# October 13, 2004

# 

# DA04-3226

#### VIA CERTIFIED MAIL

[RETURN RECEIPT REQUESTED]{.underline}

Mr. Mark Grady

Communications Venture PCS, L.P.

19079 Market Street

P.O. Box 47

New Paris, IN 46553

## Re: Final Withdrawal Payment for Auction No. 11

Dear Mr. Grady:

Communications Venture PCS, L.P. ("Communications Venture"), a
participant and high bidder in Auction No. 11, withdrew its high bid on
license BTA233F during the course of the auction.[^1] Auction No. 22,
the subsequent auction for license BTA233F, has closed.[^2] Therefore,
in accordance with the Federal Communications Commission's
(Commission's) rules, we are now able to calculate Communications
Venture's final bid withdrawal payment for this license.

Under the Commission's rules, a bidder that withdraws a high bid during
the course of an auction is subject to a bid withdrawal payment equal to
the difference between the amount of the withdrawn bid and the amount of
the subsequent winning bid.[^3] If a high bid is withdrawn on a license
that remains unsold at the close of the auction, the withdrawing bidder
will be required to make an interim payment equal to three percent (3%)
of the net amount of the withdrawn bid.[^4] This payment amount is
deducted from any up-front payments or down payments deposited for this
bidder's account with the Commission.[^5] If, in a subsequent auction,
that license receives a winning bid in an amount equal to or greater
than the withdrawn bid amount, then no final bid withdrawal payment will
be assessed, and, upon appropriate request, the Commission will refund
the interim three percent (3%) payment.[^6] If in a subsequent auction,
the winning bid for that license is less than the bidder's withdrawn
amount, then the bidder will be required to make a final bid withdrawal
payment equal to either the difference between the bidder's net
withdrawn bid and the subsequent net winning bid, or the difference
between the bidder's gross withdrawn bid and the subsequent gross
winning bid, whichever is less.[^7]

With respect to Communications Venture's bid withdrawal on its high bid
for license BTA233F in Auction No. 11, because this was sold at Auction
No. 22 the Commission is now able to assess the full amount of the final
bid withdrawal payment for this license.[^8] As shown in Attachment A,
in Auction No. 22, the net winning bid amount of \$47,122.50 for license
BTA233F was less than Communications Venture's withdrawn net bid amount
of \$249,750.00. In accordance with Sections 1.2104(g)(1) of the
Commission's rules, Communications Venture is assessed a final bid
withdrawal payment of \$202,627.50 in connection with license BTA233F.
Because this license was unsold at the close of Auction No. 11, an
interim bid withdrawal payment equal to three percent of the withdrawn
bid was deducted from any upfront payments or down payments on deposit
in Communications Venture's account with the Commission.[^9] The amount
of this interim bid withdrawal payment is \$7,492.50.[^10] Therefore, in
accordance with Section 1.2104(g)(1), after applying the interim bid
withdrawal payment of \$7,492.50 to the bid withdrawal payment
obligation of \$202,627.50, Communications Venture owes an outstanding
balance of \$195,135.00 in connection with license BTA233F, on which
Communications Venture withdrew a high bid during Auction No. 11.

Communications Venture is in debt to the United States in the amount of
\$195,135.00, payable in full, immediately, and without further demand.
As permitted under 31 U.S.C. § 3717, the debt is subject to interest,
penalties, and administrative costs, and interest accrues from the date
of this letter, which is also its mailing date. Communications Venture,
the debtor, may avoid payment of the interest if it tenders to the
Commission full payment within 30 days of the date of the letter.
Moreover, the debt is subject to an additional charge to cover the cost
of processing and handling of delinquent debts, and a penalty charge in
the amount permitted by law. The penalty charge for delinquent debt
payments permitted by 31 U.S.C. § 3717 currently is 6 percent a year for
the failure to pay any part of the debt more than 90 days past due.

##### 

##### 

##### Ordering Clauses

Accordingly, IT IS ORDERED that, pursuant to Sections 4(i) and 309 of
the Communications Act of 1934 as amended, 47 U.S.C. §§ 154(i), 309, and
Section 1.2104(g) of the Commission's Rules, 47 C.F.R. § 1.2104(g),
Communications Venture PCS, L.P., IS ASSESSED a final bid withdrawal
payment of \$202,627.50 for license No. BTA233F, as computed in
Attachment A.

IT IS FURTHER ORDERED, that pursuant to 47 C.F.R §§ 1.2104 and 1.2106,
the interim bid withdrawal payment of \$7,492.50 will be applied towards
the final bid withdrawal payment of \$202,627.50, leaving Communications
Venture PCS, L.P., with a debt to the Commission in the amount of
\$195,135.00.

It is FURTHER ORDERED that Communications Venture PCS, L.P.'s debt of
\$195,135.00 be paid immediately, in accordance with the payment
instructions in Attachment B within 30 days of the date of this letter,
and if it is unpaid 30 days of the date of this letter, interest will
accrue from the date of this letter along with penalties and
administrative costs permitted by 31 U.S.C. § 3717.

It is FURTHER ORDERED that this letter shall be sent to the applicant
and its representatives by certified mail, return receipt requested.
This action is taken pursuant to authority delegated by Section 0.331 of
the Commission's rules, 47 C.F.R. § 0.331.

Sincerely,

> Rita Cookmeyer
>
> Financial Policy Analyst
>
> Auctions and Industry Analysis Division
>
> Wireless Telecommunications Bureau

cc: David Lafuria

Lukas McGowan Nace & Gutierrez

## ATTACHMENT A

Broadband PCS Service, Blocks D, E, and F

Spectrum License Auction

**Multi-Auction Bid Withdrawal Payment Report**

+------+---------+--------+--------+-------------+---------+--------+
| Lic  | Market  | A      | A      | Final Bid   | Interim | B      |
| ense |         | uction | uction | Withdrawal  | Bid     | alance |
|      | Desc    | 11     | 22     | Payment -   | Wit     | Owed   |
| Nu   | ription |        |        | Difference  | hdrawal |        |
| mber |         | Comm.  | ABC    |             | Payment |        |
|      |         | Vent.  | Wi     | Between     |         |        |
|      |         |        | reless | Withdrawn   | Amount  |        |
|      |         | Wit    |        | Net Bid     |         |        |
|      |         | hdrawn | Net    | Amount and  |         |        |
|      |         |        | Bid    | Final Net   |         |        |
|      |         | Net    | Amount | Bid Amount  |         |        |
|      |         | Bid    |        |             |         |        |
|      |         | Amount |        |             |         |        |
+------+---------+--------+--------+-------------+---------+--------+
| B    | Kokomo, | \$249, | \$47,  | \           | \$7     | \$195, |
| 233F | IN      | 750.00 | 122.50 | $202,627.50 | ,492.50 | 135.00 |
+------+---------+--------+--------+-------------+---------+--------+

**ATTACHMENT B**

The following information is being provided to assist you in making your
payment.

**PAYMENT INSTRUCTIONS**

All payments must be made in U.S. currency in the form of a wire
transfer. No personal checks, cashier's checks or other forms of payment
will be accepted. Wire transfer payments must be received by Mellon Bank
by 6:00 PM Eastern Time, no later than thirty days from the date of the
ORDER; however, if the 30th day falls on a non-business day, e.g.,
Saturday, Sunday or holiday, it is due the next business day. Applicants
must allow sufficient time for the wire transfer to be initiated and for
the transmission to be completed prior to the deadline. To submit funds
by wire, applicants will need the following information to properly
effect the transmittal:

ABA Routing Number: 043000261

Receiving Bank: Mellon Pittsburgh

BNF: FCC/Account #911-6106

OBI Field: (Skip one space between each information item)

"AUCTIONPAY"

FCC REGISTRATION NO. (same as FCC Form 159, Block 11 and/or 21)

PAYMENT TYPE CODE (enter "ADFT") same as FCC Form 159, Block 24A

FCC CODE 1 (same as FCC Form 159, Block 28A: ("11")

PAYOR NAME (same as FCC Form 159, Block 2)

LOCKBOX No.: 358850

A completed FCC Remittance Advice Form (FCC Form 159, Version 2/00) must
accompany payments. On the same business day that the applicant submits
payment to Mellon Bank, the applicant must submit a completed FCC Form
159 via facsimile at (412) 209-6045, at least one-hour prior to placing
the order for the wire transfer. The specified debt is due and payable
to the United States immediately and without demand, and it is subject
to interest, penalties, and additional administrative costs. Interest
accrues from the date of the ORDER; however, to avoid the payment of
charges (i.e., interest, penalties, and administrative costs) and
enforced collection, full payment must be made and received within 30
days from the date of the ORDER. Debtor's failure to make complete
timely payment will result in assessment of such charges permitted by 31
U.S.C. § 3717.

For questions regarding the submission of payment, and the FCC Form 159,
contact Gail Glasser or Tim Dates, Office of the Managing Director,
Financial Operations Center, Auctions Accounting Group, at (202)
418-0578 or (202) 418-0496.

[^1]: License BTA233F (Kokomo, IN) was not sold in Auction No. 11 and
    pursuant to our rules an interim withdrawal bid payment of
    \$7,492.50 was assessed against Communications Venture for this
    license. "D, E and F Block Auction Closes," *Public Notice*, DA
    97-81, 1997 WL 20711 (rel. Jan 15, 1997) ("*Auction No. 11 Winning
    Bidders Public Notice*"). Also, in Auction No. 11, Communications
    Venture withdrew a high bid on license BTA126F, which sold during
    Auction No. 11 for a lower amount to 21^st^ Century Bidding Corp for
    a net bid in the amount of \$304,237.00. The final bid withdrawal
    payment of \$30,262.50 of Communications Venture with regard to
    license BTA126F was deducted from its Auction No. 11 upfront
    payment.

[^2]: "C, D, E, and F Block Broadband PCS License Auction Closes,"
    *Public Notice*, 14 FCC Rcd 6688 (1999) ("*Auction No. 22 Closing
    PN*").

[^3]: 47 C.F.R. § 1.2104(g)(1).

[^4]: *Auction No. 11 Winning Bidders Public Notice*, at 3 (citing
    Implementation of Section 309(j) of the Communications
    Act---Competitive Bidding, PP Docket No. 93-253, *Fifth Report and
    Order*, 9 FCC Rcd 5532, 5563 at n. 51 (1994); C.H. PCS, Inc., 11 FCC
    Rcd 14,495 (1996) (requiring a three percent deposit).

[^5]: 47 C.F.R. § 1.2106(d) and (e).

[^6]: 47 C.F.R. § 1.2104(g)(1).

[^7]: 47 C.F.R. § 1.2104(g)(1).

[^8]: 47 C.F.R. § 1.2104(g)(1).

[^9]: 47 C.F.R. §§ 1.2104(g)(1), 1.2106(e).

[^10]: Attachment A.