[Federal Register Volume 66, Number 226 (Friday, November 23, 2001)]
[Notices]
[Pages 58735-58740]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-29366]


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FEDERAL COMMUNICATIONS COMMISSION

[Report No. AUC-01-82-B (Auction No. 82); DA 01-2605]


Auction of Construction Permits for New Analog Television 
Stations Scheduled for February 5, 2002; Comment Sought on Reserve 
Prices or Minimum Opening Bids and Other Auction Procedural Issues

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This document announces the auction of four construction 
permits for new analog television stations to commence on February 5, 
2002.

DATES: Comments are due on or before November 26, 2001, and reply 
comments are due on or before December 3, 2001.

ADDRESSES: An original and four copies of all pleadings must be filed 
with the Commission's Secretary, Magalie Roman Salas, Office of the 
Secretary, Federal Communications Commission, Room TW-A325, 445 Twelfth 
Street, SW., Washington, DC 20054, in accordance with Sec. 1.51(c) of 
the Commission's rules. In addition, commenters are requested to fax a 
courtesy copy of their comments and reply comments to the attention of 
Kathy Garland at (717) 338-2850.

FOR FURTHER INFORMATION CONTACT: Video Services Division: Shaun Maher 
at (202) 418-1600. Auctions and Industry Analysis Division: Kenneth 
Burnley, Legal Branch at (202) 418-0660 and Linda Sanderson, Operations 
Branch at (717) 338-2888. Requests for information can also be e-mailed 
to [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Auction No. 82 
Comment Public Notice released November 9, 2001. The complete text of 
the Auction No. 82 Comment Public Notice, including attachments, is 
available for public inspection and copying during regular business 
hours at the FCC Reference Information Center, Portals II, 445 12th 
Street, SW., Room CY-A257, Washington, DC 20554. The Auction No. 82 
Comment Public Notice may also be purchased from the Commission's 
duplicating contractor, Qualex International, Portals II, 445 12th 
Street, SW., Room CY-B402, Washington, DC 20554, telephone 202-863-
2893, facsimile 202-863-2898, or via e-mail [email protected].
    1. By the Auction No. 82 Comment Public Notice, the Mass Media 
Bureau (``MMB'') and the Wireless Telecommunications Bureau (``WTB'') 
(collectively, ``Bureaus'') announce the auction of four construction 
permits for new analog television stations to commence on February 5, 
2002 (``Auction No. 82''). A list of the channels and communities of 
these stations is included as Attachment A of the Auction No. 82 
Comment Public Notice. These new television stations are the subject of 
pending, mutually exclusive short-form applications (FCC Form 175) 
filed on or before June 29, 2001. Pursuant to the Broadcast First 
Report and Order, 63 FR 48615 (September 11, 1998), participation in 
the auction will be limited to those applicants. A list of those 
applicants is also identified in Attachment A of the Auction No. 82 
Comment Public Notice.
    2. The Balanced Budget Act of 1997 requires the Commission to 
``ensure that, in the scheduling of any competitive bidding under this 
subsection, an adequate period is allowed * * * before issuance of 
bidding rules, to permit notice and comment on proposed auction 
procedures. * * *'' Consistent with the provisions of the Balanced 
Budget Act and to ensure that potential bidders have adequate time to 
familiarize themselves with the specific rules that will govern the 
day-to-day conduct of an auction, the Commission directed the Bureaus, 
under their existing delegated authority, to seek comment on a variety 
of auction-specific procedures prior to the start of each auction. The 
Bureaus therefore seek comment on the following issues relating to 
Auction No. 82.

I. Auction Structure

A. Multiple Round Auction Design

    3. The Bureaus propose to award these construction permits in a 
simultaneous multiple-round auction. As described further, this 
methodology offers every construction permit for bid at the same time 
with successive bidding rounds in which bidders may place bids. The 
Bureaus seek comment on this proposal.

B. Upfront Payments and Initial Maximum Eligibility

    4. The upfront payment is a refundable deposit made by each bidder 
to determine and establish eligibility to

[[Page 58736]]

bid on the construction permits being auctioned. For Auction No. 82, 
the Bureaus propose to make the upfront payments equal to the minimum 
opening bids, which are established based on similar facts as described 
in section II.B. The specific upfront payments for each construction 
permit are set forth in Attachment A of the Auction No. 82 Comment 
Public Notice. The Bureaus seek comment on this proposal.
    5. The upfront payment submitted by a bidder will determine the 
number of bidding units on which a bidder may place bids. This limit is 
a bidder's ``maximum initial eligibility.'' Each construction permit is 
assigned a specific number of bidding units equal to the upfront 
payment listed in Attachment A, on a bidding unit per dollar basis. 
This number does not change as prices rise during the auction. A bidder 
may place bids on multiple construction permits, if selected on the FCC 
Form 175, as long as the total number of bidding units associated with 
those construction permits does not exceed its maximum initial 
eligibility. Eligibility cannot be increased during the auction. Thus, 
in calculating its upfront payment amount, an applicant must determine 
the maximum number of bidding units it may wish to bid on (or hold high 
bids on) in any single round, and submit an upfront payment covering 
that number of bidding units. The Bureaus seek comment on this 
proposal.

C. Activity Rules

    6. An activity rule requires bidders to bid actively on a 
percentage of their current bidding eligibility and/or be the standing 
high bidder during each round of the auction rather than waiting until 
the end to participate. The Bureaus propose a single stage auction with 
the following activity requirement: In each round of the auction, a 
bidder desiring to maintain its eligibility to participate in the 
auction is required to be active on one hundred (100) percent of its 
bidding eligibility. Failure to maintain the requisite activity level 
will result in the use of an activity rule waiver, if any remain, or a 
reduction in the bidder's bidding eligibility. The Bureaus seek comment 
on this proposal.

D. Activity Rule Waivers and Reducing Eligibility

    7. Use of an activity rule waiver preserves the bidder's current 
bidding eligibility despite the bidder's activity in the current round 
being below the required activity level. An activity rule waiver 
applies to an entire round of bidding and not to a particular 
construction permit. Activity waivers are principally a mechanism for 
auction participants to avoid the loss of auction rather eligibility in 
the event that exigent circumstances prevent them from placing a bid in 
a particular round.
    8. The FCC auction system assumes that bidders with insufficient 
activity would prefer to use an activity rule waiver (if available) 
rather than lose bidding eligibility. Therefore, the system will 
automatically apply a waiver (known as an ``automatic waiver'') at the 
end of any bidding period where a bidder's activity is below the 
required activity level unless: (i) There are no activity rule waivers 
available; or (ii) the bidder overrides the automatic application of a 
waiver by reducing eligibility, thereby meeting the minimum 
requirements. If a bidder has no waivers remaining and does not satisfy 
the required activity level, the system will permanently reduce their 
current eligibility to bring them into compliance with the activity 
rule.
    9. A bidder with insufficient activity may wish to reduce its 
bidding eligibility rather than use an activity rule waiver. If so, the 
bidder must affirmatively override the automatic waiver mechanism 
during the bidding period by using the reduce eligibility function in 
the bidding system. In this case, the bidder's eligibility is 
permanently reduced to bring the bidder into compliance with the 
activity rules as described. Once eligibility has been reduced, a 
bidder will not be permitted to regain its lost bidding eligibility.
    10. A bidder may proactively use an activity rule waiver as a means 
to keep the auction open without placing a bid. If a bidder submits a 
proactive waiver (using the Proactive Waiver function in the bidding 
system) during a bidding period in which no bids or withdrawals are 
submitted, the auction will remain open and the bidder's eligibility 
will be preserved. An automatic waiver invoked in a round in which 
there are no new valid bids will not keep the auction open.
    11. The Bureaus propose that each bidder in Auction No. 82 be 
provided with three activity rule waivers that may be used at the 
bidder's discretion during the course of the auction as set forth. The 
Bureaus seek comment on this proposal.

E. Information Relating to Auction Delay, Suspension or Cancellation

    12. For Auction No. 82, the Bureaus propose that, by public notice 
or by announcement during the auction, they may delay, suspend or 
cancel the auction in the event of natural disaster or national 
emergency, technical obstacle, evidence of an auction security breach, 
unlawful bidding activity, administrative or weather necessity, or for 
any other reason that affects the fair and competitive conduct of 
competitive bidding. In such cases, the Bureaus, in their sole 
discretion, may elect to resume the auction starting from the beginning 
of the current round, resume the auction starting from some previous 
round, or cancel the auction in its entirety. Network interruption may 
cause the Bureaus to delay or suspend the auction. The Bureaus 
emphasize that exercise of this authority is solely within its 
discretion and its use is not intended to be a substitute for 
situations in which bidders may wish to apply their activity rule 
waivers. The Bureaus seek comment on this proposal.

II. Bidding Procedures

A. Round Structure

    13. The Commission will use its Automated Auction System to conduct 
the electronic simultaneous multiple round auction format for Auction 
No. 82. Auction No. 82 will be conducted over the Internet. However, as 
in prior auctions, the FCC Wide Area Network will be available at the 
standard charge, and telephonic bidding will also be available. 
Prospective bidders concerned about their access to the Internet may 
want to establish a connection to the FCC Wide Area Network as a 
backup. Full information regarding how to establish such a connection, 
and related charges, will be provided in the public notice announcing 
details of auction procedures.
    14. In past auctions, the Bureaus have used the timing of bids to 
select a high bidder when multiple bidders submit identical high bids 
on a construction permit in a given round. Given that bidders will 
access the Internet at differing speeds, the Bureaus will not use this 
procedure in Auction No. 82. For Auction No. 82, the Bureaus propose to 
use a random number generator to select a high bidder from among such 
bidders. As with prior auctions, remaining bidders will be able to 
submit higher bids in subsequent rounds. The initial bidding schedule 
will be announced in a public notice to be released at least one week 
before the start of the auction, and will be included in the 
registration mailings. The simultaneous multiple round format will 
consist of sequential bidding rounds, each followed by the release of 
round results. Details regarding the location and format of round 
results will be included in the same public notice.

[[Page 58737]]

    15. The Bureaus have 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 Bureaus 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. The 
Bureaus seek comment on this proposal.

B. Reserve Price or Minimum Opening Bid

    16. The Balanced Budget Act calls upon the Commission to prescribe 
methods by which a reasonable reserve price will be required or a 
minimum opening bid established when FCC licenses or construction 
permits are subject to auction (i.e., when the Commission has accepted 
mutually exclusive applications for licenses or construction permits), 
unless the Commission determines that a reserve price or minimum bid is 
not in the public interest. Consistent with this mandate, the 
Commission has directed the Bureaus to seek comment on the use of 
minimum opening bids and/or reserve price prior to the start of each 
auction.
    17. Normally, a reserve price is an absolute minimum price below 
which an item will not be sold in a given auction. Reserve prices can 
be either published or unpublished. A minimum opening bid, on the other 
hand, is the minimum bid price set at the beginning of the auction 
below which no bids are accepted. It is generally used to accelerate 
the competitive bidding process. Also, in a minimum opening bid 
scenario, the auctioneer generally has the discretion to lower the 
amount later in the auction. It is also possible for the minimum 
opening bid and the reserve price to be the same amount.
    18. In light of the Balanced Budget Act's requirements, the Bureaus 
propose to establish a minimum opening bid for Auction No. 82. The 
Bureaus believe a minimum opening bid, which has been utilized in other 
auctions, is an effective bidding tool. A minimum opening bid, rather 
than a reserve price, will help to regulate the pace of the auction and 
provides flexibility.
    19. For Auction No. 82, the proposed minimum opening bid prices 
were determined by taking into account various factors related to the 
efficiency of the auction and the potential value of the spectrum, 
including the type of service, market size, industry cash flow data and 
recent broadcast transactions. The specific minimum opening bid for 
each construction permit is set forth in Attachment A of the Auction 
No. 82 Comment Public Notice. The Bureaus seek comment on this 
proposal.
    20. If commenters believe that these minimum opening bids will 
result in unsold construction permits, or are not reasonable amounts, 
or should instead operate as reserve prices, they should explain why 
this is so, and comment on the desirability of an alternative approach. 
Commenters are advised to support their claims with valuation analyses 
and suggested reserve prices or minimum opening bid levels or formulas. 
Alternatively, comment is sought on whether, consistent with the 
Balanced Budget Act, the public interest would be served by having no 
minimum opening bid or reserve price.

C. Minimum Accepted Bids and Bid Increments

    21. In each round, eligible bidders will be able to place bids on a 
given construction permit in any of nine different amounts. The 
Automated Auction System interface will list the nine acceptable bid 
amounts for each construction permit. Once there is a standing high bid 
on the construction permit, the Automated Auction System will calculate 
a minimum acceptable bid for that construction permit for the following 
round, as described. The difference between the minimum acceptable bid 
and the standing high bid for each construction permit will define the 
bid increment. The nine acceptable bid amounts for each construction 
permit consist of the minimum acceptable bid (the standing high bid 
plus one bid increment) and additional amounts calculated using 
multiple bid increments (i.e., the second bid amount equals the 
standing high bid plus two times the bid increment, the third bid 
amount equals the standing high bid plus three times the bid increment, 
etc.).
    22. Until a bid has been placed on a construction permit, the 
minimum acceptable bid for that construction permit will be equal to 
its minimum opening bid. The additional bid amounts for construction 
permits that have not yet received a bid will be calculated 
differently, as explained.
    23. For Auction No. 82, the Bureaus propose to calculate minimum 
acceptable bids by using a smoothing methodology, as they have done in 
several other auctions. The smoothing formula calculates minimum 
acceptable bids by first calculating a percentage increment, not to be 
confused with the bid increment, for each construction permit based on 
a weighted average of the activity received on each construction permit 
in all previous rounds. This methodology tailors the percentage 
increment for each construction permit based on activity, rather than 
setting a global increment for all construction permits.
    24. In a given round, the calculation of the percentage increment 
for each construction permit is made at the end of the previous round. 
The computation is based on an activity index, which is calculated as 
the weighted average of the activity in that round and the activity 
index from the prior round. The activity index at the start of the 
auction (round 0) will be set at 0. The current activity index is equal 
to a weighting factor times the number of new bids received on the 
construction permit in the most recent bidding round plus one minus the 
weighting factor times the activity index from the prior round. The 
activity index is then used to calculate a percentage increment by 
multiplying a minimum percentage increment by one plus the activity 
index with that result being subject to a maximum percentage increment. 
The Commission will initially set the weighting factor at 0.5, the 
minimum percentage increment at 0.1 (10%), and the maximum percentage 
increment at 0.2 (20%).
Equations
Ai = (C * Bi) + ( (1-C) * Ai-1)
Ii+1 = smaller of ( (1 + Ai) * N) and M
Xi+1 = Ii+1 * Yi
where,

Ai = activity index for the current round (round i)
C = activity weight factor
Bi = number of bids in the current round (round i)
Ai-1 = activity index from previous round (round i-1), 
A0 is 0
Ii+1 = percentage increment for the next round (round i+1)
N = minimum percentage increment or percentage increment floor
M = maximum percentage increment or percentage increment ceiling
Xi+1 = dollar amount associated with the percentage 
increment
Yi = high bid from the current round

    25. Under the smoothing methodology, once a bid has been received 
on a construction permit, the minimum acceptable bid for that 
construction permit in the following round will be the high bid from 
the current round plus the dollar amount associated with the percentage 
increment, with the result rounded to the nearest thousand if it is 
over $10,000, to the nearest hundred if it is under $10,000 but over 
$1,000, or to the nearest ten if it is below $1,000.
Examples
Construction Permit 1

[[Page 58738]]

C = 0.5, N = 0.1, M = 0.2

Round 1 (2 new bids, high bid = $1,000,000)

i. Calculation of percentage increment for round 2 using the smoothing 
formula:
    A1 = (0.5 * 2) + (0.5 * 0) = 1
    I2 = The smaller of ( (1 + 1) * 0.1) = 0.2 or 0.2 (the 
maximum percentage increment)
ii. Calculation of dollar amount associated with the percentage 
increment for round 2 (using I2):
    X2 = 0.2 * $1,000,000 = $200,000
iii. Minimum acceptable bid for round 2 = $1,200,000

Round 2 (3 new bids, high bid = $2,000,000)

i. Calculation of percentage increment for round 3 using the smoothing 
formula:
    A2 = (0.5 * 3) + (0.5 * 1) = 2
    I3 = The smaller of ( (1 + 2) * 0.1) = 0.3 or 0.2 (the 
maximum percentage increment)
ii. Calculation of dollar amount associated with the percentage 
increment for round 3 (using I3):
    X3 = 0.2 * $2,000,000 = $400,000
iii. Minimum acceptable bid for round 3 = $2,400,000

Round 3 (1 new bid, high bid = $2,400,000)

i. Calculation of percentage increment for round 4 using the smoothing 
formula:
    A3 = (0.5 * 1) + (0.5 * 2) = 1.5
    I4 = The smaller of ( (1 + 1.5) * 0.1) = 0.25 or 0.2 
(the maximum percentage increment)
ii. Calculation of dollar amount associated with the percentage 
increment for round 4 (using I4):
    X4 = 0.2 * $2,400,000 = $480,000
iii. Minimum acceptable bid for round 4 = $2,880,000

    26. As stated, until a bid has been placed on a construction 
permit, the minimum acceptable bid for that construction permit will be 
equal to its minimum opening bid. The additional bid amounts are 
calculated using the difference between the minimum opening bid times 
one plus the minimum percentage increment, rounded as described, and 
the minimum opening bid. That is, I = (minimum opening bid)(1 + 
N){rounded}-(minimum opening bid). Therefore, when N equals 0.1, the 
first additional bid amount will be approximately ten percent higher 
than the minimum opening bid; the second, twenty percent; the third, 
thirty percent; etc.
    27. In the case of a construction permit for which the standing 
high bid has been withdrawn, the minimum acceptable bid will equal the 
second highest bid received for the construction permit. The additional 
bid amounts are calculated using the difference between the second 
highest bid times one plus the minimum percentage increment, rounded, 
and the second highest bid.
    28. The Bureaus retain the discretion to change the minimum 
acceptable bids and bid increments if it determines that circumstances 
so dictate. The Bureaus will do so by announcement in the Automated 
Auction System. The Bureaus seek comment on these proposals.

D. Information Regarding Bid Withdrawal and Bid Removal

    29. For Auction No. 82, the Bureaus propose the following bid 
removal and bid withdrawal procedures. Before the close of a bidding 
period, a bidder has the option of removing any bid placed in that 
round. By using the Remove Selected Bids function in the bidding 
system, a bidder may effectively ``unsubmit'' any bid placed within 
that round. A bidder removing a bid placed in the same round is not 
subject to a withdrawal payment.
    30. Once a round closes, a bidder may no longer remove a bid. 
However, in any subsequent round, a high bidder may withdraw its 
standing high bids from previous rounds using the Withdraw function in 
the bidding system. A high bidder that withdraws its standing high bid 
from a previous round is subject to the bid withdrawal payment 
provisions of the Commission rules. The Bureaus seek comment on these 
bid removal and bid withdrawal procedures.
    31. The Bureaus propose to limit each bidder in Auction No. 82 to 
withdrawing standing high bids in no more than one round during the 
course of the auction. To permit a bidder to withdraw bids in more than 
one round would likely encourage insincere bidding or the use of 
withdrawals for anti-competitive purposes. The round in which 
withdrawals are utilized will be at the bidder's discretion; 
withdrawals otherwise must be in accordance with the Commission's 
rules. There is no limit on the number of standing high bids that may 
be withdrawn in the round in which withdrawals are utilized. 
Withdrawals will remain subject to the bid withdrawal payment 
provisions specified in the Commission's rules. The Bureaus seek 
comment on this proposal.

E. Stopping Rule

    32. For Auction No. 82, the Bureaus propose to employ a 
simultaneous stopping rule approach. The Bureaus have discretion ``to 
establish stopping rules before or during multiple round auctions in 
order to terminate the auction within a reasonable time.'' A 
simultaneous stopping rule means that all construction permits remains 
open until the first round in which no new acceptable bids, proactive 
waivers, or withdrawals are received. After the first such round, 
bidding closes simultaneously on all construction permits. Thus, unless 
circumstances dictate otherwise, bidding would remain open until 
bidding stops on all construction permits.
    33. However, the Bureaus propose to retain the discretion to 
exercise any of the following options during Auction No. 82:
    i. Utilize a modified version of the simultaneous stopping rule. 
The modified stopping rule would close the auction for all construction 
permits after the first round in which no bidder submits a proactive 
waiver, withdrawal, or a new bid on any construction permit on which it 
is not the standing high bidder. Thus, absent any other bidding 
activity, a bidder placing a new bid on a construction permit for which 
it is the standing high bidder would not keep the auction open under 
this modified stopping rule.
    ii. Keep the auction open even if no new acceptable bids or 
proactive waivers are submitted and no previous high bids are 
withdrawn. In this event, the effect will be the same as if a bidder 
had submitted a proactive waiver. The activity rule, therefore, will 
apply as usual, and a bidder with insufficient activity will either 
lose bidding eligibility or use a remaining activity rule waiver.
    iii. Declare that the auction will end after a specified number of 
additional rounds (``special stopping rule''). If the Bureaus invoke 
this special stopping rule, it will accept bids in the specified final 
round(s) only for construction permits on which the high bid increased 
in at least one of the preceding specified number of rounds.
    34. The Bureaus propose to exercise these options only in certain 
circumstances, such as, for example, where the auction is proceeding 
very slowly, there is minimal overall bidding activity, or it appears 
likely that the auction will not close within a reasonable period of 
time. Before exercising this option, the Bureaus are likely to attempt 
to increase the pace of the auction by, for example, increasing the 
number of bidding rounds per day, and/or increasing the amount of the 
minimum bid increments for the limited number of construction permits 
where there is still a high level of bidding

[[Page 58739]]

activity. The Bureaus seek comment on these proposals.

III. Due Diligence

    35. Potential bidders are solely responsible for investigating and 
evaluating all technical and market place factors that may have a 
bearing on the value of the television facilities in this auction. The 
FCC makes no representations or warranties about the use of this 
spectrum for particular services. Applicants should be aware that a FCC 
auction represents an opportunity to become a FCC permittee in the 
broadcast service, subject to certain conditions and regulations. A FCC 
auction does not constitute an endorsement by the FCC of any particular 
service, technology, or product, nor does a FCC construction permit or 
license constitute a guarantee of business success. Applicants should 
perform their individual due diligence before proceeding as they would 
with any new business venture.
    36. Potential bidders are strongly encouraged to conduct their own 
research prior to Auction No. 82 in order to determine the existence of 
pending proceedings that might affect their decisions regarding 
participation in the auction. Participants in Auction No. 82 are 
strongly encouraged to continue such research during the auction.
    37. Potential bidders should note that, in November 1999, Congress 
enacted the Community Broadcasters Protection Act of 1999 (CBPA) which 
established a new Class A television service. In response to the 
enactment of the CBPA, the Commission adopted rules to establish the 
new Class A television service. In the Class A Report and Order, the 
Commission adopted rules to provide interference protection for 
eligible Class A television stations from new full power television 
stations. Given the Commission's ruling in the Class A Report and 
Order, the winning bidders in Auction No. 82, upon submission of their 
long-form applications (FCC Form 301), will have to provide 
interference protection to qualified Class A television stations. 
Therefore, potential bidders are encouraged to perform engineering 
studies to determine the existence of Class A television stations and 
their effect on the ability to operate the full power television 
stations proposed in this auction. Information about the identity and 
location of Class A television stations is available from the Mass 
Media Bureau's Consolidated Database System (CDBS) (public access 
available at: http://www.fcc.gov/mmb) and on the Mass Media Bureau's 
Class A television web page: http://www.fcc.gov/mmb/vsd/files/classa.html.
    38. Potential bidders are also reminded that full service 
television stations are in the process of converting from analog to 
digital operation and that stations may have pending applications to 
construct and operate digital television facilities, construction 
permits and/or licenses for such digital facilities. Bidders should 
investigate the impact such applications, permits and licenses may have 
on their ability to operate the facilities proposed in this auction.

IV. Prohibition of Collusion

    39. Bidders are reminded that Sec. 1.2105(c) of the Commission's 
rules prohibits applicants for the same geographic license area from 
communicating with each other during the auction about bids, bidding 
strategies, or settlements unless they have identified each other as 
parties with whom they have entered into agreements under 
Sec. 1.2105(a)(2)(viii). For Auction No. 82, this prohibition became 
effective at the short-form application filing deadline on Friday, June 
29, 2001, and will end on the post-auction down payment deadline, which 
will be announced in a future public notice. If parties had agreed in 
principle on all material terms, those parties must have been 
identified on the short-form application under Sec. 1.2105(c), even if 
the agreement had not been reduced to writing. If parties had not 
agreed in principle by the filing deadline, an applicant should not 
have included the names of those parties on its application, and must 
not have continued negotiations with other applicants for licenses in 
the same geographic area.
    40. 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 
importance to that application. Thus, Sec. 1.65 requires an auction 
applicant to notify the Commission of any violation of the anti-
collusion rules upon learning of such violation. Bidders therefore are 
required to make such notification to the Commission immediately upon 
discovery. In the Competitive Bidding Seventh Report & Order, 66 FR 
54447 (October 29, 2001), the Commission amended Sec. 1.2105 to require 
auction applicants to report prohibited communications in writing to 
the Commission immediately, but in no case later than five business 
days after the communication occurs.

V. Maintaining the Accuracy of FCC Form 175 Information

    41. As noted in the Auction No. 82 Filing Window Public Notice, 66 
FR 33699 (June 25, 2001), 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. At this time, filers must submit a letter 
summarizing the changes to: Margaret Wiener, Chief, Auctions and 
Industry Analysis Division, Wireless Telecommunications Bureau, Federal 
Communications Commission, 445 12th Street, SW, Room 4-A760, 
Washington, DC 20554.
    42. A separate copy of the letter should be mailed to Shaun Maher, 
Video Services Division, Mass Media Bureau, Federal Communications 
Commission, 445 12th Street, SW, Room 2-A820, Washington, DC 20554 and 
faxed to the attention of Kathryn Garland at (717) 338-2850. Questions 
about other changes should be directed to Shaun Maher at (202) 418-
1600.

VI. Conclusion

    43. Comments are due on or before November 26, 2001, and reply 
comments are due on or before December 3, 2001. An original and four 
copies of all pleadings must be filed with the Commission's Secretary, 
Magalie Roman Salas, Office of the Secretary, Federal Communications 
Commission, Room TW-A325, 445 Twelfth Street, SW., Washington, DC 
20054, in accordance with Sec. 1.51(c) of the Commission's rules. See 
47 CFR 1.51(c). In addition, one copy of each pleading must be 
delivered to each of the following locations: (i) The Commission's 
duplicating contractor, Qualex International, Portals II, 445 12th 
Street, SW, Room CY-B402, Washington, DC 20554; (ii) Office of Media 
Relations, Public Reference Center, 445 Twelfth Street, SW., Suite CY-
A257, Washington, DC 20554; (iii) Rana Shuler, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, 445 Twelfth 
Street, SW., Suite 4-A628, Washington, DC 20554; (iv) Shaun Maher, 
Video Services Division, Mass Media Bureau, 445 Twelfth Street, SW., 
Suite 2-A820, Washington, DC 20554. Applicants that send their comments 
via Federal Express or any other express mail service should use the 
zip code ``20024.'' Hand-delivered or messenger-delivered comments will 
be accepted at

[[Page 58740]]

9300 East Hampton Drive, Capital Heights, Maryland, 20743. Comments and 
reply comments will be available for public inspection during regular 
business hours in the FCC Public Reference Room, Room CY-A257, 445 12th 
Street, SW., Washington, DC 20554. In addition, the Bureaus request 
that commenters fax a courtesy copy of their comments and reply 
comments to the attention of Kathryn Garland at (717) 338-2850.
    44. This proceeding has been designated as a ``permit-but-
disclose'' proceeding in accordance with the Commission's ex parte 
rules. Persons making oral ex parte presentations are reminded that 
memoranda summarizing the presentations must contain summaries of the 
substance of the presentations and not merely a listing of the subjects 
discussed. More than a one or two sentence description of the views and 
arguments presented is generally required. Other rules pertaining to 
oral and written ex parte presentations in permit-but-disclose 
proceedings are set forth in Sec. 1.1206(b) of the Commission's rules.

Federal Communications Commission.
Margaret Wiener,
Chief, Auctions and Industry Analysis Division, WTB.
[FR Doc. 01-29366 Filed 11-21-01; 8:45 am]
BILLING CODE 6712-01-P