DA 02-355

February 15, 2002

**NEW ANALOG TELEVISION STATIONS**

**AUCTION CLOSES**

**Winning Bidders Announced**

Down Payments Due March 4, 2002

FCC Forms 301 Due March 20, 2002

*Ten-Day Petition to Deny Period*

**Report No. AUC-02-82-F (Auction No. 82)**

On February 13, 2002, the Federal Communications Commission completed
the auction of four construction permits for New Analog Television
Stations ("Auction No. 82"), raising (in net high bids) a total of
\$5,025,250 for the U.S. Treasury. Three winning bidders won a total of
four construction permits in this auction.

This Public Notice provides detailed information concerning winning
bidders, down payments, bid withdrawal payments and/or deposits, FCC
Forms 301, requests for rule waivers, and licensing matters. Key
information appears in the following attachments:

**Attachment A:** "Round Results, High Bids" lists winning bidders, and
both the gross and net high winning bid amounts.

> **Attachment B:** "Bidder Payment/Refund Report" lists down payments
> and withdrawal bid payments owed by winning bidders, if any.

A copy of this Public Notice will be sent via overnight mail to each
winning bidder.

## Down Payments

The Commission's rules require that within ten business days after the
release of this Public Notice, in this case before **6:00 p.m. ET on
March 4, 2002**, winning bidders in Auction No. 82 must have on deposit
with Mellon Bank in Pittsburgh, Pennsylvania, enough funds to cover 1)
down payments on winning bids, and 2) payments for withdrawn bids, if
applicable. If a winning bidder's upfront payment is not sufficient to
meet both of these requirements, the winning bidder must deposit
additional funds.[^1]

The amount now due from each winning bidder, if any, is set out in the
last column of **Attachment B**. *Note that a payment and FCC Form 159
are necessary only if a winning bidder's upfront payment **does not**
cover the required total of down payments and withdrawn bid payments (as
reflected in Attachment B).* Each winning bidder's down payment must be
a total of any withdrawal payments (if applicable) plus twenty (20)
percent of its net winning bid(s).

## Final Payments

After the termination of the pleading cycle for petitions to deny (*see*
47 C.F.R. § 73.5006), the Commission will issue a public notice
announcing that it is prepared to award the construction permits to the
winning bidders, if the application is uncontested.[^2] Within ten
business days after the date of that public notice, the uncontested
winning bidders will be required to make full payment of the balance of
their winning bids. *See* 47 C.F.R. §§ 1.2109 and 73.5003(c). Broadcast
construction permits will be granted only after the full and timely
payment of winning bids and any applicable late fees, in accordance with
Section 1.2109(a). *See* 47 C.F.R. §1.2109(a).

## Method of Payment

All payments must be in U.S. dollars and made in the form of a wire
transfer. No personal checks, credit card payments, or other forms of
payment will be accepted. All payments must be accompanied by a
completed FCC Remittance Advice Form (FCC Form 159).[^3] If applicable,
a partially completed copy of the FCC Form 159 will be sent along with
this Public Notice to facilitate submission of the correct down payment.
Questions regarding FCC Form 159 should be addressed to Tim Dates or
Gail Glasser at 202-418-1995**. Please note, however, that winning
bidders are ultimately responsible for insuring the verification and
submission of the correct down payment from their bank to Mellon Bank**.

**Wire transfers for down payments must be received by Mellon Bank by
6:00 p.m. ET, on March 4, 2002**. Winning bidders should coordinate with
their bankers ahead of time regarding their wire transfers, and allow
sufficient time for the wire transfer to be initiated and completed
prior to the deadline.

To submit funds by wire transfer, winning bidders will need the
following information:

> ABA Routing Number: 043000261
>
> Receiving Bank: Mellon Pittsburgh
>
> BNF: FCC Account Number 910-6106
>
> OBI Field: (Skip one space between each information item) "AUCTIONPAY"
>
> TAXPAYER IDENTIFICATION NO.: (same as FCC Form 159, Block 12)
>
> PAYMENT TYPE CODE: (enter "A82D")
>
> FCC CODE 1: (same as FCC Form 159, Block 28A: "82")
>
> PAYOR NAME: (same as FCC Form 159, Block 2)
>
> LOCKBOX NO.: 358850

Winning bidders must fax a completed FCC Form 159 to Mellon Bank at
412-209-6045 at least one hour before placing the order for the wire
transfer (but on the same business day).

Proper completion of the FCC Form 159 is critical to ensuring correct
credit of bidder deposits. **Winning bidders must use the same Taxpayer
Identification Number (TIN) / FCC Registration Number (FRN) used on
their FCC Form 175.**[^4] Questions concerning the calculation and
submission of down payments should be directed to Gail Glasser at
202-418-1995.

> **D. Default and Disqualification Payments**

The Commission imposes payments on bidders that withdraw high bids
during the course of an auction, those that default on payments due
after an auction closes, or those that are disqualified. *See* 47 C.F.R.
§§ 1.2104(g), 1.2109. In Auction No. 82 there were no bid withdrawals
during the course of the auction. If a high bidder defaults or is
disqualified after the close of the auction, the defaulting bidder will
be subject to the following payment obligations: 1) the difference
between the high bid and the amount of the winning bid the next time the
construction permit is offered by the Commission, and 2) an additional
payment equal to three (3) percent of the subsequent winning bid or
three (3) percent of the defaulted bid, whichever is less. Where a
bidding credit applies to the winning bid in either the original or the
subsequent auction, the calculation of the three percent payment is
based on the smaller of the two gross bids or smaller of the two net
bids, whichever basis (gross or net) was used to figure the first
component. Thus, if the difference between the gross bids is less than
the difference between the net bids, the three percent payment will be
computed on the lower of the gross bids. If the difference between the
net bids is less than or equal to the difference between the gross bids,
the three percent payment will be computed on the lower of the net bids.
However, if both the difference between the gross bids and the
difference between the net bids are less than or equal to zero, the
three percent payment will be computed on the lower of the net bids.

If a winning bidder fails to remit the required down payment within ten
(10) business days after the Commission has released this Public Notice,
in this case by March 4, 2002, the bidder will be deemed to have
defaulted, its application will be dismissed, and it will be liable for
a default payment as described above. In such event, the Commission, at
its discretion, may either auction the construction permit(s) to
existing or new applicants, or offer it to the other highest bidders (in
descending order) at their final bids. *See* 47 C.F.R. § 1.2109(b).

If a winning bidder fails to pay the balance of its winning bids in a
lump sum by the applicable deadline as specified by the Commission, it
will be allowed to make payment within ten (10) business days after the
payment deadline provided that it also pays a late fee equal to five (5)
percent of the amount due. When a winning bidder fails to pay the
balance of its winning bid plus late fee by the late payment deadline,
it is considered to be in default on its construction permit(s) and
subject to the applicable default payments.

Construction permits will be awarded upon the full and timely payment of
winning bids and any applicable late fees. *See* 47 C.F.R. §1.2109(a). A
winning bidder that is found unqualified to be a licensee, fails to
remit the balance of its winning bid in a timely manner, or defaults or
is disqualified for any reason after having made the required down
payment, will be deemed to have defaulted and will be liable for the
payment set forth in Section 1.2104(g)(2).[^5] In such event, the
Commission may either auction the construction permit(s) to existing or
new applicants or offer it to the other highest bidders (in descending
order) at their final bids. *See* 47 C.F.R. § 1.2109(c).

Additionally, bidders that are found to have violated the antitrust laws
or the Commission's rules in connection with their participation in the
competitive bidding process may be subject, in addition to any other
applicable sanctions, to forfeiture of their upfront payment, down
payment, or full bid amount, and may be prohibited from participating in
future auctions. *See* 47 C.F.R. § 1.2109(d).

## E. Refund of Excess Upfront Payments  {#e.-refund-of-excess-upfront-payments .unnumbered}

Upfront monies on deposit that are in excess of the required down
payment, withdrawal and/or default payment amounts will be refunded to
the payer of record as identified on FCC Form 159 promptly upon receipt
of the necessary wire transfer instructions. Such instructions must be
faxed to Gail Glasser at 202-418-2843. Any questions concerning refunds
should be referred to Gail Glasser or Tim Dates at 202-418-1995.

## F. FCC Form 301  {#f.-fcc-form-301 .unnumbered}

***Deadline For Filing:*** By **6:00 p.m. ET on March 20**, **2002**
winning bidders must submit a completed FCC Form 301 covering each
construction permit for which they were the winning high bidder.[^6]

***Where and How to File:*** The completed FCC Form 301 must be filed
electronically via the Commission's Consolidated Database System
(CDBS).[^7] Paper versions of the FCC Form 301 (March 2001 version) will
not be accepted for filing unless accompanied by an appropriate request
for waiver of the electronic filing requirement. Users can access the
electronic filing system *via* the Internet from the Mass Media Bureau's
Web Site at:

**http: //www.fcc.gov/mmb**

Instructions for use of the electronic filing system are available in
the CDBS User's Guide which can be acessed from the electronic filing
web site. For technical assistance with electronic filing, call the Mass
Media Bureau Help Desk at (202) 418-2MMB.

**Failure to timely file FCC Form 301 will result in default. Late-filed
applications will not be accepted without a showing of good cause.**[^8]

## G. Maintaining Accuracy of Information {#g.-maintaining-accuracy-of-information .unnumbered}

After the auction closes, applicants are required to make all changes by
filing FCC Form 301.

Applicants are no longer required to maintain accuracy and completeness
of information furnished on their FCC Form 175 and exhibits.

## H. Application Processing and License Grant {#h.-application-processing-and-license-grant .unnumbered}

Pursuant to 47 C.F.R. § 1.2108(b) and 73.5006, and the Balanced Budget
Act of 1997,[^9] interested parties will have **ten (10) days** to file
petitions to deny after the Commission releases a public notice
announcing the FCC Form 301 is acceptable for filing. An applicant may
file an opposition to any petition to deny within **five (5) business
days** after the time for filing petitions to deny has expired. *See* 47
C.F.R. §1.2108(c). The petitioner may file a reply to such opposition
within **five (5) business days** after the time for filing oppositions
has expired. *See* 47 C.F.R. §1.2108(c). If the Commission determines an
applicant is qualified and there is no substantial and material issue of
fact concerning that determination, the Commission will issue a public
notice announcing that it is prepared to grant the application
conditioned upon the full and timely payment of the remaining balance of
the applicant's winning bid. Once the Commission has received full
payment of the applicant's winning bid, it will issue a public notice
announcing grant of the construction permit (or permits) to the
applicant.

*Frivolous Pleadings.* The Commission reminds parties to our proceedings
and their attorneys that the Commission intends to use its authority
fully to deter the filing of frivolous pleadings.[^10]

## I. Anti-collusion Rules {#i.-anti-collusion-rules .unnumbered}

To ensure the competitiveness of the auction process, the Commission's
rules prohibit competing applicants from communicating with each other
during the auction about bids, bidding strategies, or settlements. As
explained more fully in the *Auction No. 82 Procedures Public
Notice*,[^11] this prohibition began with the filing of short-form
applications and ends on the down payment due date, or March 4,
2002.[^12] The prohibition ends on the down payment due date whether or
not a high bidder must supplement its upfront payment to cover its down
payment. Applicants certified their compliance with Section 1.2105(c)
when their FCC Form 175 short-form applications were signed.

## J. Return of SecurID Cards {#j.-return-of-securid-cards .unnumbered}

Bidders are encouraged to return their SecurID cards to the FCC by
**March 4, 2002** for recycling. A pre-addressed, stamped envelope is
provided in this mailing that bidders should use to return the cards now
that the auction is over. Please note that each SecurID card is tailored
to a specific auction, therefore, the cards issued for this auction will
not work for future auctions.

\* \* \* \* \*

**For further information, contact**

+-------------------------------+--------------------------------------+
| News Media:                   | Meribeth McCarrick at 202-418-0654   |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Technical Support Hotline:    | Technical Support Personnel at       |
|                               |                                      |
|                               | 202-414-1250 (V)                     |
|                               |                                      |
|                               | or 202-414-1255 (text telephone      |
|                               | (TTY))                               |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Office of the Managing        | Gail Glasser or Tim Dates            |
| Director                      |                                      |
|                               | at 202-418-1995                      |
| Auctions Accounting Group     |                                      |
|                               |                                      |
| (Payment, FCC Form 159 and    |                                      |
| refund questions)             |                                      |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Mass Media Bureau,            | Shaun Maher, Attorney, at            |
|                               | 202-418-2324                         |
| (FCC Form 301)                |                                      |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Wireless Telecommunications   | Linda Sanderson, Project Manager at  |
| Bureau, Auctions and Industry | 717-338-2888                         |
| Analysis Division             |                                      |
| (Auction-related questions)   | Kenneth Burnley, Attorney, at        |
|                               | 202-418-0660                         |
+-------------------------------+--------------------------------------+

\- FCC -

[^1]: *See* 47 C.F.R. §§ 1.2104(g),1.2107(b). In the event a bidder has
    withdrawn a bid(s) and is subject to a bid withdrawal payment(s),
    the bidder's upfront payment will be first applied to satisfy the
    withdrawal payment(s) before being applied toward its down payment.

[^2]: In cases where petitions to deny are filed, no final payment
    public notice shall be issued for the associated construction
    permits until the petitions have been reviewed.

[^3]: Copies of the FCC Form 159 may be obtained by calling the
    Commission's Forms Distribution Center at 1-800-418-3676 (outside
    Washington, D.C.) or 202-418-3676 (in the Washington D.C. area).
    Copies of the FCC Form 159 can also be obtained via the Internet
    (http://www.fcc.gov/formpage.html) or by Fax-On-Demand
    (202-418-2830).

[^4]: If, subsequent to final submission of its FCC Form 175, a bidder
    has provided the Commission with a written correction of its
    Taxpayer Identification Number, the bidder should use the corrected
    number.

[^5]: 47 C.F.R. § 1.2104(g)(2).

[^6]: 47 C.F.R. § 73.5005(a).

[^7]: *See* "Mass Media Bureau Implements Mandatory Electronic Filing of
    FCC Forms 301, 314, and 315," *Public Notice*, 16 FCC Rcd 3989 (MMB
    2001).

[^8]: 47 C.F.R. § 1.2107(c).

[^9]: Pub. L. 105-33, 111 Stat. 251 (1997).

[^10]: *See* Commission Taking Tough Measures Against Frivolous
    Pleadings, *Public Notice*, 11 FCC Rcd 3030 (1996).

[^11]: *See* Auction No. 82 Construction Permits for New Analog
    Television Stations Scheduled for February 5, 2002; Notice and
    Filing Requirements, Minimum Opening Bids, Upfront Payments and
    Other Procedural Issues, *Public Notice*, DA 01-2882 (rel. December
    13, 2001), 67 Fed. Reg. 1760 (January 14, 2002) ("*Auction No. 82
    Procedures Public Notice*").

[^12]: *Auction No. 82 Procedures Public Notice* at 4.