[Federal Register Volume 81, Number 94 (Monday, May 16, 2016)]
[Notices]
[Pages 30302-30304]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-11432]


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FEDERAL COMMUNICATIONS COMMISSION

[GN Docket No. 12-268; AU Docket No. 14-252; WT Docket No. 12-269; DA 
16-453]


Initial Clearing Target of 126 Megahertz Set for the Broadcast 
Television Spectrum Incentive Auction; Bidding in the Clock Phase of 
the Reverse Auction (Auction 1001) Will Start on May 31, 2016

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: The Incentive Auction Task Force and Wireless 
Telecommunications Bureau announce the initial clearing target of 126 
megahertz for the Broadcast Television Spectrum Incentive Auction and 
that the bidding in the clock phase of the reverse auction is scheduled 
to begin on May 31, 2016. This document also announces the mailing of 
Final Confidential Status Letters, the number of forward auction 
blocks, and details and dates regarding the availability of educational 
and informational materials and bidding for reverse auction applicants 
that are qualified to bid in the reverse auction clock phase.

FOR FURTHER INFORMATION CONTACT: Wireless Telecommunications Bureau, 
Auctions and Spectrum Access Division: For general auction questions, 
contact Linda Sanderson at (717) 338-2868. For reverse auction legal 
questions, contact Erin Griffith or Kathryn Hinton at (202) 418-0660.

SUPPLEMENTARY INFORMATION: This is a summary of the Incentive Auction 
Clearing Target Public Notice, GN Docket No. 12-268, AU Docket No. 14-
252, WT Docket No. 12-269, DA 16-453, released on April 29, 2016. The 
complete text of the Incentive Auction Clearing Target Public Notice is 
available for public inspection and copying from 8:00 a.m. to 4:30 p.m. 
ET Monday through Thursday or from 8:00 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 complete text is also available 
on the Commission's Web site at http://wireless.fcc.gov, the Auction 
1001 Web site at http://www.fcc.gov/auctions/1001, or by using the 
search function on the ECFS Web page at http://www.fcc.gov/cgb/ecfs/. 
Alternative formats are available to persons with disabilities by 
sending an email to [email protected] or by calling the Consumer & 
Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432 
(TTY).
    1. The Incentive Auction Task Force (Task Force) and the Wireless 
Telecommunications Bureau (Bureau) announce the 126 megahertz initial 
spectrum clearing target that has been set by the Auction System's 
initial clearing target determination procedure and the associated band 
plan for the initial stage of the incentive auction, as well as the 
number of Category 1 and Category 2 generic license blocks in each 
Partial Economic Area (PEA) that will be offered in the initial stage 
during the forward auction (Auction 1002). The Task Force and Bureau 
also announce that they will send a confidential letter (the Final 
Confidential Status Letter) to inform each applicant that was permitted 
to make an initial commitment in the reverse auction (Auction 1001) of 
its status with respect to the clock phase of the reverse auction. 
Finally, the Task Force and Bureau provide details and specific dates 
regarding the availability of educational materials and the bidding in 
the clock phase of the reverse auction.

I. Initial Clearing Target and Band Plan

    2. The Auction System's initial clearing target determination 
procedure has set an initial spectrum clearing target of 126 megahertz. 
Under the band plan associated with this spectrum clearing target, 100 
megahertz, or 10 paired blocks, of licensed spectrum will be offered in 
the forward auction on a near-nationwide basis.
    3. The generic license blocks offered in the initial stage during 
the forward auction under this band plan will consist of a total of 
4030 ``Category 1'' blocks (zero to 15 percent impairment) and a total 
of 18 ``Category 2'' blocks (greater than 15 percent and up to 50 
percent impairment). Approximately 97 percent of the blocks offered for 
the forward auction will be ``Category 1'' blocks, and 99 percent of 
the ``Category 1'' blocks will be zero percent impaired. Attached to 
the Incentive Auction Clearing Target Public Notice as Appendix A is a 
list indicating the number of ``Category 1'' and ``Category 2'' blocks 
available in each PEA.
    4. The initial clearing target was determined by the procedure the 
Commission adopted in the Auction 1000 Bidding Procedures Public 
Notice, 80 FR 61917, October 14, 2015. Based on the initial commitments 
made by broadcast applicants seeking to bid in the clock phase of 
Auction 1001, the procedure identified a provisional assignment of 
eligible television stations to channels for each possible clearing 
target with the primary objective of minimizing impairments to forward 
auction licenses, consistent with the Commission's statutory obligation 
to make all reasonable efforts to preserve stations' populations served 
and coverage areas and its international arrangements with Canada and 
Mexico. The initial clearing target announced is the highest possible 
clearing target and associated band plan for which the provisional 
assignment satisfies the optimization objectives and the near-
nationwide standard for impairments. If a subsequent stage is 
necessary, the clearing target determination procedure will be applied 
to select a new clearing target and corresponding band plan.

II. Final Confidential Status Letters for Reverse Auction Applicants

    5. The Bureau will send to the contact person for each applicant 
that was permitted to make an initial commitment in Auction 1001 a 
Final Confidential Status Letter to inform the applicant of its status. 
The letter will notify the applicant, for each station included in the 
application, either that (1) the station is qualified to participate in 
the clock phase of the reverse auction; (2) the station is not 
qualified because no initial commitment was made for that station; (3) 
the station is not qualified because the commitment(s) made by the 
applicant for that station could not be accommodated; or (4) the 
station is not qualified because the Auction System determined that the 
station is not needed to meet the initial or any subsequent clearing 
target.
    6. Applicants with one or more qualified stations will be deemed 
qualified bidders for the clock phase of Auction 1001 and will be 
automatically registered for the auction. The initial commitment is the 
station's unconditional, irrevocable offer to fulfill the terms of the 
commitment, which if accepted by the Commission, becomes a

[[Page 30303]]

binding obligation on the applicant. In determining the initial 
clearing target, the Auction System assigned each qualified station to 
an initial relinquishment option corresponding to an initial commitment 
made for the station. Qualified bidders will need to log in to the 
bidding system when it becomes available during the preview period to 
see the initial relinquishment option each qualified station is 
assigned to at the start of the clock phase of the reverse auction. 
They will also receive instructions with the Final Confidential Status 
Letter for participating in the mock auction and for placing bids in 
the clock phase of the reverse auction, using their previously received 
RSA SecurID[supreg] tokens.
    7. Receipt of the registration mailing is critical to participating 
in both the mock auction and the clock phase of the reverse auction. 
Therefore, any applicant that has not received the Final Confidential 
Status Letter package by 12:00 noon Eastern Time (ET) on Wednesday, May 
4, 2016, should contact the Auctions Hotline at (717) 338-2868. The 
contact person for each applicant is responsible for ensuring that each 
authorized bidder receives all of the information and materials.
    8. If the Final Confidential Status Letter indicates that the 
Auction System has determined that a station is not qualified, the 
applicant will not be permitted to make any bids for that station in 
the reverse auction clock phase. Applicants without any qualified 
stations will not be deemed qualified bidders and will receive along 
with the Final Confidential Status Letter instructions for returning 
their RSA SecurID[supreg] tokens. The Task Force and Bureau remind all 
full power and Class A broadcast television licensees, including 
applicants that are not deemed qualified bidders, that they remain 
subject to the Commission's rules prohibiting certain communications in 
connection with Commission auctions until the completion of the forward 
auction as announced by the Commission by public notice. A party that 
is subject to the prohibition remains subject to the prohibition 
regardless of developments during the auction process. In addition, 
though communicating whether or not a party filed an application does 
not violate the rules, communicating that a party ``is not bidding'' in 
the auction could constitute an apparent violation that needs to be 
reported. In other words, an applicant that is not qualified to bid may 
nevertheless violate the prohibition by communicating its status to 
another covered party, regardless of the reason that it is not 
qualified.

III. Important Upcoming Events and Dates for Auction 1001

    9. FCC Incentive Auction Reverse Auction Bidding System User Guide. 
The Task Force and Bureau will make available an ``FCC Incentive 
Auction Reverse Auction Bidding System User Guide,'' which will 
describe the features of the Auction System that will be used to bid in 
the clock phase of the reverse auction. This user guide will be emailed 
to each authorized bidder on May 5, 2016. It will also be made 
available on the Commission's Auction 1001 Web page through a link in 
the ``Education'' section on May 5, 2016. Once posted, the user guide 
will remain available and accessible on the Auction 1001 Web page 
(www.fcc.gov/auctions/1001) for reference.
    10. Online Bidding Tutorial. An online tutorial regarding bidding 
in the clock phase of the reverse auction will be available on May 18, 
2016. The online tutorial will be accessible from the Auction 1001 Web 
page through a link in the ``Education'' section. Once posted, the 
tutorial will remain available and accessible on the Auction 1001 Web 
page for reference.
    11. Bidding Preview Period. The Auction System will be available 
during a preview period that will open at 10:00 a.m. ET on May 23, 
2016, and close at 6:00 p.m. ET on May 24, 2016. During this preview 
period, authorized bidders can log in and view the list of stations for 
which they may make bids in the clock phase, each station's bidding 
status, the initial relinquishment option assigned to the station, and, 
where applicable, available bid options with associated vacancy ranges 
and next round clock price offers.
    12. Clock Phase Workshop. On May 24, 2016, from 10:00 a.m. ET to 
1:00 p.m. ET, the Task Force, in conjunction with the Media and 
Wireless Telecommunications Bureaus (the Bureaus), will host a public 
workshop on the bidding system that will be used for bidding in the 
clock phase of Auction 1001. Details about the workshop and remote 
viewing will be released at a later date. After the event, a recording 
of the clock phase workshop will be accessible from the Auction 1001 
Web page through a link in the ``Education'' section. Once posted, the 
clock phase workshop will remain available and accessible on the 
Auction 1001 Web page for reference.
    13. Mock Auction and Mock Auction Preview Period. The Task Force 
and Bureaus will conduct one mock auction for all bidders qualified to 
bid in the clock phase of Auction 1001 beginning on May 25, 2016, and 
ending on May 26, 2016. The schedule of rounds for the mock auction is 
as follows. On May 25, 2016: Mock Bidding Round 1 (10:00 a.m.--12:00 
p.m. ET) and Mock Bidding Round 2 (3:00 p.m.--5:00 p.m. ET). On May 26, 
2016: Mock Bidding Round 3 (10:00 a.m.--11:00 a.m. ET); Mock Bidding 
Round 4 (1:00 p.m.--2:00 p.m. ET); and Mock Bidding Round 5 (4:00 
p.m.--5:00 p.m. ET).
    14. The mock auction will allow qualified bidders to become 
familiar with the clock phase bidding system and to ask Commission 
auction and technical support staff questions about the system and 
auction conduct. The Auction System will provide each bidder with a 
number and variety of stations for the mock auction similar to what the 
bidder will have during the actual clock phase of the reverse auction. 
The station(s) assigned to a bidder in the mock auction will be 
hypothetical, rather than the bidder's actual station(s) that it is 
qualified to bid for in the clock phase of the reverse auction, and the 
price offers that bidders see in the mock auction will not be the same 
as the actual price offers they see in the reverse auction itself. The 
mock auction will simulate the start of the auction, and each bidder 
will be allowed to submit bids for the stations shown. If a bidder does 
not make bids for a station, the station will be eliminated from 
further bidding in the mock auction. A bidder should take advantage of 
the mock auction to practice taking actions it may wish to take during 
actual bidding in the clock phase of Auction 1001 and to further 
familiarize itself with the bidding software.
    15. The Task Force and Bureaus will conduct the mock auction over 
the Internet and provide the option of bidding by telephone. During a 
preview period that will open on the first day of the mock auction, May 
25, 2016, at 9:00 a.m. ET and remain open until 10:00 a.m. ET, 
authorized bidders will be able to log in and view the list of stations 
for which they may make bids during the mock auction. A qualified 
bidder will be able to access the mock auction during the preview 
period at the link provided in the materials that accompany the Final 
Confidential Status Letter. That link will also be used to bid in the 
mock auction. The Task Force and Bureaus strongly recommend that all 
qualified bidders participate in the mock auction.
    16. Clocks Rounds Start Date and Round Schedule. Bidding in the 
clock phase of Auction 1001 will begin on May 31, 2016, on the 
following schedule: May 31, 2016: Bidding Round (10:00 a.m.-4:00 p.m. 
ET) and June 1, 2016: Bidding Round (10:00 a.m.-2:00

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p.m. ET). Starting on June 2, 2016, and continuing until further 
notice, the schedule will be: Bidding Round (10:00 a.m.-12:00 p.m. ET) 
and Bidding Round (3:00 p.m.-5:00 p.m. ET). The Bureau may adjust the 
number and length of bidding rounds based upon its monitoring of the 
bidding and assessment of the reverse auction's progress. The Bureau 
will provide notice of any adjustments by announcement in the Auction 
System during the course of the auction.

Federal Communications Commission.
Gary D. Michaels,
Deputy Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. 2016-11432 Filed 5-13-16; 8:45 am]
 BILLING CODE 6712-01-P