[Federal Register Volume 68, Number 113 (Thursday, June 12, 2003)]
[Notices]
[Pages 35216-35225]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14813]


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FEDERAL COMMUNICATIONS COMMISSION

[Report No. AUC-03-54-B (Auction No. 54); DA 03-1547]


Closed Broadcast Auction No. 54 Construction Permits for New 
Broadcast Stations Scheduled for July 23, 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, minimum opening bids, 
and revised inventory for the upcoming auction of construction permits 
for new full power television (TV), low power television (LPTV), and FM 
broadcast stations (``Auction No. 54'') scheduled for July 23, 2003. 
This document is intended to familiarize prospective bidders with the 
procedures and minimum opening bids for this auction.

DATES: Auction No. 54 is scheduled to begin on July 23, 2003.

FOR FURTHER INFORMATION CONTACT: Auctions and Industry Analysis 
Division: Kenneth Burnley, Legal Branch at (202) 418-0660; Lyle Ishida, 
Operations Branch at (202) 418-0660 or Linda Sanderson, Operations 
Branch at (717) 338-2888. Audio Division: Lisa Scanlan at (202) 418-
2700. Video Division: Shaun Maher at (202) 418-1600.

SUPPLEMENTARY INFORMATION: This is a summary of the Auction No. 54 
Procedures Public Notice released on May 12, 2003. The complete text of 
the Auction No. 54 Procedures Public Notice, including attachments, is 
available for public inspection and copying during regular business 
hours at the FCC Reference Information Center, Portals II, 445 12th 
Street, SW., Room CY-A257, Washington, DC, 20554. The Auction No. 54 
Procedures Public Notice may also be purchased from the Commission's 
duplicating contractor, Qualex International, Portals II, 445 12th 
Street, SW., Room CY-B402, Washington, DC, 20554, telephone 202-863-
2893, facsimile 202-863-2898, or via e-mail [email protected]. This 
document is also available on the Internet at the Commission's Web 
site: http://wireless.fcc.gov/auctions/54/.

I. General Information

A. Introduction

    1. The Auction No. 54 Procedures Public Notice announces the 
procedures and minimum opening bids for the upcoming auction of 
construction permits for new full power television (TV), low power 
television (LPTV), and FM broadcast stations (``Auction No. 54''), 
scheduled for July 23, 2003. On April 11, 2003, in accordance with the 
Balanced Budget Act of 1997, the Media Bureau (``MB'') and the Wireless 
Telecommunications Bureau (``WTB'') (collectively, the ``Bureaus'') 
released the Auction No. 54 Comment Public Notice, 68 FR 19816 (April 
22, 2003), seeking comment on the establishment of reserve prices and/
or minimum opening bids and other procedures for

[[Page 35217]]

Auction No. 54. The Bureaus received no comments in response to the 
Auction No. 54 Comment Public Notice.
i. Construction Permits To Be Auctioned
    2. Auction No. 54 will include construction permits for one TV, two 
LPTV, and four FM broadcast stations. These broadcast stations are the 
subject of pending, mutually exclusive FCC Form 301 or Form 346 
applications for construction permits for the referenced broadcast 
services, for which the Commission has not approved a settlement 
agreement that obviates the need for an auction. Pursuant to the 
Broadcast First Report and Order, 63 FR 48615 (September 11, 1998), 
participation in this auction is limited to the applicants identified 
in Attachment A of the Auction No. 54 Procedures Public Notice. All 
applications within a mutually exclusive applicant group (``MX Group'') 
are directly mutually exclusive with one another, and therefore a 
single construction permit will be auctioned for each MX Group 
identified in Attachment A of the Auction No. 54 Procedures Public 
Notice. Applicants will be eligible to bid on only those construction 
permits selected on their previously filed FCC Form 301 or Form 346. 
The minimum opening bids and upfront payments for these broadcast 
construction permits are also included in Attachment A of the Auction 
No. 54 Procedures Public Notice.
    3. 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 (FCC Form 175) are accepted for filing within an MX Group, 
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 construction permit.

B. Rules and Disclaimers

i. Relevant Authority
    4. Prospective bidders must familiarize themselves thoroughly with 
the Commission's rules relating to broadcast auctions, contained in 
title 47, part 73 of the Code of Federal Regulations. Prospective 
bidders must also be thoroughly familiar with the procedures, terms and 
conditions (collectively, ``terms'') contained in the Auction No. 54 
Procedures Public Notice; the Auction No. 54 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). Potential bidders 
must also familiarize themselves with part 1, subpart Q of the 
Commission's rules concerning competitive bidding proceedings. In 
particular, broadcasters should also familiarize themselves with the 
Commission's recent amendments and clarifications to its general 
competitive bidding rules.
    5. 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 document 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
    6. To ensure the competitiveness of the auction process, the 
Commission's rules prohibit applicants for the same market from 
communicating with each other during the auction about bids, bidding 
strategies, or settlements. This prohibition begins at the short-form 
application filing deadline and ends at the down payment deadline after 
the auction. Bidders competing for construction permits in the same 
market 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.
    7. 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. The Commission's anti-
collusion rules allow applicants to form certain agreements during the 
auction, provided the applicants have not applied for construction 
permits in the same market. In Auction No. 54, for example, the rule 
would apply to any applicants bidding for the same market (i.e., 
Victor, ID, MX Groups FM2 and FM3). Therefore, applicants that apply to 
bid for any construction permit in the same market would be precluded 
from communicating after filing the FCC Form 175 application with any 
other applicant for a construction permit in that same market. However, 
all 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 FCC Form 175. If parties agree in principle on 
all material terms prior to the short-form filing deadline, those 
parties must be identified on the short-form application pursuant to 
Sec.  1.2105(c), even if the agreement has not been reduced to writing. 
If the parties have not agreed in principle by the filing deadline, an 
applicant would not include the names of those parties on its 
application, and may not continue negotiations with other applicants 
for the same market. By signing their FCC Form 175 applications, 
applicants are certifying their compliance with Sec. Sec.  1.2105(c) 
and 73.5002.
    8. 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 and 1.2105 require 
an auction applicant to notify the Commission of any violation of the 
anti-collusion rules upon learning of

[[Page 35218]]

such violation. Bidders therefore are required to make such 
notification to the Commission immediately upon discovery.
    9. A summary listing of documents from the Commission and the 
Bureaus addressing the application of the anti-collusion rules may be 
found in Attachment F of the Auction No. 54 Procedures Public Notice.
iii. Due Diligence
    10. 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 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.
    11. Potential bidders are strongly encouraged to conduct their own 
research prior to Auction No. 54 in order to determine the existence of 
pending proceedings that might affect their decisions regarding 
participation in the auction. Participants in Auction No. 54 are 
strongly encouraged to continue such research during the auction.
    12. 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. 54.
    13. Potential bidders for the new full power television facility 
should note that, in November 1999, Congress enacted the Community 
Broadcasters Protection Act of 1999 (CBPA) which established a new 
Class A television service. In response to the enactment of the CBPA, 
the Commission adopted rules to establish the new Class A television 
service. In the Class A Report and Order, 65 FR 29985 (May 10, 2000), 
the Commission adopted rules to provide interference protection for 
eligible Class A television stations from new full power television 
stations. Given the Commission's ruling in the Class A Report and 
Order, the winning bidder in Auction No. 54, upon submission of its 
long-form application (FCC Form 301), will have to provide interference 
protection to qualified Class A television stations. Therefore, 
potential bidders are encouraged to perform engineering studies to 
determine the existence of Class A television stations and their effect 
on the ability to operate the full power television station proposed in 
this auction. Information about the identity and location of Class A 
television stations is available from the Media Bureau's Consolidated 
Database System (CDBS) (public access available at: http://www.fcc.gov/mb) and on the Media Bureau's Class A television web page: http://www.fcc.gov/mb/video/files/classa.html
    14. Potential bidders for the new full power television facility 
are also reminded that full service television stations are in the 
process of converting from analog to digital operation and that 
stations may have pending applications to construct and operate digital 
television facilities, construction permits and/or licenses for such 
digital facilities. Bidders should investigate the impact such 
applications, permits and licenses may have on their ability to operate 
the facilities proposed in this auction.
    15. Potential bidders should direct questions regarding the search 
capabilities of CDBS to the Media Bureau help line at (202) 418-2662, 
or via e-mail at [email protected].
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 construction permit, and 
not in default on any payment for Commission construction permits or 
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, construction permit or license revocations, exclusion from 
participation in future auctions, and/or criminal prosecution.
    17. As is the case with many business investment opportunities, 
some unscrupulous entrepreneurs may attempt to use Auction No. 54 to 
deceive and defraud unsuspecting investors. 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. 54 may also call the FCC Consumer Center at (888) CALL-FCC 
((888) 225-5322).
v. National Environmental Policy Act (NEPA) Requirements
    18. Permittees must comply with the Commission's rules regarding 
the National Environmental Policy Act (NEPA). The construction of a 
broadcast facility is a federal action and the permittee must comply 
with the Commission's NEPA rules for each such facility.

C. Auction Specifics

i. Auction Date
    19. Auction No. 54 will begin on Wednesday, July 23, 2003. 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
    20. Auction No. 54--Closed Broadcast.
iii. Bidding Methodology
    21. The bidding methodology for Auction No. 54 will be 
simultaneous, multiple round bidding.
    The Commission will conduct this auction over the Internet, and 
telephonic bidding will be available as well.
    As a contingency plan, bidders may also dial in to the FCC Wide 
Area Network. Qualified bidders are permitted to bid telephonically or 
electronically.
iv. Pre-Auction Dates and Deadlines
    22. The following is a list of important dates related to Auction 
No. 54:

Auction Seminar--June 12, 2003
Short-Form (FCC Form 175) Filing Window Opens--June 12, 2003; 12 p.m. 
ET
Short-Form (FCC Form 175) Application Deadline--June 20, 2003; 6 p.m. 
ET
Upfront Payments (via wire transfer)--July 3, 2003; 6 p.m. ET
Mock Auction--July 18, 2003
Auction Begins--July 23, 2003
i. Requirements for Participation
    23. Those wishing to participate in the auction must:

[[Page 35219]]

    [sbull] Submit a short form application (FCC Form 175) 
electronically by 6 p.m. ET, June 20, 2003. No other application may be 
substituted for the FCC Form 175.
    [sbull] Submit a sufficient upfront payment and an FCC Remittance 
Advice Form (FCC Form 159) by 6 p.m. ET, July 3, 2003.
    [sbull] Comply with all provisions outlined in this public notice 
and applicable Commission rules.
i. General Contact Information
    24. The following is a list of general contact information related 
to Auction No. 54:
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, Polices, Regulations; Licensing Issues; Due Diligence Incumbency 
Issues--Audio Division (202) 418-2700; Video 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
Qualex International


Additional Copies of Commission documents--Portals II, 445 12th Street, 
SW., Room CY-B402, Washington, DC 20554, (202) 863-2893, (202) 863-
2898, (Fax), [email protected] (E-mail)
PRESS INFORMATION
Meribeth McCarrick (202) 418-0654
FCC FORMS
(800) 418-3676 (outside Washington, DC), (202) 418-3676 (in the 
Washington Area), http://www.fcc.gov/formpage.html
FCC INTERNET SITES
http://www.fcc.gov
http://wireless.fcc.gov/auctions
http://www.fcc.gov/mb

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

    25. Guidelines for completion of the short-form application (FCC 
Form 175) are set forth in Attachment D of the Auction No. 54 
Procedures Public Notice.

A. License Selection

    26. The Bureaus notes that as part of the FCC Form 175 filing 
process, applicants must identify which construction permits they may 
bid on as part of the auction. While the electronic FCC Form 175 will 
allow for the selection of all construction permits, applicants should 
only select from among those construction permits that they selected on 
their previously filed FCC Form 301 or Form 346. Applicants that select 
construction permits on their FCC Form 175 that were not selected on 
the FCC Form 301 or Form 346 will not be permitted to bid on those 
construction permits during the auction.

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

    27. The Commission indicated in the Broadcast First Report and 
Order that, for purposes of determining eligibility to participate in a 
broadcast auction, the uniform part 1 ownership disclosure standards 
would apply. Specifically, in completing FCC Form 175, all applicants 
will be required to provide information required by Sec. Sec.  1.2105 
and 1.2112 of the Commission's rules.

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

    28. 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 
construction permits 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 construction permits on which they will or will not bid.
    29. 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. Such subject areas include, but are 
not limited to, issues such as management, sales, local marketing 
agreements, rebroadcast agreements, and other transactional agreements.

D. New Entrant Bidding Credit (Form 175 Exhibit C)

    30. To fulfill its obligations under section 309(j) and further its 
long-standing commitment to the diversification of broadcast facility 
ownership, the Commission adopted a tiered New Entrant Bidding Credit 
for broadcast auction applicants with no, or very few, other media 
interests.
i. Eligibility
    31. The interests of the bidder, and of any individuals or entities 
with an attributable interest in the bidder, in other media of mass 
communications shall be considered when determining a bidder's 
eligibility for the New Entrant Bidding Credit. The bidder's 
attributable interests shall be determined as of the short-form 
application (FCC Form 175) filing dead--June 20, 2003. Bidders 
intending to divest a media interest or make any other ownership 
changes, such as resignation of positional interests, in order to avoid 
attribution for purposes of qualifying for the New Entrant Bidding 
Credit must have consummated such divestment transactions or have 
completed such ownership changes by no later than the short-form 
application filing deadline--June 20, 2003.
    32. Generally, media interests will be attributable for purposes of 
the New Entrant Bidding Credit to the same extent that such other media 
interests are considered attributable for purposes of the broadcast 
multiple ownership rules. However, attributable interests held by a 
winning bidder in existing low power television, television translator 
or FM translator facilities will not be counted among the bidders' 
other mass media interests in determining its eligibility for a New 
Entrant Bidding Credit. Full service noncommercial educational 
stations, on both reserved and non-reserved channels, are included 
among ``media of mass communications'' as defined in Sec.  73.5008(b). 
A medium of mass communications is defined in 47 CFR 73.5008 (b) and 
includes non-commercial broadcast stations. For more

[[Page 35220]]

information, see section II.C. of the Auction No. 54 Procedures Public 
Notice.
ii. Application Requirements
    33. In addition to the ownership information required on Exhibit A, 
applicants are required to file supporting documentation on Exhibit C 
to their FCC Form 175 applications to establish that they satisfy the 
eligibility requirements to qualify for a New Entrant Bidding Credit. 
In those cases where a New Entrant Bidding Credit is being sought, a 
certification under penalty of perjury must be set forth in Exhibit C.
iii. Bidding Credits
    34. Applicants that qualify for the New Entrant Bidding Credit, as 
set forth in 47 CFR 73.5007, are eligible for a bidding credit that 
represents the amount by which a bidder's winning bid is discounted. 
The size of a New Entrant Bidding Credit depends on the number of 
ownership interests in other media of mass communications that are 
attributable to the bidder-entity and its attributable interest-
holders:
    [sbull] A 35 percent bidding credit will be given to a winning 
bidder if it, and/or any individual or entity with an attributable 
interest in the winning bidder, has no attributable interest in any 
other media of mass communications, as defined in 47 CFR 73.5008;
    [sbull] A 25 percent bidding credit will be given to a winning 
bidder if it, and/or any individual or entity with an attributable 
interest in the winning bidder, has an attributable interest in no more 
than three mass media facilities, as defined in 47 CFR 73.5008;
    [sbull] No bidding credit will be given if any of the commonly 
owned mass media facilities serve the same area as the proposed 
broadcast station, as defined in 47 CFR 73.5007, or if the winning 
bidder, and/or any individual or entity with an attributable interest 
in the winning bidder, has attributable interests in more than three 
mass media facilities.
    35. Bidding credits are not cumulative; qualifying applicants 
receive either the 25 percent or the 35 percent bidding credit, but not 
both. Attributable interests are defined in 47 CFR 73.3555 and note 2 
of that section. Bidders should note that unjust enrichment provisions 
apply to a winning bidder that utilizes a bidding credit and 
subsequently seeks to assign or transfer control of its license or 
construction permit to an entity not qualifying for the same level of 
bidding credit.

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

    36. Each applicant must provide a certification on its FCC Form 175 
application, made under penalty of perjury, 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 
provide a certification on its FCC Form 175 application, made under 
penalty of perjury, indicating whether or not the applicant, its 
affiliates, its controlling interests, or the affiliates of its 
controlling interest, have ever been in default on any Commission 
licenses or have ever been delinquent on any non-tax debt owed to any 
federal agency. The applicant must provide such information for itself, 
its affiliates, its controlling interests, and the affiliates of its 
controlling interests, as defined by Sec.  1.2110 of the Commission's 
rules (as amended in the Part 1 Fifth Report and Order). Applicants 
must include this statement as Exhibit D of the FCC Form 175.
    37. ``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. 54, provided that they are otherwise qualified. 
However, as discussed infra in section III.D.iii, former defaulters are 
required to pay upfront payments that are fifty percent more than the 
normal upfront payment amounts.

E. Installment Payments

    38. Installment payment plans will not be available in Auction No. 
54.

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

    39. Applicants owned by minorities or women, as defined in 47 CFR 
1.2110(b)(2), may attach an exhibit (Exhibit E) regarding this status. 
This applicant status information is collected for statistical purposes 
only and assists the Commission in monitoring the participation of 
``designated entities'' in its auctions. Applicants must specify the 
file number of the pending FCC Form 301 or Form 346 on Exhibit F 
(Miscellaneous Information). Applicants wishing to submit additional 
information may do so on Exhibit F.

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

    40. After the short-form application filing deadline (June 20, 
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., change their construction 
permit selections, 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). Permissible minor changes include, for example, deletion and 
addition of authorized bidders (to a maximum of three) and revision of 
exhibits. Applicants should make these modifications to their FCC Form 
175 electronically and submit a letter, briefly summarizing the 
changes, by electronic mail to the attention of Margaret Wiener, Chief, 
Auctions and Industry Analysis Division, at the following address: 
[email protected]. The electronic mail summarizing the changes must 
include a subject or caption referring to Auction No. 54. The Bureaus 
requests that parties format any attachments to electronic mail as 
Adobe[reg] Acrobat[reg] (pdf) or Microsoft[reg] Word documents.
    41. A separate copy of the letter should be faxed to the attention 
of Kathryn Garland at (717) 338-2850.

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

    42. 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

    43. On June 12, 2003 the FCC will sponsor a free seminar for 
Auction No. 54 at the Federal Communications Commission, located at 445 
12th Street, SW., Washington, DC. The seminar will provide attendees 
with information about pre-auction procedures, conduct of the auction, 
the FCC Automated Auction System, and the broadcast service and auction 
rules.

B. Short-Form Application (FCC Form 175)--Due June 20, 2003

    44. In order to be eligible to bid in this auction, applicants must 
first submit an

[[Page 35221]]

FCC Form 175 application. This application must be submitted 
electronically and received at the Commission no later than 6 p.m. ET 
on June 20, 2003. Late applications will not be accepted.
    45. There is no application fee required when filing an FCC Form 
175.
i. Electronic Filing
    46. Applicants must file their FCC Form 175 applications 
electronically. Applications may generally be filed at any time 
beginning at 12 noon ET on June 12, 2003, until 6 p.m. ET on June 20, 
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 on June 20, 2003.
    47. Applicants must press the ``SUBMIT Application'' button on the 
``Submission'' page of the electronic form to successfully submit their 
FCC Form 175s. Any form that is not submitted will not be reviewed by 
the FCC. Information about accessing the FCC Form 175 is included in 
Attachment C of the Auction No. 54 Procedures Public Notice. Technical 
support is available at (202) 414-1250 (voice) or (202) 414-1255 (text 
telephone (TTY)); hours of service are Monday through Friday, from 8 
a.m. to 6 p.m. ET. In order to provide better service to the public, 
all calls to the hotline are recorded.
ii. Completion of the FCC Form 175
    48. Applicants should carefully review 47 CFR 1.2105 and 73.5002, 
and must complete all items on the FCC Form 175. Instructions for 
completing the FCC Form 175 are in Attachment D of the Auction No. 54 
Procedures Public Notice.
iii. Electronic Review of FCC Form 175
    49. The FCC Form 175 electronic review system may be used to locate 
and print applicants' FCC Form 175 information. There is no fee for 
accessing this system. See Attachment C of the Auction No. 54 
Procedures Public Notice for details on accessing the review system.
    50. 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. Note: 
Applicants should not include sensitive information (i.e., Taxpayer 
Identification Number or Employer Identification Number) on any 
exhibits to their FCC Form 175 applications.

C. Application Processing and Minor Corrections

    51. 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 
(including FCC account numbers and the construction permits for which 
they applied); (ii) those applications rejected; and (iii) those 
applications which have minor defects that may be corrected, and the 
deadline for filing such corrected applications.

D. Upfront Payments--Due July 3, 2003

    52. 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. ET on July 3, 2003. For specific 
instructions regarding upfront payments, see section III.D. of the 
Auction No. 54 Procedures Public Notice.
i. Making Auction Payments by Wire Transfer
    53. Wire transfer payments must be received by 6 p.m. ET on July 3, 
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.
    54. 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. 54.'' Bidders should confirm the receipt of their 
upfront payment at Mellon Bank by contacting their sending financial 
institution. Detailed instructions for completion of FCC Form 159 are 
included in Attachment E of the Auction No. 54 Procedures Public 
Notice.
ii. Amount of Upfront Payment
    55. 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, 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.'' In the Auction No. 54 Comment Public Notice, the Bureaus 
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 construction permit, otherwise qualified bidders that applied 
for that construction permit on FCC Form 175 must have an eligibility 
level that meets the number of bidding units assigned to that 
construction permit. (While the electronic FCC Form 175 allows for the 
selection of all construction permits, applicants should only select 
from among those construction permits that they selected on their 
previously filed FCC Form 301 or Form 346). At a minimum, an 
applicant's total upfront payment must be enough to establish 
eligibility to bid on at least one construction permit applied for on 
FCC Form 175, or else the applicant will not be eligible to participate 
in the auction. No comments were received; therefore, the Bureaus adopt 
its proposal. The specific upfront payments and bidding units for each 
construction permit are set forth in Attachment A of the Auction No. 54 
Procedures Public Notice.
    56. In calculating its upfront payment amount, an applicant should 
determine the maximum number of bidding units on which it may wish to 
be active (bidding units associated with construction permits on which 
the bidder has the standing high bid from the previous round and 
construction permits on which the bidder places a bid in the current 
round) in any single round, and submit an upfront payment covering that 
number of bidding units. In order to make this calculation, an 
applicant should add together the upfront payments for all construction 
permits on which it seeks to bid in any given round. Bidders should 
check their calculations carefully, as there is no provision for 
increasing a bidder's maximum eligibility after the upfront payment 
deadline.
    57. 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.


[[Page 35222]]


    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.

iii. Applicant's Wire Transfer Information for Purposes of Refunds of 
Upfront Payments
    58. The Commission will use wire transfers for all Auction No. 54 
refunds. To ensure that refunds of upfront payments are processed in an 
expeditious manner, the Commission is requesting that all pertinent 
information as listed be supplied to the FCC. Applicants can provide 
the information electronically during the initial short-form filing 
window after the form has been submitted. Wire Transfer Instructions 
can also be manually faxed to the FCC, Financial Operations Center, 
Auctions Accounting Group, ATTN: Gail Glasser or Tim Dates, at (202) 
418-2843 by July 3, 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
Correspondent Bank (if applicable)
ABA Number
Account Number

E. Auction Registration

    59. 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 that have timely submitted upfront 
payments sufficient to make them eligible to bid on at least one of the 
construction permits for which they applied.
    60. All qualified bidders are automatically registered for the 
auction. Registration materials will be distributed prior to the 
auction by two separate overnight mailings, each containing the 
confidential bidder identification number (BIN) and the other 
containing the SecurID cards, both of which are required to place bids. 
These mailings will be sent only to the contact person at the contact 
address listed in the FCC Form 175.
    61. 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, July 16, 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.
    62. Qualified bidders should note that lost bidder identification 
numbers or SecurID cards can be replaced only by appearing in person at 
the FCC 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.

F. Remote Electronic Bidding

    63. The Commission will conduct this auction over the Internet, and 
telephonic bidding will be available as well. As a contingency plan, 
bidders may also dial in to the FCC Wide Area Network. Qualified 
bidders are permitted to bid telephonically or electronically. In 
either case, each authorized bidder must have its own SecurID card, 
which the FCC will provide at no charge. 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. 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. 54. 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.
    64. SecurID cards can be recycled, and the Bureaus encourages 
bidders to return the cards to the FCC. The Bureaus will provide pre-
addressed envelopes that bidders may use to return the cards once the 
auction is over.

G. Mock Auction

    65. All qualified bidders will be eligible to participate in a mock 
auction on Friday, July 18, 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

    66. The first round of bidding for Auction No. 54 will begin on 
Wednesday, July 23, 2003. The initial bidding schedule will be 
announced in a public notice listing the qualified bidders, which is 
released approximately 10 days before the start of the auction.

A. Auction Structure

i. Simultaneous Multiple Round Auction
    67. In the Auction No. 54 Comment Public Notice, the Bureaus 
proposed to award all the construction permits in Auction No. 54 in a 
simultaneous multiple round auction. The Bureaus received no comments 
on this issue. The Bureaus therefore concludes that it is operationally 
feasible and appropriate to auction the construction permits through a 
simultaneous multiple round auction. Unless otherwise announced, bids 
will be accepted on all construction permits in successive rounds of 
bidding.
ii. Maximum Eligibility and Activity Rules
    68. In the Auction No. 54 Comment Public Notice, the Bureaus 
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. No comments were received concerning the 
eligibility rule.
    69. For Auction No. 54, the Bureaus will adopt its proposal. The 
amount of the upfront payment submitted by a bidder determines the 
maximum initial eligibility (in bidding units) for each bidder. The 
total upfront payment defines the maximum number of bidding units on 
which the applicant will be permitted to bid and hold high bids in a 
round. As there is no provision for increasing a bidder's eligibility 
after the upfront payment deadline, prospective bidders are cautioned 
to calculate their upfront payments carefully. The total upfront 
payment does not affect the total dollar amount a bidder may bid on any 
given construction permit.
    70. In addition, the Bureaus received no comments on its proposal 
for a single stage auction. Therefore, in order to ensure that the 
auction closes within a reasonable period of time, the Bureaus adopts 
its proposal with the following activity requirement: a bidder is 
required to be active on 100 percent of its current eligibility during 
each round

[[Page 35223]]

of the auction. That is a bidder must either place a bid and/or be the 
standing high bidder during each round of the auction.
    71. Failure to maintain the requisite activity level will result in 
the use of an activity rule waiver, if any remain, or a permanent 
reduction in the bidder's bidding eligibility, possibly eliminating 
them from the auction.
iii. Activity Rule Waivers and Reducing Eligibility
    72. Each bidder will 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 level. An activity rule waiver applies to an entire round of 
bidding and not to a particular construction permit.
    73. The FCC Automated Auction System assumes that bidders with 
insufficient activity would prefer to use an activity rule waiver (if 
available) rather than lose bidding eligibility. Therefore, the system 
will automatically apply a waiver (known as an ``automatic waiver'') at 
the end of any round where a bidder's activity level is below the 
minimum required unless: (i) There are no activity rule waivers 
remaining; or (ii) bidders eligible to bid on more than one 
construction permit override the automatic application of a waiver by 
reducing eligibility, thereby meeting the minimum requirements. If a 
bidder that is eligible to bid on only one construction permit has no 
activity rule waivers available, the bidder's eligibility will be 
reduced, eliminating it from the auction. If a bidder that is eligible 
to bid on more than one construction permit has no waivers remaining 
and does not satisfy the required activity level, its current 
eligibility will be permanently reduced, possibly eliminating the 
bidder from the auction.
    74. A bidder that is eligible to bid on more than one construction 
permit and has insufficient activity may wish to reduce its bidding 
eligibility rather than use an activity rule waiver. If so, the bidder 
must affirmatively override the automatic waiver mechanism during the 
bidding period by using the ``reduce eligibility'' function in the 
bidding system. In this case, the bidder's eligibility is permanently 
reduced to bring the bidder into compliance with the activity rules. 
Once eligibility has been reduced, a bidder will not be permitted to 
regain its lost bidding eligibility.
    75. Finally, a bidder may proactively use an activity rule waiver 
as a means to keep the auction open without placing a bid. If a bidder 
submits a proactive waiver (using the proactive waiver function in the 
bidding system) during a 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 bids will not keep the auction open. Note: Once a proactive waiver 
is submitted during a round, that waiver cannot be unsubmitted.
iv. Auction Stopping Rules
    76. For Auction No. 54, 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.
    77. The Bureaus also sought comment on a modified version of the 
stopping rule. The modified version of the stopping rule would 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.
    78. The Bureaus further proposed retaining the discretion to keep 
an auction open even if no new bids or proactive waivers are submitted. 
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 use an activity rule 
waiver (if it has any left) or lose bidding eligibility.
    79. In addition, the Bureaus proposed that it reserve the right to 
declare that the auction will end after a designated number of 
additional rounds (``special stopping rule''). If the 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 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.
    80. The Bureaus adopt all of the proposals concerning the auction 
stopping rules. Auction No. 54 will begin under the simultaneous 
stopping rule, and the Bureaus will retain the discretion to invoke the 
other versions of the stopping rule.
v. Auction Delay, Suspension, or Cancellation
    81. 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.

B. Bidding Procedures

i. Round Structure
    82. 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. Each bidding round is 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.
    83. The FCC has discretion to change the bidding schedule in order 
to foster an auction pace that reasonably balances speed with the 
bidders' need to study round results and adjust their bidding 
strategies. The 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
    84. For Auction No. 54, the Bureaus proposed establishing minimum 
opening bids based on the potential value of the spectrum, including 
the type of service, proposed population coverage, market size, 
industry cash flow data and recent broadcast transactions. The Bureaus 
received no comments on this issue therefore, it adopts its proposal. 
The specific minimum opening bids for each construction permit are set 
forth in Attachment A of the Auction No. 54 Procedures Public Notice.
    85. The minimum opening bids the Bureaus adopts for Auction No. 54 
are reducible at its discretion. The Bureaus emphasizes, however, that 
such

[[Page 35224]]

discretion will be exercised, if at all, sparingly and early in the 
auction, i.e., before bidders lose all waivers and begin to lose 
substantial eligibility. During the course of the auction, the Bureaus 
will not entertain any requests to reduce the minimum opening bid on 
specific construction permits.
iii. Minimum Acceptable Bids and Bid Increments
    86. In the Auction No. 54 Comment Public Notice, the Bureaus 
proposed to use a fixed percentage to calculate minimum acceptable 
bids. The Bureaus further proposed to retain the discretion to change 
the minimum acceptable bids and bid increments if circumstances so 
dictate.
    87. The Bureaus adopts the proposal contained in the Auction No. 54 
Comment Public Notice. 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. 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.).
    88. For Auction No. 54, the Bureaus will use a 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 increment percentage--i.e., 
(standing high bid) * (1.10).
    89. Until a bid has been placed on a construction permit, the 
minimum acceptable bid for that construction permit will be equal to 
its minimum opening bid. The additional bid amounts are calculated 
using the difference between the minimum opening bid times one plus the 
percentage increment, rounded as described, and the minimum opening 
bid. That is, the increment used to calculate additional bid amounts = 
(minimum opening bid)(1 + percentage increment){rounded{time} -(minimum 
opening bid). Therefore, when the percentage increment equals 0.1 
(i.e., 10%), the first additional bid amount will be approximately ten 
percent higher than the minimum opening bid; the second, twenty percent 
higher; the third, thirty percent higher; etc.
    90. The Bureaus retain the discretion to compute the minimum 
acceptable bids through other methodologies if they determine 
circumstances so dictate. Advanced notice of the Bureaus' decision to 
do so will be announced via the FCC Automated Auction System.
iv. High Bids
    91. At the end of a bidding round, the FCC Automated Auction System 
determines the high bid for each construction permit based on the 
highest gross bid amount received for each construction permit. A high 
bid from a previous round is sometimes referred to as a ``standing high 
bid.'' A ``standing high bid'' will remain the high bid until there is 
a higher bid on the same construction permit at the close of a 
subsequent round. Bidders are reminded that standing high bids confer 
bidding activity.
    92. A Sybase[reg] SQL pseudo-random number generator based on the 
Lecuyer algorithm will be used to select a high bid in the event of 
identical high bids on a construction permit in a given round (i.e., 
tied bids). The tied bid having the highest random number will become 
the standing high bid. The remaining bidders, as well as the high 
bidder, will be able to submit a higher bid in a subsequent round. If 
no bidder submits a higher bid in a subsequent round, the high bid from 
the previous round will win the construction permit. If any bids are 
received on the construction permit in a subsequent round, the high bid 
will once again be determined on the highest gross bid amount received 
for the construction permit.
v. Bidding
    93. During a bidding round, a bidder may submit bids for any or all 
construction permits selected on its FCC Form 175 (subject to its 
eligibility based on previously filed FCC Forms 301 or Form 346), 
remove bids placed in the same bidding round, or if eligible to bid on 
more than one construction permit, permanently reduce eligibility. 
Bidders also have the option of making multiple submissions in each 
round. If a bidder submits multiple bids for a single 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 construction permits for which the bidder has removed 
its bid do not count towards the bidder's activity at the close of the 
round.
    94. Please note that all bidding will take place remotely either 
through the FCC Automated Auction System or by telephonic bidding. 
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.
    95. A bidder's ability to bid on specific construction permits in 
the first round of the auction is determined by two factors: (i) The 
construction permits applied for on FCC Form 175 (applicants are 
eligible to bid on only those construction permits selected on their 
previously filed FCC Form 301 or Form 346); and (ii) the upfront 
payment amount deposited. The bid submission screens will allow bidders 
to submit bids on only those construction permits for which the bidder 
applied on its FCC Form 175.
    96. In order to access the bidding functions of the FCC Automated 
Auction System, bidders must be logged in during the bidding round 
using the bidder identification number provided in the registration 
materials, and the tokencode generated by the SecurID card. Bidders are 
strongly encouraged to print bid confirmations for each round after 
they have completed all of their activity for that round.
    97. 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 bid amounts. The 
FCC Automated Auction System also includes an import function that 
allows bidders to upload text files containing bid information.
    98. 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
    99. In the Auction No. 54 Comment Public Notice, the Bureaus 
proposed that bidders not be permitted to withdraw bids in any round. 
The

[[Page 35225]]

Bureaus 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.
    100. 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, the 
Bureaus adopts these procedures for Auction No. 54.
vii. Round Results
    101. Bids placed during a round will not be made public until the 
conclusion of that bidding period. After a round closes, the Bureaus 
will compile reports of all bids placed, current high bids, new minimum 
acceptable bids, and bidder eligibility status (bidding eligibility and 
activity rule waivers), and post the reports for public access. Reports 
reflecting bidders' identities for Auction No. 54 will be available 
before and during the auction. Thus, bidders will know in advance of 
this auction the identities of the bidders against which they are 
bidding.
viii. Auction Announcements
    102. 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.
ix. Maintaining the Accuracy of FCC Form 175 Information
    103. After the short-form filing deadline, applicants may make only 
minor changes to their FCC Form 175 applications. Applicants must make 
these modifications to their FCC Form 175 electronically and submit a 
letter, briefly summarizing the changes, by electronic mail to the 
attention of Margaret Wiener, Chief, Auctions and Industry Analysis 
Division at the following address: [email protected]. The electronic 
mail summarizing the changes must include a subject or caption 
referring to Auction No. 54. The Bureaus requests that parties format 
any attachments to electronic mail as Adobe[reg] Acrobat[reg] (pdf) or 
Microsoft[reg] Word documents.
    104. 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

    105. After bidding has ended, the Commission will issue a public 
notice declaring the auction closed, identifying the winning bidders 
and down payments due.
    106. Within ten business days after release of the auction closing 
public 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 Commission for Auction No. 54 to 20 percent of its net 
winning bid (actual bids less any applicable bidding credit).

B. Long-Form Application

    107. The auction closing public notice will specify procedures for 
submitting any necessary minor amendments to the winning bidder's 
previously filed long form application. In accordance with Commission 
rules, the winning bidder may not submit amendments that constitute a 
major change from either the technical or legal proposal specified in 
the previously filed long form application. Given the length of time 
that the long form applications have been pending, the winning bidder 
should take into account any relevant rule changes in amending their 
long form applications on file.

C. Default and Disqualification

    108. 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 will offer the construction 
permit 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

    109. All applicants that submitted upfront payments but were not 
winning bidders for a construction permit in Auction No. 54 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.
    110. Qualified bidders that have exhausted all of their activity 
rule waivers, 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.
    111. 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.
[FR Doc. 03-14813 Filed 6-11-03; 8:45 am]
BILLING CODE 6712-01-P