[Federal Register Volume 66, Number 77 (Friday, April 20, 2001)]
[Notices]
[Pages 20293-20306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-9833]


=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

[Report No. AUC-39-B (Auction No. 39); DA 01-746]


Auction of Licenses for the VHF Public Coast and Location and 
Monitoring Services Spectrum Scheduled for June 6, 2001

AGENCY: Federal Communications Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This document announces the procedures and minimum opening 
bids for the upcoming auction of 16 VHF Public Coast licenses and 241 
multilateration Location and Monitoring Services licenses scheduled for 
June 6, 2001.

DATES: Auction No. 39 is scheduled for June 6, 2001.

FOR FURTHER INFORMATION CONTACT: Kenneth Burnley, Legal Branch or Lyle 
Ishida, Auctions Operations Branch (202) 418-0660; Linda Sanderson, 
Auction Operations Branch at (717) 338-2888. Keith Fickner, Policy and 
Rules Branch at (202) 418-7308 or Kim Kleppinger, Licensing and 
Technical Analysis Branch at (717) 338-2666. Meribeth McCarrick, Media 
Contact at (202) 418-0654.

SUPPLEMENTARY INFORMATION: This is a summary of a Public Notice 
released March 26, 2001. The complete text of this Notice, including 
Attachments A through I, 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

[[Page 20294]]

Street, NW., Washington, DC 20036, (202) 857-3800. It is also available 
on the Commission's web site at http://www.fcc.gov.

Attachment A--Licenses to be Auctioned
Attachment B--FCC Auction Seminar Registration Form
Attachment C--Electronic Filing and Review of the FCC Form 17
Attachment D--Guidelines for Completion of FCC Form 175 and Exhibits
Attachment E--Instructions for FCC Remittance Advice (FCC Form 159)
Attachment F--FCC Bidding Preference/Remote Software Order Form
Attachment G--Exponential Smoothing Formula and Calculation
Attachment H--Accessing the FCC Network to File FCC Form 175
    Attachment I--Summary of Documents Addressing the Anti-Collusion 
Rules

I. General Information

A. Introduction

    1. By Public Notice, DA 01-746 released March 26, 2001 (``Auction 
No. 39 Public Notice'') the Wireless Telecommunications Bureau 
(``Bureau'') announces the procedures and minimum opening bids for the 
upcoming auction of VHF Public Coast and Location and Monitoring 
Service (``LMS'') spectrum (Auction No. 39) scheduled for June 6, 2001. 
On February 23, 2001, in accordance with the Balanced Budget Act of 
1997, the Bureau released a Public Notice seeking comment on reserve 
prices or minimum opening bids and the procedures to be used in Auction 
No. 39. The Bureau received one comment and one reply comment in 
response to the Auction No. 39 Comment Public Notice, 66 FR 13531 
(March 6, 2001).
i. Background of Proceeding
    2. Auction No. 39 will be the second auction each for VHF Public 
Coast and LMS spectrum. The initial VHF Public Coast licenses were 
awarded in Auction No. 20, which ended on December 14, 1998. The 
initial LMS licenses were awarded in Auction No. 21, which ended on 
March 5, 1999.
    a. VHF Public Coast.
    3. In July 1998, the Commission restructured the licensing 
framework that governs VHF Public Coast stations. Pursuant to the 
Public Coast Third Report and Order, 63 FR 40059 (July 27, 1998), site-
specific licensing has been replaced with a geographic-based system. 
Service and operational requirements for VHF Public Coast Stations are 
contained in Part 80 of the Commission's Rules.
    b. LMS.
    4. In 1995, the Commission established rules governing the 
licensing of the LMS in the 902-928 MHz frequency band. LMS refers to 
advanced radio technologies designed to support the nation's 
transportation infrastructure and to facilitate the growth of 
Intelligent Transportation Systems. The Commission created a new 
subpart M in part 90 of the Commission's rules for Transportation 
Infrastructure Radio Services, which includes LMS and like services. 
Additional information can be found in section I.A.1 of the Auction No. 
39 Public Notice.
 ii. Licenses To Be Auctioned
    5. The licenses available in this auction consist of the following 
licenses that remained unsold in Auctions No. 20 and No. 21.
    a. VHF Public Coast Licenses.
    6. Sixteen licenses will be available in geographic areas known as 
VHF Public Coast Areas (VPCs). There are two categories of VPCs: 
maritime VPCs and inland VPCs. All of the VHF Public Coast licenses to 
be offered in Auction No. 39 are inland VPC licenses. Inland VPCs are 
identical to the Commerce Department's Economic Areas, no part of which 
is within 100 miles of a major waterway. Each VPC license has seven 25 
kHz channel pairs, adding up to 350 kHz.

------------------------------------------------------------------------
                                             Channel pairs (total kHz
              Inland VPCs                           available)
------------------------------------------------------------------------
Inland Border VPCs: VPCs 10, 11........  24, 26, 27, 28, 85, 86, 87 (350
                                          kHz).
Inland Non-Border VPCs:
    VPCs 12-15, 23, 26, 38.............  24, 26, 27, 28, 85, 86, 87 (350
                                          kHz).
    VPCs 16, 18, 19, 20, 21, 22, 40....  24, 26, 27, 28, 84, 86, 87 (350
                                          kHz).
------------------------------------------------------------------------

    b. LMS Licenses.
    7. Three blocks of spectrum are allocated for LMS systems:
    (i) Block A--904.000-909.750 MHz and 927.750-928.000 MHz.
    (ii) Block B--919.750-921.750 MHz and 927.500-927.750 MHz.
    (iii) Block C--921.750-927.250 MHz and 927.250-927.500 MHz.
    8. A geographic licensing area is comprised of each of these 
spectrum blocks. LMS spectrum is licensed in 176 Economic Areas (EAs). 
In Auction No. 39, 241 LMS licenses will be available: 117 licenses 
will be auctioned in Block A, 61 licenses will be auctioned in Block B, 
and 63 licenses will be auctioned in Block C.
    9. A list of licenses available in Auction No. 39 is included in 
Attachment A of the Public Notice.

B. Rules and Disclaimers

i. Relevant Authority
    a. VHF Public Coast.
    10. Prospective bidders must familiarize themselves thoroughly with 
the Commission's rules relating to the VHF Public Coast Service, 
contained in title 47, part 80 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.
    11. Prospective bidders must also be thoroughly familiar with the 
procedures, terms and conditions (collectively, ``Terms'') contained in 
this public notice; the Auction No. 39 Comment Public Notice; the 
Public Coast Third Report and Order; Public Coast Second Report and 
Order, 62 FR 37533 (July 14, 1997); and part 1, subpart Q, of the 
Commission's rules concerning competitive bidding proceedings.
    b. LMS.
    12. Prospective bidders must familiarize themselves thoroughly with 
the Commission's rules relating to the Location and Monitoring Service, 
contained in title 47, part 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.
    13. Prospective bidders must also be thoroughly familiar with the 
procedures, terms and conditions (collectively, ``Terms'') contained in 
this public notice; the Auction No. 39 Comment Public Notice; the LMS 
Second Report and Order; 63 FR 40659 (July 30, 1998), Memorandum 
Opinion and Order and Further Notice of Proposed Rule Making; 62 FR 
52078 (October 6, 1997), part 90, subpart M of the Commission's rules 
concerning Transportation Infrastructure Radio Service; subpart X of 
the Commission's rules concerning Competitive Bidding Procedures; and 
part 1, subpart Q of the Commission's rules concerning Competitive 
Bidding Proceedings.
    14. The terms contained in the Commission's rules, relevant orders,

[[Page 20295]]

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 and pronouncements, including orders on delegated 
authority or by the Commission relevant to one or more of the licenses 
or otherwise 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://www.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 98-151 for the 
Public Coast Third Report and Order, and FCC 98-157 for the LMS Second 
Report and Order). See also Due Diligence section, infra.
 ii. Prohibition of Collusion
    15. 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.
    16. 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. In Auction No. 39, for 
example, the rule would apply to any VHF Public Coast applicants 
bidding for the same VPC, and to any LMS applicants bidding for the 
same EA. Therefore, applicants that apply to bid for any license in a 
VPC or EA would be precluded from communicating after filing the FCC 
Form 175 short-form application with any other applicant for a license 
in the same VPC or EA. However, applicants may enter into bidding 
agreements before filing their 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 under Sec. 1.2105(c) of the Commission's rules, 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 the same geographic 
license areas. By signing their FCC Form 175 short-form applications, 
applicants are certifying their compliance with Sec. 1.2105(c). 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 immediately 
upon learning of such violation.
    17. A summary listing of documents from the Commission and the 
Bureau addressing the application of the anti-collusion rules may be 
found in Attachment I of the Public Notice.
iii. Due Diligence
    18. 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.
    a. VHF Public Coast.
    19. Potential bidders are reminded that there are a number of 
incumbent VHF Public Coast Station licensees and Private Land Mobile 
Radio (PLMR) licensees already operating in the 156-162 MHz band. Such 
incumbents must be protected from harmful interference by VHF Public 
Coast Station geographic area licensees in accordance with the 
Commission's rules. These limitations may restrict the ability of such 
VPC geographic area licensees to use certain portions of the 
electromagnetic spectrum or provide service to certain areas in their 
geographic license areas.
    20. In addition, potential bidders seeking licenses for geographic 
areas that are near the Canadian border should be aware of agreements 
between the United States and Canada that affect the assignment and use 
of VHF frequencies in certain parts of inland border VPCs. Potential 
bidders are solely responsible for investigating and evaluating the 
degree to which these matters may affect spectrum availability in areas 
where they seek inland border VPC licenses.
    21. Potential bidders may obtain information regarding incumbent 
VHF Public Coast licensees through the Bureau's licensing databases on 
the World Wide Web at http://www.fcc.gov/wtb. In particular, 
information can be searched online by selecting ``Databases'' and then 
``Search the Wireless Databases Online'' (http://gullfoss2.fcc.gov/cgi-bin/ws.exe/genmen/index.hts), or by selecting ``Download the WTB 
Databases'' (http://www.fcc.gov/wtb/databases.html). Information on 
previously auctioned licenses can be obtained at http://www.fcc.gov/wtb/uls.
    b. LMS.
    22. Potential bidders are reminded that LMS operates in the 902-928 
MHz frequency band. This band is allocated for primary use by Federal 
Government radio location systems. Next, in order of priority, are 
Industrial, Scientific and Medical devices. Federal Government fixed 
and mobile and LMS systems are secondary to these uses. The remaining 
uses of the 902-928 MHz band include licensed amateur radio operations 
and unlicensed equipment under part 15 of the Commission's rules, both 
of which are secondary to all other uses of the band. Part 15 low power 
devices include, but are not limited to, those used for automatic meter 
reading, inventory control, package tracking and

[[Page 20296]]

shipping control, alarm services, local area networks, internet access, 
and cordless telephones. The amateur radio service is used by 
technically inclined private citizens to engage in self-training, 
information exchange, and radio experimentation. In the LMS Report and 
Order, 60 FR 15248 (March 23, 1995), the Commission recognized the 
important contribution to the public provided by part 15 technologies 
and amateur radio operators and sought to develop a band plan that 
would maximize the ability of these services to coexist with LMS 
systems.
    23. The Commission adopted the LMS Report and Order with an eye 
toward minimizing potential interference within and among the various 
users of the 902-928 MHz band. The Commission's band plan accordingly 
permits secondary operations across the entire band by users of 
unlicensed part 15 devices and amateur licensees. At the same time, the 
band plan separates non-multilateration from multilateration LMS 
systems in all but one subband so as to avert interference. The LMS 
Report and Order also established limitations on LMS systems' 
interconnection with the public switched network and set forth a number 
of technical requirements intended to ensure successful coexistence of 
all the services authorized to operate in the band.
    24. Potential bidders may obtain information about LMS licenses 
through the Bureau's licensing databases on the World Wide Web at 
http://www.fcc.gov/wtb/uls..
    25. Potential bidders should also be aware that certain 
applications (including those for modification), petitions for 
rulemaking, waiver requests, requests for special temporary authority 
(``STA''), petitions to deny, petitions for reconsideration, and 
applications for review may be pending before the Commission that 
relate to particular incumbent multilateration LMS licensees.
    26. 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 a.m. to 10 p.m. ET, Saturday, 8 a.m. to 7 p.m. ET, and Sunday, 
12 noon to 6 p.m. 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.
    27. Further, potential bidders are strongly encouraged to 
physically inspect any sites located in, or near, the geographic area 
for which they plan to bid.
    28. Finally, potential bidders are strongly encouraged to conduct 
their own research prior to Auction No. 39 in order to determine the 
existence of pending proceedings that might affect their decisions 
regarding participation in the auction. Participants in Auction No. 39 
are strongly encouraged to continue such research during the auction.
iv. Bidder Alerts
    29. 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.
    30. 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. 39 may also call the FCC 
Consumer Center at (888) CALL-FCC ((888) 225-5322).
v. National Environmental Policy Act (``NEPA'') Requirements
    1. Licensees must comply with the Commission's rules regarding the 
National Environmental Policy Act (NEPA). For more detailed 
information, please refer to section I.B.5 of the Auction No. 39 Public 
Notice.

C. Auction Specifics

i. Auction Date
    32. The auction will begin on Wednesday, June 6, 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
    33. Auction No. 39--VHF Public Coast and Location and Monitoring 
Service
iii. Bidding Methodology
    34. The bidding methodology for Auction No. 39 will be simultaneous 
multiple round bidding. Bidding will be permitted only from remote 
locations, either electronically (by computer) or telephonically.
iv. Pre-Auction Dates and Deadlines
    35. The following are important events and deadlines related to 
Auction No. 39:

Auction Seminar--April 24, 2001
Short-Form Application (FCC FORM 175)--May 4, 2001; 6 p.m. ET
Upfront Payments (via wire transfer)--May 18, 2001; 6 p.m. ET
Orders for Remote Bidding Software--May 21, 2001; 6 p.m. ET
Mock Auction--June 4, 2001
Auction Begins--June 6, 2001
v. Requirements For Participation
    36. Those wishing to participate in the auction must:
     Submit a short-form application (FCC Form 175) 
electronically by 6 p.m. ET, May 4, 2001.
     Submit a sufficient upfront payment and a FCC Remittance 
Advice Form (FCC Form 159) by 6 p.m. ET, May 18, 2001.
     Comply with all provisions outlined in this public notice.
iv. General Contact Information
    37. The following is a list of general contact information relating 
to Auction No. 39:

General Auction Information--General Auction Questions; Seminar 
Registration; Orders for Remote Bidding Software; 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--Auctions and Industry Analysis Division--
Auction Rules, Policies, Regulations--Legal Branch (202) 418-0660
Licensing Information--Rules, Policies, Regulations; Licensing Issues; 
Due Diligence; Incumbency Issues; Public Coast--Public Safety and 
Private Wireless Division--(202) 418-0680; LMS--Commercial Wireless 
Division--(202) 418-0620
Technical Support--Electronic Filing Assistance; Software Downloading; 
FCC Auctions Technical Support Hotline, (202) 414-1250 (Voice), (202) 
414-1255 (TTY), Hours of service: Monday through Friday 7 a.m. to 10

[[Page 20297]]

p.m. ET, Saturday, 8 a.m. to 7 p.m. ET, Sunday, 12 noon to 6 p.m. ET
Payment Information--Wire Transfers; Refunds; FCC Autions 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, FCC Forms--Meribeth McCarrick (202) 418-0654 (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
    ftp://ftp.fcc.goc
    http://www/fcc/gov/wtb/auctions

II. Short-Form (FCC Form 175) Application Requirements

    38. Guidelines for completion of the short-form application (FCC 
Form 175) are set forth in Attachment D to the public notice. The 
short-form application seeks the applicant's name and address, legal 
classification, status, small and very 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., 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.

A. License Selection

    39. Progeny suggests that the Commission allow bidders to select 
all of the available LMS licenses without selecting all available VHF 
Public Coast licenses. This would be accomplished on the FCC Form 175 
through the use of two separate boxes that would allow bidders to 
select all LMS licenses offered in the auction, or all VHF Public Coast 
licenses offered in the auction. Progeny also suggests that, because 
some bidders may desire to bid on both sets of licenses, the Commission 
should permit bidders to specify both ``ALL'' boxes. Progeny contends 
that otherwise the Commission would be creating collusion problems that 
would not otherwise exist in a normal one-service auction. We agree and 
will adopt mechanisms consistent with these proposals for Auction No. 
39.

B. Ownership Disclosure Requirements (FCC Form 175 Exhibit A)

    40. 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 the 
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.

C. Consortia And Joint Bidding Arrangements (FCC Form 175 Exhibit B)

    41. 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.
    42. 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.

D. Eligibility

i. Bidding Credit Eligibility (FCC Form 175 Exhibit C)
    43. Bidding credits are available to small and very small 
businesses, or consortia thereof, as defined in 47 CFR 80.1252(b)(1)(2) 
and (5) for VHF Public Coast, and 47 CFR 90.1103(b)(1)(2) for LMS. 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, 
together with its affiliates and controlling interests of the bidder 
and its affiliates:
     A bidder with average annual gross revenues of not more 
than $15 million for the preceding three years receives a 25 percent 
discount on its winning bids for VHF Public Coast and LMS licenses;
     A bidder with 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 VHF Public Coast and LMS licenses.
    44. 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
    45. To encourage the growth of wireless services in federally 
recognized tribal lands the Commission has implemented a tribal land 
bidding credit. See section V.C of the Auction No. 39 Public Notice.
iii. Applicability of Part 1 Attribution Rules
    a. Controlling Interest Standard.
    46. On August 14, 2000, the Commission released the Part 1 Fifth 
Report and Order, 65 FR 52323 (August 29, 2000), 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

[[Page 20298]]

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 Part 1 proceeding. Part 
1 rules that supersede inconsistent service-specific rules will control 
in Auction No. 39. Accordingly, the ``controlling interest'' standard 
as set forth will be in effect for Auction No. 39, even if conforming 
edits to the CFR are not made prior to the auction.
    b. Control.
    47. 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 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.
    c. Attribution for Small and Very Small Business Eligibility.
    48. In determining which entities qualify as small or very small 
businesses, the Commission will consider the gross revenues of the 
applicant, its controlling interest holders, the affiliates of the 
applicant, and their controlling interest holders. 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.
    49. A consortium of small or very 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 or very small business in 
Sec. 80.1252(b) or Sec. 90.1103(b) of the Commission's rules. Thus, 
each consortium member must disclose its gross revenues along with 
those of its affiliates, controlling interests, and controlling 
interests' affiliates. We note that although the gross revenues of the 
consortium members will not be aggregated for purposes of determining 
eligibility for small or very 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. Application Showing
    50. Applicants should note that they 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 or very small businesses (or consortia of small or very small 
businesses) for this auction.
    51. Applicants should further note that 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.
    52. Entities applying to bid as small or very small businesses (or 
consortia of small or very small businesses) will be required to 
disclose on Exhibit C to their FCC Form 175 short-form applications, 
separately and in the aggregate, the gross revenues for the preceding 
three years of each of the following: (i) the applicant, (ii) the 
applicant's affiliates, (iii) the applicant's controlling interest 
holders, and (iv) the affiliates of the applicant's controlling 
interest holders. Certification that the average annual gross revenues 
for the preceding three years do not exceed the applicable limit is not 
sufficient. A statement of the total gross revenues for the preceding 
three years is also insufficient. The applicant must provide separately 
for itself, its affiliates, its controlling interest holders, and their 
affiliates a schedule of gross revenues for each of the preceding three 
years, as well as a statement of total average gross revenues for the 
three-year period. If the applicant is applying as a consortium of very 
small or small businesses, this information must be provided for each 
consortium member.

E. Provisions Regarding Defaulters and Former Defaulters (FCC Form 175 
Exhibit D)

    53. 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.
    54. ``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. 39, provided that they are otherwise qualified. 
However, as discussed in section III.D.3 of the Auction No. 39 Public 
Notice, former defaulters are required to pay upfront payments that are 
fifty percent more than the normal upfront payment amounts.

F. Unjust Enrichment Payments

    55. Auction No. 39 bidders should also note that unjust enrichment 
provisions apply to winning bidders that use bidding credits and 
subsequently assign or transfer control of their licenses to an entity 
not qualifying for the same level of bidding credit.

G. Installment Payments

    56. Installment payment plans will not be available in Auction No. 
39.

H. Other Information (FCC Form 175 Exhibits E and F)

    57. Applicants owned by minorities or women, as defined in 47 CFR 
1.2110(c)(3), 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

[[Page 20299]]

so on Exhibit F (Miscellaneous Information) to the FCC Form 175.

I. Minor Modifications to Short-Form Applications (FCC Form 175)

    58. After the short-form filing deadline (May 4, 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 Louis 
Sigalos, Deputy Chief, Auctions and Industry Analysis Division, 
Wireless Telecommunications Bureau, Federal Communications Commission, 
445 12th Street, SW, Suite 4-A668 Washington, DC 20554, briefly 
summarizing the changes. Questions about other changes should be 
directed to Kenneth Burnley of the Auctions and Industry Analysis 
Division at (202) 418-0660.

J. Maintaining Current Information in Short-Form Applications (FCC Form 
175)

    59. 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

    60. On Tuesday, April 24, 2001, the FCC will sponsor a free seminar 
for Auction No. 39 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, 
FCC remote bidding software, and the VHF Public Coast and LMS spectrum 
and auction rules. The seminar will also provide an opportunity for 
prospective bidders to ask questions of FCC staff.
    61. To register, complete the registration form attached to the 
Auction No. 39 Public Notice as Attachment B and submit it by Friday, 
April 20, 2001. Registrations are accepted on a first-come, first-
served basis.

B. Short-Form Application (FCC Form 175)--Due May 4, 2001

    62. 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 May 4, 2001. Late applications will not be accepted.
    63. There is no application fee required when filing an FCC Form 
175. However, to be eligible to bid, an applicant must submit an 
upfront payment. See section III.D of the Auction No. 39 Public Notice.
i. Electronic Filing
    64. Applicants must file their FCC Form 175 applications 
electronically. Applications may generally be filed at any time 
beginning at noon on April 24, 2001, until 6 p.m. ET on May 4, 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 during 
the filing window until the May 4, 2001 deadline.
    65. Applicants must press the ``SUBMIT Application'' button on the 
``Submission'' page of the electronic form to successfully submit their 
FCC Forms 175. 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. 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 a.m. to 10 p.m. ET, Saturday, 8 a.m. to 7 p.m. 
ET, and Sunday, 12 noon to 6 p.m. ET. In order to provide better 
service to the public, all calls to the hotline are recorded. You can 
also use the Form 175 ``Support'' feature to obtain contact 
information.
ii. Completion of the FCC Form 175
    66. 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 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 public notice 
provide information on the required attachments and appropriate 
formats.
iii. Electronic Review of FCC Form 175
    67. The FCC Form 175 electronic Search feature 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. 39 Public 
Notice for details on accessing the review system.

C. Application Processing and Minor Corrections

    68. After the deadline for filing the FCC Form 175 applications has 
passed, 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 
(including FCC account numbers and the licenses for which they 
applied); (ii) those applications rejected; and (iii) those 
applications which have minor defects that may be corrected, and the 
deadline for filing such corrected applications. As described more 
fully in the Commission's rules, after the May 4, 2001, short-form 
filing deadline, applicants may make only minor corrections to their 
FCC Form 175 applications.

D. Upfront Payments--Due May 18, 2001

    69. In order to be eligible to bid in the auction, applicants must 
submit an upfront payment accompanied by an 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 (Revised 2/00) that 
can be printed and faxed to Mellon Bank in Pittsburgh, PA. All upfront 
payments must be received at Mellon Bank by 6 p.m. ET on May 18, 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. 39 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 May 18, 
2001, deadline

[[Page 20300]]

will result in dismissal of the application and disqualification from 
participation in the auction.
i. Making Auction Payments by Wire Transfer
    70. Wire transfer payments must be received by 6 p.m. ET on May 18, 
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 910-0171
OBI Field: (Skip one space between each information item)
``Auctionpay''
Taxpayer Identification No.: (same as FCC Form 159, block 12)
Payment Type Code (enter ``A39U'')
FCC Code 1 (same as FCC Form 159, block 24A: ``39'')
Payer Name (same as FCC Form 159, block 2)
Lockbox No. # 358430

    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.

    71. Applicants must fax a completed FCC Form 159 (Revised 2/00) to 
Mellon Bank at (412) 209-6045 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. 39.'' Bidders should confirm timely receipt of their 
upfront payment at Mellon Bank by contacting their sending financial 
institution.
ii. FCC Form 159
    72. A completed FCC Remittance Advice Form (FCC Form 159, Revised 
2/00) must be faxed to Mellon Bank in order to accompany 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 to the 
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
    73. In the Auction No. 39 Comment Public Notice, the Bureau 
proposed upfront payments for Auction No. 39 using the following 
formula:
     VHF Public Coast: Inland VPC Licenses: $.0075 * MHz * Pops 
(the result rounded up to the nearest hundred for results less than 
$10,000) with a minimum upfront payment of $2,500 per license.
     LMS:

    Block A: $0.0004 * MHz * Pops (the result rounded up to the nearest 
hundred for results less than $10,000) with a minimum upfront payment 
of $1,000 per license.
    Block B: $0.0005 * MHz * Pops (the result rounded up to the nearest 
hundred for results less than $10,000) with a minimum upfront payment 
of $1,000 per license.
    Block C: $0.0005 * MHz * Pops (the results rounded up to the 
nearest hundred for results less than $10,000 and to the nearest 
thousand for results greater than $10,000) with a minimum upfront 
payment of $1,000 per license.

    74. Only one commenter addressed whether the Bureau should adopt 
its proposed formulae for calculating upfront payments for VHF Public 
Coast and LMS. Havens contends that the proposed formulae for 
calculating upfront payments for LMS is reasonable given the shared 
nature, encumbrances, issues and formative stage of LMS. In addition, 
Havens contends that proposed upfront payments for VHF Public Coast 
licenses should not exceed 50 percent of the initial upfront payments 
in the first VHF Public Coast auction, i.e., Auction No. 20. Havens 
contends that the markets that remain are worth less than one half the 
value of those sold in Auction No. 20.
    75. We adopt our proposed formulae for calculating upfront payments 
for VHF Public Coast and LMS. Upon review of prices for licenses 
awarded in the previous VHF Public Coast and LMS auctions, we find that 
the proposed upfront payments are appropriate when compared with the 
final prices of awarded licenses and bids received prior to the highest 
bids which were subsequently withdrawn (e.g., second highest bids). For 
more detailed information, please refer to section III.D.3 of the 
Auction No. 39 Public Notice.
iv. Applicant's Wire Transfer Information for Purposes of Refunds for 
Upfront Payments
    76. The Commission will use wire transfers for all Auction No. 39 
refunds. To ensure that refunds of upfront payments are processed in an 
expeditious manner, the Commission is requesting that all pertinent 
information as listed 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 May 4, 2001. The refund will be returned to the payer of 
record as identified on the FCC Form 159, unless otherwise indicated by 
such payer. 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
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.
D. Auction Registration
    77. 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.
    78. All qualified bidders are automatically registered for the 
auction. Registration materials will be distributed prior to the 
auction by two separate overnight mailings, each containing a portion 
of the confidential identification codes required to place bids. These 
mailings will be sent only to the contact person at the contact address 
listed in the FCC Form 175.
    79. 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 Friday, June 1, 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.
    80. Qualified bidders should note that lost login codes, passwords 
or bidder identification numbers can be replaced only by appearing in 
person at the FCC

[[Page 20301]]

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 replacement 
codes must call technical support prior to arriving at the FCC to 
arrange preparation of new codes.

E. Remote Electronic Bidding Software

    81. Qualified bidders are allowed to bid electronically or 
telephonically. If choosing to bid electronically, each bidder must 
purchase their own copy of the remote electronic bidding software. 
Electronic bids will only be accepted from those applicants purchasing 
the software. However, the software may be copied by the applicant for 
use by its authorized bidders at different locations. The price of the 
FCC's remote bidding software is $175.00 and must be ordered by Monday, 
May 21, 2001. For security purposes, the software is only mailed to the 
contact person at the contact address listed on the FCC Form 175. 
Please note that auction software is tailored to a specific auction, so 
software from prior auctions will not work for Auction No. 39. If 
bidding telephonically, the telephonic bidding phone number will be 
supplied in each Federal Express mailing containing the confidential 
login codes. Qualified bidders that do not purchase the software may 
only bid telephonically. To indicate your bidding preference, a FCC 
Bidding Preference/Remote Software Order Form can be accessed when 
submitting the FCC Form 175. Bidders should print this form, complete 
it, and fax it to (717) 338-2850. A manual copy of this form is also 
included as Attachment F in the public notice.

F. Mock Auction

    82. All qualified bidders will be eligible to participate in a mock 
auction on Monday, June 4, 2001. Details will be announced by public 
notice.

IV. Auction Event

    83. The first round of bidding for Auction No. 39 will begin on 
Wednesday, June 6, 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
    84. In the Auction No. 39 Comment Public Notice, we proposed to 
award all licenses in Auction No. 39 in a single, simultaneous 
multiple-round auction. We received no comment on this issue. 
Therefore, we conclude that it is operationally feasible and 
appropriate to auction the Public Coast and LMS licenses through a 
single, simultaneous multiple-round auction. Unless otherwise 
announced, bids will be accepted on all licenses in each round of the 
auction.
ii. Maximum Eligibility and Activity Rules
    85. In the Auction No. 39 Comment Public Notice, we proposed that 
the amount of the upfront payment submitted by a bidder would determine 
the initial maximum eligibility (as measured in bidding units) for each 
bidder. We received no comments on this issue.
    86. For Auction No. 39 we will adopt this proposal. The amount of 
the upfront payment submitted by a bidder determines the initial 
maximum eligibility (in bidding units) for each bidder. Note again that 
upfront payments are not attributed to specific licenses, but instead 
will be translated into bidding units to define a bidder's initial 
maximum eligibility. The total upfront payment defines the maximum 
number of bidding units on which the applicant will be permitted to bid 
and hold high bids.
    87. 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 maximum eligibility during each round of the 
auction.
    88. 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 ``Minimum Accepted Bids'' in 
part IV.B.(3)). The minimum required activity level is expressed as a 
percentage of the bidder's maximum bidding eligibility, and increases 
by stage as the auction progresses. Because these procedures have 
proven successful in maintaining the pace of previous auctions as set 
forth under ``Auction Stages'' in section IV.A.(4) and ``Stage 
Transitions'' in section IV.A.(5) of the Auction No. 39 Public Notice, 
we adopt them for Auction No. 39.
iii. Activity Rule Waivers and Reducing Eligibility
    89. In the Auction No. 39 Comment Public Notice, we proposed that 
each bidder in the auction would be provided five activity rule waivers 
that may be used in any round during the course of the auction. We 
received no comment on this issue.
    90. Based upon our experience in previous auctions, we adopt our 
proposal that each bidder be provided five activity rule waivers that 
may be used in any round during the course of the auction.
iv. Auction Stages
    91. In the Auction No. 39 Comment Public Notice, we proposed to 
divide the auction in two stages and employ an activity rule. We 
further proposed that, in each round of Stage One, a bidder desiring to 
maintain its current eligibility would 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 would be required to be active on at least 98 
percent of its current bidding eligibility. We received no comment on 
this issue.
    92. We conclude that the auction will be composed of two stages, 
which are each defined by an increasing activity rule. We will adopt 
our proposals for the activity rules. Listed are the activity levels 
for each stage of the auction. The FCC reserves the discretion to 
further alter the activity percentages before and/or during the 
auction.
    Stage One: In each round of Stage One, 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 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: In each round of Stage Two, 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

[[Page 20302]]

a reduction in the bidder's bidding eligibility in the next round of 
bidding (unless an activity rule waiver is used). In this final stage, 
reduced eligibility for the next round will be calculated by 
multiplying the sum of bidding units of the bidder's standing high bids 
and valid bids during the current round by ten-ninths (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 software's bidding 
module.

    Because the foregoing procedures have proven successful in 
maintaining proper pace in previous auctions, we adopt them for Auction 
No. 39.
v. Stage Transitions
    93. In the Auction No. 39 Comment Public Notice, we proposed that 
the auction would generally advance to the next stage (Stage Two) when 
the auction activity level, as measured by the percentage of bidding 
units receiving new high bids, is approximately 30 percent or below for 
three consecutive rounds of bidding. However, we further proposed that 
the Bureau would retain the discretion to change stages unilaterally by 
announcement during the auction. We received no comments on this 
subject.
    94. We adopt our proposal. Thus, the auction will start in Stage 
One. Under the FCC's general guidelines, the auction will start in 
Stage One and it will advance to the next stage (Stage Two) when, in 
each of three consecutive rounds of bidding, the high bid has increased 
on approximately 30 percent or less of the licenses being auctioned (as 
measured in bidding units). However, 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.
vi. Auction Stopping Rules
    95. For Auction No. 39, the Bureau proposed to 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.
    96. The Bureau also proposed a modified version of the simultaneous 
stopping rule. This 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.
    97. The Bureau further proposed retaining the discretion to keep an 
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).
    98. In addition, we proposed that the Bureau reserve the right to 
declare that the auction will end after a specified 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. We received no comment on this issue.
    99. Thus, we adopt all of the proposals concerning the auction 
stopping rules. Auction No. 39 will begin under the simultaneous 
stopping rule, and the Bureau will retain the discretion to invoke the 
other versions of the stopping rule. We believe that these stopping 
rules are most appropriate for Auction No. 39.
vii. Auction Delay, Suspension, or Cancellation
    100. In the Auction No. 39 Comment Public Notice, we proposed that, 
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. We received no comment on this issue. Because this approach 
has proven effective in resolving exigent circumstances in previous 
auctions, we will adopt our proposed auction cancellation rules. 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.

B. Bidding Procedures

i. Round Structure
    101. The initial bidding schedule will be announced in the public 
notice listing the qualified bidders, which is released approximately 
10 days before the start of the auction. This public notice 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. Details regarding round results formats and locations will 
also be included in the public notice.
    102. 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
    103. In the Auction No. 39 Comment Public Notice, the Bureau 
proposed to establish minimum opening bids for Auction No. 39 and to 
retain discretion

[[Page 20303]]

to lower the minimum opening bids. Specifically, for Auction No. 39, 
the Bureau proposed the following formula for minimum opening bids:
     VHF Public Coast: Inland VPC Licenses: $.011 * MHz * Pops 
(the result rounded up to the nearest hundred for results less than 
$10,000) with a minimum of no less than $2,500 per license.
     LMS: Block A: $0.0004 * MHz * Pops (the result rounded up 
to the nearest hundred for results less than $10,000) with a minimum of 
no less than $1,000 per license.
    Block B: $0.0005 * MHz * Pops (the result rounded up to the nearest 
hundred for results less than $10,000) with a minimum of no less than 
$1,000 per license.
    Block C: $0.0005 * MHz * Pops (the result rounded up to the nearest 
hundred for results less than $10,000 and to the nearest thousand for 
results greater than $10,000) with a minimum of no less than $1,000 per 
license.
    104. 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.
    105. Commenters were divided on whether the Bureau should adopt its 
proposed formulae for calculating minimum opening bids for LMS. Havens 
contends that the proposed formulae for calculating minimum opening 
bids for LMS is reasonable given the shared nature, encumbrances, 
issues and formative stage of LMS. Progeny contends that the Commission 
should lower its minimum opening bids. Progeny contends that, since 
this auction is a second auction and contains many smaller or rural 
markets that would be of little interest to new LMS entrants, the 
Commission should therefore err on the side of underestimating demand 
for this spectrum.
    106. One commenter addressed the proposed formulae for calculating 
minimum opening bids for VHF Public Coast. Havens contends that the 
proposed formulae for calculating minimum opening bids for VHF Public 
Coast should be reduced such that they do not exceed fifty percent of 
the minimum opening bids in the first auction for VHF Public Coast 
licenses, i.e., Auction No. 20. Havens contends that the markets that 
remain are worth less than half the price and contain smaller and less 
densely populated markets than those markets offered in Auction No. 20.
    107. We will adopt minimum opening bids for Auction No. 39, which 
are reducible at the discretion of the Bureau. We reiterate that upon 
review of prices for licenses awarded in the previous VHF Public Coast 
and LMS auctions, we find that the proposed minimum opening bids are 
appropriate when compared with the final prices of awarded licenses and 
bids received prior to the highest bids which were subsequently 
withdrawn (e.g., second highest bids). Congress has enacted a 
presumption that unless the Commission determines otherwise, minimum 
opening bids or reserve prices are in the public interest.
    108. As a final safeguard against unduly high pricing, minimum 
opening bids are reducible at the discretion of the Bureau. This will 
allow the Bureau flexibility to adjust the minimum opening bids if 
circumstances warrant. We emphasize, however, that 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 requests to reduce the minimum opening bid on 
specific licenses.
iii. Bid Increments and Minimum Accepted Bids
    109. In the Auction No. 39 Comment Public Notice, we proposed to 
use a smoothing methodology to calculate minimum bid increments. We 
further proposed to retain the discretion to change the minimum bid 
increment if circumstances so dictate. We received no comment on this 
issue.
    110. We will adopt our proposal for a smoothing formula. The 
smoothing methodology is designed to vary the increment for a given 
license between a maximum and minimum value based on the bidding 
activity on that license. This methodology allows the increments to be 
tailored to the activity level of a license, decreasing the time it 
takes for active licenses to reach their final value. The formula used 
to calculate this increment is included as Attachment G of the Auction 
No. 39 Public Notice.
    111. We adopt our proposal of initially setting the weighing factor 
at 0.5, the minimum percentage increment at 0.1 (10 percent of the 
license value), and the maximum at 0.2 (20 percent of the license 
value). The Bureau retains the discretion to change the minimum bid 
increment if it determines that circumstance so dictate. The Bureau 
will do so by announcement in the Automated Auction System. Under its 
discretion, the Bureau may also implement an absolute dollar floor for 
the bid increment to further facilitate a timely close of the auction. 
The Bureau may also use its discretion to adjust the minimum bid 
increment without prior notice if circumstances warrant.
iv. High Bids
    112. Each bid will be date- and time-stamped when it is entered 
into the FCC computer system. In the event of tied high bids (identical 
gross bid amounts) for a license during a round, the earliest of the 
tied bids will be the standing high bid at the end of the round. The 
bidding software allows bidders to make multiple submissions in a 
round. As each bid is individually date- and time-stamped according to 
when it was submitted, bids submitted by a bidder earlier in a round 
will have an earlier date and time stamp than bids submitted later in a 
round.
v. Bidding
    113. 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, and the date-and time-stamp of that bid reflects the latest 
time the bid was submitted.
    114. Please note that all bidding will take place remotely either 
through the automated bidding software 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. Normally, four to five minutes are necessary to 
complete a bid submission.) There will be no on-site bidding during 
Auction No. 39.
    115. A bidder's ability to bid on specific licenses in the first 
round of the auction is determined by three factors: (i) the licenses 
applied for on FCC Form 175, (ii) eligibility restrictions on those 
licenses, and (iii) the upfront payment amount deposited. The bid 
submission screens will be tailored for each bidder to include only 
those licenses for which the bidder applied on its FCC Form 175. A 
bidder also has the option to further tailor its bid submission screens 
to call up specified groups of licenses.
    116. The bidding software requires each bidder to login to the FCC 
auction system during the bidding round using the FCC account number, 
bidder identification number, and the confidential security codes 
provided in

[[Page 20304]]

the registration materials. Bidders are strongly encouraged to download 
and print bid confirmations after they submit their bids.
    117. The bid entry screen of the Automated Auction System software 
for Auction No. 39 allows bidders to place multiple increment bids. 
Specifically, high bids may be increased from one to nine bid 
increments. A single bid increment is defined as the difference between 
the standing high bid and the minimum acceptable bid for a license. The 
bidding software will display the bid increment for each license.
    118. To place a bid on a license, the bidder must increase the 
standing high bid by one to nine times the bid increment. This is done 
by entering a whole number between 1 and 9 in the bid increment 
multiplier (Bid Mult) field in the software. This value will determine 
the amount of the bid (Amount Bid) by multiplying the bid increment 
multiplier by the bid increment and adding the result to the high bid 
amount according to the following formula: Amount Bid = High Bid + (Bid 
Mult * Bid Increment).
    119. Thus, bidders may place a bid that exceeds the standing high 
bid by between one and nine times the bid increment. For example, to 
bid the minimum acceptable bid, which is equal to one bid increment, a 
bidder will enter ``1'' in the bid increment multiplier column and 
press submit.
    120. For any license on which the FCC is designated as the high 
bidder (i.e., a license that has not yet received a bid in the auction 
or where the high bid was withdrawn and a new bid has not yet been 
placed), bidders will be limited to bidding only the minimum acceptable 
bid. In both of these cases no increment exists for the licenses, and 
bidders should enter ``1'' in the Bid Mult field. Note that in this 
case, any whole number between 1 and 9 entered in the multiplier column 
will result in a bid value at the minimum acceptable bid amount. 
Finally, bidders are cautioned in entering numbers in the Bid Mult 
field because, as explained in the following section, a high bidder 
that withdraws its standing high bid from a previous round, even if 
mistakenly or erroneously made, is subject to bid withdrawal payments.
vi. Bid Removal and Bid Withdrawal
    121. In the Auction No. 39 Comment Public Notice, we proposed bid 
removal and bid withdrawal rules. With respect to bid withdrawals, we 
proposed limiting each bidder to withdrawals in no more than two rounds 
during the course of the auction. The two rounds in which withdrawals 
are utilized, we proposed, would be at the bidder's discretion.
    122. 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 license will be 
offered in the next round at the second highest bid price, which may be 
less than, or equal to, in the case of tie bids, the amount of the 
withdrawn bid, without any bid increment. The Commission will serve as 
a ``place holder'' on the license until a new acceptable bid is 
submitted on that license.
    123. 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 software, 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. This procedure, about which 
we received no comments, will enhance bidder flexibility during the 
auction. Therefore, we will adopt these procedures for Auction No. 39.
    124. 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).
    125. 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 auctions(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 bidder to 
most efficiently 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.
    126. In the Part 1 Fifth Report and Order, the Commission modified 
Sec. 1.2104(g)(1) of the 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 bid 
withdrawals. The 3 percent interim payment will be applied toward any 
final bid withdrawal payment that will be assessed at the close of the 
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
    127. Bids placed during a round will not be published until the 
conclusion of that bidding period. After a round closes, the Commission 
will compile reports of all bids placed, bids withdrawn, current high 
bids, new minimum accepted bids, and bidder eligibility status (bidding 
eligibility and activity rule waivers), and post the reports for public 
access. Reports reflecting bidders' identities and bidder 
identification numbers for Auction No. 39 will be available before and 
during the auction. Thus, bidders will know in advance of this auction 
the identities of

[[Page 20305]]

the bidders against which they are bidding.
viii. Auction Announcements
    128. The FCC will use auction announcements to announce items such 
as schedule changes and stage transitions. All FCC auction 
announcements will be available on the FCC remote electronic bidding 
system, as well as on the Internet.
ix. Maintaining the Accuracy of FCC Form 175 Information
    129. As noted in Part II.I., 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: Louis Sigalos, Deputy 
Chief, Auctions and Industry Analysis Division, Wireless 
Telecommunications Bureau, Federal Communications Commission, 445 12th 
Street, SW., Room 4-A668, Washington, DC 20554.
    130. A separate copy of the letter should be mailed to Kenneth 
Burnley, Auctions and Industry Analysis Division, Wireless 
Telecommunications Bureau, Federal Communications Commission, 445 12th 
Street, SW., Room 4-B524, Washington, DC 20554. Questions about other 
changes should be directed to Kenneth Burnley at (202) 418-0660.

V. Post-Auction Procedures

A. Down Payments and Withdrawn Bid Payments

    131. After bidding has ended, the Commission will issue a public 
notice declaring the auction closed, identifying the winning bids and 
bidders for each license, and listing withdrawn bid payments due.
    132. 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 and very small business bidding credits). See 
47 CFR 1.2107(b). In addition, by the same deadline all bidders must 
pay any withdrawn bid amounts due under 47 CFR 1.2104(g), as discussed 
in ``Bid Removal and Bid Withdrawal,'' section IV.B(6) of the Auction 
No. 39 Comment Public Notice.

B. Long-Form Application

    133. Within ten business days after release of the auction closing 
notice, winning bidders must electronically submit a properly completed 
long-form application and required exhibits for each license won 
through Auction No. 39. Winning bidders that are small or very small 
businesses must include an exhibit demonstrating their eligibility for 
small and very small business bidding credits. See 47 CFR 1.2112(b). 
Further filing instructions will be provided to auction winners at the 
close of the auction.

C. Tribal Land Bidding Credit

    134. 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.
    135. 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 specific performance criteria as set forth in 47 
CFR 1.2110(e).
    136. For additional information on the tribal land bidding credit, 
including how the amount of the credit is calculated, see Extending 
Wireless Telecommunications Services to Tribal Lands, Report and Order 
and Further Notice of Proposed Rule Making, FCC 00-209 released June 
30, 2000; 65 FR 47349 (August 2, 2000), Public Notice DA 00-2219, 
released September 28, 2000, entitled Wireless Telecommunications 
Bureau Announces Availability of Bidding Credits For Providing Wireless 
Services to Qualifying Tribal Lands, 15 FCC Rcd 18354; Public Notice DA 
00-2836, released December 14, 2000, entitled Wireless 
Telecommunications Bureau Releases Additional Information Regarding the 
Procedures for Obtaining a Tribal Lands Bidding Credit and List of 
Tribal Lands, 15 FCC Rcd 24838; Public Notice DA 01-613, released March 
8, 2001, entitled Wireless Telecommunications Bureau Announces 
Enhancements to the Universal Licensing System to Help Winning Bidders 
of FCC Auctions File for Tribal Land Bidding Credits and http://www.fcc.gov/wtb/auctions and click on Information on Tribal Land 
Bidding Credits.

D. Default and Disqualification

    137. 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 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

    138. All applicants that submitted upfront payments but were not 
winning bidders for a license in Auction No. 39 may be entitled to a 
refund of their remaining upfront payment balance after the conclusion 
of the auction. The refund will be returned to the payer of record as 
identified on the FCC Form 159, unless otherwise indicated by such 
payer. No refund will be made unless there are excess funds on deposit 
from that applicant after any applicable bid withdrawal payments have 
been paid.
    139. 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

[[Page 20306]]

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.
    140. 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.
Magaret Wiener,
Chief, Auctions and Industry Analysis Division, Wireless 
Telecommunications Bureau.
[FR Doc. 01-9833 Filed 4-19-01; 8:45 am]
BILLING CODE 6712-01-P