DA 07-3523

**[Via Certified Mail, Return Receipt Requested]{.underline}**

Golden Arrow Paging, Inc.

c/o Foster Charitable Foundation, Inc.

Attn: David L. Greenwald

8200 S. Quebec #158

Englewood, CO 80112

**Re: Interim Default Payment Obligations for Auction No. 40**

Dear Mr. Greenwald:

This letter provides notice of the interim default payment obligations
for Golden Arrow Paging, Inc. ("Golden Arrow") with respect to its
defaults arising out of a Federal Communications Commission
("Commission") auction of Lower and Upper Paging Band licenses ("Auction
No. 40"). Golden Arrow, a participant in Auction No. 40, was the winning
bidder on twenty-two licenses.[^1] As described below, Golden Arrow
defaulted on its final payment obligations for its winning bids for all
twenty-two licenses. Accordingly, this letter sets forth the interim
default payment obligations of Golden Arrow for its defaulted bids and
dismisses Golden Arrow's Form 601 long-form applications.[^2]

Under the Commission's Rules ("Rules"), a bidder who fails to timely
remit the required down or final payment for a license for which it was
the high bidder is in default, its application is dismissed, and it is
subject to a default payment.[^3] The default payment has two
components. The first component is the difference between the bidder's
net defaulted bid and the subsequent net winning bid, or the difference
between the bidder's gross defaulted bid and the subsequent gross
winning bid, whichever is less, the next time the license is offered by
the Commission (so long as the subsequent winning bid is less than the
defaulted bid).[^4] This component of the default payment cannot be
determined until after the licenses on which Golden Arrow defaulted are
re-auctioned. The second component of the default payment is an
additional payment equal to three percent (3%) of the defaulter's bid,
or the subsequent winning bid, whichever is less.[^5] If either bid
amount is subject to a bidding credit, the three percent (3%) will be
calculated using the same bid amounts and basis (net or gross bids) as
in the first component of the default payment.[^6] In the event that the
subsequent winning bid is greater than or equal to the defaulted bid,
the total default payment is equal to three percent (3%) of the
defaulted bid.[^7] Until the close of the subsequent auction, the
Commission cannot determine the full amount of the default payment that
is owed. Therefore, the Commission assesses an interim payment amounting
to between three and twenty percent of the net winning bid.[^8] The
remainder, if any, is assessed once a subsequent winning bid for the
defaulted license is established.

On January 31, 2007, the Wireless Telecommunications Bureau ("Bureau")
announced that it was prepared to grant Golden Arrow's applications for
the twenty-two licenses from Auction No. 40.[^9] The Bureau also
announced that by no later than February 14, 2007, Golden Arrow was
required to submit its final payment for the licenses.[^10] If the
payment was not received by that date, Golden Arrow had until March 1,
2007, to submit the payment plus a late fee equal to five percent of the
amount due.[^11] Golden Arrow's net winning bids for the twenty-two
licenses totaled \$59,000.00.[^12] Under the Rules, winning bidders in
Auction No. 40 were required to have on deposit enough funds to cover
the twenty (20) percent down payment on their winning bids, and payments
for withdrawn bids, within ten business days of the release of the
*Closing Public Notice*.[^13] Golden Arrow had sufficient funds on
deposit from its upfront payment to cover its withdrawal payment and the
down payment for all of the licenses.[^14] The Bureau applied Golden
Arrow's down payment for the licenses in the amount of \$11,800.00 and
the remaining upfront payment on deposit in the amount of \$5,650.00
toward the final payment due.[^15] Golden Arrow was required to pay the
remaining balance of \$41,550.00. Golden Arrow failed to make the
payment by the March 1, 2007, due date.

Accordingly, Golden Arrow is considered to be in default on all
twenty-two licenses for which it was the high bidder in Auction No. 40,
its long-form applications are dismissed, and it is subject to the
applicable default payments.[^16] Pursuant to Section 1.2104(g)(2) of
the Rules, Golden Arrow owes interim default payments totaling
\$1,770.00 which is three-percent (3%) of the total of its net winning
bids of \$59,000.00.[^17] Pursuant to Section 1.2106(e) of the Rules, we
will apply Golden Arrow's funds on deposit to satisfy the interim
default payment obligations.[^18] Once subsequent high bids are
established for the relevant spectrum, we will determine Golden Arrow's
final default payment obligations.[^19] If additional payments are
required, a further order will assess such payments.[^20]

**Ordering Clauses**

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)(2) of the Commission's Rules, 47 C.F.R. §
1.2104(g)(2), Golden Arrow Paging, Inc. is ASSESSED interim default
payments, as computed in Attachment A, totaling \$1,770.00 for its
defaulted high bids for the licenses in Auction No. 40.

IT IS FURTHER ORDERED that, pursuant to Sections 1.2104 and 1.2106 of
the Commission's Rules, 47 C.F.R. §§ 1.2104 and 1.2106, Golden Arrow
Paging, Inc.'s funds on deposit will be applied to satisfy the interim
default payment obligations.

IT IS FURTHER ORDERED that, pursuant to Section 1.2109 of the
Commission's Rules, 47 C.F.R. § 1.2109, the Form 601 long-form
applications of Golden Arrow Paging, Inc., ULS File Numbers 0000730960,
0000730981, and 0000730994, are DISMISSED with prejudice.

IT IS FURTHER ORDERED that, pursuant to Section 1.2104(g) of the
Commission's Rules, 47 C.F.R. § 1.2104(g), Golden Arrow Paging, Inc.
will be subject to final default payments for its defaulted high bids
for the licenses in Auction No. 40 once the spectrum associated with the
licenses is re-auctioned and the full default payment amounts are
determined.

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 Sections 0.283
and 0.331 of the Commission's Rules, 47 C.F.R. §§ 0.283 and 0.331.

> Sincerely,
>
> Rita Cookmeyer

Financial Policy Analyst

> Auctions and Spectrum Access Division
>
> Wireless Telecommunications Bureau

**Attachment A**

##  

**Defaulted Licenses**

+-----------------+----------------+-----------------+----------------+
| **License**     | **Gross        | **Net Winning** | **Interim 3%   |
|                 | Winning Bid    |                 | Default        |
| **M             | Amount**       | **Bid Amount**  | Payment**      |
| arket/Channel** |                |                 |                |
|                 | **Auction No.  | **Auction No.   |                |
|                 | 40**           | 40**            |                |
+-----------------+----------------+-----------------+----------------+
| BEA084FA        | \$500.00       | \$500.00        | \$15.00        |
+-----------------+----------------+-----------------+----------------+
| BEA085FA        | \$500.00       | \$500.00        | \$15.00        |
+-----------------+----------------+-----------------+----------------+
| BEA086FA        | \$500.00       | \$500.00        | \$15.00        |
+-----------------+----------------+-----------------+----------------+
| BEA087FA        | \$3,400.00     | \$3,400.00      | \$102.00       |
+-----------------+----------------+-----------------+----------------+
| BEA127FA        | \$23,000.00    | \$23,000.00     | \$690.00       |
+-----------------+----------------+-----------------+----------------+
| BEA128FA        | \$500.00       | \$500.00        | \$15.00        |
+-----------------+----------------+-----------------+----------------+
| BEA129FA        | \$1,700.00     | \$1,700.00      | \$51.00        |
+-----------------+----------------+-----------------+----------------+
| BEA129FB        | \$1,700.00     | \$1,700.00      | \$51.00        |
+-----------------+----------------+-----------------+----------------+
| BEA129FC        | \$500.00       | \$500.00        | \$15.00        |
+-----------------+----------------+-----------------+----------------+
| BEA129FD        | \$2,400.00     | \$2,400.00      | \$72.00        |
+-----------------+----------------+-----------------+----------------+
| BEA129FE        | \$500.00       | \$500.00        | \$15.00        |
+-----------------+----------------+-----------------+----------------+
| BEA130FA        | \$3,500.00     | \$3,500.00      | \$105.00       |
+-----------------+----------------+-----------------+----------------+
| BEA134FA        | \$2,000.00     | \$2,000.00      | \$60.00        |
+-----------------+----------------+-----------------+----------------+
| BEA173FA        | \$500.00       | \$500.00        | \$15.00        |
+-----------------+----------------+-----------------+----------------+
| MEA031E         | \$1,000.00     | \$1,000.00      | \$30.00        |
+-----------------+----------------+-----------------+----------------+
| MEA038A         | \$1,000.00     | \$1,000.00      | \$30.00        |
+-----------------+----------------+-----------------+----------------+
| MEA031AA        | \$4,100.00     | \$4,100.00      | \$123.00       |
+-----------------+----------------+-----------------+----------------+
| MEA031AJ        | \$2,600.00     | \$2,600.00      | \$78.00        |
+-----------------+----------------+-----------------+----------------+
| MEA031AK        | \$3,000.00     | \$3,000.00      | \$90.00        |
+-----------------+----------------+-----------------+----------------+
| MEA031AV        | \$4,100.00     | \$4,100.00      | \$123.00       |
+-----------------+----------------+-----------------+----------------+
| MEA038AK        | \$1,000.00     | \$1,000.00      | \$30.00        |
+-----------------+----------------+-----------------+----------------+
| MEA038AV        | \$1,000.00     | \$1,000.00      | \$30.00        |
+-----------------+----------------+-----------------+----------------+
| **Total**       | *              | **\$59,000.00** | **\$1,770.00** |
|                 | *\$59,000.00** |                 |                |
+-----------------+----------------+-----------------+----------------+

[^1]: *See* Lower and Upper Paging Bands Auction Closes; Winning Bidders
    Announced, *Public Notice*, 16 FCC Rcd 21821 (2001) ("*Closing
    Public Notice")*.

[^2]: ULS File Numbers are 0000730960, 0000730981, and 0000730994.

[^3]: 47 C.F.R. §§ 1.2104(g)(2), 1.2109(b).

[^4]: 47 C.F.R § 1.2104(g)(2).

[^5]: *Id*.

[^6]: *Id*.

[^7]: *Id*.

[^8]: *See Part 1 Third Report and Order*, 13 FCC Rcd 374, 434 ¶ 102;
    *Competitive Bidding Fifth Report and Order*, 9 FCC Rcd at 5563
    n.51; *see also Competitive Bidding Second Report and* Order, 9 FCC
    Rcd at 2382-83 ¶ 197.

[^9]: *See* Wireless Telecommunications Bureau Announces It is Prepared
    to Grant Upper and Lower Paging Band Licenses Upon Full and Timely
    Payment, *Public Notice*, 22 FCC Rcd. 1181 (2007).

[^10]: 47 C.F.R. § 1.2109(a).

[^11]: 47 C.F.R. § 1.2109(a).

[^12]: *See Closing Public Notice* at Attachment A.

[^13]: 47 C.F.R. § 1.2107(b).

[^14]: *See Closing Public Notice* at Attachment B.

[^15]: Golden Arrow's upfront payment was in the amount of \$20,000.
    After applying the upfront payment to the withdrawal payment of
    \$2,550.00 and the required down payment of \$11,800.00, the
    Commission had an additional \$5,650.00 remaining on deposit. *See*
    *Closing Public Notice*, Attachment B.

[^16]: 47 C.F.R. §§ 1.2104(g)(2), 1.2109(c)*.*

[^17]: 47 C.F.R. § 1.2104(g)(2); s*ee* Attachment A for the interim
    default payment for each license.

[^18]: 47 C.F.R. § 1.2106(e).

[^19]: *Id.*

[^20]: *See* Mountain Solutions Ltd., Inc., FCC 98-220, *Memorandum
    Opinion and Order*, 13 FCC Rcd. 21,983, 21,997 ¶ 25 (1998).