[Federal Register Volume 76, Number 73 (Friday, April 15, 2011)]
[Notices]
[Pages 21350-21366]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-9200]


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FEDERAL COMMUNICATIONS COMMISSION

[AU Docket No. 10-248; DA 11-420]


Auction of 700 MHz Band Licenses Scheduled for July 19, 2011; 
Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments, 
and Other Procedures for Auction 92

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 16 licenses in the 698-806 MHz band 
(700 MHz band), designated as Auction 92, and is intended to 
familiarize prospective bidders with these procedures, minimum opening 
bid amounts, and deadlines for the auction.

DATES: Applications to participate in Auction 92 and required upfront 
payments must be filed prior to 6:00 p.m. Eastern Time (ET) on May 11, 
2011. Bidding for construction permits in Auction 92 is scheduled to 
begin on July 19, 2011.

FOR FURTHER INFORMATION CONTACT: Wireless Telecommunications Bureau, 
Auctions and Spectrum Access Division: For legal questions: Lynne Milne 
at (202) 418-0660. Mobility Division: For service rules and licensing 
issues: Michael Connelly (legal) or Keith Harper (technical) at (202) 
418-0620. To request materials in accessible formats (Braille, large 
print, electronic files or audio format) for people with disabilities, 
send an e-mail to [email protected] or call the Consumer and Governmental 
Affairs Bureau at (202) 418-0530 or (202) 418-0432 (TTY).

SUPPLEMENTARY INFORMATION: This is a summary of the Auction 92 
Procedures Public Notice which was released on March 16, 2011. The 
complete text of the Auction 92 Procedures Public Notice, including 
attachments, as well as related Commission documents, are available for 
public inspection and copying from 8 a.m. to 4:30 p.m. ET Monday 
through Thursday and from 8 a.m. to 11:30 a.m. ET on Friday in the FCC 
Reference Information Center, 445 12th Street, SW., Room CY-A257, 
Washington, DC 20554. The Auction 92 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

[[Page 21351]]

Web site: http://www.BCPIWEB.com, using document number DA 11-420 for 
the Auction 92 Procedures Public Notice. The Auction 92 Procedures 
Public Notice and related documents are also available on the Internet 
at the Commission's Web site: http://wireless.fcc.gov/auctions/92/.

I. General Information

A. Introduction

    On December 15, 2010, the Wireless Telecommunications Bureau 
(Bureau) released a public notice seeking comment on competitive 
bidding procedures to be used in Auction 92. A summary of this public 
notice was published in the Federal Register on January 7, 2011, 76 FR 
1158. One party submitted comments in response to the Auction 92 
Comment Public Notice, and three parties submitted filings by the reply 
comment deadline.
i. Licenses To Be Offered in Auction 92
    The 16 licenses in Auction 92 were offered in Auction 73 and 
remained unsold or were licenses on which a winning bidder defaulted. A 
complete list of licenses offered in Auction 92 is available in 
Attachment A to the Auction 92 Procedures Public Notice.

B. Rules and Disclaimers

i. Relevant Authority
    Prospective applicants must familiarize themselves thoroughly with 
the Commission's general competitive bidding rules, rules relating to 
the 700 MHz band and emerging technologies, and rules relating to 
applications, environmental requirements, practice and procedure. 
Prospective applicants must also be thoroughly familiar with the 
procedures, terms and conditions contained in the Auctions 92 
Procedures Public Notice and in the Commission's decisions in 
proceedings regarding competitive bidding procedures, application 
requirements, and obligations of Commission licensees. The terms 
contained in the Commission's rules, relevant orders, and public 
notices are not negotiable. The Commission may amend or supplement 
information contained in public notices at any time, and will issue 
public notices to convey any new or supplemental information. It is the 
responsibility of all applications to remain current with all 
Commission rules and with all public notices pertaining to this 
auction.
ii. Prohibited Communications and Compliance With Antitrust Laws
    To ensure the competitiveness of the auction process, 47 CFR 
1.2105(c) prohibits auction applicants for licenses in any of the same 
geographic license areas from communicating with each other about bids, 
bidding strategies, or settlements unless such applicants have 
identified each other on their short-form applications (FCC Form 175) 
as parties with whom they have entered into agreements pursuant to 47 
CFR 1.2105(a)(2)(viii).
a. Entities Subject to Section 1.2105
    5. 47 CFR 1.2105(c)'s prohibition on certain communications will 
apply to any applicants that submit short-form applications seeking to 
participate in a Commission auction for licenses in the same or 
overlapping markets. Thus, unless they 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), applicants for any of 
the same or overlapping markets must affirmatively avoid all 
communications with or disclosures to each other that affect or 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 applies to all applicants regardless 
of whether such applicants become qualified bidders or actually bid. In 
Auction 92, this rule would apply to applicants designating on the 
short-form application any of the same licenses. The rule would also 
prohibit, for example, an applicant bidding for a CMA license and 
another applicant bidding for an EA license that covers any of the same 
geographic area from communicating, absent a disclosed agreement.
    6. Applicants are also reminded that, for purposes of this 
prohibition on certain communications, 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, all 
controlling interests of that entity, as well as all holders of 
partnership and other ownership interests and any stock interest 
amounting to 10 percent or more of the entity, or outstanding stock, or 
outstanding voting stock of the entity submitting a short-form 
application. For example, where an individual served as an officer for 
two or more applicants, the Bureau has found that the bids and bidding 
strategies of one applicant are necessarily conveyed to the other 
applicant, and, absent a disclosed bidding agreement, an apparent 
violation of 47 CFR 1.2105(c) occurs.
    7. Information concerning Auction 92 applicants' license selections 
will not be available to the public. Therefore, the Commission will 
inform each applicant by letter of the identity of each of the other 
applicants that has applied for licenses covering any of the same 
geographic areas as the licenses that it has selected in its short-form 
application.
    8. Individuals and entities subject to 47 CFR 1.2105(c) should take 
special care in circumstances where their employees may receive 
information directly or indirectly from a competing applicant relating 
to any competing applicant's bids or bidding strategies. An exception 
to the prohibition on certain communications allows non-controlling 
interest holders to obtain interests in more than one competing 
applicant without violating 47 CFR 1.2105(c), provided specified 
conditions are met (including a certification that no prohibited 
communications have occurred or will occur), but that exception does 
not extend to controlling interest holders.
    9. Auction 92 applicants selecting licenses for any of the same 
geographic license areas are encouraged not to use the same individual 
as an authorized bidder. A violation of 47 CFR 1.2105(c) 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 such applicants. 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 47 CFR 1.2105(c).
b. Prohibition Applies Until Down Payment Deadline
    10. 47 CFR 1.2105(c)'s prohibition on certain communications 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.
c. Prohibited Communications
    11. Applicants should note that they must not communicate directly 
or indirectly about bids or bidding strategy to other applicants in 
this auction. 47 CFR 1.2105(c) prohibits not only a communication about 
an applicant's own bids or bidding strategy, but also a communication 
of another applicant's bids or bidding strategy. While 47 CFR 1.2105(c) 
does not prohibit non-auction-

[[Page 21352]]

related business negotiations among auction applicants, applicants must 
remain vigilant so as not to communicate directly or indirectly 
information that affects, or could affect, bids or bidding strategy, or 
the negotiation of settlement agreements.
    12. Applicants are cautioned that the Commission remains vigilant 
about prohibited communications taking place in other situations. For 
example, the Commission has warned that prohibited communications 
concerning bids and bidding strategies may include communications 
regarding capital calls or requests for additional funds in support of 
bids or bidding strategies to the extent such communications convey 
information concerning bids and bidding strategies directly or 
indirectly. Moreover, the Commission has found a violation of 47 CFR 
1.2105(c) where a bidder used the Commission's bidding system to 
disclose its bidding strategy in a manner that explicitly invited other 
auction participants to cooperate and collaborate in specific markets, 
and has placed auction participants on notice that the use of its 
bidding system to disclose market information to competitors will not 
be tolerated and will subject bidders to sanctions. Accordingly, 
applicants should use caution in their dealings with other parties, 
such as members of the press, financial analysts, or others who might 
become conduits for the communication of prohibited bidding 
information. For example, where limited information disclosure 
procedures are in place, as is the case for Auction 92, a qualified 
bidder's statement to the press that it has lost bidding eligibility 
and stopped bidding in the auction could give rise to a finding of a 47 
CFR 1.2105(c) violation. Similarly, an applicant's public statement of 
intent not to participate in Auction 92 bidding could also violate the 
rule.
    13. Applicants are also hereby placed on notice that disclosure of 
information relating to bidder interests and bidder identities that has 
not yet been made public by the Commission at the time of disclosure 
may violate the provisions of 47 CFR 1.2105(c) that prohibit certain 
communications. This is so even though similar types of information 
were revealed prior to and during other Commission auctions subject to 
different information procedures. Thus, communication by an applicant 
of its license selections to another applicant for one or more of the 
same licenses, or communication of the fact that an applicant does nor 
does not hold provisionally winning bids on particular licenses, may 
well violate 47 CFR 1.2105(c).
    14. In addition, when completing short-form applications, 
applicants should avoid any statements or disclosures that may violate 
47 CFR 1.2105(c), particularly in light of the limited information 
procedures in effect for Auction 92. Specifically, applicants should 
avoid including any information in their short-form applications that 
might convey information regarding their license selection, such as 
using applicant names that refer to licenses being offered, referring 
to certain licenses or markets in describing bidding agreements, or 
including any information in attachments that may otherwise disclose 
applicants' license selections.
d. Disclosure of Bidding Agreements and Arrangements
    15. The Commission's rules do not prohibit applicants from entering 
into otherwise lawful bidding agreements before filing their short-form 
applications, as long as they disclose the existence of the 
agreement(s) in their short-form applications. If parties agree in 
principle on all material terms prior to the short-form application 
filing deadline, each party to the agreement must identify the other 
party or parties to the agreement on its 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 short-form 
filing deadline, they should not include the names of parties to 
discussions on their applications, and they may not continue 
negotiation, discussion, or communication with any other applicants for 
licenses covering any of the same or overlapping geographic areas after 
the short-form application filing deadline.
e. Section 1.2105(c) Certification
    16. By electronically submitting a short-form application, each 
applicant in Auction 92 certifies its compliance with 47 CFR 1.2105(c). 
However, the Bureau cautions that merely filing a certifying statement 
as part of an application will not outweigh specific evidence that a 
prohibited communication has occurred, nor will it preclude the 
initiation of an investigation when warranted. The Commission has 
stated that it intends to scrutinize carefully any instances in which 
bidding patterns suggest that collusion may be occurring. Any applicant 
found to have violated 47 CFR 1.2105(c) may be subject to sanctions.
f. Duty To Report Prohibited Communications: Reporting Procedure
    17. 47 CFR 1.2105(c)(6) provides that any applicant that makes or 
receives a communication that appears to violate 47 CFR 1.2105(c) must 
report such communication in writing to the Commission immediately, and 
in no case later than five business days after the communication 
occurs. The Commission has clarified that each applicant's obligation 
to report any such communication continues beyond the five-day period 
after the communication is made, even if the report is not made within 
the five day period.
    18. 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 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 substantial change 
to the information or certifications included in its pending short-form 
application. An applicant is therefore required by 47 CFR 1.65 to 
report to the Commission any communication the applicant has made to or 
received from another applicant after the short-form application filing 
deadline that affects or has the potential to affect bids or bidding 
strategy, unless such communication is made to or received from a party 
to an agreement identified under 47 CFR 1.2105(a)(2)(viii).
    19. 47 CFR 1.65(a) and 1.2105(c) requires applicants in competitive 
bidding proceedings to furnish additional or corrected information 
within five days of a significant occurrence, or to amend their short-
form applications no more than five days after the applicant becomes 
aware of the need for amendment. These rules are intended to facilitate 
the auction process by making the information available promptly to all 
participants and to enable the Bureau to act expeditiously on those 
changes when such action is necessary.
    20. A party reporting any communication pursuant to 47 CFR 1.65, 
1.2105(a)(2), or 1.2105(c)(6) must take care to ensure that any report 
of a prohibited communication does not itself give rise to a violation 
of 47 CFR 1.2105(c). For example, a party's report of a prohibited 
communication could violate the rule by communicating prohibited 
information to other applicants through the use of Commission filing 
procedures that would allow such materials to be made available for 
public inspection.

[[Page 21353]]

    21. 47 CFR 1.2105(c) requires parties to file only a single report 
concerning such communications and to file that report with Commission 
personnel expressly charged with administering the Commission's 
auctions. This rule is designed to minimize the risk of inadvertent 
dissemination of information in such reports. Pursuant to the amended 
rule, any reports required by 47 CFR 1.2105(c) must be filed consistent 
with the instructions set forth in the Auction 92 Procedures Public 
Notice. For Auction 92, such reports must be filed with the Chief of 
the Auctions and Spectrum Access Division, Wireless Telecommunications 
Bureau, by the most expeditious means available. Specifically, any such 
report must be submitted by e-mail to [email protected] or delivered to 
the following address: Margaret W. Wiener, Chief, Auctions and Spectrum 
Access Division, Wireless Telecommunications Bureau, Federal 
Communications Commission, 445 12th Street SW., Room 6423, Washington, 
DC 20554.
    22. A party seeking to report such a prohibited communication 
should consider submitting its report with a request that the report or 
portions of the submission be withheld from public inspection pursuant 
to 47 CFR 0.459. If requesting that a report be withheld from public 
inspection, the cover page of the filing must prominently display that 
the report seeks confidential treatment, and cover all of the material 
to which the request applies. Such parties also are encouraged to 
coordinate with the Auctions and Spectrum Access Division staff if they 
have any questions about the procedures for submitting such reports. 
The Auction 92 Procedures Public Notice provides additional guidance on 
procedures for submitting application-related information.
g. Winning Bidders Must Disclose Terms of Agreements
    23. Applicants that are winning bidders will be required to 
disclose in their long-form applications the specific terms, 
conditions, and parties involved in any bidding consortia, joint 
venture, partnership, or agreement, understanding, or other arrangement 
entered into relating to the competitive bidding process, including any 
agreement relating to the post-auction market structure. Applicants 
must be aware that failure to comply with the Commission's rules can 
result in enforcement action.
h. Antitrust Laws
    24. Applicants are also reminded that, regardless of compliance 
with the Commission's rules, they remain subject to the antitrust laws, 
which are designed to prevent anticompetitive behavior in the 
marketplace. Compliance with the disclosure requirements of 47 CFR 
1.2105(c) will not insulate a party from enforcement of the antitrust 
laws. For instance, a violation of the antitrust laws could arise out 
of actions taking place well before any party submitted a short-form 
application. The Commission has cited a number of examples of 
potentially anticompetitive actions that would be prohibited under 
antitrust laws: For example, actual or potential competitors may not 
agree to divide territories in order to minimize competition, 
regardless of whether they split a market in which they both do 
business, or whether they merely reserve one market for one and another 
market for the other. Similarly, the Bureau previously reminded 
potential applicants and others that even where the applicant discloses 
parties with whom it has reached an agreement on the short-form 
application, thereby permitting discussions with those parties, the 
applicant is nevertheless subject to existing antitrust laws.
    25. To the extent the Commission becomes aware of specific 
allegations that suggest that violations of the federal antitrust laws 
may have occurred, the Commission may refer such allegations to the 
United States Department of Justice for investigation. 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, among other sanctions.
iii. Protection of Incumbent Operations
    26. 700 MHz Band licensees must operate in accordance with 
Commission rules to reduce the potential for interference to public 
reception of the signals of digital television (DTV) broadcast stations 
transmitting on DTV Channel 51. These limitations may restrict the 
ability of such geographic area licensees to use certain portions of 
the electromagnetic spectrum or provide service to some parts of their 
geographic license areas.
a. International Coordination
    27. Potential bidders seeking licenses for geographic areas that 
are near the Canadian or Mexican borders are subject to international 
agreements with Canada and Mexico. Pursuant to these agreements, the 
U.S. must protect the signals of Canadian and Mexican television 
broadcast stations located in the border area. Unless otherwise 
modified by international treaty, licensees must not cause interference 
to, and must accept harmful interference from, television broadcast 
operations in Mexico and Canada. Further, until such time as existing 
agreements are replaced or modified to reflect the new uses, licensees 
in the band will be subject to existing agreements.
b. Quiet Zones
    28. 700 MHz band licensees must protect the radio quiet zones 
specified at 47 CFR 1.924. Licensees are cautioned that they must 
receive the appropriate approvals directly from the relevant quiet zone 
entity prior to operating within the areas described in 47 CFR 1.924.
iv. Spectrum Holdings Subject to Competition Analysis
    29. To avoid anti-competitive spectrum aggregation, the Commission 
in 2008 announced its intention to apply prospectively a competitive 
analysis to spectrum acquired through auctions, just as the Commission 
has done previously to spectrum acquired through transactions. 
Accordingly, the Bureau will apply a competitive analysis to spectrum 
acquired through this auction when evaluating the winning bidder's 
long-form application. The Commission's competitive analysis includes 
an examination of the appropriate market definitions including a 
determination of the product market, geographic markets, market 
participants, and the input market for spectrum available for the 
provision of mobile telephony/broadband services.
v. Due Diligence
    30. Each applicant must take seriously its duties and 
responsibilities and carefully determine before filing an application 
that the applicant has the legal, technical and financial resources to 
participate in Auction 92, as well as construct and operate a 700 MHz 
facility if the auction applicant becomes a licensee as a result of its 
participation in this auction.
    31. The Bureau cautions potential applicants formulating their 
bidding strategies to investigate and consider the extent to which 
these frequencies are occupied, and how such occupancy may affect their 
business plans. For example, there are incumbent operations already 
licensed and operating in these bands that must be protected. These 
limitations may restrict the ability of licensees to use certain 
portions of the electromagnetic spectrum or provide

[[Page 21354]]

service to certain areas in their geographic license areas. Applicants 
should become familiar with the status of any such operations and 
applicable Commission rules, orders and any pending proceedings related 
to the service, in order to make reasoned, appropriate decisions about 
their participation in this auction and their bidding strategy.
    32. Potential applicants are reminded that they are solely 
responsible for investigating and evaluating all technical and 
marketplace factors that may have a bearing on the value of the 
licenses being offered in this auction. Bidders are responsible for 
assuring themselves that, if they win a license, they will be able to 
build and operate facilities in accordance with the Commission's rules. 
The Commission 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 a licensee 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 license constitute a guarantee 
of business success.
    33. Applicants should perform their individual due diligence before 
proceeding, as they would with any new business venture. In particular, 
potential applicants are strongly encouraged to conduct their own 
research prior to the beginning of bidding in Auction 92 in order to 
determine the existence of any pending legislative, administrative, or 
judicial proceedings that might affect their decisions regarding 
participation in the auction. Participants in Auction 92 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 be a winning bidder 
in competitive bidding for a specific license, they will be able to 
build and operate facilities that will fully comply with the 
Commission's technical and legal requirements as well as other 
applicable Federal, state, and local laws.
    34. Applicants should also be aware that certain pending and future 
proceedings, including rulemaking proceedings or petitions for 
rulemaking, applications (including those for modification), requests 
for special temporary authority, waiver requests, petitions to deny, 
petitions for reconsideration, informal oppositions, and applications 
for review, before the Commission may relate to particular applicants 
or incumbent licensees or the licenses available in Auction 92. In 
addition, pending and future judicial proceedings may also relate to 
particular applicants or incumbent licensees, or to the licenses 
available in Auction 92. Prospective applicants are responsible for 
assessing the likelihood of the various possible outcomes and for 
considering their potential impact on spectrum licenses available in 
this auction.
    35. Applicants should perform due diligence to identify and 
consider all proceedings that may affect the spectrum licenses being 
auctioned and that could have an impact on the availability of spectrum 
for Auction 92. 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 beginning of bidding in the auction. Applicants are 
solely responsible for identifying associated risks and for 
investigating and evaluating the degree to which such matters may 
affect their ability to bid on, otherwise acquire, or make use of 
licenses being offered in this auction.
    36. Applicants may research the Bureau's licensing database on the 
Internet in order to determine which frequencies are already licensed 
to incumbent licensees. Applicants may obtain information about 
licenses available in Auction 92 through the Bureau's online licensing 
databases at http://wireless.fcc.gov/uls. Additional guidance on 
searching these databases is provided in the Auction 92 Procedures 
Public Notice.
    37. The Commission makes no representations or guarantees regarding 
the accuracy or completeness of information in its databases or any 
third party databases, including, for example, court docketing systems. 
To the extent the Commission's databases may not include all 
information deemed necessary or desirable by an applicant, applicants 
may obtain or verify such information from independent sources or 
assume the risk of any incompleteness or inaccuracy in said databases. 
Furthermore, the Commission makes no representations or guarantees 
regarding the accuracy or completeness of information that has been 
provided by incumbent licensees and incorporated into its databases.
    38. Potential applicants are strongly encouraged to physically 
inspect any prospective sites located in, or near, the geographic area 
for which they plan to bid, and also to familiarize themselves with the 
relevant environmental review obligations.
vi. Use of Integrated Spectrum Auction System
    39. The Commission will make available a browser-based bidding 
system to allow bidders to participate in Auction 92 over the Internet 
using the Commission's Integrated Spectrum Auction System (ISAS or FCC 
Auction System). The Commission makes no warranty whatsoever with 
respect to the FCC Auction System. In no event shall the Commission, or 
any of its officers, employees, or agents, be liable for any damages 
whatsoever (including, but not limited to, loss of business profits, 
business interruption, loss of business information, or any other loss) 
arising out of or relating to the existence, furnishing, functioning, 
or use of the FCC Auction System that is accessible to qualified 
bidders in connection with this auction. Moreover, no obligation or 
liability will arise out of the Commission's technical, programming, or 
other advice or service provided in connection with the FCC Auction 
System.
vii. Environmental Review Requirements
    40. Licensees must comply with the Commission's rules regarding 
implementation of the National Environmental Policy Act and other 
federal environmental statutes. The construction of a wireless antenna 
facility is a federal action and the licensee must comply with the 
Commission's environmental rules for each such facility. Further 
information about such environmental review requirements is provided in 
the Auction 92 Procedures Public Notice.

C. Auction Specifics

i. Auction Start Date
    41. Bidding in Auction 92 will begin on Tuesday, July 19, 2011. The 
initial schedule for bidding will be announced by public notice at 
least one week before the start of the auction. Unless otherwise 
announced, bidding on all licenses will be conducted on each business 
day until bidding has stopped on all licenses.
ii. Bidding Methodology
    42. As discussed in more detail in the Auction 92 Procedures Public 
Notice, the bidding methodology for Auction 92 will be simultaneous 
multiple round (SMR) bidding. The Commission will conduct this auction 
over the Internet using the FCC Auction System, and telephonic bidding 
will be available as well. Qualified bidders are permitted to bid 
electronically via the Internet or by

[[Page 21355]]

telephone. All telephone calls are recorded.
iii. Pre-Auction Dates and Deadlines
    43. The following dates and deadlines apply:

Auction Tutorial Available (via Internet).....  May 2, 2011.
Short-Form Application (FCC Form 175)
    Filing Window Opens May 2, 2011;..........  12 noon ET.
Short-Form Application (FCC Form 175)
    Filing Window Deadline....................  May 11, 2011; prior to 6:00 p.m. ET.
    Upfront Payments (via wire transfer)......  June 17, 2011; 6:00 p.m. ET.
    Mock Auction..............................  July 15, 2011.
    Auction Begins............................  July 19, 2011.
 

iv. Requirements for Participation
    44. Those wishing to participate in this auction must: (1) submit a 
short-form application (FCC Form 175) electronically prior to 6:00 p.m. 
ET, May 11, 2011, following the electronic filing procedures set forth 
in Attachment C to the Auction 92 Procedures Public Notice; (2) submit 
a sufficient upfront payment and an FCC Remittance Advice Form (FCC 
Form 159) by 6:00 p.m. ET, June 17, 2011, following the procedures and 
instructions set forth in Attachment D to the Auction 92 Procedures 
Public Notice; and (3) comply with all provisions outlined in the 
Auction 92 Procedures Public Notice and applicable Commission rules.

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

A. General Information Regarding Short-Form Applications

    45. An application to participate in an FCC auction, referred to as 
a short-form application or FCC Form 175, provides information used in 
determining whether the applicant is legally, technically, and 
financially qualified to participate in Commission auctions for 
licenses or permits. The short-form application is the first part of 
the Commission's two-phased auction application process. In the first 
phase of this process, parties desiring to participate in the auction 
must file streamlined, short-form applications in which they certify 
under penalty of perjury as to their qualifications. Eligibility to 
participate in bidding is based on the applicants' short-form 
applications and certifications as well as their upfront payments. In 
the second phase of the process, winning bidders must file a more 
comprehensive long-form application (FCC Form 601) and have a complete 
and accurate ownership disclosure information report (FCC Form 602) on 
file with the Commission.
    46. Entities and individuals seeking licenses available in Auction 
92 must file a short-form application electronically via the FCC 
Auction System prior to 6 p.m. ET on May 11, 2011, following the 
procedures prescribed in Attachment C to the Auction 92 Procedures 
Public Notice. 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 filing a short-form application are subject to the 
Commission's rule prohibiting certain communications beginning on the 
deadline for filing.
    47. Applicants bear full responsibility for submitting 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 set 
forth in Attachment C to the Auction 92 Procedures Public Notice and 
should consult the Commission's rules to ensure that, in addition to 
the materials described in that public notice, all the information that 
is required under the Commission's rules is included within their 
short-form applications.
    48. An individual or entity may not submit more than one short-form 
application for a single auction. If a party submits multiple short-
form applications, only one application may be accepted for filing.
    49. Applicants also should note that submission of a short-form 
application (and any amendments thereto) constitutes a representation 
by the certifying official that he or she is an authorized 
representative of the applicant, that he or she has read the form's 
instructions and certifications, and that the contents of the 
application, its certifications, and any attachments are true and 
correct. Applicants are not permitted to make major modifications to 
their applications; such impermissible changes include a change of the 
certifying official to the application. 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.

B. License Selection

    50. An applicant must select the licenses on which it wants to bid 
from the Eligible Licenses list on its short-form application. 
Applicants interested in participating in Auction 92 must have selected 
license(s) available in this auction by the short-form application 
filing deadline. Applicants must review and verify their license 
selections before the deadline for submitting short-form applications. 
Applicants will not be able to change their license selections after 
the short-form application filing deadline. The FCC Auction System will 
not accept bids from an applicant on licenses that the applicant has 
not selected on its short-form application.

C. Disclosure of Bidding Arrangements

    51. Applicants will be required to identify in their short-form 
application all parties with whom they have entered into any 
agreements, arrangements, or understandings of any kind relating to the 
licenses being auctioned, including any agreements relating to post-
auction market structure.
    52. After the filing of short-form applications, the Commission's 
rules do not prohibit a party holding a non-controlling, attributable 
interest in one applicant from acquiring an ownership interest in or 
entering into a joint bidding arrangement with other applicants, 
provided that: (1) 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 entered into a joint 
bidding arrangement; and (2) the arrangements do not result in a change 
in control of any of the applicants.

D. Ownership Disclosure Requirements

    53. All applicants must comply with the uniform Part 1 ownership 
disclosure standards and provide information

[[Page 21356]]

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 applicant, including both direct and indirect 
ownership interests of 10 percent or more. 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.
    54. In certain circumstances, an applicant's most current ownership 
information on file with the Commission, if in an electronic format 
compatible with the short-form application (such as information 
submitted in an on-line FCC Form 602 or in an FCC Form 175 filed for a 
previous auction using ISAS) will automatically be entered into the 
applicant's short-form application. Each applicant is responsible for 
ensuring that the information submitted in their short-form application 
for Auction 92 is complete and accurate. Accordingly, applicants should 
carefully review any information automatically entered to confirm that 
it is complete and accurate as of the deadline for filing the short-
form application. Applicants can update directly in the short-form 
application any information that was entered automatically and needs to 
be changed.

E. Designated Entity Provisions

    55. Eligible applicants in Auction 92 may claim small business 
bidding credits. In addition to the information provided below, 
applicants should review carefully the Commission's decisions regarding 
the designated entity provisions.
i. Bidding Credits for Small Businesses
    56. A bidding credit represents an amount by which a bidder's 
winning bid will be discounted. For Auction 92, bidding credits will be 
available to small businesses and very small businesses, and consortia 
thereof.
a. Bidding Credit Eligibility Criteria
    57. The level of bidding credit is determined as follows: (1) A 
bidder with attributed average annual gross revenues that exceed $15 
million and do not exceed $40 million for the preceding three years 
(small business) will receive a 15 percent discount on its winning bid; 
and (2) a bidder with attributed average annual gross revenues that do 
not exceed $15 million for the preceding three years (very small 
business) will receive a 25 percent discount on its winning bid.
    58. Bidding credits are not cumulative. A qualifying applicant may 
claim either a 15 percent or 25 percent bidding credit on its winning 
bid.
b. Revenue Disclosure on Short-Form Application
    59. An entity applying as a small or very small business must 
provide gross revenues for the preceding three years of each of the 
following: (1) The applicant, (2) its affiliates, (3) its controlling 
interests, (4) the affiliates of its controlling interests, and (5) the 
entities with which it has an attributable material relationship. 
Certification that the average annual gross revenues of such entities 
and individuals for the preceding three years do not exceed the 
applicable limit is not sufficient. Additionally, if an applicant is 
applying as a consortium of small businesses or very small businesses, 
this information must be provided for each consortium member.
ii. Attributable Interests
a. Controlling Interests
    60. Controlling interests of an applicant include individuals and 
entities with either de facto or de jure control of the applicant. 
Typically, ownership of greater than 50 percent of an entity's voting 
stock evidences de jure control. De facto control is determined on a 
case-by-case basis. The following are some common indicia of de facto 
control: (1) The entity constitutes or appoints more than 50 percent of 
the board of directors or management committee; (2) the entity has 
authority to appoint, promote, demote, and fire senior executives that 
control the day-to-day activities of the licensee; and (3) the entity 
plays an integral role in management decisions.
    61. Applicants should refer to 47 CFR 1.2110(c)(2) and Attachment C 
of the Auction 92 Procedures Public Notice to understand how certain 
interests are calculated in determining control. For example, pursuant 
to 47 CFR 1.2110(c)(2)(ii)(F), officers and directors of an applicant 
are considered to have controlling interest in the applicant.
b. Affiliates
    62. Affiliates of an applicant or controlling interest include an 
individual or entity that: (1) Directly or indirectly controls or has 
the power to control the applicant; (2) is directly or indirectly 
controlled by the applicant; (3) is directly or indirectly controlled 
by a third party that also controls or has the power to control the 
applicant; or (4) has an ``identity of interest'' with the applicant. 
The Commission's definition of an affiliate of the applicant 
encompasses both controlling interests of the applicant and affiliates 
of controlling interests of the applicant. For more information 
regarding affiliates, applicants should refer to 47 CFR 1.2110(c)(5) 
and Attachment C to the Auction 92 Procedures Public Notice.
c. Material Relationships
    63. The Commission requires the consideration of certain leasing 
and resale (including wholesale) relationships--referred to as 
attributable material relationships--in determining designated entity 
eligibility for bidding credits. An applicant or licensee has an 
attributable material relationship when it has one or more agreements 
with any individual entity for the lease or resale (including under a 
wholesale agreement) of, on a cumulative basis, more than 25 percent of 
the spectrum capacity of any individual license held by the applicant 
or licensee. The attributable material relationship will cause the 
gross revenues of that entity and its attributable interest holders to 
be attributed to the applicant or licensee for the purposes of 
determining the applicant's or licensee's (i) eligibility for 
designated entity benefits and (ii) liability for unjust enrichment on 
a license-by-license basis.
    64. The Commission grandfathered material relationships in 
existence before the release of the Designated Entity Second Report and 
Order, meaning that those preexisting relationships alone would not 
cause the Commission to examine a designated entity's ongoing 
eligibility for existing benefits or its liability for unjust 
enrichment. The Commission did not, however, grandfather preexisting 
material relationships for determinations of an applicant's or 
licensee's designated entity eligibility for future auctions or in the 
context of future assignments, transfers of control, spectrum leases, 
or other reportable eligibility events. Rather, in such circumstances, 
the Commission reexamines the applicant's or licensee's designated 
entity eligibility, taking into account all existing material 
relationships, including those previously grandfathered.
d. Gross Revenue Exceptions
    65. The Commission has clarified that, in calculating an 
applicant's gross revenues under the controlling interest standard, it 
will not attribute to the applicant the personal net worth, including 
personal income, of its officers and directors. However, to the

[[Page 21357]]

extent that an officer or director of the applicant is a controlling 
interest holder of other entities, the gross revenues of those entities 
will be attributed to the applicant. Moreover, if an officer or 
director operates a separate business, the gross revenues derived from 
that separate business would be attributed to the applicant, although 
income from such separate business which is only personal income would 
not be attributed.
    66. The Commission has also exempted from attribution to the 
applicant the gross revenues of the affiliates of a rural telephone 
cooperative's officers and directors, if certain conditions specified 
in 47 CFR 1.2110(b)(3)(iii) are met. An applicant claiming this 
exemption must provide, in an attachment, an affirmative statement that 
the applicant, affiliate and/or controlling interest is an eligible 
rural telephone cooperative within the meaning of 47 CFR 
1.2110(b)(3)(iii), and the applicant must supply any additional 
information as may be required to demonstrate eligibility for the 
exemption from the attribution rule. Applicants seeking to claim this 
exemption must meet all of the conditions. Additional guidance on 
claiming this exemption may be found in Attachment C to the Auction 92 
Procedures Public Notice.
e. Bidding Consortia
    67. A consortium of small businesses or very small businesses is a 
conglomerate organization composed of two or more entities, each of 
which individually satisfies the definition of a small business or very 
small business. Thus, each member of a consortium of small businesses 
or very small businesses that applies to participate in Auction 92 must 
individually meet the criteria for small businesses or very small 
businesses. Each consortium member must disclose its gross revenues 
along with those of its affiliates, its controlling interests, the 
affiliates of its controlling interests, and any entities having an 
attributable material relationship with the member. Although the gross 
revenues of the consortium members will not be aggregated for purposes 
of determining the consortium's eligibility as a small business or very 
small business, this information must be provided to ensure that each 
individual consortium member qualifies for any bidding credit awarded 
to the consortium.

F. Tribal Lands Bidding Credit

    68. Applicants do not provide information regarding tribal lands 
bidding credits on their short-form applications. Instead, winning 
bidders may apply for the tribal lands bidding credit after the auction 
when they file their more detailed, long-form applications.

G. Provisions Regarding Former and Current Defaulters

    69. Current defaulters or delinquents are not eligible to 
participate in Auction 92, but former defaulters can participate so 
long as they are otherwise qualified and make upfront payments that are 
fifty percent more than the normal upfront payment amounts. An 
applicant is considered a current defaulter or a current delinquent 
when it, 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 license (including a down payment) or is 
delinquent on any non-tax debt owed to any Federal agency as of the 
filing deadline for short-form applications. An applicant is considered 
a former defaulter or a former delinquent when it, any of its 
affiliates, any of its controlling interests, or any of the affiliates 
of its controlling interests, have defaulted on any Commission license 
or been delinquent on any non-tax debt owed to any Federal agency, but 
have since remedied all such defaults and cured all of the outstanding 
non-tax delinquencies.
    70. On the short-form application, an applicant must certify under 
penalty of perjury that it, its affiliates, its controlling interests, 
and the affiliates of its controlling interests, as defined by 47 CFR 
1.2110, are not in default on any payment for a Commission license 
(including down payments) and that it is not delinquent on any non-tax 
debt owed to any Federal agency. Each applicant must also state under 
penalty of perjury whether it, its affiliates, its controlling 
interests, and the affiliates of its controlling interests, have ever 
been in default on any Commission license or have ever been delinquent 
on any non-tax debt owed to any Federal agency. Prospective applicants 
are reminded that submission of a false certification to the Commission 
is a serious matter that may result in severe penalties, including 
monetary forfeitures, license revocations, exclusion from participation 
in future auctions, and/or criminal prosecution. These statements and 
certifications are prerequisites to submitting an application to 
participate in an FCC auction.
    71. Applicants are encouraged to review the Bureau's previous 
guidance on default and delinquency disclosure requirements in the 
context of the short-form application process. For example, 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 provisions of 47 CFR 1.2105(a) and 
1.2106(a) regarding default and delinquency in connection with 
competitive bidding are limited to circumstances in which the relevant 
party has not complied with a final Commission payment deadline. 
Parties are also encouraged to consult with the Bureau's Auctions and 
Spectrum Access Division staff if they have any questions about default 
and delinquency disclosure requirements.
    72. 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.
    73. Applicants are reminded, however, that the Commission's Red 
Light Display System, which provides information regarding debts 
currently 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 ultimately may prevent the processing of long-form applications by 
auction winners, an auction applicant's lack of current red light 
status is not necessarily determinative of its eligibility to 
participate in an auction or of its upfront payment obligation.
    74. Moreover, prospective applicants in Auction 92 should note that 
any long-form applications filed after the close of bidding will be 
reviewed for compliance with the Commission's red light rule, and such 
review may result in the

[[Page 21358]]

dismissal of a winning bidder's long-form application. Applicants that 
have their long-form application dismissed will be deemed to have 
default and will be subject to default payments under 47 CFR 1.2104(f) 
and 1.2109(c).

H. Optional Applicant Status Identification

    75. Applicants owned by members of minority groups and/or women, as 
defined in 47 CFR 1.2110(c)(3), and rural telephone companies, as 
defined in 47 CFR 1.2110(c)(4), may identify themselves regarding this 
status in filling out their short-form applications. This applicant 
status information is collected for statistical purposes only and 
assists the Commission in monitoring the participation of designated 
entities in its auctions.

I. Minor Modifications to Short-Form Applications

    76. After the deadline for filing initial applications, an Auction 
92 applicant is permitted to make only minor changes to its 
application. Permissible minor changes include, among other things, 
deletion and addition of authorized bidders (to a maximum of three) and 
revision of addresses and telephone numbers of the applicant and its 
contact person. An applicant is not permitted to make a major 
modification to its application (e.g., change of license selection, 
change control of the applicant, change the certifying official, or 
claim eligibility for a higher percentage of bidding credit) after the 
initial application filing deadline. Thus, any change in control of an 
applicant, resulting from a merger, for example, will be considered a 
major modification to the applicant's application, which will 
consequently be dismissed. Even if an applicant's short-form 
application is dismissed, the applicant would remain subject to the 
prohibition of certain communications pursuant to 47 CFR 1.2105(c) 
until the down payment deadline, which will be established after the 
auction closes.
    77. If an applicant wishes to make permissible minor changes to its 
short-form application, such changes should be made electronically to 
its short-form application using the FCC Auction System whenever 
possible. Applicants are reminded to click on the SUBMIT button in the 
FCC Auction System for the change 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, 
submission date and a unique file number. The Bureau advises applicant 
to print and retain a copy of this confirmation page.
    78. An applicant cannot use the FCC Auction System outside of the 
initial and resubmission filing windows to make changes to its short-
form application other than administrative changes (e.g. changing 
certain contact information or the name of an authorized bidder). If 
these or other permissible minor changes need to be made outside of 
these windows, the applicant must submit a letter briefly summarizing 
the changes and subsequently update its short-form application in ISAS 
once the system is available. Moreover, after the filing window has 
closed, ISAS will not permit applicants to make certain changes, such 
as the applicant's legal classification and bidding credit.
    79. Any letter describing changes to an applicant's short-form 
application should be submitted by e-mail to [email protected]. The e-
mail summarizing the changes must include a subject or caption 
referring to Auction 92 and the name of the applicant, for example, RE: 
Changes to Auction 92 Short-Form Application of ABC Corp. The Bureau 
requests that parties format any attachments to e-mail as Adobe[supreg] 
Acrobat[supreg] (pdf) or Microsoft[supreg] Word documents. Questions 
about short-form application amendments should be directed to the 
Auctions and Spectrum Access Division at (202) 418-0660.
    80. 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) an 
officer, director, or duly authorized employee, if the applicant is a 
corporation; (4) a member who is an officer, if the applicant is an 
unincorporated association; (5) the trustee, if the applicant is an 
amateur radio service club; or (6) a duly elected or appointed official 
who is authorized to make such certifications under the laws of the 
applicable jurisdiction, if the applicant is a governmental entity.
    81. Applicants must not submit application-specific material 
through the Commission's Electronic Comment Filing System (ECFS), which 
was used for submitting comments regarding Auction 92. Parties 
submitting information related to their applications should use caution 
to ensure that their submissions do not contain confidential 
information or communicate information that would violate 47 CFR 
1.2105(c) or the limited information procedures adopted for Auction 92. 
A party seeking to submit information that might reflect non-public 
information, such as an applicant's license selections, upfront payment 
amount, or bidding eligibility, should consider submitting any such 
information along with a request that the filing or portions of the 
filing be withheld from public inspection until the end of the 
prohibition of certain communications pursuant to 47 CFR 1.2105(c).

J. Maintaining Current Information in Short-Form Applications

    82. 47 CFR 1.65 and 1.2105(b) require an applicant to maintain the 
accuracy and completeness of information furnished in its pending 
application and in competitive bidding proceedings to furnish 
additional or corrected information to the Commission within five days 
of a significant occurrence, or to amend a short form application no 
more than five days after the applicant becomes aware of the need for 
the amendment. Changes that cause a loss of or reduction in the 
percentage of bidding credit specified on the originally submitted 
application must be reported immediately, and no later than five 
business days after the change occurs. 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 application. As explained previously, after the 
application filing deadline, applicants may make only minor changes to 
their applications. Applicants must click on the SUBMIT button in the 
FCC Auction System for the changes to be submitted and considered by 
the Commission. In addition, an applicant cannot update its short-form 
application using the FCC Auction System after the initial and 
resubmission filing windows close. If 47 CFR 1.65 submissions are 
needed after these windows close, applicants must submit a letter, 
briefly summarizing the changes, by e-mail to [email protected]. The e-
mail summarizing the changes must include a subject or caption 
referring to Auction 92 and the name of the applicant. The Bureau 
requests that parties format any attachments to e-mail as Adobe[supreg] 
Acrobat[supreg] (pdf) or Microsoft[supreg] Word documents. Applicants 
must not submit application-specific material through ECFS. A party 
seeking to submit information that might reflect non-public 
information, such as an applicant's license selections, upfront payment 
amount, or bidding eligibility, should consider submitting any such 
information along with a request that the filing or portions of the 
filing be withheld from public inspection until the end of the 
prohibition of certain

[[Page 21359]]

communications pursuant to 47 CFR 1.2105(c).

III. Pre-Auction Procedures

A. Online Auction Tutorial--Available May 2, 2011

    83. No later than Monday, May 2, 2011, the Commission will post an 
educational auction tutorial on the Auction 92 web page for prospective 
bidders to familiarize themselves with the auction process. This online 
tutorial will provide information about pre-auction procedures, 
completing short-form applications, auction conduct, the FCC Auction 
Bidding System, auction rules, and 700 MHz Band service rules. The 
tutorial will also provide an avenue to ask FCC staff questions about 
the auction, auction procedures, filing requirements, and other matters 
related to this auction.
    84. The auction tutorial will be accessible through a web browser 
from the FCC's Auction 92 web page at http://wireless.fcc.gov/auctions/92/ through an Auction Tutorial link. Once posted, this tutorial will 
remain available for reference in connection with the procedures 
outlined in the Auction 92 Procedures Public Notice and accessible 
anytime.

B. Short-Form Applications--Due Prior to 6 p.m. ET on May 11, 2011

    85. In order to be eligible to bid in this auction, applicants must 
first follow the procedures set forth in Attachment C to the Auction 92 
Procedures Public Notice to submit a short-form application (FCC Form 
175) electronically via the FCC Auction System. This short-form 
application must be submitted through the FCC Auction System prior to 6 
p.m. ET on May 11, 2011. Late applications will not be accepted. There 
is no application fee required when filing an FCC Form 175, but an 
applicant must submit a timely upfront payment to be eligible to bid.
    86. Applications may generally be filed at any time beginning at 
noon ET on May 2, 2011, until the filing window closes at 6 p.m. ET on 
May 11, 2011. Applicants are strongly encouraged to file early and are 
responsible for allowing adequate time for filing their applications. 
Applicants may update or amend their applications multiple times until 
the filing deadline on May 11, 2011.
    87. An applicant must always click on the SUBMIT button on the 
Certify & Submit screen to successfully submit its FCC Form 175 and any 
modifications; otherwise the application or changes to the application 
will not be received or reviewed. Additional information about 
accessing, completing, and viewing the FCC Form 175 is included in 
Attachment C of the Auction 92 Procedures Public Notice.

C. Application Processing and Minor Corrections

    88. After the deadline for filing FCC Form 175 applications, the 
Commission will process all timely submitted applications to determine 
which are complete, and subsequently will issue a public notice 
identifying (1) those applications that are complete; (2) those 
applications that are rejected; and (3) those applications that are 
incomplete because of minor defects that may be corrected. The public 
notice will include the deadline for resubmitting corrected 
applications.
    89. After the application filing deadline on May 11, 2011, 
applicants continue to be able to make only minor corrections to their 
applications. Applicants will not be permitted to make major 
modifications to their applications (e.g., change license selection, 
change control of the applicant, change the certifying official, or 
claim eligibility for a higher percentage of bidding credit).
    90. Commission staff will communicate only with an applicant's 
contact person or certifying official, as designated on the applicant's 
short-form application, unless the applicant's certifying official or 
contact person notifies the Commission in writing that applicant's 
counsel or other representative is authorized to speak on its behalf. 
Authorizations may be sent by e-mail to [email protected].

D. Upfront Payments--Due June 17, 2011

    91. In order to be eligible to bid in this auction, applicants must 
submit an upfront payment accompanied by an FCC Remittance Advice Form 
(FCC Form 159). After completing its short-form application, an 
applicant will have access to an electronic version of the FCC Form 159 
that can be printed and sent by fax to U.S. Bank in St. Louis, 
Missouri. All upfront payments must be made as instructed in the 
Auction 92 Procedures Public Notice and must be received in the proper 
account at U.S. Bank before 6 p.m. ET on June 17, 2011.
i. Making Upfront Payments by Wire Transfer
    92. Wire transfer payments must be received before 6 p.m. ET on 
June 17, 2011. No other payment method is acceptable. The Commission 
will not accept checks, credit cards, or automated clearing house (ACH) 
payments to satisfy this upfront payment requirement. To avoid untimely 
payments, applicants should discuss arrangements (including bank 
closing schedules) with their bankers 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. Information required 
for this wire transfer is specified in the Auction 92 Procedures Public 
Notice.
    93. At least one hour before placing the order for the wire 
transfer (but on the same business day), applicants must fax a 
completed FCC Form 159 (Revised 2/03) to U.S. Bank at (314) 418-4232. 
On the fax cover sheet, applicants should write Wire Transfer--Auction 
Payment for Auction 92. In order to meet the Commission's upfront 
payment deadline, an applicant's payment must be credited to the 
Commission's account for Auction 92 before the deadline.
    94. Each applicant is responsible for ensuring timely submission of 
its upfront payment and for timely filing of an accurate and complete 
FCC Remittance Advice Form (FCC Form 159). An applicant should 
coordinate with its financial institution well ahead of the due date 
regarding its wire transfer and allow sufficient time for the wire 
transfer to be initiated and completed prior to the deadline. The 
Commission repeatedly has cautioned auction participants about the 
importance of planning ahead to prepare for unforeseen last-minute 
difficulties in making payments by wire transfer. Each applicant also 
is responsible for obtaining confirmation from its financial 
institution that its wire transfer to U.S. Bank was successful and from 
Commission staff that the Commission has timely received the 
applicant's upfront payment and deposited it into the proper account. 
For confirmation that the Commission has timely received the 
applicant's upfront payment and deposited it into the proper account, 
an applicant may contact Gail Glasser of the Office of Managing 
Director's Auctions Accounting Group at (202) 418-0578, or 
alternatively, Theresa Meeks at (202) 418-2945.
    95. Please note the following information regarding upfront 
payments: (1) All payments must be made in U.S. dollars; (2) all 
payments must be made by wire transfer; (3) upfront payments for 
Auction 92 go to a lockbox number different from the lockboxes used in 
previous FCC auctions, and (4) failure to deliver a sufficient upfront 
payment as instructed by the June 17, 2011, deadline will result in 
dismissal of the short-form

[[Page 21360]]

application and disqualification from participation in the auction.
ii. FCC Form 159
    96. A completed FCC Remittance Advice Form (FCC Form 159, Revised 
2/03) must be faxed to U.S. Bank to accompany each upfront payment. 
Proper completion of 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 to the Auction 92 Procedures 
Public Notice. An electronic pre-filled version of the FCC Form 159 is 
available after submitting the FCC Form 175. Payers using the pre-
filled FCC Form 159 are responsible for ensuring that all of the 
information on the form, including payment amounts, is accurate. The 
FCC Form 159 can be completed electronically, but must be filed with 
U.S. Bank by fax.
iii. Upfront Payments and Bidding Eligibility
    97. Applicants that are former defaulters, as described above, must 
pay upfront payments 50 percent greater than non-former defaulters. For 
purposes of this calculation, the applicant includes the applicant 
itself, its affiliates, its controlling interests, and affiliates of 
its controlling interests, as defined by 47 CFR 1.2110.
    98. Applicants must make upfront payments sufficient to obtain 
bidding eligibility on the licenses on which they will bid. The amount 
of the upfront payment determines 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 particular license, a qualified bidder 
must have selected the license on its FCC Form 175 and must have a 
current eligibility level that meets or exceeds the number of bidding 
units assigned to that license. At a minimum, therefore, an applicant's 
total upfront payment must be enough to establish eligibility to bid on 
at least one of the licenses selected on its FCC Form 175, or else the 
applicant will not be eligible to participate in the auction. A 
bidder's total upfront payment does not affect the total dollar amount 
the bidder may bid on any given license. An applicant does not have to 
make an upfront payment to cover all licenses the applicant selected on 
its FCC Form 175, but only enough to cover the maximum number of 
bidding units that are associated with licenses on which the bidder 
wishes to place bids and hold provisionally winning bids in any given 
round. Provisionally winning bids are bids that would become final 
winning bids if the auction were to close after the given round.
    99. Each license in Auction 92 is assigned a specific number of 
bidding units equal to the upfront payment listed for the license, on a 
bidding unit for dollar basis. The bidding unit level for each license 
will remain constant throughout the auction.
    100. The upfront payment amount submitted by each applicant 
determines a bidder's initial bidding eligibility. The upfront payments 
and bidding units for each license in Auction 92 are set forth in 
Attachment A of the Auction 92 Procedures Public Notice.
    101. 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 on or hold provisionally winning bids on) in any single 
round, and submit an upfront payment amount covering that number of 
bidding units. In order to make this calculation, an applicant should 
add together the bidding units for all licenses on which it seeks to be 
active in any given round. Applicants should check their calculations 
carefully, as there is no provision for increasing a bidder's 
eligibility after the upfront payment deadline.
    102. If an applicant is a former defaulter, it must calculate its 
upfront payment for all of its identified licenses by multiplying the 
number of bidding units on which it wishes to be active by 1.5. In 
order to calculate the number of bidding units to assign to former 
defaulters, the Commission will divide the upfront payment received by 
1.5 and round the result up to the nearest bidding unit. If a former 
defaulter fails to submit a sufficient upfront payment to establish 
eligibility to bid on at least one of the licenses selected 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
    103. To ensure that refunds of upfront payments are processed in an 
expeditious manner, the Commission is requesting that all pertinent 
refund information specified in the Auction 92 Procedures Public Notice 
be supplied. Applicants can provide the information electronically 
during the initial short-form application filing window after the form 
has been submitted. (Applicants are reminded that information submitted 
as part of an FCC Form 175 will be available to the public; for that 
reason, wire transfer information must not be included in an FCC Form 
175.) Wire Transfer Instructions can also be manually faxed to the FCC, 
Financial Operations, Auctions Accounting Group, Attn: Gail Glasser, at 
(202) 418-2843 (fax). All refunds will be returned to the payer of 
record as identified on the FCC Form 159 unless the payer submits 
written authorization instructing otherwise. For additional 
information, please call Gail Glasser at (202) 418-0578.

E. Auction Registration

    104. Approximately ten days before the auction, the Bureau will 
issue a public notice announcing all qualified bidders for the auction. 
Qualified bidders are those applicants with submitted FCC Form 175 
applications that are deemed timely-filed, accurate, and complete, 
provided that such applicants have timely submitted an upfront payment 
that is sufficient to qualify them to bid.
    105. 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[supreg] tokens that will be required to place bids, 
the Integrated Spectrum Auction System (ISAS) Bidder's Guide, and the 
Auction Bidder Line phone number.
    106. 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 Wednesday, July 
13, 2011, should call (717) 338-2868. 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.
    107. In the event that SecurID[supreg] tokens 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 replacements. Qualified bidders requiring 
the replacement of these items must call Technical Support at (877) 
480-3201, option nine; (202) 414-1250; or (202) 414-1255 (TTY).

F. Remote Electronic Bidding

    108. The Commission will conduct this auction over the Internet, 
and telephonic bidding will be available as well. Only qualified 
bidders are permitted to bid. Each applicant should indicate its 
bidding preference--electronic or telephonic--on its FCC Form 175. In 
either case, each authorized bidder must have its own SecurID[supreg] 
token, which the Commission

[[Page 21361]]

will provide at no charge. Each applicant with one authorized bidder 
will be issued two SecurID[supreg] tokens, while applicants with two or 
three authorized bidders will be issued three tokens. For security 
purposes, the SecurID[supreg] tokens, the telephonic bidding telephone 
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. Each SecurID[supreg] token is tailored to a 
specific auction. SecurID[supreg] tokens issued for other auctions or 
obtained from a source other than the FCC will not work for Auction 92.
    109. Please note that the SecurID[supreg] tokens can be recycled, 
and the Bureau encourages bidders to return the tokens to the FCC. The 
Bureau will provide pre-addressed envelopes that bidders may use to 
return the tokens once the auction has ended.

G. Mock Auction--July 15, 2011

    110. All qualified bidders will be eligible to participate in a 
mock auction on Friday, July 15, 2011. The mock auction will enable 
qualified bidders to become familiar with the FCC Auction System prior 
to the auction. Participation by all bidders is strongly recommended. 
Details will be announced by public notice.

IV. Auction Event

    111. The first round of bidding for Auction 92 will begin on 
Tuesday, July 19, 2011. The initial bidding schedule will be announced 
in a public notice listing the qualified bidders, which is to be 
released approximately 10 days before the start of the auction.

A. Auction Structure

i. Simultaneous Multiple Round Auction
    112. All licenses in Auction 92 will be offered in a single auction 
using the Commission's standard simultaneous multiple-round (SMR) 
auction format. This type of auction offers every license for bid at 
the same time and consists of successive bidding rounds in which 
eligible bidders may place bids on individual licenses. A bidder may 
bid on, and potentially win, any number of licenses. Unless otherwise 
announced, bids will be accepted on all licenses in each round of the 
auction until bidding stops on every license.
ii. Information Available to Bidders Before and During the Auction
    113. After consideration of the comments submitted on this issue, 
the Bureau decided to restrict the information available to bidders in 
this auction. Pursuant to the anonymous bidding procedures adopted for 
Auction 92, the Bureau will withhold, until after the close of bidding, 
public release of (1) bidders' license selections on their short-form 
applications (FCC Form 175), (2) the amounts of bidders' upfront 
payments and bidding eligibility, and (3) information that may reveal 
the identities of bidders placing bids and taking other bidding-related 
actions.
    114. After the conclusion of each round, the Bureau will disclose 
all relevant information about the bids placed and/or withdrawn except 
the identities of the bidders performing the actions and the net 
amounts of the bids placed or withdrawn. As in past auctions conducted 
with limited information procedures, the Bureau will indicate, for each 
license, the minimum acceptable bid amount for the next round and 
whether the license has a provisionally winning bid. After each round, 
the Bureau will also release, for each license, the number of bidders 
that placed a bid on the license. Furthermore, the Bureau will indicate 
whether any proactive waivers were submitted in each round, and the 
Bureau will release the stage transition percentage--the percentages of 
licenses (as measured in bidding units) on which there were new bids--
for the round. In addition, bidders can log in to the FCC Auction 
System to see, after each round, whether their own bids are 
provisionally winning. The Bureau will provide descriptions and/or 
samples of publicly-available and bidder-specific (non-public) results 
files prior to the start of the auction.
    115. The Bureau, however, retains the discretion not to use limited 
information procedures if the Bureau, after examining the level of 
potential competition as expressed in the license selection on the 
short-form applications filed for Auction 92, determines that the 
circumstances indicate that limited information procedures would not be 
an effective tool for deterring anti-competitive behavior. For example, 
if only two applicants become qualified to participate in the bidding, 
limited information procedures would be ineffective in preventing 
bidders from knowing the identity of the competing bidder and, 
therefore, limited information procedures would not serve to deter 
attempts at signaling and retaliatory bidding behavior.
    116. Other Issues. Information disclosure procedures established 
for this auction will not interfere with the administration of or 
compliance with the Commission's prohibition of certain communications. 
47 CFR 1.2105(c)(1) provides that, after the short-form application 
filing deadline, all applicants for licenses in any of the same 
geographic license areas are prohibited from disclosing to each other 
in any manner the substance of bids or bidding strategies until after 
the down payment deadline, subject to specified exceptions.
    117. In Auction 92, the Commission will not disclose information 
regarding license selection or the amounts of bidders' upfront payments 
and bidding eligibility. As in the past, the Commission will disclose 
the other portions of applicants' short-form applications through its 
online database, and certain application-based information through 
public notices.
    118. To assist applicants in identifying other parties subject to 
47 CFR 1.2105(c), the Bureau will notify separately each applicant in 
Auction 92 whether applicants with short-form applications to 
participate in pending auctions, including but not limited to Auction 
92, have applied for licenses in any of the same geographic areas as 
that applicant. Specifically, after the Bureau conducts its initial 
review of applications to participate in Auction 92, it will send to 
each applicant in Auction 92 a letter that lists the other applicants 
that have pending short-form applications for licenses in any of the 
same geographic areas. The list will identify the other applicants by 
name but will not list their license selections. As in past auctions, 
additional information regarding other applicants that is needed to 
comply with 47 CFR 1.2105(c)--such as the identities of other 
applicants' controlling interests and entities with a greater than ten 
percent ownership interest--will be available through the publicly 
accessible online short-form application database. For purposes of 47 
CFR 1.2105(c), the term applicant includes all officers and directors 
of the applicant and all other controlling interests, as well as all 
parties with ownership interests greater than ten percent.
    119. When completing short-form applications, applicants should 
avoid any statements or disclosures that may violate the prohibition of 
certain communications pursuant to 47 CFR 1.2105(c), particularly in 
light of the Commission's procedures regarding the availability of 
certain information in Auction 92. While applicants' license selections 
will not be disclosed until after Auction 92 closes, the Commission 
will disclose other portions of short-form applications through its 
online database and public notices. Accordingly, applicants must avoid 
including any information in their short-form applications that might

[[Page 21362]]

convey information regarding license selections. For example, 
applicants should avoid using applicant names that refer to licenses 
being offered, referring to certain licenses or markets in describing 
bidding agreements, or including any information in attachments that 
may otherwise disclose applicants' license selections.
    120. If an applicant is found to have violated the Commission's 
rules or antitrust laws in connection with its participation in the 
competitive bidding process, the applicant may be subject to various 
sanctions, including forfeiture of its upfront payment, down payment, 
or full bid amount and prohibition from participating in future 
auctions.
    121. Direct or indirect communication to other applicants or the 
public disclosure of non-public information (e.g., bid withdrawals, 
proactive waivers submitted, reductions in eligibility) could violate 
the Commission's anonymous bidding procedures and 47 CFR 1.2105(c). To 
the extent an applicant believes that such a disclosure is required by 
law or regulation, including regulations issued by the Securities and 
Exchange Commission, the Bureau strongly urges that the applicant 
consult with the Commission staff in the Auctions and Spectrum Access 
Division before making such disclosure.
iii. Eligibility and Activity Rules
    122. The Bureau will use upfront payments to determine initial 
(maximum) eligibility (as measured in bidding units) for Auction 92. 
The amount of the upfront payment submitted by a bidder determines 
initial bidding eligibility, the maximum number of bidding units on 
which a bidder may be active. Each license is assigned the specific 
number of bidding units listed in Attachment A of the Auction 92 
Procedures Public Notice. Bidding units for a given license do not 
change as prices rise during the auction. A bidder's upfront payment is 
not attributed to specific licenses. Rather, a bidder may place bids on 
any of the licenses selected on its FCC Form 175 as long as the total 
number of bidding units associated with those licenses does not exceed 
its current eligibility. Eligibility cannot be increased during the 
auction; it can only remain the same or decrease. Thus, in calculating 
its upfront payment amount, an applicant must determine the maximum 
number of bidding units it may wish to bid on or hold provisionally 
winning bids on in any single round, and submit an upfront payment 
amount covering that total number of bidding units. At a minimum, an 
applicant's upfront payment must cover the bidding units for at least 
one of the licenses it selected on its FCC Form 175. The total upfront 
payment does not affect the total dollar amount a bidder may bid on any 
given license.
    123. In order to ensure that an 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.
    124. A bidder's activity level in a round is the sum of the bidding 
units associated with any licenses covered by new and provisionally 
winning bids. A bidder is considered active on a license in the current 
round if it is either the provisionally winning bidder at the end of 
the previous bidding round and does not withdraw the provisionally 
winning bid in the current round, or if it submits a bid in the current 
round.
    125. The minimum required activity is expressed as a percentage of 
the bidder's current eligibility, and increases by stage as the auction 
progresses. Failure to maintain the requisite activity level will 
result in the use of an activity rule waiver, if any remain, or a 
reduction in the bidder's eligibility, possibly curtailing or 
eliminating the bidder's ability to place additional bids in the 
auction.
iv. Auction Stages
    126. For now, the Bureau will conduct the auction in two stages and 
employ an activity rule. A bidder desiring to maintain its current 
bidding eligibility would be required to be active on licenses 
representing at least 80 percent of its current bidding eligibility, 
during each round of Stage One, and at least 95 percent of its current 
bidding eligibility in Stage Two.
    127. Stage One: During the first stage of the auction, a bidder 
desiring to maintain its current bidding eligibility will be required 
to be active on licenses representing at least 80 percent of its 
current bidding eligibility in each bidding round. Failure to maintain 
the required activity level will result in the use of an activity rule 
waiver or, if the bidder has no activity rule waivers remaining, a 
reduction in the bidder's bidding eligibility in the next round. During 
Stage One, reduced eligibility for the next round will be calculated by 
multiplying the bidder's current round activity (the sum of bidding 
units of the bidder's provisionally winning bids and bids during the 
current round) by five-fourths (\5/4\).
    128. 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 the use of an 
activity rule waiver or, if the bidder has no activity rule waivers 
remaining, a reduction in the bidder's bidding eligibility in the next 
round. 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).
    129. CAUTION: Since activity requirements increase in Stage Two, 
bidders must carefully check their activity during the first round 
following a stage transition to ensure that they are meeting the 
increased activity requirement. This is especially critical for bidders 
that have provisionally winning bids and do not plan to submit new 
bids. In past auctions, some bidders have inadvertently lost bidding 
eligibility or used an activity rule waiver because they did not re-
verify their activity status at stage transitions. Bidders may check 
their activity against the required activity level by logging into the 
FCC Auction System.
    130. The Bureau has the discretion to further alter the activity 
requirements before and/or during the auction as circumstances warrant, 
and also has other mechanisms by which it may influence the speed of an 
auction.
v. Stage Transitions
    131. The auction will start in Stage One. The Bureau will regulate 
the pace of the auction by announcement. The Bureau retains the 
discretion to change the activity requirements during the auction. For 
example, the Bureau could transition the auction to Stage Two, to add 
an additional stage with a higher activity requirement, not to 
transition to Stage Two, and to transition to Stage Two with an 
activity requirement that is higher or lower than 95 percent. This 
determination will be based on a variety of measures of auction 
activity, including, but not limited to, the number of new bids and the 
percentages of licenses (as measured in bidding units) on which there 
are new bids. Potential bidders should note that the stage of the 
auction does not affect the auction stopping rules. The auction may 
conclude in Stage One.
vi. Activity Rule Waivers
    132. Each bidder in the auction will be provided with three 
activity rule

[[Page 21363]]

waivers. Bidders may use an activity rule waiver in any round during 
the course of the auction. Use of an activity rule waiver preserves the 
bidder's eligibility despite the bidder's activity in the current round 
being below the required minimum activity level. An activity rule 
waiver applies to an entire round of bidding and not to a particular 
license. Activity rule waivers can be either proactive or automatic and 
are principally a mechanism for auction participants to avoid the loss 
of bidding eligibility in the event that exigent circumstances prevent 
them from placing a bid in a particular round.
    133. The FCC Auction System assumes that bidders with insufficient 
activity would prefer to apply an activity rule waiver (if available) 
rather than lose bidding eligibility. Therefore, the system will 
automatically apply a waiver at the end of any bidding round where a 
bidder's activity level is below the minimum required unless (1) there 
are no activity rule waivers available or (2) the bidder overrides the 
automatic application of a waiver by reducing eligibility. If a bidder 
has no waivers remaining and does not satisfy the activity requirement, 
the FCC Auction System will permanently reduce the bidder's 
eligibility, possibly curtailing or eliminating the bidder's ability to 
place additional bids in the auction.
    134. 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 rule. 
Once eligibility has been reduced, a bidder will not be permitted to 
regain its lost bidding eligibility even if the round has not yet 
ended.
    135. Finally, a bidder may apply an activity rule waiver 
proactively as a means to keep the auction open without placing a bid. 
If a bidder proactively applies an activity waiver (using the apply 
waiver function in the FCC Auction System) during a bidding round in 
which no bids are placed or withdrawn, 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, withdrawals, or proactive waivers will not keep the 
auction open. A bidder cannot submit a proactive waiver after 
submitting a bid in a round, and submitting a proactive waiver will 
preclude a bidder from placing any bids in that round. It is important 
for bidders to understand that applying a waiver is irreversible. Once 
a bidder submits a proactive waiver, the bidder cannot unsubmit the 
waiver even if the round has not yet ended.
vii. Auction Stopping Rules
    136. For Auction 92, the Bureau will employ a simultaneous stopping 
rule approach. A simultaneous stopping rule means that all licenses 
remain available for bidding until bidding closes simultaneously on all 
licenses. More specifically, bidding will close simultaneously on all 
licenses after the first round in which no bidder submits any new bids, 
applies a proactive waiver, or withdraws any provisionally winning 
bids.
    137. As explained in the Auction 92 Procedures Public Notice, the 
Bureau retains the discretion to exercise alternative stopping rules, 
with or without prior announcement in the auction. For example, under 
Option 1, the auction would close for all licenses after the first 
round in which no bidder applies a waiver, withdraws a provisionally 
winning bid, or places any new bids on any license on which it is not 
the provisionally winning bidder. Thus, absent any other bidding 
activity, a bidder placing a new bid on a license for which it is the 
provisionally winning bidder would not keep the auction open under this 
modified stopping rule. Under Option 2, the auction would close for all 
licenses after the first round in which no bidder applies a waiver, 
withdraws a provisionally winning bid, or places any new bids on any 
license that is not FCC held. Thus, absent any other bidding activity, 
a bidder placing a new bid on a license that does not already have a 
provisionally winning bid (an FCC-held license) would not keep the 
auction open under this modified stopping rule. Under Option 3, the 
auction would close using a modified version of the simultaneous 
stopping rule that combines Option 1 and Option 2. Under Option 4, the 
auction would end after a specified number of additional rounds. If the 
Bureau invokes this special stopping rule, it will accept bids in the 
specified final round(s) and the auction will close. Under Option 5, 
the auction would remain open even if no bidder places any new bids, 
applies a waiver, or withdraws any provisionally winning bids. 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 lose bidding eligibility or use a 
waiver.
viii. Auction Delay, Suspension, or Cancellation
    138. By public notice or by announcement during the auction, the 
Bureau may delay, suspend, or cancel the auction in the event of 
natural disaster, technical obstacle, administrative or weather 
necessity, evidence of an auction security breach or unlawful bidding 
activity, or for any other reason that affects the fair and efficient 
conduct of competitive bidding. In such cases, the Bureau, in its sole 
discretion, may elect to resume the auction starting from the beginning 
of the current round, resume the auction starting from some previous 
round, or cancel the auction in its entirety. Network interruption may 
cause the Bureau to delay or suspend the auction. The Bureau emphasizes 
that exercise of this authority is solely within the discretion of the 
Bureau, and its use is not intended to be a substitute for situations 
in which bidders may wish to apply their activity rule waivers.

B. Bidding Procedures

i. Round Structure
    139. The initial schedule of bidding rounds will be announced in 
the public notice listing the qualified bidders, which is released 
approximately 10 days before the start of the auction. Each bidding 
round is followed by the release of round results. Multiple bidding 
rounds may be conducted in a given day. Details regarding round results 
formats and locations will also be included in the qualified bidders 
public notice.
    140. The Bureau has the discretion to change the bidding schedule 
in order to foster an auction pace that reasonably balances speed with 
the bidders' need to study round results and adjust their bidding 
strategies. The Bureau may increase or decrease the amount of time for 
the bidding rounds, the amount of time between rounds, or the number of 
rounds per day, depending upon bidding activity and other factors.
ii. Reserve Price and Minimum Opening Bids
    141. There will be no reserve prices for the licenses to be offered 
in Auction 92. After consideration of comments submitted, the Bureau 
adopted the specific minimum opening bid amounts for each license 
available in Auction 92 listed in Attachment A of the Auctions 92 
Procedures Public Notice.
iii. Bid Amounts
    142. In each round, eligible bidders will be able to place a bid on 
a given license using one or more pre-defined

[[Page 21364]]

bid amounts, if the bidder has sufficient eligibility to place a bid on 
the particular license. The FCC Auction System interface will list the 
acceptable bid amounts for each license. In the event of duplicate bid 
amounts due to rounding, the FCC Auction System will omit the 
duplicates and will list fewer acceptable bid amounts for the license.
a. Minimum Acceptable Bids
    143. The first of the acceptable bid amounts is called the minimum 
acceptable bid amount. The minimum acceptable bid amount for a license 
will be equal to its minimum opening bid amount until there is a 
provisionally winning bid on the license. After there is a 
provisionally winning bid for a license, the minimum acceptable bid 
amount for that license will be equal to the amount of the 
provisionally winning bid plus a percentage of that bid amount 
calculated using the formula specified in the Auction 92 Procedures 
Public Notice. In general, the percentage will be higher for a license 
receiving many bids than for a license receiving few bids. In the case 
of a license for which the provisionally winning bid has been 
withdrawn, the minimum acceptable bid amount will equal the second 
highest bid received for the license.
    144. The percentage of the provisionally winning bid used to 
establish the minimum acceptable bid amount (the additional percentage) 
is calculated at the end of each round, based on an activity index. The 
activity index is a weighted average of (a) the number of distinct 
bidders placing a bid on the license, and (b) the activity index from 
the prior round. Specifically, the activity index is equal to a 
weighting factor times the number of bidders placing a bid covering the 
license in the most recent bidding round plus one minus the weighting 
factor times the activity index from the prior round. The additional 
percentage is determined as one plus the activity index times a minimum 
percentage amount, with the result not to exceed a given maximum. The 
additional percentage is then multiplied by the provisionally winning 
bid amount to obtain the minimum acceptable bid for the next round. For 
round 1 calculations, however, the index from the prior round is set at 
0, because there is no prior round (i.e. no round 0).
    145. The weighting factor is set at 0.5, the minimum percentage 
(floor) at 0.1 (10%), and the maximum percentage (ceiling) at 0.3 
(30%). At these initial settings, the minimum acceptable bid for a 
license will generally be between ten percent and thirty percent higher 
than the provisionally winning bid, depending upon the bidding activity 
for the license. Equations and examples were provided in Attachment B 
of the Auction 92 Procedures Public Notice.
b. Additional Bid Amounts
    146. Any additional bid amounts are calculated using the minimum 
acceptable bid amount and a bid increment percentage, which need not be 
the same as the percentage used to calculate the minimum acceptable bid 
amount. The first additional acceptable bid amount equals the minimum 
acceptable bid amount times one plus the bid increment percentage. The 
Bureau will begin the auction with eight additional bid amounts per 
license. The Bureau will use a bid increment percentage of 5 percent. 
With a bid increment percentage of 5 percent, the calculation is 
(minimum acceptable bid amount) * (1 + 0.05), or (minimum acceptable 
bid amount) * 1.05; the second additional acceptable bid amount equals 
the minimum acceptable bid amount times one plus two times the bid 
increment percentage, or (minimum acceptable bid amount) * 1.1, etc. 
The Bureau will start the auction without a limit on the dollar amount 
by which minimum acceptable bids and additional bid amounts may 
increase. The Bureau retains the discretion to change the minimum 
acceptable bid amounts, the additional bid amounts, the number of 
acceptable bid amounts, and the parameters of the formulas used to 
calculate minimum acceptable bid amounts and additional bid amounts, 
and impose a limit on bid amounts if it determines that circumstances 
so dictate. Further, the Bureau retains the discretion to do so on a 
license-by-license basis. If the Bureau exercises this discretion, it 
will alert bidders by announcement in the FCC Auction System during the 
auction.
iv. Provisionally Winning Bids
    147. At the end of each bidding round, a provisionally winning bid 
will be determined based on the highest bid amount received for each 
license. A provisionally winning bid will remain the provisionally 
winning bid until there is a higher bid on the same license at the 
close of a subsequent round. Provisionally winning bids at the end of 
the auction become the winning bids. Bidders are reminded that 
provisionally winning bids count toward activity for purposes of the 
activity rule.
    148. The Bureau will use a random number generator to select a 
single provisionally winning bid in the event of identical high bid 
amounts being submitted on a license in a given round (i.e., tied 
bids). The FCC Auction System will assign a random number to each bid 
upon submission. The tied bid with the highest random number wins the 
tiebreaker and becomes the provisionally winning bid. Bidders, 
regardless of whether they hold a provisionally winning bid, can submit 
higher bids in subsequent rounds. However, if the auction were to end 
with no other bids being placed, the winning bidder would be the one 
that placed the provisionally winning bid.
v. Bidding
    149. 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 92. 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. The 
length of a call to place a telephonic bid may vary; please allow a 
minimum of ten minutes.
    150. A bidder's ability to bid on specific licenses is determined 
by two factors: (1) The licenses selected on the bidder's FCC Form 175 
and (2) the bidder's eligibility. The bid submission screens will allow 
bidders to submit bids on only those licenses the bidder selected on 
its FCC Form 175.
    151. 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[supreg] token 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.
    152. In each round, an eligible bidder will be able to place bids 
on a given license in any of up to nine pre-defined bid amounts, if the 
bidder has sufficient eligibility to place a bid on a particular 
license. For each license, the FCC Auction System will list the 
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.
    153. Until a bid has been placed on a license, the minimum 
acceptable bid amount for that license will be equal to its minimum 
opening bid amount. Once there are bids on a license, minimum 
acceptable bids for a license for the following round will be 
determined.

[[Page 21365]]

    154. During a round, an eligible bidder may submit bids for as many 
licenses as it wishes (provided that it is eligible to bid), remove 
bids placed in the current bidding round, withdraw provisionally 
winning bids from previous rounds, or permanently reduce eligibility. 
If a bidder submits multiple bids for the exact same license in the 
same round, the system takes the last bid entered as that bidder's bid 
for the round. Bidders should note that the bidding units associated 
with licenses for which the bidder has removed or withdrawn bids do not 
count towards the bidder's current activity.
    155. Finally, bidders are cautioned to select their bid amounts 
carefully because bidders that withdraw a provisionally winning bid 
from a previous round, even if the bid was mistakenly or erroneously 
made, are subject to bid withdrawal payments.
vi. Bid Removal and Bid Withdrawal
    156. Bid Removal. 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. If a bid is placed on a license during a round, it will count 
towards the activity for that round, but when that bid is then removed 
during the same round it was placed, the activity associated with it is 
also removed, i.e., a bid that is removed does not count toward bidding 
activity.
    157. Bid Withdrawal. Once a round closes, a bidder may no longer 
remove a bid. However, in a later round, a bidder may withdraw 
provisionally winning bids from previous rounds for licenses using the 
withdraw bids function in the FCC Auction System. A provisionally 
winning bidder that withdraws its provisionally winning bid from a 
previous round during the auction is subject to the bid withdrawal 
payments specified in 47 CFR 1.2104(g). Once a bid withdrawal is 
submitted during a round, that withdrawal cannot be unsubmitted even if 
the round has not yet ended.
    158. If a provisionally winning bid is withdrawn, the minimum 
acceptable bid amount will equal the amount of the second highest bid 
received for the license, which may be less than, or in the case of 
tied bids, equal to, the amount of the withdrawn bid. The Commission 
will serve as a placeholder provisionally winning bidder on the license 
until a new bid is submitted on that license. The Bureau retains the 
discretion to lower the minimum acceptable bid on such licenses in the 
next round or in later rounds.
    159. Calculation of Bid Withdrawal Payment. Generally, the 
Commission imposes payments on bidders that withdraw provisionally 
winning bids during the course of an auction. If a bidder withdraws its 
bid and there is no higher bid in the same or subsequent auction(s), 
the bidder that withdrew its bid is responsible for the difference 
between its withdrawn bid and the winning bid in the same or subsequent 
auction(s). If there are multiple bid withdrawals on a single license 
and no subsequent higher bid is placed and/or the license is not won in 
the same auction, the payment for each bid withdrawal will be 
calculated based on the sequence of bid withdrawals and the amounts 
withdrawn. No withdrawal payment will be assessed for a withdrawn bid 
if either the subsequent winning bid or any subsequent intervening 
withdrawn bid, in either the same or subsequent auction(s), equals or 
exceeds that withdrawn bid. Thus, a bidder that withdraws a bid will 
not be responsible for any final withdrawal payment if there is a 
subsequent higher bid in the same or subsequent auction(s).
    160. 47 CFR 1.2104(g)(1) sets forth the payment obligations of a 
bidder that withdraws a provisionally winning bid on a license during 
the course of an auction, and provides for the assessment of interim 
bid withdrawal payments. The Commission will assess an interim 
withdrawal payment equal to fifteen percent of the amount of the 
withdrawn bid. The fifteen percent interim payment will be applied 
toward any final bid withdrawal payment that will be assessed after 
subsequent auction of the license. Assessing an interim bid withdrawal 
payment ensures that the Commission receives a minimal withdrawal 
payment pending assessment of any final withdrawal payment. 47 CFR 
1.2104(g) provides specific examples showing application of the bid 
withdrawal payment rule.
vii. Round Results
    161. Limited information about the results of a round will be made 
public after the conclusion of the round. Specifically, after a round 
closes, the Bureau will make available for each license, its current 
provisionally winning bid amount, the minimum acceptable bid amount for 
the following round, the amounts of all bids placed on the license 
during the round, and whether the license is FCC held. The system will 
also provide an entire license history detailing all activity that has 
taken place on a license with the ability to sort by round number. The 
reports will be publicly accessible. Moreover, after the auction 
closes, the Bureau will make available complete reports of all bids 
placed during each round of the auction, including bidder identities.
viii. Auction Announcements
    162. The Commission will use auction announcements to report 
necessary information such as schedule changes and stage transitions. 
All auction announcements will be available by clicking a link in the 
FCC Auction System.

V. Post-Auction Procedures

    163. Shortly after bidding has ended, the Commission will issue a 
public notice declaring the auction closed, identifying the winning 
bidders, and establishing the deadlines for submitting down payments, 
long-form applications, final payments, and ownership disclosure 
information reports.

A. Down Payments and Final Payments

    164. Within ten business days after release of the auction closing 
public 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 92 to 20 percent of the net 
amount of its winning bids (gross bids less any applicable small 
business bidding credit).
    165. Each winning bidder will be required to submit the balance of 
the net amount of its winning bids within ten business days after the 
applicable deadline for submitting down payments.

B. Long-Form Application (FCC Form 601)

    166. Within ten business days after release of the auction closing 
notice, winning bidders must electronically submit a properly completed 
long-form application (FCC Form 601) for the license(s) they won 
through Auction 92. Winning bidders claiming eligibility for a small 
business or very small business bidding credit must demonstrate their 
eligibility for the bidding credit. Further instructions on these and 
other filing requirements will be provided to winning bidders in the 
auction closing public notice.
    167. Winning bidders organized as bidding consortia must comply 
with applicable long-form application procedures as described in the 
Auction 92 Procedures Public Notice. Specifically, each member (or 
group of members) of a winning consortium

[[Page 21366]]

seeking separate licenses will be required to file a separate long-form 
application for its respective license(s). If the license is to be 
partitioned or disaggregated, the member (or group) filing the long-
form application must provide the relevant partitioning or 
disaggregation agreement in its long-form application. In addition, if 
two or more consortium members wish to be licensed together, they must 
first form a legal business entity, and any such entity must meet the 
applicable designated entity criteria.

C. Ownership Disclosure Information Report (FCC Form 602)

    168. Within ten business days after release of the auction closing 
public notice, each winning bidder must also comply with the ownership 
reporting requirements in 47 CFR 1.913, 1.919, and 1.2112 by submitting 
an ownership disclosure information report for wireless 
telecommunications services (FCC Form 602) with its long-form 
application.
    169. If an applicant already has a complete and accurate FCC Form 
602 on file in ULS, it is not necessary to file a new report, but 
applicants must verify that the information on file with the Commission 
is complete and accurate. If the applicant does not have an FCC Form 
602 on file, or if it is not complete and accurate, the applicant must 
submit one.
    170. When an applicant submits a short-form application, ULS 
automatically creates an ownership record. This record is not an FCC 
Form 602, but may be used to pre-fill the FCC Form 602 with the 
ownership information submitted on the applicant's short-form 
application. Applicants must review the pre-filled information and 
confirm that it is complete and accurate as of the filing date of the 
long-form application before certifying and submitting the FCC Form 
602. Further instructions will be provided to winning bidders in the 
auction closing public notice.

D. Tribal Lands Bidding Credit

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

E. Default and Disqualification

    174. Any winning bidder that defaults or is disqualified after the 
close of the auction (i.e., fails to remit the required down payment 
within the prescribed period of time, fails to submit a timely long-
form application, fails to make full payment, or is otherwise 
disqualified) will be subject to the payments described in 47 CFR 
1.2104(g)(2). The payments include both a deficiency payment, equal to 
the difference between the amount of the bidder's bid and the amount of 
the winning bid the next time a license covering the same spectrum is 
won in an auction, plus an additional payment equal to a percentage of 
the defaulter's bid or of the subsequent winning bid, whichever is 
less. The Bureau set the additional default payment for this auction at 
fifteen percent of the applicable bid.
    175. Finally, in the event of a default, the Commission has the 
discretion to re-auction the license 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 
authorizations held by the applicant.

F. Refund of Remaining Upfront Payment Balance

    176. After the auction, applicants that are not winning bidders or 
are winning bidders whose upfront payment exceeded the total net amount 
of their winning bids may be entitled to a refund of some or all of 
their upfront payment. All refunds will be returned to the payer of 
record, as identified on the FCC Form 159, unless the payer submits 
written authorization instructing otherwise. Bidders should not request 
a refund of their upfront payments before the Commission releases a 
public notice declaring the auction closed, identifying the winning 
bidders, and establishing the deadlines for submitting down payments, 
long-form applications, and final payments. Bidders must comply with 
the specific instructions provided in the Auction 92 Procedures Public 
Notice for such refunds.

Federal Communications Commission.
Gary D. Michaels,
Deputy Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. 2011-9200 Filed 4-14-11; 8:45 am]
BILLING CODE 6712-01-P