[Federal Register Volume 69, Number 49 (Friday, March 12, 2004)]
[Notices]
[Pages 11854-11864]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-5658]


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FEDERAL COMMUNICATIONS COMMISSION

[Report No. AUC-04-52-D; DA 04-278]


Auction of Direct Broadcast Satellite Service Licenses 
Rescheduled for July 14, 2004; Notice and Filing; 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 licenses to use the 
Direct Broadcast Satellite (``DBS'') service allocation in the 12.2-
12.7 GHz band. This document is intended to familiarize prospective 
bidders with the procedures and minimum opening bids for this auction.

DATES: Auction No. 52 is rescheduled for July 14, 2004.

FOR FURTHER INFORMATION CONTACT: Auctions and Spectrum Access Division, 
WTB: For legal questions: Brian Carter at (202) 418-0660, for general 
auction questions: Jeff Crooks at (202) 418-0660 or Lisa Stover at 
(717) 338-2888. Media Contact: Lauren Patrich at (202) 418-7944. 
Satellite Division, IB: For service rule questions: Rockie Patterson at 
(202) 418-1183 or Selina Khan at (202) 418-7282.

SUPPLEMENTARY INFORMATION: This is a summary of the Auction No. 52 
Procedures Public Notice released on February 6, 2004. The complete 
text of the Auction No. 52 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. 52 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/52/.

I. General Information

A. Introduction

    1. The Auction No. 52 Procedures Public Notice announces that 
Auction No. 52, an auction of licenses to use the Direct Broadcast 
Satellite (``DBS'') service allocation in the 12.2-12.7 GHz

[[Page 11855]]

band, has been rescheduled for July 14, 2004. In addition, in the 
Auction No. 52 Procedures Public Notice the Wireless Telecommunications 
Bureau (``Bureau'') announces the procedures and minimum opening bids 
for Auction No. 52 and sets forth a revised list of the DBS licenses 
available in the auction. On March 3, 2003, in accordance with the 
Balanced Budget Act of 1997, the Commission released a public notice 
seeking comment on reserve prices or minimum opening bids and the 
procedures to be used for Auction No. 52. Four comments and two reply 
comments were submitted in response to the Auction No. 52 Comment 
Public Notice, 68 FR 12906, March 18, 2003.
i. Background of Proceeding
    2. The Commission first established DBS service rules in 1982 by 
adopting ``interim'' rules that were codified in Part 100 of its 
regulations. The first applications for authority to construct, launch, 
and operate DBS satellite systems were also accepted in 1982. In 1995, 
the Commission adopted new service rules for DBS. At the same time, the 
Commission adopted competitive bidding rules for the DBS service. The 
first DBS auctions were held in January 1996.
    3. On April 11, 2002, the Bureau, acting under delegated authority, 
streamlined the DBS competitive bidding rules by conforming them with 
the general competitive bidding rules set forth in Part 1 of the 
Commission's rules. On June 13, 2002, the Commission released the Part 
100 R&O, 67 FR 51110, August 7, 2002, in which it further streamlined 
the regulation of DBS and moved the DBS rules from part 100 to part 25.
    4. On January 15, 2004, the Commission released an Order affirming 
its conclusion in the Auction No. 52 Comment Public Notice that the 
FCC's authority to auction the DBS licenses has not been altered by 
regulatory and statutory actions taken since DBS auctions were last 
held, and declining to impose eligibility restrictions on the three 
available licenses to operate at the western orbit locations of 
175[deg] W.L., 166[deg] W.L., and 157[deg] W.L. The Commission did not 
address in this Order the question of whether any eligibility 
restrictions are appropriate for the license to use the two available 
channels at the eastern orbit location of 61.5[deg] W.L. but instead 
deferred the resolution of this matter to a subsequent Order.
ii. Licenses To Be Auctioned
    5. Auction No. 52 will include three licenses for unassigned 
channels at orbit locations of 175[deg] W.L., 166[deg] W.L., and 
157[deg] W.L. The license to use the two available channels at the 
eastern orbit location of 61.5[deg] W.L., which was included in the 
list of licenses available for auction in the Auction No. 52 Comment 
Public Notice, will not be offered in Auction No. 52 because there 
remains pending the issue of whether any eligibility restrictions are 
appropriate for this license. In addition, in May 2003 the 
International Bureau authorized EchoStar to use three channels at the 
157[deg] W.L. orbit location. The license available for auction at that 
orbit location will therefore authorize the use of 29 channels, rather 
than 32 as previously announced in the Auction No. 52 Comment Public 
Notice.
    6. The licenses included in Auction No. 52 will be subject to the 
Commission's DBS service rules, including the geographic service rules 
at 47 CFR 25.148(c). A complete list and description of the licenses 
available in Auction No. 52 is included as Attachment A of the Auction 
No. 52 Procedures Public Notice.

B. Rules and Disclaimers

i. Relevant Authority
    7. Prospective applicants must familiarize themselves thoroughly 
with the Commission's rules relating to the DBS service contained in 
title 47, part 25 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 applicants must 
also be thoroughly familiar with the procedures, terms and conditions 
(collectively, ``terms'') contained in the Auction No. 52 Procedures 
Public Notice; the Auction No. 52 Comment Public Notice; and the Part 1 
Fifth Report and Order, 65 FR 52323, August 29, 2000, (as well as prior 
and subsequent Commission proceedings regarding competitive bidding 
procedures).
    8. 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 applicants. It is the responsibility of all prospective 
bidders to remain current with all Commission rules and with all public 
notices pertaining to this auction.
ii. Prohibition of Collusion
    9. To ensure the competitiveness of the auction process, Sec.  
1.2105(c) of the Commission's rules prohibits applicants for any of the 
same geographic license areas from communicating with each other during 
the auction about bids, bidding strategies, or settlements unless such 
applicants have identified each other on their FCC Form 175 
applications as parties with whom they have entered into agreements 
under Sec.  1.2105(a)(2)(viii). Because all three licenses available in 
Auction No. 52 have overlapping service areas, this prohibition will 
apply to all applicants. Thus, all applicants (unless they have 
identified each other on their FCC Form 175 applications as parties 
with whom they have entered into agreements under Sec.  
1.2105(a)(2)(viii)) must affirmatively avoid all discussions with or 
disclosures to each other that affect, or in their reasonable 
assessment have the potential to affect, bidding or bidding strategies. 
This prohibition begins at the short-form application filing deadline 
and ends at the down payment deadline after the auction. For purposes 
of this prohibition, Sec.  1.2105(c)(7)(i) defines applicant as 
including all controlling interests in the entity submitting a short-
form application to participate in the auction, as well as all holders 
of partnership and other ownership interests and any stock interest 
amounting to 10 percent or more of the entity, or outstanding stock, or 
outstanding voting stock of the entity submitting a short-form 
application, and all officers and directors of the entity.
    10. Because all three licenses available in Auction No. 52 have 
overlapping service areas, all applicants are encouraged to avoid using 
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 applicants and conveys information concerning 
the substance of bids or bidding strategies between the applicants 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.

[[Page 11856]]

    11. The Commission's anti-collusion rules allow applicants to form 
certain agreements during the auction, provided the applicants have not 
applied for licenses covering any of the same geographic areas. In 
Auction No. 52, applicants will not be able to take advantage of these 
rule provisions because all three available licenses have overlapping 
service areas. 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 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 any 
other applicants. By signing their FCC Form 175 short-form 
applications, applicants are certifying their compliance with Sec.  
1.2105(c).
    12. 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 auction 
applicants that engage in communications of bids or bidding strategies 
that result in a bidding agreement, arrangement or understanding not 
already identified on their short-form applications to promptly 
disclose any such agreement, arrangement or understanding to the 
Commission by amending their pending applications. In addition, Sec.  
1.2105(c)(6) requires all auction applicants to report prohibited 
discussions or disclosures regarding bids or bidding strategy to the 
Commission in writing immediately but in no case later than five 
business days after the communication occurs, even if the communication 
does not result in an agreement or understanding regarding bids or 
bidding strategy that must be reported under Sec.  1.65.
    13. A summary listing of documents issued by the Commission and the 
Bureau addressing the application of the anti-collusion rules may be 
found in Attachment F of the Auction No. 52 Procedures Public Notice.
iii. Other Services Authorized in the 12.2-12.7 GHz Band
    14. In 2000, the Commission allocated the 12.2-12.7 GHz band for 
non-geostationary satellite orbit (``NGSO'') fixed-satellite service 
(``FSS'') downlinks on a primary basis. At the same time, the 
Commission authorized the Multichannel Video Distribution and Data 
Service (``MVDDS'') as a new service under the existing primary status 
fixed service allocation in the 12.2-12.7 GHz band. The Commission 
concluded that MVDDS could operate in the 12 GHz band on a co-primary 
non-harmful interference basis with incumbent DBS providers. In the 
MVDDS Second R&O, 67 FR 43031, June 26, 2002, the Commission 
established service rules for MVDDS, including technical criteria that 
will protect DBS providers from interference. An auction of MVDDS 
licenses concluded on January 27, 2004.
iv. Coordination With Other Countries
    15. All DBS licensees must comply with the provisions of the 
International Telecommunication Union (``ITU'') Region 2 Band Plan for 
Ku-band DBS satellites. They must also comply with Sec. Sec.  
25.114(c)(23) and 25.111(c) of the Commission's rules. These rules 
require DBS licensees to provide technical information and analyses to 
the Commission where it may be necessary to request a modification of 
the ITU Region 2 Band Plan.
v. Due Diligence
    16. Potential applicants are reminded that there are matters 
pending with the Commission that could affect the licenses scheduled to 
be offered in Auction No. 52. These matters may involve 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 
that may be pending before the Commission and relate to particular 
applicants or incumbent licensees. In addition, certain judicial 
proceedings that may relate to particular applicants or incumbent 
licensees, or the licenses available in Auction No. 52, may be 
commenced, or may be pending, or may be subject to further review. We 
note that resolution of these matters could have an impact on the 
availability of spectrum in Auction No. 52. 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. To aid potential bidders, on February 24, 2004, the Bureau 
issued a Due Diligence Announcement listing matters pending before the 
Commission that relate to licenses or applications in these services. 
However, the Commission makes no representations or guarantees that the 
matters listed in the Due Diligence Announcement are the only pending 
matters that could affect spectrum availability in these services.
    17. Potential applicants 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. 52.
vi. Bidder Alerts
    18. 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.
    19. As is the case with many business investment opportunities, 
some unscrupulous entrepreneurs may attempt to use Auction No. 52 to 
deceive and defraud unsuspecting investors.
    20. 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. 52 may also call the FCC 
Consumer Center at (888) CALL-FCC ((888) 225-5322).
vii. National Environmental Policy Act Requirements
    21. Licensees must comply with the Commission's rules regarding the 
National Environmental Policy Act (``NEPA'').

C. Auction Specifics

i. Auction Date
    22. The auction will begin on July 14, 2004. The initial schedule 
for bidding

[[Page 11857]]

will be announced by public notice at least one week before the start 
of the auction. Unless otherwise announced, bidding on all licenses 
will be conducted on each business day until bidding has stopped on all 
licenses.
ii. Auction Title
    23. Auction No. 52--Direct Broadcast Satellite Service.
iii. Bidding Methodology
    24. The bidding methodology for Auction No. 52 will be simultaneous 
multiple round bidding. The Commission will conduct this auction over 
the Internet. Telephonic bidding will also be available, and 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
    25. The following is a list of important dates related to Auction 
No. 52:

Auction Seminar.............................  May 13, 2004.
Short-Form (FCC Form 175) Filing Window       May 13, 2004; 12 p.m. ET.
 Opens.
Short-Form (FCC Form 175) Application         May 21, 2004; 6 p.m. ET.
 Deadline.
Upfront Payments (via wire transfer)........  June 18, 2004; 6 p.m. ET.
Mock Auction................................  July 9, 2004.
Auction Begins..............................  July 14, 2004.
 

v. Requirements for Participation
    26. Any entity wishing to participate in the auction must:
     Submit a short-form application (FCC Form 175) 
electronically by 6 p.m. ET, May 21, 2004.
     Submit a sufficient upfront payment and an FCC 
Remittance Advice Form (FCC Form 159) by 6 p.m. ET, June 18, 2004.
     Comply with all provisions outlined in the 
Auction No. 52 Procedures Public Notice.
vi. General Contact Information
    27. The following is a list of general contact information related 
to Auction No. 52:

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, Monday 
through Friday

AUCTION LEGAL INFORMATION
    Auctions and Spectrum Access Division, Auction Rules, Policies, 
Regulations (202) 418-0660

LICENSING INFORMATION
Rules, Policies, Regulations
Licensing Issues
Due Diligence
Incumbency Issues
    International Bureau, Satellite Division, Rockie Patterson (202) 
418-1183, Selina Khan (202) 418-7282

TECHNICAL SUPPORT
Electronic Filing
FCC Automated Auction System
    FCC Auctions Technical Support Hotline, (202) 414-1250, (202) 414-
1255 (TTY), Hours of service: 8 a.m.-6 p.m. ET, Monday through Friday
PAYMENT INFORMATION
Wire Transfers
Refunds
    FCC Auctions Accounting Branch, (202) 418-0578 or (202) 418-0496, 
(202) 418-2843 (Fax)
TELEPHONIC BIDDING
    Will be furnished only to qualified bidders
PRESS INFORMATION
    Lauren Patrich (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

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

    28. Guidelines for completion of the short-form (FCC Form 175) are 
set forth in Attachment D of the Auction No. 52 Procedures Public 
Notice.

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

    29. All 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 provide 
information required by Sec. Sec.  1.2105 and 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.
    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 
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, applicants are 
reminded that certain discussions or exchanges could touch upon 
impermissible subject matters because they may convey pricing 
information and bidding strategies.

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

    32. Each applicant must certify on its FCC Form 175 application 
under penalty of perjury that the applicant, its controlling interests, 
its affiliates, and the affiliates of its controlling interests, as 
defined by Sec.  1.2110, are not in default on any Commission licenses 
(including down payments) and 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

[[Page 11858]]

controlling interests, as defined by Sec.  1.2110, have ever been in 
default on any Commission licenses or have ever been delinquent on any 
non-tax debt owed to any Federal agency. Applicants must include this 
statement as Exhibit C of the FCC Form 175.
    33. ``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. 52, 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 50 percent more than the 
normal upfront payment amounts.

D. Installment Payments and Bidding Credits

    34. Neither installment payment plans nor bidding credits will be 
available in Auction No. 52.

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

    35. 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.

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

    36. After the short-form filing deadline (6 p.m. ET May 21, 2004), 
applicants may make only minor changes to their FCC Form 175 
applications. Applicants will not be permitted to make major 
modifications to their applications (e.g., change their license 
selections or proposed orbit location, change the certifying official, 
or change control of the applicant). See 47 CFR 1.2105. 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 Spectrum Access 
Division, at the following address: [email protected]. The electronic 
mail summarizing the changes must include a subject or caption 
referring to Auction No. 52. The Bureau requests that parties format 
any attachments to electronic mail as Adobe[reg] Acrobat[reg] (pdf) or 
Microsoft[reg] Word documents.
    37. A separate copy of the letter should be faxed to the attention 
of Kathryn Garland at (717) 338-2850.

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

    38. Section 1.65 of the Commission's rules requires applicants to 
maintain the completeness and accuracy of the information in their 
pending applications and to notify the Commission within 30 days of any 
substantial change that may be of decisional significance. 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

    39. On Thursday, May 13, 2004, the FCC will sponsor a free seminar 
for Auction No. 52 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 DBS service and auction 
rules.

B. Short-Form Application (FCC Form 175)--Due May 21, 2004

    40. In order to participate in this auction, applicants must first 
submit an FCC Form 175 application. This application must be submitted 
electronically and received at the Commission no later than 6 p.m. ET 
on May 21, 2004. Late applications will not be accepted.
i. Electronic Filing
    41. Applicants must file their FCC Form 175 applications 
electronically. Applications may generally be filed at any time 
beginning at noon ET on May 13, 2004, until 6 p.m. ET on May 21, 2004. 
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 May 21, 2004.
    42. 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. 52 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 AM 
to 6 PM ET. In order to provide better service to the public, all calls 
to the hotline are recorded.
ii. Completion of the FCC Form 175
    43. Applicants should carefully review 47 CFR 1.2105, and must 
complete all items on the FCC Form 175. Instructions for completing the 
FCC Form 175 are in Attachment D of the Auction No. 52 Procedures 
Public Notice.
iii. Electronic Review of FCC Form 175
    44. 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. 52 
Procedures Public Notice for details on accessing the review system.
    45. 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., TIN/EIN) on 
any exhibits to their FCC Form 175 applications.

C. Application Processing and Minor Corrections

    46. 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.

D. Upfront Payments--Due June 18, 2004

    47. 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, Revised 2/03). All upfront payments must be received at 
Mellon Bank in Pittsburgh, PA by 6 p.m. ET on June 18, 2004. Failure to 
deliver the upfront payment by the June 18, 2004 deadline will result 
in dismissal of the application and disqualification from participation 
in the auction. For specific

[[Page 11859]]

details regarding upfront payments, see section III D. of the Auction 
No. 52 Procedures Public Notice.
i. Making Auctions Payments by Wire Transfer
    48. Wire transfer payments must be received by 6 p.m. ET on June 
18, 2004. 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.
    49. Applicants must fax a completed FCC Form 159 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. 52.'' In 
order to meet the Commission's upfront payment deadline, an applicant's 
payment must be credited to the Commission's account by the deadline. 
Applicants are responsible for obtaining confirmation from their 
financial institution that Mellon Bank has timely received their 
upfront payment and deposited it in the proper account.
ii. Amount of Upfront Payment
    50. In the Part 1 Order, 62 FR 13540, March 21, 1997, the 
Commission delegated to the Bureau the authority and discretion to 
determine appropriate upfront payment(s) for each auction. In addition, 
in the Part 1 Fifth Report and Order, 65 FR 52323, August 29, 2000, the 
Commission ordered that ``former defaulters,'' i.e., applicants that 
have ever been in default on any Commission license or have ever been 
delinquent on any non-tax debt owed to any Federal agency, be required 
to pay upfront payments 50 percent greater than non-``former 
defaulters.'' For purposes of this calculation, the ``applicant'' 
includes the applicant itself, its affiliates, its controlling 
interests, and affiliates of its controlling interests, as defined by 
Sec.  1.2110 of the Commission's rules.
    51. The amount of the upfront payment will 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 bids and hold high bids at any given time.
    52. For Auction No. 52 the Commission adopts upfront payments of 
$50,000 per channel for the licenses at the 175[deg] W.L. and 166[deg] 
W.L. orbit locations, and $100,000 per channel for the license at the 
157[deg] W.L. orbit location. Given 32 channels at 175[deg] W.L. and 
166[deg] W.L., and 29 channels at 157[deg] W.L., the Commission adopts 
upfront payments of $1,600,000 for the 175[deg] W.L. and 166[deg] W.L. 
licenses, and $2,900,000 for the 157[deg] W.L. license.
    53. The specific upfront payments for each license are set forth in 
Attachment A of the Auction No. 52 Procedures Public Notice. Attachment 
A of the Auction No. 52 Procedures Public Notice also includes the 
number of bidding units for each license.
    54. In calculating its upfront payment amount, an applicant should 
determine the maximum number of bidding units on which it may wish to 
be active (bidding units associated with licenses on which the bidder 
has the standing high bid from the previous round and licenses on which 
the bidder places a bid in the current round) in any single round, and 
submit an upfront payment covering that number of bidding units. In 
order to make this calculation, an applicant should add together the 
upfront payments for all licenses on which it seeks to bid in any given 
round. Applicants should check their calculations carefully, as there 
is no provision for increasing maximum eligibility after the upfront 
payment deadline.
    55. Former defaulters should calculate their upfront payment for 
all licenses by multiplying the number of bidding units they wish to 
purchase by 1.5. In order to calculate the number of bidding units to 
assign to former defaulters, the Commission will divide the upfront 
payment received by 1.5 and round the result up to the nearest bidding 
unit.

    Note: An applicant may, on its FCC Form 175, apply for every 
applicable license being offered, but its actual bidding in any 
round will be limited by the bidding units reflected in its upfront 
payment.

iii. Applicant's Wire Transfer Information for Purposes of Refunds of 
Upfront Payments
    56. The Commission will use wire transfers for all Auction No. 52 
refunds. To ensure that refunds of upfront payments are processed in an 
expeditious manner, the Commission is requesting that the following 
pertinent information be supplied to the FCC: 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); Account Number. 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.

E. Auction Registration

    57. Approximately ten days before the auction, the FCC will issue a 
public notice announcing all qualified bidders for the auction. 
Qualified bidders are those applicants whose FCC Form 175 applications 
have been accepted for filing and have timely submitted upfront 
payments sufficient to make them eligible to bid on at least one of the 
licenses for which they applied.
    58. All qualified bidders are automatically registered for the 
auction. Registration materials will be distributed prior to the 
auction by two separate overnight mailings, one containing the 
confidential bidder identification number (BIN) 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.
    59. 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 7, 2004, 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.
    60. 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 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.

[[Page 11860]]

F. Remote Electronic Filing

    61. The Commission will conduct this auction over the Internet, and 
telephonic bidding will also be available. As a contingency plan, 
bidders may also dial in to the FCC Wide Area Network. Qualified 
bidders are permitted to bid telephonically or electronically. Each 
applicant should indicate its bidding preference--electronic or 
telephonic--on the FCC Form 175. 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. 52. The telephonic bidding phone number will be 
supplied in the first overnight mailing, which also includes the 
confidential bidder identification number.

G. Mock Auction

    62. All qualified bidders will be eligible to participate in a mock 
auction on Friday, July 9, 2004. 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

    63. The first round of bidding for Auction No. 52 will begin on 
Wednesday, July 14, 2004. 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
    64. The Commission will award all licenses in Auction No. 52 in a 
simultaneous multiple round auction. Unless otherwise announced, bids 
will be accepted on all licenses in each round of the auction. This 
approach, we believe, allows bidders to take advantage of any synergies 
that may exist among licenses and is administratively efficient.
ii. Maximum Eligibility and Activity Rules
    65. The amount of the upfront payment submitted by a bidder will 
determine the initial maximum eligibility (as measured in bidding 
units) for each bidder.
    66. Note 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 
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 license.
    67. In order to ensure that the auction closes within a reasonable 
period of time, an activity rule requires bidders to bid actively 
throughout the auction.
    68. A bidder's activity level in a round is the sum of the bidding 
units associated with licenses on which the bidder is active. A bidder 
is considered active on a license in the current round if it is either 
the high bidder at the end of the previous bidding round and does not 
withdraw the high bid in the current round, or if it submits a bid in 
the current round (see ``Minimum Acceptable Bids and Bid Increments'' 
in section IV.B.iii). The minimum required activity is expressed as a 
percentage of the bidder's current bidding eligibility, and increases 
by stage as the auction progresses. Because these procedures have 
proven successful in maintaining the pace of previous auctions (as set 
forth under ``Auction Stages'' in section IV.A.iii and ``Stage 
Transitions'' in section IV.A.iv), we adopt them for Auction No. 52.
iii. Auction Stages
    69. The Commission will conduct the auction in three stages and 
employ an activity rule. Listed are the activity levels for each stage 
of the auction. The FCC reserves the discretion to further alter the 
activity percentages before and/or during the auction.
    Stage One: During the first stage of the auction, a bidder desiring 
to maintain its current eligibility will be required to be active on 
licenses representing at least 50 percent of its current bidding 
eligibility in each bidding round. Failure to maintain the required 
activity level will result in a reduction in the bidder's bidding 
eligibility in the next round of bidding (unless an activity rule 
waiver is used). During Stage One, reduced eligibility for the next 
round will be calculated by multiplying the bidder's current activity 
(the sum of bidding units of the bidder's standing high bids and bids 
during the current round) by two.
    Stage Two: During the second stage of the auction, a bidder 
desiring to maintain its current eligibility is required to be active 
on 75 percent of its current bidding eligibility. Failure to maintain 
the required activity level will result in a reduction in the bidder's 
bidding eligibility in the next round of bidding (unless an activity 
rule waiver is used). During Stage Two, reduced eligibility for the 
next round will be calculated by multiplying the bidder's current 
activity (the sum of bidding units of the bidder's standing high bids 
and bids during the current round) by four-thirds (4/3).
    Stage Three: During the third stage of the auction, a bidder 
desiring to maintain its current eligibility is required to be active 
on 100 percent of its current bidding eligibility. Failure to maintain 
the required activity level will result in a reduction in the bidder's 
bidding eligibility in the next round of bidding (unless an activity 
rule waiver is used). In this final stage, reduced eligibility for the 
next round will be set at current round activity. For example, if a 
bidder does not have a standing high bid, does not place a bid in the 
current round, and does not have any activity rule waivers remaining, 
its eligibility will be reduced to zero, thereby eliminating the bidder 
from the auction.
    Caution: Since activity requirements increase in each auction 
stage, bidders must carefully check their current activity during the 
bidding period of the first round following a stage transition. This is 
especially critical for bidders that have standing high bids and do not 
plan to submit new bids. In past auctions, some bidders have 
inadvertently lost bidding eligibility or used an activity rule waiver 
because they did not re-verify their activity status at stage 
transitions. Bidders may check their activity against the required 
activity level by using the bidding system's bidding module.
    70. Because the foregoing procedures have proven successful in 
maintaining proper pace in previous auctions, we adopt them for Auction 
No. 52.
iv. Stage Transitions
    71. The auction will generally advance to the next stage (i.e., 
from Stage One to Stage Two, and from Stage Two to Stage Three) after 
two consecutive rounds in which only one new high bid is placed in each 
round.

[[Page 11861]]

The Bureau will retain the discretion to change stages unilaterally by 
announcement during the auction and retain the discretion not to make a 
transition to the next stage when the conditions are met.
    72. Thus, the Bureau will retain the discretion to regulate the 
pace of the auction by announcement. This determination will be based 
on a variety of measures of bidder activity, including, but not limited 
to, the auction activity level, the percentages of licenses (as 
measured in bidding units) on which there are new bids, the number of 
new bids, and the percentage increase in revenue. We believe that these 
stage transition rules are appropriate for use in Auction No. 52.
v. Activity Rule Waivers and Reducing Eligibility
    73. 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 license.
    74. The FCC Automated Auction System assumes that bidders with 
insufficient activity would prefer to use an activity rule waiver (if 
available) rather than lose bidding eligibility. Therefore, the system 
will automatically apply a waiver (known as an ``automatic waiver'') at 
the end of any round where a bidder's activity level is below the 
minimum required unless: (i) There are no activity rule waivers 
available; or (ii) the bidder overrides the automatic application of a 
waiver by reducing eligibility, thereby meeting the minimum 
requirements. If a bidder has no waivers remaining and does not satisfy 
the required activity level, the current eligibility will be 
permanently reduced, possibly eliminating the bidder from the auction.
    75. A bidder with insufficient activity that wants to reduce its 
bidding eligibility rather than use an activity rule waiver must 
affirmatively override the automatic waiver mechanism during the round 
by using the reduce eligibility function in the bidding system. In this 
case, the bidder's eligibility is permanently reduced to bring the 
bidder into compliance with the activity rules as described in 
``Auction Stages'' (see section IV.A.iii discussion). Once eligibility 
has been reduced, a bidder will not be permitted to regain its lost 
bidding eligibility.
    76. 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 
FCC Automated Auction System) during a round in which no bids are 
submitted, the auction will remain open and the bidder's eligibility 
will be preserved. However, an automatic waiver triggered during a 
round in which there are no new bids or withdrawals will not keep the 
auction open.


    Note: Once a proactive waiver is submitted during a round, that 
waiver cannot be unsubmitted.

vi. Auction Stopping Rules
    77. For Auction No. 52, the Commission will employ a simultaneous 
stopping rule, and retain discretion to invoke a modified version of 
the stopping rule. The modified version of the stopping rule would 
close the auction for all licenses after the first round in which no 
bidder submits a proactive waiver, a withdrawal, or a new bid on any 
license on which it is not the standing high bidder.
    78. In addition, the Bureau may reserve the right to declare that 
the auction will end after a designated number of additional rounds 
(``special stopping rule''). If the Bureau invokes this special 
stopping rule, it will accept bids in the final round(s) only for 
licenses on which the high bid increased in at least one of the 
preceding specified number of rounds. The Bureau may exercise these 
options only in certain 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.
vii. Auction Delay, Suspension, or Cancellation
    79. By public notice or by announcement during the auction, the 
Bureau may delay, suspend, or cancel the auction in the event of 
natural disaster, technical obstacle, evidence of an auction security 
breach, unlawful bidding activity, administrative or weather necessity, 
or for any other reason that affects the fair conduct of competitive 
bidding. In such cases, the Bureau, in its sole discretion, may elect 
to resume the auction starting from the beginning of the current round, 
resume the auction starting from some previous round, or cancel the 
auction in its entirety. Network interruption may cause the Bureau to 
delay or suspend the auction. Exercise of this authority is solely 
within the discretion of the Bureau and its use is not intended to be a 
substitute for situations in which bidders may wish to apply their 
activity rule waivers.

B. Bidding Procedures

i. Round Structure
    80. 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 round results. Multiple bidding rounds may be 
conducted in a given day. Details regarding round results formats and 
locations will also be included in the qualified bidders public notice.
    81. 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 Bureau may increase or decrease the amount of time for 
the bidding rounds and review periods, or the number of rounds per day, 
depending upon the bidding activity level and other factors.
ii. Reserve Price or Minimum Opening Bid
    82. For Auction No. 52, the Commission will adopt minimum opening 
bids of $100,000 per channel for the licenses at the 175[deg] W.L. and 
166[deg] W.L. orbit locations, and $200,000 per channel for the license 
at the 157[deg] W.L. orbit location. Given 32 channels at 175[deg] 
W.L., and 166[deg] W.L., and 29 channels at 157[deg] W.L., the 
Commission adopts minimum opening bids of $3,200,000 for the 175[deg] 
W.L. and 166[deg] W.L. licenses, and $5,800,000 for the 157[deg] W.L. 
license.
    83. The minimum opening bids we adopt for Auction No. 52 are 
reducible at the discretion of the Bureau. We emphasize, however, that 
such discretion will be exercised, if at all, sparingly and early in 
the auction, i.e., before bidders lose all waivers and begin to lose 
substantial eligibility. During the course of the auction, the Bureau 
will not entertain any requests to reduce the minimum opening bid on 
specific licenses.
    84. The specific minimum opening bids for each license available in 
Auction No. 52, are set forth in Attachment A of the Auction No. 52 
Procedures Public Notice.
iii. Minimum Acceptable Bids and Bid Increments
    85. In Auction No. 52, the Commission will employ the use of a 10 
percent bid increment. This means that the minimum acceptable bid for a

[[Page 11862]]

license is approximately 10 percent greater than the previous standing 
high bid received on the license. The minimum acceptable bid amount is 
calculated by multiplying the standing high bid times one plus the 
increment percentage--i.e., (standing high bid) * (1.10). The result is 
rounded using the Bureau's standard rounding procedures for minimum 
acceptable bid calculations: Results above $10,000 are rounded to the 
nearest $1,000; results below $10,000 but above $1,000 are rounded to 
the nearest $100; and results below $1,000 are rounded to the nearest 
$10. The Bureau will retain the discretion to change the minimum 
acceptable bids and bid increments if circumstances so dictate.
    86. In each round, each eligible bidder will be able to place a bid 
on a particular license for which it applied in any of nine different 
amounts. The FCC Automated Auction System will list the nine bid 
amounts for each license.
    87. Once there is a standing high bid on a license, the FCC 
Automated Auction System will calculate a minimum acceptable bid for 
that license for the following round. The difference between the 
minimum acceptable bid and the standing high bid for each license will 
define the bid increment--i.e., bid increment = (minimum acceptable 
bid) --(standing high bid). The nine acceptable bid amounts for each 
license consist of the minimum acceptable bid (the standing high bid 
plus one bid increment) and additional amounts calculated using 
multiple bid increments (i.e., the second bid amount equals the 
standing high bid plus two times the bid increment, the third bid 
amount equals the standing high bid plus three times the bid increment, 
etc.).
    88. At the start of the auction and until a bid has been placed on 
a license, the minimum acceptable bid for that license will be equal to 
its minimum opening bid. Corresponding additional bid amounts will be 
calculated using bid increments defined as the difference between the 
minimum opening bid times one plus the percentage increment, rounded as 
described, and the minimum opening bid--i.e., bid increment = (minimum 
opening bid)(1 + percentage increment) {rounded{time} --(minimum 
opening bid). At the start of the auction and until a bid has been 
placed on a license, the nine acceptable bid amounts for each license 
consist of the minimum opening bid and additional amounts are 
calculated using multiple bid increments (i.e., the second bid amount 
equals the minimum opening bid plus the bid increment, the third bid 
amount equals the minimum opening bid plus two times the bid increment, 
etc).
    89. In the case of a license for which the standing high bid has 
been withdrawn, the minimum acceptable bid will equal the second 
highest bid received for the license. The additional bid amounts are 
calculated using the difference between the second highest bid times 
one plus the minimum percentage increment, rounded, and the second 
highest bid.
    90. The Bureau retains the discretion to change the minimum 
acceptable bids and bid increments and the methodology for determining 
the minimum acceptable bids and bid increments if it determines that 
circumstances so dictate. The Bureau will do so by announcement in the 
FCC Automated Auction System. The Bureau may also use its discretion to 
adjust the minimum bid increment without prior notice if circumstances 
warrant.
iv. High Bids
    91. At the end of each bidding round, the high bids will be 
determined based on the highest gross bid amount received for each 
license. 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 license at the close of a 
subsequent round. Bidders are reminded that standing high bids count 
towards bidding activity.
    92. In the event of identical high bids on a license in a given 
round (i.e., tied bids), a Sybase[reg] SQL pseudo-random number 
generator based on the L'Ecuyer algorithm will be used to assign a 
random number to each bid. 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 license. If 
any bids are received on the license in a subsequent round, the high 
bid will once again be determined on the highest gross bid amount 
received for the license.
v. Bidding
    93. During a round, a bidder may submit bids for as many licenses 
as it wishes (subject to its eligibility), withdraw high bids from a 
previous bidding round, remove bids placed in the same bidding round, 
or permanently reduce eligibility. Bidders also have the option of 
making multiple submissions and withdrawals in each round. If a bidder 
submits multiple bids for a single license in the same round, the 
system takes the last bid entered as that bidder's bid for the round. 
Bidders should note that the bidding units associated with licenses for 
which the bidder has removed or withdrawn its bid do not count towards 
the bidder's activity at the close of the round.
    94. Please note that all bidding will take place remotely either 
through the FCC Automated Auction System or by telephonic bidding. 
(Telephonic bid assistants are required to use a script when entering 
bids placed by telephone. Telephonic bidders are therefore reminded to 
allow sufficient time to bid by placing their calls well in advance of 
the close of a round. Normally, four to five minutes are necessary to 
complete a bid submission.)
    95. A bidder's ability to bid on specific licenses in the first 
round of the auction is determined by two factors: (i) The licenses 
applied for on FCC Form 175 and (ii) the upfront payment amount 
deposited. The bid submission screens will allow bidders to submit bids 
on only those licenses for which the bidder applied on its FCC Form 
175.
    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 passcode 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 license in any of nine different amounts. For each license, 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. Finally, bidders should use caution in selecting their bid 
amounts because, as explained in the following section, bidders who 
withdraw a standing high bid from a previous round, even if mistakenly 
or erroneously made, are subject to bid withdrawal payments.
vi. Bid Removal and Bid Withdrawal
    99. For Auction No. 52 the Commission adopts bid removal and bid 
withdrawal procedures. With respect to bid withdrawals, the Commission 
will limit each bidder to withdrawals in no more than one round during 
the course of the auction. The round in which

[[Page 11863]]

withdrawals are used would be at the bidder's discretion.
    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. A bidder removing a bid 
placed in the same round is not subject to withdrawal payments. 
Removing a bid will affect a bidder's activity for the round in which 
it is removed, i.e., a bid that is removed does not count towards 
bidding activity. These procedures will enhance bidder flexibility 
during the auction.
    101. Once a round closes, a bidder may no longer remove a bid. 
However, in a later round, a bidder may withdraw standing high bids 
from a previous round using the withdraw bid function in the FCC 
Automated Auction System (assuming that the bidder has not reached its 
withdrawal limit). A high bidder that withdraws its standing high bid 
from a previous round during the auction is subject to the bid 
withdrawal payments specified in 47 CFR 1.2104(g).

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


    102. The Bureau will limit the number of rounds in which 
bidders may place withdrawals to one round. This round will be at the 
bidder's discretion and there will be no limit on the number of bids 
that may be withdrawn in the round. Withdrawals during the auction will 
be subject to the bid withdrawal payments specified in 47 CFR 
1.2104(g). Bidders should note that abuse of the Commission's bid 
withdrawal procedures could result in the denial of the ability to bid 
on a license.
    103. Calculation. Generally, the Commission imposes payments on 
bidders that withdraw high bids during the course of an auction. If a 
bidder withdraws its bid and there is no higher bid in the same or 
subsequent auction(s), the bidder that withdrew its bid is responsible 
for the difference between its withdrawn bid and the high bid in the 
same or subsequent auction(s). In the case of multiple bid withdrawals 
on a single license, within the same or subsequent auctions(s), the 
payment for each bid withdrawal will be calculated based on the 
sequence of bid withdrawals and the amounts withdrawn. No withdrawal 
payment will be assessed for a withdrawn bid if either the subsequent 
winning bid or any of the intervening subsequent withdrawn bids, in 
either the same or subsequent auctions(s), equals or exceeds that 
withdrawn bid. Thus, a bidder that withdraws a bid will not be 
responsible for any withdrawal payments if there is a subsequent higher 
bid in the same or subsequent auction(s).
    104. In instances in which bids have been withdrawn on a license 
that is not won in the same auction, the Commission will assess an 
interim withdrawal payment equal to 3 percent of the amount of the 
withdrawn bids. The 3 percent interim payment will be applied toward 
any final bid withdrawal payment that will be assessed after subsequent 
auction of the license. The Part 1 Fifth Report and Order provides 
specific examples showing application of the bid withdrawal payment 
rule.
vii. Round Results
    105. Bids placed during a round will not be made public until the 
conclusion of that bidding period. After a round closes, the Bureau 
will compile reports of all bids placed, bids withdrawn, current high 
bids, new minimum acceptable bids, and bidder eligibility status 
(bidding eligibility and activity rule waivers), and post the reports 
for public access. Reports reflecting bidders' identities for Auction 
No. 52 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
    106. The FCC will use auction announcements to announce items such 
as schedule changes and stage transitions. All FCC auction 
announcements will be available by clicking a link on the FCC Automated 
Auction System.

V. Post-Auction Procedures

A. Down Payments and Withdrawn Bid Payments

    107. After bidding has ended, the Commission will issue a public 
notice declaring the auction closed, identifying winning bidders, down 
payments and any withdrawn bid payments due.
    108. Within ten business days after release of the auction closing 
notice, each winning bidder must submit sufficient funds (in addition 
to its upfront payment) to bring its total amount of money on deposit 
with the Commission for Auction No. 52 to 20 percent of its winning 
bids. In addition, by the same deadline all bidders must pay any bid 
withdrawal payments due under 47 CFR 1.2104(g), as discussed in ``Bid 
Removal and Bid Withdrawal,'' section IV.B.vi. (Upfront payments are 
applied first to satisfy any withdrawn bid liability, before being 
applied toward down payments.)
B. Final Payments
    109. Each winning bidder will be required to submit the balance of 
its winning bids within 10 business days after the deadline for 
submitting down payments.
C. Long-Form Application (FCC Form 312)
    110. Within 30 days after release of the auction closing notice, 
winning bidders must submit a properly completed long-form application 
(FCC Form 312) and required exhibits for each license won through 
Auction No. 52. Further filing instructions will be provided to auction 
winners at the close of the auction.
D. Default and Disqualification
    111. Any high bidder that defaults or is disqualified after the 
close of the auction (i.e., fails to remit the required down payment 
within the prescribed period of time, fails to submit a timely long-
form application, fails to make full payment, or is otherwise 
disqualified) will be subject to the payments described in 47 CFR 
1.2104(g)(2). In such event the Commission may re-auction the license 
or offer it to the next highest bidder (in descending order) at its 
final bid. 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
    112. All applicants that submitted upfront payments but were not 
winning bidders for a license in Auction No. 52 may be entitled to a 
refund of their remaining upfront payment balance after the conclusion 
of the auction. No refund will be made unless there are excess funds on 
deposit from that applicant after any applicable bid withdrawal 
payments have been paid. All refunds will be returned to the payer of 
record, as identified on the FCC Form 159, unless the payer submits 
written authorization instructing otherwise.
    113. Bidders that drop out of the auction completely may be 
eligible for a refund of their upfront payments before the close of the 
auction. Qualified bidders that have exhausted all of their activity 
rule waivers, have no remaining

[[Page 11864]]

bidding eligibility, and have not withdrawn a high bid during the 
auction must submit a written refund request. If a bidder has 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.
    114. 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.
Gary Michaels,
Deputy Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. 04-5658 Filed 3-11-04; 8:45 am]
BILLING CODE 6712-01-P