[Federal Register Volume 70, Number 109 (Wednesday, June 8, 2005)]
[Notices]
[Pages 33478-33491]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-11379]


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FEDERAL COMMUNICATIONS COMMISSION

[Report No. AUC-05-81-E (Auction No. 81); DA 05-1337]


Auction of Low Power Television Construction Permits Scheduled 
for September 14, 2005, Notice and Filing Requirements, Minimum Opening 
Bids, Upfront Payments and Other Procedures for Auction No. 81

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This document announces the procedures and minimum opening 
bids

[[Page 33479]]

for the upcoming auction of construction permits for certain low power 
television (LPTV), television translator, and Class A television 
broadcast stations. This document is intended to familiarize 
prospective bidders with the procedures and minimum opening bids for 
this auction.

DATES: Auction No. 81 is scheduled to begin on September 14, 2005.

FOR FURTHER INFORMATION CONTACT: Auctions and Spectrum Access Division, 
Wireless Telecommunications Bureau: For legal questions: Lynne Milne at 
(202) 418-0660. For general auction questions: Jeff Crooks at (202) 
418-0660 or Linda Sanderson at (717) 338-2888: Media Contact: Lauren 
Patrich at (202) 418-7944. Video Division, Media Bureau: For service 
rule questions: Shaun Maher or Hossein Hashemzadeh at (202) 418-1600. 
To request materials in accessible formats (Braille, large print, 
electronic files, audio format) for people with disabilities, send an 
e-mail to [email protected] or call the Consumer and Governmental Affairs 
Bureau at (202) 418-0530 or (202) 418-0432 (TTY).

SUPPLEMENTARY INFORMATION: This is a summary of the Auction No. 81 
Procedures Public Notice, released on May 20, 2005. The complete text 
of the Auction No. 81 Procedures Public Notice, including attachments, 
as well as related Commission documents, are available for public 
inspection and coping from 8 a.m. to 4:30 p.m. eastern time (ET) Monday 
through Thursday or from 8 a.m. to 11:30 a.m. ET on Fridays at the FCC 
Reference Information Center, Portals II, 445 12th Street, SW., Room 
CY-A257, Washington, DC 20554. The Auction No. 81 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. 
81 Procedures Public Notice and related documents are also available on 
the Internet at the Commission's Web site: http://wireless.fcc.gov/auctions/81/.

I. General Information

A. Introduction

    1. The Auction No. 81 Procedures Public Notice announces the 
procedures and minimum opening bid amounts for the upcoming auction of 
construction permits in Auction No. 81, scheduled to begin on September 
14, 2005. On February 28, 2005, in accordance with 47 U.S.C. 309(j)(4), 
the Media Bureau (MB) and Wireless Telecommunications Bureau (WTB) 
(collectively the Bureaus) released a public notice seeking comment on 
reserve prices or minimum opening bid amounts and the procedures to be 
used in Auction No. 81. The Bureaus received comments and reply 
comments from the National Translator Association in response to the 
Auction No. 81 Comment Public Notice, 70 FR 11975, March 10, 2005.
i. Background
    2. On June 23, 2000, the Bureaus announced a limited auction filing 
window for certain LPTV, television translator, and Class A television 
broadcast stations. Auction No. 81 Filing Window Public Notice, 65 FR 
39619, June 27, 2000. On February 28, 2005, the Bureaus by public 
notice required each Auction No. 81 applicant to submit its FCC 
registration number (FRN). Auction No. 81 FRN Public Notice, 70 FR 
11974, March 10, 2005. On April 13, 2005, the Bureaus by public notice 
revised the auction inventory. Auction No. 81 Revised Inventory Public 
Notice, 70 FR 22042, April 28, 2005.
ii. Construction Permits To Be Auctioned
    3. Auction No. 81 will offer 113 construction permits for specified 
LPTV, television translator and Class A television broadcast stations. 
These construction permits are the subject of pending mutually-
exclusive (MX) short-form applications (FCC Forms 175) filed on or 
before August 4, 2000. Participation in this auction will be limited to 
those applicants and engineering proposals identified in Attachment A 
of the Auction No. 81 Procedures Public Notice. Qualifying applicants 
will be eligible to bid only on those construction permits for which 
the applicant's engineering proposal is specified in the particular 
mutually exclusive group (MX group) as set forth in Attachment A of the 
Auction No. 81 Procedures Public Notice. All engineering proposals 
within an MX group are directly mutually exclusive with one another, 
and therefore a single construction permit will be auctioned for each 
MX group identified in Attachment A of the Auction No. 81 Procedures 
Public Notice.
    4. The National Translator Association (NTA) submitted comments and 
reply comments concerning the treatment of daisy chain MX groups. For 
LPTV, television translator and Class A television broadcast stations, 
a daisy chain occurs when two or more non-table, site-based 
applications propose stations with projected contours that do not 
directly overlap, but are linked together into a chain by the 
overlapping projected contours of other proposed stations. A daisy 
chain may contain numerous proposals in a long link proposing 
facilities in communities of differing population sizes. The NTA argues 
that, when the Commission addresses the issue of daisy chain 
applications, it should develop auction procedures whereby the daisy 
chain will be offered as an MX group, and at the conclusion of the 
auction those applications which are then not mutually exclusive with 
the auction winner would be processed for further grant or auction, as 
appropriate.
    5. MX groups with a daisy chain of mutual exclusivity are not 
proceeding to auction at this time. A separate auction of construction 
permits for daisy chain MX groups will be announced at a later date. 
The issues raised by the NTA with respect to daisy chain applications 
would be raised more appropriately when the auction for the daisy chain 
applications is announced. As the NTA acknowledges, none of the MX 
groups in Auction No. 81 contain daisy chains and, therefore, we will 
not resolve those issues here.
    6. As stated in the Broadcast First Report and Order, 63 FR 48615, 
September 11, 1998, all pending mutually exclusive applications for 
broadcast services must be resolved through a system of competitive 
bidding. When two or more short-form applications are accepted for 
filing within an MX group, mutual exclusivity exists for auction 
purposes. Once mutual exclusivity exists for auction purposes, even if 
only one applicant within an MX group submits an upfront payment, that 
applicant is required to submit a bid in order to obtain the 
construction permit.
    7. The Bureaus note that some MX groups contain multiple 
engineering proposals submitted by a single applicant. In such cases, 
one bidder with multiple engineering proposals in an MX group may only 
bid for a single construction permit in the MX group. If that bidder is 
the winning bidder for that MX group at the conclusion of the auction, 
the bidder would file a long-form application for no more than one of 
its engineering proposals. Note: In no instance will more than a single 
construction permit be licensed to the winning bidder for a particular 
MX group, even if that bidder had submitted more than one engineering 
proposal that is included in that MX group.

[[Page 33480]]

B. Rules and Disclaimers

i. Relevant Authority
    8. Prospective applicants must familiarize themselves thoroughly 
with the Commission's general competitive bidding rules, including 
recent amendments and clarifications. Broadcasters should also 
familiarize themselves with the Commission's rules relating to 
broadcast auctions contained in 47 CFR 73.5000-73.5009. Prospective 
applicants must also be thoroughly familiar with the procedures, terms 
and conditions (collectively, terms) contained in the Auction No. 81 
Procedures Public Notice; the Auction No. 81 Inventory Public Notice; 
the Auction No. 81 Comment Public Notice; the Auction No. 81 Filing 
Window Public Notice; the Broadcast First Report and Order; the 
Broadcast First Reconsideration Order, 64 FR 24523, May 7, 1999; the 
New Entrant Bidding Credit Reconsideration Order, 64 FR 44856, August 
18, 1999; and the Noncommerical Educational Second Report and Order, 68 
FR 26220, May 15, 2003.
    9. 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 rules and with all public notices 
pertaining to this auction. Copies of most Commission documents related 
to auctions, including public notices, can be retrieved from the FCC 
Auctions Internet site at http://wireless.fcc.gov/auctions.
ii. Prohibition of Collusion
    10. Auction No. 81 applicants are reminded that the anti-collusion 
rules found at 47 CFR 1.2105(c) and 73.5002(d) are in effect. These 
rules prohibit applicants competing for construction permits in either 
the same geographic license area or the same MX group from 
communicating with each other during the auction about bids, bidding 
strategies, or settlements unless they have identified each other on 
their short-form applications (FCC Forms 175) filed in 2000 as parties 
with whom they have entered into agreements under 47 CFR 
1.2105(a)(2)(viii). Thus, applicants competing for construction permits 
in either the same geographic license area or the same MX group must 
affirmatively avoid all communications with each other that affect, or 
in their reasonable assessment have the potential to affect, bids or 
bidding strategy. In some instances, this prohibition extends to 
communications regarding the post-auction market structure. For Auction 
No. 81, this prohibition became effective at the short-form application 
filing deadline on August 4, 2000, and will end on the post-auction 
down payment deadline, which will be announced in a future public 
notice. This prohibition applies to all applicants regardless of 
whether such applicants become qualified bidders or actually bid. For 
purposes of this prohibition, 47 CFR 1.2105(c)(7)(i) defines applicant 
as including all controlling interests in the entity submitting a 
short-form application to participate in the auction, as well as all 
holders of partnership and other ownership interests and any stock 
interest amounting to 10 percent or more of the entity, or outstanding 
stock, or outstanding voting stock of the entity submitting a short-
form application, and all officers and directors of that entity. Under 
47 CFR 1.2105(c), if parties had agreed in principle on all material 
terms of an agreement, those parties must have been identified on the 
short-form application filed in 2000, even if the agreement had not 
been reduced to writing. If parties had not agreed in principle on all 
material terms by the 2000 filing deadline, an applicant should not 
have included the names of those parties on its application, and must 
not have continued negotiations, discussions or communications with 
other applicants for construction permits in the same geographic area 
or the same MX group.
    11. Applicants competing for construction permits in either the 
same geographic license area or the same MX group 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 the authorized bidder is authorized to represent in the 
auction. Also, if the authorized bidders are different individuals 
employed by the same organization (e.g., law firm or engineering firm 
or consulting firm), a violation similarly could occur.
    12. By electronically submitting its short-form application (FCC 
Form 175), each Auction No. 81 applicant certified its compliance with 
47 CFR 1.2105(c) and 73.5002. However, the Bureaus caution that merely 
filing a certifying statement as part of an application will not 
outweigh specific evidence that collusive behavior has occurred, nor 
will it preclude the initiation of an investigation when warranted.
    13. In addition, 47 CFR 1.65 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, 47 CFR 1.65 requires an auction applicant to notify 
the Commission of any violation of the anti-collusion rules upon 
learning of such violation. Applicants are therefore required by 47 CFR 
1.65 to make such notification to the Commission immediately upon 
discovery. In addition, 47 CFR 1.2105(c)(6) requires that any applicant 
that makes or receives a communication prohibited by 47 CFR 1.2105(c) 
must report such communication to the Commission in writing 
immediately, and in no case later than five business days after the 
communication occurs.
    14. A summary listing of documents issued by the Commission and the 
Bureaus addressing the application of the anti-collusion rule may be 
found in Attachment E of the Auction No. 81 Procedures Public Notice 
and these documents are available on the Commission's auction anti-
collusion web page at http://wireless.fcc.gov/auctions/anticollusion.
iii. Due Diligence
    15. 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 construction 
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.
    16. Potential bidders are strongly encouraged to conduct their own 
research prior to the beginning of bidding in Auction No. 81 in order 
to determine the existence of pending proceedings that might affect 
their decisions regarding participation in bidding in the auction. 
Participants in Auction No. 81 are strongly encouraged

[[Page 33481]]

to continue such research during the auction. In addition, potential 
bidders should perform technical analyses sufficient to assure 
themselves that, should they prevail in competitive bidding for a 
specific construction permit, they will be able to build and operate 
facilities that will fully comply with the Commission's technical and 
legal requirements.
    17. Potential bidders 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 permittees or incumbent licensees or 
the engineering proposals included in Auction No. 81. In addition, 
pending and future judicial proceedings may relate to particular 
applicants, incumbent permittees, or incumbent licensees, or the 
engineering proposals included in Auction No. 81. Prospective bidders 
are responsible for assessing the likelihood of the various possible 
outcomes, and considering their potential impact on construction 
permits available in this auction.
    18. Potential bidders should also note that LPTV and television 
translator stations are authorized with secondary frequency use status. 
These stations may not cause interference to, and must accept 
interference from, full service television stations, certain land 
mobile radio operations, and other primary services. See 47 CFR 74.703, 
74.709 and 90.303.
    19. 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 the construction permits available in Auction No. 81. Potential 
applicants are strongly encouraged to physically inspect any sites 
located in, or near, the service area for which they plan to bid, and 
also to familiarize themselves with the environmental assessment 
obligations described in the Auction No. 81 Procedures Public Notice.
    20. Potential bidders may research the licensing database for the 
Media Bureau on the Internet in order to determine which channels are 
already licensed to incumbent licensees or previously authorized to 
construction permittees. Licensing records for the Media Bureau are 
contained in the Media Bureau's Consolidated Data Base System (CDBS) 
and may be researched on the Internet at http://www.fcc.gov/mb/. 
Potential bidders may query the database online and download a copy of 
their search results if desired. Detailed instructions on using Search 
for Station Information, Search for Ownership Report Information and 
Search for Application Information and downloading query results are 
available online by selecting the CDBS Public Access (main) button at 
the bottom of the Electronic Filing and Public Access list section. The 
database searches return either station or application data. The 
application search provides an application link that displays the 
complete electronically filed application in application format. An AL/
TC search under the application search link permits searching for 
Assignment of License/Transfer of Control groups using the AL/TC group 
lead application. For further details, click on the Help file. 
Potential bidders should direct questions regarding the search 
capabilities of CDBS to the Media Bureau help line at (202) 418-2662, 
or via e-mail at [email protected].
    21. 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 a bidder, bidders 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.
iv. Bidder Alerts
    22. As is the case with many business investment opportunities, 
some unscrupulous entrepreneurs may attempt to use Auction No. 81 to 
deceive and defraud unsuspecting investors. Information about deceptive 
telemarketing investment schemes is available from the Federal Trade 
Commission (FTC) at (202) 326-2222 and from the Securities and Exchange 
Commission (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. 81 may also call the FCC Consumer Center at (888) CALL-FCC ((888) 
225-5322).
v. National Environmental Policy Act Requirements
    23. Construction permittees or licensees must comply with the 
Commission's rules regarding implementation of the National 
Environmental Policy Act (NEPA). The construction of a broadcast 
facility is a federal action and the permittee must comply with the 
Commission's NEPA rules for each such facility. Among other things, 47 
CFR 1.1305-1.1319 require that the permittee consult with expert 
agencies having NEPA responsibilities, including the U.S. Fish and 
Wildlife Service, the State Historic Preservation Office, the U.S. Army 
Corps of Engineers and the Federal Emergency Management Agency (through 
the local authority with jurisdiction over floodplains). The permittee 
must prepare environmental assessments for broadcast facilities that 
may have a significant impact in or on wilderness areas, wildlife 
preserves, threatened or endangered species or designated critical 
habitats, historical or archaeological sites, Indian religious sites, 
floodplains, and surface features. The permittee must also prepare 
environmental assessments for facilities that include high intensity 
white lights in residential neighborhoods or excessive radio frequency 
emission.

C. Auction Specifics

i. Auction Date
    24. The competitive bidding in this auction will begin on 
Wednesday, September 14, 2005, as announced in the Auction No. 81 
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 construction 
permits will be conducted on each business day until bidding has 
stopped on all construction permits.
ii. Auction Title
    25. Auction No. 81--LPTV.
iii. Bidding Methodology
    26. The bidding methodology for Auction No. 81 will be simultaneous 
multiple round bidding. The Commission will conduct this auction over 
the Internet using the FCC's Integrated Spectrum Auction system (ISAS 
or FCC Auction System), and telephonic bidding will be available as 
well. Qualified bidders are permitted to bid electronically via the 
Internet or by telephone.
iv. Pre-Auction Dates and Deadlines
    Auction Seminar: June 24, 2005.

[[Page 33482]]

    FCC Form 175 Remedial Filing Window Opens: June 24, 2005; 12 p.m. 
ET.
    FCC Form 175 Remedial Filing Window Deadline: July 8, 2005; 6 p.m. 
ET.
    Upfront Payments (via wire transfer): August 12, 2005; 6 p.m. ET.
    Mock Auction: September 12, 2005.
    Auction Begins: September 14, 2005.
v. Requirements for Participation
    27. Those wishing to participate in the auction must: (A) Be listed 
on Attachment A of the Auction No. 81 Procedures Public Notice; (B) 
Submit a sufficient upfront payment and an FCC Remittance Advice Form 
(FCC Form 159) before 6 p.m. ET, August 12, 2005; and (C) Comply with 
all provisions outlined in the Auction No. 81 Procedures Public Notice 
and applicable Commission rules.
vi. General Contact Information
GENERAL AUCTION INFORMATION General Auction Questions Seminar 
Registration
    FCC Auctions Hotline (888) 225-5322, option two; or (717) 338-2888 
Hours of service: 8 a.m.-5:30 p.m. ET, Monday through Friday

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

LICENSING INFORMATION Rules, Policies, Regulations Licensing Issues, 
Engineering Issues, Due Diligence, Incumbency Issues
    Video Division (202) 418-1600

TECHNICAL SUPPORT Electronic Filing FCC Auction System
    FCC Auctions Technical Support Hotline (877) 480-3201, option nine; 
or (202) 414-1250 (202) 414-1255 (TTY) Hours of service: 8 a.m.--6 p.m. 
ET, Monday through Friday

PAYMENT INFORMATION Wire Transfers Refunds
    FCC Auctions Accounting Branch (202) 418-0578 (202) 418-2843 (Fax)

TELEPHONIC BIDDING
    Will be furnished only to qualified bidders

FCC COPY CONTRACTOR Additional Copies of Commission Documents
    Best Copy and Printing, Inc 445 12th Street, SW., Room CY-B402 
Washington, DC 20554 (800) 378-3160 http://www.bcpiweb.com

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

ACCESSIBLE FORMATS Braille, large print, electronic files, or audio 
format for people with disabilities
    Consumer and Governmental Affairs Bureau (202) 418-0530 or (202) 
418-0432 (TTY) [email protected]

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

A. Transition of Applicant's FCC Form 175 to Integrated Spectrum 
Auction System--Remedial Filing Window Closes July 8, 2005

    28. Applicants seeking construction permits available in Auction 
No. 81 were required to file a short-form application, FCC Form 175, by 
the filing deadline on August 4, 2000. At that time, the Commission 
used the FCC's Automated Auction System (AAS). However, the Commission 
will conduct Auction No. 81 using the FCC's new Integrated Spectrum 
Auction System (ISAS). Each Auction No. 81 applicant will need to 
provide some additional information in its FCC Form 175 to comply with 
current Commission requirements. Each applicant must review its FCC 
Form 175 in ISAS to assure that all relevant information is provided. 
It is possible that an applicant may need to revise information 
previously submitted to keep its FCC Form 175 accurate and complete as 
required by 47 CFR 1.65 or other rule requirements. To accommodate 
these needs, the Commission will open a remedial filing window to allow 
each applicant in Auction No. 81 to provide required new information in 
its FCC Form 175 and to review, update and confirm information 
previously submitted. Applicants listed in Attachment A of the Auction 
No. 81 Procedures Public Notice must use ISAS to review the information 
previously submitted and provide required new and corrected information 
from noon ET on Friday, June 24, 2005, until 6 p.m. ET on Friday, July 
8, 2005.
    29. To insure that the FCC Form 175 is accurate and complete, each 
applicant must review carefully all of the information provided in the 
Auction No. 81 Procedures Public Notice, including the section 
regarding declarations as to former defaults and delinquencies. In 
addition, applicants will find a description of the new information 
which must be submitted during this remedial window, as well as the 
review of information previously submitted, in Attachment C of the 
Auction No. 81 Procedures Public Notice. In this same attachment, the 
Bureaus also provide instructions on how to submit new information or 
revise information previously submitted.

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

    30. Following the deadline for filing short-form applications (FCC 
Forms 175) on August 4, 2000, applicants in Auction No. 81 are 
permitted to make only minor changes to their applications. As 
prescribed by 47 CFR 1.2105, applicants are not permitted to make major 
modifications to their applications (e.g., change their construction 
permit selections, change control of the applicant, or seek additional 
bidding credit eligibility). Permissible minor changes include, for 
example, deletion and addition of authorized bidders (to a maximum of 
three) and revision of addresses and phone numbers of the applicants 
and their contact persons.
    31. In addition, applicants should 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. 81 and the 
name of the applicant. A separate copy of the letter should be sent by 
facsimile to the attention of Kathryn Garland at (717) 338-2850. The 
Bureaus request that parties format any attachments to electronic mail 
as Adobe[reg] Acrobat[reg] (pdf) or Microsoft[reg] Word documents. 
Questions about short-form application (FCC Form 175) amendments should 
be directed to Lynne Milne of the Auctions and Spectrum Access Division 
at (202) 418-0660.

C. Maintaining the Accuracy of FCC Form 175 Information

    32. Each applicant is required by 47 CFR 1.65 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. If an amendment reporting substantial changes is a major 
amendment as defined by 47 CFR 1.2105, the major amendment will not be 
accepted and may, in some instances, result in the dismissal of the FCC 
Form 175 application.
    33. Applicants must report these modifications to their FCC Form 
175 by electronic mail and submit a letter briefly summarizing the 
changes to the attention of Margaret Wiener, Chief, Auctions and 
Spectrum Access

[[Page 33483]]

Division, at the following address: [email protected]. The electronic 
mail summarizing the changes must include a subject or caption 
referring to Auction No. 81 and the name of the applicant. The Bureaus 
request that parties format any attachments to electronic mail as 
Adobe[reg] Acrobat[reg] (pdf) or Microsoft[reg] Word documents. A 
separate copy of the letter should be sent by facsimile to the 
attention of Kathryn Garland at (717) 338-2850. Questions about other 
changes should be directed to Lynne Milne of the Auctions and Spectrum 
Access Division at (202) 418-0660.
    34. In addition, an applicant must make these changes to its short-
form application (FCC Form 175) on-line during the remedial filing 
window or during the time period that will be specified in the public 
notice explaining the status of the applications in Auction No. 81. 
During the remedial filing window or during the time period specified 
in a subsequent public notice explaining the status of the applications 
in Auction No. 81, applicants must click on the SUBMIT button in the 
FCC Auction System for the changes to be submitted and considered by 
the Commission. After the revised application has been submitted, a 
confirmation page will be displayed that states the submission time and 
date, along with a unique file number.

D. Requirements for Logging on to the FCC Auction System

    35. Although applicants submitted their original FCC Form 175 
applications by using a Taxpayer Identification Number (TIN), any 
review of and updates to these applications will require the use of an 
FCC Registration Number (FRN). Use of an FRN is mandatory for all 
applicants for Auction No. 81 so that each applicant may log on to the 
FCC Auction System to review its FCC Form 175 and continue to 
participate in the auction process. A remedial filing window for review 
of FCC Form 175 applications and the submission of required information 
will be open from noon ET on Friday, June 24, 2005, until 6 p.m. ET on 
Friday, July 8, 2005. In Attachment C of the Auction No. 81 Procedures 
Public Notice, the Bureaus provide specific instructions about logging 
on to the FCC Auction System.

E. Provisions Regarding Former Defaulters

    36. Pursuant to current Commission rules, including 47 CFR 
1.2105(a)(2), each applicant in Auction No. 81 now must submit a 
statement, under penalty of perjury, as part of its short-form 
application (FCC Form 175), regarding whether or not the applicant, its 
affiliates, its controlling interests, or any affiliates of its 
controlling interests, as defined by 47 CFR 1.2110, have ever been in 
default on any Commission licenses or have ever been delinquent on any 
non-tax debt owed to any Federal agency. Each applicant in Auction No. 
81 must make this statement as provided on the current FCC Form 175 and 
must attach to its FCC Form 175 information identifying the person 
making the statement.
    37. The new format of FCC Form 175 in ISAS provides a screen where 
the applicant must select one of two form statements describing the 
status of the applicant, its affiliates, its controlling interests, or 
any affiliates of its controlling interests regarding former defaults 
or delinquencies. In addition, because the statement must be made under 
penalty of perjury, each applicant in Auction No. 81 must submit an 
attachment identifying the party responsible for making the statement 
on behalf of the applicant. Applicants in Auction No. 81 are reminded 
that submission of a false certification to the Commission is a serious 
matter that may result in severe penalties, including monetary 
forfeitures, license revocations, exclusion from participation in 
future auctions, and/or criminal prosecution.
    38. Former defaulters--i.e., applicants, including their 
attributable interest holders, that, as of the day the statement is 
submitted to the Commission, 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. 81, provided that they are otherwise qualified. 
However, former defaulters are required by 47 CFR 1.2106(a) to pay 
upfront payments that are fifty percent more than the normal upfront 
payment amounts.
    39. Applicants are reminded that current defaulters--i.e., 
applicants, including their attributable interest holders, that are in 
default on any payment for Commission licenses (including down 
payments) or are delinquent on any non-tax debt owed to any Federal 
agency--are not eligible to bid in Auction No. 81.
    40. Applicants are encouraged to review the Wireless 
Telecommunications Bureau's previous guidance on default and 
delinquency disclosure requirements in the context of our short-form 
application process. Applicants are reminded that the Commission's Red 
Light Display System, which provides information regarding debts owed 
to the Commission, may not be determinative of an auction applicant's 
ability to comply with the default and delinquency disclosure 
requirements of 47 CFR 1.2105.
    41. The applicants listed in Attachment A of the Auction No. 81 
Procedures Public Notice must file the additional information 
identified above from noon ET on Friday, June 24, 2005, until 6 p.m. ET 
on Friday, July 8, 2005. Further details about this particular 
submission are provided in Attachment C of the Auction No. 81 
Procedures Public Notice.

F. Electronic Review of Short-Form Applications (FCC Forms 175)

    42. During the remedial window, an applicant may review and update 
its own completed FCC Form 175 application in the FCC Auction System. 
There is no fee for accessing this system. Attachment C of the Auction 
No. 81 Procedures Public Notice provides further information about 
access to the FCC's ISAS.
    43. Applicants will also be able to view other applicants' 
completed FCC Form 175 applications after the Commission has issued a 
subsequent public notice concerning the status of the Auction No. 81 
applications. Instructions for electronic review of FCC Form 175 
applications will be discussed in the public notice concerning the 
status of the applications.

G. Installment Payments

    44. In 1997, the Commission suspended the use of auction 
installment payments. Installment payment plans will not be available 
in Auction No. 81.

III. Pre-Auction Procedures

A. Application Processing and Minor Corrections

    45. 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 
resubmitting such corrected applications.
    46. Applications for construction permits for noncommercial 
educational broadcast stations (NCE stations) are exempted from 
competitive bidding by 47 U.S.C. 309(j)(2)(C). For purposes of this 
auction, this exemption applies to a proposal for a new LPTV, 
television

[[Page 33484]]

translator or Class A television broadcast station that is owned and 
operated by a municipality and which transmits only noncommercial 
programs for educational purposes. In the NCE Second Report and Order, 
the Commission held that LPTV and television translator facilities 
qualify as NCE stations, and are exempt from auction, only if they are 
owned and operated by municipalities and transmit only NCE programs.
    47. The Commission also stated that proposals for NCE stations may 
be submitted for non-reserved spectrum in a filing window, subject to 
being returned as unacceptable for filing if there is any mutually 
exclusive application for a commercial station. Accordingly, with a 
specified deadline of May 13, 2005, the Bureaus provided applicants in 
Auction No. 81 with an opportunity to designate their status as an NCE 
station applicant. If any Auction No. 81 applicants made such a claim 
and one or more of the NCE applicant's engineering proposals is 
determined to be mutually exclusive with one or more engineering 
proposals filed by an applicant for a commercial station, the NCE 
station engineering proposal(s) will be returned as unacceptable for 
filing.

B. Auction Seminar--June 24, 2005

    48. On Friday, June 24, 2005, the FCC will sponsor a seminar for 
parties interested in participating in Auction No. 81 at the Federal 
Communications Commission, located at 445 12th Street, SW., Washington, 
DC. The seminar will provide attendees with information about pre-
auction procedures, revision of FCC Form 175 during the remedial filing 
window, auction conduct, the FCC Auction System, auction rules, and the 
LPTV, television translator and Class A television broadcast service 
rules. The seminar will also provide an opportunity for prospective 
bidders to ask questions of Commission staff.
    49. To register, complete the registration form provided as 
Attachment B of the Auction No. 81 Procedures Public Notice and submit 
it no later than Tuesday, June 21, 2005. Registrations are accepted on 
a first-come, first-served basis. The seminar is free of charge.
    50. For individuals who are unable to attend, an Audio/Video 
recording of this seminar will be available via webcast from the FCC's 
Auction 81 Web page at http://wireless.fcc.gov/auctions/81/, if you 
select Auction Seminar.

C. Upfront Payments--Due August 12, 2005

    51. 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). All upfront payments must be received at Mellon Bank by 
6 p.m. ET on August 12, 2005.
i. Making Auction Payments by Wire Transfer
    52. Wire transfer payments must be received by 6 p.m. ET on August 
12, 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. The specific information needed to make the required wire 
transfer payments is provided in the Auction No. 81 Procedures Public 
Notice.
    53. Applicants must send by facsimile 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 facsimile, write Wire 
Transfer--Auction Payment for Auction Event No. 81. 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. All payments must be made in U.S. 
dollars. All payments must be made by wire transfer. Upfront payments 
for Auction No. 81 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 deadline on August 12, 2005 will result in dismissal of 
the application and disqualification from participation in the auction.
ii. FCC Form 159
    54. A completed FCC Remittance Advice Form (FCC Form 159, Revised 
2/03) must be sent by facsimile to Mellon Bank to accompany each 
upfront payment. Proper completion of FCC Form 159 (Revised 2/03) is 
critical to ensuring correct crediting of upfront payments. Detailed 
instructions for completion of FCC Form 159 are included in Attachment 
D of the Auction No. 81 Procedures Public Notice. An electronic pre-
filled version of the FCC Form 159 is available after submitting the 
FCC Form 175 during the remedial period. Payors using a pre-filled FCC 
Form 159 are responsible for ensuring that all of the information on 
the form, including payment amounts, is accurate. The FCC Form 159 can 
be completed electronically, but must be filed with Mellon Bank via 
facsimile.
iii. Amount of Upfront Payment
    55. In the Part 1 Competitive Bidding Order, 62 FR 13540, March 21, 
1997, the Commission delegated to the Wireless Telecommunications 
Bureau the authority and discretion to determine appropriate upfront 
payment(s) for each auction. In addition, in the Fifth Report and 
Order, 65 FR 52323, August 29, 2000, the Commission ordered that former 
defaulters, i.e., applicants that have ever been in default on any 
Commission license or have ever been delinquent on any non-tax debt 
owed to any Federal agency, but that have since remedied all such 
defaults and cured all of their outstanding non-tax delinquencies, 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 47 CFR 1.2110.
    56. In the Auction No. 81 Comment Public Notice, the Bureaus 
proposed that the amount of the upfront payment would determine a 
bidder's initial bidding eligibility, the maximum number of bidding 
units on which a bidder may place bids. In order to bid on a 
construction permit, otherwise qualified bidders that are designated in 
Attachment A of the Auction No. 81 Procedures Public Notice for that 
construction permit must have a current eligibility level that meets or 
exceeds the number of bidding units assigned to that construction 
permit. At a minimum, therefore, an applicant's total upfront payment 
must be enough to establish eligibility to bid on at least one of the 
construction permits designated for that applicant in Attachment A of 
the Auction No. 81 Procedures Public Notice, 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 construction permits 
designated for that applicant in Attachment A of the Auction No. 81 
Procedures Public Notice, but rather to cover the maximum number of 
bidding units that are associated with construction permits on which 
the bidder wishes to place bids and hold provisionally winning bids at 
any given time. Provisionally winning bids are bids that would become 
final winning bids if the auction were to close in that given round.

[[Page 33485]]

    57. In the Auction No. 81 Comment Public Notice, the Bureaus 
proposed upfront payments for each construction permit, taking into 
account various factors related to the efficiency of the auction 
process and the potential value of similar spectrum. No comments were 
received on this issue; therefore, the Bureaus adopted its proposal. 
The specific upfront payments and bidding units for each construction 
permit are specified in Attachment A of the Auction No. 81 Procedures 
Public Notice.
    58. In calculating its upfront payment amount, an applicant should 
determine the maximum number of bidding units on which it may wish to 
be active on (bid on or hold provisionally winning bids on) in any 
single round, and submit an upfront payment amount covering that number 
of bidding units. In order to make this calculation, an applicant 
should add together the upfront payments for all construction permits 
on which it seeks to be active in any given round. Applicants should 
check their calculations carefully, as there is no provision for 
increasing a bidder's eligibility after the upfront payment deadline.

                                Example: Upfront Payments and Bidding Flexibility
----------------------------------------------------------------------------------------------------------------
            Market No.                  Channel             Location          Bidding units     Upfront payment
----------------------------------------------------------------------------------------------------------------
MX001............................                 11  Port Arthur, TX.....              1,000             $1,000
MX007............................                 43  Aberdeen, SD........              1,000              1,000
----------------------------------------------------------------------------------------------------------------

    59. In this example, if a bidder wishes to bid on both construction 
permits in a round, it must be identified in Attachment A of the 
Auction No. 81 Procedures Public Notice for both and have purchased at 
least 2,000 bidding units (1,000 + 1,000). If a bidder only wishes to 
bid on one, but not both, purchasing bidding units would meet the 
requirements of either construction permit. The bidder would be able to 
bid on either construction permit, but not both at the same time.
    60. Former defaulters, as required by 47 CFR 1.2106(a), should 
calculate their upfront payment by multiplying the number of bidding 
units on which they wish to be active 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. If a former defaulter fails to submit a 
sufficient upfront payment to establish eligibility to bid on at least 
one of the construction permits designated for that applicant in 
Attachment A of the Auction No. 81 Procedures Public Notice, the 
applicant will not be eligible to participate in the auction.
iv. Applicant's Wire Transfer Information for Purposes of Refunds of 
Upfront Payments
    61. The Commission will use wire transfers for all Auction No. 81 
refunds. To ensure that refunds of upfront payments are processed in an 
expeditious manner, the Commission is requesting that all pertinent 
information as listed below be supplied to the FCC. Applicants can 
provide the information electronically during the remedial period 
designated in the Auction No. 81 Procedures Public Notice. Wire 
Transfer Instructions can also be sent by facsimile manually to the 
FCC, Financial Operations Center, Auctions Accounting Group, ATTN: Gail 
Glasser, at (202) 418-2843. 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. The information necessary 
for a refund is specified in the Auction No. 81 Procedures Public 
Notice. For additional information, please call Gail Glasser at (202) 
418-0578.

D. Auction Registration

    62. Approximately ten (10) days before the auction, the Commission 
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 construction permits for which they applied.
    63. All qualified bidders are automatically registered for the 
auction. Registration materials will be distributed prior to the 
auction by overnight mail. The mailing will be sent only to the contact 
person at the contact address listed in the FCC Form 175 and will 
include the SecurID cards which will be required to place bids (or 
access the FCC Auction System) and the telephonic bidding phone number.
    64. Qualified bidders that do not receive this registration mailing 
will not be able to submit bids. Therefore, any qualified bidder that 
has not received this mailing by noon on Thursday, September 8, 2005, 
should telephone (717) 338-2888. Receipt of this registration mailing 
is critical to participating in the auction, and each applicant is 
responsible for ensuring it has received all of the registration 
material.
    65. Qualified bidders should note that lost 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 government-issued photo identification) in 
order to receive replacements. Qualified bidders requiring replacements 
must call technical support prior to arriving at the FCC.

E. Remote Electronic Bidding

    66. The Commission will conduct this auction over the Internet, and 
telephonic bidding will be available as well. Qualified bidders are 
permitted to bid telephonically and electronically through the FCC 
Auction System, but each applicant should indicate its 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, the telephonic bidding phone number, and the Integrated Spectrum 
Auction System (ISAS) Bidder's Guide are only mailed to the contact 
person at the contact address listed on the FCC Form 175.
    67. 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. 81. The 
SecurID cards can be recycled, and we encourage bidders to return the 
cards to the FCC. The Bureaus will provide pre-addressed envelopes that 
bidders may use to

[[Page 33486]]

return the cards once the auction is over.

F. Mock Auction--September 12, 2005

    68. All qualified bidders will be eligible to participate in a mock 
auction on Monday, September 12, 2005. The mock auction will enable 
bidders to become familiar with the FCC Auction System prior to the 
auction. Participation by all bidders is strongly recommended. Details 
will be announced by a future public notice.

IV. Auction Event

    69. The first round of bidding for Auction No. 81 will begin on 
Wednesday, September 14, 2005. The initial bidding schedule will be 
announced in a public notice listing the qualified bidders, which is 
released approximately ten (10) days before the start of the auction.

A. Auction Structure

i. Simultaneous Multiple Round Auction
    70. In the Auction No. 81 Comment Public Notice, the Bureaus 
proposed to award all construction permits in Auction No. 81 in a 
simultaneous multiple round auction. In a simultaneous multiple round 
auction, all construction permits are available during the entire 
auction, and bids are accepted on any construction permit until bidding 
in the auction concludes. The Bureaus received no comment on this 
proposal. The Bureaus concluded that it is operationally feasible and 
appropriate to auction the LPTV, television translator and Class A 
television broadcast stations through a simultaneous multiple round 
auction. The Bureaus adopted the proposal. Unless otherwise announced, 
bids will be accepted on all construction permits in each round of the 
auction.
ii. Eligibility and Activity Rules
    71. In the Auction No. 81 Comment Public Notice, the Bureaus 
proposed that the amount of the upfront payment submitted by a bidder 
would determine the initial (maximum) eligibility (as measured in 
bidding units) for each bidder. The Bureaus received no comments on 
this issue.
    72. For Auction No. 81 the Bureaus adopted this proposal. The 
amount of the upfront payment submitted by a bidder determines initial 
bidding eligibility, which is the maximum number of bidding units on 
which a bidder may place bids. Note again that each construction permit 
is assigned a specific number of bidding units equal to the upfront 
payment listed in Attachment A of the Auction No. 81 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 its current eligibility. 
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 on 
which it may wish to bid and hold provisionally winning bids on in any 
single round, and submit an upfront payment amount covering that total 
number of bidding units. The total upfront payment does not affect the 
total dollar amount a bidder may bid on any given construction permit.
    73. 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. Bidders in Auction No. 81 are required to be 
active on a specific percentage of their current bidding eligibility 
during each round of the auction.
    74. A bidder's activity level in a round is the sum of the bidding 
units associated with construction permits on which the bidder is 
active. A bidder is considered active on a construction permit in the 
current round if it is either the provisionally winning bidder at the 
end of the previous bidding round and does not withdraw the 
provisionally winning bid in the current round, or if it submits a bid 
in the current round. The minimum required activity is expressed as a 
percentage of the bidder's current eligibility, and increases by stage 
as the auction progresses. Because these activity and bidding unit 
eligibility procedures have proven successful in maintaining the pace 
of previous auctions the Bureaus adopted them for Auction No. 81.
iii. Auction Stages
    75. In the Auction No. 81 Comment Public Notice, the Bureaus 
proposed to conduct the auction in two stages and employ an activity 
rule. The Bureaus further proposed that, in each round of Stage One, a 
bidder desiring to maintain its current bidding eligibility would be 
required to be active on construction permits representing at least 80 
percent of its current bidding eligibility. Finally, the Bureaus 
proposed that in each round of Stage Two, a bidder desiring to maintain 
its current bidding eligibility would be required to be active on at 
least 95 percent of its current bidding eligibility. The Bureaus 
received no comments on this proposal.
    76. Because the proposed procedures for activity levels, bidding 
unit eligibility and auction stages have proven successful in 
maintaining proper pace in previous auctions, the Bureaus adopted them 
for Auction No. 81. The activity levels for each stage of the auction 
are described below. The Bureaus reserve the discretion to further 
alter the activity percentages before and/or during bidding in the 
auction.
    77. Stage One: During the first stage of the auction, a bidder 
desiring to maintain its current bidding eligibility will be required 
to be active on construction permits representing 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 for 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 round activity (the sum of bidding units of the bidder's 
provisionally winning bids and bids during the current round) by five-
fourths (\5/4\).
    78. Stage Two: During the second stage of the auction, 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 required activity level will result in a reduction in the 
bidder's bidding eligibility for 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 round activity (the sum of bidding units of the bidder's 
provisionally winning bids and bids during the current round) by 
twenty-nineteenths (\20/19\).
    79. Caution: Since activity requirements increase in Stage Two, 
bidders must carefully check their activity during the bidding period 
of the first round following a stage transition to ensure that they are 
meeting the increased activity requirement. This is especially critical 
for bidders that have provisionally winning 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 verify their activity status at stage transitions. Bidders may 
check their activity against the required activity level by either 
logging in to the

[[Page 33487]]

FCC Auction System or by accessing the Bidder Summaries on the public 
results page.
iv. Stage Transitions
    80. In the Auction No. 81 Comment Public Notice, the Bureaus 
proposed that the auction would 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 provisionally 
winning bids, is approximately 20 percent or below for three 
consecutive rounds of bidding in Stage One. The Bureaus further 
proposed that the Bureaus would retain the discretion to change stages 
unilaterally by announcement during the auction. The Bureaus received 
no comments on this issue.
    81. The Bureaus adopted the proposal. Thus, the auction will start 
in Stage One and will generally advance to the next stage (i.e., from 
Stage One to Stage Two) when, in each of three consecutive rounds of 
bidding, the provisionally winning bids have been placed on 20 percent 
or less of the construction permits being auctioned (as measured in 
bidding units). In addition, the Bureaus will retain the discretion to 
regulate the pace of the auction by announcement. As proposed in the 
Auction No. 81 Comment Public Notice, 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 construction permits 
(as measured in bidding units) on which there are new bids, the number 
of new bids, and the percentage increase in revenue. When monitoring 
activity for determining when to change stages, the Bureaus may 
consider the percentage of bidding units of the construction permits 
receiving new provisionally winning bids, excluding any FCC-held 
construction permits. The Bureaus believe that these stage transition 
rules, having proven successful in prior auctions, are appropriate for 
use in Auction No. 81.
v. Activity Rule Waivers and Reducing Eligibility
    82. Based upon experience in previous auctions, the Bureaus adopt 
their proposal that each bidder be provided three activity rule 
waivers. Bidders may use an activity rule waiver 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 minimum activity 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 
applied proactively by the bidder (known as a proactive waiver) or 
applied automatically by the FCC Auction System (known as an automatic 
waiver) 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. 
The Bureaus are satisfied that the use of three waivers over the course 
of the auction provides a sufficient number of waivers and flexibility 
to the bidders, while safeguarding the integrity of the auction.
    83. 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 round where a bidder's 
activity level is below the minimum required unless: (1) There are no 
activity rule waivers available; or (2) 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 bidder's 
eligibility will be permanently reduced, possibly eliminating the 
bidder from further bidding in the auction.
    84. 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 
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. 
Once eligibility has been reduced, a bidder will not be permitted to 
regain its lost bidding eligibility.
    85. Finally, 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. However, 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 bidder has submitted a bid in a 
round and will preclude a bidder from placing any bids later in that 
round. Note: Applying a waiver is irreversible; once a proactive waiver 
is submitted that waiver cannot be unsubmitted, even if the round has 
not yet closed.
vi. Auction Stopping Rules
    86. For Auction No. 81, the Bureaus proposed to employ a 
simultaneous stopping rule approach. The Bureaus also sought comment on 
a modified version of the simultaneous stopping rule. The modified 
version of the stopping rule would close the auction for all 
construction permits simultaneously after the first round in which no 
bidder applies a waiver, places a withdrawal, or submits any new bids 
on any construction permit on 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.
    87. The Bureaus further proposed retaining the discretion to keep 
the auction open even if no new bids or proactive waivers are submitted 
and no previous provisionally winning bids are withdrawn in a round. In 
this event, the effect will be the same as if a bidder had applied a 
waiver. Thus, the activity rule will apply as usual, and a bidder with 
insufficient activity will either use an activity rule waiver (if it 
has any left) or lose bidding eligibility.
    88. In addition, the Bureaus proposed that the Bureaus reserve the 
right to 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.
    89. The Bureaus proposed to exercise this special stopping rule 
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. Before exercising this option, 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 
amount of the minimum bid increments for the limited number of 
construction permits where there is still a high level of bidding 
activity.
    90. The Bureaus received no comments concerning the auction 
stopping rules; therefore the Bureaus adopted the above proposals. 
Auction No. 81 will begin under the simultaneous stopping rule 
approach,

[[Page 33488]]

and the Bureaus will retain the discretion to invoke the other versions 
of the stopping rule. These stopping rules are most appropriate for 
Auction No. 81, because experience in prior auctions demonstrates that 
the auction stopping rules balance the interests of administrative 
efficiency and maximum bidder participation.
vii. Auction Delay, Suspension, or Cancellation
    91. Because our approach to notification of delay during an auction 
has proven effective in resolving exigent circumstances in previous 
auctions, the Bureaus adopted their proposed auction cancellation 
rules. 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 or competitive conduct of 
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. The Bureaus emphasized 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.

B. Bidding Procedures

i. Round Structure
    92. 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.
    93. The FCC has discretion to change the bidding schedule in order 
to foster an auction pace that reasonably balances speed with the 
bidders' need to study round results and adjust their bidding 
strategies. The Bureaus may increase or decrease the amount of time for 
the bidding rounds and review periods, or the number of rounds per day, 
depending upon the bidding activity level and other factors.
ii. Reserve Price or Minimum Opening Bid
    94. Pursuant to the Congressional mandate of 47 U.S.C. 309(j)(4)(F) 
and the previous delegation of authority to the Bureaus by the 
Commission, the Bureaus proposed in the Auction No. 81 Comment Public 
Notice to establish minimum opening bids for Auction No. 81, reasoning 
that a minimum opening bid, successfully used in other broadcast 
auctions, is a valuable tool, effectively regulating the pace of the 
auction. Specifically, a minimum opening bid was proposed for each MX 
group listed in Attachment A of the Auctions No. 81 Procedures Public 
Notice. The minimum opening bid amounts were determined by taking into 
account various factors relating to the efficiency of the auction and 
the potential value of the spectrum. Based on experience in using 
minimum opening bids in other auctions, the Bureaus believe that 
minimum opening bids speed the course of the auction and ensure that 
valuable assets are not sold for nominal prices, without unduly 
interfering with the efficient awarding of construction permits.
    95. In the alternative, the Bureaus sought comment on whether, 
consistent with 47 U.S.C. 309(j), the public interest would be served 
by having no minimum opening bid or reserve price.
    96. The Bureaus adopted its proposed minimum opening bids for 
Auction No. 81. The minimum opening bid amounts adopted for Auction No. 
81 are reducible at the discretion of the Bureaus. The Bureaus 
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 Bureaus will not entertain requests to reduce the 
minimum opening bid amount on specific construction permits.
    97. The specific minimum opening bid amounts for each construction 
permit available in Auction No. 81 are specified in Attachment A of the 
Auction No. 81 Procedures Public Notice.
iii. Minimum Acceptable Bid Amounts and Bid Increment Amounts
    98. In the Auction No. 81 Comment Public Notice, the Bureau 
proposed to use a minimum acceptable bid increment 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. The minimum acceptable bid 
amount will be calculated by multiplying the provisionally winning bid 
amount times one plus the minimum acceptable bid percentage--i.e., 
(provisionally winning bid amount) * (1.10). The Bureaus will round the 
result using our standard rounding procedures which are described in 
the Auction No. 81 Procedures Public Notice. The Bureaus further 
proposed to retain the discretion to change the minimum acceptable bid 
amounts and bid increments amounts if it determines that circumstances 
so dictate. The Bureaus received no comment on this issue. The Bureaus 
adopted the proposal and will begin the auction with a minimum 
acceptable bid percentage of 10 percent.
    99. In each round, if the bidder has sufficient eligibility, each 
eligible bidder will be able to place a bid on a particular 
construction permit for which it is designated in Attachment A of the 
Auction No. 81 Procedures Public Notice in any of nine different 
amounts. The FCC Auction System will list the nine acceptable bid 
amounts for each construction permit. Until a bid has been placed on a 
construction permit, the minimum acceptable bid amount for that 
construction permit will be equal to its minimum opening bid amount.
    100. The nine acceptable bid amounts for each construction permit 
consist of the minimum acceptable bid amount and eight other bid 
amounts based on the bid increment percentage. The first additional 
acceptable bid amount, above the minimum acceptable bid amount, equals 
the minimum acceptable bid amount times one plus the bid increment 
percentage, rounded--e.g., if the bid increment percentage is 10 
percent, then the next bid amount will equal (minimum acceptable bid 
amount) * 1.10, rounded, the second additional acceptable bid amount 
equals the minimum acceptable bid amount times one plus two times the 
bid increment percentage, rounded, or (minimum acceptable bid amount) * 
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) * 
1.30, rounded, etc. The Bureaus will begin the auction with a bid 
increment percentage of 10 percent. Note that the bid increment 
percentage need not be the same as the minimum acceptable bid 
percentage.
    101. In the case of a construction permit for which the 
provisionally winning bid amount has been withdrawn, the minimum 
acceptable bid amount will equal the amount of the second highest bid 
received for the

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construction permit, which may be less than, or equal to, in the case 
of tied bids, the amount of the withdrawn bid. The additional bid 
amounts above the minimum acceptable bid amount are calculated using 
the bid increment percentage as described in the previous paragraph.
    102. 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. The Bureaus may also use their discretion to adjust these 
amounts without prior notice if circumstances warrant.
iv. Provisionally Winning Bids
    103. At the end of each bidding round, a provisionally winning bid 
amount will be determined based on the highest bid amount received for 
each construction permit. A high bid from a previous round is referred 
to as a provisionally winning bid. 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. Bidders 
are reminded that the bidding units of provisionally winning bids are 
counted as activity for purposes of the activity rule.
    104. In the Auction No. 81 Comment Public Notice, the Bureaus 
proposed to use a random number generator to select a provisionally 
winning bid in the event of identical high bid amounts being submitted 
on a construction permit in a given round (i.e., tied bids). No 
comments were received on this proposal. Therefore, the Bureaus adopted 
their proposal. A Sybase[reg] SQL pseudo-random number generator based 
on the L'Ecuyer algorithms will be used to assign a random number to 
each bid. The tied bid having the highest random number will become the 
provisionally winning bid. Eligible bidders, including the 
provisionally winning bidder, will be able to submit a higher bid in a 
subsequent round. If no bidder submits a higher bid in subsequent 
rounds, the provisionally winning bid from the previous round will win 
the construction permit, unless that provisionally winning bid was 
withdrawn. If any bids are received on the construction permit in a 
subsequent round, the provisionally winning bid will once again be 
determined based on the highest bid amount received for the 
construction permit.
v. Bidding
    105. During a round, a bidder may submit bids for as many 
construction permits as it wishes (subject to its eligibility), 
withdraw provisionally winning 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 construction permit in the same round, the system 
takes the last bid entered as that bidder's bid for the round. Bidders 
were warned that the bidding units associated with construction permits 
for which the bidder has removed or withdrawn its bid do not count 
towards the bidder's activity at the close of the round.
    106. All bidding will take place remotely either electronically or 
by telephonic bidding through the FCC Auction System. (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, at least five to ten minutes are necessary 
to complete a telephonic bid submission). There will be no on-site 
bidding during Auction No. 81.
    107. A qualified bidder's ability to bid on specific construction 
permits in the first round of the auction is determined by two factors: 
(1) The construction permits designated for that applicant in 
Attachment A of the Auction No. 81 Procedures Public Notice, and (2) 
the upfront payment amount deposited. The bid submission screens will 
allow bidders to submit bids on only those construction permits for 
which the bidder's engineering proposal is specified in the particular 
MX group as listed in the revised Attachment A of the Auction No. 81 
Procedures Public Notice.
    108. In order to access the bidding function of the FCC Auction 
System, bidders must be logged in during the bidding round using the 
password generated by the SecurID card and a personal identification 
number (PIN) created by the bidder. Bidders are strongly encouraged to 
print a round summary for each round after they have completed all of 
their activity for that round.
    109. In each round, if the bidders have sufficient eligibility, 
bidders will be able to place bids on a given construction permit in 
any of nine different amounts. For each construction permit, the FCC 
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 Auction System also includes an upload 
function that allows bidders to upload text files containing bid 
information.
    110. Until a bid has been placed on a construction permit, the 
minimum acceptable bid amount for that construction permit will be 
equal to its minimum opening bid amount. Once there is a provisionally 
winning bid on a construction permit, the FCC Auction System will 
calculate a minimum acceptable bid amount for that construction permit 
for the following round.
    111. Finally, bidders were cautioned to select their bid amounts 
carefully because, as explained in the following section, bidders that 
withdraw a provisionally winning 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
    112. In the Auction No. 81 Comment Public Notice, the Bureaus 
proposed bid removal and bid withdrawal procedures. With respect to bid 
withdrawals, the Bureaus proposed limiting each bidder to withdrawals 
in no more than one round during the course of the auction. The round 
in which withdrawals are used would be at each bidder's discretion. The 
Bureaus received no comments on this issue. These procedures will 
enhance bidder flexibility during the auction, and therefore, the 
Bureaus adopted them for Auction No. 81.
    113. In previous auctions, the Bureaus have detected bidder conduct 
that, arguably, may have constituted strategic bidding through the use 
of bid withdrawals. While the Bureaus continue to recognize the 
important role that bid withdrawals play in an auction, i.e., reducing 
risk associated with efforts to secure various construction permits in 
combination, the Bureaus conclude that, for Auction No. 81, adoption of 
a limit on the use of withdrawals to one round per bidder is 
appropriate. By doing so, the Bureaus believe the limitation strikes a 
reasonable compromise that will allow bidders to use withdrawals. The 
decision on this issue was based upon experience in prior auctions, 
particularly the PCS D, E and F block, 800 MHz SMR, and FM Broadcast 
auctions, and is in no way a reflection of the view of the Bureaus 
regarding the likelihood of any speculation or gaming in this auction.

[[Page 33490]]

    114. The Bureaus therefore will limit the number of rounds in which 
bidders may place withdrawals to one round. The round will be at the 
bidder's discretion and there will be no limit on the number of bids 
that may be withdrawn in the round. Withdrawals during the auction will 
be subject to the bid withdrawal payments specified in 47 CFR 
1.2104(g). Abuse of the Commission's bid withdrawal procedures could 
result in the denial of the ability to bid on a construction permit.
    115. 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 bids function 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 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.
    116. Once a round closes, a bidder may no longer remove a bid. 
However, in one later round, a bidder may withdraw any provisionally 
winning bids from previous rounds using the withdraw bids function in 
the FCC Auction System (assuming that the bidder has not reached its 
withdrawal limit). A provisionally winning bidder that withdraws its 
provisionally winning bid from a previous round during the auction is 
subject to the bid withdrawal payments specified in 47 CFR 1.2104(g). 
Note: Submitting a withdrawal is irreversible; once a withdrawal is 
submitted during a round, that withdrawal cannot be unsubmitted.
    117. If a provisionally winning bid is withdrawn, the minimum 
acceptable bid amount will equal the amount of the second highest bid 
received for the construction permit, which may be less than, or in the 
case of tied bids, equal to, the amount of the withdrawn bid. The 
Bureaus, however, retain the discretion to lower the minimum acceptable 
bid on such construction permits in the next round or in later rounds. 
To set the additional bid amounts, the second highest bid amount also 
will be used in place of the provisionally winning bid in the formula 
used to calculate bid increment amounts. The Commission will serve as a 
place holder provisionally winning bidder on the construction permit 
until a new bid is submitted on that construction permit.
    118. Calculation. Generally, the Commission imposes payments on 
bidders that withdraw high bids during the course of an auction 
pursuant to 47 CFR 1.2104(g) and 1.2109. 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 provisionally winning bid in the same or 
subsequent auction(s). In the case of multiple bid withdrawals on a 
single construction permit, 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). This policy allows bidders 
most efficiently to allocate their resources as well as to evaluate 
their bidding strategies and business plans during an auction while, at 
the same time, maintaining the integrity of the auction process. The 
Bureaus retain the discretion to scrutinize multiple bid withdrawals on 
a single construction permit for evidence of anti-competitive strategic 
behavior and take appropriate action when deemed necessary.
    119. The payment obligations, including interim bid withdrawal 
payments, of a bidder that withdraws a high bid on a construction 
permit during the course of an auction is specified by 47 CFR 
1.2104(g)(1). As amended, 47 CFR 1.2104(g)(1) provides that in 
instances in which bids have been withdrawn on a construction permit 
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 construction permit. Assessing an interim bid withdrawal 
payment ensures that the Commission receives a minimal withdrawal 
payment pending assessment of any final withdrawal payment. Section 
1.2104(g) provides specific examples showing application of the bid 
withdrawal payment rule.
vii. Round Results
    120. Bids placed during a round will not be made public until the 
conclusion of that bidding period. After a round closes, the Bureaus 
will compile reports of all bids placed, bids withdrawn, current 
provisionally winning bids, new minimum acceptable bid amounts, and 
bidder eligibility status (bidding eligibility and activity rule 
waivers), and post the reports for public access. Reports reflecting 
bidders' identities for Auction No. 81 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.
vii. Auction Announcements
    121. 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 in the FCC Auction 
System.

V. Post-Auction Procedures

A. Down Payments and Withdrawn Bid Payments

    122. 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.
    123. 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. 81 to 20 percent of the net amount 
of its winning bids (gross bids less any applicable New Entrant bidding 
credits). In addition, by the same deadline, all bidders must pay any 
bid withdrawal payments due under 47 CFR 1.2104(g). (Upfront payments 
are applied first to satisfy any withdrawn bid liability, before being 
applied toward down payments.)

B. Final Payments

    124. If a winning bidder's long-form application is uncontested, 
after the termination of the pleading cycle for petitions to deny, the 
Commission will issue, as specified by 47 CFR 73.5006, a public notice 
announcing that it is prepared to grant the winning bidder's long-form 
application. If a petition to deny is filed within the pleading cycle 
for petitions to deny, and if the petition to deny is dismissed or 
denied, the Commission will issue a public notice announcing that it is 
prepared to grant the winning bidder's long-form application promptly 
after the Media Bureau disposes of any such petition to deny and is 
otherwise satisfied that the applicant is qualified to hold the 
specified construction permit. Within ten (10) business days after the 
date of

[[Page 33491]]

the release of the public notice announcing that the Commission is 
prepared to grant a winning bidder's long-form application, each 
winning bidder will be required to submit the balance of the net amount 
of its winning bids (gross bids less any applicable New Entrant bidding 
credits). Broadcast construction permits will be granted only after the 
full and timely payment of winning bids and any applicable late fees, 
in accordance with 47 CFR 1.2109(a).

C. Long-Form Application

    125. Within 30 business days after release of the auction closing 
notice, winning bidders must electronically submit a properly completed 
FCC Form 346 or FCC Form 301-CA, as appropriate, for each construction 
permit won through Auction No. 81. Winning bidders claiming new entrant 
status must include an exhibit demonstrating their eligibility for the 
bidding credit, as required by 47 CFR 1.2109(a), 73.3573(f)(5)(ii), and 
73.5006(d). Further filing instructions will be provided to auction 
winners at the close of the auction.

D. Default and Disqualification

    126. 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 
construction permit 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 has the discretion to declare the 
applicant and its principals ineligible to bid in future auctions, and 
may take any other action that it deems necessary, including 
institution of proceedings to revoke any existing licenses or 
construction permits held by the applicant.

E. Refund of Remaining Upfront Payment Balance

    127. All applicants that submit upfront payments but are not 
winning bidders for a construction permit in Auction No. 81 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.
    128. 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 provisionally winning bid during the auction must submit a 
written refund request. If the bidder has completed the specified 
refund instructions electronically, then only a written request for the 
refund is necessary. If not, the request must also include wire 
transfer instructions and FCC Registration Number (FRN). Send refund 
requests to: Federal Communications Commission, Financial Operations 
Center, Auctions Accounting Group, Gail Glasser, 445 12th Street, SW., 
Room 1-C864, Washington, DC 20554.
    129. Bidders are encouraged to file their refund information 
electronically using the Refund Information icon in the FCC Form 175, 
but bidders can also send their information by facsimile to the 
Auctions Accounting Group at (202) 418-2843. Once the information has 
been approved, a refund will be sent to the payer of record, as 
identified on the FCC Form 159.

Federal Communication Commission.
Gary D. Michaels,
Deputy Chief, Auction Spectrum and Access Division, WTB.
[FR Doc. 05-11379 Filed 6-7-05; 8:45 am]
BILLING CODE 6712-01-P