[Federal Register Volume 76, Number 243 (Monday, December 19, 2011)]
[Notices]
[Pages 78645-78657]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-32430]



[[Page 78645]]

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FEDERAL COMMUNICATIONS COMMISSION

[AU Docket No. 11-146; DA 11-1845]


Auction of FM Broadcast Construction Permits Scheduled for March 
27, 2012; Notice and Filing Requirements, Minimum Opening Bids, Upfront 
Payments, and Other Procedures for Auction 93

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This document announces the auction of certain FM broadcast 
construction permits. This document establishes the procedures and 
other requirements for Auction 93.

DATES: Applications to participate in Auction 93 must be filed prior to 
6 p.m. Eastern Time (ET) on January 12, 2012. Bidding for construction 
permits in Auction 93 is scheduled to begin on March 27, 2012.

FOR FURTHER INFORMATION CONTACT: Wireless Telecommunications Bureau, 
Auctions and Spectrum Access Division: For auction legal questions: 
Lynne Milne at (202) 418-0660; for general auction questions: Jeff 
Crooks at (202) 418-0660 or Linda Sanderson at (717) 338-2868. Media 
Bureau, Audio Division: for FM service rule questions: Lisa Scanlan or 
Tom Nessinger at (202) 418-2700.

SUPPLEMENTARY INFORMATION: This is a summary of the Auction 93 
Procedures Public Notice released on November 8, 2011. The complete 
texts of the Auction 93 Procedures Public Notice, including its 
attachment, and related Commission documents, are available for public 
inspection and copying from 8 a.m. to 4:30 p.m. ET Monday through 
Thursday or from 8 a.m. to 11:30 a.m. ET on Fridays in the FCC 
Reference Information Center, 445 12th Street SW., Room CY-A257, 
Washington, DC 20554. The Auction 93 Procedures Public Notice and 
related Commission documents also may be purchased from the 
Commission's duplicating contractor, Best Copy and Printing, Inc. 
(BCPI), 445 12th Street SW., Room CY-B402, Washington, DC 20554, 
telephone (202) 488-5300, fax (202) 488-5563, or you may contact BCPI 
at its Web site: http://www.BCPIWEB.com. When ordering documents from 
BCPI, please provide FCC document number DA 11-1845 for the Auction 93 
Procedures Public Notice. The Auction 93 Procedures Public Notice and 
related documents also are available on the Internet at the 
Commission's Web site: http://wireless.fcc.gov/auctions/93/, or by 
using the search function for AU Docket No. 11-146 on the Commission's 
Electronic Comment Filing System (ECFS) Web page at http://www.fcc.gov/cgb/ecfs/.

I. General Information

A. Introduction

    1. On September 12, 2011, the Wireless Telecommunications and Media 
Bureaus (collectively, the Bureaus) released the Auction 93 Comment 
Public Notice, 76 FR 60830, September 30, 2011, seeking comment on 
competitive bidding procedures to be used in Auction 93. One party 
submitted a comment in response to the Auction 93 Comment Public 
Notice.
i. Construction Permits in Auction 93
    2. Auction 93 will offer 119 construction permits in the FM 
broadcast service as listed in Attachment A of the Auction 93 
Procedures Public Notice. These construction permits are for new, 
vacant FM allotments, reflecting FM channels assigned to the FM Table 
of Allotments.
    3. The Bureaus have removed four construction permits from the list 
of construction permits that were proposed for inclusion in this 
auction and listed in Attachment A of the Auction 93 Comment Public 
Notice. More information about the construction permits removed from 
this auction was provided in the Auction 93 Procedures Public Notice.
    4. Applicants may apply for any vacant FM allotment listed in 
Attachment A of the Auction 93 Procedures Public Notice. When two or 
more short-form applications (FCC Form 175) specifying the same FM 
allotment are accepted for filing, mutual exclusivity exists for 
auction purposes, and thus, that construction permit must be awarded by 
competitive bidding procedures. Once mutual exclusivity exists for 
auction purposes, even if only one applicant for a particular 
construction permit submits an upfront payment, that applicant is 
required to submit a bid in order to obtain the permit.

B. Rules and Disclaimers

i. Relevant Authority
    5. Prospective applicants must familiarize themselves thoroughly 
with the Commission's general competitive bidding rules, including 
recent amendments and clarifications, as well as Commission decisions 
in proceedings regarding competitive bidding procedures, application 
requirements, and obligations of Commission licensees. Broadcasters 
should also familiarize themselves with the Commission's rules relating 
to the FM broadcast service contained in 47 CFR 73.201-73.333 and 
73.1001-73.5009. Prospective bidders must also be familiar with the 
rules relating to broadcast auctions and competitive bidding 
proceedings contained in 47 CFR 1.2101-1.2112 and 73.5000-73.5009. All 
bidders must also be thoroughly familiar with the procedures, terms and 
conditions contained in the Auction 93 Procedures Public Notice and the 
public notices and orders referenced in it.
    6. The terms contained in the Commission's rules, relevant orders, 
and public notices are not negotiable. The Commission may amend or 
supplement the information contained in its public notices at any time, 
and will issue public notices to convey any new or supplemental 
information to applicants. It is the responsibility of all applicants 
to remain current with all Commission rules and with all public notices 
pertaining to this auction.
ii. Prohibited Communications and Compliance With Antitrust Laws
    7. 47 CFR 1.2105(c) prohibits auction applicants for construction 
permits 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(c)
    8. The prohibition on certain communications in 47 CFR 1.2105(c) 
will apply to any applicants that submit short-form applications 
seeking to participate in a Commission auction for construction permits 
in the same geographic license area. 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 geographic license areas 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. For the FM service, the geographic 
license area is the market designation, which is the particular vacant 
FM

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allotment. In Auction 93, this rule would apply to applicants 
designating any of the same FM allotments on the short-form 
application.
    9. For purposes of this prohibition, 47 CFR 1.2105(c)(7)(i) defines 
applicant as including all officers and directors of the entity 
submitting a short-form application to participate in the auction, 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 Bureaus have found that the bids and 
bidding strategies of one applicant are conveyed to the other 
applicant, and, absent a disclosed bidding agreement, an apparent 
violation of 47 CFR 1.2105(c) occurs.
    10. 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 relating to any competing 
applicant's bids or bidding strategies.
    11. 47 CFR 1.2105(c)(4) permits a non-controlling interest holder 
to obtain an interest 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 a 
controlling interest holder.
    12. Auction 93 applicants 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 the applicant and their bidding agents will comply 
with 47 CFR 1.2105(c).
b. Prohibition Applies Until Down Payment Deadline
    13. 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 closes, which will be announced in a 
future public notice.
c. Prohibited Communications
    14. Applicants 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-related business negotiations among auction 
applicants, each applicant must remain vigilant so as not to directly 
or indirectly communicate information that affects, or could affect, 
bids or bidding strategy, or the negotiation of settlement agreements.
    15. Applicants are cautioned that the Commission remains vigilant 
about prohibited communications taking place in other situations, 
including communications regarding capital calls or requests for 
additional funds in support of bids or bidding strategies. An applicant 
also may not use the Commission's bidding system to disclose its 
bidding strategy. Applicants also 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. Similarly, an applicant's public statement of 
intent not to participate in Auction 93 bidding could also violate the 
rule. Applicants are hereby placed on notice that public disclosure of 
information relating to bids, or bidding strategies, or to post auction 
market structures may violate 47 CFR 1.2105(c).
d. Disclosure of Bidding Agreements and Arrangements
    16. 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. Applicants must identify 
in their short-form applications all parties with whom they have 
entered into any agreements, arrangements, or understandings of any 
kind relating to the construction permits being auctioned, including 
any agreements relating to post-auction market structure.
    17. 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 
after the short-form application filing deadline.
    18. 47 CFR 1.2105(c) does not prohibit non-auction-related business 
negotiations among auction applicants. However, certain discussions or 
exchanges could touch upon impermissible subject matters because they 
may convey pricing information and bidding strategies. Such subject 
areas include, but are not limited to, issues such as management, 
sales, local marketing agreements, rebroadcast agreements, and other 
transactional agreements.
e. Section 1.2105(c) Certification
    19. By electronically submitting a short-form application, each 
applicant in Auction 93 certifies its compliance with 47 CFR 1.2105(c) 
and 73.5002. In particular, an applicant must certify under penalty of 
perjury it has not entered and will not enter into any explicit or 
implicit agreements, arrangements or understandings of any kind with 
any parties, other than those identified in the application, regarding 
the amount of the applicant's bids, bidding strategies, or the 
particular construction permits on which it will or will not bid. 
However, the Bureaus caution 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. Any applicant found to 
have violated 47 CFR 1.2105(c) may be subject to sanctions.
f. Duty To Report Prohibited Communications
    20. 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.
    21. In addition, 47 CFR 1.65 requires an applicant to report to the

[[Page 78647]]

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).
    22. 47 CFR 1.65(a) and 1.2105(c) require each applicant in 
competitive bidding proceedings to furnish additional or corrected 
information within five days of a significant occurrence, or to amend 
its short-form application no more than five days after the applicant 
become aware of the need for amendment.
g. Procedure for Reporting Prohibited Communications
    23. 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. This reporting process differs from filing 
procedures used in connection with other Commission rules and processes 
which may call for submission of filings to the Commission's Office of 
the Secretary or the Electronic Comment Filing System (ECFS). Filings 
through the Office of the Secretary or ECFS could allow the report to 
become publicly available and might result in the communication of 
prohibited information to other auction applicants.
    24. 47 CFR 1.2105(c) requires reports to be filed consistent with 
the instructions set forth in the Auction 93 Procedures Public Notice. 
For Auction 93, a party must file a report concerning such a prohibited 
communication with the Chief of the Auctions and Spectrum Access 
Division, Wireless Telecommunications Bureau. Any such report should be 
submitted by email to Ms. Margaret W. Wiener at the following email 
address: [email protected]. If a party chooses instead to submit a 
report by hard copy, such report must be delivered only to: Margaret W. 
Wiener, Chief, Auctions and Spectrum Access Division, Wireless 
Telecommunications Bureau, Federal Communications Commission, 445 12th 
Street SW., Room 6423, Washington, DC 20554.
    25. 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 by 
following the procedures specified in 47 CFR 0.459. Such parties also 
are encouraged to coordinate with the Auctions and Spectrum Access 
Division staff about the procedures for submitting such reports.
h. Winning Bidders Must Disclose Terms of Agreements
    26. Each applicant that is a winning bidder will be required to 
disclose in its long-form applications the specific terms, conditions, 
and parties involved in any agreement it has entered into. This 
requirement applies to 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. Failure to 
comply with the Commission's rules can result in enforcement action.
i. Additional Information Concerning Rule Prohibiting Certain 
Communications
    27. A summary listing of documents issued by the Commission and the 
Bureaus addressing the application of 47 CFR 1.2105(c) may be found in 
Attachment D of the Auction 93 Procedures Public Notice. These 
documents are available on the Commission's auction Web page.
j. Antitrust Laws
    28. Regardless of compliance with the Commission's rules, 
applicants 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.
    29. 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. Due Diligence
    30. Each potential bidder is solely responsible for investigating 
and evaluating all technical and marketplace factors that may have a 
bearing on the value of the construction permits for broadcast 
facilities it is seeking in this auction. Each bidder is responsible 
for assuring that, if it wins a construction permit, it will be able to 
build and operate facilities in accordance with the Commission's rules. 
The FCC makes no representations or warranties about the use of this 
spectrum for particular services. Applicants should be aware that an 
FCC auction represents an opportunity to become an FCC permittee in a 
broadcast service, subject to certain conditions and regulations. An 
FCC auction does not constitute an endorsement by the FCC of any 
particular service, technology, or product, nor does an FCC 
construction permit or license constitute a guarantee of business 
success.
    31. An applicant should perform its due diligence research and 
analysis before proceeding, as it would with any new business venture. 
Each potential bidder should review all underlying Commission orders, 
such as the specific order amending the FM Table of Allotments and 
allotting the FM channel(s) on which it plans to bid. An order adopted 
in an FM allotment rulemaking proceeding may include anomalies such as 
site restrictions or expense reimbursement requirements. Each potential 
bidder should perform technical analyses or refresh its previous 
analyses to assure itself that, should it be a winning bidder for any 
Auction 91 construction permit, it will be able to build and operate 
facilities that will fully comply with the Commission's technical and 
legal requirements. Each applicant should inspect any prospective 
transmitter sites located in, or near, the service area for which it 
plans to bid, confirm the availability of such sites, and familiarize 
itself with the Commission's rules regarding the National Environmental 
Policy Act at 47 CFR Chapter 1, Part 1, Subpart I.
    32. Each applicant should conduct its own research prior to Auction 
93 in order to determine the existence of pending administrative or 
judicial proceedings that might affect its decision to participate in 
the auction, including pending allocation rulemaking proceedings. Each 
participant in Auction 93 should continue such research throughout the 
auction. The due diligence considerations mentioned in the Auction 93 
Procedures Public Notice do not comprise an exhaustive list of steps 
that should be undertaken prior to participating in this auction. As 
always, the burden is on the potential bidder to

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determine how much research to undertake, depending upon specific facts 
and circumstances related to its interests.
    33. Pending and future judicial proceedings, as well as certain 
pending and future Commission proceedings--including applications, 
applications for modification, petitions for rulemaking, requests for 
special temporary authority, waiver requests, petitions to deny, 
petitions for reconsideration, informal objections, and applications 
for review--may relate to particular applicants, incumbent permittees, 
incumbent licensees, or the construction permits available in Auction 
93. Each prospective applicant is responsible for assessing the 
likelihood of the various possible outcomes and for considering the 
potential impact on construction permits available in this auction.
    34. Applicants are solely responsible for identifying associated 
risks and for investigating and evaluating the degree to which such 
matters may affect their ability to bid on, otherwise acquire, or make 
use of the construction permits available in Auction 93. Each potential 
bidder is responsible for undertaking research to ensure that any 
permits won in this auction will be suitable for its business plans and 
needs. Each potential bidder must undertake its own assessment of the 
relevance and importance of information gathered as part of its due 
diligence efforts.
    35. Applicants may research the Media Bureau's licensing database 
in order to determine which channels are already licensed to incumbent 
licensees or previously authorized to construction permittees. 
Licensing records are contained in the Media Bureau's Consolidated Data 
Base System (CDBS) and may be researched on the Internet at http://www.fcc.gov/mb.
    36. The Commission makes no representations or guarantees regarding 
the accuracy or completeness of information in its databases or any 
third party databases, including court docketing systems, for example. 
To the extent the Commission's databases may not include all 
information deemed necessary or desirable by an applicant, it must 
obtain or verify such information from independent sources or assume 
the risk of any incompleteness or inaccuracy in said databases. 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.
iv. Use of Integrated Spectrum Auction System
    37. Bidders will be able to participate in Auction 93 over the 
Internet using the Commission's web-based 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.
v. Environmental Review Requirements
    38. Permittees or 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 broadcast 
facility is a Federal action and the permittee or licensee must comply 
with the Commission's environmental rules, 47 CFR 1.1301-1.1319, for 
each such facility. These environmental rules require, among other 
things, that the permittee or licensee consult with expert agencies 
having environmental responsibilities, including the U.S. Fish and 
Wildlife Service, the State Historic Preservation Office, the U.S. Army 
Corps of Engineers, and the Federal Emergency Management Agency 
(through the local authority with jurisdiction over floodplains). In 
assessing the effect of facility construction on historic properties, 
the permittee or licensee must follow the provisions of the FCC's 
Nationwide Programmatic Agreement Regarding the Section 106 National 
Historic Preservation Act Review Process. The permittee or licensee 
must prepare environmental assessments for any facility that may have a 
significant impact in or on wilderness areas, wildlife preserves, 
threatened or endangered species, or designated critical habitats, 
historical or archaeological sites, Indian religious sites, 
floodplains, and surface features. In addition, the permittee or 
licensee must prepare environmental assessments for facilities that 
include high intensity white lights in residential neighborhoods or 
excessive radio frequency emission.

C. Auction Specifics

i. Bidding Methodology
    39. The bidding methodology for Auction 93 will be a simultaneous 
multiple round format. The Commission will conduct this auction over 
the Internet using the FCC Auction System. Qualified bidders are 
permitted to bid electronically via the Internet or by telephone using 
the telephonic bidding option. All telephone calls are recorded.
ii. Pre-Auction Dates and Deadlines
    40. The following dates and deadlines apply:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
Auction Tutorial Available (via          January 3, 2012.
 Internet).
Short-Form Application (FCC Form 175)..
Filing Window Opens....................  January 3, 2012; 12 noon ET.
Short-Form Application (FCC Form 175)..
Filing Window Deadline.................  January 12, 2012; prior to 6
                                          p.m. ET.
Upfront Payments (via wire transfer)...  February 22, 2012; 6 p.m. ET.
Mock Auction...........................  March 23, 2012.
Auction Begins.........................  March 27, 2012.
------------------------------------------------------------------------

iii. Requirements for Participation
    41. Those wishing to participate in this auction must: (1) Submit a 
short-form application (FCC Form 175) electronically prior to 6 p.m. 
ET, on January 12, 2012, following the electronic filing procedures set 
forth in Attachment B of the Auction 93 Procedures Public Notice; (2) 
Submit a sufficient upfront payment and an FCC Remittance Advice Form 
(FCC Form 159) by 6 p.m. ET, on February 22, 2012, following the 
procedures and instructions set forth in Attachment C to the Auction 93 
Procedures Public Notice; and (3) Comply with all provisions outlined 
in the Auction 93

[[Page 78649]]

Procedures Public Notice and applicable Commission rules.

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

A. General Information Regarding Short-Form Applications

    42. An application to participate in an FCC auction, referred to as 
a short-form application or FCC Form 175, provides information used to 
determine 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, parties desiring to participate in the auction must file a 
streamlined, short-form application in which they certify under penalty 
of perjury as to their qualifications. Each applicant must take 
seriously its duties and responsibilities and carefully determine 
before filing an application that it has the legal, technical and 
financial resources to participate in the auction, as well as to 
construct and operate an FM station if it becomes a licensee as a 
result of its participation in this auction. Eligibility to participate 
in bidding is based on the applicant's short-form application and 
certifications, as well as its upfront payment. In the second phase of 
the process, a winning bidder must file a more comprehensive long-form 
application.
    43. Every entity and individual seeking a construction permit 
available in Auction 93 must file a short-form application 
electronically via the FCC Auction System prior to 6 p.m. ET on January 
12, 2012, following the procedures prescribed in Attachment B of the 
Auction 93 Procedures Public Notice. If an applicant claims eligibility 
for a bidding credit, the information provided in its FCC Form 175 will 
be used to determine whether the applicant is eligible for the claimed 
bidding credit. Applicants filing a short-form application are subject 
to the Commission's anti-collusion rules beginning at the deadline for 
filing.
    44. 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 B of the Auction 93 Procedures Public Notice and 
should consult the Commission's rules to ensure that all the 
information required is included within their short-form application.
    45. 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.
    46. 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. Permit Selection

    47. An applicant must select the construction permits on which it 
wants to bid from the Eligible Permits list on its short-form 
application. To assist in identifying construction permits of interest 
that will be available in Auction 93, the FCC Auction System includes a 
filtering mechanism that allows an applicant to filter the Eligible 
Permits list. Selections for one or more of the filter criteria can be 
made and the system will produce a list of construction permits 
satisfying the specified criteria. Any or all of the construction 
permits in the filtered results may be selected. Applicants will also 
be able to select construction permits from one set of filtered results 
and then filter on different criteria to select additional construction 
permits.
    48. Applicants interested in participating in Auction 93 must have 
selected construction permit(s) available in this auction by the short-
form application filing deadline. Applicants must review and verify 
their construction permit selections before the deadline for submitting 
short-form applications. Construction permit selections cannot be 
changed after the short-form application filing deadline. The FCC 
Auction System will not accept bids on construction permits that were 
not selected on the applicant's short-form application.
    49. A commenter contends that the Commission's rules should be 
revised to require that an applicant submit a separate fee for each 
construction permit selected on its short-form application, to 
discourage applicants from selecting multiple or even all permits in 
one broadcast auction. The change advocated by the commenter would 
require an amendment of the Commission's rules and is thus outside of 
the scope of this proceeding, which is confined to establishing 
procedures for the conduct of this auction of FM construction permits.

C. New Entrant Bidding Credit

    50. The interests of the applicant and of any individuals or 
entities with an attributable interest in the applicant, in other media 
of mass communications are considered when determining an applicant's 
eligibility for the New Entrant Bidding Credit. In Auction 93, the 
bidder's attributable interests, and thus, the applicant's maximum new 
entrant bidding credit eligibility, are determined as of the short-form 
application filing deadline. An applicant intending to divest a media 
interest or make any other ownership changes, such as resignation of 
positional interests, in order to avoid attribution for purposes of 
qualifying for the New Entrant Bidding Credit must have consummated 
such divestment transactions or have completed such ownership changes 
by no later than the short-form filing deadline. Each applicant has a 
duty to continuously maintain the accuracy of information submitted in 
its auction application, including accurate bidding credit information. 
Events occurring after the short-form filing deadline, such as the 
acquisition of attributable interests in media of mass communications, 
may cause diminishment or loss of the bidding credit, and must be 
reported immediately, and no less than five days after the event 
occurs.
    51. Under traditional broadcast attribution rules, including 47 CFR 
73.3555 Note 2, those entities or individuals with an attributable 
interest in a bidder include: (1) All officers and directors of a 
corporate bidder; (2) Any owner of 5 percent or more of the voting 
stock of a corporate bidder; (3) All partners and limited partners of a 
partnership bidder, unless the limited partners are sufficiently 
insulated; and (4) All members of a limited liability company, unless 
sufficiently insulated.
    52. In cases where an applicant's spouse or close family member 
holds other media interests, such interests are not automatically 
attributable to the bidder. The Commission decides attribution issues 
in this context based on certain factors traditionally considered 
relevant. Applicants should

[[Page 78650]]

note that the mass media attribution rules were revised in 1999.
    53. In 1999, the Commission further refined the eligibility 
standards for the New Entrant Bidding Credit, judging it appropriate to 
attribute the media interests held by very substantial investors in, or 
creditors of, an applicant claiming new entrant status. Specifically, 
the attributable mass media interests held by an individual or entity 
with an equity and/or debt interest in an applicant shall be attributed 
to that applicant for purposes of determining its eligibility for the 
New Entrant Bidding Credit, if the equity and debt interests, in the 
aggregate, exceed 33 percent of the total asset value of the applicant, 
even if such an interest is non-voting.
    54. In the Diversity Order, 73 FR 28400, May 16, 2008, the 
Commission relaxed the equity/debt plus (EDP) attribution standard, to 
allow for higher investment opportunities in entities meeting the 
definition of eligible entities in 47 CFR 73.3555 Note 2(i). Consistent 
with a court decision issued in July 2011, the relaxed EDP rule for 
eligible entities as the basis for the New Entrant Bidding Credit will 
be unavailable in Auction 93.
    55. A medium of mass communications is defined in 47 CFR 
73.5008(b). Full service noncommercial educational stations, on both 
reserved and non-reserved channels, are included among media of mass 
communications as defined in 47 CFR 73.5008(b). Generally, media 
interests will be attributable for purposes of the New Entrant Bidding 
Credit to the same extent that such other media interests are 
considered attributable for purposes of the broadcast multiple 
ownership rules. However, attributable interests held by a winning 
bidder in existing low power television, television translator or FM 
translator facilities will not be counted among the applicant's other 
mass media interests in determining its eligibility for a New Entrant 
Bidding Credit.

D. Application Requirements

    56. In addition to the ownership information required pursuant to 
47 CFR 1.2105 and 1.2112, applicants seeking a New Entrant Bidding 
Credit are required to establish on their short-form applications that 
they satisfy the eligibility requirements to qualify for the bidding 
credit. In those cases, a certification under penalty of perjury must 
be provided in completing the short-form application. An applicant 
claiming that it qualifies for a 35 percent New Entrant Bidding Credit 
must certify that neither it nor any of its attributable interest 
holders have any attributable interests in any other media of mass 
communications. An applicant claiming that it qualifies for a 25 
percent New Entrant Bidding Credit must certify that neither it nor any 
of its attributable interest holders has any attributable interests in 
more than three media of mass communications, and must identify and 
describe such media of mass communications.
i. Bidding Credits
    57. Applicants that qualify for the New Entrant Bidding Credit, as 
specified in 47 CFR 73.5007, are eligible for a bidding credit that 
represents the amount by which a bidder's winning bid is discounted. 
The size of a New Entrant Bidding Credit depends on the number of 
ownership interests in other media of mass communications that are 
attributable to the bidder-entity and its attributable interest-
holders. A 35 percent bidding credit will be given to a winning bidder 
if it, and/or any individual or entity with an attributable interest in 
the winning bidder, has no attributable interest in any other media of 
mass communications, as defined in 47 CFR 73.5008. A 25 percent bidding 
credit will be given to a winning bidder if it, and/or any individual 
or entity with an attributable interest in the winning bidder, has an 
attributable interest in no more than three mass media facilities, as 
defined in 47 CFR 73.5008. No bidding credit will be given if any of 
the commonly owned mass media facilities serve the same area as the 
broadcast permit proposed in the auction, as defined in 47 CFR 
73.5007(b), or if the winning bidder, and/or any individual or entity 
with an attributable interest in the winning bidder, has attributable 
interests in more than three mass media facilities. For purposes of 
determining whether a broadcast permit offered in this auction is in 
the same area as an applicant's existing mass media facilities, the 
coverage area of the to-be-auctioned facility is calculated using 
maximum class facilities at the allotment reference coordinates, not 
any applicant-specified preferred site coordinates.
    58. Bidding credits are not cumulative. Qualifying applicants 
receive either the 25 percent or the 35 percent bidding credit, but not 
both. Attributable interests are defined in 47 CFR 73.3555 and note 2 
of that section. Applicants should note that unjust enrichment 
provisions apply to a winning bidder that utilizes a bidding credit and 
subsequently seeks to assign or transfer control of its license or 
construction permit to an entity not qualifying for the same level of 
bidding credit.

E. Ownership Disclosure Requirements

    59. For purposes of determining eligibility to participate in a 
broadcast auction, all applicants must comply with the uniform Part 1 
ownership disclosure standards and provide information required by 47 
CFR 1.2105 and 1.2112. Specifically, in completing the short-form 
application, applicants will be required to fully disclose information 
on the real party- or parties-in-interest and ownership structure of 
the 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 ensuring that information submitted in its 
short-form application is complete and accurate.
    60. 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 (FCC Form 175) (such as 
information submitted in an on-line FCC Form 602 or in an FCC Form 175 
filed for a previous auction using the FCC Auction System) will 
automatically be entered into their short-form application. Each 
applicant must carefully review any information automatically entered 
to confirm that it is complete and accurate as of the deadline for 
filing the short-form application. Any information that needs to be 
corrected or updated must be changed directly in the short-form 
application.

F. Provisions Regarding Former and Current Defaulters

    61. Current defaulters or delinquents are not eligible to 
participate in Auction 93, but former defaulters or delinquents can 
participate so long as they are otherwise qualified and, make upfront 
payments that are fifty percent more than would otherwise be necessary. 
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 construction permit or license 
(including a down payment) or is delinquent on any non-tax debt owed to 
any Federal agency as of the filing deadline for 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

[[Page 78651]]

affiliates of its controlling interests, have defaulted on any 
Commission construction permit or 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.
    62. 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 construction 
permit or 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 
construction permit or license or have ever been delinquent on any non-
tax debt owed to any Federal agency. 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.
    63. Applicants are encouraged to review the Bureaus' previous 
guidance on default and delinquency disclosure requirements in the 
context of the short-form application process. For example, it has been 
determined that, to the extent that Commission rules permit late 
payment of regulatory or application fees accompanied by late fees, 
such debts will become delinquent for purposes of 47 CFR 1.2105(a) and 
1.2106(a) only after the expiration of a final payment deadline. 
Therefore, with respect to regulatory or application fees, the 
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 Wireless Telecommunications Bureau's Auctions and Spectrum 
Access Division staff if they have any questions about default and 
delinquency disclosure requirements.
    64. 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 its obligations under the Debt Collection 
Improvement Act of 1996, which governs the collection of debts owed to 
the United States. Under the red light rule, applications and other 
requests for benefits filed by parties that have outstanding debts owed 
to the Commission will not be processed. In the same rulemaking order, 
the Commission explicitly declared, however, that its 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 its 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.
    65. Applicants are reminded 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.
    66. Moreover, prospective applicants in Auction 93 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 dismissal of a winning bidder's long-form 
application. Applicants that have their long-form applications 
dismissed will be deemed to have defaulted and will be subject to 
default payments under 47 CFR 1.2104(g) and 1.2109(c).

G. Optional Applicant Status Identification

    67. 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.

H. Noncommercial Educational Status Election

    68. Applications for noncommercial educational (NCE) FM stations on 
nonreserved spectrum, filed during an FM filing window, will be 
returned as unacceptable for filing if mutually exclusive with any 
application for a commercial station. Short-form applications 
specifying the same FM station construction permit are considered to be 
mutually exclusive. Accordingly, if an FCC Form 175 filed during the 
Auction 93 filing window identifying the application's proposed station 
as noncommercial educational is mutually exclusive with any application 
filed during that window for a commercial station, the NCE application 
will be returned as unacceptable for filing. For this reason, each 
prospective applicant in this auction should consider carefully if it 
wishes to propose NCE operation for any FM station acquired in this 
auction. This NCE election cannot be reversed after the initial 
application filing deadline. In contrast, a short-form application that 
does not identify the facilities proposed in the FCC Form 175 as NCE 
will be considered, as a matter of law, an application for a commercial 
broadcast station or stations.

I. Minor Modifications to Short-Form Applications

    69. After the deadline for filing initial applications, an Auction 
93 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 applicants and their 
contact persons. An applicant is not permitted to make a major 
modification to its application (e.g., change of construction permit 
selection, change control of the applicant, change the certifying 
official, claim eligibility for a higher percentage of bidding credit, 
or change the identification of the application's proposed facilities 
as noncommercial educational) 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 and the 
application will consequently be dismissed. If an applicant's short-
form application is dismissed, the applicant would remain subject to 
the communication prohibitions of 47 CFR 1.2105(c) until the down 
payment deadline.
    70. 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. For the change to be submitted and considered by the 
Commission, be sure to click on the SUBMIT button.
    71. An applicant cannot use the FCC Auction System outside of the 
initial

[[Page 78652]]

and resubmission filing windows to make changes to its short-form 
application for 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 the 
FCC Auction System once it is available. Moreover, after the filing 
window has closed, the system will not permit applicants to make 
certain changes, such as the applicant's legal classification and the 
identification of the application's proposed facilities as 
noncommercial educational. Any letter describing changes to an 
applicant's short-form application must be submitted by email to 
[email protected].
    72. 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.
    73. Applicants must not submit application-specific material 
through the Commission's Electronic Comment Filing System.

J. Maintaining Current Information in Short-Form Applications

    74. 47 CFR 1.65 and 1.2105(b) requires an applicant to continually 
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 
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. After the short-form filing deadline, applicants may make 
only minor changes to their applications. For changes to be submitted 
and considered by the Commission, be sure to click on the SUBMIT button 
in the FCC Auction System. In addition, an applicant cannot update its 
short-form application using the FCC Auction System after the initial 
and resubmission filing windows close. If information needs to be 
submitted pursuant to 47 CFR 1.65 after these windows close, a letter 
briefly summarizing the changes must be submitted by email to 
[email protected]. This email must include a subject or caption 
referring to Auction 93 and the name of the applicant.

III. Pre-Auction Procedures

A. Online Auction Tutorial--Available January 3, 2012

    75. On Tuesday, January 3, 2012, an educational auction tutorial 
will be available on the Auction 93 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 broadcast services 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.

B. Short-Form Applications--Due Prior to 6 p.m. ET on January 12, 2012

    76. In order to be eligible to bid in this auction, applicants must 
first follow the procedures set forth in Attachment B of the Auction 93 
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 prior to 6 p.m. ET on January 12, 2012. 
Late applications will not be accepted. No application fee is required, 
but an applicant must submit a timely upfront payment to be eligible to 
bid.
    77. Applications may generally be filed at any time beginning at 
noon ET on January 3, 2012, until the filing window closes at 6 p.m. ET 
on January 12, 2012. Applicants are strongly encouraged to file early 
and are responsible for allowing adequate time for filing their 
applications. Applications can be updated or amended multiple times 
until the filing deadline on January 12, 2012.
    78. 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 by Commission staff. Additional 
information about accessing, completing, and viewing the FCC Form 175 
is included in Attachment B of the Auction 93 Procedures Public Notice. 
FCC Auctions Technical Support is available at (877) 480-3201, option 
nine; (202) 414-1250 or (202) 414-1255(TTY); hours of service are 
Monday through Friday, from 8 a.m. to 6 p.m. ET.

C. Application Processing and Minor Corrections

    79. 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 that are complete; (2) those that are rejected; 
and (3) those that are incomplete or deficient because of minor defects 
that may be corrected. That public notice will include the deadline for 
resubmitting corrected applications.
    80. Non-mutually exclusive applications will be listed in a 
subsequent public notice to be released by the Bureaus. Such 
applications will not proceed to auction, but will proceed in 
accordance with instructions set forth in that public notice. All 
mutually exclusive applications will be considered under the relevant 
procedures for conflict resolution. Mutually exclusive applications 
proposing commercial stations will proceed to auction.
    81. After the application filing deadline on January 12, 2012, 
applicants can make only minor corrections to their applications. They 
will not be permitted to make major modifications (e.g., change 
construction permit selection, change control of the applicant, change 
the certifying official, claim eligibility for a higher percentage of 
bidding credit, or change identification of the application's proposed 
facilities as NCE).
    82. Commission staff will communicate only with an applicant's 
contact person or certifying official, as designated on the 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 the applicant's behalf. 
Authorizations may be sent by email to [email protected]. The FCC will 
not send auction registration material to anyone other than the contact 
person

[[Page 78653]]

listed on the applicant's FCC Form 175 or respond to a request for 
replacement registration material from anyone other than an authorized 
bidder, the contact person, or the certifying official listed on the 
applicant's FCC Form 175.

D. Upfront Payments--Due February 22, 2012

    83. In order to be eligible to bid in this auction, an upfront 
payment must be submitted and 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 93 Procedures Public Notice and must be received in the proper 
account at U.S. Bank before 6 p.m. ET on February 22, 2012.
i. Making Upfront Payments by Wire Transfer
    84. Wire transfer payments must be received before 6 p.m. ET on 
February 22, 2012. No other payment method is acceptable. 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.
    85. 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, write Wire Transfer--Auction Payment for 
Auction 93. In order to meet the upfront payment deadline, an 
applicant's payment must be credited to the Commission's account for 
Auction 93 before the deadline.
    86. 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 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 its 
upfront payment was timely received and that it was deposited into the 
proper account.
    87. All upfront payments must be made in U.S. dollars. All upfront 
payments must be made by wire transfer. Upfront payments for Auction 93 
go to a lockbox number different from the lockboxes used in previous 
FCC auctions. Failure to deliver a sufficient upfront payment as 
instructed in the Auction 93 Procedures Public Notice by the deadline 
on February 22, 2012, will result in dismissal of the short-form 
application and disqualification from participation in the auction. Any 
applicant that submits a short-form application but fails to timely 
submit a sufficient upfront payment will retain its status as an 
applicant in this auction and will remain subject to 47 CFR 1.2105(c) 
and 73.7002(d), but, having purchased no bidding eligibility, will not 
be eligible to bid.
ii. FCC Form 159
    88. An accurate and complete 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 this form is critical to ensuring correct 
crediting of upfront payments. Detailed instructions for completion of 
FCC Form 159 are included in Attachment C of the Auction 93 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
    89. Applicants must make upfront payments sufficient to obtain 
bidding eligibility on the construction permits 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 construction permit, a 
qualified bidder must have selected the construction permit on its FCC 
Form 175 and must have a current eligibility level that meets or 
exceeds the number of bidding units assigned to that construction 
permit. At a minimum, therefore, an applicant's total upfront payment 
must be enough to establish eligibility to bid on at least one of the 
construction permits selected on its FCC Form 175, or else the 
applicant will not be eligible to participate in the auction. An 
applicant does not have to make an upfront payment to cover all 
construction permits the applicant selected on its FCC Form 175, but 
only enough to cover the maximum number of bidding units that are 
associated with construction permits on which they wish 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.) The total upfront payment 
does not affect the total dollar amount the bidder may bid on any given 
construction permit.
    90. The Bureaus adopted an upfront payment and number of bidding 
units for each construction permit in Auction 93. Upfront payment 
amounts and bidding units are set forth in Attachment A of the Auction 
93 Procedures Public Notice.
    91. 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 construction permits on which it 
seeks to be active in any given round. Applicants should check their 
calculations carefully, as there is no provision for increasing a 
bidder's eligibility after the upfront payment deadline.
    92. 47 CFR 1.2106(a) requires that applicants that are former 
defaulters or delinquents must pay upfront payments 50 percent greater 
than non-former defaulters or non-former delinquents. 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. If an applicant is 
a former defaulter or delinquent, it must calculate its upfront payment 
for all of its identified construction permits by multiplying the 
number of bidding units on which it wishes to be active by 1.5.
    93. 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 
an applicant fails to submit a sufficient upfront payment to establish 
eligibility to bid on at least one of the construction permits selected 
on its FCC Form 175, the applicant will not

[[Page 78654]]

be eligible to participate in the auction. This ineligible applicant 
will retain its status as an applicant in Auction 93 and will remain 
subject to 47 CFR 1.2105(c) and 73.5002(d).

E. Applicant's Wire Transfer Information for Purposes of Refunds of 
Upfront Payments

    94. 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 that drop out of 
the auction completely (have exhausted all of their activity rule 
waivers and have no remaining bidding eligibility) may request a refund 
of their upfront payments before the close of the auction.
    95. To ensure that refunds of upfront payments are processed in an 
expeditious manner, the Commission is requesting that all pertinent 
information 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 should not be 
included in an FCC Form 175.) Specific instructions were provided in 
the Auction 93 Procedures Public Notice for the submission of wire 
transfer instructions by fax.

F. Auction Registration

    96. Approximately ten days before the auction, the Bureaus 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.
    97. 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 telephone number.
    98. Qualified bidders that do not receive this registration mailing 
will not be able to submit bids. Therefore, if this mailing is not 
received by noon on Tuesday, March 20, 2012, such a qualified bidder 
must call the Auctions Hotline at (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.
    99. 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. To request replacement of 
these items, call Technical Support at (877) 480-3201, option nine; 
(202) 414-1250; or (202) 414-1255 (TTY).

G. Remote Electronic Bidding

    100. 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 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 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 93.

H. Mock Auction--March 23, 2012

    101. All qualified bidders will be eligible to participate in a 
mock auction on Friday, March 23, 2012. The mock auction will enable 
bidders to become familiar with the FCC Auction System prior to the 
auction. The Bureaus strongly recommend that all bidders participate in 
this mock auction. Details will be announced by public notice.

IV. Auction

    102. The first round of bidding for Auction 93 will begin on 
Tuesday, March 27, 2012. The initial bidding schedule will be announced 
in a public notice listing the qualified bidders, which will be 
released approximately 10 days before the start of the auction.

A. Auction Structure

i. Simultaneous Multiple Round Auction
    103. In Auction 93, all construction permits will be auctioned in a 
single auction using the Commission's standard simultaneous multiple-
round auction format. This type of auction offers every construction 
permit for bid at the same time and consists of successive bidding 
rounds in which eligible bidders may place bids on individual 
construction permits. A bidder may bid on, and potentially win, any 
number of construction permits. Unless otherwise announced, bids will 
be accepted on all construction permits in each round of the auction 
until bidding stops on every construction permit.
ii. Eligibility and Activity Rules
    104. The Bureaus will use upfront payments to determine initial 
(maximum) eligibility (as measured in bidding units) for Auction 93. 
The amount of the upfront payment submitted by a bidder determines its 
initial bidding eligibility, the maximum number of bidding units on 
which a bidder may be active. Each construction permit is assigned a 
specific number of bidding units as listed in Attachment A of the 
Auction 93 Procedures Public Notice. Bidding units assigned to each 
construction permit do not change as prices rise during the auction. 
Upfront payments are not attributed to specific construction permits. 
Rather, a bidder may place bids on any of the construction permits 
selected on its FCC Form 175 as long as the total number of bidding 
units associated with those construction permits does not exceed its 
current eligibility.
    105. 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. Auction 93 will be a single-stage auction and 100 percent 
activity is required. In each round of the auction, a bidder desiring 
to maintain its current bidding eligibility is required to be active on 
100 percent of its bidding eligibility. That is, a bidder must place a 
bid (or bids) and/or have a provisionally winning bid (or bids) during 
each round of the auction.

[[Page 78655]]

    106. A bidder's activity level in a round is the sum of the bidding 
units associated with any construction permits covered by new and 
provisionally winning bids. A bidder is considered active on a 
construction permit in the current round if it is either the 
provisionally winning bidder at the end of the previous bidding round 
or if it submits a bid in the current round.
    107. 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.
iii. Activity Rule Waivers
    108. The Bureaus decided to provide bidders in Auction 93 with 
three activity rule waivers. Bidders may use an activity rule waiver in 
any round during the course of the auction. Use of an activity rule 
waiver preserves the bidder's eligibility despite its activity in the 
current round being below the required minimum activity level. An 
activity rule waiver applies to an entire round of bidding and not to a 
particular construction permit. 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.
    109. The FCC Auction System assumes that a bidder 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 in which a 
bidder's activity level is below the minimum required unless (1) the 
bidder has no activity rule waivers remaining or (2) the bidder 
overrides the automatic application of a waiver by reducing 
eligibility. If no waivers remain and the activity requirement is not 
satisfied, the FCC Auction System will permanently reduce the bidder's 
eligibility, possibly curtailing or eliminating the ability to place 
additional bids in the auction.
    110. A bidder with insufficient activity may wish to reduce its 
bidding eligibility rather than use an activity rule waiver. If so, the 
bidder must affirmatively override the automatic waiver mechanism 
during the bidding round by using the reduce eligibility function in 
the FCC Auction System. In this case, the bidder's eligibility is 
permanently reduced to bring it into compliance with the activity rule 
described above. Reducing eligibility is an irreversible action; once 
eligibility has been reduced, a bidder will not be permitted to regain 
its lost bidding eligibility, even if the round has not yet closed.
    111. Finally, a bidder may apply an activity rule waiver 
proactively as a means to keep the auction open without placing a bid. 
If a proactive waiver is applied (using the ``apply waiver'' function 
in the FCC Auction System) during a bidding round in which no bids are 
placed the auction will remain open and the bidder's eligibility will 
be preserved. However, an automatic waiver applied by the FCC Auction 
System in a round in which there are no new bids or proactive waivers 
will not keep the auction open. A bidder cannot submit a proactive 
waiver after bidding in a round, and applying a proactive waiver will 
preclude it from placing any bids in that round. 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.
iv. Auction Stopping Rules
    112. For Auction 93, the Bureaus will employ a simultaneous 
stopping rule approach, which means all construction permits remain 
available for bidding until bidding stops simultaneously on every 
construction permit. More specifically, bidding will close on all 
construction permits after the first round in which no bidder submits 
any new bids or applies a proactive waiver.
    113. The Bureaus also adopted for Auction 93 alternative versions 
of the simultaneous stopping rule. Under Option 1, the auction would 
close for all construction permits after the first round in which no 
bidder applies an activity rule waiver or places any new bids on any 
construction permit on which it is not the provisionally winning 
bidder. Thus, absent any other bidding activity, a bidder placing a new 
bid on a construction permit for which it is the provisionally winning 
bidder would not keep the auction open under this modified stopping 
rule.
    114. Under Option 2, the auction would close for all construction 
permits after the first round in which no bidder applies a waiver or 
places any new bids on any construction permit that is not FCC held. 
Thus, absent any other bidding activity, a bidder placing a new bid on 
a construction permit that does not already have a provisionally 
winning bid (an FCC-held construction permit) would not keep the 
auction open under this modified stopping rule.
    115. Under Option 3, the auction would close using a modified 
version of the simultaneous stopping rule that combines Options 1 and 2 
above.
    116. Under Option 4, the auction would end after a specified number 
of additional rounds. If the Bureaus invoke this special stopping rule, 
it will accept bids in the specified final round(s), after which the 
auction will close.
    117. Under Option 5, the auction would remain open even if no 
bidder places any new bids or applies a waiver. 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.
    118. The Bureaus proposed to exercise these options only in certain 
circumstances, for example, where the auction is proceeding unusually 
slowly or quickly, there is minimal overall bidding activity, or it 
appears likely that the auction will not close within a reasonable 
period of time or will close prematurely. Before exercising these 
options, the Bureaus are likely to attempt to change the pace of the 
auction. For example, the Bureaus may adjust the pace of bidding by 
changing the number of bidding rounds per day and/or the minimum 
acceptable bids. The Bureaus retain the discretion to exercise any of 
these options with or without prior announcement during the auction.
v. Auction Delay, Suspension, or Cancellation
    119. By public notice or by announcement during the auction, the 
Bureaus may delay, suspend, or cancel the auction in the event of 
natural disaster, technical obstacle, 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. Network interruption may cause the 
Bureaus to delay or suspend the auction. In such cases, the Bureaus, in 
their sole discretion, may elect to resume the auction starting from 
the beginning of the current round or from some previous round, or 
cancel the auction in its entirety. The Bureaus will exercise this 
authority solely at the discretion of the Bureaus, and not as a 
substitute for situations in which bidders may wish to apply their 
activity rule waivers.

B. Bidding Procedures

i. Round Structure
    120. 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

[[Page 78656]]

bidding round is followed by the release of round results. Multiple 
bidding rounds may be conducted each day.
    121. The Bureaus have the discretion to change the bidding schedule 
in order to foster an auction pace that reasonably balances speed with 
the bidders' need to study round results and adjust their bidding 
strategies. The Bureaus may change 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
    122. The Bureaus did not establish a reserve price for the 
construction permits to be offered in Auction 93. The Bureaus did 
establish minimum opening bids for each construction permit in this 
auction. The specific minimum opening bid amounts for the construction 
permits available in Auction 93 were specified in Attachment A of the 
Auction 93 Procedures Public Notice.
    123. In response to the Auction 93 Comment Public Notice, a 
commenter requested that the minimum opening bid for a construction 
permit at Grants Pass, Oregon, Channel 257A (MM-FM936-A) be reduced 
from $35,000 to $750. The Bureaus agreed that some reduction of the 
proposed minimum opening bid amount was warranted in this case, though 
the Bureaus did not believe that the reduction proposed by the 
commenter was justified. The Bureaus adopted a minimum opening bid (and 
corresponding upfront payment amount) for MM-FM936-A, at Grants Pass, 
Oregon, of $15,000.
iii. Bid Amounts
    124. In each round, an eligible bidder will be able to place a bid 
on a given construction permit in any of up to nine different amounts, 
if the bidder has sufficient eligibility to place a bid on the 
particular construction permit. The FCC Auction System interface will 
list the nine acceptable bid amounts for each construction permit. 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 permit.
    125. The first of the acceptable bid amounts is called the minimum 
acceptable bid amount. The minimum acceptable bid amount for a 
construction permit will be equal to its minimum opening bid amount 
until there is a provisionally winning bid for the construction permit. 
After there is a provisionally winning bid for a permit, the minimum 
acceptable bid amount will be a certain percentage higher. That is, the 
minimum acceptable bid amount will be calculated by multiplying the 
provisionally winning bid amount times one plus the minimum acceptable 
bid percentage. The Bureaus will begin the auction with a minimum 
acceptable bid percentage of 10 percent. Thus, the minimum acceptable 
bid amount will equal (provisionally winning bid amount) * (1.10), 
rounded.
    126. The eight additional bid amounts are calculated using the 
minimum acceptable bid amount and a bid increment percentage, which 
will be 5 percent for the beginning of Auction 93. The first additional 
acceptable bid amount equals the minimum acceptable bid amount times 
one plus the bid increment percentage, rounded. For Auction 93, the 
calculation is (minimum acceptable bid amount) * (1 + 0.05), rounded, 
or (minimum acceptable bid amount) * 1.05, rounded; the second 
additional acceptable bid amount equals the minimum acceptable bid 
amount times one plus two times the bid increment percentage, rounded, 
or (minimum acceptable bid amount) * 1.10, rounded; the third 
additional acceptable bid amount equals the minimum acceptable bid 
amount times one plus three times the bid increment percentage, 
rounded, or (minimum acceptable bid amount) * 1.15, rounded; etc. The 
Bureaus will round the results of these calculations using the standard 
rounding procedures for auctions.
    127. The Bureaus retain the discretion to change the minimum 
acceptable bid amounts, the minimum acceptable bid percentage, the bid 
increment percentage, and the number of acceptable bid amounts if the 
Bureaus determine that circumstances so dictate. The Bureaus retain the 
discretion to do so on a construction permit-by-construction permit 
basis. The Bureaus retain the discretion to limit (a) the amount by 
which a minimum acceptable bid for a construction permit may increase 
compared with the corresponding provisionally winning bid, and (b) the 
amount by which an additional bid amount may increase compared with the 
immediately preceding acceptable bid amount. For example, the Bureaus 
could set a $10,000 limit on increases in minimum acceptable bid 
amounts over provisionally winning bids. Thus, if calculating a minimum 
acceptable bid using the minimum acceptable bid percentage results in a 
minimum acceptable bid amount that is $12,000 higher than the 
provisionally winning bid on a construction permit, the minimum 
acceptable bid amount would instead be capped at $10,000 above the 
provisionally winning bid. If the Bureaus exercise this discretion, the 
Bureaus will alert bidders by an announcement in the FCC Auction System 
during the auction.
iv. Provisionally Winning Bids
    128. At the end of each bidding round, a provisionally winning bid 
will be determined based on the highest bid amount received for each 
construction permit. A provisionally winning bid will remain the 
provisionally winning bid until there is a higher bid on the same 
construction permit at the close of a subsequent round. Provisionally 
winning bids at the end of the auction become the winning bids. 
Provisionally winning bids count toward activity for purposes of the 
activity rule.
    129. The Bureaus 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 construction permit in a given round 
(i.e., tied bids). Specifically, 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
    130. 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 93. Telephonic bid assistants are required to 
use a script when entering bids placed by telephone. Telephonic bidders 
must 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.
    131. A bidder's ability to bid on specific construction permits is 
determined by two factors: (1) the construction permits 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 
construction permits the bidder selected on its FCC Form 175.
    132. 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

[[Page 78657]]

personal identification number PIN created by the bidder. The Bureaus 
strongly encouraged bidders to print a round summary for each round 
after they have completed all of their activity for that round.
    133. In each round, an eligible bidder will be able to place bids 
on a given construction permit in as many as nine pre-defined bid 
amounts, if the bidder has sufficient eligibility to place a bid on the 
particular construction permit. For each construction permit, 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 text files containing bid information to be uploaded.
    134. Until a bid has been placed on a construction permit, the 
minimum acceptable bid amount for that permit will be equal to its 
minimum opening bid amount. Once there are bids on a permit, minimum 
acceptable bids for the following round will be determined.
    135. During a round, an eligible bidder may submit bids for as many 
construction permits as it wishes (providing that it is eligible to bid 
on the specific permits), remove bids placed in the current bidding 
round, or permanently reduce eligibility. If multiple bids are 
submitted for the same construction permit in the same round, the 
system takes the last bid entered as that bidder's bid for the round. 
Bidding units associated with construction permits for which the bidder 
has removed bids do not count towards current activity.
vi. Bid Removal and Bid Withdrawal
    136. In Auction 93, each bidder will have the option of removing 
any bids placed in a round provided that such bids are removed before 
the close of that bidding round. By using the remove bids function in 
the FCC Auction System, a bidder may effectively unsubmit any bid 
placed within that round. A bidder removing a bid placed in the same 
round is not subject to withdrawal payments. Removing a bid will affect 
a bidder's activity for the round in which it is removed, i.e., a bid 
that is removed does not count toward bidding activity. Once a round 
closes, a bidder may no longer remove a bid.
    137. The Bureaus will prohibit bidders in Auction 93 from 
withdrawing any bids after the round in which the bids were placed has 
ended. Bidders are cautioned to select bid amounts carefully because no 
bid withdrawals will be allowed, even if a bid was mistakenly or 
erroneously made.
vii. Round Results
    138. Reports reflecting bidders' identities for Auction 93 will be 
available before and during the auction. Thus, bidders will know in 
advance of this auction the identities of the bidders against which 
they are bidding.
    139. Bids placed during a round will not be made public until the 
conclusion of that round. After a round closes, the Bureaus will 
compile reports of all bids placed, current provisionally winning bids, 
new minimum acceptable bid amounts for the following round, whether the 
construction permit is FCC held, and bidder eligibility status (bidding 
eligibility and activity rule waivers), and post the reports for public 
access.
viii. Auction Announcements
    140. The Commission will use auction announcements to report 
necessary information such as schedule changes. All auction 
announcements will be available by clicking a link in the FCC Auction 
System.

V. Post-Auction Procedures

    141. 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, 
final payments, and the long-form applications (FCC Forms 301).

A. Down Payments

    142. 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 93 to twenty percent of the net 
amount of its winning bids (gross bids less any applicable new entrant 
bidding credits).

B. Final Payments

    143. 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.

C. Long-Form Application (FCC Form 301)

    144. The Commission's rules currently provide that within thirty 
days following the close of bidding and notification to the winning 
bidders, unless a longer period is specified by public notice, winning 
bidders must electronically submit a properly completed long-form 
application (FCC Form 301, Application for Construction Permit for 
Commercial Broadcast Station), and required exhibits for each 
construction permit won through Auction 93. Winning bidders claiming 
new entrant status must include an exhibit demonstrating 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.

D. Default and Disqualification

    145. 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). This payment consists of a deficiency payment, equal to 
the difference between the amount of the Auction 93 bidder's winning 
bid and the amount of the winning bid the next time a construction 
permit 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 percentage of the 
applicable bid to be assessed as an additional payment for defaults in 
Auction 93 was established at twenty percent of the applicable bid.
    146. 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.

    Federal Communications Commission.
Gary Michaels,
Deputy Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. 2011-32430 Filed 12-16-11; 8:45 am]
BILLING CODE 6712-01-P