[Federal Register Volume 67, Number 212 (Friday, November 1, 2002)]
[Notices]
[Pages 66632-66641]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27816]


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FEDERAL COMMUNICATIONS COMMISSION

[Report No. AUC-01-32-H (Auction No. 32); DA 02-2623]


Auction No. 32 Construction Permits for New AM Broadcast Stations 
Scheduled for December 10, 2002; Notice and Filing Requirements, 
Minimum Opening Bids, Upfront Payments and Other Procedural Issues

AGENCY: Federal Communications Commission.

ACTION: Notice.

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[[Page 66633]]

SUMMARY: This document announces the procedures and minimum opening 
bids for the upcoming auction of construction permits for new AM 
broadcast stations (Auction No. 32) scheduled to begin December 10, 
2002. This document is intended to familiarize prospective bidders with 
the procedures and minimum opening bids for this auction.

DATES: Auction No. 32 is scheduled to begin on December 10, 2002.

FOR FURTHER INFORMATION CONTACT: Auctions and Industry Analysis 
Division: Kenneth Burnley, Legal Branch, at (202) 418-0660; Linda 
Sanderson, or Roy Knowles, Auctions Operations Branch at (717) 338-
2888. Media Contact: Meribeth McCarrick at (202) 418-0654. Audio 
Division: Lisa Scanlan or Edward DeLaHunt at (202) 418-2700.

SUPPLEMENTARY INFORMATION: This is a summary of the Auction No. 32 
Procedures Public Notice released on October 15, 2002. The complete 
text of the Auction No. 32 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-B402, Washington, DC 20554. The 
Auction No. 32 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 to 
[email protected].

I. General Information

A. Introduction

    1. By the Auction No. 32 Procedures Public Notice, the Wireless 
Telecommunications Bureau (``WTB'') and the Media Bureau (``MB'') 
(collectively, the ``Bureaus'') announce the procedures and minimum 
opening bids for the upcoming auction of construction permits for new 
AM broadcast stations (``Auction No. 32'').\1\ On September 16, 2002, 
in accordance with the Balanced Budget Act of 1997, the Bureaus 
released the Auction No. 32 Comment Public Notice, seeking comment on 
the establishment of reserve prices and/or minimum opening bids for 
Auction No. 32. In addition, the Bureaus sought comment on a number of 
procedures to be used in Auction No. 32. The Bureaus received two 
comments and one reply comment in response to the Auction No. 32 
Comment Public Notice.
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    \1\ These procedures were adopted following actual notice and an 
opportunity to comment provided to all of the parties in this closed 
auction.
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i. Construction Permits To Be Auctioned
    2. Auction No. 32 will include construction permits for three new 
AM broadcast stations. These construction permits are the subject of 
pending, mutually exclusive short-form applications (FCC Form 175) 
filed on or before February 1, 2000, and participation in this auction 
is limited to the applicants identified in Attachment A of the Auction 
No. 32 Procedures Public Notice. All applications within a mutually 
exclusive applicant group (``MX Group'') are directly mutually 
exclusive with one another, and therefore a single AM construction 
permit will be auctioned for each MX Group identified in Attachment A 
of the Auction No. 32 Procedures Public Notice. The minimum opening 
bids and upfront payments for these construction permits are also 
included in Attachment A of the Auction No. 32 Procedures Public 
Notice.
    3. MX Group AM 38: Applicants Alvin Lou Media, Inc. (``ALM'') and 
Victor A. Michael (``Michael'') filed comments in response to the 
Auction No. 32 Comment Public Notice. Both request that the auction be 
held in abeyance pending resolution of their respective Applications 
for Review, in which ALM and Michael challenge the Media Bureau's 
finding that ALM and Powell Meredith Communications Company (``PMCC'') 
should proceed to auction. ALM and Michael both argue that PMCC's 
technical proposal is unacceptable, and thus PMCC should not be allowed 
to proceed to auction.
    4. The Bureaus will not delay the auction for MX Group AM 38 as 
requested by the commenters. In the Broadcast First Report and Order, 
63 FR 48615 (September 11, 1998), the Commission directed the Bureaus 
to defer technical review until the post-auction submission of long-
form applications by the winning bidders. This is consistent with 
Congress and the Commission's overall objective of minimizing delay in 
the award of construction permits, and promoting deployment of new 
broadcasting service to the public as expeditiously as possible. 
Further, to the extent ALM and Michael rely on pending challenges to 
the determination that ALM and PMCC should proceed to auction, they 
have not shown irreparable harm or that the public interest would be 
served by delaying the auction schedule. Any grant of a construction 
permit won in competitive bidding remains subject to Commission or 
judicial review and the ultimate disposition of issues presented on 
appeal.
    5. As stated in the Broadcast First Report and Order all pending 
mutually exclusive applications for broadcast services must be resolved 
through a system of competitive bidding. When two or more short-form 
applications are accepted for filing within an MX Group, mutual 
exclusivity exists for auction purposes. Once mutual exclusivity exists 
for auction purposes, even if only one applicant within an MX Group 
submits an upfront payment, that applicant is required to submit a bid 
in order to obtain the construction permit.

B.Rules and Disclaimers

i. Relevant Authority
    6. Prospective bidders must familiarize themselves thoroughly with 
the Commission's rules relating to the AM broadcast service contained 
in title 47, part 73 of the Code of Federal Regulations. Prospective 
bidders must also be familiar with the rules relating to broadcast 
auctions and competitive bidding proceedings in title 47, part 1, 
subpart Q and part 73, subpart I of the Commission's rules. Prospective 
bidders must also be thoroughly familiar with the procedures, terms and 
conditions contained in the Auction No. 32 Procedures Public Notice, 
the Auction No. 32 Comment Public Notice, the Broadcast First Report 
and Order, the Broadcast Reconsideration Order, 64 FR 24523 (May 7, 
1999), and the New Entrant Bidding Credit Reconsideration Order, 64 FR 
44856 (August 18, 1999).
    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 in our public notices at any time, 
and will issue public notices to convey any new or supplemental 
information to bidders. It is the responsibility of all prospective 
bidders to remain current with all Commission rules and with all public 
notices 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

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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
    8. Bidders are reminded that Sec.  1.2105(c) of the Commission's 
rules prohibits competing 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 AM Auction 
Filing Window and Application Freeze Public Notice, released November 
19, 1999. For Auction No. 32, this prohibition became effective at the 
short-form application deadline (February 1, 2000) 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 Bureaus 
caution 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.
    9. Bidders in Auction No. 32 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).
    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 immediately 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 
Bureaus addressing the application of the anti-collusion rules may be 
found in Attachment D of the Auction No. 32 Procedures Public Notice.
iii. Due Diligence
    12. 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 AM broadcast 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.
    13. Potential bidders are strongly encouraged to conduct their own 
research prior to Auction No. 32 in order to determine the existence of 
pending proceedings that might affect their decisions regarding 
participation in the auction. Participants in Auction No. 32 are 
strongly encouraged to continue to conduct due diligence examinations 
regarding pending proceedings and other legal developments with respect 
to the construction permits for which they may bid during the course of 
the auction. Bidders should be aware that certain applications 
(including those for modification), petitions for rulemaking, requests 
for special temporary authority (``STA''), waiver requests, petition to 
deny, petitions for reconsideration, and applications for review may be 
pending before the Commission and relate to particular applicants or 
the construction permits available in Auction No. 32. In addition, 
certain judicial proceedings that may relate to particular applicants 
or the construction permits available in Auction No. 32 may be 
commenced or may be pending or subject to further review. We note that 
resolution of these matters could have an impact on the availability of 
spectrum in Auction No. 32. Some of these matters (whether before the 
Commission or the courts) may not be resolved at the time of the 
auction. In the event that a final determination reached in a pending 
proceeding requires a winning bidder to surrender a construction 
permit(s) won in Auction No. 32, the Commission will return payments 
relating to such construction permit(s) to the payor of record. The 
Commission, however, will not pay interest on the returned payment(s) 
as it lacks the legal authority to do so.
    14. Bidders are solely responsible for identifying associated risks 
and for investigating and evaluating the degree to which such matters 
may effect their ability to bid on, otherwise acquire, or make use of 
the construction permits available in Auction No. 32.
iv. Bidder Alerts
    15. By submitting an FCC Form 175 application, applicants have 
certified 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 or construction permits 
(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.
    16. As is the case with many business investment opportunities, 
some unscrupulous entrepreneurs may attempt to use Auction No. 32 to 
deceive and defraud unsuspecting investors. Common warning signals of 
fraud include the following:
    [sbull] 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.
    [sbull] 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.
    [sbull] The amount of the minimum investment is less than $25,000.
    [sbull] 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

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FCC knowledge or approval of the solicitation.
    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. 32--will begin on Tuesday, December 10, 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. 32--New AM Broadcast Stations.
iii. Bidding Methodology
    20. The bidding methodology for Auction No. 32 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 will be available as well. 
Qualified bidders are permitted to bid telephonically or 
electronically.
iv. Pre-Auction Dates and Deadlines
    21. Listed are important dates associated with Auction No. 32:

Auction Seminar--November 6, 2002
Upfront Payments (via wire transfer)--November 15, 2002; 6 p.m. ET
Mock Auction--December 5, 2002
Auction Begins--December 10, 2002
v. Requirements for Participation
    22. Those wishing to participate in the auction must:
    [sbull] Be listed on Attachment A of the Auction No. 32 Procedures 
Public Notice.
    [sbull] Submit a sufficient upfront payment and an FCC Remittance 
Advice Form (FCC Form 159) by 6 p.m. ET, November 15, 2002.
    [sbull] Comply with all provisions outlined in this public notice 
and applicable Commission rules.
vi. General Contact Information
    23. The following is a list of general contact information relating 
to Auction No. 32.
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. 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
     Audio Division, (202) 418-2700
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 8 a.m. to 
6 p.m. ET
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

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

A. Maintaining the Accuracy of FCC Form 175 Information

    24. As noted in the Auction No. 32 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. 
Applicants should report these modifications to their FCC Form 175 by 
electronic mail and submit a letter, briefly summarizing the changes, 
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. 32. The Bureaus request that parties 
format any attachments to electronic mail as Adobe[reg] Acrobat[reg] 
(pdf) or Microsoft[reg] Word documents.
    25. 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 Kenneth Burnley of the Auctions and Industry 
Analysis Division 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. Requirements for Logging on to the FCC Auction 175 Application & 
Search System

    27. Although applicants submitted their original FCC Form 175 
applications by using a Taxpayer Identification Number (TIN), any 
review of and updates to these applications will require the use of an 
FCC Registration Number (FRN). On August 24, 2001, the

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FCC adopted a rule requiring all persons and entities doing business 
with the FCC to acquire a unique identifying number called the FRN and 
to provide it with all applications or feeable filings as well as other 
transactions involving payment of money. This requirement became 
effective on December 3, 2001. Use of an FRN is mandatory for all 
filers logging on to the FCC Auctions 175 Application & Search system.
    28. To obtain an FRN, an applicant must register their TIN using 
the CORES. To access CORES, point web browser to the FCC Auctions page 
at http://wireless.fcc.gov/auctions/ and click the CORES link under 
Related Sites. Next, follow the directions provided to register and 
receive your FRN. Applicants need to be sure to retain this number and 
password and keep such information strictly confidential.
    29. A filing window for review and resubmission of FCC Form 175 
applications will open after the future release of a public notice 
announcing the status of applications. This public notice announcing 
the status of applications will contain additional information for 
reviewing and accessing applications.
    30. Very Important: Before logging on to the FCC Form 175 
Applications & Search system, all applicants must send their FRN to the 
FCC Operations Group. To do this, include entity name, TIN, and FRN in 
an e-mail to [email protected] or fax to Kathryn Garland at (717) 338-
2850. This information must be received by 5 p.m. ET, Friday, October 
25, 2002. For further information, contact: FCC Technical Support at 
(202) 414-1250. Hours of service: Monday through Friday 8 a.m. to 6 
p.m. ET.

C. Electronic Review of Short-Form Applications (FCC Form 175)

    31. As noted in the Auction Filing Window Public Notice, 66 FR 
33699 (June 25, 2001), 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 the public notice concerning the status of the 
applications.

D. Installment Payments

    32. Installment payment plans will not be available in Auction No. 
32.

III. Pre-Auction Procedures

A. Application Processing and Minor Corrections

    33. 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.
    34. 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. For example, permissible minor 
changes include deletion and addition of authorized bidders (to a 
maximum of three) and certain revision of exhibits. Applicants will not 
be permitted to make major modifications to their applications (e.g., 
change their construction permit selections, change the engineering 
information submitted with the FCC Form 175, change the certifying 
official, changes in ownership of the applicant that would constitute a 
change of control of the applicant, or changes affecting eligibility 
for the new entrant bidding credit).

B. Auction Seminar

    35. On November 6, 2002, the FCC will sponsor a free seminar for 
Auction No. 32 at the Federal Communications Commission, located at 445 
12th Street, SW. (Room 4-B516), Washington, DC. The seminar will 
provide attendees with information about pre-auction procedures, 
conduct of the auction, FCC Automated Auction System, and the broadcast 
service and auction rules. The seminar will also provide an opportunity 
for prospective bidders to ask questions of FCC staff.
    36. To register, complete the registration form included as 
Attachment B of the Auction No. 32 Procedures Public Notice and submit 
it by Monday, November 4, 2002. Registrations are accepted on a first-
come, first-served basis.

C. Upfront Payments--Due November 15, 2002

    37. 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. ET on November 15, 2002.
    Please note that:
    [sbull] All payments must be made in U.S. dollars.
    [sbull] All payments must be made by wire transfer.
    [sbull] Upfront payments for Auction No. 32 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.
    [sbull] Failure to deliver the upfront payment by the November 15, 
2002 deadline will result in dismissal of the application and 
disqualification from participation in the auction.
i. Making Auction Payments by Wire Transfer
    38. Wire transfer payments must be received by 6 p.m. ET on 
November 15, 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 (BNF): FCC/Account  910-1203
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: A32U)
FCC CODE 1 (same as FCC Form 159, block 28A: ``32'')
PAYER NAME (same as FCC Form 159, block 2)
LOCKBOX NO.  358425

    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.

    39. 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. 32.'' Bidders should confirm receipt of their upfront 
payment at Mellon Bank by contacting their sending financial 
institution.

[[Page 66637]]

ii. FCC Form 159
    40. 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 of the 
Auction No. 32 Procedures Public Notice. An electronic version of the 
FCC Form 159 will be accessible after the FCC Form 175 becomes 
available electronically. The FCC Form 159 can be completed 
electronically, but must be filed with Mellon Bank via facsimile.
iii. Amount of Upfront Payment
    41. The Commission delegated to the Bureaus 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 52323 
(August 29, 2000), the Commission ordered that ``former defaulters,'' 
i.e., applicants that have ever been in default on any Commission 
licenses 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.''
    42. In the Auction No. 32 Comment Public Notice, we proposed 
translating bidders' upfront payments to bidding units to define a 
bidder's maximum initial 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 the number 
of bidding units assigned to that construction permit. An applicant's 
total upfront payment must be enough to establish eligibility to bid on 
the construction permit applied for on Form 175, or else the applicant 
will not be eligible to participate in the auction. No comments were 
received; therefore, we adopt our proposal. The specific upfront 
payments and bidding units for each construction permit are set forth 
in Attachment A of the Auction No. 32 Procedures Public Notice.
    43. 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
    44. The Commission will use wire transfers for all Auction No. 32 
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 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 November 15, 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
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 section V.D.

D. Auction Registration

    45. 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 the construction 
permit for which they applied.
    46. 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.
    47. 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, December 3, 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.
    48. 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.

E. Electronic Bidding

    49. The Commission will conduct this auction over the Internet. 
Telephonic bidding will also be available. As a contingency, the FCC 
Wide Area Network will be available as well. The telephone number 
through which the backup FCC Wide Area Network may be accessed will be 
announced in a later public notice. 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. 
32. The telephonic bidding phone number will be supplied in the first 
overnight mailing of the confidential bidder identification number. 
Each applicant's bidding preference has been defaulted to electronic. 
Applicants should modify this preference during the FCC Form 175 
resubmit window if they intend to bid telephonically.

[[Page 66638]]

    50. 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.

F. Mock Auction

    51. All qualified bidders will be eligible to participate in a mock 
auction on Thursday, December 5, 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

    52. The first round of bidding for Auction No. 32 will begin on 
Tuesday, December 10, 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
    53. In the Auction No. 32 Comment Public Notice, we proposed to 
award all construction permits in a 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 AM 
broadcast station construction permits through a simultaneous multiple 
round auction. Unless otherwise announced, bids will be accepted from 
eligible bidders on all construction permits in each round of the 
auction.
ii. Maximum Eligibility and Activity Rules
    54. In the Auction No. 32 Comment Public Notice, we proposed that 
the amount of the upfront payment submitted by a bidder would determine 
the maximum initial eligibility (as measured in bidding units) for each 
bidder. We received no comments on this issue.
    55. For Auction No. 32, we adopt our proposal. The amount of the 
upfront payment submitted by a bidder determines the maximum initial 
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 of the Auction No. 
32 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. 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.
    56. 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, thus eliminating them from the auction.
iii. Activity Rule Waivers and Reducing Eligibility
    57. In the Auction No. 32 Comment Public Notice, we 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. We received no comments on this issue.
    58. 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. An activity rule waiver applies to an entire 
round of bidding. We are satisfied that our 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.
    59. 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 bidding period where a bidder's activity level is below 
the minimum required. If a bidder has no waivers remaining and does not 
satisfy the required activity level, the bidder's eligibility will be 
permanently reduced, eliminating them from the auction.
    60. A bidder may proactively use an activity rule waiver as a means 
to keep the auction open without placing a bid. If a bidder submits a 
proactive waiver (using the proactive waiver function in the bidding 
system) during a bidding period in which no bids are submitted, the 
auction will remain open and the bidder's eligibility will be 
preserved. An automatic waiver invoked in a round in which there are no 
new valid bids will not keep the auction open. Note: Once a proactive 
waiver is placed during a round, that waiver cannot be unsubmitted.
iv. Auction Stopping Rules
    61. For Auction No. 32, 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 one 
round passes during which no bidder submits a new acceptable bid on any 
construction permit, or applies a proactive waiver. 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, 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 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, the Bureaus proposed that they 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. The Bureaus 
proposed to exercise this

[[Page 66639]]

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. The Bureaus received no comments on these issues, therefore, we 
adopt all of the proposals concerning the auction stopping rules. 
Auction No. 32 will begin under the simultaneous stopping rule, and the 
Bureaus will retain the discretion to invoke the other versions of the 
stopping rule. The Bureaus believe that these stopping rules are most 
appropriate for Auction No. 32, because their 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. 32 Comment Public Notice, the Bureaus 
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. 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 Bureaus have the discretion to change the bidding schedule 
in order to foster an auction pace that reasonably balances speed with 
the bidders' need to study round results and adjust their bidding 
strategies. The Bureaus may increase or decrease the amount of time for 
the bidding rounds and review periods, or the number of rounds per day, 
depending upon the bidding activity level and other factors.
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 mutually 
exclusive applications have been accepted), 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. In the Auction No. 32 Comment Public Notice, the Bureaus 
proposed to establish minimum opening bids for Auction No. 32 and to 
retain discretion to lower the minimum opening bids. Specifically, for 
Auction No. 32, 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. The Bureaus received no comments on this issue, 
therefore, they adopt their proposal. The specific minimum opening bids 
for each construction permit are set forth in Attachment A of the 
Auction No. 32 Procedures Public Notice.
iii. Minimum Accepted Bids and Bid Increments
    72. In the Auction No. 32 Comment Public Notice, the Bureaus 
proposed to use a fixed percentage to calculate minimum acceptable 
bids. They further proposed to retain the discretion to change the 
minimum acceptable bids and bid increments if circumstances so dictate. 
The Bureaus received no comment on this issue.
    73. In each round, each eligible bidder will be able to place a bid 
on the particular construction permit for which it applied in any of 
nine different amounts. The Auctions Bidding System interface will list 
the nine acceptable bid amounts for each construction permit.
    74. For Auction No. 32, the Bureaus proposed to use a fixed 10 
percent bid increment. This means that the minimum acceptable bid for a 
construction permit will be approximately 10 percent greater than the 
previous standing high bid received on the construction permit. The 
minimum acceptable bid amount will be calculated by multiplying the 
standing high bid times one plus the fixed percentage--i.e., minimum 
acceptable bid amount = (standing high bid) * (1.10){rounded{time} . We 
will round the result using our standard rounding procedure for minimum 
acceptable bid calculations: results above $10,000 are rounded to the 
nearest $1,000; results below $10,000 but above $1,000 are rounded to 
the nearest $100; and results below $1,000 are rounded to the nearest 
$10.
    75. At the start of the auction and 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. Corresponding 
additional bid amounts will be calculated using bid increments defined 
as the difference between the minimum opening bid times one plus the 
percentage increment, rounded as described, and the minimum opening 
bid--i.e., bid increment = (minimum opening bid)(1 + percentage 
increment){rounded{time}  - (minimum opening bid). At the start of

[[Page 66640]]

the auction and until a bid has been placed on a construction permit, 
the nine acceptable bid amounts for each construction permit consist of 
the minimum opening bid and additional amounts are calculated using 
multiple bid increments (i.e., the second bid amount equals the minimum 
opening bid plus the bid increment, the third bid amount equals the 
minimum opening bid plus two times the bid increment, etc.).
    Example bid amount calculation for construction permits at the 
start of the auction and without standing high bids:

1st bid amount = minimum opening bid
2nd bid amount = minimum opening bid + (bid increment)
3rd bid amount = minimum opening bid + 2(bid increment)
* * * * *
9th bid amount = minimum opening bid + 8(bid increment)

    76. Once there is a standing high bid on the construction permit, 
the Auctions Bidding System will calculate a minimum acceptable bid for 
that construction permit for the following round, as described. The 
difference between the minimum acceptable bid and the standing high bid 
for each construction permit will define the bid increment--i.e., bid 
increment = (minimum acceptable bid)--(standing high bid). 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.).
    Example bid amount calculation for construction permits with 
standing high bids:


1st bid amount = standing high bid + bid increment
2nd bid amount = standing high bid +2(bid increment)
3rd bid amount = standing high bid +3(bid increment)
* * * * *
9th bid amount = standing high bid +9(bid increment)

    77. The Bureaus retain the discretion to change the minimum 
acceptable bids and bid increments and the methodology for determining 
the minimum acceptable bids and bid increments if they determine 
circumstances so dictate. The Bureaus will do so by announcement in the 
FCC Automated Auction System. The Bureaus may also use its discretion 
to adjust the minimum bid increment without prior notice if 
circumstances warrant.
iv. High Bids
    78. At the end of each round, the FCC 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.
    79. 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
    80. During a bidding round, a bidder may submit a bid, subject to 
its eligibility, as well as remove a bid placed in the same bidding 
round. Bidders also have the option of making multiple submissions 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. Bidders should note that 
the bidding units associated with the construction permit for which the 
bidder has removed its bid do not count towards the bidder's activity 
at the close of the round.
    81. Please note that all bidding will take place remotely either 
through the FCC 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. 32.
    82. A bidder's ability to bid on a specific construction permit in 
the first round of the auction is determined by two factors: (i) The 
construction permit 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 the construction permit for which the bidder 
applied on its FCC Form 175.
    83. 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.
    84. 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 FCC 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 FCC Automated Auction System also includes an import 
function that allows bidders to upload text files containing their bid 
information.
    85. 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. Once there is a standing high bid on a 
construction permit, the FCC Automated Auction System will calculate a 
minimum acceptable bid for that construction permit for the following 
round, as described in section IV.B.iii.
vi. Bid Removal and Bid Withdrawal
    86. In the Auction No. 32 Comment Public Notice, we proposed bid 
removal and bid withdrawal procedures. With respect to bid withdrawals, 
we proposed that bidders not be permitted to withdraw bids in any 
round. We received no comments on this issue. Therefore, the Bureaus 
adopt their proposal and will not permit bidders to withdrawal bids in 
any round during the auction.
    87. Bid Removal 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. 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. Once a round closes, a bidder may no 
longer remove a bid. No comments were received on this issue, 
therefore, we adopt these procedures for Auction No. 32.
vii. Round Results
    88. 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, 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. 32 will be available before and during

[[Page 66641]]

the auction. Thus, bidders will know in advance of this auction the 
identities of the bidders against which they are bidding.
viii. Auction Announcements
    89. 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.

V. Post-Auction Procedures

A. Down Payments

    90. After bidding has ended, the Commission will issue a public 
notice declaring the auction closed, identifying the winning bidders 
and winning bids for each construction permit, and any down payments 
due.
    91. 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 bidding credit).

B. Long-Form Application

    92. Within thirty days after release of the auction closing public 
notice, winning bidders must electronically submit a properly completed 
long-form application and required exhibits for the construction permit 
won through Auction No. 32. Winning bidders that are claiming new 
entrant status must include an exhibit demonstrating their eligibility 
for the bidding credit. Further filing instructions will be provided to 
the auction winners at the close of the auction.

C. Default and Disqualification

    93. 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. 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.

D. Refund of Remaining Upfront Payment Balance

    94. All applicants that submitted upfront payments but were not 
winning bidders for a construction permit in Auction No. 32 will be 
entitled to a refund of their upfront payment balance after the 
conclusion of the auction. 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.
    95. Qualified bidders that have exhausted all of their activity 
rule waivers and have no remaining bidding eligibility 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.
    96. 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 Gail 
Glasser at (202) 418-0578 or Tim Dates at (202) 418-0496.


Federal Communications Commission.
Margaret Wiener,
Chief, Auctions and Industry Analysis Division, WTB.
[FR Doc. 02-27816 Filed 10-31-02; 8:45 am]
BILLING CODE 6712-01-P