[Federal Register Volume 62, Number 53 (Wednesday, March 19, 1997)]
[Notices]
[Pages 13009-13019]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6832]
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FEDERAL COMMUNICATIONS COMMISSION
[DA 97-477; Report No. AUC 97-01]
Auction of Satellite Digital Audio Radio Service; Auction Notice
and Filing Requirements For 2 DARS Licenses Scheduled for April 1, 1997
AGENCY: Federal Communications Commission.
ACTION: Notice.
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SUMMARY: The Wireless Telecommunications Bureau announced the
application procedures for the upcoming DARS auction (Auction #15) in a
Public Notice dated March 6, 1997. The auction is scheduled to begin on
April 1, 1997 and will consist of two nationwide licenses. The purpose
and intent of the notice is to inform the general public and the four
DARS applicants of the auction procedures the Commission will utilize
in Auction #15 and the filing requirements to become an eligible
bidder.
FOR FURTHER INFORMATION CONTACT: Amy Zoslov, Christina Clearwater, or
Ruby Hough, Wireless Telecommunications Bureau, at (202) 418-0660, or
Rosalee Chiara, at (202) 418-0754, or Ron Repasi, at (202) 418-0768, of
the International Bureau.
SUPPLEMENTARY INFORMATION:
1. Auction Date: 9 a.m., Eastern Time, April 1, 1997. The precise
schedule for bidding will be announced by Public Notice prior to the
start of the auction.
2. Auction Methodology: Simultaneous multiple round auction.
Bidding will be permitted only at the FCC Auction site, 2 Massachusetts
Avenue, NE., Washington, DC. (adjacent to Union Station; entrance on
North Capitol Street). Telephonic bids and electronic bids from remote
locations will not be accepted.
3. Licenses to be Auctioned: Two nationwide licenses will be
auctioned in the satellite Digital Audio Radio Service (``DARS'').
Licenses will authorize service on 12.5 MHz of spectrum over the
continental United States located in the S-band of 2320-2354 MHz.
------------------------------------------------------------------------
License No. Spectrum authorized
------------------------------------------------------------------------
EBN001............................... 2320-2332.5 MHz
EBN002............................... 2332.5-2345 MHz
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In addition to the Supplemental Information described below,
applicants must indicate to the FCC the license(s) on which they intend
to bid.
4. Closed Auction: Participation in this auction will be limited to
the following four entities: American Mobile Radio Corporation, Digital
Satellite Broadcasting Corporation, Primosphere Limited Partnership,
and Satellite CD Radio, Inc.
5. Pre-Auction Deadlines:
*Supplemental Information
5:30 p.m., ET, on the fifth day from publication of the DARS rules
in the Federal Register. This day will be specified in a subsequent
Public Notice.
*Upfront Payment of $3 million (by Wire Transfer)
3 p.m., ET, Fri., March 28, 1997
*Auction Registration
2 p.m.-3 p.m., ET, March 31, 1997
*Mock Auction
3 p.m.-5 p.m., ET, March 31, 1997
6. Prohibition of Collusion: To ensure the competitiveness of the
auction process, the FCC's rules prohibit all applicants from
communicating with each other during the auction about bids, bidding
strategies, or settlements. This prohibition begins with the filing
deadline of the Supplemental Information and ends when bidders submit
down payments.
7. Telephone Contacts:
FCC Technical Support Hotline: (202) 414-1250
Wireless Bureau--Auctions Division
--Amy Zoslov: (202) 418-0660
--Ruby Hough: (202) 418-0660
--Christina Clearwater: (202) 418-0660
International Bureau
--Rosalee Chiara: (202) 418-0754
--Ron Repasi: (202) 418-0768
8. List of Attachments:
Attachment A:
Federal Communications Commission DARS Licenses Auction; Auction
Specific Instructions, FCC Remittance Advice, FCC Form 159
Attachment B:
FCC Remittance Advice (FCC Form 159) and Instructions for Using FCC
Form 159 (Remittance Advice)
I. Introduction
9. Those wishing to participate in the DARS auction must submit
certain supplemental information (''Supplemental Information'') in
accordance with the Commission's rules and the instructions in this
Public Notice. The FCC will not issue a Bidder Information Package for
this auction. All information necessary to participate in this auction
will be available through this Public Notice, subsequent Public
Notices, or the Commission's Rules. See 47 CFR Sec. 1.2101-1.2103,
1.2104(a) through (f), (h) and (i), and 25.401-25.406; Establishment of
Rules and Policies for the Digital Audio Radio Satellite Service in the
2310-2360 MHz Frequency Band, Report and Order, Memorandum Opinion and
Order, and Further Notice of Proposed Rulemaking, FCC 97-70 (released
March 3, 1997) (''DARS Report and Order'').
10. The Supplemental Information must be received no later than
5:30 p.m. Eastern Time on the fifth day from the publication of the
DARS rules in the Federal Register. This date will be specified in a
subsequent Public Notice. Applicants for the DARS auction must file
their Supplemental Information manually pursuant to the instructions
set forth in this Public Notice.
11. Applicants will be required to submit an upfront payment (in
U.S. dollars) to be eligible to participate in the auction. The upfront
payment shall be made by wire transfer and must be received by 3 p.m.
Eastern Time on March 28, 1997, at the Mellon Bank in Pittsburgh,
Pennsylvania.
12. Prospective bidders must familiarize themselves thoroughly with
the procedures, terms and conditions contained in this Public Notice.
The rules contained in the DARS Report and Order in IB Docket No. 95-91
and GEN Docket No. 90-357, FCC 97-70 (released March 3, 1997), this
Public Notice, and subsequent Public Notices are not negotiable.
Prospective bidders should review these auction documents thoroughly
prior to the auction to make certain that they understand all of the
provisions and are willing to be bound by all of the terms before
participating in the auction.
13. The information contained in this Public Notice may be
subsequently amended or supplemented by the FCC or the Wireless
Telecommunications Bureau at any time. The Wireless Telecommunications
Bureau will issue Public Notices to convey new or supplemental
information to prospective bidders. It is the responsibility of all
prospective bidders to remain fully informed regarding all FCC rules
and Public Notices pertaining to this auction. FCC Public Notices and
other FCC documents may be obtained for a fee by calling the FCC
duplication contractor, International Transcription Services, Inc., at
(202) 857-3800. Additionally, prospective bidders may retrieve some of
these documents from the FCC Internet site using ftp to connect as
[email protected], or via the world wide web at www.fcc.gov.
[[Page 13010]]
II. Bidder Eligibility and Pre-Auction Procedures
14. In order to be eligible to bid in the DARS auction, bidders
must: (1) Satisfy the Commission's eligibility requirements, (2) submit
the Supplemental Information, and (3) remit an upfront payment in
compliance with applicable FCC rules and regulations.
A. Eligibility Requirements
15. Eligibility to participate in this auction is reserved for
those four parties who filed DARS applications by the December 15, 1992
cut-off date. They are as follows:
1. American Mobile Radio Corporation
2. Digital Satellite Broadcasting Corporation
3. Primosphere Limited Partnership
4. Satellite CD Radio, Inc.
16. Bidders may win only one license, and as such will be permitted
to be active on only one license at a time. However, bidders will be
permitted to bid on either license during the course of the auction
provided they indicate this intention in their Supplemental Information
(see below).
B. Supplemental Information
17. In order to be eligible to bid, applicants must submit
Supplemental Information to the Commission. For this auction, the
Supplemental Information will replace the FCC Form 175 that the FCC has
used in previous auctions. This information must be received by the FCC
no later than 5:30 p.m. Eastern Time on the fifth day from the
publication of the DARS rules in the Federal Register. This date will
be specified in a subsequent Public Notice. Late Supplemental
Information will not be accepted. This supplemental information must be
submitted by hand delivery, by certified U.S. mail, or by private
courier. Electronic submissions will not be accepted. Applicants should
carefully review 47 CFR 1.2101-1.2103, 1.2104(a) through (f), (h) and
(i), and 25.401-25.406 of the Commission's rules before submitting the
Supplemental Information.
Required Supplemental Information
18. Because the FCC Form 175 is not required, bidders must submit
the following supplemental information in printed form:
a. Applicant Name.
b. Mailing Address: Give a street address (not a Post Office box
number) for the applicant, suitable for mail or private parcel
delivery. The FCC will send all registration materials and other
written communications to the contact person (specified in item j.
below) at this address.
c. City.
d. State.
e. Zip Code.
f. Auction Number 15.
g. FCC Account Number: Applicants must create a ten-digit FCC
Account Number, which the Commission will use to identify and track
applicants:
*A bidder that has a taxpayer identification number (TIN) must
create this FCC account number by using its TIN, plus the prefix of
``0'' (i.e., 0123456789). A TIN is either the Employer Identification
Number (EIN) in the case of a business, or the Social Security Account
Number (SSAN) in the case of an individual.
If--and only if--an applicant does not have a taxpayer
identification number, the applicant should use its ten-digit area code
and telephone number (i.e., 2025551234) on an interim basis. However,
the FCC must have a TIN before it will be able to issue a license or
refund upfront payments.
Each applicant must include its FCC Account Number when submitting
amendments, additional information, or other correspondence or
inquiries regarding its application, and must include this same number
on each FCC Form 159 (FCC Remittance Advice) accompanying required
auction deposits or payments.
h. Authorized Bidder(s): Applicants must list the name(s) of the
person(s) (no more than three) authorized to represent them at the
auction. Only those individuals listed on the Supplemental Information
filing will be authorized to place or withdraw bids for the applicant
during the auction.
i. Name and Title of Person Certifying: Applicants should carefully
read the following list of certifications. These certifications help to
ensure a fair and competitive auction and require, among other things,
disclosure to the Commission of certain information on applicant
ownership and agreements or arrangements concerning the auction. The
applicant must indicate the name and title of the certifying official.
Submission of the Supplemental Information constitutes a representation
by the certifying official that he or she is an authorized
representative of the applicant, has read this Public Notice's
instructions and certifications, and that the contents of the
Supplemental Information 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. Applicants must certify the following:
(a) The applicant is legally, technically, financially and
otherwise qualified pursuant to 308(b) of the Communications Act and
the Commission's rules and, to the extent that it applies, is in
compliance with the foreign ownership provisions contained in section
310 of the Communications Act;
(b) The applicant is the real party-in-interest in this application
and that there are no agreements or understandings other than those
specified in the Supplemental Information, which provide that someone
other than the applicant shall have an interest in the license;
(c) The applicant is aware that, if upon Commission inspection,
this Supplemental Information is shown to be defective, the application
may be dismissed without further consideration, and certain fees
forfeited. Other penalties may also apply;
(d) The applicant, upon the deadline for filing the Supplemental
Information, will not cooperate, collaborate, discuss, or disclose in
any manner the substance of its bids or bidding strategies, or discuss
or negotiate settlement agreements with other applicants until after
the high bidder makes the required down payment;
(e) The applicant, or any party to this Supplemental Information,
is not subject to a denial of federal benefits pursuant to Section 5301
of the Anti-Drug Abuse Act of 1988; and
(f) The applicant is and will, during the pendency of its
application and Supplemental Information, remain in compliance with any
service-specific qualifications applicable to the license on which the
applicant intends to bid including, but not limited to, financial
qualifications.
(g) The applicant is not in default on any Commission
authorizations and it is not delinquent on any extension of credit from
any federal agency.
j. Contact Person: If the Commission wishes to communicate with the
applicant by telephone or fax, those communications will be directed to
the contact person identified on the Supplemental Information. Please
provide a telephone number, fax number, and e-mail address (if
available). All written communications and registration information
will be directed to the applicant's contact person at the address
specified on the Supplemental Information. Applicants must provide a
street address; no Post Office Box addresses may be used.
k. Signature and Date: The Supplemental Information must bear an
original signature of the certifying official. Absence of an original
signature
[[Page 13011]]
will result in dismissal of the application and disqualification from
participation in the auction.
In addition to this Supplemental Information,
applicants must indicate the license(s) on which they intend to bid
(i.e., EBN001 and/or EBN002).
After the submission deadline for the supplemental information, the
Commission will issue a Public Notice which will identify qualified and
non-qualified applicants and the licenses for which each qualified
applicant has applied. All applications are still subject to FCC
approval.
C. Filing of Supplemental Information
19. Auction applicants must file their Supplemental Information in
hard copy. Whether the Supplemental Information is mailed, hand
delivered or sent by private courier, it must be sent to:
Office of the Secretary, Attn: Auction 15 Supplemental Information
Processing, Federal Communications Commission, 1919 M Street, NW., Room
222, Washington, DC 20554
20. Failure to sign Supplemental Information will result in
dismissal of the application and inability to participate in the
auction. Only original signatures will be accepted.
D. Application Fee
21. There is no application fee required when filing Supplemental
Information. However, to be eligible to bid, an applicant must submit
an upfront payment. See Section E below.
E. Upfront Payments
22. In order to be eligible to bid in the auction, applicants must
submit an upfront payment together with an FCC Remittance Advice Form
(FCC Form 159) to Mellon Bank.
23. All payments must be made in U.S. dollars and must be in the
form of a wire transfer. Payments must be received by 3:00 p.m. Eastern
Time, Friday, March 28, 1997. Failure to deliver the upfront payment in
a timely manner will result in dismissal of the application and
inability to participate in the auction.
(1) Amount of Upfront Payments
24. The upfront payment required to participate in the auction is
$3 million. This fully qualifies bidders to participate on either
license. See DARS Report and Order.
(2) Making Auction Payments by Wire Transfer
25. To make an auction payment by wire transfer, an applicant must
fax a completed FCC Remittance Advice Form (FCC Form 159) to Mellon
Bank at (412) 236-5702 at least one hour prior to placing the order for
the wire transfer (but on the same business day). On the cover sheet of
the fax, the applicant should write ``Wire Transfer--Auction Payment
for Auction Event #15''. To submit funds by wire transfer, you will
need the following information:
ABA Routing Number: 043000261
Receiving Bank: Mellon Pittsburgh
BNF: FCC/AC--910-0198
OBI Field: (Skip one space between each information item)
``AUCTIONPAY''
FCC ACCOUNT NO. (SAME AS ITEM (g) ON SUPPLEMENTAL INFORMATION)
PAYMENT TYPE CODE (ADAU)
FCC CODE (``15'' INDICATING AUCTION 15)
PAYOR NAME (SAME AS ITEM (a) ON SUPPLEMENTAL INFORMATION)
LOCKBOX NO. 358410
26. Given the abbreviated time period in which the Wireless
Telecommunications Bureau must confirm receipt of upfront payments, the
Bureau will require applicants to bring to the registration a wire
transfer confirmation receipt from their bank certifying that the
upfront payment funds have been transferred to the FCC account. This
confirmation will serve as a reserve method to confirm that the
required funds have been transferred to the FCC if there is any delay
in obtaining electronic confirmation.
27. Detailed directions for completing the FCC Form 159 and a
sample form are attached to this Public Notice.
III. Registration for the Auction
28. Only qualified applicants who have submitted timely upfront
payments will be permitted to register for the auction. Registration
will occur on March 31, 1997, from 2 p.m. ET to 3 p.m. ET at the FCC
auction site. At least one authorized representative as stated in the
applicant's Supplemental Information must register. This representative
must have two forms of identification, one of which must be a photo
identification. At the end of the registration process, bidders will be
in possession of the following information:
FCC Account Number (self-assigned in the Supplemental
Information)
Bidder Identification Number
Login Name
Login Password
29. All applicants will be pre-registered prior to the auction
event.
30. Qualified bidders must be aware that lost login codes,
passwords or bidder identification numbers can be replaced and/or
distributed only at the FCC auction site located at 2 Massachusetts
Avenue, NE, Washington, DC 20002. Please be advised that an authorized
representative or certifying official, as designated on an applicant's
Supplemental Information, must appear in person at the auction site
with two forms of identification (one of which must be a photo
identification) in order to receive replacement codes.
31. The FCC will allow qualified bidders an opportunity to use the
bidding software following registration on March 31, 1997 from 3 p.m.
ET to 5 p.m. ET. Specific instructions for the mock auction will be
provided at registration.
IV. Auction Event and Bidding Rounds
32. The DARS auction will begin at 9 a.m. Eastern Time on Tuesday,
April 1, 1997. Initially, bidding rounds are expected to last 30
minutes to allow bidders to become familiar with the bid submission
process. The FCC expects the length of the bidding rounds to decrease
as the auction progresses. The Commission will adjust the pace of the
auction based on its monitoring of the bidding and assessment of
auction progress. The precise schedule for bidding will be included in
the registration package.
V. Auction Procedures
33. The two DARS licenses will be auctioned simultaneously. The
high bid amount will be posted after the end of the bidding period.
Information regarding all valid bids submitted in each round also will
be posted.
A. Bid Submission and Withdrawal Procedures
(1) Bid Submission
34. Bidders must place their bids electronically at the FCC auction
site. Each bidder will be required to log in to the FCC auction
computer system, using a login name and login password unique to that
bidder, and in addition must provide its Bidder Identification Number
and FCC Account Number in order to place or withdraw a bid.
35. All accepted bids and the minimum valid bid amount for the next
round will be announced after the conclusion of each bidding period.
Bidders may receive a hard copy bid confirmation after they have
submitted their bids by pressing the Print Bid Verification button on
the Options screen.
36. Bidders will have the option of making multiple submissions in
each bidding period. This is a change in the procedures from previous
auctions. If a bidder enters multiple bids for a license
[[Page 13012]]
in the same round, the system takes the last bid entered as that
bidder's bid for the round. A bidder changing or removing a bid placed
in the same round is not subject to bid withdrawal payments.
37. Only persons authorized in the applicant's Supplemental
Information to make or withdraw a bid will be allowed to enter the
bidding booth. Each authorized representative will be required to show
photo identification to enter the bidding booth.
(2) Bid Withdrawals
38. A high bidder that withdraws its standing high bid is subject
to the bid withdrawal payment specified in Sec. 1.2104(g)(1) of the
Commission's rules. Bid withdrawal will be permitted only after a round
in which there have been no new bids or proactive waivers. After a
round with no new bids or proactive waivers, the Commission will
specify a bid withdrawal period. If one or both of the standing high
bids from a previous round are withdrawn, the Commission will reoffer
the license or licenses in the next round. To prevent multiple
withdrawals by the same party in the same auction, the Commission will
bar a bidder who withdraws a bid from continued participation in that
auction.
39. The offer price for a withdrawn license will be the highest
price at or above which bids were made by four distinct bidders in any
previous round and on any license. If there is no price at or above
which bids were made in previous rounds by four bidders, then the
Commission will reoffer the license in the next round at the minimum
opening bid for the license. The Commission may at its discretion
reduce the offering price in subsequent rounds if it receives no bids
at this price. Prior to restarting the auction, the Commission will
also restore the eligibility of all bidders who have not withdrawn. If
eligibility is not restored, it is possible, given the activity rules,
that no bidders would be eligible to bid when a license is reoffered
after a bid withdrawal. Restoring eligibility of all but those who
withdrew will ensure the maximum number of sincere bidders for the
license when the auction is restarted. After a withdrawal, the
Commission will also issue each eligible bidder one activity rule
waiver in addition to any remaining waivers, subject to a maximum of
three, to provide additional time for bid preparation and to avoid
accidental disqualification.
B. Minimum Opening Bid, Bid Increments, and Tie Bids
(1) Minimum Opening Bid
40. The FCC believes that it is useful to have a minimum opening
bid to help move the auction along. Therefore, the Commission has
established a minimum opening bid of $8 million each for these
licenses. Based on our observations of the market, the FCC believes
this minimum opening bid is high enough to move the auction along at a
rapid pace, but significantly below the expected final bid for the
spectrum. See DARS Report and Order, para. 159.
(2) Bid Increments
41. The minimum bid increment is the amount or percentage by which
a bid must be raised above the previous high bid in order to be
accepted as a valid bid in the current round. The amount of the minimum
valid bid for each license (generally, the sum of the minimum bid
increment and the high bid from the previous round) will be announced
at the beginning of each round. See 47 CFR 25.402.
42. Once a bid has been received for a license, the minimum bid
increment will be ten (10) percent of the previous high bid on that
license. The Commission retains the discretion to establish, raise and
lower minimum bid increments in the course of the auction. This
discretion is necessary to ensure that the Commission can efficiently
control the pace of the auction.
(3) Tie Bids
43. Each bid will be date and time stamped when it is entered into
the computer system. In the event of tie bids, the Wireless
Telecommunications Bureau will identify the high bidder on the basis of
the order in which bids are received, starting with the earliest bid.
See 47 CFR 25.402.
C. Activity Rules
44. In order to ensure that the auction closes within a reasonable
period of time, the Commission will impose an activity rule to
discourage bidders from waiting until the end of the auction before
participating. See generally 47 CFR 25.402.
(1) Activity Requirements
45. Bidders must be active on one license in each round of the
auction or use an activity rule waiver, as defined below. Bidders will
not be permitted to be active on more than one license in a single
round. To be active in the current round, a bidder must submit a valid
bid in the current round or have the high bid from the previous round.
A bidder who is not active in a round and has no remaining activity
rule waivers will no longer be eligible to bid on the licenses being
auctioned. However, as discussed above, in the event of a bid
withdrawal, the eligibility of all bidders who have not withdrawn will
be restored.
(2) Activity Rule Waivers
46. Bidders will be provided three activity rule waivers that may
be used in any round during the course of the auction. A waiver will
preserve eligibility in the next round. Waivers may be applied
automatically by the Commission or invoked proactively by bidders. If a
bidder is not active in a round, a waiver will be applied automatically
if any waivers remain. An automatic waiver applied in a round in which
there are no new valid bids will not keep the auction open. A proactive
activity rule waiver is a waiver invoked by a bidder during the bidding
period. If a bidder submits a proactive waiver in a round in which no
other bidding activity occurs, the auction will remain open. Therefore,
if a bidder does not intend to bid but wants to ensure that the auction
does not close, it should enter a proactive waiver in place of a bid.
47. The Commission retains the discretion to issue additional
waivers during the course of the auction for circumstances beyond a
bidder's control or in the event of a bid withdrawal, as discussed
above.
D. Stopping Rules
48. A stopping rule specifies when an auction is over. The auction
will close after one round passes in which no new valid bids or
proactive waivers are submitted on both licenses, subject to the
following two qualifications. First, if a high bidder withdraws its bid
during the bid withdrawal period the Commission will reoffer the
license in the next round as specified in Section A.2 above. Second,
the Commission retains the discretion to keep an auction open even if
no new valid bids and no proactive waivers are submitted. In the event
that the Commission exercises this discretion, the effect will be the
same as if a bidder had submitted a proactive waiver. See
Implementation of Section 309(j) of the Communications Act--Competitive
Bidding, Second Report and Order, 59 FR 22980 (May 4, 1994).
VI. Delay, Suspension or Cancellation of the Auction
49. The Commission may, by Public Notice or by announcement during
the auction, delay, suspend or cancel the auction in the event of
natural disaster,
[[Page 13013]]
technical obstacle, evidence of auction security breach, unlawful
bidding activity, administrative necessity, or for any other reason
that affects the fair and competitive conduct of competitive bidding.
In such cases, the Commission may, in its sole discretion, resume the
auction starting from the beginning of the current or some previous
round or cancel the auction in its entirety.
VII. Default and Disqualification Payments
50. A default payment will be assessed if a winning bidder fails to
pay the full amount of its 20 percent down payment or the balance of
its winning bid in a timely manner, or is disqualified after the close
of an auction. The amount of this default payment will be equal to the
difference between the defaulting auction winner's ``winning'' bid and
the amount of the winning bid the next time the license is offered for
auction by the Commission, if the latter bid is lower. In addition, the
defaulting auction winner will be required to submit a payment of three
percent of the subsequent winning bid or three percent of its own
``winning'' bid, whichever is less. See 47 CFR 25.406. In the event
that the amount of those payments cannot be determined (i.e., until the
license has been reauctioned), the FCC can require a ``deposit'' of at
least three (3) percent, and at most twenty (20) percent, of the
defaulted bid amount. See In Re C. H. PCS, Inc., BTA No. B347 Frequency
Block C, Order, DA 96-1825 (released November 4, 1996). See also
Wireless Telecommunications Will Strictly Enforce Default Payment
Rules, Public Notice, 61 FR 16914 (April 18, 1996).
51. If withdrawal, default or disqualification involves gross
misconduct, misrepresentation or bad faith by an applicant, the
Commission retains the option to declare the applicant and its
principals ineligible to bid in future auctions, or take any other
actions the Commission deems necessary, including institution of
proceedings to revoke any existing licenses held by the applicant. See
Implementation of section 309(j) of the Communications Act--Competitive
Bidding, Second Report and Order.
VIII. Releasing Bidder Identities
52. Bidders' identities and FCC account numbers will be disclosed
prior to the auction. Thus, bidders will know in advance of the auction
the identities of the bidders against whom they are bidding.
IX. Collusion
53. To prevent collusion, Sec. 25.405 of the Commission's rules
prohibits applicants, after the deadline for filing Supplemental
Information and before down payments are submitted, from cooperating,
collaborating, discussing, or disclosing in any manner the substance of
their bids or bidding strategies, or discussing or negotiating
settlement agreements with other applicants. See 47 CFR 25.405.
X. Post-Auction Procedures
A. Down Payment
54. The winning bidder for each license must submit sufficient
additional funds (a ``down payment'') to bring the amount of money on
deposit (not including upfront payments applied to satisfy bid
withdrawal or default payments) with the government to 20 percent of
its winning bid within ten (10) business days after the high bidder is
announced. See 47 CFR 25.404.
55. Specific information regarding the submission of down payments
will be included in the Public Notice announcing the winning bidders.
B. Submission of License Application and Award of Licenses
56. The winning bidder for each license also will be required to
file information in conformance with part 25 of the Commission's rules.
This procedure will constitute the ``long-form application'' process
referred to in our general auction rules. Winning bidders must file
this information with the Commission within 30 days of the publication
of the Public Notice announcing the winning bidders. Winning bidders
must submit, as part of this post-auction application process, a signed
statement describing their efforts to date and future plans to come
into compliance with any applicable spectrum limitations, if they are
not already in compliance. See 47 CFR 25.404.
57. After reviewing a winning bidder's information supplied in
conformance with Part 25 and determining that the bidder is qualified
to be a licensee, and after verifying receipt of the bidder's 20
percent down payment, the Commission will announce the application's
acceptance for filing in a Public Notice, thus triggering the filing
window for petitions to deny. If, pursuant to section 309(d) of the
Communications Act, the Commission dismisses or denies any and all
petitions to deny, the Commission will issue a Public Notice announcing
this, and the winning bidder will then have ten business days to submit
the balance of its winning bid. If the bidder does so, the license will
be granted subject to a condition, if necessary, that the permittee
come into compliance with any applicable spectrum limitations within 12
months of the final grant. The licensee may come into compliance with
this spectrum cap by either surrendering to the Commission its excess
channels or filing an application that would result in divestiture of
the excess channels. If the bidder fails to submit the balance of the
winning bid or the license is otherwise denied, the FCC will assess a
default payment as set forth above and reauction the license. See
Section VII of this Public Notice.
C. Refund of Upfront Money
58. All applicants who submitted upfront payments, yet were not
winning bidders, may be entitled to a refund of their upfront payments
after the conclusion of the auction. Any refund will be conditioned
upon the existence of excess funds on deposit after any applicable bid
withdrawal payments have been deducted.
59. Because experience with prior auctions has shown that in most
cases wire transfers provide quicker and more efficient refunds than
paper checks, the FCC currently intends to use wire transfers for all
Auction 15 refunds. To avoid delays in processing refunds, applicants
should include wire transfer instructions with any refund request they
file; they may also provide this information in advance by faxing it to
the FCC Billings and Collections Branch, ATTN: Regina Dorsey or Linwood
Jenkins, at 202-418-2843. (Applicants should also note that
implementation of the Debt Collection Improvement Act of 1996 requires
the FCC to obtain a Taxpayer Identification Number before it can
disburse funds.) In lieu of faxing, please mail the information to:
Federal Communications Commission, ATTN: Linwood Jenkins, 1919 M
Street, NW., Room 450, Washington, DC 20554
D. Construction Requirements
60. Licensees in satellite DARS must begin construction of or
complete contracting for construction of their space stations within
one year of license grant; launch and begin operating their first
satellite within four years; and begin operating their entire system
within six years. Failure to meet these milestone requirements will
result in forfeiture of the license, and the licensee will be
ineligible to regain it. See 47 CFR 25.214(b).
[[Page 13014]]
XI. Bidder Alert
61. The terms contained in the Commission's Rules, Reports, Orders,
and Public Notices are not negotiable. Prospective bidders should
review these auction documents thoroughly prior to the auction to make
certain that they understand all of the provisions and are willing to
be bound by all of the terms before making any bid.
62. All applicants must certify under penalty of perjury on their
Supplemental Information that they are legally, technically,
financially and otherwise qualified to hold a DARS license. 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, being barred from
participating in future auctions, and/or criminal prosecution.
63. The FCC makes no representations or warranties about the use of
this spectrum for particular services. Applicants should be aware that
an FCC auction represents an opportunity to become an FCC licensee in
this service, subject to certain conditions and regulations. An FCC
auction does not constitute an endorsement by the FCC of any particular
services, technologies or products, nor does an FCC license constitute
a guarantee of business success. Applicants should perform their
individual due diligence before proceeding as they would with any new
business venture.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
Attachment A--Federal Communications Commission; DARS Licenses Auction
Auction Specific Instructions FCC Remittance Advice, FCC Form 159
Upfront Payments
The following instructions are specifically written for the
auction of DARS licenses. These instructions are intended as a
supplement to the standard instructions issued by the FCC's Billings
and Collections Branch, at telephone number (202) 418-1995. Bidders
should ensure that they complete the FCC Form 159 accurately, since
mistakes may affect their bidding eligibility. Please note that it
is vital that all forms, applications, correspondence, etc.
submitted to the Commission by an applicant contain identical
information necessary for verification purposes. To this end,
appropriate references between the FCC Form 159 Remittance Advice
and the Supplemental Information have been provided below:
------------------------------------------------------------------------
Block No. Required information
------------------------------------------------------------------------
1.................... FCC Account Number--Same as Supplemental
Information item ``g''. A bidder that has a
taxpayer identification number (TIN) must create
this FCC account number by using its TIN, plus
the prefix of ``0'' (i.e., 0123456789). A TIN is
either the Employer Identification Number (EIN)
in the case of a business, or the Social
Security Account Number (SSAN) in the case of an
individual.
2.................... Total Amount Paid--Enter the total remittance
based on the payment amount. To bid in this
auction, the upfront payment is $3,000,000.
3.................... Payor Name--Enter the full name of the person or
company (i.e., maker of the check) responsible
for payment.
4.................... Street Address (Line 1)--Same as Supplemental
Information item ``b''. The street address to
which correspondence should be sent.
5.................... Street Address (Line 2)--Same as Supplemental
Information item ``b''. This line may be used if
further identification of the address is
required.
6.................... City--Same as provided in Supplemental
Information item ``c''. The name of the city
associated with the street address given in
block (4) of the FCC Form 159.
7.................... State--Same as provided in Supplemental
Information item ``d''. Enter the appropriate
two-character abbreviation here.
8.................... Zip Code--Same as provided in Supplemental
Information item ``e''. Enter the appropriate
five-digit or nine-digit code here.
9.................... Daytime Telephone Number--Same as provided in
Supplemental Information item ``j''. Enter the
``payor's'' ten-digit telephone number here.
10................... Country Code--Used for payors who have addresses
outside the U.S. Proper codes may be obtained
from the Mailing Requirements Dept. of the U.S.
Postal Service.
------------------------------------------------------------------------
Note--If applicant, licensee, regulatee or debtor is the same as the
payor, do not complete blocks 11, 13, 18, 19, 20, & 21. This auction
does not involve multiple applications or filings, so the FCC is
concerned only with the remaining blocks 12A, 14A, 15A, 16A & 17A.
------------------------------------------------------------------------
Item # ``1'' information
------------------------------------------------------------------------
12A.................. FCC Call Sign/Other Identifier--Leave blank.
14A.................. Payment Type Code--Enter A D A U.
15A.................. Quantity--Enter the number ``1''.
16A.................. Amount Due--Enter total upfront payment indicated
in block (2).
17A.................. FCC Code 1--Enter the number ``15''.
------------------------------------------------------------------------
Note. In the upper left hand corner of the FCC form 159 is a rectangle
with the word ``(RESERVED)'' typed in the middle of it. Please enter
the number ``358410'' somewhere in this rectangle.
BILLING CODE 6712-01-P
[[Page 13015]]
Attachment B.--FCC Remittance Advice (FCC Form 159) and Instructions
for Using FCC Form 159 (Remittance Advice)
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[FR Doc. 97-6832 Filed 3-18-97; 8:45 am]
BILLING CODE 6712-01-C