**FCC 06-71**

**Released: May 19, 2006**

**AUCTION OF ADVANCED WIRELESS SERVICES LICENSES RESCHEDULED FOR AUGUST
9, 2006**

**Revised Schedule, Filing Requirements and Supplemental Procedures for
Auction No. 66**

**AU Docket No. 06-30**

Report No. AUC-06-66-C (Auction No. 66)

By the Commission: Commissioner Adelstein concurring and issuing a
statement.

# INTRODUCTION

1.  By this Public Notice, the Federal Communications Commission
    ("Commission") announces the revised schedule, filing requirements,
    and supplemental procedures for the upcoming auction ("Auction No.
    66") of Advanced Wireless Services licenses in the 1710-1755 MHz and
    2110-2155 MHz bands ("AWS-1") to provide applicants additional time
    for preparation and planning. With the exception of the changes set
    forth in this Public Notice, the Commission's procedures, terms and
    conditions previously announced in the *Auction No. 66 Procedures
    Public Notice* will apply in Auction No. 66.[^1]

# rescheduled Auction Start Date AND pre-auction dates

## Auction Date

2.  Bidding in Auction No. 66 will begin on Wednesday, August 9, 2006.
    The initial schedule for bidding will be announced by public notice
    at least one week before the start of the auction.

## Pre-Auction Dates and Deadlines

3.  In light of the new Auction Date, the Commission extends the
    deadline for participants to file a short-form application (FCC
    Form 175) to participate in the auction, and revises other
    pre-auction dates and deadlines as follows.

Short-Form Application (FCC Form 175) Filing Window Opens June 5, 2006;
12:00 p.m. ET

Short-Form Application (FCC Form 175) Filing Window Deadline June 19,
2006; 6:00 p.m. ET

Upfront Payments (via wire transfer) July 17, 2006; 6:00 p.m. ET

Mock Auction August 7, 2006

Auction Begins August 9, 2006

## Requirements for Participation

4.  Those wishing to participate in Auction No. 66 must:

-   Submit a short-form application (FCC Form 175) electronically prior
    to 6:00 p.m. Eastern Time (ET), June 19, 2006, following the
    electronic filing procedures set forth in Attachment D to the
    Auction No. 66 Procedures Public Notice and this Public Notice.

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-   Submit a sufficient upfront payment and an FCC Remittance Advice
    Form (FCC Form 159) before 6:00 p.m. ET, July 17, 2006.

-   Comply with all provisions outlined in the Procedures Public Notice,
    this Public Notice and applicable Commission rules.

# short-form application (FCC Form 175) filing requirements

5.  Except as set forth in this Public Notice, the short-form
    application (FCC Form 175) requirements previously announced in the
    Auction No. 66 Procedures Public Notice will apply in Auction No.
    66.[^2]

## Effect of New Short-Form Application Filing Deadline.

6.  Any party, whether it wishes to claim designated entity benefits or
    not, may submit a short-form application to participate in Auction
    No. 66 by the June 19, 2006, deadline, regardless of whether that
    party previously submitted an application pursuant to the prior
    deadline, once the short-form application filing window opens on
    June 5, 2006.

7.  Any party that previously submitted a short-form application
    pursuant to the prior deadline may use the application previously
    submitted, subject to compliance with newly effective Commission
    rules; may change any or all of the information in a previously
    submitted short-form application; may withdraw a previously
    submitted short-form application; and may create and submit a new
    short-form application in place of a withdrawn application.
    Applications may be withdrawn by using the "Withdraw Application"
    function of the Auction Application Manager. This function withdraws
    the application and deletes it from the database.

8.  All applicants, particularly those that choose to retain their
    current applications on file, are reminded to review all information
    contained in their applications, including all information that may
    have been automatically entered, to confirm that it is complete and
    accurate as of the new deadline for filing the short-form
    application.[^3] If a party that previously submitted a short-form
    application pursuant to the prior deadline chooses to retain its
    current application on file and determines that it is still complete
    and will be accurate as of the new filing deadline for short-form
    applications, the party does not need to resubmit the application.

9.  Since the Commission's collusion prohibitions set forth in Section
    1.2104(c) (the "anti-collusion rule") are not triggered until "after
    the short-form application filing deadline,"[^4] the release of this
    Public Notice extending this deadline has the effect of lifting the
    prohibitions until the short-form filing period expires on June
    19, 2006. (These prohibitions had been in effect since the
    expiration of the prior short-form filing application period on May
    10, 2006.) After the new short-form filing deadline on June 19,
    2006, the prohibitions of the anti-collusion rule will again apply.
    Applicants are urged to review the Commission's prior guidance on
    the anti-collusion rule in the context of Auction No. 66.[^5]
    Although the prohibitions of the Commission's anti-collusion rule
    are not triggered until the new short-form filing deadline,
    applicants have continuing obligations to avoid anti-competitive
    behavior, including communications about auction plans or
    applications that might have anti-competitive effects. As noted in
    the *Auction No. 66 Procedures Public Notice*, regardless of
    compliance with the Commission's rules, applicants remain subject to
    the antitrust laws, which are designed to prevent anticompetitive
    behavior in the marketplace.[^6]

## Short-Form Application Certification of Compliance with Commission Rules

10. Applicants that submit short-form applications to participate in
    Auction No. 66 by the June 19, 2006, deadline are reminded that
    their application must be in compliance with Commission rules as of
    that date, regardless of whether the short-form application was
    previously submitted on an earlier date and regardless of whether
    there has been any change in circumstances between the date of
    submission and the short-form application deadline.

11. Applicants are reminded that they must comply with the various
    certifications required in the short-form application pursuant to
    Commission rules. Applicants are required to be in compliance with
    the certifications, made by a person with authority to bind the
    applicant, as of the deadline for filing the short-form
    applications. Applicants must assure the accuracy of these
    certifications as of the deadline.[^7] For example, parties
    submitting short-form applications certify that they are not in
    default on any Commission license and not delinquent on any non-tax
    debt owed to any Federal agency as of the deadline for filing the
    short-form application. Likewise, parties submitting a short-form
    application are certifying compliance with the foreign ownership
    provisions of Section 310 of the Communications Act of 1934, as
    amended, or that a request for waiver or relief from the
    requirements of Section 310 is pending as of the deadline for filing
    the short-form application.[^8]

12. Applicants are strongly cautioned to avoid any statements or
    disclosures that may violate the Commission's anti-collusion rule,
    particularly in light of the Commission's procedures regarding the
    availability of certain information in Auction No. 66. Applicants
    should carefully review the *Auction No. 66 Procedures Public
    Notice* with respect to both the prohibition of collusion and the
    information available to bidders before and during the auction.[^9]
    For example, the Commission may not disclose information regarding
    applicants' license selection until after the auction closes.
    However, the Commission will disclose other portions of short-form
    applications, through its on-line database and public notices.[^10]
    Accordingly, applicants should avoid including any information in
    their short-form applications that might convey information
    regarding their license selection. For example, applicants should
    not use names that refer to licenses selected, refer to bidding
    agreements by reference to relevant licenses, or include information
    in attachments that may disclose the licenses that they have
    selected. If an applicant is found to have violated the Commission's
    rules or antitrust laws in connection with its participation in the
    competitive bidding process, the applicant may be subject to various
    sanctions, including forfeiture of its upfront payment, down payment
    or full bid amount and prohibition from participating in future
    auctions.[^11]

## Designated Entity Applicant Certification of Compliance with Rules Effective as of Short-Form Filing Window Deadline

13. The Commission adopted new rules governing eligibility for
    designated entity benefits in the *Designated Entity Second Report
    and Order*.[^12] In the *Designated Entity Second Report and Order*,
    the Commission stated that applicants seeking to participate in
    Auction No. 66 as designated entities would be required to amend
    their applications for that auction on or after the effective date
    of the rule changes with a statement declaring, under penalty of
    perjury, that the applicant is qualified as a designated entity
    pursuant to section 1.2110 of the Commission's rules effective as of
    the date of the statement.[^13] The Commission adopted and released
    the new rules on April 25, 2006, and published the new rules in the
    Federal Register on May 4, 2006.[^14] The new rules will become
    effective on June 3, 2006.[^15]

14. The Commission's rules require, and the short-form application
    provides, that any applicant applying as a designated entity certify
    that the applicant is qualified as a designated entity under the
    Commission's rules.[^16] Pursuant to the new schedule for Auction
    No. 66, applicants to participate in Auction No. 66 must file a
    short-form application by June 19, 2006, which is after the
    effective date of the Commission's new rules governing eligibility
    for designated entity benefits. Applicants may press a button to
    submit a short-form application at any time after the window for
    filing opens and before the new deadline for short-form filing.
    However, applicants may withdraw, or effectively delete, any
    application that has been submitted until that deadline occurs. It
    is no longer necessary for entities applying as designated entities
    to amend their applications as described in the *Designated Entity
    Second Report and Order*.[^17] The certification made as part of the
    short-form application will constitute a certification by any
    applicant applying as a designated entity that the applicant will be
    qualified as a designated entity pursuant to the Commission's rules
    as of the June 19, 2006, deadline for filing the short-form
    application, regardless of the date on which the applicant submits
    the application. Applicants that previously certified their
    designated entity eligibility must revise their application and
    resubmit or withdraw by the filing deadline of June 19, 2005 if they
    will not be qualified pursuant to the Commission's rules as of that
    deadline.

## Additional Information Required in Short-Form Application from Designated Entity Applicants Pursuant to Newly Effective Rules

15. The Commission's new rules regarding applicants seeking eligibility
    for designated entity benefits requires the disclosure of
    information not previously required on a short-form application.
    Applicants must submit all information required to be disclosed on
    the applicant's application to participate in the auction pursuant
    to Commission rules in effect as of the deadline for submitting the
    short-form applications in order to qualify as a designated entity.
    Such information includes disclosures required pursuant to newly
    effective Section 1.2112 as adopted in the *Designated Entity Second
    Report and Order*:

-   A list of all parties with which the applicant has entered into
    arrangements for the lease or resale (including wholesale
    agreements) of any of the capacity of any of the applicant's
    spectrum.[^18]

-   A list, separately and in the aggregate, of the gross revenues of
    entities with which the applicant has an attributable material
    relationship, as defined in Section 1.2110(b)(3)(iv)(B).[^19]

**Failure to provide any additional information required under the
designated entity rules effective as of the deadline for filing a
short-form application may result in the applicant being ineligible to
qualify as a designated entity.**

16. An applicant may provide information not previously required on FCC
    Form 175 by including the information in an attachment to the
    application. Instructions for uploading an attachment to an
    application are provided in Attachment D to the *Auction No. 66
    Procedures Public Notice*.[^20] When uploading an attachment
    providing information required by the newly effective designated
    entity rules, applicants should identify the attachment type as
    "Other."

# information regarding Bidders' own round results

17. Applicants are reminded that Auction No. 66, may be conducted
    pursuant to procedures that limit the information available prior to
    and during the auction. If Auction No. 66 is conducted with limited
    information released prior to and during the auction,[^21] two types
    of reports will be available to bidders: (1) publicly-available
    information and (2) bidder-specific information available only to
    that bidder when logged in to the FCC Auction System.

18. The public information will be available on the FCC Auction System
    results page that will list for each license the following
    information, which will be current as of the conclusion of the most
    recently completed round: the provisionally winning bid amount, the
    minimum acceptable bid amount for the next round, the number of bids
    received in the most recently-completed round, and whether the
    license has a provisionally winning bid or is held by the FCC. This
    information will also be available in a downloadable file. The
    results page will also offer a list of FCC-held licenses (licenses
    without provisionally winning bids) in viewable and downloadable
    formats.

19. When a bidder is logged in to the FCC Auction System, it will have a
    selection of "My Bid Reports" available to it on the FCC Auction
    System's bidding page. Information in "My Bid Reports" allows only
    the respective bidder to view all of its actions in the current and
    previous rounds of the auction. Samples of the results page
    downloadable files were made available for the pre-auction seminar
    held April 24, 2006, and were posted to the web page for the
    seminar:
    <http://wireless.fcc.gov/auctions/default.htm?job=auction_seminar&id=66>
    (scroll down to the bottom of the page). Samples of the "My Bid
    Reports" files are now posted to the same location.

# Contacts

## Media Contact: 

For press inquiries: Chelsea Fallon (202) 418-7991

## Auctions and Spectrum Access Division: 

For legal questions: Scott Mackoul at (202) 418-0660

For general auction questions: Lisa Stover at (717) 338-2888

## Broadband Division: 

For legal and technical questions: David Hu or John Spencer at (202)
418-0200 

For licensing questions: Beth Fishel at (717) 338-2649

To request materials in accessible formats (Braille, large print,
electronic files, audio format) for people with disabilities, send an
e-mail to <fcc504@fcc.gov> or call the Consumer and Governmental Affairs
Bureau at (202) 418-0530 or (202) 418-0432 (TTY).

Action by the Commission on May 19, 2006.

\- FCC -

**CONCURRING STATEMENT OF**

**COMMISSIONER JONATHAN S. ADELSTEIN**

*Re: Auction Of Advanced Wireless Services Licenses Rescheduled For
August 9, 2006; Revised Schedule, Filing Requirements And Supplemental
Procedures For Auction No. 66; AU Docket No. 06-30*

It is disappointing that the Commission has allowed the designated
entity (DE) proceeding to affect the timing of the upcoming Advanced
Wireless Services (AWS) auction. I concur in this item because I am told
that a delay in the auction is necessary to allow parties more time to
make necessary preparations in response to the Commission's April 25,
2006, decision adopting various changes to the DE rules -- a decision
from which I largely dissented. Needless to say, this is not the outcome
I hoped for when I first advocated a single, simple, change to the DE
rules more than nine months ago.

I am disappointed that we are in this position because I made every
effort to conclude the DE proceeding well in advance of our June 29,
2006, auction date, a date to which I had steadfastly been committed. I
had tried to move this proceeding forward since August of last year when
the Commission first committed to consider a change to the rules to
restrict the ability of DEs who have a material relationship with the
nation's largest wireless carriers from having access to bidding credits
in future auctions. We could have and should have been done with the DE
proceeding months ago. In previous statements, I even expressed my
concern with the effect of the delay on both interested parties and our
own Commission staff in trying to conclude an unnecessarily expansive
review of the DE program sufficiently in advance of the June 29 AWS
auction date. But as I have said before, this timing has not been of my
choosing.

And, ultimately, the simple, and well supported, change to our rules to
close the loophole in our rules that allows large wireless companies to
invest in DEs was never adopted. We missed a real opportunity to shut
down what almost everyone recognizes has the potential for the largest
abuse of our DE program. And now it appears that the changes that the
Commission did adopt may actually do more harm than good to the DE
participation in the upcoming auction, notwithstanding this last-ditch
effort to cure this troubled proceeding.

[^1]: *See* Auction of Advanced Wireless Services Licenses Schedule for
    June 29, 2006, Notice and Filing Requirements, Minimum Opening Bids,
    Upfront Payments and Other Procedures for Auction No. 66, *Public
    Notice,* FCC 06-47 (rel. April 12, 2006) ("*Auction No. 66
    Procedures Public Notice*"). As noted in the *Auction No. 66
    Procedures Public Notice*, in January, the Commission adopted a
    Further Notice of Proposed Rule Making with respect to designated
    entity benefits and stated that any changes adopted in that
    proceeding would be applied to Auction No. 66. *See* *Auction No. 66
    Procedures Public Notice* at ¶ 67, Implementation of the Commercial
    Spectrum Enhancement Act and Modernization of the Commission's
    Competitive Bidding Rules and Procedures, WT Docket No. 05-211,
    *Further Notice of Proposed Rule Making*, 21 FCC Rcd 1753 (2006)
    ("*CSEA/Part 1 Designated Entity FNPRM*"). The Commission adopted
    new rules governing eligibility for designated entity benefits in
    the subsequent Second Report and Order. Implementation of the
    Commercial Spectrum Enhancement Act and Modernization of the
    Commission's Competitive Bidding Rules and Procedures, *Second
    Report and Order and Second Further Notice of Proposed Rule Making*,
    FCC 06-52 (rel. April 25, 2006) (71 Fed. Reg. 26,245, May 4, 2006)
    ("*Designated Entity Second Report and Order*"). As stated in the
    *Designated Entity Second Report and Order*, the new designated
    entity rules adopted therein will apply to Auction No. 66.
    *Designated Entity Second Report and Order* at ¶¶ 51-52.

[^2]: This Public Notice provides procedures pursuant to which parties
    may file applications in compliance with the Commission's new rules
    governing eligibility for designated entity benefits. *See*
    *Designated Entity Second Report and Order* at ¶ 52.

[^3]: As described in the *Auction No. 66 Procedures Public Notice*, an
    applicant's most current ownership information on file with the
    Commission, if in an electronic format compatible with the
    short-form application (FCC Form 175) (such as information submitted
    in an on-line FCC Form 602 or in an FCC Form 175 filed for a
    previous auction using ISAS) will automatically be entered into the
    applicant's short-form application when the applicant first creates
    the short-form application. *See Auction No. 66 Procedures Public
    Notice* at ¶ 75. Moreover, if an applicant makes any changes to
    ownership information in its FCC Form 602 after starting its
    short-form application for Auction No. 66, those ownership changes
    are not automatically carried over to the short-form application.
    The applicant would need to update the ownership information
    directly in the short-form application.

[^4]: *See* 47 C.F.R. § 1.2105(c)(1).

[^5]: *See Auction No. 66 Procedures Public Notice* at ¶¶ 15-23.

[^6]: *Auction No. 66 Procedures Public Notice* at ¶ 20.

[^7]: The Commission's rules expressly provide that any short-form-form
    application that does not contain all of the certifications required
    is unacceptable for filing and cannot be corrected subsequent to the
    applicable filing deadline. 47 C.F.R. § 1.2105(b)(1).

[^8]: 47 C.F.R. § 1.2105(a)(2)(v) and (vi).

[^9]: *Auction No. 66 Procedures Public Notice* at ¶¶ 15-23 and ¶¶
    140-159.

[^10]: *Auction No. 66 Procedures Public Notice* at ¶ 158.

[^11]: *See* 47 C.F.R. § 1.2109(d); *Auction No. 66 Procedures Public
    Notice* at ¶ 20.

[^12]: *See, generally, Designated Entity Second Report and Order*.

[^13]: *Designated Entity Second Report and Order* at ¶ 52.

[^14]: *Designated Entity Second Report and Order*, 71 Fed. Reg. 26,245,
    May 4, 2006.

[^15]: *Designated Entity Second Report an Order* at ¶ 103.

[^16]: 47 C.F.R. § 1.2105(a)(2)(iv).

[^17]: In the *Designated Entity Second Report and Order*, the
    Commission stated that applicants seeking to participate in Auction
    No. 66 as designated entities would be required to amend their
    applications for that auction on or after the effective date of the
    rule changes with a statement declaring, under penalty of perjury,
    that the applicant is qualified as a designated entity pursuant to
    section 1.2110 of the Commission's rules effective as of the date of
    the statement. *Designated Entity Second Report and Order* at ¶ 52.
    Applicants will be subject to the new rules in their initial
    application, given that the deadline for submitting short-form
    applications to participate in Auction No. 66 now falls after the
    effective date of the rule changes, and no subsequent amendments
    will be necessary.

[^18]: 47 C.F.R. § 1.2112(b)(1)(iii) (effective June 3, 2006).

[^19]: 47 C.F.R. § 1.2112(b)(1)(iv) (effective June 3, 2006). Note that
    certain otherwise attributable material relationships may not be
    attributable pursuant to the provisions of 47 C.F.R. §
    1.2110(b)(3)(iv)(C)(2) (effective June 3, 2006).

[^20]: *Auction No. 66 Procedures Public Notice*, Attachment D,
    Electronic Filing and Review of the Short-Form Application (FCC Form
    175), at D-13 (Attaching Additional Information).

[^21]: *See Auction No. 66 Procedures Public Notice* at ¶¶ 140-143.