**DA 03-3968**

**December 17, 2003**

**MULTICHANNEL VIDEO DISTRIBUTION AND DATA SERVICE SPECTRUM AUCTION**

**14 Qualified Bidders**

Report No. AUC-03-53-F (Auction No. 53)

In this *Public Notice,* the Federal Communications Commission ("FCC" or
"Commission") identifies 14 applicants found to be qualified to bid in
the upcoming auction of 214 Multichannel Video Distribution and Data
Service ("MVDDS") licenses ("Auction No. 53"). Auction No. 53 is
scheduled to begin on Wednesday, January 14, 2004. In addition, this
*Public Notice* contains bidding instructions and other important
information regarding Auction No. 53.

**Attachment A** lists each of the 14 qualified bidders, their upfront
payments, and maximum eligibility in bidding units.

**Attachment B** lists the licenses selected on each qualified bidder's
FCC Form 175.

**Attachment C** lists the applicants that submitted FCC Form 175
applications, but did not qualify to bid in this auction.

**Attachment D** describes how to participate in the mock auction.

**Attachment E** provides information on "How to Monitor the FCC
Auctions On-line," and round results file formats for use during the
auction.

In order to participate effectively in the auction, qualified bidders
should again familiarize themselves with the auction rules and other
information contained in the *Auction No. 53 Procedures Public Notice*
and subsequent public notices.[^1] This *Public Notice* and other
documents related to Auction No. 53 are available on the Commission's
auctions website,
[[http://wireless.fcc.gov/auctions](http://www.fcc.gov/wtb/auctions)/]{.underline}.
The following information provides additional guidance.

***Registration**.* Qualified bidders have been automatically registered
for the auction. For security reasons, the Commission will confirm
registration through two separate mailings of registration materials.
Both mailings will be sent to the bidder's contact person at the contact
address identified in the bidder\'s FCC Form 175. Upon receipt of both
mailings, each bidder should be in possession of the following
information:

-   Bidder Identification Number

-   At least two SecurID cards

-   Bidding System User Manual

-   FCC Telephonic Bidding phone number

Qualified bidders are solely responsible for ensuring the security of
their computer systems, security of their registration materials, and
that only authorized bidders place bids on their behalf. The FCC 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 both registration mailings **by noon on Wednesday,
January 7, 2004**, must contact the Auctions Hotline directly at (717)
338-2888. Receipt of both registration mailings is critical to
participating in both the mock auction and the actual auction event, and
it is the responsibility of each qualified bidder to ensure that all
registration information has been received.

***Registration Material Replacement**.* 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^
Street, SW, Washington, DC. Only an authorized bidder, the contact
person or the certifying official, as designated on the 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.

If a bidder receives a damaged card(s), the bidder's contact person
should call Technical Support to request a replacement. Technical
Support will verify that the card is unusable, and a new card will be
sent by Federal Express along with a self-addressed stamped envelope for
returning the damaged card(s).

***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.
In either case, **each authorized bidder** must have its own Remote
Security Access SecurID card, which the FCC will provide at no charge.
Each applicant 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 FCC Form 175. 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. 53. The telephonic bidding phone number will be
supplied in the first mailing along with 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.

***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, local 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 telephonic bidding. 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.**

***Minimum Opening Bids**.* There will be a minimum opening bid for each
license in Auction No. 53, calculated in accordance with the formulas
previously announced.[^2] The minimum opening bid amount is subject to
reduction at the discretion of the Commission. However, bidders should
be aware that the Commission will not entertain requests to lower
minimum opening bids. The agency will exercise its discretion, if at
all, independent of any communications from bidders.

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

***Bidding Schedule**.* The bidding schedule for Wednesday, January 14,
2004, and continuing until further notice, will be:

[]{.mark}

Bidding Period 9:00 a.m. - 10:00 a.m. ET

Bidding Period 11:00 a.m. - 12:00 p.m. ET

Bidding Period 1:30 p.m. - 2:30 p.m. ET

Bidding Period 3:30 p.m. - 4:30 p.m. ET

Round results will be provided approximately 10 minutes after the close
of each round. The FCC 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 during the
course of the auction.

***Bidder Questions during the Auction.*** FCC auction officials and
Technical Support staff will be available during the course of the
auction to answer questions from authorized bidders. Bidders should
identify themselves as a bidder with time sensitive auction questions
when calling any number. Help can be obtained through the following
telephone numbers:

+-----------------------------------+-----------------------------------+
| FCC Bidder Line                   | Use telephonic bid number         |
|                                   | supplied in registration mailing  |
| (telephonic bidding, auction      |                                   |
| conduct questions)                |                                   |
+-----------------------------------+-----------------------------------+
| FCC Technical Support Hotline     | \(202\) 414-1250                  |
|                                   |                                   |
| (all technical questions,         |                                   |
| software and hardware)            |                                   |
+-----------------------------------+-----------------------------------+
| FCC Auctions and Spectrum Access  | \(202\) 418-0660                  |
| Division (legal questions)        |                                   |
+-----------------------------------+-----------------------------------+

***Monitoring Round Results.*** Attachment E (How to Monitor the FCC
Auctions On-Line) of this *Public Notice* provides instructions for
reviewing and downloading round results, as well as other material
related to Auction No. 53, that will be released by the Commission
during the course of the auction.

***Auction Tracking Tool (ATT).*** The FCC has developed a tool for
tracking the results of its auctions. The ATT is a stand-alone
application that runs on Windows 95, 98, 2000, ME, NT, and XP operating
systems. It does not require any other software, although some advanced
features require Microsoft Excel. The tool will allow users to import
round result files and analyze bidding results after each round of the
auction. For installation and user instructions, see the README file,
the ATT User Manual, or the on-line help system that accompanies the
ATT.

The ATT version specifically designed for Auction No. 53 is available
for downloading and should be used for both the mock auction and the
actual auction. The ATT is located at the auctions web site,
<http://wireless.fcc.gov/auctions/>. From the options on the left,
select **Tracking Tools**.

The ATT, provided to bidders free of charge, is an additional means of
analyzing the auction round results. Bidders should have a back up
strategy in place, which may be quickly implemented, should they
experience technical difficulties with the ATT.

**User Requirements.** This software is designed to be used by a wide
range of users. For most effective use of the tool, users should be
familiar with:

-   Microsoft Windows 95, 98, NT, 2000, ME or XP

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-   Microsoft Excel 97 or higher

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-   The FCC simultaneous multiple-round auction format

***Amendments to FCC Form 175s**.* Applicants are responsible for
maintaining the accuracy and completeness of information furnished in
their FCC Form 175 and exhibits.[^3] Applicants should amend their
applications within ten business days from the occurrence of a
reportable change. Filers should make 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:
[auction53@fcc.gov](mailto:auction50@fcc.gov). A separate copy of the
letter should be faxed to Brian Carter, Special Counsel, Auctions and
Spectrum Access Division, (202) 418-1159. Questions about other changes
should be directed to Brian Carter 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*., authorized
bidder, fax number).[^4] Major modifications (*e.g.*, changing the
markets applied for, changing control of the applicant, changing the
certifying official) will not be accepted.[^5]

***Due Diligence***. Potential bidders are reminded that there are a
number of incumbent terrestrial private operational fixed point-to-point
licensees in the 12.2-12.7 GHz band which were licensed prior to MVDDS
and are not entitled to protection from harmful interference caused by
later MVDDS entrants in the 12.2-12.7 GHz band, except for public safety
stations, which must be protected. MVDDS operators have the
responsibility of resolving any harmful interference problems that their
operations may cause to these public safety incumbent point-to-point
operations in the 12.2-12.7 GHz band. To aid potential bidders, a list
of public safety incumbents in this band is attached as Appendix I to
the *Second Report and Order,* ET Docket No. 98-206, released May 23,
2002.[^6]

Potential bidders are also reminded that MVDDS licensees must comply
with the interference protection and coordination requirements set forth
in Sections 101.105, 101.1421, and 101.1440 of the Commission's
rules.[^7] Sections 101.105, 101.1421, and 101.1440 establish standards
for protection of co-primary NGSO FSS earth stations, incumbent and
adjacent area licensees and co-primary DBS earth stations. MVDDS shall
be licensed on a non-harmful interference co-primary basis to existing
DBS operations and on a co-primary basis with NGSO FSS stations in this
band. MVDDS licensees must also protect and/or develop sharing
agreements with neighboring licensees. MVDDS systems in the United
States within 56 km (35 miles) of the Canadian and Mexican border will
be granted conditional licenses, until final international agreements
are approved. MVDDS systems may not cause harmful interference to
stations in Canada or Mexico.[^8] No stations are allowed within 5 miles
of the borders.

Potential bidders are also reminded that certain applications (including
those for modification), petitions for rulemaking, requests for special
temporary authority ("STA"), waiver requests, petitions to deny,
petitions for reconsideration, and applications for review may be
pending before the Commission and relate to particular applicants or
incumbent licensees. In addition, certain judicial proceedings that may
relate to particular applicants or incumbent licensees or the licenses
available in Auction No. 53 may be commenced, may be pending, or may be
subject to further review. We note that resolution of these matters
could have an impact on the availability of spectrum in Auction No. 53.
Some of these matters (whether before the Commission or the courts) may
not be resolved by the time of the auction.[^9]

**Potential bidders 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. 53.** For further details
regarding due diligence, please refer to the *Auction No. 53 Procedures
Public Notice* under Section I.B.4.

***Mock Auction***. The FCC will conduct a mock auction on Friday,
January 9, 2004, which will allow qualified bidders to familiarize
themselves with the FCC Automated Auction System. Only qualified bidders
will be permitted to participate in the mock auction. The Bureau 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 that wish to place bids
telephonically should use the telephone number supplied in the Auction
No. 53 registration materials.

The mock auction will include all Auction No. 53 licenses, and will
follow the rules governing the actual auction. **The mock auction will
be identified as Auction No. 74. The program will assume that each
bidder applied for all licenses. The program 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 all bidders will be required
to be active on 80 percent of their current bidding eligibility. A
bidder not meeting this requirement 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 the auction.

Electronic bidders participating in the mock auction are advised to
review the Bidding System User Manual provided in the second mailing.
Attachment D to this *Public Notice* provides instructions for accessing
the FCC Mock Auction site.

The mock auction bidding schedule for Friday, January 9, 2004, will be:

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

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

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

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

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

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

**OTHER IMPORTANT INFORMATION**

***Prohibition of Collusion*.** To ensure the competitiveness of the
auction process, Section 1.2105(c) of the Commission's rules prohibits
applicants for licenses in 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 which they have
entered into agreements under Section 1.2105(a)(2)(viii).[^10] 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 strategies. The Bureau has previously stated that auction
applicants that have applied for licenses in any of the same geographic
areas, and that are also applicants for licenses in the same or
competing services must affirmatively avoid all discussions with each
other that affect, or in their reasonable assessment have the potential
to affect their bidding or bidding strategy.[^11] For Auction No. 53,
this prohibition became effective at the short-form application filing
deadline on Wednesday, November 12, 2003, and will end on the
post-auction down payment deadline, which will be announced in a future
public notice.[^12] 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.[^13]

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.[^14] 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.[^15]

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 or overlapping
geographic areas. In Auction No. 53, for example, applicants that
applied to bid for all markets are precluded from communicating with all
other applicants, until after the down payment deadline.[^16] However,
all applicants could have entered into bidding agreements *before*
filing their FCC Form 175, as long as they disclosed the existence of
the agreement(s) in their Form 175.[^17] If parties had agreed in
principle on all material terms prior to the short-form filing deadline,
those parties must have been identified on the short-form application
pursuant to Section 1.2105(c), even if the agreement had not been
reduced to writing. If the 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 with other applicants for licenses in any of the same or
overlapping geographic areas.[^18] By signing their FCC Form 175
short-form applications, applicants certified 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.[^19] 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.[^20]

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.[^21] 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.[^22] 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.[^23]

***Long-Form Applications.*** Applicants that claim status as an
entrepreneur, small business, or very small business should be aware
that at the long-form application stage, they will be subject to more
extensive reporting requirements contained in the Commission\'s Part 1
ownership disclosure rule.[^24] In addition, applicants with foreign
ownership interests will be required to comply with 47 U.S.C. Section
310(b) at the long-form application stage.

For additional information regarding this *Public Notice*, please
contact Barbara Sibert, Auctions Project Manager, at (717) 338-2888; Roy
Knowles, Auctions Analyst, at (717) 338-2888; or Brian Carter, Special
Counsel, Auctions and Spectrum Access Division, at (202) 418-0660.

Technical questions about software or hardware should be directed to
Technical Support at (202) 414-1250 (V) or (202) 414-1255 (TTY).

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

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height="6.944444444444445e-4in"}

[^1]: *See* Auction of Licenses in the Multichannel Video Distribution
    and Data Service rescheduled for January 14, 2004, Notice and Filing
    Requirements, Minimum Opening Bids, Upfront Payments and Other
    Auction Procedures, *Public Notice,* 18 FCC Rcd 17553 (2003)
    ("*Auction No. 53 Procedures Public Notice"*); *see also*
    Multichannel Video Distribution and Data Service Spectrum Auction,
    Status of FCC Form 175 Applications to Participate in the Auction,
    *Public Notice*, DA 03-3781 (rel. November 26, 2003).

[^2]: *Auction No. 53 Procedures Public Notice*, 18 FCC Rcd 17553
    (2003). Attachment A of the *Auction No. 53 Procedures Public
    Notice* sets forth the minimum opening bids for each license offered
    in Auction No. 53.

[^3]: 47 C.F.R § 1.65.

[^4]: 47 C.F.R. § 1.2105(b).

[^5]: *Id*.

[^6]: *See* Amendment of Parts 2 and 25 of the Commission\'s Rules to
    Permit Operation of NGSO FSS Systems Co-Frequency with GSO and
    Terrestrial Systems in the Ku-Band Frequency Range; Amendment of the
    Commission\'s Rules to Authorize Subsidiary Terrestrial Use of the
    12.2-12.7 GHz Band by Direct Broadcast Satellite Licensees and Their
    Affiliates; and Applications of Broadwave USA, PDC Broadband
    Corporation, and Satellite Receivers, Ltd. to Provide A Fixed
    Service in the 12.2-12.7 GHz Band, ET Docket No. 98-206, *Memorandum
    Opinion and Order and Second Report and Order*, 17 FCC Rcd 9614
    (2002) ("*Second Report and Order"*).

[^7]: 47 C.F.R. § 101.105 (Interference protection criteria), 47 C.F.R.
    § 101.1421 (Coordination of adjacent area MVDDS stations and
    incumbent public safety POFS stations), and 47 C.F.R. § 101.1440
    (MVDDS protection of DBS).

[^8]: 47 C.F.R. § 101.147(p), § 101.1423, and §§ 1.928(f)(1) and (2).

[^9]: *See, e.g.,* International Bureau Seeks Comment on Proposals to
    Permit Reducing Orbital Spacings Between U.S. Direct Broadcast
    Satellites, *Public Notice,* DA 03-3903 (rel. December 16, 2003).

[^10]: 47 C.F.R. § 1.2105(c)(1); 47 C.F.R. § 1.2105(a)(2)(viii). *See
    also* *Part 1 Seventh Report and Order,* 16 FCC Rcd 17546 (2001);
    *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15297-98, ¶¶ 7-8.

[^11]: *See* Wireless Telecommunications Bureau Provides Guidance on the
    Anti-Collusion Rule for D, E, and F Block Bidders, *Pubic Notice*,
    DA 96-1460, 15 FCC Rcd 6196 (1996).

[^12]: 47 C.F.R. § 1.2105(c)(1).

[^13]: 47 C.F.R. § 1.2105(c)(7)(i).

[^14]: *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).

[^15]: *See id*., at 11978.

[^16]: *See* Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules, *Public Notice*, DA 95-2244, 11 FCC
    Rcd 9645 (1995).

[^17]: 47 C.F.R. § 1.2105(c).

[^18]: *See* Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules, *Public Notice*, 11 FCC Rcd 9645
    (1995).

[^19]: 47 C.F.R. § 1.65.

[^20]: 47 C.F.R. § 1.2105(c)(6); *see also* *Part 1* *Seventh Report and
    Order*, 16 FCC Rcd at 17555, ¶ 17.

[^21]: 47 C.F.R. § 1.2107(d).

[^22]: *See* 47 C.F.R. § 1.2109(d).

[^23]: *Id.*

[^24]: 47 C.F.R. § 1.2112(b)(2).