> DA 03-1836

May 30, 2003

**LOWER AND UPPER PAGING BANDS AUCTION CLOSES**

**Winning Bidders Announced**

Down Payments Due June 13, 2003

FCC Forms 601 and 602 Due June 13, 2003

*Ten-Day Petition to Deny Period*

**Report No. AUC-03-48-E (Auction No. 48)**

On May 28, 2003, the Federal Communications Commission completed the
auction of 10,202 licenses in the Lower and Upper Paging Bands ("Auction
No. 48"), raising (in net high bids) a total of \$2,445,608 for the U.S.
Treasury. In this auction, 96 winning bidders won a total of 2832
licenses.

This *Public Notice* provides detailed information concerning winning
bidders, down payments, bid withdrawal payments and/or deposits, FCC
Forms 601 and 602 filing requirements, requests for rule waivers, and
licensing matters. Key information appears in the following attachments:

**Attachment A**: "Round Results, High Bids" lists winning bidders,[^1]
the number of licenses they won, and both their total gross and net high
winning bid amounts. In previous auctions, Attachment A has listed the
winning bidder and bid amounts for each license. However, due to the
large volume of licenses in Auction No. 48, a list of the licenses won
will be provided in electronic format only, available with this public
notice at http://wireless.fcc.gov/auctions/48/.

> **Attachment B:** "Bidder Payment/Refund Report" lists down payments
> and withdrawal bid payments owed by winning bidders, if any.
>
> **Attachment C:** "Withdrawal/Payment Report" lists withdrawal bid
> payments owed by all bidders.
>
> **Attachment D:** "Default Payment Report" contains default payments
> based upon reconciliation of final results of Auction No. 40 and
> Auction No. 48.
>
> **Attachment E: "**Multi-Auction Withdrawal Payment Report" lists
> amount(s) or refund(s) due for bidders in Auction No. 26 and Auction
> No. 40 based upon reconciliation of final results of Auction No. 26,
> Auction No. 40, and Auction No. 48**.**

**Attachment F:** "Instructions for Completing FCC Form 601 & 602"
provides detailed information about how a winning bidder should complete
the required FCC Form 601 and FCC Form 602 for Lower and Upper Paging
Bands license applications.

> **Attachment G:** "Instructions for Using ULS to Associate Call Signs
> with an FRN and File FCC Form 601 Electronically."
>
> **Attachment H:** "Accessing the FCC Network using Windows
> 95/98/2000/XP for ULS Filing."
>
> A copy of this *Public Notice* will be sent via overnight mail to each
> winning bidder.

## Down Payments

The Commission's rules require that within ten business days after the
release of this *Public Notice*, in this case before **6:00 p.m. ET on
June 13, 2003**, winning bidders in Auction No. 48 must have on deposit
with Mellon Bank in Pittsburgh, Pennsylvania, enough funds to cover 1)
down payments on winning bids, and 2) payments for withdrawn bids, if
applicable. If a winning bidder's upfront payment is not sufficient to
meet both of these requirements, the winning bidder must deposit
additional funds.[^2]

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

## Final Payments

After the termination of the licensing pleading cycle,[^3] the
Commission will issue a public notice announcing that it is prepared to
grant the licenses. Within ten business days after the date of that
public notice, winning bidders will be required to make full payment of
the balance of their winning bids.[^4] Licenses will be granted only
after the full and timely payment of winning bids and any applicable
late fees, in accordance with Section 1.2109(a).[^5]

## Method of Payment

All payments must be in U.S. dollars and made in the form of a wire
transfer. No personal checks, credit card payments, or other forms of
payment will be accepted. All payments must be accompanied by a
completed FCC Remittance Advice Form (FCC Form 159).[^6] If applicable,
a partially completed copy of the FCC Form 159 will be sent along with
this *Public Notice* to facilitate submission of the correct down
payment. Questions regarding FCC Form 159 should be addressed to Gail
Glasser at 202-418-0578 or Tim Dates at 202-418-0496. **Please note,
however, that winning bidders are ultimately responsible for insuring
the verification and submission of the correct down payment from their
bank to Mellon Bank**.

**Wire transfers for down payments must be received by Mellon Bank by
6:00 p.m. ET, on June 13, 2003**. Winning bidders should coordinate with
their bankers ahead of time regarding their wire transfers, and allow
sufficient time for the wire transfer to **be initiated and completed
prior to the deadline**. To submit funds by wire transfer, winning
bidders will need the following information:

> ABA Routing Number: 043000261
>
> Receiving Bank: Mellon Pittsburgh
>
> BNF: FCC Account Number 911-6106
>
> OBI Field: (Skip one space between each information item) "AUCTIONPAY"
>
> FCC REGISTRATION NUMBER (FRN): (same as FCC Form 159, block 11 and/or
> 21)
>
> PAYMENT TYPE CODE: (same as FCC Form 159, block 24A: A48D)
>
> FCC CODE 1: (same as FCC Form 159, Block 28A: "48")
>
> PAYOR NAME: (same as FCC Form 159, Block 2)
>
> LOCKBOX NO.: #358850

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

Proper completion of the FCC Form 159 is critical to ensuring correct
credit of bidder deposits. **Winning bidders must use the same Taxpayer
Identification Number (TIN) / FCC Registration Number (FRN) used on
their FCC Form 175.**[^7] Questions concerning the calculation and
submission of down payments should be directed to Gail Glasser at
202-418-0578 or Tim Dates at 202-418-0496.

## Withdrawal, Default and Disqualification Payments

The Commission imposes payments on bidders that withdraw high bids
during the course of an auction, those that default on payments due
after an auction closes, or those that are disqualified. *See* 47 C.F.R.
§§ 1.2104(g), 1.2109.

*1. Bid Withdrawal Payments.* A bidder (Bidder X) that withdraws a high
bid during the course of an auction is subject to a bid withdrawal
payment equal to the difference between the amount withdrawn and the
amount of the subsequent winning bid. No withdrawal payment will be
assessed for a withdrawn bid if either the subsequent winning bid or any
of the intervening subsequent withdrawn bids equals or exceeds that
withdrawn bid. If a high bid is withdrawn on a license that remains
unsold at the close of the auction, Bidder X will be required to make an
interim payment equal to three (3) percent of the net amount of the
withdrawn bid. [^8] This payment amount is deducted from any upfront
payments or down payments that Bidder X has deposited with the
Commission. If, in a subsequent auction, that license receives a valid
bid in an amount equal to or greater than the withdrawn bid amount, then
no final bid withdrawal payment will be assessed, and upon appropriate
request, the Commission will refund the interim three (3) percent
payment. If, in a subsequent auction, the winning bid amount for that
license is less than Bidder X's withdrawn bid amount, then Bidder X will
be required to make a final bid withdrawal payment equal to either the
difference between Bidder X's net withdrawn bid and the subsequent net
winning bid, or the difference between Bidder X's gross withdrawn bid
and the subsequent gross winning bid, whichever is less. The three (3)
percent interim payment will be applied toward the withdrawal payment.

**Attachment C** identifies bidders that owe withdrawal payments to the
Commission as a result of bid withdrawals made in Auction No. 48. Any
upfront payments or down payments that the withdrawing bidder has
deposited with the Commission will first be applied to satisfy the
withdrawal payment(s) amount before being applied towards a winning
bidder's down payment.[^9]

Now that Auction No. 48 is complete, we are in a position to calculate
and assess final bid withdrawal payments owed as a result of withdrawals
on licenses in Auction No. 26 and Auction No. 40. These final bid
withdrawal payments are identified in **Attachment E.** Any upfront
payments or down payments that the withdrawing bidder has deposited with
the Commission will first be applied to satisfy the withdrawal
payment(s) amount before being applied towards a winning bidder's down
payment. *See* 47 C.F.R. 1.2104(g)(1). Forthcoming orders will assess
such payments.

*2. Bid Default/Disqualification Payments.* If a high bidder defaults or
is disqualified after the close of the auction, the defaulting bidder
will be subject to the same bid withdrawal payment obligations as
described above, plus an additional payment equal to three (3) percent
of the subsequent winning bid or three (3) percent of the defaulted bid,
whichever is less. Where a bidding credit applies to the winning bid in
either the original or the subsequent auction, the calculation of the
three percent payment is based on the smaller of the two gross bids or
smaller of the two net bids, whichever basis (gross or net) was used to
figure the first component. Thus, if the difference between the gross
bids is less than the difference between the net bids, the three percent
payment will be computed on the lower of the gross bids. If the
difference between the net bids is less than or equal to the difference
between the gross bids, the three percent payment will be computed on
the lower of the net bids. However, if both the difference between the
gross bids and the difference between the net bids are less than or
equal to zero, the three percent payment will be computed on the lower
of the net bids.

If a winning bidder fails to remit the required down payment within ten
(10) business days after the Commission has released this *Public
Notice*, in this case by June 13, 2003, the bidder will be deemed to
have defaulted, its application will be dismissed, and it will be liable
for a default payment as described above. In such event, the Commission,
at its discretion, may either auction the spectrum to existing or new
applicants, or offer it to the other highest bidders (in descending
order) at their final bids.[^10]

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

Licenses will be awarded upon the full and timely payment of winning
bids and any applicable late fees.[^11] A winning bidder that is found
unqualified to be a licensee, fails to remit the balance of its winning
bid in a timely manner, or defaults or is disqualified for any reason
after having made the required down payment, will be deemed to have
defaulted and will be liable for the payment set forth in Section
1.2104(g)(2).[^12] In such event, the Commission may either auction the
spectrum to existing or new applicants or offer it to the other highest
bidders (in descending order) at their final bids.[^13]

Additionally, bidders that are found to have violated the antitrust laws
or the Commission's rules in connection with their participation in the
competitive bidding process may be subject, in addition to any other
applicable sanctions, to forfeiture of their upfront payment, down
payment, or full bid amount, and may be prohibited from participating in
future auctions.[^14]

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

Upfront monies on deposit that are in excess of the required down
payment, withdrawal and/or default payment amounts will be refunded to
the payer of record as identified on FCC Form 159 promptly upon receipt
of the necessary wire transfer instructions. Such instructions must be
faxed to Gail Glasser at 202-418-2843. Any questions concerning refunds
should be referred to Gail Glasser at 202-418-0578 or Tim Dates at
202-418-0496.

## F. FCC Form 601  {#f.-fcc-form-601 .unnumbered}

By **6:00 p.m. ET on June 13**, **2003** winning bidders must submit a
completed long-form license application(s) covering each license for
which they were the winning high bidder. Winning bidders of licenses in
multiple radio services must complete a separate long-form application
for each distinct radio service code. Applicants may include multiple
licenses in the same radio service on one FCC Form 601 only if all
filing information associated with the application is identical except
for the market designator and market name, *see* section I., below.
**Attachment F** sets out instructions for completing the FCC Form 601.
Applications **must** be filed electronically. Detailed instructions for
filing the Form 601 electronically are set out in **Attachment G**.

**Failure to timely file the required FCC Form 601 application(s) will
result in default. Late-filed applications will not be accepted without
a showing of good cause.**[^15]

## G. Tribal Land Bidding Credit {#g.-tribal-land-bidding-credit .unnumbered}

The Commission has implemented a tribal land bidding credit to encourage
the growth of wireless services in federally recognized tribal lands.
For information relating to the tribal land bidding credit, *see*
**Attachment F**.

## H. FCC Form 602  {#h.-fcc-form-602 .unnumbered}

Pursuant to Section 1.919 of the Commission's rules, an applicant for a
license in an auctionable service must have on file with the Commission
a current FCC Form 602 regarding ownership information of the
applicant.[^16] Therefore, unless the applicant already has a current
FCC Form 602 on file with the Commission, the applicant must submit one
at the time the FCC Form 601 is filed. Any late-filed FCC Form 602 must
contain a request for waiver of the filing requirement in 47 C.F.R. §
1.919.

Filing an FCC Form 602 is a [separate]{.underline} requirement from, and
in addition to, the ownership reporting requirements associated with
filing FCC Form 601, Exhibit A, as set forth in **Attachment F**.
However, to avoid duplication, applicants may provide certain
information required in Exhibit A by attaching a copy of their FCC Form
602 (in Adobe PDF Format) to their FCC Form 601 submission. Applicants
are reminded, however, that an FCC Form 602 still must be filed
electronically via the Universal Licensing System (ULS)[^17]. For
further information, see Instructions in **Attachment F**.

## I. Applications for Multiple Licenses {#i.-applications-for-multiple-licenses .unnumbered}

Applicants winning licenses in multiple radio services must complete a
separate FCC Form 601 for each radio service. Applicants winning
multiple licenses may submit [one]{.underline} FCC Form 601 per service
(including all required schedules, attachments, and exhibits) if **all**
filing information (name and address information, all ownership and
eligibility attachments, and waiver requests) associated with the
application is identical **except** for the market designator and market
name. Licensing information such as market designator, block, and/or
market name may be different (*i.e*., CPBEA002CB - Portland, Maine;
CPBEA006CG - Syracuse, New York-Pennsylvania) or (*i.e*., CZMEA014AX -
Columbus; CZMEA019AR - Indianapolis).

Filers whose name and address, ownership, eligibility, and waiver
requests are identical for some licenses but different for other
licenses must submit a separate Form 601 and 602 for those licenses for
which filing information is unique. The streamlined filing procedure
described in the above paragraph may only be used for licenses that have
identical filing information.

Applicants seeking a tribal land bidding credit for one or more markets
are encouraged to submit two applications. One application would include
markets in which the applicant intends to apply for a tribal land
bidding credit. The other application would include those markets in
which the applicant is not seeking a tribal land bidding credit.
Applicants that intend to seek a tribal land bidding credit in multiple
services would need to submit two applications per service.

## J. Maintaining Accuracy of Information {#j.-maintaining-accuracy-of-information .unnumbered}

After the auction closes, applicants are required to make all changes in
the ULS system (Form 601). Applicants are no longer required to maintain
accuracy and completeness of information furnished on their FCC Form 175
and exhibits.

## K. Application Processing and License Grant {#k.-application-processing-and-license-grant .unnumbered}

Pursuant to 47 C.F.R. § 1.2108(b) and the Balanced Budget Act of
1997,[^18] interested parties will have **ten (10) days** to file
petitions to deny after the Commission releases a public notice
announcing the long-form (FCC Form 601) applications that are acceptable
for filing. An applicant may file an opposition to any petition to deny
within **five (5) business days** after the time for filing petitions to
deny has expired.[^19] The petitioner may file a reply to such
opposition within **five (5) business days** after the time for filing
oppositions has expired.[^20] If the Commission determines an applicant
is qualified and there is no substantial and material issue of fact
concerning that determination, the Commission will issue a public notice
announcing that it is prepared to grant the application conditioned upon
the full and timely payment of the remaining balance of the applicant's
winning bid. Once the Commission has received full payment of the
applicant's winning bid, it will issue a public notice announcing grant
of the license (or licenses) to the applicant.

*Frivolous Pleadings.* The Commission reminds parties to our proceedings
and their attorneys that the Commission intends to use its authority
fully to deter the filing of frivolous pleadings.[^21]

## L. Anti-collusion Rules {#l.-anti-collusion-rules .unnumbered}

To ensure the competitiveness of the auction process, the Commission's
rules prohibit competing applicants for the same geographic license area
from communicating with each other during the auction about bids,
bidding strategies, or settlements. As explained more fully in the
*Auction No. 48 Procedures Public Notice*,[^22] this prohibition began
with the filing of short-form applications and ends on the down payment
due date, or June 13, 2003.[^23] The prohibition ends on the down
payment due date regardless of whether a high bidder must supplement its
upfront payment to cover its down payment. Applicants certified their
compliance with Section 1.2105(c) when their FCC Form 175 short-form
applications were signed.

## M. Return of SecurID Cards {#m.-return-of-securid-cards .unnumbered}

Bidders are encouraged to return their SecurID cards to the FCC by
**June 13, 2003** for recycling. The Commission will send bidders a copy
of this *Public Notice* and a pre-addressed, stamped envelope. All
bidders should use the envelope to return the cards now that the auction
is over. Please note that each SecurID card is tailored to a specific
auction, therefore, the cards issued for this auction will not work for
future auctions.

\* \* \* \* \*

**For further information, contact**

+-------------------------------+--------------------------------------+
| News Media:                   | Meribeth McCarrick at 202-418-0654   |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Technical Support Hotline:    | Technical Support Personnel at       |
|                               |                                      |
|                               | 202-414-1250 (V)                     |
|                               |                                      |
|                               | or 202-414-1255 (text telephone      |
|                               | (TTY))                               |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Office of the Managing        | Gail Glasser or Tim Dates            |
| Director                      |                                      |
|                               | at 202-418-0578 or 202-418-0496      |
| Auctions Accounting Group     |                                      |
|                               |                                      |
| (Payment, FCC Form 159 and    |                                      |
| refund questions)             |                                      |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Wireless Telecommunications   | Bettye Woodward, Analyst, at         |
| Bureau,                       | 202-418-0620                         |
|                               |                                      |
| Commercial Wireless Division  | Dwain Livingston, Electronics        |
|                               | Engineer, at 202-418-0620            |
+-------------------------------+--------------------------------------+
| (FCC Form 601and 602          | Amal Abdallah, Attorney, at          |
| questions)                    | 202-418-7307                         |
+-------------------------------+--------------------------------------+
|                               | Evan Baranoff, Attorney, at          |
|                               | 202-418-7142                         |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Wireless Telecommunications   | Barbara Sibert, Project Manager at   |
| Bureau, Auctions and Industry | 717-338-2888                         |
| Analysis Division             |                                      |
| (Auction-related questions)   | Rosemary Cabral, Attorney, at        |
|                               | 202-418-0660                         |
+-------------------------------+--------------------------------------+

\- FCC -

[^1]: We note that SkyTel Corp. ("SkyTel") is listed as a winning bidder
    only conditionally, until resolution of a pending Request for
    Declaratory Ruling filed by SkyTel on April 15, 2003, and SkyTel's
    associated waiver request. Resolution of the Request for Declaratory
    Ruling will determine SkyTel's compliance with Section
    1.2105(a)(2)(x) of the Commission's rules. 47 C.F.R. §
    1.2105(a)(2)(x). The Bureau reserves the right to deny SkyTel's
    waiver request, reject SkyTel's application, and find SkyTel not
    qualified to bid with respect to any license in Auction No. 48 based
    on that determination. If the Bureau ultimately denies SkyTel's
    waiver request, SkyTel would be in default on any license for which
    it is the winning bidder, and subject to default payments under
    Sections 1.2104(g) and 1.2109(c) of the Commission's rules. 47
    C.F.R. §§ 1.2104(g), 1.2109(c). *See* "Auction of Licenses for Lower
    and Upper Paging Bands, 104 Qualified Bidders," *Public Notice*, DA
    03-1268 (April 29, 2003)("*Auction No. 48 Qualified Bidders Public
    Notice*").

[^2]: 47 C.F.R. § 1.2107(b). In the event a bidder has withdrawn a
    bid(s) and is subject to a bid withdrawal payment(s), the bidder's
    upfront payment will be first applied to satisfy the withdrawal
    payment(s) before being applied toward its down payment. 47 C.F.R. §
    1.2104(g)(1).

[^3]: 47 C.F.R. § 1.2108.

[^4]: 47 C.F.R. §§ 1.2107(b), 1.2109.

[^5]: 47 C.F.R. § 1.2109(a).

[^6]: Copies of the FCC Form 159 may be obtained by calling the
    Commission's Forms Distribution Center at 1-800-418-3676 (outside
    Washington, D.C.) or 202-418-3676 (in the Washington D.C. area).
    Copies of the FCC Form 159 can also be obtained via the Internet
    (http://www.fcc.gov/formpage.html) or by calling the Commission's
    Fax-On-Demand at 202-418-2830.

[^7]: If, subsequent to final submission of its FCC Form 175, a bidder
    has provided the Commission with a written correction of its
    Taxpayer Identification Number, the bidder should use the corrected
    number.

[^8]: 47 C.F.R. § 1.2104(g)(1); 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, 15301-02 (2000); *see* Implementation of Section 309(j)
    of the Communications Act -- Competitive Bidding, PP Docket No.
    93-253, *Fifth Report and Order*, 9 FCC Rcd 5532, 5563 n.51 (1994);
    *see, e.g.,* Phase II 220 MHz Service Auction Closes, Winning
    Bidders in the Auction of 908 Phase II 220 MHz Service Licenses,
    *Public Notice*, 14 FCC Rcd 605 (1999).

[^9]: 47 C.F.R. § 1.2104(g)(1).

[^10]: 47 C.F.R. § 1.2109(b).

[^11]: 47 C.F.R. §1.2109(a).

[^12]: 47 C.F.R. § 1.2104(g)(2).

[^13]: 47 C.F.R. § 1.2109(c).

[^14]: 47 C.F.R. § 1.2109(d).

[^15]: 47 C.F.R. § 1.2107(c).

[^16]: 47 C.F.R. §§ 1.919, 1.2107(f).

[^17]: Beginning December 10, 2002, electronic filing of FCC Form 602
    via the ULS became mandatory. *See* "Wireless Telecommunications
    Bureau Reminds Filers of Effective Date for Mandatory Electronic
    Filing of FCC Form 602," *Public Notice*, 17 FCC Rcd 22934 (2002).
    For more information on FCC Form 602, *see also* "Wireless
    Telecommunications Bureau Announces Revised Version of FCC Form 602
    is Now Available," *Public Notice*, 17 FCC Rcd 16197 (2002);
    "Wireless Telecommunications Bureau Answers Frequently Asked
    Questions Concerning Reporting of Ownership Information on FCC Form
    602," *Public Notice*, 14 FCC Rcd 8261 (1999).

[^18]: Pub. L. No. 105-33, 111 Stat. 251 (1997).

[^19]: 47 C.F.R. § 1.2108(c).

[^20]: *Id.*

[^21]: Commission Taking Tough Measures Against Frivolous Pleadings,
    *Public Notice*, 11 FCC Rcd 3030 (1996).

[^22]: Auction No. 48 Lower and Upper Paging Bands Auction Scheduled for
    May 13, 2003; Notice and Filing Requirements, Minimum Opening Bids,
    Upfront Payments and Other Auction Procedures, *Public Notice*, 17
    FCC Rcd 27799 (2002) ("*Auction No. 48 Procedures Public Notice*").

[^23]: *Auction No. 48 Procedures Public Notice* at 6-8.