[Federal Register Volume 65, Number 108 (Monday, June 5, 2000)]
[Notices]
[Pages 35633-35636]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-13974]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 00-900]


Implementation Procedures for the Report and Order and Memorandum 
Opinion and Order Addressing the 218-219 MHz Services (Formerly Known 
as Interactive Video and Data Services (IVDS))

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This document addresses implementation procedures regarding 
restructuring options and remedial bidding credits for current and 
former 218-219 MHz licensees. These service and technical rules were 
modified to maximize the efficient and effective use of the band.

FOR FURTHER INFORMATION CONTACT: Ben Freeman or Nicole Oden of the 
Auctions and Industry Analysis Division at (202) 418-0660 or Jamison 
Prime of the Public Safety and Private Wireless Division at (202) 418-
0680.

SUPPLEMENTARY INFORMATION: This is a summary of a Public Notice 
released April 20, 2000. The complete text of the public notice, 
including Attachments A, B and C, is available for inspection and 
copying during normal business hours in the FCC Reference Center (Room 
CY-A257), 445 12th Street, SW., Washington, DC. 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.

I. Background

    1. On September 10, 1999, the Federal Communications Commission 
(``Commission'') issued FCC 99-239 which modified the regulations 
governing the licensing of the 218-219 MHz Service (formerly known as 
IVDS) to maximize the efficient and effective use of the band. See, 
Part 95 of the Commission's Rules to Provide Regulatory Flexibility in 
the 218-219 MHz Service (218-219 MHz Order) 64 FR 59656 (November 3, 
1999). The 218-219 MHz Order, among other things, modified service and 
technical rules for the band and extended the license term from five to 
ten years. The Commission also adopted a restructuring plan for 
existing licensees that: (i) were current in installment payments as of 
March 16, 1998; (ii) were less than ninety days delinquent on the last 
payment due before March 16, 1998; or (iii) had properly filed grace 
period requests under the former installment payment rules (``Eligible 
Licensees''). Pursuant to the restructuring plan, Eligible Licensees 
must make elections on a per license basis, choosing between three 
options: (a) Reamortization and Resumption of Payments; (b) Amnesty; or 
(c) Prepayment (Prepayment-Retain or Prepayment-Return). Eligible 
Licensees that fail to submit a valid election with respect to any 
license by the Election Date will be assumed to have elected Amnesty 
for all of their 218-219 MHz licenses.
    2. ``Ineligible Entities'' are those entities that made second down 
payments and: (i) made some installment payments, but were not current 
in their installment payments as of March 16, 1998, and did not have a 
grace period request on file in conformance with the former rules; or 
(ii) entities that never made any installment payments and did not have 
a timely filed grace period request on file. Ineligible Entities are 
not entitled to make elections, but will be granted debt forgiveness 
for any outstanding balances owed and have previously paid installment 
payments refunded. The Commission will release a separate Public Notice 
detailing the procedures by which entities may obtain a refund, with 
which Ineligible Entities should become familiar.
    3. Under the Federal Claims Collection Act and related regulations, 
only the United States Department of Justice (``DOJ'') can compromise a 
claim in excess of $100,000. Because many of the debts subject to the 
218-219 MHz Order exceed $100,000 and involve FCC licenses subject to 
common facts and circumstances, the Commission recommended that DOJ 
approve the compromise of all 218-219 MHz Service debt as a package. On 
March 1, 2000, DOJ notified the Commission of its decision to approve 
the debt forgiveness portion of the 218-219 MHz Order.

II. Procedures for Filing Election Notices

A. Mailing Address and Election Date

    4. Election Notices may be filed with the Commission from 8:00 a.m. 
until 7:00 p.m. starting on the date of this Public Notice and ending 
at 7:00 p.m. on the Election Date. The Election Date will be the last 
business day of the first full month after the Order on 
Reconsideration, regarding the 218-219 MHz Order, is released by the 
Commission. NO ELECTIONS OR CHANGES TO ELECTIONS WILL BE ACCEPTED AFTER 
7:00 P.M. ON THE

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ELECTION DATE. Election Notices should be sent to the Office of the 
Secretary, Room TW-B204, Federal Communications Commission, 445 12th 
Street, S.W., Washington, D.C., 20554. In addition, a copy of Election 
Notices should be sent to Ms. Rachel Kazan, Room 4-A460, Auctions and 
Industry Analysis Division, Wireless Telecommunications Bureau, Federal 
Communications Commission, 445 12th Street, SW., Washington, DC 20554.
    5. The Commission must receive all Election Notices, no later than 
7 p.m. on the Election Date. Eligible Licensees are solely responsible 
for ensuring the accurate and timely delivery of their Election 
Notices. Submission of Election Notices by FAX or electronic mail will 
NOT be accepted.

B. Format of Election Notices

    6. Although there is no specific form for Election Notices, they 
must contain the following information: (i) Licensee Name; (ii) 
Licensee Address; (iii) Licensee Phone Number; (iv) Contact Name; (v) 
Contact Phone Number; (vi) Contact FAX Number; (vii) Taxpayer 
Identification Number (TIN); (viii) License Number(s); and (ix) Market 
Area(s).
    7. For each eligible license it has, the Eligible Licensee must 
make a specific election for each individual license designating one of 
the three election options: (i) Reamortization/Resumption (ii) Amnesty 
or (iii) Prepayment (Prepayment-Retain or Prepayment-Return). Licensees 
electing Prepayment must indicate which licenses they want to retain 
and which licenses, if any, are being returned to the Commission. Any 
individual filing an Election Notice for a license must be authorized 
by the Licensee to do so. See Attachment A of the Public Notice for a 
model Election Notice.

C. Changing Election Notices Prior to the Election Date

    8. A previously filed Election Notice may be altered prior to 7:00 
p.m. on the Election Date by submitting the following: (i) A statement 
that the licensee is rescinding its previously filed Election Notice; 
(ii) a new Election Notice which states its new election; and (iii) a 
copy of its previously filed Election Notice. These submissions must be 
simultaneously filed with the Office of the Secretary, Room TW-B204, 
Federal Communications Commission, 445 12th Street, SW., Washington, DC 
20554. In addition, as with the original Election Notice, a copy of the 
submissions should be sent to Ms. Rachel Kazan, Room 4-A460, Auctions 
and Industry Analysis Division, Wireless Telecommunications Bureau, 
Federal Communications Commission, 445 12th Street, SW, Washington, DC 
20554.
    No changes or alterations to any elections will be accepted after 
7:00 p.m. on the Election Date. Submission of Election Notice changes 
by FAX or electronic mail will NOT be accepted.

III. Failure To File an Election Notice

    9. If an Eligible Licensee fails to file an Election Notice by the 
specified Election Date, the licensee's license(s) will automatically 
be placed in the Amnesty category. This will result in the automatic 
cancellation of the license(s). A list of the licenses that are 
eligible to participate in the 218-219 MHz restructuring plan, with the 
corresponding Eligible Licensees is Attachment B of the Public Notice.

A. Changes of Address

    10. It is the sole responsibility and obligation of all entities 
subject to the 218-219 MHz Order, current and former licensees, to keep 
the Commission apprised of any changes of address. Entities subject to 
the 218-219 MHz Order that either do not have a current and correct 
address on file, or have not received a letter of eligibility, should 
contact the Commission immediately.
    11. All change of address notices (or other administrative updates, 
such as a change in phone number or contact person) must be submitted 
in writing to the Federal Communications Commission, Attn: Darlene 
Reeder, 1270 Fairfield Road, Gettysburg, PA 17325-7245. Licensees 
should include their call sign, market number, and note that the letter 
is in reference to a 218-219 MHz Service license. For changes of 
address between now and the Election Date, licensees should also fax a 
copy of their letters to the FCC's Public Safety and Private Wireless 
Division in Washington, DC, attention Mr. Jamison Prime, at (202) 418-
2643. Note: If a change of address relates to a sale of a license, the 
licensee must first apply for and receive FCC approval to assign its 
218-219 MHz Service license(s).

IV. Defective Elections

    12. Examples of defective elections are when a Licensee chooses an 
option for which it is not eligible; attempts to combine Prepayment 
with another election option; fails to include the required information 
in its Election Notice including a Taxpayer Identification Number (TIN) 
and a specific election for each individual license with corresponding 
license number; and/or places a condition upon its election. All of the 
218-219 MHz licenses held by the licensee making a defective election 
will be placed in the Amnesty category, resulting in the automatic 
cancellation of their licenses.

V. Return of Radio Station Authorizations (Licenses)

    13. Due to the changed licensing term for the 218-219 MHz services, 
from five (5) years to ten (10) years, the Commission will issue 
modified licenses. Therefore, the implementation of the election 
options by the Commission does not require Eligible Licensees to return 
their original licenses.

VI. Resumption of Installment Payments

    14. For those licensees electing to retain some, or all, of their 
licenses and resume payments (Reamortization/Resumption), the first 
installment payment is due at the end of the third month after the 
Election Date. Installment payments may be made via wire transfer or 
through an Auction Installment Payment account (AIP) according to the 
terms set forth in the Installment Payment Acknowledgement. For 
specific payment instructions see Attachment C of the Public Notice. In 
addition, under the Commission's part 1 late payment rules for 
installment payments, licensees will have the option of utilizing the 
two ninety-day late payment periods, subject to late payment fees, if 
they need additional time in order to avoid default. Failure to make 
timely installment payments in this manner will trigger default and the 
automatic cancellation of the licenses.

VII. ``New Money'' Payments for Prepayment Option

    15. For Eligible Licensees electing the Prepayment option, the 
Commission must receive all ``new money'' payments on or before the end 
of the third month after the Election Date. Licensees may pay the ``new 
money'' payment up to ten (10) days late, subject to a 5% late fee. 
Payments are to be made via wire transfer. Failure to pay the entire 
``new money'' balance due on the license(s) for which Prepayment-Retain 
was elected will trigger default and the automatic cancellation of the 
license(s). For specific payment instructions of ``new money,'' see 
Attachment C of the Public Notice.

VIII. Refunds and Credits

    16. Refunds will be processed via Automated Clearing House Credits 
(ACH) (i.e. electronic funds transfer). In order for the Commission to 
issue refunds, all entities due a refund must submit the information 
necessary for an

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electronic funds transfer. The Commission will endeavor to issue 
refunds to all parties within approximately 60 days of the Election 
Date. The Commission will release a separate Public Notice detailing 
the procedures by which entities may obtain a refund.

A. For Eligible Licensees

    17. The availability of a refund, and the application of 
installment payment credit, depends upon the election(s) made for each 
license.
i. Amnesty
    18. For an Eligible Licensee that elects Amnesty for all of its 
licenses, the Commission will retain the down payment (less any 
remedial bidding credit refund) and forgive the original principal 
balance and all interest payments due thereon. In addition, for 
Eligible Licensees in this category that have previously made 
installment payments, the Commission will refund installment payments 
in their entirety.
ii. Amnesty and Reamortization/Resumption
    19. For an Eligible Licensee that holds more than one license and 
elects Amnesty for one or more of its licenses, and Reamortization/
Resumption for its other license(s), all installment payments made on 
the Amnesty license(s) will be credited towards the outstanding balance 
due on the license(s) for which Reamortization/Resumption was elected. 
The installment payment credits will be applied against the accrued and 
unpaid interest on the retained license(s), with any excess funds being 
applied to the principal balance on each retained license. The 
installment payment credits will be prorated based on the net high bids 
of the retained licenses.
    20. For Eligible Licensees electing Reamortization/Resumption, who 
may also be due a remedial bidding credit, the 25% remedial bidding 
credit will be applied prior to the reamortization of the principal and 
installment payments due on the license(s).
iii. Prepayment (Prepayment-Return and Prepayment-Retain)
    21. Eligible Licensees electing Prepayment may retain or return as 
many licenses as they wish. The Commission will forgive all of the 
interest due on the retained licenses from grant date until the 
Election Date, however Eligible Licensees must pay off the original 
principal balance of the license(s) they retain. Eligible Licensees 
will be given a prepayment credit equal to 85% of the down payment and 
100% of the installment payment(s) made on the license(s) they return 
to the Commission. If the original principal balance of the license(s) 
the Eligible Licensee wishes to retain is greater than the prepayment 
credit, the additional amount due is called ``New Money,'' and must be 
remitted to the Commission on or before the end of the third month 
after the Election Date. If the prepayment credit is greater than the 
original principal balances, the excess prepayment credits will be 
refunded to the licensee to the extent that the funds were generated 
from installment payments. No excess prepayment credits generated from 
down payments will be refunded.

B. Ineligible Entities

    22. Ineligible Entities will have all previously paid installment 
payments refunded.

IX. Remedial Bidding Credit for Small Businesses

    23. The Commission has eliminated women- and minority-owned 
business bidding credits, simultaneously granting credits of 
commensurate size to all small businesses. Any Eligible Licensee or 
Ineligible Entity that paid its first and second down payment, and met 
the small business qualifications at the time of auction, may receive a 
25% remedial bidding credit. The Commission will process a refund of 
excess down payment equal to the difference between the down payment 
amounts based on the gross high bid and the net high bid. However, if 
the small business entity claimed to be a women- or minority-owned 
business at the time of auction, it already received a 25% bidding 
credit and therefore no refund is generated by the small business 
bidding credit. A refund of an excess down payment to Ineligible 
Entities does not alter their eligibility status. Where a licensee met 
the qualifications for a small business at the time of auction and paid 
for their licenses in full, but did not receive a women- or minority-
owned business bidding credit, the Commission will process a refund 
based on the remedial bidding credit. Where licensees paid in full, the 
refund will be equal to the difference between the gross high bid and 
the net high bid. The Commission will issue a separate Public Notice 
with instructions detailing the refund procedures.
    24. The refund of excess down payment due to the remedial bidding 
credit is separate and distinct from the 218-219 MHz restructuring 
plan. Eligible Licensees should not plan their election options around, 
or anticipate utilizing, the remedial bidding credit refund to meet any 
payment obligations to the Commission that may exist after the 
recalculation of balances or installment payments due on retained 
licenses. The payment deadline obligations of the licensee may not 
correspond with the refund of the remedial bidding credit, and the 
Commission will not credit, or offset, the amount owed after the 
recalculation based upon the anticipated refund. In addition, the 
Commission maintains no obligation to remit the remedial bidding credit 
refund prior to the licensee's payment deadline.

X. Issuance of Modified Radio Station Authorizations (Modified 
Licenses)

    25. The Commission will issue modified licenses that reflect the 
terms and new expiration date adopted in the 218-219 MHz Order. These 
licenses will be generated after the Election Date and, in the case of 
Eligible Licensees who choose Reamortization/Resumption, after the due 
date of the first installment payment. Licenses for which 
Reamortization/Resumption was elected will be conditioned upon full 
payment under the installment payment plan, pursuant to the 
Commission's rules.
    26. Eligible Licensees choosing Amnesty will not receive modified 
licenses, as they will no longer hold valid licenses in the 218-219 MHz 
service. Eligible Licensees that elect Amnesty for some licenses and 
Reamortization/Resumption for others, will receive modified licenses 
only for those licenses for which it has elected to resume installment 
payments. Ineligible Entities will not receive modified licenses, as 
they do not hold valid licenses in the 218-219 MHz service.
    27. Because the Commission will automatically mail these modified 
licenses, licensees need only contact the Commission regarding the 
issuance of modified licenses if the address used to mail eligibility 
status and implementation information (or the licensee's address of 
record, in the case of licenses acquired through lottery) is incorrect.

XI. Radio Station Authorization (License) Renewals

    28. No action with regard to license renewals is necessary at this 
time. Licensees do not have to file any license renewals with the 
Commission until the current ten (10) year licensing term, from grant 
date, has expired.

XII. Issuance of Loan Documents

    29. Eligible Licensees electing Reamortization/Resumption are 
required to execute loan documents in

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the form of an Installment Payment Acknowledgement. In general, the 
acknowledgement contains a restatement of the amount of the debt owed, 
the payment terms under the 218-219 MHz Order, and references other 
Commission rules and regulations related to the payment of installment 
debt. Licensees may also be required to execute a Uniform Commercial 
Code financing statement (UCC-1). The requisite loan document(s) must 
be executed and returned to the Commission (or its agent) within ten 
business days of receipt. An Eligible Licensee's failure to fully and 
timely execute and deliver the requisite loan document(s) will result 
in the automatic cancellation of the license.
    30. Eligible Licensees electing Reamortization/Resumption are 
required to resume payments at the end of the third month after the 
Election Date, subject to applicable late payment rules, in accordance 
with the 218-219 MHz Order without regard to whether the requisite loan 
document(s) have been issued, executed, or returned.

XIII. Additional Information

A. Web Site

    31. Documents related to this notice and its implementation may be 
found on the Federal Communications Commission web site located at 
http://www.fcc/gov/wtb/auctions/218rest/218rest.html.

B. FCC Reference Center

    32. Documents related to this notice and its implementation may 
also be examined and copied during normal business hours in the FCC 
Reference Center, 445 12th Street, SW, Room CY-A257, Washington, DC 
20554, telephone (202) 418-0270.

C. ITS

    33. In addition, documents may be purchased from the Commission's 
copy contractor, ITS, Inc., 1231 20th Street, NW., Washington, DC 
20036, telephone (202) 857-3800.

    Federal Communications Commission.
Louis J. Sigalos,
Deputy Chief, Auctions and Industry Analysis Division.
[FR Doc. 00-13974 Filed 6-2-00; 8:45 am]
BILLING CODE 6712-01-U