[Federal Register Volume 70, Number 178 (Thursday, September 15, 2005)]
[Notices]
[Pages 54541-54555]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-18478]


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FEDERAL COMMUNICATIONS COMMISSION

[Report No. AUC-63-C (Auction No. 63); DA 05-2188]


Auction of Multichannel Video Distribution and Data Service 
Licenses Schedule for December 7, 2005--Notice and Filing Requirements, 
Minimum Opening Bids, Upfront Payments and Other Procedures for Auction 
No. 63

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This document announces the procedures and minimum opening 
bids for the upcoming auction of licenses in the Multichannel Video 
Distribution and Data Service (MVDDS). This document is intended to 
familiarize prospective bidders with the procedures and minimum opening 
bids for this auction.

DATES: Auction No. 63 is scheduled to begin on December 7, 2005.

FOR FURTHER INFORMATION CONTACT: For legal questions: Brian Carter at 
(202) 418-0660. For general auction questions: Debbie Smith, Roy 
Knowles or Barbara Sibert at (717) 338-2888. For service rules 
questions, contact the Broadband Division, Wireless Telecommunications 
Bureau as follows: Mindy Littell or Michael Pollack at (202) 418-2487.

SUPPLEMENTARY INFORMATION: This is a summary of the Auction No. 63 
Procedures Public Notice released on August 9, 2005. The complete text 
of the Auction No. 63 Procedures Public Notice, including attachments 
and

[[Page 54542]]

related Commission documents is available for public inspection and 
copying from 8 a.m. to 4:30 p.m. Monday through Thursday or from 8 a.m. 
to 11:30 a.m. on Friday at the FCC Reference Information Center, 
Portals II, 445 12th Street, SW., Room CY-A257, Washington, DC 20554. 
The Auction No. 63 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. When ordering documents from BCPI, please 
provide the appropriate FCC document number (for example, FCC 00-313 
for the C/F Block Sixth Report and Order). The Auction No. 63 
Procedures Public Notice and related documents are also available on 
the Internet at the Commission's Web site: http://wireless.fcc.gov/auctions/63/.

I. General Information

A. Introduction

    1. The Wireless Telecommunications Bureau (Bureau) announces the 
procedures and minimum opening bid amounts for the upcoming auction of 
Multichannel Video Distribution and Data Service (MVDDS) licenses 
scheduled for December 7, 2005 (Auction No. 63). On June 9, 2005, in 
accordance with Section 309(j)(3) of the Communications Act of 1934, as 
amended, the Bureau released a public notice seeking comment on reserve 
prices or minimum opening bid amounts and the procedures to be used in 
Auction No. 63. The Bureau received no comments in response to the 
Auction No. 63 Comment Public Notice, 70 FR 36169, June 22, 2005.
i. Background of Proceeding
    2. On December 8, 2000, the Commission released the First Report 
and Order and Further Notice of Proposed Rule Making in ET Docket No. 
98-206, 66 FR 7607, January, 24, 2001, which authorized MVDDS as a new 
service under the existing primary status fixed service allocation in 
the 12.2-12.7 GHz band. On May 23, 2002, the Commission released the 
Second Report and Order, 67 FR 43031, June 26, 2002, which adopted 
technical and service rules, including competitive bidding rules, for 
MVDDS. On April 15, 2003, the Commission released the Second Further 
Notice of Proposed Rule Making, 68 FR 19486, April 21, 2003, which 
sought further comment on the appropriate service area definition for 
MVDDS and on whether the build out requirement for this service should 
be modified.
    3. On July 7, 2003, the Commission released the Third Report and 
Order, 68 FR 42610, July 18, 2003, in which it decided to license MVDDS 
using service areas based on the Designated Market Areas (DMAs) 
delineated by Nielsen Media Research, Inc. (Nielsen Media), in its 
publication entitled U.S. Television Household Estimates dated 
September 2002, rather than Component Economic Areas (CEAs). In the 
Third Report and Order the Commission also adopted a five-year build 
out requirement.
    4. MVDDS licensees may provide any digital fixed one-way non-
broadcast service including direct-to-home/office wireless service. 
Mobile and aeronautical services are not authorized. Two-way services 
may be provided by using other spectrum or media for the return or 
upstream path. MVDDS providers will share the 12.2-12.7 GHz band on a 
co-primary basis with non-geostationary satellite orbit (NGSO) fixed-
satellite services (FSS) and on a non-harmful interference basis with 
incumbent Direct Broadcast Satellite (DBS) providers. The technical 
criteria for sharing established in the Second Report and Order are 
designed to protect NGSO FSS and DBS operations from harmful 
interference.
ii. Licenses To Be Auctioned
    5. Auction No. 63 will offer 22 MVDDS licenses in the 12 GHz band. 
These licenses remained unsold in Auction No. 53, which closed on 
January 27, 2004. Each license will authorize the use of one block of 
unpaired spectrum in the 12.2-12.7 GHz band. For Auction No. 63, 
licenses are not available in every market. A complete list of the 
licenses available in Auction No. 63 and their descriptions is included 
in Attachment A of the Auction No. 63 Procedures Public Notice.
    6. The following table contains the characteristics of the licenses 
that will be offered in Auction No. 63:

----------------------------------------------------------------------------------------------------------------
                                                                            Geographic area        Number of
      Frequency band  (GHz)         Total bandwidth         Pairing              type              licenses
----------------------------------------------------------------------------------------------------------------
12.2-12.7.......................  500 MHz...........  Unpaired..........  MVDDS service                      22
                                                                           areas.
----------------------------------------------------------------------------------------------------------------

B. Rules and Disclaimers

i. Relevant Authority
    7. Prospective applicants must familiarize themselves thoroughly 
with the Commission's general competitive bidding rules, including 
recent amendments and clarifications; rules relating to MVDDS contained 
in Title 47, part 101, of the Code of Federal Regulations; and those 
relating to application and auction procedures, contained in Title 47, 
part 1, of the Code of Federal Regulations. Prospective applicants must 
also be thoroughly familiar with the procedures, terms and conditions 
(collectively, terms) contained in this public notice; the Commission's 
decisions in proceedings regarding competitive bidding procedures, 
application requirements, and obligations of Commission licensees.
    8. The terms contained in the Commission's rules, relevant orders, 
and public notices are not negotiable. The Commission may amend or 
supplement the information contained in our public notices at any time, 
and will issue public notices to convey any new or supplemental 
information to applicants. It is the responsibility of all applicants 
to remain current with all Commission rules and with all public notices 
pertaining to this auction.
ii. Prohibition of Collusion
    9. To ensure the competitiveness of the auction process, the 
Commission's part 1 rules prohibits applicants for any of the same 
geographic license areas from communicating with each other during the 
auction about bids, bidding strategies, or settlements unless such 
applicants have identified each other on their FCC Form 175 
applications as parties with whom they have entered into agreements 
under Sec.  1.2105(a)(2)(viii). Thus, applicants for any of the same 
geographic license areas must affirmatively avoid all discussions with 
each other that affect, or in their reasonable assessment have the 
potential to affect, bids or bidding strategy. This prohibition begins 
at the short-form application filing deadline and ends at the down 
payment deadline after the auction. This prohibition applies to all 
applicants regardless of whether such applicants become

[[Page 54543]]

qualified bidders or actually bid. For purposes of this prohibition, 
Sec.  1.2105(c)(7)(i) defines applicant as including all controlling 
interests in the entity submitting a short-form application to 
participate in the auction, as well as all holders of partnership and 
other ownership interests and any stock interest amounting to 10 
percent or more of the entity, or outstanding stock, or outstanding 
voting stock of the entity submitting a short-form application, and all 
officers and directors of that entity.
    10. Applicants competing for licenses in any of the same geographic 
license areas must not communicate indirectly about bids or bidding 
strategy and are encouraged not to use the same individual as an 
authorized bidder. A violation of the anti-collusion rule could occur 
if an individual acts as the authorized bidder for two or more 
competing applicants, and conveys information concerning the substance 
of bids or bidding strategies between the applicants he or she is 
authorized to represent in the auction. A violation could similarly 
occur if the authorized bidders are different individuals employed by 
the same organization (e.g., law firm or consulting firm). In such a 
case, at a minimum, applicants should certify on their applications 
that precautionary steps have been taken to prevent communication 
between authorized bidders and that applicants and their bidding agents 
will comply with the anti-collusion rule. However, the Bureau cautions 
that merely filing a certifying statement as part of an application 
will not outweigh specific evidence that collusive behavior has 
occurred, nor will it preclude the initiation of an investigation when 
warranted.
    11. The Commission's anti-collusion rule allows applicants to form 
certain agreements during the auction, provided the applicants have not 
applied for licenses covering any of the same geographic areas. In 
addition, applicants that apply to bid for all markets will be 
precluded from communicating with all other applicants until after the 
down payment deadline. However, all applicants may enter into bidding 
agreements before filing their FCC Form 175, as long as they disclose 
the existence of the agreement(s) in their FCC Form 175. If parties 
agree in principle on all material terms prior to the short-form filing 
deadline, those parties must be identified on the short-form 
application pursuant to Sec.  1.2105(c), even if the agreement has not 
been reduced to writing. If the parties have not agreed in principle by 
the filing deadline, an applicant would not include the names of those 
parties on its application, and may not continue negotiations. By 
signing their FCC Form 175 short-form applications, applicants are 
certifying their compliance with Sec.  1.2105(c).
    12. Section 1.65 of the Commission's rules requires an applicant to 
maintain the accuracy and completeness of information furnished in its 
pending application and to notify the Commission within 30 days of any 
substantial change that may be of decisional significance to that 
application. Thus, Sec.  1.65 requires auction applicants that engage 
in communications of bids or bidding strategies that result in a 
bidding agreement, arrangement or understanding not already identified 
on their short-form applications to promptly disclose any such 
agreement, arrangement or understanding to the Commission by amending 
their pending applications. In addition, Sec.  1.2105(c)(6) requires 
all auction applicants to report prohibited discussions or disclosures 
regarding bids or bidding strategy to the Commission in writing 
immediately but in no case later than five business days after the 
communication occurs, even if the communication does not result in an 
agreement or understanding regarding bids or bidding strategy that must 
be reported under Section 1.65.
    13. Applicants that are winning bidders will be required to 
disclose in their long-form applications the specific terms, 
conditions, and parties involved in all bidding consortia, joint 
ventures, partnerships, and other arrangements entered into relating to 
the competitive bidding process. Any applicant found to have violated 
the anti-collusion rule may be subject to sanctions, including 
forfeiture of its upfront payment, down payment or full bid amount, and 
may be prohibited from participating in future auctions. In addition, 
applicants are reminded that they are subject to the antitrust laws, 
which are designed to prevent anticompetitive behavior in the 
marketplace. If an applicant is found to have violated the antitrust 
laws in connection with its participation in the competitive bidding 
process, it may be subject to forfeiture of its upfront payment, down 
payment, or full bid amount and may be prohibited from participating in 
future auctions.
    14. A summary listing of documents issued by the Commission and the 
Bureau addressing the application of the anti-collusion rule may be 
found in Attachment E of the Auction No. 63 Procedures Public Notice.
iii. Interference Protection
    15. Among other licensing and technical rules, MVDDS licensees must 
comply with the interference protection and coordination requirements 
set forth in Sec. Sec.  101.103, 101.105, 101.109, 101.129, 101.1421, 
and 101.1440 of the Commission's rules. Generally, Sec. Sec.  101.103, 
101.105, 101.109, 101.129, 101.1421, and 101.1440 establish standards 
for protection of co-primary NGSO FSS earth stations, incumbent and 
adjacent area licensees and co-primary DBS earth stations. MVDDS shall 
be licensed on a non-harmful interference co-primary basis to existing 
DBS operations and on a co-primary basis with NGSO FSS stations in this 
band. MVDDS licensees must also protect and/or develop sharing 
agreements with neighboring licensees.
a. Incumbent Licensees
    16. Terrestrial private operational fixed point-to-point stations 
in the 12.2-12.7 GHz band which were licensed prior to MVDDS are 
incumbent point-to-point stations. However, only those stations 
licensed as public safety must be protected from harmful interference 
caused by later MVDDS entrants in the 12.2-12.7 GHz band. MVDDS 
operators have the responsibility of resolving any harmful interference 
problems that their operations may cause to these public safety 
incumbent point-to-point operations in the 12.2-12.7 GHz band.
b. Canadian and Mexican Border Regions
    17. MVDDS systems in the United States within 56 km (35 miles) of 
the Canadian and Mexican border will be granted conditional licenses, 
until final international agreements are approved. MVDDS systems may 
not cause harmful interference to stations in Canada or Mexico. No 
stations are allowed within 5 miles of the borders.
c. Quiet Zone
    18. MVDDS stations must protect the radio quiet zones set forth in 
the Commission's rules. Stations are cautioned that they must receive 
the appropriate approvals directly from the relevant quiet zone entity 
prior to operating within the areas described in the Commission's 
rules.
iv. Due Diligence
    19. Potential applicants are reminded that there are a number of 
incumbent terrestrial private operational fixed point-to-point 
licensees in the 12.2-12.7 GHz band which were licensed prior to MVDDS 
and are not entitled to protection from harmful interference caused by 
later MVDDS entrants in the 12.2-12.7 GHz band, except for public 
safety stations, which must be protected. MVDDS has the

[[Page 54544]]

responsibility of resolving any harmful interference problems that 
their operations may cause to these public safety incumbent point-to-
point operations in the 12.2-12.7 GHz band. To aid potential bidders, a 
list of public safety incumbents in this band is attached as Appendix I 
to the Second Report and Order, ET Docket No. 98-206, released May 23, 
2002. These limitations may restrict the ability of such MVDDS 
geographic area licensees to use certain portions of the 
electromagnetic spectrum or provide service to certain areas in their 
geographic license areas. The Bureau therefore cautions potential 
applicants in formulating their bidding strategies to investigate and 
consider the extent to which MVDDS frequencies are occupied by 
incumbents.
    20. Applicants are solely responsible for identifying associated 
risks and for investigating and evaluating the degree to which such 
matters may affect their ability to bid on, otherwise acquire, or make 
use of licenses available in Auction No. 63.
    21. Applicants should also be aware that certain pending and future 
applications (including those for modification), petitions for 
rulemaking, requests for special temporary authority, waiver requests, 
petitions to deny, petitions for reconsideration, informal oppositions, 
and applications for review before the Commission may relate to 
particular applicants or incumbent licensees or the licenses available 
in Auction No. 63. In addition, pending and future judicial proceedings 
may relate to particular applicants or incumbent licensees, or the 
licenses available in Auction No. 63. Prospective bidders are 
responsible for assessing the likelihood of the various possible 
outcomes, and considering their potential impact on spectrum licenses 
available in this auction.
    22. Applicants should perform due diligence to identify and 
consider all proceedings that may affect the spectrum licenses being 
auctioned. The Bureau notes that resolution of such matters could have 
an impact on the availability of spectrum for Auction No. 63. In 
addition, although the Commission may continue to act on various 
pending applications, informal objections, petitions, and other 
requests for Commission relief, some of these matters may not be 
resolved by the time of the auction.
    23. Applicants may obtain information about incumbent licenses that 
may have an effect on availability of licenses in Auction No. 63 
through the Bureau's licensing databases on the World Wide Web at 
http://wireless.fcc.gov/uls. Applicants should direct questions 
regarding the ULS search capabilities to the FCC ULS Technical Support 
hotline at (877) 480-3201, option two. The hotline is available to 
assist with questions Monday through Friday, from 8 a.m. to 7 p.m. et.
    24. The Commission makes no representations or guarantees regarding 
the accuracy or completeness of information in its databases or any 
third party databases, including, for example, court docketing systems. 
To the extent the Commission's databases may not include all 
information deemed necessary or desirable by an applicant, applicants 
may obtain or verify such information from independent sources or 
assume the risk of any incompleteness or inaccuracy in said databases. 
Furthermore, the Commission makes no representations or guarantees 
regarding the accuracy or completeness of information that has been 
provided by incumbent licensees and incorporated into the database.
    25. 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.
v. Bidder Alerts
    26. The FCC makes no representations or warranties about the use of 
this spectrum for particular services. Applicants should be aware that 
an FCC auction represents an opportunity to become an FCC licensee in 
this service, subject to certain conditions and regulations. An FCC 
auction does not constitute an endorsement by the FCC of any particular 
services, technologies or products, nor does an FCC license constitute 
a guarantee of business success. Applicants and interested parties 
should perform their own due diligence before proceeding, as they would 
with any new business venture.
    27. As is the case with many business investment opportunities, 
some unscrupulous entrepreneurs may attempt to use Auction No. 63 to 
deceive and defraud unsuspecting investors. Information about deceptive 
telemarketing investment schemes is available from the FTC at (202) 
326-2222 and from the SEC at (202) 942-7040. Complaints about specific 
deceptive telemarketing investment schemes should be directed to the 
FTC, the SEC, or the National Fraud Information Center at (800) 876-
7060. Consumers who have concerns about specific proposals regarding 
Auction No. 63 may also call the FCC Consumer Center at (888) CALL-FCC 
((888) 225-5322).
vi. National Environmental Policy Act Requirements
    28. Licensees must comply with the Commission's rules regarding the 
National Environmental Policy Act (NEPA). The construction of a 
wireless antenna facility is a Federal action and the licensee must 
comply with the Commission's NEPA rules for each such facility. The 
Commission's NEPA rules require, among other things, that the licensee 
consult with expert agencies having NEPA responsibilities, including 
the U.S. Fish and Wildlife Service, the State Historic Preservation 
Office, the Army Corps of Engineers and the Federal Emergency 
Management Agency (through the local authority with jurisdiction over 
floodplains).

C. Auction Specifics

i. Auction Date
    29. Bidding in Auction No. 63 will begin on Wednesday, December 7, 
2005, as announced in the Auction No. 63 Comment Public Notice. The 
initial schedule for bidding will be announced by public notice at 
least one week before the start of the auction. Unless otherwise 
announced, bidding on all licenses will be conducted on each business 
day until bidding has stopped on all licenses.
ii. Auction Title
    30. Auction No. 63-MVDDS.
iii. Bidding Methodology
    31. The bidding methodology for Auction No. 63 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: September 28, 2005.
Short-Form Application (FCC Form 175) Filing Window Opens: September 
28, 2005; 12 p.m. e.t.
Short-Form Application (FCC Form 175) Filing Window Deadline: October 
7, 2005; 6 p.m. e.t.
Upfront Payments (via wire transfer): November 7, 2005; 6 p.m. e.t.
Mock Auction: December 5, 2005.
Auction Begins: December 7, 2005.
    32. Requirements for Participation.
    Those wishing to participate in the auction must:

[[Page 54545]]

     Submit a short-form application (FCC Form 175) 
electronically prior to 6 p.m. eastern time (e.t.), October 7, 2005, 
following the electronic filing procedures set forth in Attachment C to 
this public notice.
     Submit a sufficient upfront payment and an FCC Remittance 
Advice Form (FCC Form 159) by 6 p.m. e.t., November 7, 2005.
     Comply with all provisions outlined in this public notice.

                       General Contact Information
------------------------------------------------------------------------
 
------------------------------------------------------------------------
General Auction Information: General     FCC Auctions Hotline, (888) 225-
 Auction Questions, Seminar               5322, option two; or (717) 338-
 Registration.                            2888. Hours of service: 8 a.m.
                                          - 5:30 p.m. ET, Monday through
                                          Friday.
Auction Legal Information: Auction       Auctions and Spectrum Access
 Rules, Policies, Regulations.            Division, (202) 418-0660.
Licensing Information: Rules, Policies,  Broadband Division, (202) 418-
 Regulations, Licensing Issues, Due       2487.
 Diligence, Incumbency Issues.
Technical Support: Electronic Filing,    FCC Auctions Technical Support,
 FCC Auction System.                      (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,     FCC Auctions Accounting Branch,
 Refunds.                                 (202) 418-0578, (202) 418-2843
                                          (Fax).
Auction Bidder Line....................  Will be furnished only to
                                          qualified bidders.
FCC Copy Contractor: Additional Copies   Best Copy and Printing, Inc.,
 of Commission Documents.                 445 12th Street, SW., Room CY-
                                          B402, Washington, DC 20554,
                                          (800) 378-3160, http://
                                          www.bcpiweb.com.
Press Information......................  Chelsea Fallon (202) 418-7991.
FCC Forms..............................  (800) 418-3676 (outside
                                          Washington, DC), (202) 418-
                                          3676 (in the Washington area),
                                          http://www.fcc.gov/formpage.html.
FCC Internet Sites.....................  http://www.fcc.gov, http://wireless.fcc.gov/auctions,
                                          http://wireless.fcc.gov/uls.
------------------------------------------------------------------------

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

    33. A party's application to participate in an FCC auction, 
referred to as a short-form application or FCC Form 175, provides 
information used in determining whether the applicant is legally, 
technically, and financially qualified to participate in Commission 
auctions for licenses or permits.
    34. The short-form application is the first part of the 
Commission's two-phased auction application process which contemplates 
that potential licensees file streamlined, short-form applications in 
which applicants certify under penalty of perjury as to their 
qualifications. Eligibility to participate in bidding is based on the 
applicants' short-form applications and certifications. In the second 
phase, winning bidders file a more comprehensive long-form application.
    35. All applicants must certify on their FCC Form 175 applications 
under penalty of perjury that they are legally, technically, 
financially and otherwise qualified to hold a license. Applicants 
should note that submission of an FCC Form 175 application constitutes 
a representation by the certifying official that he or she is an 
authorized representative of the applicant, has read the form's 
instructions and certifications, and that the contents of the 
application, its certifications and any attachments are true and 
correct. Submission of a false certification to the Commission may 
result in penalties, including monetary forfeitures, license 
forfeitures, ineligibility to participate in future auctions, and/or 
criminal prosecution.
    36. Applicants bear full responsibility for submission of timely 
and complete FCC Form 175 applications. Applicants to participate in 
Auction No. 63 must file FCC Form 175 electronically prior to 6 p.m. ET 
on October 7, 2005, following the procedures set forth in Attachment C 
of the Auction No. 63 Procedures Public Notice. Applicants should read 
the instructions set forth in Attachment C of the Auction No. 63 
Procedures Public Notice carefully and should consult the Commission's 
rules to ensure that, in addition to the materials described below, all 
the information that is required under the Commission's rules is 
included with their FCC Form 175 applications.
    37. An entity may not submit more than one short-form application 
in a single auction. In the event that a party submits multiple FCC 
Forms 175, such additional applications will be dismissed.
    38. For Auction No. 63, if an applicant claims eligibility for a 
bidding credit, the information provided in its FCC Form 175 will be 
used in determining whether the applicant is eligible for the claimed 
bidding credit. Applicants should further note that they must fulfill 
the certification requirements of Sec.  101.1412(g)(2) of the 
Commission's rules relating to complying with the eligibility 
restrictions for cable operators. Specifically, applicants must certify 
as an attachment to their short-form application that they, and all 
parties to the application, will come into compliance with Sec.  
101.1412(a) of the Commission's rules.

A. Preferences for Small Businesses and Others

i. Size Standards for Bidding Credits
    39. In the Second Report and Order, the Commission determined that 
three levels of bidding credits are appropriate for MVDDS. A bidding 
credit represents the amount by which a bidder's winning bids are 
discounted. The size of the bidding credit depends on the average of 
the aggregated annual gross revenues for each of the preceding three 
years of the bidder, its affiliates, its controlling interests, and the 
affiliates of its controlling interests.
    40. For Auction No. 63 bidding credits will be available to very 
small businesses, small businesses, and entrepreneurs, or consortia 
thereof, as follows:
     A bidder with attributed average annual gross revenues 
that do not exceed $3 million for the preceding three years (very small 
business) will receive a 35 percent discount on its winning bids.
     A bidder with attributed average annual gross revenues 
that exceed $3 million and do not exceed $15 million for the preceding 
three years (small business) will receive a 25 percent discount on its 
winning bids.
     A bidder with attributed average annual gross revenues 
that exceed 15 million and do not exceed $40 million for the preceding 
three years (entrepreneur) will receive a 15 percent discount on its 
winning bids.
    41. Bidding credits are not cumulative; a qualifying applicant 
receives the 35 percent, 25 percent, or

[[Page 54546]]

15 percent bidding credit on its winning bid, but only one credit per 
license.
    42. Applicants should note that they will be required to provide 
information regarding revenues attributable to the applicant and 
related parties on their FCC Form 175 short-form applications to 
establish that they satisfy the eligibility requirements to qualify as 
a very small business, small business, or an entrepreneur (or consortia 
of a very small business, small business or entrepreneur) for this 
auction.
ii. Tribal Lands Bidding Credit
    43. To encourage the growth of wireless services in federally 
recognized tribal lands the Commission has implemented a tribal land 
bidding credit.
iii. Installment Payments
    44. Installment payment plans will not be available in Auction No. 
63.

B. License Selection

    45. In Auction No. 63, applicants must select the licenses on which 
they want to bid from the Eligible Licenses list. The applicant may 
select all the licenses in the list (by using the SELECT ALL option) or 
select and add individual licenses from the list. Be advised that there 
is no opportunity to change license selection after the short-form 
filing deadline. It is critically important that you confirm your 
license selection because the FCC Auction System will not accept bids 
on licenses that an applicant has not selected on its FCC Form 175.

C. Consortia and Joint Bidding Arrangements

    46. Applicants will be required to indicate on their applications 
whether they have entered into any explicit or implicit agreements, 
arrangements or understandings of any kind with any parties, other than 
those identified, regarding the amount of their bids, bidding 
strategies, or the particular licenses on which they will or will not 
bid. Applicants will also be required to identify on their short-form 
applications any parties with whom they have entered into any 
consortium arrangements, joint ventures, partnerships or other 
agreements or understandings that relate in any way to the licenses 
being auctioned, including any agreements relating to post-auction 
market structure. If an applicant has had discussions, but has not 
reached a joint bidding agreement by the short-form deadline, it would 
not include the names of parties to the discussions on its applications 
and may not continue such discussions with applicants for any of the 
same geographic license areas after the deadline.
    47. A party holding a non-controlling, attributable interest in one 
applicant will be permitted to acquire an ownership interest in, form a 
consortium with, or enter into a joint bidding arrangement with other 
applicants for licenses in the same geographic license area provided 
that (i) the attributable interest holder certifies that it has not and 
will not communicate with any party concerning the bids or bidding 
strategies of more than one of the applicants in which it holds an 
attributable interest, or with which it has formed a consortium or 
entered into a joint bidding arrangement; and (ii) the arrangements do 
not result in a change in control of any of the applicants. While the 
anti-collusion rules do not prohibit non-auction related business 
negotiations among auction applicants, applicants are reminded that 
certain discussions or exchanges could touch upon impermissible subject 
matters because they may convey pricing information and bidding 
strategies.

D. Ownership Disclosure Requirements

    48. All applicants must comply with the uniform part 1 ownership 
disclosure standards and provide information required by Sec.  Sec.  
1.2105 and 1.2112 of the Commission's rules. Specifically, in 
completing FCC Form 175, applicants will be required to fully disclose 
information on the real party or parties-in-interest and ownership 
structure of the bidding entity. The ownership disclosure standards for 
the short form are set forth in Sec.  1.2112 of the Commission's rules. 
To simplify filling out Form 175, an applicant's most current ownership 
information on file with the Commission, if in an electronic format 
compatible with Form 175, such as information submitted in an on-line 
Form 602, will automatically be entered into Form 175. Applicants are 
responsible for information submitted in Form 175 being complete and 
accurate. Accordingly, applicants should carefully review any 
information automatically entered to confirm that it is complete and 
accurate as of the deadline for filing Form 175. Applicants can update 
any information that needs to be changed directly in the Form 175.
    49. To simplify filling out FCC Form 175, an applicant's most 
current ownership information on file with the Commission, if in an 
electronic format compatible with FCC Form 175, such as information 
submitted in an on-line FCC Form 602 in connection with wireless 
services, will automatically be entered into FCC Form 175.

E. Bidding Credit Revenue Disclosures

    50. Entities applying to bid as very small businesses, small 
businesses, or entrepreneurs (or consortia of very small businesses, 
small businesses, or entrepreneurs) will be required to disclose on 
their FCC Form 175 short-form applications the gross revenues for the 
preceding three years of each of the following: (1) the applicant, (2) 
its affiliates, (3) its controlling interests, and (4) the affiliates 
of its controlling interests. Certification that the average annual 
gross revenues for the preceding three years do not exceed the 
applicable limit is not sufficient. In order to comply with disclosure 
requirements for bidding credit eligibility, an applicant must provide 
separately for itself, its affiliates, its controlling interests, and 
the affiliates of its controlling interests, the gross revenues for 
each of the preceding three years. If the applicant is applying as a 
consortium of very small businesses, small businesses, or 
entrepreneurs, this information must be provided for each consortium 
member.
    51. Controlling interest standard. The Commission uses a 
controlling interest standard for attributing to auction applicants the 
gross revenues of their investors and affiliates in determining small 
business eligibility for future auctions. The Commission has modified 
its rules governing the attribution of gross revenues for purposes of 
determining small business eligibility. These changes included 
exempting the gross revenues of the affiliates of a rural telephone 
cooperative's officers and directors from attribution to the applicant 
if certain specified conditions are met. The Commission also clarified 
that in calculating an applicant's gross revenues under the controlling 
interest standard, the personal net worth, including personal income, 
of its officers and directors will not be attributed to the applicant.
    52. Control. The term control includes both de facto and de jure 
control of the applicant. Typically, ownership of at least 50.1 percent 
of an entity's voting stock evidences de jure control. De facto control 
is determined on a case-by-case basis. The following are some common 
indicia of de facto control:
     The entity constitutes or appoints more than 50 percent of 
the board of directors or management committee
     The entity has authority to appoint, promote, demote, and 
fire senior executives that control the day-to-day activities of the 
licensee; or
     The entity plays an integral role in management decisions.

[[Page 54547]]

    53. Attribution for very small business, small business, and 
entrepreneur eligibility. In determining which entities qualify as very 
small businesses, small businesses, or entrepreneurs, the Commission 
will consider the gross revenues of the applicant, its affiliates, its 
controlling interests, and the affiliates of its controlling interests. 
The Commission does not impose specific equity requirements on 
controlling interest holders. Once the principals or entities with a 
controlling interest are determined, only the revenues of those 
principals or entities, the affiliates of those principals or entities, 
and the applicant and its affiliates will be counted in determining 
small business eligibility.
    54. A consortium of very small businesses, small businesses, or 
entrepreneurs is a conglomerate organization formed as a joint venture 
between or among mutually independent business firms, each of which 
individually must satisfy one of the definitions of very small 
business, small business, or entrepreneur in Sec.  Sec.  1.2110(f), 
101.1429. Thus, each consortium member must disclose its gross revenues 
along with those of its affiliates, its controlling interests, and the 
affiliates of its controlling interests. The Bureau notes that although 
the gross revenues of the consortium members will not be aggregated for 
purposes of determining eligibility for very small business, small 
business, or entrepreneur, this information must be provided to ensure 
that each individual consortium member qualifies for any bidding credit 
awarded to the consortium.

F. Provisions Regarding Former and Current Defaulters

    55. Each applicant must state under penalty of perjury on its FCC 
Form 175 application whether or not the applicant, its affiliates, its 
controlling interests, and the affiliates of its controlling interests, 
as defined by Sec.  1.2110, have ever been in default on any Commission 
licenses or have ever been delinquent on any non-tax debt owed to any 
Federal agency. In addition, each applicant must certify under penalty 
of perjury on its FCC Form 175 application that the applicant, its 
affiliates, its controlling interests, and the affiliates of its 
controlling interests, as defined by Sec.  1.2110, are not in default 
on any payment for Commission licenses (including down payments) and 
that they are not delinquent on any non-tax debt owed to any Federal 
agency. Prospective applicants 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.
    56. Former defaulters--i.e., applicants, including their 
attributable interest holders, that in the past have defaulted on any 
Commission licenses or been delinquent on any non-tax debt owed to any 
Federal agency, but that have since remedied all such defaults and 
cured all of their outstanding non-tax delinquencies--are eligible to 
bid in Auction No. 63, provided that they are otherwise qualified. 
However, former defaulters are required to pay upfront payments that 
are fifty percent more than the normal upfront payment amounts.
    57. 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. 63.
    58. Applicants are encouraged to review the 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 applicant's ability to comply with the default and 
delinquency disclosure requirements.

G. Eligibility Restrictions for Cable Operators

    59. Applicants should note that Sec.  101.1412 of the Commission's 
rules provides certain eligibility restrictions for cable operators. 
Specifically, no cable operator, nor any entity owning an attributable 
interest in a cable operator, shall have an attributable interest in an 
MVDDS license if such cable operator's service area significantly 
overlaps the MVDDS license area. Applicants must certify as an 
attachment to their short-form application that they, and all parties 
to the application, will come into compliance with Sec.  101.1412(a) 
regarding eligibility restrictions for cable operators. This 
certification should be included as an attachment named Eligibility 
Certification.

H. Other Information

    60. Applicants owned by minorities or women, as defined in Sec.  
1.2110(c)(2), may identify themselves in filling out their FCC Form 175 
short-form application regarding this status. This applicant status 
information is collected for statistical purposes only and assists the 
Commission in monitoring the participation of designated entities in 
its auctions.

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

    61. After the short-form filing deadline (6 p.m. ET October 7, 
2005), applicants may make only minor changes to their applications. 
Applicants will not be permitted to make major modifications to their 
applications (e.g., change their license selections, change control of 
the applicant, or increase a previously claimed bidding credit 
eligibility). Permissible minor changes include, for example, deletion 
and addition of authorized bidders (to a maximum of three) and 
addresses and phone numbers of the applicants and their contact 
persons. 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. 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].

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

    62. Section 1.65 of the Commission's rules requires an applicant to 
maintain the accuracy and completeness of information furnished in its 
pending application and to notify the Commission within 30 days of any 
substantial change that may be of decisional significance to that 
application. Amendments reporting substantial changes of possible 
decisional significance in information contained in FCC Form 175 
applications will not be accepted and may in some instances result in 
the dismissal of the FCC Form 175 application.

III. Pre-Auction Procedures

A. Auction Seminar--September 28, 2005

    63. On Wednesday, September 28, 2005, the FCC will sponsor a 
seminar for parties interested in participating in Auction No. 63 at 
the Federal Communications Commission headquarters, located at 445 12th 
Street,

[[Page 54548]]

SW., Washington, DC. The seminar will provide attendees with 
information about pre-auction procedures, completing FCC Form 175, 
auction conduct, the FCC Auction System, auction rules, and the MVDDS 
service rules. The seminar will also provide an opportunity for 
prospective bidders to ask questions of FCC staff.
    64. To register, complete the registration form in Attachment B of 
the Auction No. 63 Procedures Public Notice and submit it by Monday, 
September 26, 2005. Registrations are accepted on a first-come, first-
served basis. The seminar is free of charge.
    65. For individuals who are unable to attend, an Audio/Video 
webcast of this seminar will be available from the FCC's Auction 63 web 
page at http://wireless.fcc.gov/auctions/63/.

B. Short-Form Application (FCC Form 175)--Due October 7, 2005

    66. In order to be eligible to bid in this auction, applicants must 
first submit an FCC Form 175 application. This application must be 
submitted electronically and be received at the Commission prior to 6 
p.m. ET on October 7, 2005. Late applications will not be accepted. 
There is no application fee required when filing an FCC Form 175. 
However, to be eligible to bid, an applicant must submit an upfront 
payment.
    67. Applications may generally be filed at any time beginning at 
noon ET on September 28, 2005, until 6 p.m. ET on October 7, 2005. 
Applicants are strongly encouraged to file early and are responsible 
for allowing adequate time for filing their applications. Applicants 
may update or amend their electronic applications multiple times until 
the filing deadline on October 7, 2005.
    68. Applicants must always click on the SUBMIT button on the 
Certify & Submit screen of the electronic form to successfully submit 
their FCC Form 175s or modifications. Any form that is not submitted 
will not be reviewed by the FCC. Information about accessing, 
completing, and viewing the FCC Form 175 is included in Attachment C of 
the Auction No. 63 Procedures Public Notice. FCC Auctions Technical 
Support is available at (877) 480-3201, option nine; (202) 414-1250; or 
(202) 414-1255 (text telephone (TTY)); hours of service are Monday 
through Friday, from 8 a.m. to 6 p.m. ET.

C. Application Processing and Minor Corrections

    69. After the deadline for filing the FCC Form 175 applications has 
passed, the FCC will process all timely submitted applications to 
determine which are acceptable for filing, and subsequently will issue 
a public notice identifying: (1) Those applications accepted for 
filing; (2) those applications rejected; and (3) those applications 
which have minor defects that may be corrected, and the deadline for 
resubmitting such corrected applications.
    70. As described more fully in the Commission's rules, after the 
October 7, 2005, short-form filing deadline, applicants may make only 
minor corrections to their FCC Form 175 applications. Applicants will 
not be permitted to make major modifications to their applications 
(e.g., change their license selections, change control of the 
applicant, or increase a previously claimed bidding credit 
eligibility).

D. Upfront Payments--Due November 7, 2005

    71. In order to be eligible to bid in the auction, applicants must 
submit an upfront payment accompanied by an FCC Remittance Advice Form 
(FCC Form 159). After completing the FCC Form 175, filers will have 
access to an electronic version of the FCC Form 159 that can be printed 
and faxed to Mellon Bank in Pittsburgh, PA. All upfront payments must 
be received in the proper account at Mellon Bank by 6 p.m. ET on 
November 7, 2005.
i. Making Auction Payments by Wire Transfer
    72. Wire transfer payments must be received by 6 p.m. ET on 
November 7, 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.
    73. Applicants must fax a completed FCC Form 159 (Revised 2/03) to 
Mellon Bank at (412) 209-6045 at least one hour before placing the 
order for the wire transfer (but on the same business day). On the 
cover sheet of the fax, write Wire Transfer--Auction Payment for 
Auction No. 63. In order to meet the Commission's upfront payment 
deadline, an applicant's payment must be credited to the Commission's 
account by the deadline. Applicants are responsible for obtaining 
confirmation from their financial institution that Mellon Bank has 
timely received their upfront payment and deposited it in the proper 
account.
ii. FCC Form 159
    74. A completed FCC Remittance Advice Form (FCC Form 159, Revised 
2/03) must be faxed 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. 63 Procedures Public Notice. An electronic pre-filled 
version of the FCC Form 159 is available after submitting the FCC Form 
175. 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
    75. In the Part 1 Order, 62 FR 13540 (March 21, 1997), the 
Commission delegated to the Bureau the authority and discretion to 
determine appropriate upfront payment(s) for each auction. In addition, 
in the Part 1 Fifth Report and Order, 65 FR 52323 (August 29, 2000), 
the Commission ordered that former defaulters, i.e., applicants that 
have ever been in default on any Commission license or have ever been 
delinquent on any non-tax debt owed to any Federal agency, be required 
to pay upfront payments 50 percent greater than non-former defaulters. 
For purposes of this calculation, the applicant includes the applicant 
itself, its affiliates, its controlling interests, and affiliates of 
its controlling interests, as defined by Sec.  1.2110 of the 
Commission's rules.
    76. In the Auction No. 63 Comment Public Notice, the Bureau 
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 license, 
otherwise qualified bidders that applied for that license on Form 175 
must have a current eligibility level that meets or exceeds the number 
of bidding units assigned to that license. At a minimum, therefore, an 
applicant's total upfront payment must be enough to establish 
eligibility to bid on at least one of the licenses applied for on Form 
175, or else the applicant will not be eligible to participate in the 
auction. An applicant does not have to make an upfront payment to cover 
all licenses for which the applicant has applied on Form 175, but 
rather to cover the maximum number of bidding units that are associated 
with licenses on which the bidder wishes to place bids and hold 
provisionally winning bids at any given time.
    77. In the Auction No. 63 Comment Public Notice, the Bureau 
proposed

[[Page 54549]]

upfront payments on a license-by-license basis as follows:
     The upfront payment for each license in Auction No. 63 is 
based on 50 percent of the corresponding minimum opening bid amount 
from Auction No. 53, with a minimum of $1,000 per license.
    78. The specific upfront payments and bidding units for each 
license are set forth in Attachment A of the Auction No. 63 Procedures 
Public Notice.
    79. 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 licenses 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
------------------------------------------------------------------------
                                                     Bidding    Upfront
           Market No.               Market name       units     payment
------------------------------------------------------------------------
MVD038.........................  Grand Rapids-         47,000    $47,000
                                  Kalamazoo-B.Crk.
MVD207.........................  Helena...........      1,600      1,600
------------------------------------------------------------------------

    80. Former defaulters should calculate their upfront payment for 
all licenses 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 
licenses applied for on its Form 175, the applicant will not be 
eligible to participate in the auction.
iv. Applicant's Wire Transfer Information for Purposes of Refunds of 
Upfront Payments
    81. The Commission will use wire transfers for all Auction No. 63 
refunds. To ensure that refunds of upfront payments are processed in an 
expeditious manner, the Commission is requesting that all pertinent 
information as listed in the Auction No. 63 Procedures Public Notice be 
supplied to the FCC. Applicants can provide the information 
electronically during the initial short-form filing window after the 
form has been submitted. Wire Transfer Instructions can also be 
manually faxed to the FCC, Financial Operations Center, Auctions 
Accounting Group, ATTN: Gail Glasser, at (202) 418-2843. All refunds 
will be returned to the payer of record as identified on the FCC Form 
159 unless the payer submits written authorization instructing 
otherwise. For additional information, please call Gail Glasser at 
(202) 418-0578.

E. Auction Registration

    82. Approximately ten days before the auction, the FCC will issue a 
public notice announcing all qualified bidders for the auction. 
Qualified bidders are those applicants whose FCC Form 175 applications 
have been accepted for filing and have timely submitted upfront 
payments sufficient to make them eligible to bid on at least one of the 
licenses for which they applied.
    83. 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 that will be required to place bids, the 
Integrated Spectrum Auction System (ISAS) Bidder's Guide, and the 
Auction Bidder Line phone number.
    84. 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, December 1, 2005, 
should call (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.
    85. In the event that SecurID cards are lost or damaged, only a 
person who has been designated as an authorized bidder, the contact 
person, or the certifying official on the applicant's short-form 
application may request replacement registration material. Qualified 
bidders requiring the replacement of these items must call Technical 
Support at (877) 480-3201, option nine; (202) 414-1250; or (202) 414-
1255 (TTY).

F. Remote Electronic Bidding

    86. The Commission will conduct this auction over the Internet, and 
telephonic bidding will be available as well. Qualified bidders are 
permitted to bid electronically and telephonically. Each applicant 
should indicate its bidding preference--electronic or telephonic--on 
the FCC Form 175. In either case, each authorized bidder must have its 
own SecurID card, which the FCC will provide at no charge. Each 
applicant with one authorized bidder will be issued two SecurID cards, 
while applicants with two or three authorized bidders will be issued 
three cards. For security purposes, the SecurID cards, 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. 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. 63.
    87. Please note that the SecurID cards can be recycled, and the 
Bureau encourages bidders to return the cards to the FCC. The Bureau 
will provide pre-addressed envelopes that bidders may use to return the 
cards once the auction is over.

G. Mock Auction--December 5, 2005

    88. All qualified bidders will be eligible to participate in a mock 
auction on Monday, December 5, 2005. The mock auction will enable 
applicants to become familiar with the FCC Auction System prior to the 
auction. Participation by all bidders is strongly recommended. Details 
will be announced by public notice.

IV. Auction Event

    89. The first round of bidding for Auction No. 63 will begin on 
Wednesday, December 7, 2005. The initial bidding schedule will be 
announced in a public notice listing the qualified bidders, which is 
released approximately 10 days before the start of the auction.

[[Page 54550]]

A. Auction Structure

i. Simultaneous Multiple Round Auction
    90. In the Auction No. 63 Comment Public Notice, the Bureau 
proposed to award all licenses in Auction No. 63 in a simultaneous 
multiple round auction. In a simultaneous multiple round auction, all 
licenses are available during the entire auction, and bids are accepted 
on any license until the auction concludes. The Bureau concludes that 
it is operationally feasible and appropriate to auction the MVDDS 
licenses through a simultaneous multiple round auction. Unless 
otherwise announced, bids will be accepted on all licenses in each 
round of the auction. This approach, the Bureau believes, allows 
bidders to take advantage of synergies that exist among licenses and is 
administratively efficient.
ii. Eligibility and Activity Rules
    91. The amount of the upfront payment submitted by a bidder 
determines initial bidding eligibility, the maximum number of bidding 
units on which a bidder may be active. Note again that each license is 
assigned a specific number of bidding units equal to the upfront 
payment listed in Attachment A of the Auction No. 63 Procedures Public 
Notice on a bidding unit per dollar basis. Bidding units for a given 
license do not change as prices rise during the auction. A bidder's 
upfront payment is not attributed to specific licenses. Rather, a 
bidder may place bids on any of the licenses selected on its FCC Form 
175 as long as the total number of bidding units associated with those 
licenses 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 it may wish to bid on or 
hold provisionally winning bids on in any single round, and submit an 
upfront payment amount covering that total number of bidding units. The 
total upfront payment does not affect the total dollar amount a bidder 
may bid on any given license.
    92. 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 are required to be active on a specific 
percentage of their current bidding eligibility during each round of 
the auction.
    93. A bidder's activity level in a round is the sum of the bidding 
units associated with licenses on which the bidder is active. A bidder 
is considered active on a license in the current round if it is either 
the 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 procedures have proven successful in maintaining the pace of 
previous auctions, the Bureau adopts them for Auction No. 63.
iii. Auction Stages
    94. In the Auction No. 63 Comment Public Notice, the Bureau 
proposed to conduct the auction in two stages and employ an activity 
rule. The Bureau 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 licenses representing at least 80 percent of 
its current bidding eligibility. Finally, the Bureau 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 Bureau received no 
comments on this proposal.
    95. The Bureau adopts the following activity levels for each stage 
of the auction. The Bureau reserves the discretion to further alter the 
activity percentages before and/or during the auction.
    Stage One: During the first stage of the auction, a bidder desiring 
to maintain its current bidding eligibility will be required to be 
active on licenses 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 in the next round of bidding unless an activity 
rule waiver is used. During Stage One, reduced eligibility for the next 
round will be calculated by multiplying the bidder's current 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\).
    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 in the next round of bidding unless an 
activity rule waiver is used. During Stage Two, reduced eligibility for 
the next round will be calculated by multiplying the bidder's current 
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\).
    Caution: Since activity requirements increase in Stage Two, bidders 
must carefully check their activity during 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 re-verify their 
activity status at stage transitions. Bidders may check their activity 
against the required activity level by either logging in to the FCC 
Auction System or by accessing the bidder summaries on the public 
results page.
iv. Stage Transitions
    96. The auction will start in Stage One and will generally advance 
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 licenses being auctioned (as measured in bidding units). In 
addition, the Bureau will retain the discretion to regulate the pace of 
the auction by announcement. This determination will be based on a 
variety of measures of bidder activity, including, but not limited to, 
the auction activity level, the percentages of licenses (as measured in 
bidding units) on which there are new bids, the number of new bids, and 
the percentage increase in revenue.
v. Activity Rule Waivers and Reducing Eligibility
    97. Each bidder will 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 license. 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

[[Page 54551]]

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 Bureau is satisfied that its 
practice of providing 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.
    98. 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. If a bidder 
has no waivers remaining and does not satisfy the activity requirement, 
the FCC Auction System will permanently reduce the bidder's 
eligibility, possibly eliminating the bidder from further bidding in 
the auction.
    99. A bidder with insufficient activity that wants to reduce its 
bidding eligibility rather than use an activity rule waiver must 
affirmatively override the automatic waiver mechanism during the 
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.
    100. 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 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. 
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
    101. For Auction No. 63, the Bureau proposed to employ a 
simultaneous stopping rule approach. The Bureau 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 licenses 
after the first round in which no bidder applies a waiver, places a 
withdrawal, or submits any new bids on any license on which it is not 
the provisionally winning bidder. Thus, absent any other bidding 
activity, a bidder placing a new bid on a license for which it is the 
provisionally winning bidder would not keep the auction open under this 
modified stopping rule.
    102. The Bureau 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.
    103. In addition, The Bureau proposed that it reserve the right to 
declare that the auction will end after a specified number of 
additional rounds (special stopping rule). If the Bureau invokes this 
special stopping rule, it will accept bids in the specified final 
round(s) and the auction will close.
    104. The Bureau proposed to exercise these options 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 these options, the Bureau is 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 licenses where there 
is still a high level of bidding activity.
    105. The Bureau adopts its proposals. Auction No. 63 will begin 
under the simultaneous stopping rule approach, and the Bureau will 
retain the discretion to invoke the other versions of the stopping 
rule. The Bureau believes that these stopping rules are most 
appropriate for Auction No. 63, because our 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
    106. The Bureau adopts its proposed auction cancellation rules. By 
public notice or by announcement during the auction, the Bureau may 
delay, suspend, or cancel the auction in the event of natural disaster, 
technical obstacle, evidence of an auction security breach, unlawful 
bidding activity, administrative or weather necessity, or for any other 
reason that affects the fair and competitive conduct of competitive 
bidding. In such cases, the Bureau, in its sole discretion, may elect 
to resume the auction starting from the beginning of the current round, 
resume the auction starting from some previous round, or cancel the 
auction in its entirety. Network interruption may cause the Bureau to 
delay or suspend the auction. The Bureau emphasizes that exercise of 
this authority is solely within the discretion of the Bureau, and its 
use is not intended to be a substitute for situations in which bidders 
may wish to apply their activity rule waivers.

B. Bidding Procedures

i. Round Structure
    107. 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.
    108. The FCC has discretion to change the bidding schedule in order 
to foster an auction pace that reasonably balances speed with the 
bidders' need to study round results and adjust their bidding 
strategies. The Bureau may increase or decrease the amount of time for 
the bidding rounds and review periods, or the number of rounds per day, 
depending upon the bidding activity level and other factors.
ii. Reserve Price or Minimum Opening Bid
    109. Section 309(j) of the Communications Act of 1934, as amended, 
calls upon the Commission to prescribe methods by which a reasonable 
reserve price will be required or a minimum opening bid established 
when applications for FCC licenses are subject to auction (i.e., 
because they are mutually exclusive), unless the Commission determines 
that a reserve price or minimum opening bid is not in the public 
interest. Consistent with this mandate, the Commission directed the 
Bureau to seek comment on the use of a minimum opening bid and/or 
reserve price prior to the start of each auction. Among other factors, 
the Bureau must consider the amount of spectrum being auctioned, levels 
of incumbency, the

[[Page 54552]]

availability of technology to provide service, the size of the 
geographic service areas, the extent of interference with other 
spectrum bands, and any other relevant factors that could have an 
impact on the spectrum being auctioned. The Commission concluded that 
the Bureau should have the discretion to employ either or both of these 
mechanisms for future auctions.
    110. In the Auction No. 63 Comment Public Notice, the Bureau 
proposed to establish minimum opening bids for Auction No. 63 and to 
retain discretion to lower the minimum opening bids. Specifically, for 
Auction No. 63, the Bureau proposed to calculate minimum opening bids 
on a license-by-license basis as follows:
     The minimum opening bid amount for each license in Auction 
No. 63 is based on a 50 percent reduction of the corresponding minimum 
opening bid amount from Auction No. 53, with a minimum of $1,000 per 
license.
    111. In the alternative, the Bureau sought comment on whether, 
consistent with the Section 309(j), the public interest would be served 
by having no minimum opening bid or reserve price.
    112. The Bureau adopts its proposal. The minimum opening bid 
amounts the Bureau adopts for Auction No. 63 are reducible at the 
discretion of the Bureau. The Bureau emphasizes, however, that such 
discretion will be exercised, if at all, sparingly and early in the 
auction, i.e., before bidders lose all waivers and begin to lose 
substantial eligibility. During the course of the auction, the Bureau 
will not entertain requests to reduce the minimum opening bid amount on 
specific licenses.
    113. The specific minimum opening bid amounts for each license 
available in Auction No. 63 are set forth in Attachment A of the 
Auction No. 63 Procedures Public Notice.
iii. Minimum Acceptable Bid Amounts and Bid Increment Amounts
    114. In the Auction No. 63 Comment Public Notice, the Bureau 
proposed to use a minimum acceptable bid increment of five percent. 
This means that the minimum acceptable bid amount for a license will be 
approximately five percent greater than the provisionally winning bid 
amount for the license. The minimum acceptable bid amount will be 
calculated by multiplying the provisionally winning bid amount times 
one plus the minimum acceptable bid percentage--e.g., if the minimum 
acceptable bid percentage is 5 percent, the minimum acceptable bid 
amount calculation is (provisionally winning bid amount) * (1 + 0.05), 
rounded or (provisionally winning bid amount) * (1.05), rounded. The 
Bureau will round the result using our standard rounding procedures. 
The Bureau further proposed to retain the discretion to change the 
minimum acceptable bid amounts and bid increments amounts if the Bureau 
determine that circumstances so dictate. The Bureau received no comment 
on this issue. The Bureau will begin the auction with a minimum 
acceptable bid percentage of 5%.
    115. In each round, each eligible bidder will be able to place a 
bid on a particular license for which it applied in any of nine 
different amounts. The FCC Auction System will list the nine acceptable 
bid amounts for each license. Until a bid has been placed on a license, 
the minimum acceptable bid amount for that license will be equal to its 
minimum opening bid amount.
    116. The nine acceptable bid amounts for each license 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 5 percent, then the 
next bid amount will equal (minimum acceptable bid amount) * 1.05, 
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) * 1.10, 
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) * 1.15, 
rounded; etc. The Bureau will begin the auction with a bid increment 
percentage of 5 percent. Note that the bid increment percentage need 
not be the same as the minimum acceptable bid percentage.
    117. In the case of a license for which the provisionally winning 
bid amount has been withdrawn, the minimum acceptable bid amount will 
equal the amount of the second highest bid amount received for the 
license. The additional bid amounts above the minimum acceptable bid 
amount are calculated using the bid increment percentage as described 
in the previous paragraph.
    118. The Bureau retains 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 Bureau will do so by announcement in the FCC Auction 
System. The Bureau may also use its discretion to adjust the minimum 
bid increment amount without prior notice if circumstances warrant.
iv. Provisionally Winning Bids
    119. At the end of each bidding round, a provisionally winning bid 
will be determined based on the highest bid amount received for each 
license. A provisionally winning bid will remain the provisionally 
winning bid until there is a higher bid on the same license at the 
close of a subsequent round. Provisionally winning bids at the end of 
the auction become the winning bids. Bidders are reminded that 
provisionally winning bids count toward activity for purposes of the 
activity rule.
    120. In the Auction No. 63 Comment Public Notice, the Bureau 
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 license in a given round (i.e., tied bids). No comments were 
received on this proposal. Therefore, the Bureau adopts its proposal. A 
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 license, unless that provisionally 
winning bid was withdrawn. If any bids are received on the license in a 
subsequent round, the provisionally winning bid will once again be 
determined based on the highest bid amount received for the license.
v. Bidding
    121. During a round, a bidder may submit bids for as many licenses 
as it wishes (subject to its eligibility), withdraw provisionally 
winning bids from previous bidding rounds, remove bids placed in the 
current bidding round, or permanently reduce eligibility. Bidders also 
have the option of submitting and removing multiple bids and 
withdrawing multiple provisionally winning bids (subject to the 
limitation on withdrawal rounds discussed below) during a round. If a 
bidder submits multiple bids for a single license in the same round, 
the system takes the last bid entered as that bidder's bid for the 
round. Bidders

[[Page 54553]]

should note that the bidding units associated with licenses for which 
the bidder has removed or withdrawn its bid do not count towards the 
bidder's current activity.
    122. All bidding will take place remotely either through the FCC 
Auction System or by telephonic bidding. There will be no on-site 
bidding during Auction No. 63. Please note that telephonic bid 
assistants are required to use a script when entering bids placed by 
telephone. Telephonic bidders are therefore reminded to allow 
sufficient time to bid by placing their calls well in advance of the 
close of a round. Normally, five to ten minutes are necessary to 
complete a telephonic bid submission.
    123. A bidder's ability to bid on specific licenses is determined 
by two factors: (1) the licenses applied for on the bidder's FCC Form 
175 and (2) the bidder's current eligibility. The bid submission 
screens will allow bidders to submit bids on only those licenses for 
which the bidder applied on its FCC Form 175.
    124. In order to access the bidding function of the FCC Auction 
System, bidders must be logged in during the bidding round using the 
passcode 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.
    125. In each round, eligible bidders will be able to place bids on 
a given license in any of nine different amounts. For each license, the 
FCC Auction System will list the nine acceptable bid amounts in a drop-
down box. Bidders use the drop-down box to select from among the 
acceptable bid amounts. The FCC Auction System also includes an upload 
function that allows bidders to upload text files containing bid 
information.
    126. Until a bid has been placed on a license, the minimum 
acceptable bid amount for that license will be equal to its minimum 
opening bid amount. Once there is a provisionally winning bid on a 
license, the FCC Auction System will calculate a minimum acceptable bid 
amount for that license for the following round.
    127. Finally, bidders are 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
    128. In the Auction No. 63 Comment Public Notice, the Commission 
proposed bid removal and bid withdrawal procedures. With respect to bid 
withdrawals, the Commission 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 Bureau received no comments on this issue.
    129. 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. These procedures will enhance bidder 
flexibility during the auction, and therefore the Bureau adopts them 
for Auction No. 63.
    130. Once a round closes, a bidder may no longer remove a bid. 
However, in later rounds, a bidder may withdraw provisionally winning 
bids from previous rounds using the withdraw bids function in the FCC 
Auction System (assuming that the bidder has not already withdrawn bids 
in a previous round). 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: Once a withdrawal is submitted during a round, that withdrawal 
cannot be unsubmitted.
    131. In previous auctions, the Bureau has detected bidder conduct 
that, arguably, may have constituted anti-competitive behavior through 
the use of bid withdrawals. While the Bureau continues to recognize the 
important role that bid withdrawals play in an auction, i.e., reducing 
risk associated with efforts to secure various licenses in combination, 
the Bureau concludes that, for Auction No. 63, adoption of a limit on 
the use of withdrawals to one round per bidder is appropriate. By doing 
so the Bureau believes it strikes a reasonable compromise that will 
allow bidders to use withdrawals. The Bureau bases its decision on this 
issue upon its experience with bid withdrawals in prior auctions, 
including PCS D, E and F block and 800 MHz SMR, and FM broadcast 
auctions. The Bureau's decision is in no way a reflection of its view 
regarding the likelihood of any ``gaming'' in this auction.
    132. The Bureau will therefore 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). Bidders should note that abuse of the Commission's bid 
withdrawal procedures could result in the denial of the ability to bid 
on a market.
    133. If a provisionally winning bid is withdrawn, the minimum 
acceptable bid amount will equal the amount of the second highest bid 
received for the license, which may be less than, or in the case of 
tied bids, equal to, the amount of the withdrawn bid. 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 license until a new bid is 
submitted on that license.
    134. Calculation. Generally, the Commission imposes payments on 
bidders that withdraw high bids during the course of an auction. If a 
bidder withdraws its bid and there is no higher bid in the same or 
subsequent auction(s), the bidder that withdrew its bid is responsible 
for the difference between its withdrawn bid and the provisionally 
winning bid in the same or subsequent auction(s). In the case of 
multiple bid withdrawals on a single license, within the same or 
subsequent auctions(s), the payment for each bid withdrawal will be 
calculated based on the sequence of bid withdrawals and the amounts 
withdrawn. No withdrawal payment will be assessed for a withdrawn bid 
if either the subsequent winning bid or any of the intervening 
subsequent withdrawn bids, in either the same or subsequent 
auctions(s), equals or exceeds that withdrawn bid. Thus, a bidder that 
withdraws a bid will not be responsible for any withdrawal payments if 
there is a subsequent higher bid in the same or subsequent auction(s). 
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 Bureau retains the discretion to scrutinize 
multiple bid withdrawals on a single license for

[[Page 54554]]

evidence of anti-competitive strategic behavior and take appropriate 
action when deemed necessary.
    135. Section 1.2104(g)(1) of the rules sets forth the payment 
obligations of a bidder that withdraws a high bid on a license during 
the course of an auction, and provides for the assessment of interim 
bid withdrawal payments. As amended, 47 CFR 1.2104(g)(1) provides that 
in instances in which bids have been withdrawn on a license that is not 
won in the same auction, the Commission will assess an interim 
withdrawal payment equal to 3 percent of the amount of the withdrawn 
bids. The three percent interim payment will be applied toward any 
final bid withdrawal payment that will be assessed after subsequent 
auction of the license. Assessing an interim bid withdrawal payment 
ensures that the Commission receives a minimal withdrawal payment 
pending assessment of any final withdrawal payment. 47 CFR 1.2104(g) 
provides specific examples showing application of the bid withdrawal 
payment rule.
vii. Round Results
    136. Bids placed during a round will not be made public until the 
conclusion of that round. After a round closes, the Bureau 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. 63 will be available before and during the 
auction. Thus, bidders will know in advance of this auction the 
identities of the bidders against which they are bidding.
viii. Auction Announcements
    137. 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

    138. 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.
    139. 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. 63 to 20 percent of the net amount 
of its winning bids (gross bids less any applicable small business, 
very small business, or entrepreneur bidding credits). In addition, by 
the same deadline, all bidders must pay any bid withdrawal payments due 
under 47 CFR 1.2104(g), as discussed in Bid Removal and Bid Withdrawal.

B. Final Payments

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

C. Long-Form Application (FCC Form 601)

    141. Within ten business days after release of the auction closing 
notice, winning bidders must electronically submit a properly completed 
long-form application (FCC Form 601) for each license won through 
Auction No. 63. Winning bidders that are very small businesses, small 
businesses, or entrepreneurs must demonstrate their eligibility for 
very small business, small business, or entrepreneur bidding credits. 
See 47 CFR 1.2112(b). Further filing instructions will be provided to 
auction winners at the close of the auction.

D. Ownership Disclosure Information Report (FCC Form 602)

    142. At the time it submits its long-form application (FCC Form 
601), each winning bidder also must comply with the ownership reporting 
requirements as set forth in 47 CFR 1.913, 1.919, and 1.2112. An 
ownership disclosure record was automatically created in the Universal 
Licensing System (ULS) for any applicant that submitted an FCC Form 
175. However, winning bidders will be required to review and confirm 
that it is complete and accurate as of the date of filing Form 601. 
Further instructions will be provided to auction winning bidders at the 
close of the auction.

E. Tribal Land Bidding Credit

    143. A winning bidder that intends to use its license(s) to deploy 
facilities and provide services to federally recognized tribal lands 
that are unserved by any telecommunications carrier or that have a 
wireline penetration rate equal to or below 85 percent is eligible to 
receive a tribal land bidding credit as set forth in 47 CFR 1.2107 and 
1.2110(f). A tribal land bidding credit is in addition to, and separate 
from, any other bidding credit for which a winning bidder may qualify.
    144. Unlike other bidding credits that are requested prior to the 
auction, a winning bidder applies for the tribal land bidding credit 
after winning the auction when it files its long-form application (FCC 
Form 601). When initially filing the long-form application, the winning 
bidder will be required to advise the Commission whether it intends to 
seek a tribal land bidding credit, for each market won in the auction, 
by checking the designated box(es). After stating its intent to seek a 
tribal land bidding credit, the applicant will have 180 days from the 
close of the long-form filing window to amend its application to select 
the specific tribal lands to be served and provide the required tribal 
government certifications. Licensees receiving a tribal land bidding 
credit are subject to performance criteria as set forth in 47 CFR 
1.2110(f)(3)(vi).
    145. For additional information on the tribal land bidding credit, 
including how the amount of the credit is calculated, applicants should 
review the Commission's rule making proceeding regarding tribal land 
bidding credits and related public notices. Relevant documents can be 
viewed on the Commission's web site by going to http://wireless.fcc.gov/auctions and clicking on the Tribal Land Credits link.

F. Default and Disqualification

    146. Any high bidder that defaults or is disqualified after the 
close of the auction (i.e., fails to remit the required down payment 
within the prescribed period of time, fails to submit a timely long-
form application, fails to make full payment, or is otherwise 
disqualified) will be subject to the payments described in 47 CFR 
1.2104(g)(2). In such event the Commission may re-auction the license 
or offer it to the next highest bidder (in descending order) at its 
final bid. In addition, if a default or disqualification involves gross 
misconduct, misrepresentation, or bad faith by an applicant, the 
Commission may declare the applicant and its principals ineligible to 
bid in future auctions, and may take any other action that it deems 
necessary, including institution of proceedings to revoke any existing 
licenses held by the applicant.
G. Refund of Remaining Upfront Payment Balance
    147. All applicants that submit upfront payments but are not 
winning bidders for a license in Auction No. 63 may be entitled to a 
refund of their remaining upfront payment balance

[[Page 54555]]

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.
    148. 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 you have completed the refund instructions 
electronically, then only a written request for the refund is 
necessary. If not, the request must also include wire transfer 
instructions, Taxpayer Identification Number (TIN) and FCC Registration 
Number (FRN). Send refund requests to: Federal Communications 
Commission, Financial Operations Center, Auctions Accounting Group, 
Gail Glasser, 445 12th Street, SW., Room 1-C864, Washington, DC 20554.
    149. Bidders are encouraged to file their refund information 
electronically using the Refund Information icon in the FCC Form 175, 
but bidders can also fax their information to the Auctions Accounting 
Group at (202) 418-2843. Once the information has been approved, a 
refund will be sent to the party identified in the refund information.

Federal Communications Commission.
Gary Michaels,
Deputy Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. 05-18478 Filed 9-14-05; 8:45 am]
BILLING CODE 6712-01-P