DA 04-278

February 6, 2004

AUCTION OF DIRECT BROADCAST SATELLITE SERVICE LICENSES RESCHEDULED FOR
JULY 14, 2004

**Notice and Filing Requirements, Minimum Opening Bids,**

**Upfront Payments and Other Auction Procedures**

Report No. AUC-04-52-D (Auction No. 52)

I. GENERAL INFORMATION [1](#general-information)

A. Introduction [1](#introduction)

1\. Background of Proceeding [1](#background-of-proceeding)

2\. Licenses to Be Auctioned [2](#licenses-to-be-auctioned)

B. Rules and Disclaimers [3](#rules-and-disclaimers)

1\. Relevant Authority [3](#relevant-authority)

2\. Prohibition of Collusion [4](#prohibition-of-collusion)

3\. Other Services Authorized in the 12.2-12.7 GHz Band
[6](#other-services-authorized-in-the-12.2-12.7-ghz-band)

4\. Coordination with Other Countries
[7](#coordination-with-other-countries)

5\. Due Diligence [7](#due-diligence)

6\. Bidder Alerts [7](#bidder-alerts)

7\. National Environmental Policy Act Requirements
[8](#national-environmental-policy-act-requirements)

C. Auction Specifics [8](#auction-specifics)

1\. Auction Date [8](#auction-date)

2\. Auction Title [8](#auction-title)

3\. Bidding Methodology [8](#bidding-methodology)

4\. Pre-Auction Dates and Deadlines
[9](#pre-auction-dates-and-deadlines)

5\. Requirements for Participation [9](#requirements-for-participation)

6\. General Contact Information [9](#general-contact-information)

II\. SHORT-FORM (FCC FORM 175) APPLICATION REQUIREMENTS
[10](#short-form-fcc-form-175-application-requirements)

A. Ownership Disclosure Requirements (FCC Form 175 Exhibit A)
[10](#ownership-disclosure-requirements-fcc-form-175-exhibit-a)

B. Consortia and Joint Bidding Arrangements (FCC Form 175 Exhibit B)
[10](#consortia-and-joint-bidding-arrangements-fcc-form-175-exhibit-b)

C. Provisions Regarding Defaulters and Former Defaulters (FCC Form 175
Exhibit C)
[11](#provisions-regarding-defaulters-and-former-defaulters-fcc-form-175-exhibit-c)

D. Installment Payments and Bidding Credits
[12](#installment-payments-and-bidding-credits)

E. Other Information (FCC Form 175 Exhibits D and E)
[12](#other-information-fcc-form-175-exhibits-d-and-e)

F. Minor Modifications to Short-Form Applications (FCC Form 175)
[12](#minor-modifications-to-short-form-applications-fcc-form-175)

G. Maintaining Current Information in Short-Form Applications (FCC Form
175)
[12](#maintaining-current-information-in-short-form-applications-fcc-form-175)

III\. PRE-AUCTION PROCEDURES [13](#pre-auction-procedures)

A. Auction Seminar [13](#auction-seminar)

B. Short-Form Application (FCC Form 175) --- Due May 21, 2004
[13](#short-form-application-fcc-form-175-due-may-21-2004)

1\. Electronic Filing [13](#electronic-filing)

2\. Completion of the FCC Form 175 [13](#completion-of-the-fcc-form-175)

3\. Electronic Review of FCC Form 175
[14](#electronic-review-of-fcc-form-175)

C. Application Processing and Minor Corrections
[14](#application-processing-and-minor-corrections)

D. Upfront Payments --- Due June 18, 2004
[14](#upfront-payments-due-june-18-2004)

1\. Making Auction Payments by Wire Transfer
[15](#making-auction-payments-by-wire-transfer)

2\. FCC Form 159 [15](#fcc-form-159)

3\. Amount of Upfront Payment [15](#amount-of-upfront-payment)

4\. Applicant's Wire Transfer Information for Purposes of Refunds of
Upfront Payments
[17](#applicants-wire-transfer-information-for-purposes-of-refunds-of-upfront-payments)

E. Auction Registration [18](#auction-registration)

F. Remote Electronic Bidding [18](#remote-electronic-bidding)

G. Mock Auction [19](#mock-auction)

IV\. AUCTION EVENT. [19](#auction-event)

A. Auction Structure [19](#auction-structure)

1\. Simultaneous Multiple Round Auction
[19](#simultaneous-multiple-round-auction)

2\. Maximum Eligibility and Activity Rules
[19](#maximum-eligibility-and-activity-rules)

3\. Auction Stages [20](#auction-stages)

4\. Stage Transitions [21](#stage-transitions)

5\. Activity Rule Waivers and Reducing Eligibility
[21](#activity-rule-waivers-and-reducing-eligibility)

6\. Auction Stopping Rules [22](#auction-stopping-rules)

7\. Auction Delay, Suspension, or Cancellation
[23](#auction-delay-suspension-or-cancellation)

B. Bidding Procedures [23](#bidding-procedures)

1\. Round Structure [23](#round-structure)

2\. Reserve Price or Minimum Opening Bid
[24](#reserve-price-or-minimum-opening-bid)

3\. Minimum Acceptable Bids and Bid Increments
[25](#minimum-acceptable-bids-and-bid-increments)

4\. High Bids [26](#high-bids)

5\. Bidding [27](#bidding)

6\. Bid Removal and Bid Withdrawal [28](#bid-removal-and-bid-withdrawal)

7\. Round Results [29](#round-results)

8\. Auction Announcements [30](#auction-announcements)

9\. Maintaining the Accuracy of FCC Form 175 Information
[30](#maintaining-the-accuracy-of-fcc-form-175-information)

V. POST-AUCTION PROCEDURES. [30](#post-auction-procedures)

A. Down Payments and Withdrawn Bid Payments
[30](#down-payments-and-withdrawn-bid-payments)

B. Final Payments [30](#final-payments)

C. Long-Form Application (FCC Form 312)
[30](#long-form-application-fcc-form-312)

D. Default and Disqualification [31](#default-and-disqualification)

E. Refund of Remaining Upfront Payment Balance
[31](#refund-of-remaining-upfront-payment-balance)

VI\. ATTACHMENT A: Licenses to Be Auctioned A-[1](#attachment-a)

VII\. ATTACHMENT B: FCC Auction Seminar Registration Form
B-[1](#attachment-b)

VIII\. ATTACHMENT C: Electronic Filing and Review of the FCC Form 175
C-[1](#attachment-c)

IX\. ATTACHMENT D: Guidelines for Completion of FCC Form 175 and
Exhibits D-[1](#attachment-d)

X. ATTACHMENT E: Auction-Specific Instructions for FCC Remittance Advice
(FCC Form 159- February 2003 Edition) E-[1](#attachment-e)

XI\. ATTACHMENT F: Summary Listing of Commission and Bureau Documents
Addressing Application of the Anti-collusion Rule F-[1](#attachment-f)

# General Information

## Introduction

By this Public Notice, the Wireless Telecommunications Bureau ("Bureau")
announces that Auction No. 52, an auction of licenses to use the Direct
Broadcast Satellite ("DBS") service allocation in the 12.2-12.7 GHz
band, has been rescheduled for July 14, 2004.[^1] In addition, in this
Public Notice the Bureau announces the procedures and minimum opening
bids for Auction No. 52 and sets forth a revised list of the DBS
licenses available in the auction. On March 3, 2003, in accordance with
the Balanced Budget Act of 1997,[^2] the Commission released a public
notice seeking comment on reserve prices or minimum opening bids and the
procedures to be used for Auction No. 52.[^3] Four comments and two
reply comments were submitted in response to the *Auction No. 52 Comment
Public Notice.* [^4]

### Background of Proceeding 

The Commission first established DBS service rules in 1982 by adopting
"interim" rules that were codified in Part 100 of its regulations.[^5]
The first applications for authority to construct, launch, and operate
DBS satellite systems were also accepted in 1982.[^6] In 1995, the
Commission adopted new service rules for DBS to better reflect the
realities of the service as it had evolved and to promote certain goals,
including the provision of DBS service to Alaska and Hawaii. At the same
time, the Commission adopted competitive bidding rules for the DBS
service.[^7] The first DBS auctions were held in January 1996.[^8]

On April 11, 2002, the Bureau, acting under delegated authority,
streamlined the DBS competitive bidding rules by conforming them with
the general competitive bidding rules set forth in Part 1 of the
Commission\'s rules.[^9] On June 13, 2002, the Commission released the
*Part 100 R&O,* in which it further streamlined the regulation of DBS
and moved the DBS rules from Part 100 to Part 25. The Commission's
actions included clarifying the geographic service rules to enhance the
delivery of DBS service to Alaska and Hawaii, updating and clarifying
technical rules, and clarifying the due diligence rules.[^10]

On January 15, 2004, the Commission released an Order affirming its
conclusion in the *Auction No. 52 Comment Public Notice* that the FCC's
authority to auction the DBS licenses slated for Auction No. 52 has not
been altered by regulatory and statutory actions taken since DBS
auctions were last held,[^11] and declining to impose eligibility
restrictions on the three available licenses to operate at the western
orbit locations of 175º W.L., 166º W.L., and 157º W.L. The Commission
did not address in this Order the question of whether any eligibility
restrictions are appropriate for the license to use the two available
channels at the eastern orbit location of 61.5º W.L. but instead
deferred the resolution of this matter to a subsequent order.[^12]

### Licenses to Be Auctioned

Auction No. 52 will include three licenses for unassigned channels at
orbit locations of 175° W.L., 166° W.L., and 157° W.L. The license to
use the two available channels at the eastern orbit location of 61.5º
W.L., which was included in the list of licenses available for auction
in the *Auction No. 52 Comment Public Notice,* will not be offered in
Auction No. 52 because there remains pending the issue of whether any
eligibility restrictions are appropriate for this license.[^13] In
addition, in May 2003 the International Bureau authorized EchoStar to
use three channels at the 157° W.L. orbit location. The license
available for auction at that orbit location will therefore authorize
the use of 29 channels, rather than 32 as previously announced in the
*Auction No. 52 Comment Public Notice.*[^14]

The licenses included in Auction No. 52 will be subject to the
Commission's DBS service rules, including the geographic service rules
at 47 C.F.R. § 25.148(c). A complete list and description of the
licenses available in Auction No. 52 is included as Attachment A of this
Public Notice.

## Rules and Disclaimers

### Relevant Authority 

Prospective applicants must familiarize themselves thoroughly with the
Commission's rules relating to the DBS service contained in Title 47,
Part 25 of the Code of Federal Regulations, and those relating to
application and auction procedures, contained in Title 47, Part 1 of the
Code of Federal Regulations. Prospective applicants must also be
thoroughly familiar with the procedures, terms and conditions
(collectively, "terms") contained in this Public Notice; the *Auction
No. 52 Comment* *Public Notice*; and the *Part 1 Fifth Report and Order*
(as well as prior and subsequent Commission proceedings regarding
competitive bidding procedures).[^15]

Auction participants applying for licenses in the DBS service should
also be familiar with the *Part 100 R&O* and Appendix 30 and 30A of the
International Radio Regulations.[^16]

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 prospective
bidders to remain current with all Commission rules and with all public
notices pertaining to this auction. Copies of most Commission documents,
including public notices, can be retrieved from the FCC Auctions
Internet site at [http://wireless.fcc.gov/auctions]{.underline}.
Additionally, documents are available for public inspection and copying
during regular business hours at the FCC Reference Information Center,
Portals II, 445 12th Street, SW, Room CY-A257, Washington, DC 20554, or
may be purchased from the Commission's duplicating contractor, Qualex
International, Portals II, 445 12th Street, SW, Room CY-B402,
Washington, DC 20554, telephone 202-863-2893, facsimile 202-863-2898, or
via e-mail qualexint@aol.com. When ordering documents from Qualex,
please provide the appropriate FCC document number (for example, FCC
03-40 for the *Auction No. 52 Comment Public Notice*).

### Prohibition of Collusion 

To ensure the competitiveness of the auction process, Section 1.2105(c)
of the Commission's rules prohibits applicants for any of the same
geographic license areas from communicating with each other during the
auction about bids, bidding strategies, or settlements unless such
applicants have identified each other on their FCC Form 175 applications
as parties with whom they have entered into agreements under Section
1.2105(a)(2)(viii).[^17] Because all three licenses available in Auction
No. 52 have overlapping service areas, this prohibition will apply to
all applicants. Thus, all applicants (unless they have identified each
other on their FCC Form 175 applications as parties with whom they have
entered into agreements under Section 1.2105(a)(2)(viii)) must
affirmatively avoid all discussions with or disclosures to each other
that affect, or in their reasonable assessment have the potential to
affect, bidding or bidding strategies. This prohibition begins at the
short-form application filing deadline and ends at the down payment
deadline after the auction.[^18] For purposes of this prohibition,
Section 1.2105(c)(7)(i) defines applicant as including all controlling
interests in the entity submitting a short-form application to
participate in the auction, 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, and all officers and
directors of the entity.[^19]

Because all three licenses available in Auction No. 52 have overlapping
service areas, all applicants are encouraged to avoid using 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 applicants and conveys information concerning the substance of
bids or bidding strategies between the applicants he or she is
authorized to represent in the auction. A violation could similarly
occur if the authorized bidders are different individuals employed by
the same organization (*e.g.*, law firm or consulting firm). 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.[^20] However, the Bureau cautions
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.[^21]

The Commission's anti-collusion rules allow applicants to form certain
agreements during the auction, provided the applicants have not applied
for licenses covering any of the same geographic areas.[^22] In Auction
No. 52, applicants will not be able to take advantage of these rule
provisions because all three available licenses have overlapping service
areas. However, all applicants may enter into bidding agreements
*before* filing their FCC Form 175, as long as they disclose the
existence of the agreement(s) in their Form 175.[^23] If parties agree
in principle on all material terms prior to the short-form filing
deadline, those parties must be identified on the short-form application
pursuant to Section 1.2105(c), even if the agreement has not been
reduced to writing. If the parties have not agreed in principle by the
filing deadline, an applicant would not include the names of those
parties on its application, and may not continue negotiations with any
other applicants.[^24] By signing their FCC Form 175 short-form
applications, applicants are certifying their compliance with Section
1.2105(c).

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.[^25] Thus, Section 1.65 requires auction applicants
that engage in communications of bids or bidding strategies that result
in a bidding agreement, arrangement or understanding not already
identified on their short-form applications to promptly disclose any
such agreement, arrangement or understanding to the Commission by
amending their pending applications. In addition, Section 1.2105(c)(6)
requires all auction applicants to report prohibited discussions or
disclosures regarding bids or bidding strategy to the Commission in
writing immediately but in no case later than five business days after
the communication occurs, even if the communication does not result in
an agreement or understanding regarding bids or bidding strategy that
must be reported under Section 1.65.[^26]

Applicants that are winning bidders will be required to disclose in
their long-form applications the specific terms, conditions, and parties
involved in all bidding consortia, joint ventures, partnerships, and
other arrangements entered into relating to the competitive bidding
process.[^27] Any applicant found to have violated the anti-collusion
rule may be subject to sanctions, including forfeiture of its upfront
payment, down payment or full bid amount, and may be prohibited from
participating in future auctions.[^28] In addition, applicants are
reminded that they are subject to the antitrust laws, which are designed
to prevent anticompetitive behavior in the marketplace. If an applicant
is found to have violated the antitrust laws 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.[^29]

A summary listing of documents issued by the Commission and the Bureau
addressing the application of the anti-collusion rules may be found in
Attachment F.

### Other Services Authorized in the 12.2-12.7 GHz Band

In 2000, the Commission allocated the 12.2-12.7 GHz band for
non‑geostationary satellite orbit ("NGSO") fixed‑satellite service
("FSS") downlinks on a primary basis. At the same time, the Commission
authorized the Multichannel Video Distribution and Data Service
("MVDDS") as a new service under the existing primary status fixed
service allocation in the 12.2‑12.7 GHz band. The Commission concluded
that MVDDS could operate in the 12 GHz band on a co‑primary non‑harmful
interference basis with incumbent DBS providers.[^30] In the *MVDDS
Second R&*O the Commission established service rules for MVDDS,
including technical criteria that will protect DBS providers from
interference.[^31] An auction of MVDDS licenses concluded on January 27,
2004.[^32]

###  Coordination with Other Countries

All DBS licensees must comply with the provisions of the International
Telecommunication Union ("ITU") Region 2 Band Plan for Ku-band DBS
satellites. They must also comply with Sections 25.114(c)(23) and
25.111(c) of the Commission's rules.[^33] These rules require DBS
licensees to provide technical information and analyses to the
Commission where it may be necessary to request a modification of the
ITU Region 2 Band Plan.

### Due Diligence 

Potential applicants are reminded that there are matters pending with
the Commission that could affect the licenses scheduled to be offered in
Auction No. 52. These matters may involve applications (including those
for modification), petitions for rulemaking, requests for special
temporary authority ("STA"), waiver requests, petitions to deny,
petitions for reconsideration, and applications for review that may be
pending before the Commission and relate to particular applicants or
incumbent licensees. In addition, certain judicial proceedings that may
relate to particular applicants or incumbent licensees, or the licenses
available in Auction No. 52, may be commenced, or may be pending, or may
be subject to further review. We note that resolution of these matters
could have an impact on the availability of spectrum in Auction No. 52.
In addition, although the Commission will continue to act on pending
applications, requests and petitions, some of these matters may not be
resolved by the time of the auction. To aid potential bidders, the
Bureau will issue shortly a Due Diligence Announcement listing matters
pending before the Commission that relate to licenses or applications in
these services. However, the Commission makes no representations or
guarantees that the matters listed in the Due Diligence Announcement are
the only pending matters that could affect spectrum availability in
these services.

Potential applicants are solely responsible for identifying associated
risks and for investigating and evaluating the degree to which such
matters may affect their ability to bid on, otherwise acquire, or make
use of licenses available in Auction No. 52.

### Bidder Alerts

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 licensee in this
service, subject to certain conditions and regulations. An FCC auction
does not constitute an endorsement by the FCC of any particular
services, technologies or products, nor does an FCC license constitute a
guarantee of business success. Applicants and interested parties should
perform their own due diligence before proceeding, as they would with
any new business venture.

As is the case with many business investment opportunities, some
unscrupulous entrepreneurs may attempt to use Auction No. 52 to deceive
and defraud unsuspecting investors. Common warning signals of fraud
include the following:

-   The first contact is a "cold call" from a telemarketer, or is made
    in response to an inquiry prompted by a radio or television
    infomercial.

-   The offering materials used to invest in the venture appear to be
    targeted at IRA funds, for example, by including all documents and
    papers needed for the transfer of funds maintained in IRA accounts.

-   The amount of investment is less than \$25,000.

-   The sales representative makes verbal representations that: (a) the
    Internal Revenue Service ("IRS"), Federal Trade Commission ("FTC"),
    Securities and Exchange Commission ("SEC"), FCC, or other government
    agency has approved the investment; (b) the investment is not
    subject to state or federal securities laws; or (c) the investment
    will yield unrealistically high short-term profits. In addition, the
    offering materials often include copies of actual FCC releases, or
    quotes from FCC personnel, giving the appearance of FCC knowledge or
    approval of the solicitation.

Information about deceptive telemarketing investment schemes is
available from the FTC at (202) 326-2222 and from the SEC at (202)
942-7040. Complaints about specific deceptive telemarketing investment
schemes should be directed to the FTC, the SEC, or the National Fraud
Information Center at (800) 876-7060. Consumers who have concerns about
specific proposals regarding Auction No. 52 may also call the FCC
Consumer Center at (888) CALL-FCC ((888) 225-5322).

### National Environmental Policy Act Requirements

Licensees must comply with the Commission's rules regarding the National
Environmental Policy Act ("NEPA").[^34]

## Auction Specifics

### Auction Date

The auction will begin on July 14, 2004. 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 all
licenses will be conducted on each business day until bidding has
stopped on all licenses.

### Auction Title

Auction No. 52 -- Direct Broadcast Satellite Service

### Bidding Methodology

The bidding methodology for Auction No. 52 will be simultaneous multiple
round bidding. The Commission will conduct this auction over the
Internet. Telephonic bidding will also be available, and the FCC Wide
Area Network will be available as well. Qualified bidders are permitted
to bid telephonically or electronically.

### Pre-Auction Dates and Deadlines

Auction Seminar May 13, 2004

Short-Form (FCC Form 175) Filing Window Opens May 13, 2004; 12:00 p.m.
ET

Short-Form (FCC Form 175) Application Deadline May 21, 2004; 6:00 p.m.
ET

Upfront Payments (via wire transfer) June 18, 2004; 6:00 p.m. ET

Mock Auction July 9, 2004

Auction Begins July 14, 2004

### Requirements for Participation

Any entity wishing to participate in the auction must:

-   Submit a short-form application (FCC Form 175) electronically by
    6:00 p.m. ET, May 21, 2004.

-   Submit a sufficient upfront payment and an FCC Remittance Advice
    Form (FCC Form 159) by 6:00 p.m. ET, June 18, 2004.

-   Comply with all provisions outlined in this public notice.

### General Contact Information

+-----------------------------------+----------------------------------+
| GENERAL AUCTION INFORMATION       | FCC Auctions Hotline             |
+-----------------------------------+----------------------------------+
| General Auction Questions         | \(888\) 225-5322, Press Option   |
|                                   | #2                               |
+-----------------------------------+----------------------------------+
| Seminar Registration              | or direct (717) 338-2888         |
+-----------------------------------+----------------------------------+
|                                   | Hours of service: 8:00 a.m. --   |
|                                   | 5:30 p.m. ET,                    |
|                                   |                                  |
|                                   | Monday through Friday            |
+-----------------------------------+----------------------------------+
| AUCTION LEGAL INFORMATION         | Auctions and Spectrum Access     |
|                                   | Division                         |
+-----------------------------------+----------------------------------+
| Auction Rules, Policies,          | \(202\) 418-0660                 |
| Regulations                       |                                  |
+-----------------------------------+----------------------------------+
| LICENSING INFORMATION             | International Bureau, Satellite  |
|                                   | Division                         |
+-----------------------------------+----------------------------------+
| Rules, Policies, Regulations      | Rockie Patterson (202) 418-1183  |
|                                   |                                  |
| Licensing Issues                  | Selina Khan (202) 418-7282       |
|                                   |                                  |
| Due Diligence                     |                                  |
|                                   |                                  |
| Incumbency Issues                 |                                  |
+-----------------------------------+----------------------------------+
| TECHNICAL SUPPORT                 | FCC Auctions Technical Support   |
|                                   | Hotline                          |
+-----------------------------------+----------------------------------+
| Electronic Filing                 | \(202\) 414-1250                 |
+-----------------------------------+----------------------------------+
| FCC Automated Auction System      | \(202\) 414-1255 (TTY)           |
|                                   |                                  |
|                                   | Hours of service: 8:00 a.m. --   |
|                                   | 6:00 p.m. ET,                    |
|                                   |                                  |
|                                   | Monday through Friday            |
+-----------------------------------+----------------------------------+
| PAYMENT INFORMATION               | FCC Auctions Accounting Branch   |
+-----------------------------------+----------------------------------+
| Wire Transfers                    | \(202\) 418-0578 or (202)        |
|                                   | 418-0496                         |
+-----------------------------------+----------------------------------+
| Refunds                           | \(202\) 418-2843 (Fax)           |
+-----------------------------------+----------------------------------+

+-----------------------------------+----------------------------------+
| TELEPHONIC BIDDING                | Will be furnished only to        |
|                                   | qualified bidders                |
+-----------------------------------+----------------------------------+
| FCC COPY CONTRACTOR               | Qualex International             |
+-----------------------------------+----------------------------------+
| Additional Copies of              | 445 12^th^ Street, SW, Room      |
|                                   | CY-B402                          |
+-----------------------------------+----------------------------------+
| Commission Documents              | Washington, DC 20554             |
|                                   |                                  |
|                                   | \(202\) 863-2893                 |
|                                   |                                  |
|                                   | \(202\) 863-2898 (Fax)           |
|                                   |                                  |
|                                   | qualexint@aol.com (E-mail)       |
+-----------------------------------+----------------------------------+
| PRESS INFORMATION                 | Lauren Patrich (202) 418-7944    |
+-----------------------------------+----------------------------------+
| FCC FORMS                         | \(800\) 418-3676 (outside        |
|                                   | Washington, DC)                  |
|                                   |                                  |
|                                   | \(202\) 418-3676 (in the         |
|                                   | Washington Area)                 |
|                                   |                                  |
|                                   | <h                               |
|                                   | ttp://www.fcc.gov/formpage>.html |
+-----------------------------------+----------------------------------+
| FCC INTERNET SITES                | [http://w                        |
|                                   | ww.fcc.gov](http://www.fcc.gov/) |
|                                   |                                  |
|                                   | [ht                              |
|                                   | tp://wireless.fcc.gov/auctions]( |
|                                   | http://www.fcc.gov/wtb/auctions) |
|                                   |                                  |
|                                   | <http://wireless.fcc.gov/uls>    |
+-----------------------------------+----------------------------------+

# SHORT-FORM (FCC FORM 175) APPLICATION REQUIREMENTS

Guidelines for completion of the short-form (FCC Form 175) are set forth
in Attachment D to this public notice. The short-form application seeks
the applicant's name and address; legal classification; status;
identification of the license(s) sought; and the authorized bidders and
contact persons. All applicants must certify on their FCC Form 175
applications under penalty of perjury that they are legally,
technically, financially and otherwise qualified to hold a license and,
as discussed below in Section II.C (Provisions Regarding Defaulters and
Former Defaulters), that they are not in default on any payment for
Commission licenses (including down payments) or delinquent on any
non-tax debt owed to any Federal agency.

## Ownership Disclosure Requirements (FCC Form 175 Exhibit A)

All applicants must comply with the uniform Part 1 ownership disclosure
standards and provide information required by Sections 1.2105 and 1.2112
of the Commission's rules. Specifically, in completing FCC Form 175,
applicants will be required to file an "Exhibit A" providing a full and
complete statement of the ownership of the bidding entity. The ownership
disclosure standards for the short-form are set forth in Section 1.2112
of the Commission's rules.[^35]

## Consortia and Joint Bidding Arrangements (FCC Form 175 Exhibit B)

Applicants will be required to identify on their short-form applications
any parties with whom they have entered into any consortium
arrangements, joint ventures, partnerships or other agreements or
understandings which relate in any way to the licenses being auctioned,
including any agreements relating to post-auction market structure.[^36]
Applicants will also be required to certify on their short-form
applications that they have not entered into any explicit or implicit
agreements, arrangements or understandings of any kind with any parties,
other than those identified, regarding the amount of their bids, bidding
strategies, or the particular licenses on which they will or will not
bid.[^37] As discussed above, if an applicant has had discussions, but
has not reached a joint bidding agreement by the short-form deadline, it
would not include the names of parties to the discussions on its
application and may not continue discussions with other applicants after
the deadline.[^38] Where applicants have entered into consortia or joint
bidding arrangements, applicants must submit an "Exhibit B" to the FCC
Form 175.

A party holding a non-controlling, attributable interest in one
applicant will be permitted to acquire an ownership interest in, form a
consortium with, or enter into a joint bidding arrangement with other
applicants provided that (i) the attributable interest holder certifies
that it has not and will not communicate with any party concerning the
bids or bidding strategies of more than one of the applicants in which
it holds an attributable interest, or with which it has formed a
consortium or entered into a joint bidding arrangement; and (ii) the
arrangements do not result in a change in control of any of the
applicants.[^39] While the anti-collusion rules do not prohibit
non-auction-related business negotiations among auction applicants,
applicants are reminded that certain discussions or exchanges could
touch upon impermissible subject matters because they may convey pricing
information and bidding strategies.

## Provisions Regarding Defaulters and Former Defaulters (FCC Form 175 Exhibit C)

Each applicant must certify on its FCC Form 175 application under
penalty of perjury that the applicant, its controlling interests, its
affiliates, and the affiliates of its controlling interests, as defined
by Section 1.2110, are not in default on any Commission licenses
(including down payments) and not delinquent on any non-tax debt owed to
any Federal agency.[^40] In addition, each applicant must attach to its
FCC Form 175 application a statement made under penalty of perjury
indicating whether or not the applicant, its affiliates, its controlling
interests, or the affiliates of its controlling interests, as defined by
Section 1.2110, have ever been in default on any Commission licenses or
have ever been delinquent on any non-tax debt owed to any Federal
agency.[^41] **Applicants must include this statement as Exhibit C of
the FCC Form 175.** Prospective applicants are reminded that submission
of a false certification to the Commission is a serious matter that may
result in severe penalties, including monetary forfeitures, license
revocations, exclusion from participation in future auctions, and/or
criminal prosecution.

"Former defaulters" --- *i.e.*, applicants, including their attributable
interest holders, that in the past have defaulted on any Commission
licenses or been delinquent on any non-tax debt owed to any Federal
agency, but that have since remedied all such defaults and cured all of
their outstanding non-tax delinquencies --- are eligible to bid in
Auction No. 52, provided that they are otherwise qualified. However, as
discussed *infra* in Section III.D.3, former defaulters are required to
pay upfront payments that are 50 percent more than the normal upfront
payment amounts.[^42]

## Installment Payments and Bidding Credits

Neither installment payment plans nor bidding credits will be available
in Auction No. 52.

## Other Information (FCC Form 175 Exhibits D and E)

Applicants owned by minorities or women, as defined in 47 C.F.R. §
1.2110(c)(2), may attach an exhibit (Exhibit D) regarding this status.
This applicant status information is collected for statistical purposes
only and assists the Commission in monitoring the participation of
"designated entities" in its auctions. Applicants wishing to submit
additional information may do so on Exhibit E (Miscellaneous
Information) to the FCC Form 175.

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

After the short-form filing deadline (6:00 p.m. ET May 21, 2004),
applicants may make only minor changes to their FCC Form 175
applications. Applicants will not be permitted to make major
modifications to their applications (*e.g*., change their license
selections or proposed orbit location, change the certifying official,
or change control of the applicant). *See* 47 C.F.R. § 1.2105.
Permissible minor changes include, for example, deletion and addition of
authorized bidders (to a maximum of three) and revision of exhibits.
Applicants should make these modifications to their FCC Form 175
electronically and submit a letter, briefly summarizing the changes, by
electronic mail to the attention of Margaret Wiener, Chief, Auctions and
Spectrum Access Division, at the following address:
[auction52@fcc.gov]{.underline}. The electronic mail summarizing the
changes must include a subject or caption referring to Auction No. 52.
The Bureau requests that parties format any attachments to electronic
mail as Adobe^®^ Acrobat^®^ (pdf) or Microsoft^®^ Word documents.

**A separate copy of the letter should be faxed to the attention of
Kathryn Garland at (717) 338-2850.** Questions about other changes
should be directed to Brian Carter of the Auctions and Spectrum Access
Division at (202) 418-0660.

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

Section 1.65 of the Commission\'s rules requires applicants to maintain
the completeness and accuracy of the information in their pending
applications and to notify the Commission within 30 days of any
substantial change that may be of decisional significance. Amendments
reporting substantial changes of possible decisional significance in
information contained in FCC Form 175 applications, as defined by 47
C.F.R. § 1.2105(b)(2), will not be accepted and may in some instances
result in the dismissal of the FCC Form 175 application.

# PRE-AUCTION PROCEDURES

## Auction Seminar

On Thursday, May 13, 2004, the FCC will sponsor a free seminar for
Auction No. 52 at the Federal Communications Commission, located at 445
12^th^ Street, SW, Washington, DC. The seminar will provide attendees
with information about pre-auction procedures, conduct of the auction,
the FCC Automated Auction System, and DBS service and auction rules. The
seminar will also provide an opportunity for prospective applicants to
ask questions of FCC staff.

To register, complete the registration form found in Attachment B and
submit it by Tuesday, May 11, 2004. Registrations are accepted on a
first-come, first-served basis.

## Short-Form Application (FCC Form 175) --- Due May 21, 2004

In order to participate in this auction, applicants must first submit an
FCC Form 175 application. This application must be submitted
electronically and received at the Commission no later than 6:00 p.m. ET
on May 21, 2004. Late applications will not be accepted.

There is no application fee required when filing an FCC Form 175.
However, to be eligible to bid, an applicant must submit an upfront
payment. *See* Section III.D, *below*.

### Electronic Filing

Applicants must file their FCC Form 175 applications
electronically.[^43] Applications may generally be filed at any time
beginning at noon ET on May 13, 2004, until 6:00 p.m. ET on May 21,
2004. Applicants are strongly encouraged to file early and are
responsible for allowing adequate time for filing their applications.
Applicants may update or amend their electronic applications multiple
times until the filing deadline on May 21, 2004.

Applicants must press the "SUBMIT Application" button on the
"Submission" page of the electronic form to successfully submit their
FCC Form 175s. Any form that is not submitted will not be reviewed by
the FCC. Information about accessing the FCC Form 175 is included in
Attachment C. Technical support is available at (202) 414-1250 (voice)
or (202) 414-1255 (text telephone (TTY)); hours of service are Monday
through Friday, from 8:00 AM to 6:00 PM ET. In order to provide better
service to the public, *all calls to the hotline are recorded.*

Applicants can also contact Technical Support via e-mail. To obtain the
address, click the **Support** tab on the Form 175 Homepage.

### Completion of the FCC Form 175

Applicants should carefully review 47 C.F.R. § 1.2105, and must complete
all items on the FCC Form 175. Instructions for completing the FCC Form
175 are in Attachment D of this public notice. Applicants are encouraged
to begin preparing the required attachments for FCC Form 175 prior to
submitting the form. Attachments C and D to this public notice provide
information on the required attachments and appropriate formats.

### Electronic Review of FCC Form 175

The FCC Form 175 electronic review system may be used to locate and
print applicants' FCC Form 175 information. There is no fee for
accessing this system. *See* Attachment C for details on accessing the
review system.

Applicants may also view other applicants' completed FCC Form 175s after
the filing deadline has passed and the FCC has issued a public notice
explaining the status of the applications. NOTE: Applicants should not
include sensitive information (*i.e.*, TIN/EIN) on any exhibits to their
FCC Form 175 applications.

## Application Processing and Minor Corrections

After the deadline for filing the FCC Form 175 applications has passed,
the FCC will process all timely submitted applications to determine
which are acceptable for filing, and subsequently will issue a public
notice identifying: (1) those applications accepted for filing; (2)
those applications rejected; and (3) those applications which have minor
defects that may be corrected, and the deadline for filing such
corrected applications.

As described more fully in the Commission's rules, after the May 21,
2004, short-form filing deadline, 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 license selections or proposed orbit location, change the
certifying official, or change control of the applicant).[^44]

## Upfront Payments --- Due June 18, 2004

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). After completing the FCC Form 175, filers will have access to an
electronic version of the FCC Form 159 that can be printed and faxed to
Mellon Bank in Pittsburgh, PA. All upfront payments must be received at
Mellon Bank by 6:00 p.m. ET on June 18, 2004.

Please note that:

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

-   All payments must be made by wire transfer.

-   Upfront payments for Auction No. 52 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 June 18, 2004,
    deadline will result in dismissal of the application and
    disqualification from participation in the auction.

### Making Auction Payments by Wire Transfer

**Wire transfer payments must be received by 6:00 p.m. ET on June 18,
2004.** 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: 043000261

> Receiving Bank: Mellon Pittsburgh
>
> BENEFICIARY: FCC/Account \# 910-0171
>
> 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: A52U)
>
> FCC CODE 1 (same as FCC Form 159, block 28A: "52")
>
> PAYER NAME (same as FCC Form 159, block 2)
>
> LOCKBOX NO. \# 358430

**NOTE:** The BNF and Lockbox number are specific to the upfront
payments for this auction; do not use BNF or Lockbox numbers from
previous auctions.

Applicants must fax a completed FCC Form 159 (Revised 2/03) 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). On the cover sheet
of the fax, write "Wire Transfer --- Auction Payment for Auction Event
No. 52." In order to meet the Commission's upfront payment deadline, an
applicant's payment must be credited to the Commission's account by the
deadline.[^45] **Applicants are responsible for obtaining confirmation
from their financial institution that Mellon Bank has timely received
their upfront payment and deposited it in the proper account.**

### FCC Form 159

A completed FCC Remittance Advice Form (FCC Form 159, Revised 2/03) must
be faxed to Mellon Bank in order to accompany each upfront payment.
Proper completion of FCC Form 159 (Revised 2/03) is critical to ensuring
correct credit of upfront payments. Detailed instructions for completion
of FCC Form 159 are included in Attachment E to this public notice. An
electronic version of the FCC Form 159 is available after filing the FCC
Form 175. The FCC Form 159 can be completed electronically, but must be
filed with Mellon Bank via facsimile.

### Amount of Upfront Payment

In the *Part 1 Order* the Commission delegated to the Bureau the
authority and discretion to determine appropriate upfront payment(s) for
each auction.[^46] In addition, in the *Part 1 Fifth Report and Order*,
the Commission ordered that "former defaulters," *i.e.*, applicants that
have ever been in default on any Commission license or have ever been
delinquent on any non-tax debt owed to any Federal agency, be required
to pay upfront payments 50 percent greater than non-"former
defaulters."[^47] 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 (as amended in the *Part 1
Fifth Report and Order*).[^48]

In the *Auction No. 52 Comment Public Notice*, the Commission proposed
that the amount of the upfront payment would determine the number of
bidding units on which a bidder may place bids.[^49] In order to bid on
a license, otherwise qualified bidders that applied for that license on
Form 175 must have an eligibility level that meets or exceeds the number
of bidding units assigned to that license. At a minimum, therefore, an
applicant's total upfront payment must be enough to establish
eligibility to bid on at least one of the licenses applied for on Form
175, 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 licenses for which the applicant has applied on Form 175, but rather
to cover the maximum number of bidding units that are associated with
licenses on which the bidder wishes to place bids and hold high bids at
any given time.

In the *Auction No. 52 Comment Public Notice*, the Commission proposed
upfront payments on a license-by-license basis as follows: The
Commission proposed upfront payments of \$50,000 per channel for the
licenses at the 175º W.L. and 166º W.L. orbit locations, \$100,000 per
channel for the license at the 157º W.L. orbit location, and \$400,000
per channel for the license at the 61.5º W.L. orbit location. Given 32
channels at 175º W.L., 166º W.L., and 157º W.L., and two channels at
61.5º W.L., the Commission proposed upfront payments of \$1,600,000 for
the 175º W.L. and 166º W.L. licenses, \$3,200,000 for the 157º W.L.
license, and \$800,000 for the 61.5º W.L. license.[^50]

No comments were submitted on this issue. As noted above, however, the
license for the two available channels at the 61.5º W.L. orbit location
will not be offered in Auction No. 52, and the license for the 157º W.L.
orbit location will authorize the use of 29, rather than 32,
channels.[^51] In the *Auction No. 52 Comment Public Notice* the
Commission indicated that if the number of available channels at any
location changed prior to the auction, the applicable upfront payment
would change proportionately.[^52] Accordingly, the Bureau adopts the
upfront payments proposed in the *Auction No. 52 Comment Public Notice*
for the 175º W.L. and 166º W.L. licenses, does not adopt an upfront
payment for the 61.5º W.L. license, and adopts an upfront payment of
\$2,900,000 for the 157º W.L. license.

The specific upfront payments for each license are set forth in the
following table and in Attachment A of this Public Notice. Attachment A
also includes the number of bidding units for each license.

  ---------------------- ---------------- --------------- ----------------
  Upfront Payments                                        

                         Orbit Location                   

                         175º W.L.        166º W.L.       157º W.L.

  Per Channel            \$50,000         \$50,000        \$100,000

  \# of Channels         32               32              29

  Upfront Payment        \$1,600,000      \$1,600,000     \$2,900,000
  ---------------------- ---------------- --------------- ----------------

In calculating its upfront payment amount, an applicant should determine
the [maximum]{.underline} number of bidding units on which it may wish
to be active (bidding units associated with licenses on which the bidder
has the standing high bid from the previous round and licenses on which
the bidder places a bid in the current round) in any single round, and
submit an upfront payment covering that number of bidding units. In
order to make this calculation, an applicant should add together the
upfront payments for all licenses on which it seeks to bid in any given
round. **Applicants should check their calculations carefully, as there
is no provision for increasing maximum eligibility after the upfront
payment deadline.**

Former defaulters should calculate their upfront payment for all
licenses by multiplying the number of bidding units they wish to
purchase by 1.5. 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.

NOTE: An applicant may, on its FCC Form 175, apply for every applicable
license being offered, but its actual bidding in any round will be
limited by the bidding units reflected in its upfront payment.

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

The Commission will use wire transfers for all Auction No. 52 refunds.
To ensure that refunds of upfront payments are processed in an
expeditious manner, the Commission is requesting that all pertinent
information as listed below be supplied to the FCC. Applicants can
provide the information electronically during the initial short-form
filing window after the form has been submitted. Wire Transfer
Instructions can also be manually faxed to the FCC, Financial Operations
Center, Auctions Accounting Group, ATTN: Gail Glasser or Tim Dates, at
(202) 418-2843 by June 18, 2004. All refunds will be returned to the
payer of record as identified on the FCC Form 159 unless the payer
submits written authorization instructing otherwise. For additional
information, please call Gail Glasser at (202) 418-0578 or Tim Dates at
(202) 418-0496.

Name of Bank

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

(Applicants should also note that implementation of the Debt Collection
Improvement Act of 1996 requires the FCC to obtain a Taxpayer
Identification Number (TIN) before it can disburse refunds.) Eligibility
for refunds is discussed in Section V.E., *below*.

## Auction Registration

Approximately ten days before the auction, the FCC will issue a public
notice announcing all qualified bidders for the auction. Qualified
bidders are those applicants whose FCC Form 175 applications have been
accepted for filing and have timely submitted upfront payments
sufficient to make them eligible to bid on at least one of the licenses
for which they applied.

All qualified bidders are automatically registered for the auction.
Registration materials will be distributed prior to the auction by two
separate overnight mailings, one containing the confidential bidder
identification number (BIN) and the other containing the SecurID cards,
both of which are required to place bids. **These mailings will be sent
only to the contact person at the contact address listed in the FCC Form
175.**

Applicants that do not receive both registration mailings will not be
able to submit bids. Therefore, any qualified applicant that has not
received both mailings by noon on Wednesday, July 7, 2004, should
contact the Auctions Hotline at (717) 338-2888. Receipt of both
registration mailings is critical to participating in the auction, and
each applicant is responsible for ensuring it has received all of the
registration material.

Qualified bidders should note that lost bidder identification numbers or
SecurID cards can be replaced only by appearing [in person]{.underline}
at the FCC headquarters, located at 445 12^th^ St., SW, Washington, DC
20554. Only an authorized representative or certifying official, as
designated on an applicant's FCC Form 175, may appear in person with two
forms of identification (one of which must be a photo identification) in
order to receive replacements. Qualified bidders requiring replacements
must call technical support prior to arriving at the FCC.

## Remote Electronic Bidding 

The Commission will conduct this auction over the Internet, and
telephonic bidding will also be available. As a contingency plan,
bidders may also dial in to the FCC Wide Area Network. Qualified bidders
are permitted to bid telephonically or electronically. Each applicant
should indicate its bidding preference -- electronic or telephonic -- on
the FCC Form 175. In either case, **each authorized bidder** must have
its own SecurID card, which the FCC will provide at no charge. Each
applicant with one authorized bidder will be issued two SecurID cards,
while applicants with two or three authorized bidders will be issued
three cards. For security purposes, the SecurID cards and the FCC
Automated Auction System user manual are only mailed to the contact
person at the contact address listed on the FCC Form 175. Please note
that each SecurID card is tailored to a specific auction; therefore,
SecurID cards issued for other auctions or obtained from a source other
than the FCC will not work for Auction No. 52. The telephonic bidding
phone number will be supplied in the first overnight mailing, which also
includes the confidential bidder identification number. Each applicant
should indicate its bidding preference---electronic or telephonic---on
the FCC Form 175.

Please note that the SecurID cards can be recycled, and we encourage
bidders to return the cards to the FCC. We will provide pre-addressed
envelopes that bidders may use to return the cards once the auction is
over.

## Mock Auction

All qualified bidders will be eligible to participate in a mock auction
on Friday, July 9, 2004. The mock auction will enable applicants to
become familiar with the FCC Automated Auction System prior to the
auction. Participation by all bidders is strongly recommended. Details
will be announced by public notice.

# AUCTION EVENT

The first round of bidding for Auction No. 52 will begin on Wednesday,
July 14, 2004. The initial bidding schedule will be announced in a
public notice listing the qualified bidders, which is released
approximately 10 days before the start of the auction.

## Auction Structure

### Simultaneous Multiple Round Auction

In the *Auction No. 52 Comment Public Notice*, the Commission proposed
to award all licenses in Auction No. 52 in a simultaneous multiple round
auction.[^53] No comments were submitted on the issue of the use of this
auction design. We conclude that it is operationally feasible and
appropriate to auction the DBS licenses through a simultaneous multiple
round auction. Unless otherwise announced, bids will be accepted on all
licenses in each round of the auction. This approach, we believe, allows
bidders to take advantage of any synergies that may exist among licenses
and is administratively efficient.

### Maximum Eligibility and Activity Rules 

In the *Auction No. 52 Comment Public Notice*, the Commission proposed
that the amount of the upfront payment submitted by a bidder would
determine the initial maximum eligibility (as measured in bidding units)
for each bidder.[^54] No comments on this issue were received.

We adopt this proposal for Auction No. 52. The amount of the upfront
payment submitted by a bidder determines the maximum initial eligibility
(in bidding units) for each bidder. Note again that each license is
assigned a specific number of bidding units equal to the upfront payment
listed in Attachment A on a bidding unit per dollar basis. The total
upfront payment defines the maximum number of bidding units on which the
applicant will be permitted to bid and hold high bids in a round. As
there is no provision for increasing a bidder's eligibility after the
upfront payment deadline, prospective bidders are cautioned to calculate
their upfront payments carefully. **The total upfront payment does not
affect the total dollar amount a bidder may bid on any given license.**

In order to ensure that the 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 eligibility during each round of the
auction.

A bidder's activity level in a round is the sum of the bidding units
associated with licenses on which the bidder is active. A bidder is
considered active on a license in the current round if it is either the
high bidder at the end of the previous bidding round and does not
withdraw the high bid in the current round, or if it submits a bid in
the current round (*see* "Minimum Acceptable Bids and Bid Increments" in
Section IV.B.3, *below*). The minimum required activity is expressed as
a percentage of the bidder's current bidding eligibility, and increases
by stage as the auction progresses. Because these procedures have proven
successful in maintaining the pace of previous auctions (as set forth
under "Auction Stages" in Section IV.A.3 and "Stage Transitions" in
Section IV.A.4, *below*), we adopt them for Auction No. 52.

### Auction Stages

In the *Auction No. 52 Comment Public Notice*, the Commission proposed
to conduct the auction in three stages and employ an activity rule.
Under this proposal, in each round of Stage One a bidder desiring to
maintain its current eligibility would be required to be active on
licenses representing at least 50 percent of its current bidding
eligibility.[^55] In each round of Stage Two, a bidder desiring to
maintain its current eligibility would be required to be active on at
least 75 percent of its current bidding eligibility. Finally, a bidder
in Stage Three, in order to maintain its current eligibility, would be
required to be active on 100 percent of its current bidding eligibility.
No comments on this proposal were submitted.

We adopt this proposal for the activity rule and stages. Below are the
activity levels for each stage of the auction. The FCC reserves the
discretion to further alter the activity percentages before and/or
during the auction.

**Stage One:** During the first stage of the auction, a bidder desiring
to maintain its current eligibility will be required to be active on
licenses representing at least 50 percent of its current bidding
eligibility in each bidding round. Failure to maintain the required
activity level will result in a reduction in the bidder's bidding
eligibility in the next round of bidding (unless an activity rule waiver
is used). During Stage One, reduced eligibility for the next round will
be calculated by multiplying the bidder's current activity (the sum of
bidding units of the bidder's standing high bids and bids during the
current round) by two.

**Stage Two:** During the second stage of the auction, a bidder desiring
to maintain its current eligibility is required to be active on 75
percent of its current bidding eligibility. Failure to maintain the
required activity level will result in a reduction in the bidder's
bidding eligibility in the next round of bidding (unless an activity
rule waiver is used). During Stage Two, reduced eligibility for the next
round will be calculated by multiplying the bidder's current activity
(the sum of bidding units of the bidder's standing high bids and bids
during the current round) by four-thirds (4/3).

**Stage Three:** During the third stage of the auction, a bidder
desiring to maintain its current eligibility is required to be active on
100 percent of its current bidding eligibility. Failure to maintain the
required activity level will result in a reduction in the bidder's
bidding eligibility in the next round of bidding (unless an activity
rule waiver is used). In this final stage, reduced eligibility for the
next round will be set at current round activity. For example, if a
bidder does not have a standing high bid, does not place a bid in the
current round, and does not have any activity rule waivers remaining,
its eligibility will be reduced to zero, thereby eliminating the bidder
from the auction.

CAUTION: Since activity requirements increase in each auction stage,
bidders must carefully check their current activity during the bidding
period of the first round following a stage transition. This is
especially critical for bidders that have standing high bids and do not
plan to submit new bids. In past auctions, some bidders have
inadvertently lost bidding eligibility or used an activity rule waiver
because they did not re-verify their activity status at stage
transitions. Bidders may check their activity against the required
activity level by using the bidding system's bidding module.

Because the foregoing procedures have proven successful in maintaining
proper pace in previous auctions, we adopt them for Auction No. 52.

### Stage Transitions

In the *Auction No. 52 Comment Public Notice*, The Commission proposed
that the auction would generally advance to the next stage (*i.e.*, from
Stage One to Stage Two, and from Stage Two to Stage Three) after two
consecutive rounds in which only one new high bid is placed in each
round. The Commission further proposed that the Bureau would retain the
discretion to change stages unilaterally by announcement during the
auction and further proposed that the Bureau retain the discretion not
to make a transition to the next stage when the conditions described
above are met. This determination would be based on a variety of
measures of bidder activity, including, but not limited to, the auction
activity level, the percentages of licenses (as measured in bidding
units) on which there are new bids, the number of new bids, and the
percentage increase in revenue.[^56] No comments were submitted on this
subject.

We adopt the proposal set forth in the *Auction No. 52 Comment Public
Notice*. Thus, the auction will start in Stage One and will generally
advance to the next stage (*i.e.*, from Stage One to Stage Two, and from
Stage Two to Stage Three) after two consecutive rounds in which only one
new high bid is placed in each round.[^57] In addition, the Bureau will
retain the discretion to regulate the pace of the auction by
announcement. This determination will be based on a variety of measures
of bidder activity, including, but not limited to, the auction activity
level, the percentages of licenses (as measured in bidding units) on
which there are new bids,[^58] the number of new bids, and the
percentage increase in revenue. We believe that these stage transition
rules are appropriate for use in Auction No. 52.

### Activity Rule Waivers and Reducing Eligibility

In the *Auction No. 52 Comment Public Notice*, the Commission proposed
that each bidder in the auction would be provided three activity rule
waivers. Bidders may use an activity rule waiver in any round during the
course of the auction.[^59] No comments were received concerning this
issue.

Based upon our experience in previous auctions, **we adopt the proposal
that each bidder be provided three activity rule waivers that may be
used 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
level. An activity rule waiver applies to an entire round of bidding and
not to a particular license. We are satisfied that providing three
waivers over the course of the auction provides a sufficient number of
waivers and flexibility to the bidders while safeguarding the integrity
of the auction.

The FCC Automated Auction System assumes that bidders with insufficient
activity would prefer to use an activity rule waiver (if available)
rather than lose bidding eligibility. Therefore, the system will
automatically apply a waiver (known as an "automatic waiver") at the end
of any 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, thereby meeting the minimum requirements. If a
bidder has no waivers remaining and does not satisfy the required
activity level, the current eligibility will be permanently reduced,
possibly eliminating the bidder from the auction.

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 round by using the
reduce eligibility function in the bidding system. In this case, the
bidder's eligibility is permanently reduced to bring the bidder into
compliance with the activity rules as described in "Auction Stages"
(*see* Section IV.A.3 discussion *above*). Once eligibility has been
reduced, a bidder will not be permitted to regain its lost bidding
eligibility.

Finally, a bidder may proactively use an activity rule waiver as a means
to keep the auction open without placing a bid. If a bidder submits a
proactive waiver (using the proactive waiver function in the FCC
Automated Auction System) during a round in which no bids are submitted,
the auction will remain open and the bidder's eligibility will be
preserved. However, an automatic waiver triggered during a round in
which there are no new bids or withdrawals will not keep the auction
open. **Note: Once a proactive waiver is submitted during a round, that
waiver cannot be unsubmitted.**

### Auction Stopping Rules

For Auction No. 52, the Commission proposed to employ a simultaneous
stopping rule.[^60] The Commission also sought comment on a modified
version of the stopping rule. The modified version of the stopping rule
would close the auction for all licenses after the first round in which
no bidder submits a proactive waiver, a withdrawal, or a new bid on any
license on which it is not the standing high bidder. Thus, absent any
other bidding activity, a bidder placing a new bid on a license for
which it is the standing high bidder would not keep the auction open
under this modified stopping rule.

The Commission further proposed that the Bureau retain the discretion to
keep the auction open even if no new bids or proactive waivers are
submitted and no previous high bids are withdrawn in a round. In this
event, the effect will be the same as if a bidder had submitted a
proactive waiver. Thus, the activity rule will apply as usual, and a
bidder with insufficient activity will either use an activity rule
waiver (if it has any left) or lose bidding eligibility.

In addition, the Commission proposed that the Bureau reserve the right
to declare that the auction will end after a designated number of
additional rounds ("special stopping rule"). If the Bureau invokes this
special stopping rule, it will accept bids in the final round(s) only
for licenses on which the high bid increased in at least one of the
preceding specified number of rounds. The Commission proposed that the
Bureau exercise these options only in certain circumstances, such as
where the auction is proceeding very slowly, where there is minimal
overall bidding activity, or where it appears likely that the auction
will not close within a reasonable period of time.[^61] Before
exercising these options, the Bureau is likely to attempt to increase
the pace of the auction by, for example, moving the auction into the
next stage (where bidders will be required to maintain a higher level of
bidding activity), increasing the number of rounds per day, and/or
adjusting the minimum acceptable bids and bid increments for the
licenses.

No comments were received concerning this proposal. Therefore, we adopt
the above proposals. Auction No. 52 will begin under the simultaneous
stopping rule, and the Bureau will retain the discretion to invoke the
other versions of the stopping rule. We believe that these stopping
rules are most appropriate for Auction No. 52, because our experience in
prior auctions demonstrates that the auction stopping rules balance the
interests of administrative efficiency and maximum bidder participation.

### Auction Delay, Suspension, or Cancellation

In the *Auction No. 52 Comment Public Notice,* the Commission proposed
that, by public notice or by announcement during the auction, the Bureau
may delay, suspend, or cancel the auction in the event of natural
disaster, technical obstacle, evidence of an auction security breach,
unlawful bidding activity, administrative or weather necessity, or for
any other reason that affects the fair conduct of competitive
bidding.[^62] No comments were received concerning this proposal.

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

The initial bidding schedule 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 bidders public notice.

The FCC has 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 Bureau may
increase or decrease the amount of time for the bidding rounds and
review periods, or the number of rounds per day, depending upon the
bidding activity level and other factors.

### Reserve Price or Minimum Opening Bid

The Balanced Budget Act calls upon the Commission to prescribe methods
by which a reasonable reserve price will be required or a minimum
opening bid established when FCC licenses are subject to auction
(*i.e.*, because they are mutually exclusive), unless the Commission
determines that a reserve price or minimum opening bid is not in the
public interest.[^63] Consistent with this mandate, the Commission
directed the Bureau to seek comment on the use of a minimum opening bid
and/or reserve price prior to the start of each auction.[^64] Among
other factors, the Bureau must consider the amount of spectrum being
auctioned, the size of the area being served, the extent of interference
with other spectrum bands, and any other relevant factors that could
reasonably have an impact on bidders' valuation of the licenses.[^65]
The Commission concluded that the Bureau should have the discretion to
employ either or both of these mechanisms for future auctions.[^66]

In the *Auction No. 52 Comment Public Notice*, the Commission proposed
to establish minimum opening bids for Auction No. 52.[^67] Specifically,
for Auction No. 52, the Commission proposed minimum opening bids on a
license-by-license basis as follows: The Commission proposed minimum
opening bids of \$100,000 per channel for the licenses at the 175º W.L.
and 166º W.L. orbit locations, \$200,000 per channel for the license at
the 157º W.L. orbit location, and \$800,000 per channel for the license
at the 61.5º W.L. orbit location. Given 32 channels at 175º W.L., 166º
W.L., and 157º W.L., and two channels at 61.5º W.L., the Commission
proposed minimum opening bids of \$3,200,000 for the 175º W.L. and 166º
W.L. licenses, \$6,400,000 for the 157º W.L. license, and \$1,600,000
for the 61.5º W.L. license.

In the alternative, the Commission sought comment on whether, consistent
with the Balanced Budget Act, the public interest would be served by
having no minimum opening bid or reserve price.[^68]

No comments were received on this issue. As noted above, however, the
license for the two available channels at the 61.5º W.L. orbit location
will not be offered in Auction No. 52, and the license for the 157º W.L.
orbit location will authorize the use of 29, rather than 32,
channels.[^69] In the *Auction No. 52 Comment Public Notice* the
Commission indicated that if the number of available channels at any
location changed prior to the auction, the applicable minimum opening
bid would change proportionately.[^70] Accordingly, the Bureau adopts
the minimum opening bids proposed in the *Auction No. 52 Comment Public
Notice* for the 175º W.L. and 166º W.L. licenses, does not adopt a
minimum opening bid for the 61.5º W.L. license, and adopts a minimum
opening bid of \$5,800,000 for the 157º W.L. license. The minimum
opening bids we adopt for Auction No. 52 are reducible at the discretion
of the Bureau. We emphasize, however, that such discretion will be
exercised, if at all, sparingly and early in the auction, *i.e.*, before
bidders lose all waivers and begin to lose substantial eligibility.
During the course of the auction, the Bureau will not entertain any
requests to reduce the minimum opening bid on specific licenses.

The specific minimum opening bids for each license available in Auction
No. 52 are set forth in the following table and in Attachment A.

  ----------------------- --------------- ---------------- ---------------
  Minimum Opening Bids                                     

                          Orbit Location                   

                          175º W.L.       166º W.L.        157º W.L.

  Per Channel             \$100,000       \$100,000        \$200,000

  \# of Channels          32              32               29

  Minimum Opening Bid     \$3,200,000     \$3,200,000      \$5,800,000
  ----------------------- --------------- ---------------- ---------------

### Minimum Acceptable Bids and Bid Increments 

In the *Auction No. 52 Comment Public Notice*, the Commission proposed
the use of a 10 percent bid increment. This means that the minimum
acceptable bid for a license is approximately 10 percent greater than
the previous standing high bid received on the license. The minimum
acceptable bid amount is calculated by multiplying the standing high bid
times one plus the increment percentage -- *i.e.*, (standing high bid)
\* (1.10). The result is rounded using the Bureau's standard rounding
procedures for minimum acceptable bid calculations: 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
\$1,000 are rounded to the nearest \$10. The Commission further proposed
that the Bureau retain the discretion to change the minimum acceptable
bids and bid increments if circumstances so dictate.[^71] No comments on
these proposals were received, and we adopt the proposals.

In each round, each eligible bidder will be able to place a bid on a
particular license for which it applied in any of nine different
amounts.[^72] The FCC Automated Auction System will list the nine bid
amounts for each license.

Once there is a standing high bid on a license, the FCC Automated
Auction System will calculate a minimum acceptable bid for that license
for the following round, as described below. The difference between the
minimum acceptable bid and the standing high bid for each license will
define the **bid increment** --- *i.e.*, bid increment = (minimum
acceptable bid) -- (standing high bid). The nine acceptable bid amounts
for each license consist of the minimum acceptable bid (the standing
high bid plus one bid increment) and additional amounts calculated using
multiple bid increments (*i.e.*, the second bid amount equals the
standing high bid plus two times the bid increment, the third bid amount
equals the standing high bid plus three times the bid increment, etc.).

At the start of the auction and until a bid has been placed on a
license, the minimum acceptable bid for that license will be equal to
its minimum opening bid. Corresponding additional bid amounts will be
calculated using bid increments defined as the difference between the
minimum opening bid times one plus the percentage increment, rounded as
described above, and the minimum opening bid --- *i.e.*, bid increment =
(minimum opening bid)(1 + percentage increment) {rounded} -- (minimum
opening bid). At the start of the auction and until a bid has been
placed on a license, the nine acceptable bid amounts for each license
consist of the minimum opening bid and additional amounts are calculated
using multiple bid increments (*i.e.*, the second bid amount equals the
minimum opening bid plus the bid increment, the third bid amount equals
the minimum opening bid plus two times the bid increment, etc).

In the case of a license for which the standing high bid has been
withdrawn,[^73] the minimum acceptable bid will equal the second highest
bid received for the license. The additional bid amounts are calculated
using the difference between the second highest bid times one plus the
minimum percentage increment, rounded, and the second highest bid.

The Bureau retains the discretion to change the minimum acceptable bids
and bid increments and the methodology for determining the minimum
acceptable bids and bid increments if it determines that circumstances
so dictate. The Bureau will do so by announcement in the FCC Automated
Auction System. The Bureau may also use its discretion to adjust the
minimum bid increment without prior notice if circumstances warrant.

### High Bids

At the end of each bidding round, the high bids will be determined based
on the highest gross bid amount received for each license. A high bid
from a previous round is sometimes referred to as a "standing high bid."
A "standing high bid" will remain the high bid until there is a higher
bid on the same license at the close of a subsequent round. Bidders are
reminded that standing high bids count towards bidding activity.[^74]

In the *Auction No. 52 Comment Public Notice*, the Commission proposed
to use a random number generator to select a high bid in the event of
identical high bids on a license in a given round (*i.e.*, tied
bids).[^75] No commenter opposed this proposal. Therefore, the Bureau
adopts the proposal. A Sybase® SQL pseudo-random number generator based
on the L'Ecuyer algorithm will be used to assign a random number to each
bid[^76]. The tied bid having the highest random number will become the
standing high bid. The remaining bidders, as well as the high bidder,
will be able to submit a higher bid in a subsequent round. If no bidder
submits a higher bid in a subsequent round, the high bid from the
previous round will win the license. If any bids are received on the
license in a subsequent round, the high bid will once again be
determined on the highest gross bid amount received for the license.

### Bidding

During a round, a bidder may submit bids for as many licenses as it
wishes (subject to its eligibility), withdraw high bids from a previous
bidding round, remove bids placed in the same bidding round, or
permanently reduce eligibility. Bidders also have the option of making
multiple submissions and withdrawals in each round. If a bidder submits
multiple bids for a single license in the same round, the system takes
the last bid entered as that bidder's bid for the round. Bidders should
note that the bidding units associated with licenses for which the
bidder has removed or withdrawn its bid do not count towards the
bidder's activity at the close of the round.

Please note that all bidding will take place remotely either through the
FCC Automated Auction System or by telephonic bidding. (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. Normally, four to five minutes are necessary to complete a bid
submission.) There will be no on-site bidding during Auction No. 52.

A bidder's ability to bid on specific licenses in the first round of the
auction is determined by two factors: (1) the licenses applied for on
FCC Form 175 and (2) the upfront payment amount deposited. The bid
submission screens will allow bidders to submit bids on only those
licenses for which the bidder applied on its FCC Form 175.

In order to access the bidding functions of the FCC Automated Auction
System, bidders must be logged in during the bidding round using the
bidder identification number provided in the registration materials, and
the passcode generated by the SecurID card. Bidders are strongly
encouraged to print bid confirmations for each round [after]{.underline}
they have completed all of their activity for that round.

In each round, eligible bidders will be able to place bids on a given
license in any of nine different amounts.[^77] For each license, the FCC
Automated Auction System interface will list the nine acceptable bid
amounts in a drop-down box. Bidders may use the drop-down box to select
from among the nine bid amounts. The FCC Automated Auction System also
includes an import function that allows bidders to upload text files
containing bid information.

Until a bid has been placed on a license, the minimum acceptable bid for
that license will be equal to its minimum opening bid. Once there is a
standing high bid on a license, the FCC Automated Auction System will
calculate a minimum acceptable bid for that license for the following
round, as described in Section IV.B.3.

Finally, bidders should use caution in selecting their bid amounts
because, as explained in the following section, bidders who withdraw a
standing high bid from a previous round, even if mistakenly or
erroneously made, are subject to bid withdrawal payments.

### Bid Removal and Bid Withdrawal

In the *Auction No. 52 Comment Public Notice*, the Commission proposed
bid removal and bid withdrawal procedures.[^78] With respect to bid
withdrawals, the Commission proposed limiting each bidder to withdrawals
in no more than one round during the course of the auction. The round in
which withdrawals are used would be at the bidder's discretion. No
comments on these proposals were submitted.

**Procedures.** Before the close of a bidding round, a bidder has the
option of removing any bids placed in that round. By using the "remove
bid" function in the bidding 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 towards bidding activity. These
procedures will enhance bidder flexibility during the auction, and
therefore we adopt them for Auction No. 52.

Once a round closes, a bidder may no longer remove a bid. However, in a
later round, a bidder may withdraw standing high bids from a previous
round using the withdraw bid function in the FCC Automated Auction
System (assuming that the bidder has not reached its withdrawal limit).
A high bidder that withdraws its standing high bid from a previous round
during the auction is subject to the bid withdrawal payments specified
in 47 C.F.R. § 1.2104(g). **Note: Once a withdrawal is submitted during
a round, that withdrawal cannot be unsubmitted.**

In previous auctions, we have detected bidder conduct that, arguably,
may have constituted strategic bidding through the use of bid
withdrawals. While we continue to recognize the important role that bid
withdrawals play in an auction, *i.e.*, reducing risk associated with
efforts to secure various licenses in combination, we conclude that, for
Auction No. 52, adoption of a limit on the use of withdrawals to one
round per bidder is appropriate. By doing so we believe we strike a
reasonable compromise that will allow bidders to use withdrawals. Our
decision on this issue is based upon our experience in prior auctions,
particularly the PCS D, E and F block and 800 MHz SMR auctions, and is
in no way a reflection of our view regarding the likelihood of any
speculation or "gaming" in this auction.

The Bureau will therefore limit the number of rounds in which bidders
may place withdrawals to one round. This round will be at the bidder's
discretion and there will be no limit on the number of bids that may be
withdrawn in the round. Withdrawals during the auction will be subject
to the bid withdrawal payments specified in 47 C.F.R. § 1.2104(g).
Bidders should note that abuse of the Commission's bid withdrawal
procedures could result in the denial of the ability to bid on a
license.

If a high bid is withdrawn, the minimum acceptable bid will equal the
second highest bid received for the license, which may be less than, or
equal to, in the case of tied bids, the amount of the withdrawn
bid.[^79] To set the additional bid amounts, the second highest bid also
will be used in place of the standing high bid in the formula used to
calculate bid increments. The Commission will serve as a "place holder"
high bidder on the license until a new bid is submitted on that license.

**Calculation.** Generally, the Commission imposes payments on bidders
that withdraw high bids during the course of an auction.[^80] If a
bidder withdraws its bid and there is no higher bid in the same or
subsequent auction(s), the bidder that withdrew its bid is responsible
for the difference between its withdrawn bid and the high bid in the
same or subsequent auction(s).[^81] In the case of multiple bid
withdrawals on a single license, within the same or subsequent
auctions(s), the payment for each bid withdrawal will be calculated
based on the sequence of bid withdrawals and the amounts withdrawn. No
withdrawal payment will be assessed for a withdrawn bid if either the
subsequent winning bid or any of the intervening subsequent withdrawn
bids, in either the same or subsequent auctions(s), equals or exceeds
that withdrawn bid. Thus, a bidder that withdraws a bid will not be
responsible for any withdrawal payments if there is a subsequent higher
bid in the same or subsequent auction(s).[^82] This policy allows
bidders most efficiently to allocate their resources as well as to
evaluate their bidding strategies and business plans during an auction
while, at the same time, maintaining the integrity of the auction
process. The Bureau retains the discretion to scrutinize multiple bid
withdrawals on a single license for evidence of anti-competitive
strategic behavior and take appropriate action when deemed necessary.

In the *Part 1 Fifth Report and Order*, the Commission modified Section
1.2104(g)(1) of the rules regarding assessments of interim bid
withdrawal payments.[^83] As amended, Section 1.2104(g)(1) provides that
in instances in which bids have been withdrawn on a license that is not
won in the same auction, the Commission will assess an interim
withdrawal payment equal to 3 percent of the amount of the withdrawn
bids. The 3 percent interim payment will be applied toward any final bid
withdrawal payment that will be assessed after subsequent auction of the
license. Assessing an interim bid withdrawal payment ensures that the
Commission receives a minimal withdrawal payment pending assessment of
any final withdrawal payment. The *Part 1 Fifth Report and Order*
provides specific examples showing application of the bid withdrawal
payment rule.[^84]

### Round Results

Bids placed during a round will not be made public until the conclusion
of that bidding period. After a round closes, the Bureau will compile
reports of all bids placed, bids withdrawn, current high bids, new
minimum acceptable bids, and bidder eligibility status (bidding
eligibility and activity rule waivers), and post the reports for public
access. Reports reflecting bidders' identities for Auction No. 52 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.

### Auction Announcements

The FCC will use auction announcements to announce items such as
schedule changes and stage transitions. All FCC auction announcements
will be available by clicking a link on the FCC Automated Auction
System.

### Maintaining the Accuracy of FCC Form 175 Information

As noted in Section II.F., after the short-form filing deadline,
applicants may make only minor changes to their FCC Form 175
applications. For example, permissible minor changes include deletion
and addition of authorized bidders (to a maximum of three) and certain
revision of exhibits. Applicants must make these modifications to their
FCC Form 175 electronically and submit a letter, briefly summarizing the
changes, by electronic mail to the attention of Margaret Wiener, Chief,
Auctions and Spectrum Access Division at the following address:
[auction52@fcc.gov](mailto:auction82@fcc.gov). The electronic mail
summarizing the changes must include a subject or caption referring to
Auction No. 52. The Bureau requests that parties format any attachments
to electronic mail as Adobe^®^ Acrobat^®^ (pdf) or Microsoft^®^ Word
documents.

**A separate copy of the letter should be faxed to the attention of
Kathryn Garland at (717) 338-2850.** Questions about other changes
should be directed to Brian Carter of the Auctions and Spectrum Access
Division at (202) 418-0660.

# POST-AUCTION PROCEDURES

## Down Payments and Withdrawn Bid Payments

After bidding has ended, the Commission will issue a public notice
declaring the auction closed, identifying winning bidders, down payments
and any withdrawn bid payments due.

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 No. 52 to 20 percent of its winning bids.[^85] In
addition, by the same deadline all bidders must pay any bid withdrawal
payments due under 47 C.F.R. § 1.2104(g), as discussed in "Bid Removal
and Bid Withdrawal," Section IV.B.6. (Upfront payments are applied first
to satisfy any withdrawn bid liability, before being applied toward down
payments.)

## Final Payments

Each winning bidder will be required to submit the balance of its
winning bids within 10 business days after the deadline for submitting
down payments.

## Long-Form Application (FCC Form 312)

Within 30 days after release of the auction closing notice, winning
bidders must submit a properly completed long-form application (FCC Form
312) and required exhibits for each license won through Auction No. 52.
Further filing instructions will be provided to auction winners at the
close of the auction.

## Default and Disqualification

Any high 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 payment, or is otherwise disqualified)
will be subject to the payments described in 47 C.F.R. § 1.2104(g)(2).
In such event the Commission may re-auction the license or offer it to
the next highest bidder (in descending order) at its final bid.[^86] 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 licenses
held by the applicant.[^87]

## Refund of Remaining Upfront Payment Balance

All applicants that submitted upfront payments but were not winning
bidders for a license in Auction No. 52 may be entitled to a refund of
their remaining upfront payment balance after the conclusion of the
auction. No refund will be made unless there are excess funds on deposit
from that applicant after any applicable bid withdrawal payments have
been paid. All refunds will be returned to the payer of record, as
identified on the FCC Form 159, unless the payer submits written
authorization instructing otherwise.

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, have no remaining bidding eligibility, and have not withdrawn a
high bid during the auction must submit a written refund request. If you
have completed the refund instructions electronically, then only a
written request for the refund is necessary. If not, the request must
also include wire transfer instructions, Taxpayer Identification Number
(TIN) and FCC Registration Number (FRN). Send refund request to:

Federal Communications Commission

Financial Operations Center

Auctions Accounting Group

Gail Glasser or Tim Dates

445 12th Street, SW, Room 1-C863

Washington, DC 20554

Bidders are encouraged to file their refund information electronically
using the refund information portion of the FCC Form 175, but bidders
can also fax their information to the Auctions Accounting Group at (202)
418-2843. Once the information has been approved, a refund will be sent
to the party identified in the refund information.

> NOTE: Refund processing generally takes up to two weeks to complete.
> Bidders with questions about refunds should contact Gail Glasser at
> (202) 418-0578 or Tim Dates at (202) 418-0496.

**Media Contact:** Lauren Patrich at (202) 418-7944

**Auctions and Spectrum Access Division, WTB:**

For legal questions: Brian Carter at (202) 418-0660

For general auction questions: Jeff Crooks at (202) 418-0660 or Lisa
Stover at (717) 338-2888

**Satellite Division, IB:**

For service rule questions: Rockie Patterson at (202) 418-1183 or Selina
Khan at (202) 418-7282

# Attachment A

**Auction No. 52 -- Licenses to Be Auctioned**

**DBS Licenses: Orbit Locations and Channels, with Incumbent for 157°
W.L.\***

+------------------+---------------+-----------------+----------------+
|                  | **Orbit       |                 |                |
|                  | Locations**   |                 |                |
+------------------+---------------+-----------------+----------------+
| **Channels**     | **175**°      | **166**°        | **157**°       |
|                  | **W.L.**      | **W.L.**        | **W.L.**       |
+------------------+---------------+-----------------+----------------+
| 1                |               |                 | EchoStar       |
+------------------+---------------+-----------------+----------------+
| 2                |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 3                |               |                 | EchoStar       |
+------------------+---------------+-----------------+----------------+
| 4                |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 5                |               |                 | EchoStar       |
+------------------+---------------+-----------------+----------------+
| 6                |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 7                |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 8                |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 9                |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 10               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 11               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 12               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 13               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 14               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 15               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 16               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 17               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 18               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 19               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 20               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 21               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 22               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 23               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 24               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 25               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 26               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 27               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 28               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 29               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 30               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 31               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| 32               |               |                 |                |
+------------------+---------------+-----------------+----------------+
| **Total No. of   | **32**        | **32**          | **29**         |
| Available        |               |                 |                |
| Channels**       |               |                 |                |
+------------------+---------------+-----------------+----------------+
| **License No.**  | **DB-175**    | **DB-166**      | **DB-157**     |
+------------------+---------------+-----------------+----------------+
| **Bidding        | **1,600,000** | **1,600,000**   | **2,900,000**  |
| Units**          |               |                 |                |
+------------------+---------------+-----------------+----------------+
| **Upfront        | **            | **\$1,600,000** | *              |
| Payment**        | \$1,600,000** |                 | *\$2,900,000** |
+------------------+---------------+-----------------+----------------+
| **Minimum**      | **            | **\$3,200,000** | *              |
|                  | \$3,200,000** |                 | *\$5,800,000** |
| **Opening Bid**  |               |                 |                |
+------------------+---------------+-----------------+----------------+

\*On December 10, 2003, EchoStar was granted special temporary authority
to operate on channels 1, 7, and 11 at the 157° W.L. orbit location
rather than on its assigned channels of 1, 3, and 5 for a period of 60
days commencing December 17, 2003, subject to certain conditions. On
December 19, 2003, EchoStar filed an application seeking to modify its
authorization at the 157° W.L. orbit location in order to use channels
1, 7, and 11 instead of channels 1, 3, and 5. *See supra* note 14.

Note: For each orbit location, the shaded cells show the channels that
comprise the license.

# attachment B

FCC AUCTION SEMINAR REGISTRATION FORM

Auction No. 52

The FCC will sponsor a one-day seminar for Auction No. 52 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 Automated Auction System.

Representatives from each company may attend on a reservation basis,
first-come first-served until room capacity is filled. The seminar will
be held:

Thursday, May 13, 2004

Federal Communications Commission

445 12th Street SW

Washington, DC 20554

Registration 9:30 a.m. -- 10:00 a.m.

Seminar 10:00 a.m. -- 2:00 p.m.

If hotel accommodations are needed

Please contact 1-888-225-5322 (option #2) for a list of hotels in the
area

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

To register, complete the form below and

return no later than

Tuesday, May 11, 2004, by fax to:

FCC Auction 52

Auctions and Spectrum Access Division

1270 Fairfield Road

Gettysburg, PA 17325-7245

FAX: 717-338-2850

Phone: 717-338-2888

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

I/We will attend the Auction No. 52 Seminar, scheduled for Thursday, May
13, 2004.

Name of attendee:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name of attendee:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Company name:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Company address:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Phone:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_Fax:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

# Attachment C

ELECTRONIC FILING AND REVIEW

OF THE FCC FORM 175

Applicants must submit their FCC Form 175 applications electronically.
The FCC recommends submitting your Form 175 via the Internet. As a
contingency, you can submit via the FCC Wide-Area Network. FCC Form 175
applications must be submitted and confirmed by **6:00 p.m. ET on
Friday, May 21, 2004**. Late applications or unconfirmed submissions of
electronic data will not be accepted.

Applicants must click the **SUBMIT Application** button on the
Submission page to successfully submit their FCC Form 175. The
electronic filing process consists of an initial filing period and a
resubmission period to make minor corrections. During each filing
period, submitted applications may be updated and amended multiple times
until the filing deadline.

## Software Requirements

Applicants will need to meet the following minimum software
requirements:

Web Browser, either of the following:

-   Microsoft® Internet Explorer 4.0 or higher (recommended). Your
    browser must have either Microsoft VM or Java Plug-In Version
    1.3.1_08 installed.

-   Netscape® Communicator™ 4.0 or higher, with Java Plug-In Version
    1.3.1_08.

> Java Plug-In Version 1.3.1_08 is available for downloading at
> ***http://java.sun.com/products/archive/index.html***

PDF Viewer: Adobe Acrobat Reader 5.0 or higher (available at
***http://www.adobe.com***)

If you wish to use the download feature on the Search Results page, you
will need a .tar file extraction utility, e.g., Winzip (available at
***http://www.winzip.com***) or Pkzip for Windows (available at
***http://www.pkware.com/shareware***).

## Submitting FCC Form 175 Applications

You can submit FCC Form 175 applications electronically via the
Internet. Start your web browser and point it to either
***http://auctions.fcc.gov/*** (primary location) or
***http://auctions2.fcc.gov/*** (secondary location). On the FCC
Auctions page, click **Form 175 Application & Search** to obtain the
Form 175 Homepage.

**Note:** As a contingency, you may submit FCC Form 175 application
amendments via the FCC Wide Area Network, using Dial-Up Networking. To
access the Wide Area Network, configure your dial-up network to dial
either ***202-408-7835*** or ***717-338-0735***. These phone numbers are
located in Washington, DC, and Gettysburg, PA, respectively. Thus, calls
to these numbers may be long-distance calls, depending on where the
calls originate.

### Logging On

The Form 175 Homepage has a Form 175 Logon area at the top right. This
area provides fields that let you identify yourself to the system. In
these fields, type your assigned FRN (without the hyphens) and the
password you created in CORES, respectively, then click the **Logon**
button.

Once you have logged on with your FRN, you can click the **New Form**
link to obtain the Profile page for the auction.

### Uploading Attachments

When uploading attachments from the Form 175 *Attachments* page, you may
use a variety of file formats\--including Word 2000 or earlier,
WordPerfect 6.*x* or earlier, Adobe PDF, and ASCII text\--and you should
verify that the files contain all exhibit information. Also note the
following about files to be uploaded:

-   Files may be no larger than 1.5 Mb.

-   Graphics files (e.g., .*bmp, .tiff, .jpg*) and spreadsheets (e.g.,
    Excel, Lotus) are not supported.

-   Word processing files that are uploaded may not contain graphic
    images.

-   You may include hyphens (-) and underscore (\_) symbols in the name
    of a file to be uploaded, but do not use other punctuation marks or
    blank spaces. The FCC system will not be able to convert that file.

-   The path to a file (i.e., the file name and its directory) must not
    exceed 60 characters.

-   Do not upload a password-protected file. The FCC system will not be
    able to open it or convert it.

-   Do not include your TIN in any attachment to be uploaded. Contents
    of attachments become public once the Status PN is released.

The system converts each uploaded attachment to PDF format. (The
conversion process generally completes within 30 minutes.) Until the
system has converted your file to PDF format, the description field
shows *Not converted*.

Repeat this procedure for each additional attachment you want to add.
When you have finished adding attachments, click the **Continue to
CERTIFICATION** button to obtain the *Certification* page.

#### Unreadable Attachment Files

If you are unable to read an attachment file after it has been
converted, please do the following:

1\. Re-upload the attachment.

2\. If the file still has not been converted properly, then simplify the
formatting of the file.

For example, if you are using a Table structure in a WordPerfect
document, remove the Table structure and leave the contents of the
table, then re-upload the attachment.

After you have successfully re-uploaded an attachment, please delete the
old, unreadable attachment files using their **Delete** links.

### Completing the Submission Procedure

Applicants must press the **SUBMIT Application** button on the
*Submission* page to successfully submit their FCC Form 175. Pressing
**SUBMIT Application** produces a *Submission Confirmation* page showing
the assigned FCC Account Number. During each filing period, submitted
applications may be updated and amended multiple times until the filing
deadline.

## Reviewing FCC Form 175 Applications

Once the FCC has completed the 175 Review process, you can view FCC Form
175 applications electronically by searching for them in the FCC
database. Start your web browser and point it to either
***http://auctions.fcc.gov/*** (primary location) or
***http://auctions2.fcc.gov/*** (secondary location). Click the **Form
175 Application & Search** link, then click the **SEARCH** link at the
top of the page. When the *Form 175 Search* page appears, select the
search criteria you want and then click the **Submit** button.

## Help

For technical assistance with using FCC software, contact the FCC
Technical Support Hotline at (202) 414‑1250 (V) or (202) 414-1255 (TTY).
The FCC Technical Support Hotline is generally available Monday through
Friday from 8 a.m. to 6 p.m. ET. *All calls to the FCC Technical Support
Hotline are recorded.*

You can also contact Technical Support via e-mail. To obtain the
address, click the **Support** tab on the Form 175 Homepage.

# Attachment D

GUIDELINES FOR COMPLETION OF FCC FORM 175 AND EXHIBITS

## FCC Form 175

Because of the significance of the FCC Form 175 application to the
auction, bidders should especially note the following:

**Applicant:** Name given is used as your bidder name in the auction.

**Address:** Applicants must provide a street address (not a Post Office
box number) for the applicant, suitable for mail or private parcel
delivery.

**Legal Classification:** Applicants must indicate their legal
classification. The FCC Form 175 requires the applicant to classify
itself as an individual, joint venture, partnership, trust, corporation,
consortium, association, limited liability corporation (LLC) or
government entity.

**Applicant Status:** Applicants are requested to indicate their status
as a rural telephone company, minority- and/or women-owned business.

**Contact person/address:** If the Commission wishes to communicate with
the applicant by telephone or fax, those communications will be directed
to the contact person identified on the FCC Form 175. Space is provided
for an address, telephone number, fax number, and e-mail address. **All
written communication and registration information will be directed to
the applicant's contact person at the address specified on the FCC Form
175.** Applicants must provide a street address for the contact person;
**[no P.O. Box addresses may be used.]{.underline}**

**Authorized Bidders:** Applicants must list the name(s) of the
person(s) (no more than three) authorized to represent them at the
auction. Only those individuals listed on the FCC Form 175 will be
authorized to place or withdraw bids for the applicant during the
auction.

**Bidding Credit Eligibility:** Bidding credits are not available for
Auction No. 52.

**Electronic or Telephonic Bidding Options:** Bidders may participate in
the auction either electronically or telephonically, and must specify
their preference. To participate in the auction, every authorized bidder
must have a SecurID card, which the FCC will provide free of charge.

**License Selection:** Applicants should select all licenses on which
they want to be eligible to bid in the auction. Be advised that there is
no opportunity to change this list once the short-form filing deadline
passes on May 21, 2004. It is critically important that you confirm the
licenses that you have selected because the auction system will not
accept a bid on licenses for which an applicant has not applied on its
FCC Form 175.

## Exhibits and Attachments 

In addition to the FCC Form 175, applicants must submit additional
information required by the FCC's rules. If attachments are not
uploaded, the FCC Form 175 submission process cannot be completed.
Although the FCC does not require a particular format for this
information, it has developed the following guidelines that will
facilitate the processing of short-form applications. The FCC encourages
applicants to submit this information using the following format.

If you find that an attachment has not converted properly to Adobe PDF
format, take the following steps:

*1) Simplify the formatting of the file. For example, if using a Table
structure in a WordPerfect document, remove the Table structure leaving
the contents of the table, re‑save the document.*

*2) Re‑upload the attachment.*

*3) When the re-uploaded attachment has successfully converted, delete
the failed attachment.*

**NOTE: Applicants should not include sensitive information (i.e.,
TIN/EIN) on any exhibits to their FCC Form 175s.**

**Exhibit A --- Applicant Identity and Ownership Information**: 47
C.F.R. § 1.2105(a)(2)(ii) requires each applicant to fully disclose the
real party or parties-in-interest in an exhibit to its FCC Form 175
application. The following information is required:

### General Information

  -----------------------------------------------------------------------
  ***Applicant Status*** ***Required Information***
  ---------------------- ------------------------------------------------
  General Partnership    Name, citizenship, and address of all partners,
                         and the share or interest participation of each
                         partner

  Limited Partnership    Name, citizenship, and address of each limited
                         partner whose interest in the applicant is equal
                         to or greater than 10 percent (as calculated
                         according to the percentage of equity paid in
                         and the percentage of distribution of profits
                         and losses)

  Corporation            Corporate name and address; name, title, and
                         citizenship of a responsible officer or director

  Limited Liability      Corporate name and address; name, address, and
  Corporation            citizenship of all members whose interest in the
                         applicant is equal to or greater than 10 percent
                         (as calculated according to the percentage of
                         equity paid in and the percentage of
                         distribution of profits and losses)

  Trust                  Name, citizenship, and address of trustee

  None of the above      Name, citizenship, title or other relation to
                         the applicant, and address of a principal or
                         other responsible person
  -----------------------------------------------------------------------

### Ownership Information

+----------------------+-----------------------------------------------+
| ***Applicant         | ***Required Information***                    |
| Status***            |                                               |
+======================+===============================================+
| All applicants       | Name, citizenship, and address of all         |
|                      | controlling interests of the applicant as     |
|                      | discussed in Section 1.2110 of the            |
|                      | Commission's rules.                           |
+----------------------+-----------------------------------------------+
| All applicants       | Name, citizenship, and address of all parties |
|                      | holding 10 percent or more of each class of   |
|                      | stock, warrants, options or debt securities   |
|                      | and the amount and percentage held.           |
+----------------------+-----------------------------------------------+
| All applicants       | Name of all parties holding a 10 percent or   |
|                      | greater interest in the applicant and the     |
|                      | specific amount held.                         |
+----------------------+-----------------------------------------------+
| All applicants       | List of all parties holding indirect          |
|                      | ownership interests in the applicant that     |
|                      | equals 10 percent or more, as determined by   |
|                      | successive multiplication of the ownership    |
|                      | percentages in each link of the vertical      |
|                      | ownership chain, except that if the ownership |
|                      | percentage for any link in the chain exceeds  |
|                      | 50 percent or represents actual control, it   |
|                      | shall be reported as if it were a 100 percent |
|                      | interest.                                     |
+----------------------+-----------------------------------------------+
|                      | *Example.* Company A owns 10% of Company B,   |
|                      | which owns 60% of Company C, which owns 25%   |
|                      | of the applicant. Company B's interest in the |
|                      | applicant would be 25% (the same as Company   |
|                      | C's interest since Company B's interest in    |
|                      | Company C exceeds 50%), and Company A's       |
|                      | interest in the applicant would be 2.5% (0.1  |
|                      | \* 0.25). Under the 10% attribution           |
|                      | benchmark, Company B's interest in the        |
|                      | applicant must be reported on the applicant's |
|                      | FCC Form 175 Exhibit A, while Company A's     |
|                      | interest in the applicant need not be         |
|                      | reported. However, if Company A owned 40% of  |
|                      | Company B in the above example, then Company  |
|                      | A's interest in the applicant would be 10%    |
|                      | (0.4 \* 0.25), and the applicant would need   |
|                      | to report it on the applicant's FCC Form 175  |
|                      | Exhibit A                                     |
+----------------------+-----------------------------------------------+
| All applicants       | List of any FCC-regulated entity or applicant |
|                      | for an FCC license, in which                  |
+----------------------+-----------------------------------------------+
|                      | > a\. the applicant;                          |
+----------------------+-----------------------------------------------+
|                      | > b\. any party with a 10 percent or greater  |
|                      | > interest in the applicant; or               |
+----------------------+-----------------------------------------------+
|                      | > c\. a controlling interest (as discussed in |
|                      | > Section 1.2110 of the Commission's rules)   |
|                      |                                               |
|                      | owns a 10 percent or greater interest of the  |
|                      | applicant or 10 percent or more of any class  |
|                      | of stock, warrants, options or debt           |
|                      | securities of the applicant. (*See also* 47   |
|                      | C.F.R. § 1.2110) This list must include a     |
|                      | description of each such entities' principal  |
|                      | business and a description of each such       |
|                      | entities' relationship to the applicant.      |
+----------------------+-----------------------------------------------+
|                      | *Example of a.* The applicant owns 10 percent |
|                      | of Company A (an FCC regulated entity or an   |
|                      | applicant for an FCC license). The applicant  |
|                      | must list Company A on its FCC Form 175       |
|                      | Exhibit A and provide the required            |
|                      | information.                                  |
+----------------------+-----------------------------------------------+
|                      | *Example of b.* Company A owns 10 percent of  |
|                      | the applicant and 10 percent of Company B (an |
|                      | FCC regulated entity or an applicant for an   |
|                      | FCC license). The applicant must list both    |
|                      | Company A and Company B on its FCC Form 175   |
|                      | Exhibit A and provide the required            |
|                      | information.                                  |
+----------------------+-----------------------------------------------+
|                      | *Example of c.* Company A owns 55% of the     |
|                      | applicant and owns 10 percent of Company B    |
|                      | (an FCC regulated entity or an Applicant for  |
|                      | an FCC license). The applicant must list both |
|                      | Company A and Company B on its FCC Form 175   |
|                      | Exhibit A and provide the required            |
|                      | information.                                  |
+----------------------+-----------------------------------------------+

**Exhibit B --- Agreements with Other Parties/Joint Bidding
Arrangements:** Applicants must attach an exhibit identifying all
parties with which they have entered into any agreements, arrangements
or understandings which relate in any way to the licenses being
auctioned, including any relating to the post-auction market structure.
*See* 47 C.F.R. §1.2105(a)(2)(viii).

Be aware that pursuant to Certification (4) on the FCC Form 175, the
applicant certifies that it will not enter into any explicit or implicit
agreements or understandings of any kind with parties not identified in
the application regarding bid amounts, bidding strategies, or the
particular licenses on which the applicant will or will not bid. *See*
47 C.F.R. § 1.2105(a)(2)(ix). *To prevent collusion, the Commission's
Rules generally prohibit competing applicants from communicating
concerning bids, bidding strategies, or settlements during the period
between the initial short-form applications filing deadline and the
deadline for down payments on licenses won in the auction.* 47 C.F.R. §
1.2105(c).

**Exhibit C --- Information Required of All Applicants Regarding Prior
Defaults and Prior Delinquencies:** Each applicant must include at
Exhibit C a statement made under penalty of perjury indicating whether
the applicant, its affiliates, its controlling interests, or the
affiliates of its controlling interest have ever been in default on any
Commission licenses or have ever been delinquent on any non-tax debt
owed to any Federal agency. The applicant must provide such information
for itself, for each of its controlling interests and affiliates, and
for each affiliate of its controlling interests as defined by Section
1.2110 of the Commission's rules (as amended in the *Part 1 Fifth Report
and Order*).

**Exhibit D --- Information Requested of Designated Entities:**
Applicants owned by minorities or women, as defined in 47 C.F.R. §
1.2110(c), or that are rural telephone companies, may attach an exhibit
regarding this status. This information, in conjunction with the
information requested on the FCC Form 175, will assist the Commission in
monitoring the participation of these "designated entities" in its
auctions.

**Exhibit E --- Miscellaneous Information**: Applicants wishing to
submit additional information should include it in Exhibit E.

**Waivers:** Applicants requesting waiver of any rules must submit a
statement of reasons sufficient to justify the waiver sought. *See* 47
C.F.R. §§ 1.3, 1.925.

**Certifications:** Applicants should carefully read the list of
certifications on the FCC Form 175. These certifications help to ensure
a fair and competitive auction and require, among other things,
disclosure to the Commission of certain information on applicant
ownership and agreements or arrangements concerning the auction.
Submission of an FCC Form 175 application constitutes a representation
by the certifying official that he or she is an authorized
representative of the applicant, has read the form's instructions and
certifications, and that the contents of the application and its
attachments are true and correct. Submission of a false certification to
the Commission may result in penalties, including monetary forfeitures,
license forfeitures, ineligibility to participate in future auctions,
and/or criminal prosecution.

**Completeness:** Applicants must submit all information required by the
FCC Form 175 and by applicable rules. Failure to submit required
information by the resubmission date will result in dismissal of the
application and inability to participate in the auction. *See* 47 C.F.R.
§ 1.2105(b).

**NOTE: Applicants must press the "SUBMIT Application" button on the
"Submission" page to successfully submit their FCC Form 175.**

**Continuing Accuracy:** Each applicant is responsible for the
continuing accuracy and completeness of information furnished in the FCC
Form 175 and its exhibits. *See* 47 C.F.R. § 1.65. It is the FCC's
position that during the conduct of an auction, thirty business days
from a reportable change is a reasonable period of time. Applicants are
reminded that they consent to be audited in the certification section of
the FCC Form 175 (see certification item number 6).

Applicants are reminded that all information required in connection with
applications to participate in spectrum auctions is necessary to
determine the applicants' qualifications, and as such will be available
for public inspection. Required proprietary information may be redacted,
or confidentiality may be requested, following the procedures set forth
in 47 C.F.R. § 0.459. Such requests must be submitted by electronic mail
to the attention of Margaret Wiener, Chief, Auctions and Spectrum Access
Division, at the following address:
[auction52@fcc.gov](mailto:auction44@fcc.gov), in which case the
applicant must indicate in Exhibit E that it has filed a confidentiality
request. Because the required information bears on applicants'
qualifications, the FCC envisions that confidentiality requests will not
be routinely granted.

The electronic mail summarizing the changes must include a subject or
caption referring to Auction No. 52. The Bureau requests that parties
format any attachments to electronic mail as Adobe^®^ Acrobat^®^ (pdf)
or Microsoft^®^ Word documents.

**A separate copy of the letter should be faxed to the attention of
Kathryn Garland at 717-338-2850.**

# Attachment E

AUCTION-SPECIFIC INSTRUCTIONS FOR

FCC REMITTANCE ADVICE (FCC FORM 159-February 2003 Edition)

## Upfront Payments

The following information supplements the standard instructions for FCC
Form 159 (Revised 2/03), and is provided to help ensure correct
completion of FCC Form 159 for upfront payments for Auction No. 52.
Applicants need to complete FCC Form 159 carefully, since:

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

```{=html}
<!-- -->
```
-   **Lack of consistency between information set forth in FCC Form 159
    (Revised 2/03), 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 FCC

Form 175 Short Form Application are described below:

Block

Number Required Information

1.  LOCKBOX \# - Enter "358430"

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 2/03).

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).

12. Payer TIN -- Enter the payer's nine-digit Taxpayer Identification
    Number (TIN).

> 24A Payment Type Code - Enter "A52U"
>
> 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 "52" (indicating Auction No. 52).

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
    22 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

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

# ATTACHMENT F

SUMMARY LISTING OF COMMISSION AND BUREAU DOCUMENTS

ADDRESSING APPLICATION OF THE ANTI‑COLLUSION RULE

## Commission Decisions:

*Second Report and Order* in PP Docket No. 93‑253, FCC 94‑61, 9 FCC Rcd.
2348, 2386‑2388 (1994), paragraphs 221‑226.

*Fifth Report and Order in* PP Docket No. 93‑253, FCC 94‑178, 9 FCC Rcd.
5532, 5570‑5571 (1994), paragraphs 91‑92.

*Fourth Memorandum Opinion and Order* in PP Docket No. 93‑253, FCC
94‑264, 9 FCC Rcd. 6858, 6866‑6869 (1994), paragraphs 47‑60.

*Second Memorandum Opinion and Order* in PP Docket No. 93‑253, FCC
94‑215, 9 FCC Rcd. 7245, 7253‑7255 (1994), paragraphs 48‑55.

*Memorandum Opinion and Order* in PP Docket No. 93‑253, FCC 94‑295, 9
FCC Rcd. 7684, 7687‑7689 (1994), paragraphs 8‑12.

In re Commercial Realty St. Pete, *Notice of Apparent Liability for
Forfeiture,* 10 FCC Rcd. 4277 (1995), In re Commercial Realty St. Pete,
*Memorandum Opinion and Order,* 11 FCC Rcd. 15,374 (1996).

In re Applications of Mercury PCS II, LLC, *Notice of Apparent Liability
for Forfeiture,* 12 FCC Rcd. 17,970 (1997); Application of Mercury PCS
II, L.P. for Facilities in the Broadband PCS D, E and F Blocks,
*Memorandum Opinion and Order*, 13 FCC Rcd. 23,755 (1998).

Amendment of Part 1 of the Commission's Rules --- Competitive Bidding
Procedures, Allocation of Spectrum Below 5 GHz Transferred from Federal
Government Use, 4660‑4685 MHz, WT Docket No. 97‑82, ET Docket No. 94‑32,
FCC 97‑413, *Third Report and Order and Second Further Notice of
Proposed Rule Making,* 13 FCC Rcd. 374, 463‑469 (1997), paragraphs
155-­166.

In re Application of US West Communications, Inc., *Notice of Apparent
Liability for Forfeiture,*13 FCC Rcd 8286 (1998); Notice of Apparent
Liability for Forfeiture of US West Communications, Inc., *Order*, FCC
99-90 (May 7, 1999).

In re Application of Western PCS BTA I Corporation, *Notice of Apparent
Liability for Forfeiture, FCC* 98‑42 (March 16, 1998); Notice of
Apparent Liability for Forfeiture of Western PCS BTA 1 Corporation,
*Memorandum Opinion and Orde*r, 14 FCC Rcd 21571, 21577-78, ¶ 20 (1999).

Amendment of Part 1 of the Commission's Rules --- Competitive Bidding
Procedures, *Seventh Report and Order*, 16 FCC Rcd 17546 (2001).

## Wireless Telecommunications Bureau Decisions:

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, *Order,* 11 FCC Rcd. 9655
(Wireless Tel. Bur. 1995).

In re Applications of GWI PCS, Inc. For Authority to Construct and
Operate Broadband PCS Systems Operating on Frequency Block C,
*Memorandum Opinion and Order,* 12 FCC Rcd. 6441 (Wireless Tel. Bur.
1997).

In re Applications of Mercury PCS II, LLC, For Facilities in the
Broadband Personal Communications Services in the D, E, and F Blocks,
*Memorandum Opinion and Order on Reconsideration,* 12 FCC Rcd. 18,093
(Wireless Tel. Bur. 1997).

Applications of High Plains Wireless, L.P., For Authority to Construct
and Operate Broadband PCS Systems on Frequency Blocks D, E, and F,
*Memorandum Opinion and Order,* 12 FCC Rcd. 19,627 (Wireless Tel. Bur.
1997).

Applications of Mercury PCS II, LLC, For Authority to Construct and
Operate Broadband PCS Systems on Frequency Blocks D, E, and F,
*Memorandum Opinion and Order,* 13 FCC Rcd. 5756 (Wireless Tel. Bur.
1997).

### Public Notices:

Wireless Telecommunications Bureau Clarifies Spectrum Auction
Anti‑Collusion Rules, *Public Notice,* 11 FCC Rcd. 9645 (1995).

FCC Staff Clarifies Application of Anti‑Collusion Rule to Broadband PCS
'C' Block Reauction, *Public Notice,* 11 FCC Rcd. 7031 (1996).

Wireless Telecommunications Bureau Provides Guidance on the
Anti‑Collusion Rule for D, E and F Block Bidders, *Public* *Notice,* 11
FCC Rcd. 10,134 (1996).

Wireless Telecommunications Bureau Responds to Questions About the Local
Multipoint Distribution Service Auction, *Public Notice*, DA 98-37 (rel.
January 9, 1998).

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

*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, 1996).

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

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

*Letter to Jonathan D. Blake and Robert J. Rini from Kathleen O'Brien
Ham, Chief, Auctions Division, Wireless Telecommunications Bureau,* DA
95‑2404 (released November 28, 1995).

*Letter to Mark Grady from Kathleen O'Brien Ham, Chief, Auctions
Division, Wireless Telecommunications Bureau,* 11 FCC Rcd. 10,895
(1996).

*Letter to David L. Nace from Kathleen O'Brien Ham, Chief, Auctions
Division, Wireless Telecommunications Bureau,* 11 FCC Rcd. 11,363
(1996).

*Letter to Elliott J. Greenwald from Christopher J. Wright, General
Counsel, Federal Communications Commission* (released April 6, 1998).

*Letter to Robert Pettit, Wiley, Rein & Fielding from Margaret W.
Wiener, Chief, Auctions and Industry Analysis Division, Wireless
Telecommunications Bureau*, DA 00-2905 (released December 26, 2000).

## Enforcement Bureau Decisions:

In re Application of Star Wireless, LLC for C Block Facilities in the
710-716 and 740-746 MHz Bands, *Notice of Apparent Liability for
Forfeiture*, DA 03-2722 (released August 27, 2003) (recon. pending).

In re Application of Northeast Communications of Wisconsin, Inc. for C
Block Facilities in the 710-716 and 740-746 MHz Bands, *Notice of
Apparent Liability for Forfeiture*, DA 03-2723 (released August 27,
2003) (recon. pending).

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

*U.S. v. Omnipoint Corp.,* Proposed Final Judgements and Competitive
Impact Statements, Department of Justice, 63 FR 65,228 (November 25,
1998).

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

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

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

Complaint, *U.S. v. 21st Century Bidding Corp., No.* 1:98CV02752 (D.D.C.
November 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]{.underline}

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 contractor, Qualex International at (202)
863-2893.

[^1]: *See* Policies and Rules for the Direct Broadcast Satellite
    Service, *Report and Order*, 17 FCC Rcd 11331 (2002) ("*Part 100
    R&O*"); Revision of Rules and Policies for the Direct Broadcast
    Satellite Service, *Report and Order*, 11 FCC Rcd 9712 (1995) ("*DBS
    R&O*").

[^2]: Balanced Budget Act of 1997, Pub. L. No. 105-33, 111 Stat. 251, §
    3002(a) (1997) (codified at 47 U.S.C. § 309(j)(4)(F)) ("Balanced
    Budget Act"). The Commission's authority to establish a reserve
    price or minimum opening bid is set forth in 47 C.F.R. § 1.2104(c)
    and (d).

[^3]: Auction of Direct Broadcast Satellite Service Licenses Scheduled
    for August 6, 2003; Comment Sought on Reserve Prices or Minimum
    Opening Bids and Other Auction Procedures, Public Notice, FCC 03-40
    (rel. March 3, 2003), 68 Fed. Reg. 12906 ("*Auction No. 52 Comment
    Public Notice*"). In connection with Auction No. 52, the Commission
    sought comment on two issues that were more appropriate for a
    Commission-level (rather than Bureau-level) decision, the
    auctionability of DBS licenses and eligibility for the available DBS
    licenses. In the interests of administrative efficiency, the
    Commission also sought comment on those auction procedures that the
    Bureau usually handles on delegated authority. *See* Amendment of
    Part 1 of the Commission's Rules ---Competitive Bidding Procedures,
    Allocation of Spectrum Below 5 GHz Transferred from Federal
    Government Use, 4660-4685 MHz, *Third Report and Order and Second
    Further Notice of Proposed Rule Making*, 13 FCC Rcd 374, 448, ¶ 125
    (1997) ("*Part 1 Third Report and Order*"); 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, ¶ 16 (1997).

[^4]: Comments were filed on March 17, 2003, by Northpoint Technology,
    Ltd. and Broadwave USA, Inc., and on March 24, 2003, by R/L DBS
    Company, LLC ("Rainbow DBS"), EchoStar Satellite Corporation
    ("EchoStar"), and PanAmSat Corporation. Reply Comments were filed on
    March 31, 2003, by Rainbow DBS and EchoStar. None of these Comments
    or Reply Comments relate to the procedural issues addressed herein,
    but relate instead to the issues of auctionability and eligibility
    raised by the Commission. Numerous *ex parte* filings were also
    made, none of which are relevant to the procedural issues addressed
    herein. For a complete list of these *ex parte* filings, see Auction
    of Direct Broadcast Satellite Licenses, *Order*, FCC 04-8 (rel.
    January 15, 2004) ("*DBS Auction Order*").

[^5]: *See* Inquiry into the Development of Regulatory Policy in Regard
    to Direct Broadcast Satellites for the Period Following the 1983
    Regional Administrative Radio Conference, *Report and Order,* 90
    FCC2d 676 (1982*)*, *recon. denied*, 53 RR2d 1637 (1983).

[^6]: Applications of CBS, Inc., Direct Broadcasting Satellite
    Corporation, Focus Broadcast Satellite Company, Graphic Scanning
    Corporation, RCA American Communications, Inc., United States
    Satellite Broadcasting Company, Inc., Video Satellite Systems, Inc.,
    Western Union Telegraph Company for Authority to Establish Interim
    Direct Broadcast Satellite Systems, *Order,* 92 FCC2d 64 (1982);
    *see also* Processing Procedures Regarding the Direct Broadcast
    Satellite Service, *Order,* 95 FCC Rcd 250 (1983).

[^7]: *See DBS R&O,* 11 FCC Rcd 9712 (1995).

[^8]: The Commission auctioned construction permits for 28 channels at
    the 110 W.L. orbit location and 24 channels at the 148 W.L. orbit
    location.

[^9]: Amendment of Parts 1, 21, 22, 24, 25, 26, 27, 73, 74, 80, 90, 95,
    100, and 101 of the Commission's Rules --- Competitive Bidding,
    *Order*, 17 FCC Rcd 6534 (2002) (modified by errata, 17 FCC Rcd
    11146 (2002)).

[^10]: *DBS Part 100 R&O*, 17 FCC Rcd 11331 (2002). The competitive
    bidding rules applicable to DBS are now set forth at 47 C.F.R. §§
    1.2101-1.2113 and 25.148(d) & (e).

[^11]: These auctions were conducted in 1996. *See supra* note 8.

[^12]: *DBS Auction* *Order*, FCC 04-8 (rel. January 15, 2004).

[^13]: *See id*. at ¶¶ 26-27.

[^14]: EchoStar was authorized to use channels 1, 3, and 5 at the 157°
    W.L. orbit location. *See* Echostar Satellite Corporation, For
    Assignment of Direct Broadcast Satellite Orbital Position and
    Channels, *Order,* 18 FCC Rcd 9396 (2003). On December 10, 2003,
    EchoStar was granted special temporary authority to operate on
    channels 1, 7, and 11 at the 157° W.L. orbit location rather than on
    its assigned channels of 1, 3, and 5 for a period of 60 days
    commencing December 17, 2003, subject to certain conditions. *See*
    Public Notice, Policy Branch Information, Report No. SAT-00181, DA
    03-3942 (December 12, 2003). On December 19, 2003, EchoStar filed an
    application seeking to modify its authorization in order to use
    channels 1, 7, and 11 at the 157° W.L. orbit location instead of
    channels 1, 3, and 5. This application is currently pending. *See*
    Public Notice, Policy Branch, Satellite Space Applications Accepted
    for Filing, Report No. SAT-00187 (January 15, 2004). *See also*
    EchoStar Satellite LLC, SAT-MOD-20031219-00372 (filed December 19,
    2003).

[^15]: Amendment of Part 1 of the Commission's Rules --- Competitive
    Bidding Procedures, *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) (modified by Erratum,
    DA 00-2475 (rel. Nov. 3, 2000)) ("*Part 1 Fifth Report and Order*")
    (recons. pending). Other decisions regarding the Commission's
    competitive bidding procedures include, but are not limited to, the
    following: Amendment of Part 1 of the Commission's Rules ---
    Competitive Bidding Procedures, *Seventh Report and Order*, 16 FCC
    Rcd 17546 (2001) ("*Part 1 Seventh Report and Order*") (amending the
    anti-collusion rule, which is codified at 47 C.F.R. § 1.2105(c));
    Amendment of Part 1 of the Commission's Rules --- Competitive
    Bidding Procedures, *Eighth Report and Order*, 17 FCC Rcd 2962
    (2002) (amending Section 1.2110 of the Commission's rules); and
    Amendment of Part 1 of the Commission's Rules --- Competitive
    Bidding Procedures, *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) ("*Order on Reconsideration of
    the Part 1 Fifth Report and Order*") (recons. pending) (further
    amending Section 1.2110 to exempt the gross revenues of the
    affiliates of a rural telephone cooperative's officers and directors
    from attribution to the applicant and adopting other modifications
    to the competitive bidding rules).

[^16]: *Part 100 R&O*, 17 FCC Rcd 11331 (2002); ITU Radio Regulations,
    Appendices 30 and 30A. *See also* 47 C.F.R. Part 25.

[^17]: 47 C.F.R. § 1.2105(c)(1); 47 C.F.R. § 1.2105(a)(2)(viii). *See
    also* *Part 1 Seventh Report and Order,* 16 FCC Rcd 17546 (2001);
    *Part 1 Fifth Report and Order,* 15 FCC Rcd at 15297-98, ¶¶ 7-8.

[^18]: 47 C.F.R. § 1.2105(c)(1).

[^19]: 47 C.F.R. § 1.2105(c)(7)(i).

[^20]: *See* In re 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).

[^21]: *See id*. at 11978.

[^22]: 47 C.F.R. § 1.2105(c)(2) & (3).

[^23]: 47 C.F.R. § 1.2105(c).

[^24]: *See* Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules, *Public Notice*, 11 FCC Rcd 9645
    (1995).

[^25]: 47 C.F.R. § 1.65.

[^26]: 47 C.F.R. § 1.2105(c)(6); *see also Part 1* *Seventh Report and
    Order*, 16 FCC Rcd at 17555, ¶ 17.

[^27]: 47 C.F.R. § 1.2107(d).

[^28]: *See* 47 C.F.R. § 1.2109(d).

[^29]: *Id.*

[^30]: Amendment of Parts 2 and 25 of the Commission\'s Rules to Permit
    Operation of NGSO FSS Systems Co-Frequency with GSO and Terrestrial
    Systems in the Ku-Band Frequency Range; Amendment of the
    Commission\'s Rules to Authorize Subsidiary Terrestrial Use of the
    12.2-12.7 GHz Band by Direct Broadcast Satellite Licensees and Their
    Affiliates; and Applications of Broadwave USA, PDC Broadband
    Corporation, and Satellite Receivers, Ltd. to Provide A Fixed
    Service in the 12.2-12.7 GHz Band, *First Report and Order and
    Further Notice of Proposed Rule Making*, 16 FCC Rcd 4096 (2000).

[^31]: Amendment of Parts 2 and 25 of the Commission\'s Rules to Permit
    Operation of NGSO FSS Systems Co-Frequency with GSO and Terrestrial
    Systems in the Ku-Band Frequency Range; Amendment of the
    Commission\'s Rules to Authorize Subsidiary Terrestrial Use of the
    12.2-12.7 GHz Band by Direct Broadcast Satellite Licensees and Their
    Affiliates; and Applications of Broadwave USA, PDC Broadband
    Corporation, and Satellite Receivers, Ltd. to Provide A Fixed
    Service in the 12.2-12.7 GHz Band, *Memorandum Opinion and Order and
    Second Report and Order*, 17 FCC Rcd 9614 ("*MVDDS Second R&O"*).

[^32]: Multichannel Video Distribution and Data Service Spectrum Auction
    Closes; Winning Bidders Announced, Public Notice, DA 04-215 (rel.
    February 2, 2004).

[^33]: 47 C.F.R. § 25.114(c)(23); 47 C.F.R. § 25.111(c).

[^34]: 47 C.F.R. §§ 1.1301-1.1319.

[^35]: 47 C.F.R. § 1.2105 requires the disclosure on the short-form of
    the applicant's ownership information as set forth in 47 C.F.R. §
    1.2112. Note that both of these sections were revised in the *Part 1
    Fifth Report and Order*. *See also* *Order on Reconsideration of the
    Part 1 Fifth Report and Order,* 18 FCC Rcd 10180 (2003).

[^36]: 47 C.F.R. §§ 1.2105(a)(2)(viii), (c)(1).

[^37]: 47 C.F.R*.* § 1.2105(a)(2)(ix).

[^38]: *See* *supra* Section I.B.2.

[^39]: 47 C.F.R. § 1.2105(c)(4)(i), (ii).

[^40]: 47 C.F.R. § 1.2105(a)(2)(x); Amendment of Part 1 of the
    Commission's Rule --- Competitive Bidding Procedures, *Order on
    Reconsideration of the Third Report and Order, Fifth Report and
    Order, and Fourth Further Notice of Proposed Rule Making,* 15 FCC
    Rcd at 15317, ¶ 42 ("*Order on Reconsideration of the Part 1 Third
    Report and Order")*.

[^41]: 47 C.F.R. § 1.2105(a)(2)(xi); *Order on Reconsideration of the
    Part 1 Third Report and Order,* 15 FCC Rcd at 15317, n.142.

[^42]: 47 C.F.R. § 1.2106(a).

[^43]: 47 C.F.R. § 1.2105(a).

[^44]: 47 C.F.R. § 1.2105.

[^45]: Letter from Margaret W. Wiener, Chief, Auctions and Industry
    Analysis Division, Wireless Telecommunications Bureau, to Patrick
    Shannon, Esq., Counsel for Lynch 3G Communications Corporation, DA
    03-1944, dated June 13, 2003.

[^46]: 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, 5697-5698, ¶ 16 (1997)
    ("*Part 1 Order"*).

[^47]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15316-17, ¶¶
    40-42; 47 C.F.R. § 1.2106(a); *see* 47 C.F.R. §§1.2105(a)(2)(xi).

[^48]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15316-17, ¶¶
    40-42.

[^49]: *Auction No. 52 Comment Public Notice* at 5.

[^50]: *Id*.

[^51]: *See supra* Section I.A.2., "Licenses to Be Auctioned."

[^52]: *Auction No. 52 Comment Public Notice* at 5, n.21.

[^53]: *Id*. at 5.

[^54]: *Id*.

[^55]: *Id*. at 6.

[^56]: *Id*.

[^57]: As explained further in Section IV.B.4., "High Bids," in the
    event of identical high bids on a license in a given round (*i.e.*,
    tied bids), we select a high bid from among the tied bids. Thus,
    identical high bids on a license result in one new high bid. For
    purposes of changing stages, absent new high bids on other licenses,
    identical high bids on a license meet the requirement of only one
    new high bid.

[^58]: When monitoring activity for determining when to change stages,
    we may consider the percentage of bidding units of the licenses
    receiving new high bids, excluding any FCC-held licenses.

[^59]: *Auction No. 52 Comment Public Notice* at 7.

[^60]: *Id*. at 11.

[^61]: *Id.*

[^62]: *Id*. at 7*.*

[^63]: *See* Balanced Budget Act, section 3002(a), 47 U.S.C. §
    309(j)(4)(F).

[^64]: *See* *Part 1 Third Report and Order*, 13 FCC Rcd 374, 455-456 ¶
    141 (1997)*.*

[^65]: *Id*.

[^66]: *Id*.

[^67]: *Auction No. 52 Comment Public Notice* at 8-9.

[^68]: *Id*. at 9.

[^69]: *See supra* Section I.A.2., "Licenses to Be Auctioned."

[^70]: *Auction No. 52 Comment Public Notice* at 8, n.27.

[^71]: *Id*. at 9-10.

[^72]: Bidders must have sufficient eligibility to place a bid on the
    particular license. *See* *supra* Section III.D.3 "Amount of Upfront
    Payment."

[^73]: *See* *infra* Section IV.B.6 "Bid Removal and Bid Withdrawal."

[^74]: *See supra* Section IV.A.2-5.

[^75]: *Auction No. 52 Comment Public Notice* at 10.

[^76]: A description of the L'Ecuyer algorithms can be found in
    L'Ecuyer, P. (1999) "Good Parameters and Implementations for
    Combined Multiple Recursive Random Number Generators" *Operations
    Research* 47 (1), pp.159-164. A longer version of this paper and the
    C code for the algorithms can be found on the author's website at
    http://www.iro.umontreal.ca/\~lecuyer/papers.html.

[^77]: Bidders must have sufficient eligibility to place a bid on the
    particular license. *See infra* Section III.D.3 "Amount of Upfront
    Payment."

[^78]: *Auction No. 52 Comment Public Notice* at 10-11.

[^79]: The Bureau retains the discretion to lower the minimum acceptable
    bid on such licenses in the next round or in later rounds.

[^80]: 47 C.F.R. §§ 1.2104(g), 1.2109.

[^81]: The payment will equal the lower of: (1) the difference between
    the net withdrawn bid and the subsequent net winning bid; or (2) the
    difference between the gross withdrawn bid and the subsequent gross
    winning bid. *See* 47 C.F.R. § 1.2104(g)(1).

[^82]: See following paragraph for discussion of interim bid withdrawal
    payments.

[^83]: *See* *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15302, ¶ 15;
    47 C.F.R. § 1.2104(g)(1).

[^84]: *See Part 1 Fifth Report and Order*, 15 FCC Rcd at 15302, ¶ 15.

[^85]: 47 C.F.R. § 1.2107(b).

[^86]: 47 C.F.R. § 1.2109(b) & (c).

[^87]: 47 C.F.R. § 1.2109(d).