DA 01-850

April 09, 2001

LOWER AND UPPER PAGING BANDS AUCTION

SCHEDULED FOR JUNE 26, 2001

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

**Upfront Payments and Other Procedural Issues**

Report No. AUC-01-40-B (Auction No. 40)

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

A. Introduction [1](#introduction)

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

2\. Licenses to Be Auctioned [1](#licenses-to-be-auctioned)

B. Rules and Disclaimers [1](#rules-and-disclaimers)

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

2\. Prohibition of Collusion [1](#prohibition-of-collusion)

3\. Incumbent Licensees [1](#incumbent-licensees)

4\. Due Diligence [1](#due-diligence)

5\. Bidder Alerts [1](#bidder-alerts)

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

C. Auction Specifics [1](#auction-specifics)

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

2\. Auction Title [1](#auction-title)

3\. Bidding Methodology [1](#bidding-methodology)

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

5\. Requirements For Participation [1](#requirements-for-participation)

6\. General Contact Information [1](#general-contact-information)

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

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

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

C. Eligibility [1](#eligibility)

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

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

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

4\. Supporting Documentation [1](#supporting-documentation)

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

E. Installment Payments [1](#installment-payments)

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

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

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

III\. PRE-AUCTION PROCEDURES [1](#pre-auction-procedures)

A. Auction Seminar [1](#auction-seminar)

B. Short-Form Application (FCC Form 175) --- Due May 14, 2001
[1](#short-form-application-fcc-form-175-due-may-14-2001)

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

2\. Completion of the FCC Form 175 [1](#completion-of-the-fcc-form-175)

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

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

D. Upfront Payments --- Due June 4, 2001
[1](#upfront-payments-due-june-4-2001)

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

2\. FCC Form 159 [1](#fcc-form-159)

3\. Amount of Upfront Payment [1](#amount-of-upfront-payment)

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

E. Auction Registration [1](#auction-registration)

F. Remote Electronic Bidding [1](#remote-electronic-bidding)

G. Mock Auction [1](#mock-auction)

IV\. AUCTION EVENT [1](#auction-event)

A. Auction Structure [1](#auction-structure)

1\. Simultaneous Multiple Round Auction
[1](#simultaneous-multiple-round-auction)

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

3\. Auction Stages [1](#auction-stages)

4\. Stage Transitions [1](#stage-transitions)

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

6\. Auction Stopping Rules [1](#auction-stopping-rules)

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

B. Bidding Procedures [1](#bidding-procedures)

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

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

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

4\. High Bids [1](#high-bids)

5\. Bidding [1](#bidding)

6\. Bid Removal and Bid Withdrawal [1](#bid-removal-and-bid-withdrawal)

7\. Round Results [1](#round-results)

8\. Auction Announcements [1](#auction-announcements)

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

V. POST-AUCTION PROCEDURES [1](#post-auction-procedures)

A. Down Payments and Withdrawn Bid Payments
[1](#down-payments-and-withdrawn-bid-payments)

B. Long-Form Application [1](#long-form-application)

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

D. Default and Disqualification [1](#default-and-disqualification)

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

VI\. Attachment A- Licenses to be Auctioned A-1

VII\. Attachment B- FCC Auction Seminar Registration Form
B-[1](#attachment-b)

VIII\. Attachment C- Electronic Filing and Review of the FCC Form 175
C-[1](#attachment-c)

IX\. Attachment D- Guidelines for Completion of FCC Form 175 and
Exhibits D-[1](#attachment-d)

X. Attachment E- Instructions for FCC Remittance Advice (FCC Form 159)
E-[1](#attachment-e)

XI\. Attachment F- Accessing the FCC Network to File FCC Form 175
F-[1](#attachment-f)

XII\. Attachment G- Summary of Documents Addressing the Anti-Collusion
Rules 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 licenses for the lower and upper paging bands (Auction No.
40) scheduled for June 26, 2001. On March 7, 2001, in accordance with
the Balanced Budget Act of 1997,[^1] the Bureau released a public notice
seeking comment on reserve prices or minimum opening bids and the
procedures to be used in Auction No. 40.[^2] The Bureau received three
comments[^3] and four reply comments[^4] in response to the *Auction No.
40 Comment Public Notice*.

### Background of Proceeding

In the *Paging Second Report and Order*, the Commission adopted rules
governing geographic licensing for exclusive channels in the 35-36 MHz,
43-44 MHz, 152-159 MHz, 454-460 MHz, 929-930 MHz, and 931-932 MHz bands
allocated for paging, and competitive bidding procedures for granting
mutually exclusive applications for non-nationwide geographic area
licenses in those bands.[^5] In order to facilitate geographic
licensing, the Commission dismissed all pending mutually exclusive
paging applications and all non-mutually exclusive paging applications
filed after July 31, 1996.[^6] In part, the Commission developed a
standard methodology for providing protection to incumbent licensees
from co-channel interference for the 929-930 MHz and 931-932 MHz paging
bands to supplement the existing formulas for determining interference
contours on other paging bands.[^7]

### Licenses to Be Auctioned

The licenses available in Auction No. 40 include 14,000 lower paging
bands (35-36 MHz, 43-44 MHz, 152-159 MHz, and 454-460 MHz) licenses, as
well as 1,514 upper paging bands (929-931 MHz) licenses that were unsold
in the first paging auction ("Auction No. 26"). The lower bands licenses
will be awarded in each of the 175 geographic areas known as Economic
Areas (EAs) and the upper bands licenses will be awarded in each of the
51 geographic areas known as Major Economic Areas (MEAs). These EAs and
MEAs both encompass the United States, Guam and Northern Mariana
Islands, Puerto Rico and the United States Virgin Islands, and American
Samoa. The tables below contain the block/frequency cross-reference list
for the paging bands. A complete list of licenses available for Auction
No. 40 is included as Attachment A.

35 MHz Lower Bands Unpaired Paging Channels

  ----------- --------------- ----------- --------------- ----------- --------------- ----------- ---------------
  **Block     **Frequency**   **Block     **Frequency**   **Block     **Frequency**   **Block     **Frequency**
  (License                    (License                    (License                    (License    
  Suffix)**                   Suffix)**                   Suffix)**                   Suffix)**   

  CA          35.19 - 35.21   CE          35.29 - 35.31   CI          35.45 - 35.47   CM          35.57 - 35.59

  CB          35.21 - 35.23   CF          35.33 - 35.35   CJ          35.49 - 35.51   CN          35.59 - 35.61

  CC          35.23 - 35.25   CG          35.37 - 35.39   CK          35.53 - 35.55   CO          35.61- 35.63

  CD          35.25 - 35.27   CH          35.41- 35.43    CL          35.55 - 35.57   CP          35.65 - 35.67
  ----------- --------------- ----------- --------------- ----------- --------------- ----------- ---------------

43 MHz Lower Bands Unpaired Paging Channels

  ----------- --------------- ----------- --------------- ----------- --------------- ----------- ---------------
  **Block     **Frequency**   **Block     **Frequency**   **Block     **Frequency**   **Block     **Frequency**
  (License                    (License                    (License                    (License    
  Suffix)**                   Suffix)**                   Suffix)**                   Suffix)**   

  DA          43.19 - 43.21   DE          43.29 - 43.31   DI          43.45 - 43.47   DM          43.57 - 43.59

  DB          43.21 - 43.23   DF          43.33 - 43.35   DJ          43.49 - 43.51   DN          43.59 - 43.61

  DC          43.23 - 43.25   DG          43.37 - 43.39   DK          43.53 - 43.55   DO          43.61 - 43.63

  DD          43.25 - 43.27   DH          43.41 - 43.43   DL          43.55 - 43.57   DP          43.65 - 43.67
  ----------- --------------- ----------- --------------- ----------- --------------- ----------- ---------------

152 MHz Lower Bands Unpaired Paging Channels

  ----------- --------------------------- ----------- ----------------------------
  **Block     **Frequency**               **Block     **Frequency**
  (License                                (License    
  Suffix)**                               Suffix)**   

  EA          152.230 - 152.250           EC          158.090 - 158.110

  EB          152.830 - 152.850           ED          158.690 - 158.710
  ----------- --------------------------- ----------- ----------------------------

152 MHz Lower Bands Paired Paging Channels

  ----------- --------------------------- ----------- ----------------------------
  **Block     **Frequency**               **Block     **Frequency**
  (License                                (License    
  Suffix)**                               Suffix)**   

  FA          152.015-152.045 /           FJ          152.555-152.585 /
              158.475-158.505                         157.815-157.845

  FB          152.045-152.075 /           FK          152.585-152.615 /
              158.505-158.535                         157.845-157.875

  FC          152.075-152.105 /           FL          152.615-152.645 /
              158.535-158.565                         157.875-157.905

  FD          152.105-152.135 /           FM          152.645-152.685 /
              158.565-158.595                         157.905-157.935

  FE          152.135-152.165 /           FN          152.685-152.705 /
              158.595-158.625                         157.935-157.965

  FF          152.165-152.195 /           FO          152.705-152.735 /
              158.625-158.655                         157.965-157.995

  FG          152.195-152.225 /           FP          152.735-152.765 /
              158.655-158.685                         157.995-158.025

  FH          152.495-152.525 /           FQ          152.765-152.795 /
              157.755-157.785                         158.025-158.055

  FI          152.525-152.555 /           FR          152.795-152.825 /
              157.785-157.815                         158.055-158.085
  ----------- --------------------------- ----------- ----------------------------

454 MHz Lower Bands Paired Paging Channels

  ----------- ---------------------------- ----------- ----------------------------
  **Block     **Frequency**                **Block     **Frequency**
  (License                                 (License    
  Suffix)**                                Suffix)**   

  GA          454.0125-454.0375 /          GN          454.3375-454.3625 /
              459.0125-459.0375                        459.3375-459.3625

  GB          454.0375-454.0625 /          GO          454.3625-454.3875 /
              459.0375-459.0625                        459.3625-459.3875

  GC          454.0625-454.0875 /          GP          454.3875-454.4125 /
              459.0625-459.0875                        459.3875-459.4125

  GD          454.0875-454.1125 /          GQ          454.4125-454.4375 /
              459.0875-459.1125                        459.4125-459.4375

  GE          454.1125-454.1375 /          GR          454.4375-454.4625 /
              459.1125-459.1375                        459.4375-459.4625

  GF          454.1375-454.1625 /          GS          454.4625-454.4875 /
              459.1375-459.1625                        459.4625-459.4875

  GG          454.1625-454.1875 /          GT          454.4875-454.5125 /
              459.1625-459.1875                        459.4875-459-5125

  GH          454.1875-454.2125 /          GU          454.5125-454.5375 /
              459.1875-459.2125                        459.5125-459.5375

  GI          454.2125-454.2375 /          GV          454.5375-454.5625 /
              459.2125-459.2375                        459.5375-459.5625

  GJ          454.2375-454.2625 /          GW          454.5625-454.5875 /
              459.2375-459.2625                        459.5625-459.5875

  GK          454.2625-454.2875 /          GX          454.5875-454.6125 /
              459.2625-459.2875                        459.5875-459.6125

  GL          454.2875-454.3125 /          GY          454.6125-454.6375 /
              459.2875-459.3125                        459.6125-459.6375

  GM          454.3125-454.3375 /          GZ          454.6375-454.6625 /
              459.3125-454.3375                        459.6375-459.6625
  ----------- ---------------------------- ----------- ----------------------------

929-931 MHz Upper Bands Paging Channels

(Licenses are not available for each block in every market; 985 upper
bands licenses were sold in Auction No. 26. See Attachment A to
determine what licenses will be offered in Auction No. 40.)

  ----------- --------------- ----------- --------------- ----------- --------------- ----------- ---------------
  **Block     **Frequency**   **Block     **Frequency**   **Block     **Frequency**   **Block     **Frequency**
  (License                    (License                    (License                    (License    
  Suffix)**                   Suffix)**                   Suffix)**                   Suffix)**   

  A           929.0125        AA          931.0125        AN          931.3375        BA          931.6625

  B           929.1125        AB          931.0375        AO          931.3625        BB          931.6875

  C           929.2375        AC          931.0625        AP          931.3875        BC          931.7125

  D           929.3125        AD          931.0875        AQ          931.4125        BD          931.7375

  E           929.3875        AE          931.1125        AR          931.4375        BE          931.7625

  F           929.4375        AF          931.1375        AS          931.4625        BF          931.7875

  G           929.4625        AG          931.1625        AT          931.4875        BG          931.8125

  H           929.6375        AH          931.1875        AU          931.5125        BH          931.8375

  I           929.6875        AI          931.2125        AV          931.5375        BI          931.8625

  J           929.7875        AJ          931.2375        AW          931.5625        BJ          931.9625

  K           929.9125        AK          931.2625        AX          931.5875        BK          931.9875

  L           929.9625        AL          931.2875        AY          931.6125                    

                              AM          931.3125        AZ          931.6375                    
  ----------- --------------- ----------- --------------- ----------- --------------- ----------- ---------------

## Rules and Disclaimers

### Relevant Authority

Prospective bidders must familiarize themselves thoroughly with the
Commission's rules relating to the paging services, contained in Title
47, Part 22 and Part 90 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.

Prospective bidders must also be thoroughly familiar with the
procedures, terms and conditions (collectively, "Terms") contained in
this Public Notice; the *Auction No. 40 Comment Public Notice*; the
*Part 1 Fifth Report and Order*[^8] (as well as prior Commission
proceedings regarding competitive bidding procedures); the *Paging
Notice*[^9]; the *Paging First Report and Order*[^10]; the *First Paging
Reconsideration Order*[^11]; the *Paging Second Report and Order*; the
*Second Paging Reconsideration Order*; the *Paging Third Report and
Order*; and the *Third Paging Reconsideration Order*[^12].

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 Internet node
via anonymous ftp at ftp://fcc.gov or the FCC Auctions World Wide Web
site at [http://www.fcc.gov/wtb/auctions]{.underline}. Additionally,
documents may be obtained for a fee by calling the Commission's copy
contractor, International Transcription Service, Inc. ("ITS"), at (202)
314-3070. When ordering documents from ITS, please provide the
appropriate FCC number (for example, FCC 99-98 for the *Paging Third
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.[^13] This prohibition begins at the
short-form application filing deadline and ends at the down payment
deadline after the auction. Bidders competing for licenses in the same
geographic license areas 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. Also, if the authorized bidders
are different individuals employed by the same organization (*e.g.*, law
firm or consulting firm), a violation could similarly occur. 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.[^14]

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.[^15] The Commission's anti-collusion
rules allow applicants to form certain agreements during the auction,
provided the applicants have not applied for licenses covering the same
geographic areas. Note that in Auction No. 40, applicants for licenses
in overlapping EAs and MEAs will not be able to take advantage of these
rule provisions, even though the licenses are not completely
co-extensive. For example, assume that one applicant applies for several
lower paging bands licenses, *i.e.*, licenses covering EAs, in its
Auction No. 40 FCC Form 175 and that a second applicant applies for
licenses in the upper paging bands, *i.e.*, licenses covering MEAs, in
its Auction No. 40 FCC Form 175. If the first applicant selects licenses
for EAs that are within MEAs covered by licenses selected by the second
applicant, the two parties will have applied for licenses covering the
same geographic areas. Consequently, unlike applicants who have applied
for licenses that do not cover the same geographic areas, these two
applicants will not be permitted to form a consortium or bid jointly for
licenses after they file FCC Form 175.[^16] However, all applicants may
enter into bidding agreements *before* filing FCC Form 175, as long as
they disclose the existence of the agreement(s) in their FCC Form
175.[^17] 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 for licenses covering the
same geographic areas.[^18] 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.[^19] Thus, Section 1.65 requires an auction
applicant to notify the Commission of any violation of the
anti-collusion rules upon learning of such violation. Bidders therefore
are required to make such notification to the Commission immediately
upon discovery.

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.

### Incumbent Licensees

Incumbent (non-geographic) paging licensees operating under their
existing authorizations are entitled to full protection from co-channel
interference.[^20] Geographic area licensees are likewise afforded
co-channel interference protection from incumbent licensees.[^21]
Adjacent geographic area licensees are obligated to resolve possible
interference concerns of adjacent geographic area licensees by
negotiating a mutually acceptable agreement with the neighboring
geographic licensee. Incumbency issues are further discussed below.

### Due Diligence 

Potential bidders are reminded that there are a number of incumbent
licensees already licensed and operating on frequencies that will be
subject to the upcoming auction. Geographic area licensees in accordance
with the Commission's Rules must protect such incumbents from harmful
interference. *See* 47 C.F.R. § 22.503(i). These limitations may
restrict the ability of such geographic area licensees to use certain
portions of the electromagnetic spectrum or provide service to certain
areas in their geographic license areas.

In addition, potential bidders seeking licenses for geographic areas
adjacent to the Canadian and Mexican border should be aware that the use
of some or all of the channels they acquire in the auction could be
restricted as a result of current or future agreements with Canada or
Mexico. Licensees on the lower paging channels must submit a Form 601 to
obtain authorization to operate stations north of Line A or east of Line
C because these channels are subject to the *Above 30 Megacycles per
Second Agreement* with Industry Canada.[^22] Although the upper paging
channels do not require coordination with Canada, the *U.S.-Canada
Interim Coordination Considerations for the Band 929-932 MHz, as
amended*, assigns specific 929 and 931 MHz frequencies to the United
States for licensing along certain longitudes above Line A, and assigns
other specific 929 and 931 MHz frequencies to Canada for licensing along
certain longitudes along the U.S.-Canada border. In addition, the 929
and 931 MHz frequencies assigned to Canada are unavailable for use by
U.S. licensees above Line A as set out in the agreement.[^23]

Potential bidders should also be aware that certain applications
(including those for modification), waiver requests, petitions to deny,
petitions for reconsideration, and applications for review are pending
before the Commission that relate to particular applicants or incumbent
licensees. In addition, certain decisions reached in the paging
proceeding may be subject to judicial appeal and may be the subject of
additional reconsideration or appeal. We note that resolution of these
matters could have an impact on the availability of spectrum in Auction
No. 40. In addition, the Commission will continue to act on pending
applications, requests and petitions, some of these matters may not be
resolved by the time of the auction.

**Potential bidders are solely responsible for identifying associated
risks, and 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. 40.**

Potential bidders may obtain information about licenses available in
Auction No. 40 through the Bureau's licensing databases on the World
Wide Web at <http://www.fcc.gov/wtb/uls>. Potential bidders should
direct questions regarding the search capabilities to the FCC Technical
Support hotline at (202) 414-1250 (voice) or (202) 414-1255 (TTY), or
via e-mail at <ulscomm@fcc.gov>. The hotline is available to assist with
questions Monday through Friday, from 7:00 AM to 10:00 PM ET, Saturday,
8:00 AM to 7:00 PM ET, and Sunday, 12:00 noon to 6:00 PM ET. In order to
provide better service to the public, *all calls to the hotline are
recorded.* The Commission makes no representations or guarantees
regarding the accuracy or completeness of information in its databases
or any third party databases, including, for example, court docketing
systems.

The Commission makes no representations or guarantees regarding the
accuracy or completeness of information that has been provided by
incumbent licensees and incorporated into the database. Potential
bidders are strongly encouraged to physically inspect any sites located
in, or near, the geographic area for which they plan to bid.

### 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 a FCC
auction represents an opportunity to become a FCC licensee in this
service, subject to certain conditions and regulations. A FCC auction
does not constitute an endorsement by the FCC of any particular
services, technologies or products, nor does a 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. 40 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. 40 may also call the FCC
Consumer Center at (888) CALL-FCC ((888) 225-5322).

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

Licensees 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 Tuesday, June 26, 2001. 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 on all
licenses will be conducted on each business day until bidding has
stopped on all licenses.

The Commission announces that bidding for Auction No. 40 will be
temporarily suspended July 4, 2001, in observance of the federal
holiday.

### Auction Title

Auction No. 40 -- Paging

### Bidding Methodology

The bidding methodology for Auction No. 40 will be simultaneous multiple
round bidding. Bidding will be permitted only from remote locations,
either telephonically or electronically (by computer via the Internet or
the Bureau's wide area network).

### Pre-Auction Dates and Deadlines

Auction Seminar May 3, 2001

Short-Form Application (FCC FORM 175) May 14, 2001; 6:00 p.m. ET

Upfront Payments (via wire transfer) June 4, 2001; 6:00 p.m. ET

Mock Auction June 22, 2001

Auction Begins June 26, 2001

### 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, May 14, 2001.

-   Submit a sufficient upfront payment and a FCC Remittance Advice Form
    (FCC Form 159) by 6:00 p.m. ET, June 4, 2001.

-   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             | Commercial Wireless Division      |
+-----------------------------------+-----------------------------------+
| Rules, Policies, Regulations      | \(202\) 418-0620                  |
|                                   |                                   |
| 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 7 a.m. to 10:00 p.m. ET,   |
|                                   | Saturday, 8:00 a.m. to 7:00 p.m., |
|                                   | Sunday, 12:00 noon to 6:00 p.m.   |
+-----------------------------------+-----------------------------------+
| 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               | International Transcription       |
|                                   | Services, Inc.                    |
+-----------------------------------+-----------------------------------+
| Additional Copies of              | 445 12^th^ Street, SW Room        |
|                                   | CY-B400                           |
+-----------------------------------+-----------------------------------+
| Commission Documents              | Washington, DC 20554              |
|                                   |                                   |
|                                   | \(202\) 314-3070                  |
+-----------------------------------+-----------------------------------+
| PRESS INFORMATION                 | Meribeth McCarrick (202) 418-0654 |
+-----------------------------------+-----------------------------------+
| FCC FORMS                         | \(800\) 418-3676 (outside         |
|                                   | Washington, DC)                   |
|                                   |                                   |
|                                   | \(202\) 418-3676 (in the          |
|                                   | Washington Area)                  |
|                                   |                                   |
|                                   | <                                 |
|                                   | http://www.fcc.gov/formpage>.html |
+-----------------------------------+-----------------------------------+
| FCC INTERNET SITES                | [http://                          |
|                                   | www.fcc.gov](http://www.fcc.gov/) |
|                                   |                                   |
|                                   | <http://www.fcc.gov/wtb/auctions> |
+-----------------------------------+-----------------------------------+

# 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
business bidding credit eligibility, identification of the license(s)
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.

The *Auction No. 40 Comment Public Notice* did not seek comment
regarding any aspect of Form 175. Nevertheless, one of the comments and
all four reply comments argue that the portion of Form 175 in which
applicants apply for specific licenses should not include an "All" box,
as it has in the past. Applicants are not permitted to bid on any
licenses for which they did not apply on the Form 175. Accordingly,
applicants apply on Form 175 for all licenses on which they potentially
may bid, including those licenses that are part of back-up strategies in
the event the applicant does not obtain its first choice of licenses. As
a convenience, the Commission usually includes an "All" box in the
License Selection portion of Form 175. Applicants may check the "All"
box indicating that they potentially may bid on all of the licenses in
the given auction, rather than checking off each and every license in
which they are interested.[^27] The Commission determines whether or not
there are mutually exclusive applications for any given license by
reviewing all of the Form 175's submitted to determine whether or not
more than one party has applied for a given license. In the event that
review of all the Form 175's accepted for filing determines that only
one party has applied for a given license(s), those license(s) will be
removed from the auction. In such cases, the party that applied for the
given license(s) will be permitted to file a long-form application.

Commenters contend that in the prior paging auction, Auction No. 26, the
"All" box resulted in inaccurate determinations of mutual
exclusivity.[^28] The United States Court of Appeals for the District of
Columbia Circuit, however, has rejected these arguments and affirmed
that the Commission's use of an "All" box on Form 175 to allow
applicants to select licenses on which they may wish to bid is
consistent with the Commission's statutory duty to avoid mutual
exclusivity.[^29]

The Bureau has decided to modify Form 175 for Auction No. 40. In Auction
No. 40, Form 175 will include a mechanism that allows an applicant to
filter the 15,514 licenses by paging service, frequency band, market
area, and/or channel block/license suffix to create customized lists of
licenses. The applicant will make selections for one or more of the
filter criteria and the system will produce a list of licenses
satisfying the specified criteria. The applicant may apply for all the
licenses in the customized list by using the "Select All" option; select
individual licenses separately from the list; or create a second
customized list without selecting any of the licenses from the first
list. Applicants also will be able to select licenses from one
customized list and then create a second customized list to select
additional licenses.

## 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.[^30]

## 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 licenses being auctioned,
including any agreements relating to post-auction market structure.
*See* 47 C.F.R. §§ 1.2105(a)(2)(viii) and 1.2105(c)(1). 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, bidding strategies, or
the particular licenses on which they will or will not bid. *See* 47
C.F.R*.* § 1.2105(a)(2)(ix). 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 for the same geographic license area(s) 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 for licenses in the same geographic license area 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

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

In the *Paging Second Report and Order*, the Commission adopted small
business bidding credits to promote and facilitate the participation of
small businesses in competitive bidding for licenses in the paging
service.[^33] In the *Second Paging Reconsideration Order*, the
Commission subsequently increased the size of the bidding credits.[^34]

Bidding credits are available to small businesses, or consortia thereof,
(as defined in 47 C.F.R §§ 1.2110(c) and 22.217(a)). A bidding credit
represents the amount by which a bidder's winning bids are
discounted.[^35] The size of the bidding credit depends on the average
annual gross revenues for 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 receives a 25
    percent discount on its winning bids for paging licenses;[^36]

```{=html}
<!-- -->
```
-   A bidder with attributed average annual gross revenues of not more
    than \$3 million for the preceding three years receives a 35 percent
    discount on its winning bids for paging licenses.[^37]

Bidding credits are not cumulative; qualifying applicants receive either
the 25 percent or the 35 percent bidding credit, 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.C.

### 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.[^38] 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.[^39]
Part 1 rules that superseded inconsistent service-specific rules will
control in Auction No. 40.[^40] *Accordingly, the "controlling interest"
standard as set forth will be in effect for Auction No. 40, even if
conforming edits to the CFR are not made prior to the auction.*

***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.[^41] 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 business eligibility.*** In determining which
entities qualify as 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 principals or entities with a controlling
interest are determined, only the revenues of those principals or
entities, the applicant and their affiliates will be counted in
determining small business eligibility.

A consortium of 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 business in Sections 1.2110(f) and 22.223(b). 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 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
businesses (or consortia of small businesses) for this auction.[^42]

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 business eligibility (Exhibit C).*** Entities applying to bid
as small businesses (or consortia of 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 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.[^43] 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 has
ever been in default on any Commission licenses or has ever been
delinquent on any non-tax debt owed to any federal agency.[^44]
**Applicants must include this statement as Exhibit D of the FCC Form
175.** If any of an applicant's controlling interests holders or their
affiliates, as defined by Section 1.2110 of the Commission's rules (as
recently amended in the *Part 1 Fifth Report and Order*) have ever been
in default on any Commission license or have ever been delinquent on any
non-tax debt owed to any Federal agency, the applicant must include such
information as part of the same attached statement.[^45] 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. 40, 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.[^46]

## Installment Payments

Installment payment plans will not be available in Auction No. 40.

## 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 (May 14, 2001), 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 their license selections or proposed service areas,
change the certifying official or 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 changes on-line, and submit a letter to Margaret
Wiener, Chief, Auctions and Industry Analysis Division, Wireless
Telecommunications Bureau, Federal Communications Commission, 445 12th
Street, SW, Suite 4-A669 Washington, DC 20554, briefly summarizing the
changes. Questions about other changes should be directed to Erik
Salovaara 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. 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 Thursday, May 3, 2001, the FCC will sponsor a free seminar for
Auction No. 40 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,
FCC Automated Auction System, and the paging 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 attached hereto as
Attachment B and submit it by Tuesday, May 1, 2001. Registrations are
accepted on a first-come, first-served basis.

## Short-Form Application (FCC Form 175) --- Due May 14, 2001

In order to be eligible to bid in this auction, applicants must first
submit a FCC Form 175 application. This application must be submitted
electronically and received at the Commission no later than 6:00 p.m. ET
on May 14, 2001. Late applications will not be accepted.

There is no application fee required when filing a 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.[^47] Applications may generally be filed at any time
beginning at noon ET on May 3, 2001, until 6:00 p.m. ET on May 14, 2001.
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 May 14, 2001.

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 7:00 AM to 10:00 PM ET, Saturday, 8:00 AM to 7:00
PM ET, and Sunday, 12:00 noon 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. For this reason, it is important that applicants do
not include their Taxpayer Identification Numbers (TINs) 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 May 14,
2001, 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 their license selections, change the certifying official, change
control of the applicant, or change bidding credit eligibility).[^48]

## Upfront Payments --- Due June 4, 2001

In order to be eligible to bid in the auction, applicants must submit an
upfront payment accompanied by a 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 June 4, 2001.

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. 40 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 June 4, 2001, 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 June 4, 2001.
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
>
> BNF: FCC/AC 910-1174
>
> OBI Field: (Skip one space between each information item)

> "AUCTIONPAY"

> TAXPAYER IDENTIFICATION NO.: (same as FCC Form 159, block 12)
>
> PAYMENT TYPE CODE (enter "A40U")
>
> FCC CODE 1 (same as FCC Form 159, block 24A: "40")
>
> PAYER NAME (same as FCC Form 159, block 2)
>
> LOCKBOX NO. \# 358405

**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) 236-5702 **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. 40." **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, Memorandum Opinion and Order, and Notice of
Proposed Rule Making,* the Commission delegated to the Bureau the
authority and discretion to determine appropriate upfront payment(s) for
each auction.[^49] 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."[^50]

In the *Auction No. 40 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 a license, otherwise qualified
bidders who applied for that license on Form 175 must have an
eligibility level that meets or exceeds 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 at
least one of the licenses applied for on Form 175, or else the applicant
will not be eligible to participate in the auction. An applicant does
not have to make an upfront payment to cover all licenses for which the
applicant has applied on Form 175, but rather to cover the maximum
number of bidding units that are associated with licenses on which the
bidder wishes to place bids and hold high bids at any given time.

In the *Auction No. 40 Comment Public Notice*, the Bureau proposed
setting upfront payments for each license equal to the license's minimum
opening bid. The Bureau further proposed setting the bidding units for
each license equal to the license's upfront payment on a bidding unit
for dollar basis.[^52] The bidding unit level for each license will
remain constant throughout the auction. All parties that filed comments
and replies addressing this proposal favored the Bureau's proposal.[^53]
The specific upfront payments and bidding units for each license are set
forth in Attachment A.

In calculating its upfront payment amount, an applicant should determine
the [maximum]{.underline} number of bidding units it may wish to bid on
in any single round, and submit an upfront payment covering that number
of bidding units. In order to make this calculation, an applicant should
add together the upfront payments for all licenses on which it seeks to
bid in any given round. **Bidders should check their calculations
carefully, as there is no provision for increasing a bidder's maximum
eligibility after the upfront payment deadline.**

> Former defaulters should calculate their upfront payment for all
> licenses by multiplying the number of bidding units they wish to
> purchase 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.
>
> NOTE: An applicant may, on its FCC Form 175, apply for every
> applicable license being offered, but its actual bidding in any round
> will be limited by the bidding units reflected in its upfront payment.

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

The Commission will use wire transfers for all Auction No. 40 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 June 4, 2001. 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
>
> 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.E., *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 at least one of the licenses
for which they applied.

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 Thursday, June 21, 2001, 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 replacement codes. Qualified bidders
requiring replacements must call technical support prior to arriving at
the FCC.

## Remote Electronic Bidding 

This is the first auction that the Commission will conduct over the
Internet. Telephonic bidding and access via the Bureau's wide area
network will also be available, as in prior auctions. Qualified bidders
are permitted to bid telephonically or electronically, *i.e.*, over the
Internet or the Bureau's wide area network. In either case, each bidder
must have their own Remote Security Access SecurID card, which the FCC
will provide at no charge. Each applicant will be issued at least two
SecurID cards, and up to a maximum of three cards. For security
purposes, the SecurID cards are only mailed to the contact person at the
contact address listed on the FCC Form 175. Please note that the SecurID
card is tailored to a specific auction, so a SecurID card obtained from
a source other than the FCC will not work for Auction No. 40. The
telephonic bidding phone number will be supplied in the first Federal
Express mailing of the confidential bidder identification number. Your
bidding preference---electronic or telephonic---is specified on the FCC
Form 175.

## Mock Auction

All qualified bidders will be eligible to participate in a mock auction
on Friday, June 22, 2001. The mock auction will enable applicants to
become familiar with the electronic 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. 40 will begin on Tuesday,
June 26, 2001. 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

### Simultaneous Multiple Round Auction

In the *Auction No. 40 Comment Public Notice*, we proposed to award all
licenses in Auction No. 40 in a single, simultaneous multiple round
auction.[^54] All the comments and replies that addressed this aspect of
auction design favored a simultaneous multiple round auction.[^55] We
conclude that it is operationally feasible and appropriate to auction
the paging licenses through a single, simultaneous multiple round
auction. Unless otherwise announced, bids will be accepted on all
licenses in each round of the auction. This approach, we believe, allows
bidders to take advantage of any synergies that exist among licenses and
is administratively efficient.

### Maximum Eligibility and Activity Rules

In the *Auction No. 40 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.[^56] In their respective comment and reply, BLP Group and
Conestoga agree that our proposal is a simple and convenient method of
establishing a bidder's "maximum initial eligibility."[^57]

For Auction No. 40 we will adopt this proposal. The amount of the
upfront payment submitted by a bidder determines the initial maximum
eligibility (in bidding units) for each bidder. Note again that upfront
payments are not attributed to specific licenses, but instead will be
translated into bidding units to define a bidder's initial maximum
eligibility (*see* "Amount of Upfront Payment" in Part III.D.3,
*above*). The total upfront payment defines the maximum number of
bidding units on which the applicant will be permitted to bid and hold
high bids. As there is no provision for increasing a bidder's maximum
eligibility during the course of an auction (as described under "Auction
Stages" in Part IV.A.3), prospective bidders are cautioned to calculate
their upfront payments carefully. The total upfront payment does not
affect the total dollars a bidder may bid on any given 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.

A bidder's activity level in a round is the sum of the bidding units
associated with licenses on which the bidder is active. A bidder is
considered active on a license in the current round if it is either the
high bidder at the end of the previous bidding round and does not
withdraw the high bid in the current round, or if it submits an
acceptable bid in the current round (*see* "Bid Increments and Minimum
Accepted Bids" in Part IV.B.(3), *below*). The minimum required activity
level is expressed as a percentage of the bidder's maximum bidding
eligibility, and increases by stage as the auction progresses. Because
these procedures have proven successful in maintaining the pace of
previous auctions (as set forth under "Auction Stages" in Part IV.A.3
and "Stage Transitions" in Part IV.A.4, *below*), we adopt them for
Auction No. 40.

### Auction Stages

In the *Auction No. 40 Comment Public Notice*, we proposed to conduct
the auction in three stages and employ an activity rule. We further
proposed that, in each round of Stage One, a bidder desiring to maintain
its current eligibility would be required to be active on licenses
encompassing at least 80 percent of its current bidding
eligibility.[^58] In each round of Stage Two, a bidder desiring to
maintain its current eligibility would be required to be active on at
least 90 percent of its current bidding eligibility. Finally, we
proposed that a bidder in Stage Three, in order to maintain eligibility,
would be required to be active on 98 percent of its current bidding
eligibility. The BLP Group and Conestoga, the only parties to address
the use of stages with different activity requirements, both agree that
these procedures have worked well in prior auctions in precluding undue
prolongation of the auction.[^59]

We will adopt our proposals for the activity rules. Below are the
activity levels for each stage of the auction. The FCC reserves the
discretion to further alter the activity percentages before and/or
during the auction.

**Stage One:** During the first stage of the auction, a bidder desiring
to maintain its current eligibility will be required to be active on
licenses that represent at least 80 percent of its current bidding
eligibility in each bidding round. Failure to maintain the required
activity level will result in a reduction in the bidder's bidding
eligibility in the next round of bidding (unless an activity rule waiver
is used). During Stage One, reduced eligibility for the next round will
be calculated by multiplying the bidder's current activity (the sum of
bidding units of the bidder's standing high bids and valid bids during
the current round) by five-fourths (5/4).

**Stage Two:** During the second stage of the auction, a bidder desiring
to maintain its current eligibility is required to be active on 90
percent of its current bidding eligibility. Failure to maintain the
required activity level will result in a reduction in the bidder's
bidding eligibility in the next round of bidding (unless an activity
rule waiver is used). During Stage Two, reduced eligibility for the next
round will be calculated by multiplying the bidder's current activity
(the sum of bidding units of the bidder's standing high bids and valid
bids during the current round) by ten-ninths (10/9).

**Stage Three:** During the third stage of the auction, a bidder
desiring to maintain its current eligibility is required to be active on
98 percent of its current bidding eligibility. Failure to maintain the
required activity level will result in a reduction in the bidder's
bidding eligibility in the next round of bidding (unless an activity
rule waiver is used). In this stage, reduced eligibility for the next
round will be calculated by multiplying the bidder's current activity
(the sum of bidding units of the bidder's standing high bids and valid
bids during the current round) by fifty-fortyninths (50/49).

CAUTION: Since activity requirements increase in each auction stage,
bidders must carefully check their current activity during the bidding
period of the first round following a stage transition. This is
especially critical for bidders that have standing high bids and do not
plan to submit new bids. In past auctions, some bidders have
inadvertently lost bidding eligibility or used an activity rule waiver
because they did not re-verify their activity status at stage
transitions. Bidders may check their activity against the required
minimum activity level by using the bidding system's bidding module.

Because the foregoing procedures have proven successful in maintaining
proper pace in previous auctions, we adopt them for Auction No. 40.

### Stage Transitions

In the *Auction No. 40 Comment Public Notice*, we proposed that the
auction would generally advance to the next stage (*i.e.*, from Stage
One to Stage Two, and from Stage Two to Stage Three) when the auction
activity level, as measured by the percentage of bidding units receiving
new high bids, is below 10 percent for three consecutive rounds of
bidding in each Stage. We further proposed that the Bureau would retain
the discretion to change stages unilaterally by announcement during the
auction. This determination, we proposed, would be based on a variety of
measures of bidder activity, including, but not limited to, the auction
activity level, the percentages of licenses (as measured in bidding
units) on which there are new bids, the number of new bids, and the
percentage increase in revenue.[^60] We received no comments on this
subject.

We adopt our proposal. Thus, the auction will start in Stage One and it
will advance to the next stage (*i.e.*, from Stage One to Stage Two, and
from Stage Two to Stage Three) when, in each of three consecutive rounds
of bidding, the high bid has increased on 10 percent or less of the
licenses being auctioned (as measured in bidding units). In addition,
the Bureau will retain the discretion to regulate the pace of the
auction by announcement. This determination will be based on a variety
of measures of bidder activity, including, but not limited to, the
auction activity level, the percentages of licenses (as measured in
bidding units) on which there are new bids, the number of new bids, and
the percentage increase in revenue. We believe that these stage
transition rules, having proven successful in prior auctions, are
appropriate for use in Auction No. 40.

### Activity Rule Waivers and Reducing Eligibility

In the *Auction No. 40 Comment Public Notice*, we proposed that each
bidder in the auction would be provided five activity rule waivers.
Bidders may use an activity rule waiver in any round during the course
of the auction.[^61] As with the Bureau's proposal regarding using
different activity rules in different stages of Auction No. 40, only the
BLP Group and Conestoga addressed the Bureau's proposals regarding
activity rule waivers and reducing eligibility. Both support adopting
the Bureau's proposals.[^62]

Based upon our experience in previous auctions, we adopt our proposal
that each bidder be provided five 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. An activity rule waiver applies to an entire round of bidding and
not to a particular license. We are satisfied that our practice of
providing five 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 FCC 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 unless: (1) there are no activity rule waivers available; or
(2) the bidder overrides the automatic application of a waiver by
reducing eligibility, thereby meeting the minimum requirements.

A bidder with insufficient activity that wants to reduce its bidding
eligibility rather than use an activity rule waiver must affirmatively
override the automatic waiver mechanism during the round by using the
reduce eligibility function in the bidding system. In this case, the
bidder's eligibility is permanently reduced to bring the bidder into
compliance with the activity rules as described in "Auction Stages"
(*see* Part IV.A.3 discussion *above*). Once eligibility has been
reduced, a bidder will not be permitted to regain its lost bidding
eligibility.

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 or withdrawals will not keep the auction open.

### Auction Stopping Rules

For Auction No. 40, the Bureau proposed to employ a simultaneous
stopping rule.[^63] Under this rule, bidding will remain open on all
licenses until bidding stops on every license. The auction will close
for all licenses when one round passes during which no bidder submits a
new acceptable bid on any license, applies a proactive waiver, or
withdraws a previous high bid. After the first such round, bidding
closes simultaneously on all licenses.

The Bureau also proposed retaining discretion to implement a modified
version of the simultaneous stopping rule. The modified version will
close the auction for all licenses after the first round in which no
bidder submits a proactive waiver, a withdrawal, or a new bid on any
license on which it is not the standing high bidder. Thus, absent any
other bidding activity, a bidder placing a new bid on a license for
which it is the standing high bidder will 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
and no previous high bids are withdrawn in a round. 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 lose bidding eligibility or use an
activity rule waiver (if it has any left).

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"). If the Bureau invokes this special stopping
rule, it will accept bids in the final round(s) only for licenses on
which the high bid increased in at least one of the preceding specified
number of rounds. 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.[^64]
Before exercising this option, the Bureau is likely to attempt to
increase the pace of the auction by, for example, moving the auction
into the next stage (where bidders will be required to maintain a higher
level of bidding activity), increasing the number of bidding rounds per
day, and/or adjusting the amount of the minimum bid increments for the
licenses.

We received no comments on the subject, therefore, we adopt all of the
above proposals concerning the auction stopping rules. Auction No. 40
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. 40, 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. 40 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.[^65]

Because this approach has proven effective in resolving exigent
circumstances in previous auctions, we will 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. This public notice will be included in
the registration mailings. 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. In
their respective comment and reply, the BLP Group and Conestoga urge the
Commission to limit the number of bidding rounds per day to a greater
extent than in prior auctions because Auction No. 40 involves many more
licenses and, consequentially, bidders will have much more information
to analyze between rounds.[^66] The Bureau will consider all relevant
factors, including but not limited to the number of licenses in the
auction, when determining the number of bidding rounds per 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 FCC 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 Balanced Budget Act 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 must 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. 40 Comment Public Notice*, the Bureau proposed to
establish minimum opening bids for Auction No. 40 and to retain
discretion to lower the minimum opening bids.[^71] Specifically, for
Auction No. 40, the Bureau proposed the following formula for minimum
opening bids:

-   For a license being auctioned by MEA, the minimum opening bid will
    be 20% of the average gross high bid received in Auction No. 26 in
    the same MEA.

-   For a license being auctioned by EA, the minimum opening bid will be
    the EA population multiplied by 20% of the gross average dollars per
    population received in Auction No. 26 for the corresponding MEA.

The Bureau will set a "floor" for minimum opening bids at \$1000 for
licenses in the upper paging bands (929-931 MHz) and \$500 for the
licenses in the lower paging bands (35-36 MHz, 43-44 MHz, 152-159 MHz,
and 454-460 MHz).

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.[^72]

All the parties filing comments and replies addressed the minimum
opening bids proposed in the *Auction No. 40 Comment Public Notice*. As
a preliminary matter, none of the parties contended that having minimum
opening bids in Auction No. 40 is contrary to the public interest.
Several parties expressly endorsed the use of minimum opening bids as an
effective auction tool.[^73] Accordingly, pursuant to the Balanced
Budget Act, the Bureau adopts its proposal to use minimum opening bids
in Auction No. 40.

All the comments and replies propose that some or all the minimum
opening bids be lower than those proposed in the *Auction No. 40 Comment
Public Notice*. The BLP Group, Conestoga, Ryder, CCSC, and BSC each note
that the proposed absolute minimum opening bids result in identical
minimum opening bids for different licenses that cover widely varying
populations.[^74] These parties further assert that the proposed minimum
opening bids do not take into account the higher level of incumbency in
the lower paging bands.[^75] Thus, they assert that the proposed minimum
opening bids "discriminate" against smaller markets by imposing "floor"
minimum opening bids identical to those for larger markets and that the
proposed minimum opening bids discriminate against the lower paging
bands by using prices for licenses in the less encumbered upper paging
bands to set all minimum opening bids.

Rule and ACE both contend that the proposed minimum opening bids are too
high given the general economic condition of the paging industry.[^76]
They also note the high level of incumbency in the lower paging bands.
Rule further observes that services that use multiple channels have a
higher effective minimum opening bid than the Bureau's proposal
suggests, as applicants must obtain multiple licenses in order to offer
such services.[^77]

BLP proposes that for lower paging bands markets with a population of
less than 1 million, the Bureau use \$200, rather than \$500, as an
absolute minimum opening bid.[^78] Rule proposes a "floor price" of
\$50, at least for licenses in the lower paging bands.[^79] ACE asserts
that minimum opening bids should be set based on the filing fee for
additional site licenses under the former licensing system.[^80]

In the replies, Conestoga proposes that the floor be reduced to \$200
for all licenses.[^81] Ryder, CCSC, and BSC all refrain from proposing
specific minimum opening bids but note their agreement with Rule's
comment and endorse minimum opening bids "closer to \$50 than
\$500."[^82] Given this reference to the proposed \$500 absolute minimum
opening bid, these reply comments do not appear to propose any changes
for the upper paging bands minimum opening bids.

After reviewing the comments and replies, the Bureau has concluded that
it should adopt its original proposal and the minimum opening bids
listed in the *Auction No. 40 Comment Paging Notice*. Comments
concerning purported "discrimination" due to the use of an absolute
minimum opening bid presume that minimum opening bids must be
proportional to population across all price ranges. In fact, the Bureau
imposes a floor precisely because such proportionality would result in
some minimum opening bids so low that they might encourage speculation
and warehousing of spectrum contrary to the public interest. The Bureau
believes that parties unable or unwilling to make the proposed absolute
minimum opening bids most likely will be unable or unwilling to use the
licenses to provide service to the public.

Rule's comments regarding effective minimum opening bids for parties
requiring multiple licenses to provide service address the paging
service's basic structure, *i.e.*, the minimum bandwidth for a license.
That issue is beyond the scope of the Bureau's auction procedures and
has been resolved by prior rule making. It is sufficient to note that
the Commission has concluded that others, if not Rule, may provide the
public with service using just one license.

The commenters' other observations, regarding the extent of incumbency,
proposals to grant licenses based on incumbency, and concerns about the
transition from site specific licensing to geographic area licensing,
were the subject of prior rule making proceedings and are not within the
scope of auction procedures. Likewise, Ryder's contention that build-out
obligations for licenses purchased in Auction No. 26 should be adjusted
given the reduction in minimum opening bids for related licenses in
Auction No. 40 properly should be made and considered in proceedings, if
any, related to Ryder's satisfaction of those obligations.[^83]

We conclude that the proposed absolute minimum opening bids of \$500 and
\$1000 will not impede any party willing and able to use the license to
provide paging service. Under the Commission's current rules, the filing
fee for a new paging service license or to make major modifications to
an existing paging service license is \$310.[^84] This fee is waived for
applicants that obtained licenses through the auction process.[^85]
Finally, small businesses qualifying for a thirty-five percent (35%)
bidding credit and winning a lower paging bands license for the minimum
opening bid of \$500 will have to pay \$325 for the license. Thus, even
absent an auction, service providers will have to meet costs comparable
to the proposed absolute minimum opening bids in order to obtain a
license.

We will adopt minimum opening bids for Auction No. 40, which are
reducible at the discretion of the Bureau. We emphasize, however, that
such discretion will be exercised, if at all, sparingly and early in the
auction, *i.e.*, before bidders lose all waivers and begin to lose
substantial eligibility. During the course of the auction, the Bureau
will not entertain any bidder request to reduce the minimum opening bid
on specific licenses.

### Bid Increments and Minimum Accepted Bids

In the *Auction No. 40 Comment Public Notice*, we proposed to set the
minimum accepted bid as the minimum opening bid or the standing high bid
plus a defined increment. In addition, we proposed that bidders will be
able to place any of nine higher bids, each higher bid being equal to
the minimum accepted bid plus one to nine times the defined increment.
With respect to calculating the defined increment, we proposed basing
the defined increment on a percentage of the standing high bid or, if no
standing high bid had been placed, on the minimum opening bid. We
proposed that at the outset of the auction, we would use twenty percent
of the standing high bid or minimum opening bid to calculate the
increment.[^86] We further proposed to retain the discretion to change
the percentage used to calculate the defined increment if circumstances
so dictate and to set a floor for the increment used to calculate the
minimum acceptable bid at an absolute dollar amount. Finally, we
proposed that in Stage III of the auction, we would have discretion to
use a smaller percentage to calculate the increment used in setting
acceptable bids higher than the minimum accepted bid. In all other
respects, such as rounding, the smaller defined increment would be
calculated in the same manner as the defined increment used to set the
minimum accepted bid.[^87]

The only comments addressing the proposals described above supported the
proposals.[^88] They further advocated that the Bureau should use ten
percent (10%) or less should it use a smaller percentage to calculate
acceptable bids higher than the minimum accepted bid.[^89]

We will adopt our proposals contained in the *Auction No. 40 Comment
Public Notice.* In doing so, we will retain the discretion to set the
percentages being used, rather than adopt the ten percent (10%) cap
advocated by the comments. We recognize that the comments' suggestion is
in keeping with the purpose of our proposal; however, we conclude that
there is no need to so restrict our discretion. Advanced notice of the
Bureau's decision to exercise its discretion with regard to acceptable
bids in any manner will be announced via the Automated Auction System.

### High Bids

An implementation of the Lecuyer pseudo-random generator will be used to
determine the standing high bidder in the case of tie high bids. A
random number will be assigned to each bid. The tie bid having the
highest random number will become the standing high bid. As noted in the
*Auction No. 40 Comment Public Notice*, we have adopted this method of
breaking ties for this auction because, unlike prior auctions, bidders
in Auction No. 40 will be able to bid via the Internet.[^90] As the only
comment addressing this issue recognized, breaking ties by reference to
the timing of the bids, as in prior auctions, is inappropriate in
Auction No. 40 because bidders may access the Internet at widely varying
speeds.[^91]

### Bidding

During a bidding round, a bidder may submit bids for as many licenses as
it wishes (subject to its eligibility), withdraw high bids from previous
bidding rounds, remove bids placed in the same bidding round, or
permanently reduce eligibility. Bidders also have the option of making
multiple submissions and withdrawals in each bidding round. If a bidder
submits multiple bids for a single license in the same round, the system
takes the last bid entered as that bidder's bid for 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. In the past, four to five minutes have been necessary to complete
a bid submission. Due to the large number of licenses in Auction No. 40,
bidders may require more time to submit their bids than in past
auctions.) There will be no on-site bidding during Auction No. 40.

A bidder's ability to bid on specific licenses in the first round of the
auction is determined by two factors: (1) the licenses applied for on
FCC Form 175 and (2) the upfront payment amount deposited. The bid
submission screens will allow bidders to submit bids on only those
licenses for which the bidder applied on its FCC Form 175.

The FCC 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 bids.

In each round, eligible bidders will be able to place acceptable bids on
a given license in any of ten different amounts. The Automated Auction
System interface will list as acceptable bids for each license a minimum
acceptable bid and nine higher bids. Until a bid has been placed on a
license, the minimum acceptable bid for that license will be equal to
its minimum opening bid. In the rounds after an acceptable bid is placed
on a license, the minimum acceptable bid for that license will be equal
to the standing high bid plus the defined increment. (If a high bid on a
license was withdrawn, however, the Commission will specify the minimum
acceptable bid.)

As detailed above, for each license in Auction No. 40, the defined
increment for the minimum acceptable bid is based on a percentage of the
standing high bid on the license or, if no bid has been placed on the
license, a percentage of the minimum opening bid for the license.
Presuming, for example, that the percentage being used is 20
percent---the initial value at the start of the auction---and the
standing high bid for a license is \$10,000, the minimum acceptable bid
will be \$12,000.

Furthermore, as discussed above, in addition to the minimum acceptable
bid, the Automated Auction System will list nine higher acceptable bid
amounts. These nine bids will be equal to the minimum acceptable bid
plus a defined increment based on a percentage of the standing high bid
or, if no bid has been placed on the license, a percentage of the
minimum opening bid for the license. In Stage III of Auction No. 40, the
percentage used to calculate the nine higher acceptable bids may be
equal to or less than the percentage used to calculate the increment
that sets the minimum acceptable bid. For instance, 20 percent might be
used to calculate the defined increment for the minimum acceptable bid,
while 10 percent might be used to calculate the smaller increment used
to calculate higher acceptable bids. In this case, for the example above
in which the standing high bid for a license is \$10,000 and the minimum
acceptable bid is \$12,000, the first of nine higher acceptable bid
amounts will be:

Bid Amount 1 = (\$10,000\*0.10) + \$12,000 = \$13,000

[]{.mark}

Finally, bidders are cautioned in selecting their bid amounts because,
as explained in the following section, bidders who withdraw a standing
high bid from a previous round, even if mistakenly or erroneously made,
are subject to bid withdrawal payments.

### Bid Removal and Bid Withdrawal

In the *Auction No. 40 Comment Public Notice*, we proposed bid removal
and bid withdrawal rules.[^92] With respect to bid withdrawals, we
proposed limiting each bidder to withdrawals in no more than two rounds
during the course of the auction. The two rounds in which withdrawals
are utilized, we proposed, would be at the bidder's discretion. We
received no comments on this issue.

**Procedures.** Before the close of a bidding round, a bidder has the
option of removing any bids placed in that round. By using the "remove
bid" function in the bidding system, a bidder may effectively "unsubmit"
any bid placed within that round. A bidder removing a bid placed in the
same round is not subject to withdrawal payments. Removing a bid will
affect a bidder's activity 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. This procedure, about which we received no
comments, will enhance bidder flexibility during the auction. Therefore,
we will adopt these procedures for Auction No. 40.

Once a round closes, a bidder may no longer remove a bid. However, in
later rounds, a bidder may withdraw standing high bids from previous
rounds using the "withdraw bid" function (assuming that the bidder has
not exhausted its withdrawal allowance). A high bidder that withdraws
its standing high bid from a previous round during the auction is
subject to the bid withdrawal payments specified in 47 C.F.R. §
1.2104(g).

In previous auctions, we have detected bidder conduct that, arguably,
may have constituted strategic bidding through the use of bid
withdrawals. While we continue to recognize the important role that bid
withdrawals play in an auction, *i.e.*, reducing risk associated with
efforts to secure various licenses in combination, we conclude that, for
Auction No. 40, adoption of a limit on their use to two rounds is the
most appropriate outcome. By doing so we believe we strike a reasonable
compromise that will allow bidders to use withdrawals. Our decision on
this issue is based upon our experience in prior auctions, particularly
the PCS D, E and F block auctions, and 800 MHz SMR auction, and is in no
way a reflection of our view regarding the likelihood of any speculation
or "gaming" in this auction.

The Bureau will therefore limit the number of rounds in which bidders
may place withdrawals to two rounds. These rounds will be at the
bidder's discretion and there will be no limit on the number of bids
that may be withdrawn in either of these rounds. Withdrawals during the
auction will still be subject to the bid withdrawal payments specified
in 47 C.F.R. § 1.2104(g). Bidders should note that abuse of the
Commission's bid withdrawal procedures could result in the denial of the
ability to bid on a market. If a high bid is withdrawn, the minimum
accepted bid in the next round will be the prior round's second highest
bid price, which may be less than, or equal to, in the case of tie bids,
the amount of the withdrawn bid.[^93] To set additional acceptable bids,
the second highest bid price also will be used in place of the standing
high bid in the formula used to calculate the increment between bids.
The Commission will serve as a "place holder" on the license until a new
acceptable bid is submitted on that license.

**Calculation.** Generally, the Commission imposes payments on bidders
that withdraw high bids during the course of an auction.[^94] If a
bidder withdraws its bid and there is no higher bid in the same or
subsequent auction(s), the bidder that withdrew its bid is responsible
for the difference between its withdrawn bid and the net high bid in the
same or subsequent auction(s). In the case of multiple bid withdrawals
on a single license, within the same or subsequent auctions(s), the
payment for each bid withdrawal will be calculated based on the sequence
of bid withdrawals and the amounts withdrawn. No withdrawal payment will
be assessed for a withdrawn bid if either the subsequent winning bid or
any of the intervening subsequent withdrawn bids, in either the same or
subsequent auctions(s), equals or exceeds that withdrawn bid. Thus, a
bidder that withdraws a bid will not be responsible for any withdrawal
payments if there is a subsequent higher bid in the same or subsequent
auction(s). This policy allows bidders most efficiently to allocate
their resources as well as to evaluate their bidding strategies and
business plans during an auction while, at the same time, maintaining
the integrity of the auction process. The Bureau retains the discretion
to scrutinize multiple bid withdrawals on a single license for evidence
of anti-competitive strategic behavior and take appropriate action when
deemed necessary.

In the *Part 1 Fifth Report and Order*, the Commission modified Section
1.2104(g)(1) of the rules regarding assessments of interim bid
withdrawal payments.[^95] As amended, Section 1.2104(g)(1) provides that
in instances in which bids have been withdrawn on a license that is not
won in the same auction, the Commission will assess an interim
withdrawal payment equal to 3 percent of the amount of the withdrawn
bids. The 3 percent interim payment will be applied toward any final bid
withdrawal payment that will be assessed after subsequent auction of the
license. Assessing an interim bid withdrawal payment ensures that the
Commission receives a minimal withdrawal payment pending assessment of
any final withdrawal payment. The *Part 1 Fifth Report and Order*
provides specific examples showing application of the bid withdrawal
payment rule.[^96]

###  {#section .unnumbered}

### Round Results

In the *Auction No. 40 Comment Public Notice*, we proposed disclosing
all information relating to the bids during Auction No. 40 after each
round of bidding closes, including all bids and withdrawals placed in
each round, the identity of the bidder placing each bid or withdrawal,
and the net and gross amounts of each bid or withdrawal. The BLP Group,
the only party to address the Bureau's proposal regarding the release of
particular information regarding bids and bidders, supports the Bureau's
proposal.[^97] Accordingly, the Bureau will adopt the proposal in the
*Auction No. 40 Comment Public Notice*.

Bids placed during a round will not be published until the conclusion of
that bidding period. After a round closes, the Bureau will post the
results of the round for public access. Reports reflecting bidders'
identities and bidder identification numbers for Auction No. 40 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 and stage transitions. All FCC auction announcements
will be available by clicking a link on the FCC 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. Filers must make these changes on-line, and submit a letter
summarizing the changes to:

Margaret Wiener, Chief

Auctions and Industry Analysis Division

Wireless Telecommunications Bureau

Federal Communications Commission

445 12^th^ Street, SW, Room 4-A669

Washington, DC 20554

A separate copy of the letter should be mailed to Erik Salovaara,
Auctions and Industry Analysis Division, Wireless Telecommunications
Bureau, Federal Communications Commission, 445 12^th^ Street, SW, Room
4-B457, Washington, DC 20554. Questions about other changes should be
directed to Erik Salovaara at (202) 418-0660.

# POST-AUCTION PROCEDURES

## Down Payments and Withdrawn Bid Payments

After bidding has ended, the Commission will issue a public notice
declaring the auction closed, identifying winning bidders, down payments
and any withdrawn bid payments due.

Within ten business days after release of the auction closing notice,
each winning bidder must submit sufficient funds (in addition to its
upfront payment) to bring its total amount of money on deposit with the
Government to 20 percent of its net winning bids (actual bids less any
applicable small business bidding credits). *See* 47 C.F.R. § 1.2107(b).
In addition, by the same deadline all bidders must pay any bid
withdrawal payments due under 47 C.F.R. § 1.2104(g), as discussed in
"Bid Removal and Bid Withdrawal," Part IV.B.6. (Upfront payments are
applied first to satisfy any withdrawn bid liability, before being
applied toward down payments.)

## Long-Form Application

Within ten business days after release of the auction closing notice,
winning bidders must electronically submit a properly completed
long-form application (FCC Form 601) and required exhibits for each
license won through Auction No. 40. Winning bidders that are small
businesses must include an exhibit demonstrating their eligibility for
small business bidding credits. *See* 47 C.F.R. §§ 1.2112(b),
24.709(c)(2)(i). Further filing instructions will be provided to auction
winners 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(e). 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(e).

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.[^98] Relevant documents can be
viewed on the Commission's web site by going to
<http://www.fcc.gov/wtb/auctions> and clicking on *Information on Tribal
Land Bidding 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. *See*
47 C.F.R. § 1.2109(b) and (c). 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 a license in Auction No. 40 may be entitled to a refund of
their remaining upfront payment balance after the conclusion of the
auction. No refund will be made unless there are excess funds on deposit
from that applicant after any applicable bid withdrawal payments have
been paid.

Qualified bidders that have exhausted all of their activity rule
waivers, have no remaining bidding eligibility, and have not withdrawn a
high bid during the auction 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 and a Taxpayer Identification
Number (TIN). Send refund request to:

Federal Communications Commission

Financial Operations Center

Auctions Accounting Group

Shirley Hanberry

445 12th Street, SW, Room 1-A824

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:** Erik Salovaara, Legal
Branch, or Jeff Crooks, Auctions Operations Branch, at (202) 418-0660;
Lisa Stover, Auctions Operations Branch, at (717) 338-2888

**Commercial Wireless Division:** Gary Oshinsky, Policy and Rules
Branch, at (202) 418-7167, or Bettye Woodward, Licensing and Technical
Analysis Branch, at (202) 418--0620

-   **FCC -**

# Attachment B

FCC AUCTION SEMINAR REGISTRATION FORM

Auction No. 40

The FCC will sponsor a one-day seminar for Auction No. 40 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.

A maximum of two representatives from each company may attend on a
reservation basis, first-come first-served until room capacity is
filled. Additional seating may be available on a stand-by basis the day
of the seminar. The seminar will be held:

Thursday, May 3, 2001

Federal Communications Commission

445 12th Street SW

Washington, DC 20554

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

Seminar 10:00 a.m. - 4 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

Tuesday, May 1, 2001, by mail or fax to:

FCC Auction 40

Auctions Operations Branch

1270 Fairfield Road

Gettysburg, PA 17325-7245

FAX: 717-338-2850

Phone: 717-338-2888

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

I/We will attend the Auction No. 40 Seminar, scheduled for Thursday, May
3, 2001.

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

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

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

Phone: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Fax:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

# Attachment C

ELECTRONIC FILING AND REVIEW

OF THE FCC FORM 175

Applicants must submit their FCC Form 175 applications electronically,
using either the Internet or the FCC Wide-Area Network. The FCC
Wide-Area Network will generally be available 24 hours per day. FCC Form
175 applications must be submitted and confirmed by **6:00 p.m. ET on
Monday, May 14, 2001.** Late applications or unconfirmed submissions of
electronic data will not be accepted.

Applicants must press 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}
<!-- -->
```
-   Netscape Communicator 4.0 or higher

-   Microsoft Internet Explorer 4.0 or higher

```{=html}
<!-- -->
```
-   PDF Viewer: Adobe Acrobat Reader 4.0 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://wtbwww27.fcc.gov/*** (primary location) or
***https://wtbwww37.fcc.gov/*** (secondary location) to obtain the Form
175 Homepage.

> **Note:** If you have problems with the Internet, you may submit FCC
> Form 175 applications via the FCC Wide-Area Network, using Dial-Up
> Networking. For details, refer to the *Accessing the FCC Network to
> File FCC Form 175* attachment.

### 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. Once you have logged on, you can
click the **Submit New** link to obtain the *Profile* page for the
auction.

### Uploading Attachments

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

-   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.

-   Do not include punctuation marks (e.g., ? . -- ,) in the name of a
    file to be uploaded. The FCC system will not be able to convert that
    file.

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

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.

If you are unable to read this 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 the 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://wtbwww27.fcc.gov/*** (primary location) or
***https://wtbwww37.fcc.gov/*** (secondary location). 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 installing or 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 7 a.m. to 10 p.m. ET, Saturday from 8 a.m. to
7 p.m. ET, and Sunday from 12 noon 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:

**Company:** 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 also requested to indicate their
status as a rural telephone company, minority-owned business 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; no P.O. Box addresses may
be used.

**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
business bidding credit must select the applicable bidding credit (25
percent or 35 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 May 14, 2001.

Telephonic or Electronic Bidding Options: Bidders may participate in the
auction either electronically (via the Internet) 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 all licenses on which
they want to be eligible to bid in the auction. Be advised that there is
no opportunity to change this list once the short-form filing deadline
passes on May 14, 2001. It is critically important that you confirm the
licenses that you have selected because the FCC auction system will not
accept bids on licenses for which an applicant has not applied on its
FCC Form 175.

The online Form 175 application provides filters that enable you to
generate a list of licenses having a specific service, market, or
channel block. Once you obtain this customized list, you can use it to
select the licenses you are interested in.

## Exhibits and Attachments

In addition to the FCC Form 175 itself, 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 that will
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 list their TIN numbers 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
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; and name, title, and
                         citizenship of a responsible officer or director

  Limited Liability      Corporate name and address; and name, address,
  Corporation            and citizenship of all members

  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, that equals 10 percent or    |
|                      | more of the applicant, 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-licensed 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) that     |
|                      | > 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 also* 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 licensed 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 licensed 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 licensed 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 licenses 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 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 for licenses covering the same geographic
area from communicating concerning bids, bidding strategies, or
settlements during the period between the initial short-form
applications filing deadline and the deadline for down payments on
licenses won in the auction.* 47 C.F.R. § 1.2105(c).

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

+----------------------+---------+----------+-------------------------+
| ***Entity***         | ***R    |          |                         |
|                      | equired |          |                         |
|                      | Informa |          |                         |
|                      | tion*** |          |                         |
+======================+=========+==========+=========================+
| Applicant            | Average |          |                         |
|                      | annual  |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for the |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | three   |          |                         |
|                      | years   |          |                         |
|                      | set     |          |                         |
|                      | forth   |          |                         |
|                      | *both   |          |                         |
|                      | sepa    |          |                         |
|                      | rately* |          |                         |
|                      | (       |          |                         |
|                      | *e.g.*, |          |                         |
|                      | for     |          |                         |
|                      | each of |          |                         |
|                      | the     |          |                         |
|                      | three   |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | three   |          |                         |
|                      | years   |          |                         |
|                      | indivi  |          |                         |
|                      | dually) |          |                         |
|                      | *and in |          |                         |
|                      | the     |          |                         |
|                      | agg     |          |                         |
|                      | regate* |          |                         |
|                      | (for    |          |                         |
|                      | all of  |          |                         |
|                      | the     |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | three   |          |                         |
|                      | years   |          |                         |
|                      | com     |          |                         |
|                      | bined). |          |                         |
|                      | Certif  |          |                         |
|                      | ication |          |                         |
|                      | that    |          |                         |
|                      | the     |          |                         |
|                      | average |          |                         |
|                      | annual  |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for the |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | three   |          |                         |
|                      | years   |          |                         |
|                      | do not  |          |                         |
|                      | exceed  |          |                         |
|                      | the     |          |                         |
|                      | r       |          |                         |
|                      | equired |          |                         |
|                      | limit,  |          |                         |
|                      | or      |          |                         |
|                      | pr      |          |                         |
|                      | oviding |          |                         |
|                      | average |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for the |          |                         |
|                      | 3-year  |          |                         |
|                      | period  |          |                         |
|                      | without |          |                         |
|                      | pr      |          |                         |
|                      | oviding |          |                         |
|                      | the     |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for     |          |                         |
|                      | each of |          |                         |
|                      | the     |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | three   |          |                         |
|                      | years,  |          |                         |
|                      | is      |          |                         |
|                      | insuff  |          |                         |
|                      | icient. |          |                         |
+----------------------+---------+----------+-------------------------+
| Applicant's          | Same    |          |                         |
| Affiliates           | info    |          |                         |
|                      | rmation |          |                         |
| *See* 47 CFR §       | r       |          |                         |
| 1.2110               | equired |          |                         |
|                      | as      |          |                         |
|                      | di      |          |                         |
|                      | scussed |          |                         |
|                      | above   |          |                         |
+----------------------+---------+----------+-------------------------+
| Applicant's          | Same    |          |                         |
| Controlling          | info    |          |                         |
| Interests *See* 47   | rmation |          |                         |
| CFR §§ 1.2110 and    | r       |          |                         |
| 1.2112.              | equired |          |                         |
|                      | as      |          |                         |
|                      | di      |          |                         |
|                      | scussed |          |                         |
|                      | above   |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | *Ex     |          |                         |
|                      | ample.* |          |                         |
|                      | The     |          |                         |
|                      | ap      |          |                         |
|                      | plicant |          |                         |
|                      | had     |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | of      |          |                         |
|                      | \$      |          |                         |
|                      | 500,000 |          |                         |
|                      | in      |          |                         |
|                      | 1997,   |          |                         |
|                      | \$1,    |          |                         |
|                      | 000,000 |          |                         |
|                      | in      |          |                         |
|                      | 1998,   |          |                         |
|                      | and     |          |                         |
|                      | \$3,    |          |                         |
|                      | 000,000 |          |                         |
|                      | in      |          |                         |
|                      | 1999,   |          |                         |
|                      | with    |          |                         |
|                      | average |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for     |          |                         |
|                      | that    |          |                         |
|                      | time    |          |                         |
|                      | period  |          |                         |
|                      | of      |          |                         |
|                      | \$1,5   |          |                         |
|                      | 00,000. |          |                         |
|                      | The     |          |                         |
|                      | ap      |          |                         |
|                      | plicant |          |                         |
|                      | owns    |          |                         |
|                      | 60% of  |          |                         |
|                      | Company |          |                         |
|                      | A,      |          |                         |
|                      | making  |          |                         |
|                      | Company |          |                         |
|                      | A an    |          |                         |
|                      | af      |          |                         |
|                      | filiate |          |                         |
|                      | of the  |          |                         |
|                      | ap      |          |                         |
|                      | plicant |          |                         |
|                      | under   |          |                         |
|                      | Section |          |                         |
|                      | 1.211   |          |                         |
|                      | 0(c)(4) |          |                         |
|                      | (i)(B), |          |                         |
|                      | and     |          |                         |
|                      | Company |          |                         |
|                      | B owns  |          |                         |
|                      | 52% of  |          |                         |
|                      | the     |          |                         |
|                      | ap      |          |                         |
|                      | plicant |          |                         |
|                      | (making |          |                         |
|                      | Company |          |                         |
|                      | B a     |          |                         |
|                      | cont    |          |                         |
|                      | rolling |          |                         |
|                      | i       |          |                         |
|                      | nterest |          |                         |
|                      | of the  |          |                         |
|                      | app     |          |                         |
|                      | licant, |          |                         |
|                      | as      |          |                         |
|                      | defined |          |                         |
|                      | in Part |          |                         |
|                      | II.C.3  |          |                         |
|                      | of this |          |                         |
|                      | public  |          |                         |
|                      | n       |          |                         |
|                      | otice.) |          |                         |
|                      | The     |          |                         |
|                      | appl    |          |                         |
|                      | icant's |          |                         |
|                      | Exhibit |          |                         |
|                      | C would |          |                         |
|                      | look    |          |                         |
|                      | like    |          |                         |
|                      | this:   |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | Ap      |          |                         |
|                      | plicant |          |                         |
|                      | Name    |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1997    |          | \$ 500,000              |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1998    |          | \$ 1,000,000            |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1999    |          | \$ 3,000,000            |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | Average |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | for the |          | \$ 1,500,000            |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | 3 years |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | Company |          |                         |
|                      | A (an   |          |                         |
|                      | af      |          |                         |
|                      | filiate |          |                         |
|                      | of the  |          |                         |
|                      | app     |          |                         |
|                      | licant) |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1997    |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1998    |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1999    |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | Average |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for the |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | 3 years |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | Company |          |                         |
|                      | B (a    |          |                         |
|                      | cont    |          |                         |
|                      | rolling |          |                         |
|                      | i       |          |                         |
|                      | nterest |          |                         |
|                      | in the  |          |                         |
|                      | app     |          |                         |
|                      | licant) |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1997    |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1998    |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1999    |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | Average |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for the |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | 3 years |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | **T     | **       |                         |
|                      | OTAL:** | combined |                         |
|                      |         | average  |                         |
|                      |         | gross    |                         |
|                      |         | revenues |                         |
|                      |         | for the  |                         |
|                      |         | p        |                         |
|                      |         | receding |                         |
|                      |         | three    |                         |
|                      |         | years of |                         |
|                      |         | the      |                         |
|                      |         | ap       |                         |
|                      |         | plicant, |                         |
|                      |         | the      |                         |
|                      |         | app      |                         |
|                      |         | licant's |                         |
|                      |         | af       |                         |
|                      |         | filiates |                         |
|                      |         | and      |                         |
|                      |         | their    |                         |
|                      |         | con      |                         |
|                      |         | trolling |                         |
|                      |         | int      |                         |
|                      |         | erests** |                         |
+----------------------+---------+----------+-------------------------+

**NOTE:** Each member of an applicant that is applying to bid as a
consortium of 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
or not the applicant or its affiliates has ever been in default on any
Commission licenses or has ever been delinquent on any non-tax debt owed
to any Federal agency. If any of an applicant's controlling interests
holders or their affiliates, as defined by Section 1.2110 of the
Commission's rules (as recently amended in the *Part 1 Fifth Report and
Order*) has ever been in default on any Commission license or has ever
been delinquent on any non-tax debt owed to any Federal agency, the
applicant must include such information as part of the same attached
statement.

**Exhibit E \-- Information Requested of Designated Entities:**
Applicants owned by minorities or women, as defined in 47 C.F.R. §
1.2110(c), or that are rural telephone companies, 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 carefully read 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. *See* 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 in writing to
Margaret Weiner, Chief, Auctions and Industry Analysis Division,
Wireless Telecommunications Bureau, Federal Communications Commission,
445 12^th^ Street, SW, Room 4-A669, Washington, DC 20554 (with a
separate copy mailed to Erik Salovaara, Legal Branch, Auctions and
Industry Analysis Division, Room 4-B457), 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.

# 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. 40.
Applicants need to complete FCC Form 159 carefully, since:

-   Mistakes may affect their bidding eligibility; and

-   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 "358405"
>
> 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) if they have

> 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 "A40U"
>
> 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 "40" (indicating Auction No. 40).

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

ACCESSING THE FCC NETWORK

TO FILE FCC FORM 175

This attachment describes how to access the FCC Network from a system
that is running the Microsoft Windows 95 or Microsoft Windows 98
operating system. This involves configuring dial-up network access and
then performing the dial-up procedure.

> **Note:** Dial-up access to the FCC Network is ***not*** required to
> submit or review FCC Form 175 applications. You can perform those
> functions from the Internet, by pointing your web browser to either
> ***https://wtbwww27.fcc.gov/*** (primary location) or
> ***https://wtbwww37.fcc.gov/*** (secondary location). For more
> details, refer to the *Electronic Filing and Review of the FCC Form
> 175* attachment.

## Conventions

The instructions in this section use the following typographical
conventions:

  ----------- -----------------------------------------------------------
  **bold**    Represents objects on the screen that you click with the
              mouse pointer, including buttons, Internet links, icons,
              tabs, menu items (e.g., **Cancel** button, **Auctions**
              link, **Save** option in the File menu).

  *italic*    Represents field names or areas of a screen (e.g.,
              *Applicant* field, *Selected Licenses* area of a screen).

  ***bold     Represents characters that you must type exactly as they
  italic***   appear in the instructions. For example, if you are
              instructed to type ***https://wtbwww27.fcc.gov/***, you
              should type all of the characters shown in bold italic
              exactly as they are printed.
  ----------- -----------------------------------------------------------

## Accessing the FCC Network to Submit FCC Form 175 Applications

The following section provides the instructions for configuring the
dial-up network access in preparation for submitting FCC Form 175
applications. The subsequent section gives the dial-up procedure.

### Configuring Dial-Up Networking

1\. To start dial-up networking:

> a\. Click the Windows 95/98 **Start** button.
>
> b\. Click the **Programs** option to display the Programs menu.
>
> c\. Click the **Accessories** option to display the Accessories menu.
>
> d\. In Windows 95, click **Dial-Up Networking**.
>
> In Windows 98, click **Communications**, then **Dial-Up Networking**.
>
> If **Dial-Up Networking** is not an option on your Accessories menu,
> you should install it from your Windows 95/98 CD or diskettes.

2\. When the Dial-Up Networking window appears, double-click the **Make
New Connection** icon.

The Make New Connection window appears.

3\. Type ***FCC Auctions 877#*** in the field titled *Type a name for
the computer you are dialing.*

4\. In Windows 95, click the down arrow at the right of the *Select a
modem* field and select your modem from the menu of available modems.

> In Windows 98, click the down arrow at the right of the *Select a
> device* field and select your modem from the menu of available
> devices.
>
> If your modem does not appear on this list, you must install your
> modem driver according to the modem manufacturer installation
> procedures, which are usually described in your modem's user manual.

5\. Click the **Next** button.

6.  Type ***877*** and ***844-2788*** in the *Area Code* and *Telephone
    Number* fields, respectively.

> If you need to dial *9* or some other digit to get an outside line,
> include that digit in the *Area Code* field. For example, you might
> type ***9, 1 877*** in this field.

7\. Verify that the correct country is selected in the *Country code*
field.

> If necessary, click the down arrow at the right of the *Country code*
> field and select the appropriate country from the menu of available
> countries.

8\. Click the **Next** button.

9\. Click the **Finish** button.

> An icon labeled *FCC Auctions 877#* appears in the Dial-Up Networking
> window.

10\. Verify that properties are configured correctly before attempting a
dial-up session. Put the mouse pointer on the icon and click the
**right** mouse button to display a menu. Click **Properties** from the
menu.

11\. Click the **Configure** button. Click the **Options** tab at the
top of the Properties window.

12\. In the *Connection control* area of the Options tab, verify that
*[neither]{.underline}* option is selected. If either option is
selected, click the check box at the left of the option to deselect it.
Then click **OK**.

13\. In Windows 95, click the **Server Type\...** button.

In Windows 98, click the **Server Types** tab at the top of the
Properties window.

14\. In the *Advanced Options* area, verify that **only** *Enable
software compression* is selected. If it is not selected, click the
check box at the left of the option to select it. If either of the other
options is selected, click the check box to deselect it.

15\. In the *Allowed Network Protocols* area, **verify that only
*TCP/IP* is selected**.

> If it is not selected, click the check box at the left of the option
> to select it. If either of the other options is selected, click the
> check box to deselect it.

16\. Click the **TCP/IP Settings** button. On the TCP/IP Settings
window, select *Server assigned IP addresses* at the top and select
*Specify name server addresses* midway down the window.

17\. Type ***165.135.79.95*** as the Primary DNS and
***165.135.241.149*** as the Secondary DNS.

Ensure that these two options are checked:

-   Use IP header compression

-   Use default gateway or remote network

18. Click **OK** on the *TCP/IP Settings* window and the *Server Type*
    window.

19. Close the *Dial-Up Networking* window.

20\. a. Click the Windows 95/98 **Start** button, then click the
**Settings** option to display the Settings menu.

> b\. Click **Control Panel** and then double-click the **Network**
> icon.
>
> c\. Highlight the *TCP/IP Protocol* and click **Properties**. If there
> are multiple TCP/IP protocols, highlight *TCP/IP \--\> Dial-Up
> Adapter* and click **Properties**.
>
> In a Windows 98 environment, a confirmation dialog appears. Read the
> information on the dialog, then click the **OK** button.
>
> d\. Click the **DNS Configuration** tab and then click the **Enable
> DNS** radio button at the top.

e.  Type ***bidder*** in the *Host* box and type ***fcc.gov*** in the
    *Domain* box.

> **Note:** You are limited to three DNS entries. If you already have
> three DNS entries, you must delete two of them before performing the
> next two steps. To do this, click the first entry you want to delete
> and click the **Remove** button. Then click the second entry you want
> to delete and click the **Remove** button again.

f.  Type ***165.135.79.95*** in the DNS Server Search Order box and
    click the **Add** button.

g.  Type ***165.135.241.149*** in the DNS Server Search Order box and
    click **Add** again.

h.  Click **OK** on the TCP/IP Properties windows, then click **OK** on
    the Network

windows.

If you are prompted to restart your computer, click **Yes** to restart,
then begin

the Dial-Up Procedure.

### Dial-Up Procedure

1.  If the Dial-Up Networking window is not currently open, do the
    following:

> a\. Click the Windows 95/98 **Start** button.
>
> b\. Click the **Programs** option to display the Programs menu.
>
> c\. Click the **Accessories** option to display the Accessories menu.
>
> d\. In Windows 95, click **Dial-Up Networking**
>
> In Windows 98, click **Communications**, then **Dial-Up Networking**.

The Dial-Up Networking window appears.

2\. In the Dial-Up Networking window, double-click the **FCC Auctions
877#** icon.

3\. Click the **Connect** button on the window. *[Do not enter User name
or Password]{.underline}*.

> The Connection window appears, indicating the status of your
> connection as your modem dials into the system. This window must
> remain running during your dial-up session. You may minimize the
> window, if you wish.
>
> If your modem fails to establish a connection, please see the
> *Troubleshooting* section.

## Submitting FCC Form 175 Applications

After you have connected to the FCC Network, start your web browser and
point it to either ***https://wtbwww27.fcc.gov/*** (primary location) or
***https://wtbwww37.fcc.gov/*** (secondary location) to obtain the Form
175 Homepage. For more details refer to the attachment titled
*Electronic Filing and Review of the FCC Form 175*.

## Removing the Dial-Up Networking Service

Once you have finished using the dial-up networking service, you can
remove it from your computer, as follows:

1.  Click the Windows 95/98 **Start** button, then click the
    **Settings** option to display the Settings menu.

2.  Click **Control Panel** and then double-click the **Network** icon.

3.  Highlight the *TCP/IP Protocol* and click **Properties**. If there
    are multiple TCP/IP protocols, highlight *TCP/IP \--\> Dial-Up
    Adapter* and click **Properties**.

> In a Windows 98 environment, a confirmation dialog appears. Read the
> information on the dialog, then click the **OK** button.

4.  Click the **DNS Configuration** tab.

5.  Click the DNS Server Search Order box containing ***165.135.79.95***
    to select it, then click the **Remove** button.

6.  Similarly, click the DNS Server Search Order box containing
    ***165.135.241.149*** to select it, then click the **Remove**
    button.

7.  Click **OK** on the TCP/IP Properties windows, then click **OK** on
    the Network windows.

8.  If you are prompted to restart your computer, click **Yes** to
    restart.

9.  Remove the **FCC Auctions 877#** icon from your desktop. That is,
    click the icon with your *right* mouse button and then click the
    **Delete** option in the pull-down menu.

## Troubleshooting

Following are solutions to problems you may encounter using Dial-Up
Networking.

### Modem does not respond

1.  Confirm that all physical connections for the modem are present.

2.  Confirm that the phone line is active by connecting it to a
    telephone and checking for a dial-tone.

3.  Confirm that the correct modem driver is installed for your modem.

### Modem dials but does not connect

1.  Confirm that the number the modem is dialing is correct.

```{=html}
<!-- -->
```
2.  Confirm that the modem prefix, if any, is correct.

***Using a Backup Dial-In Number.*** If the number and prefix are
correct, the 877 number being dialed may be experiencing problems. In
this case, you can reconfigure the dial-up software using an alternate
dial-in number, which is also toll-free. To use the backup number,
perform the *Configuring Dial-Up Networking* procedure again, but this
time make the following changes:

-   In Step 3, type ***FCC Auctions 800#*** in the field titled *Type a
    name for the computer you are dialing.*

-   In Step 6, type ***800*** and ***378-7435*** in the *Area Code* and
    *Telephone Number* fields, respectively.

-   In Step 17, type ***165.135.241.149*** as the Primary DNS.

-   In Step 20f, type ***165.135.241.149*** in the DNS Server Search
    Order box.

### Modem dials and connects, but nothing appears when you enter the Location in the Web browser 

1.  Verify the Dial-Up Networking settings specified in the *Configuring
    Dial-Up* *Networking* section.

2.  Confirm that your Web browser is not using proxies:

```{=html}
<!-- -->
```
a)  On your browser, click the **Preferences** option in the Edit menu.

b)  In the Category area at the left, double-click **Advanced**.

c)  Click the Advanced structure's **Proxies** option.

d)  Click the radio button labeled **Direct connection to the
    Internet**.

e)  Click the **OK** button at the bottom of the window.

### Receive an Internal Server error in the Web browser 

1.  Confirm that the *Location* is set to
    ***https://wtbwww27.fcc.gov/*** or ***https://wtbwww37.fcc.gov/***

2.  On your browser, click the **Preferences** option in the Edit menu.
    In the Category area at the left, double-click **Advanced**. In the
    area at the top, confirm that *Enable Java* and *Enable JavaScript*
    are selected. In the Cookies area, confirm that *Accept all cookies*
    is selected.

## Help

For technical assistance with installing or 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 7 a.m. to 10 p.m. ET, Saturday from 8 a.m. to
7 p.m. ET, and Sunday from 12 noon 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 G

SUMMARY LISTING OF DOCUMENTS FROM THE COMMISSION

AND THE WIRELESS TELECOMMUNICATIONS BUREAU

ADDRESSING APPLICATION OF THE ANTI‑COLLUSION RULES

All of the following documents can be found at FCC web site:
[http://www.fcc.gov/wtb/auctions/collusio/collusio.html]{.underline}

## 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).

## 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).

### Miscellaneous:

Many of these documents can be retrieved from the following Commission
web site:

<http://www.fcc.gov/wtb/auctions/collusio/collusio.html>

These documents may be located by using our search engine (select the
link "search"). All of these documents can be ordered in hard copy for a
fee from the Commission's contractor, International Transcription
Service, Inc. at (202) 314­-3070.

Documents retrieved from the FCC web site are available in various
formats. In order to review a document in its entirety, including
footnotes, it is necessary to access the document in WordPerfect, MS
Word, or Acrobat Reader.

[^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]: *See* "Auction of Licenses for the Lower and Upper Paging Bands
    Scheduled for June 26, 2001; Comment Sought on Reserve Prices or
    Minimum Opening Bids and Other Auction Procedural Issues," *Public
    Notice*, DA 01-593 (rel. March 7, 2001) ("*Auction No. 40 Comment
    Public Notice*").

[^3]: The Blooston Law Paging Group ("BLP Group"), comprised of Cook
    Telecom, Inc.; Lubbock Radio Paging Service, Inc.; Mobilephone of
    Humboldt, Inc.; Mobile Phone of Texas, Inc.; Page-All, LLC;
    Professional Answering Service, Inc.; RCC, Inc. d/b/a Radio Comm
    Co.; Redi-Call Communications Company; Salisbury Mobile Telephone,
    Inc.; SEMA-PHOON, Inc. d/b/a R.A. Communications; Starpage, Inc.,
    and Teletouch Licenses, Inc.; and the Rule Radiophone Service, Inc.
    ("Rule") submitted comments on March 19, 2001, pursuant to the
    procedures outlined in the *Auction No. 40 Comment Public Notice*.
    On March 19, 2001, John Crump d/b/a ACE Communications ("ACE")
    submitted comments dated March 7, 2001 through the Commission's
    Electronic Comment Filing System ("ECFS"). Because the *Auction No.
    40 Comment Public Notice* sought comment on auction procedures
    pursuant to the Commission's pre-existing rules and was not notice
    of rule making, the *Auction No. 40 Comment Public Notice* did not
    establish a docket number for use in ECFS and did not provide for
    filing comments via ECFS. ACE subsequently submitted hard copies of
    its comments. The Bureau has discretion to consider late-filed
    comments. In light of all the circumstances, including the fact that
    other timely filed comments provided sufficient notice to the public
    of ACE's concerns, the Bureau will consider ACE's comments.
    Commenters in future auctions are cautioned to comply with the
    procedures for providing comment set forth in the relevant public
    notice.

[^4]: Reply comments were filed by Conestoga Mobile Systems, Inc.
    ("Conestoga"), Robert F. Ryder d/b/a Radio Paging Service ("Ryder"),
    Business Service Center, Inc. ("BSC"), and Central Communications
    Service Company ("CCSC"), on March 26, 2001*.*

[^5]: Revision of Part 22 and Part 90 of the Commission's Rules to
    Facilitate Future Development of Paging Systems, Implementation of
    Section 309(j) of the Communications Act --- Competitive Bidding, WT
    Docket No 96-18, PP Docket No. 93-253, *Second Report and Order and
    Further Notice of Proposed Rulemaking*, 12 FCC Rcd 2732, 2786 (1997)
    ("*Paging Second Report and Order*"); *see* Revision of Part 22 and
    Part 90 of the Commission's Rules to Facilitate Future Development
    of Paging Systems, Implementation of Section 309(j) of the
    Communications Act -- Competitive Bidding, WT Docket No. 96-18, PR
    Docket No. 93-253, *Memorandum Opinion and Order on Reconsideration
    and Third Report and Order,* 14 FCC Rcd 10030, ¶¶ 1-117, 171-79
    (1999) ("*Second Paging Reconsideration Order*"); Revision of Part
    22 and Part 90 of the Commission's Rules to Facilitate Future
    Development of Paging Systems, Implementation of Section 309(j) of
    the Communications Act -- Competitive Bidding, WT Docket No. 96-18,
    PR Docket No. 93-253, *Memorandum Opinion and Order on
    Reconsideration and Third Report and Order,* 14 FCC Rcd 10030, ¶¶
    1-6, 118-179 (1999) ("*Paging Third Report and Order*").

[^6]: *See, generally, Paging Second Report and Order*.

[^7]: *See, generally, Paging Second Report and Order, Second Paging
    Reconsideration Order, and Paging Third Report and Order*.

[^8]: Amendment of Part 1 of the Commission's Rules---Competitive
    Bidding Procedures, WT Docket No. 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) ("*Part 1 Fifth Report and Order*").

[^9]: Revision of Part 22 and Part 90 of the Commission's Rules to
    Facilitate Future Development of Paging Systems, Implementation of
    Section 309(j) of the Communications Act -- Competitive Bidding, WT
    Docket No. 96-18, PP Docket No. 93-253, *Notice of Proposed
    Rulemaking*, 11 FCC Rcd 3108 (1996) ("*Paging Notice*").

[^10]: Revision of Part 22 and Part 90 of the Commission's Rules to
    Facilitate Future Development of Paging Systems, Implementation of
    Section 309(j) of the Communications Act -- Competitive Bidding, WT
    Docket No. 96-18, PP Docket No. 93-253, *First Report and Order*, 11
    FCC Rcd 16570 (1996) ("*Paging First Report and Order*").

[^11]: Revision of Part 22 and Part 90 of the Commission's Rules to
    Facilitate Future Development of Paging Systems, Implementation of
    Section 309(j) of the Communications Act -- Competitive Bidding, WT
    Docket No. 96-18, PP Docket No. 93-253, *Order on Reconsideration of
    First Report and Order*, 11 FCC Rcd 7409 (1996) ("*First Paging
    Reconsideration Order*").

[^12]: Revision of Part 22 and Part 90 of the Commission's Rules to
    Facilitate Future Development of Paging Systems, Implementation of
    Section 309(j) of the Communications Act -- Competitive Bidding, WT
    Docket No. 96-18, PP Docket No. 93-253, *Memorandum Opinion and
    Order on Reconsideration*, FCC 01-66 (rel. February 27, 2001)
    ("*Third Paging Reconsideration Order*").

[^13]: *See* Amendment of Part 1 of the Commission's Rules ---
    Competitive Bidding Procedures, WT Docket No. 97-82, *Order on
    Reconsideration of the Third Report and Order, Fifth Report and
    Order, and Fourth Further Notice of Proposed Rule Making*, FCC
    00-274 (rel. August 14, 2000) ("*Part 1 Fifth Report and Order*").

[^14]: *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) ("*Nevada
    Wireless*"*)*.

[^15]: *See id*., at 11978.

[^16]: *See* C.F.R. § 1.2104 (c)(3) and (4).

[^17]: *See* 47 C.F.R. § 1.2105(c).

[^18]: *See* "Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules," *Public Notice*, 11 FCC Rcd. 9645
    (1995).

[^19]: *See* 47 C.F.R. § 1.65.

[^20]: *Paging Second Report and Order* at ¶ 58 and *Second Paging
    Reconsideration Order* at ¶ 42-44; 47 C.F.R. § 22.503(I).

[^21]: *Second Paging Reconsideration Order* at ¶ 45.

[^22]: Canada Telecommunication: Coordination and Use of Radio
    Frequencies Above 30 Megacycles per Second, October 24, 1962, as
    amended, June 24, 1965, U.S.-Canada.

[^23]: *See* February 27, 1997 "Protocol Concerning Use of the 929-930
    MHz and 931-932 MHz Bands for Paging Services along the Common
    Border" with Mexico for paging services using 929-932 MHz spectrum
    within 120 kilometers (75 miles) of the common border; *see* *also*
    47 C.F.R. § 22.531(e).

[^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]: The "All" box is optional; the Commission has never required any
    bidder to use it. More importantly, applicants always have the
    opportunity to apply for all licenses listed in the Form 175,
    whether by checking each individual license or through some other
    means, regardless of whether an "All" box is used.

[^28]: BLP Group Comment at 8; Conestoga Reply at 6; *see* Ryder Reply
    at 5, BSC Reply at 4, CCSC Reply at 4.

[^29]: *Benkelman v. FCC*, 220 F.3d 601, 606 (D.C. Cir. 2000)
    ("...section 309(j)(6)(E) \[of the Communications Act\]...imposes an
    obligation only to minimize mutual exclusivity 'in the public
    interest,' 47 U.S.C. § 309(j)(6)(E), and 'within the framework of
    existing policies,' *DIRECTV \[v. FCC\]*, 110 F.3 \[816,\] 828
    \[D.C.Cir. 1997\].")

[^30]: Section 1.2105 requires the disclosure on the short-form of
    applicant ownership information as set forth in Section 1.2112. Note
    that both of these sections were revised in the *Part 1 Fifth Report
    and Order*.

[^31]: *See* Section 1.B.2, above.

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

[^33]: *See Paging Second Report and Order* at ¶ 118.

[^34]: *See Second Paging Reconsideration Order* at ¶ 98; *see also* 47
    C.F.R. §§ 1.2110, 22.217 and 22.223.

[^35]: *See* 47 C.F.R. §§ 1.2110(f), 22.217 and 22.223.

[^36]: *See* 47 C.F.R. §§ 1.2110(f), 22.217(a) and 22.223(b)(1)(ii). In
    the service specific rule making governing paging service licenses
    for sale in Auction No. 40, the Commission declined to adopt bidding
    credits for entities with attributable average gross revenues of
    more than \$15 million. *See Third Paging Reconsideration Order* at
    ¶¶ 10-12; *cf*. 47 C.F.R. § 1.2110(f)(2)(iii) (applicable rule in
    absence of service specific rules).

[^37]: *See* 47 C.F.R. §§ 1.2110(f), 22.217(a) and 22.223(b)(1)(i).

[^38]: The eligibility for small business preferences will be determined
    based on the attribution rules in effect at the short-form
    application deadline. *Id.* at ¶ 67. *See* *Part 1 Fifth Report and
    Order*, 65 Fed. Reg. 52,323 (August 29, 2000) (summary).

[^39]: *Part 1 Fifth Report and Order*, ¶ 78.

[^40]: *See Part 1 Third Report and Order* at 382, ¶ 5; *Part 1 Fifth
    Report and Order,* ¶ 78.

[^41]: 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., 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, LP, For Authority to Construct and
    Operate Local Multipoint Distribution Services in Multiple Basic
    Trading Areas, *Memorandum Opinion and Order*, 13 FCC Rcd. 18709
    (rel. September 23, 1998).

[^42]: *See* 47 C.F.R. §§ 1.2105, 22.217, and 22.223.

[^43]: 47 C.F.R. § 1.2105(a)(2)(x).

[^44]: 47 C.F.R. § 1.2105(a)(2)(xi).

[^45]: *See Part 1 Fifth Report and Order*, ¶ 42. We note that if any
    entity whose gross revenues are required to be attributed to the
    applicant under 47 C.F.R. § 1.2110 is in default on any Commission
    licenses or is delinquent on any non-tax debt owed to any Federal
    agency at the deadline for filing FCC Form 175 application for
    Auction No. 40, the applicant will not be able to make the
    certification required by 47 C.F.R. § 1.2105(a)(2)(x) and will not
    be eligible to participate in the auction.

[^46]: 47 C.F.R. § 1.2106(a).

[^47]: *See* 47 C.F.R. § 1.2105(a).

[^48]: *See* 47 C.F.R. § 1.2105. *See also* Two Way Radio of Carolina,
    Inc., *Memorandum, Opinion and Order*, 14 FCC Rcd. 12035 (1999).

[^49]: 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).

[^50]: *Part 1 Fifth Report and Order*, ¶¶ 40-42; 47 C.F.R. § 1.2106(a);
    *see* 47 C.F.R. §§1.2105(a)(2)(xi)

[^51]: *See Auction No. 40 Comment Public Notice* at 5.

[^52]: *See Auction No. 40 Comment Public Notice* at 4.

[^53]: BLP Group Comment at 3; Conestoga Reply at 3.

[^54]: *Auction No. 40 Comment Public Notice* at 4.

[^55]: BLP Group Comments at 3; Conestoga Reply at 2.

[^56]: *Id*. at 5.

[^57]: BLP Group Comments at 3; Conestoga Reply at 3.

[^58]: *Id*. at 5.

[^59]: BLP Group Comments at 3; Conestoga at 3.

[^60]: *Id*. at 5.

[^61]: *Id*. at 6.

[^62]: BLP Group Comments at 3; Conestoga Reply at 3.

[^63]: *Id*. at 12.

[^64]: *Id.* at 13.

[^65]: *Id*. at 6.

[^66]: BLP Group Comment at 3; Conestoga Reply at 2.

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

[^68]: *See* Amendment of Part 1 of the Commission's Rules ---
    Competitive Bidding Procedures, WT Docket No. 97-82, *Third Report
    and Order and Second Further Notice of Proposed Rule Making,* 13 FCC
    Rcd. 375, 455-456 ¶ 141 (1997)*(*"*Part 1 Third Report and
    Order*"*).*

[^69]: *Id*.

[^70]: *Id*.

[^71]: *Auction No. 40 Comment Public Notice* at 8.

[^72]: *Id*. at 9.

[^73]: BLP Group Comment at 4; Conestoga Reply at 3; *see also* Ryder
    Reply at 2 (accepting proposed minimum opening bid amounts for some
    but not all licenses); CCSC Reply at 2 (same); BSC Reply at 2
    (same).

[^74]: BLP Group Comment at 5-7; Conestoga Reply at 3-5; Ryder Reply at
    1-4, BSC Reply at 1-3; CCSC Reply at 1-3.

[^75]: *Id*.

[^76]: *See, generally*, Rule Comment and ACE Comment.

[^77]: Rule Comment at 2.

[^78]: BLP Group Comment at 7.

[^79]: Rule Comment at 3.

[^80]: ACE Comment at 2.

[^81]: Conestoga Reply at 4.

[^82]: Ryder Reply at 3; BSC Reply at 3; CCSC Reply at 3.

[^83]: *See* Ryder Reply at 3-4.

[^84]: *See* 47 C.F.R. § 1.1102.

[^85]: *See* 47 C.F.R. § 1.1107(c).

[^86]: Due to rounding, the defined increment only will approximate the
    percentage being used. The following formula uses twenty percent
    (20%) to calculate the actual dollar amount of the defined increment
    for licenses where there is a standing high bid. Defined increment =
    Rounded (Standing High Bid\*1.2) -- Standing High Bid. If there is
    no standing high bid, the minimum opening bid will be substituted
    for the standing high bid. If a different percentage is used in the
    calculation, the factor will be adjusted accordingly. For example,
    if thirty percent (30%) is used in place of twenty percent (20%),
    the factor will be 1.3 rather than 1.2. The product of the standing
    high bid (or minimum opening bid) and the factor will be rounded to
    the nearest \$100 for results below \$10,000 and to the nearest
    \$1,000 for amounts above \$10,000. For further examples, see
    *Auction No. 40 Comment Public Notice* at 10.

[^87]: *Auction No. 40 Comment Public Notice* at 9-11.

[^88]: BLP Group Comment at 8; Conestoga Reply at 6.

[^89]: *Id*.

[^90]: *Auction No. 40 Comment Public Notice* at 7.

[^91]: BLP Group Comment at 4 (random number generator to break ties a
    "reasonable approach" in light of Internet bidding).

[^92]: *Auction No. 40 Comment Public Notice* at 11-12.

[^93]: The Bureau retains the discretion to lower the minimum acceptable
    bid on such licenses in the next round or in later rounds.

[^94]: *See* 47 C.F.R. §§ 1.2104(g), 1.2109.

[^95]: *See* *Part 1 Fifth Report and Order*, ¶ 15; 47 C.F.R. §
    1.2104(g)(1).

[^96]: *See Part 1 Fifth Report and Order*, ¶ 15.

[^97]: BLP Group Comment at 3-4.

[^98]: *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); and "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).