# April 9, 2004

# DA 04-989

# 

#### **Via Certified Mail**

**[Return Receipt Requested]{.underline}**

Mr. Douglas I. Brandon

Ms. Cathleen A. Massey

AT&T Wireless PCS, Inc.

1150 Connecticut Avenue, NW

Fourth Floor

Washington, DC 20036

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

Dear Mr. Brandon and Ms. Massey:

AT&T Wireless PCS, Inc. ("AT&T"), a participant and high bidder in
Auction No. 11, withdrew its high bid on license BTA155E during the
course of the auction.[^1] Auction No. 22, the subsequent auction for
license BTA155E, has closed.[^2] Therefore, in accordance with the
Commission's rules, we are now able to calculate AT&T's final withdrawal
payment for this license.

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the difference between the amount of the withdrawn bid and the amount of
the subsequent winning bid.[^3] If a high bid is withdrawn on a license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of the net amount of the withdrawn bid.[^4] This payment amount is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than the withdrawn bid amount, then no final bid withdrawal payment will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the winning bid for that license is less than the bidder's withdrawn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withdrawn bid and the subsequent net winning bid, or the difference
between the bidder's gross withdrawn bid and the subsequent gross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

With respect to AT&T's bid withdrawal on its high bid for license
BTA155E in Auction No. 11, because this was sold at Auction No. 22 the
Commission is now able to assess the full amount of the final bid
withdrawal payment for this license.[^8] As shown in Attachment A, in
Auction No. 22, the winning bid amount of \$881,000 for license BTA155E
was less than AT&T's withdrawn bid amount of \$1,902,000.[^9] In
accordance with Sections 1.2104(g)(1) of the Commission's rules, AT&T is
assessed a final bid withdrawal payment of \$1,021,000 in connection
with license BTA155E.[^10] Because this license was unsold at the close
of Auction No. 11, an interim bid withdrawal payment equal to three
percent of the withdrawn bid was deducted from any upfront payments or
down payments on deposit in AT&T's account with the Commission.[^11] The
amount of this interim bid withdrawal payment is \$57,060.[^12]
Therefore, in accordance with Section 1.2104(g)(1), after applying the
interim bid withdrawal payment of \$57,060 to the final bid withdrawal
payment obligation of \$1,021,000, AT&T owes an outstanding balance of
\$963,940 in connection with license BTA155E, on which AT&T withdrew a
high bid during Auction No. 11.

AT&T is in debt to the United States in the amount of \$963,940, payable
in full, immediately, and without further demand. As permitted under 31
U.S.C. § 3717, the debt is subject to interest, penalties, and
administrative costs, and interest accrues from the date of this letter,
which is also its mailing date. AT&T, the debtor, may avoid payment of
the interest if it tenders to the Commission full payment within 30 days
of the date of the letter. Moreover, the debt is subject to an
additional charge to cover the cost of processing and handling of
delinquent debts, and a penalty charge in the amount permitted by law.
The penalty charge for delinquent debt payments permitted by 31 U.S.C. §
3717 currently is 6 percent per year for the failure to pay any part of
the debt more than 90 days past due.

Accordingly, IT IS ORDERED that, pursuant to Sections 4(i) and 309 of
the Communications Act of 1934 as amended, 47 U.S.C. §§ 154(i), 309, and
Section 1.2104(g) of the Commission's Rules, 47 C.F.R. § 1.2104(g), AT&T
Wireless PCS, Inc. IS ASSESSED a final bid withdrawal payment of
\$1,021,000 for license BTA155E, as computed in Attachment A.

IT IS FURTHER ORDERED, that pursuant to 47 C.F.R §§ 1.2104 and 1.2106,
AT&T Wireless PCS, Inc.'s interim bid withdrawal payment of \$57,060
will be applied towards the final bid withdrawal payment of \$1,021,000,
leaving AT&T Wireless PCS, Inc. with a debt to the Commission of
\$963,940.

It is FURTHER ORDERED that AT&T Wireless PCS, Inc.'s debt of \$963,940
be paid immediately, in accordance with the payment instructions in
Attachment B within 30 days of the date of this letter, and if it is
unpaid 30 days of the date of this letter, interest will accrue from the
date of this letter along with penalties and administrative costs
permitted by 31 U.S.C. § 3717.

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

Sincerely,

> Rita Cookmeyer,
>
> Financial Policy Analyst
>
> Auctions and Spectrum Access Division
>
> Wireless Telecommunications Bureau

cc: David C. Jatlow

> AT&T Wireless Services, Inc.
>
> 1150 Connecticut Avenue, NW

Fourth Floor

Washington, DC 20036

## [ATTACHMENT A]{.underline}

Broadband PCS Service, Blocks D, E, and F

Spectrum License Auction

**Multi-Auction Bid Withdrawal Payment Report**

+------+-----------+--------+--------+-----------+---------+---------+
| Lic  | Market    | A      | A      | Auction   | Interim | Final   |
| ense |           | uction | uction | 22        | Bid     | Bid     |
|      | De        | 11     | 22     |           | Wit     | Wit     |
| Nu   | scription |        |        | D         | hdrawal | hdrawal |
| mber |           | AT&T   | CPAN,  | ifference | Payment | Payment |
|      |           |        | Inc.   |           |         |         |
|      |           | Wit    |        | Between   | Amount  | Amount  |
|      |           | hdrawn | Net    | Withdrawn |         |         |
|      |           |        | Bid    | Net Bid   |         |         |
|      |           | Net    | Amount | Amount    |         |         |
|      |           | Bid    |        | and Final |         |         |
|      |           | Amount |        | Net Bid   |         |         |
|      |           |        |        | Amount    |         |         |
+------+-----------+--------+--------+-----------+---------+---------+
| B    | Ft.       | \$1,9  | \$8    | \$        | \       | \$      |
| 155E | Wayne, IN | 02,000 | 81,000 | 1,021,000 | $57,060 | 963,940 |
+------+-----------+--------+--------+-----------+---------+---------+

**[ATTACHMENT B]{.underline}**

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

**PAYMENT INSTRUCTIONS**

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

ABA Routing Number: 043000261

Receiving Bank: Mellon Pittsburgh

BNF: FCC/Account #911-6106

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

"AUCTIONPAY"

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

[PAYMENT TYPE CODE (enter "APEN") same as FCC Form 159, Block
24A]{.mark}

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

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

LOCKBOX No.: 358850

A completed FCC Remittance Advice Form [(FCC Form 159, Version
2/03)]{.mark} must accompany payments. On the same business day that the
applicant submits payment to Mellon Bank, the applicant must submit a
completed FCC Form 159 via facsimile at (412) 209-6045, at least
one-hour prior to placing the order for the wire transfer. The specified
debt is due and payable to the United States immediately and without
demand, and it is subject to interest, penalties, and additional
administrative costs. Interest accrues from the date of the ORDER;
however, to avoid the payment of charges (i.e., interest, penalties, and
administrative costs) and enforced collection, full payment must be made
and received within 30 days from the date of the ORDER. Debtor's failure
to make complete timely payment will result in assessment of such
charges permitted by 31 U.S.C. § 3717.

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

[^1]: License BTA155E (Ft. Wayne, IN) was not sold in Auction No. 11 and
    pursuant to our rules an interim withdrawn bid payment of \$57,060
    was assessed against AT&T for this license. "D, E and F Block
    Auction Closes," *Public Notice*, DA 97-81, 1997 WL 20711 (rel. Jan
    15, 1997) ("*Auction No. 11 Winning Bidders Public Notice*"). AT&T
    also withdrew high bids on the following licenses: BTA039E (Benton
    Harbor, MI); BTA169E (Grand Rapids, MI); BTA294E (Michigan City-La
    Porte, IN); and BTA379E (Rochester, NY), all of which were sold for
    lower bids in Auction No. 11. Accordingly, the Commission assessed
    final withdrawal payments against AT&T totaling \$276,085.00 for
    those licenses. *Id*.

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

[^3]: 47 C.F.R. §§ 1.2104(g)(1), 24.704(a)(1) (1997); *Auction No. 11
    Winning Bidders Public Notice*, at 3.

[^4]: *Auction No. 11 Winning Bidders Public Notice*, at 3 (citing
    Implementation of Section 309(j) of the Communications
    Act---Competitive Bidding, PP Docket No. 93-253, *Fifth Report and
    Order*, 9 FCC Rcd 5532, 5563 at n. 51 (1994); C.H. PCS, Inc., 11 FCC
    Rcd 14495 (1996) (requiring a three percent deposit).

[^5]: 47 C.F.R. § 1.2106(d) and (e); *Auction No. 11 Winning Bidders
    Public Notice*, at 3.

[^6]: 47 C.F.R. § 1.2104(g)(1); *Auction No. 11 Winning Bidders Public
    Notice*, at 3.

[^7]: 47 C.F.R. § 1.2104(g)(1); *Auction No. 11 Winning Bidders Public
    Notice*, at 3.

[^8]: *See Auction No. 11 Winning Bidders* *Public Notice*, at 3, and at
    Attachment B1.

[^9]: *See* Attachment A to this letter, which calculates the final bid
    withdrawal payments.

[^10]: 47 C.F.R. §§ 1.2104(g)(1).

[^11]: 47 C.F.R. §§ 1.2104(g)(1); *Auction No. 11 Winning Bidders Public
    Notice*, at 3.

[^12]: Attachment A.