[Federal Register Volume 70, Number 80 (Wednesday, April 27, 2005)]
[Notices]
[Pages 21782-21786]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-8521]



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FEDERAL COMMUNICATIONS COMMISSION

[Report No. AUC-05-62-A (Auction No. 62); DA 05-1076]


Auction of FM Broadcast Construction Permits Scheduled for 
November 1, 2005; Comment Sought on Reserve Prices or Minimum Opening 
Bids and Other Auction Procedures for Auction No. 62

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This document announces the auction of certain FM broadcast 
construction permits scheduled to commence on November 1, 2005 (Auction 
No. 62). This document also seeks comment on reserve prices or minimum 
opening bids and other procedures for Auction No. 62.

DATES: Comments are due on or before April 29, 2005, and reply comments 
are due on or before May 6, 2005.

ADDRESSES: Parties who file by paper must file an original and four 
copies of each filing. U.S. Postal Service first class, express and 
priority mail must be addressed to Office of the Secretary, 445 12th 
Street, SW., Washington, DC 20554. Comments and reply comments must 
also be sent by electronic mail to the following address: 
[email protected].

FOR FURTHER INFORMATION CONTACT: For legal questions: Howard Davenport 
at (202) 418-0660. For general auction questions: Jeff Crooks at (202) 
418-0660 or Linda Sanderson at (717) 338-2888. For service rule 
questions, contact the Audio Services Division, Media Bureau, as 
follows: Lisa Scanlan or Tom Nessinger at (202) 418-2700.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Public 
Notice released April 14, 2005, Auction No. 62 Comment Public Notice. 
The complete text of the Auction No. 62 Comment Public Notice, 
including attachments and any related Commission documents is available 
for public inspection and copying during regular business hours at the 
FCC Reference Information Center, Portals II, 445 12th Street, SW., 
Room CY-A257, Washington, DC 20554. The Auction No. 62 Comment 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. When ordering 
documents from BCPI, please provide the appropriate FCC document number 
(for example, DA 05-1076 for the Auction No. 62 Comment PN). The 
Auction No. 62 Comment Public Notice and related documents are also 
available on the Internet at the Commission's Web site: http://wireless.fcc.gov/auctions/62/ auctions/62/.

I. General Information

    1. By the Auction No. 62 Comment Public Notice, the Wireless 
Telecommunications Bureau (WTB) and the Media Bureau (MB) (collectively 
referred to as the Bureaus) announce the auction of certain FM 
broadcast construction permits (Auction No. 62) to commence on November 
1, 2005. As discussed in greater detail herein, the Bureaus propose 
that Auction No. 62 be composed of 173 construction permits in the FM 
broadcast service as listed in Attachment A of the Auction No. 62 
Comment Public Notice. The construction permits to be auctioned include 
143 new FM allotments, and 30 unsold FM construction permits from 
Auction No. 37.
    2. Attachment A of the Auction No. 62 Comment Public Notice lists 
vacant FM allotments, reflecting FM channels assigned to the Table of 
FM Allotments, 47 CFR 73.202(b), pursuant to the Commission's 
established rulemaking procedures, designated for use in the indicated 
community. Pursuant to the policies established in the Broadcast First 
Report and Order, 63 FR 48615, September 11, 1998, applicants may apply 
for any vacant FM allotment, as specified in Attachment A of the 
Auction No. 62 Comment Public Notice. Applicants specifying the same FM 
allotment will be considered mutually exclusive and, thus, the 
construction permit for the FM allotment will be awarded by competitive 
bidding procedures. The reference coordinates for each vacant FM 
allotment are also listed in Attachment A of the Auction No. 62 Comment 
Public Notice.
    3. Auction No. 62 will use the FCC's Integrated Spectrum Auction 
System (ISAS or FCC Auction System), an extensive redesign of the 
previous auction application and bidding systems. The redesign includes 
FCC Form 175 application enhancements such as discrete data elements in 
place of free-form exhibits and improved data accuracy through 
automated checking of FCC Form 175 applications. Enhancements have also 
been made to the FCC Form 175 application search function. The auction 
bidding system has also been updated for easier navigation, 
customizable results, and improved functionality. More information 
about ISAS is available via the ``About ISAS'' link on the Auctions Web 
page at http://wireless.fcc.gov/auctions/.
    4. Section 309(j)(3) of the Communications Act of 1934, as amended, 
requires the Commission to ``ensure that, in the scheduling of any 
competitive bidding under this subsection, an adequate period is 
allowed * * * before issuance of bidding rules, to permit notice and 
comment on proposed auction procedures * * *.'' Consistent with the 
provisions of Section 309(j)(3) and to ensure that potential bidders 
have adequate time to familiarize themselves with the specific rules 
that will govern the day-to-day conduct of an auction, the Commission 
directed the Bureaus, under existing delegated authority, to seek 
comment on a variety of auction-specific procedures prior to the start 
of each auction. We therefore seek comment on the following issues 
relating to Auction No. 62.

II. Auction Structure

A. Simultaneous Multiple-Round Auction Design

    5. The Bureaus propose to award all construction permits included 
in Auction No. 62 in a simultaneous multiple-round auction. This 
methodology offers every construction permit for bid at the same time 
with successive bidding rounds in which bidders may place bids. That 
is, bidding will remain open on all construction permits until bidding 
stops on every construction permit. We seek comment on this proposal.

B. Upfront Payments and Bidding Eligibility

    6. The Bureaus have delegated authority and discretion to determine 
an appropriate upfront payment for each FM construction permit being 
auctioned, taking into account such factors as the efficiency of the 
auction process and the potential value of similar spectrum. As 
described further below, the upfront payment is a refundable deposit 
made by each bidder to establish eligibility to bid on FM construction 
permits. Upfront payments related to the specific spectrum subject to 
auction protect against frivolous or insincere bidding and provide the 
Commission with a source of funds from which to collect payments owed 
at the close of the auction. With these guidelines in mind, we propose 
the schedule of upfront payments for each construction permit as set 
forth in Attachment A of the Auction No. 62

[[Page 21783]]

Comment Public Notice. We seek comment on this proposal.
    7. The Bureaus further propose that the amount of the upfront 
payment submitted by a bidder will determine the maximum number of 
bidding units on which a bidder may place bids. This limit is a 
bidder's initial bidding eligibility. Each FM construction permit is 
assigned a specific number of bidding units equal to the upfront 
payment listed in Attachment A of the Auction No. 62 Comment Public 
Notice, on a bidding unit per dollar basis. Bidding units for a given 
construction permit do not change as prices rise during the auction. A 
bidder's upfront payment is not attributed to specific construction 
permits. Rather, a bidder may place bids on any combination of 
construction permits as long as the total number of bidding units 
associated with those construction permits does not exceed the bidder's 
current eligibility. In order to bid on a construction permit, 
qualified bidders must have an eligibility level that meets the number 
of bidding units assigned to that construction permit. Eligibility 
cannot be increased during the auction; it can only remain the same or 
decrease. Thus, in calculating its upfront payment amount, an applicant 
must determine the maximum number of bidding units it may wish to bid 
on (or hold provisionally winning bids on) in any single round, and 
submit an upfront payment amount covering that total number of bidding 
units. Provisionally winning bids are bids that would become final 
winning bids if the auction were to close in that given round. We seek 
comment on this proposal.

C. Activity Rules

    8. 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. A bidder's activity will be the sum of the 
bidding units associated with the construction permits upon which it 
places a bid during the current round and the bidding units associated 
with the construction permits upon which it holds provisionally winning 
bids. Bidders are required to be active on a specific percentage of 
their current bidding eligibility during each round of the auction. 
Failure to maintain the requisite activity level will result in the use 
of an activity rule waiver, if any remain, or a reduction in the 
bidder's eligibility, possibly eliminating the bidder from further 
bidding in the auction.
    9. The Bureaus propose to divide the auction into two stages, each 
characterized by a different activity requirement. The auction will 
start in Stage One. We propose that the auction generally will advance 
from Stage One to Stage Two when the auction activity level, as 
measured by the percentage of bidding units receiving new provisionally 
winning bids, is approximately twenty percent or below for three 
consecutive rounds of bidding. However, we further propose that the 
Bureaus retain the discretion to change stages unilaterally by 
announcement during the auction. In exercising this discretion, the 
Bureaus will consider a variety of measures of bidder activity, 
including, but not limited to, the auction activity level, the 
percentage of construction permits (as measured in bidding units) on 
which there are new bids, the number of new bids, and the percentage 
increase in revenue. We seek comment on these proposals.
    10. For Auction No. 62, the Bureaus propose the following activity 
requirements:
    Stage One: In each round of the first stage of the auction, a 
bidder desiring to maintain its current bidding eligibility is required 
to be active on construction permits representing at least 75 percent 
of its current bidding eligibility. Failure to maintain the requisite 
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, a bidder's reduced eligibility for 
the next round will be calculated by multiplying the bidder's current 
round activity by four-thirds (\4/3\).
    Stage Two: In each round of the second stage, a bidder desiring to 
maintain its current bidding eligibility is required to be active on 95 
percent of its current bidding eligibility. Failure to maintain the 
requisite 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, a bidder's reduced eligibility 
for the next round will be calculated by multiplying the bidder's 
current round activity by twenty-nineteenths (\20/19\).
    11. The Bureaus seek comment on these proposals. Commenters that 
believe these activity rules should be modified should explain their 
reasoning and comment on the desirability of an alternative approach. 
Commenters are advised to support their claims with analyses and 
suggested alternative activity rules.

D. Activity Rule Waivers and Reducing Eligibility

    12. Use of an activity rule waiver preserves the bidder's current 
bidding eligibility despite the bidder's activity in the current round 
being below the required minimum level. An activity rule waiver applies 
to an entire round of bidding and not to a particular construction 
permit. Activity rule waivers can be either proactive or automatic and 
are principally a mechanism for auction participants to avoid the loss 
of bidding eligibility in the event that exigent circumstances prevent 
them from placing a bid in a particular round.
    13. The FCC Auction System assumes that bidders with insufficient 
activity would prefer to apply an activity rule waiver (if available) 
rather than lose bidding eligibility. Therefore, the system will 
automatically apply a waiver at the end of any bidding round where a 
bidder's activity level is below the minimum required unless: (i) the 
bidder has no activity rule waivers available; or (ii) the bidder 
overrides the automatic application of a waiver by reducing 
eligibility, thereby meeting the minimum requirement.

    Note: If a bidder has no waivers remaining and does not satisfy 
the required activity level, its eligibility will be permanently 
reduced, possibly eliminating the bidder from further bidding in the 
auction.

    14. A bidder with insufficient activity may wish to reduce its 
bidding eligibility rather than use an activity rule waiver. If so, the 
bidder must affirmatively override the automatic waiver mechanism 
during the bidding round by using the ``reduce eligibility'' function 
in the FCC Auction System. In this case, the bidder's eligibility is 
permanently reduced to bring the bidder into compliance with the 
activity rules as described above. Once eligibility has been reduced, a 
bidder will not be permitted to regain its lost bidding eligibility.
    15. A bidder may apply an activity rule waiver proactively as a 
means to keep the auction open without placing a bid. If a bidder 
proactively applies an activity rule waiver (using the ``apply waiver'' 
function in the FCC Auction System) during a bidding round in which no 
bids or withdrawals are submitted, the auction will remain open and the 
bidder's eligibility will be preserved. An automatic waiver applied by 
the FCC Auction System in a round in which there are no new bids or 
withdrawals will not keep the auction open. The submission of a 
proactive waiver cannot occur after a bid has been submitted in a round 
and will preclude a bidder from placing any bids later in that round. 
Applying a waiver is irreversible; once a proactive waiver is submitted 
that waiver cannot be

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unsubmitted, even if the round has not yet closed.
    16. The Bureaus propose that each bidder in Auction No. 62 be 
provided with three activity rule waivers that may be used at the 
bidder's discretion during the course of the auction as set forth 
above. We seek comment on this proposal.

E. Information Relating to Auction Delay, Suspension, or Cancellation

    17. For Auction No. 62, we propose that, by public notice or by 
announcement during the auction, the Bureaus may delay, suspend, or 
cancel the auction in the event of natural disaster, technical 
obstacle, evidence of an auction security breach, unlawful bidding 
activity, administrative or weather necessity, or for any other reason 
that affects the fair and efficient conduct of competitive bidding. In 
such cases, the Bureaus, in their sole discretion, may elect to resume 
the auction starting from the beginning of the current round, resume 
the auction starting from some previous round, or cancel the auction in 
its entirety. Network interruption may cause the Bureaus to delay or 
suspend the auction. We emphasize that exercise of this authority is 
solely within the discretion of the Bureaus, and its use is not 
intended to be a substitute for situations in which bidders may wish to 
apply their activity rule waivers. We seek comment on this proposal.

III. Bidding Procedures

A. Round Structure

    18. The Commission will conduct Auction No. 62 over the Internet. 
Alternatively, telephonic bidding will also be available. The toll-free 
telephone number for telephonic bidding will be provided to bidders.
    19. The initial bidding schedule will be announced in a public 
notice to be released at least one week before the start of the 
auction. The simultaneous multiple-round format will consist of 
sequential bidding rounds, each followed by the release of round 
results. Details on viewing round results, including the location and 
format of downloadable round results files will be included in the same 
public notice.
    20. The Bureaus have the discretion to change the bidding schedule 
in order to foster an auction pace that reasonably balances speed with 
the bidders' need to study round results and adjust their bidding 
strategies. The Bureaus may increase or decrease the amount of time for 
the bidding rounds and review periods, or the number of rounds per day, 
depending upon the bidding activity level and other factors. We seek 
comment on this proposal.

B. Reserve Price or Minimum Opening Bid

    21. Section 309(j) calls upon the Commission to prescribe methods 
for establishing a reasonable reserve price or a minimum opening bid 
amount when FCC licenses or construction permits are subject to 
auction, unless the Commission determines that a reserve price or 
minimum opening bid amount is not in the public interest. Consistent 
with this mandate, the Commission has directed the Bureaus to seek 
comment on the use of minimum opening bid amounts and/or reserve price 
prior to the start of each auction of broadcast construction permits.
    22. Normally, a reserve price is an absolute minimum price below 
which an item will not be sold in a given auction. Reserve prices can 
be either published or unpublished. A minimum opening bid amount, on 
the other hand, is the minimum bid price set at the beginning of the 
auction below which no bids are accepted. It is generally used to 
accelerate the competitive bidding process. Also, the auctioneer often 
has the discretion to lower the minimum opening bid amount later in the 
auction. It is also possible for the minimum opening bid amount and the 
reserve price to be the same amount.
    23. In light of the requirements in section 309(j), the Bureaus 
propose to establish minimum opening bid amounts for Auction No. 62. 
The Bureaus believe a minimum opening bid amount, which has been used 
in other auctions, is an effective bidding tool.
    24. For Auction No. 62, the proposed minimum opening bids were 
determined by taking into account various factors related to the 
efficiency of the auction and the potential value of the spectrum, 
including the type of service and class of facility offered, market 
size, population covered by the proposed FM broadcast facility, 
industry cash flow data and recent broadcast transactions. The specific 
minimum opening bid for each construction permit available in Auction 
No. 62 is set forth in Attachment A of the Auction No. 62 Comment 
Public Notice. We seek comment on this proposal.
    25. If commenters believe that these minimum opening bid amounts 
will result in substantial numbers of unsold construction permits, or 
are not reasonable amounts, or should instead operate as reserve 
prices, they should explain why this is so, and comment on the 
desirability of an alternative approach. Commenters are advised to 
support their claims with valuation analyses and suggested reserve 
prices or minimum opening bid amount levels or formulas. In 
establishing the minimum opening bid amounts, we particularly seek 
comment on such factors as the potential value of the spectrum being 
auctioned including the type of service and class of facility offered, 
market size, population covered by the proposed FM broadcast facility 
and other relevant factors that could reasonably have an impact on 
valuation of the broadcast spectrum. We also seek comment on whether, 
consistent with section 309(j), the public interest would be served by 
having no minimum opening bid amount or reserve price.

C. Minimum Acceptable Bid Amounts and Bid Increments

    26. In each round, eligible bidders will be able to place bids on a 
given construction permit in any of nine different amounts. The FCC 
Auction System interface will list the nine acceptable bid amounts for 
each construction permit.
    27. The minimum acceptable bid amount for a construction permit 
will be equal to its minimum opening bid amount until there is a 
provisionally winning bid for the construction permit. After there is a 
provisionally winning bid for a construction permit, the minimum 
acceptable bid amount for that construction permit will be equal to the 
amount of the provisionally winning bid plus an additional amount. The 
minimum acceptable bid amount will be calculated by multiplying the 
provisionally winning bid amount times one plus the minimum acceptable 
bid percentage--e.g., if the minimum acceptable bid percentage is 10 
percent, the minimum acceptable bid amount will equal (provisionally 
winning bid amount) [star25] (1.10), rounded. We will round the result 
using our standard rounding procedures.
    28. The nine acceptable bid amounts for each construction permit 
consist of the minimum acceptable bid amount and additional amounts 
calculated using the minimum acceptable bid amount and the bid 
increment percentage. We will round the results using our standard 
rounding procedures. The first additional acceptable bid amount equals 
the minimum acceptable bid amount times one plus the bid increment 
percentage, rounded--e.g., if the increment percentage is 10 percent, 
the calculation is (minimum acceptable bid amount) [star25] (1 + 0.10), 
rounded, or (minimum acceptable bid amount) [star25] 1.10, rounded; the 
second additional acceptable bid amount equals the minimum acceptable

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bid amount times one plus two times the bid increment percentage, 
rounded, or (minimum acceptable bid amount) [star25] 1.20, rounded; the 
third additional acceptable bid amount equals the minimum acceptable 
bid amount times one plus three times the bid increment percentage, 
rounded, or (minimum acceptable bid amount) [star25] 1.30, rounded; 
etc. Note that the bid increment percentage need not be the same as the 
minimum acceptable bid percentage.
    29. In the case of a construction permit for which the 
provisionally winning bid has been withdrawn, the minimum acceptable 
bid amount will equal the second highest bid received for the 
construction permit.
    30. For Auction No. 62, the Bureaus propose to use a minimum 
acceptable bid percentage of 10 percent and a bid increment percentage 
of 10 percent. This means that the minimum acceptable bid amount for a 
construction permit will be approximately 10 percent greater than the 
provisionally winning bid amount for the construction permit, and 
additional acceptable bid amounts for a construction permit will be 
approximately 10-80 percent greater (in intervals of 10 percent) than 
the minimum acceptable bid amount for the construction permit.
    31. The Bureaus retain the discretion to change the minimum 
acceptable bid amounts, the minimum acceptable bid percentage, and the 
bid increment percentage if it determines that circumstances so 
dictate. The Bureaus will do so by announcement in the FCC Auction 
System during the auction. We seek comment on these proposals.

D. Provisionally Winning Bids

    32. At the end of a bidding round, a provisionally winning bid 
amount for each construction permit will be determined based on the 
highest bid amount received for the construction permit. In the event 
of identical high bid amounts being submitted on a construction permit 
in a given round (i.e., tied bids), we propose to use a random number 
generator to select a single provisionally winning bid from among the 
tied bids. If the auction were to end with no higher bids being placed 
for that construction permit, the winning bidder would be the one that 
placed the selected provisionally winning bid. However, the remaining 
bidders, as well as the provisionally winning bidder, can submit higher 
bids in subsequent rounds. If any bids are received on the construction 
permit in a subsequent round, the provisionally winning bid again will 
be determined by the highest bid amount received for the construction 
permit.
    33. A provisionally winning bid will remain the provisionally 
winning bid until there is a higher bid on the same construction permit 
at the close of a subsequent round, unless the provisionally winning 
bid is withdrawn. Bidders are reminded that provisionally winning bids 
confer credit for activity.

E. Information Regarding Bid Withdrawal and Bid Removal

    34. For Auction No. 62, the Bureaus propose the following bid 
removal and bid withdrawal procedures. Before the close of a bidding 
round, a bidder has the option of removing any bid placed in that 
round. By removing selected bids in the FCC Auction 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 a withdrawal 
payment. Once a round closes, a bidder may no longer remove a bid.
    35. A bidder may withdraw its provisionally winning bids using the 
``withdraw bids'' function in the FCC Auction System. A bidder that 
withdraws its provisionally winning bid(s) is subject to the bid 
withdrawal payment provisions of the Commission rules. We seek comment 
on these bid removal and bid withdrawal procedures.
    36. In the Part 1 Third Report and Order, 63 FR 2315, January 15, 
1998, the Commission explained that allowing bid withdrawals 
facilitates efficient aggregation of licenses and construction permits 
and the pursuit of efficient backup strategies as information becomes 
available during the course of an auction. The Commission noted, 
however, that, in some instances, bidders may seek to withdraw bids for 
improper reasons. The Bureaus, therefore, have discretion, in managing 
the auction, to limit the number of withdrawals to prevent any bidding 
abuses. The Commission stated that the Bureaus should assertively 
exercise their discretion, consider limiting the number of rounds in 
which bidders may withdraw bids, and prevent bidders from bidding on a 
particular construction permit if the Bureaus find that a bidder is 
abusing the Commission's bid withdrawal procedures.
    37. Applying this reasoning, we propose to limit each bidder in 
Auction No. 62 to withdrawing provisionally winning bids in no more 
than one round during the course of the auction. To permit a bidder to 
withdraw bids in more than one round may encourage insincere bidding or 
the use of withdrawals for anti-competitive purposes. The round in 
which withdrawals may be used will be at the bidder's discretion; 
withdrawals otherwise must be in accordance with the Commission's 
rules. There is no limit on the number of provisionally winning bids 
that may be withdrawn in the round in which withdrawals are used. 
Withdrawals will remain subject to the bid withdrawal payment 
provisions specified in the Commission's rules. We seek comment on this 
proposal.

F. Stopping Rule

    38. The Bureaus have discretion ``to establish stopping rules 
before or during multiple round auctions in order to terminate the 
auction within a reasonable time.'' For Auction No. 62, the Bureaus 
propose to employ a simultaneous stopping rule approach. A simultaneous 
stopping rule means that all construction permits remain available for 
bidding until bidding closes simultaneously on all construction 
permits.
    39. Bidding will close simultaneously on all construction permits 
after the first round in which no bidder submits any new bids, applies 
a proactive waiver, or places any withdrawals. Thus, unless 
circumstances dictate otherwise, bidding will remain open on all 
construction permits until bidding stops on every construction permit.
    40. However, the Bureaus propose to retain the discretion to 
exercise any of the following options during Auction No. 62:
    i. Use a modified version of the simultaneous stopping rule. The 
modified stopping rule would close the auction for all construction 
permits after the first round in which no bidder applies a waiver, 
places a withdrawal or submits any new bids on any construction permit 
for which it is not the provisionally winning bidder. Thus, absent any 
other bidding activity, a bidder placing a new bid on a construction 
permit for which it is the provisionally winning bidder would not keep 
the auction open under this modified stopping rule. The Bureaus further 
seek comment on whether this modified stopping rule should be used at 
any time or only in stage two of the auction.
    ii. Keep the auction open even if no bidder submits any new bids, 
applies a waiver or places any withdrawals. In this event, the effect 
will be the same as if a bidder had applied a waiver. The activity 
rule, therefore, will apply as usual and a bidder with insufficient 
activity will either lose bidding

[[Page 21786]]

eligibility or use a remaining activity rule waiver.
    iii. Declare that the auction will end after a specified number of 
additional rounds (``special stopping rule''). If the Bureaus invoke 
this special stopping rule, it will accept bids in the specified final 
round(s) and the auction will close.
    41. The Bureaus propose to exercise these options only in certain 
circumstances, for example, where the auction is proceeding very 
slowly, there is minimal overall bidding activity, or it appears likely 
that the auction will not close within a reasonable period of time. 
Before exercising these options, the Bureaus are likely to attempt to 
increase the pace of the auction by, for example, increasing the number 
of bidding rounds per day, and/or increasing the minimum acceptable bid 
percentage for the limited number of construction permits on which 
there is still a high level of bidding activity. We seek comment on 
these proposals.

IV. Due Diligence

    42. Potential bidders are solely responsible for investigating and 
evaluating all technical and market place factors that may have a 
bearing on the value of the broadcast facilities in this auction. The 
FCC makes no representations or warranties about the use of this 
spectrum for particular services. Applicants should be aware that an 
FCC auction represents an opportunity to become an FCC permittee in the 
broadcast service, subject to certain conditions and regulations. An 
FCC auction does not constitute an endorsement by the FCC of any 
particular service, technology, or product, nor does an FCC 
construction permit or license constitute a guarantee of business 
success. Applicants should perform their individual due diligence 
before proceeding as they would with any new business venture. In 
particular, potential bidders are strongly encouraged to review all 
underlying Commission orders, such as the specific Report and Order 
amending the FM Table of Allotments and allotting the FM channel(s) on 
which they plan to bid. Reports and Orders adopted in FM allotment 
rulemaking proceedings often include anomalies such as site 
restrictions or expense reimbursement requirements. Additionally, 
potential bidders should perform technical analyses sufficient to 
assure them that, should they prevail in competitive bidding for a 
given FM construction permit, they will be able to build and operate 
facilities that will fully comply with the Commission's technical and 
legal requirements. Applicants are strongly encouraged to inspect any 
prospective transmitter sites located in, or near, the service area for 
which they plan to bid, and also to familiarize themselves with the 
Commission's rules regarding the National Environmental Policy Act.
    43. Potential bidders are strongly encouraged to conduct their own 
research prior to Auction No. 62 in order to determine the existence of 
pending proceedings that might affect their decisions regarding 
participation in the auction. Participants in Auction No. 62 are 
strongly encouraged to continue such research during the auction.

V. Conclusion

    44. Comments are due on or before April 29, 2005, and reply 
comments are due on or before May 6, 2005. All filings must be 
addressed to the Commission's Secretary, Attn: WTB/ASAD, Office of the 
Secretary, Federal Communications Commission. Parties who file by paper 
must file an original and four copies of each filing. U.S. Postal 
Service first-class, Express, and Priority mail should be addressed to 
Office of the Secretary, 445 12th Street, SW., Washington, DC 20554. 
Filings can be sent by hand or messenger delivery, by commercial 
overnight courier, or by first-class or overnight U.S. Postal Service 
mail. The Bureaus also require that all comments and reply comments be 
filed electronically to the following address: [email protected]. The 
electronic mail containing the comments or reply comments must include 
a subject or caption referring to ``Auction No. 62 Comments'' and the 
name of the commenting party. The Bureaus request that parties format 
any attachments to electronic mail as Adobe [supreg] Acrobat [supreg] 
(pdf) or Microsoft [supreg] Word documents. Copies of comments and 
reply comments will be available for public inspection between 8 a.m. 
and 4:30 p.m. Monday through Thursday or 8 a.m. to 11:30 a.m. on Friday 
in the FCC Reference Information Center, Room CY-A257, 445 12th Street, 
SW., Washington, DC 20554, and will also be posted on the Web page for 
Auction No. 62 at http://wireless.fcc.gov/auctions/62.
    45. This proceeding has been designated as a ``permit-but-
disclose'' proceeding in accordance with the Commission's ex parte 
rules. Persons making oral ex parte presentations are reminded that 
memoranda summarizing the presentations must contain summaries of the 
substance of the presentations and not merely a listing of the subjects 
discussed. More than a one or two sentence description of the views and 
arguments presented is generally required. Other rules pertaining to 
oral and written ex parte presentations in permit-but-disclose 
proceedings are set forth in Sec.  1.1206(b) of the Commission's rules.

Federal Communications Commission.
Gary Michaels,
Deputy Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. 05-8521 Filed 4-26-05; 8:45 am]
BILLING CODE 6712-01-P