[Federal Register Volume 81, Number 209 (Friday, October 28, 2016)]
[Notices]
[Pages 75055-75058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26196]


-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

[GN Docket No. 12-268; AU Docket No. 14-252; WT Docket No. 12-269; DA 
16-1213]


Clearing Target of 108 Megahertz Set for Stage 3 of the Broadcast 
Television Spectrum Incentive Auction; Stage 3 Bidding in the Reverse 
Auction Will Start on November 1, 2016

AGENCY: Federal Communications Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Incentive Auction Task Force and Wireless 
Telecommunications Bureau announce the spectrum clearing target of 108 
megahertz and band plan for Stage 3 of the incentive auction, and that 
bidding in Stage 3 of the reverse auction is scheduled to begin on 
November 1, 2016. This document 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 3; the availability of Stage 3 bidding and timing 
information in the Incentive Auction Public Reporting System; and the 
importance of bidder contingency plans. Finally, this document 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 3 Clearing Target Public Notice.

SUPPLEMENTARY INFORMATION: This is a summary of the Incentive Auction 
Stage 3 Clearing Target Public Notice, GN Docket No. 12-268, AU Docket 
No. 14-252, WT Docket No. 12-269, DA 16-1213, released October 25, 
2016. The complete text of the Incentive Auction Stage 3 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 108 megahertz spectrum 
clearing target that has been set by the Auction System's optimization 
procedure and the associated band plan for Stage 3 of the incentive 
auction, as well as the number of Category 1 and Category 2 generic 
license blocks in

[[Page 75056]]

each Partial Economic Area (PEA) that will be offered in Stage 3 of the 
forward auction. The Task Force and Bureau also provide details and 
specific dates regarding bidding and the continuing availability of 
educational materials, and remind reverse and forward auction 
applicants of their continuing obligations.

I. Stage 3 Clearing Target and Band Plan

    2. The Auction System's clearing target determination procedure has 
set a spectrum clearing target of 108 megahertz for Stage 3 of the 
incentive auction. Under the band plan associated with this spectrum 
clearing target, 80 megahertz, or 8 paired blocks, of licensed spectrum 
will be offered in the forward auction on a near-nationwide basis.
    3. The generic license blocks offered in Stage 3 of the forward 
auction under this band plan will consist of a total of 3,301 Category 
1 blocks (zero to 15 percent impairment) and a total of two 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 99.9 percent of the Category 1 blocks will be zero percent 
impaired. Attached to the Incentive Auction Stage 3 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 3 was determined by applying 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. Educational Materials. The Task Force and Bureau remind all 
reverse auction bidders of the continuing availability of Educational 
materials regarding bidding in the clock phase of the reverse auction 
on the Auction 1001 Web site under the Education section. Specifically, 
such bidders are encouraged to review the Reverse Auction Clock Phase 
Tutorial and the Reverse Auction New Stage Tutorial prior to the start 
of Stage 3 of the reverse auction.
    6. Accessing the Auction System for Stage 3. Any bidder that had 
one or more stations with the status ``Frozen--Provisionally Winning'' 
at the end of the previous stage will be able to log in to the Reverse 
Auction Bidding System for Stage 3. Starting at 10:00 a.m. Eastern Time 
(ET) on October 26, 2016, such a bidder can log in 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 3. 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 FCC 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 3 will be the same number used for the previous stage. The 
Auction Bidder Line will be available from 9:00 a.m. to 5:30 p.m. ET 
starting on October 31, 2016.
    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 3 of Auction 1001 will begin on Tuesday, November 
1, 2016, with the following schedule: Bidding Round (10:00 a.m.-2:00 
p.m. ET). From Wednesday, November 2, 2016, through Friday, November 4, 
2016, 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). Starting on Monday, 
November 7, 2016, and continuing until further notice, the schedule 
will be: Bidding Round (10.00 a.m.-11:00 a.m. ET); Bidding Round (1:00 
p.m.-2:00 p.m. ET); and Bidding Round (4:00 p.m.-5:00 p.m. ET). There 
will be no bidding on Friday, November 11, 2016, in observance of the 
Federal holiday. Bidding will resume on Monday, November 14, 2016, 
using the above three-round schedule until further notice. 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 
3. The base clock price has been reset to $900 per unit of volume for 
Stage 3 of the reverse auction. The price decrement for Round 1 of 
Stage 3 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 3. On the next business day after Stage 3 of 
the reverse auction concludes, the Task Force and Bureau will announce 
the initial bidding schedule for Stage 3 of the forward auction in the 
Forward Auction Bidding System and in the Incentive Auction Public 
Reporting System (PRS), including the date and time of the first round 
of bidding. Bidding in Stage 3 of the forward auction will begin no 
later than three business days after this announcement. Each bidder is 
strongly encouraged to regularly monitor the PRS for announcements and 
other important information related to bidding in Stage 3 of the 
forward auction. 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/auctions/1002).
    12. Accessing the Forward Auction Bidding System in Stage 3. Any 
bidder that is eligible to bid in Stage 3 of the forward auction will 
be able to access the Forward Auction Bidding System beginning at 10:00 
a.m. ET on October 31, 2016. An eligible bidder can log in to the 
Forward Auction Bidding System using the same RSA tokens, web address, 
and instructions provided in the bidder registration materials it 
received prior to the start of Stage 1 of the forward auction. Upon 
logging in to this system, a bidder can download detailed impairment 
information for Stage 3 as well as the stage transition files. The 
detailed impairment information and bidder-specific information, 
including stage transition files and bidding information from previous 
stages, are non-public and are provided only to eligible bidders to 
help guide their bidding in Stage 3 of the

[[Page 75057]]

forward auction. This information will not be disclosed publicly until 
after the auction concludes. Any bidder with zero eligibility by the 
end of Stage 2 will not be eligible to bid in Stage 3 of the forward 
auction.
    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 2) will be sent a pre-addressed, 
stamped envelope to return its RSA tokens.
    14. Activity Rule for Round 1 of Stage 3. Starting in the first 
round of Stage 3, 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 3 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 of the Downloads 
screen.
    15. Clock Increment for Round 1 of Stage 3. An increment of five 
percent will be used to set clock prices for products in Round 1 of 
Stage 3 of the forward auction. Prior to the announcement of the 
forward auction bidding schedule for Stage 3, 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 previous stages of the incentive auction, 
publicly available bidding and timing information for Stage 3 of the 
reverse auction and the forward auction will be accessible through the 
PRS. The PRS will display the same types of bidding and other 
information for Stage 3 as was available for previous stages. 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 
maintain and continue to refine as necessary 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.
    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 should 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 plans might also include, 
among other arrangements, using the Auction Bidder Line as an 
alternative method of bidding in the incentive auction.
    18. 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 will be interpreted as a bid to drop out of the 
auction. 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.
    19. The Task Force and Bureau remind each forward auction bidder 
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

    20. 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.
    21. 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.
    22. 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.
    23. 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., Washington, DC 20554. 
Failure to make a timely report under the rule constitutes a continuing 
violation of the rule, with attendant consequences.

[[Page 75058]]

    24. 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.
    25. 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 an 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.
    26. To make changes to its 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. All changes are subject to review by Commission staff.

Federal Communications Commission.
Gary D. Michaels,
Deputy Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. 2016-26196 Filed 10-27-16; 8:45 am]
 BILLING CODE 6712-01-P