[Federal Register Volume 83, Number 81 (Thursday, April 26, 2018)]
[Notices]
[Pages 18288-18300]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-08788]


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FEDERAL COMMUNICATIONS COMMISSION

[AU Docket No. 17-143; DA 18-260]


Auction of Cross-Service FM Translator Construction Permits 
Scheduled for May 15, 2018; Notice and Filing Requirements, Minimum 
Opening Bids, Upfront Payments, and Other Procedures for Auction 99

AGENCY: Federal Communications Commission.

ACTION: Final action; requirements and procedures.

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SUMMARY: This document summarizes the procedures and announces upfront 
payment amounts and minimum opening bids for the auction of cross-
service FM translator construction permits (Auction 99). The Public 
Notice summarized here is intended to familiarize applicants with the 
procedures and other requirements for participation in the auction.

DATES: A sufficient upfront payment and a complete and accurate FCC 
Remittance Advice Form (FCC Form 159) must be submitted before 6:00 
p.m. Eastern Time (ET) on April 19, 2018. Bidding in Auction 99 is 
scheduled to start on May 15, 2018.

FOR FURTHER INFORMATION CONTACT: For auction legal questions, Lynne 
Milne in the Wireless Telecommunications Bureau's Auctions and Spectrum 
Access Division at (202) 418-0660. For auction process and procedures, 
the FCC Auction Hotline at (717) 338-2868. For FM translator service 
questions, James Bradshaw, Lisa Scanlan or Tom Nessinger in the Media 
Bureau's Audio Division at (202) 418-2700. To request materials in 
accessible formats (Braille, large print, electronic files, or audio 
format) for people with disabilities, send an email to [email protected] 
or call the Consumer and Governmental Affairs Bureau at (202) 418-0530 
or (202) 418-0432 (TTY).

SUPPLEMENTARY INFORMATION: This is a summary of Auction of Cross-
Service FM Translator Construction Permits Scheduled for May 15, 2018; 
Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments, 
and Other Procedures for Auction 99, (Auction 99 Procedures Public 
Notice) released on March 23, 2018. The complete text of the Auction 99 
Procedures Public Notice, including attachments and any

[[Page 18289]]

related document, 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 Auction 99 
Procedures Public Notice and related documents also are available on 
the internet at the Commission's website: http://wireless.fcc.gov/auctions/99, or by using the search function for AU Docket No. 17-143 
on the Commission's Electronic Comment Filing System (ECFS) web page at 
http://www.fcc.gov/cgb/ecfs.

I. General Information

A. Background

    1. On June 1, 2017, the Wireless Telecommunications and Media 
Bureaus announced an auction filing window for AM broadcasters seeking 
new cross-service FM translator station construction permits. Each 
applicant listed in Attachment A of the Auction 99 Procedures Public 
Notice previously filed a short-form application (FCC Form 175) during 
the initial filing window announced in the Auction 99 Filing 
Instructions Public Notice, a summary of which was published at 82 FR 
33825 (July 21, 2017). Applicants were previously given the opportunity 
to eliminate their mutual exclusivity with other applicants' 
engineering proposals by settlement or technical modification to their 
proposals.

B. Construction Permits and Entities Eligible to Participate in Auction 
99

    2. Auction 99 will resolve mutually exclusive engineering proposals 
for up to 12 new cross-service FM translator stations. A list of the 
locations and channels of these proposed stations is included as 
Attachment A. Attachment A also sets forth the names of applicants in 
each MX group, along with a minimum opening bid and an upfront payment 
amount for each construction permit in Auction 99.
    3. An applicant listed in Attachment A may become qualified to bid 
only if it meets the additional filing, qualification, payment and 
other applicable rules, policies and procedures as described in the 
Auction 99 Procedures Public Notice. Each applicant may become a 
qualified bidder only for those construction permits specified for that 
applicant in Attachment A. Each of the engineering proposals within 
each MX group are directly mutually exclusive with one another; 
therefore, no more than one construction permit will be awarded for 
each MX group identified in Attachment A. Once mutually exclusive 
applications are accepted and thus mutual exclusivity exists for 
auction purposes, an applicant for a particular construction permit 
cannot obtain it without placing a bid, even if no other applicant for 
that construction permit becomes qualified to bid or in fact places a 
bid.

C. Rules and Disclaimers

1. Relevant Authority
    4. Auction 99 applicants must familiarize themselves thoroughly 
with the Commission's general competitive bidding rules, including 
Commission decisions in proceedings regarding competitive bidding 
procedures (47 CFR part 1, subpart Q), application requirements, and 
obligations of Commission licensees. Broadcasters should also 
familiarize themselves with the Commission's cross-service FM 
translator service and competitive bidding requirements contained in 47 
CFR parts 73 and 74, as well as Commission orders concerning 
competitive bidding for broadcast construction permits. Applicants must 
also be thoroughly familiar with the procedures, terms and conditions 
contained in the Auction 99 Procedures Public Notice and any future 
public notices that may be released in this proceeding.
    5. 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 their public notices at any 
time, and will issue public notices to convey any new or supplemental 
information to applicants. It is the responsibility of each applicant 
to remain current with all Commission rules and with all public notices 
pertaining to Auction 99.
2. Prohibited Communications and Compliance with Antitrust Laws
    6. Starting at the deadline for filing a Form 175 on August 2, 
2017, the rules prohibiting certain communications set forth in 47 CFR 
1.2105(c) and 73.5002(d), (e) apply to each applicant that filed a Form 
175 in Auction 99. Subject to specified exceptions, 47 CFR 1.2105(c)(1) 
provides that all applicants are prohibited from cooperating or 
collaborating with respect to, communicating with or disclosing, to 
each other in any manner the substance of their own, or each other's, 
or any other applicants' bids or bidding strategies (including post-
auction market structure), or discussing or negotiating settlement 
agreements, until after the down payment deadline.
    7. Applicants are hereby placed on notice that public disclosure of 
information relating to bids, bidding strategies, or to post-auction 
market structures may violate 47 CFR 1.2105(c). In accordance with 47 
CFR 73.5002(e), the Bureaus suspended for Auction 99 application of the 
prohibitions of 47 CFR 1.2105(c) and 73.5002(d) during a specified 
period for the limited purpose of allowing settlement discussions. 
Discussion of information covered by these rules outside of the 
settlement period would violate the rules.
a. Entities Subject to Section 1.2105
    8. An applicant for purposes of this rule includes the officers and 
directors of the applicant, all controlling interests in the entity 
submitting the FCC Form 175, as well as all holders of interests 
amounting to 10 percent or more of that entity. A party that submits an 
application becomes an applicant under the rule at the application 
deadline and that status does not change based on subsequent 
developments. Thus, an Auction 99 applicant that does not correct 
deficiencies in its application, fails to submit a timely and 
sufficient upfront payment, or does not otherwise become qualified, 
remains an applicant for purposes of 47 CFR 1.2105(c) and remains 
subject to the prohibition on certain communications until the 
applicable down payment deadline.
b. Scope of Prohibition on Communications; Prohibition on Joint Bidding 
Agreements
    9. The Commission in 2015 amended 47 CFR 1.2105(c) to extend the 
prohibition on communications to cover all applicants for an auction 
regardless of whether the applicants seek permits or licenses in the 
same geographic area or market. Therefore, the Commission now prohibits 
a joint bidding arrangement, including an arrangement relating to the 
permits or licenses being auctioned that address or communicate, 
directly or indirectly, bids, bidding, bidding strategies, including 
any arrangement regarding price or the specific permits or licenses on 
which to bid, and any such arrangement relating to the post-auction 
market structure. The revised rule provides limited exceptions for a 
communication within the scope of any arrangement consistent with the 
exclusions from the Commission's rule prohibiting joint bidding, 
provided such arrangement is disclosed on the applicant's auction 
application. An applicant may continue to communicate pursuant to any 
pre-existing agreement, arrangement, or understanding that is solely 
operational or that provides for a transfer or

[[Page 18290]]

assignment of licenses, provided that such agreement, arrangement or 
understanding do not involve the communication or coordination of bids 
(including amounts), bidding strategies, or the particular licenses on 
which to bid and provided that such agreement, arrangement or 
understanding is disclosed on its application.
    10. The Bureaus sought comment in the Auction 99 Comment Public 
Notice on whether it would be appropriate to waive or modify the 
application of 47 CFR 1.2105 provisions, such as the prohibition 
against certain communications or the prohibition against joint bidding 
arrangements, so that Auction 99 applicants with overlapping 
controlling interests relying on the waiver of 47 CFR 1.2105(a)(3) will 
not thereby violate such other provisions. A summary of this public 
notice was published at 83 FR 6141 (Feb. 13, 2018). The Bureaus 
received no comment on this issue. Accordingly, no commenter has 
suggested that there is a need for a waiver to accommodate any 
commonly-controlled Auction 99 applicants that filed separate Forms 175 
pursuant to the Bureaus' previously-granted waiver of 47 CFR 
1.2105(a)(3). Therefore, for Auction 99 the Bureaus have no basis for 
further waiving or modifying the application of 47 CFR 1.2105 
provisions.
c. Section 1.2105(c) Certification
    11. By electronically submitting its Form 175, each applicant in 
Auction 99 certified its compliance with 47 CFR 1.2105(c) and 
73.5002(d). However, the mere filing of 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 
these communication prohibitions may be subject to sanctions.
d. Reporting Requirements
    12. 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. Each applicant's 
obligation under 47 CFR 1.2105(c)(4) 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.
e. Procedures for Reporting Prohibited Communications
    A party must file only a single report concerning a prohibited 
communication and to file that report with Commission personnel 
expressly charged with administering the Commission's auctions. Any 
report required by 47 CFR 1.2105(c) must be filed consistent with the 
instructions set forth in the Auction 99 Procedures Public Notice. For 
Auction 99, such reports must be filed with the 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 Margaret W. Wiener at the following email 
address: [email protected]. If you choose instead to submit a report in 
hard copy, any 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 6C217, Washington, DC 20554.
    14.
    15. This rule is designed to minimize the risk of inadvertent 
dissemination of information in such reports. A party reporting any 
communication pursuant to 47 CFR 1.65, 1.2105(a)(2), or 1.2105(c)(4) 
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, such as, a 
submission to the Commission's Office of the Secretary or ECFS. 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.
f. Winning Bidders Must Disclose Terms of Agreements
    16. Each applicant that is a winning bidder will be required to 
disclose in its long-form application the specific terms, conditions, 
and parties involved in any agreement it has entered into. This 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.
g. Antitrust Laws
    17. Regardless of compliance with the Commission's rules, 
applicants remain subject to the antitrust laws. Compliance with the 
disclosure requirements of 47 CFR 1.2105(c) will not insulate a party 
from enforcement of the antitrust laws. For instance, a violation of 
the antitrust laws could arise out of actions taking place well before 
any party submitted a Form 175.
    18. 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 
U.S. 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.
3. Due Diligence
    19. The Bureaus remind each potential bidder that it 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 cross-service FM translators that it is 
seeking in Auction 99. The FCC makes no representations or warranties 
about the use of this spectrum or these construction permits 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.
    20. An applicant should perform its due diligence research and 
analysis before proceeding, as it would with any new business venture. 
In particular, the Bureaus strongly encourage each potential bidder to 
perform technical analyses and/or refresh its previous analyses to 
assure itself that, should it become a winning bidder for any Auction 
99 construction permit, it will be able to build and operate facilities

[[Page 18291]]

that will fully comply with all applicable technical and legal 
requirements. The Bureaus strongly encourage each applicant to 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 
to familiarize itself with the Commission's rules regarding the 
National Environmental Policy Act, 47 CFR part 1, subpart I.
    21. The Bureaus strongly encourage each applicant to continue to 
conduct its own research throughout Auction 99 in order to determine 
the existence of pending or future administrative or judicial 
proceedings that might affect its decision on continued participation 
in Auction 99. Each Auction 99 applicant is responsible for assessing 
the likelihood of the various possible outcomes and for considering the 
potential impact on construction permits available in Auction 99. These 
due diligence considerations do not comprise an exhaustive list of 
steps that should be undertaken prior to participating in Auction 99. 
As always, the burden is on the potential bidder to determine how much 
research to undertake, depending upon specific facts and circumstances 
related to its interests.
    22. 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 99. Each potential 
bidder is responsible for undertaking research to ensure that any 
permits won in Auction 99 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.
    23. The Commission makes no representations or guarantees regarding 
the accuracy or completeness of information in its databases or any 
third party databases, including, for example, court docketing systems. 
To the extent the Commission's databases may not include all 
information deemed necessary or desirable by an applicant, it must 
obtain or verify such information from independent sources or assume 
the risk of any incompleteness or inaccuracy in said databases. 
Furthermore, the Commission makes no representations or guarantees 
regarding the accuracy or completeness of information that has been 
provided by incumbent licensees and incorporated into its databases.
4. Use of Auction Systems
    24. The Commission makes no warranty whatsoever with respect to the 
FCC auction systems. 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 systems that are accessible to qualified bidders in 
connection with Auction 99. 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 systems.

D. Auction Specifics

1. Bidding Methodology and Options
    25. The Commission will conduct Auction 99 over the internet using 
the FCC auction bidding system. Qualified bidders are permitted to bid 
electronically via the internet or by telephone using the telephonic 
bidding option. All telephone calls are recorded.
    26. The initial schedule for bidding rounds will be announced by 
public notice at least one week before bidding in the auction starts. 
Moreover, unless otherwise announced, bidding on all construction 
permits will be conducted on each business day until bidding has 
stopped on all construction permits.
2. Pre-Auction Dates and Deadlines
    27. The following dates and deadlines apply:

Upfront Payments (via wire transfer) April 19, 2018; 6:00 p.m. ET
Auction Tutorial Available (via internet) May 4, 2018
Mock Auction May 11, 2018
Auction Begins May 15, 2018

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

A. Maintaining Current Information in Forms 175

    28. The Bureaus remind each Auction 99 applicant of its duty 
pursuant to 47 CFR 1.65 and 1.2105(b) to maintain the accuracy and 
completeness of all 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 Form 175 no more than five days 
after the applicant becomes aware of the need for the amendment. For 
example, if ownership changes result in the attribution of new interest 
holders that affect the applicant's qualifications for a new entrant 
bidding credit, such information must be clearly stated in the 
application amendment. Events occurring after the initial application 
filing deadline, such as the acquisition of attributable interests in 
media of mass communications, may cause a loss of or reduction in the 
percentage of bidding credit specified in the application and must be 
reported immediately, and no later than five business days after the 
change occurs.

B. Submission of Updates to Forms 175

    29. Updates to Forms 175 should be made electronically using the 
FCC auction application system whenever possible. For the change to be 
submitted and considered by the Commission, be sure to click on the 
SUBMIT button.
    30. An applicant should not use the auction application system 
outside of the initial and resubmission filing windows to make changes 
to its Form 175 for other than administrative changes (e.g., changing 
contact information or the name of an authorized bidder). After the 
filing window has closed, the system will not permit applicants to 
modify information in most of the application's data fields.
    31. If changes need to be made outside of the initial and 
resubmission filing windows, for other than the minor administrative 
changes as described, the applicant must submit a letter briefly 
summarizing the changes and subsequently update its Form 175 in the 
auction application system once it is available. Any letter describing 
changes to an applicant's Form 175 must be addressed to Margaret W. 
Wiener, Chief, Auctions and Spectrum Access Division, Wireless 
Telecommunications Bureau, and submitted by email to [email protected]. 
The email summarizing the changes must include a subject or caption 
referring to Auction 99 and the name of the applicant, for example, 
``Re: Changes to Auction 99 Short-Form Application of ABC Corp.'' The 
Bureaus request that parties format any attachments to email as 
Adobe[supreg] Acrobat[supreg] (pdf) or Microsoft[supreg] Word 
documents. Questions about Form 175 amendments should be directed to 
the Auctions and Spectrum Access Division at (202) 418-0660.
    32. Applicants must not submit application-specific material 
through the Commission's Electronic Comment Filing System, which was 
used for submitting comments regarding procedures for conducting 
Auction 99.
    33. Applicants should note that submission of a Form 175 (and any 
amendments thereto) constitutes a

[[Page 18292]]

representation by the person certifying the application that he or she 
is an authorized representative of the applicant with authority to bind 
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 reminded that submission of a false certification to the Commission 
is a serious matter that may result in severe penalties, including 
monetary forfeitures, license revocations, exclusion from participation 
in future auctions, and/or criminal prosecution.

C. Provisions Regarding Former and Current Defaulters

    34. Current defaulters or delinquents are not eligible to 
participate in Auction 99, but former defaulter or delinquents can 
participate so long as they are otherwise qualified and make upfront 
payments that are 50 percent more than would otherwise be necessary. An 
applicant is considered a current defaulter or a current delinquent 
when it, any of its affiliates (as defined in 47 CFR 1.2110), any of 
its controlling interests (as defined in 47 CFR 1.2105(a)(4)(i), 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 FCC Forms 175 in that auction.
    35. Thus, an Auction 99 applicant was required to certify under 
penalty of perjury that, as of the initial application filing deadline 
on August 2, 2017, it, its affiliates, any of its controlling 
interests, and any of the affiliates of its controlling interests, as 
defined by 47 CFR 1.2110, were not in default on any payment for a 
Commission construction permit or license (including a down payment) 
and not delinquent on any non-tax debt owed to any Federal agency. 
Accordingly, if an applicant has an outstanding non-tax debt to the 
Commission or any other Federal agency, including any debt that results 
in a listing of the applicant on the Commission's Red Light Display 
System, the applicant will be unable to make the required certification 
that it is not currently in default; if so, such applicant will not be 
eligible to participate in the bidding for Auction 99.
    36. An applicant is considered a former defaulter or a former 
delinquent when the applicant or any of its controlling interests has 
defaulted on any Commission construction permit or license or has been 
delinquent on any non-tax debt owed to any Federal agency, but has 
since remedied all such defaults and cured all of the outstanding non-
tax delinquencies prior to the Form 175 filing deadline in Auction 99. 
Each applicant was required to certify under penalty of perjury whether 
it, along with any of its controlling interests (as defined in 47 CFR 
1.2105(a)(4)(i)), has ever been in default on any payment for a 
Commission construction permit or license (including a down payment) or 
has ever been delinquent on any non-tax debt owed to any Federal 
agency. If an applicant or any controlling interest is a former 
defaulter or former delinquent the applicant may participate further in 
Auction 99 so long as it is otherwise qualified, and that applicant 
makes an upfront payment that is 50 percent more than would otherwise 
be required.
    37. In 2015, the Commission narrowed the scope of the individuals 
and entities to be considered a former defaulter or a former 
delinquent. For purposes of the certification under 47 CFR 
1.2105(a)(2)(xii), the applicant may exclude from consideration any 
cured default on a Commission construction permit or license or cured 
delinquency on a non-tax debt owed to a Federal agency for which any of 
the following criteria are met: (1) the notice of the final payment 
deadline or delinquency was received more than seven years before the 
Form 175 filing deadline; (2) the default or delinquency amounted to 
less than $100,000; (3) the default or delinquency was paid within six 
months after receiving the notice of the final payment deadline or 
delinquency; or (4) the default or delinquency was the subject of a 
legal or arbitration proceeding and was cured upon resolution of the 
proceeding.
    38. Applicants are encouraged to review previous guidance provided 
by the Wireless Telecommunications Bureau on default and delinquency 
disclosure requirements in the context of the auction Form 175 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 
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.
    39. The Commission considers outstanding debts owed to the U.S. 
Government, in any amount, to be a serious matter. The Commission 
adopted rules that implement its obligations under the Debt Collection 
Improvement Act of 1996, including a provision referred to as the red 
light rule. The Commission's adoption of the red light rule, however, 
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.
    40. The Bureaus remind each applicant, however, that the 
Commission's Red Light Display System, which provides information 
regarding debts currently owed to the Commission, may not be 
determinative of an auction applicant's ability to comply with the 
default and delinquency disclosure requirements of 47 CFR 1.2105. Thus, 
while the red light rule ultimately may prevent the processing of long-
form applications by auction winners, an auction applicant's lack of 
current red light status is not necessarily determinative of its 
eligibility to participate in an auction (or of its upfront payment 
obligation).
    41. Moreover, applicants in Auction 99 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. 
The Bureaus strongly encourage each applicant to carefully review all 
records and other available federal agency databases and information 
sources to determine whether the applicant, or any of its affiliates, 
or any of its controlling interests, or any of the affiliates of its 
controlling interests, owes or was ever delinquent in the payment of 
non-tax debt owed to any federal agency.

III. Pre-Auction Procedures

A. Online Tutorial on Bidding Process--Available May 4, 2018

    42. An educational auction tutorial will be available on the 
Auction 99 web page by May 4, 2018. Once posted, this tutorial will 
remain available and accessible anytime for reference in connection 
with this auction.

[[Page 18293]]

B. Application Processing and Corrections of Deficiencies

    43. An applicant whose application contains deficiencies and is 
designated as incomplete will have a limited opportunity to bring its 
application into compliance with the Commission's competitive rules 
during a resubmission window, the dates for which will be announced in 
a future public notice.
    44. Commission staff will communicate only with an applicant's 
contact person or certifying official, as designated on the Form 175, 
unless the applicant's certifying official or contact person notifies 
the Commission in writing that applicant's counsel or other 
representative is authorized to speak on its behalf. Authorizations may 
be sent by email to [email protected].

C. Upfront Payments--Due April 19, 2018

    45. In order to become eligible to bid in Auction 99, a sufficient 
upfront payment and a complete and accurate FCC Remittance Advice Form 
(FCC Form 159) must be submitted before 6:00 p.m. ET on April 19, 2018, 
following the procedures outlined below and the instructions in 
Attachment B to the Auction 99 Procedures Public Notice. After 
completing its Form 175, an applicant will have access to an electronic 
version of the FCC Form 159. This Form 159 can be printed and the 
completed form must be sent by fax to FCC at (202) 418-2843.
1. Making Upfront Payments by Wire Transfer
    46. Wire transfer payments must be received before 6:00 p.m. ET on 
April 19, 2018. No other payment method is acceptable. Specifically, 
the Commission will not accept checks, credit cards, or automated 
clearing house (ACH) payments. 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. The BNF Account Number is specific to 
the upfront payments for Auction 99. Do not use a BNF Account Number 
from a previous auction.
    The following information will be needed:

ABA Routing Number: 081000210
Receiving Bank: U.S. Bank, 1005 Convention Plaza, St. Louis, MO 63101
Beneficiary: FCC/Account # 152321044637
Originating Bank Information (OBI Field): (Skip one space between each 
information item) ``AUCTIONPAY''
Applicant FCC Registration Number (FRN): (same as FCC Form 159, block 
21)
Payment Type Code: (same as FCC Form 159, block 24A: ``U099'')
FCC Code 1: (same as FCC Form 159, block 28A: ``99'')
Payer Name: (same as FCC Form 159, block 2)
Payer FCC Registration Number (FRN): (If different from applicant FRN)

    47. At least one hour before placing the order for the wire 
transfer (but on the same business day), applicants must fax a 
completed FCC Remittance Advice Form, FCC Form 159 (Revised 2/03) to 
the FCC at (202) 418-2843. On the fax cover sheet, write ``Wire 
Transfer--Auction Payment for Auction 99.'' In order to meet the 
upfront payment deadline, an applicant's payment must be credited to 
the Commission's account for Auction 99 before the deadline.
    48. Each applicant is responsible for ensuring timely submission of 
its upfront payment and for timely filing of an accurate and complete 
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. It is important that auction participants plan 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. To receive confirmation from Commission staff, contact Gail 
Glasser of the Office of Managing Director's Revenue & Receivables 
Operations Group/Auctions at (202) 418-0578, or alternatively, Theresa 
Meeks at (202) 418-2945.
    49. All upfront payments must be made in U.S. dollars. All upfront 
payments must be made by wire transfer. Upfront payments for Auction 99 
go to an account number different from the accounts used in previous 
auctions. Failure to deliver a sufficient upfront payment as instructed 
in the Auction 99 Procedures Public Notice by the deadline on April 19, 
2018 will result in dismissal of the Form 175 and disqualification from 
participation in Auction 99.
2. FCC Form 159
    50. An accurate and complete Form 159 must be faxed to the FCC at 
(202) 418-2843 to accompany each upfront payment. Proper completion of 
this form is critical to ensuring correct crediting of upfront 
payments. Detailed instructions for completion of Form 159 are included 
in Attachment B of the Auction 99 Procedures Public Notice. An 
electronic pre-filled version of the Form 159 is available after 
submitting the Form 175. Payers using the pre-filled Form 159 are 
responsible for ensuring that all of the information on the form, 
including payment amounts, is accurate.
3. Upfront Payments and Bidding Eligibility
    51. 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 any single round. In order to bid on a particular 
construction permit, otherwise qualified bidders that are designated in 
Attachment A of the Auction 99 Procedures Public Notice for that 
construction permit 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 designated for that applicant in Attachment A of 
the Auction 99 Procedures Public Notice, 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 designated 
for that applicant in Attachment A, 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. (A provisionally winning bid is a bid that 
would become a final winning bid 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. The 
specific upfront payment amount and bidding units for each construction 
permit are set forth in Attachment A.
    52. In calculating its upfront payment amount, an applicant should 
determine the maximum number of bidding units

[[Page 18294]]

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. A qualified bidder's maximum eligibility will not 
exceed the sum of the bidding units associated with the total number of 
construction permits identified for that applicant in Attachment A.
    53. Applicants that are former defaulters must pay upfront payments 
50 percent greater than non-former defaulters. For this classification 
as a former defaulter or a former delinquent, defaults and 
delinquencies of the applicant itself and its controlling interests are 
included. For this purpose, the term controlling interest is defined in 
47 CFR 1.2105(a)(4)(i).
    54. If an applicant is a former defaulter, 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. In order to calculate the number of bidding units to assign to 
former defaulters, the Commission will divide the upfront payment 
received by 1.5 and round the result up to the nearest bidding unit. If 
a former defaulter fails to submit a sufficient upfront payment to 
establish eligibility to bid on at least one of the construction 
permits designated for that applicant in Attachment A, the applicant 
will not be eligible to participate further in the auction. This 
applicant will retain its status as an applicant in Auction 99 and will 
remain subject to 47 CFR 1.2105(c) and 73.5002(d).
D. Auction Registration
    55. At least one week before the beginning of bidding in the 
auction, the Bureaus will issue a public notice announcing all 
qualified bidders for Auction 99. A qualified bidder is an applicant 
listed in Attachment A with a submitted Form 175 that is found to be 
timely filed, accurate, and substantially complies with the 
Commission's applicable rules and all provisions, including procedures 
and deadlines, set forth in the Auction 99 Procedures Public Notice, 
provided that such applicant has timely submitted an upfront payment 
that is sufficient to qualify that applicant to bid.
    56. 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 web address and instructions for accessing and logging in to the 
auction bidding system, an FCC assigned username (User ID) for each 
authorized bidder, and the Auction Bidder Line phone number.
    57. 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 Wednesday, May 9, 2018, the contact, certifier or 
authorized bidder listed on that applicant's Form 175 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.
    58. In the event that SecurID[supreg] tokens are lost or damaged, 
only a person who has been designated as an authorized bidder, contact, 
or certifying official on the applicant's Form 175 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).

E. Remote Electronic Bidding

    59. The Commission will conduct Auction 99 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, bidding 
system web address, FCC assigned username, and the telephonic bidding 
telephone number 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 99.

F. Mock Auction--May 11, 2018

    60. All qualified bidders will be eligible to participate in a mock 
auction on May 11, 2018. The mock auction will enable bidders to become 
familiar with the FCC auction bidding system prior to the auction. The 
Bureaus strongly recommend that all bidders participate in the mock 
auction. Details will be announced by public notice.

IV. Auction

    61. The first round of bidding for Auction 99 will begin on May 15, 
2018. The al bidding schedule will be announced in a public notice 
listing the qualified bidders, which is released at least one week 
before the start of bidding in Auction 99.

A. Auction Structure

1. Simultaneous Multiple Round Auction
    62. The Commission's standard simultaneous multiple-round auction 
format will be used for Auction 99. This type of auction offers every 
construction permit for bid at the same time and consists of successive 
bidding rounds in which qualified bidders may place bids on individual 
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.
2. Eligibility and Activity Rules
    63. The Bureaus will use upfront payments to determine initial 
(maximum) bidding eligibility (as measured in bidding units) for 
Auction 99. The amount of the upfront payment submitted by a bidder 
determines initial bidding eligibility, the maximum number of bidding 
units on which a bidder may be active. Each construction permit is 
assigned a specific number of bidding units as listed in Attachment A 
of the Auction 99 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 for which it is designated an applicant in Attachment A as long 
as the total number of bidding units associated with those construction 
permits does not exceed its current eligibility. Eligibility cannot be 
increased during the auction; it can only remain the same or decrease. 
Thus, in calculating its upfront payment amount and therefore its 
initial bidding eligibility, an applicant must determine the maximum 
number of bidding units

[[Page 18295]]

on which it may wish to bid or hold provisionally winning bids in any 
single round, and submit an upfront payment amount covering that total 
number of bidding units. At a minimum, an applicant's upfront payment 
must cover the bidding units for at least one of the construction 
permits for which it is designated an applicant in Attachment A. The 
total upfront payment does not affect the total dollar amount a bidder 
may bid on any given construction permit.
    64. 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.
    65. A bidder's activity level in a round is the sum of the bidding 
units associated with construction permits covered by the bidder's new 
bids in the current round and provisionally winning bids from the 
previous round. A provisionally winning bid is a bid that would become 
a final winning bid if the auction were to close after the given round.
    66. In order to ensure that Auction 99 closes within a reasonable 
period of time, a bidder is required to be active on 100 percent of its 
current eligibility during each round of the auction. That is, a bidder 
must either place a bid or be a provisionally winning bidder during 
each round of the auction. 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.
3. Activity Rule Waivers
    67. In Auction 99, each bidder is provided 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, not to a particular construction 
permit. Activity rule waivers can be either proactive or automatic. 
Activity rule waivers are principally a mechanism for a bidder to avoid 
the loss of bidding eligibility in the event that exigent circumstances 
prevent it from bidding in a particular round.
    68. The FCC auction bidding system will assume that a bidder that 
does not meet the activity requirement would prefer to use 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, thereby meeting the activity 
requirement. If a bidder has no waivers remaining and does not satisfy 
the required activity level, the bidder's current eligibility will be 
permanently reduced, possibly curtailing or eliminating the ability to 
place additional bids in the auction.
    69. 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 bidding system. In this case, the bidder's eligibility 
would be permanently reduced to bring it into compliance with the 
Auction 99 activity rule. Reducing eligibility is an irreversible 
action; once eligibility has been reduced, a bidder cannot regain its 
lost bidding eligibility.
    70. Also, a bidder may apply an activity rule waiver proactively as 
a means to keep the auction open without placing a bid. If a bidder 
proactively were to apply an activity rule waiver (using the PROACTIVE 
WAIVER function in the FCC auction bidding system) during a bidding 
round in which no bid is placed, the auction will remain open and the 
bidder's eligibility will be preserved. An automatic waiver applied by 
the FCC auction bidding system in a round in which there is no new bid 
or a proactive waiver will not keep the auction open.
4. Auction Stopping Rule
    71. For Auction 99, the Bureaus will employ a simultaneous stopping 
rule approach, which means all construction permits remain available 
for bidding until bidding stops on every construction permit. 
Specifically, bidding will close on all construction permits after the 
first round in which no bidder submits any new bid or applies a 
proactive waiver.
    72. The Bureaus also sought comment on alternative versions of the 
simultaneous stopping procedure for Auction 99. (1) The auction would 
close for all construction permits after the first round in which no 
bidder applies a waiver or places any new bid on a construction permit 
for 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. (2) The auction 
would close for all construction permits after the first round in which 
no bidder applies a proactive waiver or places any new bid on a 
construction permit that already has a provisionally winning bid. Thus, 
absent any other bidding activity, a bidder placing a new bid on an 
FCC-held construction permit (a construction permit that does not have 
a provisionally winning bid) would not keep the auction open under this 
modified stopping rule. (3) The auction would close using a modified 
version of the simultaneous stopping rule that combines options (1) and 
(2). (4) The auction would close after a specified number of additional 
rounds (special stopping rule) to be announced by the Bureaus. If the 
Bureaus invoke this special stopping rule, they will accept bids in the 
specified final round(s), after which the auction will close. (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. The activity rule will apply as usual, and 
a bidder with insufficient activity will either lose bidding 
eligibility or use a waiver.
    73. The Bureaus propose 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.
5. Auction Delay, Suspension, or Cancellation
    74. By public notice and/or by announcement through the FCC auction 
bidding system, the Bureaus may delay, suspend, or cancel bidding in 
the auction in the event of natural disaster, technical obstacle, 
administrative or weather necessity, evidence of an

[[Page 18296]]

auction security breach or unlawful bidding activity, or for any other 
reason that affects the fair and efficient conduct of competitive 
bidding. In such cases, the 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. Network interruption may cause the Bureaus to delay or 
suspend the auction. The Bureaus emphasize that they will exercise this 
authority solely at their discretion, and not as a substitute for 
situations in which bidders may wish to apply their activity rule 
waivers.

B. Bidding Procedures

1. Round Structure
    75. The initial schedule of bidding rounds will be announced in the 
public notice listing the qualified bidders, which is released at least 
one week before the start of bidding in the auction. Each bidding round 
is followed by the release of round results. Multiple bidding rounds 
may be conducted each day.
    76. The Bureaus retain 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.
2. Reserve Price and Minimum Opening Bids
    77. Normally, a reserve price is an absolute minimum price below 
which a construction permit or license will not be sold in a specific 
auction. There are no reserve prices for construction permits in 
Auction 99.
    78. A minimum opening bid is the minimum bid price set at the 
beginning of the auction below which no bids are accepted. The Bureaus 
adopt the specific minimum opening amount for each construction permit 
as listed in Attachment A to the Auction 99 Procedures Public Notice.
3. Bid Amounts
    79. If the bidder has sufficient eligibility to place a bid on a 
particular construction permit, an eligible bidder will be able to 
place a bid on a given construction permit in any of up to nine 
different amounts in each round. The FCC auction bidding system 
interface will list the nine acceptable bid amounts for each 
construction permit.
    80. For calculation of the nine acceptable bid amounts for each 
construction permit, the Bureaus will begin the auction with a minimum 
acceptable bid percentage of 10 percent and an additional bid increment 
percentage of 5 percent.
    81. In Auction 99, 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 construction permit, 
the minimum acceptable bid amount will be calculated by multiplying the 
provisionally winning bid amount by one plus the minimum acceptable bid 
percentage--i.e., provisionally winning bid amount * 1.10, rounded 
using the Commission's standard rounding procedures for auctions as 
described in the Auction 99 Procedures Public Notice.
    82. In Auction 99, the FCC auction bidding system will calculate 
the eight additional bid amounts by multiplying the minimum acceptable 
bid amount by the additional bid increment percentage of 5 percent, and 
that result (rounded) is the additional increment amount. The first 
additional acceptable bid amount equals the minimum acceptable bid 
amount plus the additional increment amount. The second additional 
acceptable bid amount equals the minimum acceptable bid amount plus two 
times the additional increment amount; the third additional acceptable 
bid amount is the minimum acceptable bid amount plus three times the 
additional increment amount; etc. Because the additional bid increment 
percentage is 5 percent, the calculation of the additional increment 
amount is (minimum acceptable bid amount) * (0.05), rounded. The first 
additional acceptable bid amount equals (minimum acceptable bid amount) 
+ (additional increment amount); the second additional acceptable bid 
amount equals (minimum acceptable bid amount) + (2*(additional 
increment amount)); the third additional acceptable bid amount equals 
(minimum acceptable bid amount) + (3*(additional increment amount)); 
etc.
    83. The Bureaus retain the discretion to change the minimum 
acceptable bid amounts, the minimum acceptable bid percentage, the 
additional bid increment percentage, and the number of acceptable bid 
amounts if the Bureaus determine that circumstances so dictate. 
Further, the Bureaus retain the discretion to do so on a construction 
permit-by-construction permit basis. The Bureaus also 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 $1,000 
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 $1,200 higher than the provisionally winning bid on a 
construction permit, the minimum acceptable bid amount would instead be 
capped at $1,000 above the provisionally winning bid. If the Bureaus 
exercise this discretion to change bid amounts, they will alert bidders 
by announcement in the FCC auction bidding system during the auction.
4. Provisionally Winning Bids
    84. The FCC auction bidding system at the end of each bidding round 
will determine a provisionally winning bid for each construction permit 
based on the highest bid amount received for that 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.
    85. The FCC auction bidding system using a pseudo-random number 
generator will assign a pseudo-random number to each bid upon 
submission. In the event of identical high bid amounts being submitted 
on a construction permit in a given round (i.e., tied bids), the tied 
bid with the highest random number wins the tiebreaker, and becomes the 
provisionally winning bid. The remaining bidders, as well as the 
provisionally winning bidder, can submit higher bids in subsequent 
rounds. However, if the auction were to close with no other bids being 
placed, the winning bidder would be the one that placed the 
provisionally winning bid. If the construction permit receives any bids 
in a subsequent round, the provisionally winning bid again will be 
determined by the highest bid amount received for the construction 
permit.
    86. A provisionally winning bid will be retained until there is a 
higher bid on the construction permit at the close of a subsequent 
round. As a reminder, provisionally winning bids count toward activity 
for purposes of the activity rule.

[[Page 18297]]

5. Bidding
    87. All bidding will take place remotely either through the FCC 
auction bidding system or by telephonic bidding. There will be no on-
site bidding during Auction 99. Telephonic bid assistants are required 
to use a script when entering bids placed by telephone. Telephonic 
bidders are therefore reminded to allow sufficient time to bid by 
placing their calls well in advance of the close of a round. The length 
of a call to place a telephonic bid may vary; please allow a minimum of 
ten minutes.
    88. An Auction 99 bidder's ability to bid on specific construction 
permits is determined by two factors: (1) The construction permits 
designated for that applicant in Attachment A of the Auction 99 
Procedures Public Notice and (2) the bidder's eligibility in that a 
bidder must have sufficient eligibility to place a bid on a particular 
construction permit. The bid submission screens will allow bidders to 
submit bids on only those construction permits designated for that 
applicant in Attachment A.
    89. In order to access the bidding function of the FCC auction 
bidding system, bidders must be logged in during the bidding round 
using the passcode generated by the SecurID[supreg] token and a 
personal identification number (PIN) created by the bidder. Bidders are 
strongly encouraged to print a round summary for each round after they 
have completed all of their activity for that round.
    90. In each round, eligible bidders will be able to place bids on a 
given construction permit in any of up to nine pre-defined bid amounts. 
For each construction permit, the FCC auction bidding 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 bidding system also includes an upload function that allows 
text files containing bid information to be uploaded.
    91. 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 as described 
in the Auction 99 Procedures Public Notice.
    92. 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.
6. Bid Removal and Bid Withdrawal
    93. In the FCC auction bidding system, each qualified bidder has 
the option of removing any bids placed in a round provided that such 
bids are removed before the close of that bidding round. By removing a 
bid within a round, a bidder effectively unsubmits the bid. 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 because a 
removed bid no longer counts toward bidding activity for the round. 
Once a round closes, a bidder may no longer remove a bid.
    94. The Bureaus received no comment on the issue of prohibiting 
Auction 99 bidders from withdrawing any bid after close of the round in 
which that bid was placed. Accordingly, the Bureaus will prohibit bid 
withdrawals in Auction 99. Bidders are cautioned to select bid amounts 
carefully because no bid withdrawals will be allowed, even if a bid was 
mistakenly or erroneously made.
7. Round Results
    95. Reports reflecting bidders' identities for Auction 99 will be 
available before and during the auction. Thus, bidders will know in 
advance of Auction 99 the identities of the bidders against which they 
are bidding.
    96. 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.
8. Auction Announcements
    97. 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 
bidding system.

V. Post-Auction Procedures

    98. 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 349).

A. Down Payments

    99. 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 99 to twenty percent of the net 
amount of its winning bids (gross bids less any applicable new entrant 
bidding credits).

B. Final Payments

    100. Each winning bidder will be required to submit the balance of 
the net amount for each of its winning bids within ten business days 
after the applicable deadline for submitting down payments.

C. Long-Form Applications (FCC Form 349)

    101. 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 349, Application for Authority to Construct or 
Make Changes in an FM Translator or FM Booster Station) and required 
exhibits for each construction permit won through Auction 99. Winning 
bidders claiming new entrant status must include an exhibit 
demonstrating their eligibility for the bidding credit. As required by 
47 CFR 1.1104, a winning bidder in a commercial broadcast spectrum 
auction must submit an application filing fee with its post-auction 
long-form application. Further instructions on these and other filing 
requirements will be provided to winning bidders in the auction closing 
public notice. An Auction 99 applicant that has its long-form 
application dismissed will be deemed to have defaulted and will be 
subject to default payments under 47 CFR 1.2104(g) and 1.2109(c).

D. Default and Disqualification

    102. Any winning bidder that defaults or is disqualified after the 
close of the auction (i.e., fails to remit the required down payment by 
the specified deadline, fails to submit a timely long-form application, 
fails to make a full and timely final payment, or is otherwise 
disqualified) is liable for default payments as described in 47 CFR 
1.2104(g)(2). This payment consists

[[Page 18298]]

of a deficiency payment, equal to the difference between the amount of 
the Auction 99 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 a default in Auction 99 is 20 percent of the applicable 
bid.
    103. In the event of a default, the Commission has the discretion 
to re-auction the construction permit or offer it to the next highest 
bidder (in descending order) at its final bid amount. In addition, if a 
default or disqualification involves gross misconduct, 
misrepresentation, or bad faith by an applicant, the Commission may 
declare the applicant and its principals ineligible to bid in future 
auctions, and may take any other action that it deems necessary, 
including institution of proceedings to revoke any existing 
authorizations held by the applicant.

E. Refund of Remaining Upfront Payment Balance

    104. All refunds of upfront payment balances will be returned to 
the payer of record as identified on the Form 159 unless the payer 
submits written authorization instructing otherwise. To access the 
refund form, bidders are encouraged to use the Refund Information icon 
found on the Auction Application Manager page or through the Refund 
Form link available on the Auction Application Submit Confirmation page 
in the FCC auction application system. After the required information 
is completed on the blank form, the form should be printed, signed, and 
submitted to the Commission by mail or fax as instructed below.
    105. If an applicant has elected not to complete the refund form 
through the Auction Application Manager page, the Commission is 
requesting that all information listed below be supplied in writing.

Name, address, contact and phone number of Bank
ABA Number
Account Number to Credit
Name of Account Holder
FCC Registration Number (FRN)

    The refund request must be submitted by fax to the Revenue & 
Receivables Operations Group/Auctions at (202) 418-2843 or by mail to: 
Federal Communications Commission, Financial Operations, Revenue & 
Receivables Operations Group/Auctions, Gail Glasser, 445 12th Street 
SW, Room 1-C864, Washington, DC 20554.
    Refund processing generally takes up to two weeks to complete. 
Bidders with questions about refunds should contact Gail Glasser at 
(202) 418-0578 or Theresa Meeks at (202) 418-2945.

VI. Supplemental Final Regulatory Flexibility Analysis

    106. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), 47 U.S.C. 601-612, the Commission prepared Initial 
Regulatory Flexibility Analyses (IRFAs) in connection with 
Implementation of Section 309(j) of the Communications Act--Competitive 
Bidding for Commercial Broadcast and Instructional Television Fixed 
Service Licenses, Notice of Proposed Rulemaking, and other Commission 
orders (collectively, Broadcast Competitive Bidding NPRMs) pursuant to 
which Auction 99 will be conducted. Final Regulatory Flexibility 
Analyses (FRFAs) were likewise prepared in the Broadcast First Report 
and Order and other Commission orders (collectively, Broadcast 
Competitive Bidding Orders) pursuant to which Auction 99 will be 
conducted. In this proceeding, a Supplemental Initial Regulatory 
Flexibility Analysis (Supplemental IRFA) was incorporated in the 
Auction 99 Comment Public Notice. The Commission sought written public 
comment on the proposals in the Auction 99 Comment Public Notice, 
including comments on the Supplemental IRFA. This Supplemental Final 
Regulatory Flexibility Analysis (Supplemental FRFA) supplements the 
FRFAs in the Broadcast Competitive Bidding Orders to reflect the 
actions taken in the Auction 99 Procedures Public Notice and conforms 
to the RFA.
    107. Need for, and Objectives of, the Public Notice. The Auction 99 
Procedures Public Notice implements competitive bidding rules adopted 
by the Commission in multiple notice-and-comment rulemaking 
proceedings, as well as establishes additional procedures to be used by 
the Bureaus, on delegated authority, for competitive bidding in AM 
Revitalization--FM Translator Auction 99 for up to 12 specified cross-
service FM translator construction permits. More specifically, the 
Auction 99 Procedures Public Notice provides an overview of the 
procedures, terms and conditions governing Auction 99 and the post-
auction application and payment processes, as well as setting the 
minimum opening bid amount for each of the Auction 99 construction 
permits.
    108. To promote the efficient and fair administration of the 
competitive bidding process for all Auction 99 participants, the 
Bureaus in the Auction 99 Procedures Public Notice announced the 
following policies: (1) Application of the current rules prohibiting 
certain communications between auction applicants and the related 
prohibition on joint bidding arrangements to implement the Bureaus' 
prior decision to allow eligible AM licensees having any of the same 
controlling interests in common to file separate Forms 175, rather than 
restricting those licensees to a single Form 175; (2) Use of a 
simultaneous multiple-round auction format, consisting of sequential 
bidding rounds with a simultaneous stopping procedure (with discretion 
by the Bureaus to exercise alternative stopping rules under certain 
circumstances); (3) A specific minimum opening bid amount for each 
construction permit available in Auction 99; (4) A specific upfront 
payment amount for each construction permit; (5) Use of a bidder's 
initial bidding eligibility in bidding units based on that bidder's 
upfront payment through assignment of a specific number of bidding 
units for each construction permit; (6) Use of an activity requirement 
so that bidders must bid actively during the auction rather than 
waiting until late in the auction before participating; (7) A single 
stage auction in which a bidder is required to be active on 100 percent 
of its bidding eligibility in each round of the auction; (8) Provision 
of three activity waivers for each qualified bidder to allow it to 
preserve bidding eligibility during the course of the auction; (9) Use 
of minimum acceptable bid amounts and additional acceptable increments, 
along with a proposed methodology for calculating such amounts, with 
the Bureaus retaining discretion to change their methodology if 
circumstances dictate; (10) A procedure for breaking ties if identical 
high bid amounts are submitted on one permit in a given round; (11) Bid 
removal procedures; (12) A prohibition on bid withdrawals in Auction 
99; and (13) Establishment of an additional default payment of 20 
percent under 47 CFR 1.2104(g)(2) in the event that a winning bidder 
defaults or is disqualified after the auction.
    109. Summary of Significant Issues Raised by Public Comments in 
Response to the IRFA. There were no comments filed that addressed the 
procedures and policies proposed in the Supplemental IFRA.

[[Page 18299]]

    110. Response to Comments by the Chief Counsel for Advocacy of the 
Small Business Administration. Pursuant to the Small Business Jobs Act 
of 2010, which amended the RFA, the Commission is required to respond 
to any comment filed by the Chief Counsel for Advocacy of the Small 
Business Administration (SBA), and to provide a detailed statement of 
any change made to the proposed procedures as a result of those 
comments, 5 U.S.C. 604(a)(3). The Chief Counsel did not file any 
comments in response to the proposed procedures in the Auction 99 
Comment Public Notice.
    111. Description and Estimate of the Number of Small Entities to 
Which the Proposed Procedures Will Apply. The RFA directs agencies to 
provide a description of and, where feasible, an estimate of the number 
of small entities that may be affected by the rules adopted herein. The 
RFA generally defines the term small entity as having the same meaning 
as the terms small business, small organization, and small governmental 
jurisdiction. In addition, the term small business has the same meaning 
as the term small business concern under the Small Business Act. A 
small business concern is one which: (1) Is independently owned and 
operated; (2) is not dominant in its field of operation; and (3) 
satisfies any additional criteria established by the SBA, 15 U.S.C. 
632.
    112. Auction 99 is a closed auction; therefore the specific 
competitive bidding procedures and minimum opening bid amounts 
described in the Auction 99 Procedures Public Notice will affect only 
the 26 individuals or entities listed in Attachment A to that public 
notice and who are the only parties eligible to complete the remaining 
steps to become qualified to bid in Auction 99. The 26 eligible 
individuals or entities for Auction 99 include firms of all sizes.
    113. Radio Stations. This Economic Census category comprises 
establishments primarily engaged in broadcasting aural programs by 
radio to the public. Programming may originate in their own studio, 
from an affiliated network, or from external sources. The SBA has 
established a small business size standard for this category as firms 
having $38.5 million or less in annual receipts. Economic Census data 
for 2012 shows that 2,849 radio station firms operated during that 
year. Of that number, 2,806 firms operated with annual receipts of less 
than $25 million per year, 17 with annual receipts between $25 million 
and $49,999,999 and 26 with annual receipts of $50 million or more. 
Therefore, based on the SBA's size standard the majority of such 
entities are small entities.
    114. According to Commission staff review of the BIA/Kelsey, LLC's 
Media Access Pro Radio Database as of January 30, 2018, about 11,261 
(or about 99.92 percent) of 11,270 commercial radio stations had 
revenues of $38.5 million or less and thus qualify as small entities 
under the SBA definition. The Bureaus note, however, that the SBA size 
standard data does not enable the Bureaus to make a meaningful estimate 
of the number of small entities who may participate in Auction 99. 
There are a maximum of 26 entities that may become qualified bidders in 
Auction 99, in which applicant eligibility is closed. The specific 
procedures and minimum opening bid amounts announced in the Auction 99 
Procedures Public Notice will affect directly all applicants 
participating in Auction 99.
    115. The Bureaus also note that they are unable to accurately 
develop an estimate of how many of these 26 entities are small 
businesses based on the number of small entities that applied to 
participate in prior broadcast auctions, because that information is 
not collected from applicants for broadcast auctions in which bidding 
credits are not based on an applicant's size (as is the case in 
auctions of licenses for wireless services). Potential eligible bidders 
in Auction 99 may include existing holders of broadcast station 
construction permits or licenses. In 2013, the Commission estimated 
that 97 percent of radio broadcasters met the SBA's prior definition of 
small business concern, based on annual revenues of $7 million. The SBA 
has since increased that revenue threshold to $38.5 million, which 
suggests that an even greater percentage of radio broadcasters would 
fall within the SBA's definition. Based on Commission staff review of 
the BIA/Kelsey, LLC's Media Access Pro Radio Database, 4,635 (99.94%) 
of 4,638 a.m. radio stations have revenue of $38.5 million or less. 
Accordingly, based on this data, the Bureaus conclude that the majority 
of Auction 99 eligible bidders will likely meet the SBA's definition of 
a small business concern.
    116. In assessing whether a business entity qualifies as small 
under the definition, business control affiliations must be included. 
The Bureaus' estimate therefore likely overstates the number of small 
entities that might be affected by its action, because the revenue 
figure on which it is based does not include or aggregate revenues from 
affiliated companies. Moreover, the definition of small business also 
requires that an entity not be dominant in its field of operation and 
that the entity be independently owned and operated. The estimate of 
small businesses to which rules may apply does not exclude any radio 
station from the definition of a small business on these bases and is 
therefore over-inclusive to that extent. Furthermore, the Bureaus are 
unable at this time to define or quantify the criteria that would 
establish whether a specific radio station is dominant in its field of 
operation. In addition, the Bureaus note that it is difficult at times 
to assess these criteria in the context of media entities and therefore 
estimates of small businesses to which they apply may be over-inclusive 
to this extent.
    117. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements for Small Entities. In the Auction 99 
Procedures Public Notice, the Bureaus adopted no new reporting, 
recordkeeping or other compliance requirements for small entities or 
other auction applicants. The Commission has designed the auction 
application process itself to minimize reporting and compliance 
requirements for applicants, including small business applicants. In 
the first part of the Commission's two-phased auction application 
process, parties desiring to participate in an auction file 
streamlined, Forms 175 in which they certify under penalty of perjury 
as to their qualifications. Eligibility to participate in bidding is 
based on an applicant's Form 175 and certifications, as well as its 
upfront payment. The Public Notice provides instructions for each 
Auction 99 applicant to maintain the accuracy of their previously filed 
Form 175 electronically using the FCC auction application system and/or 
by direct communication with the Auctions and Spectrum Access Division. 
More specifically as mentioned above, small entities and other Auction 
99 applicants will be qualified to bid in the auction only if they 
comply with the following: (1) Submission of a Form 175 that is timely 
and is found to be substantially complete, and (2) timely submission of 
a sufficient upfront payment for at least one of the permits for which 
it is designated as an applicant on Attachment A to the Auction 99 
Procedures Public Notice. The timely submitted payment must be 
accompanied by a complete and accurate FCC Remittance Advice Form (FCC 
Form 159), and made by 6:00 p.m. ET on April 19, 2018, following the 
procedures and instructions set forth in Attachment B to the Auction 99 
Procedures Public Notice. An applicant whose application is found to 
contain

[[Page 18300]]

deficiencies will have a limited opportunity to bring their application 
into compliance with the Commission's competitive bidding rules during 
a resubmission window. All qualified bidders will automatically be 
registered for the auction and mailed the necessary registration 
materials.
    118. In the second phase of the process, there are additional 
compliance requirements for winning bidders. As with other winning 
bidders, any small entity that is a winning bidder will be required to 
comply with the following: (1) Within 10 business days of release of 
the auction closing public notice submit as a down payment sufficient 
funds (in addition to its upfront payment) to bring its total amount of 
money on deposit with the Commission for Auction 99 to twenty percent 
of the net amount of its winning bids; (2) within 10 business days 
after the down payment deadline submit the balance of the net amount 
for each of its winning bids; and (3) within thirty days following the 
close of bidding and notification to the winning bidders, unless a 
longer period is specified by public notice, electronically submit a 
properly completed long-form application (FCC Form 349, Application for 
Authority to Construct or Make Changes in an FM Translator or FM 
Booster Station) and required exhibits for each construction permit won 
through Auction 99. Winning bidders claiming new entrant status must 
include an exhibit demonstrating their eligibility for the bidding 
credit, 5 U.S.C. 603(c)(1)-(4).
    119. Steps Taken To Minimize the Significant Economic Impact on 
Small Entities, and Significant Alternatives Considered. The RFA 
requires an agency to describe any significant, specifically small 
business, alternatives that it has considered in reaching its proposed 
approach, which may include the following four alternatives (among 
others): (1) The establishment of differing compliance or reporting 
requirements or timetables that take into account the resources 
available to small entities; (2) the clarification, consolidation, or 
simplification of compliance and reporting requirements under the rule 
for such small entities; (3) the use of performance rather than design 
standards; and (4) an exemption from coverage of the rule, or any part 
thereof, for such small entities.
    120. The Bureaus believe that the steps described below to 
facilitate participation in Auction 99 will result in both operational 
and administrative cost savings for small entities and other auction 
participants. In light of the numerous resources that will be available 
from the Commission at no cost, the processes and procedures adopted 
for Auction 99 should result in minimal economic impact on small 
entities. For example, prior to the auction, the Commission will hold a 
mock auction to allow eligible bidders the opportunity to familiarize 
themselves with both the processes and systems that will be utilized in 
Auction 99. During the auction, participants will be able to access and 
participate in the auction via the internet using a web-based system, 
or telephonically, providing two cost effective methods of 
participation and avoiding the cost of travel for in-person 
participation. Further, small entities as well as other auction 
participants will be able to avail themselves of hotlines for 
assistance with auction processes and procedures as well as technical 
support hotlines to assist with issues such as access to or navigation 
within the electronic FCC Form 175 and use of the FCC's auction system. 
In addition, all auction participants will have access to various other 
sources of information and databases through the Commission that will 
aid in both their understanding and participation in the process. These 
steps coupled with the advance communication of the bidding procedures 
rules of the road in Auction 99 should ensure that the auction will be 
administered efficiently and fairly, with certainty for small entities 
as well as other auction participants.
    121. Report to Congress. The Commission will send a copy of the 
Auctions 99 Procedures Public Notice, including this Supplemental FRFA, 
in a report to Congress pursuant to the Congressional Review Act, 5 
U.S.C. 801(a)(1)(A). In addition, the Commission will send a copy of 
the Auctions 99 Procedures Public Notice, including and this 
Supplemental FRFA, to the Chief Counsel for Advocacy of the SBA, 
pursuant to 5 U.S.C. 604(b).

Federal Communications Commission.
Gary Michaels,
Deputy Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. 2018-08788 Filed 4-25-18; 8:45 am]
 BILLING CODE 6712-01-P