[Federal Register Volume 70, Number 248 (Wednesday, December 28, 2005)]
[Notices]
[Pages 76836-76849]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-7872]


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FEDERAL COMMUNICATIONS COMMISSION

[Report No. AUC-05-64-B (Auction No. 64); DA 05-2987]


Auction of Full Power Television Construction Permits Scheduled 
for March 15, 2006, Notice and Filing Requirements, Minimum Opening 
Bids, Upfront Payments and Other Procedures for Auction No. 64

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 eleven full power television station 
construction permits. This document is intended to familiarize 
prospective bidders with the procedures and minimum opening bids for 
Auction No. 64.

DATES: Auction No. 64 short-form applications are due before 6 p.m. 
Eastern Time (ET) on January 20, 2006. Upfront payments are due before 
6 p.m. ET on February 17, 2006. Competitive bidding is scheduled to 
begin on March 15, 2006.

FOR FURTHER INFORMATION CONTACT: Auction and Spectrum Access Division, 
Wireless Telecommunications Bureau: for legal questions: Lynne Milne at 
(202) 418-0660; for general auction questions: Debbie Smith or Lisa 
Stover at (717) 338-2888. Video Division, Media Bureau: for service 
rule questions: Shaun Maher at (202) 418-2324 or Shaleim Henry at (202) 
418-1600.

SUPPLEMENTARY INFORMATION: This is a summary of the Auction No. 64 
Procedures Public Notice released on November 23, 2005. The complete 
text of the Auction No. 64 Procedures Public Notice, including 
attachments and 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 p.m. on Friday at the FCC Reference Information 
Center, Portals II, 445 12th Street, SW., Room CY-A257, Washington, DC 
20554. The Auction No. 64 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 Web site: http://www.BCPIWEB.com. When ordering documents from BCPI, please provide the 
appropriate FCC document number (for example, DA 05-2987 for the 
Auction No. 64 Procedures Public Notice). The Auction No. 64 Procedures 
Public Notice and related documents are available also on the Internet 
at the Commission's Web site: http://wireless.fcc.gov/auctions/64/.

I. General Information

A. Introduction

    1. The Media Bureau (MB) and the Wireless Telecommunications Bureau 
(WTB) (collectively the Bureaus) announce the procedures and minimum 
opening bid amounts for the auction of 11 full power television station 
construction permits in Auction No. 64, scheduled to begin on March 15, 
2006. On September 23, 2005, in accordance with 47 U.S.C. 309(j)(4), 
the Bureaus released a public notice seeking comment on reserve prices 
or minimum opening bid amounts and the procedures to be used in Auction 
No. 64. The Bureaus received comments from one commenter in response to 
the Auction No. 64 Comment Public Notice, 70 FR 58700 (October 7, 
2005).
i. Background
    2. The Commission's competitive bidding rules will be used to 
select among mutually exclusive applications for these construction 
permits in Auction No. 64. When two or more short-form applications are 
accepted for filing for the same construction permit

[[Page 76837]]

in Auction No. 64, mutual exclusivity exists for auction purposes. Once 
mutual exclusivity exists for auction purposes, even if only one 
applicant for a particular construction permit submits an upfront 
payment, that applicant is required to submit a bid in order to obtain 
the construction permit. Any applicant that submits a short-form 
application that is accepted for filing but fails to timely submit an 
upfront payment will retain its status as an applicant in Auction No. 
64 and will remain subject to the Commission's anti-collusion rules, 
but, having purchased no bidding eligibility, will not be eligible to 
bid.
ii. Television Station Construction Permits To Be Auctioned
    3. Auction No. 64 will offer 11 construction permits for full power 
television stations. Ten of these construction permits are open to any 
interested party. The locations and channels of the ten open 
construction permits are designated as: Greeley, Colorado (DTV 45), 
Pueblo, Colorado (NTSC 48), Apalachicola, Florida (DTV 3), Derby, 
Kansas (DTV 46), Topeka, Kansas (NTSC 22+), Duluth, Minnesota (NTSC 
27), Osage Beach, Missouri (NTSC 49+), Bend, Oregon (NTSC 51), 
Victoria, Texas (NTSC 31), and Medical Lake, Washington (DTV 51). The 
remaining permit, with a location and channel designated as Jackson, 
Mississippi (NTSC 51), is closed, and only the five listed parties that 
previously filed long-form applications may participate in the bidding 
for this permit, provided such parties submit an acceptable short-form 
application pursuant to the Commission's rules and procedures described 
in the Auction No. 64 Procedures Public Notice.
    4. A complete list of construction permits available in Auction No. 
64 is included in Attachment A of the Auction No. 64 Procedures Public 
Notice. Interested parties should note that some of the stations listed 
in Attachment A of the Auction No. 64 Procedures Public Notice are 
single channel, digital-only television stations and are indicated as 
DTV. These stations must be operated in digital television mode. Those 
stations indicated as NTSC are single-channel stations that must be 
operated as either NTSC analog stations or, if they meet the 
Commission's interference requirements, may be operated as digital only 
television stations.
    5. To be eligible to participate in competitive bidding for any of 
the construction permits identified in Attachment A of the Auction No. 
64 Procedures Public Notice, each interested party, including those 
individuals or entities with a pending long-form application listed in 
Attachment A of the Auction No. 64 Procedures Public Notice, must 
submit before the deadline of January 20, 2006, a complete and correct 
short-form application and otherwise comply with the deadlines and 
requirements outlined in the Auction No. 64 Procedures Public Notice. 
The Media Bureau will dismiss the pending long-form application (FCC 
Form 301) listed in Attachment A of the Auction No. 64 Procedures 
Public Notice of any applicant which fails to file a short-form 
application (FCC Form 175) to participate in Auction No. 64 before the 
deadline specified in the Auction No. 64 Procedures Public Notice or 
which fails to submit a sufficient upfront payment before the deadline 
specified in the same public notice.
a. Open Construction Permits
    6. Pursuant to the policies established in the Broadcast 
Competitive Bidding First Report and Order, 63 FR 48615 (September 11, 
1998), any interested party may apply for any of the ten open 
construction permits listed in Attachment A of the Auction No. 64 
Procedures Public Notice. Long-form applications were filed previously 
for some of these open television station construction permits. The 
pending applications for these open construction permits also are 
listed in Attachment A of the Auction No. 64 Procedures Public Notice.
    7. Any party filing for an open construction permit with a pending 
long-form application should understand that it is likely that its 
application will be mutually exclusive with the previously-filed 
application. Even if there is no pending long-form application for an 
open construction permit listed in Attachment A of the Auction No. 64 
Procedures Public Notice, short-form applications specifying the same 
open construction permit will be considered mutually exclusive.
    8. In response to the Auction No. 64 Comment Public Notice, one 
individual filed comments requesting that the construction permit for 
the new television station on Channel 31 at Victoria, Texas be removed 
from the auction and that there be no opportunity to file a competing 
application against his pending application for station TV-NTS009-31. 
The commenter expressed concern that the Commission will be allowing 
other parties to file competing applications for a full power 
television station that may cause interference to his licensed Class A 
low power television (LPTV) station KVHM-LP, on Channel 31 at Victoria, 
Texas. The commenter maintained that only his application for Victoria 
can be granted because the issue of interference to his Class A LPTV 
station can only be resolved with his consent. The commenter requests 
that his application for Channel 31 at Victoria be withdrawn from the 
auction and granted outside of the auction process.
    9. The commenter essentially requests that the staff review the 
technical qualifications of all proposals for the new Victoria 
television station prior to auction. In the Broadcast Competitive 
Bidding First Report and Order, the Commission rejected such a pre-
auction review of technical proposals to minimize the potential for 
delay and promote the deployment of new broadcasting service to the 
public. The Bureaus will not, therefore, consider whether other 
proposals for a new Victoria television station would be technically 
qualified prior to the auction.
    10. Moreover, the Bureaus declined to remove the Victoria 
construction permit from this auction based on speculation that a long-
form application filed by a winning bidder may fail to protect from 
harmful interference the Class A low power television station (KVHM-LP) 
licensed to the commenter. After the close of competitive bidding, the 
winning bidder for the Victoria construction permit for TV-NTS009-31, 
if any, will be required to submit a long-form application and 
demonstrate inter alia compliance with all of the technical rules 
concerning operation of a full-power television station. As part of its 
long-form application review, the staff will determine whether the 
winning bidder's proposed facility would cause harmful interference to 
all relevant stations, including the commenter's Class A LPTV station. 
For this reason, the Bureaus declined to remove from Auction No. 64 the 
construction permit for station TV-NTS009-31 at Victoria, Texas. 
However, the Bureaus take this opportunity to remind potential bidders 
to undertake appropriate due diligence, including engineering studies, 
site inspections, and other research, prior to participating in this 
auction to ensure that their desired facility may be implemented.
b. Closed Construction Permit
    11. Participation in competitive bidding for the TV-NTS011-51 
construction permit will be limited to those applicants identified for 
the closed construction permit in Attachment A of the Auction No. 64 
Procedures Public Notice, provided

[[Page 76838]]

such parties submit an acceptable short-form application pursuant to 
the Commission's rules and procedures described in the Auction No. 64 
Procedures Public Notice.
    12. In the Auction No. 64 Comment Public Notice, the Bureaus 
required each of the nine specified auction applicants for this closed 
construction permit to submit its FCC registration number (FRN) before 
5 p.m. Eastern Time (ET) on November 16, 2005. Four out of the nine 
specified applicants failed to submit the required FRN. Accordingly, on 
November 23, 2005, the Video Division of the Media Bureau dismissed 
four long-form applications for a construction permit for station TV-
NTS011-51, on NTSC channel 51, at Jackson, Mississippi. A separate 
public notice announcing that action was released December 1, 2005 
(Broadcast Actions, Public Notice, Report No. 46122 (Media Bur. Dec. 1, 
2005)).

B. Rules and Disclaimers

i. Relevant Authority
    13. Prospective applicants must familiarize themselves thoroughly 
with the Commission's general competitive bidding rules, including 
recent amendments and clarifications. Broadcasters also should 
familiarize themselves with the Commission's rules relating to the 
television broadcast service contained in 47 CFR 73.601-73.699 and 
73.1001-73.4280. Prospective applicants also must be familiar with the 
rules relating to competitive bidding proceedings contained in 47 CFR 
1.2001-1.2112 and broadcast auctions contained in 47 CFR 73.5000-
73.5009. Prospective applicants also must be thoroughly familiar with 
the procedures, terms and conditions (collectively, terms) contained in 
the Auction No. 64 Procedures Public Notice, the Auction No. 64 Comment 
Public Notice, the Broadcast Competitive Bidding First Report and 
Order, the Broadcast Competitive Bidding First Reconsideration Order, 
64 FR 24523 (May 7, 1999), the New Entrant Bidding Credit 
Reconsideration Order, 64 FR 44856 (August 18, 1999), and the 
Noncommercial Educational Second Report and Order, 68 FR 26220 (May 15, 
2003).
    14. 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 each applicant 
to remain current with all Commission rules and with all public notices 
pertaining to this auction.
ii. Prohibition of Collusion
    15. The Commission's Part 1 rules prohibit applicants competing for 
construction permits in the same geographic license area from 
communicating with each other about bids, bidding strategies, or 
settlements unless such applicants have identified each other on their 
short-form applications as parties with whom they have entered into 
agreements under 47 CFR 1.2105(a)(2)(viii). Thus, applicants competing 
for construction permits in the same geographic license area must 
affirmatively avoid all communications with each other that affect or, 
in their reasonable assessment have the potential to affect, bids or 
bidding strategy. In some instances, this prohibition extends to 
communications regarding the post-auction market structure. This 
prohibition begins at the short-form application filing deadline and 
ends at the down payment deadline after the auction, which will be 
announced in a future public notice. This prohibition applies to all 
applicants regardless of whether such applicants become qualified 
bidders or actually bid.
    16. In Auction No. 64, the rule would apply to applicants bidding 
for any of the same construction permits. Therefore, two applicants 
that apply to bid for any one common television station construction 
permit would be precluded from engaging in prohibited communications 
during the period from the short-form application deadline until the 
down payment deadline following the close of the auction. In addition, 
even if auction applicants select to bid on their short-form 
applications for only one common television station construction 
permit, they may not discuss with each other their bids or bidding 
strategies relating to any television station construction permit for 
which either applicant selected to bid on the applicant's short-form 
application.
    17. For purposes of this prohibition, 47 CFR 1.2105(c)(7)(i) 
defines applicant as including all officers and directors of the entity 
submitting a short-form application to participate in the auction, as 
well as all controlling interests of that entity, 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.
    18. Applicants competing for construction permits for any of the 
same television stations must not communicate indirectly about bids or 
bidding strategy. Accordingly, such applicants 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 that the authorized bidder is authorized to represent in the 
auction. Also, if the authorized bidders are different individuals 
employed by the same organization (e.g., law firm or engineering firm 
or consulting firm), a violation similarly could occur. 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. Similarly, the Bureaus noted that 
a violation of the anti-collusion rule could occur in other contexts, 
such as, an individual serving as an officer for two or more competing 
applicants.
    19. The Commission's anti-collusion rules allow applicants to form 
certain agreements during the auction, provided the applicants have not 
applied for any of the same construction permits. However, applicants 
may enter into bidding agreements before filing their short-form 
applications, as long as they disclose the existence of the 
agreement(s) in their short-form application. 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 under 47 CFR 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, 
discussions or communications with other applicants for construction 
permits for the same designated market. Applicants that are winning 
bidders will be required pursuant to 47 CFR 1.2107(d) 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.
    20. By electronically submitting its short-form application, each 
applicant certifies its compliance with 47 CFR 1.2105(c) and 73.5002. 
However, the Bureaus caution that merely filing a certifying statement 
as part of an

[[Page 76839]]

application will not outweigh specific evidence that collusive behavior 
has occurred, nor will it preclude the initiation of an investigation 
when warranted.
    21. In addition, 47 CFR 1.65 requires an applicant to maintain the 
accuracy and completeness of information furnished in its pending 
application and to notify the Commission within 30 days of any 
substantial change that may be of decisional significance to that 
application. Thus, 47 CFR 1.65 requires an auction applicant to notify 
the Commission of any violation of the anti-collusion rules upon 
learning of such violation. Applicants are therefore required by 47 CFR 
1.65 to make such notification to the Commission immediately upon 
discovery. In addition, 47 CFR 1.2105(c)(6) requires that any applicant 
that makes or receives a communication prohibited by 47 CFR 1.2105(c) 
must report such communication to the Commission in writing 
immediately, and in no case later than five business days after the 
communication occurs.
    22. Any applicant found to have violated the anti-collusion rule 
may be subject to sanctions. Applicants are reminded that they are 
subject to the antitrust laws, which are designed to prevent 
anticompetitive behavior in the marketplace. Compliance with the 
disclosure requirements of the Commission's anti-collusion rule will 
not necessarily insulate a party from enforcement of the antitrust 
laws. If an applicant is found to have violated the antitrust laws or 
the Commission's rules 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.
    23. A summary listing of documents issued by the Commission and the 
Bureaus addressing the application of the anti-collusion rule may be 
found in Attachment F of the Auction No. 64 Procedures Public Notice 
and these documents are available on the Commission's auction anti-
collusion Web page.
iii. Due Diligence
    24. Potential bidders are reminded that they are solely responsible 
for investigating and evaluating all technical and market place factors 
that may have a bearing on the value of the broadcast facilities in 
this auction. The FCC makes no representations or warranties about the 
use of this spectrum for particular services. Applicants should be 
aware that an FCC auction represents an opportunity to become an FCC 
construction permittee in the broadcast service, subject to certain 
conditions and regulations. An FCC auction does not constitute an 
endorsement by the FCC of any particular service, technology, or 
product, nor does an FCC construction permit or license constitute a 
guarantee of business success. Applicants should perform their 
individual due diligence before proceeding as they would with any new 
business venture.
    25. Potential bidders are strongly encouraged to conduct their own 
research prior to the beginning of bidding in Auction No. 64 in order 
to determine the existence of any pending administrative or judicial 
proceedings that might affect their decision regarding participation in 
bidding in the auction. Participants in Auction No. 64 are strongly 
encouraged to continue such research throughout the auction. In 
addition, potential bidders should perform technical analyses 
sufficient to assure themselves that, should they prevail in 
competitive bidding for a specific construction permit, they will be 
able to build and operate facilities that will comply fully with the 
Commission's technical and legal requirements.
    26. Potential bidders should also be aware that certain pending and 
future applications (including those for modification), petitions for 
rulemaking, requests for special temporary authority, waiver requests, 
petitions to deny, petitions for reconsideration, informal oppositions, 
and applications for review before the Commission may relate to 
particular applicants or incumbent construction permittees or incumbent 
licensees or the construction permits available in Auction No. 64. In 
addition, pending and future judicial proceedings may relate to 
particular applicants, incumbent construction permittees, or incumbent 
licensees, or the construction permits available in Auction No. 64. 
Prospective bidders are responsible for assessing the likelihood of the 
various possible outcomes, and considering their potential impact on 
construction permits available in this auction.
    27. In particular, potential bidders are strongly encouraged to 
review all underlying Commission orders, such as the specific report 
and order amending the television and digital television Tables of 
Allotments and allotting the analog or digital television channel(s) on 
which they plan to bid. Bidders are also responsible for reviewing all 
pending rulemaking petitions and open proceedings that might affect the 
construction permit(s) on which they plan to bid.
    28. Prospective bidders should perform due diligence to identify 
and consider all proceedings that may affect the construction permits 
being auctioned. The Bureaus note that resolution of such matters could 
have an impact on the availability of spectrum for construction permits 
included in Auction No. 64. 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 beginning of bidding in 
this auction.
    29. Applicants are solely responsible for identifying associated 
risks and for investigating and evaluating the degree to which such 
matters may affect their ability to bid on, otherwise acquire, or make 
use of the construction permits available in Auction No. 64. 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 as described in 47 CFR 1.1305--1.1319.
    30. Potential bidders for any new television facility in Auction 
No. 64 should note that full service television stations are in the 
process of converting from analog to digital operation and that 
stations may have pending applications to construct and operate digital 
television facilities, construction permits and/or licenses for such 
digital facilities. Bidders should investigate the impact such 
applications, permits and licenses may have on their ability to operate 
the facilities proposed in this auction.
    31. In response to the enactment of the Community Broadcasters 
Protection Act of 1999, in the Class A Report and Order, 65 FR 29985 
(May 10, 2000), the Commission adopted rules to establish a new Class A 
television service, including rules to provide interference protection 
for eligible Class A television stations from new full power television 
stations. As required by the rulemaking order, a winning bidder in 
Auction No. 64, upon submission of its long-form application, will have 
to provide interference protection to qualified Class A television 
stations. Therefore, potential bidders are encouraged to perform 
engineering studies to determine the existence of Class A television 
stations and their effect on the ability to operate any full power 
television station proposed in this auction.
    32. Potential bidders may research the Media Bureau's Consolidated 
Data Base System (CDBS) on the Internet in order

[[Page 76840]]

to determine which channels are licensed already to incumbent licensees 
or previously authorized to construction permittees, including 
information about the identity and location of Class A television 
stations. The Commission makes no representations or guarantees 
regarding the accuracy or completeness of information in its databases 
or any third party databases. To the extent the Commission's databases 
may not include all information deemed necessary or desirable by a 
bidder, bidders may obtain or verify such information from independent 
sources or assume the risk of any incompleteness or inaccuracy in said 
databases. Furthermore, the Commission makes no representations or 
guarantees regarding the accuracy or completeness of information that 
has been provided by incumbent licensees and incorporated into the 
database.
iv. Bidder Alerts
    33. As is the case with many business investment opportunities, 
some unscrupulous entrepreneurs may attempt to use Auction No. 64 to 
deceive and defraud unsuspecting investors. Information about deceptive 
telemarketing investment schemes is available from the Federal Trade 
Commission (FTC) at (202) 326-2222 and from the Securities and Exchange 
Commission (SEC) at (202) 942-7040. Complaints about specific deceptive 
telemarketing investment schemes should be directed to the FTC, the 
SEC, or the National Fraud Information Center at 800-876-7060.
v. National Environmental Policy Act Requirements
    34. Construction permittees or licensees must comply with the 
Commission's rules regarding implementation of the National 
Environmental Policy Act (NEPA). The construction of a broadcast 
facility is a Federal action and the construction permittee must comply 
with the Commission's NEPA rules for each such facility. The 
Commission's NEPA rules require, among other things, that the 
construction permittee consult with expert agencies having NEPA 
responsibilities, including the U.S. Fish and Wildlife Service, the 
State Historic Preservation Office, the U.S. Army Corps of Engineers 
and the Federal Emergency Management Agency (through the local 
authority with jurisdiction over floodplains). The construction 
permittee must prepare environmental assessments for broadcast 
facilities that may have a significant impact in or on wilderness 
areas, wildlife preserves, threatened or endangered species or 
designated critical habitats, historical or archaeological sites, 
Indian religious sites, floodplains, and surface features. The 
construction permittee also must prepare environmental assessments for 
facilities that include high intensity white lights in residential 
neighborhoods or excessive radio frequency emission.

C. Auction Specifics

i. Auction Date
    35. Bidding in this auction will begin on Wednesday, March 15, 
2006. The initial schedule for bidding will be announced by public 
notice at least one week before the start of the auction. Unless 
otherwise announced, bidding on all construction permits will be 
conducted on each business day until bidding has stopped on all 
construction permits.
ii. Auction Title
    36. Auction No. 64--Full Power Television.
iii. Bidding Methodology
    37. The bidding methodology for Auction No. 64 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--January 11, 2006
FCC Form 175 Filing Window Opens--January 11, 2006; 12 p.m. ET
FCC Form 175 Filing Window Deadline--January 20, 2006; 6 p.m. ET
Upfront Payments (via wire transfer)--February 17, 2006; 6 p.m. ET
Mock Auction--March 13, 2006
Auction Begins--March 15, 2006
v. Requirements for Participation
    38. Those wishing to participate in the auction must submit a 
short-form application (FCC Form 175) electronically prior to 6 p.m. 
ET, January 20, 2006, following the electronic filing procedures set 
forth in Attachment C of the Auction No. 64 Procedures Public Notice; 
submit a sufficient upfront payment and an FCC Remittance Advice Form 
(FCC Form 159) before 6:00 p.m. ET, February 17, 2006; and comply with 
all provisions outlined in this public notice and applicable Commission 
rules.
vi. General Contact Information
GENERAL AUCTION INFORMATION
    General Auction Questions
    Seminar Registration
    FCC Auctions Hotline, (888) 225-5322, option two; or (717) 338-2888
    Hours of service: 8 a.m.-5:30 p.m. ET, Monday through Friday
AUCTION LEGAL INFORMATION
    Auction Rules, Policies, Regulations
    Auctions and Spectrum Access Division
    (202) 418-0660
LICENSING INFORMATION
    Rules, Policies, Regulations
    Licensing Issues, Engineering Issues, Due Diligence, Incumbency 
Issues
    Video Division
    (202) 418-1600
TECHNICAL SUPPORT
    Electronic Filing
    FCC Auction System
    FCC Auctions Technical Support Hotline
    (877) 480-3201, option nine; or (202) 414-1250, (202) 414-1255 
(TTY)
    Hours of service: 8 a.m.--6 p.m. ET, Monday through Friday
PAYMENT INFORMATION
    Wire Transfers
    Refunds
    FCC Auctions Accounting Branch
    (202) 418-0578, (202) 418-2843 (Fax)
AUCTION BIDDER LINE
    Will be furnished only to qualified bidders
FCC COPY CONTRACTOR
    Additional Copies of
    Commission Documents
    Best Copy and Printing, Inc
    445 12th Street, SW., Room CY-B402, Washington, DC 20554, (800) 
378-3160, http://www.bcpiweb.com
PRESS INFORMATION
    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
ACCESSIBLE FORMATS
    Braille, large print, electronic files, or audio format for people 
with disabilities
    Consumer and Governmental Affairs Bureau
    (202) 418-0530 or (202) 418-0432 (TTY), [email protected]
FCC INTERNET SITES
    http://www.fcc.gov
    http://wireless.fcc.gov/auctions
    http://wireless.fcc.gov/uls
    http://www.fcc.gov/mb

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

    39. Entities seeking construction permits available in Auction No. 
64

[[Page 76841]]

must file electronically via the FCC Auction System an application to 
participate in an FCC auction, referred to as a short-form application 
or FCC Form 175, before 6 p.m. ET on January 20, 2006, following the 
procedures prescribed in Attachment C to the Auction No. 64 Procedures 
Public Notice. For Auction No. 64, 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 bear full responsibility for 
submission of accurate, complete and timely short-form applications. 
All applicants must certify on their short-form applications under 
penalty of perjury that they are legally, technically, financially and 
otherwise qualified to hold a license. Applicants should read carefully 
the instructions provided in Attachment C of the Auction No. 64 
Procedures Public Notice 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 short-form applications.
    40. An entity may not submit more than one short-form application 
in a single auction. In the event that a party submits multiple short-
form applications, such additional applications will be dismissed.
    41. Applicants also should note that submission of a short-form 
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.

A. New Entrant Bidding Credit

    42. The Commission adopted a tiered New Entrant Bidding Credit for 
broadcast auction applicants with no, or very few, other media 
interests. The determination of an auction applicant's eligibility for 
the New Entrant Bidding Credit considers the interests of the 
applicant, and of any individuals or entities with an attributable 
interest in the applicant, in other media of mass communications. The 
applicant's attributable interests shall be determined as of the short-
form application filing deadline, January 20, 2006. Thus, the 
applicant's maximum new entrant bidding credit eligibility will be 
determined as of the short-form application filing deadline. Any 
applicant intending to divest a media interest or make any other 
ownership changes, such as resignation of positional interests, in 
order to avoid attribution for purposes of qualifying for the New 
Entrant Bidding Credit must have consummated such divestment 
transactions or have completed such ownership changes by no later than 
the short-form filing deadline, January 20, 2006. An applicant cannot 
qualify for a bidding credit, nor upgrade a previously claimed bidding 
credit, based upon ownership or positional changes occurring after the 
short-form application filing deadline. Prospective applicants are 
reminded, moreover, that events occurring after the short-form filing 
deadline, such as the acquisition of attributable interests in media of 
mass communications, may cause diminishment or loss of the bidding 
credit, and must be reported immediately.
    43. Under traditional broadcast attribution rules, those entities 
or individuals with an attributable interest in an applicant include, 
all officers and directors of a corporate applicant; any owner of 5 
percent or more of the voting stock of a corporate applicant; all 
partners and limited partners of a partnership bidder, unless the 
limited partners are sufficiently insulated; and all members of a 
limited liability company, unless sufficiently insulated.
    44. In cases where an applicant's spouse or close family member 
holds other media interests, such interests are not automatically 
attributable to the applicant. The Commission decides attribution 
issues in this context based on certain factors traditionally 
considered relevant. Applicants should note that the mass media 
attribution rules were revised in 1999.
    45. Applicants also are reminded that, by the New Entrant Bidding 
Credit Reconsideration Order, the Commission further refined the 
eligibility standards for the New Entrant Bidding Credit, judging it 
appropriate to attribute the media interests held by very substantial 
investors in, or creditors of, an applicant claiming new entrant 
status. Specifically, the attributable mass media interests held by an 
individual or entity with an equity and/or debt interest in an 
applicant shall be attributed to that auction applicant for purposes of 
determining its eligibility for the New Entrant Bidding Credit, if the 
equity and debt interests, in the aggregate, exceed 33 percent of the 
total asset value of the applicant, even if such an interest is non-
voting.
    46. Generally, media interests will be attributable for purposes of 
the New Entrant Bidding Credit to the same extent that such other media 
interests are considered attributable for purposes of the broadcast 
multiple ownership rules. However, attributable interests held by a 
winning bidder in existing low power television, television translator 
or FM translator facilities will not be counted among the winning 
bidder's other mass media interests in determining its eligibility for 
a New Entrant Bidding Credit. A medium of mass communications is 
defined in 47 CFR 73.5008(b). Full service noncommercial educational 
stations, on both reserved and non-reserved channels, are included 
among media of mass communications as defined in 47 CFR 73.5008(b).

B. Application Requirements

    47. In addition to the ownership information required pursuant to 
47 CFR 1.2105 and 1.2112, applicants are required to establish on their 
short-form applications that they satisfy the eligibility requirements 
to qualify for a New Entrant Bidding Credit. In those cases where a New 
Entrant Bidding Credit is being sought, a certification under penalty 
of perjury must be provided in completing the applicant's short-form 
application. An applicant claiming that it qualifies for a 35 percent 
new entrant bidding credit must certify that neither it nor any of its 
attributable interest holders have any attributable interests in any 
other media of mass communications. An applicant claiming that it 
qualifies for a 25 percent new entrant bidding credit must certify that 
neither it nor any of its attributable interest holders have any 
attributable interests in more than three media of mass communications, 
and must identify and describe such media of mass communications.
i. Bidding Credits
    48. Applicants that qualify for the New Entrant Bidding Credit, as 
specified in the applicable rule, are eligible for a bidding credit 
that represents the amount by which a bidder's winning bid is 
discounted. The size of a New Entrant Bidding Credit depends on the 
number of ownership interests in other media of mass communications 
that are attributable to the bidder-entity and its attributable 
interest-holders. A 35 percent bidding credit will be given to a 
winning bidder if it, and/or any individual or entity with an 
attributable interest in the winning bidder, has no attributable 
interest in any other media of mass communications, as defined in 47 
CFR

[[Page 76842]]

73.5008. A 25 percent bidding credit will be given to a winning bidder 
if it, and/or any individual or entity with an attributable interest in 
the winning bidder, has an attributable interest in no more than three 
mass media facilities, as defined in 47 CFR 73.5008. No bidding credit 
will be given if any of the commonly owned mass media facilities serve 
the same area as the proposed broadcast station, as defined in 47 CFR 
73.5007(b), or if the winning bidder, and/or any individual or entity 
with an attributable interest in the winning bidder, has attributable 
interests in more than three mass media facilities.
    49. Bidding credits are not cumulative; qualifying applicants 
receive either the 25 percent or the 35 percent bidding credit, but not 
both. Attributable interests are defined in 47 CFR 73.3555 and Note 2 
of that section.
ii. Unjust Enrichment
    50. Applicants should note that unjust enrichment provisions apply 
to a winning bidder that utilizes a bidding credit and subsequently 
seeks to assign or transfer control of its license or construction 
permit to an entity not qualifying for the same level of bidding 
credit.

C. Permit Selection

    51. There is no opportunity to change construction permit selection 
after the short-form filing deadline. It is critically important that 
each applicant confirms its construction permit selection because the 
FCC Auction System will not accept bids on construction permits that an 
applicant has not selected on its short-form application. In addition, 
prospective applicants should note that participation in competitive 
bidding for a construction permit for station TV-NTS011-51 (closed 
permit) will be limited to those applicants identified under the closed 
construction permit in Attachment A of the Auction No. 64 Procedures 
Public Notice, provided such parties submit an acceptable short-form 
application pursuant to the Commission's rules and procedures described 
in the Auction No. 64 Procedures Public Notice.

D. Consortia and Joint Bidding Arrangements

    52. 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 construction permits on which they will 
or will not bid. Applicants also will be required to identify on their 
short-form applications any parties with whom they have entered into 
any consortium arrangements, joint ventures, partnerships or other 
agreements or understandings that relate in any way to the construction 
permits 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 application 
filing deadline, it would not include the names of parties to the 
discussions on its applications and may not continue such discussions 
with applicants for the same construction permit after the deadline.
    53. 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 construction permits in the same market 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. Such subject areas include, but are not limited to, issues 
such as management, sales, local marketing agreements, rebroadcast 
agreements, and other transactional agreements.

E. Ownership Disclosure Requirements

    54. The Commission specified in the Broadcast Competitive Bidding 
First Report and Order that, for purposes of determining eligibility to 
participate in a broadcast auction, the uniform Part 1 ownership 
disclosure standards would apply. Therefore, all applicants must comply 
with the uniform Part 1 ownership disclosure standards and provide 
information required by 47 CFR 1.2105 and 1.2112. Specifically, in 
completing the short-form application, 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 application are prescribed in 47 CFR 
1.2105 and 1.2112. Each applicant is responsible for information 
submitted in its short-form application being complete and accurate.
    55. To simplify filling out its short-form application, an 
applicant's most current ownership information on file with the 
Commission in an electronic format compatible with the short-form 
application, such as information submitted in an on-line FCC Form 602 
in connection with wireless services or in a short-form application 
filed for a previous auction, will be entered automatically into the 
applicant's short-form application for Auction No. 64. An applicant 
should review carefully any information automatically entered to 
confirm that it is complete and accurate as of the deadline for filing 
the short-form application. Applicants can update any information that 
needs to be changed directly in the short-form application.

F. Provisions Regarding Former and Current Defaulters

    56. Each applicant in Auction No. 64 must state under penalty of 
perjury on its short-form application whether or not the applicant, its 
affiliates, its controlling interests, or any affiliate of its 
controlling interests, have ever been in default on any Commission 
construction permit or license 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 short-form application that the 
applicant, its affiliates, its controlling interests, and the 
affiliates of its controlling interests, as of the filing deadline for 
applications to participate in a specific auction, are not in default 
on any payment for a Commission construction permit or license 
(including a down payment) and that they are not delinquent on any non-
tax debt owed to any Federal agency. Affiliates and controlling 
interests are defined in 47 CFR 1.2110. 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.
    57. Former defaulters--i.e., applicants, including any of its 
affiliates, any of its controlling interests, or any of the affiliates 
of its controlling interests, that in the past have defaulted on any 
Commission construction permit or license 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

[[Page 76843]]

outstanding non-tax delinquencies--are eligible to bid in Auction No. 
64, provided that they are otherwise qualified. However, former 
defaulters are required pursuant to 47 CFR 1.2106(a) to pay upfront 
payments that are fifty percent more than the normal upfront payment 
amounts.
    58. In contrast, an applicant is not eligible to participate in 
competitive bidding in Auction No. 64 if the applicant, any of its 
affiliates, any of its controlling interests, or any of the affiliates 
of its controlling interests, is in default on any payment for any 
Commission construction permit or license (including a down payment) or 
is delinquent on any non-tax debt owed to any Federal agency as of the 
filing deadline for applications to participate in this auction.
    59. Applicants are encouraged to review the Wireless 
Telecommunications Bureau's previous guidance on default and 
delinquency disclosure requirements in the context of the auction 
short-form application process. For example, it has been determined 
that to the extent that Commission rules permit late payment of 
regulatory or application fees accompanied by late fees, such debts 
will become delinquent for purposes of 47 CFR 1.2105(a) and 1.2106(a) 
only after the expiration of a final payment deadline. Therefore, with 
respect to regulatory or application fees, the sanctions 47 CFR 
1.2105(a) and 1.2106(a) impose with respect to competitive bidding are 
limited to circumstances in which the relevant party has not complied 
with a final Commission payment deadline.
    60. The Commission considers outstanding debts owed to the United 
States Government, in any amount, to be a serious matter. The 
Commission adopted rules, including a provision referred to as the red 
light rule, that implement the Commission's obligations under the Debt 
Collection Improvement Act of 1996, which governs the collection of 
claims owed to the United States. Under the red light rule, the 
Commission will not process applications and other requests for 
benefits filed by parties that have outstanding debts owed to the 
Commission. In the same rulemaking order, the Commission explicitly 
declared, however, that the Commission's competitive bidding rules are 
not affected by the red light rule. As a consequence, the Commission's 
adoption of the red light rule does not alter the applicability of any 
of the Commission's competitive bidding rules, including the provisions 
and certifications of 47 CFR 1.2105 and 1.2106, with regard to current 
and former defaults or delinquencies. Applicants are reminded, however, 
that the Commission's Red Light Display System, which provides 
information regarding debts owed to the Commission, may not be 
determinative of an auction applicant's ability to comply with the 
default and delinquency disclosure requirements of 47 CFR 1.2105. Thus, 
while the red light rule may ultimately prevent the processing of long-
form applications by auction winners, an auction applicant's red light 
status is not necessarily determinative of its eligibility to 
participate in this auction or to its upfront payment obligation.
    61. Prospective applicants in Auction No. 64 should note that any 
long-form applications filed after the close of competitive bidding 
will be reviewed for compliance with the Commission's red light rule, 
and such review may result in the dismissal of a winning bidder's long-
form application.

G. Other Information

    62. Applicants owned by minorities or women, as defined in 47 CFR 
1.2110(c)(2), may identify themselves in filling out their short-form 
applications 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.

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

    63. Following the deadline for filing short-form applications on 
January 20, 2006, applicants in Auction No. 64 are permitted to make 
only minor changes to their applications. As explained in 47 CFR 
1.2105, applicants are not permitted to make major modifications to 
their applications (e.g., change their construction permit selections, 
change control of the applicant, increase a previously claimed bidding 
credit, or change their self-identification as a noncommercial 
educational entity). Permissible minor changes include, for example, 
deletion and addition of authorized bidders (to a maximum of three) and 
revision of addresses and telephone numbers of the applicants and their 
contact persons.
    64. Any application amendment and related statements of fact must 
be certified by: (1) The applicant, if the applicant is an individual, 
(2) one of the partners if the applicant is a partnership, (3) by an 
officer, director, or duly authorized employee, if the applicant is a 
corporation, (4) by a member who is an officer, if the applicant is an 
unincorporated association, (5) by the trustee if the applicant is an 
amateur radio service club, or (6) a duly elected or appointed official 
who is authorized to do so under the laws of the applicable 
jurisdiction, if the applicant is a governmental entity.
    65. An applicant must make permissible minor changes to its short-
form application, as defined by 47 CFR 1.2105(b), on-line. 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.
    66. In addition, applicants must submit a letter, briefly 
summarizing the changes by electronic mail to the attention of Margaret 
Wiener, Chief, Auctions and Spectrum Access Division, at the following 
address: [email protected]. The electronic mail summarizing the changes 
must include a subject or caption referring to Auction No. 64 and the 
name of the applicant.

I. Maintaining the Accuracy of Short-Form Application Information

    67. Each applicant must maintain the accuracy and completeness of 
information furnished in its pending application and notify the 
Commission within 30 days of any substantial change that may be of 
decisional significance to that application as specified in 47 CFR 
1.65. Changes that cause a loss of or reduction in eligibility for a 
new entrant bidding credit must be reported immediately. For example, 
if ownership changes result in the attribution of new interest holders 
that affect the applicant's qualifications for a new entrant bidding 
credit, such information must be clearly stated in the applicant's 
notification. If an amendment reporting substantial changes is a major 
amendment as defined by 47 CFR 1.2105, the major amendment will not be 
accepted and may result in the dismissal of the short-form application.
    68. Applicants must report 47 CFR 1.65 modifications to their FCC 
Form 175 by electronic mail and submit a letter briefly summarizing the 
changes to the attention of Margaret Wiener, Chief, Auctions and 
Spectrum Access Division, at the following address: [email protected]. 
The electronic mail summarizing the changes must include a subject or 
caption referring to Auction No. 64 and the name of the applicant.

[[Page 76844]]

III. Pre-Auction Procedures

A. Auction Seminar--January 11, 2006

    69. On Wednesday, January 11, 2006, the FCC will sponsor a seminar 
for parties interested in participating in Auction No. 64 at the 
Federal Communications Commission headquarters, located at 445 12th 
Street, SW., Washington, DC. The seminar will provide attendees with 
information about pre-auction procedures, completing the FCC Form 175, 
auction conduct, the FCC Auction System, auction rules, and the full 
power television broadcast service rules. The seminar will also provide 
an opportunity for prospective bidders to ask questions of FCC staff.
    70. To register, complete the registration form, Attachment B of 
the Auction No. 64 Procedures Public Notice, and submit it by Monday, 
January 9, 2006. Registrations are accepted on a first-come, first-
served basis. The seminar is free of charge.
    71. For individuals who are unable to attend, an Audio/Video of 
this seminar will be available via Webcast from the FCC's Auction 64 
Web page at http://wireless.fcc.gov/auctions/64/. Select the Auction 
Seminar link.

B. Short-Form Application (FCC Form 175)--Due Before 6 p.m. ET on 
January 20, 2006

    72. In order to be eligible to bid in this auction, applicants must 
first submit an FCC Form 175 application electronically via the FCC 
Auction System. This application must be submitted electronically and 
received at the Commission prior to 6 p.m. ET on January 20, 2006. Late 
applications will not be accepted. There is no application fee required 
when filing FCC Form 175. However, to be eligible to bid, an applicant 
must submit an upfront payment.
    73. Applications generally may be filed at any time beginning at 
noon ET on January 11, 2006, until 6 p.m. ET on January 20, 2006. 
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 January 20, 2006.
    74. Applicants must always click on the SUBMIT button on the 
Certify and Submit screen of the electronic form to successfully submit 
their FCC Forms 175 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. 64 Procedures Public Notice.

C. Application Processing and Minor Corrections

    75. 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.
    76. Non-mutually exclusive applications will be listed in a 
subsequent public notice to be released by the Bureaus. Such 
applications will not proceed to auction, but will proceed in 
accordance with instructions set forth in the subsequent public notice. 
All mutually exclusive applications will be considered under the 
relevant procedures for conflict resolution. Mutually exclusive 
commercial applications will proceed to auction. However, any 
applications for non-commercial educational full power television 
stations on non-reserved spectrum that are mutually exclusive with any 
applications specifying commercial facilities will be returned as 
unacceptable for filing pursuant to 47 CFR 73.5002(b).
    77. As described more fully in the Commission's rules, after the 
short-form filing deadline on January 20, 2006, 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 construction permit selections, change control of 
the applicant, increase a previously claimed bidding credit, or change 
their self-identification as non-commercial educational (NCE)).

D. Upfront Payments--Due February 17, 2006

    78. 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 sent by facsimile to Mellon Bank in Pittsburgh, PA. All upfront 
payments must be received in the proper account at Mellon Bank before 6 
p.m. ET on February 17, 2006.
i. Making Auction Payments by Wire Transfer
    79. Wire transfer payments must be received before 6 p.m. ET on 
February 17, 2006. To avoid untimely payments, applicants should 
discuss arrangements (including bank closing schedules) with their 
banker several days before they plan to make the wire transfer, and 
allow sufficient time for the transfer to be initiated and completed 
before the deadline. The specific information needed to make the 
required wire transfer payment is provided in the Auction No. 64 
Procedures Public Notice.
    80. At least one hour before placing the order for the wire 
transfer (but on the same business day), applicants must send by 
facsimile a completed FCC Form 159 (Revised 2/03) to Mellon Bank at 
(412) 209-6045. On the cover sheet of the facsimile, write ``Wire 
Transfer--Auction Payment for Auction No. 64.'' In order to meet the 
Commission's upfront payment deadline, an applicant's payment must be 
credited to the Commission's account before 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.
    81. All payments must be made in U.S. dollars and by wire transfer. 
Upfront payments for Auction No. 64 go to a lockbox number different 
from the lockboxes used in previous FCC auctions, and different from 
the lockbox number to be used for post-auction payments. Failure to 
deliver the upfront payment by the specified deadline on February 17, 
2006, will result in dismissal of the application and disqualification 
from participation in the auction.
ii. FCC Form 159
    82. A completed FCC Remittance Advice Form (FCC Form 159) must be 
sent by facsimile to Mellon Bank to accompany each upfront payment. 
Proper completion of the FCC Form 159 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. 64 
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

[[Page 76845]]

electronically, but must be filed with Mellon Bank via facsimile.
iii. Amount of Upfront Payment
    83. In the Auction No. 64 Comment Public Notice, the Bureaus 
proposed that the amount of the upfront payment would determine a 
bidder's initial bidding eligibility, the maximum number of bidding 
units on which a bidder may place bids. In order to bid on a 
construction permit, an otherwise qualified bidder that applied for 
that construction permit on its FCC Form 175, must have a current 
eligibility level that meets or exceeds the number of bidding units 
assigned to that construction permit. At a minimum, therefore, an 
applicant's total upfront payment must be enough to establish 
eligibility to bid on at least one of the construction permits selected 
on its FCC 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 construction permits for which the 
applicant has applied on FCC Form 175, but rather to cover the number 
of bidding units that are associated with construction permits on which 
the bidder wishes to place bids and hold provisionally winning bids at 
any given time. (Provisionally winning bids are bids that would become 
winning bids if the auction were to close after the given round.)
    84. In the Auction No. 64 Comment Public Notice, the Bureaus 
proposed upfront payments for each construction permit. The specific 
upfront payment and bidding units for each construction permit are 
specified in Attachment A of the Auction No. 64 Procedures Public 
Notice.
    85. In calculating its upfront payment amount, an applicant should 
determine the maximum number of bidding units on which it may wish to 
be active (bid or hold provisionally winning bids) in any single round, 
and submit an upfront payment amount covering that number of bidding 
units. In order to make this calculation, an applicant should add 
together the upfront payments for all construction permits on which it 
seeks to be active in any given round. Applicants should check their 
calculations carefully, as there is no provision for increasing a 
bidder's eligibility after the upfront payment deadline. Information 
about an upfront payment calculation, including an example, is provided 
in the Auction No. 64 Procedures Public Notice.
    86. In the Fifth Report and Order, 65 FR 52323 (August 29, 2000), 
the Commission specified that an applicant be required to make upfront 
payments 50 percent greater than the amount set for each construction 
permit or license if the applicant ever has been in default on any 
Commission construction permit or license or ever has been delinquent 
on any non-tax debt owed to any Federal agency. For purposes of this 
calculation, the applicant includes the applicant itself, its 
affiliates, its controlling interests, and affiliates of its 
controlling interests, as defined by 47 CFR 1.2110.
    87. Pursuant to 47 CFR 1.2106(a), former defaulters should 
calculate their upfront payment for all construction permits by 
multiplying the number of bidding units on which they wish to be active 
by 1.5. In order to calculate the number of bidding units to assign to 
former defaulters, the Commission will divide the upfront payment 
received by 1.5 and round the result up to the nearest bidding unit. If 
a former defaulter fails to submit a sufficient upfront payment to 
establish eligibility to bid on at least one of the construction 
permits for which the applicant has applied on its FCC 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
    88. The Commission will use wire transfers for all Auction No. 64 
refunds. To ensure that refunds of upfront payments are processed in an 
expeditious manner, the Commission is requesting that all pertinent 
information specified in the Auction No. 64 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 also can be 
manually sent by facsimile to the FCC, Financial Operations Center, 
Auctions Accounting Group, Attention: Gail Glasser, at (202) 418-2843. 
All refunds will be returned to the payor of record as identified on 
the FCC Form 159, unless the payor submits written authorization 
instructing otherwise. Applicants should note that implementation of 
the Debt Collection Improvement Act of 1996 requires the FCC to obtain 
a Taxpayer Identification Number (TIN) before it can disburse refunds.

E. Auction Registration

    89. 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 
construction permits for which they applied.
    90. 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.
    91. 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, March 9, 2006, 
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.
    92. 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.

F. Remote Electronic Bidding

    93. 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. 64.

G. Mock Auction--March 13, 2006

    94. All qualified bidders will be eligible to participate in a mock 
auction on Monday, March 13, 2006. The mock

[[Page 76846]]

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

    95. The first round of bidding for Auction No. 64 will begin on 
Wednesday, March 15, 2006. The initial bidding schedule will be 
announced in a public notice listing the qualified bidders, which is 
released approximately 10 days before the start of the auction.

A. Auction Structure

i. Simultaneous Multiple Round Auction
    96. Auction No. 64 will be conducted using a simultaneous multiple 
round auction. Unless otherwise announced, bids will be accepted from 
eligible qualified bidders on all construction permits in each round of 
the auction.
ii. Eligibility and Activity Rules
    97. The amount of the upfront payment submitted by a bidder 
determines a bidder's initial bidding eligibility, the maximum number 
of bidding units on which a bidder may be active. Each construction 
permit is assigned a specific number of bidding units equal to the 
upfront payment listed in Attachment A of the Auction No. 64 Procedures 
Public Notice on a bidding unit per dollar basis. Bidding units for a 
given construction permit do not change as prices rise during the 
auction. A bidder's upfront payment is not attributed to specific 
construction permits. Rather, a bidder may place bids on any 
combination of construction permits selected on its FCC Form 175 as 
long as the total number of bidding units associated with those 
construction permits does not exceed its current eligibility. 
Eligibility cannot be increased during the auction; it can only remain 
the same or decrease. Thus, in calculating its upfront payment amount, 
an applicant must determine the maximum number of bidding units on 
which it may wish to bid or hold provisionally winning bids 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 for any given construction permit.
    98. 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.
    99. A bidder's activity level in a round is the sum of the bidding 
units associated with construction permits on which the bidder is 
active. In Auction No. 64, a bidder will be considered active on a 
construction permit in the current round if it is either the 
provisionally winning bidder at the end of the previous bidding round, 
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.
iii. Auction Stages
    100. Auction No. 64 will be conducted in two stages and employ an 
activity rule.
    Stage One: During the first stage of the auction, a bidder desiring 
to maintain its current bidding eligibility will be required to be 
active on construction permits representing at least 75 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 four-thirds (4/3).
    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).
    101. The Bureaus, however, reserve the discretion to further alter 
the activity percentages before and/or during the auction.
iv. Stage Transitions
    102. 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 construction permits being auctioned (as measured in bidding 
units). In addition, the Bureaus will retain the discretion to regulate 
the pace of the auction by announcement.
v. Activity Rule Waivers and Reducing Eligibility
    103. Bidders may use an activity rule waiver in any round during 
the course of the auction. Use of an activity rule waiver preserves the 
bidder's current bidding eligibility despite the bidder's activity in 
the current round being below the required minimum activity level. An 
activity rule waiver applies to an entire round of bidding and not to a 
particular construction permit. Activity rule waivers can be either 
applied proactively by the bidder (known as a proactive waiver) or 
applied automatically by the FCC Auction System (known as an automatic 
waiver) and are principally a mechanism for auction participants to 
avoid the loss of bidding eligibility in the event that exigent 
circumstances prevent them from placing a bid in a particular round.
    104. The FCC Auction System assumes that bidders with insufficient 
activity would prefer to apply an activity rule waiver (if available) 
rather than lose bidding eligibility. Therefore, the system will 
automatically apply a waiver at the end of any round where a bidder's 
activity level is below the minimum required unless: (1) There are no 
activity rule waivers available; or (2) the bidder overrides the 
automatic application of a waiver by reducing eligibility, thereby 
meeting the minimum requirements. If a bidder has no waivers remaining 
and does not satisfy the required activity level, the eligibility will 
be permanently reduced, possibly curtailing the bidder's ability to bid 
on some construction permit(s) or eliminating the bidder from further 
bidding in the auction.
    105. 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.
    106. 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

[[Page 76847]]

apply waiver function in the FCC Auction System) during a bidding round 
in which no bids 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 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
    107. Auction No. 64 will begin under the simultaneous stopping rule 
approach, and the Bureaus will retain the discretion to invoke the 
other versions of the stopping rule. Under a modified version of the 
simultaneous stopping rule the auction for all construction permits 
would close after the first round in which no bidder applies a waiver 
or submits any new bids on any construction permit on which it is not 
the provisionally winning bidder. Thus, absent any other bidding 
activity, a bidder placing a new bid on a construction permit for which 
it is the provisionally winning bidder would not keep the auction open 
under this modified stopping rule.
    108. The Bureaus retain the discretion to keep the auction open 
even if no new bids or proactive waivers are submitted 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.
    109. In addition, the Bureaus reserve the right to declare that the 
auction will end after a specified number of additional rounds (special 
stopping rule). If the Bureaus invoke this special stopping rule, bids 
will be accepted in the specified final round(s) and the auction will 
close.
    110. The Bureaus propose to exercise these options only in certain 
circumstances, such as, where the auction is proceeding very slowly, 
where there is minimal overall bidding activity, or where it appears 
likely that the auction will not close within a reasonable period of 
time. Before exercising these options, the Bureaus are likely to 
attempt to increase the pace of the auction by, for example, increasing 
the number of bidding rounds per day, and/or increasing the amount of 
the minimum bid increments for the limited number of construction 
permits where there is still a high level of bidding activity.
vii. Auction Delay, Suspension, or Cancellation
    111. By public notice or by announcement during the auction, the 
Bureaus may delay, suspend, or cancel the auction in the event of 
natural disaster, technical obstacle, evidence of an auction security 
breach, unlawful bidding activity, administrative or weather necessity, 
or for any other reason that affects the fair and competitive conduct 
of competitive bidding. In such cases, the Bureaus, in their sole 
discretion, may elect to resume the auction starting from the beginning 
of the current round, resume the auction starting from some previous 
round, or cancel the auction in its entirety. Network interruption may 
cause the Bureaus to delay or suspend the auction. The Bureaus 
emphasize that exercise of this authority is solely within the 
discretion of the Bureaus, and its use is not intended to be a 
substitute for situations in which bidders may wish to apply their 
activity rule waivers.

B. Bidding Procedures

i. Round Structure
    112. 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 following by the release of round results. Multiple bidding 
rounds may be conducted on any given day. Details regarding round 
results formats and locations also will be included in a future public 
notice.
    113. The FCC has discretion to change the bidding schedule in order 
to foster an auction pace that reasonably balances speed with the 
bidders' need to study round results and adjust their bidding 
strategies. The Bureaus may increase or decrease the amount of time for 
the bidding rounds and review periods, or the number of rounds per day, 
depending upon the bidding activity level and other factors.
ii. Reserve Price or Minimum Opening Bid
    114. The specific minimum opening bid amounts for each construction 
permit available in Auction No. 64 are specified in Attachment A of the 
Auction No. 64 Procedures Public Notice. The minimum opening bid 
amounts adopted for Auction No. 64 are reducible at the discretion of 
the Bureaus. The Bureaus emphasize, however, that such discretion will 
be exercised, if at all, sparingly and early in the auction, i.e., 
before bidders lose all waivers and begin to lose substantial 
eligibility. During the course of the auction, the Bureaus will not 
entertain requests to reduce the minimum opening bid amount on specific 
construction permits.
iii. Bid Amounts
    115. In each round, each eligible bidder will be able to place a 
bid on a particular construction permit for which it applied in any of 
nine different amounts. The FCC Auction System will list the nine bid 
amounts for each construction permit. The nine bid amounts for each 
construction permit consist of the minimum acceptable bid amount 
calculated using a smoothing formula and additional amounts calculated 
using a bid increment percentage.
a. Minimum Acceptable Bid Amounts
    116. After there is a provisionally winning bid for a construction 
permit, the minimum acceptable bid amount for that construction permit 
will be equal to the amount of the provisionally winning bid plus an 
additional amount calculated using a smoothing formula. The smoothing 
formula calculates minimum acceptable bid amounts by first calculating 
a percentage increment. The percentage increment for each construction 
permit is a function of bidding activity on that construction permit in 
prior rounds; therefore, a construction permit that has received many 
bids will have a higher percentage increment than a construction permit 
that has received few bids. This allows the minimum acceptable bid 
amounts to be tailored to the activity on a construction permit, 
decreasing the number of rounds it takes for construction permits 
receiving many bids to reach their final prices. Smoothing formula 
equations and examples are shown in Attachment E of the Auction No. 64 
Procedures Public Notice.
    117. The calculation of the percentage increment used to determine 
the minimum acceptable bid amounts for each construction permit for the 
next round is made at the end of each round. The computation is based 
on an activity index, which is a weighted average of the number of bids 
in that round and the activity index from the prior round (except for 
round 1 when the activity index from the prior round is set at 0). The 
current activity index is equal to a weighting factor times the number 
of bidders that submit bids on the construction permit in the most 
recent bidding round plus one minus the weighting factor times the 
activity index from the prior round. The activity index is then used to 
calculate a percentage

[[Page 76848]]

increment by multiplying a minimum percentage increment by one plus the 
activity index with that result being subject to a maximum percentage 
increment. The weighting factor initially will be set at 0.5, the 
minimum percentage increment at 0.1 (10%), and the maximum percentage 
increment at 0.2 (20%). Hence, at these initial settings, the 
percentage increment will fluctuate between 10% and 20% depending upon 
the number of bids for the construction permit. The Bureaus will round 
the result using our standard rounding procedures.
    118. The minimum acceptable bid amount for a construction permit 
will be equal to its minimum opening bid amount until there is a 
provisionally winning bid for the construction permit. After there is a 
provisionally winning bid for a construction permit, the minimum 
acceptable bid amount for that construction permit will be equal to the 
amount of the provisionally winning bid plus an additional amount. 
Using the smoothing formula, the FCC Auction System will calculate a 
percentage increment at the end of each round to determine the minimum 
acceptable bid amount for each construction permit for the next round.
b. Additional Bid Amounts
    119. The acceptable bid amounts in addition to the minimum 
acceptable bid amount for each construction permit are calculated using 
a bid increment percentage. The first additional acceptable bid amount 
equals the minimum acceptable bid amount times one plus the bid 
increment percentage, rounded--e.g., if the increment percentage is 10 
percent, the calculation is (minimum acceptable bid amount) * (1 + 
0.10), rounded, or (minimum acceptable bid amount) * 1.10, rounded; the 
second additional acceptable bid amount equals the minimum acceptable 
bid amount times one plus two times the bid increment percentage, 
rounded, or (minimum acceptable bid amount) * 1.20, rounded; the third 
additional acceptable bid amount equals the minimum acceptable bid 
amount times one plus three times the bid increment percentage, 
rounded, or (minimum acceptable bid amount) * 1.30, rounded; etc. The 
Bureaus will begin the auction with a bid increment percentage of 10 
percent.
    120. The Bureaus retain the discretion to change the minimum 
acceptable bid amounts, the smoothing formula parameters, and the bid 
increment percentage if they determine that circumstances so dictate. 
The Bureaus will do so by announcement in the FCC Auction System. The 
Bureaus also may use their discretion to change the minimum acceptable 
bid amounts, the smoothing formula parameters, and the bid increment 
percentage without prior notice if circumstances warrant.
iv. Provisionally Winning Bids
    121. At the end of each bidding round, a provisionally winning bid 
will be determined based on the highest bid amount received for each 
construction permit. A provisionally winning bid will remain the 
provisionally winning bid until there is a higher bid on the same 
construction permit at the close of a subsequent round. 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.
    122. A pseudo-random number generator based on the L'Ecuyer 
algorithms will be used to assign a random number to each bid and to 
break tied bids. 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. In Auction No. 64, if no bidder submits a higher bid 
in subsequent rounds, the provisionally winning bid from the previous 
round will win the construction permit. If any bids are received on the 
construction permit in a subsequent round, the provisionally winning 
bid will once again be determined based on the highest bid amount 
received for the construction permit.
v. Bidding
    123. During a round in Auction No. 64, a bidder may submit bids for 
as many construction permits as it wishes (subject to its eligibility), 
remove bids placed in the current bidding round, or permanently reduce 
eligibility. In Auction No. 64, bidders also have the option of 
submitting and removing multiple bids during a round. If a bidder 
submits multiple bids for a single construction permit in the same 
round, the system takes the last bid entered as that bidder's bid for 
the round. Bidders in Auction No. 64 should note that the bidding units 
associated with construction permits for which the bidder has removed 
its bid do not count towards the bidder's current activity.
    124. 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. 64. 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.
    125. A bidder's ability to bid on specific construction permits in 
the first round of the auction is determined by two factors: (1) The 
construction permits for which the applicant applied in its FCC Form 
175 and (2) the bidder's upfront payment amount. The bid submission 
screens will allow bidders to submit bids only on those construction 
permits for which the bidder applied on its FCC Form 175.
    126. 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.
    127. If the bidder has sufficient eligibility to place a bid on 
that construction permit, an eligible bidder will be able in each round 
to place bids on a given construction permit in any of nine different 
amounts. For each construction permit, 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.
    128. Until a bid has been placed on a construction permit, the 
minimum acceptable bid amount for that construction permit will be 
equal to its minimum opening bid amount. Once there is a provisionally 
winning bid on a construction permit, the FCC Auction System will 
calculate a minimum acceptable bid amount for that construction permit 
for the following round.
vi. Bid Removal
    129. 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. After a round closes, 
a bidder may no longer remove a bid. Removing a bid will affect a 
bidder's activity for the round in

[[Page 76849]]

which it is removed, i.e., a bid that is removed does not count toward 
bidding activity.
vii. Bid Withdrawal
    130. For Auction No. 64, bidders will not be permitted to withdraw 
any bid after the close of the round in which the bid was submitted.

V. Post-Auction Procedures

A. Down Payments

    131. After bidding has ended, the Commission will issue a public 
notice declaring the auction closed and identifying winning bidders, 
down payments, and final payments due. 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. 64 
to 20 percent of the net amount of its winning bids (gross bids less 
any applicable new entrant bidding credits).

B. Final Payments

    132. Absent a change to the existing payment rules applicable to 
broadcast permits won at auction, if a winning bidder's long-form 
application is uncontested, after the termination of the pleading cycle 
for petitions to deny, the Commission will issue a public notice 
announcing that it is prepared to grant the winning bidder's long-form 
application. If a petition to deny is filed within the pleading cycle 
for petitions to deny, and if the petition to deny is dismissed or 
denied, the Commission will issue a public notice announcing that it is 
prepared to grant the winning bidder's long-form application promptly 
after the Media Bureau disposes of any such petition to deny and is 
otherwise satisfied that the applicant is qualified to hold the 
specified construction permit. Within ten (10) business days after the 
date of the release of the public notice announcing that the Commission 
is prepared to grant a winning bidder's long-form application, each 
winning bidder will be required to submit the balance of the net amount 
of its winning bids (gross bids less any applicable new entrant bidding 
credits). Broadcast construction permits will be granted only after the 
full and timely payment of winning bids and any applicable late fees, 
in accordance with 47 CFR 1.2109(a).

C. Long-Form Applications

    133. Within thirty days after the release of the auction closing 
notice, winning bidders must submit electronically a properly completed 
long-form application (FCC Form 301), and required exhibits, for each 
construction permit won through Auction No. 64. A winning bidder 
claiming new entrant status must include an exhibit demonstrating its 
eligibility for the bidding credit. Further filing instructions will be 
provided to auction winners at the close of the auction.

D. Default and Disqualification

    134. 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 timely a long-
form application, fails to make full payment, or is otherwise 
disqualified) will be subject to the payments described in 47 CFR 
1.2104(g)(2). In such event, the Commission may re-auction the 
construction permit or offer it to the next highest bidder (in 
descending order) at its final bid amount. 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 or construction permits held by the 
applicant.

E. Refund of Remaining Upfront Payment Balance

    135. All applicants that submit upfront payments but are not 
winning bidders for a construction permit in Auction No. 64 may be 
entitled to a refund of their remaining upfront payment balance after 
the conclusion of the auction. In Auction No. 64, no refund will be 
made unless there are excess funds on deposit from the applicant. All 
refunds will be returned to the payor of record, as identified on the 
FCC Form 159, unless the payor submits written authorization 
instructing otherwise.
    136. 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 and have no remaining bidding eligibility must submit a 
written refund request. If the applicant has completed the refund 
instructions electronically, then only a written request for the refund 
is necessary. If not, the request also must 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.

Federal Communications Commission.
William Huber,
Associate Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. E5-7872 Filed 12-27-05; 8:45 am]
BILLING CODE 6712-01-P