[Federal Register Volume 86, Number 108 (Tuesday, June 8, 2021)]
[Rules and Regulations]
[Pages 30389-30391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-11694]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1 and 27

[AU Docket No. 21-62; DA 21-567; FR ID 29366]


Certification Adopted for Auction of Flexible-Use Service 
Licenses in the 3.45-3.55 Band for Next-Generation Wireless Services 
(Auction 110)

AGENCY: Federal Communications Commission.

ACTION: Final action; requirement and procedure.

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SUMMARY: In this document, the Office of Economics and Analytics and 
the Wireless Telecommunications Bureau adopt a certification that will 
be required of each applicant to participate in the upcoming auction of 
flexible-use licenses in the 3.45-3.55 GHz band (Auction 110).

DATES: The Commission will publish a document in the Federal Register 
announcing the effective date of the certification requirement.

FOR FURTHER INFORMATION CONTACT: Auction 110 Information: Mary Lovejoy 
or Andrew McArdell at 202-418-0660.

SUPPLEMENTARY INFORMATION: This is a summary of the Auction 110 
Certification Requirement Public Notice, released on May 19, 2021. The 
complete text of the Auction 110 Certification Requirement Public 
Notice, including attachments and any related documents, is available 
on the Commission's website at www.fcc.gov/auction/110 or by using the 
search function for AU Docket No. 21-62, DA 21-567, on the Commission's 
Electronic Comment Filing System (ECFS) web page at www.fcc.gov/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. By the Auction 110 Certification Requirement Public Notice, the 
Office of Economics and Analytics (OEA) and the Wireless 
Telecommunications Bureau (WTB) adopt a certification that will be 
required of each applicant to participate in the upcoming auction of 
flexible-use licenses in the 3.45-3.55 GHz band (Auction 110). 
Specifically, each applicant for Auction 110 will be required to 
certify in its short-form application that it has read the public 
notice describing the procedures for the auction and that it has 
familiarized itself both with the auction procedures and with the 
requirements for obtaining a license and operating facilities in the 
3.45-3.55 GHz band.
    2. In the Auction 110 Comment Public Notice, 86 FR 18000 (April 7, 
2021), released March 18, 2021, the Commission sought comment on a 
range of proposed procedures for conducting Auction 110, including a 
proposal to require each participant in Auction 110 to certify in its 
short-form application, under penalty of perjury, that it has read the 
public notice adopting procedures for the auction and that it has 
familiarized itself both with the auction procedures and with the 
requirements for obtaining a license and operating facilities in the 
3.45-3.55 GHz band. As with other certifications required to be made in 
an auction application, a failure to make the certification would 
render the application unacceptable for filing, and the application 
would be dismissed with prejudice.
    3. The Commission proposed to establish this requirement to help 
ensure that each applicant has reviewed the procedures to become a 
qualified bidder and participate in the auction process and that it has 
investigated and assessed technical and business factors that may be 
relevant to its use of the licenses being offered. The Commission 
reasoned that this requirement would promote an applicant's successful 
participation and would minimize its risk of auction defaults.
    4. This certification is designed to bolster applicants' efforts to 
educate themselves to the greatest extent possible about procedures for 
auction participation and to ensure that, prior to submitting their 
short-form applications, applicants understand their obligation to stay 
abreast of relevant, forthcoming information. By ensuring familiarity 
with the Commission's rules and procedures governing Auction 110, OEA 
and WTB are also taking steps to help bidders avoid the consequences to 
them associated with defaults, as well as the consequences for other 
applicants, the public, and the Commission associated therewith. This 
certification, along with the other certifications required pursuant to 
Sec.  1.2105(a) of the Commission's rules, helps ensure that auction 
applicants are sincere about their interest in the auction, and it may 
discourage the filing of frivolous applications that waste Commission 
resources.
    5. For these reasons, OEA and WTB will require each Auction 110 
applicant to certify as follows in its short-form application:

That the applicant has read the public notice adopting procedures 
for the auction and that it has familiarized itself both with the 
auction procedures and with the requirements for obtaining a license 
and operating facilities in the 3.45-3.55 GHz band.

An applicant will provide this certification under penalty of perjury, 
consistent with Sec.  1.2105(a) of the Commission's rules.
    6. This action is taken by the Office of Economics and Analytics, 
jointly with the Wireless Telecommunications Bureau, pursuant to 
Sec. Sec.  0.21(m) and 0.131(c) of the Commission's rules. This 
requirement is an information collection that is subject to approval by 
the Office of Management and Budget (OMB), pursuant to the Paperwork 
Reduction Act of 1995, Public Law 104-13. Accordingly, this requirement 
will apply to applicants for Auction 110 only if it has been approved 
by OMB and notice of such approval has been published in the Federal 
Register prior to the opening of the short-form application window for 
Auction 110.

Supplemental Final Regulatory Flexibility Analysis

    7. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), a Supplemental Initial Regulatory Flexibility Analysis 
(Supplemental IRFA) was incorporated in the Auction 110 Comment Public 
Notice released in March 2021. The

[[Page 30390]]

Commission sought public comment on the proposals in the Auction 110 
Comment Public Notice, including comments on the Supplemental IRFA. One 
comment was filed addressing the Supplemental IRFA. The Auction 110 
Certification Requirement Public Notice establishes a certification 
requirement to be used for Auction 110 and supplements the Initial and 
Final Regulatory Flexibility Analyses completed by the Commission in 
the 3.1-3.55 GHz Report and Order (R&O) and Further Notice of Proposed 
Rulemaking (FNPRM), 85 FR 64062, October 2, 2020, and 85 FR 66888, 
October 21, 2020, 3.45 GHz Second Report and Order, 86 FR 17920, April 
7, 2021, and other Commission orders pursuant to which Auction 110 will 
be conducted. This present Supplemental Final Regulatory Flexibility 
Analysis (Supplemental FRFA) conforms to the RFA.
    8. Need for, and Objectives of, the Rules. The Auction 110 
Certification Requirement Public Notice implements an element of the 
auction procedures for those entities that seek to bid to acquire 
licenses in Auction 110, which will be the Commission's third auction 
of mid-band spectrum in furtherance of the deployment of fifth-
generation (5G) wireless, the Internet of Things (IoT), and other 
advanced spectrum-based services.
    9. To promote the efficient and fair administration of the 
competitive bidding process for all Auction 110 participants, OEA and 
WTB adopt a procedure requiring each Auction 110 applicant to certify 
that it has read the public notice adopting procedures for the auction 
and that it has familiarized itself both with the auction procedures 
and with the requirements for obtaining a license and operating 
facilities in the 3.45-3.55 GHz band, consistent with the proposal made 
in the Auction 110 Comment Public Notice.
    10. This requirement is an element of the more specific 
implementation of the competitive bidding rules contemplated by parts 1 
and 27 of the Commission's rules and the underlying rulemaking 
decisions regarding the 3.45-3.55 GHz band, including the 3.45 GHz 
Second Report and Order, and relevant competitive bidding orders, and 
are fully consistent therewith.
    11. Summary of Significant Issues Raised by Public Comments in 
Response to the Supplemental IRFA. One party--the Rural Wireless 
Association (RWA)--filed comments that address issues raised in the 
Supplemental IRFA. RWA argues that the Commission's analysis in the 
Auction 110 Comment Public Notice's Supplemental IRFA underestimates 
the costs that small and rural entities incur when participating in a 
Commission auction. RWA states that, contrary to the Commission's 
expectations, RWA members regularly consult attorneys, engineers, and 
consultants to participate in Commission auctions, incurring costs of 
$100,000 on average per auction. RWA provides no support for this cost 
figure. Nor does RWA clarify what portion of this figure represents 
costs associated with applying to participate in the auction and/or 
whether the figure may be an aggregate amount for all of its trade 
association members. RWA claims that the educational materials provided 
by the Commission are insufficient, as some materials are not provided 
until after the short-form application deadline.
    12. 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 comments filed by the Chief Counsel for Advocacy of the Small 
Business Administration (SBA) and to provide a detailed statement of 
any changes made to the proposed procedures as a result of those 
comments. The Chief Counsel did not file any comments in response to 
the procedures that were proposed in the Auction 110 Comment Public 
Notice.
    13. Description and Estimate of the Number of Small Entities to 
Which the Rules 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 and policies 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.
    14. As noted above, Regulatory Flexibility Analyses were 
incorporated into the 3.1-3.55 GHz R&O and FNPRM and the 3.45 GHz 
Second Report and Order. These decisions provide the underlying 
authority for the procedures proposed in the Auction 110 Comment Public 
Notice and are adopted herein for Auction 110. In those regulatory 
flexibility analyses, the Commission described in detail the small 
entities that might be significantly affected. In the Auction 110 
Certification Requirement Public Notice, OEA and WTB hereby incorporate 
by reference the descriptions and estimates of the number of small 
entities from the previous Regulatory Flexibility Analyses in the 3.1-
3.55 GHz R&O and FNPRM and the 3.45 GHz Second Report and Order.
    15. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements for Small Entities. The Commission designed its 
auction application process to minimize reporting and compliance 
requirements for applicants, including small business applicants. In 
the first part of the Commission's two-stage auction application 
process, parties desiring to participate in an auction file a 
streamlined, short-form application in which they certify under penalty 
of perjury as to their qualifications. Eligibility to participate in an 
auction is based on an applicant's short-form application and 
certifications, as well as its upfront payment. The Auction 110 
Certification Requirement Public Notice adds to the existing 
certifications that are required under the Commission's competitive 
bidding rules a certification that is specific to Auction 110.
    16. Typically, the auction procedures informs prospective 
applicants that they are expected to familiarize themselves with the 
Commission's general competitive bidding rules, Commission decisions 
regarding competitive bidding procedures, application requirements, 
obligations of Commission licensees, and the Commission's service rules 
for the frequency band available in the auction, and that they must be 
thoroughly familiar with the procedures, terms, and conditions 
contained in the public notice adopting procedures for the auction. OEA 
and WTB therefore do not expect that the certification requirement 
adopted in the Auction 110 Certification Requirement Public Notice will 
increase the need for small entities to hire attorneys, engineers, 
consultants, or other professionals because it does not increase the 
level of education or due diligence beyond what was required of 
applicants prior to the adoption of the certification requirement, and 
thus it should not increase an applicant's burden in complying with the 
additional certification requirement. The public notice adopting the 
procedures for Auction 110 will be made publicly available on the 
Auction 110 web page, and the 3.45 GHz Second Report and Order is 
already publicly available on both the Commission's main website and 
the Auction 110 web

[[Page 30391]]

page. OEA and WTB believe that these materials are sufficient to ensure 
that Auction 110 applicants can certify truthfully that they have read 
the auction procedures and familiarized themselves with the relevant 
rules and requirements.
    17. RWA does not provide evidence that outside consultants are 
needed to enable an entity to certify truthfully that it has read the 
public notice adopting the procedures for the auction and that it has 
familiarized itself both with the auction procedures and with the 
requirements for obtaining a license and operating facilities in the 
3.45-3.55 GHz band. Instead, RWA claims that small entity bidders 
cannot make complex decisions on the future impacts of auction bidding, 
participation, and winning bidder compliance requirements without 
outside counsel. In doing so, RWA appears to conflate compliance with 
auction procedures (in this case, certifying that they have read the 
public notice adopting procedures for Auction 110 and familiarized 
themselves with those procedures and the service rules for the 3.45-
3.55 GHz band) with the development of bidding strategies and 
compliance with the relevant service rules. The Commission does not 
believe that outside consultants of this sort are necessary for an 
applicant to comply with this certification requirement.
    18. 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 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.
    19. The Commission has taken steps to minimize any economic impact 
of its auction procedures on small entities through, among other 
things, the many free resources the Commission provides to potential 
auction participants. Consistent with the past practices in prior 
auctions, small entities that are potential participants will have 
access to the public notice adopting the procedures for Auction 110 
prior to the opening of the application window, and already have access 
to the 3.45 GHz Second Report and Order on both the Commission's main 
website and the Auction 110 web page. The Commission makes this 
information publicly available and easily accessible and without charge 
to benefit all potential Auction 110 applicants, including small 
entities, thereby lowering their administrative costs to comply with 
the Commission's competitive bidding rules.
    20. Small entities and other auction participants may seek 
clarification of, or guidance regarding, the Auction 110 procedures and 
the service rules for the 3.45-3.55 GHz band rules prior to the Auction 
110 application window. Additionally, an FCC Auctions Hotline will 
provide small entities one-on-one access to Commission staff for 
information about the auction process and procedures. The FCC Auctions 
Technical Support Hotline is another resource that provides technical 
assistance to applicants, including small entities, on issues such as 
access to or navigation within the electronic FCC Form 175 and use of 
the bidding system.
    21. The Commission also makes various databases and other sources 
of information, including the auctions program web pages and copies of 
Commission decisions, available to the public without charge, providing 
a low-cost mechanism for small entities to conduct research prior to 
and throughout the auction.
    22. These procedures for the conduct of Auction 110 constitute the 
more specific implementation of the competitive bidding rules 
contemplated by parts 1 and 27 of the Commission's rules and the 
underlying rulemaking decisions regarding the 3.45-3.55 GHz band, 
including the 3.45 GHz Second Report and Order and relevant competitive 
bidding decisions, and are fully consistent therewith.
    23. Report to Congress. The Commission will send a copy of the 
Auction 110 Certification Requirement Public Notice, including the 
Supplemental FRFA, in a report to Congress pursuant to the 
Congressional Review Act. In addition, the Commission will send a copy 
of the Auction 110 Certification Requirement Public Notice, including 
the Supplemental FRFA, to the Chief Counsel for Advocacy of the SBA.

Federal Communications Commission.
Erik Salovaara,
Assistant Chief, Auctions Division, Office of Economics and Analytics.
[FR Doc. 2021-11694 Filed 6-7-21; 8:45 am]
BILLING CODE 6712-01-P