[Federal Register Volume 67, Number 242 (Tuesday, December 17, 2002)]
[Notices]
[Pages 77273-77281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-31634]


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FEDERAL COMMUNICATIONS COMMISSION

[Report No. AUC-02-47-C (Auction No. 47); DA 02-3153]


Closed Auction of Licenses for Cellular Unserved Service Areas 
Scheduled for February 12, 2003; 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 seven licenses to provide cellular 
service in unserved areas scheduled for February 12, 2003. This 
document is intended to familiarize prospective bidders with the 
procedures and minimum opening bids for this auction.

DATES: Auction No. 47 is scheduled to begin on February 12, 2003.

FOR FURTHER INFORMATION CONTACT: Auctions and Industry Analysis 
Division: Ken Burnley, Legal Branch, or Jeff Crooks, Auctions 
Operations Branch, at (202) 418-0660; Lisa Stover, Auctions Operations 
Branch, at (717) 338-2888. Media Contact: Lauren Kravetz at (202) 418-
7944. Commercial Wireless Division: Mike Kleeb, Licensing and Technical 
Analysis Branch, at (202) 418-0620; Amal Abdallah, Policy and Rules 
Branch, at (202) 418-7307 or Evan Baranoff, Policy and Rules Branch, at 
(202) 418-7142.

SUPPLEMENTARY INFORMATION: This is a summary of the Auction No. 47 
Procedures Public Notice released on November 15, 2002. The complete 
text of the Auction No. 47 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. 47 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. 47 Procedures Public Notice, the Wireless 
Telecommunications Bureau (``Bureau'') announces the procedures and 
minimum opening bids for the upcoming auction of seven licenses to 
provide cellular service in unserved areas (``Auction No. 47'') 
scheduled for February 12, 2003.
    2. In accordance with the Balanced Budget Act of 1997, the Bureau 
released a public notice on September 16, 2002, seeking comment on 
reserve prices or minimum opening bids and the procedures to be used in 
Auction No. 47. The Bureau received one comment and no reply comments 
in response to the Auction No. 47 Comment Public Notice. The Bureau 
subsequently released a second public notice on October 25, 2002, 
revising the inventory, auction start date, and seeking comment on 
procedural issues. The Bureau did not receive any comments in response 
to the Auction No. 47 Revised Comment Public Notice, 67 FR 69221 
(November 15, 2002).
i. Licenses to Be Auctioned
    3. Participation in Auction No. 47 is limited to those applicants 
who have filed the long-form applications listed in Attachment A of the 
Auction No. 47 Procedures Public Notice. All applications within a 
mutually exclusive applicant group (``MX Group'') are directly mutually 
exclusive with one another and therefore a single license will be 
auctioned for each MX Group identified in Attachment A of the Auction 
No. 47 Procedures Public Notice. The winning bidder for a particular MX 
Group will be authorized to construct only the facilities proposed in 
its long-form application(s) for that MX Group as identified in 
Attachment A of the Auction No. 47 Procedures Public Notice.
    4. As stated in the Competitive Bidding Ninth Report and Order, 61 
FR 58333 (November 14, 1996), all pending mutually exclusive 
applications for unserved area licenses in the Cellular Radiotelephone 
Service must be resolved through a system of competitive bidding. When 
the short-form applications of two or more applicants within an MX 
Group are accepted for filing, mutual exclusivity exits 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 license.

[[Page 77274]]

B. Rules and Disclaimers

i. Relevant Authority
    5. Prospective bidders must familiarize themselves thoroughly with 
the Commission's rules relating to the Cellular Radiotelephone Service 
contained in title 47, 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. Prospective 
bidders must also be thoroughly familiar with the procedures, terms and 
conditions (collectively, ``Terms'') contained in the Auction No. 47 
Procedures Public Notice; the Auction No. 47 Comment Public Notice and 
the Auction No. 47 Revised Comment Public Notice; and the Part 1 Fifth 
Report and Order, 65 FR 52401 (August 29, 2000), (as well as prior and 
subsequent Commission proceedings regarding competitive bidding 
procedures).
    6. Auction participants bidding on licenses for cellular unserved 
service areas should also be familiar with the Competitive Bidding 
Ninth 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 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 via e-mail [email protected]. When ordering documents from Qualex, 
please provide the appropriate FCC number (for example, FCC 96-361 for 
the Competitive Bidding Ninth Report and Order).
ii. Prohibition of Collusion
    8. To ensure the competitiveness of the auction process, the 
Commission's rules prohibit competing applicants 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.
    9. Bidders in Auction No. 47 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. 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.
    10. 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 competing 
applicants. By signing their FCC form 175 short-form applications, 
applicants are certifying their compliance with Sec.  1.2105(c).
    11. 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.
    12. A summary listing of documents from the Commission and the 
Bureau addressing the application of the anti-collusion rules may be 
found in Attachment E of the Auction No. 47 Procedures Public Notice.
iii. Due Diligence
    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. The Bureau notes that 
resolution of these matters could have an impact on the availability of 
spectrum in Auction No. 47. 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. 47.
    15. 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 unserved areas for which they plan to 
bid.
iv. Bidder Alerts
    16. 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,

[[Page 77275]]

exclusion from participation in future auctions, and/or criminal 
prosecution.
    17. The FCC makes no representations or warranties about the use of 
this spectrum for particular services. Applicants should be aware that 
an FCC auction represents an opportunity to become an FCC licensee in 
this service, subject to certain conditions and regulations. An FCC 
auction does not constitute an endorsement by the FCC of any particular 
services, technologies or products, nor does an FCC license constitute 
a guarantee of business success. Applicants and interested parties 
should perform their own due diligence before proceeding, as they would 
with any new business venture.
    18. As is the case with many business investment opportunities, 
some unscrupulous entrepreneurs may attempt to use Auction No. 47 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 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 FCC knowledge or 
approval of the solicitation.
    19. 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. 47 may also call the FCC 
Consumer Center at (888) CALL-FCC ((888)225-5322).
v. National Environmental Policy Act (``NEPA'') Requirements
    20. 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. 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
    21. The auction will be held on Wednesday, February 12, 2003. 
Unless otherwise announced, all seven licenses will be offered at the 
same time with bidders placing one bid per license. The start and 
finish times for the bidding round will be announced by public notice 
at least one week before the start of the auction.
ii. Auction Title
    22. Auction No. 47--Closed Cellular Unserved.
iii. Bidding Methodology
    23. The bidding methodology for Auction No. 47 will be single-round 
sealed-bid. 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
    24. Listed are important dates associated with Auction No. 47:

 
 
 
Short-Form Application (FCC FORM 175).....  January 13, 2003; 6 p.m.
                                             e.t.
Upfront Payments (via wire transfer)......  January 27, 2003; 6 p.m.
                                             e.t.
Mock Auction..............................  February 7, 2003.
Auction...................................  February 12, 2003.
 

v. Requirements for Participation
    25. Those wishing to participate in the auction must:
    [sbull] Submit a short-form application (FCC form 175) 
electronically by 6 p.m. e.t., January 13, 2003.
    [sbull] Submit a sufficient upfront payment and an FCC Remittance 
Advice Form (FCC Form 159) by 6 p.m. e.t., January 27, 2003.
    [sbull] Comply with all provisions outlined in the Auction No. 47 
Procedures Public Notice.
vi. General Contact Information
    26. The following is a list of general information relating to 
Auction No. 47:
General Auction Information: General Auction Questions--FCC Auctions 
Hotline, (888) 225-5322, Press Option 2, or direct (717) 338-
2888. Hours of service: 8 a.m.-5:30 p.m. e.t.
Auction Legal Information: Auctions Rules, Policies, Regulations--
Auction 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 8 a.m. to 6 p.m. 
e.t.
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: Lauren Kravetz (202) 418-7944.
FCC Forms: (800) 418-3676 (outside Washington, DC). (202) 418-3676 (in 
the Washington Area). http://www.fcc.gov/formpage.html.
FCC Internet Sites: http://www.fcc.gov. http://wireless.fcc.gov/auctions. http://wireless.fcc.gov/uls.

[[Page 77276]]

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

    27. Guidelines for completion of the short-form application (FCC 
form 175) are set forth in Attachment C to the Auction No. 47 
Procedures Public Notice. The short-form application seeks the 
applicant's name and address, legal classification, status, 
identification of the license(s) sought, the authorized bidders and 
contact persons. 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 
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.
    28. The Commission determines whether mutual exclusivity exists for 
auction purposes by reviewing all of the short-form (FCC form 175) 
applications that have been accepted for filing. In the event that 
review of all the FCC form 175 applications accepted for filing 
determines that only one applicant in a given MX Group has applied for 
the license to be auctioned for that MX Group, that license will be 
removed from the auction. In such a case, the Commission will process 
the long-form application(s) of the party that applied for the given 
license on its FCC form 175 and dismiss the long-form application(s) of 
the other applicant. In the event that neither applicant in a given MX 
Group applies for the license to be auctioned for that MX Group, the 
long-form application(s) of both applicants will be dismissed.

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

    29. Applicants must comply with the uniform part 1 ownership 
disclosure standards and provide information required by Sec. Sec.  
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)

    30. 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. As discussed above, 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 
competing applicants after the deadline. Where applicants have entered 
into consortia or joint bidding arrangements, applicants must submit an 
``Exhibit B'' to the FCC form 175.
    31. 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 
competing applicants 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. Bidding Credit Eligibility

    32. Bidding credits for designated entities will not be available 
in Auction No. 47. To encourage the growth of wireless services in 
federally recognized tribal lands the Commission has implemented a 
tribal land bidding credit. See section V.C, infra.

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

    33. 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 C 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.
    34. ``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. 47, provided that they are otherwise qualified. 
However, former defaulters are required to pay upfront payments that 
are fifty percent more than the normal upfront payment amounts.

E. Installment Payments

    35. Installment payment plans will not be available in Auction No. 
47.

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

    36. Applicants owned by minorities or women, as defined in 47 CFR 
1.2110(c)(2), may attach an exhibit (Exhibit D) regarding this status. 
This applicant status information is collected for statistical purposes 
only and assists the Commission in monitoring the participation of 
``designated entities'' in its auctions. Applicants wishing to submit 
additional information may do so on Exhibit E (Miscellaneous 
Information) to the FCC form 175.

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

    37. After the short-form filing deadline (January 13, 2003), 
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.,

[[Page 77277]]

change their license selections or proposed service areas, change the 
certifying official or change control of the applicant). 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 must make these modifications to their FCC form 
175 electronically and should 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 should 
include a subject or caption referring to Auction No. 47. The Bureau 
requests that parties format any attachments to electronic mail as 
Adobe[reg] Acrobat[reg] (pdf) or Microsoft[reg] Word documents.
    38. 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.

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

    39. 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

    40. An auction seminar will not be held for Auction No. 47. 
Applicants having questions about pre-auction procedures, conduct of 
the auction, the FCC Automated Auction System , or the Cellular 
Radiotelephone Service and auction rules are encouraged to contact the 
appropriate staff listed in the Auction No. 47 Procedures Public 
Notice.

B. Short-Form Application (FCC Form 175)--Due January 13, 2003

    41. In order to be eligible to bid in this auction, each applicant 
must first submit an FCC form 175 application with the license(s) 
selected. This application must be submitted electronically and 
received at the Commission no later than 6 p.m. e.t. on January 13, 
2003. Late applications will not be accepted.
    42. There is no application fee required when filing an FCC Form 
175. However, to be eligible to bid, an applicant must submit an 
upfront payment. See part III.D.
i. Electronic Filing
    43. Applicants must file their FCC form 175 applications 
electronically. Applications may generally be filed at any time 
beginning at 9 a.m. e.t. on January 7, 2003, until 6 p.m. e.t. on 
January 13, 2003. 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 p.m. e.t. on 
January 13, 2003.
    44. 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 B. Technical support is available at (202) 414-1250 (voice) 
or (202) 414-1255 (text telephone (TTY)); hours of service Monday 
through Friday, from 8 a.m. to 6 p.m. e.t. In order to provide better 
service to the public, all calls to the hotline are recorded.
    45. 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
    46. 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 C of the Auction No. 47 Procedures 
Public Notice. Applicants are encouraged to begin preparing the 
required attachments for FCC form 175 prior to submitting the form. 
Attachments B and C to the Auction No. 47 Procedures Public Notice 
provide information on the required attachments and appropriate 
formats.
iii. Electronic Review of FCC Form 175
    47. 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 B of the Auction No. 47 
Procedures Public Notice for details on accessing the review system.

C. Application Processing and Minor Corrections

    48. 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.
    49. As described more fully in the Commission's rules, after the 
January 13, 2003, 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, 
or change control of the applicant).

D. Upfront Payments--Due January 27, 2003

    50. In order to be eligible to bid in the auction, applicants must 
submit an upfront payment accompanied by an FCC Remittance Advice form 
(FCC form 159). After completing the FCC form 175, filers will have 
access to an electronic version of the FCC form 159 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. e.t. on January 27, 2003.
    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. 47 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.
    [sbull] Failure to deliver the upfront payment by the January 27, 
2003, deadline will result in dismissal of the application and 
disqualification from participation in the auction.
i. Making Auction Payments by Wire Transfer
    51. Wire transfer payments must be received by 6 p.m. e.t. on 
January 27,

[[Page 77278]]

2003. 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  910-0198.
    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: A47U).
    FCC Code 1 (same as FCC form 159, block 28A: ``47'').
    Payer Name (same as FCC form 159, block 2).
    Lockbox No. 358410.

    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.

    52. 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. 47.'' Bidders should confirm receipt of their upfront 
payment at Mellon Bank by contacting their sending financial 
institution.
ii. FCC Form 159
    53. 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 D to the 
Auction No. 47 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
    54. In the Part 1 Order, Memorandum Opinion and Order, and Notice 
of Proposed Rule Making, 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, 
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.''
    55. In both the Auction No. 47 Comment Public Notice and Auction 
No. 47 Revised Comment Public Notice, the Bureau proposed that the 
amount of the upfront payment would determine the number of bidding 
units on which a bidder may place bids. 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 a bid.
    56. In both the Auction No. 47 Comment Public Notice and Auction 
No. 47 Revised Comment Public Notice, the Bureau proposed to set the 
upfront payment for each license at $500 per license. Having received 
no comments regarding the amount of the proposed upfront payments, the 
Bureau therefore adopts its proposed upfront payment amounts for 
Auction No. 47. The specific upfront payments and bidding units for 
each license are set forth in Attachment A of the Auction No. 47 
Procedures Public Notice.
    57. In calculating its upfront payment amount, an applicant should 
determine the maximum number of bidding units on which it may wish to 
bid on, 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 plans to 
bid. Bidders should check their calculations carefully, as there is no 
provision for increasing a bidder's maximum eligibility after the 
upfront payment deadline.
    58. 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 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
    59. The Commission will use wire transfers for all Auction No. 47 
refunds. To ensure that refunds of upfront payments are processed in an 
expeditious manner, the Commission is requesting that all pertinent 
information as listed below be supplied to the FCC. Applicants can 
provide the information electronically 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 January 27, 2003. 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 Gail Glasser at (202) 418-0578 
or Tim Dates at 202-418-0496.

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

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

E. Auction Registration

    60. Approximately 10 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.
    61. All qualified bidders are automatically registered for the 
auction. Registration materials will be distributed prior to the 
auction by two separate overnight mailings, one

[[Page 77279]]

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.
    62. 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, February 5, 2003, 
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.
    63. 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

    64. 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 electronically or telephonically , 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. 47. 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.
    65. 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

    66. All qualified bidders will be eligible to participate in a mock 
auction on Friday, February 7, 2003. 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

    67. Auction No. 47 will be held on Wednesday, February 12, 2003. 
The start and finish time of the bidding round will be announced in a 
later public notice, which will be released approximately 10 days 
before the start of the auction.

A. Auction Structure

i. Single Round Sealed Bid Auction
    68. In both the Auction No. 47 Comment Public Notice and Auction 
No. 47 Revised Comment Public Notice, the Bureau proposed to award all 
licenses in Auction No. 47 using a single-round sealed-bid auction 
design. In its comments, Western Wireless objects to this design 
proposal and urges the Bureau instead to utilize a simultaneous 
multiple-round auction or, if that is not possible, a ``sealed-second-
bid'' single round design. Western Wireless contends that there exists 
informational advantages to using these alternative auction formats. 
The Bureau believes that due to the unusual circumstances of Auction 
No. 47, in which there are only two bidders, both of whom are very 
familiar with the areas to be licensed, these informational advantages 
are not necessary. Therefore, the Bureau concludes that it is 
operationally feasible and appropriate to auction the cellular unserved 
service area licenses through a single-round sealed-bid auction.
ii. Maximum Eligibility
    69. In both the Auction No. 47 Comment Public Notice and Auction 
No. 47 Revised Comment Public Notice, the Bureau proposed that the 
amount of the upfront payment submitted by a bidder would determine the 
maximum eligibility (as measured in bidding units) for each bidder. The 
Bureau received no comments on this issue.
    70. For Auction No. 47, the Bureau adopts its proposal. The amount 
of the upfront payment submitted by a bidder determines the number of 
bidding units on which a bidder may place bids. Note again that each 
license is assigned a specific number of bidding units equal to the 
upfront payment listed in Attachment A on a bidding unit per dollar 
basis. The total upfront payment defines the maximum number of bidding 
units on which the applicant will be permitted to bid. As there is no 
provision for increasing a bidder's maximum eligibility after the 
upfront payment deadline, 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 any license.
iii. Auction Delay or Cancellation
    71. In the Auction No. 47 Comment Public Notice, the Bureau 
proposed that, by public notice or by announcement during the auction, 
the Bureau may delay 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.
    72. 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 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 or cancel the auction in 
its entirety. Network interruption may cause the Bureau to delay the 
auction. The Bureau emphasizes that exercise of this authority is 
solely within the discretion of the Bureau.

B. Bidding Procedures

i. Round Structure
    73. The single-round sealed-bid format will consist of one bidding 
round followed by the release of the auction results. The start and 
finish time of the bidding round will be announced in the public notice 
listing the qualified bidders, which is released approximately 10 days 
before the start of the auction.

[[Page 77280]]

ii. Reserve Price or Minimum Opening Bid
    74. 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. 
The Commission concluded that the Bureau should have the discretion to 
employ either or both of these mechanisms for future auctions.
    75. In both the Auction No. 47 Comment Public Notice and Auction 
No. 47 Revised Comment Public Notice, the Bureau proposed to establish 
minimum opening bids for Auction No. 47 in the amount of $500 per 
license. The Bureau received no comments concerning this proposal. 
Therefore, the minimum opening bid for each license is set at $500 and 
is set forth in Attachment A of the Auction No. 47 Procedures Public 
Notice.
iii. Bidding
    76. During the bidding round, a bidder may place bids in any whole 
dollar amount equal to or greater than the minimum opening bid for as 
many licenses as it wishes (subject to its eligibility). Bidders also 
have the option of making multiple submissions during the bidding 
round. If a bidder submits multiple bids for a single license in the 
same round, the system takes the last bid submitted as that bidder's 
bid.
    77. 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 call well in advance of 
the close of the round. Normally, four to five minutes are necessary to 
complete a bid submission.) There will be no on-site bidding during 
Auction No. 47.
    78. A bidder's ability to bid on specific licenses in 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.
    79. 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 a bid confirmation after they 
submit their bids.
    80. Finally, bidders are cautioned that they should type their bid 
amounts carefully because, even if mistakenly or erroneously made, 
bidders still assume a binding obligation to pay their full bid amount.
iv. Bid Removal and Bid Withdrawal
    81. In the Auction No. 47 Comment Public Notice, the Bureau 
proposed bid removal and bid withdrawal procedures. With respect to bid 
withdrawals, the Bureau proposed not to allow any bid withdrawals in 
Auction No. 47. The Bureau received no comments on this issue. 
Therefore, the Bureau adopts its proposal.
    82. Bid Removal Procedures. Before the close of the bidding round, 
a bidder has the option of removing any bids placed in the round. By 
using the ``remove bid'' function in the bidding system, a bidder may 
effectively ``unsubmit'' any bid placed within the round.
v. Winning Bids and Tie Bids
    83. At the end of the bidding round, the winning bids will be 
determined based on the highest gross bid amount received for each 
license. In the event of identical bids on a license (i.e., tied bids), 
the Bureau proposed to allow an additional bidding round for bidders to 
submit higher bids for only the license(s) with tied bids. The 
Commission would announce the schedule for the subsequent round, via an 
announcement in the Auctions Bidding System, concurrent with the 
release of round results. In the event of tied bids, the Bureau 
proposed to use a random number generator to select a high bid from 
among the tied bids. A random number will be assigned to each bid. The 
tie bid having the highest random number will become the high bid. The 
remaining bidder, as well as the high bidder, will be able to submit 
higher bid in the next round. If neither bidder submits a higher bid, 
the high bid from the previous round will win the license. If any bids 
are received in the next round, the winning bid will be determined on 
the highest gross bid amount received for each license. The Bureau 
received no comments on its proposal. Therefore, the Bureau adopts its 
proposal.
vi. Auction Announcements
    84. The FCC will use auction announcements to announce items such 
as the schedule for a subsequent round in the event of tied bids on a 
license. All FCC auction announcements will be available by clicking on 
a link in the Automated Auction System.
vii. Maintaining the Accuracy of FCC Form 175 Information
    85. 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 must make these modifications to their 
FCC form 175 electronically and should 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 should include a subject or caption referring to Auction 
No. 47. The Bureau requests that parties format any attachments to 
electronic mail as Adobe[reg] Acrobat[reg] (pdf) or Microsoft[reg] Word 
documents.
    86. 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.

V. Post-Auction Procedures

A. Down Payments

    87. After the auction has ended, the Commission will issue a public 
notice declaring the auction closed, identifying winning bidders and 
any down payments due.
    88. Within 10 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 winning bids. See 47 CFR 
1.2107(b).

B. Long-Form Applications

    89. Within an MX Group, the previously filed long-form 
applications(s) of the unsuccessful bidder will be dismissed following 
the grant of the winning bidder's license.

C. Tribal Land Bidding Credit

    90. A winning bidder that intends to use its license(s) to deploy 
facilities and

[[Page 77281]]

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).
    91. A winning bidder applies for the tribal land bidding credit 
after winning the auction. Instructions for applying for this credit 
will be provided in a public notice after the close of the auction. 
Licensees receiving a tribal land bidding credit are subject to 
performance criteria as set forth in 47 CFR 1.2110(f).
    92. 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

    93. Any winning 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 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. 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.

E. Refund of Remaining Upfront Payment Balance

    94. Applicants that submitted upfront payments but were not a 
winning bidder for a license in Auction No. 47 may be entitled to a 
refund of their remaining 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 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 Tim 
Dates at (202) 418-0496 or Gail Glasser at (202) 418-0578.


    Federal Communications Commission.
Margaret Wiener,
Chief, Auctions & Industry Analysis Division, WTB.
[FR Doc. 02-31634 Filed 12-16-02; 8:45 am]
BILLING CODE 6712-01-P