DA 08-1436

June 18, 2008

**AUCTION OF CELLULAR UNSERVED SERVICE AREA LICENSE CLOSES**

**Winning Bidder Announced for Auction 77**

**Down Payments due July 2, 2008**

**Final Payments due July 17, 2008**

Report No. AUC-08-77-F (Auction 77)

# Auction results

1.  On June 17, 2008, the Federal Communications Commission completed
    the closed auction of one unserved service area in the Cellular
    Radiotelephone Service, designated as Auction 77. Auction 77
    concluded with one provisionally winning bid for the unserved area
    totaling \$25,002.

2.  This Public Notice provides detailed information concerning the
    winning bidder, down payment, final payment and/or refunds, requests
    for rule waivers, and licensing matters. Key information appears in
    the following attachments:

**Attachment A:** "Winning Bids" lists the winning bidder and its total
winning bid amount.

> **Attachment B:** "Bidder Payment/Refund" lists the down payment and
> final payment owed by the winning bidder and refunds due, if any.[^1]

A copy of this Public Notice will be sent via overnight delivery to both
applicants.

# POST-AUCTION PROCEDURES

## Down Payments

3.  The Commission's rules require that within ten business days after
    the release of this Public Notice, in this case by **6:00 p.m.
    Eastern Time (ET) on July 2, 2008**, the winning bidder in Auction
    77 must have on deposit with the Commission enough funds to cover
    the down payment on its winning bid.[^2] Specifically, the winning
    bidder's total deposit must be twenty percent of the net amount of
    its winning bid. If a winning bidder's upfront payment is not
    sufficient to meet this requirement, the winning bidder must deposit
    additional funds to meet its required down payment.

4.  The amount now due from the winning bidder, if any, is set out in
    the "Additional Amount Due after Upfront Payment Balance Applied Due
    by **July 2**, **2008**" column of Attachment B. Note that a payment
    and FCC Remittance Advice Form (FCC Form 159) are necessary only if
    the winning bidder's upfront payment does not cover the required
    total down payment (as reflected in Attachment B).

## Final Payments

5.  The winning bidder will be required to submit the balance of the net
    amount of its winning bid by **July 17, 2008**,[^3] as set out in
    the "Final Balance Due By **July 17, 2008** or (Refund)" column of
    Attachment B. The winning bidder must pay the full amount of the
    Final Balance Due shown in Attachment B by **6:00 p.m. ET on July
    17, 2008**, (or by 6:00 p.m. ET on **July 31, 2008**, along with the
    five percent late fee required by Section 1.2109(a) of the
    Commission's rules).[^4] Full and timely payment of the winning bid
    and any applicable late fees must be made in accordance with Section
    1.2109(a) of the Commission's rules and must occur before action
    will be taken upon the winning bidder's long-form application (FCC
    Form 601).[^5] Specifically, the license will be granted only after
    the full and timely payment of the winning bid and any applicable
    late fees, in accordance with Section 1.2109(a).[^6]

## Method of Payment for Down and Final Payments

6.  All payments must be in U.S. dollars and made in the form of a wire
    transfer.[^7] No personal checks, credit card payments, automated
    clearing house ("ACH"), or other forms of payment will be accepted.
    All payments must be accompanied by a completed FCC Form 159.

7.  Questions concerning the calculation and submission of down and
    final payments, the FCC Form 159, and refunds should be directed to
    Gail Glasser at (202) 418-0578.

8.  To submit funds by wire transfer, the winning bidder will need the
    following information:

> ABA Routing Number: **021030004**
>
> Receiving Bank: **TREAS NYC**
>
> 33 Liberty Street
>
> New York, NY 10045
>
> ACCOUNT NAME: **FCC**
>
> ACCOUNT NUMBER**: 27000001**
>
> OBI Field: (Skip one space between each information item) "AUCTIONPAY"
>
> PAYER FRN: (same as FCC Form 159, block 21)
>
> PAYMENT TYPE CODE: (same as FCC Form 159, block 24A: "**A77D**")
>
> FCC CODE 1: (same as FCC Form 159, Block 28A: "77")
>
> PAYOR NAME: (same as FCC Form 159, Block 2)

LOCKBOX NO.: \#**979085**

### Down Payment

9.  If applicable, a partially completed copy of the FCC Form 159 will
    be sent to the winning bidder to facilitate submission of the
    correct down payment. Please note, however, that a winning bidder is
    responsible for ensuring timely submission of the correct down
    payment, timely filing of an accurate and complete FCC Form 159, and
    obtaining confirmation from its financial institution that the
    Commission has timely received the down payment and deposited it
    into the proper account.

10. Wire transfers for down payments must be received by the Commission
    by **6:00 p.m. ET on July 2, 2008**. The winning bidder should
    coordinate with its financial institution ahead of time regarding
    its wire transfer and allow sufficient time for the wire transfer to
    be initiated and completed prior to the deadline.

11. At least one hour before placing the order for the wire transfer
    (but on the same business day), the winning bidder must send by fax
    the completed FCC Form 159 to U.S. Bank, St. Louis Missouri at (314)
    418-4232. Proper completion of the FCC Form 159 is critical to
    ensuring correct credit of bidder deposits. A winning bidder must
    use the same FCC Registration Number (FRN) used on its short-form
    application (FCC Form 175).

12. Failure to complete this down payment process by **6:00 p.m. ET on
    July 2, 2008**, will result in default.[^8]

### Final Payment

13. If applicable, a partially completed copy of the FCC Form 159 will
    be sent to the winning bidder to facilitate submission of the
    correct final payment. Please note, however, that a winning bidder
    is responsible for ensuring timely submission of the correct final
    payment, timely filing of an accurate and complete FCC Form 159, and
    obtaining confirmation from its financial institution that the
    Commission has timely received the final payment and deposited it
    into the proper account.

14. Wire transfers of final payments must be received by the Commission
    by **6:00 p.m. ET on July 17, 2008**, (or by 6:00 p.m. ET on July
    31, 2008, along with the five percent late fee required by Section
    1.2109(a) of the Commission's rules).[^9] A winning bidder should
    coordinate with its financial institution ahead of time regarding
    its wire transfer and allow sufficient time for the wire transfer to
    be initiated and completed prior to the deadline.

15. Payments must be preceded by the completed FCC Remittance Advice
    Form (FCC Form 159). The winning bidder must send by fax, at least
    one hour prior to placing the order for the wire transfer, but on
    the same business day that it pays the balance due to the
    Commission, a completed FCC Form 159 to U.S. Bank, St. Louis
    Missouri at (314) 418-4232. On the FCC Form 159, the applicant must
    use the same FRN used on its short-form application (FCC Form 175).

16. Failure to complete the final payment by **6:00 p.m. ET on July 31,
    2008** (along with the five percent late fee, if applicable), will
    result in default.[^10]

## Default and Disqualification Payments 

17. The Commission imposes payment obligations on bidders that default
    on payments due after an auction closes, and those that are
    disqualified.[^11]

### Bid Default/Disqualification Payments from Auction 77

18. If the winning bidder defaults or is disqualified after the close of
    the auction (i.e., fails to remit the required down payment within
    the prescribed period of time, fails to make full payment, or is
    otherwise disqualified), the defaulting bidder will be subject to
    the payment obligations described in Section 1.2104(g)(2).[^12]
    These payment obligations include both a deficiency payment, equal
    to the difference between the amount of the bidder's bid and the
    amount of the winning bid the next time a license covering the same
    spectrum is won in an auction, plus an additional payment equal to a
    percentage of the defaulter's bid or the subsequent winning bid,
    whichever is less.[^13] The Bureau set the additional default
    payment for the auction of the cellular unserved area licenses at
    twenty percent of the applicable bid.[^14]

19. If the winning bidder fails to remit the required down payment
    within ten business days after the Commission has released this
    Public Notice, in this case by **July 2, 2008**, the bidder will be
    deemed to have defaulted, its long-form application will be
    dismissed, and it will be liable for a default payment as described
    above.[^15]

20. If the winning bidder fails to pay the balance of its winning bid in
    a lump sum by the applicable deadline as specified by the
    Commission, it will be allowed to make a late payment within ten
    business days after the payment deadline, provided that it also pays
    a late fee equal to five percent of the amount due.[^16] When a
    winning bidder fails to pay the balance of its winning bid plus the
    late fee by the late payment deadline, it will be deemed to have
    defaulted on its license and subject to applicable default
    payments.[^17]

21. The license will be awarded upon completion of the review of the
    applicant's Form 601 application and a determination that the
    applicant's Form 601 application meets Commission requirements for
    grant, but only after the full and timely payment of the winning bid
    and any applicable late fees.[^18] If the winning bidder defaults on
    any of its required payments or is disqualified for any reason after
    having made the required payments, it will be deemed to have
    defaulted, its application will be dismissed, and it will be liable
    for the payment set forth in Section 1.2104(g)(2).[^19]

22. In the event of a default, the Commission, at its discretion, may
    re-auction the license or offer it to the next highest bidder (in
    descending order) at its final bid amount.[^20]

23. Additionally, a bidder that is found to have violated the antitrust
    laws or the Commission's rules in connection with its participation
    in the competitive bidding process may be subject, in addition to
    any other applicable sanctions, to forfeiture of its upfront
    payment, down payment, or full bid amount, and may be prohibited
    from participating in future auctions.[^21]

## Refund of Excess Payments 

24. Upfront monies on deposit that are in excess of an applicant's
    Auction 77 obligations may be refunded to the payer of record as
    identified on the FCC Form 159. To be eligible to receive a refund,
    an applicant must submit a refund request and provide wire transfer
    instructions. Applicants can provide this information by accessing
    the "See Wire Transfer for Refund Purposes" link under the
    Post-Auction section of the My Auctions web page by **July 2,
    2008**. After this date, applicants must send a request for refund
    along with the necessary wire transfer instructions and FRN by
    facsimile to Gail Glasser of the Office of the Managing Director
    at (202) 418-2843. Any questions concerning refunds should be
    referred to Gail Glasser at (202) 418-0578.

## FCC Form 601

25. Within the mutually exclusive application group, the
    previously-filed applications (FCC Form 601) of the unsuccessful
    bidder will be dismissed following the grant of the winning bidder's
    license.

## FCC Form 602 

26. Pursuant to Sections 1.919 and 1.2107(f) of the Commission's rules,
    an applicant for a license in an auctionable service must have on
    file with the Commission a current FCC Form 602 reporting the
    applicant's complete and accurate ownership information.[^22]

## Maintaining Accuracy of Information

27. After the auction closes, applicants are required to make all
    changes in the Commission's Universal Licensing System ("ULS") using
    FCC Form 601.[^23] With the release of this Public Notice,
    applicants are no longer required to maintain the accuracy and
    completeness of information furnished on their short-form
    applications and exhibits.

## Application Processing and License Grant

28. The license will be awarded upon the completion of the review of the
    applicant's application and a determination that the applicant's
    application meets Commission requirements for grant. If the
    Commission determines that an applicant is otherwise qualified, that
    there are no substantial and material issues of fact, and that no
    additional payments are due, it will issue a public notice
    announcing grant of the license to the applicant.[^24]

29. The Commission reminds parties to our proceedings and their
    attorneys that the Commission intends to use its authority fully to
    deter the filing of frivolous pleadings.[^25]

# OTHER IMPORTANT INFORMATION

## Anti-Collusion Rules

30. To ensure the competitiveness of the auction process, the
    Commission's rules prohibit competing applicants from communicating
    with each other about bids, bidding strategies, or settlements,
    unless such applicants have identified each other on their
    short-form applications as parties with whom they have entered into
    agreements under Section 1.2105(a)(2)(viii).[^26]

31. As explained more fully in the *Auction 77 Qualified Bidders Public
    Notice*, this prohibition began at the short-form application filing
    deadline and continues until the down payment deadline after Auction
    77.[^27]

32. The collusion prohibition applies to all applicants in Auction 77
    regardless of whether an applicant became a qualified bidder or
    actually participated in the bidding, and the prohibition continues
    for all applicants until the down payment deadline regardless of
    whether a winning bidder needs to make an additional payment by the
    down payment deadline.[^28] Applicants certified their compliance
    with Section 1.2105(c) when their short-form applications were
    signed.

## Return of SecurID® Tokens

33. The SecurID^®^ tokens distributed to qualified bidders are tailored
    to this auction and will not work for future auctions. Bidders
    should return their SecurID^®^ tokens to the Commission for
    recycling. The Commission will send bidders, along with the copy of
    this Public Notice, a pre-addressed, stamped envelope to return the
    SecurID^®^ tokens. Bidders should return the tokens by **July 17,
    2008**.

## Contact Information

+-------------------------------+--------------------------------------+
| News Media:                   | Chelsea Fallon at (202) 418-7991     |
|                               |                                      |
|                               | Matt Nodine at (202) 418-1646        |
|                               |                                      |
|                               | (Wireless Telecommunications Bureau) |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Technical Support Hotline:    | FCC Auctions Technical Support       |
|                               | Hotline at                           |
| (hardware/software issues)    |                                      |
|                               | \(877\) 480-3201, option nine; (202) |
|                               | 414-1250;                            |
|                               |                                      |
|                               | or (202) 414-1255 (TTY)              |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Office of the Managing        | Gail Glasser at (202) 418-0578       |
| Director                      |                                      |
|                               |                                      |
| Auctions Accounting Group     |                                      |
|                               |                                      |
| (payment, FCC Form 159 and    |                                      |
| refund questions)             |                                      |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Wireless Telecommunications   | Erin McGrath, Attorney, at (202)     |
| Bureau,                       | 418-0620                             |
|                               |                                      |
| Mobility Division             | Gabriel Ubieta, Engineer, at (202)   |
|                               | 418-0620                             |
| (FCC Form 601 and 602         |                                      |
| questions)                    | Denise Walter, Licensing, at (202)   |
|                               | 418-0620                             |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Wireless Telecommunications   | Barbara Sibert, Project Manager, at  |
| Bureau, Auctions and Spectrum | (717) 338-2868                       |
| Access Division               |                                      |
| (auction-related questions)   | Roy Knowles, Auctions Analyst, at    |
|                               | (717) 338-2868                       |
|                               |                                      |
|                               | Sayuri Rajapakse, Attorney, at (202) |
|                               | 418-0660                             |
+-------------------------------+--------------------------------------+

To request materials in accessible formats (Braille, large print,
electronic files, audio format) for people with disabilities, send an
e-mail to <fcc504@fcc.gov> or call the Consumer and Governmental Affairs
Bureau at (202) 418-0530 or (202) 418-0432 (TTY).

**- FCC -**

[^1]: The amounts listed in Attachment B are based on upfront payments
    and winning bids.

[^2]: 47 C.F.R. § 1.2107(b).

[^3]: 47 C.F.R. § 1.2109(a).

[^4]: *Id.*

[^5]: 47 C.F.R. § 1.2109. A winning bidder that is found unqualified to
    be a Commission licensee will be deemed to have defaulted, its
    application will be dismissed, and it will be liable for the payment
    set forth in Section 1.2104(g)(2) of the Commission's rules. *See*
    47 C.F.R. §§ 1.2104(g), 1.2109(c).

[^6]: 47 C.F.R. § 1.2109(a).

[^7]: The wire transfer must be initiated by the winning bidder through
    its bank, authorizing the bank to wire funds from the bidder's
    account to the Commission's account, which will receive payments for
    financial obligations resulting from Auction 77. Additional
    information on wire transfers is available on the Commission's web
    site at: <http://www.fcc.gov/fees/wiretran.html>.

[^8]: Section D, below.

[^9]: 47 C.F.R. § 1.2109(a).

[^10]: Section D, below.

[^11]: *See* 47 C.F.R. §§ 1.2104(g), 1.2109.

[^12]: 47 C.F.R. § 1.2104(g)(2).

[^13]: "Closed Auction of Licenses for Cellular Unserved Service Areas
    Scheduled for June 17, 2008; Notice and Filing Requirements, Minimum
    Opening Bids, Upfront Payments, and Other Procedures for Auction
    77," *Public Notice,* DA 08-926 at ¶ 118 (rel. April 25, 2008)
    ("*Auction 77 Procedures* *Public Notice")*.

[^14]: *Id.* at ¶ 120.

[^15]: 47 C.F.R. §§ 1.2104(g), 1.2109(g)(2).

[^16]: 47 C.F.R. § 1.2109(a).

[^17]: 47 C.F.R. §§ 1.2104(g)(2), 1.2109(a), 1.2109(c).

[^18]: 47 C.F.R. § 1.2109(a).

[^19]: 47 C.F.R. §§ 1.2104(g)(2), 1.2109.

[^20]: 47 C.F.R. § 1.2109(b)-(c).

[^21]: 47 C.F.R. § 1.2109(d).

[^22]: 47 C.F.R. §§ 1.919, 1.2107(f).

[^23]: 47 C.F.R. § 1.65.

[^24]: *See* 47 C.F.R. §§ 1.2108(d), 1.2109(a).

[^25]: *See* Commission Taking Tough Measures Against Frivolous
    Pleadings, *Public Notice*, 11 FCC Rcd 3030 (1996).

[^26]: 47 C.F.R. §§ 1.2105(a)(2)(viii), 1.2105(c)(1). *See also*
    Amendment of Part 1 of the Commission\'s Rules -- Competitive
    Bidding Procedures, WT Docket No. 97-82, *Seventh Report and Order*,
    16 FCC Rcd 17546 (2001); *Order on Reconsideration of the Third
    Report and Order, Fifth Report and Order, and Fourth Further Notice
    of Proposed Rule Making*, 15 FCC Rcd 15293, 15297-98 ¶¶ 7-8 (2000).

[^27]: "Closed Auction of Licenses for Cellular Unserved Service Areas;
    Two Bidders Qualified to Participate in Auction 77," *Public
    Notice*, DA 08-1329 at ¶¶ 32-33 (rel. June 6, 2008); *see also
    Auction 77 Procedures Public Notice* at ¶¶ 8-26.

[^28]: *Id*.