DA 08-1944

September 2, 2008

**Auction of LPTV and TV Translator Digital Companion Channels**

**Scheduled for November 5, 2008**

**Notice and Filing Requirements, Minimum Opening Bids,\
Upfront Payments and Other Procedures for Auction 85**

**AU Docket No. 08-22**

**Report No. AUC-08-85-F (Auction 85)**

Table of Contents

Heading Paragraph \#

I. General Information 1

A. Introduction 1

1\. Background of Proceeding 2

2\. Construction Permits to be Offered in Auction 85 4

B. Rules and Disclaimers 6

1\. Relevant Authority 6

2\. Prohibition of Collusion 8

3\. Due Diligence 19

4\. Use of Integrated Spectrum Auction System 26

5\. Environmental Review Requirements 27

C. Auction Specifics 28

1\. Auction Date 28

2\. Auction Title 30

3\. Bidding Methodology 31

4\. Pre-Auction Dates and Deadlines 32

5\. Requirements for Participation 33

II\. short-form Application (FCC FORM 175) REQUIREMENTS 34

A. Minor Modifications to Short-Form Applications (FCC Forms 175) 34

B. Maintaining Current Information in Short-Form Applications (FCC Form
175) 38

III\. PRE-AUCTION PROCEDURES 42

A. Auction Seminar 42

B. Minor Corrections to Applications 45

C. Upfront Payments --- Due October 10, 2008 47

1\. Making Auction Payments by Wire Transfer 48

2\. FCC Form 159 51

3\. Upfront Payments and Bidding Eligibility 53

4\. Applicant's Wire Transfer Information for Purposes of Refunds of
Upfront Payments 59

D. Auction Registration 61

E. Remote Electronic Bidding 65

F. Mock Auction -- November 3, 2008 68

IV\. AUCTION EVENT 69

A. Auction Structure 70

1\. Simultaneous Multiple Round Auction 70

2\. Eligibility and Activity Rules 72

3\. Activity Rule Waivers 76

4\. Auction Stopping Rules 81

5\. Auction Delay, Suspension, or Cancellation 85

B. Bidding Procedures 87

1\. Round Structure 87

2\. Reserve Price and Minimum Opening Bids 89

3\. Bid Amounts 91

4\. Provisionally Winning Bids 97

5\. Bid Removal and Bid Withdrawal 106

6\. Round Results 108

7\. Auction Announcements 110

V. POST-AUCTION PROCEDURES 111

A. Down Payments 112

B. Final Payments 113

C. Long-Form Application 114

D. Default and Disqualification 115

E. Refund of Remaining Upfront Payment Balance 118

VI\. Contact information 121

ATTACHMENT A: Construction Permits to Be Auctioned

ATTACHMENT B: Auction-Specific Instructions for FCC Remittance Advice
(FCC Form 159)

ATTACHMENT C: Summary Listing of Judicial, Commission and Bureau
Documents Addressing Application of the Anti-Collusion Rule

ATTACHMENT D: Auction 85 Seminar Registration Form

# General Information

## Introduction

1.  By this Public Notice, the Wireless Telecommunications Bureau
    ("WTB") and the Media Bureau ("MB") (collectively, the "Bureaus")
    announce the procedures and minimum opening bid amounts for the
    upcoming auction of construction permits for Low Power Television
    (LPTV), including Class A Television (TV), and TV Translator digital
    companion channels. This auction, which is designated Auction 85, is
    scheduled to commence on November 5, 2008 (Auction 85). On July 17,
    2008, in accordance with Section 309(j)(3) of the Communications Act
    of 1934, as amended (the Act),[^1] the Bureaus released a public
    notice seeking comment on reserve prices or minimum opening bid
    amounts and the procedures to be used in Auction 85.[^2] In
    addition, the Bureaus proposed an additional settlement period for
    applicants to use engineering solutions, dismissal requests or
    settlements to resolve conflicts among their digital companion
    channel engineering proposals. No comments were submitted in
    response to the *Auction 85 Comment Public Notice*.

### Background of Proceeding

2.  In 2006, the Media Bureau by public notice announced a filing window
    for digital companion channel applications.[^3] Requirements for
    filing such applications were announced by public notice, and the
    Bureaus conducted a public seminar to provide potential applicants
    with information about this digital transition opportunity.[^4]
    During this filing window, 1,915 engineering proposals were filed.
    Subsequently, the Media and Wireless Telecommunications Bureaus
    announced the determinations of which proposed digital companion
    channel engineering proposals were mutually exclusive and provided
    an opportunity for applicants to use engineering solutions, requests
    for dismissal or settlements to resolve conflicts among their
    engineering proposals.[^5] Through settlements, dismissal requests
    and engineering solutions, conflicts among these engineering
    proposals were resolved in 2006 for approximately 130 mutually
    exclusive groups ("MX Groups").

3.  The Bureaus provided applicants with an additional opportunity to
    resolve conflicts among their digital companion channel engineering
    proposals --- using engineering solutions, requests for dismissal,
    and settlements --- during a window that extended from July 17
    through August 14, 2008.[^6] After review of submissions filed
    during that window, mutual exclusivity remains in the 44 MX Groups
    that are listed in Attachment A.

### Construction Permits to be Offered in Auction 85 

4.  Auction 85 will offer 44 construction permits for specified LPTV,
    including Class A TV, and TV Translator digital companion channels.
    The construction permits to be auctioned are the subject of pending,
    mutually exclusive applications for the referenced broadcast
    services for which the Commission has not approved settlement
    agreements, dismissal requests or engineering amendments.
    Participation in this auction will be limited to those applicants
    for construction permits identified in Attachment A of this Public
    Notice. Applicants will be eligible to bid only on the corresponding
    construction permits listed in Attachment A.

5.  Attachment A specifies the MX Groups accompanied by their respective
    minimum opening bids and upfront payments. Attachment A also lists
    the names of the applicants for construction permits in each MX
    Group. For each MX Group identified in Attachment A, competing
    applications were filed during the relevant filing period. All
    applications within an identified MX Group are directly mutually
    exclusive with one another, and therefore, a single construction
    permit will be auctioned for each MX Group identified in Attachment
    A.[^7]

## Rules and Disclaimers 

### Relevant Authority 

6.  Prospective applicants must familiarize themselves thoroughly with
    the Commission's general competitive bidding rules, including recent
    amendments and clarifications, as well as Commission decisions in
    proceedings regarding competitive bidding procedures, application
    requirements, and obligations of Commission licensees.[^8]
    Broadcasters should also familiarize themselves with the
    Commission's rules relating to the television broadcast service
    contained in 47 C.F.R. §§ 73.601 -- 73.699 and 73.1001 -- 73.4280.
    Prospective applicants must also be familiar with the rules relating
    to competitive bidding proceedings contained in 47 C.F.R. §§ 1.2001
    -- 1.2112 and broadcast auctions contained in 47 C.F.R. §§ 73.3555,
    73.5000 -- 73.5009. Prospective bidders must also be thoroughly
    familiar with the procedures, terms and conditions (collectively,
    "terms") contained in this public notice, the *Auction 85 Comment
    Public Notice* and the *Broadcast Competitive Bidding First Report
    and Order,*[^9] the *Broadcast Competitive Bidding First
    Reconsideration Order*[^10] the *New Entrant Bidding Credit
    Reconsideration Order*[^11] and the *Noncommercial Educational
    Second Report and Order*.[^12]

7.  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 applicants. It is the responsibility of
    all applicants to remain current with all Commission rules and with
    all public notices pertaining to this auction. Copies of most
    auctions-related Commission documents, including public notices, can
    be retrieved from the FCC Auctions Internet site at
    [http://wireless.fcc.gov/auctions](http://wireless.fcc.gov/auctions/default.htm?job=auctions_home).
    Additionally, documents are available for public inspection and
    copying between 8:00 a.m. and 4:30 p.m. Eastern Time (ET) Monday
    through Thursday or 8:00 a.m. to 11:30 a.m. ET Fridays at the FCC
    Reference Information Center, 445 12th Street, SW, Room CY-A257,
    Washington, DC 20554. Documents may also be purchased from the
    Commission's duplicating contractor, Best Copy and Printing, Inc.
    ("BCPI"), 445 12th Street, SW, Room CY‑B402, Washington, DC 20554,
    800-378-3160 or at
    [http://www.bcpiweb.com](http://www.bcpiweb.com/).[^13]

### Prohibition of Collusion

8.  Applicants for Auction 85 are reminded that they remain subject to
    the Commission\'s anti-collusion rule until the down payment
    deadline after the auction, which will be announced in a future
    public notice.[^14] This prohibition applies to all applicants
    listed on Attachment A of this Public Notice **regardless of whether
    such applicants become qualified bidders or actually bid.**[^15]
    Applicants are also reminded that, for purposes of this prohibition,
    Section 1.2105(c)(7)(i) defines "applicant" as including all
    officers and directors of the entity submitting a short-form
    application to participate in the auction, all controlling interests
    of that entity, as well as all holders of partnership and other
    ownership interests and any stock interest amounting to 10 percent
    or more of the entity, or outstanding stock, or outstanding voting
    stock of the entity submitting a short-form application.[^16]

9.  Parties subject to the anti-collusion rule are prohibited from
    communicating with each other about bids, bidding strategies, or
    settlements unless such applicants have identified each other on
    their short-form applications (FCC Form 175) as parties with whom
    they have entered into agreements pursuant to Section
    1.2105(a)(2)(viii).[^17] Thus, competing applicants must
    affirmatively avoid all communications with each other that affect
    or, in their reasonable assessment, have the potential to affect,
    bids or bidding strategy, which may include communications regarding
    the post-auction market structure.[^18] The anti-collusion rule
    prohibits not only a communication about an applicant's own bids or
    bidding strategy, but also a communication of another applicant's
    bids or bidding strategy.[^19] While the anti-collusion rule
    provisions do not prohibit business negotiations among auction
    applicants, applicants must remain vigilant so as not to
    communication directly or indirectly information that affects, or
    could affect, bids or bidding strategy, or the negotiation of
    settlement agreements.

10. Applicants are hereby placed on notice that public disclosure of
    information relating to bids or bidding strategies, or post auction
    market structure may violate the anti-collusion rule.[^20]
    Applicants should use caution in their dealings with other parties,
    such as members of the press, financial analysts, or others who
    might become a conduit for the communication of prohibited bidding
    information. For example, an applicant's statement to the press that
    it intends to stop bidding in the auction could give rise to a
    finding of an anti-collusion rule violation.[^21] Similarly, a
    listed applicant's public statement of intent not to participate in
    Auction 85 bidding could also violate the rule.

11. Moreover, individuals and entities subject to the anti-collusion
    rule should take special care in circumstances where their employees
    may receive information directly or indirectly from a competing
    applicant relating to any competing applicant's bids or bidding
    strategies. Where an individual served as an officer for two or more
    applicants, the Bureaus have found that the bids and bidding
    strategies of one applicant are necessarily conveyed to the other
    applicant, and, absent a disclosed bidding agreement, an apparent
    violation of the anti-collusion rule occurs.[^22] The Bureaus have
    not addressed situations where employees who do not qualify as the
    applicant (such as, individuals who are not officers or directors)
    receive information regarding a competing applicant's bids or
    bidding strategies and whether that information might be deemed to
    necessarily convey to the applicant. We note that the exception to
    the anti-collusion rule providing that non-controlling interest
    holders may have interests in more than one competing applicant
    without violating the anti-collusion rule, provided specified
    conditions are met (including a certification that no prohibited
    communications have occurred or will occur), does not extend to
    controlling interest holders.[^23]

12. The Bureaus also remind Auction 85 applicants that they must not
    communicate indirectly to other applicants about bids or bidding
    strategy.[^24] Accordingly, Auction 85 applicants 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 such applicants. Also, if the authorized bidders are
    different individuals employed by the same organization (e.g., law
    firm or engineering firm or consulting firm), a violation similarly
    could occur.[^25] 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.[^26] Moreover, the Commission has found a
    violation of the anti-collusion rule where an applicant used the
    Commission's bidding system to disclose "its bidding strategy in a
    manner that explicitly invited other auction participants to
    cooperate and collaborate in specific markets,"[^27] and has placed
    auction participants on notice that the use of its bidding system
    "to disclose market information to competitors will not be tolerated
    and will subject bidders to sanctions."[^28] Applicants are
    cautioned that the Commission remains vigilant about prohibited
    communications taking place in other situations. For example, the
    Commission has warned that prohibited "communications concerning
    bids and bidding strategies may include communications regarding
    capital calls or requests for additional funds in support of bids or
    bidding strategies to the extent such communications convey
    information concerning the bids and bidding strategies directly or
    indirectly."[^29]

13. By electronically submitting its short-form application, each
    applicant in Auction 85 certified its compliance with Sections
    1.2105(c) and 73.7002. However, the Bureaus caution 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.[^30] The Commission has stated that it "intend\[s\] to
    scrutinize carefully any instances in which bidding patterns suggest
    that collusion may be occurring."[^31] Any applicant found to have
    violated the anti-collusion rule may be subject to sanctions.[^32]

14. **Applicants are also reminded that, regardless of compliance with
    the Commission's rules, they remain subject to the antitrust laws,
    which are designed to prevent anticompetitive behavior in the
    marketplace.** [^33] **Compliance with the disclosure requirements
    of the Commission's anti-collusion rule will not insulate a party
    from enforcement of the antitrust laws.**[^34] For instance, a
    violation of the antitrust laws could arise out of actions taking
    place well before any party submitted a short-form application.[^35]
    The Commission has cited a number of examples of potentially
    anticompetitive actions that would be prohibited under antitrust
    laws: for example, actual or potential competitors may not agree to
    divide territories horizontally in order to minimize competition,
    regardless of whether they split a market in which they both do
    business, or whether they merely reserve one market for one and
    another market for the other.[^36] Similarly, the Wireless
    Telecommunications Bureau previously has reminded potential
    applicants and others that "\[e\]ven where the applicant discloses
    parties with whom it has reached an agreement on the short-form
    application, thereby permitting discussions with those parties, the
    applicant is nevertheless subject to existing antitrust laws."[^37]
    To the extent the Commission becomes aware of specific allegations
    that suggest that violations of the federal antitrust laws may have
    occurred, the Commission may refer such allegations to the United
    States Department of Justice for investigation.[^38] If an applicant
    is found to have violated the antitrust laws or the Commission's
    rules in connection with its participation in the competitive
    bidding process, it may be subject to forfeiture of its upfront
    payment, down payment, or full bid amount and may be prohibited from
    participating in future auctions, among other sanctions.[^39]

15. If an applicant makes or receives a communication that appears to
    violate the anti-collusion rule, it must report such communication
    in writing to the Commission immediately and in no case later than
    five business days after the communication occurs.[^40] The
    Commission recently clarified that each applicant's obligation to
    report any such communication continues beyond the five-day period
    after the communication is made, even if the report is not made
    within the five day period.[^41]

16. 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.[^42] Thus, Section 1.65 requires
    an auction applicant to notify the Commission of any substantial
    change to the information or certifications included in its pending
    short-form application. Applicants are therefore required by Section
    1.65 to report to the Commission any communications they have made
    to or received from another applicant after the short-form
    application filing deadline that affect or have the potential to
    affect bids or bidding strategy unless such communications are made
    to or received from parties to agreements identified under Section
    1.2105(a)(2)(viii).

17. Parties reporting communications pursuant to Sections 1.2105(a)(2)
    or 1.2105(c)(6) must take care to ensure that any reports of
    prohibited communications do not themselves give rise to a violation
    of the anti-collusion rule. For example, a party's report of a
    prohibited communication could violate the rule by communicating
    prohibited information to other applicants through the use of
    Commission filing procedures that would allow such materials to be
    made available for public inspection. A party seeking to report such
    prohibited communications should consider submitting its report with
    a request that the report or portions of the submission be withheld
    from public inspection.[^43] Such parties also are encouraged to
    coordinate with the Auctions and Spectrum Access Division staff, if
    they have any questions about the procedures for submitting such
    reports.[^44] This Public Notice provides additional guidance on
    procedures for submitting application-related information
    below.[^45]

18. Applicants must be aware that failure to comply with the
    Commission's rules can result in enforcement action. A partial
    listing of documents issued by the Commission and the Bureaus
    addressing the application of the anti-collusion rule may be found
    in Attachment C. These documents are available on the Commission's
    auction anti-collusion web page.[^46]

### Due Diligence 

19. Potential applicants are reminded that they are solely responsible
    for investigating and evaluating all technical and marketplace
    factors that may have a bearing on the value of the broadcast
    facilities they are seeking in this auction. **The FCC makes no
    representations or warranties about the use of this spectrum for
    particular services. Applicants should be aware that an FCC auction
    represents an opportunity to become an FCC construction permittee in
    the broadcast service, subject to certain conditions and
    regulations. An FCC auction does not constitute an endorsement by
    the FCC of any particular service, technology, or product, nor does
    an FCC construction permit or license constitute a guarantee of
    business success.** Applicants should perform their individual due
    diligence before proceeding as they would with any new business
    venture.

20. Applicants are strongly encouraged to conduct their own research
    prior to Auction 85 in order to determine the existence of pending
    administrative or judicial proceedings that might affect their
    decisions regarding participation in the auction.[^47] Prospective
    bidders should perform due diligence to identify and consider all
    proceedings that may affect the digital companion channel facilities
    they are seeking. We note that resolution of such matters could have
    an impact on the availability of their specified channel. In
    addition, although the Commission may continue to act on various
    pending applications, informal objections, petitions, and other
    requests for Commission relief, some of these matters may not be
    resolved by the time bidding commences in this auction. Participants
    in Auction 85 are strongly encouraged to continue such research
    throughout the auction. In addition, applicants should perform
    technical analyses sufficient to assure themselves that, should they
    prevail in competitive bidding for a specific construction permit,
    they will be able to build and operate facilities that will fully
    comply with the Commission\'s technical and legal requirements.

21. **Applicants are solely responsible for identifying associated risks
    and for investigating and evaluating the degree to which such
    matters may affect their ability to obtain their specified channel.
    Potential applicants are strongly encouraged to physically inspect
    any sites located in, or near, the service area for which they
    filed, and also to familiarize themselves with the Commission\'s
    environmental assessment obligations**.[^48]

22. Potential bidders are reminded that digital companion channels are
    licensed on a secondary interference basis, and these channels may
    be displaced by full-power television stations. In addition, LPTV
    stations operating on Channels 52-69 may be displaced by new 700 MHz
    operations. Low power displacement applications (both analog and
    digital) have processing priority over all other low power
    applications including digital companion channel applications.[^49]
    Displacement applications may be filed at any time. Therefore, the
    pending digital companion channel proposals in Auction 85 may be
    affected by newly-filed displacement applications. Bidders should
    continue to examine the effect that newly-filed displacement
    applications may have on their engineering proposals. Once a low
    power television application for construction permit is granted, any
    subsequent displacement applications must protect that permit from
    interference.

23. In addition, in November 1999, Congress enacted the Community
    Broadcasters Protection Act of 1999 (CBPA) which established a new
    Class A television service.[^50] In response to the enactment of the
    CBPA, the Commission adopted rules to establish the new Class A
    television service. In the *Class A Report and Order*, the
    Commission adopted rules to provide interference protection for
    eligible Class A television stations from new full power television
    stations.[^51] Given the Commission's ruling in the *Class A Report
    and Order*, a winning bidder in Auction 85, upon submission of its
    long-form application (FCC Form 346 or 301-CA), will have to provide
    interference protection to qualified Class A television stations.
    Therefore, potential bidders are encouraged to perform engineering
    studies to determine the existence of Class A television stations
    and their effect on the ability to operate the channel they seek in
    this auction.[^52] Potential bidders may research the licensing
    database for the Media Bureau on the Internet in order to determine
    which channels are already licensed to incumbent licensees or
    previously authorized to construction permittees, and to find
    information about the identity and location of Class A television
    stations. Licensing records for the Media Bureau are contained in
    the Media Bureau's Consolidated Data Base System (CDBS) and may be
    researched on the Internet at
    [http://www.fcc.gov/mb](http://www.fcc.gov/mb/).[^53] Potential
    bidders may query the database online and download a copy of their
    search results, if desired. Detailed instructions on using Search
    for Station Information, Search for Ownership Report Information and
    Search for Application Information and downloading query results are
    available online by selecting the CDBS Public Access (main) button
    at the bottom of the Electronic Filing and Public Access list
    section. The database searches return either station or application
    data. The application search provides an application link that
    displays the complete electronically filed application in
    application format. An AL/TC search under the application search
    link permits searching for Assignment of License/Transfer of Control
    groups using the AL/TC group lead application. For further details,
    click on the Help file. Potential bidders should direct questions
    regarding the search capabilities of CDBS to the Media Bureau help
    line at (202) 418-2662, or via e-mail at
    [[mbinfo@fcc.gov]{.underline}](mailto:mbinfo@fcc.gov).

24. 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. To the extent the Commission's databases may not include
    all information deemed necessary or desirable by a bidder, bidders
    may obtain or verify such information from independent sources or
    assume the risk of any incompleteness or inaccuracy in said
    databases. Furthermore, 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.

25. Potential bidders for any new television facility in this auction
    are also reminded that full service television stations are in the
    process of converting from analog to digital operation and that
    stations may have pending applications to construct and operate
    digital television facilities, construction permits and/or licenses
    for such digital facilities.[^54] As mentioned above, all LPTV and
    TV translator stations are secondary to full service stations and
    are subject to displacement by such stations. Bidders should
    investigate the impact such applications, permits and licenses may
    have on their ability to operate facilities based on the
    construction permits offered in this auction.

### Use of Integrated Spectrum Auction System

26. The Commission will make available a browser-based bidding system to
    allow bidders to participate in Auction 85 over the Internet using
    the Commission's Integrated Spectrum Auction System ("ISAS" or "FCC
    Auction System"). The Commission makes no warranty whatsoever with
    respect to the FCC Auction System. In no event shall the Commission,
    or any of its officers, employees or agents, be liable for any
    damages whatsoever (including, but not limited to, loss of business
    profits, business interruption, loss of business information, or any
    other loss) arising out of or relating to the existence, furnishing,
    functioning or use of the FCC Auction System that is accessible to
    qualified bidders in connection with this auction. Moreover, no
    obligation or liability will arise out of the Commission's
    technical, programming or other advice or service provided in
    connection with the FCC Auction System.

### Environmental Review Requirements

27. Permittees or licensees must comply with the Commission's rules
    regarding implementation of the National Environmental Policy Act
    and other federal environmental statutes.[^55] The construction of a
    broadcast facility is a federal action and the permittee or licensee
    must comply with the Commission's environmental rules for each such
    facility.[^56] The Commission's environmental rules require, among
    other things, that the permittee or licensee consult with expert
    agencies having environmental responsibilities, including the U.S.
    Fish and Wildlife Service, the State Historic Preservation Office,
    the U.S. Army Corps of Engineers and the Federal Emergency
    Management Agency (through the local authority with jurisdiction
    over floodplains). In assessing the effect of facilities
    construction on historic properties, the permittee or licensee must
    follow the provisions of the Nationwide Programmatic Agreement
    Regarding the Section 106 National Historic Preservation Act Review
    Process.[^57] The permittee or 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 permittee or licensee also must prepare
    environmental assessments for facilities that include high intensity
    white lights in residential neighborhoods or excessive radio
    frequency emission.

## Auction Specifics

### Auction Date

28. Bidding in Auction 85 will begin on Wednesday, November 5, 2008.

29. 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 construction permits will be conducted on each
    business day until bidding has stopped on all construction permits.

### Auction Title

30. Auction 85 -- LPTV and TV Translator Digital Companion Channels

### Bidding Methodology 

31. As discussed in more detail below, the bidding methodology for
    Auction 85 will be simultaneous multiple round bidding.[^58] The
    Commission will conduct this auction over the Internet using the FCC
    Auction System, and telephonic bidding will be available as well.
    All telephone calls are recorded.

### Pre-Auction Dates and Deadlines

32. Dates and Deadlines

Auction Seminar October 1, 2008

Upfront Payments (via wire transfer) October 10, 2008; 6:00 p.m. ET

Mock Auction November 3, 2008

Auction Begins November 5, 2008

### Requirements for Participation

33. Those wishing to participate in the auction must:

-   Be listed on Attachment A of this Public Notice.

```{=html}
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```
-   Submit a sufficient upfront payment and an FCC Remittance Advice
    Form (FCC Form 159) before 6:00 p.m. ET, October 10, 2008, following
    the procedures and instructions set forth in Attachment B to this
    Public Notice.

```{=html}
<!-- -->
```
-   Comply with all provisions outlined in this Public Notice and
    applicable Commission rules.

# short-form Application (FCC FORM 175) REQUIREMENTS

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

34. Since the deadline for filing short-form applications (FCC
    Forms 175) passed on June 30, 2006, Auction 85 applicants may now
    make only minor changes to their applications. Applicants are not
    permitted to make major modifications to their applications (e.g.,
    make major changes to their engineering proposals, change control of
    the applicant, change the certifying official, claim eligibility for
    a higher percentage of bidding credit or change their identification
    of the application\'s proposed facilities as noncommercial
    educational).[^59] Permissible minor changes include, for example,
    deletion and addition of authorized bidders (to a maximum of three)
    and revision of addresses and telephone numbers of the applicants
    and their contact persons.

35. Any application amendment and related statements of fact must be
    certified by (1) the applicant, if the applicant is an
    individual, (2) one of the partners if the applicant is a
    partnership, (3) an officer, director, or duly authorized employee,
    if the applicant is a corporation, (4) by a member who is an
    officer, if the applicant is an unincorporated association, (5) the
    trustee if the applicant is an amateur radio service club, or (6) a
    duly elected or appointed official who is authorized to make such
    certifications under the laws of the applicable jurisdiction, if the
    applicant is a governmental entity.[^60]

36. An applicant must make permissible minor changes to its short-form
    application, as defined by Section 1.2105(b), online. Applicants
    must click on the **SUBMIT** button in the FCC Auction System for
    the changes to be submitted and considered by the Commission. After
    the revised application has been submitted, a confirmation page will
    be displayed that states the submission time and date, along with a
    unique file number.

37. In addition, in the event that changes cannot be made immediately in
    the FCC Auction System for any reason, an applicant must submit a
    letter, briefly summarizing the changes and subsequently update
    their short-form applications in the FCC Auction System as soon as
    possible. Any letter describing changes to an applicant's short-form
    application must be submitted by electronic mail to the following
    address: <auction85@fcc.gov>. The electronic mail summarizing the
    changes must include a subject or caption referring to Auction 85
    and the name of the applicant (e.g., "RE: Changes to Auction 85
    Short-Form Application of ABC Corp."). The Bureaus request that
    parties format any attachments to electronic mail as Adobe^®^
    Acrobat^®^ (pdf) or Microsoft^®^ Word documents. Questions about
    short-form application (FCC Form 175) amendments should be directed
    to Lynne Milne of the Auctions and Spectrum Access Division at (202)
    418-0660.

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

38. 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.[^61] Changes that cause a loss of or reduction in
    eligibility for a new entrant bidding credit must be reported
    immediately.[^62] If an amendment reporting substantial changes is a
    "major amendment" as defined by 47 C.F.R. § 1.2105, the major
    amendment will not be accepted and may result in the dismissal of
    the short-form application.[^63]

39. During the resubmission period announced in a future public notice,
    an applicant may review and update the applicant's own completed
    short-form application in the FCC Auction System. Applicants are
    reminded that the *Auction 85 Filing Requirements Public Notice*,
    including its Attachment B, provided important information for this
    update process.[^64]

40. In the event that Section 1.65 modifications cannot be made in the
    FCC Auction System for any reason, applicants must report Section
    1.65 modifications to their short-form application by electronic
    mail and submit a letter, briefly summarizing the changes, to the
    following address: <auction85@fcc.gov>. The electronic mail
    summarizing the changes must include a subject or caption referring
    to Auction 85 and the name of the applicant. The Bureaus requests
    that parties format any attachments to electronic mail as Adobe^®^
    Acrobat^®^ (pdf) or Microsoft^®^ Word documents. Questions about
    such changes should be directed to Lynne Milne of the Auctions and
    Spectrum Access Division at (202) 418-0660.

41. It is possible for an applicant to make certain changes to its
    short-form application, such as a change of applicant address or
    contact information, on-line at any time after the initial
    short-form application deadline. Applicants must click on the SUBMIT
    button in the FCC Auction System for such changes to be submitted
    and considered by the Commission. After the revised application has
    been submitted, a confirmation page will be displayed that states
    the submission time and date, along with a unique file number.

# PRE-AUCTION PROCEDURES

## Auction Seminar 

42. On Wednesday, October 1, 2008, the FCC will sponsor a seminar for
    Auction 85 at the FCC headquarters, located at 445 12^th^ Street,
    SW, Washington, DC. The seminar will provide attendees with
    information about pre-auction procedures, auction rules and conduct,
    and the FCC Auction System. The seminar will also provide an
    opportunity for prospective bidders to ask questions of FCC staff
    concerning the auction, auction procedures, and other matters
    related to this auction.

43. To register, complete the attached registration form (Attachment D)
    and submit it by Monday, September 29, 2008. Registrations are
    accepted on a first-come, first-served basis. The seminar is free of
    charge.

44. For individuals who are unable to attend, a webcast of this seminar
    will be available from the FCC's Auction 85 web page at
    [http://wireless.fcc.gov/auctions/85/](http://wireless.fcc.gov/auctions/default.htm?job=auction_summary&id=85).
    Select the "Auction Seminar" link. The seminar webcast will be
    archived for future viewing.

## Minor Corrections to Applications 

45. The Commission will issue a future public notice identifying (1)
    those applications which are complete; (2) those applications
    rejected; and (3) those applications which have minor defects that
    may be corrected, and the deadline for resubmitting corrected
    applications. Mutually exclusive commercial applications will
    proceed to auction.[^65]

46. As described more fully in the Commission's rules, after the
    short-form filing deadline on June 30, 2006, 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 construction permit
    selections, change control of the applicant, claim eligibility for a
    higher percentage of bidding credit, change the certifying official,
    or change their proposed station's identification as NCE).[^66]

## Upfront Payments --- Due October 10, 2008

47. In order to be eligible to bid in the auction, applicants must
    submit an upfront payment accompanied by an FCC Remittance Advice
    Form (FCC Form 159). Applicants in Auction 85 have access to an
    electronic version of the FCC Form 159 that can be printed and sent
    by facsimile to U.S. Bank in St. Louis, Missouri. **All upfront
    payments must be received in the proper account at U.S. Bank before
    6:00 p.m. ET on October 10, 2008.**

### Making Auction Payments by Wire Transfer 

48. Wire transfer payments must be received before 6:00 p.m. ET on
    October 10, 2008. 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: 081000210
>
> Receiving Bank: U.S. Bank
>
> St. Louis, MO
>
> BENEFICIARY: FCC/Account \# 152307774819
>
> Originating Bank Information (OBI Field): (Skip one space between each
> information item)
>
> "AUCTIONPAY"
>
> APPLICANT FCC REGISTRATION NUMBER (FRN): (same as FCC Form 159, block
> 21)
>
> PAYMENT TYPE CODE: (same as FCC Form 159, block 24A: "A85U")
>
> FCC CODE 1: (same as FCC Form 159, block 28A: "85")
>
> PAYER NAME: (same as FCC Form 159, block 2)
>
> LOCKBOX NO.: \# 979085

49. At least one hour before placing the order for the wire transfer
    (but on the same business day), applicants must send by facsimile a
    completed FCC Form 159 (Revised 7/05) to U.S. Bank at (314)
    418-4232. On the cover sheet of the facsimile, write "Wire Transfer
    --- Auction Payment for Auction 85." In order to meet the
    Commission's upfront payment deadline, an applicant's payment must
    be credited to the Commission\'s account before the deadline.[^67]
    **Applicants are responsible for obtaining confirmation from their
    financial institution that U.S. Bank has timely received their
    upfront payment and deposited it in the proper account.**

50. Please note that:

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

-   All payments must be made by wire transfer.

-   Upfront payments for Auction 85 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 specified deadline on
    October 10, 2008, will result in dismissal of the application and
    disqualification from participation in the auction.

### FCC Form 159

51. A completed FCC Remittance Advice Form (FCC Form 159, Revised 07/05)
    must be sent by facsimile to U.S. Bank to accompany each upfront
    payment. Proper completion of FCC Form 159 (Revised 2/03) is
    critical to ensuring correct crediting of upfront payments. Detailed
    instructions for completion of FCC Form 159 are included in
    Attachment B to this Public Notice. An electronic pre-filled version
    of the FCC Form 159 is available to applicants completing FCC Form
    175 who are listed in Attachment A of this Public Notice. Payors
    using a pre-filled FCC Form 159 are responsible for ensuring that
    all of the information on the form, including payment amounts, is
    accurate. The FCC Form 159 can be completed electronically, but must
    be filed with U.S. Bank via facsimile.

52. Each applicant may access the **Upfront Payment Calculator and Form
    159** from the *Create or Review Auction Applications* page and from
    the *Auction Application Submit Confirmation* page. When you click
    the **Upfront Payment Calculator and Form 159** icon or link, a page
    will be displayed where you can determine the appropriate upfront
    payment amount to submit with the FCC Form 159. From the *Calculate
    Upfront Payment* page, you may click the Form 159 button to obtain
    the FCC Form 159.

### Upfront Payments and Bidding Eligibility

53. The Commission has delegated to the Bureaus the authority and
    discretion to determine appropriate upfront payment(s) for each
    auction.[^68] Upfront payments help deter frivolous or insincere
    bidding, and provide the Commission with a source of funds in the
    event that the bidder incurs liability during the auction.

54. Applicants that are former defaulters, as described in the *Auction
    85 Filing Requirements Public Notice*, must pay upfront payments 50
    percent greater than non-former defaulters.[^69] For purposes of
    this calculation, the "applicant" includes the applicant itself, its
    affiliates, its controlling interests, and affiliates of its
    controlling interests, as defined by Section 1.2110 of the
    Commission's rules.[^70]

55. Applicants must make upfront payments sufficient to obtain bidding
    eligibility on the construction permits on which they will bid. The
    Bureaus proposed, in the *Auction 85 Comment Public Notice*, that
    the amount of the upfront payment would determine a bidder's initial
    bidding eligibility, the maximum number of bidding units on which a
    bidder may place bids.[^71] Under the Bureaus' proposal, in order to
    bid on a particular construction permit, a qualified bidder must
    have a current eligibility level that meets or exceeds the number of
    bidding units assigned to one or more of the construction permits
    listed in Attachment A for which it has submitted an engineering
    proposal. **At a minimum, therefore, an applicant's total upfront
    payment must be enough to establish eligibility to bid on at least
    one of the construction permits designated for that applicant in
    Attachment A of this Public Notice, 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 construction permits
    designated for the applicant in Attachment A, but only enough to
    cover the maximum number of bidding units that are associated with
    construction permits on which the bidder wishes to place bids and
    hold provisionally winning bids at any given time.[^72]

56. In the *Auction 85 Comment Public Notice*, the Bureaus proposed
    upfront payments for each construction permit taking into account
    various factors related to the efficiency of the auction process and
    the potential value of similar spectrum, and sought comment on this
    proposal. The Bureaus did not receive any comments in response to
    the proposed upfront payments, or on its proposal that the upfront
    payment amount would determine a bidder's initial bidding
    eligibility. Therefore, we adopt the upfront payments and bidding
    units we proposed for each construction permit in Auction 85, which
    are set forth in Attachment A of this Public Notice.

57. In calculating its upfront payment amount, an applicant should
    determine the **maximum** number of bidding units on which it may
    wish to be active (bid on or hold provisionally winning bids on) in
    any single round, and submit an upfront payment amount covering that
    number of bidding units.[^73] In order to make this calculation, an
    applicant should add together the upfront payments for all
    construction permits on which it seeks to be active in any given
    round. **Applicants should check their calculations carefully, as
    there is no provision for increasing a bidder's eligibility after
    the upfront payment deadline.**

  ---------------- ----------------------- ---------------- -----------------
  **Example:                                                
  Upfront Payments                                          
  and Bidding                                               
  Flexibility**                                             

  **Construction   **MX Group              **Bidding        **Upfront
  Permit**         Description**           Units**          Payment**

  MX-248           Arizona 2 - Lake Havasu 500              \$500
                   City                                     

  MX-249           Arizona 3 - Phoenix     1,000            \$1,000

  If a bidder                                               
  wishes to bid on                                          
  both                                                      
  construction                                              
  permits in a                                              
  round, the                                                
  applicant's name                                          
  must be                                                   
  designated for                                            
  both MX groups                                            
  in Attachment A                                           
  of this Public                                            
  Notice, and the                                           
  applicant must                                            
  have purchased                                            
  at least 1,500                                            
  bidding units                                             
  (500 + 1,000).                                            
  If a bidder only                                          
  wishes to bid on                                          
  one, but not                                              
  both, purchasing                                          
  1,000 bidding                                             
  units would meet                                          
  the initial                                               
  eligibility                                               
  requirement for                                           
  either                                                    
  construction                                              
  permit.[^74] The                                          
  bidder would be                                           
  able to bid on                                            
  either                                                    
  construction                                              
  permit, **but                                             
  not both at the                                           
  same time**. If                                           
  the bidder                                                
  purchased only                                            
  500 bidding                                               
  units, it would                                           
  have enough                                               
  eligibility for                                           
  the Arizona 2                                             
  construction                                              
  permit but not                                            
  for the Arizona                                           
  3 construction                                            
  permit.                                                   
  ---------------- ----------------------- ---------------- -----------------

58. If an applicant is a former defaulter, it must calculate its upfront
    payment for all construction permits by multiplying the number of
    bidding units on which it wishes to be active by 1.5.[^75] 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. If a
    "former defaulter" fails to submit a sufficient upfront payment to
    establish eligibility to bid on at least one of the construction
    permits associated with that applicant in Attachment A of this
    Public Notice, the applicant will not be eligible to participate in
    the auction.

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

59. The Commission will use wire transfers for all Auction 85 refunds.
    To ensure that refunds of upfront payments are processed in an
    expeditious manner, each applicant should supply all pertinent
    information listed below. Applicants can provide the information
    electronically through the FCC Auction System. (On *My Auctions*
    page, click on the **See Wire Transfer for Refund Purposes** link to
    provide your wire transfer instructions for purposes of refunds of
    upfront payments. The Commission will use this information to refund
    excess funds on deposit upon receipt of a written refund request.)

60. Wire Transfer Instructions can also be manually sent by facsimile to
    the FCC, Financial Operations Center, Auctions Accounting Group,
    ATTN: Gail Glasser, at (202) 418-2843. Eligibility for refunds is
    discussed in Section V.E., below. All refunds will be returned to
    the payor of record as identified on the FCC Form 159 unless the
    payor submits a written authorization instructing otherwise. For
    additional information, please call Gail Glasser at (202) 418-0578.

> Name of Bank
>
> ABA Number
>
> Address of Bank
>
> Contact and Phone Number
>
> Account Number to Credit
>
> Name of Account Holder
>
> FCC Registration Number (FRN)
>
> Correspondent Bank (if applicable)
>
> ABA Number
>
> Account Number

## Auction Registration

61. Approximately ten days before the auction, the Bureaus will issue a
    public notice announcing all qualified bidders for the auction.
    Qualified bidders are those applicants with timely-submitted
    short-form applications that are deemed complete and timely upfront
    payments that are sufficient to make them eligible to bid.

62. All qualified bidders are automatically registered for the auction.
    Registration materials will be distributed prior to the auction by
    overnight mail. **The mailing will be sent only to the contact
    person at the contact address listed in the short-form application**
    and will include the SecurID^®^ tokens that will be required to
    place bids, the Integrated Spectrum Auction System (ISAS) Bidder's
    Guide, and the Auction Bidder Line phone number.

63. Qualified bidders that do not receive this registration mailing will
    not be able to submit bids. Therefore, any qualified bidder that has
    not received this mailing by noon on Thursday, October 30, 2008,
    should call (717) 338-2868. Receipt of this registration mailing is
    critical to participating in the auction, and each applicant is
    responsible for ensuring it has received all of the registration
    material.

64. In the event that SecurID^®^ cards are lost or damaged, only a
    person who has been designated as an authorized bidder, the contact
    person, or the certifying official on the applicant's short-form
    application may request replacements. Qualified bidders requiring
    the replacement of these items must call Technical Support at (877)
    480-3201, option nine; (202) 414-1250; or (202) 414-1255 (TTY).

## Remote Electronic Bidding 

65. The Commission will conduct this auction over the Internet, and
    telephonic bidding will be available as well. Only qualified bidders
    are permitted to bid. Each applicant should indicate its bidding
    preference -- electronic or telephonic -- on its short-form
    application. In either case, each authorized bidder must have its
    own SecurID^®^ token, which the Commission will provide at no
    charge. Each applicant with one authorized bidder will be issued two
    SecurID^®^ tokens, while applicants with two or three authorized
    bidders will be issued three tokens. **For security purposes, the
    SecurID**^®^ **tokens, the telephonic bidding telephone number, and
    the Integrated Spectrum Auction System (ISAS) Bidder's Guide are
    mailed only to the contact person at the contact address listed on
    the short-form application.** Each SecurID^®^ token is tailored to a
    specific auction. SecurID^®^ tokens issued for other auctions or
    obtained from a source other than the FCC will not work for Auction
    85.

66. Please note that the SecurID^®^ tokens can be recycled, and the
    Bureaus encourage bidders to return the tokens to the FCC. The
    Bureaus will provide pre-addressed envelopes that bidders may use to
    return the tokens once the auction is closed.

67. Bidders are solely responsible for ensuring the security of their
    computer systems and their registration materials and for ensuring
    that only authorized bidders place bids on their behalf. The
    Commission assumes no responsibility or liability for these matters.

## Mock Auction -- November 3, 2008 

68. All qualified bidders will be eligible to participate in a mock
    auction on Monday, November 3, 2008. The mock auction will enable
    bidders to become familiar with the FCC Auction System prior to the
    auction. Participation by all bidders is strongly recommended.
    Details will be announced by public notice.

# AUCTION EVENT

69. The first round of bidding for Auction 85 will begin on Wednesday,
    November 5, 2008. The initial bidding schedule will be announced in
    a public notice listing the qualified bidders, which is to be
    released approximately 10 days before the start of the auction.

## Auction Structure

### Simultaneous Multiple Round Auction

70. In the *Auction 85 Comment Public Notice*, the Bureaus proposed to
    auction all construction permits in Auction 85 in a single auction
    using the Commission's standard simultaneous multiple-round ("SMR")
    auction format.[^76] This type of auction offers every construction
    permit for bid at the same time and consists of successive bidding
    rounds in which eligible bidders may place bids on individual
    construction permits. A bidder may bid on, and potentially win, any
    number of construction permits. Typically, bidding remains open on
    all construction permits until bidding stops on every construction
    permit.

71. The Bureaus received no comment on this issue. The Commission has
    found that in most circumstances an SMR auction format is the best
    method to advance the goals of competitive bidding.[^77] This format
    generates the information about relative prices during the course of
    the auction and provides bidders with flexibility to pursue back-up
    strategies. Furthermore, an SMR auction format is likely to place
    construction permits in the hands of the bidders that are most
    likely to put the spectrum to effective and efficient use. We
    therefore conclude that it is operationally feasible and appropriate
    to auction the LPTV and TV Translator digital companion channel
    construction permits through a simultaneous multiple round auction.
    Unless otherwise announced, bids will be accepted on all
    construction permits in each round of the auction until bidding
    stops on every construction permit.

### Eligibility and Activity Rules 

72. As discussed above, we will use upfront payments to determine the
    initial (maximum) eligibility (as measured in bidding units) for
    Auction 85.[^78] The amount of the upfront payment submitted by a
    bidder determines initial bidding eligibility, the maximum number of
    bidding units on which a bidder may be active. As noted earlier,
    each construction permit is assigned a specific number of bidding
    units listed in Attachment A. Bidding units for a given construction
    permit do not change as prices rise during the auction. A bidder's
    upfront payment is not attributed to specific construction permits.
    Rather, a bidder may place bids on any of the construction permits
    designated for that applicant as long as the total number of bidding
    units associated with those construction permits does not exceed its
    current eligibility. Eligibility cannot be increased during the
    auction; it can only remain the same or decrease. Thus, in
    calculating its upfront payment amount, an applicant must determine
    the maximum number of bidding units it may wish to bid on or hold
    provisionally winning bids on in any single round, and submit an
    upfront payment amount covering that total number of bidding units.
    At a minimum, an applicant's upfront payment must cover the bidding
    units for at least one of the licenses it selected on its short-form
    application. The total upfront payment does not affect the total
    dollar amount a bidder may bid on any given construction permit.

73. In order to ensure that an auction closes within a reasonable period
    of time, an activity rule requires bidders to bid actively
    throughout the auction, rather than wait until late in the auction
    before participating. Bidders are required to be active on a
    specific percentage of their current bidding eligibility during each
    round of the auction.

74. A bidder's activity level in a round is the sum of the bidding units
    associated with any construction permits covered by that bidder's
    new and provisionally winning bids. A bidder is considered active on
    a construction permit in the current round if it is either the
    provisionally winning bidder at the end of the previous bidding
    round or if it submits a bid in the current round (*see* "Bid
    Amounts" in Section IV.B.3, *below*).

75. In addition, we received no comments on our proposal for a single
    stage auction. Therefore, in order to ensure that the auction closes
    within a reasonable period of time, we adopt our proposal with the
    following activity requirement: a bidder is required to be active on
    100 percent of its current eligibility during each round of the
    auction. That is, a bidder must either place a bid and/or be the
    provisionally winning bidder during each round of the auction.
    Failure to maintain the requisite activity level will result in the
    use of an activity rule waiver, if any remain, or a reduction in the
    bidder\'s eligibility, possibly curtailing or eliminating the
    bidder\'s ability to place bids in the auction.[^79]

### Activity Rule Waivers

76. In the *Auction 85 Comment Public Notice*, the Bureaus proposed that
    each bidder in the auction be provided with three activity rule
    waivers.[^80] The Bureaus received no comments on this issue.

77. Therefore, we adopt our proposal to provide bidders with three
    activity rule waivers. Bidders may use an activity rule waiver 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 activity level. An activity rule waiver applies to an entire
    round of bidding and not to a particular construction permit.
    Activity rule waivers can be either applied proactively by the
    bidder (a "proactive waiver") or applied automatically by the FCC
    Auction System (an "automatic waiver") and are principally a
    mechanism for auction participants to avoid the loss of bidding
    eligibility in the event that exigent circumstances prevent them
    from placing a bid in a particular round.

78. The FCC Auction System assumes that bidders with insufficient
    activity would prefer to apply an activity rule waiver (if
    available) rather than lose bidding eligibility. Therefore, the
    system will automatically apply a waiver at the end of any bidding
    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. If a bidder has no waivers remaining and does not
    satisfy the activity requirement, the FCC Auction System will
    permanently reduce the bidder's eligibility, possibly curtailing or
    eliminating the bidder's ability to place additional bids in the
    auction.

79. 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
    bidding round by using the "reduce eligibility" function in the FCC
    Auction System. In this case, the bidder's eligibility is
    permanently reduced to bring the bidder into compliance with the
    activity rules as described in "Eligibility and Activity Rules"
    (*see* Section IV.A.2 *above*). Once eligibility has been reduced, a
    bidder will not be permitted to regain its lost bidding eligibility,
    even if the round has not yet ended.

80. Finally, a bidder may apply an activity rule waiver proactively as a
    means to keep the auction open without placing a bid. If a bidder
    proactively applies an activity waiver (using the "apply waiver"
    function in the FCC Auction System) during a bidding round in which
    no bids are placed, the auction will remain open and the bidder's
    eligibility will be preserved. However, an automatic waiver applied
    by the FCC Auction System in a round in which there are no new bids
    or proactive waivers will not keep the auction open. A bidder cannot
    submit a proactive waiver after submitting a bid in a round, and
    submitting a proactive waiver will preclude a bidder from placing
    any bids in that round. **It is important for bidders to understand
    that applying a waiver is irreversible. Once a bidder submits a
    proactive waiver, the bidder cannot unsubmit the waiver, even if the
    round has not yet ended.**

### Auction Stopping Rules

81. For Auction 85, the Bureaus proposed to employ a simultaneous
    stopping rule approach.[^81] A simultaneous stopping rule means that
    all construction permits remain available for bidding until bidding
    closes simultaneously on all construction permits. More
    specifically, bidding will close simultaneously on all construction
    permits after the first round in which no bidder submits any new
    bids or applies a proactive waiver.

82. The Bureaus also sought comment on alternative versions of the
    simultaneous stopping rule for Auction 85:

    Option 1. The auction would close for all construction permits after
    the first round in which no bidder applies a waiver or submits any
    new bids on any construction permit on which it is not the
    provisionally winning bidder. Thus, absent any other bidding
    activity, a bidder placing a new bid on a construction permit for
    which it is the provisionally winning bidder would not keep the
    auction open under this modified stopping rule.

    Option 2. The auction would end after a specified number of
    additional rounds. If the Bureaus invoke this special stopping rule,
    they will accept bids in the specified final round(s) and the
    auction will close.

    Option 3. The auction would remain open, even if no bidder places
    any new bids or applies a waiver. In this event, the effect would be
    the same as if a bidder had applied a waiver. Thus, the activity
    rule will apply as usual, and a bidder with insufficient activity
    will either lose bidding eligibility or use a waiver.

83. The Bureaus propose to exercise these options only in circumstances
    such as where the auction is proceeding unusually slowly or quickly,
    where there is minimal overall bidding activity or where it appears
    likely that the auction will not close within a reasonable period of
    time or will close prematurely.[^82] Before exercising these
    options, the Bureaus likely may attempt to change the pace of the
    auction by, for example, changing the number of bidding rounds per
    day, and/or changing the amount of the minimum acceptable bids.

84. The Bureaus received no comments on the proposals about stopping
    rules. The Bureaus find that the proposed stopping rules are
    appropriate for Auction 85, because experience in prior auctions
    demonstrates that these stopping rules balance the interests of
    administrative efficiency and maximum bidder participation.
    Therefore, the Bureaus adopt the proposals made in the *Auction 85
    Comment Public Notice*. Auction 85 will begin under the simultaneous
    stopping rule approach, and the Bureaus will retain the discretion
    to employ the other proposed versions of the stopping rule.
    Moreover, the Bureaus will retain the discretion to use the modified
    stopping rule with or without prior announcement during the auction.

### Auction Delay, Suspension, or Cancellation

85. In the *Auction 85 Comment Public Notice*, the Bureaus proposed
    that, by public notice or by announcement during the auction, they
    may delay, suspend, or cancel the auction in the event of natural
    disaster, technical obstacle, administrative or weather necessity,
    evidence of an auction security breach or unlawful bidding activity,
    or for any other reason that affects the fair and efficient conduct
    of competitive bidding.[^83] The Bureaus received no comment on this
    issue.

86. Because our approach to notification of delay during an auction has
    proven effective in resolving exigent circumstances in previous
    auctions, we adopt the Bureaus' proposed rules regarding auction
    delay, suspension, or cancellation. By public notice or by
    announcement during the auction, the Bureaus may delay, suspend, or
    cancel the auction in the event of natural disaster, technical
    obstacle, administrative or weather necessity, evidence of an
    auction security breach or unlawful bidding activity, or for any
    other reason that affects the fair and competitive conduct of
    competitive bidding. In such cases, the Bureaus, in their 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 Bureaus to delay or suspend the auction.
    We emphasize that exercise of this authority is solely within the
    discretion of the Bureaus, 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

87. The initial schedule of bidding rounds will be announced in the
    public notice listing the qualified bidders, which is released
    approximately 10 days before the start of the auction. Each bidding
    round is followed by the release of round results. Multiple bidding
    rounds may be conducted in a given day. Details regarding round
    results formats and locations will also be included in the qualified
    bidder's public notice.

88. The Bureaus have the 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 Bureaus may increase or decrease the amount of time
    for the bidding rounds, the amount of time between rounds, or the
    number of rounds per day, depending upon the bidding activity level
    and other factors.

### Reserve Price and Minimum Opening Bids

89. In the *Auction 85 Comment Public Notice*, the Bureaus did not
    propose to establish a reserve price for the construction permits to
    be offered in Auction 85. The Bureaus, however, did propose to
    establish minimum opening bids for each construction permit,
    reasoning that a minimum opening bid, which has been used in other
    auctions, is an effective bidding tool for accelerating the
    competitive bidding process.[^84] Specifically, a minimum opening
    bid was proposed for each construction permit listed in
    Attachment A. The minimum opening bid was determined by taking into
    account the type of service and class of facility offered, and the
    number of potential over-the-air viewers covered by the proposed
    LPTV or TV translator broadcast facility. The Bureaus sought comment
    on the proposed minimum opening bids. In the alternative, the
    Bureaus sought comment on whether, consistent with the Section
    309(j) of the Communications Act of 1934, as amended,[^85] the
    public interest would be served by having no minimum opening bid or
    reserve price.[^86] The Commission did not receive any comments
    addressing the proposed minimum opening bids. Accordingly, the
    Bureaus adopt the proposed minimum opening bids.

90. The specific minimum opening bid amounts for each construction
    permit available in Auction 85 are set forth in Attachment A.

### Bid Amounts 

91. In the *Auction* 85 *Comment Public Notice*, the Bureaus proposed
    that in each round, eligible bidders be able to place a bid on a
    given construction permit in any of up to nine different amounts.
    Under this proposal, the FCC Auction System interface will list the
    nine acceptable bid amounts for each construction permit.[^87] The
    Bureaus received no comments on this proposal; therefore, we adopt
    our proposal.

92. The first of the acceptable bid amounts is called the minimum
    acceptable bid amount. The minimum acceptable bid amount for a
    construction permit will be equal to its minimum opening bid amount
    until there is a provisionally winning bid for the construction
    permit. After there is a provisionally winning bid for a permit, the
    minimum acceptable bid amount will be a certain percentage higher.
    That is, the minimum acceptable bid amount will be calculated by
    multiplying the provisionally winning bid amount times one plus the
    minimum acceptable bid percentage. For example, if the minimum
    acceptable bid percentage is 10 percent, the minimum acceptable bid
    amount will equal (provisionally winning bid amount) \* (1.10),
    rounded.[^88]

93. In the *Auction 85 Comment Public Notice*, we proposed to use a
    minimum acceptable bid percentage of 10 percent. The Bureaus did not
    receive any comments on this proposal. Our experience in the
    previous broadcast auctions assures us that a bid increment
    percentage of 10 percent is sufficient to ensure active bidding.
    Therefore, we will begin the auction with a minimum acceptable bid
    percentage of 10 percent.

94. The eight additional bid amounts are calculated using the minimum
    acceptable bid amount and a bid increment percentage. The first
    additional acceptable bid amount equals the minimum acceptable bid
    amount times one plus the bid increment percentage, rounded. If, for
    example, the increment percentage is 10 percent, the calculation is
    (minimum acceptable bid amount) \* (1 + 0.10), rounded, or (minimum
    acceptable bid amount) \* 1.10, rounded; the second additional
    acceptable bid amount equals the minimum acceptable bid amount times
    one plus two times the bid increment percentage, rounded, or
    (minimum acceptable bid amount) \* 1.20, rounded; the third
    additional acceptable bid amount equals the minimum acceptable bid
    amount times one plus three times the bid increment percentage,
    rounded, or (minimum acceptable bid amount) \* 1.30, rounded; etc.
    We will round the results of these calculations using our standard
    rounding procedures.[^89] Note that the bid increment percentage
    need not be the same as the minimum acceptable bid percentage.

95. In the *Auction 85 Comment Public Notice*, we proposed to use a bid
    increment percentage which also is 10 percent. We received no
    comment on this issue. We believe that a bid increment percentage of
    10 percent will give bidders the flexibility to speed up the pace of
    the auction, if appropriate. We therefore adopt our proposal, and
    will begin the auction with a bid increment percentage of 10
    percent.

96. The Bureaus did not receive any comments on their proposal to retain
    the discretion to change the minimum acceptable bid amounts, the
    minimum acceptable bid percentage, and the bid increment percentage
    if they determine that circumstances so dictate. The Bureaus will do
    so by announcement in the FCC Auction System during the auction.

### Provisionally Winning Bids 

97. At the end of each bidding round, a "provisionally winning bid" will
    be determined based on the highest bid amount received for each
    construction permit. A provisionally winning bid will remain the
    provisionally winning bid until there is a higher bid on the same
    construction permit at the close of a subsequent round.
    Provisionally winning bids at the end of the auction become the
    winning bids. Bidders are reminded that provisionally winning bids
    count toward activity for purposes of the activity rule.[^90]

98. In the *Auction* 85 *Comment Public Notice*, the Bureaus proposed to
    use a random number generator to select a single provisionally
    winning bid in the event of identical high bid amounts being
    submitted on a construction permit in a given round (i.e., tied
    bids).[^91] No comments were received on this proposal. Therefore,
    the Bureaus adopt their proposal.

99. Hence, the FCC Auction System will assign a random number to each
    bid upon submission. The tied bid with the highest random number
    wins the tiebreaker, and becomes the provisionally winning bid.
    Bidders, regardless of whether they hold a provisionally winning
    bid, can submit higher bids in subsequent rounds. However, if the
    auction were to end with no other bids being placed, the winning
    bidder would be the one that placed the provisionally winning bid.

100. All bidding will take place remotely either through the FCC Auction
     System or by telephonic bidding. There will be no on-site bidding
     during Auction 85. Please note that 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. The length of a call to place a telephonic bid may vary;
     please allow a minimum of ten minutes.

101. A bidder's ability to bid on specific construction permits is
     determined by two factors: (1) the construction permits designated
     for that applicant and (2) the bidder's eligibility. The bid
     submission screens will allow bidders to submit bids on only those
     construction permits designated for that bidder on Attachment A of
     this Public Notice.

102. In order to access the bidding function of the FCC Auction System,
     bidders must be logged in during the bidding round using the
     passcode generated by the SecurID^®^ card and a personal
     identification number (PIN) created by the bidder. Bidders are
     strongly encouraged to print a "round summary" for each round after
     they have completed all of their activity for that round.

103. In each round, eligible bidders will be able to place bids on a
     given construction permit in any of nine different bid
     amounts.[^92] For each construction permit, the FCC Auction System
     will list the nine acceptable bid amounts in a drop-down box.[^93]
     Bidders use the drop-down box to select from among the acceptable
     bid amounts. The FCC Auction System also includes an "upload"
     function that allows bidders to upload text files containing bid
     information.

104. Until a bid has been placed on a construction permit, the minimum
     acceptable bid amount for that construction permit will be equal to
     its minimum opening bid amount. Once there are bids on a
     construction permit, minimum acceptable bids for a construction
     permit for the following round will be determined as described in
     Section IV.B.3, above.

105. During a round, an eligible bidder may submit bids for as many
     construction permits as it wishes (providing that it is eligible to
     bid), remove bids placed in the current bidding round, or
     permanently reduce eligibility. If a bidder submits multiple bids
     for the same construction permit in the same round -- multiple bids
     on the exact same construction permit -- the system takes the last
     bid entered as that bidder's bid for the round. Bidders should note
     that the bidding units associated with construction permits for
     which the bidder has removed bids do not count towards the bidder's
     current activity.

### Bid Removal and Bid Withdrawal

106. In the *Auction 85 Comment Public Notice*, the Bureaus proposed bid
     removal procedures.[^94] Before the close of a bidding round, a
     bidder has the option of removing any bids placed in that round. By
     removing selected bids in the FCC Auction 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 removed
     does not count toward bidding activity. Once a round closes, a
     bidder may no longer remove a bid. We received no comments on the
     issue of bid removals. These removal procedures will enhance bidder
     flexibility during the auction. Therefore, the Bureaus adopt their
     proposed procedures concerning bid removals for Auction 85.

107. Once a round closes, a bidder may no longer remove a bid. In the
     *Auction 85 Comment Public Notice*, the Bureaus proposed bid
     withdrawal procedures.[^95] The Bureaus proposed to prohibit
     bidders from withdrawing any bids after the round in which bids
     were placed has closed. The Bureaus received no comments on the
     issue of bid withdrawal. In recognition that the permits that are
     subject of this auction are being offered as a means of
     facilitating the transition of existing analog LPTV and TV
     translator stations to digital operation and are not intended to
     provide opportunity for expansion of LPTV and TV translator service
     by existing licensees into new markets, the Bureaus adopt their
     proposal. Bid withdrawals are prohibited in Auction 85.

### Round Results

108. Reports reflecting bidders' identities for Auction 85 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.

109. Bids placed during a round will not be made public until the
     conclusion of that round. After a round closes, the Bureaus will
     compile reports of all bids placed, current provisionally winning
     bids, new minimum acceptable bid amounts for the following round,
     whether the construction permit is FCC held, and bidder eligibility
     status (bidding eligibility and activity rule waivers), and post
     the reports for public access.

### Auction Announcements

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

# POST-AUCTION PROCEDURES

111. Shortly after bidding has ended, the Commission will issue a public
     notice declaring the auction closed, identifying the winning
     bidders, and establishing the deadlines for submitting down
     payments, long-form applications, and final payments, the long-form
     application (FCC Forms 301-CA or 346).

## Down Payments 

112. 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 Commission for Auction 85 to 20 percent of the
     net amount of its winning bids (gross bids less any applicable new
     entrant bidding credits).[^96]

## Final Payments

113. Each winning bidder will be required to submit the balance of the
     net amount of its winning bids within 10 business days after the
     applicable deadline for submitting down payments.[^97]

## Long-Form Application 

114. Within thirty days after the release of the auction closing notice,
     winning bidders must submit electronically a properly completed
     long-form application (FCC Forms 301-CA or 346), and required
     exhibits for each construction permit won through Auction 85. A
     winning bidder claiming new entrant status must include an exhibit
     demonstrating its eligibility for the bidding credit.[^98] Further
     filing instructions will be provided to auction winners at the
     close of the auction.

## Default and Disqualification

115. Any winning 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 final payment within the
     prescribed period of time, or is otherwise disqualified) will be
     subject to the payments described in 47 C.F.R. § 1.2104(g)(2). The
     payments include both a deficiency payment, equal to the difference
     between the amount of the bidder's bid and the amount of the
     winning bid the next time a construction permit covering the same
     spectrum is won in an auction, plus an additional payment equal to
     a percentage of the defaulter's bid or of the subsequent winning
     bid, whichever is less.

116. The percentage of the applicable bid to be assessed as an
     additional payment for defaults in a particular auction is
     established in advance of the auction. Accordingly, in the *Auction
     85 Comment Public Notice*, the Bureaus proposed to set the
     additional default payment for this auction at twenty percent (20%)
     of the applicable bid. The Bureaus sought comment on our proposal.
     No comments were received on this proposal. Based on prior
     experience and the record on this issue, the Bureaus will set the
     additional default payment for this auction at twenty percent (20%)
     of the applicable bid.

117. Finally, in the event of a default, the Commission may re-auction
     the construction permit or offer it to the next highest bidder (in
     descending order) at its final bid amount.[^99] 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 authorizations held by the applicant.[^100]

## Refund of Remaining Upfront Payment Balance 

118. All applicants that submit upfront payments but after the close of
     the auction are not winning bidders for a construction permit in
     Auction 85 may be entitled to a refund of their remaining upfront
     payment balance after the conclusion of the auction. All refunds
     will be returned to the payor of record, as identified on the FCC
     Form 159, unless the payor submits written authorization
     instructing otherwise.

119. Bidders that drop out of the auction completely may be eligible for
     a refund of their upfront payments before the close of the auction.
     Qualified bidders that have exhausted all of their activity rule
     waivers and have no remaining bidding eligibility may also be
     eligible for a refund of their upfront payment before the close of
     the auction.

120. Bidders are encouraged to file their refund information
     electronically using the **Refund Information** icon found on the
     *Auction Application Manager* page or through the **Wire Transfer
     for Refund Purposes** link available in various locations
     throughout the FCC Auction System. If an applicant has completed
     the refund instructions electronically, the refund will be sent
     automatically. If an applicant has not completed the refund
     instructions electronically, the applicant may send a written
     request for the refund, including wire transfer instructions and
     FCC Registration Number (FRN) by facsimile to the Auctions
     Accounting Group at (202) 418-2843 or by mail to:

> Federal Communications Commission
>
> Financial Operations
>
> Auctions Accounting Group
>
> Gail Glasser
>
> 445 12th Street, SW, Room 1-C864
>
> Washington, DC 20554
>
> NOTE: Refund processing generally takes up to two weeks to complete.
> Bidders with questions about refunds should contact Gail Glasser at
> (202) 418-0578.

#  {#section .unnumbered}

# Contact information

121. Contact Information Table:

+-----------------------------------+----------------------------------+
| **General Auction Information**   | **FCC Auctions Hotline**         |
+-----------------------------------+----------------------------------+
| General Auction Questions         | \(888\) 225-5322, option two;    |
+-----------------------------------+----------------------------------+
| Seminar Registration              | or (717) 338-2868                |
+-----------------------------------+----------------------------------+
| **Auction 85 Process and          | **Auctions and Spectrum Access   |
| Procedures**                      | Division**                       |
|                                   |                                  |
|                                   | **(202) 418 -0660**              |
|                                   |                                  |
|                                   | Roy Knowles (Analyst)            |
|                                   |                                  |
|                                   | Linda Sanderson (Project         |
|                                   | Manager)                         |
+-----------------------------------+----------------------------------+
| **Auction 85 Legal Information**  | **Auctions and Spectrum Access   |
|                                   | Division**                       |
+-----------------------------------+----------------------------------+
| Auction Rules, Policies,          | **(202) 418-0660**               |
| Regulations                       |                                  |
|                                   | Lynne Milne (Attorney)           |
+-----------------------------------+----------------------------------+
| **Licensing Information**         | **Video Division (202)           |
|                                   | 418-1600**                       |
+-----------------------------------+----------------------------------+
| Service Rules, Policies,          | Shaun Maher (Attorney)           |
| Regulations                       |                                  |
|                                   | Hossein Hashemzadeh (Engineer)   |
| Licensing Issues, Engineering     |                                  |
| Issues                            |                                  |
|                                   |                                  |
| Due Diligence, Incumbency Issues  |                                  |
+-----------------------------------+----------------------------------+
| **Technical Support**             | **FCC Auctions Technical Support |
|                                   | Hotline**                        |
+-----------------------------------+----------------------------------+
| Electronic Filing                 | \(877\) 480-3201, option nine;   |
|                                   | or (202) 414-1250                |
+-----------------------------------+----------------------------------+
| FCC Auction System                | \(202\) 414-1255 (TTY)           |
| (Hardware/Software Issues)        |                                  |
|                                   | Hours of service: 8:00 a.m. --   |
|                                   | 6:00 p.m. ET,                    |
|                                   |                                  |
|                                   | Monday through Friday            |
+-----------------------------------+----------------------------------+
| **Payment Information**           | **FCC Auctions Accounting        |
|                                   | Branch**                         |
+-----------------------------------+----------------------------------+
| Wire Transfers                    | Gail Glasser                     |
|                                   |                                  |
|                                   | \(202\) 418-0578                 |
+-----------------------------------+----------------------------------+
| Refunds                           | \(202\) 418-2843 (Fax)           |
+-----------------------------------+----------------------------------+
| **Auction Bidder Line**           | Will be furnished only to        |
|                                   | qualified bidders                |
+-----------------------------------+----------------------------------+
| **FCC Copy Contractor**           | **Best Copy and Printing, Inc.** |
+-----------------------------------+----------------------------------+
| Additional Copies of              | 445 12th Street, SW, Room        |
|                                   | CY-B402                          |
+-----------------------------------+----------------------------------+
| Commission Documents              | Washington, DC 20554             |
|                                   |                                  |
|                                   | \(800\) 378-3160                 |
|                                   |                                  |
|                                   | [http://www.bcpiw                |
|                                   | eb.com](http://www.bcpiweb.com/) |
+-----------------------------------+----------------------------------+
| **Press Information**             | Matt Nodine (202) 418-1646       |
+-----------------------------------+----------------------------------+
| **FCC Forms**                     | \(800\) 418-3676 (outside        |
|                                   | Washington, DC)                  |
|                                   |                                  |
|                                   | \(202\) 418-3676 (in the         |
|                                   | Washington area)                 |
|                                   |                                  |
|                                   | <h                               |
|                                   | ttp://www.fcc.gov/formpage.html> |
+-----------------------------------+----------------------------------+
| **Accessible Formats**            | **Consumer and Governmental      |
|                                   | Affairs Bureau**                 |
+-----------------------------------+----------------------------------+
| Braille, large print, electronic  | \(202\) 418-0530 or (202)        |
| files, or                         | 418-0432 (TTY)                   |
+-----------------------------------+----------------------------------+
| audio format for people with      | <fcc504@fcc.gov>                 |
| disabilities                      |                                  |
+-----------------------------------+----------------------------------+
| **FCC Internet Sites**            | [http://w                        |
|                                   | ww.fcc.gov](http://www.fcc.gov/) |
|                                   |                                  |
|                                   | [h                               |
|                                   | ttp://wireless.fcc.gov/auctions] |
|                                   | (http://wireless.fcc.gov/auction |
|                                   | s/default.htm?job=auctions_home) |
|                                   |                                  |
|                                   | <http://wireless.fcc.gov/uls>    |
|                                   |                                  |
|                                   | <http://www.fcc.gov/mb>          |
+-----------------------------------+----------------------------------+

\-- FCC \--

**ATTACHMENT A**

[]{.mark}

[]{.mark}

This page was intentionally inserted as a placeholder for Attachment A,
which is available as a separate file in Microsoft^®^ Excel format.

**ATTACHMENT B**

**Auction-Specific Instructions for**

**FCC Remittance Advice (FCC Form 159-July 2005 Edition)**

**[Upfront Payments]{.underline}**

The following information supplements the standard instructions for FCC
Form 159 (Revised 7/05), and is provided to help ensure correct
completion of FCC Form 159 for upfront payments for Auction 85.
Applicants need to complete FCC Form 159 carefully, because:

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

```{=html}
<!-- -->
```
-   **Lack of consistency between information provided in FCC Form 159
    (Revised 7/05), 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

Short-form (FCC Form 175) are described below:

Block

Number Required Information

> 1 LOCKBOX \# - Enter "979085"
>
> 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 7/05).

8.  Street Address, City, State, ZIP Code - Enter the street mailing
    address (**not Post Office box number**) where mail should be sent
    to the payer. If the applicant is the payer, these entries would be
    the same as FCC Form 175 from the Applicant Information section.

> 9 Daytime Telephone Number - Enter the telephone number of a person
> knowledgeable about this upfront payment.

10. Country Code - For addresses outside the United States, enter the
    appropriate postal country code (available from the Mailing
    Requirements Department of the U.S. Postal Service).

> 11 Payer FRN - Enter the payer's ten-digit FCC Registration Number
> ("FRN") registered in the Commission Registration System ("CORES").
>
> 21 Applicant FRN (Complete only if applicant is different than payer.)
> -- Enter the applicant's ten-digit FRN registered in CORES.
>
> 24A Payment Type Code - Enter "A85U"
>
> 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 "85" (indicating Auction 85).

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
    21 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]{.underline}**

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

**ATTACHMENT C**

**Summary Listing of Judicial, Commission and Bureau Documents**

**Addressing Application of the Anti‑Collusion Rule**

## Judicial Decisions:

*USA v. Northeast Communications of Wisconsin, Inc.*, No. 07-C-715, slip
op. (E.D.Wis. June 15, 2008).

*Star Wireless, LLC v. FCC*, 522 F.3d 469 (D.C. Cir. 2008).

*High Plains Wireless, L.P. v. FCC*, 276 F.3d 599 (D.C. Cir. 2002).

## Commission Decisions:

Service Rules for the 698-746, 747-762 and 777-792 MHz Bands, WT Docket
No. 06‑150, *Second Report and Order*, FCC 07-123, 22 FCC Rcd 15289,
15395 ¶¶ 285-86, 15489 (2007).

Star Wireless, LLC and Northeast Communications of Wisconsin, Inc.,
*Order on Review*, FCC 07-80, 22 FCC Rcd 8943 (2007).

Amendment of Part 1 of the Commission's Rules -- Competitive Bidding
Procedures, WT Docket No. 97-82, *Seventh Report and Order*, FCC 01-270,
16 FCC Rcd 17546 (2001).

Notice of Apparent Liability for Forfeiture of Western PCS BTA 1 Corp.,
*Memorandum Opinion and Orde*r, FCC 99-385, 14 FCC Rcd 21571 (1999);
Application of Western PCS BTA I Corp., *Notice of Apparent Liability
for Forfeiture,* FCC 98-42, 13 FCC Rcd 8305 (1998).

Notice of Apparent Liability for Forfeiture of US West Communications,
Inc., *Order*, FCC 99-90, 14 FCC Rcd 8816 (1999); Application of US West
Communications, Inc., *Notice of Apparent Liability for Forfeiture,* FCC
98-41, 13 FCC Rcd 8286 (1998).

Application of Mercury PCS II, LLC, *Memorandum Opinion and Order*, FCC
98-203, 13 FCC Rcd 23755 (1998); Applications of: Mercury PCS II, LLC,
*Notice of Apparent Liability for Forfeiture,* FCC 97-388, 12 FCC Rcd
17970 (1997).

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,* FCC 97-413, 13 FCC Rcd 374,
463‑469 ¶¶ 155-166 (1997).

Commercial Realty St. Pete, Inc., *Memorandum Opinion and Order,* FCC
96-400, 11 FCC Rcd 15374 (1996); Commercial Realty St. Pete, Inc.,
*Notice of Apparent Liability for Forfeiture,* FCC 95-58, 10 FCC Rcd
4277 (1995).

Implementation of Section 309(j) of the Communications Act --
Competitive Bidding, PP Docket No. 93‑253, *Memorandum Opinion and
Order*, FCC 94-295, 9 FCC Rcd 7684, 7687‑7689 ¶¶ 8-12 (1994).

Implementation of Section 309(j) of the Communications Act --
Competitive Bidding, PP Docket No. 93‑253, *Fourth Memorandum Opinion
and Order*, FCC 94-264, 9 FCC Rcd 6858, 6866‑6869 ¶¶ 47-60 (1994).

Implementation of Section 309(j) of the Communications Act --
Competitive Bidding, PP Docket No. 93‑253, *Second Memorandum Opinion
and Order*, FCC 94-215, 9 FCC Rcd 7245, 7253‑7254 ¶¶ 48-53 (1994).

Implementation of Section 309(j) of the Communications Act --
Competitive Bidding, PP Docket No. 93‑253, *Fifth Report and Order,* FCC
94-178, 9 FCC Rcd 5532, 5570‑5571 ¶¶ 91-92 (1994).

Implementation of Section 309(j) of the Communications Act --
Competitive Bidding, PP Docket No. 93‑253, *Second Report and Order*,
FCC 94‑61, 9 FCC Rcd 2348, 2386‑2388 ¶¶ 221‑226 (1994).

## Wireless Telecommunications Bureau Decisions:

Lotus Communications Corp., *Order*, DA 08-1364 (Wireless Telecom. Bur.
rel. June 9, 2008).

Application of Nevada Wireless, *Memorandum Opinion and Order,* DA
98-1137, 13 FCC Rcd 11973 (Wireless Telecom. Bur. 1998).

Applications of High Plains Wireless, L.P., *Memorandum Opinion and
Order,* DA 97-2451, 12 FCC Rcd 19627 (Wireless Telecom. Bur. 1997).

Applications of Mercury PCS II, LLC, *Memorandum Opinion and Order on
Reconsideration,* DA 97-2324, 12 FCC Rcd 18093 (Wireless Telecom. Bur.
1997); Applications of Mercury PCS II, LLC, *Memorandum Opinion and
Order,* DA 97-1782, 13 FCC Rcd 5756 (Wireless Telecom. Bur. 1997).

Applications of GWI PCS, Inc., *Memorandum Opinion and Order,* DA
97-674, 12 FCC Rcd 6441 (Wireless Telecom. Bur. 1997).

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, MM Docket No. 94-131, *Order,*
DA 95-2292, 11 FCC Rcd 9655 (Wireless Telecom. Bur. 1995).

### Public Notices:

Wireless Telecommunications Bureau Reminder of Anti-Collusion Rule
Obligations, *Public Notice*, DA 04-3677, 19 FCC Rcd 22880 (Wireless
Telecom. Bur. 2004).

Wireless Telecommunications Bureau Staff Provides Guidance on Completing
the Short-Form Application (FCC Form 175) for Auction No. 40, Auction of
Licenses for Lower and Upper Paging Bands, *Public Notice*, DA 01-2122,
16 FCC Rcd 16391 (Wireless Telecom. Bur. 2001).

Wireless Telecommunications Bureau Responds to Questions About the Local
Multipoint Distribution Service Auction, *Public Notice*, DA 98-37, 13
FCC Rcd 341 (Wireless Telecom. Bur. 1998).

Wireless Telecommunications Bureau Provides Guidance on the
Anti‑Collusion Rule for D, E and F Block Bidders, *Public* *Notice,* DA
96-1460, 11 FCC Rcd 10134 (Wireless Telecom. Bur. 1996).

FCC Staff Clarifies Application of Anti‑Collusion Rule to Broadband PCS
\"C\" Block Reauction, *Public Notice,* DA 96-929, 11 FCC Rcd 7031 (Auc.
Div. 1996).

Wireless Telecommunications Bureau Clarifies Spectrum Auction
Anti‑Collusion Rules, *Public Notice,* DA 95-2244, 11 FCC Rcd 9645
(Wireless Telecom. Bur. 1995).

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

Letter to John Cooper, Aurora Communications, Inc., from Margaret W.
Wiener, DA 06-157, 21 FCC Rcd 523 (Auc. Div. 2006).

Letter to Howard A. Kalmenson, Lotus Communications Corp., from Margaret
W. Wiener, DA 06-156, 21 FCC Rcd 520 (Auc. Div. 2006).

Letter to Colby M. May from Barbara A. Kreisman and Margaret W. Wiener,
DA 05-2445, 20 FCC Rcd 14648 (Video and Auc. Divs. 2005).

Letter to Robert Pettit from Margaret W. Wiener, DA 00-2905, 16 FCC Rcd
10080 (Auc. Div. 2000).

Letter to John Reardon, Mobex Communications, Inc., from Amy J. Zoslov,
DA 98-1861, 13 FCC Rcd 17877 (Auc. Div. 1998).

Letter to Elliott J. Greenwald from Christopher J. Wright, DA 98-644, 13
FCC Rcd 7132 (Gen. Counsel 1998).

Letter to David L. Nace from Kathleen O'Brien Ham, DA 96-1566, 11 FCC
Rcd 11363 (Auc. Div. 1996).

Letter to Mark Grady from Kathleen O'Brien Ham, DA 96-587, 11 FCC Rcd
10895 (Auc. Div. 1996).

Letter to Jonathan D. Blake from Kathleen O'Brien Ham, DA 95-2404, 10
FCC Rcd 13783 (Auc. Div. 1995).

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

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

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, 1994).

## Enforcement Bureau Decisions:

Application of Star Wireless, LLC, *Forfeiture Order*, DA 04-3026, 19
FCC Rcd 18626 (Enf. Bur. 2004); Application of Star Wireless, LLC,
*Notice of Apparent Liability for Forfeiture*, DA 03-2722, 18 FCC Rcd
17648 (Enf. Bur. 2003).

Application of Northeast Communications of Wisconsin, Inc., *Forfeiture
Order*, DA 04-3027, 19 FCC Rcd 18635 (Enf. Bur. 2004); Application of
Northeast Communications of Wisconsin, Inc., *Notice of Apparent
Liability for Forfeiture*, DA 03-2723, 18 FCC Rcd 17672 (Enf. Bur.
2003).

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

*U.S. v. Omnipoint Corp.,* Proposed Final Judgments and Competitive
Impact Statements, Department of Justice, 63 Fed. Reg. 65,228 (Nov. 25,
1998).

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

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

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

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

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

Many of the documents listed in this attachment can be retrieved from
the following Commission web site:
[http://wireless.fcc.gov/auctions/anticollusion](http://wireless.fcc.gov/auctions/default.htm?job=anti_collusion).

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

Additionally, all of the documents can be ordered in hard copy for a fee
from the Commission's duplicating contractor, Best Copy and Printing,
Inc., 445 12th Street, SW, Room CY-B402, Washington, DC 20554, (800)
378-3160 (telephone) or
[http://www.bcpiweb.com](http://www.bcpiweb.com/).

**ATTACHMENT D**

**Auction 85 Seminar Registration Form**

The FCC will sponsor a one-day seminar for Auction 85 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
FCC Auction System.

The seminar will be held:

Wednesday, October 1, 2008

Federal Communications Commission

445 12th Street, SW

Washington, DC 20554

Registration 12:30 p.m. - 1:00 p.m.

Seminar 1:00 p.m. - 3:00 p.m.

If hotel accommodations are needed

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

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

To register, please provide the information listed below no later than

Monday, September 29, 2008,

by either:

E-mail: <auchelp@fcc.gov>

Facsimile: 717-338-2850

Phone: 717-338-2868

Note: The seminar will also be available via webcast and may be viewed
by clicking on the Auction Seminar link on the Auction 85 web page,
[http://wireless.fcc.gov/auctions/85/](http://wireless.fcc.gov/auctions/default.htm?job=auction_summary&id=85).
For further information about accessing FCC webcasts, please visit
<http://www.fcc.gov/realaudio/>.

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

I/We will attend the Auction 85 Seminar, scheduled for Wednesday,
October 1, 2008.

Name of attendee:

Name of attendee:

Company name:

Company address:

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

[^1]: 47 U.S.C. § 309(j)(3)(E)(i)(requirement to seek comment on
    proposed auction procedures); *see* 47 U.S.C.
    § 309(j)(4)(F)(authorization to prescribe reserve price or minimum
    bid); *see also* 47 C.F.R. § 1.2104(c) and (d).

[^2]: "Auction of LPTV and TV Translator Digital Companion Channels
    Scheduled for November 5, 2008; Announcement of Settlement Period
    Ending July 31, 2008; Comment Sought on Competitive Bidding
    Procedures for Auction 85," AU Docket No. 08-22, *Public Notice*, DA
    08-460 (July 17, 2008) ("*Auction 85 Comment Public Notice*"). A
    summary of the *Auction 85 Comment Public Notice* was published at
    73 Fed. Reg. 43230 (July 24, 2008).

[^3]: "Announcement of Filing Window for LPTV and TV Translator Digital
    Companion Channel Applications from May 1, 2006 through May 12,
    2006," *Public Notice*, DA 06-123, 21 FCC Rcd 418 (MB 2006).

[^4]: This public notice also rescheduled the filing period for digital
    companion channel applications. "LPTV and TV Translator Digital
    Companion Channel Applications Filing Window for Auction No. 85,"
    *Public Notice*, DA 06-874, 21 FCC Rcd 4100 (MB/WTB 2006) (*Auction
    85 Filing Requirements Public Notice*).

[^5]: "LPTV and TV Translator Digital Companion Channel Applications
    Mutually Exclusive Proposals," *Public Notice*, DA 06-2034, 21 FCC
    Rcd 11720 (MB/WTB 2006). On August 31, 2006, the Video Division of
    the Media Bureau released a public notice listing engineering
    proposals that were not mutually exclusive with any other
    engineering proposal filed during this auction's initial filing
    period (and thus were deemed "singleton" proposals). *See* "LPTV and
    TV Translator Digital Companion Channel Applications Non-Mutually
    Exclusive Proposals (Auction No. 85)," *Public Notice*, DA 06-1748,
    21 FCC Rcd 9830 (MB Video Div. 2006).

[^6]: *See Auction 85 Comment Public Notice* (announcing opening of
    settlement period); "Auction of LPTV and TV Translator Digital
    Companion Channels Scheduled for November 5, 2008; Settlement Period
    Extended to August 14, 2008," AU Docket No. 08-22, *Public Notice*,
    DA 08-1681 (July 31, 2008) (extending settlement period).

[^7]: When two or more short-form applications (FCC Forms 175) are
    accepted for filing for a construction permit within the same MX
    group in Auction 85, mutual exclusivity exists for auction purposes.
    Implementation of Section 309(j) of the Communications Act --
    Competitive Bidding for Commercial Broadcast and Instructional
    Television Fixed Service Licenses, MM Docket No. 97-234, *First
    Report and Order*, 13 FCC Rcd 15920, 15978-80 ¶¶ 149-154 (1998)
    ("*Broadcast Competitive Bidding First Report and Order*"); *id*.*,
    Memorandum Opinion and Order*, 14 FCC Rcd 8724 (1999) ("*Broadcast
    Competitive Bidding First Reconsideration Order*"); *id., Memorandum
    Opinion and Order*, 14 FCC Rcd 12541 (1999); *aff\'d*, *Orion
    Communications Ltd. v. FCC*, 221 F.3d 196, No. 98-1424, slip op.
    (D.C. Cir. June 13, 2000) (unpublished opinion available at 2000 WL
    816046 (D.C. Cir.); *aff\'d, Orion Communications Ltd. v. FCC*, 213
    F.3d 761 (D.C. Cir. 2000). *See also* Implementation of Section
    309(j) of the Communications Act -- Competitive Bidding, PP Docket
    No. 93-253, *Second Report and Order*, 9 FCC Rcd 2348, 2376 ¶ 165
    (1994) ("*Competitive Bidding Second Report and Order*"). Once
    mutual exclusivity exists for auction purposes, then, even if only
    one applicant for a particular construction permit in Auction 85
    submits an upfront payment, that applicant is required to submit a
    bid in order to obtain the construction permit. Any applicant that
    submits a short-form application that is accepted for filing but
    fails to timely submit an upfront payment will retain its status as
    an applicant in Auction 85 and will remain subject to the
    anti-collusion rules, but, having purchased no bidding eligibility,
    will not be eligible to bid. *Broadcast Competitive Bidding First
    Report and Order*, 13 FCC Rcd at 15980 ¶ 153.

[^8]: *See*, *e.g*., 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*")(modified by
    Erratum, DA 00-2475 (rel. Nov. 3, 2000)); *id.,* *Seventh Report and
    Order*, 16 FCC Rcd 17546 (2001) ("*Part 1 Seventh Report and
    Order*"); *id.,* *Eighth Report and Order*, 17 FCC Rcd 2962 (2002);
    *id.,* *Second Order on Reconsideration of the Third Report and
    Order and Order on Reconsideration of the Fifth Report and Order*,
    18 FCC Rcd 10180 (2003); *id.,* *Second Order on Reconsideration of
    the Fifth Report and Order, 20 FCC Rcd 1942 (2005)*. *See* *also*
    Implementation of the Commercial Spectrum Enhancement Act and
    Modernization of the Commission's Competitive Bidding Rules and
    Procedures, WT Docket No. 05-211, *Report and Order*, 21 FCC Rcd 891
    (2006) ("*CSEA/Part 1 Report and Order*"), petitions for recon.
    pending.

[^9]: *Broadcast Competitive Bidding First Report and Order*, 13 FCC Rcd
    at 15920.

[^10]: *Broadcast Competitive Bidding First Reconsideration Order*, 14
    FCC Rcd at 8724.

[^11]: Implementation of Section 309(j) of the Communications Act --
    Competitive Bidding for Commercial Broadcast and Instructional
    Television Fixed Service Licenses, MM Docket No. 97-234, *Memorandum
    Opinion and Order*, 14 FCC Rcd 12541 (1999) ("*New Entrant Bidding
    Credit Reconsideration Order*").

[^12]: Reexamination of the Comparative Standard for Noncommercial
    Educational Applicants, MM Docket No. 95-31, *Second Report and
    Order*, 18 FCC Rcd 6691 (2003) ("*NCE Second Report and Order*"),
    petitions for recon. pending.

[^13]: When ordering documents from BCPI, please provide the appropriate
    FCC document number (for example, DA 08-460 for the *Auction 85
    Comment Public Notice*, or DA 08-1944 for this Public Notice).

[^14]: 47 C.F.R. § 1.2105(c)(1). Auction 85 applicants' anti-collusion
    requirements were initially described in the *Auction 85 Filing
    Requirements Public Notice*. *See Auction 85 Filing Requirements
    Public Notice*, 21 FCC Rcd at 4100.

[^15]: *See*, *e.g.*, Star Wireless, LLC, *Forfeiture Order*, 19 FCC Rcd
    18626, 18628 ¶ 4, n.19 (EB 2004), upheld on review, Star Wireless,
    LLC and Northeast Communications of Wisconsin, Inc., *Order on
    Review*, FCC 07-80, 22 FCC Rcd 8943 (2007), review denied, *Star
    Wireless, LLC v. FCC*, 522 F.3d 469 (D.C. 2008) (collusion rule
    applies to applicants regardless of whether they are qualified to
    bid); Letter to Robert Pettit, Esquire, from Margaret W. Wiener,
    Chief, Auctions and Industry Analysis Division, Wireless
    Telecommunications Bureau, Federal Communications Commission, 16 FCC
    Rcd 10080 (WTB 2000) (declining to exempt an applicant's controlling
    interest from coverage by the anti-collusion rule, even though the
    applicant never made an upfront payment for the auction and was not
    listed as a qualified bidder).

[^16]: 47 C.F.R. § 1.2105(c)(7)(i).

[^17]: *See* 47 C.F.R. §§ 1.2105(a)(2)(viii), 1.2105(c)(1); *see also*
    47 C.F.R. § 73.5002; Amendment of Part 1 of the Commission\'s Rules
    -- Competitive Bidding Procedures, WT Docket No. 97-82, *Part 1
    Seventh Report and Order*, 16 FCC Rcd at 17546; *Part 1 Fifth Report
    and Order,* 15 FCC Rcd at 15297-98 ¶¶ 7-8 .

[^18]: *See*, *e.g.*, "Wireless Telecommunications Bureau Provides
    Guidance on the Anti-Collusion Rule for D, E, and F Block Bidders,"
    *Public Notice*, DA 96-1460 (rel. August 28, 1996).

[^19]: *See Western PCS BTA 1 Corp*., 14 FCC Rcd 21571 (1999).

[^20]: Thus, communication or disclosure by an applicant to another
    applicant for one or more of the same construction permits, or of
    the fact that the applicant does or does not hold provisionally
    winning bids on particular construction permits, may well violate
    the anti-collusion rule.

[^21]: *Compare* Wireless Telecommunications Bureau Responds to
    Questions About the Local Multipoint Distribution Service Auction,
    *Public Notice*, 13 FCC Rcd 341, 347-48 (1998) ("Public statements
    can give rise to collusion concerns. This has occurred in the
    antitrust context, where certain public statements can support other
    evidence which tends to indicate the existence of a conspiracy.").

[^22]: *See, e.g.,* Letter to Colby M. May, TCCSA, Inc., d/b/a Trinity
    Broadcasting Network, from Barbara A. Kreisman, Chief, Video
    Division, Media Bureau, and Margaret W. Wiener, Chief, Auctions and
    Spectrum Access Division, Wireless Telecommunications Bureau, 20 FCC
    Rcd 14648 (WTB/MB 2005) (finding apparent violation of
    anti-collusion rule where applicants with mutually exclusive
    applications reported sharing same individual as an officer and
    director and reported having no bidding agreement).

[^23]: 47 C.F.R. § 1.2105(c)(4).

[^24]: *Part 1 Seventh Report and Order*, 16 FCC Rcd at 17549-50 ¶ 6.

[^25]: 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 Order*").

[^26]: *Id*.

[^27]: Mercury PCS II, LLC, *Notice of Apparent Liability for
    Forfeiture*, 12 FCC Rcd 17970, 17976 ¶ 12 (1997).

[^28]: Mercury PCS II, LLC, *Memorandum Opinion and Order*, 13 FCC Rcd
    23755, 23760 ¶ 11 (1998).

[^29]: Implementation of Section 309(j) of the Communications Act --
    Competitive Bidding, PP Docket No. 93-253, *Memorandum Opinion and*
    *Order*, 9 FCC Rcd 7684, 7689 ¶ 12 (1994).

[^30]: *Nevada Wireless Order*, 13 FCC Rcd at 11978 ¶ 13.

[^31]: Implementation of Section 309(j) of the Communications Act --
    Competitive Bidding, PP Docket No. 93-253, *Memorandum Opinion and
    Order*, 9 FCC Rcd 7684, 7689 ¶ 12 (1994).

[^32]: *See* 47 C.F.R. §§ 1.2105(c), 1.2107(d), and 1.2109(d).

[^33]: *See* Amendment of Part 1 of the Commission\'s Rules --
    Competitive Bidding Procedures, WT Docket No. 97-82, *Third Further
    Notice of Proposed Rule Making*, 14 FCC Rcd 21558, 21560 ¶ 4 and n.
    4 (1999) *citing* Implementation of Section 309(j) of the
    Communications Act -- Competitive Bidding, PP Docket No. 93-253,
    *Memorandum Opinion and* *Order*, 9 FCC Rcd 7684, 7689 ¶ 12 (1994)
    ("\[W\]e wish to emphasize that all applicants and their owners
    continue to be subject to existing antitrust laws. Applicants should
    note that conduct that is permissible under the Commission\'s Rules
    may be prohibited by the antitrust laws."); Implementation of
    Section 309(j) of the Communications Act-Competitive Bidding, PP
    Docket No. 93-253, *Fourth Memorandum Opinion & Order*, 9 FCC Rcd
    6858, 6869 n. 134 (1994)("\[A\]pplicants will also be subject to
    existing antitrust laws.") ("*Fourth Memorandum Opinion and
    Order*").

[^34]: *See Competitive Bidding Second Report and Order*, 9 FCC Rcd at
    2388 ¶ 226. *See also* "Justice Department Sues Three Firms Over FCC
    Auction Practices," *Press Release* 98-536 (DOJ Nov. 10, 1998).

[^35]: *See, e.g*., Implementation of Section 309(j) of the
    Communications Act--Competitive Bidding, PP Docket No. 93-253,
    *Fourth Memorandum Opinion & Order*, 9 FCC Rcd 6858, 6869 n. 134
    (1994).

[^36]: *Id.*

[^37]: Wireless Telecommunications Bureau Clarifies Spectrum Auction
    Anti-Collusion Rules, *Public Notice*, 11 FCC Rcd 9645 (1995)
    ("*Anti-Collusion Public Notice*").

[^38]: *See Competitive Bidding Second Report and Order*, 9 FCC Rcd at
    2388 ¶ 226.

[^39]: *See* 47 C.F.R. § 1.2109(d); *see also* *Competitive Bidding
    Second Report and Order*, 9 FCC Rcd at 2388 ¶ 226.

[^40]: 47 C.F.R. § 1.2105(c)(6).

[^41]: *See* Service Rules for the 698-746, 747-762 and 777-792 MHz
    Bands, WT Docket No. 06-150, *Second Report and Order*, FCC 07-132,
    22 FCC Rcd 15289, 15403-04 ¶¶ 285-86 (2007).

[^42]: 47 C.F.R. § 1.65; *see also* *Part 1 Seventh Report and Order*,
    16 FCC Rcd at 17555 ¶ 17.

[^43]: *See* 47 C.F.R. § 0.459 (requests that materials or information
    submitted to the Commission be withheld from public inspection).
    Filers requesting confidential treatment of documents must be sure
    that the cover page of the filing prominently displays that the
    documents seek confidential treatment. For example, a filing might
    include a cover page stamped with "Request for Confidential
    Treatment Attached" or "Not for Public Inspection." Any such request
    must cover all of the material to which the request applies. *See*
    47 C.F.R. § 0.459 (a).

[^44]: *See* Section VI. "Contact Information", below.

[^45]: *See* Section II. B. "Maintaining Current Information in
    Short-Form Applications", below.

[^46]: [http://wireless.fcc.gov/auctions/anticollusion](http://wireless.fcc.gov/auctions/default.htm?job=anti_collusion)

[^47]: *See* *e.g*., 47 C.F.R. § 73.606.

[^48]: Construction permittees must comply with the Commission\'s rules
    regarding the National Environmental Policy Act ("NEPA"). 47 C.F.R.
    Ch. 1, Subpart I.

[^49]: *See* 47 C.F.R. § 73.3572.

[^50]: Pub.L.No. 106-113, 113 Stat. Appendix I at 1501A-594 -- 598
    (1999), codified at 47 U.S.C. § 336(f).

[^51]: Establishment of a Class A Television Service, MM Docket No.
    00-10, *Report and Order*, 15 FCC Rcd 6355 (2000).

[^52]: Bidders should also note that the Commission recently lifted the
    freeze on the filing of applications for displacement relief and
    major changes for Class A stations. See "Commission Lifts the Freeze
    on the Filing of Certain Class A Television Applications Effective
    August 4, 2008*,*" *Public Notice*, DA 08-1644 (rel. July 14, 2008).

[^53]: The Media Bureau also has a web page titled "LIST OF ENTITIES
    THAT HAVE FILED STATEMENTS OF ELIGIBILITY FOR CLASS A LOW POWER
    TELEVISION STATION STATUS ON OR BEFORE JANUARY 28, 2000," which is
    available at <http://www.fcc.gov/mb/video/files/classa.html>.

[^54]: *See* 47 C.F.R. § 73.622.

[^55]: 47 C.F.R. Ch. 1, Subpart I.

[^56]: 47 C.F.R. §§ 1.1305-1.1319.

[^57]: *See* 47 C.F.R. Part 1, Appendix C.

[^58]: *See infra* Section IV.A.1. "Simultaneous Multiple Round
    Auction."

[^59]: *See* 47 C.F.R. § 1.2105(b); *see also* *NCE Second Report and
    Order*, 18 FCC Rcd at 6700.

[^60]: *See* 47 C.F.R. § 1.917; see also 47 C.F.R. § 73.3513.

[^61]: *See* 47 C.F.R. § 1.65.

[^62]: For example, if ownership changes result in the attribution of
    new interest holders that affect the applicant's qualifications for
    a new entrant bidding credit, such information must be clearly
    stated in the bidder's amendment. *See* Liberty Productions,
    Memorandum Opinion and Order, 16 FCC Rcd 12061, 12078 (2001). Events
    occurring after the short-form filing deadline, such as the
    acquisition of attributable interests in media of mass
    communications, may also cause diminishment or loss of the bidding
    credit, and must be reported immediately.

[^63]: *See* 47 C.F.R. § 1.2105(b)(2).

[^64]: *Auction 85 Filing Requirements Public Notice*, DA 06-874, 21 FCC
    Rcd at 4100.

[^65]: In the *NCE Second Report and Order*, the Commission held that
    applications for noncommercial educational (NCE) broadcast stations
    on nonreserved spectrum, filed during a filing window, will be
    returned as unacceptable for filing if mutually exclusive with any
    application for a commercial station. In the same order, the
    Commission determined that short-form applicants that do not
    identify on their FCC Form 175 the proposed station's programming as
    noncommercial educational will be considered, as a matter of law,
    applicants for commercial broadcast stations. *NCE Second Report and
    Order*, 18 FCC Rcd at 6700 ¶ 22.

[^66]: *See* 47 C.F.R. § 1.2105(b); *see also* *NCE Second Report and
    Order*, 18 FCC Rcd at 6700; Two Way Radio of Carolina, Inc.,
    *Memorandum Opinion and Order*, 14 FCC Rcd 12035 (1999).

[^67]: *See* Letter to Patrick Shannon, Counsel for Lynch 3G
    Communications Corp., 18 FCC Rcd 11552 (WTB 2003).

[^68]: Amendment of Part 1 of the Commission's Rules --- Competitive
    Bidding Proceeding, *Order, Memorandum Opinion and Order and Notice
    of Proposed Rule Making*, 12 FCC Rcd 5686, 5697-98 ¶ 16 (1997)
    ("*Part 1 Order*").

[^69]: *See Part 1 Fifth Report and Order*, 15 FCC Rcd at 15316-17 ¶¶
    40-42; 47 C.F.R. § 1.2106(a); *see supra* Section III.C.3. "Upfront
    Payments and Bidding Eligibility."

[^70]: 47 C.F.R. § 1.2110(c).

[^71]: *Auction 85 Comment Public Notice* at 8-9.

[^72]: Provisionally winning bids are bids that would become final
    winning bids if the auction were to close after the given round.
    *See* *infra* Section IV.B.4. "Provisionally Winning Bids."

[^73]: In some cases, a qualified bidder's maximum eligibility may be
    less than the amount of its upfront payment because the qualified
    bidder has either previously been in default on a Commission
    construction permit or license or delinquent on non-tax debt owed to
    a Federal agency (*see* 47 C.F.R. § 1.2106(a)), or has submitted an
    upfront payment that exceeds the total amount of bidding units
    associated with the construction permits designated for that
    applicant in Attachment A of this Public Notice.

[^74]: Bidders must also remain mindful of the need to maintain
    sufficient bidding activity during the auction. Discussion of the
    activity rule requirements may be found in Section IV.A.2.
    "Eligibility and Activity Rules," *infra.*

[^75]: *See* 47 C.F.R. § 1.2106(a).

[^76]: *Auction 85 Comment Public Notice* at 6.

[^77]: *Competitive Bidding Second Report and Order*, 9 FCC Rcd at
    2366*.*

[^78]: *Auction 85 Comment Public Notice* at 9.

[^79]: *See supra* Section IV.A.3. "Activity Rule Waivers."

[^80]: *Auction 85 Comment Public Notice* at 9-10.

[^81]: *Id.* at 7-8.

[^82]: *Id*.

[^83]: *Id.* at 8.

[^84]: *Auction 85 Comment Public Notice* at 10-11.

[^85]: 47 U.S.C. § 309(j)(4)(F); *see also* *Part 1 Third Report and
    Order*, 13 FCC Rcd at 455-456 ¶ 141.

[^86]: *Auction 85 Comment Public Notice* at 10-11.

[^87]: In the event of duplicate bid amounts due to rounding, the FCC
    Auction System will omit the duplicates and will list fewer than
    nine acceptable bid amounts for the construction permit.

[^88]: Results above \$10,000 are rounded to the nearest \$1,000;
    results below \$10,000 but above \$1,000 are rounded to the nearest
    \$100; and results below \$100 are rounded to the nearest \$10

[^89]: *Id*.

[^90]: *See supra* Section IV.A.2. "Eligibility and Activity Rules."

[^91]: *Auction 85 Comment Public Notice* at 12.

[^92]: Bidders must have sufficient eligibility to place a bid on the
    particular construction permit. *See* *supra* Section III.C.3.
    "Upfront Payments and Bidding Eligibility"

[^93]: In the event of duplicate bid amounts due to rounding, the FCC
    Auction System will omit the duplicates and will list fewer than
    nine acceptable bid amounts for the construction permit.

[^94]: *Auction 85 Comment Public Notice* at 13.

[^95]: *Id*.

[^96]: *See* 47 C.F.R. § 1.2107(b).

[^97]: *See id.*

[^98]: 47 C.F.R. §§ 1.2112(b) and 73.5005.

[^99]: *See* 47 C.F.R. § 1.2109(b) and (c).

[^100]: 47 C.F.R. § 1.2109(d).