DA 04-1513

May 26, 2004

AUTOMATED MARITIME TELECOMMUNICATIONS SYSTEM SPECTRUM AUCTION SCHEDULED
FOR SEPTEMBER 15, 2004

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

**Upfront Payments and Other Auction Procedures**

Report No. AUC-04-57-B (Auction No. 57)

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

A. Introduction [1](#introduction)

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

2\. Licenses to Be Auctioned [3](#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\. Interference Protection [6](#interference-protection)

4\. Coordination Requirements [6](#coordination-requirements)

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

6\. Bidder Alerts [10](#bidder-alerts)

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

C. Auction Specifics [11](#auction-specifics)

1\. Auction Date [11](#auction-date)

2\. Auction Title [12](#auction-title)

3\. Bidding Methodology [13](#bidding-methodology)

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

5\. Requirements For Participation [13](#requirements-for-participation)

6\. General Contact Information [13](#general-contact-information)

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

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

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

C. Eligibility [15](#eligibility)

1\. Bidding Credit Eligibility (FCC Form 175 Exhibit C)
[15](#bidding-credit-eligibility-fcc-form-175-exhibit-c)

2\. Tribal Land Bidding Credit [16](#tribal-land-bidding-credit)

3\. Applicability of Part 1 Attribution Rules
[16](#applicability-of-part-1-attribution-rules)

4\. Supporting Documentation [17](#supporting-documentation)

D. Provisions Regarding Defaulters and Former Defaulters (FCC Form 175
Exhibit D)
[18](#provisions-regarding-defaulters-and-former-defaulters-fcc-form-175-exhibit-d)

E. Installment Payments [18](#installment-payments)

F. Other Information (FCC Form 175 Exhibits E and F)
[18](#other-information-fcc-form-175-exhibits-e-and-f)

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

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

III\. PRE-AUCTION PROCEDURES [19](#pre-auction-procedures)

A. Auction Seminar [19](#auction-seminar)

B. Short-Form Application (FCC Form 175) --- Due July 19, 2004
[19](#short-form-application-fcc-form-175-due-july-19-2004)

1\. Electronic Filing [20](#electronic-filing)

2\. Completion of the FCC Form 175 [20](#completion-of-the-fcc-form-175)

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

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

D. Upfront Payments --- Due August 20, 2004
[21](#upfront-payments-due-august-20-2004)

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

2\. FCC Form 159 [22](#fcc-form-159)

3\. Amount of Upfront Payment [22](#amount-of-upfront-payment)

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

E. Auction Registration [24](#auction-registration)

F. Remote Electronic Bidding [24](#remote-electronic-bidding)

G. Mock Auction [25](#mock-auction)

IV\. AUCTION EVENT [25](#auction-event)

A. Auction Structure [25](#auction-structure)

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

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

3\. Auction Stages [26](#auction-stages)

4\. Stage Transitions [27](#stage-transitions)

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

6\. Auction Stopping Rules [28](#auction-stopping-rules)

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

B. Bidding Procedures [29](#bidding-procedures)

1\. Round Structure [29](#round-structure)

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

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

4\. High Bids [32](#high-bids)

5\. Bidding [32](#bidding)

6\. Bid Removal and Bid Withdrawal [33](#bid-removal-and-bid-withdrawal)

7\. Round Results [34](#round-results)

8\. Auction Announcements [35](#auction-announcements)

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

V. POST-AUCTION PROCEDURES [35](#post-auction-procedures)

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

B. Final Payments [35](#final-payments)

C. Long-Form Application (FCC Form 601)
[35](#long-form-application-fcc-form-601)

D. Ownership Disclosure Information Report (FCC Form 602)
[36](#ownership-disclosure-information-report-fcc-form-602)

E. Tribal Land Bidding Credit [36](#tribal-land-bidding-credit-1)

F. Default and Disqualification [37](#default-and-disqualification)

G. Refund of Remaining Upfront Payment Balance
[37](#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: Minimum Acceptable Bids, Bid Increments, and the
Smoothing Formula F-[1](#attachment-f)

XII\. Attachment G: Summary Listing of Commission and Bureau Documents
Addressing Application of the Anti-Collusion Rule G-[1](#attachment-g)

# General Information

## Introduction

By this Public Notice, the Wireless Telecommunications Bureau ("Bureau")
announces the procedures and minimum opening bids for the upcoming
auction of licenses in the Automated Maritime Telecommunications System
("AMTS") spectrum scheduled for September 15, 2004 (Auction No. 57).[^1]
On April 5, 2004, in accordance with the Balanced Budget Act of
1997,[^2] the Bureau released a public notice seeking comment on reserve
prices or minimum opening bids and the procedures to be used in Auction
No. 57.[^3] The Bureau received two comments, three reply comments, and
further comments ex parte in response to the *Auction No. 57 Comment
Public Notice*.[^4]

### Background of Proceeding 

The Maritime Services provide for the unique distress, operational and
personal communication needs of vessels at sea and on inland
waterways.[^5] AMTS is a maritime service that was established in 1981
as an alternative to VHF public coast service ("VPCS").[^6] In the
*Public Coast* *Second Report and Order and Second Further Notice*, the
Commission described AMTS as a specialized system of public coast
stations providing integrated and interconnected marine voice and data
communications, somewhat like a cellular phone system, for tugs, barges,
and other commercial vessels on waterways.[^7]

Section 309(j)(2) of the Communications Act formerly stated that
mutually exclusive applications for initial licenses or construction
permits were auctionable if the principal use of the spectrum was for
subscriber-based services, and competitive bidding would promote the
expressed objectives of the Communications Act.[^8] The Commission
concluded that the public coast service, including VPCS, high seas, and
AMTS public coast stations, was a Commercial Mobile Radio Service
("CMRS")[^9] and subsequently decided that mutually exclusive
applications for public coast station licenses would be resolved through
competitive bidding.[^10]

On August 5, 1997, after release of the *Public Coast* *Second Report
and Order and Second Further Notice*, President Clinton signed into law
the Balanced Budget Act of 1997 ("Balanced Budget Act"),[^11] which
expanded the Commission\'s auction authority by amending Section 309(j)
of the Communications Act to provide that all mutually exclusive
applications for initial licenses or construction permits *shall* be
auctioned, with certain exceptions not applicable here.[^12]

In the *Public Coast* *Second Report and Order and Second Further
Notice*, the Commission adopted AMTS rules that permit service on land,
so long as marine-originating communications receive priority.[^13] In
the *Public Coast* *Second Memorandum Opinion and Order and Fifth Report
and Order*, the Commission adopted a geographic licensing system for
AMTS with service areas ("AMTSAs") based upon maritime VPCS areas
("VPCSA"), with the modification that the inland VPCSAs would be
consolidated into a single, inland geographic service area.[^14] The
Commission announced that it would conduct an auction to resolve
mutually exclusive applications for AMTS licenses.[^15] Additionally,
the Commission concluded that the general competitive bidding rules, and
the rules regarding the participation of small businesses in auctions
that were applied to the auction of VPC licenses, should be used for
auctioning AMTS licenses.[^16]

On April 5, 2004, the Wireless Telecommunications Bureau ("Bureau")
released the *Auction No. 57 Comment Public Notice* announcing that
Auction No. 57 will commence on September 15, 2004, setting forth a
complete list of licenses for Auction No. 57, and seeking comment on
reserve prices or minimum opening bids and other auction
procedures.[^17]

### Licenses to Be Auctioned

Auction No. 57 will offer 20 licenses in the AMTS Service in the 217/219
MHz bands. Two licenses will be offered in each of 10 AMTSAs.[^18] A
complete list of the licenses available in Auction No. 57 is included in
Attachment A of this Public Notice.

The following table describes the licenses that will be auctioned in
each of the AMTSAs:

+-----+---------------------+----------+---------+----------+--------+
| **B | **Frequency Bands** | **Total  | **Pa    | **Ge     | **No.  |
| loc |                     | Ban      | iring** | ographic | of     |
| k** | **(MHz)**           | dwidth** |         | Area     | Lice   |
|     |                     |          |         | Type**   | nses** |
+-----+---------------------+----------+---------+----------+--------+
| A   | 217.5 -- 218.0 /    | 1 MHz    | 2 x 500 | AMTSA    | 10     |
|     | 219.5 -- 220.0      |          | kHz     |          |        |
+-----+---------------------+----------+---------+----------+--------+
| B   | 217.0 -- 217.5 /    | 1 MHz    | 2 x 500 | AMTSA    | 10     |
|     | 219.0 -- 219.5      |          | kHz     |          |        |
+-----+---------------------+----------+---------+----------+--------+
| No  |                     |          |         |          |        |
| te: |                     |          |         |          |        |
| The |                     |          |         |          |        |
| ab  |                     |          |         |          |        |
| ove |                     |          |         |          |        |
| ta  |                     |          |         |          |        |
| ble |                     |          |         |          |        |
| di  |                     |          |         |          |        |
| spl |                     |          |         |          |        |
| ays |                     |          |         |          |        |
| the |                     |          |         |          |        |
| b   |                     |          |         |          |        |
| and |                     |          |         |          |        |
| ed  |                     |          |         |          |        |
| ges |                     |          |         |          |        |
| of  |                     |          |         |          |        |
| sp  |                     |          |         |          |        |
| ect |                     |          |         |          |        |
| rum |                     |          |         |          |        |
| blo |                     |          |         |          |        |
| cks |                     |          |         |          |        |
| A   |                     |          |         |          |        |
| and |                     |          |         |          |        |
| B   |                     |          |         |          |        |
| us  |                     |          |         |          |        |
| ing |                     |          |         |          |        |
| the |                     |          |         |          |        |
| twe |                     |          |         |          |        |
| nty |                     |          |         |          |        |
| 25  |                     |          |         |          |        |
| kHz |                     |          |         |          |        |
| ch  |                     |          |         |          |        |
| ann |                     |          |         |          |        |
| els |                     |          |         |          |        |
| t   |                     |          |         |          |        |
| hat |                     |          |         |          |        |
| co  |                     |          |         |          |        |
| mpr |                     |          |         |          |        |
| ise |                     |          |         |          |        |
| e   |                     |          |         |          |        |
| ach |                     |          |         |          |        |
| bl  |                     |          |         |          |        |
| ock |                     |          |         |          |        |
| as  |                     |          |         |          |        |
| lis |                     |          |         |          |        |
| ted |                     |          |         |          |        |
| in  |                     |          |         |          |        |
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| pu  |                     |          |         |          |        |
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| 25  |                     |          |         |          |        |
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| may |                     |          |         |          |        |
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| any |                     |          |         |          |        |
| ch  |                     |          |         |          |        |
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| s   |                     |          |         |          |        |
| che |                     |          |         |          |        |
| me; |                     |          |         |          |        |
| ho  |                     |          |         |          |        |
| wev |                     |          |         |          |        |
| er, |                     |          |         |          |        |
| r   |                     |          |         |          |        |
| ega |                     |          |         |          |        |
| rdl |                     |          |         |          |        |
| ess |                     |          |         |          |        |
| of  |                     |          |         |          |        |
| the |                     |          |         |          |        |
| ch  |                     |          |         |          |        |
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| sch |                     |          |         |          |        |
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| ed, |                     |          |         |          |        |
| emi |                     |          |         |          |        |
| ssi |                     |          |         |          |        |
| ons |                     |          |         |          |        |
| at  |                     |          |         |          |        |
| th  |                     |          |         |          |        |
| ese |                     |          |         |          |        |
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| ges |                     |          |         |          |        |
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| ust |                     |          |         |          |        |
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| nua |                     |          |         |          |        |
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| the |                     |          |         |          |        |
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| wo  |                     |          |         |          |        |
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| qui |                     |          |         |          |        |
| red |                     |          |         |          |        |
| un  |                     |          |         |          |        |
| der |                     |          |         |          |        |
| 47  |                     |          |         |          |        |
| C.F |                     |          |         |          |        |
| .R. |                     |          |         |          |        |
| §   |                     |          |         |          |        |
| 80. |                     |          |         |          |        |
| 211 |                     |          |         |          |        |
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| the |                     |          |         |          |        |
| li  |                     |          |         |          |        |
| cen |                     |          |         |          |        |
| see |                     |          |         |          |        |
| w   |                     |          |         |          |        |
| ere |                     |          |         |          |        |
| us  |                     |          |         |          |        |
| ing |                     |          |         |          |        |
| 25  |                     |          |         |          |        |
| kHz |                     |          |         |          |        |
| cha |                     |          |         |          |        |
| nne |                     |          |         |          |        |
| ls. |                     |          |         |          |        |
+-----+---------------------+----------+---------+----------+--------+

## Rules and Disclaimers 

### Relevant Authority 

Prospective applicants must familiarize themselves thoroughly with the
Commission's rules relating to the AMTS service contained in Title 47,
Part 80, 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. 57 Comment* *Public Notice;* *Public Coast* *Second Memorandum
Opinion and Order* *and Fifth Report and Order* and the *Public Coast*
*Fourth Report and Order and Third Further Notice of Proposed Rule
Making*[^19] (as well as prior and subsequent Commission proceedings
regarding competitive bidding procedures).[^20]

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 applicants 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,
445 12th Street, SW, Room CY-A257, Washington, DC 20554. Documents may
also be purchased from the Commission's duplicating contractor, Qualex
International, 445 12th Street, SW, Room CY-B402, Washington, DC 20554,
202-863-2893 (telephone), 202-863-2898 (facsimile), or
<qualexint@aol.com> (e-mail). When ordering documents from Qualex,
please provide the appropriate FCC document number (for example, FCC
02-74 for the *Public Coast* *Second Memorandum Opinion and Order* *and
Fifth Report and Order*).

### 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).[^21] Thus, applicants for any of the same geographic
license areas must affirmatively avoid all discussions with each other
that affect, or in their reasonable assessment have the potential to
affect, bidding or bidding strategy. This prohibition begins at the
short-form application filing deadline and ends at the down payment
deadline after the auction.[^22] 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 that entity.[^23]

Applicants for licenses in any of the same geographic license areas are
encouraged not to use 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 competing 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.[^24] 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.[^25]

The Commission's anti-collusion rules allow applicants to form certain
agreements during the auction, provided the applicants have not applied
for licenses covering the same geographic areas.[^26] In addition,
applicants that apply to bid for all markets will be precluded from
communicating with all other applicants until after the down payment
deadline. 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.[^27] 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.[^28] By
signing their FCC Form 175 short-form applications, applicants are
certifying their compliance with Section 1.2105(c).

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.[^29] 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.[^30]

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.[^31] 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.[^32] 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.[^33]

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 G.

### Interference Protection 

Incumbent AMTS site-based licensees are entitled to co-channel
protection by AMTS geographic area licensees. Among other licensing and
technical rules, AMTS geographic area licensees will be required to
afford interference protection to incumbent systems, on a fixed
separation basis as provided in Section 80.385(b)(1). Geographic area
licensees must also provide co-channel interference protection to other
geographic area licensees in accordance with Sections 80.479(b) and
80.70(a).

Incumbents will be prohibited from renewing, transferring, assigning, or
modifying their licenses in any manner that extends their system's
service area[^34] or results in their acquiring additional frequencies,
unless there is consent from each affected geographic area licensee. If
an incumbent fails to construct, discontinues operations, or otherwise
has its license terminated, the spectrum covered by the incumbent's
authorization will automatically revert to the geographic area licensee.

In addition, AMTS licensees that cause interference to television
reception or to the U.S. Navy SPASUR system must cure the problem or
discontinue operations.[^35]

### Coordination Requirements 

AMTS geographic area licensees may place stations anywhere within their
service areas to serve vessels or units on land, so long as incumbent
operations are protected, marine-originating traffic is given priority
and certain major waterways are served. However, geographic area
licensees must individually license any base station that requires an
Environmental Assessment pursuant to Section 1.1307 of the Commission's
Rules or international coordination, or would affect the radio frequency
quiet zones described in Section 80.21 of the Commission's rules, or
would require broadcaster notification and an engineering study
described in Section 80.215(h).[^36]

For instance, AMTS applicants proposing to locate a transmitter (1)
within 169 kilometers (105 miles) of a Channel 13 television station,
(2) within 105 kilometers (80 miles) of a Channel 10 television station,
or (3) with an antenna height greater than 61 meters (200 feet), must
file an application with the Commission, including an engineering study
showing how harmful interference to television reception will be
avoided, and must also give written notice of the application to the
television stations that may be affected so that the broadcaster can
comment on the proposed construction.[^37]

Additionally, AMTS licensees must obtain written consent from all
affected licensees prior to using AMTS frequencies for mobile-to-mobile
communications.

### Due Diligence 

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 should perform their
individual due diligence before proceeding as they would with any new
business venture.

Potential applicants are reminded that there are a number of incumbent
licensees already licensed and operating on frequencies that will be
subject to the upcoming auction, such as AMTS Station licensees. Such
incumbents must be protected from harmful interference by AMTS Station
geographic area licensees in accordance with the Commission's
Rules.[^38] These limitations may restrict the ability of such AMTS
geographic area licensees to use certain portions of the electromagnetic
spectrum or provide service to certain areas in their geographic license
areas. We therefore caution potential applicants in formulating their
bidding strategies to investigate and consider the extent to which AMTS
frequencies are occupied by incumbents.

**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. 57.**

In establishing the AMTS service, the Commission considered the
potential for interference to television reception, particularly
Channels 13 and 10.[^39] Consequently, geographic licensees will be
required to file individual applications for authority to operate a new
AMTS transmitter within 169 kilometers (105 miles) of a Channel 13
television station or 129 kilometers (80 miles) of a Channel 10
television station, or with an antenna height greater than 61 meters
(200 feet) above ground.[^40] Such applications must include an
engineering study showing how harmful interference to television
reception will be avoided,[^41] and the applicant must notify each
television station that may be affected so that the broadcaster can
comment on the proposed construction.[^42] Moreover, any AMTS licensee
that causes such interference must cure the problem or cease
operations.[^43] AMTS licensees are permitted to construct "fill-in"
sites[^44] without filing individual applications,[^45] but such sites
are fully subject to the requirement that AMTS stations cause no harmful
interference to television reception, and must discontinue operations if
unable to meet this requirement.[^46]

In addition, AMTS operations must not cause harmful interference to the
United States Navy\'s Space Surveillance System (SPASUR),[^47] which
operates in the 216.880-217.080 MHz band.[^48] Also, law enforcement
tracking operations are currently authorized on a primary basis in
certain markets in AMTSAs 3, 4, 6, 9 and 10 on a frequency in block
A.[^49] These operations are scheduled to be converted to non-AMTS
frequencies by 2007. It is the responsibility of bidders to be aware of
these and all other technical or regulatory matters affecting the
spectrum licenses available in this auction.

With respect to the geographic boundaries for Automated Maritime
Telecommunications System areas (AMTSAs), the Commission defined the
AMTSA boundaries to include "the adjacent waters under the jurisdiction
of the United States."[^50] Regarding the boundary between AMTSA 3,
which includes the west coast of Florida, and AMTSA 4, which includes
the Gulf of Mexico EA-like area, we hereby clarify that, for AMTSA 3,
the boundary extends only to the limit of the U.S. territorial waters in
the Gulf (12-nautical mile limit); and the boundary for AMTSA 4 extends
from the 12-nautical mile line outward to the broadest geographic limits
consistent with international agreements.[^51]

To date, no existing agreements between the United States and Mexico or
Canada restrict AMTS channel availability in the Mexican and Canadian
border areas. Licensees will, however, be subject to any future
agreements regarding international assignments and coordination of such
channels; and it is the responsibility of bidders to be familiar with
all relevant governing international agreements; and that such
agreements and amendments thereto may affect the use, utility or value
of the spectrum at issue.

Potential bidders should also be aware that certain pending and future
applications (including those for modification), petitions for
rulemaking, requests for special temporary authority ("STA"), waiver
requests, petitions to deny, petitions for reconsideration, informal
oppositions, and applications for review before the Commission may
relate to particular applicants or incumbent licensees or the licenses
available in Auction No. 57.[^52] In addition, pending and future
judicial proceedings may relate to particular applicants or incumbent
licensees, or the licenses available in Auction No. 57.[^53] Prospective
bidders are responsible for assessing the likelihood of the various
possible outcomes, and considering their potential impact on spectrum
licenses available in this auction.

Prospective bidders should perform due diligence to identify and
consider all proceedings that may affect the spectrum licenses being
auctioned. We note that resolution of such matters could have an impact
on the availability of spectrum for Auction No. 57. In addition,
although the Commission may continue to act on various pending
applications, informal objections petitions, and other requests for
Commission relief, some of these matters may not be resolved by the time
of the auction.

Potential bidders may obtain information about licenses available in
Auction No. 57 through the Bureau's licensing databases on the World
Wide Web at http://wireless.fcc.gov/uls. Potential applicants may query
the database online and download a copy of their search results if
desired. Detailed instructions on using License Search (including
frequency searches and the GeoSearch capability) and downloading query
results are available online by selecting the "?" button at the upper
right-hand corner of the License Search screen. Potential applicants
should direct questions regarding the search capabilities to the FCC
Technical Support hotline at (202) 414-1250 (voice) or (202) 414-1255
(TTY), or via e-mail at <ulscomm@fcc.gov>. The hotline is available to
assist with questions 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.* Potential bidders may research the Media Bureau's
licensing database on the Internet in order to determine the location of
Channel 13 or Channel 10 television stations. Television station
information is contained in the Media Bureau's TVQ TV Database and may
be researched on the Internet at http://www.fcc.gov/mb/video/tvq.html.

The Commission makes no representations or guarantees regarding the
accuracy or completeness of information in its databases or any third
party databases, including, for example, court docketing systems.[^54]
To the extent the Commission's databases may not include all information
deemed necessary or desirable by a bidder, bidders may obtain or verify
such information from independent sources or assume the risk of any
incompleteness or inaccuracy in said databases. Furthermore, the
Commission makes no representations or guarantees regarding the accuracy
or completeness of information that has been provided by incumbent
licensees and incorporated into the database. **Potential applicants are
strongly encouraged to physically inspect any sites located in, or near,
the service area for which they plan to bid.**

### 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. 57 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. 57 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").[^55] The construction of a wireless
antenna facility is a federal action and the licensee must comply with
the Commission's NEPA rules for each such facility.[^56] The
Commission's NEPA rules require, among other things, that the licensee
consult with expert agencies having NEPA responsibilities, including the
U.S. Fish and Wildlife Service, the State Historic Preservation Office,
the Army Corps of Engineers and the Federal Emergency Management Agency
(through the local authority with jurisdiction over floodplains). The
licensee must prepare environmental assessments for facilities that may
have a significant impact in or on wilderness areas, wildlife preserves,
threatened or endangered species or designated critical habitats,
historical or archaeological sites, Indian religious sites, floodplains,
and surface features. The licensee must also prepare environmental
assessments for facilities that include high intensity white lights in
residential neighborhoods or excessive radio frequency emission.

## Auction Specifics

### Auction Date

The auction will begin on Wednesday, September 15, 2004, as announced in
the Auction No. 57 *Comment Public Notice*.[^57] With respect to
commenters seeking a delay of the start of Auction No. 57, we do not
believe it would be in the public interest to do so. Mobex argues in
both its Comments and Reply Comments for a four month delay in the
auction schedule. Mobex states that this delay is necessary so that
potential bidders can analyze the significant technical requirements and
financial issues involved with providing maritime service on a
co-primary basis and to "grasp" the heavy presence of incumbents
associated with the spectrum.[^58] Additionally, Mobex argues that
uncertainty regarding the subject spectrum's service rules, arising from
litigation currently in the United States Court of Appeals for the
District of Columbia Circuit, could improperly skew the auction results
and artificially restrict the optimal public interest benefit obtained
through the auction process.[^59] Mobex contends that auctioning the
heavily encumbered AMTS spectrum is analogous to the situations in
Auction Nos. 21 and 31, where the Bureau granted delays that allowed,
*inter alia*, a full analysis of the encumbered spectrum.[^60]

We do not find the comments arguing for a delay persuasive. Potential
bidders have already had more than three years to "grasp" the heavy
presence of incumbents in this spectrum, given that the Commission froze
new licenses in 2000.[^61] Moreover, although they have been subject to
modification since, the Commission adopted technical rules for AMTS over
two years ago.[^62] Finally, the commenters that argued for delay are
already providing AMTS services, and thus, already have business plans,
presumably have assessed market conditions, and certainly evaluated the
availability of equipment for the AMTS service. With respect to the
existence of pending litigation, the Bureau has previously concluded
that, in general, this is not a sufficient reason to delay an
auction.[^63] We expect that applicants bidding on licenses subject to
litigation take such litigation into account in determining their
bidding strategies, lowering the level of risk that results from bidding
on licenses subject to pending proceedings.

With respect to other delays cited by Mobex, similar circumstances are
not present here. The Bureau postponed Auction No. 21 to give potential
bidders a reasonable opportunity to consider deployment and technical
information that NTIA was in the midst of compiling regarding government
primary users occupying the 902-928 MHz band. In Auction No. 57, there
are no government primary users occupying the bands that will be
auctioned. Auction No. 31 was postponed initially to allow bidder
preparation and planning in light of the Commission plans to use
combinatorial bidding for the first time in that auction and the special
circumstances of the spectrum stemming from its reallocation from
broadcasting to a mix of public safety and new commercial uses.[^64]
Later, Auction No. 31 was postponed so Congress could consider
legislation affecting the timing of that auction.[^65] In contrast,
there are no novel questions before us with regard to the spectrum that
will be auctioned in Auction No. 57; nor are we aware of any specific
legislation being considered by Congress at this time that would affect
the timing of Auction No. 57.

Section 309(j)(3)(E)(ii) provides, in pertinent part, that after the
issuance of bidding rules the Commission shall "ensure that interested
parties have a sufficient time to develop business plans, assess market
conditions, and evaluate the availability of equipment for the relevant
services."[^66] The Commission decided in 2002 that the general bidding
rules found in Subpart Q of Part 1 of the Commission's Rules should
apply to the auction of public coast spectrum.[^67] We do not believe
that the statutory requirement to provide prospective bidders with time
to develop a business plan and evaluate the availability of equipment
requires the Commission to postpone an auction until every external
factor that might influence a bidder's business plan is resolved with
absolute certainty.[^68] We also note that, while Section 309(j)(3)(E)
directs the Commission to provide interested parties adequate time to
prepare prior to an auction, the statute also requires that the
Commission promote several other objectives in exercising its
competitive bidding authority, including the rapid deployment of new
technologies and services to the public, promotion of economic
opportunity and competition, recovery for the public of a portion of the
value of the spectrum, and efficient and intensive use of the
spectrum.[^69] In balancing these objectives, we determine that the
public interest would be served by proceeding with the auction as
scheduled.

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. 57 -- AMTS.

### Bidding Methodology 

The bidding methodology for Auction No. 57 will be simultaneous multiple
round bidding. The Commission will conduct this auction over the
Internet, and telephonic bidding will be available as well. As a
contingency plan, bidders may also dial in to the FCC Wide Area Network.
Qualified bidders are permitted to bid telephonically or electronically.

### Pre-Auction Dates and Deadlines

Auction Seminar July 1, 2004

Short-Form Application (FCC Form 175) Filing Window Opens July 1, 2004;
12:00 p.m. ET

Short-Form Application (FCC Form 175) Filing Window Deadline July 19,
2004; 6:00 p.m. ET

Upfront Payments (via wire transfer) August 20, 2004; 6:00 p.m. ET

Mock Auction September 10, 2004

Auction Begins September 15, 2004

### Requirements For Participation

Those wishing to participate in the auction must:

-   Submit a short-form application (FCC Form 175) electronically by
    6:00 p.m. ET, July 19, 2004.

-   Submit a sufficient upfront payment and an FCC Remittance Advice
    Form (FCC Form 159) by 6:00 p.m. ET, August 20, 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,          | Legal Branch (202) 418-0660      |
| Regulations                       |                                  |
+-----------------------------------+----------------------------------+
| LICENSING INFORMATION             | Public Safety and Critical       |
|                                   | Infrastructure Division          |
+-----------------------------------+----------------------------------+
| Rules, Policies, Regulations      | \(202\) 418-0680                 |
|                                   |                                  |
| Licensing Issues                  |                                  |
|                                   |                                  |
| 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                 |
+-----------------------------------+----------------------------------+
| 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; bidding
credit eligibility; 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.D (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.[^70]

## 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 that relate in any way to the licenses being auctioned,
including any agreements relating to post-auction market structure.[^71]
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.[^72] 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
applications and may not continue discussions with applicants for any of
the same geographic license areas after the deadline.[^73] 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 for licenses in the same geographic license area 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.[^74] 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.

## Eligibility[^75]

### Bidding Credit Eligibility (FCC Form 175 Exhibit C) 

A bidding credit represents the amount by which a bidder's winning bids
are discounted. The size of the bidding credit depends on the average of
the aggregated annual gross revenues for each of the preceding three
years of the bidder, its affiliates, its controlling interests, and the
affiliates of its controlling interests.[^76]

In the *Public Coast* *Third* *Report and Order and Memorandum Opinion
and Order,* the Commission adopted bidding credits to promote and
facilitate the participation of small businesses in auctions of public
coast licenses.[^77] For Auction No. 57, bidding credits will be
available to small businesses or consortia thereof, as follows:

-   A bidder with attributed average annual gross revenues of not more
    than \$15 million for the preceding three years ("small business")
    will receive a 25 percent discount on its winning bids;[^78]

-   A bidder with attributed average annual gross revenues of not more
    than \$3 million for the preceding three years ("very small
    business") will receive a 35 percent discount on its winning
    bids.[^79]

Small business bidding credits are not cumulative; a qualifying
applicant receives the 25 percent or 35 percent bidding credit on its
winning bid, but only one credit per license.

### Tribal Land Bidding Credit

To encourage the growth of wireless services in federally recognized
tribal lands the Commission has implemented a tribal land bidding
credit. *See* Section V.E. of this Public Notice.

### Applicability of Part 1 Attribution Rules

***Controlling interest standard.*** On August 14, 2000, the Commission
released the *Part 1 Fifth Report and Order*, in which the Commission,
*inter alia*, adopted a "controlling interest" standard for attributing
to auction applicants the gross revenues of their investors and
affiliates in determining small business eligibility for future
auctions.[^80] The Commission observed that the rule modifications
adopted in the various Part 1 orders would result in discrepancies
and/or redundancies between certain of the new Part 1 rules and existing
service-specific rules, and the Commission delegated to the Bureau the
authority to make conforming edits to the Code of Federal Regulations
("CFR") consistent with the rules adopted in the Part 1 proceeding.[^81]
More recently, the Commission made further modifications to its rules
governing the attribution of gross revenues for purposes of determining
small business eligibility. These changes included exempting the gross
revenues of the affiliates of a rural telephone cooperative's officers
and directors from attribution to the applicant if certain specified
conditions are met.[^82] The Commission also clarified that in
calculating an applicant's gross revenues under the controlling interest
standard, the personal net worth, including personal income, of its
officers and directors will not be attributed to the applicant.[^83]

Eligibility for small business preferences will be determined based on
the attribution rules in effect at the short-form application
deadline.[^84] *Accordingly, the "controlling interest" standard as
recently modified, and the Part 1 rules that superseded inconsistent
service-specific rules, will control in Auction No. 57.*

***Control.*** The term "control" includes both *de facto* and *de jure*
control of the applicant. Typically, *ownership of at least 50.1 percent
of an entity's voting stock evidences de jure control*. *De facto*
control is determined on a case-by-case basis.[^85] The following are
some common indicia of *de facto* control:

-   the entity constitutes or appoints more than 50 percent of the board
    of directors or management committee;

-   the entity has authority to appoint, promote, demote, and fire
    senior executives that control the day-to-day activities of the
    licensee; or

-   the entity plays an integral role in management decisions.

***Attribution for small business and very small business
eligibility.*** In determining which entities qualify as small
businesses or very small businesses, the Commission will consider the
gross revenues of the applicant, its affiliates, its controlling
interests, and the affiliates of its controlling interests. The
Commission does not impose specific equity requirements on controlling
interest holders. Once the principals or entities with a controlling
interest are determined, only the revenues of those principals or
entities, the affiliates of those principals or entities, and the
applicant and its affiliates, will be counted in determining small
business eligibility.

A consortium of small businesses or very small businesses is a
"conglomerate organization formed as a joint venture between or among
mutually independent business firms," each of which *individually* must
satisfy one of the definitions of small business or very small business
in Section 80.1252.[^86] Thus, each consortium member must disclose its
gross revenues along with those of its affiliates, its controlling
interests, and the affiliates of its controlling interests. We note that
although the gross revenues of the consortium members will not be
aggregated for purposes of determining eligibility for small business or
very small business credits, this information must be provided to ensure
that each individual consortium member qualifies for any bidding credit
awarded to the consortium.

### Supporting Documentation

Applicants should note that they will be required to file supporting
documentation to their FCC Form 175 short-form applications to establish
that they satisfy the eligibility requirements to qualify as small
business or very small business (or consortia of small businesses or
very small businesses) for this auction.[^87]

Applicants should further note that 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.

***Small business or very small business eligibility (Exhibit C).***
Entities applying to bid as small businesses or very small businesses
(or consortia of small businesses or very small businesses) will be
required to disclose on Exhibit C to their FCC Form 175 short-form
applications, *separately and in the aggregate*, the gross revenues for
the preceding three years of each of the following: (1) the applicant,
(2) its affiliates, (3) its controlling interests, and (4) the
affiliates of its controlling interests. **Certification that the
average annual gross revenues for the preceding three years do not
exceed the applicable limit is not sufficient. A statement of the total
gross revenues for the preceding three years is also insufficient. The
applicant must provide separately for itself, its affiliates, its
controlling interests, and the affiliates of its controlling interests,
a schedule of gross revenues for *each* of the preceding three years, as
well as a statement of total average gross revenues for the three-year
period.** If the applicant is applying as a consortium of small
businesses or very small businesses, this information must be provided
for each consortium member.[^88]

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

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 payment for Commission
licenses (including down payments) and not delinquent on any non-tax
debt owed to any Federal agency.[^89] 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.[^90] **Applicants must include this
statement as Exhibit D 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. 57, 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 fifty percent more than the normal upfront
payment amounts.[^91]

## Installment Payments

Installment payment plans will not be available in Auction No. 57.

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

Applicants owned by minorities or women, as defined in 47 C.F.R. §
1.2110(c)(2), may attach an exhibit (Exhibit E) 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 F (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 July 19, 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, change the certifying official, change control of the
applicant, or change bidding credits). *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:
[auction57@fcc.gov]{.underline}. The electronic mail summarizing the
changes must include a subject or caption referring to Auction No. 57.
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 Howard Davenport 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 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. 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, July 1, 2004, the FCC will sponsor a seminar for Auction
No. 57 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, auction conduct, the FCC
Automated Auction System, auction rules, and the AMTS service rules. The
seminar will also provide an opportunity for prospective bidders to ask
questions of FCC staff.

To register, complete the registration form attached hereto as
Attachment B and submit it by Tuesday, June 29, 2004. Registrations are
accepted on a first-come, first-served basis. The seminar is free of
charge.

## Short-Form Application (FCC Form 175) --- Due July 19, 2004

In order to be eligible to bid 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 July 19, 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.[^92] Applications may generally be filed at any time
beginning at noon ET on July 1, 2004, until 6:00 p.m. ET on July 19,
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 July 19, 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 a.m. to 6:00 p.m. ET. However, because the
Initial application filing window for Auction 57 closes on Monday, July
19, the FCC will provide Technical Support on Saturday, July 17, and
Sunday, July 18, from 9:00 a.m. to 5:00 p.m. 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 July 19,
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, change the certifying official, change
control of the applicant, or change bidding credit eligibility).[^93]

## Upfront Payments --- Due August 20, 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 August 20, 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. 57 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 August 20, 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 August 20,
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 \# 910-1182
>
> 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: A57U)
>
> FCC CODE 1 (same as FCC Form 159, block 28A: "57")
>
> PAYER NAME (same as FCC Form 159, block 2)
>
> LOCKBOX NO. \# 358415

**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. 57." 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.[^94] **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 to accompany each upfront payment. Proper
completion of FCC Form 159 (Revised 2/03) is critical to ensuring
correct crediting 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.[^95] 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."[^96] 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*).[^97]

In the *Auction No. 57 Comment Public Notice*, we proposed that the
amount of the upfront payment would determine the number of bidding
units on which a bidder may place bids.[^98] 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. 57 Comment Public Notice*, the Bureau proposed
upfront payments on a license-by-license basis using the following
formula:

\$0.0075 \* MHz \* License Area Population[^99] with a minimum of
\$1,000 per license.[^100]

Havens and Mobex each recommend that upfront payments be reduced. Havens
recommends that these payments should be reduced by 50% due to the
relative value of adjacent spectrum, and that population incumbency
factors be used in the upfront formula on a license-by-license basis.

We note that we are not persuaded by the argument that adjacent spectrum
values are necessarily an indicator of appropriate upfront payment
levels for licenses with different service rules and geographical
licensing schemes. Additionally, after careful consideration, we reject
the application of a license-by-license incumbency factoring of upfront
payments. Nevertheless, upon re-examination of the proposed upfront
payment formula, we exercise our discretion to modify it as follows:

\$0.005 \* MHz \* License Area Population[^101] with a minimum of
\$1,000 per license.

The revised formula cuts by one-third the initial proposal for upfront
payments. The specific upfront payments and bidding units for each
license are set forth in Attachment A of this Public Notice.

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 a bidder's maximum eligibility after the
upfront payment deadline.**

  -------------------- ----------- --------------- -------------- ----------------
  **Example: Upfront                                              
  Payments and Bidding                                            
  Flexibility**                                                   

  **Market Number**    **Block**   **Market Name** **Bidding      **Upfront
                                                   Units**        Payment**

  AMT008               A           Hawaii          6,100          \$6,100

  AMT009               A           Alaska          3,100          \$3,100

  If a bidder wishes                                              
  to bid on both                                                  
  licenses in a round,                                            
  it must have                                                    
  selected both on its                                            
  FCC Form 175 and                                                
  purchased at least                                              
  9,200 bidding units                                             
  (6,100 + 3,100). If                                             
  a bidder only wishes                                            
  to bid on one, but                                              
  not both, purchasing                                            
  6,100 bidding units                                             
  would meet the                                                  
  requirement for                                                 
  either license. The                                             
  bidder would be able                                            
  to bid on either                                                
  license, [but not                                               
  both at the same                                                
  time]{.underline}.                                              
  If the bidder                                                   
  purchased only 3,100                                            
  bidding units, it                                               
  would have enough                                               
  eligibility for the                                             
  Alaska license but                                              
  not for the Hawaii                                              
  license.                                                        
  -------------------- ----------- --------------- -------------- ----------------

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.

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

The Commission will use wire transfers for all Auction No. 57 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, at (202) 418-2843
by August 20, 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.

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.G., *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, September 8, 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 be available as well. 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. 57. The telephonic bidding
phone number will be supplied in the first overnight mailing, which also
includes the confidential bidder identification number.

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, September 10, 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. 57 will begin on Wednesday,
September 15, 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. 57 Comment Public Notice*, we proposed to award all
licenses in Auction No. 57 in a simultaneous multiple round
auction.[^102] Haven's supports this auction design.[^103] We conclude
that it is operationally feasible and appropriate to auction the AMTS
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
synergies that exist among licenses and is administratively efficient.

### Maximum Eligibility and Activity Rules 

In the *Auction No. 57 Comment Public Notice*, we 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.[^104] We received no comments on this issue.

For Auction No. 57 we adopt this proposal. The amount of the upfront
payment submitted by a bidder determines the 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, applicants 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. 57.

### Auction Stages

In the *Auction No. 57 Comment Public Notice*, we proposed to conduct
the auction in two stages and employ an activity rule. We further
proposed that, in each round of Stage One, a bidder desiring to maintain
its current eligibility would be required to be active on licenses
encompassing at least 80 percent of its current bidding
eligibility.[^105] Finally, we proposed that in each round of Stage Two,
a bidder desiring to maintain its current eligibility would be required
to be active on at least 95 percent of its current bidding eligibility.
We received no comments on this proposal.

We adopt our proposals for the activity rules and stages. Below are the
activity levels for each stage of the auction. The Bureau 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 encompassing at least 80 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 five-fourths (5/4).

**Stage Two:** During the second stage of the auction, a bidder desiring
to maintain its current eligibility is required to be active on 95
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 twenty-nineteenths (20/19).

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. 57.

### Stage Transitions

In the *Auction No. 57 Comment Public Notice*, we proposed that the
auction would generally advance to the next stage (*i.e.*, from Stage
One to Stage Two) when the auction activity level, as measured by the
percentage of bidding units receiving new high bids, is below 20 percent
for three consecutive rounds of bidding in each Stage. We further
proposed that the Bureau would retain the discretion to change stages
unilaterally by announcement during the auction. This determination, we
proposed, 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.[^106] We received no comments on this issue.

We adopt our proposal. Thus, the auction will start in Stage One and
will generally advance to the next stage (*i.e.*, from Stage One to
Stage Two) when, in each of three consecutive rounds of bidding, the
high bid has increased on 20 percent or less of the licenses being
auctioned (as measured in bidding units). 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,[^107] the number of new bids, and the
percentage increase in revenue. We believe that these stage transition
rules, having proven successful in prior auctions, are appropriate for
use in Auction No. 57.

### Activity Rule Waivers and Reducing Eligibility

In the *Auction No. 57 Comment Public Notice*, we 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.[^108] We received no comments on this issue.

Based upon our experience in previous auctions, **we adopt our 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 our practice of
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 further bidding in 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 *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. 57, the Bureau proposed to employ a simultaneous
stopping rule.[^109] The Bureau 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 Bureau further proposed retaining 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, we 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. We proposed to exercise this option only in
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.[^110] Before exercising this option, 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.

We received no comments concerning the auction stopping rules; therefore
we adopt the above proposals. Auction No. 57 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. 57, 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. 57 Comment Public Notice*, we 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.[^111]

Because our approach to notification of delay during an auction has
proven effective in resolving exigent circumstances in previous
auctions, we adopt our 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 schedule of bidding rounds 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.[^112] 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.[^113] Among
other factors, the Bureau must consider the amount of spectrum being
auctioned, levels of incumbency, the availability of technology to
provide service, the size of the geographic service areas, the extent of
interference with other spectrum bands, and any other relevant factors
that could have an impact on the spectrum being auctioned.[^114] The
Commission concluded that the Bureau should have the discretion to
employ either or both of these mechanisms for future auctions.[^115]

In the *Auction No. 57 Comment Public Notice*, the Bureau proposed to
establish minimum opening bids for Auction No. 57 and to retain
discretion to lower the minimum opening bids.[^116] Specifically, for
Auction No. 57, the Bureau proposed the following license-by license
formula for calculating minimum opening bids:

\$0.0075 \* MHz \* License Area Population[^117] with a minimum of
\$1,000 per license.[^118]

In the alternative, the Bureau 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.[^119]

Two parties submitted comments with respect to minimum opening bids. In
his comments, Havens recommends a 50% reduction of minimum opening bids.
Moreover, Havens recommends that population incumbency factors be used
in the minimum opening bid formula on a license-by-license basis. In
reply comments, Mobex also asserts that minimum opening bid levels are
too high based on high incumbency levels. Mobex also compares results
from the Multichannel Video Distribution and Data Service auction
(Auction No. 53) and minimum opening bids for the 24 GHz Service auction
(Auction No. 56) as comparative rationale for lowering the minimum
opening bids for this auction.

We note that we are not persuaded by the argument that adjacent spectrum
values are necessarily an indicator of appropriate minimum opening bid
levels for licenses with different service rules and geographical
licensing schemes. Additionally, we reject the application of a
license-by-license incumbency factoring of minimum opening bids.
Nevertheless, upon re-examination of the proposed minimum opening bid
formula, we exercise our discretion to modify it as follows:

\$0.005 \* MHz \* License Area Population[^120] with a minimum of
\$1,000 per license.

The revised formula cuts by one-third the initial proposal for minimum
opening bids.

The minimum opening bids we adopt for Auction No. 57 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 requests to reduce the minimum opening bid on
specific licenses.

The specific minimum opening bids for each license available in Auction
No. 57 are set forth in Attachment A.

### Minimum Acceptable Bids and Bid Increments 

In the *Auction No. 57 Comment Public Notice*, we proposed to use a
smoothing methodology to calculate minimum acceptable bids.[^121] The
smoothing methodology is designed to vary the increment for a given
license between a maximum and minimum percentage based on the bidding
activity on that license. This methodology allows the increments to be
tailored to the activity on a license, decreasing the time it takes for
licenses receiving many bids to reach their final prices. The formula
used to calculate this increment is included as Attachment F. We
proposed to initially set the weighting factor at 0.5, the minimum
percentage increment at 0.1 (10%), and the maximum percentage increment
at 0.2 (20%). Hence, at these initial settings, the percentage increment
will fluctuate between 10% and 20% depending upon the number of bids for
the license. We further proposed to retain the discretion to change the
minimum acceptable bids and bid increments if circumstances so
dictate.[^122] We received no comment on this issue.

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.[^123] 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 in Attachment F. 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 in Attachment F, 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
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,[^124] 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 are counted as activity for purposes of
the activity rule.[^125]

In the *Auction No. 57 Comment Public Notice*, the Bureau 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).[^126] No comments were received on this proposal. Therefore, the
Bureau adopts its proposal. A Sybase® SQL pseudo-random number generator
based on the L'Ecuyer algorithms will be used to assign a random number
to each bid.[^127] 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 previous
bidding rounds, 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, five to ten minutes are necessary to complete a bid
submission). There will be no on-site bidding during Auction No. 57.

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 function 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 password 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.[^128] 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 and a Type Bids function that allows bidders
to enter specific licenses for filtering.

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 are cautioned to select their bid amounts carefully
because, as explained in the following section, bidders that withdraw a
standing high bid from a previous round, even if the bid was mistakenly
or erroneously made, are subject to bid withdrawal payments.

### Bid Removal and Bid Withdrawal

In the *Auction No. 57 Comment Public Notice*, the Commission proposed
bid removal and bid withdrawal procedures.[^129] With respect to bid
withdrawals, the Commission proposed limiting each bidder to withdrawals
in no more than two rounds during the course of the auction. The two
rounds in which withdrawals are used would be at the bidder's
discretion. We received no comments on this issue.

**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 toward bidding activity. These
procedures will enhance bidder flexibility during the auction, and
therefore we adopt them for Auction No. 57.

Once a round closes, a bidder may no longer remove a bid. However, in
later rounds, a bidder may withdraw standing high bids from previous
rounds 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. 57, adoption of a limit on the use of withdrawals to two
rounds 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 two rounds. These rounds will be at the
bidder's discretion and there will be no limit on the number of bids
that may be withdrawn in either of these rounds. 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 market.

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.[^130] 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.[^131] 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).[^132] 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).[^133] 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.[^134] 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.[^135]

### 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. 57 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.G., 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:
[auction57@fcc.gov](mailto:auction82@fcc.gov). The electronic mail
summarizing the changes must include a subject or caption referring to
Auction No. 57. 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 Howard Davenport 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 and identifying winning bidders, down
payments, final 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. 57 to 20 percent of the net amount of its
winning bids (gross bids less any applicable small business or very
small business bidding credits). 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 the net
amount of its winning bids within 10 business days after the deadline
for submitting down payments.

## Long-Form Application (FCC Form 601)

Within ten business days after release of the auction closing notice,
winning bidders must electronically submit a properly completed
long-form application (FCC Form 601) and required exhibits for each
license won through Auction No. 57. Winning bidders that are small
businesses or very small businesses must include an exhibit
demonstrating their eligibility for small business or very small
business bidding credits. *See* 47 C.F.R. § 1.2112(b). Further filing
instructions will be provided to auction winners at the close of the
auction.

## Ownership Disclosure Information Report (FCC Form 602)

At the time it submits its long-form application (FCC Form 601), each
winning bidder also must comply with the ownership reporting
requirements as set forth in 47 C.F.R. §§ 1.913, 1.919, and 1.2112. We
remind applicants that effective December 10, 2002, electronic filing of
the Ownership Disclosure Information Report (FCC Form 602) became
mandatory.[^136] Accordingly, forms filed manually will not be accepted.
Winning bidders without a current Form 602 already on file with the
Commission must submit a properly completed Form 602 at the time they
submit their long-form applications. Further filing instructions will be
provided to auction winners at the close of the auction.

## Tribal Land Bidding Credit

A winning bidder that intends to use its license(s) to deploy facilities
and provide services to federally recognized tribal lands that are
unserved by any telecommunications carrier or that have a telephone
service penetration rate equal to or below 70 percent is eligible to
receive a tribal land bidding credit as set forth in 47 C.F.R. §§ 1.2107
and 1.2110(f).[^137] A tribal land bidding credit is in addition to, and
separate from, any other bidding credit for which a winning bidder may
qualify.

Unlike other bidding credits that are requested prior to the auction, a
winning bidder applies for the tribal land bidding credit *after*
winning the auction when it files its long-form application (FCC Form
601). When filing the long-form application, the winning bidder will be
required to advise the Commission whether it intends to seek a tribal
land bidding credit, for each market won in the auction, by checking the
designated box(es). After stating its intent to seek a tribal land
bidding credit, the applicant will have 180 days from the close of the
long-form filing window to amend its application to select the specific
tribal lands to be served and provide the required tribal government
certifications. Licensees receiving a tribal land bidding credit are
subject to performance criteria as set forth in 47 C.F.R. §
1.2110(f)(3)(vi).[^138]

For additional information on the tribal land bidding credit, including
how the amount of the credit is calculated, applicants should review the
Commission's rule making proceeding regarding tribal land bidding
credits and related public notices.[^139] Relevant documents can be
viewed on the Commission's web site by going to
[http://wireless.fcc.gov/auctions](http://www.fcc.gov/wtb/auctions) and
clicking on the *Tribal Land Credits* link.

## 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.[^140] 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.[^141]

## Refund of Remaining Upfront Payment Balance

All applicants that submit upfront payments but are not winning bidders
for a license in Auction No. 57 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 the
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

445 12th Street, SW, Room 1-C864

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.

**Media Contact:**

For press inquiries: Lauren Patrich at (202) 418-7944

**Auctions and Spectrum Access Division:**

For legal questions: Howard Davenport at (202) 418-0660

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

**Public Safety and Critical Infrastructure Division:**

For legal questions: Roberto Mussenden at (202) 418-0680

For technical questions: Ghassan Khalek at (202) 418-0680

# Attachment A

PLACE HOLDER

# attachment B

FCC AUCTION SEMINAR REGISTRATION FORM

Auction No. 57

The FCC will sponsor a one-day seminar for Auction No. 57 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, July 1, 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, June 29, 2004, by fax to:

FCC Auction 57

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. 57 Seminar, scheduled for Thursday,
July 1, 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
Monday, July 19, 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:

```{=html}
<!-- -->
```
-   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. However, because the initial
application filing window for Auction 57 closes on Monday, July 19, the
FCC will provide Technical Support on Saturday, July 17, and Sunday,
July 18, from 9:00 a.m. to 5:00 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, so
that the FCC can monitor its performance in promoting economic
opportunities for these designated entities.

**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:** Applicants that qualify for a small
business or very small business bidding credit must select the
applicable bidding credit (25 percent or 35 percent) in the bidding
credit eligibility item on the Form 175. Applicants are advised that
this is the sole opportunity applicants have to elect small business
status and bidding credit level (if applicable). There is no opportunity
to change the election once the short-form filing deadline passes on
July 19, 2004.

**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 July 19, 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. Each member of an applicant applying to bid as a small
business consortium must provide this information. 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 -- Status as a Small Business or Very Small Business**:
Applicants claiming status as a small business or very small business
must attach an exhibit providing the following information regarding
this status.

+----------------------+--------------------+-------------------------+
| ***Entity***         | ***Required        |                         |
|                      | Information***     |                         |
+======================+====================+=========================+
| Applicant            | Annual gross       |                         |
|                      | revenues for the   |                         |
|                      | preceding three    |                         |
|                      | years set forth    |                         |
|                      | *both separately*  |                         |
|                      | (*e.g.*, for each  |                         |
|                      | of the preceding   |                         |
|                      | three years        |                         |
|                      | individually) *and |                         |
|                      | as an average*     |                         |
|                      | (for all of the    |                         |
|                      | preceding three    |                         |
|                      | years combined).   |                         |
|                      | Certification that |                         |
|                      | the average of the |                         |
|                      | aggregated annual  |                         |
|                      | gross revenues for |                         |
|                      | the preceding      |                         |
|                      | three years do not |                         |
|                      | exceed the         |                         |
|                      | required limit, or |                         |
|                      | providing average  |                         |
|                      | gross revenues for |                         |
|                      | the 3-year period  |                         |
|                      | without providing  |                         |
|                      | the gross revenues |                         |
|                      | for each of the    |                         |
|                      | preceding three    |                         |
|                      | years, is          |                         |
|                      | insufficient.      |                         |
+----------------------+--------------------+-------------------------+
| Applicant's          | Same information   |                         |
| Affiliates           | required as        |                         |
|                      | discussed above.   |                         |
| *See* 47 CFR §§      |                    |                         |
| 1.2110, 1.2112.      |                    |                         |
+----------------------+--------------------+-------------------------+
| Applicant's          | Same information   |                         |
| Controlling          | required as        |                         |
| Interests *See* 47   | discussed above.   |                         |
| CFR §§ 1.2110,       |                    |                         |
| 1.2112.              |                    |                         |
+----------------------+--------------------+-------------------------+
|                      | *Example.* The     |                         |
|                      | applicant had      |                         |
|                      | gross revenues of  |                         |
|                      | \$500,000 in 2001, |                         |
|                      | \$1,000,000 in     |                         |
|                      | 2002, and          |                         |
|                      | \$3,000,000 in     |                         |
|                      | 2003, with average |                         |
|                      | gross revenues for |                         |
|                      | that time period   |                         |
|                      | of \$1,500,000.    |                         |
|                      | The applicant owns |                         |
|                      | 60% of Company A,  |                         |
|                      | making Company A   |                         |
|                      | an affiliate of    |                         |
|                      | the applicant      |                         |
|                      | under Section      |                         |
|                      | 1                  |                         |
|                      | .2110(c)(5)(i)(B). |                         |
|                      | Company B owns 52% |                         |
|                      | of the applicant,  |                         |
|                      | making Company B a |                         |
|                      | controlling        |                         |
|                      | interest of the    |                         |
|                      | applicant, as      |                         |
|                      | defined in Section |                         |
|                      | II.C.3 of this     |                         |
|                      | public notice.     |                         |
|                      | Company B owns     |                         |
|                      | 100% of Company C, |                         |
|                      | making Company C   |                         |
|                      | an affiliate of    |                         |
|                      | the applicant's    |                         |
|                      | controlling        |                         |
|                      | interest, under    |                         |
|                      | Section            |                         |
|                      | 1                  |                         |
|                      | .2110(c)(5)(i)(C). |                         |
|                      | The applicant's    |                         |
|                      | Exhibit C would    |                         |
|                      | look like this:    |                         |
+----------------------+--------------------+-------------------------+
|                      | Applicant Name     |                         |
+----------------------+--------------------+-------------------------+
|                      | 2001 gross         | \$ 500,000              |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2002 gross         | \$ 1,000,000            |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2003 gross         | \$ 3,000,000            |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | Average gross      | \$ 1,500,000            |
|                      | revenues for the   |                         |
|                      | preceding 3 years  |                         |
+----------------------+--------------------+-------------------------+
|                      | Company A (an      |                         |
|                      | affiliate of the   |                         |
|                      | applicant)         |                         |
+----------------------+--------------------+-------------------------+
|                      | 2001 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2002 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2003 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | Average gross      | \$ enter amount         |
|                      | revenues for the   |                         |
|                      | preceding 3 years  |                         |
+----------------------+--------------------+-------------------------+
|                      | Company B (a       |                         |
|                      | controlling        |                         |
|                      | interest in the    |                         |
|                      | applicant)         |                         |
+----------------------+--------------------+-------------------------+
|                      | 2001 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2002 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2003 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | Average gross      | \$ enter amount         |
|                      | revenues for the   |                         |
|                      | preceding 3 years  |                         |
+----------------------+--------------------+-------------------------+
|                      | Company C (an      |                         |
|                      | affiliate of the   |                         |
|                      | applicant's        |                         |
|                      | controlling        |                         |
|                      | interest)          |                         |
+----------------------+--------------------+-------------------------+
|                      | 2001 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2002 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2003 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | Average gross      | \$ enter amount         |
|                      | revenues for the   |                         |
|                      | preceding 3 years  |                         |
+----------------------+--------------------+-------------------------+

**NOTE:** Each member of an applicant that is applying to bid as a
consortium of small or very small businesses must provide this
information and qualify for the claimed status.

**Exhibit D -- Information Required of All Applicants Regarding Prior
Defaults and Prior Delinquencies:** Each applicant must include at
Exhibit D a statement made under penalty of perjury indicating whether
the applicant, its affiliates, its controlling interests, or the
affiliates of its controlling interests 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 E -- 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 F -- Miscellaneous Information**: Applicants wishing to submit
additional information should also include it in Exhibit F.

**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:** Section 1.65 of the Commission\'s rules
requires an applicant to maintain the accuracy and completeness of
information furnished in its pending FCC Form 175 short-form application
and exhibits and to notify the Commission within 30 days of any
substantial change that may be of decisional significance to that
application. Applicants are reminded that they consent to be audited in
the certification section of the FCC Form 175 (see certification item
number 6).

Any notice summarizing any changes should be sent by electronic mail to
[auction57@fcc.gov](mailto:auction55@fcc.gov). The electronic mail must
include a subject or caption referring to Auction No. 57. The Bureau
requests that parties format any attachments to electronic mail as
Adobe^®^ Acrobat^®^ (pdf) or Microsoft^®^ Word documents.

**A separate copy of the notice of any changes should be faxed to the
attention of Kathryn Garland at (717) 338-2850.**

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:
[auction57@fcc.gov](mailto:auction55@fcc.gov), in which case the
applicant must indicate in Exhibit F 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.

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.[^142]

# 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. 57.
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 "358415"
>
> 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).
>
> 24A Payment Type Code - Enter "A57U"
>
> 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 "57" (indicating Auction No. 57).

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
    21 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

Minimum Acceptable Bids, Bid Increments, and the Smoothing Formula

The FCC Automated Auction System calculates the minimum acceptable bids
and bid increments for each license with a standing high bid in each
round of the auction based on all bidding activity for the license. For
this auction, the Commission will use a standard smoothing methodology
to calculate minimum acceptable bids and bid increments.

The smoothing formula calculates minimum acceptable bids by first
calculating a *percentage increment*, not to be confused with the *bid
increment*, for each license based on a weighted average of the activity
received on each license in all previous rounds. This methodology
tailors the percentage increment for each license based on activity,
rather than setting a global increment for all licenses.

In a given round, the calculation of the percentage increment for each
license is made at the end of the previous round. The computation is
based on an activity index, which is calculated as the weighted average
of the activity in that round and the activity index from the prior
round. The activity index at the start of the auction (round 0) will be
set at 0. The current activity index is equal to a weighting factor
times the number of new bids received on the license in the most recent
bidding round plus one minus the weighting factor times the activity
index from the prior round. The activity index is then used to calculate
a percentage increment by multiplying a minimum percentage increment by
one plus the activity index with that result being subject to a maximum
percentage increment. The Commission will initially set the weighting
factor at 0.5, the minimum percentage increment at 0.1 (10%), and the
maximum percentage increment at 0.2 (20%).

Equations

A~i~ = (C \* B~i~) + ( (1-C) \* A~i-1~)

I~i+1~ = smaller of ( (1 + A~i~) \* N) and M

X ~i+1~ = I~i+1~ \* Y~i~

where,

A~i~ = activity index for the current round (round i)

C = activity weight factor

B~i~ = number of bids in the current round (round i)

A~i-1~ = activity index from previous round (round i-1), A~0~ is 0

I~i+1~ = percentage increment for the next round (round i+1)

N = minimum percentage increment or percentage increment floor

M = maximum percentage increment or percentage increment ceiling

X ~i+1~ = dollar amount associated with the percentage increment

Y~i~ = high bid from the current round

Under the smoothing methodology, once a bid has been received on a
license, the minimum acceptable bid for that license in the following
round will be the high bid from the current round plus the dollar amount
associated with the percentage increment, with the result rounded to the
nearest thousand if it is over ten thousand, to the nearest hundred if
it is under ten thousand but over one thousand, or to the nearest ten if
it is below one thousand.

Examples

License 1

C=0.5, N = 0.1, M = 0.2

[Round 1 (2 new bids, high bid = \$1,000,000)]{.underline}

1\. Calculation of percentage increment for round 2 using the smoothing
formula:

A~1~ = (0.5 \* 2) + (0.5 \* 0) = 1

I~2~ = The smaller of ( (1 + 1) \* 0.1) = 0.2 or 0.2 (the maximum
percentage increment)

2\. Calculation of dollar amount associated with the percentage
increment for round 2 (using I~2~ from above):

X~2~ = 0.2 \* \$1,000,000 = \$200,000

3\. Minimum acceptable bid for round 2 = \$1,200,000

[Round 2 (3 new bids, high bid = \$2,000,000)]{.underline}

1\. Calculation of percentage increment for round 3 using the smoothing
formula:

A~2~ = (0.5 \* 3) + (0.5 \* 1) = 2

I~3~ = The smaller of ( (1 + 2) \* 0.1) = 0.3 or 0.2 (the maximum
percentage increment)

2\. Calculation of dollar amount associated with the percentage
increment for round 3 (using I~3~ from above):

X~3~ = 0.2 \* \$2,000,000 = \$400,000

3\. Minimum acceptable bid for round 3 = \$2,400,000

[Round 3 (1 new bid, high bid = \$2,400,000)]{.underline}

1\. Calculation of percentage increment for round 4 using the smoothing
formula:

A~3~ = (0.5 \* 1) + (0.5 \* 2) = 1.5

I~4~ = The smaller of ( (1 + 1.5) \* 0.1) = 0.25 or 0.2 (the maximum
percentage increment)

2\. Calculation of dollar amount associated with the percentage
increment for round 4 (using I~4~ from above):

X~4~ = 0.2 \* \$2,400,000 = \$480,000

3\. Minimum acceptable bid for round 4 = \$2,880,000

As stated above, until a bid has been placed on a license, the minimum
acceptable bid for that license will be equal to its minimum opening
bid. The additional bid amounts are calculated using the difference
between the minimum opening bid times one plus the minimum percentage
increment, rounded as described above, and the minimum opening bid. That
is, I = (minimum opening bid)(1 + N){rounded}- (minimum opening bid).
Therefore, when N equals 0.1, the first additional bid amount will be
approximately ten percent higher than the minimum opening bid; the
second, twenty percent; the third, thirty percent; etc.

In the case of a license for which the standing high bid has been
withdrawn, 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.

# ATTACHMENT G

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 17,546 (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 Judgments 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* Amendment of the Commission's Rules Concerning Maritime
    Communications, *Second Memorandum Opinion and Order and Fifth
    Report and Order*, PR Docket No. 92-257, 17 FCC Rcd 6685, 6686-87 ¶
    2 (2002) ("*Public Coast* *Second Memorandum Opinion and Order and
    Fifth Report and Order*"); Amendment of the Commission's Rules
    Concerning Maritime Communications, *Public Coast* *Third Memorandum
    Opinion and Order*, PR Docket No. 92-257, 18 FCC Rcd 24,391,(2003).

[^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").

[^3]: *See* Automated Maritime Telecommunications System Spectrum
    Auction Scheduled for September 15, 2004; Comment Sought on Reserve
    Prices or Minimum Opening Bids and Other Auction Procedures, *Public
    Notice*, DA 04-954 (rel. April 5, 2004) ("*Auction No. 57 Comment
    Public Notice*"). 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).

[^4]: Comments were filed on April 23, 2004, by Mobex Communications,
    Inc. ("Mobex") and Warren C. Havens ("Havens"). Reply Comments were
    filed on April 30, 2004, by Paging Systems, Inc. ("PSI"), Mobex, and
    Havens. Additionally, Havens filed Further Comments Ex Parte on May
    20, 2004. The Comments, Reply Comments and Futher Comments Ex Parte
    concerned Upfront Payments, Auction Structure, and Bidding
    Procedures, and are addressed within those respective sub-sections
    of this public notice, *infra*.

[^5]: For a fuller description of the Maritime Services, *see* Amendment
    of the Commission's Rules Concerning Maritime Services, *Second
    Report and Order and Second Further Notice of Proposed Rule Making*,
    12 FCC Rcd 16,949, 16,953-56 ¶¶ 4-9 (1997) ("*Second Report and
    Order and Second Further Notice*").

[^6]: *See* Amendment of Parts 2, 81 and 83 of the Commission\'s Rules
    to Allocate Spectrum for an Automated Inland Waterways
    Communications System (IWCS) Along the Mississippi River and
    Connecting Waterways, *Report and Order*, GEN Docket No. 80-1, 84
    FCC 2d 875, 876 ¶ 2, on reconsideration, *Memorandum Opinion and
    Order*, GEN Docket No. 80-1, 88 FCC 2d 678 (1981), *aff\'d sub
    nom*., WJG Tel. Co. v. FCC, 675 F.2d 386 (D.C. Cir. 1982).

[^7]: *Public Coast* *Second Report and Order and Second Further
    Notice*, 12 FCC Rcd at 17,004 ¶ 111.

[^8]: *See* 47 U.S.C. § 309(j) (1996).

[^9]: *See Public Coast* *Second Report and Order and Second Further
    Notice*, 12 FCC Rcd at 17,011 ¶ 123 (citing Implementation of
    Sections 3(n) and 332 of the Communications Act \-- Regulatory
    Treatment of Mobile Services, *Second Report and Order*, 9 FCC Rcd
    1411, 1448 (1994)).

[^10]: *See* Amendment of the Commission\'s Rules Concerning Maritime
    Communications, *Public Coast* *Third Report and Order and
    Memorandum Opinion and Order*, 13 FCC Rcd 19,853, 19,881 ¶ 59 (1998)
    (*Public Coast* *Third Report and Order*) (citing *Second Report and
    Order and Second Further Notice*, 12 FCC Rcd at 17,011 (citing
    Implementation of Section 309(j) of the Communications Act \--
    Competitive Bidding, *Second Report and Order*, 9 FCC Rcd 2348,
    2356-57 (1994) (*Competitive Bidding Second Report and Order*))).

[^11]: Balanced Budget Act, Pub. L. No. 105-33, 111 Stat. 251.

[^12]: 47 U.S.C. § 309(j) (as amended by Balanced Budget Act, § 3002).

[^13]: *Public Coast* *Second Report and Order and Second Further
    Notice*, 12 FCC Rcd at 16,965 ¶ 25.

[^14]: *Public Coast* *Second Memorandum Opinion and Order and Fifth
    Report and Order*, 17 FCC Rcd 6685, at 6695-99 ¶¶ 21-29. AMTSAs are
    based on, and composed of one or more of, the U.S Department of
    Commerce\'s 172 Economic Areas (EAs). In addition, the Commission
    treats Puerto Rico, the United States Virgin Islands, and the Gulf
    of Mexico as EA-like areas. Maps of the EAs and AMTSAs are available
    for public inspection and copying at the Federal Communications
    Commission, Public Safety and Critical Infrastructure Division, 445
    12th Street, S.W., Room 4-C330, Washington, D.C. Each AMTSA also
    includes the adjacent waters under the jurisdiction of the United
    States. *Id*.

[^15]: *Id*.

[^16]: *Id.* at 6695 ¶ 21. Although the Commission adopted the Part 1
    rules for AMTS in 2002, the Commission had tentatively concluded in
    2000 that these rules were appropriate for AMTS. Amendment of the
    Commission's Rules Concerning Maritime Communications, *Fourth
    Report and Order and Third Further Notice of Proposed Rule Making*,
    15 FCC Rcd 22,585, 22,620-21 ¶ 75 (2000) (*Public Coast* *Fourth
    Report and Order and Third Further Notice of Proposed Rule
    Making*").

[^17]: *Auction No. 57 Comment Public Notice*, DA 04-954.

[^18]: *See* 47 C.F.R. § 80.385; *Public Coast* *Second Memorandum
    Opinion and Order and Fifth Report and Order*, 17 FCC Rcd at 6738,
    Appendix D.

[^19]: *Auction No. 57 Comment Public Notice*, DA 04-954; *Public Coast*
    *Second Memorandum Opinion and Order and Fifth Report and Order*, 17
    FCC Rcd 6685; *Public Coast* *Fourth Report and Order and Third
    Further Notice of Proposed Rule Making*, 15 FCC Rcd 22,585.

[^20]: 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 15,293 (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 17,546 (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 10,180 (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).

[^21]: 47 C.F.R. § 1.2105(a)(2)(viii); 47 C.F.R. § 1.2105(c)(1). *See
    also* *Part 1 Seventh Report and Order,* 16 FCC Rcd 17,546 (2001);
    *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15,297-98, ¶¶ 7-8.

[^22]: 47 C.F.R. § 1.2105(c)(1).

[^23]: 47 C.F.R. § 1.2105(c)(7)(i).

[^24]: *See* 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 11,973, 11,977, ¶ 11 (1998).

[^25]: *See id*. at 11,978.

[^26]: 47 C.F.R. § 1.2105(c)(2) & (3).

[^27]: 47 C.F.R. § 1.2105(c).

[^28]: *See* Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules, *Public Notice*, 11 FCC Rcd 9645
    (1995).

[^29]: 47 C.F.R. § 1.65.

[^30]: 47 C.F.R. § 1.2105(c)(6); *see also* *Part 1* *Seventh Report and
    Order*, 16 FCC Rcd at 17,555, ¶ 17.

[^31]: 47 C.F.R. § 1.2107(d).

[^32]: *See* 47 C.F.R. § 1.2109(d).

[^33]: *Id.*

[^34]: As proposed in the *Public Coast* *Third Further Notice*,
    expanding an incumbent system's contour over water only
    (disregarding uninhabited islands) shall not be deemed to extend the
    system's service area. Such an expansion shall not reduce the area
    that can be served by the geographic area licensee because the
    geographic licensee would not be able to service the additional
    water area without causing interference to areas served by the
    incumbent.

[^35]: *See* 47 C.F.R. § 80.215(h)(4), 80.385(a)(2).

[^36]: *See* 47 C.F.R. § 80.475.

[^37]: *See* 47 C.F.R. § 80.475(a)(2).

[^38]: Prospective bidders should see the Part 80 Rules pertinent to
    AMTS, including, but not limited to, Sections 80.215, 80.385, and
    80.475-80.481, and the Commission Orders in PR Docket No. 92-257,
    *e.g.*, *Public Coast* *Fourth Report and Order and Third Further
    Notice of Proposed Rule Making; Public Coast* *Second Memorandum
    Opinion and Order and Fifth Report and Order*; and *Third Memorandum
    Opinion and Order*.

[^39]: *Amendment of Parts 2 and 80 of the Commission\'s Rules
    Applicable to Automated Maritime Telecommunications Systems (AMTS),*
    First Report and Order, RM-5712, 6 FCC Rcd 437, 437 (1991) ("*AMTS
    First Report and Order*").

[^40]: 47 C.F.R. § 80.475(a).

[^41]: The Commission conducted a study to analyze the interference
    potential from AMTS systems to TV reception. *See* R. Eckert,
    *Guidance for Evaluating the Potential for Interference to TV from
    Stations of Inland Waterways Communications Systems*, FCC/OST TM82-5
    (July 1982). This report is a model for applicants to use in
    performing any required engineering analysis of potential
    interference, including determination of interference contours.
    *AMTS First Report and Order*, 6 FCC Rcd at 437.

[^42]: 47 C.F.R. § 80.475(a).

[^43]: 47 C.F.R. § 80.215(h)(4).

[^44]: "Fill-in" stations are stations that do not expand the
    interference contour of the system as a whole. *See* Implementation
    of Sections 3(n) and 332 of the Communications Act, *Further Notice
    of Proposed Rule Making*, 9 FCC Rcd 2863, 2873-74 (1994).

[^45]: 47 C.F.R. § 80.475(b).

[^46]: 47 C.F.R. § 80.215(h).

[^47]: The SPASUR radar system is located in the southern United States
    and consists of three high-power transmitter locations and six
    receiver locations. Amendment of the Commission\'s Rules Concerning
    Low Power Radio and Automated Maritime Telecommunications System
    Operations in the 216-217 MHz Band, *Report and Order*, 11 FCC Rcd
    18,517, 18,519 (1996) (*LPRS Report and Order*).

[^48]: 47 C.F.R. § 80.385(a)(2).

[^49]: *See* Call Sign WPNV955 (available in the Commission's Universal
    Licensing System at http://wireless.fcc.gov/uls/).

[^50]: 47 C.F.R. § 80.385(a)(3).

[^51]: *Amendment of the Commission\'s Rules to Establish Part 27, the
    Wireless Communications Service (\"WCS\"),* Report and Order, GN
    Docket No. 96-228, 12 FCC Rcd. 10,785, 10,814, ¶ 59.

[^52]: *See*, *e.g.*, RM-10743, Petitions for Rule Making to amend the
    Commission's Rules to provide additional flexibility for AMTS and
    VHF Public Coast Station licensees.

[^53]: *See*, *e*.*g*., *Havens v. FCC*, No. 02-1315 (D.C. Cir. filed
    Oct. 16, 2002) (requesting review of the Commission's denial of an
    application for review in the matter of Applications of Warren C.
    Havens For Automated Maritime Telecommunications System Stations at
    Chaffee, Aspen, Colorado Springs, Copper Mountain, and Leadville,
    Colorado, *Memorandum Opinion and Order*, 17 FCC Rcd 17,527 (2002));
    *Havens v. FCC*, No. 02-1316 (D.C. Cir. filed Oct. 16, 2002)
    (requesting review of the Commission's denial of an application for
    review in the matter of Applications of Warren C. Havens For
    Authorization to Operate Automated Maritime Telecommunications
    System Stations at Various Locations in Texas, *Memorandum Opinion
    and Order*, 17 FCC Rcd 17,588 (2002)); *Havens v. FCC*, No. 02-1359
    (D.C. Cir. filed Nov. 25, 2002) (requesting review of the
    Commission's denial of the application for review in the matter of
    Regionet Wireless License, LLC Granted Applications to Provide
    Automated Maritime Telecommunications System Stations at Various
    Locations in the United States, *Memorandum Opinion and Order*, 17
    FCC Rcd 21,263 (2002)); *Havens v. FCC*, No. 02-1360 (D.C. Cir.
    filed Nov. 25, 2002) (requesting review of the denial of the
    application for review in the matter of Regionet Wireless License,
    LLC Application for Renewal of License for Station WRV374 to Provide
    Automated Maritime Telecommunications System Service to the Atlantic
    Coast, *Memorandum Opinion and Order*, 17 FCC Rcd 21,269 (2002));
    *Havens v. FCC*, No. 03-1247 (D.C. Cir. filed Aug. 20, 2003)
    (requesting review of Amendment of Part 15 of the Commission's Rules
    Regarding Spread Spectrum Devices, *Memorandum Opinion and Order*,
    18 FCC Rcd 11,661 (2003)). This list is not intended to be
    exhaustive of potentially relevant judicial proceedings.

[^54]: Cf. Havens Comments at 2; Havens Reply Comments at 1-2; Further
    Reply Comments Ex Parte at 2; Mobex Reply Comments at 2-3 (raising
    concerns regarding the accuracy of the Commission's database).
    Commission staff is reviewing the licensing records to confirm that
    those records contain accurate information for all licensed AMTS
    facilities. Any facilities that are determined not to be properly
    constructed and operational will be deleted from the licensing
    database. The Bureau intends to complete this review prior to the
    commencement of Auction No. 57, but does not guarantee that this
    review will be completed by the commencement of this auction.

[^55]: 47 C.F.R. Ch. 1, Subpart I.

[^56]: 47 C.F.R. §§ 1.1305-1.1319.

[^57]: *Auction No. 57 Comment Public Notice*, DA 04-954.

[^58]: Mobex Comments at 1-3.

[^59]: Mobex Comments at 2, 4-5.

[^60]: Mobex Reply Comments at 2. PSI agrees with Mobex regarding the
    need for a four month delay, asserting that more time is necessary
    to conduct due diligence. PSI Comments at 1-2. Havens opposes a
    delay if 'due diligence' searches are the reason for the delay,
    however, Havens does not oppose a brief delay if this allows the
    Commission to update the licensing database, or if the Commission
    uses a notice and comment period to consider Havens proposed
    'special bidding credits.' Havens Reply Comments at 3. The Bureau's
    plan to update the license database is addressed in the Due
    Diligence section, *supra*.

[^61]: *Public Coast* *Fourth Report and Order and Third Further Notice
    of Proposed Rule Making*, 15 FCC Rcd 22,585.

[^62]: *Public Coast* *Second Memorandum Opinion and Order and Fifth
    Report and Order*, 17 FCC Rcd 6685; *see* *Public Coast* *Third
    Memorandum Opinion and Order*, 13 FCC Rcd 24,391.

[^63]: *See* Motion of Ranger Cellular and Miller Communications, Inc.
    for a Stay of the Cellular Rural Service Areas Auction No. 45,
    *Order*, 17 FCC Rcd 9329 at 9322-23 (2002).

[^64]: *See* 747-762 and 777-792 MHz Band Auction Postponed Until June
    7, 2000, *Public Notice*, 15 FCC Rcd. 21,514 (2000); *see also*
    Auction of Licenses for the 747-762 and 777-792 MHz Bands Postponed
    Until March 6, 2001, *Public Notice*, 15 FCC Rcd. 13,954 (2000).

[^65]: *See* Auction of Licenses in the 747-762 and 777-792 MHz Bands
    (Auction No. 31) Postponed Until January 14, 2003, *Public Notice*,
    17 FCC Rcd. 10,108 (2002).

[^66]: 47 U.S.C. § 309(j)(3)(E)(ii).

[^67]: *Public Coast* *Second Memorandum Opinion and Order and Fifth
    Report and Order*, 17 FCC Rcd 6685, 6718 ¶ 79.

[^68]: *See* Request of Southern Communications Services, Inc. and the
    United Telecom Council for Postponement of Auction No. 55, Order, 18
    FCC Rcd 25,880 (2003).

[^69]: *See* 47 U.S.C. § 309(j)(3)(A)-(D). *See also* 47 U.S.C. §
    309(j)(15).

[^70]: 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 10,180 (2003).

[^71]: 47 C.F.R. §§ 1.2105(a)(2)(viii), (c)(1).

[^72]: 47 C.F.R*.* § 1.2105(a)(2)(ix).

[^73]: *See* *supra* Section I.B.2.

[^74]: 47 C.F.R. § 1.2105(c)(4)(i), (ii).

[^75]: Although we did not seek comment on the Commission's eligibility
    rules, Havens requests that the Bureau not allow unqualified bidders
    into the auction. Havens Comments at 6. Mobex agrees, and points out
    the Commission already imposed this restriction with the adoption of
    47 C.F.R. § 1.2105(a)(2)(v). Mobex Reply Comments at 9.

[^76]: 47 C.F.R. § 1.2110(f).

[^77]: *Public Coast* *Third Report and Order and Memorandum Opinion and
    Order*, 13 FCC Rcd 19,884 ¶ 64; *see* 47 C.F.R. §§ 80.1251,
    80.1252(a).

[^78]: 47 C.F.R. § 1.2110(f)(2)(ii).

[^79]: 47 C.F.R. § 1.2110(f)(2)(i).

[^80]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15,323-27, ¶¶
    59-67.

[^81]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15,330, ¶ 78.
    Pursuant to this delegation of authority, the Bureau made conforming
    edits to service-specific competitive bidding rules and portions of
    the Part 1 general competitive bidding rules. These modifications
    became effective on August 8, 2002. Amendment of Parts 1, 21, 22,
    24, 25, 26, 27, 73, 74, 80, 90, 95, 100, and 101 of the Commission
    Rules -- Competitive Bidding, *Order*, 17 FCC Rcd 6534 (2002).

[^82]: *Order on Reconsideration of the Part 1 Fifth Report and Order,*
    18 FCC Rcd at 10,186-194, ¶¶ 10-18.

[^83]: *Id.* at 10,185-186, ¶¶ 8-9. However, to the extent that the
    officers and directors of the applicant are controlling interest
    holders of other entities, the gross revenues of those entities will
    be attributed to the applicant.

[^84]: *See Part 1 Fifth Report and Order*, 15 FCC Rcd at 15,327, ¶ 67.

[^85]: For further guidance on the issue of *de facto* control, see the
    Commission's affiliation rule at 47 C.F.R. § 1.2110(b)(5); *see
    also* Ellis Thompson Corp., *Summary Decision of Administrative Law
    Judge Joseph Chachkin*, 10 FCC Rcd 12,554, 12,555-56 (1994), in
    which the Commission identified the following factors used to
    determine control of a business: (1) use of facilities and
    equipment; (2) control of day-to-day operations; (3) control of
    policy decisions; (4) personnel responsibilities; (5) control of
    financial obligations; and (6) receipt of monies and profits;
    *Intermountain Microwave*, 12 FCC 2d. 559, 560 (1963) and
    Application of Baker Creek Communications, L.P., for Authority to
    Construct and Operate Local Multipoint Distribution Services in
    Multiple Basic Trading Areas, *Memorandum Opinion and Order*, 13 FCC
    Rcd 18,709 (1998).

[^86]: 47 C.F.R. § 1.2110(f).

[^87]: 47 C.F.R. § 1.2105.

[^88]: Comments were not sought on eligibility for bidding credits as
    this was considered by the Commission and decided in the *Public
    Coast* *Second Memorandum Opinion and Order and Fifth Report and
    Order*. Nonetheless, Havens proposes a special bidding credit for
    any bidder that commits to using AMTS licenses for public safety.
    Havens Comments at 3; Havens Further Comments Ex Parte. Mobex, in
    its reply comments, opposes this concept, reasoning that the AMTS
    spectrum is incompatible with the public safety uses in the 150-170
    MHz spectrum and any commitment by successful bidders in Auction No.
    57 would not provide interoperability. Mobex Reply Comments at 3-4.
    The Commission previously adopted bidding credit preferences after
    soliciting comments on this subject in the *Public Coast* *Fourth
    Report and Order Third Further Notice of Proposed Rule Making*, 15
    FCC Rcd 22,585, 22,620-21. The Bureau's delegated authority does not
    extend to over-ruling the Commission on this issue, and the Bureau
    cannot reconsider the Commission's decision. *See* 47 C.F.R. §§
    0.131(c), 0.331, 0.332.

[^89]: ^?^ 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 15,317, ¶ 42 ("*Order on Reconsideration of the Part 1 Third
    Report and Order*").

[^90]: 47 C.F.R. § 1.2105(a)(2)(xi); *Order on Reconsideration of the
    Part 1 Third Report and Order*, 15 FCC Rcd at 15,317, n. 142.

[^91]: 47 C.F.R. § 1.2106(a).

[^92]: 47 C.F.R. § 1.2105(a).

[^93]: 47 C.F.R. § 1.2105; *see also* Two Way Radio of Carolina, Inc.,
    *Memorandum Opinion and Order*, 14 FCC Rcd 12,035 (1999).

[^94]: Letter from Margaret W. Wiener, Chief, Auctions and Industry
    Analysis Division, Wireless Telecommunications Bureau, to Patrick
    Shannon, Esq., Counsel for Lynch 3G Communications Corporation, 18
    FCC Rcd 11,552 (2003).

[^95]: 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, 5697-98, ¶ 16 (1997)
    ("*Part 1 Order"*).

[^96]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15,316-17, ¶¶
    40-42; 47 C.F.R. § 1.2106(a); *see* 47 C.F.R. § 1.2105(a)(2)(xi).

[^97]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15,316-17, ¶¶
    40-42.

[^98]: *Auction No. 57 Comment Public Notice* at 3.

[^99]: All population figures are from the 2000 U.S. Census, U.S.
    Department of Commerce, Bureau of the Census. *See* Census 2000
    Summary File 1 (SF1) and July 3, 2001, News Releases covering the
    U.S. Virgin Islands, Guam, the Northern Mariana Islands, and
    American Samoa.

[^100]: Results are rounded using our standard rounding procedure:
    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.

[^101]: All population figures are from the 2000 U.S. Census, U.S.
    Department of Commerce, Bureau of the Census. *See* Census 2000
    Summary File 1 (SF1) and July 3, 2001, News Releases covering the
    U.S. Virgin Islands, Guam, the Northern Mariana Islands, and
    American Samoa.

[^102]: *Auction No. 57 Comment Public Notice* at 2.

[^103]: Havens Comments at 2.

[^104]: *Id.* at 3.

[^105]: *Id.* at 4.

[^106]: *Id*. at 3-4.

[^107]: 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.

[^108]: *Auction No. 57 Comment Public Notice* at 4.

[^109]: *Id*. at 10.

[^110]: *Id*. at 10.

[^111]: *Id.* at 5.

[^112]: *See* Balanced Budget Act, section 3002(a), 47 U.S.C. §
    309(j)(4)(F).

[^113]: *See* Amendment of Part 1 of the Commission's Rules ---
    Competitive Bidding Procedures, WT Docket No. 97-82, *Third Report
    and Order and Second Further Notice of Proposed Rule Making,* 13 FCC
    Rcd 375, 455-456, ¶ 141 (1997)*(*"*Part 1 Third Report and
    Order*"*).*

[^114]: *Id*.

[^115]: *Id*.

[^116]: *Auction No. 57 Comment Public Notice* at 6.

[^117]: All population figures are from the 2000 U.S. Census, U.S.
    Department of Commerce, Bureau of the Census. *See* Census 2000
    Summary File 1 (SF1) and July 3, 2001, News Releases covering the
    U.S. Virgin Islands, Guam, the Northern Mariana Islands, and
    American Samoa.

[^118]: Results are rounded using our standard rounding procedure:
    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.

[^119]: *Auction No. 57 Comment Public Notice* at 6.

[^120]: All population figures are from the 2000 U.S. Census, U.S.
    Department of Commerce, Bureau of the Census. *See* Census 2000
    Summary File 1 (SF1) and July 3, 2001, News Releases covering the
    U.S. Virgin Islands, Guam, the Northern Mariana Islands, and
    American Samoa.

[^121]: *Auction No. 57 Comment Public Notice* at 7-9.

[^122]: *Id.* at 9.

[^123]: Bidders must have sufficient eligibility to place a bid on the
    particular license. *See* *supra* Section III.D.3 "Amount of Upfront
    Payment."

[^124]: *See* *infra* Section IV.B.6 "Bid Removal and Bid Withdrawal."

[^125]: *See supra* Section IV.A.2.

[^126]: *Auction No. 57 Comment Public Notice* at 9.

[^127]: 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.

[^128]: Bidders must have sufficient eligibility to place a bid on the
    particular license. *See* *supra* Section III.D.3 "Amount of Upfront
    Payment."

[^129]: *Auction No. 57 Comment Public Notice* at 9-10.

[^130]: The Bureau retains the discretion to lower the minimum
    acceptable bid on such licenses in the next round or in later
    rounds.

[^131]: 47 C.F.R. §§ 1.2104(g), 1.2109.

[^132]: 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).

[^133]: See following paragraph for discussion of interim bid withdrawal
    payments.

[^134]: *See* *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15,302, ¶
    15; 47 C.F.R. § 1.2104(g)(1).

[^135]: *See Part 1 Fifth Report and Order*, 15 FCC Rcd at 15,302, ¶ 15.

[^136]: *See* "Wireless Telecommunications Bureau Reminds Filers of
    Effective Date for Mandatory Electronic Filing of FCC Form 602,"
    *Public Notice*, 17 FCC Rcd 22,934 (2002); *see also* 47 C.F.R. §
    1.913.

[^137]: The Bureau did not seek comment on this matter, however, we note
    that Havens supports the typical tribal land bidding credit. Havens
    Comments at 2.

[^138]: *See also* 47 C.F.R. § 1.2110(f)(3)(ii) & (vii).

[^139]: *See* Extending Wireless Telecommunications Services to Tribal
    Lands, WT Docket No. 99-266, *Second Report and Order and Second
    Further Notice of Proposed Rulemaking*, 18 FCC Rcd 4775, ¶ 10
    (2003); *see also* Extending Wireless Telecommunications Services to
    Tribal Lands, WT Docket No. 99-266, *Report and Order and Further
    Notice of Proposed Rule Making*, 15 FCC Rcd 11,794 (2000); "Wireless
    Telecommunications Bureau Announces Enhancements to the Universal
    Licensing System to Help Winning Bidders of FCC Auctions File for
    Tribal Land Bidding Credits," *Public Notice*, 16 FCC Rcd 5355
    (2001); "Wireless Telecommunications Bureau Releases Additional
    Information Regarding the Procedures for Obtaining a Tribal Lands
    Bidding Credit and List of Tribal Lands," *Public Notice*, 15 FCC
    Rcd 24,838 (2000); "Wireless Telecommunications Bureau Announces
    Availability of Bidding Credits For Providing Wireless Services To
    Qualifying Tribal Lands: Tribal Land Bidding Credits To Be Available
    Beginning In Auction No. 36 (800 MHz Specialized Mobile Radio (SMR)
    Lower 80 Channels) And In Future Auctions," *Public Notice*, 15 FCC
    Rcd 18,351 (2000).

[^140]: *See* 47 C.F.R. § 1.2109(b) and (c).

[^141]: 47 C.F.R. § 1.2109(d).

[^142]: 47 C.F.R. § 1.2105(c)(6); *see also* *Part 1* *Seventh Report
    and Order*, 16 FCC Rcd at 17,555, ¶ 17.