[Federal Register Volume 67, Number 66 (Friday, April 5, 2002)]
[Notices]
[Pages 16383-16395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-8255]



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FEDERAL COMMUNICATIONS COMMISSION

[Report No. AUC-02-45-B (Auction No. 45); DA 02-470]


Auction No. 45 Cellular Rural Service Areas Auction Scheduled for 
May 29, 2002; Notice and Filing Requirements, Minimum Opening Bids, 
Upfront Payments, and Other Auction Procedures

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 three cellular Rural Service Area 
(RSA) licenses scheduled for May 29, 2002 (Auction No. 45). This 
document is intended to familiarize prospective bidders with the 
Commission's rules relating to the cellular RSA and those relating to 
application and auction procedures.

DATES: Auction No. 45 is scheduled for May 29, 2002.

FOR FURTHER INFORMATION CONTACT: Auctions and Industry Analysis 
Division: Denise Coca, Legal Branch, or Jeff Crooks, Auctions 
Operations Branch, at (202) 418-0660; Barbara Sibert, Auctions 
Operations Branch, at (717) 338-2888. Media Contact: Meribeth McCarrick 
at (202) 418-0654. Commercial Wireless Division: Gary Oshinsky or Amal 
Abdallah, Policy and Rules Branch, or Dwain Livingston, Licensing and 
Technical Analysis Branch, at (202) 418-0620.

SUPPLEMENTARY INFORMATION: This is a summary of the Auction No. 45 
Procedures Public Notice released March 4, 2002. The complete text of 
the Auction No. 45 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. 45 
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. By the Auction No. 45 Procedures Public Notice, the Wireless 
Telecommunications Bureau (``Bureau'') announces the procedures and 
minimum opening bids for the upcoming auction of three cellular Rural 
Service Area (RSA) licenses scheduled for May 29, 2002 (Auction No. 
45). On February 5, 2002, in accordance with the Balanced Budget Act of 
1997, the Bureau released a public notice seeking comment on reserve 
prices or minimum opening bids and the procedures to be used in Auction 
No. 45. The Bureau received one comment and no reply comments in 
response to the Auction No. 45 Comment Public Notice, 67 FR 8978 
(February 27, 2002).
i. Background of Proceeding
    2. The Federal Communications Commission (``Commission'') has been 
awarding cellular licenses since 1982. Cellular radio service is a 
mobile radiotelephone service in which common carriers are authorized 
to offer and provide a mobile telecommunications service for hire to 
the general public. On January 28, 2002, the Commission released the 
Cellular RSA Report and Order, 67 FR 11425 (March 14, 2002), which 
adopted rules for awarding licenses for four cellular RSAs that remain 
unlicensed because the initial lottery winner in those markets was 
disqualified. Specifically, in the Cellular RSA Report and Order, the 
Commission decided to: (i) Allow all eligible parties to apply for 
these initial licenses; (ii) license these markets on an RSA basis 
under its part 22 rules; and (iii) use its part 1 competitive bidding 
rules to auction these licenses.
ii. Licenses to Be Auctioned
    3. Auction No. 45 will include a cellular frequency block A license 
in each of the following three RSA markets: 332-Polk, AR; 582-Barnes, 
ND; and 727-Ceiba, PR. A fourth market, 672A-Chambers, TX, was also the 
subject of the Cellular RSA Report and Order but will not be included 
in Auction No. 45. The following table provides the Block/Frequency 
Band cross-references for the licenses that will be auctioned.

----------------------------------------------------------------------------------------------------------------
                                                                                                      Bandwidth
         Market No.                 Market name           Channel block        Frequencies (MHz)        (MHz)
----------------------------------------------------------------------------------------------------------------
RSA332.....................  Arkansas 9--Polk........  A                    824-835, 845-846.5, 869-          25
                                                                             880, 890-891.5.
RSA582.....................  North Dakota 3--Barnes..  A                    824-835, 845-846.5, 869-          25
                                                                             880, 890-891.5.
RSA727.....................  Puerto Rico 5--Ceiba....  A                    824-835, 845-846.5, 869-          25
                                                                             880, 890-891.5.
----------------------------------------------------------------------------------------------------------------

    4. One commenter suggested that RSA Market 672A be included in 
Auction No. 45 or, alternatively, that the Bureau delay Auction No. 45 
until resolution of all proceedings relating to the application of the 
tentative selectee from the second lottery for Market 672A. The Bureau 
declines to adopt these suggestions. The Bureau does not intend to 
delay the auction of the three available cellular RSA licenses until 
final resolution of an unrelated proceeding involving a fourth RSA 
license. Such a delay would undermine the Bureau's primary goal of 
getting licenses into the hands of parties that will provide service to 
the public. For this reason, the Bureau believes that the public will 
realize a greater benefit if it auctions the three available cellular 
RSA licenses as soon as practicable than if it postpones the auction 
until the Commission has resolved all issues connected with RSA Market 
672A.

B. Rules and Disclaimers

i. Relevant Authority
    5. Prospective bidders must familiarize themselves thoroughly with 
the Commission's rules relating to the cellular RSA licenses contained 
in title 47, part 20 and part 22 of the Code of Federal Regulations, 
and those relating to application and auction procedures, contained in 
title 47, part 1 of the Code of Federal Regulations.
    6. Prospective bidders must also be thoroughly familiar with the 
procedures, terms and conditions (collectively, ``Terms'') contained in 
the Auction No. 45 Procedures Public Notice; the Auction No. 45 Comment 
Public Notice; the Part 1 Fifth Report and Order, 65 FR 52323 (August 
29, 2000), (as well as prior and subsequent Commission proceedings 
regarding competitive bidding procedures); the Cellular RSA Notice, 66 
FR 14104 (March 9, 2001); and the Cellular RSA Report and Order.
    7. 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

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in its public notices at any time, and will issue public notices to 
convey any new or supplemental information to bidders. It is the 
responsibility of all prospective bidders to remain current with all 
Commission rules and with all public notices 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 02-9 for the Cellular RSA Report and Order).
ii. Prohibition of Collusion
    8. To ensure the competitiveness of the auction process, the 
Commission's rules prohibit applicants for the same geographic license 
area from communicating with each other during the auction about bids, 
bidding strategies, or settlements. This prohibition begins at the 
short-form application filing deadline and ends at the down payment 
deadline after the auction. Bidders competing for licenses in the same 
geographic license areas are encouraged not to use the same individual 
as an authorized bidder. A violation of the anti-collusion rule could 
occur if an individual acts as the authorized bidder for two or more 
competing applicants, and conveys information concerning the substance 
of bids or bidding strategies between the bidders he or she is 
authorized to represent in the auction. A violation could similarly 
occur if the authorized bidders are different individuals employed by 
the same organization (e.g., law firm or consulting firm). In such a 
case, at a minimum, applicants should certify on their applications 
that precautionary steps have been taken to prevent communication 
between authorized bidders and that applicants and their bidding agents 
will comply with the anti-collusion rule.
    9. However, the Bureau cautions that merely filing a certifying 
statement as part of an application will not outweigh specific evidence 
that collusive behavior has occurred, nor will it preclude the 
initiation of an investigation when warranted. In Auction No. 45, for 
example, the rule would apply to any applicants that have applied for 
licenses covering the same geographic areas. Therefore, applicants that 
apply to bid for all of the markets would be precluded from 
communicating with all other applicants until after the down payment 
deadline. However, applicants may enter into bidding agreements before 
filing their FCC Form 175, as long as they disclose the existence of 
the agreement(s) in their Form 175. If parties agree in principle on 
all material terms prior to the short-form filing deadline, those 
parties must be identified on the short-form application pursuant to 
Sec. 1.2105(c), even if the agreement has not been reduced to writing. 
If the parties have not agreed in principle by the filing deadline, an 
applicant would not include the names of those parties on its 
application, and may not continue negotiations with other applicants 
for licenses covering the same geographic areas. By signing their FCC 
Form 175 short-form applications, applicants are certifying their 
compliance with Sec. 1.2105(c).
    10. 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 upon learning of such violation. Bidders therefore are 
required to make such notification to the Commission immediately upon 
discovery.
    11. A summary listing of documents from the Commission and the 
Bureau addressing the application of the anti-collusion rules may be 
found in Attachment G of the Auction No. 45 Procedures Public Notice.
iii. Due Diligence
    12. Potential bidders should be aware that the Commission has 
granted interim operating authority (IOA) to one or more cellular 
operators to provide cellular service on the Channel A block pending 
the ultimate permanent licensing of these RSAs. The interim operator 
must fully cooperate with the permanent licensee in effectuating a 
smooth transition of service in the market to the permanent licensee 
without disruption of service to the public. The IOA operator must 
cease operations in the market on the date of initiation of permanent 
service or within 30 days of written notification by the permanent 
licensee to the interim operator of the day and time that it intends to 
initiate service, whichever date occurs later.
    13. Potential bidders also should be aware that certain 
applications (including those for modification), petitions for 
rulemaking, requests for special temporary authority (``STA'') waiver 
requests, petitions to deny, petitions for reconsideration, and 
applications for review may be pending before the Commission and relate 
to particular applicants or incumbent licensees. In addition, certain 
decisions reached in the Cellular RSA Report and Order and in this 
proceeding may be subject to judicial appeal and may be the subject of 
additional reconsideration or appeal. The Bureau notes that resolution 
of these matters could have an impact on the availability of spectrum 
in Auction No. 45. In addition, although the Commission will continue 
to act on pending applications, requests and petitions, some of these 
matters may not be resolved by the time of the auction.
    14. Potential bidders are solely responsible for identifying 
associated risks and for investigating and evaluating the degree to 
which such matters may affect their ability to bid on, otherwise 
acquire, or make use of licenses available in Auction No. 45.
    15. Potential bidders are advised that 47 CFR 22.942 places limits 
on a cellular RSA licensee holding a controlling interest in a license 
operating on one cellular channel block, and the amount of interest 
they may hold in a license for the other channel block in an 
overlapping CGSA. Also, any RSA licensee operating transmitters within 
72 kilometers (45 miles) of the U.S.-Canadian border must coordinate 
with the adjacent Canadian licensee to eliminate any harmful 
interference as conditioned by Sec. 22.955.
    16. Licensing records for Cellular RSAs are contained in the 
Bureau's Universal Licensing System (ULS) and may be researched on the 
Internet at http://wireless.fcc.gov/uls by selecting ``Licenses'' under 
Search and selecting ``General'' from the search type drop down menu. 
The IOA Licenses, along with their special conditions of operation may 
be researched by their call signs. They are for market 582-KNKP980, 
KNKP986, and KNKP990; market 727-KNKQ240; and market 332-KNKP970. 
Potential bidders may query the database online and download a copy of 
their search results if desired. Detailed instructions on using License 
query and downloading query results are available online by selecting 
the ``?''

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button at the bottom right-hand corner of the License Search screen.
    17. Potential bidders should direct questions regarding the search 
capabilities to the FCC Technical Support hotline at (202) 414-1250 
(voice) or (202) 414-1255 (TTY), or via e-mail at [email protected]. The 
hotline is available to assist with questions Monday through Friday, 
from 7:00 AM to 10:00 PM ET, Saturday, 8:00 AM to 7:00 PM ET, and 
Sunday, 12:00 noon to 6:00 PM ET. In order to provide better service to 
the public, all calls to the hotline are recorded.
    18. The Commission makes no representations or guarantees regarding 
the accuracy or completeness of information in its databases or any 
third party databases, including, for example, court docketing systems. 
Furthermore, the Commission makes no representations or guarantees 
regarding the accuracy or completeness of information that has been 
provided by incumbent licensees and incorporated into the database. 
Potential bidders are strongly encouraged to physically inspect any 
sites located in, or near, the RSA for which they plan to bid.
iv. Bidder Alerts
    19. All applicants must certify on their FCC Form 175 applications 
under penalty of perjury that they are legally, technically, 
financially and otherwise qualified to hold a license, and not in 
default on any payment for Commission licenses (including down 
payments) or delinquent on any non-tax debt owed to any Federal agency. 
Prospective bidders are reminded that submission of a false 
certification to the Commission is a serious matter that may result in 
severe penalties, including monetary forfeitures, license revocations, 
exclusion from participation in future auctions, and/or criminal 
prosecution.
    20. 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 licensee in 
this service, subject to certain conditions and regulations. A FCC 
auction does not constitute an endorsement by the FCC of any particular 
services, technologies or products, nor does an FCC license constitute 
a guarantee of business success. Applicants and interested parties 
should perform their own due diligence before proceeding, as they would 
with any new business venture.
    21. As is the case with many business investment opportunities, 
some unscrupulous entrepreneurs may attempt to use Auction No. 45 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 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.
    22. Information about deceptive telemarketing investment schemes is 
available from the FTC at (202) 326-2222 and from the SEC at (202) 942-
7040. Complaints about specific deceptive telemarketing investment 
schemes should be directed to the FTC, the SEC, or the National Fraud 
Information Center at (800) 876-7060. Consumers who have concerns about 
specific proposals regarding Auction No. 45 may also call the FCC 
Consumer Center at (888) CALL-FCC ((888) 225-5322).
V. National Environmental Policy Act (``NEPA'') Requirements
    23. Licensees must comply with the Commission's rules regarding the 
National Environmental Policy Act (NEPA). The construction of a 
wireless antenna facility is a federal action, and the licensee must 
comply with the Commission's NEPA rules for each such facility. See 47 
CFR 1.1305 through 1.1319. The Commission's NEPA rules require, among 
other things, that the licensee 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 licensee 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 licensee 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
    24. The auction will begin on Wednesday, May 29, 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 licenses will be conducted on each business day until 
bidding has stopped on all licenses.
ii. Auction Title
    25. Auction No. 45--Cellular RSA
iii. Bidding Methodology
    26. The bidding methodology for Auction No. 45 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
    27. These are important dates relating to Auction No. 45:

Auction Seminar: April 10, 2002
Short-Form Application (FCC FORM 175): April 17, 2002; 6:00 p.m. ET
Upfront Payments (via wire transfer): May 6, 2002; 6:00 p.m. ET
Mock Auction: May 23, 2002
Auction Begins: May 29, 2002
v. Requirements For Participation
    28. Those wishing to participate in the auction must:
     Submit a short-form application (FCC Form 175) 
electronically by 6:00 p.m. ET, April 17, 2002.
     Submit a sufficient upfront payment and a FCC Remittance 
Advice Form (FCC Form 159) by 6:00 p.m. ET, May 6, 2002.
     Comply with all provisions outlined in the Auction No. 45 
Procedures Public Notice.
vi. General Contact Information
    29. The following is a list of general contact information relating 
to Auction No. 45:

General Auction Information

General Auction Questions

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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. ET

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
    Commercial Wireless Division, (202) 418-0620

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 10:00 p.m. ET, Saturday, 8:00 a.m. to 7:00 p.m., Sunday, 12:00 
noon to 6:00 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

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

    30. Guidelines for completion of the short-form (FCC Form 175) are 
set forth in Attachment D of the Auction No. 45 Procedures Public 
Notice. The short-form application seeks the applicant's name and 
address, legal classification, status, entrepreneur, small, or very 
small business bidding credit eligibility, identification of the 
license(s) sought the authorized bidders and contact persons. All 
applicants must certify on their FCC Form 175 applications under 
penalty of perjury that they are legally, technically, financially and 
otherwise qualified to hold a license and, as discussed in section 
II.D. (Provisions Regarding Defaulters and Former Defaulters), that 
they are not in default on any payment for Commission licenses 
(including down payments) or delinquent on any non-tax debt owed to any 
Federal agency.

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

    31. All applicants must comply with the uniform part 1 ownership 
disclosure standards and provide information required by Secs. 1.2105 
and 1.2112 of the Commission's rules. Specifically, in completing FCC 
Form 175, applicants will be required to file an ``Exhibit A'' 
providing a full and complete statement of the ownership of the bidding 
entity. The ownership disclosure standards for the short-form are set 
forth in Sec. 1.2112 of the Commission's rules.

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

    32. Applicants will be required to identify on their short-form 
applications any parties with whom they have entered into any 
consortium arrangements, joint ventures, partnerships or other 
agreements or understandings which relate in any way to the licenses 
being auctioned, including any agreements relating to post-auction 
market structure. Applicants will also be required to certify on their 
short-form applications that they have not entered into any explicit or 
implicit agreements, arrangements or understandings of any kind with 
any parties, other than those identified, regarding the amount of their 
bids, bidding strategies, or the particular licenses on which they will 
or will not bid. If an applicant has had discussions, but has not 
reached a joint bidding agreement by the short-form deadline, it would 
not include the names of parties to the discussions on its applications 
and may not continue discussions with applicants for the same 
geographic license area(s) after the deadline. Where applicants have 
entered into consortia or joint bidding arrangements, applicants must 
submit an ``Exhibit B'' to the FCC Form 175.
    33. A party holding a non-controlling, attributable interest in one 
applicant will be permitted to acquire an ownership interest in, form a 
consortium with, or enter into a joint bidding arrangement with other 
applicants for licenses in the same geographic license area provided 
that (i) the attributable interest holder certifies that it has not and 
will not communicate with any party concerning the bids or bidding 
strategies of more than one of the applicants in which it holds an 
attributable interest, or with which it has formed a consortium or 
entered into a joint bidding arrangement; and (ii) the arrangements do 
not result in a change in control of any of the applicants. While the 
anti-collusion rules do not prohibit non-auction related business 
negotiations among auction applicants, bidders are reminded that 
certain discussions or exchanges could touch upon impermissible subject 
matters because they may convey pricing information and bidding 
strategies.

C. Eligibility

i. Bidding Credit Eligibility (FCC Form 175 Exhibit C)
    34. Bidding credits are available to entrepreneurs, small 
businesses, and very small businesses, or consortia thereof, as defined 
in 47 CFR 22.229 for cellular RSA licenses. A bidding credit represents 
the amount by which a bidder's winning bids are discounted. The size of 
the bidding credit depends on the average of the aggregated annual 
gross revenues for each of the preceding three years of the bidder, its 
affiliates, its controlling interests, and the affiliates of its 
controlling interests:
     A bidder with attributed average annual gross revenues of 
not more than $40 million for the preceding three years receives a 15 
percent discount on its winning bids for cellular RSA licenses;
     A bidder with attributed average annual gross revenues of 
not more than $15 million for the preceding three years receives a 25 
percent discount on its winning bids for cellular RSA licenses;
     A bidder with attributed average annual gross revenues of 
not more than $3 million for the preceding three years receives a 35 
percent discount on its winning bids for cellular RSA licenses; Bidding 
credits are not cumulative; qualifying applicants receive either the 15 
percent, 25 percent, or the 35 percent bidding credit, but not more 
than one of them.
ii. Tribal Land Bidding Credit
    35. To encourage the growth of wireless services in federally 
recognized tribal lands the Commission has implemented a tribal land 
bidding credit. See Part V.C.
iii. Applicability of Part 1 Attribution Rules
    36. Controlling interest standard. On August 14, 2000, the 
Commission released the Part 1 Fifth Report and Order, in which the 
Commission, inter

[[Page 16387]]

alia, adopted a ``controlling interest'' standard for attributing to 
auction applicants the gross revenues of their investors and affiliates 
in determining small business eligibility for future auctions. The 
Commission observed that the rule modifications adopted in the various 
part 1 orders would result in discrepancies and/or redundancies between 
certain of the new part 1 rules and existing service-specific rules, 
and the Commission delegated to the Bureau the authority to make 
conforming edits to the Code of Federal Regulations (CFR) consistent 
with the rules adopted in the part 1 proceeding. Part 1 rules that 
superseded inconsistent service-specific rules will control in Auction 
No. 45. Accordingly, the ``controlling interest'' standard as set forth 
in the part 1 rules will be in effect for Auction No. 45, even if 
conforming edits to the CFR are not made prior to the auction.
    37. Control. The term ``control'' includes both de facto and de 
jure control of the applicant. Typically, ownership of at least 50.1 
percent of an entity's voting stock evidences de jure control. De facto 
control is determined on a case-by-case basis. The following are some 
common indicia of de facto control:
     The entity constitutes or appoints more than 50 percent of 
the board of directors or management committee;
     The entity has authority to appoint, promote, demote, and 
fire senior executives that control the day-to-day activities of the 
licensee; or
     The entity plays an integral role in management decisions.
    38. Attribution for entrepreneur, small, and very small business 
eligibility. In determining which entities qualify as entrepreneurs, 
small businesses, or very small businesses, the Commission will 
consider the gross revenues of the applicant, its affiliates, its 
controlling interests, and the affiliates of its controlling interests. 
The Commission does not impose specific equity requirements on 
controlling interest holders. Once the principals or entities with a 
controlling interest are determined, only the revenues of those 
principals or entities, the affiliates of those principals or entities, 
the applicant and its affiliates, will be counted in determining small 
business eligibility.
    39. A consortium of entrepreneurs, small, or very small businesses 
is a ``conglomerate organization formed as a joint venture between or 
among mutually independent business firms,'' each of which individually 
must satisfy the definition of entrepreneur, small, or very small 
business in Sec. 1.2110(f). Thus, each consortium member must disclose 
its gross revenues along with those of its affiliates, its controlling 
interests, and the affiliates of its controlling interests. The Bureau 
notes that although the gross revenues of the consortium members will 
not be aggregated for purposes of determining eligibility for 
entrepreneur, small, or very small business credits, this information 
must be provided to ensure that each individual consortium member 
qualifies for any bidding credit awarded to the consortium.
iv. Supporting Documentation
    40. Applicants should note that they will be required to file 
supporting documentation to their FCC Form 175 short-form applications 
to establish that they satisfy the eligibility requirements to qualify 
as entrepreneur, small, or very small businesses (or consortia of 
entrepreneurs, small, or very small businesses) for this auction.
    41. Applicants should further note that submission of an FCC Form 
175 application constitutes a representation by the certifying official 
that he or she is an authorized representative of the applicant, has 
read the form's instructions and certifications, and that the contents 
of the application and its attachments are true and correct. Submission 
of a false certification to the Commission may result in penalties, 
including monetary forfeitures, license forfeitures, ineligibility to 
participate in future auctions, and/or criminal prosecution.
    42. Entrepreneur, small, or very small business eligibility 
(Exhibit C). Entities applying to bid as entrepreneurs, small 
businesses, or very small businesses (or consortia of entrepreneurs, 
small businesses, or very small businesses) will be required to 
disclose on Exhibit C to their FCC Form 175 short-form applications, 
separately and in the aggregate, the gross revenues for the preceding 
three years of each of the following: (i) the applicant, (ii) its 
affiliates, (iii) its controlling interests, and (iv) the affiliates of 
its controlling interests. Certification that the average annual gross 
revenues for the preceding three years do not exceed the applicable 
limit is not sufficient. A statement of the total gross revenues for 
the preceding three years is also insufficient. The applicant must 
provide separately for itself, its affiliates, its controlling 
interests, and the affiliates of its controlling interests, a schedule 
of gross revenues for each of the preceding three years, as well as a 
statement of total average gross revenues for the three-year period. If 
the applicant is applying as a consortium of entrepreneurs, small 
businesses, or very small businesses, this information must be provided 
for each consortium member.

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

    43. Each applicant must certify on its FCC Form 175 application 
that it is not in default on any Commission licenses and that it is not 
delinquent on any non-tax debt owed to any Federal agency. In addition, 
each applicant must attach to its FCC Form 175 application a statement 
made under penalty of perjury indicating whether or not the applicant, 
its affiliates, its controlling interests, or the affiliates of its 
controlling interest have ever been in default on any Commission 
licenses or have ever been delinquent on any non-tax debt owed to any 
Federal agency. The applicant must provide such information for itself, 
its affiliates, its controlling interests, and the affiliates of its 
controlling interests, as defined by Sec. 1.2110 of the Commission's 
rules (as amended in the Part 1 Fifth Report and Order). Applicants 
must include this statement as Exhibit D of the FCC Form 175. 
Prospective bidders are reminded that the statement must be made under 
penalty of perjury and, further, submission of a false certification to 
the Commission is a serious matter that may result in severe penalties, 
including monetary forfeitures, license revocations, exclusion from 
participation in future auctions, and/or criminal prosecution.
    44. ``Former defaulters'' --i.e., applicants, including their 
attributable interest holders, that in the past have defaulted on any 
Commission licenses or been delinquent on any non-tax debt owed to any 
Federal agency, but that have since remedied all such defaults and 
cured all of their outstanding non-tax delinquencies--are eligible to 
bid in Auction No. 45, provided that they are otherwise qualified. 
However, as discussed infra in section III.D.iii, former defaulters are 
required to pay upfront payments that are fifty percent more than the 
normal upfront payment amounts.

E. Installment Payments

    45. Installment payment plans will not be available in Auction No. 
45.

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

    46. Applicants owned by minorities or women, as defined in 47 CFR 
1.2110(c)(2), may attach an exhibit (Exhibit E) regarding this status. 
This applicant status information is collected for statistical purposes 
only and assists the Commission in monitoring the

[[Page 16388]]

participation of ``designated entities'' in its auctions. Applicants 
wishing to submit additional information may do so on Exhibit F 
(Miscellaneous Information) to the FCC Form 175.

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

    47. After the short-form filing deadline (April 17, 2002), 
applicants may make only minor changes to their FCC Form 175 
applications. Applicants will not be permitted to make major 
modifications to their applications (e.g., change their license 
selections or proposed service areas, change the certifying official or 
change control of the applicant or change bidding credits). See 47 CFR 
1.2105. Permissible minor changes include, for example, deletion and 
addition of authorized bidders (to a maximum of three) and revision of 
exhibits. Applicants should make these modifications to their FCC Form 
175 electronically and submit a letter, briefly summarizing the 
changes, by electronic mail to the attention of Margaret Wiener, Chief, 
Auctions and Industry Analysis Division, at the following address: 
[email protected]. The electronic mail summarizing the changes must 
include a subject or caption referring to Auction No. 45. The Bureau 
requests that parties format any attachments to electronic mail as 
Adobe Acrobat (pdf) or Microsoft Word 
documents.
    48. A separate copy of the letter should be faxed to the attention 
of Kathryn Garland at (717) 338-2850. Questions about other changes 
should be directed to Denise Coca of the Auctions and Industry Analysis 
Division at (202) 418-0660.

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

    49. Applicants have an obligation under 47 CFR 1.65, to maintain 
the completeness and accuracy of information in their short-form 
applications. Amendments reporting substantial changes of possible 
decisional significance in information contained in FCC Form 175 
applications, as defined by 47 CFR 1.2105(b)(2), will not be accepted 
and may in some instances result in the dismissal of the FCC Form 175 
application.

III. Pre-Auction Procedures

A. Auction Seminar

    50. On Wednesday, April 10, 2002, the FCC will sponsor a free 
seminar for Auction No. 45 at the Federal Communications Commission, 
located at 445 12th Street, SW, Washington, DC. The seminar will 
provide attendees with information about pre-auction procedures, 
conduct of the auction, the Automated Auction System, and the Cellular 
Rural Service Area spectrum and auction rules. The seminar will also 
provide an opportunity for prospective bidders to ask questions of FCC 
staff.
    51. To register, complete Attachment B of the Auction No. 45 
Procedures Public Notice and submit it by Monday, April 8, 2002. 
Registrations are accepted on a first-come, first-served basis.

B. Short-Form Application (FCC Form 175)--Due April 17, 2002

    52. In order to be eligible to bid in this auction, applicants must 
first submit a FCC Form 175 application. This application must be 
submitted electronically and received at the Commission no later than 
6:00 p.m. ET on April 17, 2002. Late applications will not be accepted.
    53. There is no application fee required when filing a FCC Form 
175. However, to be eligible to bid, an applicant must submit an 
upfront payment. See Part III.D.
i. Electronic Filing
    54. Applicants must file their FCC Form 175 applications 
electronically. Applications may generally be filed at any time 
beginning at noon ET on April 10, 2002, until 6:00 p.m. ET on April 17, 
2002. Applicants are strongly encouraged to file early and are 
responsible for allowing adequate time for filing their applications. 
Applicants may update or amend their electronic applications multiple 
times until the filing deadline of 6:00 PM ET on April 17, 2002.
    55. Applicants must press the ``SUBMIT Application'' button on the 
``Submission'' page of the electronic form to successfully submit their 
FCC Form 175s. Any form that is not submitted will not be reviewed by 
the FCC. Information about accessing the FCC Form 175 is included in 
Attachment C of the Auction No. 45 Procedures Public Notice. Technical 
support is available at (202) 414-1250 (voice) or (202) 414-1255 (text 
telephone (TTY)) the hours of service Monday through Friday, from 7:00 
AM to 10:00 PM ET, Saturday, 8:00 AM to 7:00 PM ET, and Sunday, 12:00 
noon to 6:00 PM ET. In order to provide better service to the public, 
all calls to the hotline are recorded.
    56. Applicants can also contact Technical Support via e-mail. To 
obtain the address, click the Support tab on the Form 175 Homepage.
ii. Completion of the FCC Form 175
    57. Applicants should carefully review 47 CFR 1.2105, and must 
complete all items on the FCC Form 175. Instructions for completing the 
FCC Form 175 are in Attachment D of the Auction No. 45 Procedures 
Public Notice. Applicants are encouraged to begin preparing the 
required attachments for FCC Form 175 prior to submitting the form. 
Attachments C and D of the Auction No. 45 Procedures Public Notice 
provide information on the required attachments and appropriate 
formats.
iii. Electronic Review of FCC Form 175
    58. The FCC Form 175 electronic review system may be used to locate 
and print applicants' FCC Form 175 information. Applicants may also 
view other applicants' completed FCC Form 175s after the filing 
deadline has passed and the FCC has issued a public notice explaining 
the status of the applications. For this reason, it is important that 
applicants do not include their Taxpayer Identification Numbers (TINs) 
on any exhibits to their FCC Form 175 applications. There is no fee for 
accessing this system. See Attachment C of the Auction No. 45 
Procedures Public Notice for details on accessing the review system.

C. Application Processing and Minor Corrections

    59. After the deadline for filing the FCC Form 175 applications has 
passed, the FCC will process all timely-submitted applications to 
determine which are acceptable for filing, and subsequently will issue 
a public notice identifying: (i) those applications accepted for 
filing; (ii) those applications rejected; and (iii) those applications 
which have minor defects that may be corrected, and the deadline for 
filing such corrected applications.
    60. As described more fully in the Commission's rules, after the 
April 17, 2002, 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 license selections, change the certifying official, 
change control of the applicant, or change bidding credit eligibility).

D. Upfront Payments--Due May 6, 2002

    61. In order to be eligible to bid in the auction, applicants must 
submit an upfront payment accompanied by a FCC Remittance Advice Form 
(FCC Form 159). After completing the FCC Form 175, filers will have 
access to an electronic version of the FCC Form 159

[[Page 16389]]

that can be printed and faxed to Mellon Bank in Pittsburgh, PA. All 
upfront payments must be received at Mellon Bank by 6:00 p.m. ET on May 
6, 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. 45 go to a lockbox number 
different from the lockboxes used in previous FCC auctions, and 
different from the lockbox number to be used for post-auction payments.
     Failure to deliver the upfront payment by the May 6, 2002, 
deadline will result in dismissal of the application and 
disqualification from participation in the auction.
i. Making Auction Payments by Wire Transfer
    62. Wire transfer payments must be received by 6:00 p.m. ET on May 
6, 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
BENEFICIARY: FCC/Account # 910-1174
OBI Field: (Skip one space between each information item)
``AUCTIONPAY''
FCC REGISTRATION NUMBER (FRN): (same as FCC Form 159, block 11 and/or 
21)
PAYMENT TYPE CODE (same as FCC Form 159, block 24A: A45U)
FCC CODE 1 (same as FCC Form 159, block 28A: ``45'')
PAYER NAME (same as FCC Form 159, block 2)
LOCKBOX NO. # 358405


    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.

    63. 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. 45.'' Bidders should confirm receipt of their upfront 
payment at Mellon Bank by contacting their sending financial 
institution.
ii. FCC Form 159
    64. A completed FCC Remittance Advice Form (FCC Form 159, Revised 
2/00) must be faxed to Mellon Bank in order to accompany each upfront 
payment. Proper completion of FCC Form 159 (Revised 2/00) is critical 
to ensuring correct credit of upfront payments. Detailed instructions 
for completion of FCC Form 159 are included in Attachment E of the 
Auction No. 45 Procedures Public Notice. An electronic version of the 
FCC Form 159 is available after filing the FCC Form 175. The FCC Form 
159 can be completed electronically, but must be filed with Mellon Bank 
via facsimile.
iii. Amount of Upfront Payment
    65. 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.''
    66. In the Auction No. 45 Comment Public Notice, the Bureau 
proposed translating bidders' upfront payments to bidding units to 
define a bidder's maximum eligibility. In order to bid on a license, 
otherwise qualified bidders that applied for that license on Form 175 
must have an eligibility level that meets or exceeds the number of 
bidding units assigned to that license. At a minimum, therefore, an 
applicant's total upfront payment must be enough to establish 
eligibility to bid on at least one of the licenses 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 licenses for which the applicant has applied on Form 175, but 
rather to cover the maximum number of bidding units that are associated 
with licenses on which the bidder wishes to place bids and hold high 
bids at any given time.
    67. In the Auction No. 45 Comment Public Notice, the Bureau 
proposed upfront payments on a license-by-license basis using the 
following formula:
    $0.0125 * MHz * License Area Population with a minimum of $1,000 
per license. Having received no comments regarding the value of the 
proposed upfront payments, the Bureau therefore adopts its proposed 
upfront payment amounts for Auction No. 45.
    68. The specific upfront payments and bidding units for each 
license are set forth in Attachment A of the Auction No. 45 Procedures 
Public Notice.
    69. In calculating its upfront payment amount, an applicant should 
determine the maximum number of bidding units on which it may wish to 
be active (bidding units associated with licenses on which the bidder 
has the standing high bid from the previous round and licenses on which 
the bidder places a bid in the current round) 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 licenses on which it seeks to be active on 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.
    70. Former defaulters should calculate their upfront payment for 
all licenses 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 may, on its FCC Form 175, apply for every 
applicable license being offered, but its actual bidding in any 
round will be limited by the bidding units reflected in its upfront 
payment.

iv. Applicant's Wire Transfer Information for Purposes of Refunds of 
Upfront Payments
    71. The Commission will use wire transfers for all Auction No. 45 
refunds. To ensure that refunds of upfront payments are processed in an 
expeditious manner, the Commission is requesting that all pertinent 
information as listed be supplied to the FCC. Applicants can provide 
the information electronically during the initial short-form filing 
window after the form has been submitted. Wire Transfer Instructions 
can also be manually faxed to the FCC, Financial Operations Center, 
Auctions Accounting Group, ATTN: Tim Dates or Gail Glasser, at (202) 
418-2843 by May 6, 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

[[Page 16390]]

ABA Number
Contact and Phone Number
Account Number to Credit
Name of Account Holder
FCC Registration Number (FRN)
Taxpayer Identification Number
Correspondent Bank (if applicable)
ABA Number
Account Number

(Applicants should also note that implementation of the Debt Collection 
Improvement Act of 1996 requires the FCC to obtain a Taxpayer 
Identification Number (TIN) before it can disburse refunds.)
    Eligibility for refunds is discussed in Part V.E.

E. Auction Registration

    72. Approximately ten days before the auction, the FCC will issue a 
public notice announcing all qualified bidders for the auction. 
Qualified bidders are those applicants whose FCC Form 175 applications 
have been accepted for filing and have timely submitted upfront 
payments sufficient to make them eligible to bid on at least one of the 
licenses for which they applied.
    73. 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 on the FCC 
Form 175.
    74. 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 Wednesday, May 22, 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.
    75. 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 St., SW., Washington, 
DC 20554. Only an authorized representative or certifying official, as 
designated on an applicant's FCC Form 175, may appear in person with 
two forms of identification (one of which must be a photo 
identification) in order to receive replacements. Qualified bidders 
requiring replacements must call technical support prior to arriving at 
the FCC.

F. Electronic Bidding

    76. 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 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 and the FCC Automated Auction System user manual 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. 
45. The telephonic bidding phone number will be supplied in the first 
overnight mailing, which also includes the confidential bidder 
identification number. Each applicant should indicate its bidding 
preference--electronic or telephonic--on the FCC Form 175.
    77. Please note that the SecurID cards can be recycled, and the 
Bureau encourages bidders to return the cards to the FCC. The Bureau 
will provide pre-addressed envelopes that bidders may use to return the 
cards once the auction is over.

G. Mock Auction

    78. All qualified bidders will be eligible to participate in a mock 
auction on Thursday, May 23, 2002. The mock auction will enable 
applicants to become familiar with the FCC Automated Auction System 
prior to the auction. Participation by all bidders is strongly 
recommended. Details will be announced by public notice.

IV. Auction Event

    79. The first round of bidding for Auction No. 45 will begin on 
Wednesday, May 29, 2002. The initial bidding schedule will be announced 
in a public notice listing the qualified bidders, which is released 
approximately 10 days before the start of the auction.

A. Auction Structure

i. Simultaneous Multiple Round Auction
    80. In the Auction No. 45 Comment Public Notice, the Bureau 
proposed to award all licenses in Auction No. 45 in a single, 
simultaneous multiple-round auction. The Bureau received no comments on 
this issue. Therefore, the Bureau concludes that it is operationally 
feasible and appropriate to auction the Cellular Rural Service Area 
licenses through a single, simultaneous multiple-round auction. Unless 
otherwise announced, bids will be accepted on all licenses in each 
round of the auction. The Bureau believes this approach allows bidders 
to take advantage of any synergies that exist among licenses and is 
administratively efficient.
ii. Maximum Eligibility and Activity Rules
    81. In the Auction No. 45 Comment Public Notice, the Bureau 
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. The Bureau received no comments on this issue.
    82. For Auction No. 45 the Bureau adopts 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 license is assigned a specific number of bidding units equal to 
the upfront payment listed in Attachment A of the Auction No. 45 
Procedures Public Notice 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 during any 
given round. 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 dollar amount a bidder may bid on 
licenses.
    83. In addition, the Bureau received no comments on its proposal 
for a single stage auction. Therefore, in order to ensure that the 
auction closes within a reasonable period of time, the Bureau adopts 
its 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 waiting until the end before 
participating. A bidder is required to be active on one hundred (100) 
percent of its bidding eligibility during each round of the auction.

[[Page 16391]]

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
    84. In the Auction No. 45 Comment Public Notice, the Bureau 
proposed that each bidder in the auction would be provided three 
activity rule waivers. Bidders may use an activity rule waiver in any 
round during the course of the auction. The Bureau received no comments 
on this issue.
    85. Based upon its experience in previous auctions, the Bureau 
adopts its 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. An activity rule waiver applies to an 
entire round of bidding and not to a particular license. The Bureau is 
satisfied that its practice of providing three waivers over the course 
of the auction provides a sufficient number of waivers and flexibility 
to the bidders, while safeguarding the integrity of the auction.
    86. The 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.
    87. 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.
    88. 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
    89. For Auction No. 45, the Bureau proposed to employ a 
simultaneous stopping rule. Under this rule, bidding will remain open 
on all licenses until bidding stops on every license. The auction will 
close for all licenses when one round passes during which no bidder 
submits a new acceptable bid on any license, applies a proactive 
waiver, or withdraws a previous high bid. After the first such round, 
bidding closes simultaneously on all licenses.
    90. The Bureau also proposed retaining discretion to implement a 
modified version of the simultaneous stopping rule. The modified 
version will close the auction for all licenses after the first round 
in which no bidder submits a proactive waiver, a withdrawal, or a new 
bid on any license on which it is not the standing high bidder. Thus, 
absent any other bidding activity, a bidder placing a new bid on a 
license for which it is the standing high bidder will not keep the 
auction open under this modified stopping rule.
    91. The Bureau 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).
    92. In addition, the Bureau proposed that it reserve the right to 
declare that the auction will end after a designated number of 
additional rounds (``special stopping rule''). If the Bureau invokes 
this special stopping rule, it will accept bids in the final round(s) 
only for licenses on which the high bid increased in at least one of 
the preceding specified number of rounds. The Bureau proposed to 
exercise this option only in circumstances such as where the auction is 
proceeding very slowly, where there is minimal overall bidding activity 
or where it appears likely that the auction will not close within a 
reasonable period of time. Before exercising this option, the Bureau is 
likely to attempt to increase the pace of the auction by, for example, 
increasing the number of bidding rounds per day, and/or adjusting the 
amount of the minimum acceptable bids for the licenses.
    93. The Bureau received no comments on the subject, therefore, it 
adopts all of the proposals concerning the auction stopping rules. 
Auction No. 45 will begin under the simultaneous stopping rule and the 
Bureau will retain the discretion to invoke the other versions of the 
stopping rule. The Bureau believes that these stopping rules are most 
appropriate for Auction No. 45, because its 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
    94. In the Auction No. 45 Comment Public Notice, the Bureau 
proposed that, by public notice or by announcement during the auction, 
the Bureau may delay, suspend, or cancel the auction in the event of 
natural disaster, technical obstacle, evidence of an auction security 
breach, unlawful bidding activity, administrative or weather necessity, 
or for any other reason that affects the fair conduct of competitive 
bidding.
    95. Because this approach has proven effective in resolving exigent 
circumstances in previous auctions, the Bureau adopts its proposed 
auction cancellation rules. By public notice or by announcement during 
the auction, the Bureau may delay, suspend, or cancel the auction in 
the event of natural disaster, technical obstacle, evidence of an 
auction security breach, unlawful bidding activity, administrative or 
weather necessity, or for any other reason that affects the fair and 
competitive conduct of competitive bidding. In such cases, the Bureau, 
in its 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 Bureau to delay or suspend the auction. The 
Bureau emphasizes that exercise of this authority is solely within the 
discretion of the Bureau, and its use is not intended to be a 
substitute for

[[Page 16392]]

situations in which bidders may wish to apply their activity rule 
waivers.

B. Bidding Procedures

i. Round Structure
    96. 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. The round structure for each 
bidding round contains a single bidding round followed by the release 
of the round results. Multiple bidding rounds may be conducted in a 
given day. Details regarding round results formats and locations will 
also be included in the qualified bidders public notice.
    97. The Bureau 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 Bureau 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
    98. 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 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 Bureau 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 Bureau 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 the spectrum being 
auctioned. The Commission concluded that the Bureau should have the 
discretion to employ either or both of these mechanisms for future 
auctions.
    99. In the Auction No. 45 Comment Public Notice, the Bureau 
proposed to establish minimum opening bids for Auction No. 45 and to 
retain discretion to lower the minimum opening bids. Specifically, for 
Auction No. 45, the Bureau proposed the following license-by-license 
formula for calculating minimum opening bids:
    $0.0250 * MHz * License Area Population with a minimum of $1,000 
per license. In the alternative, the Bureau sought comment on whether, 
consistent with the Balanced Budget Act, the public interest would be 
served by having no minimum opening bid or reserve price.
    100. One commenter proposed that the Bureau lower the minimum 
opening bids, reasoning that lower minimum opening bids will permit 
more small businesses to compete in the auction. The Bureau declines to 
adopt this proposal because it does not agree with the premise 
underlying the commenter's position. Although as, the commenter 
asserts, one result of using minimum opening bids is acceleration of 
the competitive bidding process, the Bureau disagrees with the 
commenter's assertion that it sets the minimum opening bids at an 
``overly high'' level to accelerate the pace of the auction. Minimum 
opening bids accelerate the competitive bidding process because they 
reduce the number of rounds in which the amounts of the bids submitted 
would be significantly below the amounts of the winning bids. The 
Bureau believes that the minimum bid levels proposed are well below the 
levels of the likely winning bids, and are not so high as to discourage 
competition. The commenter has provided no evidence to support its 
contention that the proposed minimum opening bids are too high. Because 
the Bureau is not persuaded that the proposed minimum opening bids are 
unreasonable, the Bureau adopts its proposal. Therefore, the Bureau 
believes they will not impede any party, including a small business 
that is willing and able to use the spectrum to provide cellular 
service. Moreover, the Commission has sought to provide small 
businesses with an opportunity to successfully compete against larger, 
well-financed bidders for cellular RSA licenses by defining three tiers 
of small businesses that are eligible for bidding credits.
    101. The specific minimum opening bids for each license are set 
forth in Attachment A of the Auction No. 45 Procedures Public Notice.
    102. The minimum opening bids that the Bureau adopts are reducible 
at its discretion. The Bureau emphasizes, however, that such discretion 
will be exercised, if at all, sparingly and early in the auction, i.e., 
before bidders lose all waivers and begin to lose substantial 
eligibility. During the course of the auction, the Bureau will not 
entertain any requests to reduce the minimum, opening bid on specific 
licenses.
iii. Minimum Acceptable Bids and Bid Increments
    103. In the Auction No. 45 Comment Public Notice, the Bureau 
proposed to use a smoothing methodology to calculate minimum acceptable 
bids. The Bureau further proposed to retain the discretion to change 
the minimum acceptable bids and bid increments if circumstances so 
dictate. The Bureau received no comment on this issue.
    104. The Bureau adopts its proposal for a smoothing formula. The 
smoothing methodology is designed to vary the increment for a given 
license between a maximum and minimum value based on the bidding 
activity on that license. This methodology allows the increments to be 
tailored to the activity level of a license, decreasing the time it 
takes for active licenses to reach their final value. The formula used 
to calculate this increment is included as Attachment F of the Auction 
No. 45 Procedures Public Notice.
    105. The Bureau adopts its 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 Bureau retains the 
discretion to change the minimum acceptable bids and bid increments if 
it determines that circumstance so dictate. The Bureau will do so by 
announcement in the Automated Auction System. Under its discretion, the 
Bureau may also implement an absolute dollar floor for the bid 
increment to further facilitate a timely close of the auction. The 
Bureau may also use its discretion to adjust the minimum bid increment 
without prior notice if circumstances warrant. The Bureau also retains 
the discretion to use alternate methodologies, such as a flat 
percentage increment for all licenses, for Auction No. 45 if 
circumstances warrant.
iv. High Bids
    106. At the end of each bidding round, the Automated Auction System 
determines the standing high bid for each license based on the gross 
dollar amounts of the bids received for each license.
    107. In the case of tied high bids, a random number 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
    108. During a bidding round, a bidder may submit bids for as many 
licenses as

[[Page 16393]]

it wishes (subject to its eligibility), withdraw high bids from 
previous bidding rounds, remove bids placed in the same bidding round, 
or permanently reduce eligibility. Bidders also have the option of 
making multiple submissions and withdrawals in each bidding round. If a 
bidder submits multiple bids for a single license in the same round, 
the system takes the last bid entered as that bidder's bid for the 
round. Bidders should note that the bidding units associated with 
licenses for which the bidder has removed or withdrawn its bid do not 
count towards the bidder's activity at the close of the round.
    109. 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. 45.
    110. A bidder's ability to bid on specific licenses in the first 
round of the auction is determined by two factors: (i) the licenses 
applied for on FCC Form 175 and (ii) the upfront payment amount 
deposited. The bid submission screens will allow bidders to submit bids 
on only those licenses for which the bidder applied on its FCC Form 
175.
    111. The 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.
    112. In each round, eligible bidders will be able to place bids on 
a given license in any of nine different amounts. For each license, 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.
    113. Once there is a standing high bid on a license, the Automated 
Auction System will calculate a minimum acceptable bid for that license 
for the following round. The difference between the minimum acceptable 
bid and the standing high bid for each license will define the bid 
increment. The nine acceptable bid amounts for each license 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.).
    114. Until a bid has been placed on a license, the minimum 
acceptable bid for that license will be equal to its minimum, opening 
bid. The additional bid amounts for licenses 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.
    115. In the case of a license for which the standing high bid has 
been withdrawn, the minimum acceptable bid will equal the second 
highest bid received for the license. 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.
    116. See Attachment F of the Auction No. 45 Procedures Public 
Notice for more detail on the calculation of the various bid amounts.
    117. Finally, bidders are cautioned in selecting their bid amounts 
because, as explained in the following section, bidders who withdraw a 
standing high bid from a previous round, even if mistakenly or 
erroneously made, are subject to bid withdrawal payments.
vi. Bid Removal and Bid Withdrawal
    118. In the Auction No. 45 Comment Public Notice, the Bureau 
proposed bid removal and bid withdrawal rules. With respect to bid 
withdrawals, the Bureau 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, the Bureau proposed, would be at the 
bidder's discretion. The Bureau received no comments on this issue.
    119. Procedures. Before the close of a bidding round, a bidder has 
the option of removing any bids placed in that round. By using the 
``remove bid'' function in the 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 
the Bureau received no comments, will enhance bidder flexibility during 
the auction. Therefore, the Bureau adopts these procedures for Auction 
No. 45.
    120. 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.

    121. In previous auctions, the Bureau has detected bidder conduct 
that, arguably, may have constituted strategic bidding through the use 
of bid withdrawals. While the Bureau continues to recognize the 
important role that bid withdrawals play in an auction, i.e., reducing 
risk associated with efforts to secure various licenses in combination, 
it concludes that, for Auction No. 45, adopting a limit on their use to 
one round is appropriate. By doing so the Bureau believes it strikes a 
reasonable compromise that will allow bidders to use withdrawals. The 
Bureau's decision on this issue is based upon its 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 its view regarding the 
likelihood of any speculation or ``gaming'' in this auction.
    122. The Bureau 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 market. If a high bid is withdrawn, the minimum acceptable 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

[[Page 16394]]

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 license until a new acceptable bid is submitted on that license.
    123. Calculation. Generally, the Commission imposes payments on 
bidders that withdraw high bids during the course of an auction. If a 
bidder withdraws its bid and there is no higher bid in the same or 
subsequent auction(s), the bidder that withdrew its bid is responsible 
for the difference between its withdrawn bid and the net high bid in 
the same or subsequent auction(s). In the case of multiple bid 
withdrawals on a single license, within the same or subsequent 
auctions(s), the payment for each bid withdrawal will be calculated 
based on the sequence of bid withdrawals and the amounts withdrawn. No 
withdrawal payment will be assessed for a withdrawn bid if either the 
subsequent winning bid or any of the intervening subsequent withdrawn 
bids, in either the same or subsequent auctions(s), equals or exceeds 
that withdrawn bid. Thus, a bidder that withdraws a bid will not be 
responsible for any withdrawal payments if there is a subsequent higher 
bid in the same or subsequent auction(s). This policy allows 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 
Bureau retains the discretion to scrutinize multiple bid withdrawals on 
a single license for evidence of anti-competitive strategic behavior 
and take appropriate action when deemed necessary.
    124. 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
    125. Bids placed during a round will not be published until the 
conclusion of that bidding period. After a round closes, the Bureau 
will compile reports of all bids placed, bids withdrawn, current high 
bids, new minimum acceptable bids, and bidder eligibility status 
(bidding eligibility and activity rule waivers), and post the reports 
for public access. Reports reflecting bidders' identities and bidder 
identification numbers for Auction No. 45 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
    126. The FCC will use auction announcements to announce items such 
as schedule changes. All FCC auction announcements will be available by 
clicking on a link in the Automated Auction System.
ix. Maintaining the Accuracy of FCC Form 175 Information
    127. As noted in Part II.G, 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. Applicants should make these modifications to 
their FCC Form 175 electronically and submit a letter, briefly 
summarizing the changes, by electronic mail to the attention of 
Margaret Wiener, Chief, Auctions and Industry Analysis Division, at the 
following address: [email protected]. The electronic mail summarizing 
the changes must include a subject or caption referring to Auction No. 
45. The Bureau requests that parties format any attachments to 
electronic mail as Adobe Acrobat (pdf) or 
Microsoft Word documents.
    128. A separate copy of the letter should be faxed to the attention 
of Kathryn Garland at (717) 338-2850. Questions about other changes 
should be directed to Denise Coca of the Auctions and Industry Analysis 
Division at (202) 418-0660.

V. Post-Auction Procedures

A. Down Payments and Withdrawn Bid Payments

    129. After bidding has ended, the Commission will issue a public 
notice declaring the auction closed, identifying winning bidders, down 
payments and any withdrawn bid payments due.
    130. Within ten business days after release of the auction closing 
notice, each winning bidder must submit sufficient funds (in addition 
to its upfront payment) to bring its total amount of money on deposit 
with the Government to 20 percent of its net winning bids (actual bids 
less any applicable entrepreneur, small, and very small business 
bidding credits). 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

    131. Within ten business days after release of the auction closing 
notice, winning bidders must electronically submit a properly completed 
long-form application (FCC Form 601) and required exhibits for each 
license won through Auction No. 45. Winning bidders that are 
entrepreneurs, small businesses, or very small businesses must include 
an exhibit demonstrating their eligibility for entrepreneur, small, and 
very small business bidding credits. See 47 CFR 1.2112(b). Further 
filing instructions will be provided to auction winners at the close of 
the auction.

C. Tribal Land Bidding Credit

    132. A winning bidder that intends to use its license(s) to deploy 
facilities and provide services to federally-recognized tribal lands 
that are unserved by any telecommunications carrier or that have a 
telephone service penetration rate equal to or below 70 percent is 
eligible to receive a tribal land bidding credit as set forth in 47 CFR 
1.2107 and 1.2110(f). A tribal land bidding credit is in addition to, 
and separate from, any other bidding credit for which a winning bidder 
may qualify.
    133. Unlike other bidding credits that are requested prior to the 
auction, a winning bidder applies for the tribal land bidding credit 
after winning the auction when it files its long-form application (FCC 
Form 601). When filing the long-form application, the winning bidder 
will be required to advise the Commission whether it intends to seek a 
tribal land bidding credit, for each market won in the auction, by 
checking the designated box(es). After stating its intent to seek a 
tribal land bidding credit, the applicant will have 90 days from the 
close of the long-form filing window to amend its

[[Page 16395]]

application to select the specific tribal lands to be served and 
provide the required tribal government certifications. Licensees 
receiving a tribal land bidding credit are subject to performance 
criteria as set forth in 47 CFR 1.2110(f).
    134. For additional information on the tribal land bidding credit, 
including how the amount of the credit is calculated, applicants should 
review the Commission's rule making proceeding regarding tribal land 
bidding credits and related public notices. Relevant documents can be 
viewed on the Commission's auctions web site at 
http://wireless.fcc.gov/auctions by clicking on the Tribal Land Credits 
link.

D. Default and Disqualification

    135. Any high bidder that defaults or is disqualified after the 
close of the auction (i.e., fails to remit the required down payment 
within the prescribed period of time, fails to submit a timely long-
form application, fails to make full payment, or is otherwise 
disqualified) will be subject to the payments described in 47 CFR 
1.2104(g)(2). In such event the Commission may re-auction the license 
or offer it to the next highest bidder (in descending order) at its 
final bid. See 47 CFR 1.2109(b) and (c). In addition, if a default or 
disqualification involves gross misconduct, misrepresentation, or bad 
faith by an applicant, the Commission may declare the applicant and its 
principals ineligible to bid in future auctions, and may take any other 
action that it deems necessary, including institution of proceedings to 
revoke any existing licenses held by the applicant. See 47 CFR 
1.2109(d).

E. Refund of Remaining Upfront Payment Balance

    136. All applicants that submitted upfront payments but were not 
winning bidders for a license in Auction No. 45 may be entitled to a 
refund of their remaining 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.
    137. 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, Taxpayer 
Identification Number (TIN) and FCC Registration Number (FRN). Send 
refund request to: Federal Communications Commission, Financial 
Operations Center, Auctions Accounting Group, Gail Glasser or Tim 
Dates, 445 12th Street, SW, Room 1-C863, Washington, DC 20554.
    138. 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.
Kelly Quinn,
Deputy Chief, Auctions and Industry Analysis Division, Wireless 
Telecommunications Bureau.
[FR Doc. 02-8255 Filed 4-4-02; 8:45 am]
BILLING CODE 6712-01-P