[Federal Register Volume 81, Number 177 (Tuesday, September 13, 2016)]
[Notices]
[Pages 62886-62888]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-22105]


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FEDERAL COMMUNICATIONS COMMISSION

[GN Docket No. 12-268; AU Docket No. 14-252; WT Docket No. 12-269; DA 
16-990]


Clearing Target of 114 Megahertz Set for Stage 2 of the Broadcast 
Television Spectrum Incentive Auction; Stage 2 Bidding in the Reverse 
Auction Will Start on September 13, 2016

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: The Incentive Auction Task Force and Wireless 
Telecommunications Bureau announce the spectrum clearing target of 114 
megahertz and band plan for Stage 2 of the incentive auction and that 
bidding in Stage 2 of the reverse auction is scheduled to begin on 
September 13, 2016. Also announces details and dates regarding bidding 
and the availability of educational and informational materials for 
reverse and forward auction bidders eligible to participate in Stage 2; 
the availability of Stage 2 bidding and timing information in the 
Incentive Auction Public Reporting System; and the importance of bidder 
contingency plans and reminds each reverse and forward auction 
applicant of its continuing obligations under the FCC's rules.

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 or 
forward auction legal questions, refer to the contact information 
listed in the Incentive Auction Stage 2 Clearing Target Public Notice.

SUPPLEMENTARY INFORMATION: This is a summary of the Incentive Auction 
Stage 2 Clearing Target Public Notice, GN Docket No. 12-268, AU Docket 
No. 14-252, WT Docket No. 12-269, DA 16-990, released August 31, 2016. 
The complete text of the Incentive Auction Stage 2 Clearing Target 
Public Notice is available for public inspection and copying from 8:00 
a.m. to 4:30 p.m. Eastern Time (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 1000 Web site at http://www.fcc.gov/auctions/1000, 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 114 megahertz spectrum 
clearing target that has been set by the Auction System's optimization 
procedure and the associated band plan for Stage 2 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 Stage 2 of the forward auction. The Task Force and Bureau also 
provide details and specific dates regarding bidding and the 
availability of educational materials and remind reverse and forward 
auction applicants of their continuing obligations.

I. Stage 2 Clearing Target and Band Plan

    2. Auction System's clearing target determination procedure has set 
a spectrum clearing target of 114 megahertz for Stage 2 of the 
incentive auction. Under the band plan associated with this spectrum 
clearing target, 90 megahertz, or 90 paired blocks, of licensed 
spectrum will be offered in the

[[Page 62887]]

forward auction on a near-nationwide basis.
    3. The generic license blocks offered in Stage 2 of the forward 
auction under this band plan will consist of a total of 3688 Category 1 
blocks (zero to 15 percent impairment) and a total of five Category 2 
blocks (greater than 15 percent and up to 50 percent impairment). 
Approximately 99.9 percent of the blocks offered will be Category 1 
blocks, and 99.8 percent of the Category 1 blocks will be zero percent 
impaired. Attached to the Incentive Auction Stage 2 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 clearing target for Stage 2 was determined by the procedure 
the Commission adopted in the Auction 1000 Bidding Procedures Public 
Notice, 80 FR 61917, October 14, 2015, using the same objectives as in 
the initial clearing target optimization and taking into account the 
additional channel in the TV band and any participating stations that 
have dropped out of the auction in the previous stage. Based on the new 
provisional television channel assignment plan, the nationwide impaired 
weighted-pops were calculated on a 2x2 cell level and the one-block-
equivalent nationwide standard for impairments was applied.

II. Important Information Concerning the Reverse Auction (Auction 1001)

    5. Online Stage 2 Tutorial. The Task Force and Bureau will make 
available an online tutorial on bidding procedures specific to Stage 2 
of the reverse auction (and any subsequent stage, if necessary) on 
Thursday, September 1, 2016. This new tutorial will be accessible from 
the Auction 1001 Web site through a link under the ``Education'' 
section. Once posted, it will remain available and accessible on the 
Auction 1001 Web site for reference.
    6. Accessing the Auction System for Stage 2. Starting at 10:00 a.m. 
Eastern Time (ET) on Wednesday, September 7, 2016, any bidder that had 
one or more stations with the status ``Frozen--Provisionally Winning'' 
at the end of the previous stage can log in to the Reverse Auction 
Bidding System for Stage 2 and view the bidding status, and, where 
applicable, the following information for round 1 of the new stage for 
each of the bidder's stations that qualified to participate in the 
clock rounds of the reverse auction: Initial bid option, available bid 
options, vacancy ranges, and clock price offers.
    7. A bidder will need to use the RSA SecurID[supreg] tokens (RSA 
tokens) it used for placing bids in the previous stage to access the 
Reverse Auction Bidding System for Stage 2. RSA tokens with previously 
set personal identification numbers (PINs) may be used without setting 
a new PIN. Any authorized bidder that has not already set a PIN for his 
or her designated RSA token (e.g., an authorized bidder recently 
identified on Form 177 or one using a replacement RSA token) must set a 
PIN as described in the materials sent with the Second Confidential 
Status Letter. Each bidder will be able to access the Reverse Auction 
Bidding System at the same web address used during the previous stage. 
In addition, the FCC Auction Bidder Line phone number for Stage 2 will 
be the same number used for the previous stage.
    8. Returning RSA Tokens. Each bidder that did not have any stations 
with the status ``Frozen--Provisionally Winning'' at the end of the 
previous stage will be sent a pre-addressed, stamped envelope to return 
its RSA tokens.
    9. Clocks Rounds Start Date and Round Schedule. Bidding in the 
clock rounds of Stage 2 of Auction 1001 will begin on Tuesday, 
September 13, 2016, on the following schedule: Bidding Round (10:00 
a.m.-2:00 p.m. ET). Starting on Wednesday, September 14, 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 adjustment by 
announcement in the Reverse Auction Bidding System during the course of 
the auction.
    10. Reset Base Clock Price and Clock Decrement for Round 1 of Stage 
2. The base clock price has been reset to $900 per unit of volume for 
Stage 2 of the reverse auction. The price decrement for round 1 of 
Stage 2 of the reverse auction will be five percent of the reset base 
clock price.

III. Important Information Concerning the Forward Auction (Auction 
1002)

    11. Bidding in Stage 2. Bidding in the clock phase of Stage 2 of 
the forward auction will begin on the next business day after the close 
of bidding in Stage 2 of the reverse auction. The schedule for bidding 
in Stage 2 of the forward auction will be announced in the Forward 
Auction Bidding System and in the Incentive Auction Public Reporting 
System (PRS). The PRS can be accessed directly at auctiondata.fcc.gov 
and from a link under the Results section of the Auction 1001 Web site 
(www.fcc.gov/auctions/1001) and the Auction 1002 Web site (www.fcc.gov/auction/1002).
    12. Accessing the Forward Auction Bidding System in Stage 2. Any 
bidder that is eligible to bid in Stage 2 of the forward auction will 
be able to access the Forward Auction Bidding System beginning at 10:00 
a.m. ET on Thursday, September 8, 2016, using the same RSA tokens, web 
address, and instructions provided in the bidder registration materials 
from Stage 1 of the forward auction. Any bidder with zero eligibility 
by the end of Stage 1 will not be eligible to bid in Stage 2 of the 
forward auction. Upon logging in to the Forward Auction Bidding System, 
an eligible bidder can download detailed impairment information for 
Stage 2, as well as the stage transition files. The detailed impairment 
information and bidder-specific information, including stage transition 
files and Stage 1 bidding information, are non-public and are provided 
only to eligible bidders to help guide their bidding in Stage 2 of the 
forward auction. This information will not be disclosed publicly until 
after the auction concludes.
    13. Returning RSA Tokens. Each bidder that is no longer eligible to 
participate in the forward auction (i.e., any bidder that has zero 
eligibility by the end of Stage 1) will be sent a pre-addressed, 
stamped envelope to return its RSA tokens.
    14. Rule for Round 1 of Stage 2. Starting in the first round of 
Stage 2, each bidder must be active on at least 95 percent of its 
bidding eligibility to maintain its bidding eligibility for the next 
round. Any changes to the activity requirement in subsequent rounds 
will be announced via the Forward Auction Bidding System. Prior to the 
start of Stage 2 of the forward auction, a bidder may view its initial 
eligibility and required activity for round 1 by downloading the My 
Bidder Status file under the Bid/Status tab.
    15. Clock Increment for Round 1 of Stage 2. An increment of five 
percent will be used to set clock prices for products in round 1 of 
Stage 2 of the forward auction. Prior to the announcement of the 
forward auction bidding schedule for Stage 2, a bidder may view the 
clock prices for round 1 by downloading the Sample Bids file in the 
Forward Auction Bidding System.

IV. Public Reporting System

    16. As was the case for Stage 1 of the incentive auction, publicly 
available bidding and timing information for Stage 2 of the reverse 
auction and the forward auction will be accessible through the PRS. The 
PRS will display

[[Page 62888]]

the same types of bidding and other information for Stage 2 as was 
available for Stage 1. For more information about the types of bidding 
and other information available in the PRS, please see the Public 
Reporting System Public Notice.

V. Bidding Contingency Plan

    17. The Task Force and Bureau remind each bidder that it should 
develop a comprehensive contingency plan that can be quickly 
implemented in case difficulties arise when participating in the 
incentive auction. While the Commission will correct any problems with 
Commission-controlled facilities, each bidder is solely responsible for 
anticipating and overcoming problems such as bidder computer failures 
or other technical issues, loss of or problems with data connections 
(including those used to access and place bids in the Reverse Auction 
Bidding System or the Forward Auction Bidding System), telephone 
service interruptions, adverse local weather conditions, unavailability 
of its authorized bidders, or the loss or breach of confidential 
security codes.
    18. A bidder should ensure that each of its authorized bidders can 
access and place bids in the Reverse Auction Bidding System or Forward 
Auction Bidding System, and it should not rely upon the same computer 
or data connection to do so. Contingency plans will ideally include 
arrangements for accessing and placing bids in the Reverse Auction 
Bidding System or the Forward Auction Bidding System from one or more 
alternative locations. A bidder's contingency plan might also include, 
among other arrangements, calling the Auction Bidder Line.
    19. Each reverse auction bidder is further reminded that a failure 
to submit a bid for a station with the status ``Bidding'' is considered 
to be a missing bid, and the Reverse Auction Bidding System will 
automatically submit a bid to drop out of the auction for all stations 
with missing bids. The status of a station that bids to drop out of the 
auction will be ``Exited--Voluntarily'' once bid processing is complete 
for the round (unless the station first becomes frozen). Once a station 
has the status ``Exited,'' a bidder cannot bid for the station in any 
subsequent round or stage.
    20. Each forward auction bidder is reminded that its failure to 
submit a bid during a clock round will be considered a missing bid and 
will be treated as a bid for zero blocks, at the lowest price in the 
price range for the round, for any products in which the bidder had 
processed demand from the previous round. If there is insufficient 
excess demand, the ``missing'' bid may be partially applied or not 
applied at all and the bidder will continue to have processed demand 
for the product in the next round. If the ``missing'' bid is partially 
or fully applied, that bidder's eligibility may be irrevocably reduced 
in the next round.

VI. Continuing Obligations

    21. Due Diligence. The Task Force and Bureau remind each reverse 
and forward auction bidder that it is solely responsible throughout the 
auction for investigating and evaluating all legal, technical, and 
marketplace factors and risks that may have a bearing on the bid(s) it 
submits in the incentive auction. For more information, each bidder 
should review the Auction 1000 Application Procedures Public Notice, 80 
FR 66429, October 29, 2015.
    22. Prohibited Communications Reminder. The Task Force and Bureau 
remind all full power and Class A broadcast television licensees, as 
well as forward auction applicants, that they remain subject to the 
Commission's rules prohibiting certain communications in connection 
with Commission auctions. For communications among broadcasters, and 
between broadcasters and forward auction applicants, the prohibited 
communication period ends when the results of the incentive auction are 
announced by public notice. For communications among forward auction 
applicants, the period ends on the deadline for making down payments on 
winning bids. A party that is subject to the prohibition remains 
subject to the prohibition regardless of developments during the 
auction process.
    23. The Task Force and Bureau further remind each full power and 
Class A broadcast television licensee that even though communicating 
whether or not a party filed an application to participate in the 
reverse auction does not violate the rules prohibiting certain 
communications, communicating that a party ``is not bidding'' in or has 
``exited'' the reverse auction could constitute an apparent violation 
that needs to be reported. All forward auction applicants, including 
those that did not qualify to bid and those that have since lost 
eligibility to bid in the forward auction, are also reminded that they 
remain subject to the rules prohibiting certain communications until 
the deadline for making down payments on winning bids.
    24. The Commission's rules require covered parties to report 
violations of the prohibition of certain communications to Margaret W. 
Wiener, Chief of the Auctions and Spectrum Access Division, Wireless 
Telecommunications Bureau, by the most expeditious means available. Any 
such report should be submitted by email to Ms. Wiener at the following 
email address: [email protected]. Any report in hard copy 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 6-C217, 
Washington, DC 20554. Failure to make a timely report under the rule 
constitutes a continuing violation of the rule, with attendant 
consequences.
    25. For a thorough discussion of the prohibition of certain 
communications during the incentive auction, please refer to the 
Prohibited Communications Public Notice, 80 FR 63216, October 19, 2015.
    26. Making Modifications to Applications. The Task Force and Bureau 
remind each reverse and forward auction applicant that the Commission's 
rules require an applicant to maintain the accuracy and completeness of 
information furnished in its application to participate in Auctions 
1001 and 1002, respectively. Each applicant should amend its 
application to furnish additional or corrected information within five 
days of a significant occurrence, or no more than five days after the 
applicant becomes aware of the need for amendment. Any applicant that 
needs to make changes must do so using the procedures described in the 
Auction 1000 Application Procedures Public Notice and the Auction 1002 
Qualified Bidders Public Notice.
    27. To make changes to an FCC Form 177 or FCC Form 175 while the 
Auction System is available, the applicant must make those changes 
electronically using the Auction System and submit a letter briefly 
summarizing the changes to its FCC Form 177 by email to 
[email protected], or to its FCC Form 175 by email to 
[email protected]. To make changes at a time when the Auction System 
is unavailable, the applicant must make those changes using the 
procedures described in the Auction 1000 Application Procedures Public 
Notice.

Federal Communications Commission.
Gary D. Michaels,
Deputy Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. 2016-22105 Filed 9-9-16; 4:15 pm]
 BILLING CODE 6712-01-P