[Federal Register Volume 70, Number 25 (Tuesday, February 8, 2005)]
[Notices]
[Pages 6671-6684]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-2423]


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FEDERAL COMMUNICATIONS COMMISSION

[Report No. AUC-04-59-B; (Auction No. 59); DA 04-3985]


Multiple Address Systems Spectrum Auction; Notice and Filing 
Requirements, Minimum Opening Bids, Upfront Payments and Other Auction 
Procedures

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This document announces the procedures and minimum opening 
bids for the upcoming auction of 4,226 Multiple Address Systems (MAS) 
licenses in the Fixed Microwave Services from the 928/959 and 932/941 
MHz bands. This document is intended to familiarize prospective bidders 
with the procedures and minimum opening bids for this auction.

DATES: Auction No. 59 is scheduled to begin on April 26, 2005.

FOR FURTHER INFORMATION CONTACT: Auctions and Spectrum Access Division 
(WTB): For legal questions: Howard Davenport at (202) 418-0660. For 
general auction questions: Roy Knowles or Barbara Sibert at (717) 338-
2888. For service rules questions: Public Safety and Critical 
Infrastructure Division, WTB: Zenji Nakazawa or Stanley Wiggins at 
(202) 418-0680. For technical questions: Joan Donmoyer at (717) 338-
2646. Media Contact: Lauren Patrich at (202) 418-7944.

SUPPLEMENTARY INFORMATION: This is a summary of the Auction No. 59 
Procedures Public Notice released on December 21, 2004. The complete 
text of the Auction No. 59 Procedures Public Notice, including 
attachments, as well as related Commission 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. The Auction No. 59 Procedures Public 
Notice and related Commission documents may also be purchased from the 
Commission's duplicating contractor, Best Copy and Printing, Inc. 
(BCPI), Portals II, 445 12th Street, SW., Room CY-B402, Washington, DC 
20554, telephone 202-488-5300, facsimile 202-488-5563, or you may 
contact BCPI at its Web site: http://www.BCPIWEB.com. The Auction No. 
59 Procedures Public Notice and related documents are also available on 
the Internet at the Commission's Web site: http://wireless.fcc.gov/auctions/59/.

I. General Information

A. Introduction

    1. The Auction No. 59 Public Notice announces the procedures and 
minimum opening bids for the upcoming auction of Multiple Address 
Systems (MAS) licenses in the Fixed Microwave Services from the 928/959 
and 932/941 MHz bands, scheduled for April 26, 2005 (Auction No. 59). 
On November 15, 2004, in accordance with section 309(j)(4) of the 
Communications Act of 1934, as amended, the Bureau released a public 
notice seeking comment on reserve prices or minimum opening bids and 
the procedures to be used in Auction No. 59. The Bureau received one 
comment in response to the Auction No. 59 Comment Public Notice, 69 FR 
68364, November 24, 2004.
i. Background of Proceeding
    2. On January 19, 2000, the Commission released the MAS Report and 
Order, 65 FR 17445, April 3, 2000, which adopted rules to maximize the 
use of spectrum in the MAS service. Specifically, the Commission: (a) 
Designated the 928/952/956 MHz bands exclusively for private internal 
services, licensed on a first-come, first-served, site-by-site basis; 
(b) designated the 928/959 MHz bands and twenty of the forty paired 
channels in the 932/941 MHz bands to be licensed on a geographic area 
basis; (c) reserved twenty of the forty channel pairs in the 932/941 
MHz bands for public safety/Federal Government and private internal 
services, licensed on a first-come, first-served, site-by-site basis; 
(d) designated five of the twenty channels in the 932/941 MHz bands' 
set-aside exclusively for public safety/Federal Government services; 
(e) grandfathered existing operations on the MAS bands, while limiting 
expansion in the 928/959 MHz bands; (f) established service areas based 
on the Commission's and the Department of Commerce's definitions of 
Economic Areas (EAs); (g) established construction/coverage 
requirements for EA licensees; (h) introduced flexibility to the MAS 
technical rules; (i) adopted a flexible approach for defining the 
regulatory status of MAS licensees by allowing the licensee to indicate 
its regulatory status; (j) lifted the suspension on the acceptance of 
applications for the 928/952/956 MHz bands and the twenty channels in 
the 932/941 MHz bands designated for public safety/Federal Government 
and/or private internal services upon the release of the MAS Report and 
Order; and (k) adopted the part 1 competitive bidding rules for the MAS 
spectrum. On March 3, 2000, the Commission amended the text of the MAS 
Report and Order in an Erratum to the MAS Report and Order.
    3. Subsequently, on May 29, 2001, the Commission released the MAS 
Memorandum Opinion and Order, 66 FR 35107, July 3, 2001, which 
addressed four petitions for reconsideration and/or clarification of 
the MAS Report and Order. The Commission granted two of the petitions, 
granted the third petition in part, and dismissed the fourth petition 
as moot. Additionally, the Commission, on its own motion, adopted minor 
changes to certain technical requirements in part 101 of the 
Commission's rules and modified the application freeze in certain MAS 
bands. A second Erratum to the MAS Memorandum Opinion and Order was 
released by the Commission on June 21, 2001.
    4. On November 15, 2004, the Bureau released the Auction No. 59 
Comment Public Notice announcing that Auction No. 59 will commence on 
April 26, 2005, setting forth a complete list of licenses for Auction 
No. 59, and seeking comment on reserve prices or minimum opening bids 
and other auction procedures.

[[Page 6672]]

ii. Licenses To Be Auctioned
    5. Auction No. 59 will offer 4,226 MAS licenses in the Fixed 
Microwave Services in the 928/959 and 932/941 MHz bands. Licenses will 
be offered in each of the 176 geographic areas known as Economic Areas 
(EAs), where available. These geographic areas encompass the United 
States, Guam and the Northern Marianas Islands, Puerto Rico and the 
United States Virgin Islands, American Samoa, and the Gulf of Mexico. A 
complete list of the licenses available in Auction No. 59 for each 
market is provided in electronic format only, available as ``Attachment 
A'' to the Auction No. 59 Procedures Public Notice at http://wireless.fcc.gov/auctions/59/.
    6. The following table describes the MAS block/frequency bands 
cross-reference list for Auction No. 59:

----------------------------------------------------------------------------------------------------------------
                                                                Total **                            Geographic
             Block                Frequency bands * (MHz)       bandwidth          Pairing          area Type
----------------------------------------------------------------------------------------------------------------
AA............................  928.85625/959.85625          25 kHz          2 x 12.5 kHz        EA
AB............................  928.86875/959.86875          25 kHz          2 x 12.5 kHz        EA
AC............................  928.88125/959.88125          25 kHz          2 x 12.5 kHz        EA
AD............................  928.89375/959.89375          25 kHz          2 x 12.5 kHz        EA
AE............................  928.90625/959.90625          25 kHz          2 x 12.5 kHz        EA
AF............................  928.91875/959.91875          25 kHz          2 x 12.5 kHz        EA
AG............................  928.93125/959.93125          25 kHz          2 x 12.5 kHz        EA
AH............................  928.94375/959.94375          25 kHz          2 x 12.5 kHz        EA
AI............................  928.95625/959.95625          25 kHz          2 x 12.5 kHz        EA
AJ............................  928.96875/959.96875          25 kHz          2 x 12.5 kHz        EA
AK............................  928.98125/959.98125          25 kHz          2 x 12.5 kHz        EA
AL............................  928.99375/959.99375          25 kHz          2 x 12.5 kHz        EA
AM............................  932.00625/941.00625          25 kHz          2 x 12.5 kHz        EA
AN............................  932.01875/941.01875          25 kHz          2 x 12.5 kHz        EA
AO............................  932.03125/941.03125          25 kHz          2 x 12.5 kHz        EA
AP............................  932.04375/941.04375          25 kHz          2 x 12.5 kHz        EA
AQ............................  932.05625/941.05625          25 kHz          2 x 12.5 kHz        EA
AR............................  932.06875/941.06875          25 kHz          2 x 12.5 kHz        EA
AS............................  932.08125/941.08125          25 kHz          2 x 12.5 kHz        EA
AT............................  932.09375/941.09375          25 kHz          2 x 12.5 kHz        EA
AU............................  932.15625/941.15625          25 kHz          2 x 12.5 kHz        EA
AV............................  932.16875/941.16875          25 kHz          2 x 12.5 kHz        EA
AW............................  932.18125/941.18125          25 kHz          2 x 12.5 kHz        EA
AX............................  932.19375/941.19375          25 kHz          2 x 12.5 kHz        EA
AY............................  932.20625/941.20625          25 kHz          2 x 12.5 kHz        EA
AZ............................  932.21875/941.21875          25 kHz          2 x 12.5 kHz        EA
BA............................  932.23125/941.23125          25 kHz          2 x 12.5 kHz        EA
BB............................  932.24375/941.24375          25 kHz          2 x 12.5 kHz        EA
----------------------------------------------------------------------------------------------------------------
* The individual frequencies listed in this chart are the center frequencies of each frequency pair in the block
  to be auctioned. See 47 CFR 101.147(b)(3), (4). Each block consists of two channels of equal bandwidth. For
  example, in Block AA, 928.85625 and 959.85625 are the center frequencies and each frequency pair is comprised
  of two 12.5 kHz wide channels. Therefore, the two channels in Block AA are 928.85000-928.86250 MHz and
  959.85000-959.86250 MHz.
** This represents the total bandwidth for each block, which is the combination of the two channels in each
  pair.


    Note: For Auction No. 59, licenses are not available in every 
block listed in the above table in every market.

B. Rules and Disclaimers

i. Relevant Authority
    7. Prospective applicants must familiarize themselves thoroughly 
with the Commission's rules relating to the Multiple Address Systems 
(MAS), contained in 47 CFR parts 22 and 101, and those relating to 
application and auction procedures, contained in 47 CFR part 1. 
Prospective applicants must also be thoroughly familiar with the 
procedures, terms and conditions (collectively, ``terms'') contained in 
the Auction No. 59 Procedures Public Notice; the Auction No. 59 Comment 
Public Notice; the Part 1 Fifth Report and Order, 65 FR 52401, August 
29, 2000; the MAS Notice of Proposed Rule Making, 62 FR 11407, March 
12, 1997; the MAS Further Notice of Proposed Rule Making and Order; 64 
FR 38617, July 19, 1999; the MAS Report and Order, the Erratum to the 
MAS Report and Order; the MAS Memorandum Opinion and Order; and the 
Erratum to the MAS Memorandum Opinion and Order (as well as prior and 
subsequent Commission proceedings regarding competitive bidding 
procedures, application requirements, and obligations of Commission 
licensees).
    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 applicants 
to remain current with all Commission's 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) of the Commission's rules. Thus, 
applicants for any of the same geographic license areas must 
conscientiously avoid all discussions with each other that affect, or 
in their reasonable assessment have the potential to affect, bidding or 
bidding strategy. This prohibition begins at the short-form application 
filing deadline and ends at the down payment deadline after the 
auction. This prohibition applies to all applicants regardless of 
whether such applicants become

[[Page 6673]]

qualified bidders or actually bid. For purposes of this prohibition, 
Sec.  1.2105(c)(7)(i) of the Commission's rules 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 that entity.
    10. Applicants for licenses in any of the same geographic license 
areas are encouraged not to use the same individual as an authorized 
bidder. A violation of the anti-collusion rule could occur if an 
individual acts as the authorized bidder for two or more competing 
applicants, and conveys information concerning the substance of bids or 
bidding strategies between the 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.
    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 the same geographic areas. In addition, 
applicants that apply to bid for all markets will be precluded from 
communicating with all other applicants until after the down payment 
deadline. 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) of the Commission's rules, 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. By signing their FCC Form 175 short-form 
applications, applicants are certifying their compliance with Sec.  
1.2105(c) of the Commission's rules.
    12. Section 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 of the Commission's rules 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) of the Commission's rules 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 of the Commission's rules.
    13. Applicants that are winning bidders will be required to 
disclose in their long-form applications the specific terms, 
conditions, and parties involved in all bidding consortia, joint 
ventures, partnerships, and other arrangements entered into relating to 
the competitive bidding process. Any applicant found to have violated 
the anti-collusion rule may be subject to sanctions, including 
forfeiture of its upfront payment, down payment or full bid amount, and 
may be prohibited from participating in future auctions. In addition, 
applicants are reminded that they are subject to the antitrust laws, 
which are designed to prevent anticompetitive behavior in the 
marketplace. If an applicant is found to have violated the antitrust 
laws in connection with its participation in the competitive bidding 
process, it may be subject to forfeiture of its upfront payment, down 
payment, or full bid amount and may be prohibited from participating in 
future auctions.
    14. 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. 59 Procedures Public Notice.
iii. Interference Protection
    15. Potential bidders are reminded that there are incumbent 
licensees operating on frequencies that will be subject to the upcoming 
auction. The holder of an EA authorization thus will be required to 
protect incumbents from harmful interference. Specifically, an EA 
authorization holder will be required to coordinate with the incumbent 
licensees by using the interference protection criteria in Sec.  
101.1333 of the Commission's rules. However, operational agreements are 
encouraged between the parties. Should an incumbent's license cancel 
automatically or otherwise be recovered by the Commission, the 
incumbent's frequencies will automatically revert to the applicable EA 
licensee without being subject to further competitive bidding.
iv. Due Diligence
    16. 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 should perform their 
individual due diligence before proceeding as they would with any new 
business venture.
    17. Applicants are reminded that there are a number of incumbent 
licensees already licensed and operating on frequencies that will be 
subject to the upcoming auction. Such incumbents must be protected from 
harmful interference by MAS Station geographic area licensees in 
accordance with the Commission's rules. These limitations may restrict 
the ability of such MAS geographic area licensees to use certain 
portions of the electromagnetic spectrum or provide service to certain 
areas in their geographic license areas. The Commission therefore 
cautions potential applicants in formulating their bidding strategies 
to investigate and consider the extent to which MAS frequencies are 
occupied by incumbents.
    18. 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. 59.

[[Page 6674]]

    19. Applicants should also be aware that certain pending and future 
applications (including those for modification), petitions for 
rulemaking, requests for special temporary authority, waiver requests, 
petitions to deny, petitions for reconsideration, informal oppositions, 
and applications for review before the Commission may relate to 
particular applicants or incumbent licensees or the licenses available 
in Auction No. 59. In addition, pending and future judicial proceedings 
may relate to particular applicants or incumbent licensees, or the 
licenses available in Auction No. 59. Applicants are responsible for 
assessing the likelihood of the various possible outcomes, and 
considering their potential impact on spectrum licenses available in 
this auction.
    20. Applicants should perform due diligence to identify and 
consider all proceedings that may affect the spectrum licenses being 
auctioned. We note that resolution of such matters could have an impact 
on the availability of spectrum for Auction No. 59. In addition, 
although the Commission may continue to act on various pending 
applications, informal objections petitions, and other requests for 
Commission relief, some of these matters may not be resolved by the 
time of the auction.
    21. Applicants may obtain information about incumbent licenses that 
may have an effect on availability of licenses in Auction No. 59 
through the Bureau's licensing databases on the World Wide Web at 
http://wireless.fcc.gov/uls. Applicants may query the database online 
and download a copy of their search results if desired. Detailed 
instructions on using License Search (including frequency searches and 
the GeoSearch capability) and downloading query results are available 
online by selecting the ``?'' button at the upper right-hand corner of 
the License Search screen. Applicants should direct questions regarding 
the search capabilities to the FCC ULS/Technical Support hotline at 1-
877-480-3201 option 2.
    22. The Commission makes no representations or guarantees regarding 
the accuracy or completeness of information in its databases or any 
third party databases, including, for example, court docketing systems. 
To the extent the Commission's databases may not include all 
information deemed necessary or desirable by an applicant, applicants 
may obtain or verify such information from independent sources or 
assume the risk of any incompleteness or inaccuracy in said databases. 
Furthermore, the Commission makes no representations or guarantees 
regarding the accuracy or completeness of information that has been 
provided by incumbent licensees and incorporated into the database. 
Applicants are strongly encouraged to physically inspect any 
prospective transmitter sites located in, or near, the service area for 
which they plan to bid.
    23. In addition, licenses in EAs that border Canada may be subject 
to the Arrangement between the Federal Communications Commission and 
the National Telecommunications and Information Administration of the 
United States and Industry Canada concerning the use of the bands 932 
to 935 MHz and 941 to 944 MHz along the United States-Canada border. 
Licenses in EAs that border Mexico may be subject to the Protocol 
Concerning the Allotment and Use of Channels in the 932-932.5 and 941-
941.5 MHz bands for Fixed Point-to-Multipoint Services along the Common 
Border.
    24. Licenses may, in some EAs, be required to protect quiet zones. 
Licenses in EAs that would affect quiet zones are subject to Sec.  
101.1329 of the Commission's rules.
v. Bidder Alerts
    25. As is the case with many business investment opportunities, 
some unscrupulous entrepreneurs may attempt to use Auction No. 59 to 
deceive and defraud unsuspecting investors. Common warning signals of 
fraud include the following:
     The first contact is a ``cold call'' from a telemarketer, 
or is made in response to an inquiry prompted by a radio or television 
infomercial.
     The offering materials used to invest in the venture 
appear to be targeted at IRA funds, for example, by including all 
documents and papers needed for the transfer of funds maintained in IRA 
accounts.
     The amount of investment is less than $25,000.
     The sales representative makes verbal representations 
that: (a) The Internal Revenue Service (IRS), Federal Trade Commission 
(FTC), Securities and Exchange Commission (SEC), FCC, or other 
government agency has approved the investment; (b) the investment is 
not subject to State or federal securities laws; or (c) the investment 
will yield unrealistically high short-term profits. In addition, the 
offering materials often include copies of actual FCC releases, or 
quotes from FCC personnel, giving the appearance of FCC knowledge or 
approval of the solicitation.
    26. 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. 59 may also call the FCC 
Consumer Center at (888) CALL-FCC ((888) 225-5322).
vi. National Environmental Policy Act Requirements
    27. Licensees must comply with the Commission's rules regarding the 
National Environmental Policy Act (NEPA). The construction of a 
wireless antenna facility is a federal action and the licensee must 
comply with the Commission's NEPA rules for each such facility.

C. Auction Specifics

i. Auction Date
    28. The auction will begin on Tuesday, April 26, 2005, as announced 
in the Auction No. 59 Comment Public Notice. The initial schedule for 
bidding will be announced by public notice at least one week before the 
start of the auction. Unless otherwise announced, bidding on all 
licenses will be conducted on each business day until bidding has 
stopped on all licenses.
ii. Auction Title
    29. Auction No. 59--Multiple Address Systems.
iii. Bidding Methodology
    30. The bidding methodology for Auction No. 59 will be simultaneous 
multiple round bidding. The Commission will conduct this auction over 
the Internet, and telephonic bidding will be available as well. 
Qualified bidders are permitted to bid telephonically or 
electronically.
iv. Pre-Auction Dates and Deadlines
    31. Listed are important dates associated with Auction No. 59:


Auction Seminar..............  February 23, 2005
Short-Form Application (FCC    February 23, 2005; 12 p.m. ET
 Form 175) Filing Window
 Opens.
Short-Form Application (FCC    March 4, 2005; 6 p.m. ET
 Form 175) Filing Window
 Deadline.
Upfront Payments (via wire     April 1, 2005; 6 p.m. ET
 transfer).

[[Page 6675]]

 
Mock Auction.................  April 21, 2005
Auction Begins...............  April 26, 2005
 

v. Requirements for Participation
    32. Those wishing to participate in the auction must:
     Submit a short-form application (FCC Form 175) 
electronically by 6 p.m. ET, March 4, 2005.
     Submit a sufficient upfront payment and an FCC Remittance 
Advice Form (FCC Form 159) by 6 p.m. ET, April 1, 2005.
     Comply with all provisions outlined in the Auction No. 59 
Public Notice.
vi. Any Filings to Auction No. 59
    33. An electronic copy of any filings that are submitted to the 
Commission related to Auction No. 59, including filings made with the 
Commission's Office of the Secretary, should also be submitted by 
electronic mail to the following address: [email protected].
    34. Following is a list of general contact information relating to 
Auction No. 59:
vii. General Contact Information

------------------------------------------------------------------------
 
------------------------------------------------------------------------
GENERAL AUCTION INFORMATION          FCC Auctions Hotline
General Auction Questions            (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
Auctions Rules, Policies,             Division
 Regulations                         Legal Branch (202) 418-0660
LICENSING INFORMATION                Public Safety and Critical
Rules, Policies, Regulations          Infrastructure Division
Licensing Issues                     (202) 418-0680
Due Diligence
Incumbency Issues
TECHNICAL SUPPORT                    FCC Auctions Technical Support
Electronic Filing                     Hotline
FCC Automated Auction System         (202) 414-1250 or 1-877-480-3201,
                                      Press Option 9
                                     (202) 414-1255 (TTY)
                                     Hours of service: 8 a.m.-6 p.m. ET,
                                     Monday through Friday
PAYMENT INFORMATION                  FCC Auctions Accounting Branch
Wire Transfers                       (202) 418-0578
Refunds                              (202) 418-2843 (Fax)
TELEPHONIC BIDDING                   Will be furnished only to qualified
                                      bidders
FCC COPY CONTRACTOR                  Best Copy and Printing, Inc.
                                     445 12th Street, SW., Room CY-B402
                                     Washington, DC 20554
                                     (800) 378-3160
                                     http://www.bcpiweb.com
Additional Copies of Commission
 Documents
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

    35. Guidelines for completion of the short-form (FCC Form 175) are 
set forth in Attachment D of the Auction No. 59 Procedures Public 
Notice. All applicants must certify on their FCC Form 175 applications 
under penalty of perjury that they are legally, technically, 
financially and otherwise qualified to hold a license.

A. License Selection

    36. The Bureau has modified Form 175 for Auction No. 59. In Auction 
No. 59, Form 175 will include a mechanism that allows an applicant to 
filter the licenses by Market Number and Channel Block to create 
customized lists of licenses. The applicant will make selections for 
one or more of the filter criteria and the system will produce a list 
of licenses satisfying the specified criteria. The applicant may apply 
for all the licenses in the customized list by using the ``Save all 
filtered licenses'' option; select and save individual licenses 
separately from the list; or create a second customized list without 
selecting any of the licenses from the first list. Applicants also will 
be able to select licenses from one customized list and then create a 
second customized list to select additional licenses.

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

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

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

    38. 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 that 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,

[[Page 6676]]

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.
    39. A party holding a non-controlling, attributable interest in one 
applicant will be permitted to acquire an ownership interest in, form a 
consortium with, or enter into a joint bidding arrangement with other 
applicants for licenses in the same geographic license area provided 
that (i) the attributable interest holder certifies that it has not and 
will not communicate with any party concerning the bids or bidding 
strategies of more than one of the applicants in which it holds an 
attributable interest, or with which it has formed a consortium or 
entered into a joint bidding arrangement; and (ii) the arrangements do 
not result in a change in control of any of the applicants. While the 
anti-collusion rules do not prohibit non-auction related business 
negotiations among auction applicants, applicants are reminded that 
certain discussions or exchanges could touch upon impermissible subject 
matters because they may convey pricing information and bidding 
strategies.

D. Eligibility

i. Bidding Credit Eligibility (FCC Form 175 Exhibit C)
    40. A bidding credit represents the amount by which a bidder's 
winning bids are discounted. The size of the bidding credit depends on 
the average of the aggregated annual gross revenues for each of the 
preceding three years of the bidder, its affiliates, its controlling 
interests, and the affiliates of its controlling interests.
    41. In the MAS Report and Order, the Commission adopted bidding 
credits on a ``tiered'' basis for all small businesses participating in 
the auction of MAS spectrum Bidding credits are available to small and 
very small businesses, or consortia thereof, (as defined in 47 CFR 
1.2110(c) and 101.1319). For Auction No. 59, bidding credits will be 
available to small business or consortia thereof, as follows:
     A bidder with attributed average annual gross revenues of 
not more than $15 million for the preceding three years (``small 
business'') will receive a 25 percent discount on its winning bids;
     A bidder with attributed average annual gross revenues of 
not more than $3 million for the preceding three years (``very small 
business'') will receive a 35 percent discount on its winning bids.
    42. Small business bidding credits are not cumulative; a qualifying 
applicant receives the 25 percent or 35 percent bidding credit on its 
winning bid, but only one credit per license.
ii. Tribal Lands Bidding Credit
    43. To encourage the growth of wireless services in federally 
recognized tribal lands the Commission has implemented a tribal land 
bidding credit.
iii. Applicability of Part 1 Attribution Rules
    44. Controlling interest standard. The Commission uses a 
``controlling interest'' standard for attributing to auction applicants 
the gross revenues of their investors and affiliates in determining 
small business eligibility for future auctions. The Commission has 
recently modified its rules governing the attribution of gross revenues 
for purposes of determining small business eligibility. These changes 
included exempting the gross revenues of the affiliates of a rural 
telephone cooperative's officers and directors from attribution to the 
applicant if certain specified conditions are met. The Commission also 
clarified that in calculating an applicant's gross revenues under the 
controlling interest standard, the personal net worth, including 
personal income, of its officers and directors will not be attributed 
to the applicant.
    45. Control. The term ``control'' includes both de facto and de 
jure control of the applicant. Typically, ownership of at least 50.1 
percent of an entity's voting stock evidences de jure control. De facto 
control is determined on a case-by-case basis. The following are some 
common indicia of de facto control:
     The entity constitutes or appoints more than 50 percent of 
the board of directors or management committee;
     The entity has authority to appoint, promote, demote, and 
fire senior executives that control the day-to-day activities of the 
licensee; or
     The entity plays an integral role in management decisions.
    46. Attribution for small business and very small business 
eligibility. In determining which entities qualify as small businesses 
or very small businesses, the Commission will consider the gross 
revenues of the applicant, its affiliates, its controlling interests, 
and the affiliates of its controlling interests. The Commission does 
not impose specific equity requirements on controlling interest 
holders. Once the principals or entities with a controlling interest 
are determined, only the revenues of those principals or entities, the 
affiliates of those principals or entities, and the applicant and its 
affiliates, will be counted in determining small business eligibility.
    47. A consortium of small businesses or very small businesses is a 
``conglomerate organization formed as a joint venture between or among 
mutually independent business firms,'' each of which individually must 
satisfy one of the definitions of small business or very small business 
in Sec. Sec.  1.2110(f) and 101.1319 of the Commission's rules.
iv. Supporting Documentation
    48. Applicants should note that they will be required to file 
supporting documentation to their FCC Form 175 short-form applications 
to establish that they satisfy the eligibility requirements to qualify 
as small business or very small business (or consortia of small 
businesses or very small businesses) for this auction.
    49. Applicants should further note that submission of an FCC Form 
175 application constitutes a representation by the certifying official 
that he or she is an authorized representative of the applicant, has 
read the form's instructions and certifications, and that the contents 
of the application and its attachments are true and correct. Submission 
of a false certification to the Commission may result in penalties, 
including monetary forfeitures, license forfeitures, ineligibility to 
participate in future auctions, and/or criminal prosecution.
    50. Small business or very small business eligibility (Exhibit C). 
Entities applying to bid as small businesses or very small businesses 
(or consortia of small businesses or very small businesses) will be 
required to disclose on Exhibit C to their FCC Form 175 short-form 
applications, separately and in the aggregate, the gross revenues for 
the preceding three years of each of the following: (i) The applicant, 
(ii) its affiliates, (iii) its controlling interests, and (iv) the 
affiliates of its controlling interests. Certification that the average 
annual gross revenues for the preceding three years do not exceed the 
applicable limit is not sufficient. A statement of the total gross 
revenues for the preceding three years is also insufficient. The 
applicant must provide separately for itself, its affiliates, its 
controlling interests, and the affiliates of its controlling interests, 
a schedule of gross revenues for each of the preceding three years, as 
well as a statement of total average gross revenues for the three-year 
period. If the applicant is applying as a consortium of small 
businesses or very

[[Page 6677]]

small businesses, this information must be provided for each consortium 
member.

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

    51. 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 of the Commission's rules are not in default on 
any payment for 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 
controlling interests, as defined by Sec.  1.2110 of the Commission's 
rules, 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 D of the FCC Form 
175.
    52. ``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. 59, provided that they are otherwise qualified. 
However, as discussed infra in section III.D.3, former defaulters are 
required to pay upfront payments that are fifty percent more than the 
normal upfront payment amounts.

F. Installment Payments

    53. Installment payment plans will not be available in Auction No. 
59.

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

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

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

    55. After the short-form filing deadline (6 p.m. ET March 4, 2005), 
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, change the certifying official, change control of the 
applicant, or change bidding credits). See 47 CFR 1.2105. Permissible 
minor changes include, for example, deletion and addition of authorized 
bidders (to a maximum of three) and revision of exhibits. Applicants 
should make these modifications to their FCC Form 175 electronically 
and submit a letter, briefly summarizing the changes, by electronic 
mail to the attention of Margaret Wiener, Chief, Auctions and 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. 59. The Bureau requests that parties 
format any attachments to electronic mail as Adobe[supreg] 
Acrobat[supreg] (pdf) or Microsoft[supreg] Word documents.
    56. 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 Howard Davenport of the Auctions and Spectrum 
Access Division at (202) 418-0660.

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

    57. Section 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. 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

    58. On Wednesday, February 23, 2005, the FCC will sponsor a seminar 
for Auction No. 59 at the Federal Communications Commission, located at 
445 12th Street, SW., Washington, DC 20554. The seminar will provide 
attendees with information about pre-auction procedures, auction 
conduct, the FCC Automated Auction System, auction rules, and the MAS 
service rules.
    59. For individuals who are unable to attend, Audio/Video of this 
seminar will be available via webcast from the FCC's Audio/Video Events 
page at http://www.fcc.gov/realaudio/.

B. Short-Form Application (FCC Form 175)--Due March 4, 2005

    60. In order to be eligible to bid 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 March 4, 2005. Late applications will not be accepted.
    61. There is no application fee required when filing an FCC Form 
175. However, to be eligible to bid, an applicant must submit an 
upfront payment. See section III.D.
i. Electronic Filing
    62. Applicants must file their FCC Form 175 applications 
electronically. Applications may generally be filed at any time 
beginning at noon ET on February 23, 2005, until 6 p.m. ET on March 4, 
2005. 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 March 4, 2005.
    63. 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. When an applicant has successfully submitted the initial 
version of its FCC Form 175, the applicant receives an electronic 
confirmation that contains its FCC Registration Number (FRN) and 
associated password.
    64. Information about accessing the FCC Form 175 is included in 
Attachment C of the Auction No. 59 Procedures Public Notice. Technical 
support is available at (202) 414-1250, 1-877-480-3201 option 9, 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
    65. Applicants should carefully review 47 CFR 1.2105, and must 
complete all items on the FCC Form

[[Page 6678]]

175. Instructions for completing the FCC Form 175 are in Attachment D 
of the Auction No. 59 Procedures Public Notice.
iii. Electronic Review of FCC Form 175
    66. 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. 59 
Procedures Public Notice for details on accessing the review system.
    67. 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

    68. 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: (1) Those applications accepted for 
filing; (2) those applications rejected; and (3) those applications 
which have minor defects that may be corrected, and the deadline for 
filing such corrected applications.

D. Upfront Payments--Due April 1, 2005

    69. 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 April 1, 2005. Please note 
that:
     All payments must be made in U.S. dollars.
     All payments must be made by wire transfer.
     Upfront payments for Auction No. 59 go to a lockbox number 
different from the lockboxes used in previous FCC auctions, and 
different from the lockbox number to be used for post-auction payments.
     Failure to deliver the upfront payment by the April 1, 
2005, deadline will result in dismissal of the application and 
disqualification from participation in the auction.
i. Making Auction Payments by Wire Transfer
    70. Wire transfer payments must be received by 6 p.m. ET on April 
1, 2005. 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.
    71. Applicants must fax a completed FCC Form 159 (Revised 2/03) 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. 59.'' 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
    72. 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, 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 (as amended in the Part 1 Fifth Report and Order).
    73. In the Auction No. 59 Comment Public Notice, the Bureau 
proposed that 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.
    74. In the Auction No. 59 Comment Public Notice, the Bureau 
proposed upfront payments on a license-by-license basis using a formula 
based on bandwidth and license area population: $0.00000375 * kHz * 
License Area Population with a minimum of $1,000 per license.
    75. Advanced Metering Data Systems, Inc. (AMDS) suggests that the 
upfront payment for all licenses is too high and should be $500 per 
license or be calculated by a different formula.
    76. After reviewing AMDS's comment, the Bureau concludes that it 
should adopt the upfront payments proposed in the Auction No. 59 
Comment Public Notice. The Bureau also believes that the upfront 
payment amounts are not too high as discussed in the Reserve Price or 
Minimum Opening Bid section. The specific upfront payments and bidding 
units for each license are set forth in Attachment A of the Auction No. 
59 Procedures Public Notice.
    77. 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 a bidder's maximum eligibility after the 
upfront payment deadline.

[[Page 6679]]



                                Example: Upfront Payments and Bidding Flexibility
----------------------------------------------------------------------------------------------------------------
                                                                                          Bidding      Upfront
               Market No.                      Block                Market name            units       payment
----------------------------------------------------------------------------------------------------------------
BEA010.................................  AA                 New York-No. New..........       $2,400       $2,400
                                                            Jer.-Long Island, NY-.....
                                                            NJ-CT-PA-MA-VT............
BEA044.................................  AF                 Knoxville, TN.............        1,000       1,000
----------------------------------------------------------------------------------------------------------------
If a bidder wishes to bid on both licenses in a round, it must have selected both on its FCC Form 175 and
  purchased at least 3,400 bidding units (2,400 + 1,000). If a bidder only wishes to bid on one, but not both,
  purchasing 2,400 bidding units would meet the requirement for either license. The bidder would be able to bid
  on either license, but not both at the same time. If the bidder purchased only 1,000 bidding units, it would
  have enough eligibility for the Knoxville, TN license but not for the New York-No. New Jer.-Long Island, NY-NJ-
  CT-PA-MA-VT license.

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.
iii. Applicant's Wire Transfer Information for Purposes of Refunds of 
Upfront Payments
    78. The Commission will use wire transfers for all Auction No. 59 
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, at (202) 418-2843 by 
April 1, 2005. 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

    79. 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.
    80. 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.
    81. Qualified bidders that do not receive both registration 
mailings will not be able to submit bids. Therefore, any qualified 
bidder that has not received both mailings by noon on Wednesday, April 
20, 2005, 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.
    82. 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.

F. Remote Electronic Bidding

    83. The Commission will conduct this auction over the Internet, and 
telephonic bidding will be available as well. The FCC Wide Area Network 
will no longer be available as a contingency plan. 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. Each 
applicant with one authorized bidder will be issued two SecurID cards, 
while applicants with two or three authorized bidders will be issued 
three cards. For security purposes, the SecurID cards and the FCC 
Automated Auction System user manual are only mailed to the contact 
person at the contact address listed on the FCC Form 175. Please note 
that each SecurID card is tailored to a specific auction; therefore, 
SecurID cards issued for other auctions or obtained from a source other 
than the FCC will not work for Auction No. 59. The telephonic bidding 
phone number will be supplied in the first overnight mailing, which 
also includes the confidential bidder identification number.
    84. Please note that the SecurID cards can be recycled, and we 
encourage bidders to return the cards to the FCC. We will provide pre-
addressed envelopes that bidders may use to return the cards once the 
auction is over.

G. Mock Auction

    85. All qualified bidders will be eligible to participate in a mock 
auction on Thursday, April 21, 2005. 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

    86. The first round of bidding for Auction No. 59 will begin on 
Tuesday, April 26, 2005. 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
    87. The Bureau will award all licenses in Auction No. 59 in a 
simultaneous multiple round auction. We received no comment on this 
issue. The Bureau concludes that it is operationally feasible and 
appropriate to auction the MAS licenses through 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 synergies that exist among licenses 
and is administratively efficient.

[[Page 6680]]

ii. Maximum Eligibility and Activity Rules
    88. The amount of the upfront payment submitted by a bidder will 
determine the initial (maximum) eligibility (as measured in bidding 
units) for each bidder. We received no comment on this issue.
    89. Note again that each license is assigned a specific number of 
bidding units equal to the upfront payment listed in Attachment A of 
the Auction No. 59 Procedures Public Notice on a bidding unit per 
dollar basis. The total upfront payment defines the maximum number of 
bidding units on which the applicant will be permitted to bid and hold 
high bids in a round. As there is no provision for increasing a 
bidder's eligibility after the upfront payment deadline, applicants 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.
    90. 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, rather than wait until late in the auction 
before participating.
    91. 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.3iii and ``Stage 
Transitions'' in Section IV.A.iv), the Commission adopts them for 
Auction No. 59.
iii. Auction Stages
    92. The Commission will conduct the auction in two stages and 
employ an activity rule. In each round of Stage One, a bidder desiring 
to maintain its current eligibility would be required to be active on 
licenses encompassing at least 80 percent of its current bidding 
eligibility. Finally, in each round of Stage Two, a bidder desiring to 
maintain its current eligibility would be required to be active on at 
least 95 percent of its current bidding eligibility.
    93. The Bureau 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 encompassing at least 80 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 five-fourths (5/4).
    Stage Two: During the second stage of the auction, a bidder 
desiring to maintain its current eligibility is required to be active 
on 95 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 twenty-nineteenths (20/19).
    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.
    94. Because the foregoing procedures have proven successful in 
maintaining proper pace in previous auctions, the Commission adopts 
them for Auction No. 59.
iv. Stage Transitions
    95. The auction will generally advance to the next stage (i.e., 
from Stage One to Stage Two) when the auction activity level, as 
measured by the percentage of bidding units receiving new high bids, is 
below 20 percent for three consecutive rounds of bidding in each Stage. 
In addition, the Bureau will retain the discretion to change stages 
unilaterally by announcement during the auction.
    96. 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. The Commission 
believes that these stage transition rules are appropriate for use in 
Auction No. 59.
v. Activity Rule Waivers and Reducing Eligibility
    97. Each bidder in the auction 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.
    98. 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 further 
bidding in the auction.
    99. 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). Once eligibility has been 
reduced, a bidder will not be permitted to regain its lost bidding 
eligibility.
    100. 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

[[Page 6681]]

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
    101. For Auction No. 59, the Bureau 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.
    102. The Bureau also retains the discretion to keep the auction 
open even if no new bids or proactive waivers are submitted and no 
previous high bids are withdrawn in a round.
    103. In addition, the Bureau reserves 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 will 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.
vii. Auction Delay, Suspension, or Cancellation
    104. 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. We emphasize that 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
    105. The initial schedule of bidding rounds 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.
    106. 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
    107. In the Auction No. 59 Comment Public Notice, the Bureau 
proposed to establish minimum opening bids for Auction No. 59 using the 
following license-by-license formula based on bandwidth and population:

$0.00000375 * kHz * License Area Population with a minimum of $1,000 
per license.

    108. The Bureau adopts the minimum opening bids proposed in the 
Auction No. 59 Comment Public Notice. The Bureau believes that the use 
of minimum opening bids is in the public interest because parties 
unable or unwilling to make proposed minimum opening bids most likely 
will be unable or unwilling to use the licenses to provide service to 
the public. The Bureau concludes that the absolute minimum opening bid 
of $1,000 will not impede any party willing and able to use the license 
to provide Multiple Address Systems service. Under the Commission's 
current rules, the filing fee for a new microwave service license is 
$730. Finally, small businesses qualifying for a thirty-five percent 
(35%) bidding credit and winning a multiple address systems license for 
the minimum opening bid of $1,000 will have to pay $650 for the 
license. Thus, even absent an auction, service providers would have to 
meet costs comparable to the proposed absolute minimum opening bids in 
order to obtain a license.
    109. The minimum opening bids for Auction No. 59 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 requests to reduce the minimum opening bid on 
specific licenses.
    110.The specific minimum opening bids for each license available in 
Auction No. 59 are set forth in Attachment A of the Auction No. 59 
Procedures Public Notice.
iii. Minimum Acceptable Bids and Bid Increments
    111. In Auction No. 59 we will use a 10 percent bid increment. This 
means that the minimum acceptable bid for a license will be 
approximately 10 percent greater than the previous standing high bid 
received on the license. 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). We will 
round the result using our 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.
    112. 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.
    113. 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, as described above. 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

[[Page 6682]]

amount equals the standing high bid plus three times the bid increment, 
etc.).
    114. Until a bid has been placed on a license, the minimum 
acceptable bid for that license will be equal to its minimum opening 
bid. Corresponding additional bid amounts will be calculated using the 
difference between the minimum opening bid times one plus the minimum 
percentage increment, rounded as described above, and the minimum 
opening bid. That is, I = (minimum opening bid)(1 + N){rounded{time} -
(minimum opening bid). Therefore, when N equals 0.1, the first 
additional bid amount will be approximately ten percent higher than the 
minimum opening bid; the second, twenty percent; the third, thirty 
percent; etc.
    115. In the case of a license for which the standing high bid has 
been withdrawn, the minimum acceptable bid will equal the second 
highest bid received for the license. The additional bid amounts are 
calculated using the difference between the second highest bid times 
one plus the minimum percentage increment, rounded, and the second 
highest bid.
    116. 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
    117. 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 are 
counted as activity for purposes of the activity rule.
    118. 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 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

    119. During a round, a bidder may submit bids for as many licenses 
as it wishes (subject to its eligibility), withdraw high bids from 
previous bidding rounds, remove bids placed in the same bidding round, 
or permanently reduce eligibility. Bidders also have the option of 
making multiple submissions and withdrawals in each 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.
    120. 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, five to ten minutes are necessary to 
complete a bid submission). There will be no on-site bidding during 
Auction No. 59.
    121. 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.
    122. In order to access the bidding function 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 password 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.
    123. 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 and a Type Bids function that 
allows bidders to enter specific licenses for filtering.
    124. Until a bid has been placed on a license, the minimum 
acceptable bid for that license will be equal to its minimum opening 
bid. 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, as described in Section IV.B.iii.
    125. Finally, bidders are cautioned to select their bid amounts 
carefully because, as explained in section vi, bidders that withdraw a 
standing high bid from a previous round, even if the bid was mistakenly 
or erroneously made, are subject to bid withdrawal payments.
vi. Bid Removal and Bid Withdrawal
    126. For Auction No. 59, 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 two rounds during 
the course of the auction. The two rounds in which withdrawals are used 
would be at the bidder's discretion.
    127. 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 toward 
bidding activity. These procedures will enhance bidder flexibility 
during the auction.
    128. Once a round closes, a bidder may no longer remove a bid. 
However, in later rounds, a bidder may withdraw standing high bids from 
previous rounds using the withdraw bid function 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.
    129. The Bureau will limit the number of rounds in which bidders 
may place withdrawals to two rounds. These rounds will be at the 
bidder's discretion and there will be no limit on the number of bids 
that may be withdrawn in either of these rounds. Withdrawals

[[Page 6683]]

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 market.
    130. 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).
    131. 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
    132. 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. 59 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
    133. 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

    134. After bidding has ended, the Commission will issue a public 
notice declaring the auction closed and identifying winning bidders, 
down payments, final payments, and any withdrawn bid payments due.
    135. 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. 59 to 20 percent of the net amount 
of its winning bids (gross bids less any applicable small business or 
very small business bidding credits). 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 Payment

    136. Each winning bidder will be required to submit the balance of 
the net amount of its winning bids within 10 business days after the 
deadline for submitting down payments.

C. Long-Form Application (FCC Form 601)

    137. Within ten business days after release of the auction closing 
notice, winning bidders must electronically submit a properly completed 
long-form application (FCC Form 601) and required exhibits for each 
license won through Auction No. 59.

D. Ownership Disclosure Information Report (FCC Form 602)

    138. At the time it submits its long-form application (FCC Form 
601), each winning bidder also must comply with the ownership reporting 
requirements as set forth in 47 CFR 1.913, 1.919, and 1.2112.

E. Tribal Lands Bidding Credit

    139. A winning bidder that intends to use its license(s) to deploy 
facilities and provide services to federally recognized tribal lands 
that are unserved by any telecommunications carrier or that have a 
wireline penetration rate equal to or below 85 percent is eligible to 
receive a tribal land bidding credit as set forth in 47 CFR 1.2107 and 
1.2110(f). A tribal land bidding credit is in addition to, and separate 
from, any other bidding credit for which a winning bidder may qualify.

F. Default and Disqualification

    140. 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.

G. Refund of Remaining Upfront Payment Balance

    141. All applicants that submit upfront payments but are not 
winning bidders for a license in Auction No. 59 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 the 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.
    142. 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 bidding eligibility, and have not 
withdrawn a high bid during the auction must submit a written refund 
request. If you have completed the refund instructions electronically, 
then only a written request for the refund is necessary. If not, the 
request must also include wire transfer instructions, Taxpayer 
Identification Number (TIN) and FCC Registration Number (FRN). Send 
refund request to: Federal Communications Commission,

[[Page 6684]]

Financial Operations Center, Auctions Accounting Group, Gail Glasser, 
445 12th Street, SW., Room 1-C864, Washington, DC 20554.
    143. 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.


Federal Communications Commission.
Gary D. Michaels,
Deputy Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. 05-2423 Filed 2-7-05; 8:45 am]
BILLING CODE 6712-01-P