**DA 04-2158**

**July 19, 2004**

**DIRECT BROADCAST SATELLITE SERVICE**

**LICENSES AUCTION CLOSES**

**Winning Bidders Announced**

Down Payments Due August 2, 2004

Final Payments Due August 16, 2004

FCC Form 312 and required exhibits Due August 18, 2004

*Thirty-Day Petition to Deny Period*

**Report No. AUC-04-52-I (Auction No. 52)**

On July 14, 2004, the Federal Communications Commission completed the
auction of three licenses to use the Direct Broadcast Satellite ("DBS")
service allocation in the 12.2-12.7 GHz band and Associated Feeder Links
in the 17.3-17.8 GHz band ("Auction No. 52"), raising (in net bids) a
total of \$12,200,000. In this auction, two winning bidders won a total
of three licenses.

This *Public Notice* provides detailed information concerning winning
bidders, down payments, final payments and/or refunds, FCC Form 312, and
licensing matters. Key information appears in the following attachments:

**Attachment A:** "Round Results, High Bids" lists winning bidders, and
both the gross and net high winning bid amounts.

> **Attachment B:** "Bidder Payment/Refund Report" lists down payments
> and final payments owed by winning bidders, if any.

A copy of this *Public Notice* will be sent via overnight mail to each
winning bidder.

## Down Payments

The Commission's rules require that within ten business days after the
release of this *Public Notice*, in this case before **6:00 p.m. ET on
August 2, 2004**, winning bidders in Auction No. 52 must have on deposit
with Mellon Bank in Pittsburgh, Pennsylvania, enough funds to cover down
payments on winning bids.[^1] A winning bidder's total deposit must be
twenty (20) percent of its net winning bid. If a winning bidder's
upfront payment is not sufficient to meet this requirement, the winning
bidder must deposit additional funds.[^2] In this case both winning
bidders' upfront payment amounts are sufficient to meet this
requirement.

## Final Payments

Winning bidders will be required to submit the balance of the net amount
of their winning bids by August 16, 2004,[^3] as set out in the "Refund
or Final Balance Due" column of Attachment B. Licenses will be granted
only after the full and timely payment of winning bids and any
applicable late fees, in accordance with Section 1.2109(a), and upon
completion of the long-form applications (FCC Form 312) review. [^4]

## Method of Payment for Final Payments

All payments must be in U.S. dollars and made in the form of a wire
transfer. No personal checks, credit card payments, or other forms of
payment will be accepted. All payments must be accompanied by a
completed FCC Remittance Advice Form (FCC Form 159).[^5] If applicable,
a partially completed copy of the FCC Form 159 will be sent to winning
bidders to facilitate submission of the correct final payment. **Please
note, however, that winning bidders are responsible for insuring
submission of the correct final payment and obtaining confirmation from
their financial institution that Mellon Bank has timely received their
final payment and deposited it in the proper account**.

Questions concerning the calculation and submission of down and final
payments, the FCC Form 159, and refunds should be directed to Gail
Glasser at (202) 418-0578.

**Wire transfers for final payments must be received by Mellon Bank no
later than 6:00 p.m. ET. on August 16, 2004** (or no later than 6:00
p.m. ET on August 30, 2004, along with the five percent late fee
required by Section 1.2109(a) of the Commission's rules).[^6] Applicants
should coordinate with their bankers ahead of time regarding their wire
transfers, and allow sufficient time for the wire transfer to be
**initiated and completed prior to the deadline**. To submit funds by
wire transfer, winning bidders will need the following information:

> ABA Routing Number: 043000261
>
> Receiving Bank: Mellon Pittsburgh
>
> BNF: FCC Account Number 911-6106
>
> OBI Field: (Skip one space between each information item) "AUCTIONPAY"
>
> FCC REGISTRATION NUMBER (FRN): (same as FCC Form 159, block 11 and/or
> 21)
>
> PAYMENT TYPE CODE: (same as FCC Form 159, block 24A: A52D)
>
> FCC CODE 1: (same as FCC Form 159, Block 28A: "52")
>
> PAYOR NAME: (same as FCC Form 159, Block 2)

LOCKBOX NO.: #358850

Payments must be preceded by the completed FCC Remittance Advice Form
(FCC Form 159). The applicant must fax, on the same business day that it
pays the balance due to Mellon Bank, a completed FCC Form 159 to Mellon
Bank at (412) 209-6045 at least one hour prior to placing the order for
the wire transfer. On the FCC Form 159, the applicant must use the same
FRN number used on its FCC Form 175.

> **D. Default and Disqualification Payments**

The Commission imposes payments on bidders that default on payments due
after an auction closes or those that are disqualified.[^7]

*Bid Default/Disqualification Payments.* If a high bidder defaults or is
disqualified after the close of the auction, the defaulting bidder will
be subject to the following payment obligations: 1) the difference
between the high bid and the amount of the winning bid the next time the
license is offered by the Commission, and 2) an additional payment equal
to three (3) percent of the subsequent winning bid or three (3) percent
of the defaulted bid, whichever is less.

If a winning bidder fails to remit the required down payment within ten
(10) business days after the Commission has released this *Public
Notice*, in this case by August 2, 2004, the bidder will be deemed to
have defaulted and it will be liable for a default payment as described
above. In such event, the Commission, at its discretion, may either
auction the license(s) to existing or new applicants, or offer it to the
other highest bidder at their final bid.[^8]

If a winning bidder fails to pay the balance of its winning bids in a
lump sum by August 16, 2004, it will be allowed to make payment within
ten (10) business days after the payment deadline provided that it also
pays a late fee equal to five (5) percent of the amount due.[^9] When a
winning bidder fails to pay the balance of its winning bid plus late fee
by August 30, 2004, it is considered to be in default on its license(s)
and subject to the applicable default payments.[^10]

Licenses will be awarded only after the full and timely payment of
winning bids and any applicable late fees,[^11] and upon completion of
the long-form application (FCC Form 312) review.[^12] A winning bidder
that is found unqualified to be a licensee, fails to remit the balance
of its winning bid in a timely manner, or defaults or is disqualified
for any reason after having made the required payments, will be deemed
to have defaulted and will be liable for the payment set forth in
Section 1.2104(g)(2).[^13] In such event, the Commission may either
auction the license to existing or new applicants or offer it to the
other highest bidder at their final bid.[^14]

Additionally, bidders that are found to have violated the antitrust laws
or the Commission's rules in connection with their participation in the
competitive bidding process may be subject, in addition to any other
applicable sanctions, to forfeiture of their upfront payment, down
payment, or full bid amount, and may be prohibited from participating in
future auctions.[^15]

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

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

## F. FCC Form 312  {#f.-fcc-form-312 .unnumbered}

**Deadline For Filing:** By **6:00 p.m. ET on August 18**, **2004**
winning bidders must submit a properly completed FCC Form 312[^16]
together with Schedule S[^17] and pay the appropriate application
fee,[^18] for each license for which they were the winning high
bidder.[^19] Applications may be filed either electronically or
manually, although the Commission encourages electronic filing. DBS
applicants must provide all information required under Part 25 of the
Commission's rules[^20] including the narrative information required in
Section 25.114(d) as revised in the *Third Space Station Reform
Order*.[^21]

***Where and How to File:*** The completed FCC Form 312 can be filed
electronically via the Commission's International Bureau Filing System
(IBFS).[^22] Users can access the electronic filing system *via* the
Internet from the International Bureau's Web Site at:

**http://svartifoss2.fcc.gov/prod/ib/forms**

Internet access to the IBFS online electronic forms filing system
requires, at a minimum:

-   166 MHz (*450 MHz or higher recommended*)

-   32 MB of RAM (*128 or higher recommended)*

-   56K modem

-   Netscape 4.0 or better, Microsoft Internet Explorer 4.0 or better

-   100 MB of available hard drive space

Detailed instructions for filing applications are available online on
the International Bureau's home page at
http://svartifoss2.fcc.gov/prod/ib/forms/getting_started.htm. For
technical assistance with electronic filing, call the International
Bureau Help Desk at (202) 418-2222.

Manual filers can obtain a copy of FCC Form 312, Schedule S, and filing
instructions by calling the Commission's Forms Distribution Center at
(800) 418-3676 (outside Washington, DC) or (202) 418-3676 (in the
Washington Area). Copies can also be obtained via the Internet at
<http://www.fcc.gov/formpage.html>.

**Failure to timely file FCC Form 312 or sign a manually-filed FCC Form
312 will result in default. Late-filed applications will not be accepted
without a showing of good cause.**[^23]

## G. Maintaining Accuracy of Information {#g.-maintaining-accuracy-of-information .unnumbered}

After the auction closes, applicants are required to make all changes by
filing FCC Form 312. As of this date, applicants are no longer required
to maintain accuracy and completeness of information furnished on their
FCC Form 175 and exhibits.

## H. Application Processing and License Grant  {#h.-application-processing-and-license-grant .unnumbered}

If the Commission determines that the application is acceptable for
filing, it will place the application on public notice. Interested
parties will have **thirty (30) days** to file petitions to deny from
the date of the public notice. [^24] An applicant may file an opposition
to any petition to deny within **ten (10) days** after the time for
filing petitions to deny has expired.[^25] The petitioner may file a
reply to such opposition within **five (5) days** after the time for
filing oppositions has expired.[^26]

*Frivolous Pleadings.* The Commission reminds parties to our proceedings
and their attorneys that the Commission intends to use its authority
fully to deter the filing of frivolous pleadings.[^27]

## I. Anti-collusion Rules {#i.-anti-collusion-rules .unnumbered}

To ensure the competitiveness of the auction process, the Commission's
rules prohibit applicants for any of the same geographic licenses from
communicating with each other during the auction about bids, bidding
strategies, or settlements. As explained more fully in the *Auction No.
52 Procedures Public Notice*, this prohibition began with the filing of
short-form applications and ends on the down payment due date, or August
2, 2004.[^28] The prohibition ends on the down payment due date whether
or not a high bidder must supplement its upfront payment to cover its
down payment. Applicants certified their compliance with Section
1.2105(c) when their FCC Form 175 short-form applications were signed.

## J. Return of SecurID Cards {#j.-return-of-securid-cards .unnumbered}

Bidders are encouraged to return their SecurID cards to the FCC by
**August 2, 2004** for recycling. The Commission will send bidders a
copy of this *Public Notice* and a pre-addressed, stamped envelope. All
bidders should use the envelope to return the cards now that the auction
is over. Please note that each SecurID card is tailored to a specific
auction, therefore, the cards issued for this auction will not work for
future auctions.

\* \* \* \* \*

**For further information, contact:**

+-------------------------------+--------------------------------------+
| News Media:                   | Lauren Patrich at 202-418-7944       |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Technical Support Hotline:    | Technical Support Personnel at       |
|                               |                                      |
|                               | 202-414-1250                         |
|                               |                                      |
|                               | or 202-414-1255 (text telephone      |
|                               | (TTY))                               |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Office of the Managing        | Gail Glasser at 202-418-0578         |
| Director                      |                                      |
|                               |                                      |
| Auctions Accounting Group     |                                      |
|                               |                                      |
| (Payment, FCC Form 159 and    |                                      |
| refund questions)             |                                      |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| International Bureau          | Selina Khan at (202) 418-7282 or     |
|                               | Chip Fleming at 202-418-1247         |
| (FCC Form 312, including      |                                      |
| Schedule S)                   |                                      |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Wireless Telecommunications   | Lisa Stover Project Manager at       |
| Bureau, Auctions and Spectrum | 717-338-2888                         |
| Access Division               |                                      |
| (Auction-related questions)   | Brian Carter, Special Counsel at     |
|                               | 202-418-0660                         |
+-------------------------------+--------------------------------------+

**- FCC -**

[^1]: 47 C.F.R. § 1.2107(b).

[^2]: *Id.*

[^3]: *See "*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," *Public Notice,* 19 FCC Rcd 2018 (2004) ("*Auction No.
    52 Procedures Public Notice"*); 47 C.F.R.§ 1.2109(a).

[^4]: 47 C.F.R. §§ 1.2107(c), 1.2109(a).

[^5]: Copies of the FCC Form 159 may be obtained by calling the
    Commission's Forms Distribution Center at 1-800-418-3676 (outside
    Washington, D.C.) or (202) 418-3676 (in the Washington D.C. area).
    Copies of the FCC Form 159 can also be obtained via the Internet
    (http://www.fcc.gov/formpage.html) or by calling the Commission's
    Fax-On-Demand at (202) 418-2830.

[^6]: 47 C.F.R. § 1.2109(a).

[^7]: 47 C.F.R. §§ 1.2104(g), 1.2109(c).

[^8]: 47 C.F.R. § 1.2109(b).

[^9]: 47 C.F.R. § 1.2109(a).

[^10]: *Id.*

[^11]: *Id.*

[^12]: 47 C.F.R. §§ 25.150 - 25.156 (applications will be granted if the
    Commission finds that the applicant is legally, technically and
    otherwise qualified).

[^13]: 47 C.F.R. §§ 1.2104(g)(2), 1.2109(c).

[^14]: 47 C.F.R. § 1.2109(c).

[^15]: 47 C.F.R. § 1.2109(d).

[^16]: Policies and Rules for the Direct Broadcast Satellite Service,
    *Report and Order*, 17 FCC Rcd 11331 ¶ 35 (2002).

[^17]: *See* Amendment of the Commission's Space Station Licensing Rules
    and Policies, *Third Report and Order*, 18 FCC Rcd 13486, 13492-93 ¶
    11-15 (2003) ("*Third Space Station Reform Order*").

[^18]: 47 C.F.R. § 1.1107 (11)(b)(c).

[^19]: *See* §§ 25.148(e)(f), 1.2107.

[^20]: *See* "International Bureau Clarifies Direct Broadcast Satellites
    Space Station Application Processing Rules," *Public Notice*, 19 FCC
    Rcd 1346 (2004).

[^21]: *Third Space Station Reform Order* 18 FCC Rcd at 13523-24
    (Appendix B).

[^22]: *See* Mandatory Electronic Filing For International
    Telecommunications Services and Other International Filings, *Notice
    of Proposed Rulemaking*, FCC 04-133 (rel. June 30, 2004).

[^23]: 47 C.F.R. § 1.2107(c).

[^24]: 47 C.F.R. § 25.154(a)(2).

[^25]: 47 C.F.R. §25.154(c).

[^26]: 47 C.F.R. §25.154(d).

[^27]: *See* "Commission Taking Tough Measures Against Frivolous
    Pleadings," *Public Notice*, 11 FCC Rcd 3030 (1996).

[^28]: *Auction No. 52 Procedures Public Notice*, 19 FCC Rcd at 4.