> DA 02-2179

**[Via certified mail, return receipt requested]{.underline}**

Police Emergency Radio Services, Inc.

82 Herbert Street

Framingham, Massachusetts 01702

Attn: Robert A. Fay; William A. Campbell

Robert A. Fay

\# 7 Wamsutt Avenue

Worcester, Massachusetts 01602

Robert Schwaninger, Esq.

1835 K Street, N.W., Suite 650

Washington, D.C. 20006

**Re: Final Bid Withdrawal Payment For Auction No. 24**

Dear Messrs. Fay, Campbell, and Schwaninger:

The Police Emergency Radio Services, Inc. ("PERS"), a participant in
Auction No. 24, withdrew a high bid on license EAG004F, Great Lakes in
that auction.[^1] Auction No. 43, the subsequent auction for the license
on which PERS withdrew a high bid in Auction No. 24, has closed.[^2]
Therefore, in accordance with the Commission's rules, we are able to
calculate PERS' final bid withdrawal obligations.

Under the Commission's rules, a bidder that withdraws a high bid during
the course of an auction is subject to a bid withdrawal payment equal to
the difference between the amount of the withdrawn bid and the amount of
the subsequent winning bid.[^3] If a high bid is withdrawn on a license
that remains unsold at the close of the auction, the withdrawing bidder
will be required to make an interim payment equal to three percent (3%)
of the net amount of the withdrawn bid.[^4] This payment amount is
deducted from any up-front payments or down payments deposited for this
bidder's account with the Commission.[^5] If, in a subsequent auction,
that license receives a winning bid in an amount equal to or greater
than the withdrawn bid amount, then no final bid withdrawal payment will
be assessed, and upon appropriate request, the Commission will refund
the interim three percent (3%) payment.[^6] If, in a subsequent auction,
the winning bid for that license is less than the bidder's withdrawn bid
amount, then the bidder will be required to make a final bid withdrawal
payment equal to either the difference between the bidder's net
withdrawn bid and the subsequent net winning bid, or the difference
between the bidder's gross withdrawn bid and the subsequent gross
winning bid, whichever is less.[^7]

With respect to PERS' bid withdrawal in Auction No. 24, as shown in
Attachment A,[^8] in Auction No. 43, the subsequent auction of license
EAG004F, the winning bid amount of \$78,000 for the license was less
than PERS' withdrawn bid amount of \$141,050.[^9] In accordance with
Section 1.2104 of the Commission's rules,[^10] PERS owes a final bid
withdrawal payment of \$63,050 in connection with license EAG004F.
Because license No. EAG004F was unsold at the close of Auction No. 24,
the Commission has previously deducted an interim bid withdrawal payment
of \$4,232 from the funds on deposit with the Commission.[^11]
Therefore, in accordance with Section 1.2104 of the Commission's rules,
after applying the interim bid withdrawal payment of \$4,232 to the
final bid withdrawal payment, PERS owes an outstanding balance of
\$58,818.[^12]

As a result, PERS is in debt to the United States in the amount of
\$58,818, payable in full, immediately, and without further demand. As
permitted under 31 U.S.C. § 3717, the debt is subject to interest,
penalties, and administrative costs, and interest accrues from the date
of this letter, which is also its mailing date. PERS, the debtor, may
avoid payment of the interest if it tenders to the Commission full
payment within 30 days of the date of this letter. Moreover, the debt is
subject to an additional charge to cover the cost of processing and
handling of delinquent debts, and a penalty charge in the amount
permitted by law. The penalty charge for delinquent debt payment
permitted by 31 U.S.C. § 3717 currently is 6 percent a year for the
failure to pay any part of the debt more than 90 days past due.

[Ordering Clauses]{.underline}

Accordingly, IT IS ORDERED that, pursuant to Sections 4(i) and 309 of
the Communications Act of 1934 as amended, 47 U.S.C. §§ 154(i), 309, and
Section 1.2104(g) of the Commission's Rules, 47 C.F.R. § 1.2104(g), PERS
IS ASSESSED a final withdrawal payment of \$63,050 as a result of PERS'
withdrawal of its bid on license EAG004F as computed in Attachment A.

IT IS FURTHER ORDERED that, pursuant to 47 C.F.R. §§ 1.2104 and 1.2106,
PERS' interim withdrawal payment of \$4,232 will be applied toward the
final withdrawal payment for license EAG004F, leaving PERS with a debt
to the Commission of \$58,818.

IT IS FURTHER ORDERED that PERS' debt of \$58,818 be paid immediately,
in accordance with the payment instructions in Attachment B within 30
days of the date of this letter, and if it is unpaid 30 days of the date
of this letter, interest will accrue from the date of this letter along
with penalties and administrative costs permitted by 31 U.S.C. § 3717.

IT IS FURTHER ORDERED that this letter shall be sent to the applicant
and its representatives by certified mail, return receipt requested.
This action is taken pursuant to authority delegated by Section 0.331 of
the Commission's rules, 47 C.F.R. § 0.331.

Sincerely,

Margaret W. Wiener, Chief

> Auctions and Industry Analysis Division
>
> Wireless Telecommunications Bureau

**[ATTACHMENT A]{.underline}**

**Phase II 220 MHz Service Spectrum**

**Bid Withdrawal Payment Report**

+----+---+-----+------+-------+-------+--------+---------+----------+
| *  | * | **  | **Bi | *     | **Wi  | **PERS | **PERS  | **PERS   |
| *L | * | Mar | dder | *PERS | nning | Final  | Interim | Out      |
| ic | F | ket | Na   | With  | Bid   | Bid**  | Withd   | standing |
| en | r | D   | me** | drawn | A     |        | rawal** | B        |
| se | e | esc |      | Net   | mount | #      |         | alance** |
| Nu | q | rip |      | Bid   | (Au   |  Withd | **Pa    |          |
| mb | B | tio |      | A     | ction | rawal  | yment** |          |
| er | l | n** |      | mount | 43)** |        |         |          |
| ** | k |     |      | (Au   |       | ## P   |         |          |
|    | * |     |      | ction |       | ayment |         |          |
|    | * |     |      | 24)** |       |        |         |          |
+----+---+-----+------+-------+-------+--------+---------+----------+
|    |   |     |      |       |       |        |         |          |
+----+---+-----+------+-------+-------+--------+---------+----------+
| E  | F | Gr  | Po   | \$    | \     | \$63,  | \$4     | \$5      |
| AG |   | eat | lice | 141,0 | $78,0 | 050.00 | ,232.00 | 8,818.00 |
| 00 |   | La  | E    | 50.00 | 00.00 | -      | =       |          |
| 4F |   | kes | merg | (-)   | =     |        |         |          |
|    |   |     | ency |       |       |        |         |          |
|    |   |     | R    |       |       |        |         |          |
|    |   |     | adio |       |       |        |         |          |
|    |   |     | Serv |       |       |        |         |          |
|    |   |     | ices |       |       |        |         |          |
|    |   |     | (P   |       |       |        |         |          |
|    |   |     | ERS) |       |       |        |         |          |
+----+---+-----+------+-------+-------+--------+---------+----------+

**[Attachment B]{.underline}**

**SUBMITTING PAYMENT INSTRUCTIONS**

**[Method of Payment]{.underline}**

All payments must be made in U.S. dollars, must be in the form of a Wire
Transfer. No personal checks, credit cards payments, or other forms of
payment will be accepted.

> To submit funds by wire, applicants will need the following
> information to properly effect the transmittal:

ABA Routing Number: 043000261

Receiving Bank: Mellon in Pittsburgh, PA

BNF: FCC/AC-9116106

OBI Field: (Skip one space between each informational item.)

\"AUCTION PAY\"

APPLICANT FRN (same as FCC Form 159, Block 11)

PAYMENT TYPE CODE (same as FCC Form 159, Block 24A: \"APEN\")

FCC CODE 1 (same as FCC Form 159, Block 28A: \"24\")

PAYOR NAME: (the same payor name as FCC Form 159, Block 2)

LOCKBOX NO.: 358850

A completed FCC Remittance Advice Form (FCC Form 159) must accompany all
payments. On the same business day that the applicant pays the amount
due to Mellon Bank, the applicant must fax 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.

**Further information**

For questions regarding the submission of payment or the FCC Form 159,
contact Gail Glasser or Tim Dates, Office of the Managing Director,
Financial Operations Center, Auctions Accounting Group, at (202)
418-1995.

[^1]: Phase II 220 MHz Service Spectrum Auction Closes, Winning Bidders
    in the Auction of 225 Licenses in the Phase II 220 MHz Service, Down
    Payments Due July 16, 1999, *Ten-Day Petition to Deny Period, Public
    Notice,* at Attachment C, 14 FCC Rcd 11218 (1999) ("*Auction No. 24
    Winning Bidders' Public Notice*").

[^2]: Multi-Radio Service Auction Closes, Winning Bidders Announced,
    Down Payments Due February 5, 2002, *Ten-Day Petition to Deny
    Period, Public Notice*, DA 02-157 (rel. January 22, 2002) ("*Auction
    No. 43 Winning Bidders' Public Notice*").

[^3]: 47 C.F.R. § 1.2104(g)(1) (1998).

[^4]: 47 C.F.R. § 1.2104(g)(1); *see also* *Auction No. 24 Winning
    Bidders' Public Notice* at Attachment C. This attachment shows that
    PERS withdrew a bid in Auction 24 and indicates the interim three
    percent bid withdrawal payment.

[^5]: 47 C.F.R. § 1.2106(e); *Auction No. 24 Winning Bidders' Public
    Notice* at Attachment C.

[^6]: 47 C.F.R. § 1.2104(g)(1).

[^7]: *Id.*

[^8]: Because the subsequent winning bidder in Auction No. 43. did not
    apply for a bidding credit, the winning bid is both the gross and
    the net winning bid. *See Auction No. 43 Winning Bidders' Public
    Notice,* Attachment A, p.1 of 2. Accordingly, Attachment A
    calculates the final withdrawal payment based upon PERS' net
    withdrawn bid in Auction No. 24 for license EAG004F minus the
    winning bid in Auction No. 43.

[^9]: *Auction No. 24 Winning Bidders' Public Notice* at Attachment C.

[^10]: 47 C.F.R. § 1.2104(g)(1).

[^11]: *Auction No. 24 Winning Bidders' Public Notice* at Attachment C.

[^12]: *Id.* To make the final bid withdrawal payment, PERS must submit
    payment in accordance with the instructions set forth in Attachment
    B.