[Federal Register Volume 67, Number 9 (Monday, January 14, 2002)]
[Notices]
[Pages 1760-1769]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-872]


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FEDERAL COMMUNICATIONS COMMISSION

[Report No. AUC-01-82-C (Auction No. 82); DA 01-2882]


Auction No. 82 Construction Permits for New Analog Television 
Stations Scheduled for February 5, 2002; Notice and Filing 
Requirements, Minimum Opening Bids, Upfront Payments and Other 
Procedural Issues

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This document announces the procedures and minimum opening 
bids for the upcoming auction of licenses in the Construction Permits 
for New Analog Television Stations scheduled for February 5, 2002.

DATES: Auction No. 82 is scheduled for February 5, 2002.

FOR FURTHER INFORMATION CONTACT: Auctions and Industry Analysis 
Division: Kenneth Burnley, Legal Branch, or Jeff Crooks, Auctions 
Operations Branch, at (202) 418-0660; Linda Sanderson, Auctions 
Operations Branch at (717) 338-2888. Media Contact: Meribeth McCarrick 
at (202) 418-0654. Video Services Division: Shaun Maher at (202) 418-
1600.

SUPPLEMENTARY INFORMATION: This is a summary of the Auction No. 82 
Procedures Public Notice released on December 13, 2001. The complete 
text of the Auction No. 82 Procedures 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 Procedures 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].

I. General Information

A. Introduction

    1. This public notice announces the procedures and minimum opening 
bids for the upcoming auction of construction permits for new analog 
television stations (``Auction No. 82''). On November 9, 2001, in 
accordance with the Balanced Budget Act of 1997, the Mass Media Bureau 
(``MMB'') and the Wireless Telecommunications Bureau (``WTB'') 
(collectively, the ``Bureaus'') released the Auction No. 82 Comment 
Public Notice, 66 FR 58735 (November 23, 2001). This document sought 
comment on the establishment of reserve prices and/or minimum opening 
bids for Auction No. 82. In addition, the Bureaus sought comment on a 
number of procedures to be used in Auction No. 82. The Bureaus received 
four comments and no reply comments in response to the Auction No. 82 
Comment Public Notice. 
i. Construction Permits To Be Auctioned
    2. The construction permits available in Auction No. 82 include 
four new analog television stations. These construction permits are the 
subject of pending, mutually exclusive short-form applications (FCC 
Form 175) and participation in this auction is limited to the 
applicants identified in Attachment A of the Auction No. 82 Comment 
Public Notice. The minimum opening bids and upfront payments for these 
construction permits are also included on Attachment A of the Auction 
No. 82 Comment Public Notice. 

B. Rules and Disclaimers

i. Relevant Authority
    3. Prospective bidders must familiarize themselves thoroughly with 
the Commission's rules relating to broadcast auctions, contained in 
title 47, part 73 of the Code of Federal Regulations. Prospective 
bidders must also be thoroughly familiar with the procedures, terms and 
conditions contained in the Auction No. 82 Procedures Public Notice, 
the Auction No. 82 Comment Public Notice, the Broadcast First Report 
and Order, 63 FR 48615 (September 11, 1998), the Broadcast 
Reconsideration Order, 64 FR 24523 (May 7, 1999), and the New Entrant 
Bidding Credit Reconsideration Order, 64 FR 44856 (August 18, 1999). 
Potential bidders must also familiarize themselves with part 1, subpart 
Q of the Commission's rules concerning competitive bidding proceedings.
    4. The terms contained in the Commission's rules, relevant orders, 
and public notices are not negotiable. The Commission may amend or 
supplement the information contained in our public notices at any time, 
and will issue public notices to convey any new or supplemental 
information to bidders. It is the responsibility of all

[[Page 1761]]

prospective bidders to remain current with all Commission rules and 
with all public notices pertaining to this auction. Copies of most 
Commission documents, including public notices, can be retrieved from 
the FCC Auctions Internet site at http://wireless.fcc.gov/auctions. 
Additionally, documents are 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 
or may 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]. When ordering documents from Qualex, 
please provide the appropriate FCC number (for example, FCC 98-194 for 
the Broadcast First Report and Order and FCC 99-74 for the Broadcast 
Reconsideration Order).
ii. Prohibition of Collusion
    5. Bidders are reminded that Sec. 1.2105(c) of the Commission's 
rules prohibits short-form applicants 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 further 
details regarding the anti-collusion rule, refer to the Auction Filing 
Window Public Notice, 66 FR 33699 (June 25, 2001), released May 25, 
2001. For Auction No. 82, this prohibition became effective at the 
short-form application deadline (June 29, 2001) and will end on the 
down payment due date after the auction (to be announced in a future 
public notice). Applicants certified compliance with Sec. 1.2105(c) 
when they signed their short-form applications. 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.
    6. Bidders in Auction No. 82 are encouraged not to use the same 
individual acting as an authorized bidder for any other applicant. 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/she is authorized to represent in the 
auction. A violation could similarly occur if the authorized bidders 
are different individuals employed by the same organization (e.g., law 
firm or consulting firm).
    7. 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. Bidders 
therefore are required to make such notification to the Commission 
immediately upon discovery.
    8. A summary listing of documents from the Commission and the 
Bureau addressing the application of the anti-collusion rules may be 
found in Attachment E of the Auction No. 82 Procedures Public Notice.
iii. Due Diligence
    9. Potential bidders are reminded that they 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 an FCC auction represents an opportunity to become an FCC 
permittee in the broadcast service, subject to certain conditions and 
regulations. An FCC auction does not constitute an endorsement by the 
FCC of any particular service, technology, or product, nor does an 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.
    10. 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.
    11. 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, 65 FR 
29985 (May 10, 2000), 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 application (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.
    12. 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.
    13. Bidders for the Columbia, South Carolina, station on Channel 47 
should note that there is pending a petition for rulemaking to change 
the DTV channel for WCSC-TV, Charleston, South Carolina, from Channel 
52 to Channel 47. Pending the outcome of the Channel 47 Charleston DTV 
rulemaking proceeding, bidders for Channel 47 at Columbia are advised 
that the construction permit for their facility will be conditioned on 
acceptance of interference from WCSC-DT, Channel 47, Charleston, South 
Carolina.
iv. Bidder Alerts
    14. 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

[[Page 1762]]

forfeitures, license revocations, exclusion from participation in 
future auctions, and/or criminal prosecution.
    15. As is the case with many business investment opportunities, 
some unscrupulous entrepreneurs may attempt to use Auction No. 82 to 
deceive and defraud unsuspecting investors. Common warning signals of 
fraud include the following:
     The first contact is a ``cold call'' from a telemarketer, 
or is made in response to an inquiry prompted by a radio or television 
infomercial.
     The offering materials used to invest in the venture 
appear to be targeted at IRA funds, for example by including all 
documents and papers needed for the transfer of funds maintained in IRA 
accounts.
     The amount of the minimum investment is less than $25,000.
     The sales representative makes verbal representations 
that: (a) The Internal Revenue Service (``IRS''), Federal Trade 
Commission (``FTC''), Securities and Exchange Commission (``SEC''), 
FCC, or other government agency has approved the investment; (b) the 
investment is not subject to state or federal securities laws; or (c) 
the investment will yield unrealistically high short-term profits. In 
addition, the offering materials often include copies of actual FCC 
releases, or quotes from FCC personnel, giving the appearance of FCC 
knowledge or approval of the solicitation.
    16. 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 may also call the FCC Consumer Center at (888) CALL-
FCC ((888) 225-5322).
v. National Environmental Policy Act (NEPA) Requirements
    17. Permittees must comply with the Commission's rules regarding 
the National Environmental Policy Act (NEPA). The construction of a 
broadcast antenna facility is a federal action and the permittee must 
comply with the Commission's NEPA rules for each such facility. The 
Commission's NEPA rules require, among other things, that the permittee 
consult with expert agencies having NEPA responsibilities, including 
the U.S. Fish and Wildlife Service, the State Historic Preservation 
Office, the Army Corp of Engineers and the Federal Emergency Management 
Agency (through the local authority with jurisdiction over 
floodplains). The permittee must prepare environmental assessments for 
facilities that may have a significant impact in or on wilderness 
areas, wildlife preserves, threatened or endangered species or 
designated critical habitats, historical or archaeological sites, 
Indian religious sites, floodplains, and surface features. The 
permittee must also prepare environmental assessments for facilities 
that include high intensity white lights in residential neighborhoods 
or excessive radio frequency emission.

C. Auction Specifics

i. Auction Date
    18. Auction No. 82 will begin on Tuesday, February 5, 2002. 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 construction permits will be conducted on 
each business day until bidding has stopped on all construction 
permits.
ii. Auction Title
    19. Auction No. 82--New Analog Television
iii. Bidding Methodology
    20. The bidding methodology for Auction No. 82 will be simultaneous 
multiple round bidding. The Commission will conduct this auction over 
the Internet. Telephonic bidding will also be available. As a 
contingency, the FCC Wide Area Network, which requires access to a 900 
number telephone service, will be available as well. Qualified bidders 
are permitted to bid telephonically or electronically.
iv. Pre-Auction Dates and Deadlines
    21. These are important dates relating to Auction No. 82:

Auction Seminar--January 8, 2002
Upfront Payments (via wire transfer)--January 14, 2002; 6:00 p.m. ET
Mock Auction--January 31, 2002
Auction Begins--February 5, 2002
v. Requirements for Participation
    22. Those wishing to participate in the auction must:
     Be listed on Attachment A of the Auction No. 82 Procedures 
Public Notice. 
     Submit a sufficient upfront payment and an FCC Remittance 
Advice Form (FCC Form 159) by 6 p.m. EST, January 14, 2002.
     Comply with all provisions outlined in the Auction No. 82 
Procedures Public Notice. 
vi. General Contact Information
    23. The following is a list of general contact information relating 
to Auction No. 82:

General Auction Information

    General Auction Questions, Seminar Registration, FCC Auctions 
Hotline, (888) 225-5322, Press Option #2, or direct (717) 338-2888, 
Hours of service: 8 a.m.-5:30 p.m. EST.

Auction Legal Information

    Auction Rules, Policies, Regulations, Auctions and Industry 
Analysis Division, Legal Branch (202) 418-0660.

Licensing Information

    Rules, Policies, Regulations, Licensing Issues, Due Diligence, 
Incumbency Issues, Video Services Division, (202) 418-1600.

Technical Support

    Electronic Filing, Automated Auction System, FCC Auctions Technical 
Support Hotline, (202) 414-1250 (Voice), (202) 414-1255 (TTY), Hours of 
service: Monday through Friday 7 a.m. to 10 p.m. EST, Saturday, 8 a.m. 
to 7 p.m., Sunday, 12 noon to 6 p.m.

Payment Information

    Wire Transfers, Refunds, FCC Auctions Accounting Branch, (202) 418-
1995, (202) 418-2843 (Fax).

Telephonic Bidding

    Will be furnished only to qualified bidders.

FCC Copy Contractor

    Additional Copies of Commission Documents, Qualex International, 
Portals II, 445 12th Street, SW., Room CY-B402, Washington, DC 20554, 
(202) 863-2893, (202) 863-2898 (Fax), [email protected] (e-mail).

Press Information

    Meribeth McCarrick (202) 418-0654.

FCC Forms

    (800) 418-3676 (outside Washington, DC), (202) 418-3676 (in the 
Washington Area), http://www.fcc.gov/formpage.html.

FCC Internet Sites

    http://www.fcc.gov, http://wireless.fcc.gov/auctions, http://wireless.fcc.gov/uls.

[[Page 1763]]

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

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

    24. As noted in the Auction No. 82 Comment Public Notice, and under 
47 CFR 1.65, applicants have an obligation 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 short-form 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 short-form application. 
Auction No. 82 applicants may file changes to their FCC Form 175 
applications by electronic mail sent to the following address: 
[email protected]. The Bureau prefers that any attachments be in a Word 
or pdf format. Documents filed by electronic mail must include a 
subject or caption referring to Auction No. 82. Filers must also 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.
    25. A separate copy of the letter should faxed to the attention of 
Kathryn Garland at (717) 338-2850. Questions about other changes should 
be directed to Kenneth Burnley at (202) 418-0660.
    26. In addition, applicants should make these changes to their FCC 
Form 175 applications on-line after release of the public notice 
explaining the status of the applications.

B. Electronic Review of Short ``Form Applications (FCC Form 175)

    27. As noted in the Auction Filing Window Public Notice, applicants 
may review their own and other applicants' completed FCC Form 175s 
after the FCC has issued a public notice concerning the status of the 
applications. The FCC Form 175 electronic review system will be 
available at that time, and may be used to locate and print applicants' 
FCC Form 175 information. Applicants will also be able to view other 
applicants' completed FCC Form 175 applications. There is no fee for 
accessing this system. Instructions for electronic review of FCC Form 
175 applications will be discussed in a future public notice.

C. Installment Payments

    28. Installment payment plans will not be available in Auction No. 
82.

III. Pre-Auction Procedures

A. Application Processing and Minor Corrections

    29. Before the auction seminar, the FCC will process all timely 
submitted applications to determine which are acceptable for filing, 
and subsequently will issue a public notice identifying: (i) Those 
applications accepted for filing; (ii) those applications rejected; and 
(iii) those applications which have minor defects that may be 
corrected, and the deadline for filing such corrected applications.
    30. As described more fully in the Commission's rules, after the 
short-form filing deadline, applicants may make only minor corrections 
to their FCC Form 175 applications. Applicants will not be permitted to 
make major modifications to their applications (e.g., change their 
construction permit selections, change the certifying official, change 
control of the applicant, or change bidding credit eligibility).

B. Auction Seminar

    31. On January 8, 2002, the FCC will sponsor a free seminar for 
Auction No. 82 at the Federal Communications Commission, located at 445 
12th Street, SW. (Room 3-B516), Washington, DC. The seminar will 
provide attendees with information about pre-auction procedures, 
conduct of the auction, FCC remote bidding software, and the broadcast 
service and auction rules. The seminar will also provide an opportunity 
for prospective bidders to ask questions of FCC staff.
    32. To register, complete Attachment B of the Auction No. 82 
Procedures Public Notice and submit it by Friday, January 4, 2002. 
Registrations are accepted on a first-come, first-served basis.
Upfront Payments--Due January 14, 2002
    33. 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 the FCC Form 175 becomes available 
electronically, filers will have access to an electronic version of the 
FCC Form 159 that can be printed and faxed to Mellon Bank in 
Pittsburgh, PA. All upfront payments must be received at Mellon Bank by 
6 p.m. EST on January 14, 2002.
    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. 82 go to a lockbox number 
different from the ones 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 January 14, 
2002 deadline will result in dismissal of the application and 
disqualification from participation in the auction.
i. Making Auction Payments by Wire Transfer
    34. Wire transfer payments must be received by 6 p.m. EST on 
January 14, 2002. 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/Account # 910-0180.
    OBI Field: (Skip one space between each information item).
    ``AUCTIONPAY''.
    TAXPAYER IDENTIFICATION NO. (same as FCC Form 159, block 12).
    PAYMENT TYPE CODE (same as FCC Form 159, Block 24A; A82U).
    FCC CODE 1 (same as FCC Form 159, block 28A: ``82'').
    PAYER NAME (same as FCC Form 159, block 2).
    LOCKBOX NO. # 358420.

    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.

    35. 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. 82.'' Bidders should confirm receipt of their upfront 
payment at Mellon Bank by contacting their sending financial 
institution.
ii. FCC Form 159
    36. 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 C to the 
Auction No. 82 Procedures Public Notice. An electronic version of the 
FCC Form 159 will be accessible after the FCC Form 175 becomes 
available

[[Page 1764]]

electronically. The FCC Form 159 can be completed electronically, but 
must be filed with Mellon Bank via facsimile.
iii. Amount of Upfront Payment
    37. In the Part 1 Order, Memorandum Opinion and Order, and Notice 
of Proposed Rule Making, 62 FR 13540 (March 21, 1997), the Commission 
delegated to the Bureau the authority and discretion to determine 
appropriate upfront payment(s) for each auction. In addition, in the 
Part 1 Fifth Report and Order, 65 FR 52401 (August 29, 2000), the 
Commission ordered that ``former defaulters,'' i.e., applicants that 
have ever been in default on any Commission license or have ever been 
delinquent on any non-tax debt owed to any Federal agency, be required 
to pay upfront payments fifty percent greater than non-``former 
defaulters.''
    38. In the Auction No. 82 Comment Public Notice, we proposed 
translating bidders' upfront payments to bidding units to define a 
bidder's maximum eligibility. In order to bid on a construction permit, 
otherwise qualified bidders who applied for that construction permit on 
Form 175 must have an eligibility level that meets or exceeds the 
number of bidding units assigned to that construction permit. At a 
minimum, therefore, an applicant's total upfront payment must be enough 
to establish eligibility to bid on at least one of the construction 
permits applied for on Form 175, or else the applicant will not be 
eligible to participate in the auction. An applicant does not have to 
make an upfront payment to cover all construction permits for which the 
applicant has applied on Form 175, but rather to cover the maximum 
number of bidding units that are associated with construction permits 
on which the bidder wishes to place bids and hold high bids at any 
given time.
    39. WyoMedia contends that the upfront payment for Scottsbluff, 
Nebraska should be reduced to between $41,000 and $46,000. WyoMedia 
provides community of license information for each permit in the 
auction and contends that parties interested in the Scottsbluff permit 
would be paying an upfront payment that is three times as much for 
other permits. WyoMedia urges the Bureaus to adopt an upfront payment 
that is consistent with those set for other permits. Based upon the 
information WyoMedia provides, we conclude that the upfront payment for 
Scottsbluff, Nebraska should be reduced to $50,000.
    40. The specific upfront payments and bidding units for each 
construction permit are set forth in Attachment A of the Auction No. 82 
Procedures Public Notice.
    41. In calculating its upfront payment amount, an applicant should 
determine the maximum number of bidding units it may wish to bid on in 
any single round, and submit an upfront payment covering that number of 
bidding units. In order to make this calculation, an applicant should 
add together the upfront payments for all construction permits on which 
it seeks to bid in any given round. Bidders should check their 
calculations carefully, as there is no provision for increasing a 
bidder's maximum eligibility after the upfront payment deadline.
    42. Former defaulters should calculate their upfront payment for 
all construction permits by multiplying the number of bidding units 
they wish to purchase by 1.5. In order to calculate the number of 
bidding units to assign to former defaulters, the Commission will 
divide the upfront payment received by 1.5 and round the result up to 
the nearest bidding unit.

    Note: An applicant's actual bidding in any round will be limited 
by the bidding units reflected in its upfront payment, in 
conjunction with the selections made on the FCC Form 175.

iv. Applicant's Wire Transfer Information for Purposes of Refunds
    43. The Commission will use wire transfers for all Auction No. 82 
refunds. To ensure that refunds of upfront payments are processed in an 
expeditious manner, the Commission is requesting that all pertinent 
information as listed below be supplied to the FCC. Applicants can 
provide the information electronically after the FCC Form 175 becomes 
available for review. 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 January 
14, 2002. All refunds will be returned to the payer of record as 
identified on the FCC Form 159 unless the payer submits written 
authorization instructing otherwise. For additional information, please 
call (202) 418-1995.
    Name of Bank.
    ABA Number.
    Contact and Phone Number.
    Account Number to Credit.
    Name of Account Holder.
    Taxpayer Identification Number (see below).
    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 Section V.D.

C. Auction Registration

    44. 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 
construction permits for which they applied.
    45. All qualified bidders are automatically registered for the 
auction. Registration materials will be distributed prior to the 
auction by two separate overnight mailings, one containing the 
confidential bidder identification number (BIN) required to place bids 
and the other containing the SecurID cards. These mailings will be sent 
only to the contact person at the contact address listed in the FCC 
Form 175.
    46. 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 Tuesday, January 29, 2002, 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.
    47. Qualified bidders should note that lost bidder identification 
numbers or SecurID cards can be replaced only by appearing in person at 
the FCC Auction Headquarters located at 445 12th Street, 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 replacements. Qualified bidders 
requiring replacements must call technical support prior to arriving at 
the FCC.

D. Electronic Bidding

    48. The Commission will conduct this auction over the Internet. 
Telephonic bidding will also be available. As a contingency, the FCC 
Wide Area Network, which requires access to a 900 number telephone 
service, will be available as well. Qualified bidders are permitted to 
bid telephonically or electronically, i.e., over the Internet or the 
FCC's Wide Area Network. In either case, each authorized bidder must 
have

[[Page 1765]]

its own Remote Security Access SecurID card, which the FCC will provide 
at no charge. Each applicant with less than three authorized bidders 
will be issued two SecurID cards, while applicants with three 
authorized bidders will be issued three cards. For security purposes, 
the SecurID cards are only mailed to the contact person at the contact 
address listed on the FCC Form 175. Please note that each SecurID card 
is tailored to a specific auction, therefore, SecurID cards issued for 
other auctions or obtained from a source other than the FCC will not 
work for Auction No. 82. The telephonic bidding phone number will be 
supplied in the first Federal Express mailing of the confidential 
bidder identification number. Your bidding preference--electronic or 
telephonic--can be specified on the FCC Form 175 during the resubmit 
window.
    49. Please note that the SecurID cards can be recycled, and we 
encourage bidders to return the cards to the FCC. We will provide pre-
addressed envelopes that bidders may use to return the cards once the 
auction is over.

E. Mock Auction

    50. All qualified bidders will be eligible to participate in a mock 
auction on Thursday, January 31, 2002. The mock auction will enable 
applicants to become familiar with the electronic system prior to the 
auction. Participation by all bidders is strongly recommended. Details 
will be announced by public notice.

IV. Auction Event

    51. The first round of bidding for Auction No. 82 will begin on 
Tuesday, February 5, 2002. 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.

A. Auction Structure

i. Simultaneous Multiple Round Auction
    52. In the Auction No. 82 Comment Public Notice, we proposed to 
award all construction permits in a single, simultaneous multiple round 
auction. We received no comments on this issue. We therefore conclude 
that it is operationally feasible and appropriate to auction the new 
analog television station construction permits through a single, 
simultaneous multiple round auction. Unless otherwise announced, bids 
will be accepted on the construction permits in each round of the 
auction.
ii. Maximum Eligibility and Activity Rules
    53. In the Auction No. 82 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.
    54. For Auction No. 82, we 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 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. The total upfront payment defines the maximum number 
of bidding units on which the applicant will be permitted to bid and 
hold high bids. As there is no provision for increasing a bidder's 
maximum eligibility during the course of an auction, prospective 
bidders are cautioned to calculate their upfront payments carefully. 
The total upfront payment does not affect the total dollars a bidder 
may bid on any given construction permit.
    55. In addition, we received no comments on our proposal for a 
single stage auction. Therefore, in order to ensure that the auction 
closes within a reasonable period of time, we adopt our proposal with 
the following activity requirements: a bidder must either place a valid 
bid and/or be the standing high bidder during each round of the auction 
rather than wait until the end before participating. A bidder is 
required to be active on 100 percent of their 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.
iii. Activity Rule Waivers and Reducing Eligibility
    56. In the Auction No. 82 Comment Public Notice, we proposed that 
each bidder in the auction would be provided three activity rule 
waivers that may be used in any round during the course of the auction. 
We received no comments on this issue.
    57. Based upon our experience in previous auctions, we adopt our 
proposal that each bidder be provided three activity rule waivers that 
may be used in any round during the course of the auction. Use of an 
activity rule waiver preserves the bidder's current bidding eligibility 
despite the bidder's activity in the current round being below the 
required minimum level. We are satisfied that our practice of providing 
three waivers over the course of the auction provides a sufficient 
number of waivers and maximum flexibility to the bidders, while 
safeguarding the integrity of the auction.
    58. The FCC Automated 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 round where a bidder's activity level is below the 
minimum required unless: (i) there are no activity rule waivers 
available; or (ii) the bidder overrides the automatic application of a 
waiver by reducing eligibility, thereby meeting the minimum 
requirements. If a bidder has no waivers remaining and does not satisfy 
the required activity level, the current eligibility will be 
permanently reduced, possibly eliminating them from the auction.
    59. A bidder with insufficient activity that wants to reduce its 
bidding eligibility rather than use an activity rule waiver must 
affirmatively override the automatic waiver mechanism during the round 
by using the reduce eligibility function in the bidding system. In this 
case, the bidder's eligibility is permanently reduced to bring the 
bidder into compliance with the activity rules (see Part IV.A.ii). Once 
eligibility has been reduced, a bidder will not be permitted to regain 
its lost bidding eligibility.
    60. Finally, a bidder may proactively use an activity rule waiver 
as a means to keep the auction open without placing a bid. If a bidder 
submits a proactive waiver (using the proactive waiver function in the 
bidding system) during a round in which no bids are submitted, the 
auction will remain open and the bidder's eligibility will be 
preserved. However, an automatic waiver triggered during a round in 
which there are no new valid bids or withdrawals will not keep the 
auction open. Note: Once a proactive waiver is placed during a round, 
that waiver cannot be unsubmitted.
iv. Auction Stopping Rules
    61. For Auction No. 82, the Bureaus proposed to employ a 
simultaneous stopping rule. Under this rule, bidding will remain open 
on all construction permits until bidding stops on every construction 
permit. The auction will close for all construction permits when

[[Page 1766]]

one round passes during which no bidder submits a new acceptable bid on 
any construction permit, applies a proactive waiver, or withdraws a 
previous high bid. After the first such round, bidding closes 
simultaneously on all construction permits.
    62. The Bureaus also proposed retaining discretion to implement a 
modified version of the simultaneous stopping rule. The modified 
version will close the auction for all construction permits after the 
first round in which no bidder submits a proactive waiver, a 
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 will not keep the auction open under this modified 
stopping rule.
    63. The Bureaus further proposed retaining the discretion to keep 
the auction open even if no new acceptable bids or proactive waivers 
are submitted and no previous high bids are withdrawn in a round. In 
this event, the effect will be the same as if a bidder had submitted a 
proactive waiver. Thus, the activity rule will apply as usual, and a 
bidder with insufficient activity will either lose bidding eligibility 
or use an activity rule waiver (if any remain).
    64. In addition, we proposed that the Bureaus reserve the right to 
declare that the auction will end after a designated number of 
additional rounds (``special stopping rule''). If the Bureaus invoke 
this special stopping rule, it will accept bids in the final round(s) 
only for construction permits 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 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 
adjusting the amount of the minimum bid increments for the construction 
permits.
    65. We received no comments on the subject, therefore, we adopt all 
of the proposals concerning the auction stopping rules. Auction No. 82 
will begin under the simultaneous stopping rule, and the Bureaus 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. 82, because our experience in prior auctions demonstrates 
that the auction stopping rules balance the interests of administrative 
efficiency and maximum bidder participation.
v. Auction Delay, Suspension, or Cancellation
    66. In the Auction No. 82 Comment Public Notice, we proposed that, 
by public notice or by announcement during the auction, the Bureaus 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 conduct of competitive bidding.
    67. Because this approach has proven effective in resolving exigent 
circumstances in previous auctions, we adopt our proposed auction 
cancellation rules. By public notice or by announcement during the 
auction, the Bureaus may delay, suspend or cancel the auction in the 
event of natural disaster, technical obstacle, evidence of an auction 
security breach, unlawful bidding activity, administrative or weather 
necessity, or for any other reason that affects the fair and 
competitive conduct of competitive bidding. In such cases, the 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. We 
emphasize that exercise of this authority is solely within the 
discretion of the Bureaus, and its use is not intended to be a 
substitute for situations in which bidders may wish to apply their 
activity rule waivers.

B. Bidding Procedures

i. Round Structure
    68. 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 with 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 result formats and locations will 
also be included in the qualified bidders public notice referenced.
    69. 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
    70. Background. 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., because they are 
mutually exclusive), unless the Commission determines that a reserve 
price or minimum opening bid is not in the public interest. Consistent 
with this mandate, the Commission directed the Bureaus to seek comment 
on the use of a minimum opening bid and/or reserve price prior to the 
start of each auction. Among other factors, the Bureaus must consider 
the amount of spectrum being auctioned, levels of incumbency, the 
availability of technology to provide service, the size of the 
geographic service areas, the extent of interference with other 
spectrum bands, and any other relevant factors that could have an 
impact on valuation of the spectrum being auctioned. The Commission 
concluded that the Bureaus should have the discretion to employ either 
or both of these mechanisms for future auctions.
    71. Congress has enacted a presumption that unless the Commission 
determines otherwise, minimum opening bids or reserve prices are in the 
public interest. Based on our experience in using minimum opening bids 
in other auctions, we believe that minimum opening bids speed the 
course of the auction and ensure that valuable assets are not sold for 
nominal prices, without unduly interfering with the efficient 
assignment of construction permits.
    72. In the Auction No. 82 Comment Public Notice, the Bureaus 
proposed to establish minimum opening bids for Auction No. 82 and to 
retain discretion to lower the minimum opening bids. Specifically, for 
Auction No. 82, the Bureaus proposed calculating the minimum opening 
bid based on the potential value of the spectrum, including the type of 
service, market size, industry cash flow data and recent broadcast 
transactions. Three commenters challenged the minimum opening bids 
proposed for this auction. WyoMedia Corp. challenged the minimum 
opening bid for Scottsbluff,

[[Page 1767]]

Nebraska, asking that it be reduced to between $41,000 and $46,000. 
WyoMedia contends that those parties interested in the Scottsbluff 
permit would be paying a minimum opening bid that is three times as 
much for other permits. WyoMedia urges the Bureaus to adopt a minimum 
opening bid that is consistent with those set for other permit. Hubbard 
contends that $250,000 is a more reasonable value for the minimum 
opening bid for Pittsfied, Massachusetts. Powell Meredith requests that 
all, of the minimum opening bids be reduced since the costs of 
constructing new television stations have increased. We agree that 
minimum opening bids for Scottsbluff, Nebraska should be reduced to 
$50,000. However, we do not find that the commenters have justified 
reducing the minimum opening bids for other permits. Therefore only the 
minimum opening bids for Scottsbluff, Nebraska will be reduced.
iii. Bid Increments and Minimum Accepted Bids
    73. In the Auction No. 82 Comment Public Notice, we proposed to use 
a smoothing methodology to calculate minimum acceptable bids. We 
further proposed to retain the discretion to change the minimum 
acceptable bids and bid increments if circumstances so dictate. We 
received no comment on this issue. We adopt our proposal for a 
smoothing formula. The smoothing methodology is designed to vary the 
increment for a given construction permit between a maximum and minimum 
value based on the bidding activity on that construction permit. This 
methodology allows the increments to be tailored to the activity level 
of a construction permit, decreasing the time it takes for active 
construction permits to reach their final value. The formula used to 
calculate this increment is included as Attachment D of the Auction No. 
82 Procedures Public Notice.
    74. We adopt our proposal of initially setting the weighing factor 
at 0.5, the minimum percentage increment at 0.1 (10 percent), and the 
maximum at 0.2 (20 percent). The Bureaus retains the discretion to 
change the minimum acceptable bids and bid increments if it determines 
that circumstance so dictate. The Bureaus will do so by announcement in 
the Automated Auction System. Under its discretion, the Bureaus may 
also implement an absolute dollar floor for the bid increment to 
further facilitate a timely close of the auction. The Bureaus may also 
use its discretion to adjust the minimum bid increment without prior 
notice if circumstances warrant. The Bureaus also retains the 
discretion to use alternate methodologies, such as a flat percentage 
increment for all construction permits, for Auction No. 82 if 
circumstances warrant.
iv. High Bids
    75. At the end of each round, the Automated Auction System 
determines the standing high bid for each construction permit based on 
the gross dollar amounts of the bids received for each construction 
permit.
    76. In the case of tied high bids, a pseudo-random generator will 
be used to determine the standing high bid. A random number will be 
assigned to each bid. The tie bid having the highest random number will 
become the standing high bid.
v. Bidding
    77. During a bidding round, a bidder may submit bids for as many 
construction permits 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 construction 
permit in the same round, the system takes the last bid entered as that 
bidder's bid for the round.
    78. Please note that all bidding will take place remotely either 
through the Automated Auction System or by telephonic bidding. 
(Telephonic bid assistants are required to use a script when entering 
bids placed by telephone. Telephonic bidders are therefore reminded to 
allow sufficient time to bid by placing their calls well in advance of 
the close of a round. Normally, four to five minutes are necessary to 
complete a bid submission.) There will be no on-site bidding during 
Auction No. 82.
    79. A bidder's ability to bid on specific construction permits in 
the first round of the auction is determined by two factors: (1) the 
construction permits applied for on FCC Form 175 and (2) the upfront 
payment amount deposited. The bid submission screens will allow bidders 
to submit bids on only those construction permits for which the bidder 
applied on its FCC Form 175.
    80. The FCC Automated Auction System requires each bidder to be 
logged in during the bidding round using the bidder identification 
number provided in the registration materials, and the generated 
SecurID code. Bidders are strongly encouraged to print bid 
confirmations after they submit their bids.
    81. In each round, eligible bidders will be able to place bids on a 
given construction permit in any of nine different amounts. For each 
construction permit, the Automated Auction System interface will list 
the nine acceptable bid amounts in a drop-down box. Bidders may use the 
drop-down box to select from among the nine acceptable bid amounts. The 
Automated Auction System also includes an import function that allows 
bidders to upload text files containing their bid information.
    82. Once there is a standing high bid on a construction permit, the 
Automated Auction System will calculate a minimum acceptable bid for 
that construction permit for the following round. 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.).
    83. 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 are calculated using the 
difference between the minimum opening bid times one plus the minimum 
percentage increment, rounded, and the minimum opening bid. Therefore, 
when the minimum percentage increment 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.
vi. Bid Removal and Bid Withdrawal
    84. In the Auction No. 82 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 one round 
during the course of the auction. The one round in which withdrawals 
are utilized, we proposed, would be at the bidder's discretion. We 
received no comments on this issue.
    85. 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''

[[Page 1768]]

function in the bidding system, a bidder may effectively ``unsubmit'' 
any bid placed within that round. A bidder removing a bid placed in the 
same round is not subject to withdrawal payments. Removing a bid will 
affect a bidder's activity for the round in which it is removed, i.e., 
a bid that is subsequently removed does not count toward the bidder's 
activity requirement. This procedure, about which we received no 
comments, will enhance bidder flexibility during the auction. 
Therefore, we adopt these procedures for Auction No. 82.
    86. 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).

    Note: Once a withdrawal is placed during a round, that 
withdrawal cannot be unsubmitted.

    87. In previous auctions, we have detected bidder conduct that, 
arguably, may have constituted strategic bidding through the use of bid 
withdrawals. While we continue to recognize the important role that bid 
withdrawals play in an auction, i.e., reducing risk associated with 
efforts to secure various construction permits in combination, we 
conclude that, for Auction No. 82, adoption of a limit on their use to 
one round is the most appropriate outcome. By doing so we believe we 
strike a reasonable compromise that will allow bidders to use 
withdrawals. Our decision on this issue is based upon our experience in 
prior auctions, particularly the PCS D, E and F block auctions, and 800 
MHz SMR auction, and is in no way a reflection of our view regarding 
the likelihood of any speculation or ``gaming'' in this auction.
    88. The Bureaus will therefore limit the number of rounds in which 
bidders may place withdrawals to one round. This round will be at the 
bidder's discretion and there will be no limit on the number of bids 
that may be withdrawn in this round. 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 permit. If a high bid is withdrawn, the minimum accepted bid in 
the next round will be the prior round's second highest bid price, 
which may be less than, or equal to, in the case of tie bids, the 
amount of the withdrawn bid. 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. The 
Commission will serve as a ``place holder'' on the construction permit 
until a new acceptable bid is submitted on that construction permit
    89. 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 construction permit, 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 bidders most efficiently to allocate their resources 
as well as to evaluate their bidding strategies and business plans 
during an auction while, at the same time, maintaining the integrity of 
the auction process. The Bureaus retain the discretion to scrutinize 
multiple bid withdrawals on a single construction permit for evidence 
of anti-competitive strategic behavior and take appropriate action when 
deemed necessary.
    90. 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 withdrawn 
bids. The 3 percent interim payment will be applied toward any final 
bid withdrawal payment that will be assessed after subsequent auction 
of the license. Assessing an interim bid withdrawal payment ensures 
that the Commission receives a minimal withdrawal payment pending 
assessment of any final withdrawal payment. The Part 1 Fifth Report and 
Order provides specific examples showing application of the bid 
withdrawal payment rule.
vii. Round Results
    91. Bids placed during a round will not be published until the 
conclusion of that bidding period. After a round closes, the Bureaus 
will compile reports of all bids placed, bids withdrawn, current high 
bid, new minimum accepted bid, 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. 82 will be available before and 
during the auction. Thus, bidders will know in advance of this auction 
the identities of the bidders against which they are bidding.
viii. Auction Announcements
    92. The FCC will use auction announcements to announce items such 
as schedule changes. All FCC auction announcements will be available by 
clicking a link on the FCC Automated Auction System.
viii. Maintaining the Accuracy of Short-Form (FCC Form 175) Information
    93. As noted in Part II.A., after the short-form filing deadline, 
applicants may make only minor changes to their FCC Form 175 
applications. For example, permissible minor changes include deletion 
and addition of authorized bidders (to a maximum of three) and certain 
revision of exhibits. Filers must make these changes on-line, and 
submit a letter summarizing the changes to: Margaret Wiener, Chief, 
Auctions and Industry Analysis Division, Wireless Telecommunications 
Bureau, Federal Communications Commission, 445 12th Street, SW., Room 
4-A760, Washington, DC 20554.
    94. A separate copy of the letter should be faxed to Kenneth 
Burnley, Auctions and Industry Analysis Division, (202) 418-2923. 
Questions about other changes should be directed to Kenneth Burnley at 
(202) 418-0660.

I. Post-Auction Procedures

A. Down Payments and Withdrawn Bid Payments

    95. After bidding has ended, the Commission will issue a public 
notice declaring the auction closed, identifying the winning bidders, 
down payments and any withdrawn payments due.
    96. Within ten business days after release of the auction closing 
notice, each winning bidder must submit

[[Page 1769]]

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 bidding credit). 
See 47 CFR 1.2107(b). In addition, by the same deadline all bidders 
must pay any bid withdrawal payments due under 47 CFR 1.2104(g), as 
discussed in ``Bid Removal and Bid Withdrawal,'' Part IV.B.vi. (Upfront 
payments are applied first to satisfy any withdrawn bid liability, 
before being applied toward down payments.)

B. Long-Form Application

    97. Within ten business days after release of the auction closing 
public notice, winning bidders must electronically submit a properly 
completed long-form application and required exhibits for each 
construction permit won through Auction No. 82. Winning bidders that 
are claiming new entrant status must include an exhibit demonstrating 
their eligibility for the bidding credit. See 47 CFR 1.2112(b). Further 
filing instructions will be provided to the auction winners at the 
close of the auction.

C. Default and Disqualification

    98. 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 
construction permit 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 or 
construction permits held by the applicant. See 47 CFR 1.2109(d).

D. Refund of Remaining Upfront Payment Balance

    99. All applicants that submitted upfront payments but were not 
winning bidders for a construction permit in Auction No. 82 may be 
entitled to a refund of their upfront payment balance after the 
conclusion of the auction. No refund will be made unless there are 
excess funds on deposit from that applicant after any applicable bid 
withdrawal payments have been paid. All refunds will be returned to the 
payer of record, as identified on the FCC Form 159, unless the payer 
submits written authorization instructing otherwise.
    100. Qualified bidders that have exhausted all of their activity 
rule waivers, have no remaining bidding eligibility, and have not 
withdrawn a high bid during the auction must submit a written refund 
request. If you have completed the refund instructions electronically, 
then only a written request for the refund is necessary. If not, the 
request must also include wire transfer instructions and a Taxpayer 
Identification Number (TIN). Send refund request to: Federal 
Communications Commission, Financial Operations Center, Auctions 
Accounting Group, Michelle Bennett, 445 12th Street, SW., Room 1-C864, 
Washington, DC 20554.
    101. 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.
Leora Hochstein,
Deputy Chief, Legal Branch, Auctions and Industry Analysis Division, 
WTB.
[FR Doc. 02-872 Filed 1-11-02; 8:45 am]
BILLING CODE 6712-01-P