**DA 05-2032**

**July 22, 2005**

**AUCTION OF AUTOMATED MARITIME TELECOMMUNICATIONS SYSTEM LICENSES**

**Seven Bidders Qualified to Participate in Auction No. 61**

**Report No. AUC-05-61-E (Auction No. 61)**

In this public notice*,* the Wireless Telecommunications Bureau
("Bureau") identifies seven applicants found to be qualified to bid in
the upcoming auction for ten licenses in the Automated Maritime
Telecommunications System ("AMTS") Service (Auction No. 61).[^1] Bidding
in Auction No. 61 is scheduled to begin on Wednesday, August 3, 2005. In
addition, this public notice contains bidding instructions and other
important information regarding Auction No. 61.

**Attachment A** lists each of the seven qualified bidders, their
upfront payments, and their maximum eligibility in bidding units.

**Attachment B** lists the licenses selected on each qualified bidder's
short-form application (FCC Form 175).

In order to participate effectively in the auction, qualified bidders
should again familiarize themselves with the auction rules, procedures,
and other information contained in the *Auction No. 61 Procedures Public
Notice*[^2] and subsequent public notices. These public notices and
other documents related to Auction No. 61 are available on the
Commission's auctions website at <http://wireless.fcc.gov/auctions/>.
The following information provides additional guidance.

**Registration*.*** Qualified bidders have been automatically registered
for the auction. Registration materials will be sent to the bidder's
contact person at the contact address identified in the bidder's
short-form application. Upon receipt, each bidder should be in
possession of the following:

-   At least two SecurID cards

-   Integrated Spectrum Auction System (ISAS) Bidder's Guide

-   FCC Auction Bidder Line phone number

Qualified bidders are solely responsible for ensuring the security of
their computer systems and their registration materials and for ensuring
that only authorized bidders place bids on their behalf. The Commission
assumes no responsibility or liability for these matters.

WARNING: Any unauthorized entity accessing or tampering with an FCC or
other government computer will be prosecuted to the full extent of the
law.

Any qualified bidder listed in Attachment A of this public notice that
has not received the registration mailing **by noon on Thursday, July
28, 2005**, must contact the Auctions Hotline directly at (717)
338-2888. Receipt of the registration mailing is critical to
participating in both the mock auction and the actual auction, and it is
the responsibility of each qualified bidder to ensure that all
registration information has been received.

**Registration Material Replacement.** In the event that a bidder's
SecurID cards are lost or damaged, only a person who has been designated
as an authorized bidder, the contact person, or the certifying official
on the applicant's short-form application may request replacement
registration material. Qualified bidders requiring the replacement of
these items must call Technical Support at (877) 480-3201, option nine;
(202) 414-1250; or (202) 414-1255 (TTY).

**Bidding.** The Commission will conduct this auction over the Internet,
and telephonic bidding will be available as well. The Integrated
Spectrum Auction System ("ISAS" or "FCC Auction System") can be accessed
at [http://auctions.fcc.gov](http://auctions.fcc.gov/).

Qualified bidders are permitted to bid telephonically or electronically.
In either case, **each authorized bidder** must have his or her own RSA
SecurID card, which the FCC will provide at no charge. Applicants with
only 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 instructions for
using them are only mailed to the contact person at the contact address
listed on the applicant's short-form application. Please note that each
SecurID card is tailored to a specific auction. SecurID cards issued for
other auctions or obtained from a source other than the FCC will not
work for Auction No. 61. The Auction Bidder Line phone number will be
supplied with the registration material.

Please note that the SecurID cards can be recycled, and we strongly
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.

**Bidding Contingency Plan.** Bidders should develop comprehensive
contingency plans that can be quickly implemented if bidders experience
difficulty participating in the auction. While the FCC will correct any
problems within Commission‑controlled facilities, bidders are solely
responsible for anticipating and overcoming problems such as bidder
technical failures, telephone service interruptions, adverse local
weather conditions, unavailability of authorized bidders, or the loss or
breach of confidential security codes.

In their registration materials, all qualified bidders will be supplied
with a telephone number for the Auction Bidder Line. Bidders choosing to
bid telephonically are required to use this telephone number to place
bids. Electronic bidders may use this telephone number as an alternate
method of bidding in the event they are unable to submit their bids
electronically. **Telephonic bidders are reminded to allow sufficient
time to bid by placing their calls well in advance of the close of a
round.**[^3]

**Minimum Opening Bid Amounts.** There will be a minimum opening bid
amount for each license in Auction No. 61, calculated in accordance with
the formulas previously announced.[^4] The minimum opening bid amount is
subject to reduction at the discretion of the Commission. The Commission
will not entertain requests to lower minimum opening bid amounts. The
agency will exercise its discretion, if at all, independent of any
communications from bidders.

**Announcements.** The Commission will post pertinent auction
information as announcements in the FCC Auction System. Bidders should
routinely check for announcements each time they enter the FCC Auction
System and should read this information carefully.

**Bidding Schedule.** On Wednesday, August 3, 2005, there will be four
rounds of bidding as follows:

Bidding Round 10:00 a.m. - 11:00 a.m. ET

Bidding Round 12:00 p.m. - 1:00 p.m. ET

Bidding Round 2:00 p.m. - 3:00 p.m. ET

Bidding Round 4:00 p.m. - 5:00 p.m. ET

The bidding schedule for Thursday, August 4, 2005, and continuing until
further notice, will be:

Bidding Round 10:00 a.m. - 10:20 a.m. ET

Bidding Round 11:00 a.m. - 11:20 a.m. ET

Bidding Round 12:00 p.m. - 12:20 p.m. ET

Bidding Round 2:00 p.m. - 2:20 p.m. ET

Bidding Round 3:00 p.m. - 3:20 p.m. ET

Bidding Round 4:00 p.m. - 4:20 p.m. ET

Round results will be available approximately 10 minutes after the close
of each round. The Commission will set the pace of the auction based
upon its monitoring of the bidding and its assessment of the auction's
progress. All subsequent schedule changes will be made by announcement
via the FCC Auction System during the course of the auction.

**Bidder Questions during the Auction.** FCC auction staff and technical
support staff will be available during the auction to answer questions
from authorized bidders. Bidders should identify themselves as a bidder
with a time-sensitive auction question when calling. Help can be
obtained through the following options:

+-----------------------------------+-----------------------------------+
| FCC Auction Bidder Line           | Use Auction Bidder Line phone     |
|                                   | number supplied in registration   |
| (telephonic bidding, auction      | mailing                           |
| conduct questions)                |                                   |
+-----------------------------------+-----------------------------------+
| FCC Technical Support             | \(877\) 480-3201, option nine;    |
|                                   | (202) 414-1250; or (202) 414-1255 |
| (all technical questions,         | (TTY)                             |
| software and hardware)            |                                   |
+-----------------------------------+-----------------------------------+
| FCC Auctions and Spectrum Access  | \(202\) 418-0660                  |
| Division (legal questions only)   |                                   |
+-----------------------------------+-----------------------------------+

The FCC Auction System includes a function for bidders to submit
suggestions to the FCC, but this is **not** an appropriate mechanism for
asking questions that may need a timely response, such as questions
about auction procedures or other issues. **Such questions should be
asked via one of the above telephone options.**

**Monitoring Round Results.** The Integrated Spectrum Auction System
(ISAS) Bidder's Guide (included in the registration material) provides
instructions for reviewing and downloading round results.

**Amendments to FCC Form 175.** Applicants are responsible for
maintaining the accuracy and completeness of information furnished in
their short-form applications, including their attachments.[^5]
Applicants should amend their short-form applications within ten
business days from the occurrence of a reportable change. Applicants
should make modifications to their FCC Form 175 electronically and
submit a letter, briefly summarizing the changes, by email to the
attention of Margaret Wiener, Chief, Auctions and Spectrum Access
Division, at the following address: <auction61@fcc.gov>. Questions about
changes should be directed to Howard Davenport at (202) 418-0660.

As described in the Commission's rules, applicants may make only minor
corrections to their FCC Form 175 applications (e.g., changing an
authorized bidder or a fax number).[^6] Major modifications (e.g*.*,
changing the licenses applied for or changing control of the applicant)
will not be accepted.[^7]

**Due Diligence.** Potential bidders are reminded that they are solely
responsible for investigating and evaluating all technical and
marketplace factors that may have a bearing on the value of the licenses
being offered in this auction. The Commission makes no representations
or warranties about the use of this spectrum for particular services.
Potential bidders are strongly encouraged to conduct their own research
prior to Auction No. 61 in order to determine the existence of pending
proceedings that might affect their decisions regarding participation in
the auction. Participants in Auction No. 61 are strongly encouraged to
continue such research during the auction. For further details regarding
due diligence, qualified bidders should refer to the *Auction No. 61
Procedures Public Notice* under Section I.B.5.[^8]

**Mock Auction.** On Monday, August 1, 2005, the Bureau will conduct a
mock auction which will allow qualified bidders to familiarize
themselves with the FCC Auction System. Only qualified bidders will be
permitted to participate in the mock auction. The Bureau will conduct
this auction over the Internet, but telephonic bidding will also be
available. Qualified bidders that wish to place bids telephonically
should use the telephone number supplied in the Auction No. 61
registration materials.

The mock auction can be accessed at:
[http://auctiondemo.fcc.gov](http://auctiondemo.fcc.gov/). The mock
auction will include all ten Auction No. 61 licenses, and will follow
the rules governing the actual auction. The mock auction will be
identified as Mock Auction No. 61. The FCC Auction System will assume
that each bidder applied for all licenses. The FCC Auction System will
reflect the actual upfront payment submitted by the bidder, which will
determine the initial (maximum) eligibility (as measured in bidding
units). The mock auction will simulate the start of the auction, and
each bidder will be required to be active on 80 percent of its current
bidding eligibility. If a bidder does not meet this requirement, it will
have a waiver automatically applied (if the bidder has any waivers
available), or its current eligibility will be permanently reduced (if
the bidder has no waivers remaining), possibly eliminating the bidder
from further bidding in the auction.

Electronic bidders participating in the mock auction are advised to
review the Integrated Spectrum Auction System (ISAS) Bidder's Guide
provided in the registration material.

The mock auction bidding schedule for Monday, August 1, 2005, will be:

Round 1 9:00 a.m. - 10:00 a.m. ET

Round 2 11:00 a.m. - 12:00 p.m. ET

Round 3 1:00 p.m. - 1:30 p.m. ET

Round 4 2:00 p.m. - 2:30 p.m. ET

Round 5 3:00 p.m. - 3:15 p.m. ET

Round 6 4:00 p.m. - 4:15 p.m. ET

**Prohibition of Collusion.** Applicants are reminded that Section
1.2105(c) of the Commission's rules prohibits applicants for licenses in
any of the same geographic areas from communicating with each other
during the auction about bids, bidding strategies, or settlements unless
they have identified each other as parties with which they have entered
into agreements under Section 1.2105(a)(2)(viii).[^9] For Auction No.
61, this prohibition became effective at the short-form application
filing deadline on Thursday, June 9, 2005, and will end on the
post-auction down payment deadline, which will be announced in a future
public notice.[^10] **This prohibition applies to all applicants
regardless of whether such applicants became qualified bidders or
actually bid.**[^11] For purposes of this prohibition, Section
1.2105(c)(7)(i) defines "applicant" to include 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.[^12] If parties had agreed in principle on all material
terms of a bidding agreement(s), those parties must have been identified
on the short-form application under Section 1.2105(c), even if the
agreement had not been reduced to writing. If parties had not agreed in
principle by the filing deadline, an applicant should not have included
the names of those parties on its application and must not have
continued negotiations.[^13]

Bidders competing for licenses for any of the same designated markets
must not communicate indirectly about bids or bidding strategy.[^14]
Accordingly, the Bureau encourages applicants competing for licenses in
any of the same geographic license areas not to use the same individual
as an authorized bidder.[^15] 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 bidders 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 take precautionary steps to
prevent communication between authorized bidders.[^16]

In addition, Section 1.65 of the Commission's rules requires an
applicant to maintain the accuracy and completeness of information
furnished in its pending application and to notify the Commission within
30 days of any substantial change that may be of decisional significance
to that application.[^17] 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.[^18]

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.[^19] Any applicant found to have violated the anti-collusion
rule may be subject to sanctions.[^20] In addition, applicants are
reminded that they are subject to the antitrust laws, which are designed
to prevent anti-competitive 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.[^21]

**Submission of Auction No. 61-related Filings:** As noted above,
applicants seeking to amend their short-form applications during the
auction should make modifications to their FCC Form 175 electronically
and submit a letter, briefly summarizing the changes, by email to the
attention of Margaret Wiener, Chief, Auctions and Spectrum Access
Division, at the following address: <auction61@fcc.gov>.

Parties wishing to submit requests, complaints, or other information
concerning Auction No. 61 should also send a copy by email to the
attention of Margaret Wiener, Chief, Auctions and Spectrum Access
Division, at the following address: <auction61@fcc.gov>, in addition to
following other procedures prescribed by the Commission's rules. The
Commission occasionally receives complaints regarding certain bidders
and requests to suspend bidding during an auction. While the Commission
reserves the right to take appropriate action during an auction, to
preserve the integrity of the auction process, it is generally our
practice to address any such allegations only after the winning bidders
have submitted their long-form applications, when there is greater
opportunity for investigation of such allegations, if warranted.

Finally, parties wishing to make suggestions concerning Auction No. 61
or future auctions are encouraged to present such ideas using the
suggestion feature of the FCC Auction System. (As mentioned above, this
feature is not an appropriate mechanism for posing questions that need a
timely response.) Commission staff always takes suggestions into
consideration, but may not provide an individualized response.

**Long-Form Applications.** Applicants that claim eligibility to receive
a small or very small business bidding credit should be aware that,
following the auction, they will be subject to more extensive reporting
requirements contained in the Commission's Part 1 ownership disclosure
rule.[^22] In addition, applicants with foreign ownership interests will
be required to comply with 47 U.S.C. § 310(b) at the long-form
application stage.

For additional information regarding this Public Notice, please contact
the following staff in the Auctions and Spectrum Access Division:

> For general auction questions: Debbie Smith, Roy Knowles or Barbara
> Sibert at (717) 338-2888
>
> For legal questions: Howard Davenport at (202) 418-0660

For technical questions about software or hardware, please contact FCC
Technical Support at (877) 480-3201, option nine; (202) 414-1250; or
(202) 414-1255 (TTY).

**[- FCC -]{.smallcaps}**

![](media/image2.wmf){width="6.944444444444445e-4in"
height="6.944444444444445e-4in"}

[^1]: The Bureau has before it a Petition for Reconsideration filed by
    Paging Systems, Inc. on May 23, 2005, in which it urges the Bureau
    to reverse an earlier decision, which was affirmed upon
    reconsideration, confirming that no prohibition on participation by
    commonly controlled applicants in a Commission spectrum auction
    exists. Also, the Bureau has before it a Petition for
    Reconsideration filed by Warren C. Havens, AMTS Consortium, LLC,
    Telesaurus VPC LLC, and Telesaurus Holdings GB LLC on May 23, 2005,
    seeking additional time to prepare to participate in Auction No. 61.
    The Bureau will respond to these filings separately.

[^2]: "Auction of Automated Maritime Telecommunications System Licenses
    Scheduled for August 3, 2005, Notice and Filing Requirements,
    Minimum Opening Bids, Upfront Payments and Other Auction Procedures
    for Auction No. 61," *Public Notice,* DA 05-1047 (WTB 2005)
    ("*Auction No. 61 Procedures Public Notice*").

[^3]: The length of a call to place a telephonic bid may vary; please
    allow a minimum of 10 minutes.

[^4]: *Auction No. 61 Procedures Public Notice* at 30-32. Attachment A
    of the *Auction No. 61 Procedures Public Notice* sets forth the
    minimum opening bid amounts for each license offered in Auction No.
    61.

[^5]: *See* 47 C.F.R § 1.65.

[^6]: *See* 47 C.F.R. § 1.2105(b).

[^7]: *Id*.

[^8]: *Auction No. 61 Procedures Public Notice* at 7-10.

[^9]: 47 C.F.R. § 1.2105(a)(2)(viii); 47 C.F.R. § 1.2105(c)(1). *See
    also* Amendment of Part 1 of the Commission's Rules -- Competitive
    Bidding Procedures, *Seventh Report and Order*, 16 FCC Rcd 17546
    (2001) ("*Part 1* *Seventh Report and Order*"); Amendment of Part of
    the Commission's -- Competitive Bidding Procedures, *Order on
    Reconsideration of the Third Report and Order, Fifth Report and
    Order, and Fourth Further Notice of Proposed Rule Making*, 15 FCC
    Rcd 15293, 15297-98 ¶¶ 7-8 (2000).

[^10]: 47 C.F.R. § 1.2105(c)(1).

[^11]: *See, e.g.*, Letter to Robert Pettit, Esquire, from Margaret W.
    Wiener, Chief, Auctions and Industry Analysis Division, Wireless
    Telecommunications Bureau, Federal Communications Commission, 16 FCC
    Rcd 10080 (WTB 2000) (declining to except an applicant's controlling
    interest from coverage by the anti-collusion rule, even though the
    applicant never made an upfront payment for the auction and was not
    listed as a qualified bidder); Star Wireless, LLC, *Forfeiture
    Order*, 19 FCC Rcd 18626 (EB 2004) (imposing forfeiture in the
    amount of \$100,000 for violation of the anti-collusion rule);
    Northeast Communications of Wisconsin, LLC, *Forfeiture Order*, 19
    FCC Rcd 18635 (EB 2004) (imposing forfeiture in the amount of
    \$100,000 for violation of the anti-collusion rule, even though the
    applicant never made an upfront payment for the auction and was not
    listed as a qualified bidder).

[^12]: 47 C.F.R. § 1.2105(c)(7)(i).

[^13]: *See* "Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules," *Public Notice*, 11 FCC Rcd 9645 (WTB
    1995).

[^14]: *Part 1 Seventh Report and Order*, 16 FCC Rcd at 17549-50 ¶ 6.

[^15]: *See Auction No. 61 Procedures Public Notice* at 4.

[^16]: *See* In re Application of Nevada Wireless for a License to
    Provide 800 MHz Specialized Mobile Radio Service in the Farmington,
    NM-CO Economic Area (EA-155) Frequency Band A, *Memorandum Opinion
    and Order,* 13 FCC Rcd. 11973, 11977 ¶ 11 (1998).

[^17]: 47 C.F.R. § 1.65.

[^18]: 47 C.F.R. §§ 1.65, 1.2105(c)(6); *see also Part 1* *Seventh
    Report and Order*, 16 FCC Rcd at 17555 ¶ 17.

[^19]: *See* 47 C.F.R. § 1.2107(d).

[^20]: *See* 47 C.F.R. §§ 1.2105(c), 1.2107(d), and 1.2109(d).

[^21]: *See* 47 C.F.R. § 1.2109(d).

[^22]: *See* 47 C.F.R. § 1.2112(b)(2).