DA 02-1871

August 5, 2002

1670-1675 MHz BAND AUCTION

SCHEDULED FOR OCTOBER 30, 2002

**Notice and Filing Requirements, Minimum Opening Bids,**

**Upfront Payments and Other Auction Procedures**

Report No. AUC-02-46-C (Auction No. 46)

I. General Information [1](#general-information)

A. Introduction [1](#introduction)

1\. Background of Proceeding [1](#background-of-proceeding)

2\. Licenses to Be Auctioned [2](#licenses-to-be-auctioned)

B. Rules and Disclaimers [2](#rules-and-disclaimers)

1\. Relevant Authority [2](#relevant-authority)

2\. Prohibition of Collusion [3](#prohibition-of-collusion)

3\. Due Diligence [4](#due-diligence)

4\. Bidder Alerts [6](#bidder-alerts)

5\. National Environmental Policy Act ("NEPA") Requirements
[6](#national-environmental-policy-act-nepa-requirements)

C. Auction Specifics [7](#auction-specifics)

1\. Auction Date [7](#auction-date)

2\. Auction Title [7](#auction-title)

3\. Bidding Methodology [7](#bidding-methodology)

4\. Pre-Auction Dates and Deadlines
[7](#pre-auction-dates-and-deadlines)

5\. Requirements For Participation [7](#requirements-for-participation)

6\. General Contact Information [8](#general-contact-information)

II\. SHORT-FORM (FCC FORM 175) APPLICATION REQUIREMENTS
[10](#short-form-fcc-form-175-application-requirements)

A. Ownership Disclosure Requirements (FCC Form 175 Exhibit A)
[10](#ownership-disclosure-requirements-fcc-form-175-exhibit-a)

B. Consortia and Joint Bidding Arrangements (FCC Form 175 Exhibit B)
[10](#consortia-and-joint-bidding-arrangements-fcc-form-175-exhibit-b)

C. Eligibility [11](#eligibility)

1\. Bidding Credit Eligibility (FCC Form 175 Exhibit C)
[11](#bidding-credit-eligibility-fcc-form-175-exhibit-c)

2\. Tribal Land Bidding Credit [11](#tribal-land-bidding-credit)

3\. Applicability of Part 1 Attribution Rules
[11](#applicability-of-part-1-attribution-rules)

4\. Supporting Documentation [13](#supporting-documentation)

D. Provisions Regarding Defaulters and Former Defaulters (FCC Form 175
Exhibit D)
[13](#provisions-regarding-defaulters-and-former-defaulters-fcc-form-175-exhibit-d)

E. Installment Payments [14](#installment-payments)

F. Other Information (FCC Form 175 Exhibits E and F)
[14](#other-information-fcc-form-175-exhibits-e-and-f)

G. Minor Modifications to Short-Form Applications (FCC Form 175)
[14](#minor-modifications-to-short-form-applications-fcc-form-175)

H. Maintaining Current Information in Short-Form Applications (FCC Form
175)
[14](#maintaining-current-information-in-short-form-applications-fcc-form-175)

III\. PRE-AUCTION PROCEDURES [15](#pre-auction-procedures)

A. Auction Seminar [15](#auction-seminar)

B. Short-Form Application (FCC Form 175) --- Due September 25, 2002
[15](#short-form-application-fcc-form-175-due-september-25-2002)

1\. Electronic Filing [15](#electronic-filing)

2\. Completion of the FCC Form 175 [15](#completion-of-the-fcc-form-175)

3\. Electronic Review of FCC Form 175
[16](#electronic-review-of-fcc-form-175)

C. Application Processing and Minor Corrections
[16](#application-processing-and-minor-corrections)

D. Upfront Payments --- Due October 9, 2002
[16](#upfront-payments-due-october-9-2002)

1\. Making Auction Payments by Wire Transfer
[17](#making-auction-payments-by-wire-transfer)

2\. FCC Form 159 [17](#fcc-form-159)

3\. Amount of Upfront Payment [17](#amount-of-upfront-payment)

4\. Applicant's Wire Transfer Information for Purposes of Refunds of
Upfront Payments
[19](#applicants-wire-transfer-information-for-purposes-of-refunds-of-upfront-payments)

E. Auction Registration [19](#auction-registration)

F. Electronic Bidding [20](#electronic-bidding)

G. Mock Auction [20](#mock-auction)

IV\. AUCTION EVENT [20](#auction-event)

A. Auction Structure [20](#auction-structure)

1\. Ascending Multiple Round Auction
[20](#ascending-multiple-round-auction)

2\. Maximum Eligibility and Activity Rules
[21](#maximum-eligibility-and-activity-rules)

3\. Activity Rule Waivers and Reducing Eligibility
[21](#activity-rule-waivers-and-reducing-eligibility)

4\. Auction Stopping Rules [22](#auction-stopping-rules)

5\. Auction Delay, Suspension, or Cancellation
[23](#auction-delay-suspension-or-cancellation)

B. Bidding Procedures [23](#bidding-procedures)

1\. Round Structure [23](#round-structure)

2\. Reserve Price or Minimum Opening Bid
[23](#reserve-price-or-minimum-opening-bid)

3\. Minimum Accepted Bids and Bid Increments
[24](#minimum-accepted-bids-and-bid-increments)

4\. High Bid [25](#high-bid)

5\. Bidding [25](#bidding)

6\. Bid Removal and Bid Withdrawal [26](#bid-removal-and-bid-withdrawal)

7\. Round Results [27](#round-results)

8\. Auction Announcements [27](#auction-announcements)

9\. Maintaining the Accuracy of FCC Form 175 Information
[27](#maintaining-the-accuracy-of-fcc-form-175-information)

V. POST-AUCTION PROCEDURES [27](#post-auction-procedures)

A. Down Payments [27](#down-payments)

B. Auction Discount Voucher [27](#auction-discount-voucher)

C. Long-Form Application [28](#long-form-application)

D. Tribal Land Bidding Credit [28](#tribal-land-bidding-credit-1)

E. Default and Disqualification [29](#default-and-disqualification)

F. Refund of Remaining Upfront Payment Balance
[29](#refund-of-remaining-upfront-payment-balance)

VI\. Attachment A A-[1](#attachment-a)

VII\. Attachment B B-[1](#attachment-b)

VIII\. Attachment C C-[1](#attachment-c)

IX\. Attachment D D-[1](#attachment-d)

X. Attachment E E-[1](#attachment-e)

XI\. Attachment F F-[1](#attachment-f)

XII\. Attachment G G-[1](#attachment-g)

# General Information

## Introduction

By this Public Notice, the Wireless Telecommunications Bureau ("Bureau")
announces the procedures and minimum opening bids for the upcoming
auction of one nationwide license in the 1670-1675 MHz band scheduled
for October 30, 2002 (Auction No. 46).

In accordance with the Balanced Budget Act of 1997,[^1] the Bureau
released a public notice on May 24, 2002 seeking comment on reserve
prices or minimum opening bids and the procedures to be used in Auction
No. 46.[^2] The Bureau received two comments and one reply comment in
response to the *Auction No. 46 Comment Public Notice*.[^3] The Bureau
subsequently released a second public notice on July 15, 2002, revising
the license inventory, auction start date, and seeking comment on
revisions to proposed auction procedures.[^4] The Bureau received one
comment in response to the *Auction No. 46 Revised Comment Public
Notice*.[^5]

### Background of Proceeding 

On May 24, 2002, the Commission released the *Service Rules Report &
Order* which adopted service rules to govern the licensing of 27 MHz of
electromagnetic spectrum reallocated for non-Government use, including
the 1670-1675 MHz band.[^6] In the *Service Rules Report & Order*, the
Commission, among other things, established competitive bidding
procedures for the 1670-1675 MHz band; decided to assign, on a
nationwide basis, one license for a5-megahertz block of contiguous
unpaired spectrum in the 1670-1675 MHz band; and determined that all
operations in the 1670-1675 MHz band will be generally regulated under
the framework of our Part 27 technical, licensing, and operating
rules.[^7] The Commission also explained that a non-government licensee
in the 1670-1675 MHz band must comply with the provisions of Section
1.924(g) of the Commission's rules to minimize harmful interference to
Geostationary Operations Environmental Satellite (GOES) earth stations
receiving in the band 1670-1675 MHz. The GOES earth stations are located
at Wallops Island, Virginia; Fairbanks, Alaska; and Greenbelt, Maryland.

### Licenses to Be Auctioned

One nationwide license consisting of a 5-megahertz block of contiguous
unpaired spectrum in the 1670-1675 MHz band will be available in Auction
No. 46.

## Rules and Disclaimers

### Relevant Authority

Prospective bidders must familiarize themselves thoroughly with the
Commission's rules relating to the 1670-1675 MHz band contained in Title
47, Part 27 of the Code of Federal Regulations, and those relating to
application and auction procedures, contained in Title 47, Part 1 of the
Code of Federal Regulations.[^8] Prospective bidders must also be
thoroughly familiar with the procedures, terms and conditions
(collectively, \"Terms\") contained in this Public Notice; the *Auction
No. 46 Revised Comment Public Notice*; *Auction No. 46 Comment* *Public
Notice;* and the *Part 1 Fifth Report and Order* (as well as prior and
subsequent Commission proceedings regarding competitive bidding
procedures).[^9]

Auction participants bidding on the license in the 1670-1675 MHz
spectrum band should also be familiar with the *Service Rules Report and
Order.*[^10]

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 our public notices at any time,
and will issue public notices to convey any new or supplemental
information to bidders. It is the responsibility of all prospective
bidders to remain current with all Commission rules and with all public
notices pertaining to this auction. Copies of most Commission documents,
including public notices, can be retrieved from the FCC Auctions
Internet site at [http://wireless.fcc.gov/auctions]{.underline}.
Additionally, documents are available for public inspection and copying
during regular business hours at the FCC Reference Information Center,
Portals II, 445 12th Street, SW, Room CY-A257, Washington, DC, 20554 or
may be purchased from the Commission's duplicating contractor, Qualex
International, Portals II, 445 12th Street, SW, Room CY-B402,
Washington, DC 20554, telephone 202-863-2893, facsimile 202-863-2898, or
via e-mail qualexint@aol.com. When ordering documents from Qualex,
please provide the appropriate FCC number (for example, FCC 02-152 for
the *Service Rules Report and Order*).

### Prohibition of Collusion 

To ensure the competitiveness of the auction process, the Commission's
rules prohibit applicants for the same geographic license area from
communicating with each other during the auction about bids, bidding
strategies, or settlements.[^11] This prohibition begins at the
short-form application filing deadline and ends at the down payment
deadline after the auction. Because bidders in Auction No. 46 will be
competing for the same license, they are encouraged not to use the same
individual as an authorized bidder. A violation of the anti‑collusion
rule could occur if an individual acts as the authorized bidder for two
or more competing applicants, and conveys information concerning the
substance of bids or bidding strategies between the bidders he or she is
authorized to represent in the auction. A violation could similarly
occur if the authorized bidders are different individuals employed by
the same organization (*e.g.*, law firm or consulting firm). In such a
case, at a minimum, applicants should certify on their applications that
precautionary steps have been taken to prevent communication between
authorized bidders and that applicants and their bidding agents will
comply with the anti‑collusion rule.[^12]

However, the Bureau cautions that merely filing a certifying statement
as part of an application will not outweigh specific evidence that
collusive behavior has occurred, nor will it preclude the initiation of
an investigation when warranted.[^13] Applicants may enter into bidding
agreements *before* filing their FCC Form 175, as long as they disclose
the existence of the agreement(s) in their Form 175.[^14] If parties
agree in principle on all material terms prior to the short-form filing
deadline, those parties must be identified on the short-form application
pursuant to Section 1.2105(c), even if the agreement has not been
reduced to writing. If the parties have not agreed in principle by the
filing deadline, an applicant would not include the names of those
parties on its application, and may not continue negotiations with other
applicants.[^15] By signing their FCC Form 175 short-form applications,
applicants are certifying their compliance with Section 1.2105(c).

In addition, Section 1.65 of the Commission's rules requires an
applicant to *maintain* the accuracy and completeness of information
furnished in its pending application and to notify the Commission within
30 days of any substantial change that may be of decisional significance
to that application.[^16] Thus, Sections 1.65 and 1.2105 require an
auction applicant to notify the Commission of any violation of the
anti-collusion rules upon learning of such violation.[^17] Bidders
therefore are required to make such notification to the Commission
immediately upon discovery.[^18]

A summary listing of documents from the Commission and the Bureau
addressing the application of the anti-collusion rules may be found in
Attachment G.

### Due Diligence 

Potential bidders are reminded that the 1670-1675 MHz band is being
allocated for mixed use.[^19] The Commission made clear that a
geographic area licensee operating in the reallocated band must protect
Federal Government operations, either indefinitely or for a given period
of time.[^20] These requirements may affect the ability of the
geographic licensee to use certain portions of the electromagnetic
spectrum or provide service to certain regions in their geographic
license area.

**Potential bidders 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 licenses available in Auction No. 46.**

Accordingly, the 1670-1675 MHz licensee must protect indefinitely the
Command and Data Acquisitions stations used to communicate with the GOES
earth stations that are located at Wallops Island, Virginia, Fairbanks,
Alaska, and Greenbelt, Maryland.[^21] The 1670-1675 MHz licensee must
also comply with the Quiet Zone requirements of Section 1.924 of the
Commission's Rules.

Before planning to construct and operate a new or modified station
within 100 kilometers of the Wallops Island, Virginia and Fairbanks,
Alaska stations or within 65 kilometers of the Greenbelt, Maryland
station, the 1670-1675 MHz licensee must notify the National Oceanic and
Atmospheric Administration (NOAA) of the proposed operation. NOAA's GOES
coordination web page, at <http://www.osd.noaa.gov/radio/frequency/htm>,
provides the technical parameters of the earth stations and the
point-of-contact notification information. Additionally, the licensee
must file an application with the Commission requesting authority to
operate the new or modified station. This application should be filed
through the Commission's Universal Licensing System. The application
should state the date that notification to NOAA was made. After the
Commission receives an application, NOAA has 20 days to comment or
object to the proposed new or modified station. If NOAA objects during
the 20-day period, the Commission will take whatever action is deemed
appropriate. In the absence of an objection by NOAA, the Commission will
grant the application if it is otherwise acceptable.

Potential bidders for "near the border" licenses must protect stations
in Canada and Mexico from harmful interference. This will permit
licensees to maximize their operations depending on the spectrum use,
terrain, and other factors at the border areas, while still protecting
operations across the border. However, operations in the 1670-1675 MHz
band may be subject to future agreements with Canada and Mexico and
therefore may be subject to further modification.[^22]

The Commission makes no representations or guarantees regarding the
accuracy or completeness of the information concerning Federal
Government incumbents that appears in this Public Notice or third party
documents. Potential bidders who have questions regarding Federal
Government use of the 1670-1675 MHz band may contact Gerald F. Hurt,
Chief, Spectrum Engineering and Analysis Division, National
Telecommunications and Information Administration, Room 6725, 1401
Constitution Ave., N.W., Washington, D.C., 20230, at (202) 482-4107, via
fax at (202) 482-4595, or at <ghurt@ntia.doc.gov>.

Potential bidders also should be aware that certain applications,
petitions for rulemaking, requests for special temporary authority
("STA"), waiver requests, petitions for reconsideration,[^23] and
applications for review may be pending before the Commission and relate
to particular applicants or incumbent Federal entities. In addition,
certain judicial proceedings that may relate to particular applicants or
the license available in Auction No. 46 may be commenced, or may be
pending, or may be the subject to further review. We note that
resolution of these matters could have an impact on the availability of
spectrum in Auction No. 46. Some of these matters (whether before the
Commission or the courts) may not be resolved by the time of the
auction.

### Bidder Alerts

All applicants must certify on their FCC Form 175 applications under
penalty of perjury that they are legally, technically, financially and
otherwise qualified to hold a license, and not in default on any payment
for Commission licenses (including down payments) or delinquent on any
non-tax debt owed to any Federal agency.[^24] Prospective bidders 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.

The FCC makes no representations or warranties about the use of this
spectrum for particular services. Applicants should be aware that an FCC
auction represents an opportunity to become an FCC licensee in this
service, subject to certain conditions and regulations. An FCC auction
does not constitute an endorsement by the FCC of any particular
services, technologies or products, nor does an FCC license constitute a
guarantee of business success. Applicants and interested parties should
perform their own due diligence before proceeding, as they would with
any new business venture.

As is the case with many business investment opportunities, some
unscrupulous entrepreneurs may attempt to use Auction No. 46 to deceive
and defraud unsuspecting investors. Common warning signals of fraud
include the following:

-   The first contact is a "cold call" from a telemarketer, or is made
    in response to an inquiry prompted by a radio or television
    infomercial.

-   The offering materials used to invest in the venture appear to be
    targeted at IRA funds, for example, by including all documents and
    papers needed for the transfer of funds maintained in IRA accounts.

-   The amount of investment is less than \$25,000.

-   The sales representative makes verbal representations that: (a) the
    Internal Revenue Service ("IRS"), Federal Trade Commission ("FTC"),
    Securities and Exchange Commission ("SEC"), FCC, or other government
    agency has approved the investment; (b) the investment is not
    subject to state or federal securities laws; or (c) the investment
    will yield unrealistically high short-term profits. In addition, the
    offering materials often include copies of actual FCC releases, or
    quotes from FCC personnel, giving the appearance of FCC knowledge or
    approval of the solicitation.

Information about deceptive telemarketing investment schemes is
available from the FTC at (202) 326-2222 and from the SEC at (202)
942-7040. Complaints about specific deceptive telemarketing investment
schemes should be directed to the FTC, the SEC, or the National Fraud
Information Center at (800) 876-7060. Consumers who have concerns about
specific proposals regarding Auction No. 46 may also call the FCC
Consumer Center at (888) CALL-FCC ((888) 225-5322).

### National Environmental Policy Act ("NEPA") Requirements

The licensee must comply with the Commission's rules regarding the
National Environmental Policy Act (NEPA).[^25] The construction of a
wireless antenna facility is a federal action and the licensee must
comply with the Commission's NEPA rules for each such facility.[^26] The
Commission's NEPA rules require, among other things, that the licensee
consult with expert agencies having NEPA responsibilities, including the
U.S. Fish and Wildlife Service, the State Historic Preservation Office,
the Army Corp of Engineers and the Federal Emergency Management Agency
(through the local authority with jurisdiction over floodplains). The
licensee must prepare environmental assessments for facilities that may
have a significant impact in or on wilderness areas, wildlife preserves,
threatened or endangered species or designated critical habitats,
historical or archaeological sites, Indian religious sites, floodplains,
and surface features. The licensee must also prepare environmental
assessments for facilities that include high intensity white lights in
residential neighborhoods or excessive radio frequency emission.

## Auction Specifics

### Auction Date

The auction will begin on Wednesday, October 30, 2002. The initial
schedule for bidding will be announced by public notice at least one
week before the start of the auction. Unless otherwise announced,
bidding will be conducted on each business day until bidding has stopped
on the license.

### Auction Title

Auction No. 46 -- 1670-1675 MHz Band

### Bidding Methodology

The bidding methodology for Auction No. 46 will be multiple round,
ascending auction.[^27] The Commission will conduct this auction over
the Internet. Telephonic bidding will also be available. As a
contingency, the FCC Wide Area Network, which requires access to a 900
number telephone service, will be available as well. Qualified bidders
are permitted to bid telephonically or electronically.

### Pre-Auction Dates and Deadlines

Auction Seminar September 18, 2002

Short-Form Application (FCC FORM 175) September 25, 2002; 6:00 p.m. ET

Upfront Payments (via wire transfer) October 9, 2002; 6:00 p.m. ET

Mock Auction October 25, 2002

Auction Begins October 30, 2002

### Requirements For Participation

Those wishing to participate in the auction must:

-   Submit a short-form application (FCC Form 175) electronically by
    6:00 p.m. ET, September 25, 2002.

-   Submit a sufficient upfront payment and an FCC Remittance Advice
    Form (FCC Form 159) by 6:00 p.m. ET, October 9, 2002.

-   Comply with all provisions outlined in this public notice.

### General Contact Information

+-----------------------------------+----------------------------------+
| GENERAL AUCTION INFORMATION       | FCC Auctions Hotline             |
+-----------------------------------+----------------------------------+
| General Auction Questions         | \(888\) 225-5322, Press Option   |
|                                   | #2                               |
+-----------------------------------+----------------------------------+
| Seminar Registration              | or direct (717) 338-2888         |
+-----------------------------------+----------------------------------+
|                                   | Hours of service: 8 a.m. -- 5:30 |
|                                   | p.m. ET                          |
+-----------------------------------+----------------------------------+
| AUCTION LEGAL INFORMATION         | Auctions and Industry Analysis   |
|                                   | Division                         |
+-----------------------------------+----------------------------------+
| Auction Rules, Policies,          | Legal Branch (202) 418-0660      |
| Regulations                       |                                  |
+-----------------------------------+----------------------------------+
| LICENSING INFORMATION             | Public Safety & Private Wireless |
|                                   | Division                         |
+-----------------------------------+----------------------------------+
| Rules, Policies, Regulations      | \(202\) 418-0680                 |
|                                   |                                  |
| Licensing Issues                  |                                  |
|                                   |                                  |
| Due Diligence                     |                                  |
|                                   |                                  |
| Incumbency Issues                 |                                  |
+-----------------------------------+----------------------------------+
| TECHNICAL SUPPORT                 | FCC Auctions Technical Support   |
|                                   | Hotline                          |
+-----------------------------------+----------------------------------+
| Electronic Filing                 | \(202\) 414-1250 (Voice),        |
+-----------------------------------+----------------------------------+
| Automated Auction System          | \(202\) 414-1255 (TTY)           |
|                                   |                                  |
|                                   | Hours of service: Monday through |
|                                   | Friday 8 a.m. to 6:00 p.m. ET    |
+-----------------------------------+----------------------------------+
| PAYMENT INFORMATION               | FCC Auctions Accounting Branch   |
+-----------------------------------+----------------------------------+
| Wire Transfers                    | \(202\) 418-1995                 |
+-----------------------------------+----------------------------------+
| Refunds                           | \(202\) 418-2843 (Fax)           |
+-----------------------------------+----------------------------------+
| TELEPHONIC BIDDING                | Will be furnished only to        |
|                                   | qualified bidders                |
+-----------------------------------+----------------------------------+
| FCC COPY CONTRACTOR               | Qualex International             |
+-----------------------------------+----------------------------------+
| Additional Copies of              | Portals II, 445 12^th^ Street,   |
|                                   | SW, Room CY-B402                 |
+-----------------------------------+----------------------------------+
| Commission Documents              | Washington, DC 20554             |
|                                   |                                  |
|                                   | \(202\) 863-2893                 |
|                                   |                                  |
|                                   | \(202\) 863-2898 (Fax)           |
|                                   |                                  |
|                                   | qualexint@aol.com (E-mail)       |
+-----------------------------------+----------------------------------+
| PRESS INFORMATION                 | Meribeth McCarrick (202)         |
|                                   | 418-0654                         |
+-----------------------------------+----------------------------------+
| FCC FORMS                         | \(800\) 418-3676 (outside        |
|                                   | Washington, DC)                  |
|                                   |                                  |
|                                   | \(202\) 418-3676 (in the         |
|                                   | Washington Area)                 |
|                                   |                                  |
|                                   | <h                               |
|                                   | ttp://www.fcc.gov/formpage.html> |
+-----------------------------------+----------------------------------+
| FCC INTERNET SITES                | [http://w                        |
|                                   | ww.fcc.gov](http://www.fcc.gov/) |
|                                   |                                  |
|                                   | [ht                              |
|                                   | tp://wireless.fcc.gov/auctions]( |
|                                   | http://www.fcc.gov/wtb/auctions) |
|                                   |                                  |
|                                   | <http://wireless.fcc.gov/uls>    |
+-----------------------------------+----------------------------------+

# SHORT-FORM (FCC FORM 175) APPLICATION REQUIREMENTS

Guidelines for completion of the short-form (FCC Form 175) are set forth
in Attachment D to this public notice. The short-form application seeks
the applicant's name and address, legal classification, status, small or
very small business bidding credit eligibility, identification of the
license sought, the authorized bidders and contact persons. All
applicants must certify on their FCC Form 175 applications under penalty
of perjury that they are legally, technically, financially and otherwise
qualified to hold a license and, as discussed below in Section II.D
(Provisions Regarding Defaulters and Former Defaulters), that they are
not in default on any payment for Commission licenses (including down
payments) or delinquent on any non-tax debt owed to any Federal agency.

## Ownership Disclosure Requirements (FCC Form 175 Exhibit A)

All applicants must comply with the uniform Part 1 ownership disclosure
standards and provide information required by Sections 1.2105 and 1.2112
of the Commission's rules. Specifically, in completing FCC Form 175,
applicants will be required to file an "Exhibit A" providing a full and
complete statement of the ownership of the bidding entity. The ownership
disclosure standards for the short-form are set forth in Section 1.2112
of the Commission's rules.[^28]

## Consortia and Joint Bidding Arrangements (FCC Form 175 Exhibit B)

Applicants will be required to identify on their short-form applications
any parties with whom they have entered into any consortium
arrangements, joint ventures, partnerships or other agreements or
understandings which relate in any way to the license being auctioned,
including any agreements relating to post-auction market structure.[^29]
Applicants will also be required to certify on their short-form
applications that they have not entered into any explicit or implicit
agreements, arrangements or understandings of any kind with any parties,
other than those identified, regarding the amount of their bids, or
bidding strategies.[^30] As discussed above, if an applicant has had
discussions, but has not reached a joint bidding agreement by the
short-form deadline, it would not include the names of parties to the
discussions on its applications and may not continue discussions with
applicants after the deadline.[^31] Where applicants have entered into
consortia or joint bidding arrangements, applicants must submit an
"Exhibit B" to the FCC Form 175.

A party holding a non-controlling, attributable interest in one
applicant will be permitted to acquire an ownership interest in, form a
consortium with, or enter into a joint bidding arrangement with other
applicants provided that (i) the attributable interest holder certifies
that it has not and will not communicate with any party concerning the
bids or bidding strategies of more than one of the applicants in which
it holds an attributable interest, or with which it has formed a
consortium or entered into a joint bidding arrangement; and (ii) the
arrangements do not result in a change in control of any of the
applicants.[^32] While the anti-collusion rules do not prohibit
non-auction related business negotiations among auction applicants,
bidders are reminded that certain discussions or exchanges could touch
upon impermissible subject matters because they may convey pricing
information and bidding strategies.

## Eligibility

### Bidding Credit Eligibility (FCC Form 175 Exhibit C)

Bidding credits will be available to small and very small businesses, or
consortia, thereof, as defined in 47 C.F.R. § 27.906 for the 1670-1675
MHz band. A bidding credit represents the amount by which the bidder's
winning bid is discounted.[^33] The size of the bidding credit depends
on the average of the aggregated annual gross revenues for each of the
preceding three years of the bidder, its affiliates, its controlling
interests, and the affiliates of its controlling interests:

-   A bidder with attributed average annual gross revenues of not more
    than \$15 million for the preceding three years ("very small
    business") receives a 25 percent discount on its winning bid;[^34]

-   A bidder with attributed average annual gross revenues of not more
    than \$40 million for the preceding three years ("small business")
    receives a 15 percent discount on its winning bid;[^35]

Bidding credits are not cumulative; a qualifying applicant receives
either the 15 percent or 25 percent bidding credit on its winning bid,
but not both.

### Tribal Land Bidding Credit

To encourage the growth of wireless services in federally recognized
tribal lands the Commission has implemented a tribal land bidding
credit. *See* Part V.D. of this Public Notice.

### Applicability of Part 1 Attribution Rules

***Controlling interest standard.*** On August 14, 2000, the Commission
released the *Part 1 Fifth Report and Order*, in which the Commission,
*inter alia*, adopted a "controlling interest" standard for attributing
to auction applicants the gross revenues of their investors and
affiliates in determining small business eligibility for future
auctions.[^36] The Commission observed that the rule modifications
adopted in the various Part 1 orders would result in discrepancies
and/or redundancies between certain of the new Part 1 rules and existing
service-specific rules, and the Commission delegated to the Bureau the
authority to make conforming edits to the Code of Federal Regulations
(CFR) consistent with the rules adopted in the Part 1 proceeding.[^37]
Part 1 rules that supersede inconsistent service-specific rules will
control in Auction No. 46.[^38] *Accordingly, the "controlling interest"
standard as set forth in the Part 1 rules will be in effect for Auction
No. 46*.[^39]

***Control.*** The term "control" includes both *de facto* and *de jure*
control of the applicant. Typically, *ownership of at least 50.1 percent
of an entity's voting stock evidences de jure control*. *De facto*
control is determined on a case-by-case basis.[^40] The following are
some common indicia of *de facto* control:

-   the entity constitutes or appoints more than 50 percent of the board
    of directors or management committee;

-   the entity has authority to appoint, promote, demote, and fire
    senior executives that control the day-to-day activities of the
    licensee; or

-   the entity plays an integral role in management decisions.

***Attribution for small and very small business eligibility.*** In
determining which entities qualify as small or very small businesses,
the Commission will consider the gross revenues of the applicant, its
affiliates, its controlling interests, and the affiliates of its
controlling interests. The Commission does not impose specific equity
requirements on controlling interest holders. Once the principals or
entities with a controlling interest are determined, only the revenues
of those principals or entities, the affiliates of those principals or
entities, the applicant and its affiliates, will be counted in
determining small business eligibility.

A consortium of small or very small businesses is a "conglomerate
organization formed as a joint venture between or among mutually
independent business firms," each of which *individually* must satisfy
the definition of small and very small business in Sections 1.2110(f),
27.906. Thus, each consortium member must disclose its gross revenues
along with those of its affiliates, its controlling interests, and the
affiliates of its controlling interests. We note that although the gross
revenues of the consortium members will not be aggregated for purposes
of determining eligibility for small or very small business credits,
this information must be provided to ensure that each individual
consortium member qualifies for any bidding credit awarded to the
consortium.

### Supporting Documentation

Applicants should note that they will be required to file supporting
documentation to their FCC Form 175 short-form applications to establish
that they satisfy the eligibility requirements to qualify as small or
very small businesses (or consortia of small or very small businesses)
for this auction.[^41]

Applicants should further note that submission of an FCC Form 175
application constitutes a representation by the certifying official that
he or she is an authorized representative of the applicant, has read the
form's instructions and certifications, and that the contents of the
application and its attachments are true and correct. Submission of a
false certification to the Commission may result in penalties, including
monetary forfeitures, license forfeitures, ineligibility to participate
in future auctions, and/or criminal prosecution.

***Small or very small business eligibility (Exhibit C).*** Entities
applying to bid as small or very small businesses (or consortia of small
or very small businesses) will be required to disclose on Exhibit C to
their FCC Form 175 short-form applications, *separately and in the
aggregate*, the gross revenues for the preceding three years of each of
the following: (1) the applicant, (2) its affiliates, (3) its
controlling interests, and (4) the affiliates of its controlling
interests. **Certification that the average annual gross revenues for
the preceding three years do not exceed the applicable limit is not
sufficient. A statement of the total gross revenues for the preceding
three years is also insufficient. The applicant must provide separately
for itself, its affiliates, its controlling interests, and the
affiliates of its controlling interests, a schedule of gross revenues
for *each* of the preceding three years, as well as a statement of total
average gross revenues for the three-year period.** If the applicant is
applying as a consortium of small or very small businesses, this
information must be provided for each consortium member.

## Provisions Regarding Defaulters and Former Defaulters (FCC Form 175 Exhibit D)

Each applicant must certify on its FCC Form 175 application that it is
not in default on any Commission licenses and that it is not delinquent
on any non-tax debt owed to any Federal agency.[^42] In addition, each
applicant must attach to its FCC Form 175 application a statement made
under penalty of perjury indicating whether or not the applicant, its
affiliates, its controlling interests, or the affiliates of its
controlling interest have ever been in default on any Commission
licenses or have ever been delinquent on any non-tax debt owed to any
Federal agency. The applicant must provide such information for itself,
for each of its controlling interests and affiliates, and for each
affiliate of its controlling interests, as defined by Section 1.2110 of
the Commission's rules.[^43] **Applicants must include this statement as
Exhibit D of the FCC Form 175.** Prospective bidders are reminded that
the statement must be made under penalty of perjury and, further,
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.

"Former defaulters" --- *i.e.*, applicants, including their attributable
interest holders, that in the past have defaulted on any Commission
licenses or been delinquent on any non-tax debt owed to any Federal
agency, but that have since remedied all such defaults and cured all of
their outstanding non-tax delinquencies --- are eligible to bid in
Auction No. 46, provided that they are otherwise qualified. However, as
discussed *infra* in Section III.D.3, former defaulters are required to
pay upfront payments that are fifty percent more than the normal upfront
payment amounts.[^44]

## Installment Payments

Installment payment plans will not be available in Auction No. 46.

## Other Information (FCC Form 175 Exhibits E and F)

Applicants owned by minorities or women, as defined in 47 C.F.R. §
1.2110(c)(2), may attach an exhibit (Exhibit E) regarding this status.
This applicant status information is collected for statistical purposes
only and assists the Commission in monitoring the participation of
"designated entities" in its auctions. Applicants wishing to submit
additional information may do so on Exhibit F (Miscellaneous
Information) to the FCC Form 175.

## Minor Modifications to Short-Form Applications (FCC Form 175)

After the short-form filing deadline (September 25, 2002), applicants
may make only minor changes to their FCC Form 175 applications.
Applicants will not be permitted to make major modifications to their
applications (*e.g*., change the certifying official, change control of
the applicant, or change bidding credits). *See* 47 C.F.R. § 1.2105.
Permissible minor changes include, for example, deletion and addition of
authorized bidders (to a maximum of three) and revision of exhibits.
Applicants should make these modifications to their FCC Form 175
electronically and submit a letter, briefly summarizing the changes, by
electronic mail to the attention of Margaret Wiener, Chief, Auctions and
Industry Analysis Division, at the following address:
[auction46@fcc.gov]{.underline}. The electronic mail summarizing the
changes must include a subject or caption referring to Auction No. 46.
The Bureau requests that parties format any attachments to electronic
mail as Adobe^®^ Acrobat^®^ (pdf) or Microsoft^®^ Word documents.

A separate copy of the letter should be faxed to the attention of
Kathryn Garland at (717) 338-2850. Questions about other changes should
be directed to Francis Gutierrez of the Auctions and Industry Analysis
Division at (202) 418-0660.

## Maintaining Current Information in Short-Form Applications (FCC Form 175)

Applicants have an obligation under 47 C.F.R. §1.65, to maintain the
completeness and accuracy of information in their short-form
applications.[^45] Amendments reporting substantial changes of possible
decisional significance in information contained in FCC Form 175
applications, as defined by 47 C.F.R. § 1.2105(b)(2), will not be
accepted and may in some instances result in the dismissal of the FCC
Form 175 application.

# PRE-AUCTION PROCEDURES

## Auction Seminar

On Wednesday, September 18, 2002, the FCC will sponsor a free seminar
for Auction No. 46 at the Federal Communications Commission, located at
445 12^th^ Street, SW, Washington, DC. The seminar will provide
attendees with information about pre-auction procedures, conduct of the
auction, the FCC Automated Auction System, and the 1670-1675 MHz band
and auction rules. The seminar will also provide an opportunity for
prospective bidders to ask questions of FCC staff.

To register, complete the registration form found in Attachment B and
submit it by Monday, September 16, 2002. Registrations are accepted on a
first-come, first-served basis.

## Short-Form Application (FCC Form 175) --- Due September 25, 2002

In order to be eligible to bid in this auction, applicants must first
submit an FCC Form 175 application. This application must be submitted
electronically and received at the Commission no later than 6:00 p.m. ET
on September 25, 2002. Late applications will not be accepted.

There is no application fee required when filing an FCC Form 175.
However, to be eligible to bid, an applicant must submit an upfront
payment. *See* Part III.D, *below*.

### Electronic Filing

Applicants must file their FCC Form 175 applications
electronically.[^46] Applications may generally be filed at any time
beginning at noon ET on September 18, 2002, until 6:00 p.m. ET on
September 25, 2002. Applicants are strongly encouraged to file early and
are responsible for allowing adequate time for filing their
applications. Applicants may update or amend their electronic
applications multiple times until the filing deadline on September 25,
2002.

Applicants must press the "SUBMIT Application" button on the
"Submission" page of the electronic form to successfully submit their
FCC Form 175s. Any form that is not submitted will not be reviewed by
the FCC. Information about accessing the FCC Form 175 is included in
Attachment C. Technical support is available at (202) 414-1250 (voice)
or (202) 414-1255 (text telephone (TTY)); the hours of service Monday
through Friday, from 8:00 AM to 6:00 PM ET. In order to provide better
service to the public, *all calls to the hotline are recorded.*

Applicants can also contact Technical Support via e-mail. To obtain the
address, click the **Support** tab on the Form 175 Homepage.

### Completion of the FCC Form 175

Applicants should carefully review 47 C.F.R. § 1.2105, and must complete
all items on the FCC Form 175. Instructions for completing the FCC Form
175 are in Attachment D of this public notice. Applicants are encouraged
to begin preparing the required attachments for FCC Form 175 prior to
submitting the form. Attachments C and D to this public notice provide
information on the required attachments and appropriate formats.

### Electronic Review of FCC Form 175

The FCC Form 175 electronic review system may be used to locate and
print applicants' FCC Form 175 information. Applicants may also view
other applicants' completed FCC Form 175s after the filing deadline has
passed and the FCC has issued a public notice explaining the status of
the applications. NOTE: Applicants should not include sensitive
information (*i.e.*, TIN/EIN) on any exhibits to their FCC Form 175
applications. There is no fee for accessing this system. *See*
Attachment C for details on accessing the review system.

## Application Processing and Minor Corrections

After the deadline for filing the FCC Form 175 applications has passed,
the FCC will process all timely submitted applications to determine
which are acceptable for filing, and subsequently will issue a public
notice identifying: (1) those applications accepted for filing; (2)
those applications rejected; and (3) those applications which have minor
defects that may be corrected, and the deadline for filing such
corrected applications.

As described more fully in the Commission's rules, after the September
25, 2002, short-form filing deadline, applicants may make only minor
corrections to their FCC Form 175 applications. Applicants will not be
permitted to make major modifications to their applications (*e.g.*,
change the certifying official, change control of the applicant, or
change bidding credit eligibility).[^47]

## Upfront Payments --- Due October 9, 2002

In order to be eligible to bid in the auction, applicants must submit an
upfront payment accompanied by an FCC Remittance Advice Form (FCC Form
159). After completing the FCC Form 175, filers will have access to an
electronic version of the FCC Form 159 that can be printed and faxed to
Mellon Bank in Pittsburgh, PA. All upfront payments must be received at
Mellon Bank by 6:00 p.m. ET on October 9, 2002.

Please note that:

-   All payments must be made in U.S. dollars.

-   All payments must be made by wire transfer.

-   Upfront payments for Auction No. 46 go to a lockbox number different
    from the lockboxes used in previous FCC auctions, and different from
    the lockbox number to be used for post-auction payments.

-   Failure to deliver the upfront payment by the October 9, 2002,
    deadline will result in dismissal of the application and
    disqualification from participation in the auction.

### Making Auction Payments by Wire Transfer

Wire transfer payments must be received by 6:00 p.m. ET on October 9,
2002. To avoid untimely payments, applicants should discuss arrangements
(including bank closing schedules) with their banker 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. Applicants
will need the following information:

> ABA Routing Number: 043000261

> Receiving Bank: Mellon Pittsburgh
>
> BENEFICIARY: FCC/Account \# 910-0180
>
> OBI Field: (Skip one space between each information item)

> "AUCTIONPAY"

> FCC REGISTRATION NUMBER (FRN): (same as FCC Form 159, block 11 and/or
> 21)
>
> PAYMENT TYPE CODE (same as FCC Form 159, block 24A: A46U)
>
> FCC CODE 1 (same as FCC Form 159, block 28A: "46")
>
> PAYER NAME (same as FCC Form 159, block 2)
>
> LOCKBOX NO. \# 358420

**NOTE:** The BNF and Lockbox number are specific to the upfront
payments for this auction; do not use BNF or Lockbox numbers from
previous auctions.

Applicants must fax a completed FCC Form 159 (Revised 2/00) to Mellon
Bank at (412) 209-6045 **at least one hour before** placing the order
for the wire transfer (but on the same business day). On the cover sheet
of the fax, write "Wire Transfer --- Auction Payment for Auction Event
No. 46." **Bidders should confirm receipt of their upfront payment at
Mellon Bank by contacting their sending financial institution.**

### FCC Form 159

A completed FCC Remittance Advice Form (FCC Form 159, Revised 2/00) must
be faxed to Mellon Bank in order to accompany each upfront payment.
Proper completion of FCC Form 159 (Revised 2/00) is critical to ensuring
correct credit of upfront payments. Detailed instructions for completion
of FCC Form 159 are included in Attachment E to this public notice. An
electronic version of the FCC Form 159 is available after filing the FCC
Form 175. The FCC Form 159 can be completed electronically, but must be
filed with Mellon Bank via facsimile.

### Amount of Upfront Payment

In the *Part 1 Order* the Commission delegated to the Bureau the
authority and discretion to determine appropriate upfront payment(s) for
each auction.[^48] In addition, in the *Part 1 Fifth Report and Order*,
the Commission ordered that "former defaulters," *i.e.*, applicants that
have ever been in default on any Commission license or have ever been
delinquent on any non-tax debt owed to any Federal agency, be required
to pay upfront payments fifty percent greater than non-"former
defaulters."[^49] For purposes of this calculation, the "applicant"
includes the applicant itself, its affiliates, its controlling
interests, and affiliates of its controlling interests, as defined by
Section 1.2110 of the Commission's rules (as amended in the *Part 1
Fifth Report and Order*).[^50]

In the *Auction No. 46 Comment Public Notice*, we proposed translating
bidders' upfront payments to bidding units to define a bidder's maximum
eligibility.[^51] In order to bid on the license, otherwise qualified
bidders must have an eligibility level that meets the number of bidding
units assigned to that license. At a minimum, therefore, an applicant's
total upfront payment must be enough to establish eligibility to bid on
the license or else the applicant will not be eligible to participate in
the auction.

In the *Auction No. 46 Comment Public Notice*,[^52] the Bureau proposed
an upfront payment of \$12,628,000 for the nationwide 1670-1675 MHz
license using the following formula:[^53]

\$0.01 \* MHz \* License Area Population with a minimum of \$1,000.

ArrayComm and AeroAstro submitted comments regarding the Bureau's
proposed formula for calculating the upfront payment for Auction No.
46.[^54] ArrayComm supports the Bureau's proposed upfront payment
because it is appropriate given the nationwide scope of the license.
[^55] AeroAstro, on the other hand, suggests that the proposed upfront
payment is excessively high and may reduce potential participation and
competition in the auction. [^56] AeroAstro recommends that the
Commission reduce the upfront payment by a factor of ten, resulting in
an upfront payment of \$1,262,800.

We adopt our upfront payment as proposed. Given the nationwide scope of
the 1670-1675 MHz license, we believe that the proposed upfront payment,
as validated by the comments of ArrayComm, is appropriate.

The specific upfront payments and bidding units for the nationwide
1670-1675 MHz license is set forth in Attachment A of this Public
Notice.

> Former defaulters should calculate their upfront payment by
> multiplying the number of bidding units 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.

### Applicant's Wire Transfer Information for Purposes of Refunds of Upfront Payments

The Commission will use wire transfers for all Auction No. 46 refunds.
To ensure that refunds of upfront payments are processed in an
expeditious manner, the Commission is requesting that all pertinent
information as listed below be supplied to the FCC. Applicants can
provide the information electronically during the initial short-form
filing window after the form has been submitted. Wire Transfer
Instructions can also be manually faxed to the FCC, Financial Operations
Center, Auctions Accounting Group, ATTN: Tim Dates or Gail Glasser, at
(202) 418-2843 by October 9, 2002. All refunds will be returned to the
payer of record as identified on the FCC Form 159 unless the payer
submits written authorization instructing otherwise. For additional
information, please call (202) 418-1995.

Name of Bank

> ABA Number
>
> Contact and Phone Number
>
> Account Number to Credit
>
> Name of Account Holder
>
> FCC Registration Number (FRN)
>
> Taxpayer Identification Number (see below)

Correspondent Bank (if applicable)

> ABA Number
>
> Account Number

(Applicants should also note that implementation of the Debt Collection
Improvement Act of 1996 requires the FCC to obtain a Taxpayer
Identification Number (TIN) before it can disburse refunds.) Eligibility
for refunds is discussed in Part V.F., *below*.

## Auction Registration

Approximately ten days before the auction, the FCC will issue a public
notice announcing all qualified bidders for the auction. Qualified
bidders are those applicants whose FCC Form 175 applications have been
accepted for filing and have timely submitted upfront payments
sufficient to make them eligible to bid on the license.

All qualified bidders are automatically registered for the auction.
Registration materials will be distributed prior to the auction by two
separate overnight mailings, one containing the confidential bidder
identification number (BIN) required to place bids and the other
containing the SecurID cards. **These mailings will be sent only to the
contact person at the contact address listed in the FCC Form 175.**

Applicants that do not receive both registration mailings will not be
able to submit bids. Therefore, any qualified applicant that has not
received both mailings by noon on Wednesday, October 23, 2002, should
contact the Auctions Hotline at (717) 338-2888. Receipt of both
registration mailings is critical to participating in the auction and
each applicant is responsible for ensuring it has received all of the
registration material.

Qualified bidders should note that lost bidder identification numbers or
SecurID cards can be replaced only by appearing [in person]{.underline}
at the FCC Auction Headquarters located at 445 12^th^ St., SW,
Washington, DC 20554. Only an authorized representative or certifying
official, as designated on an applicant's FCC Form 175, may appear in
person with two forms of identification (one of which must be a photo
identification) in order to receive replacements. Qualified bidders
requiring replacements must call technical support prior to arriving at
the FCC.

## Electronic Bidding 

The Commission will conduct this auction over the Internet. Telephonic
bidding will also be available. As a contingency, the FCC Wide Area
Network, which requires access to a 900 number telephone service, will
be available as well. Qualified bidders are permitted to bid
telephonically or electronically, *i.e.*, over the Internet or the FCC's
Wide Area Network at \$2.30 per minute. In either case, **each
authorized bidder** must have its own Remote Security Access SecurID
card, which the FCC will provide at no charge. Each applicant with one
authorized bidder will be issued two SecurID cards, while applicants
with two or three authorized bidders will be issued three cards. For
security purposes, the SecurID cards and the FCC Automated Auction
System User Manual are only mailed to the contact person at the contact
address listed on the FCC Form 175. Please note that each SecurID card
is tailored to a specific auction, therefore, SecurID cards issued for
other auctions or obtained from a source other than the FCC will not
work for Auction No. 46. The telephonic bidding phone number will be
supplied in the first overnight mailing, which also includes the
confidential bidder identification number. Each applicant should
indicate its bidding preference---electronic or telephonic---on the FCC
Form 175.

Please note that the SecurID cards can be recycled, and we encourage
bidders to return the cards to the FCC. We will provide pre-addressed
envelopes that bidders may use to return the cards once the auction is
over.

## Mock Auction

All qualified bidders will be eligible to participate in a mock auction
on Friday, October 25, 2002. The mock auction will enable applicants to
become familiar with the FCC Automated Auction System prior to the
auction. Participation by all bidders is strongly recommended. Details
will be announced by public notice.

# AUCTION EVENT

The first round of bidding for Auction No. 46 will begin on Wednesday,
October 30, 2002. The initial bidding schedule will be announced in a
public notice listing the qualified bidders, which is released
approximately 10 days before the start of the auction.

## Auction Structure

### Ascending Multiple Round Auction 

In the *Auction No. 46 Comment Public Notice*, we proposed to award all
licenses in Auction No. 46 in a single, simultaneous multiple round
auction.[^57] We received one comment on this issue. ArrayComm agrees
with our proposal stating that the simultaneous multiple round structure
is most likely to result in efficient bidding, thereby awarding the
license to the party with the greatest ability to bring innovative
services to consumers.[^58] We note that an "ascending multiple round
auction" is the same as a simultaneous multiple round auction, but with
only one license available for bid. We conclude that it is operationally
feasible and appropriate to auction the license in the 1670-1675 MHz
band through a single, ascending multiple round auction. Unless
otherwise announced, bids will be accepted on the license in each round
of the auction.

### Maximum Eligibility and Activity Rules 

In the *Auction No. 46 Comment Public Notice*, we proposed that the
amount of the upfront payment submitted by a bidder would determine the
initial maximum eligibility (as measured in bidding units) for each
bidder.[^59] We received no comments on this issue.

For Auction No. 46, we will adopt our proposal that the amount of
upfront payment submitted by a bidder would determine the eligibility
(in bidding units) for participation in Auction No. 46. Bidders are
reminded that the upfront payment is a refundable deposit made by each
bidder to determine and establish eligibility to bid on the license. The
upfront payment does not affect the total dollars a bidder may bid on
the license.

In order to ensure that the auction closes within a reasonable period of
time, an activity rule requires bidders to bid actively throughout the
auction, rather than wait until the end before participating. Bidders
are required to be active on a specific percentage of their current
eligibility during each round of the auction. In the *Auction No. 46
Revised Comment Public Notice*, because only one license will be
available for auction, we proposed a single stage auction with each
bidder required to be active on one hundred (100) percent of its bidding
eligibility in each round.[^60]

Only one commenter addressed the Bureau's revised proposal. ArrayCom
states that monitoring the bidding activity of only one license makes
the evaluation and bidding process of necessity more straightforward for
participants.[^61] Therefore, in order to ensure that the auction closes
within a reasonable period of time, we adopt our proposal with the
following activity requirements: a bidder must either place a valid bid
and/or be the standing high bidder during each round of the auction
rather than wait until the end before participating. Bidders are
required to be active on 100 percent of their maximum eligibility 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 bidding eligibility, thus eliminating the
bidder from the auction.

### Activity Rule Waivers and Reducing Eligibility

In the *Auction No. 46 Revised Comment Public Notice*, we proposed that
each bidder in the auction would be provided two activity rule waivers.
Bidders may use an activity rule waiver in any round during the course
of the auction.[^62] ArrayComm agreed with our proposal that two waivers
would be appropriate in light of the auction's narrowed scope.[^63]

Based upon our experience in previous auctions, **we adopt our proposal
that each bidder be provided two activity rule waivers that may be used
in any round during the course of the auction**. Use of an activity rule
waiver preserves the bidder's current bidding eligibility despite the
bidder's activity in the current round being below the required minimum
level. We are satisfied that our practice of providing two waivers over
the course of the auction provides a sufficient number of waivers and
maximum flexibility to the bidders, while safeguarding the integrity of
the auction.

The Automated Auction System assumes that bidders with insufficient
activity would prefer to use an activity rule waiver (if available)
rather than lose bidding eligibility. Therefore, the system will
automatically apply a waiver (known as an "automatic waiver") at the end
of any round where a bidder's activity level is below the minimum
required. If there are no activity rule waivers available, the bidder's
eligibility will be reduced, eliminating them from the auction

Finally, a bidder may proactively use an activity rule waiver as a means
to keep the auction open without placing a bid. If a bidder submits a
proactive waiver (using the proactive waiver function in the bidding
system) during a round in which no bids are submitted, the auction will
remain open and the bidder's eligibility will be preserved. However, an
automatic waiver triggered during a round in which there are no new
valid bids will not keep the auction open. **Note: Once a proactive
waiver is placed during a round, that waiver cannot be unsubmitted.**

### Auction Stopping Rules

For Auction No. 46, the Bureau proposed to employ a simultaneous
stopping rule approach.[^64] The Bureau also sought comment on a
modified version of the stopping rule. The modified version of the
stopping rule would close the auction after the first round in which no
bidder submits a proactive waiver or a new bid on the license when it is
not the standing high bidder. Thus, absent any other bidding activity, a
bidder placing a new bid on the license for which it is the standing
high bidder would not keep the auction open under this modified stopping
rule.

The Bureau further proposed retaining the discretion to keep the auction
open even if no new acceptable bids or proactive waivers are submitted.
In this event, the effect will be the same as if a bidder had submitted
a proactive waiver. Thus, the activity rule will apply as usual, and a
bidder with insufficient activity will either use an activity rule
waiver (if it has any left) or lose bidding eligibility, thus
eliminating the bidder from the auction.

In addition, we proposed that the Bureau reserve the right to declare
that the auction will end after a designated number of additional rounds
("special stopping rule"). We proposed to exercise this option only in
circumstances such as where the auction is proceeding very slowly, where
there is minimal overall bidding activity or where it appears likely
that the auction will not close within a reasonable period of time.[^65]
Before exercising this option, the Bureau is likely to attempt to
increase the pace of the auction by, for example, increasing the number
of bidding rounds per day and/or adjusting the amount of the minimum bid
increments for the license.

We received no comments concerning the auction stopping rules therefore,
we adopt the above proposals. Auction No. 46 will begin under the
simultaneous stopping rule, and the Bureau will retain the discretion to
invoke the other versions of the stopping rule. We believe that these
stopping rules are most appropriate for Auction No. 46, because our
experience in prior auctions demonstrates that the auction stopping
rules balance the interests of administrative efficiency and maximum
bidder participation.

### Auction Delay, Suspension, or Cancellation

In the *Auction No. 46 Comment Public Notice*, we proposed that, by
public notice or by announcement during the auction, the Bureau may
delay, suspend, or cancel the auction in the event of natural disaster,
technical obstacle, evidence of an auction security breach, unlawful
bidding activity, administrative or weather necessity, or for any other
reason that affects the fair conduct of competitive bidding.[^66]

Because this approach has proven effective in resolving exigent
circumstances in previous auctions, we adopt our proposed auction
cancellation rules. By public notice or by announcement during the
auction, the Bureau may delay, suspend, or cancel the auction in the
event of natural disaster, technical obstacle, evidence of an auction
security breach, unlawful bidding activity, administrative or weather
necessity, or for any other reason that affects the fair and competitive
conduct of competitive bidding. In such cases, the Bureau, in its sole
discretion, may elect to resume the auction starting from the beginning
of the current round, resume the auction starting from some previous
round, or cancel the auction in its entirety. Network interruption may
cause the Bureau to delay or suspend the auction. We emphasize that
exercise of this authority is solely within the discretion of the
Bureau, and its use is not intended to be a substitute for situations in
which bidders may wish to apply their activity rule waivers.

## Bidding Procedures

### Round Structure

The initial bidding schedule will be announced in the public notice
listing the qualified bidders, which is released approximately 10 days
before the start of the auction. The round structure for each bidding
round contains a single bidding round followed by the release of the
round results. Multiple bidding rounds may be conducted in a given day.
Details regarding round results formats and locations will also be
included in the above public notice referenced above.

The FCC has 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 Bureau may
increase or decrease the amount of time for the bidding rounds and
review periods, or the number of rounds per day, depending upon the
bidding activity level and other factors.

### Reserve Price or Minimum Opening Bid

*Background*. The Communications Act, as amended, calls upon the
Commission to prescribe methods by which a reasonable reserve price will
be required or a minimum opening bid established when FCC licenses are
subject to auction (*i.e.*, because they are mutually exclusive), unless
the Commission determines that a reserve price or minimum opening bid is
not in the public interest.[^67] Consistent with this mandate, the
Commission directed the Bureau to seek comment on the use of a minimum
opening bid and/or reserve price prior to the start of each
auction.[^68] Among other factors, the Bureau should consider the amount
of spectrum being auctioned, levels of incumbency, the availability of
technology to provide service, the size of the geographic service areas,
the extent of interference with other spectrum bands, and any other
relevant factors that could have an impact on the spectrum being
auctioned.[^69] The Commission concluded that the Bureau should have the
discretion to employ either or both of these mechanisms for future
auctions.[^70]

In the *Auction No. 46 Comment Public Notice*, the Bureau proposed to
establish minimum opening bids for Auction No. 46.[^71] Specifically,
for Auction No. 46, the Bureau proposed a minimum opening bid of
\$12,628,000 for the nationwide license using the following
formula:[^72]

\$0.01 \* MHz \* License Area Population with a minimum of \$1,000.

In the alternative, the Bureau sought comment on whether, consistent
with the Balanced Budget Act, the public interest would be served by
having no minimum opening bid or reserve price.[^73]

ArrayComm and AeroAstro submitted comments regarding the Bureau's
proposed formula for calculating minimum opening bids for Auction No.
46. ArrayComm supports the Bureau's proposed minimum opening bid,
stating that it will ensure a successful outcome overall for the
auction.[^74] AeroAstro, on the other hand, suggests that the
multi-million dollar minimum opening bid for the license in the
1670-1675 MHz Band is an artificially high barrier to entry and may
defeat the purpose of the auction by eliminating bidders.[^75] AeroAstro
proposes the following formula for calculating minimum opening bids for
the nationwide license: \$ 0.002 \* MHz \* License Area Population.

We adopt our minimum opening bid as proposed. We believe that the
minimum opening bid, as adopted, is appropriate.

The specific minimum opening bid for the license is set forth in
Attachment A of this Public Notice.

### Minimum Accepted Bids and Bid Increments 

In the *Auction No. 46 Comment Public Notice*, we proposed to use a
smoothing methodology to calculate minimum acceptable bids.[^76] We
further proposed to retain the discretion to change the minimum
acceptable bids and bid increments if circumstances so dictate.[^77]

ArrayComm suggests that because the license inventory for Auction No. 46
is reduced, to one license, a smaller bid increment is more appropriate.
It notes that while higher bid increments can maintain the pace of
large-scale auctions, they are not necessary under a single-license
auction event such as Auction No. 46. ArrayComm further asserts that a
reduced minimum bid increment may, in fact, increase auction efficiency
in this scenario.[^78]

We adopt our proposal for a smoothing formula. The smoothing methodology
is designed to vary the increment for a given license between a maximum
and minimum value based on the bidding activity on that license. This
methodology allows the increments to be tailored to the activity level
of a license, decreasing the time it takes for active licenses to reach
their final value. The formula used to calculate this increment is
included as Attachment F.

Upon consideration of ArrayComm's comments, we will set the weighting
factor at 0.5, the minimum percentage increment at 0.05 (5 percent), and
the maximum at 0.2 (20 percent).[^79] Because only a single license is
available in Auction No. 46, , we believe that it is appropriate to set
the minimum bid increment at 5 percent. The Bureau reiterates that it
retains the discretion to change the minimum acceptable bids and bid
increments if it determines that circumstance so dictate. The Bureau
will do so by announcement in the Automated Auction System. Under its
discretion, the Bureau may also implement an absolute dollar floor for
the bid increment to further facilitate a timely close of the auction.
The Bureau may also use its discretion to adjust the minimum bid
increment without prior notice if circumstances warrant. The Bureau also
retains the discretion to use alternate methodologies, such as a flat
percentage increment, for Auction No. 46 if circumstances warrant.

### High Bid

At the end of each bidding round, the Automated Auction System
determines the standing high bid for the license based on the gross
dollar amounts of the bids received.

In the case of tied high bids, a random number generator will be used to
determine the standing high bid. A random number will be assigned to
each bid. The tie bid having the highest random number will become the
standing high bid.

### Bidding

During a bidding round, a bidder may submit a bid (subject to its
eligibility) as well as remove a bid placed in the same bidding round.
If a bidder submits multiple bids for the license in the same round, the
system takes the last bid entered as that bidder's bid for the round.
Bidders should note that the bidding units associated with the license
for which the bidder has removed its bid do not count towards the
bidder's activity at the close of the round.

Please note that all bidding will take place remotely either through the
Automated Auction System or by telephonic bidding. (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. Normally, five to ten minutes are necessary to complete a bid
submission.) There will be no on-site bidding during Auction No. 46.

The Automated Auction System requires each bidder to be logged in during
the bidding round using the bidder identification number provided in the
registration materials, and the generated SecurID code. Bidders are
strongly encouraged to print bid confirmations [after]{.underline} they
submit their bid.

In each round, eligible bidders will be able to place a bid on the
license in any of nine different amounts.[^80] The Automated Auction
System interface will list the nine acceptable bid amounts in a
drop-down box. Bidders may use the drop-down box to select from among
the nine acceptable bid amounts.

Once there is a standing high bid on the license, the Automated Auction
System will calculate a minimum acceptable bid for the following round.
The difference between the minimum acceptable bid and the standing high
bid will define the *bid increment*. The nine acceptable bid amounts
consist of the minimum acceptable bid (the standing high bid plus one
bid increment) and additional amounts calculated using multiple bid
increments (*i.e.*, the second bid amount equals the standing high bid
plus two times the bid increment, the third bid amount equals the
standing high bid plus three times the bid increment, etc.).

Until a bid has been placed on the license, the minimum acceptable bid
for that license will be equal to its minimum opening bid. The
additional bid amounts are calculated using the difference between the
minimum opening bid times one plus the minimum percentage increment,
rounded,[^81] and the minimum opening bid. Therefore, when the minimum
percentage increment equals 0.05, the first additional bid amount will
be approximately five percent higher than the minimum opening bid; the
second, ten percent; the third, fifteen percent; etc.

See Attachment F for more detail on the calculation of the various bid
amounts.

### Bid Removal and Bid Withdrawal

In the *Auction No. 46 Comment Public Notice*, the Bureau proposed bid
removal and bid withdrawal rules.[^82] The Bureau however revised its
proposal concerning withdrawals in the *Auction No. 46 Revised Comment
Public Notice*.[^83] It proposed that bidders would not be permitted to
withdraw bids in any round since Auction No. 46 had been limited to a
single license. No commenters disagreed with our proposal. Therefore we
will adopt our proposal and will not permit bidders to withdrawal bids
in any rounds during the auction.

**Procedures.** Before the close of a bidding round, a bidder has the
option of removing any bid placed in that round. By using the "remove
bid" function in the bidding system, a bidder may effectively "unsubmit"
a bid placed within that round. Removing a bid will affect a bidder's
activity for the round in which it is removed, *i.e.*, a bid that is
subsequently removed does not count toward the bidder's activity
requirement. Once a round closes, a bidder may no longer remove a bid.

### Round Results

Bids placed during a round will not be published until the conclusion of
that bidding period. After a round closes, the Bureau will compile
reports of all bids placed, current high bid, new minimum accepted bid,
and bidder eligibility status (bidding eligibility and activity rule
waivers), and post the reports for public access. Reports reflecting
bidders' identities and bidder identification numbers for Auction No. 46
will be available before and during the auction. Thus, bidders will know
in advance of this auction the identities of the bidders against which
they are bidding.

### Auction Announcements

The FCC will use auction announcements to announce items such as
schedule changes. All FCC auction announcements will be available by
clicking a link on the Automated Auction System.

### Maintaining the Accuracy of FCC Form 175 Information

As noted in Part II.G., after the short-form filing deadline, applicants
may make only minor changes to their FCC Form 175 applications. For
example, permissible minor changes include deletion and addition of
authorized bidders (to a maximum of three) and certain revision of
exhibits. Applicants should make these modifications to their FCC Form
175 electronically and submit a letter, briefly summarizing the changes,
by electronic mail to the attention of Margaret Wiener, Chief, Auctions
and Industry Analysis Division at the following address:
[auction46@fcc.gov](mailto:auction82@fcc.gov). The electronic mail
summarizing the changes must include a subject or caption referring to
Auction No. 46. The Bureau requests that parties format any attachments
to electronic mail as Adobe^®^ Acrobat^®^ (pdf) or Microsoft^®^ Word
documents.

**A separate copy of the letter should be faxed to the attention of
Kathryn Garland at (717) 338-2850.** Questions about other changes
should be directed to Francis Gutierrez of the Auctions and Industry
Analysis Division at (202) 418-0660.

# POST-AUCTION PROCEDURES

## Down Payments 

After bidding has ended, the Commission will issue a public notice
declaring the auction closed, identifying the winning bid and bidder.

Within ten business days after release of the auction closing notice,
the winning bidder must submit sufficient funds (in addition to its
upfront payment) to bring its total amount of money on deposit with the
Government to 20 percent of its net winning bid (actual bid less any
applicable small or very small business bidding credit). *See* 47 C.F.R.
§ 1.2107(b).

## Auction Discount Voucher

On June 8, 2000, the Commission awarded Qualcomm, Inc. a transferable
Auction Discount Voucher ("ADV") in the amount of \$125,273,878.00.[^84]
This ADV may be used by Qualcomm or its transferee, in whole or in part,
to adjust a winning bid in any spectrum auction prior to June 8, 2003,
subject to terms and conditions set forth in the Commission's Order.
Qualcomm transferred \$10,848,000.00 of the ADV to a winning bidder in
FCC Auction No. 35 and the transferee used its portion of the ADV to pay
a portion of one of its winning bids in Auction No. 35.[^85] The
remaining portion of Qualcomm's ADV could be used to adjust winning bids
in another FCC auction, including Auction No. 46.

## Long-Form Application

Within ten business days after release of the auction closing notice,
the winning bidder must electronically submit a properly completed
long-form application (FCC Form 601) and required exhibits for the
license won through Auction No. 46. A winning bidder that is a small or
very small business must include an exhibit demonstrating their
eligibility for the bidding credit. *See* 47 C.F.R. §§ 1.2112(b).
Further filing instructions will be provided to the auction winner at
the close of the auction.

## Tribal Land Bidding Credit 

A winning bidder that intends to use its license(s) to deploy facilities
and provide services to federally-recognized tribal lands that are
unserved by any telecommunications carrier or that have a telephone
service penetration rate equal to or below 70 percent is eligible to
receive a tribal land bidding credit as set forth in 47 C.F.R. §§ 1.2107
and 1.2110(f). A tribal land bidding credit is in addition to, and
separate from, any other bidding credit for which a winning bidder may
qualify.

Unlike other bidding credits that are requested prior to the auction, a
winning bidder applies for the tribal land bidding credit *after*
winning the auction when it files its long-form application (FCC Form
601). When filing the long-form application, the winning bidder will be
required to advise the Commission whether it intends to seek a tribal
land bidding credit, for each market won in the auction, by checking the
designated box(es). After stating its intent to seek a tribal land
bidding credit, the applicant will have 90 days from the close of the
long-form filing window to amend its application to select the specific
tribal lands to be served and provide the required tribal government
certifications. Licensees receiving a tribal land bidding credit are
subject to performance criteria as set forth in 47 C.F.R. § 1.2110(f).

For additional information on the tribal land bidding credit, including
how the amount of the credit is calculated, applicants should review the
Commission's rule making proceeding regarding tribal land bidding
credits and related public notices.[^86] Relevant documents can be
viewed on the Commission's web site by going to
[http://wireless.fcc.gov/auctions](http://www.fcc.gov/wtb/auctions) and
clicking on *Tribal Land Credits*.

## Default and Disqualification

Any high bidder that 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 submit a timely long-form
application, fails to make full payment, or is otherwise disqualified)
will be subject to the payments described in 47 C.F.R. § 1.2104(g)(2).
In such event the Commission may re-auction the license or offer it to
the next highest bidder (in descending order) at their final bid. 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 licenses
held by the applicant. *See* 47 C.F.R. § 1.2109(d).

## Refund of Remaining Upfront Payment Balance

All applicants that submitted upfront payments but were not winning
bidders for the license in Auction No. 46 may be entitled to a refund of
their remaining upfront payment balance after the conclusion of the
auction. All refunds will be returned to the payer of record, as
identified on the FCC Form 159, unless the payer submits written
authorization instructing otherwise.

Bidders that drop out of the auction completely may be eligible for a
refund of their upfront payments before the close of the auction.
Qualified bidders that have exhausted all of their activity rule
waivers, and have no remaining bidding eligibility, must submit a
written refund request. If you have completed the refund instructions
electronically, then only a written request for the refund is necessary.
If not, the request must also include wire transfer instructions,
Taxpayer Identification Number (TIN) and FCC Registration Number (FRN).
Send refund request to:

Federal Communications Commission

Financial Operations Center

Auctions Accounting Group

Gail Glasser or Tim Dates

445 12th Street, SW, Room 1-C863

Washington, DC 20554

Bidders are encouraged to file their refund information electronically
using the refund information portion of the FCC Form 175, but bidders
can also fax their information to the Auctions Accounting Group at (202)
418-2843. Once the information has been approved, a refund will be sent
to the party identified in the refund information.

> NOTE: Refund processing generally takes up to two weeks to complete.
> Bidders with questions about refunds should contact Tim Dates or Gail
> Glasser at (202) 418-1995.

**Media Contact:** Meribeth McCarrick at (202) 418-0654

**Auctions and Industry Analysis Division:** Francis Gutierrez, Legal
Branch, or Lyle Ishida, Auctions Operations Branch, at (202) 418-0660;
Lisa Stover, Auctions Operations Branch, at (717) 338-2888

**Public Safety & Private Wireless Division:** Keith Fickner or Brian
Marenco**,** Policy and Rules Branch, at (202) 418-0680

# Attachment A

PLACE HOLDER

# attachment B

FCC AUCTION SEMINAR REGISTRATION FORM

Auction No. 46

The FCC will sponsor a one-day seminar for Auction No. 46 applicants.
The seminar is free of charge and will provide information about
pre-auction procedures, service and auction rules, conduct of the
auction, and the Automated Auction System.

Representatives from each company may attend on a reservation basis,
first-come first-served until room capacity is filled. The seminar will
be held:

Wednesday, September 18, 2002

Federal Communications Commission

445 12th Street SW

Washington, DC 20554

Registration 9:30 a.m. -- 10:00 a.m.

Seminar 10:00 a.m. - 2 p.m.

If hotel accommodations are needed

Please contact 1-888-225-5322 (option #2) for a list of hotels in the
area

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

To register, complete the form below and

return no later than

Monday, September 16, 2002, by fax to:

FCC Auction 46

Auctions Operations Branch

[1270 Fairfield Road]{.underline}

[Gettysburg, PA 17325-7245]{.underline}

FAX: 717-338-2850

Phone: 717-338-2888

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

I/We will attend the Auction No. 46 Seminar, scheduled for Wednesday,
September 18, 2002.

Name of attendee:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name of attendee:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Company name:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Company address:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Phone:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_Fax:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

# Attachment C

ELECTRONIC FILING AND REVIEW

OF THE FCC FORM 175

Applicants must submit their FCC Form 175 applications electronically.
The FCC recommends submitting your Form 175 via the Internet. As a
contingency, you can submit via the FCC Wide-Area Network. FCC Form 175
applications must be submitted and confirmed by **6:00 p.m. ET on
Wednesday, September 25, 2002.** Late applications or unconfirmed
submissions of electronic data will not be accepted.

Applicants must click the **SUBMIT Application** button on the
*Submission* page to successfully submit their FCC Form 175. The
electronic filing process consists of an initial filing period and a
resubmission period to make minor corrections. During each filing
period, submitted applications may be updated and amended multiple times
until the filing deadline.

## Software Requirements

Applicants will need to meet the following minimum software
requirements:

-   Web Browser, either of the following:

```{=html}
<!-- -->
```
-   Microsoft® Internet Explorer 4.0 or higher (recommended). Your
    browser must have either Microsoft VM or Java Plug-In Version 1.3.1
    installed.

```{=html}
<!-- -->
```
-   Netscape® Communicator™ 4.0 or higher, with Java Plug-In Version
    1.3.1.

> Java Plug-In Version 1.3.1 is available for downloading at
> [***http://java.sun.com/getjava/download.html***](http://java.sun.com/products/plugin/).

-   PDF Viewer: Adobe Acrobat Reader 5.0 or higher (available at
    ***http://www.adobe.com***)

-   If you wish to use the download feature on the Search Results page,
    you will need a .tar file extraction utility, e.g., Winzip
    (available at ***http://www.winzip.com***) or Pkzip for Windows
    (available at ***http://www.pkware.com/shareware***).

## Submitting FCC Form 175 Applications

You can submit FCC Form 175 applications electronically via the
Internet. Start your web browser and point it to either
***https://auctions.fcc.gov/*** (primary location) or
***https://auctions2.fcc.gov/*** (secondary location). On the FCC
Auctions page, click **Form 175 Application & Search** to obtain the
Form 175 Homepage.

> **Note:** As a contingency, you may submit FCC Form 175 applications
> via the FCC Wide Area Network, using Dial-Up Networking. To access the
> Wide Area Network, configure your dial-up network to dial
> ***800-378-7435***. (Alternatively, you can configure your dial-up
> network to dial ***877-844-2788***.)

### Logging On

The Form 175 Homepage has a Form 175 Logon area at the top right. This
area provides fields that let you identify yourself to the system before
submitting a Form 175 application.

**Important:** On December 3, 2001, the FCC Registration Number (FRN)
became mandatory for all parties conducting business with the FCC. An
FRN is mandatory for all filers logging onto the 175 Application System.

Once you have logged on with your FRN, you can click the **New Form**
link to obtain the *Profile* page for the auction.

### Uploading Attachments

When uploading attachments from the Form 175 *Attachments* page, you may
use a variety of file formats\--including Word 2000 or earlier,
WordPerfect 6.*x* or earlier, Adobe PDF, and ASCII text\--and you should
verify that the files contain all exhibit information. Also note the
following about files to be uploaded:

-   Files may be no larger than 1.5 Mb.

-   Graphics files (e.g., .*bmp, .tiff, .jpg*) and spreadsheets (e.g.,
    Excel, Lotus) are not supported.

-   Word processing files that are uploaded may not contain graphic
    images.

-   You may include hyphens (-) and underscore (\_) symbols in the name
    of a file to be uploaded, but do not use other punctuation marks or
    blank spaces. The FCC system will not be able to convert that file.

-   The path to a file (i.e., the file name and its directory) must not
    exceed 60 characters.

-   Do not upload a password-protected file. The FCC system will not be
    able to open it or convert it.

-   Do not include your TIN in any attachment to be uploaded. Contents
    of attachments become public once the Status PN is released.

The system converts each uploaded attachment to PDF format. (The
conversion process

generally completes within 30 minutes.) Until the system has converted
your file to PDF format, the description field shows *Not converted*.

Repeat this procedure for each additional attachment you want to add.
When you have finished adding attachments, click the **Continue to
CERTIFICATION** button to obtain the *Certification* page.

#### Unreadable Attachment Files

If you are unable to read an attachment file after it has been
converted, please do the following:

1\. Re-upload the attachment.

2\. If the file still has not been converted properly, then simplify the
formatting of the file.

For example, if you are using a Table structure in a WordPerfect
document, remove the Table structure and leave the contents of the
table, then re-upload the attachment.

After you have successfully re-uploaded an attachment, please delete the
old, unreadable attachment files using their **Delete** links.

### Completing the Submission Procedure

Applicants must press the **SUBMIT Application** button on the
*Submission* page to successfully submit their FCC Form 175. Pressing
**SUBMIT Application** produces a *Submission Confirmation* page showing
the assigned FCC Account Number. During each filing period, submitted
applications may be updated and amended multiple times until the filing
deadline.

## Reviewing FCC Form 175 Applications

Once the FCC has completed the 175 Review process, you can view FCC Form
175 applications electronically by searching for them in the FCC
database. Start your web browser and point it to either
***https://auctions.fcc.gov/*** (primary location) or
***https://auctions2.fcc.gov/*** (secondary location). Click the **Form
175 Application & Search** link, then click the **SEARCH** link at the
top of the page. When the *Form 175 Search* page appears, select the
search criteria you want and then click the **Submit** button.

## Help

For technical assistance with using FCC software, contact the FCC
Technical Support Hotline at (202) 414‑1250 (V) or (202) 414-1255 (TTY).
The FCC Technical Support Hotline is generally available Monday through
Friday from 8 a.m. to 6 p.m. ET. *All calls to the FCC Technical Support
Hotline are recorded.*

You can also contact Technical Support via e-mail. To obtain the
address, click the **Support** tab on the Form 175 Homepage.

# Attachment D

GUIDELINES FOR COMPLETION OF FCC FORM 175 AND EXHIBITS

## FCC Form 175

Because of the significance of the FCC Form 175 application to the
auction, bidders should especially note the following:

**Applicant:** Name given is used as your bidder name in the auction.

**Address:** Applicants must provide a street address **(not a Post
Office box number)** for the applicant, suitable for mail or private
parcel delivery.

**Legal Classification:** Applicants must indicate their legal
classification. The FCC Form 175 requires the applicant to classify
itself as an individual, joint venture, partnership, trust, corporation,
consortium, association, limited liability corporation (LLC) or
government entity.

**Applicant Status:** Applicants are requested to indicate their status
as a rural telephone company, minority- and/or women-owned business, so
that the FCC can monitor its performance in promoting economic
opportunities for these "designated entities."

**Contact person/address:** If the Commission wishes to communicate with
the applicant by telephone or fax, those communications will be directed
to the contact person identified on the FCC Form 175. Space is provided
for an address, telephone number, fax number, and e-mail address. All
written communication and registration information will be directed to
the applicant's contact person at the address specified on the FCC Form
175. Applicants must provide a street address for the contact person;
**[no P.O. Box addresses may be used]{.underline}.**

**Authorized Bidders:** Applicants must list the name(s) of the
person(s) (no more than three) authorized to represent them at the
auction. Only those individuals listed on the FCC Form 175 will be
authorized to place or withdraw bids for the applicant during the
auction.

**Bidding Credit Eligibility:** Applicants that qualify for a small or
very small business bidding credit must select the applicable bidding
credit (15 percent or 25 percent) in the bidding credit eligibility item
on the Form 175. Applicants are advised that this is the sole
opportunity applicants have to elect small business status and bidding
credit level (if applicable). There is no opportunity to change the
election once the short-form filing deadline passes on September 25,
2002.

**Telephonic or Electronic Bidding Options:** Bidders may participate in
the auction either electronically or telephonically, and must specify
their preference. To participate in the auction, every authorized bidder
must have a SecurID card, which the FCC will provide free of charge.

**License Selection:** Applicants should select the 1670-1675 nationwide
license and confirm by pressing the "save" button.

## Exhibits and Attachments 

In addition to the FCC Form 175, applicants must submit additional
information required by the FCC's rules. If attachments are not
uploaded, the FCC Form 175 submission process cannot be completed.
Although the FCC does not require a particular format for this
information, it has developed the following guidelines to facilitate the
processing of short-form applications. The FCC encourages applicants to
submit this information using the following format.

If you find that an attachment has not converted properly to Adobe PDF
format, take the following steps:

*1) Simplify the formatting of the file. For example, if using a Table
structure in a WordPerfect document, remove the Table structure leaving
the contents of the table, re‑save the document.*

*2) Re‑upload the attachment.*

*3) When the re-uploaded attachment has successfully converted, delete
the failed attachment.*

**NOTE: Applicants should not include sensitive information (i.e.,
TIN/EIN) on any exhibits to their FCC Form 175s.**

**Exhibit A \-- Applicant Identity and Ownership Information**: 47
C.F.R. § 1.2105(a)(2)(ii) requires each applicant to fully disclose the
real party or parties-in-interest in an exhibit to its FCC Form 175
application. Each member of an applicant applying to bid as a small or
very small business consortium must provide this information. The
following information is required:

### General Information

  -----------------------------------------------------------------------
  ***Applicant Status*** ***Required Information***
  ---------------------- ------------------------------------------------
  General Partnership    Name, citizenship, and address of all partners,
                         and the share or interest participation of each
                         partner

  Limited Partnership    Name, citizenship, and address of each limited
                         partner whose interest in the applicant is equal
                         to or greater than 10 percent (as calculated
                         according to the percentage of equity paid in
                         and the percentage of distribution of profits
                         and losses)

  Corporation            Corporate name and address; name, title, and
                         citizenship of a responsible officer or director

  Limited Liability      Corporate name and address; name, address, and
  Corporation            citizenship of all members whose interest in the
                         applicant is equal to or greater than 10 percent
                         (as calculated according to the percentage of
                         equity paid in and the percentage of
                         distribution of profits and losses)

  Trust                  Name, citizenship, and address of trustee

  None of the above      Name, citizenship, title or other relation to
                         the applicant, and address of a principal or
                         other responsible person
  -----------------------------------------------------------------------

### Ownership Information

+----------------------+-----------------------------------------------+
| ***Applicant         | ***Required Information***                    |
| Status***            |                                               |
+======================+===============================================+
| All applicants       | Name, citizenship, and address of all         |
|                      | controlling interests of the applicant as     |
|                      | discussed in Part II.C.3 of this public       |
|                      | notice.                                       |
+----------------------+-----------------------------------------------+
| All applicants       | Name, citizenship, and address of all parties |
|                      | holding 10 percent or more of each class of   |
|                      | stock, warrants, options or debt securities   |
|                      | and the amount and percentage held.           |
+----------------------+-----------------------------------------------+
| All applicants       | Name of all parties holding a 10 percent or   |
|                      | greater interest in the applicant and the     |
|                      | specific amount held.                         |
+----------------------+-----------------------------------------------+
| All applicants       | List of all parties holding indirect          |
|                      | ownership interests in the applicant that     |
|                      | equals 10 percent or more, as determined by   |
|                      | successive multiplication of the ownership    |
|                      | percentages in each link of the vertical      |
|                      | ownership chain, except that if the ownership |
|                      | percentage for any link in the chain exceeds  |
|                      | 50 percent or represents actual control, it   |
|                      | shall be reported as if it were a 100 percent |
|                      | interest.                                     |
+----------------------+-----------------------------------------------+
|                      | *Example.* Company A owns 10% of Company B,   |
|                      | which owns 60% of Company C, which owns 25%   |
|                      | of the applicant. Company B's interest in the |
|                      | applicant would be 25% (the same as Company   |
|                      | C's interest since Company B's interest in    |
|                      | Company C exceeds 50%), and Company A's       |
|                      | interest in the applicant would be 2.5% (0.1  |
|                      | \* 0.25). Under the 10% attribution           |
|                      | benchmark, Company B's interest in the        |
|                      | applicant must be reported on the applicant's |
|                      | FCC Form 175 Exhibit A, while Company A's     |
|                      | interest in the applicant need not be         |
|                      | reported. However, if Company A owned 40% of  |
|                      | Company B in the above example, then Company  |
|                      | A's interest in the applicant would be 10%    |
|                      | (0.4 \* 0.25), and the applicant would need   |
|                      | to report it on the applicant's FCC Form 175  |
|                      | Exhibit A                                     |
+----------------------+-----------------------------------------------+
| All applicants       | List of any FCC-regulated entity or applicant |
|                      | for an FCC license, in which                  |
+----------------------+-----------------------------------------------+
|                      | > a\. the applicant;                          |
+----------------------+-----------------------------------------------+
|                      | > b\. any party with a 10 percent or greater  |
|                      | > interest in the applicant; or               |
+----------------------+-----------------------------------------------+
|                      | > c\. a controlling interest (as discussed in |
|                      | > Part II.C.3 of this public notice)          |
|                      |                                               |
|                      | owns a 10 percent or greater interest of the  |
|                      | applicant or 10 percent or more of any class  |
|                      | of stock, warrants, options or debt           |
|                      | securities of the applicant. (*See* 47 C.F.R. |
|                      | § 1.2110) This list must include a            |
|                      | description of each such entities' principal  |
|                      | business and a description of each such       |
|                      | entities' relationship to the applicant.      |
+----------------------+-----------------------------------------------+
|                      | *Example of a.* The applicant owns 10 percent |
|                      | of Company A (an FCC regulated entity or an   |
|                      | applicant for an FCC license). The applicant  |
|                      | must list Company A on its FCC Form 175       |
|                      | Exhibit A and provide the required            |
|                      | information.                                  |
+----------------------+-----------------------------------------------+
|                      | *Example of b.* Company A owns 10 percent of  |
|                      | the applicant and 10 percent of Company B (an |
|                      | FCC regulated entity or an applicant for an   |
|                      | FCC license). The applicant must list both    |
|                      | Company A and Company B on its FCC Form 175   |
|                      | Exhibit A and provide the required            |
|                      | information.                                  |
+----------------------+-----------------------------------------------+
|                      | *Example of c.* Company A owns 55% of the     |
|                      | applicant and owns 10 percent of Company B    |
|                      | (an FCC regulated entity or an Applicant for  |
|                      | an FCC license). The applicant must list both |
|                      | Company A and Company B on its FCC Form 175   |
|                      | Exhibit A and provide the required            |
|                      | information.                                  |
+----------------------+-----------------------------------------------+

**Exhibit B -- Agreements with Other Parties/Joint Bidding
Arrangements:** Applicants must attach an exhibit identifying all
parties with which they have entered into any agreements, arrangements
or understandings which relate in any way to the license being
auctioned, including any relating to the post-auction market structure.
*See* 47 C.F.R. §1.2105(a)(2)(viii).

Be aware that pursuant to Certification (4) on the FCC Form 175, the
applicant certifies that it will not enter into any explicit or implicit
agreements or understandings of any kind with parties not identified in
the application regarding bid amounts, bidding strategies, or the
particular licenses on which the applicant will or will not bid. *See*
47 C.F.R. § 1.2105(a)(2)(ix). *To prevent collusion, the Commission's
Rules generally prohibit applicants from communicating concerning bids,
bidding strategies, or settlements during the period between the initial
short-form applications filing deadline and the deadline for down
payment on a license won in the auction.* 47 C.F.R. § 1.2105(c).

**Exhibit C -- Status as a Small or Very Small Business**: Applicants
claiming status as a small or very small business must attach an exhibit
providing the following information regarding this status.

+----------------------+--------------------+-------------------------+
| ***Entity***         | ***Required        |                         |
|                      | Information***     |                         |
+======================+====================+=========================+
| Applicant            | Average annual     |                         |
|                      | gross revenues for |                         |
|                      | the preceding      |                         |
|                      | three years set    |                         |
|                      | forth *both        |                         |
|                      | separately*        |                         |
|                      | (*e.g.*, for each  |                         |
|                      | of the preceding   |                         |
|                      | three years        |                         |
|                      | individually) *and |                         |
|                      | in the aggregate*  |                         |
|                      | (for all of the    |                         |
|                      | preceding three    |                         |
|                      | years combined).   |                         |
|                      | Certification that |                         |
|                      | the average of the |                         |
|                      | aggregated annual  |                         |
|                      | gross revenues for |                         |
|                      | the preceding      |                         |
|                      | three years do not |                         |
|                      | exceed the         |                         |
|                      | required limit, or |                         |
|                      | providing average  |                         |
|                      | gross revenues for |                         |
|                      | the 3-year period  |                         |
|                      | without providing  |                         |
|                      | the gross revenues |                         |
|                      | for each of the    |                         |
|                      | preceding three    |                         |
|                      | years, is          |                         |
|                      | insufficient.      |                         |
+----------------------+--------------------+-------------------------+
| Applicant's          | Same information   |                         |
| Affiliates           | required as        |                         |
|                      | discussed above    |                         |
| *See* 47 CFR §§      |                    |                         |
| 1.2110, 1.2112       |                    |                         |
+----------------------+--------------------+-------------------------+
| Applicant's          | Same information   |                         |
| Controlling          | required as        |                         |
| Interests *See* 47   | discussed above    |                         |
| CFR §§ 1.2110,       |                    |                         |
| 1.2112.              |                    |                         |
+----------------------+--------------------+-------------------------+
|                      | *Example.* The     |                         |
|                      | applicant had      |                         |
|                      | gross revenues of  |                         |
|                      | \$500,000 in 1999, |                         |
|                      | \$1,000,000 in     |                         |
|                      | 2000, and          |                         |
|                      | \$3,000,000 in     |                         |
|                      | 2001, with average |                         |
|                      | gross revenues for |                         |
|                      | that time period   |                         |
|                      | of \$1,500,000.    |                         |
|                      | The applicant owns |                         |
|                      | 60% of Company A,  |                         |
|                      | making Company A   |                         |
|                      | an affiliate of    |                         |
|                      | the applicant      |                         |
|                      | under Section      |                         |
|                      | 1                  |                         |
|                      | .2110(c)(5)(i)(B). |                         |
|                      | Company B owns 52% |                         |
|                      | of the applicant,  |                         |
|                      | making Company B a |                         |
|                      | controlling        |                         |
|                      | interest of the    |                         |
|                      | applicant, as      |                         |
|                      | defined in Part    |                         |
|                      | II.C.3 of this     |                         |
|                      | public notice.     |                         |
|                      | Company B owns     |                         |
|                      | 100% of Company C, |                         |
|                      | making Company C   |                         |
|                      | an affiliate of    |                         |
|                      | the applicant's    |                         |
|                      | controlling        |                         |
|                      | interest, under    |                         |
|                      | Section            |                         |
|                      | 1                  |                         |
|                      | .2110(c)(5)(i)(C). |                         |
|                      | The applicant's    |                         |
|                      | Exhibit C would    |                         |
|                      | look like this:    |                         |
+----------------------+--------------------+-------------------------+
|                      | Applicant Name     |                         |
+----------------------+--------------------+-------------------------+
|                      | 1999 gross         | \$ 500,000              |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2000 gross         | \$ 1,000,000            |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2001 gross         | \$ 3,000,000            |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | Average gross      | \$ 1,500,000            |
|                      | revenues for the   |                         |
|                      | preceding 3 years  |                         |
+----------------------+--------------------+-------------------------+
|                      | Company A (an      |                         |
|                      | affiliate of the   |                         |
|                      | applicant)         |                         |
+----------------------+--------------------+-------------------------+
|                      | 1999 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2000 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2001 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | Average gross      | \$ enter amount         |
|                      | revenues for the   |                         |
|                      | preceding 3 years  |                         |
+----------------------+--------------------+-------------------------+
|                      | Company B (a       |                         |
|                      | controlling        |                         |
|                      | interest in the    |                         |
|                      | applicant)         |                         |
+----------------------+--------------------+-------------------------+
|                      | 1999 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2000 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2001 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | Average gross      | \$ enter amount         |
|                      | revenues for the   |                         |
|                      | preceding 3 years  |                         |
+----------------------+--------------------+-------------------------+
|                      | Company C (an      |                         |
|                      | affiliate of the   |                         |
|                      | applicant's        |                         |
|                      | controlling        |                         |
|                      | interest)          |                         |
+----------------------+--------------------+-------------------------+
|                      | 1999 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2000 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2001 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | Average gross      | \$ enter amount         |
|                      | revenues for the   |                         |
|                      | preceding 3 years  |                         |
+----------------------+--------------------+-------------------------+

**NOTE:** Each member of an applicant that is applying to bid as a
consortium of small or very small

businesses must provide this information and qualify for the claimed
status.

**Exhibit D -- Information Required of All Applicants Regarding Prior
Defaults and Prior Delinquencies:** Each applicant must include at
Exhibit D a statement made under penalty of perjury indicating whether
the applicant, its affiliates, its controlling interests, or the
affiliates of its controlling interest have ever been in default on any
Commission licenses or have ever been delinquent on any non-tax debt
owed to any Federal agency. The applicant must provide such information
for itself, for each of its controlling interests and affiliates, and
for each affiliate of its controlling interests as defined by Section
1.2110 of the Commission's rules.

**Exhibit E \-- Information Requested of Designated Entities:**
Applicants owned by minorities or women, or that are rural telephone
companies, as defined in 47 C.F.R. § 1.2110(c), may attach an exhibit
regarding this status. This information, in conjunction with the
information requested on the FCC Form 175, will assist the Commission in
monitoring the participation of these "designated entities" in its
auctions.

**Exhibit F \-- Miscellaneous Information**: Applicants wishing to
submit additional information should include it in Exhibit F.

**Waivers:** Applicants requesting waiver of any rules must submit a
statement of reasons sufficient to justify the waiver sought. *See* 47
C.F.R. §§ 1.3, 1.925.

**Certifications:** Applicants should read carefully the list of
certifications on the FCC Form 175. These certifications help to ensure
a fair and competitive auction and require, among other things,
disclosure to the Commission of certain information on applicant
ownership and agreements or arrangements concerning the auction.
Submission of an FCC Form 175 application constitutes a representation
by the certifying official that he or she is an authorized
representative of the applicant, has read the form's instructions and
certifications, and that the contents of the application and its
attachments are true and correct. Submission of a false certification to
the Commission may result in penalties, including monetary forfeitures,
license forfeitures, ineligibility to participate in future auctions,
and/or criminal prosecution.

**Completeness:** Applicants must submit all information required by the
FCC Form 175 and by applicable rules. Failure to submit required
information by the resubmission date will result in dismissal of the
application and inability to participate in the auction. *See* 47 C.F.R.
§ 1.2105(b).

**NOTE: Applicants must press the "SUBMIT Application" button on the
"Submission" page to successfully submit their FCC Form 175.**

**Continuing Accuracy:** Each applicant is responsible for the
continuing accuracy and completeness of information furnished in the FCC
Form 175 and its exhibits. 47 C.F.R. § 1.65. It is the FCC's position
that during the conduct of an auction, thirty business days from a
reportable change is a reasonable period of time. Applicants are
reminded that they consent to be audited in the certification section of
the FCC Form 175 (see certification item number 6).

Applicants are reminded that all information required in connection with
applications to participate in spectrum auctions is necessary to
determine the applicants' qualifications, and as such will be available
for public inspection. Required proprietary information may be redacted,
or confidentiality may be requested, following the procedures set forth
in 47 C.F.R. § 0.459. Such requests must be submitted by electronic mail
to the attention of Margaret Wiener, Chief, Auctions and Industry
Analysis Division, at the following address:
[auction46@fcc.gov](mailto:auction44@fcc.gov), in which case the
applicant must indicate in Exhibit F that it has filed a confidentiality
request. Because the required information bears on applicants'
qualifications, the FCC envisions that confidentiality requests will not
be routinely granted.

The electronic mail summarizing the changes must include a subject or
caption referring to Auction No. 46. The Bureau requests that parties
format any attachments to electronic mail as Adobe^®^ Acrobat^®^ (pdf)
or Microsoft^®^ Word documents.

**A separate copy of the letter should be faxed to the attention of
Kathryn Garland at (717) 338-2850.**

# Attachment E

AUCTION-SPECIFIC INSTRUCTIONS FOR

FCC REMITTANCE ADVICE (FCC FORM 159-February 2000 edition)

## Upfront Payments

The following information supplements the standard instructions for FCC
Form 159 (Revised 2/00), and is provided to help ensure correct
completion of FCC Form 159 for upfront payments for Auction No. 46.
Applicants need to complete FCC Form 159 carefully, since:

-   **Mistakes may affect their bidding eligibility; and**

```{=html}
<!-- -->
```
-   **Lack of consistency between information set forth in FCC Form 159
    (Revised 2/00), FCC Form 175, long-form application, and
    correspondence about an application may cause processing delays.**

Therefore appropriate cross-references between the FCC Form 159
Remittance Advice and the FCC

Form 175 Short Form Application are described below:

Block

Number Required Information

> 1 LOCKBOX \# - Enter "358420"
>
> 2 Payer Name - Enter the name of the person or company making the
> payment.
>
> If the applicant itself is the payer, this entry would be the same as
> FCC Form 175.
>
> 3 Total Amount Paid - Enter the amount of the upfront payment
> associated with the FCC Form 159 (Revised 2/00).

8.  Street Address, City, State, ZIP Code - Enter the street mailing
    address (**not Post**

> **Office box number**) where mail should be sent to the payer. If the
> applicant is the
>
> payer, these entries would be the same as FCC Form 175 from the
> Applicant
>
> Information section.
>
> 9 Daytime Telephone Number - Enter the telephone number of a person
> knowledgeable about this upfront payment.
>
> 10 Country Code - For addresses outside the United States, enter the
> appropriate postal country code (available from the Mailing
> Requirements Department of the U.S. Postal Service).

11. Payer FRN -- Enter the payer's ten-digit FCC Registration Number
    (FRN)

> registered in the Commission Registration System (CORES).

12. Payer TIN -- Enter the payer's nine-digit Taxpayer Identification
    Number (TIN).

> 24A Payment Type Code - Enter "A46U"
>
> 25A Quantity - Enter the number "1"
>
> 26A Fee Due - Amount of Upfront Payment
>
> 27A Total Fee - Will be the same amount as 26A.
>
> 28A FCC Code 1 - Enter the number "46" (indicating Auction No. 46).

NOTES:

-   Do not use Remittance Advice (Continuation Sheet), FCC Form 159-C,
    for upfront payments.

-   If applicant is different from the payer, complete blocks 13 through
    22 for the applicant, using the same information shown on FCC
    Form 175. Otherwise leave them blank.

-   Since credit card payments will not be accepted for this auction,
    leave Section E blank.

## Winning Bidder Requirements, Down Payments and Final Payments

Specific information regarding down payments and final payments will be
included in a post-auction public notice announcing the winning bidders.

# ATTACHMENT F

Minimum Acceptable Bids, Bid Increments, and the Smoothing Formula

The Automated Auction System calculates the minimum acceptable bids and
bid increments for each license with a standing high bid in each round
of the auction based on all bidding activity for the license. For this
auction, the Commission will use a standard smoothing methodology to
calculate minimum acceptable bids and bid increments.

The smoothing formula calculates minimum acceptable bids by first
calculating a *percentage increment*, not to be confused with the *bid
increment*, for each license based on a weighted average of the activity
received on each license in all previous rounds. This methodology
tailors the percentage increment for each license based on activity,
rather than setting a global increment for all licenses.

In a given round, the calculation of the percentage increment for each
license is made at the end of the previous round. The computation is
based on an activity index, which is calculated as the weighted average
of the activity in that round and the activity index from the prior
round. The activity index at the start of the auction (round 0) will be
set at 0. The current activity index is equal to a weighting factor
times the number of new bids received on the license in the most recent
bidding round plus one minus the weighting factor times the activity
index from the prior round. The activity index is then used to calculate
a percentage increment by multiplying a minimum percentage increment by
one plus the activity index with that result being subject to a maximum
percentage increment. The Commission will initially set the weighting
factor at 0.5, the minimum percentage increment at 0.1 (10%), and the
maximum percentage increment at 0.2 (20%).

Equations

A~i~ = (C \* B~i~) + ( (1-C) \* A~i-1~)

I~i+1~ = smaller of ( (1 + A~i~) \* N) and M

X ~i+1~ = I~i+1~ \* Y~i~

where,

A~i~ = activity index for the current round (round i)

C = activity weight factor

B~i~ = number of bids in the current round (round i)

A~i-1~ = activity index from previous round (round i-1), A~0~ is 0

I~i+1~ = percentage increment for the next round (round i+1)

N = minimum percentage increment or percentage increment floor

M = maximum percentage increment or percentage increment ceiling

X ~i+1~ = dollar amount associated with the percentage increment

Y~i~ = high bid from the current round

Under the smoothing methodology, once a bid has been received on a
license, the minimum acceptable bid for that license in the following
round will be the high bid from the current round plus the dollar amount
associated with the percentage increment, with the result rounded to the
nearest thousand if it is over ten thousand, to the nearest hundred if
it is under ten thousand but over one thousand, or to the nearest ten if
it is below one thousand.

Examples

License 1

C=0.5, N = 0.1, M = 0.2

[Round 1 (2 new bids, high bid = \$1,000,000)]{.underline}

1\. Calculation of percentage increment for round 2 using the smoothing
formula:

A~1~ = (0.5 \* 2) + (0.5 \* 0) = 1

I~2~ = The smaller of ( (1 + 1) \* 0.1) = 0.2 or 0.2 (the maximum
percentage increment)

2\. Calculation of dollar amount associated with the percentage
increment for round 2 (using I~2~ from above):

X~2~ = 0.2 \* \$1,000,000 = \$200,000

3\. Minimum acceptable bid for round 2 = \$1,200,000

[Round 2 (3 new bids, high bid = \$2,000,000)]{.underline}

1\. Calculation of percentage increment for round 3 using the smoothing
formula:

A~2~ = (0.5 \* 3) + (0.5 \* 1) = 2

I~3~ = The smaller of ( (1 + 2) \* 0.1) = 0.3 or 0.2 (the maximum
percentage increment)

2\. Calculation of dollar amount associated with the percentage
increment for round 3 (using I~3~ from above):

X~3~ = 0.2 \* \$2,000,000 = \$400,000

3\. Minimum acceptable bid for round 3 = \$2,400,000

[Round 3 (1 new bid, high bid = \$2,400,000)]{.underline}

1\. Calculation of percentage increment for round 4 using the smoothing
formula:

A~3~ = (0.5 \* 1) + (0.5 \* 2) = 1.5

I~4~ = The smaller of ( (1 + 1.5) \* 0.1) = 0.25 or 0.2 (the maximum
percentage increment)

2\. Calculation of dollar amount associated with the percentage
increment for round 4 (using I~4~ from above):

X~4~ = 0.2 \* \$2,400,000 = \$480,000

3\. Minimum acceptable bid for round 4 = \$2,880,000

As stated above, until a bid has been placed on a license, the minimum
acceptable bid for that license will be equal to its minimum opening
bid. The additional bid amounts are calculated using the difference
between the minimum opening bid times one plus the minimum percentage
increment, rounded as described above, and the minimum opening bid. That
is, I = (minimum opening bid)(1 + N){rounded}- (minimum opening bid).
Therefore, when N equals 0.1, the first additional bid amount will be
approximately ten percent higher than the minimum opening bid; the
second, twenty percent; the third, thirty percent; etc.

# ATTACHMENT G

SUMMARY LISTING OF DOCUMENTS FROM THE COMMISSION

AND THE WIRELESS TELECOMMUNICATIONS BUREAU

ADDRESSING APPLICATION OF THE ANTI‑COLLUSION RULES

## Commission Decisions:

*Second Report and Order* in PP Docket No. 93‑253, FCC 94‑61, 9 FCC Rcd.
2348, 2386‑2388 (1994), paragraphs 221‑226.

*Fifth Report and Order in* PP Docket No. 93‑253, FCC 94‑178, 9 FCC Rcd.
5532, 5570‑5571 (1994), paragraphs 91‑92.

*Fourth Memorandum Opinion and Order* in PP Docket No. 93‑253, FCC
94‑264, 9 FCC Rcd. 6858, 6866‑6869 (1994), paragraphs 47‑60.

*Second Memorandum Opinion and Order* in PP Docket No. 93‑253, FCC
94‑215, 9 FCC Rcd. 7245, 7253‑7255 (1994), paragraphs 48‑55.

*Memorandum Opinion and Order* in PP Docket No. 93‑253, FCC 94‑295, 9
FCC Rcd. 7684, 7687‑7689 (1994), paragraphs 8‑12.

In re Commercial Realty St. Pete, *Notice of Apparent Liability for
Forfeiture,* 10 FCC Rcd. 4277 (1995), In re Commercial Realty St. Pete,
*Memorandum Opinion and Order,* 11 FCC Rcd. 15,374 (1996).

In re Applications of Mercury PCS II, LLC, *Notice of Apparent Liability
for Forfeiture,* 12 FCC Rcd. 17,970 (1997) (petition for partial
reconsideration pending).

Amendment of Part 1of the Commission's rules ‑‑ Competitive Bidding
Procedures, Allocation of Spectrum Below 5 GHz Transferred from Federal
Government Use, 4660‑4685 MHz, WT Docket No. 97‑82, ET Docket No. 94‑32,
FCC 97‑413, *Third Report and Order and Second Further Notice of
Proposed Rule Making,* 13 FCC Rcd. 374, 463‑469 (1997), paragraphs
155-­166.

In re Application of US West Communications, Inc., *Notice of Apparent
Liability for Forfeiture,*13 FCC Rcd 8286 (1998); In the Matter of
Notice of Apparent Liability for Forfeiture of US West Communications,
Inc., *Order*, FCC 99-90 (May 7, 1999).

In re Application of Western PCS BTA I Corporation, *Notice of Apparent
Liability for Forfeiture, FCC* 98‑42 (March 16, 1998); In the Matter of
Notice of Apparent Liability for Forfeiture of Western PCS BTA 1
Corporation, *Memorandum Opinion and Orde*r, 14 FCC Rcd 21571, 21577-78,
¶ 20 (rel. Dec. 13, 1999).

In the Matter of Amendment of Part 1 of the Commission's
Rules---Competitive Bidding Procedures, *Seventh Report and Order*, 16
FCC Rcd 17546 (2001).

## Wireless Telecommunications Bureau Decisions:

Amendment of Parts 21 and 74 of the Commission's rules with Regard to
Filing Procedures in the Multipoint Distribution Service and in the
Instructional Television Fixed Service, *Order,* 11 FCC Rcd. 9655
(Wireless Tel. Bur. 1995).

In re Applications of GWI PCS, Inc. For Authority to Construct and
Operate Broadband PCS Systems Operating on Frequency Block C,
*Memorandum Opinion and Order,* 12 FCC Rcd. 6441 (Wireless Tel. Bur.
1997).

In re Applications of Mercury PCS II, LLC, For Facilities in the
Broadband Personal Communications Services in the D, E, and F Blocks,
*Memorandum Opinion and Order on Reconsideration,* 12 FCC Rcd. 18,093
(Wireless Tel. Bur. 1997).

In the Matter of Applications of High Plains Wireless, L.P., For
Authority to Construct and Operate Broadband PCS Systems on Frequency
Blocks D, E, and F, *Memorandum Opinion and Order,* 12 FCC Rcd. 19,627
(Wireless Tel. Bur. 1997).

In the Matter of Applications of Mercury PCS II, LLC, For Authority to
Construct and Operate Broadband PCS Systems on Frequency Blocks D, E,
and F, *Memorandum Opinion and Order,* 13 FCC Rcd. 5756 (Wireless Tel.
Bur. 1997).

### Public Notices:

Wireless Telecommunications Bureau Clarifies Spectrum Auction
Anti‑Collusion Rules, *Public Notice,* 11 FCC Rcd. 9645 (1995).

FCC Staff Clarifies Application of Anti‑Collusion Rule to Broadband PCS
'C' Block Reauction, *Public Notice,* 11 FCC Rcd. 7031 (1996).

Wireless Telecommunications Bureau Provides Guidance on the
Anti‑Collusion Rule for D, E and F Block Bidders, *Public* *Notice,* 11
FCC Rcd. 10,134 (1996).

Wireless Telecommunications Bureau Responds to Questions About the Local
Multipoint Distribution Service Auction, *Public Notice*, DA 98-37 (rel.
January 9, 1998).

### Letters from the Office of General Counsel and the Wireless Telecommunications Bureau:

*Letter to Gary M. Epstein and James H. Barker from William E. Kennard,
General Counsel, Federal Communications Commission* (released October
25, 1994).

*Letter to Alan F. Ciamporcero from William E Kennard, General Counsel,
Federal Communications Commission* (released October 25, 1996).

*Letter to R. Michael Senkowski from Rosalind K. Allen, Acting Chief,
Commercial Radio Division, Wireless Telecommunications Bureau* (released
December 1, 1994).

*Letter to Leonard J. Kennedy from Rosalind K. Allen, Acting Chief,
Commercial Radio Division, Wireless Telecommunications Bureau* (released
December 14, 1994).

*Letter to Jonathan D. Blake and Robert J. Rini from Kathleen O'Brien
Ham, Chief, Auctions Division, Wireless Telecommunications Bureau,* DA
95‑2404 (released November 28, 1995).

*Letter to Mark Grady from Kathleen O'Brien Ham, Chief, Auctions
Division, Wireless Telecommunications Bureau,* 11 FCC Rcd. 10,895
(1996).

*Letter to David L. Nace from Kathleen O'Brien Ham, Chief, Auctions
Division, Wireless Telecommunications Bureau,* 11 FCC Rcd. 11,363
(1996).

*Letter to Elliott J. Greenwald from Christopher J. Wright, General
Counsel, Federal Communications Commission* (released April 6, 1998).

*Letter to Robert Pettit, Wiley, Rein & Fielding from Margaret W.
Wiener, Chief, Auctions and Industry Analysis Division, Wireless
Telecommunications Bureau*, DA 00-2905 (released December 26, 2000).

### Civil Actions Initiated by U.S. Department of Justice:

*U.S. v. Omnipoint Corp.,* Proposed Final Judgements and Competitive
Impact Statements, Department of Justice, 63 FR 65,228 (November 25,
1998).

"Justice Department Sues Three Firms Over FCC Auction Practices," *Press
Release, U.S.* Department of Justice (November 10, 1998).

Complaint, *U.S.* *v. Omnipoint Corp.,* No. 1:98CV02750 (D.D.C. November
10, 1998).

Complaint, *U.S. v.* *Mercury PCS II, L.L C.,* No. 1:98CV02751 (D.D.C.
November 10, 1998).

Complaint, *U.S. v. 21st Century Bidding Corp., No.* 1:98CV02752 (D.D.C.
November 10, 1998).

**How to Obtain Copies of the Anti-Collusion Decisions:**

Many of the documents listed in this attachment can be retrieved from
the following Commission web site:
[http://wireless.fcc.gov/auctions/anticollusion]{.underline}

The documents may be located by using our search engine (select the link
"search"). Documents retrieved from the web site are available in
various formats including Word, WordPerfect, Acrobat Reader, Excel, and
ASCII Text. To review a document in its entirety, including footnotes,
it is necessary to access the document in WordPerfect, MS Word, or
Acrobat Reader.

Additionally, all of the documents can be ordered in hard copy for a fee
from the Commission's contractor, Qualex International at (202)
863-2893.

[^1]: Balanced Budget Act of 1997, Pub. L. No. 105-33, 111 Stat. 251, §
    3002(a) (1997) (codified at 47 U.S.C. § 309(j)(4)(F)) ("Balanced
    Budget Act"). The Commission's authority to establish a reserve
    price or minimum opening bid is set forth in 47 C.F.R. § 1.2104(c)
    and (d).

[^2]: 1392-1395 and 1432-1435 MHz, 1390-1392 MHz, 1670-1675 MHz, and
    2385-2390 MHz Bands Auction Scheduled for September 18, 2002;
    Comment Sought on Reserve Prices or Minimum Opening Bids and Other
    Auction Procedural Issues, *Public Notice*, DA 02-1257 (rel. May 24,
    2002) ("A*uction No. 46 Comment Public Notice"*).

[^3]: ArrayComm, Inc. ("ArrayComm") Comments, filed on June 6, 2002;
    AeroAstro, Inc. ("AeroAstro") Comments, filed on June 5, 2002.
    AeroAstro Reply Comments, filed on June 13, 2002.

[^4]: Auction No. 46 Revised License Inventory and Auction Start Date;
    Comment Sought on Revisions to Auction Procedures, *Public Notice*,
    DA 02-1628 (rel. July 15, 2002) ("*Auction No. 46 Revised Comment
    Public Notice*").

[^5]: ArrayComm Comments, filed on July 22, 2002 ("Supplemental
    ArrayComm Comments").

[^6]: Amendments to Parts 1, 2, 27 and 90 of the Commission's Rules to
    License Services in the 216-220 MHz, 1390-1395 MHz, 1427-1429 MHz,
    1429-1432 MHz, 1432-1435 MHz, 1670-1675 MHz, and 2385-2390 MHz
    Government Transfer Bands, WT Docket 02-8, *Report and Order*, 17
    FCC Rcd 9980, 9982, ¶ 1 (2002) (petitions for reconsideration
    pending) ("*Service Rules Report and Order*"). The *Service Rules
    Report and Order* also adopted rules to license telemetry on a
    primary basis in the 1429.5-1432 MHz band and on a secondary basis
    in the 217-220 MHz and 1427-1429.5 MHz bands using a frequency
    coordinated site-by-site approach consistent with the technical
    specifications provided for telemetry operations under our Part 90
    rules. *Id.* at 9999-10002, ¶¶ 42-51. The *Service Rules Report and
    Order* did not adopt rules governing the regulatory framework or
    service rules for the 218-219 MHz service, Automated Maritime
    Telecommunications System (AMTS) Service, or Low Power Radio
    Services (LPRS) in the 216-220 MHz band. *Id*. at 9986-87, ¶ 5. In
    addition, the *Service Rules Report and Order* adopted rules to
    govern the licensing of electromagnetic spectrum in paired 1392-1395
    and 1432-1435 MHz bands and in the unpaired 1390-1392 MHz and
    2385-2390 MHz bands. *Id*. at 9981-82, ¶ 1. Dates for the auction of
    licenses in these bands will be announce by a separate public
    notice.

[^7]: *Id.* at ¶ 11.

[^8]: 47 C.F.R. Part 1, Subpart Q; 47 C.F.R. Part 27, Subpart J.

[^9]: Amendment of Part 1 of the Commission's Rules -- Competitive
    Bidding Procedures, WT Docket 97-82, *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 (2000)
    modified by Erratum, DA 00-2475 (rel. November 3, 2000)) ("*Part 1
    Fifth Report and Order*")*.* The Commission has further amended
    Section 1.2105 of the Competitive Bidding Rules. Amendment of Part 1
    of the Commission's Rules -- Competitive Bidding Procedures, WT
    Docket 97-82, *Seventh Report and Order*, 16 FCC Rcd 17546, 17555, ¶
    17 (2001) ("*Part 1* *Seventh Report and Order*"). On February 8,
    2002, the Commission further amended Section 1.2110 of the
    Competitive Bidding Rules. Amendment of Part 1 of the Commission's
    Rules -- Competitive Bidding Procedures, WT Docket 97-82, *Eighth
    Report and Order*, 17 FCC Rcd 2962 (2002). Under delegated
    authority, the Wireless Telecommunications Bureau recently made
    conforming edits to service-specific competitive bidding rules and
    portions of the Part 1 general competitive bidding rules. Amendment
    of Parts 1, 21, 22, 24, 25, 26, 27, 73, 74, 80, 90, 95, 100, and 101
    of the Commission Rules -- Competitive Bidding, *Order*, 17 FCC Rcd
    6534 (WTB 2002).

[^10]: *Service Rules Report and Order*, 17 FCC Rcd 9980.

[^11]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15297-98, ¶¶ 7-8;
    *see* 47 C.F.R. § 1.2105.

[^12]: *See* In re Application of Nevada Wireless for a License to
    Provide 800 MHz Specialized Mobile Radio Service in the Farmington,
    NM-CO Economic Area (EA-155) Frequency Band A, *Memorandum Opinion
    and Order,* 13 FCC Rcd. 11973, 11977 ¶ 11 (1998).

[^13]: *Id*., at 11978.

[^14]: *See* 47 C.F.R. § 1.2105(c).

[^15]: *See* Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules, *Public Notice*, 11 FCC Rcd 9645
    (1995).

[^16]: *See* 47 C.F.R. § 1.65.

[^17]: 47 C.F.R. §§ 1.65 and 1.2105.

[^18]: The Commission amended Section 1.2105 to require auction
    applicants to report prohibited communications in writing to the
    Commission immediately, but in no case later than five business days
    after the communication occurs. *Part 1* *Seventh Report and Order*,
    16 FCC Rcd at 17555, ¶ 17.

[^19]: In the United States, radio spectrum may be allocated for
    exclusive Federal Government use, exclusive non-Federal Government
    use, or shared use. *See* 47 C.F.R. § 2.105(b). Mixed use is a type
    of shared use whereby Federal Government use is limited by
    geographic area, by time, or by other means so as to guarantee that
    the potential use by Federal Government stations is substantially
    less than the potential use to be made by non-Federal Government
    stations. *See* OBRA-93 at § 113(b)(2)(B). *See also* 47 U.S.C. §
    923(b)(2)(B).

[^20]: *See* U.S. Department of Commerce, NTIA Special Publication
    95-32, "Spectrum Reallocation Final Report: Response to Title VI of
    the Omnibus Budget Reconciliation Act of 1993" (February 1995) (NTIA
    Special Publication 95-32); *see also* U.S. Department of Commerce,
    NTIA Special Publication 98-36, "Spectrum Reallocation Report:
    Response to Title III of the Balanced Budget Act of 1997" (February
    1998) (NTIA Special Publication 98-36); *see also* Memorandum to
    Fred Thomas, FCC Liaison Representative, Interdepartment Radio
    Advisory Committee, from Gerald Hurt, Chief, Spectrum Engineering
    and Analysis Division, National Telecommunications and Information
    Administration (dated Aug. 14, 2001) (2001 NTIA Memorandum).

[^21]: Reallocation of the 216-220 MHz, 1390-1392 MHz, 1427-1429 MHz,
    1429-1432 MHz, 1432-1435 MHz, 1670-1675 MHz, and 2385-2390 MHz
    Government Transfer Bands, ET Docket No. 00-221, *Report and Order
    and Memorandum Opinion and Order,* 17 FCC Rcd 368, 396, ¶ 65 (2002)
    ("*Reallocation Report and Order*"); *Service Rules Report & Order*,
    17 FCC Rcd at 10042, ¶¶ 163-65; 47 C.F.R. § 1.924(f).

[^22]: *Service Rules Report and Order,* 17 FCC Rcd at 10046, ¶ 177.

[^23]: The Commission received the following petitions for
    reconsideration of the *Service Rules Report and Order*: Petition
    for Partial Reconsideration, filed by the Aerospace and Flight Test
    Radio Coordinating Council on July 22, 2002; Petition for Partial
    Reconsideration, filed by Celtronix Telemetry, Inc on July 22, 2002;
    Petition for Partial Reconsideration of XM Radio, Inc., filed by XM
    Radio, Inc. on July 22, 2002; Petition for Clarification, filed by
    Final Analysis Communication Services, Inc. on July 22, 2002;
    Petition for Reconsideration of Itron, Inc., filed on July 22, 2002;
    Petition for Reconsideration of the American Society for Health Care
    Engineering of the American Hospital Association, filed on July 22,
    2002. Electronic copies of these petitions are available through the
    Commission's Electronic Comment Filing System website at
    http://gullfoss2.fcc.gov/prod/ecfs/comsrch_v2.cgi.

[^24]: *See* 47 C.F.R. § 1.2105.

[^25]: *See* 47 C.F.R. Ch. 1, Subpart I.

[^26]: *See* 47 C.F.R. §§ 1.1305-1.1319.

[^27]: An ascending multiple round auction is the same as a simultaneous
    multiple round auction, but with only one license available for bid.

[^28]: 47 C.F.R. § 1.2105 requires the disclosure on the short-form of
    the applicant's ownership information as set forth in 47 C.F.R. §
    1.2112. Note that both of these sections were revised in the *Part 1
    Fifth Report and Order*.

[^29]: 47 C.F.R. §§ 1.2105(a)(2)(viii), (c)(1).

[^30]: 47 C.F.R*.* § 1.2105(a)(2)(ix).

[^31]: *See* Section I.B.2, above.

[^32]: *See* 47 C.F.R. § 1.2105(c)(4)(i), (ii).

[^33]: *See* 47 C.F.R. §§ 1.2110(f), 27.906.

[^34]: *Id.*

[^35]: *Id.*

[^36]: The eligibility for small business preferences will be determined
    based on the attribution rules in effect at the short-form
    application deadline. *See* *Part 1 Fifth Report and Order*, 15 FCC
    Rcd at 15327, ¶ 67.

[^37]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15330, ¶ 78.

[^38]: *See* Amendment of Part 1 of the Commission's Rules-Competitive
    Bidding Procedures, Allocation of Spectrum Below 5 GHz Transferred
    from Federal Government Use, 4660-4685 MHz, WT Docket No. 97-82, ET
    Docket No. 94-32, *Third Report and Order and Second Further Notice
    of Proposed Rule Making*, 13 FCC Rcd 374, 382, ¶ 5 (1997) ("*Part 1
    Third Report and Order*"); *Part 1 Fifth Report and Order,*15 FCC
    Rcd at 15330, ¶ 78.

[^39]: The Bureau recently made conforming edits to service-specific
    competitive bidding rules and portions of the Part 1 general
    competitive bidding rules. Amendment of Parts 1, 21, 22, 24, 25, 26,
    27, 73, 74, 80, 90, 95, 100, and 101 of the Commission Rules --
    Competitive Bidding, *Order*, 17 FCC Rcd 6534 (2002). These rule
    modifications will become effective on August 8, 2002.

[^40]: For further guidance on the issue of *de facto* control, see the
    Commission's affiliation rule at 47 C.F.R. § 1.2110(b)(5); *see
    also* Ellis Thompson Corp., *Summary Decision of Administrative Law
    Judge Joseph Chachkin*, 10 FCC Rcd. 12554, 12555-56 (1994), in which
    the Commission identified the following factors used to determine
    control of a business: (1) use of facilities and equipment; (2)
    control of day-to-day operations; (3) control of policy decisions;
    (4) personnel responsibilities; (5) control of financial
    obligations; and (6) receipt of monies and profits; Intermountain
    Microwave, 12 FCC 2d. 559 (1963), and Application of Baker Creek
    Communications, L.P., for Authority to Construct and Operate Local
    Multipoint Distribution Services in Multiple Basic Trading Areas,
    *Memorandum Opinion and Order*, 13 FCC Rcd. 18709 (1998).

[^41]: *See* 47 C.F.R. § 1.2105.

[^42]: 47 C.F.R. § 1.2105(a)(2)(x).

[^43]: 47 C.F.R. § 1.2105(a)(2)(xi).

[^44]: 47 C.F.R. § 1.2106(a).

[^45]: 47 C.F.R. § 1.65.

[^46]: *See* 47 C.F.R. § 1.2105(a).

[^47]: *See* 47 C.F.R. § 1.2105; *see also* Two Way Radio of Carolina,
    Inc., *Memorandum, Opinion and Order*, 14 FCC Rcd. 12035 (1999).

[^48]: Amendment of Part 1 of the Commission's rules --- Competitive
    Bidding Proceeding, WT Docket No. 97-82, *Order, Memorandum Opinion
    and Order and Notice of Proposed Rule Making*, 12 FCC Rcd. 5686,
    5697-5698, ¶ 16 (1997) ("*Part 1 Order"*).

[^49]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15316-17, ¶¶
    40-42; 47 C.F.R. § 1.2106(a); *see* 47 C.F.R. §§1.2105(a)(2)(xi)

[^50]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15316-17, ¶¶
    40-42.

[^51]: *Auction No. 46 Comment Public Notice* at 4.

[^52]: *Id*.

[^53]: All population figures are from the 4/1/90 U.S. Census, U.S.
    Department of Commerce, Bureau of the Census. Results below \$10,000
    are rounded to the nearest hundred; results above \$10,000 are
    rounded to the nearest thousand.

[^54]: ArraComm Comments; AeroAstro Comments; AeroAstro Reply Comments.

[^55]: ArrayComm Comments at 4.

[^56]: AeroAstro Comments at 2-5; AeroAstro Reply Comments.

[^57]: *Auction No. 46 Comment Public Notice* at 4.

[^58]: ArrayComm Comments at 3

[^59]: *Auction No. 46 Comment Public Notice* at 4.

[^60]: *Id.* at 2.

[^61]: Supplemental ArrayComm Comments at 3.

[^62]: *Auction No. 46 Revised Comment Public Notice* at 5.

[^63]: Supplemental ArrayComm Comments at 2.

[^64]: *Auction No. 46 Comment Public Notice* at 10-11.

[^65]: *Id.* at 11.

[^66]: *Id.*at 5.

[^67]: *See* Balanced Budget Act, section 3002(a), 47 U.S.C. §
    309(j)(4)(F).

[^68]: *See* *Part 1 Third Report and Order*, 13 FCC Rcd 374, 455-456 ¶
    141 (1997)*.*

[^69]: *Id*.

[^70]: *Id*.

[^71]: *Auction No. 46 Comment Public Notice* at 7.

[^72]: All population figures are from the 4/1/90 U.S. Census, U.S.
    Department of Commerce, Bureau of the Census. Results below \$10,000
    are rounded to the nearest hundred; results above \$10,000 are
    rounded to the nearest thousand.

[^73]: *Auction 44 Comment Public Notice* at 6-7.

[^74]: ArrayComm Comments at 5-6.

[^75]: AeroAstro Comments at 2-5; AeroAstro Reply Comments.

[^76]: *Auction No. 46 Comment Public Notice* at 7-9.

[^77]: *Id*.

[^78]: ArrayComm Comments at 6; Supplemental ArrayComm Comments at 4-6.

[^79]: *Auction No. 46 Comment Public Notice* at 7-9.

[^80]: Bidders must have sufficient eligibility to place a bid on the
    particular license. *See* Section III.D.3 "Amount of Upfront
    Payment," *infra*.

[^81]: The product of the minimum opening bid times one plus the minimum
    percentage increment is rounded to the nearest thousand if it is
    over ten thousand, to the nearest hundred if it is under ten
    thousand but over one thousand, or to the nearest ten if it is below
    one thousand.

[^82]: *Auction No. 46 Comment Public Notice* at 10.

[^83]: *Auction No. 46 Revised Comment Public Notice* at 2.

[^84]: Qualcomm Incorporated Petition for Declaratory Ruling Giving
    Effect to the Mandate of the District of Columbia Circuit Court of
    Appeals, *Order*, 16 FCC Rcd 4042 (2000).

[^85]: *See* Supplement to Public Notice Released August 22, 2001 By
    Wireless Telecommunications Bureau Announcing It Is Prepared to
    Grant Four C and F Block Broadband Personal Communications Services
    (PCS) Licenses Upon Full and Timely Payment, Auction Event No. 35,
    DA 01-2071, *Public Notice*, 16 FCC Rcd 16025 (2001). All of the
    terms and conditions applicable to Qualcomm's use of the ADV shall
    apply to its use by a transferee, except that a transferee may not
    transfer the ADV to an entity other than back to Qualcomm. *See* In
    the Matter of Qualcomm Incorporated Petition for Declaratory Ruling
    Giving Effect to the Mandate of the District of Columbia Circuit
    Court of Appeals, *Order*, 16 FCC Rcd 4042 (2000); *see also* Letter
    from Thomas J. Sugrue, Chief, Wireless Telecommunications Bureau,
    Federal Communications Commission, to Veronica M. Ahern, Attorney
    for Qualcomm Incorporated (December 22, 2000).

[^86]: *See* Extending Wireless Telecommunications Services to Tribal
    Lands, WT Docket No. 99-266, *Report and Order and Further Notice of
    Proposed Rule Making*, 15 FCC Rcd 11794 (2000); Wireless
    Telecommunications Bureau Announces Availability of Bidding Credits
    For Providing Wireless Services To Qualifying Tribal Lands, *Public
    Notice*, 15 FCC Rcd 18351 (2000); Wireless Telecommunications Bureau
    Releases Additional Information Regarding the Procedures for
    Obtaining a Tribal Lands Bidding Credit and List of Tribal Lands,
    *Public Notice*, DA 00-2836, (rel. December 14, 2000); Wireless
    Telecommunications Bureau Announces Enhancements to the Universal
    Licensing System to Help Winning Bidders of FCC Auctions File for
    Tribal Land Bidding Credits, *Public Notice*, DA 01-613, (rel. March
    8, 2001).