activity rule waiver
because they did not re-verify their activity status at stage
transitions. Bidders may check their activity against the required
minimum activity level by using the bidding system's bidding module.
iv. Stage Transitions
86. Auction No. 40 will start in Stage One and it will advance to
the next stage (i.e., from Stage One to Stage Two, and from Stage Two
to Stage Three) when, in each of three consecutive rounds of bidding,
the high bid has increased on 10 percent or less of the licenses being
auctioned (as measured in bidding units). In addition, the Bureau will
retain the discretion to regulate the pace of the auction by
announcement. This determination will be based on a variety of measures
of bidder activity, including, but not limited to, the auction activity
level, the percentages of licenses (as measured in bidding units) on
which there are new bids, the number of new bids, and the percentage
increase in revenue.
v. Activity Rule Waivers and Reducing Eligibility
87. In Auction No. 40, each bidder will be provided five activity
rule waivers that may be used in any round during the course of the
auction. Use of an activity rule waiver preserves the bidder's current
bidding eligibility despite the bidder's activity in the current round
being below the required minimum level. An activity rule waiver applies
to an entire round of bidding and not to a particular license.
88. The FCC Automated Auction System assumes that bidders with
insufficient activity prefer to use an activity rule waiver (if
available) rather than lose bidding eligibility. Therefore, the system
will automatically apply a waiver (known as an ``automatic waiver'') at
the end of any round where a bidder's activity level is below the
minimum required unless: (i) There are no activity rule waivers
available; or (ii) the bidder overrides the automatic application of a
waiver by reducing
[[Page 21153]]
eligibility, thereby meeting the minimum requirements.
89. A bidder with insufficient activity that wants to reduce its
bidding eligibility rather than use an activity rule waiver must
affirmatively override the automatic waiver mechanism during the round
by using the reduce eligibility function in the bidding system. In this
case, the bidder's eligibility is permanently reduced to bring the
bidder into compliance with the activity rules as described in
``Auction Stages'' (see Part IV.A.iii discussion). Once eligibility has
been reduced, a bidder will not be permitted to regain its lost bidding
eligibility.
90. Finally, a bidder may proactively use an activity rule waiver
as a means to keep the auction open without placing a bid. If a bidder
submits a proactive waiver (using the proactive waiver function in the
bidding system) during a round in which no bids are submitted, the
auction will remain open and the bidder's eligibility will be
preserved. However, an automatic waiver triggered during a round in
which there are no new valid bids or withdrawals will not keep the
auction open.
vi. Auction Stopping Rules
91. For Auction No. 40, the Bureau will employ a simultaneous
stopping rule. Under this rule, bidding will remain open on all
licenses until bidding stops on every license. The auction will close
for all licenses when one round passes during which no bidder submits a
new acceptable bid on any license, applies a proactive waiver, or
withdraws a previous high bid. After the first such round, bidding
closes simultaneously on all licenses.
92. The Bureau also will retain discretion to implement a modified
version of the simultaneous stopping rule. The modified version will
close the auction for all licenses after the first round in which no
bidder submits a proactive waiver, a withdrawal, or a new bid on any
license on which it is not the standing high bidder. Thus, absent any
other bidding activity, a bidder placing a new bid on a license for
which it is the standing high bidder will not keep the auction open
under this modified stopping rule.
93. The Bureau will retain discretion to keep the auction open even
if no new acceptable bids or proactive waivers are submitted and no
previous high bids are withdrawn in a round. In this event, the effect
will be the same as if a bidder had submitted a proactive waiver. Thus,
the activity rule will apply as usual, and a bidder with insufficient
activity will either lose bidding eligibility or use an activity rule
waiver (if it has any left).
94. In addition, the Bureau reserves the right to declare that the
auction will end after a designated number of additional rounds
(``special stopping rule''). If the Bureau invokes this special
stopping rule, it will accept bids in the final round(s) only for
licenses on which the high bid increased in at least one of the
preceding specified number of rounds. We proposed to exercise this
option only in circumstances such as where the auction is proceeding
very slowly, where there is minimal overall bidding activity or where
it appears likely that the auction will not close within a reasonable
period of time. Before exercising this option, the Bureau is likely to
attempt to increase the pace of the auction by, for example, moving the
auction into the next stage (where bidders will be required to maintain
a higher level of bidding activity), increasing the number of bidding
rounds per day, and/or adjusting the amount of the minimum bid
increments for the licenses.
vii. Auction Delay, Suspension, or Cancellation
95. By public notice or by announcement during the auction, the
Bureau may delay, suspend, or cancel the auction in the event of
natural disaster, technical obstacle, evidence of an auction security
breach, unlawful bidding activity, administrative or weather necessity,
or for any other reason that affects the fair and competitive conduct
of competitive bidding. In such cases, the Bureau, in its sole
discretion, may elect to resume the auction starting from the beginning
of the current round, resume the auction starting from some previous
round, or cancel the auction in its entirety. Network interruption may
cause the Bureau to delay or suspend the auction. Exercise of this
authority is solely within the discretion of the Bureau, and its use is
not intended to be a substitute for situations in which bidders may
wish to apply their activity rule waivers.
B. Bidding Procedures
i. Round Structure
96. The initial bidding schedule will be announced in the public
notice listing the qualified bidders, which will be released
approximately 10 days before the start of the auction and will be
included in the registration mailings. The round structure for each
bidding round contains a single bidding round followed by the release
of the round results. Multiple bidding rounds may be conducted in a
given day. The Bureau will consider all relevant factors, including but
not limited to the number of licenses in the auction, when determining
the number of bidding rounds per day. Details regarding round results
formats and locations will also be included in the public notice
listing qualified bidders.
97. The FCC has discretion to change the bidding schedule in order
to foster an auction pace that reasonably balances speed with the
bidders' need to study round results and adjust their bidding
strategies. The FCC may increase or decrease the amount of time for the
bidding rounds and review periods, or the number of rounds per day,
depending upon the bidding activity level and other factors.
ii. Reserve Price or Minimum Opening Bid
98. Background. The Balanced Budget Act of 1997, codified at 47
U.S.C. 309(j)(4)(f), calls upon the Commission to prescribe methods by
which a reasonable reserve price will be required or a minimum opening
bid established when FCC licenses are subject to auction unless the
Commission determines that a reserve price or minimum opening bid is
not in the public interest. Consistent with this mandate, the
Commission directed the Bureau to seek comment on the use of a minimum
opening bid and/or reserve price prior to the start of each auction.
Among other factors, the Bureau must consider the amount of spectrum
being auctioned, levels of incumbency, the availability of technology
to provide service, the size of the geographic service areas, the
extent of interference with other spectrum bands, and any other
relevant factors that could have an impact on the spectrum being
auctioned. The Commission concluded that the Bureau should have the
discretion to employ either or both of these mechanisms for future
auctions.
99. In the Auction No. 40 Comment Public Notice, the Bureau
proposed to establish minimum opening bids for Auction No. 40 and to
retain discretion to lower the minimum opening bids. Specifically, for
Auction No. 40, the Bureau proposed the following formula for minimum
opening bids:
For a license being auctioned by MEA, the minimum opening
bid will be 20% of the average gross high bid received in Auction No.
26 in the same MEA.
For a license being auctioned by EA, the minimum opening
bid will be the EA population multiplied by 20% of the gross average
dollars per population received in Auction No. 26 for the corresponding
MEA.
[[Page 21154]]
100. The Bureau will set a ``floor'' for minimum opening bids at
$1000 for licenses in the upper paging bands (929-931 MHz) and $500 for
the licenses in the lower paging bands (35-36 MHz, 43-44 MHz, 152-159
MHz, and 454-460 MHz).
101. In the alternative, the Bureau sought comment on whether,
consistent with the Balanced Budget Act, the public interest would be
served by having no minimum opening bid or reserve price.
102. All the parties filing comments and replies addressed the
minimum opening bids proposed in the Auction No. 40 Comment Public
Notice. As a preliminary matter, none of the parties contended that
having minimum opening bids in Auction No. 40 is contrary to the public
interest. Several parties expressly endorsed the use of minimum opening
bids as an effective auction tool. Accordingly, pursuant to the
Balanced Budget Act, the Bureau adopts its proposal to use minimum
opening bids in Auction No. 40.
103. All the comments and replies propose that some or all the
minimum opening bids be lower than those proposed in the Auction No. 40
Comment Public Notice. One commenter proposes that for lower paging
bands markets with a population of less than 1 million, the Bureau use
$200, rather than $500, as an absolute minimum opening bid. Another
proposes a ``floor price'' of $50, at least for licenses in the lower
paging bands. A third asserts that minimum opening bids should be set
based on the filing fee for additional site licenses under the former
licensing system. One reply comment proposes that the floor be reduced
to $200 for all licenses.
104. After reviewing the comments and replies, the Bureau has
concluded that it should adopt its original proposal and the minimum
opening bids listed in the Auction No. 40 Comment Paging Notice. The
specific minimum opening bid for each license is set forth in
Attachment A to the Auction No. 40 Procedures Public Notice. The Bureau
believes that parties unable or unwilling to make the proposed absolute
minimum opening bids most likely will be unable or unwilling to use the
licenses to provide service to the public. The commenters' observations
regarding the extent of incumbency, proposals to grant licenses based
on incumbency, and concerns about the transition from site specific
licensing to geographic area licensing, were the subject of prior rule
making proceedings and are not within the scope of auction procedures.
105. The minimum opening bids for Auction No. 40 are reducible at
the discretion of the Bureau. Such discretion will be exercised, if at
all, sparingly and early in the auction, i.e., before bidders lose all
waivers and begin to lose substantial eligibility. During the course of
the auction, the Bureau will not entertain any bidder request to reduce
the minimum opening bid on specific licenses.
iii. Bid Increments and Minimum Accepted Bids
106. In Auction No. 40, the minimum accepted bid will be set as the
minimum opening bid or the standing high bid plus a defined increment.
Bidders will be able to place any of nine higher bids, each higher bid
being equal to the minimum accepted bid plus one to nine times the
defined increment. The defined increment will be based on a percentage
of the standing high bid or, if no standing high bid had been placed,
on the minimum opening bid. At the outset of the auction, we will use
twenty percent of the standing high bid or minimum opening bid to
calculate the increment. We retain the discretion to change the
percentage used to calculate the defined increment if circumstances so
dictate and to set a floor for the increment used to calculate the
minimum acceptable bid at an absolute dollar amount.
107. Finally, in Stage III of Auction No. 40, we will have
discretion to use a smaller percentage to calculate the increment used
in setting acceptable bids higher than the minimum accepted bid. In all
other respects, such as rounding, the smaller defined increment would
be calculated in the same manner as the defined increment used to set
the minimum accepted bid. Some commenters advocated that the Bureau
should use ten percent (10%) or less should it exercise this discretion
in Stage III and use a smaller percentage to calculate acceptable bids
higher than the minimum accepted bid. We conclude that there is no need
to so restrict our discretion. Advanced notice of the Bureau's decision
to exercise its discretion with regard to acceptable bids in any manner
will be announced via the Automated Auction System.
iv. High Bids
108. An implementation of the Lecuyer pseudo-random generator will
be used to determine the standing high bidder in the case of tie high
bids. A random number will be assigned to each bid. The tie bid having
the highest random number will become the standing high bid. As noted
in the Auction No. 40 Comment Public Notice, we have adopted this
method of breaking ties for this auction because, unlike prior
auctions, bidders in Auction No. 40 will be able to bid via the
Internet. Breaking ties by reference to the timing of the bids, as in
prior auctions, is inappropriate in Auction No. 40 because bidders may
access the Internet at widely varying speeds.
v. Bidding
109. During a bidding round, a bidder may submit bids for as many
licenses as it wishes (subject to its eligibility), withdraw high bids
from previous bidding rounds, remove bids placed in the same bidding
round, or permanently reduce eligibility. Bidders also have the option
of making multiple submissions and withdrawals in each bidding round.
If a bidder submits multiple bids for a single license in the same
round, the system takes the last bid entered as that bidder's bid for
the round.
110. Please note that all bidding will take place remotely either
through the Automated Auction System or by telephonic bidding.
(Telephonic bid assistants are required to use a script when entering
bids placed by telephone. Telephonic bidders are therefore reminded to
allow sufficient time to bid by placing their calls well in advance of
the close of a round. In the past, four to five minutes have been
necessary to complete a bid submission. Due to the large number of
licenses in Auction No. 40, bidders may require more time to submit
their bids than in past auctions.) There will be no on-site bidding
during Auction No. 40.
111. A bidder's ability to bid on specific licenses in the first
round of the auction is determined by two factors: (i) the licenses
applied for on FCC Form 175 and (ii) the upfront payment amount
deposited. The bid submission screens will allow bidders to submit bids
on only those licenses for which the bidder applied on its FCC Form
175.
112. The FCC Automated Auction System requires each bidder to be
logged in during the bidding round using the bidder identification
number provided in the registration materials, and the generated
SecurID code. Bidders are strongly encouraged to print bid
confirmations after they submit their bids.
113. In each round, eligible bidders will be able to place
acceptable bids on a given license in any of ten different amounts. The
Automated Auction System interface will list as acceptable bids for
each license a minimum acceptable bid and nine higher bids. Until a bid
has been placed on a license, the minimum acceptable bid for that
license will be equal to its minimum opening bid. In the rounds after
an acceptable bid is placed on a license,
[[Page 21155]]
the minimum acceptable bid for that license will be equal to the
standing high bid plus a defined increment. (If a high bid on a license
was withdrawn, however, the Commission will specify the minimum
acceptable bid.)
114. Finally, bidders are cautioned in selecting their bid amounts
because, as explained in the following section, bidders who withdraw a
standing high bid from a previous round, even if mistakenly or
erroneously made, are subject to bid withdrawal payments.
vi. Bid Removal and Bid Withdrawal
115. Procedures. Before the close of a bidding round, a bidder has
the option of removing any bids placed in that round. By using the
``remove bid'' function in the bidding system, a bidder may effectively
``unsubmit'' any bid placed within that round. A bidder removing a bid
placed in the same round is not subject to withdrawal payments.
Removing a bid will affect a bidder's activity for the round in which
it is removed, i.e., a bid that is subsequently removed does not count
toward the bidder's activity requirement.
116. Once a round closes, a bidder may no longer remove a bid.
However, in later rounds, a bidder may withdraw standing high bids from
previous rounds using the ``withdraw bid'' function (assuming that the
bidder has not exhausted its withdrawal allowance). A high bidder that
withdraws its standing high bid from a previous round during the
auction is subject to the bid withdrawal payments specified in 47 CFR
1.2104(g).
117. In previous auctions, we have detected bidder conduct that,
arguably, may have constituted strategic bidding through the use of bid
withdrawals. While we continue to recognize the important role that bid
withdrawals play in an auction, i.e., reducing risk associated with
efforts to secure various licenses in combination, we conclude that,
for Auction No. 40, adoption of a limit on their use to two rounds is
the most appropriate outcome. By doing so we believe we strike a
reasonable compromise that will allow bidders to use withdrawals.
118. The Bureau will limit the number of rounds in which bidders
may place withdrawals to two rounds. These rounds will be at the
bidder's discretion and there will be no limit on the number of bids
that may be withdrawn in either of these rounds. Withdrawals during the
auction will still be subject to the bid withdrawal payments specified
in 47 CFR 1.2104(g). Bidders should note that abuse of the Commission's
bid withdrawal procedures could result in the denial of the ability to
bid on a market. If a high bid is withdrawn, the minimum accepted bid
in the next round will be the prior round's second highest bid price,
which may be less than, or equal to, in the case of tie bids, the
amount of the withdrawn bid. To set additional acceptable bids, the
second highest bid price also will be used in place of the standing
high bid in the formula used to calculate the increment between bids.
The Commission will serve as a ``place holder'' on the license until a
new acceptable bid is submitted on that license.
119. Calculation. Generally, the Commission imposes payments on
bidders that withdraw high bids during the course of an auction. If a
bidder withdraws its bid and there is no higher bid in the same or
subsequent auction(s), the bidder that withdrew its bid is responsible
for the difference between its withdrawn bid and the net high bid in
the same or subsequent auction(s). In the case of multiple bid
withdrawals on a single license, within the same or subsequent
auctions(s), the payment for each bid withdrawal will be calculated
based on the sequence of bid withdrawals and the amounts withdrawn. No
withdrawal payment will be assessed for a withdrawn bid if either the
subsequent winning bid or any of the intervening subsequent withdrawn
bids, in either the same or subsequent auction(s), equals or exceeds
that withdrawn bid. Thus, a bidder that withdraws a bid will not be
responsible for any withdrawal payments if there is a subsequent higher
bid in the same or subsequent auction(s). This policy allows bidders
most efficiently to allocate their resources as well as to evaluate
their bidding strategies and business plans during an auction while, at
the same time, maintaining the integrity of the auction process. The
Bureau retains the discretion to scrutinize multiple bid withdrawals on
a single license for evidence of anti-competitive strategic behavior
and take appropriate action when deemed necessary.
120. In the Part 1 Fifth Report and Order, the Commission modified
Sec. 1.2104(g)(1) of the Commission's rules regarding assessments of
interim bid withdrawal payments. As amended, Sec. 1.2104(g)(1) provides
that in instances in which bids have been withdrawn on a license that
is not won in the same auction, the Commission will assess an interim
withdrawal payment equal to 3 percent of the amount of the withdrawn
bids. The 3 percent interim payment will be applied toward any final
bid withdrawal payment that will be assessed after subsequent auction
of the license. Assessing an interim bid withdrawal payment ensures
that the Commission receives a minimal withdrawal payment pending
assessment of any final withdrawal payment. The Part 1 Fifth Report and
Order provides specific examples showing application of the bid
withdrawal payment rule.
vii. Round Results
121. Information relating to the bids during Auction No. 40 will be
disclosed after each round of bidding closes, including all bids and
withdrawals placed in each round, the identity of the bidder placing
each bid or withdrawal, and the net and gross amounts of each bid or
withdrawal.
122. Bids placed during a round will not be published until the
conclusion of that bidding period. After a round closes the Bureau will
post the results of the round for public access. Reports reflecting
bidders' identities and bidder identification numbers for Auction No.
40 will be available before and during the auction. Thus, bidders will
know in advance of this auction the identities of the bidders against
which they are bidding.
viii. Auction Announcements
123. The FCC will use auction announcements to announce items such
as schedule changes and stage transitions. All FCC auction
announcements will be available by clicking a link on the FCC Automated
Auction System.
ix. Maintaining the Accuracy of FCC Form 175 Information
124. As noted in Part II.G., after the short-form filing deadline,
applicants may make only minor changes to their FCC Form 175
applications. For example, permissible minor changes include deletion
and addition of authorized bidders (to a maximum of three) and certain
revision of exhibits. Filers must make these changes on-line, and
submit a letter summarizing the changes to: Margaret Wiener, Chief,
Auctions and Industry Analysis Division, Wireless Telecommunications
Bureau, Federal Communications Commission, 445 12th Street, SW., Room
4-A669, Washington, DC 20554.
125. A separate copy of the letter should be mailed to Erik
Salovaara, Auctions and Industry Analysis Division, Wireless
Telecommunications Bureau, Federal Communications Commission, 445 12th
Street, SW., Room 4-B457, Washington, DC 20554. Questions about other
changes should
[[Page 21156]]
be directed to Erik Salovaara at (202) 418-0660.
V. Post-Auction Procedures
A. Down Payments and Withdrawn Bid Payments
126. After bidding has ended, the Commission will issue a public
notice declaring the auction closed, identifying winning bidders, down
payments and any withdrawn bid payments due.
127. Within ten business days after release of the auction closing
notice, each winning bidder must submit sufficient funds (in addition
to its upfront payment) to bring its total amount of money on deposit
with the Government to 20 percent of its net winning bids (actual bids
less any applicable small business bidding credits). See 47 CFR
1.2107(b). In addition, by the same deadline all bidders must pay any
bid withdrawal payments due under 47 CFR 1.2104(g), as discussed in
``Bid Removal and Bid Withdrawal,'' Part IV.B.vi. (Payments are applied
first to satisfy any withdrawn bid liability, before being applied
toward down payments.)
B. Long-Form Application
128. Within ten business days after release of the auction closing
notice, winning bidders must electronically submit a properly completed
long-form application (FCC Form 601) and required exhibits for each
license won through Auction No. 40. Winning bidders that are small
businesses must include an exhibit demonstrating their eligibility for
small business bidding credits. See 47 CFR 1.2112(b), 24.709(c)(2)(i).
Further filing instructions will be provided to auction winners at the
close of the auction.
C. Tribal Land Bidding Credit
129. A winning bidder that intends to use its license(s) to deploy
facilities and provide services to federally-recognized tribal lands
that are unserved by any telecommunications carrier or that have a
telephone service penetration rate equal to or below 70 percent is
eligible to receive a tribal land bidding credit as set forth in 47 CFR
1.2107 and 1.2110(e). A tribal land bidding credit is in addition to,
and separate from, any other bidding credit for which a winning bidder
may qualify.
130. Unlike other bidding credits that are requested prior to the
auction, a winning bidder applies for the tribal land bidding credit
after winning the auction when it files its long-form application (FCC
Form 601). When filing the long-form application, the winning bidder
will be required to advise the Commission whether it intends to seek a
tribal land bidding credit, for each market won in the auction, by
checking the designated box(es). After stating its intent to seek a
tribal land bidding credit, the applicant will have 90 days from the
close of the long-form filing window to amend its application to select
the specific tribal lands to be served and provide the required tribal
government certifications. Licensees receiving a tribal land bidding
credit are subject to performance criteria as set forth in 47 CFR
1.2110(e).
131. For additional information on the tribal land bidding credit,
including how the amount of the credit is calculated, applicants should
review the Commission's rule making proceeding regarding tribal land
bidding credits and related public notices. Relevant documents can be
viewed on the Commission's web site by going to http://www.fcc.gov/wtb/auctions and clicking on Information on Tribal Land Bidding Credits.
D. Default and Disqualification
132. Any high bidder that defaults or is disqualified after the
close of the auction (i.e., fails to remit the required down payment
within the prescribed period of time, fails to submit a timely long-
form application, fails to make full payment, or is otherwise
disqualified) will be subject to the payments described in 47 CFR
1.2104(g)(2). In such event the Commission may re-auction spectrum
associated with the license or offer it to the next highest bidder (in
descending order) at their final bid. See 47 CFR 1.2109(b) and (c). In
addition, if a default or disqualification involves gross misconduct,
misrepresentation, or bad faith by an applicant, the Commission may
declare the applicant and its principals ineligible to bid in future
auctions, and may take any other action that it deems necessary,
including institution of proceedings to revoke any existing licenses
held by the applicant. See 47 CFR 1.2109(d).
E. Refund of Remaining Upfront Payment Balance
133. All applicants that submitted upfront payments but were not
winning bidders for a license in Auction No. 40 may be entitled to a
refund of their remaining upfront payment balance after the conclusion
of the auction. No refund will be made unless there are excess funds on
deposit from that applicant after any applicable bid withdrawal
payments have been paid.
134. Qualified bidders that have exhausted all of their activity
rule waivers, have no remaining bidding eligibility, and have not
withdrawn a high bid during the auction must submit a written refund
request. If you have completed the refund instructions electronically,
then only a written request for the refund is necessary. If not, the
request must also include wire transfer instructions and a Taxpayer
Identification Number (TIN). Send refund request to: Federal
Communications Commission, Financial Operations Center, Auctions
Accounting Group, Shirley Hanberry, 445 12th Street, SW., Room 1-A824,
Washington, DC 20554.
135. Bidders are encouraged to file their refund information
electronically using the refund information portion of the FCC Form
175, but bidders can also fax their information to the Auctions
Accounting Group at (202) 418-2843. Once the information has been
approved, a refund will be sent to the party identified in the refund
information. NOTE: Refund processing generally takes up to two weeks to
complete. Bidders with questions about refunds should contact Tim Dates
or Gail Glasser at (202) 418-1995.
Federal Communications Commission.
Margaret Wiener,
Chief, Auctions and Industry Analysis Division, WTB.
[FR Doc. 01-10492 Filed 4-26-01; 8:45 am]
BILLING CODE 6712-01-P