DA 06-1949

October 6, 2006

**AUCTION OF FM BROADCAST CONSTRUCTION PERMITS**

**SCHEDULED FOR JANUARY 10, 2007**

**Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments
and Other Procedures for Auction No. 68**

**AU Docket No. 06-101**

Report No. AUC-06-68-B (Auction No. 68)

Table of Contents

Heading Paragraph \#

I. General Information 1

A. Introduction 1

1\. Construction Permits to be Auctioned 2

B. Rules and Disclaimers 8

1\. Relevant Authority 8

2\. Prohibition of Collusion; Compliance with Antitrust Laws 10

3\. Due Diligence 19

4\. Use of Integrated Spectrum Auction System 27

5\. Bidder Alerts 28

6\. National Environmental Policy Act Requirements 30

C. Auction Specifics 31

1\. Auction Date 31

2\. Auction Title 33

3\. Bidding Methodology 34

4\. Pre-Auction Dates and Deadlines 35

5\. Requirements for Participation 36

6\. General Contact Information 37

II\. short-form Application (FCC FORM 175) REQUIREMENTS 38

A. New Entrant Bidding Credit 42

1\. Eligibility 43

B. Application Requirements 48

1\. Bidding Credits 49

2\. Installment Payments 51

C. Permit Selection 52

D. Disclosure of Bidding Arrangements 53

E. Ownership Disclosure Requirements 55

F. Provisions Regarding Former and Current Defaulters 57

G. Other Information 63

H. Minor Modifications to Short-Form Applications (FCC Forms 175) 64

I. Maintaining Current Information in Short-Form Applications (FCC Form
175) 69

1\. Maintaining the Accuracy of FCC Form 175 Information 70

III\. PRE-AUCTION PROCEDURES 72

A. Auction Seminar 72

B. Short-Form Application (FCC Form 175) --- Due Before 6:00 p.m. ET on
November 13, 2006 73

C. Application Processing and Minor Corrections 76

D. Upfront Payments --- Due December 11, 2006 79

1\. Making Auction Payments by Wire Transfer 80

2\. FCC Form 159 83

3\. Upfront Payments and Bidding Eligibility 84

4\. Applicant's Wire Transfer Information for Purposes of Refunds of
Upfront Payments 89

E. Auction Registration 90

F. Remote Electronic Bidding 94

G. Mock Auction -- January 8, 2007 96

IV\. AUCTION EVENT 97

A. Auction Structure 98

1\. Simultaneous Multiple Round Auction 98

2\. Eligibility and Activity Rules 101

3\. Activity Rule Waivers 106

4\. Auction Stopping Rules 112

5\. Auction Delay, Suspension, or Cancellation 117

B. Bidding Procedures 119

1\. Round Structure 119

2\. Reserve Price and Minimum Opening Bids 121

3\. Bid Amounts 127

4\. Provisionally Winning Bids 131

5\. Bid Removal and Bid Withdrawal 140

6\. Round Results 147

7\. Auction Announcements 148

V. POST-AUCTION PROCEDURES 149

A. Down Payments 149

B. Final Payments 151

C. Long-Form Application 152

D. Default and Disqualification 153

E. Refund of Remaining Upfront Payment Balance 155

VI\. Contacts 159

ATTACHMENT A: Construction Permits to Be Auctioned

ATTACHMENT B: Electronic Filing and Review of the Short-Form Application
(FCC Form 175)

ATTACHMENT C: Auction-Specific Instructions for FCC Remittance Advice
(FCC Form 159)

ATTACHMENT D: Summary Listing of Commission and Bureau Documents
Addressing Application of the Anti-Collusion Rule

#  General Information

## Introduction

1.  By this Public Notice, the Media Bureau ("MB") and Wireless
    Telecommunications Bureau ("WTB") (collectively the "Bureaus")
    announce the procedures and minimum opening bid amounts for the
    upcoming auction of certain FM broadcast construction permits
    scheduled to begin on January 10, 2007 (Auction No. 68). On August
    24, 2006, in accordance with Section 309(j)(3) of the Communications
    Act of 1934, as amended,[^1] the Bureaus released a public notice
    seeking comment on reserve prices or minimum opening bid amounts and
    the procedures to be used in Auction No. 68.[^2] Interested parties
    submitted six comments and one reply comment in response to the
    *Auction No. 68 Comment Public Notice*.[^3]

### Construction Permits to be Auctioned 

2.  Auction No. 68 will offer nine construction permits in the FM
    broadcast service as listed in Attachment A. The construction
    permits to be auctioned are nine unsold FM construction permits from
    Auction Nos. 37 and 62.[^4] These construction permits are for
    vacant FM allotments, reflecting FM channels assigned to the FM
    Table of Allotments,[^5] pursuant to the Commission's established
    rulemaking procedures, and are designated for use in the indicated
    communities.

3.  Pursuant to the policies established in the *Broadcast Competitive
    Bidding First Report and Order*, applicants may apply for any vacant
    FM allotment listed in Attachment A.[^6] When two or more short-form
    applications (FCC Form 175) specifying the same FM allotment are
    accepted for filing, mutual exclusivity ("MX") exists for auction
    purposes,[^7] and thus, that construction permit for the FM
    allotment will be awarded by competitive bidding procedures.[^8]
    Once mutual exclusivity exists for auction purposes, even if only
    one applicant within an MX group submits an upfront payment, that
    applicant is required to submit a bid in order to obtain the
    construction permit.[^9]

4.  National Public Radio ("NPR") contends that the *Auction No. 68
    Comment Public Notice* is deficient in that it does not sufficiently
    encourage the submission of applications for noncommercial
    educational ("NCE") broadcast stations.[^10] NPR surmises that the
    previously unsold construction permits available in Auction No. 68
    show a lack of interest in providing commercial service in these
    areas, and therefore suggests that encouraging applications for NCE
    stations might result in new NCE service to these locations.[^11]
    NPR's suggestion rests on an erroneous premise that there was a lack
    of interest in these permits. Rather, as discussed further below,
    the permits in this auction received multiple bids in those prior
    auctions. These permits are now available because either a bidder
    withdrew a high bid during the auction or a winning bidder defaulted
    after the close of the auction.[^12]

5.  NPR also suggests that the *Auction No. 68 Comment Public Notice* is
    deficient because it does not contain instructions for the
    submission of applications for NCE stations.[^13] NPR cites to a
    portion of Section 73.5002(a) of the Commission's rules which states
    that "initial and other public notices will contain" instructions
    for completing applications to participate in the broadcast auction,
    and applications for NCE stations.[^14] NPR's argument fails to
    recognize that an initial auction public notice is limited to
    "announcing the upcoming auction and specifying \[filing\] the
    period" for short-form applications.[^15] The Commission's initial
    auction public notices for FM auctions do not supply specific
    application filing instructions. Rather, such instructions are
    typically supplied in a subsequent public notice, such as this one,
    which announces the procedures to be followed for the upcoming
    broadcast auction and provides filing instructions. The instructions
    for the filing of short-form applications for both commercial and
    NCE stations are provided in detail below.[^16] Moreover, the
    Commission's competitive bidding and broadcast service rules are
    specifically designed to accommodate applicants for NCE broadcast
    stations who seek to use nonreserved spectrum.[^17] In order to
    maximize opportunity for noncommercial broadcasters, the Commission
    has also permitted applicants for NCE stations the opportunity to
    obtain licenses to use nonreserved spectrum by participating in
    auction filing windows. In a decision resolving the issues raised by
    the court in *National Public Radio v. FCC*, the Commission
    determined that an applicant for an NCE station would be permitted
    to submit an application for nonreserved spectrum in an auction
    filing window, subject to being returned as unacceptable for filing
    if such application is mutually exclusive with an application for a
    commercial station.[^18] The opening of the upcoming window for
    nonreserved FM allotments for Auction No. 68 provides a filing
    opportunity for both NCE and commercial applicants. As with the
    previous two FM auctions,[^19] applicants for NCE broadcast stations
    will be allowed to submit short-form applications (FCC Forms 175)
    for the specific nonreserved spectrum to be auctioned in Auction No.
    68 in the forthcoming filing window.[^20]

6.  The broad principle of NCE auction participation is simply not a
    subject matter for which the Bureaus seek comment. The Bureaus
    released the *Auction No. 68 Comment Public Notice* pursuant to
    statutory directive. Section 309(j)(3) of the Act requires the
    Commission to "ensure that, in the scheduling of any competitive
    bidding under this subsection, an adequate period is allowed . . .
    before issuance of bidding rules, to permit notice and comment on
    proposed auction procedures . . . ."[^21] As stated in the *Auction
    No. 68 Comment Public* *Notice*, to ensure that potential bidders
    have adequate time to familiarize themselves with the specific rules
    that will govern the day-to-day conduct of an auction, the
    Commission ordered the Bureaus to seek comment on a variety of
    auction-specific procedures prior to the start of each auction.[^22]
    Specifically, the Commission directed the Bureaus to seek comment on
    particular mechanisms related to auction conduct, mechanisms
    including the structure of the bidding rounds, establishment of
    minimum opening bids, activity requirements, activity rule waivers
    and information relating to auction delay, suspension or
    cancellation. Thus, the concerns raised by NPR lie outside of the
    scope of this proceeding.

7.  Three entities filed jointly a "petition for reconsideration" in
    response to the *Auction No. 68 Comment Public Notice*, requesting
    that we delete four permits from the Auction No. 68 inventory.[^23]
    In their view, the FM construction permits at Perry, Florida,
    Parowan, Utah, Cedar Key, Florida, and Tecopa, California should be
    removed from the inventory and awarded on a first-come, first-served
    basis. Each of these three entities had its short-form application
    dismissed in an earlier FM auction because each was mutually
    exclusive with one or more applications for a commercial station for
    the same FM construction permit.[^24] These entities contend that
    the Commission should follow "a longstanding 'first come, first
    served' policy, and should immediately issue construction permits
    for these four FM stations to them.[^25] The parties claim that,
    because these permits were offered but not awarded in Auction Nos.
    37 or 62, they should now be available to them. We hereby deny this
    request. We decline to adopt the proposal made by these three former
    applicants because it would violate the Commission's rules and
    policies as established in the *NCE Second Report and Order*
    concerning the processing of mutual exclusive NCE and commercial
    applications. Implementation of this proposal would require
    amendment of the Commission's competitive bidding and broadcast
    service rules. The Bureaus' process for seeking comment on auction
    procedures is not the appropriate forum in which either to challenge
    determinations made in a rulemaking proceeding or to propose
    additional rule changes.

## Rules and Disclaimers 

### Relevant Authority 

8.  Prospective applicants must familiarize themselves thoroughly with
    the Commission's general competitive bidding rules, including recent
    amendments and clarifications.[^26] Broadcasters should also
    familiarize themselves with the Commission's rules relating to the
    FM broadcast service contained in 47 C.F.R. §§ 73.201 -- 73.333 and
    73.1001 -- 73.5009. Prospective bidders must also be familiar with
    the rules relating to broadcast auctions and competitive bidding
    proceedings contained in 47 C.F.R. §§ 1.2001 -- 1.2112 and 73.5000
    -- 73.5009. Prospective bidders must also be thoroughly familiar
    with the procedures, terms and conditions contained in this public
    notice, the *Auction No. 68 Comment Public Notice* and the
    *Broadcast Competitive Bidding First Report and Order,*[^27] the
    *Broadcast Competitive Bidding First Reconsideration Order*[^28] and
    the *New Entrant Bidding Credit Reconsideration Order*[^29] and the
    *NCE Second Report and Order*.[^30]

9.  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
    auctions-related Commission documents, including public notices, can
    be retrieved from the FCC Auctions Internet site at
    [http://wireless.fcc.gov/auctions](http://wireless.fcc.gov/auctions/default.htm?job=auctions_home).
    Additionally, documents are available for public inspection and
    copying between 8:00 a.m. and 4:30 p.m. Eastern Time (ET) Monday
    through Thursday or 8:00 a.m. to 11:30 a.m. ET Fridays 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, Best Copy and Printing, Inc.
    ("BCPI"), 445 12th Street, SW, Room CY-B402, Washington, DC 20554,
    800-378-3160 or at
    [http://www.bcpiweb.com](http://www.bcpiweb.com/).[^31]

### Prohibition of Collusion; Compliance with Antitrust Laws

10. To ensure the competitiveness of the auction process, Section
    1.2105(c) of the Commission's rules prohibits applicants competing
    for construction permits in any of the same geographic license areas
    from communicating with each other about bids, bidding strategies,
    or settlements unless such applicants have identified each other on
    their short-form applications (FCC Forms 175) as parties with whom
    they have entered into agreements pursuant to Section
    1.2105(a)(2)(viii).[^32] Thus, applicants for any of the same
    geographic license areas must affirmatively avoid all communications
    with each other that affect or, in their reasonable assessment, have
    the potential to affect bids or bidding strategy. In some instances,
    this prohibition extends to communications regarding the
    post-auction market structure. This prohibition begins at the
    short-form application filing deadline and ends at the down payment
    deadline after the auction.[^33] **This prohibition applies to all
    applicants regardless of whether such applicants become qualified
    bidders or actually bid.**[^34] The "geographic license area" is the
    market designation of the particular service.[^35] For the FM
    service, the market designation is the particular vacant FM
    allotment (*e.g.*, Covelo, California, Channel 245A, Market
    FM366-A). In Auction No. 68, for example, the rule would apply to
    applicants designating on the short-form application any of the same
    FM allotments. Therefore, applicants that apply to bid for an FM
    construction permit for the same allotment would be precluded from
    engaging in prohibited communications during the period from the
    short-form application deadline until the down payment deadline
    following the close of the auction. In addition, even if auction
    applicants are each eligible to bid on only one common FM allotment,
    they may not discuss with each other their bids or bidding
    strategies relating to any FM allotment that either designates on
    its short-form application.

11. For purposes of this prohibition, Section 1.2105(c)(7)(i) defines
    "applicant" as including all officers and directors of the entity
    submitting a short-form application to participate in the auction,
    all controlling interests of that entity, 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.[^36]

12. Applicants for construction permits for any of the same allotments
    must not communicate directly or indirectly about bids or bidding
    strategy.[^37] Accordingly, such applicants 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 such applicants. Also, if the authorized bidders are
    different individuals employed by the same organization (*e.g.,* law
    firm or engineering firm or consulting firm), a violation similarly
    could occur.[^38] 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.[^39] A violation of the anti-collusion rule
    could occur in other contexts, such as an individual serving as an
    officer for two or more applicants.[^40] Moreover, the Commission
    has found a violation of the anti-collusion rule where a bidder used
    the Commission's bidding system to disclose "its bidding strategy in
    a manner that explicitly invited other auction participants to
    cooperate and collaborate in specific markets,"[^41] and has placed
    auction participants on notice that the use of its bidding system
    "to disclose market information to competitors will not be tolerated
    and will subject bidders to sanctions."[^42] Bidders are cautioned
    that the Commission remains vigilant about prohibited communications
    taking place in other situations. For example, the Commission has
    warned that prohibited "communications concerning bids and bidding
    strategies may include communications regarding capital calls or
    requests for additional funds in support of bids or bidding
    strategies to the extent such communications convey information
    concerning the bids and bidding strategies directly or
    indirectly."[^43] Auction participants are hereby placed on notice
    that public disclosure of information relating to bidder interests,
    bids and bidder identities that typically has been revealed prior to
    and during past Commission auctions may violate the anti-collusion
    rule.[^44] Bidders should use caution in their dealings with other
    parties, such as members of the press, financial analysts, or others
    who might become a conduit for the communication of prohibited
    bidding information.

13. The Commission's rules do not prohibit applicants from entering into
    otherwise lawful bidding agreements before filing their short-form
    applications, as long as they disclose the existence of the
    agreement(s) in their short-form application.[^45] If parties agree
    in principle on all material terms prior to the short-form filing
    deadline, each party to the agreement must identify the other party
    or parties to the agreement on its short-form application under
    Section 1.2105(c), even if the agreement has not been reduced to
    writing. If the parties have not agreed in principle by the
    short-form filing deadline, they should not include the names of
    parties to discussions on their applications, and they may not
    continue negotiations, discussions or communications with any other
    applicants after the short-form filing deadline.[^46]

14. By electronically submitting its short-form application, each
    applicant certifies its compliance with Sections 1.2105(c) and
    73.7002. However, the Bureaus caution 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.[^47] The
    Commission has stated that it "intend\[s\] to scrutinize carefully
    any instances in which bidding patterns suggest that collusion may
    be occurring."[^48] Any applicant found to have violated the
    anti-collusion rule may be subject to sanctions.[^49]

15. **Applicants are also reminded that, regardless of compliance with
    the Commission's rules, they remain subject to the antitrust laws,
    which are designed to prevent anticompetitive behavior in the
    marketplace.** [^50] **Compliance with the disclosure requirements
    of the Commission's anti-collusion rule will not insulate a party
    from enforcement of the antitrust laws.**[^51] For instance, a
    violation of the antitrust laws could arise out of actions taking
    place well before any party submits a short form application.[^52]
    The Commission has cited a number of examples of potentially
    anticompetitive actions that would be prohibited under antitrust
    laws: for example, actual or potential competitors may not agree to
    divide territories horizontally in order to minimize competition,
    regardless of whether they split a market in which they both do
    business, or whether they merely reserve one market for one and
    another for the other.[^53] Similarly, the Bureaus have long
    reminded potential applicants and others that "\[e\]ven where the
    applicant discloses parties with whom it has reached an agreement on
    the short-form application, thereby permitting discussions with
    those parties, the applicant is nevertheless subject to existing
    antitrust laws."[^54] To the extent the Commission becomes aware of
    specific allegations that may give rise to violations of the federal
    antitrust laws, the Commission may refer such allegations to the
    United States Department of Justice for investigation.[^55] If an
    applicant is found to have violated the antitrust laws or the
    Commission's rules 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, among other
    sanctions.[^56]

16. 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.[^57] Thus, Section 1.65 requires an auction
    applicant to notify the Commission of any substantial change to the
    information or certifications included in its pending short-form
    application. Applicants are therefore required by Section 1.65 to
    report to the Commission any communications they have made to or
    received from another applicant after the short-form filing deadline
    that affect or have the potential to affect bids or bidding strategy
    unless such communications are made to or received from parties to
    agreements identified under Section 1.2105(a)(2)(viii). In addition,
    Section 1.2105(c)(6) requires that any applicant that makes or
    receives a communication prohibited by Section 1.2105(c) must report
    such communication to the Commission in writing immediately, and in
    no case later than five business days after the communication
    occurs.[^58]

17. Applicants that are winning bidders will be required to disclose in
    their long-form applications the specific terms, conditions, and
    parties involved in any bidding consortia, joint venture,
    partnership, or agreement or other arrangement entered into relating
    to the competitive bidding process.[^59]

18. A summary listing of documents issued by the Commission and the
    Bureau addressing the application of the anti-collusion rule may be
    found in Attachment D. These documents are available on the
    Commission's auction anti-collusion web page.[^60]

### Due Diligence 

19. Potential applicants are reminded that they are solely responsible
    for investigating and evaluating all technical and market place
    factors that may have a bearing on the value of the broadcast
    facilities in this auction. **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 permittee in the broadcast service,
    subject to certain conditions and regulations. An FCC auction does
    not constitute an endorsement by the FCC of any particular service,
    technology, or product, nor does an FCC construction permit or
    license constitute a guarantee of business success.** Applicants
    should perform their individual due diligence before proceeding as
    they would with any new business venture.

20. In particular, potential applicants are strongly encouraged to
    review all underlying Commission orders, such as the specific report
    and order amending the FM Table of Allotments and allotting the FM
    channel(s) on which they plan to bid.[^61] Reports and orders
    adopted in FM allotment rulemaking proceedings often include
    anomalies such as site restrictions or expense reimbursement
    requirements.[^62] Bidders are also responsible for reviewing all
    pending rulemaking petitions and open proceedings that might affect
    the FM allotment(s) on which they plan to bid. Additionally,
    potential bidders should perform technical analyses sufficient to
    assure themselves that, should they prevail in competitive bidding
    for a given FM allotment, they will be able to build and operate
    facilities that will fully comply with the Commission's technical
    and legal requirements.

21. Potential applicants are also strongly encouraged to conduct their
    own research prior to the beginning of bidding in Auction No. 68 in
    order to determine the existence of any pending administrative or
    judicial proceedings that might affect their decision to participate
    in the auction. Participants in Auction No. 68 are strongly
    encouraged to continue such research throughout the auction.

22. Applicants should also be aware that certain pending and future
    proceedings, including applications (including those for
    modification), petitions for rulemaking, requests for special
    temporary authority, waiver requests, petitions to deny, petitions
    for reconsideration, informal oppositions, and applications for
    review, before the Commission may relate to particular applicants or
    incumbent permittees, or incumbent licensees, or the construction
    permits available in Auction No. 68. In addition, pending and future
    judicial proceedings may relate to particular applicants or
    incumbent permittees, or incumbent licensees, or the construction
    permits available in Auction No. 68. Prospective applicants are
    responsible for assessing the likelihood of the various possible
    outcomes, and considering their potential impact on construction
    permits available in this auction.

23. Applicants should perform due diligence to identify and consider all
    proceedings that may affect the construction permits being auctioned
    and that could have an impact on the availability of spectrum for
    Auction No. 68. 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 beginning of bidding in the auction.

24. **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 the construction permits available in Auction No. 68.**
    Potential applicants are strongly encouraged to physically inspect
    any prospective sites located in, or near, the service area for
    which they plan to bid, and also to familiarize themselves with the
    environmental assessment obligations described below in Section
    I.B.6.

25. Applicants may research the licensing database for the Media Bureau
    on the Internet in order to determine which channels are already
    licensed to incumbent licensees or previously-authorized to
    construction permittees. Licensing records for the Media Bureau are
    contained in the Media Bureau's Consolidated Data Base System (CDBS)
    and may be researched on the Internet at <http://www.fcc.gov/mb>.
    Potential bidders may query the database online and download a copy
    of their search results if desired. Detailed instructions on using
    Search for Station Information, Search for Ownership Report
    Information and Search for Application Information and downloading
    query results are available online by selecting the CDBS Public
    Access (main) button at the bottom of the Electronic Filing and
    Public Access list section. The database searches return either
    station or application data. The application search provides an
    application link that displays the complete electronically filed
    application in application format. An AL/TC search under the
    application search link permits searching for Assignment of
    License/Transfer of Control groups using the AL/TC group lead
    application. For further details, click on the Help file. Potential
    bidders should direct questions regarding the search capabilities of
    CDBS to the Media Bureau help line at (202) 418-2662, or via e-mail
    at <mbinfo@fcc.gov>.

26. 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. To the extent the Commission's databases may not include
    all information deemed necessary or desirable by an applicant,
    applicants 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
    its databases.

### Use of Integrated Spectrum Auction System

27. The Commission will make available a browser-based bidding system to
    allow bidders to participate in Auction No. 68 over the Internet
    using the Commission's Integrated Spectrum Auction System ("ISAS" or
    "FCC Auction System"). The Commission makes no warranty whatsoever
    with respect to the FCC Auction System. In no event shall the
    Commission, or any of its officers, employees or agents, be liable
    for any damages whatsoever (including, but not limited to, loss of
    business profits, business interruption, loss of business
    information, or any other loss) arising out of or relating to the
    existence, furnishing, functioning or use of the FCC Auction System
    that is accessible to qualified bidders in connection with this
    auction. Moreover, no obligation or liability will arise out of the
    Commission's technical, programming or other advice or service
    provided in connection with the FCC Auction System.

### Bidder Alerts

28. As is the case with many business investment opportunities, some
    unscrupulous entrepreneurs may attempt to use Auction No. 68 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.

29. 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. 68 may
    also call the FCC Consumer Center at (888) CALL-FCC ((888)
    225-5322).

### National Environmental Policy Act Requirements

30. Permittees or licensees must comply with the Commission's rules
    regarding implementation of the National Environmental Policy Act
    ("NEPA").[^63] The construction of a broadcast facility is a federal
    action and the permittee must comply with the Commission's NEPA
    rules for each such facility.[^64] The Commission's NEPA rules
    require, among other things, that the permittee or 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). In assessing the effect of facilities
    construction on historic properties, the licensee must follow the
    provisions of the Nationwide Programmatic Agreement Regarding the
    Section 106 National Historic Preservation Act Review Process.[^65]
    The permittee 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 permittee
    also must prepare environmental assessments for facilities that
    include high intensity white lights in residential neighborhoods or
    excessive radio frequency emission.

## Auction Specifics

### Auction Date

31. Bidding in Auction No. 68 will begin on Wednesday, January 10, 2007,
    as announced in the *Auction No. 68 Comment Public Notice*.[^66] The
    initial schedule for bidding will be announced by public notice at
    least one week before the start of the auction.

32. Unless otherwise announced, bidding on construction permits will be
    conducted on each business day until bidding has stopped on all
    construction permits.

### Auction Title

33. Auction No. 68 -- FM Broadcast

### Bidding Methodology 

34. As discussed in more detail below, the bidding methodology for
    Auction No. 68 will be simultaneous multiple round bidding.[^67] The
    Commission will conduct this auction over the Internet using the FCC
    Auction System, and telephonic bidding will be available as well.
    Qualified bidders are permitted to bid electronically via the
    Internet or by telephone.[^68] All telephone calls are recorded.

### Pre-Auction Dates and Deadlines

35. Dates and Deadlines

Short-Form Application (FCC Form 175) Filing Window Opens......November
6, 2006; 12:00 noon. ET

Short-Form Application (FCC Form 175) Filing Window Deadline...November
13, 2006; 6:00 p.m. ET

Upfront Payments (via wire transfer) December 11, 2006; 6:00 p.m. ET

Mock Auction January 8, 2007

Auction Begins January 10, 2007

### Requirements for Participation

36. Those wishing to participate in the auction must:

-   Submit a short-form application (FCC Form 175) electronically prior
    to 6:00 p.m. Eastern Time (ET), November 13, 2006, following the
    electronic filing procedures set forth in Attachment B to this
    Public Notice.

```{=html}
<!-- -->
```
-   Submit a sufficient upfront payment and an FCC Remittance Advice
    Form (FCC Form 159) before 6:00 p.m. ET, December 11, 2006.

```{=html}
<!-- -->
```
-   Comply with all provisions outlined in this Public Notice and
    applicable Commission rules.

### General Contact Information

37. General Contact Information

+-----------------------------------+----------------------------------+
| **GENERAL AUCTION INFORMATION**   | FCC Auctions Hotline             |
+-----------------------------------+----------------------------------+
| General Auction Questions         | \(888\) 225-5322, option two;    |
+-----------------------------------+----------------------------------+
|                                   | or (717) 338-2868                |
+-----------------------------------+----------------------------------+
|                                   | 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,          | \(202\) 418-0660                 |
| Regulations                       |                                  |
+-----------------------------------+----------------------------------+
| **LICENSING INFORMATION**         | Audio Division                   |
+-----------------------------------+----------------------------------+
| Service Rules, Policies,          | \(202\) 418-2700                 |
| Regulations                       |                                  |
|                                   |                                  |
| Licensing Issues, Engineering     |                                  |
| Issues                            |                                  |
|                                   |                                  |
| Due Diligence, Incumbency Issues  |                                  |
+-----------------------------------+----------------------------------+
| **TECHNICAL SUPPORT**             | FCC Auctions Technical Support   |
|                                   | Hotline                          |
+-----------------------------------+----------------------------------+
| Electronic Filing                 | \(877\) 480-3201, option nine;   |
|                                   | or (202) 414-1250                |
+-----------------------------------+----------------------------------+
| FCC 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)           |
+-----------------------------------+----------------------------------+
| **AUCTION BIDDER LINE**           | Will be furnished only to        |
|                                   | qualified bidders                |
+-----------------------------------+----------------------------------+
| **FCC COPY CONTRACTOR**           | Best Copy and Printing, Inc      |
+-----------------------------------+----------------------------------+
| Additional Copies of              | 445 12th Street, SW, Room        |
|                                   | CY-B402                          |
+-----------------------------------+----------------------------------+
| Commission Documents              | Washington, DC 20554             |
|                                   |                                  |
|                                   | \(800\) 378-3160                 |
|                                   |                                  |
|                                   | [http://www.bcpiw                |
|                                   | eb.com](http://www.bcpiweb.com/) |
+-----------------------------------+----------------------------------+
| **PRESS INFORMATION**             | Chelsea Fallon (202) 418-7991    |
+-----------------------------------+----------------------------------+
| **FCC FORMS**                     | \(800\) 418-3676 (outside        |
|                                   | Washington, DC)                  |
|                                   |                                  |
|                                   | \(202\) 418-3676 (in the         |
|                                   | Washington area)                 |
|                                   |                                  |
|                                   | <h                               |
|                                   | ttp://www.fcc.gov/formpage.html> |
+-----------------------------------+----------------------------------+
| **ACCESSIBLE FORMATS**            | Consumer and Governmental        |
|                                   | Affairs Bureau                   |
+-----------------------------------+----------------------------------+
| Braille, large print, electronic  | \(202\) 418-0530 or (202)        |
| files, or                         | 418-0432 (TTY)                   |
+-----------------------------------+----------------------------------+
| audio format for people with      | <fcc504@fcc.gov>                 |
| disabilities                      |                                  |
+-----------------------------------+----------------------------------+
| **FCC INTERNET SITES**            | [http://w                        |
|                                   | ww.fcc.gov](http://www.fcc.gov/) |
|                                   |                                  |
|                                   | <h                               |
|                                   | ttp://wireless.fcc.gov/auctions> |
|                                   |                                  |
|                                   | <http://wireless.fcc.gov/uls>    |
|                                   |                                  |
|                                   | <http://www.fcc.gov/mb>          |
+-----------------------------------+----------------------------------+

#  {#section .unnumbered}

# short-form Application (FCC FORM 175) REQUIREMENTS

38. An application to participate in an FCC auction, referred to as a
    short-form application or FCC Form 175, provides information used in
    determining whether the applicant is legally, technically, and
    financially qualified to participate in Commission auctions for
    licenses or permits.[^69] The short-form application is the first
    part of the Commission's two-phased auction application process. In
    the first phase of this process, parties desiring to participate in
    the auction file streamlined, short-form applications in which they
    certify under penalty of perjury as to their qualifications.[^70]
    Eligibility to participate in bidding is based on the applicants'
    short-form applications and certifications as well as their upfront
    payments, as explained below.[^71] In the second phase of the
    process, winning bidders file a more comprehensive long-form
    application.[^72]

39. Entities and individuals seeking construction permits available in
    Auction No. 68 must file a short-form application electronically via
    the FCC Auction System before 6:00 p.m. ET on November 13, 2006,
    following the procedures prescribed in Attachment B to this Public
    Notice. If an applicant claims eligibility for a bidding credit, the
    information provided in its FCC Form 175 will be used in determining
    whether the applicant is eligible for the claimed bidding credit.
    Applicants bear full responsibility for submitting accurate,
    complete and timely short-form applications. All applicants must
    certify under penalty of perjury on their short-form applications
    that they are legally, technically, financially and otherwise
    qualified to hold a license.[^73] Applicants should read the
    instructions set forth in Attachment B to this Public Notice
    carefully and should consult the Commission's rules to ensure that,
    in addition to the materials described below all the information
    that is required under the Commission's rules is included with their
    short-form applications.[^74]

40. An entity may not submit more than one short-form application for a
    single auction. In the event that a party submits multiple
    short-form applications, only one application will be accepted for
    filing.

41. Applicants also should note that submission of a short-form
    application constitutes a representation by the certifying official
    that he or she is an authorized representative of the applicant,
    that he or she has read the form's instructions and certifications,
    and that the contents of the application, its certifications, and
    any attachments are true, complete 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.

## New Entrant Bidding Credit

42. To fulfill its obligations under Section 309(j) and further its
    long-standing commitment to the diversification of broadcast
    facility ownership, the Commission adopted a tiered New Entrant
    Bidding Credit for broadcast auction applicants with no, or very
    few, other media interests.

### Eligibility 

43. The interests of the applicant, and of any individuals or entities
    with an attributable interest in the applicant, in other media of
    mass communications shall be considered when determining an
    applicant\'s eligibility for the New Entrant Bidding Credit.[^75]
    The bidder\'s attributable interests shall be determined as of the
    short-form application (FCC Form 175) filing deadline -- November
    13, 2006. Thus, the applicant\'s maximum new entrant bidding credit
    eligibility will be determined as of the short-form application
    filing deadline. Applicants intending to divest a media interest or
    make any other ownership changes, such as resignation of positional
    interests, in order to avoid attribution for purposes of qualifying
    for the New Entrant Bidding Credit must have consummated such
    divestment transactions or have completed such ownership changes by
    no later than the short-form filing deadline -- November 13,
    2006.[^76] Prospective bidders are reminded, however, that events
    occurring after the short-form filing deadline, such as the
    acquisition of attributable interests in media of mass
    communications, may cause diminishment or loss of the bidding
    credit, and must be reported immediately.

44. Under traditional broadcast attribution rules, those entities or
    individuals with an attributable interest in a bidder include:

-   all officers and directors of a corporate bidder;

-   any owner of 5 percent or more of the voting stock of a corporate
    bidder;

-   all partners and limited partners of a partnership bidder, unless
    the limited partners are sufficiently insulated; and

-   all members of a limited liability company, unless sufficiently
    insulated.[^77]

45. In cases where an applicant\'s spouse or close family member holds
    other media interests, such interests are not automatically
    attributable to the bidder. The Commission decides attribution
    issues in this context based on certain factors traditionally
    considered relevant.[^78] Applicants should note that the mass media
    attribution rules were revised in 1999.[^79]

46. Bidders are also reminded that, by the *New Entrant Bidding Credit
    Reconsideration Order,* the Commission further refined the
    eligibility standards for the New Entrant Bidding Credit, judging it
    appropriate to attribute the media interests held by very
    substantial investors in, or creditors of, an applicant claiming new
    entrant status. Specifically, the attributable mass media interests
    held by an individual or entity with an equity and/or debt interest
    in an applicant shall be attributed to that bidder for purposes of
    determining its eligibility for the New Entrant Bidding Credit, if
    the equity and debt interests, in the aggregate, exceed 33 percent
    of the total asset value of the applicant, even if such an interest
    is non-voting.[^80]

47. Generally, media interests will be attributable for purposes of the
    New Entrant Bidding Credit to the same extent that such other media
    interests are considered attributable for purposes of the broadcast
    multiple ownership rules.[^81] However, attributable interests held
    by a winning bidder in existing low power television, television
    translator or FM translator facilities will not be counted among the
    bidder\'s other mass media interests in determining its eligibility
    for a New Entrant Bidding Credit.[^82] A medium of mass
    communications is defined in 47 C.F.R. § 73.5008(b). Full service
    noncommercial educational stations, on both reserved and nonreserved
    channels, are included among "media of mass communications" as
    defined in Section 73.5008(b).[^83]

## Application Requirements

48. In addition to the ownership information required pursuant to §
    1.2112, applicants are required to establish on their short-form
    applications that they satisfy the eligibility requirements to
    qualify for a New Entrant Bidding Credit.[^84] In those cases where
    a New Entrant Bidding Credit is being sought, a certification under
    penalty of perjury must be provided in completing the applicant's
    short-form application. An applicant claiming that it qualifies for
    a 35 percent new entrant bidding credit must certify that neither it
    nor any of its attributable interest holders have any attributable
    interests in any other media of mass communications. An applicant
    claiming that it qualifies for a 25 percent new entrant bidding
    credit must certify that neither it nor any of its attributable
    interest holders have any attributable interests in more than three
    media of mass communications, and must identify and describe such
    media of mass communications.[^85]

### Bidding Credits

49. Applicants that qualify for the New Entrant Bidding Credit, as
    specified in the applicable rule,[^86] are eligible for a bidding
    credit that represents the amount by which a bidder\'s winning bid
    is discounted. The size of a New Entrant Bidding Credit depends on
    the number of ownership interests in other media of mass
    communications that are attributable to the bidder-entity and its
    attributable interest-holders:

-   A 35 percent bidding credit will be given to a winning bidder if it,
    and/or any individual or entity with an attributable interest in the
    winning bidder, has no attributable interest in any other media of
    mass communications, as defined in 47 C.F.R. § 73.5008;

-   A 25 percent bidding credit will be given to a winning bidder if it,
    and/or any individual or entity with an attributable interest in the
    winning bidder, has an attributable interest in no more than three
    mass media facilities, as defined in 47 C.F.R. § 73.5008;

-   No bidding credit will be given if any of the commonly owned mass
    media facilities serve the same area as the proposed broadcast
    station, as defined in 47 C.F.R. § 73.5007(b), or if the winning
    bidder, and/or any individual or entity with an attributable
    interest in the winning bidder, has attributable interests in more
    than three mass media facilities.

50. Bidding credits are not cumulative; qualifying applicants receive
    either the 25 percent or the 35 percent bidding credit, but not
    both. Attributable interests are defined in 47 C.F.R. § 73.3555 and
    Note 2 of that section.[^87] Applicants should note that unjust
    enrichment provisions apply to a winning bidder that utilizes a
    bidding credit and subsequently seeks to assign or transfer control
    of its license or construction permit to an entity not qualifying
    for the same level of bidding credit.[^88]

### Installment Payments

51. Installment payment plans will not be available in Auction No. 68.

## Permit Selection

52. In Auction No. 68, applicants must select the construction permits
    on which they want to bid from the "Eligible Permits" list. There
    will be no opportunity to change construction permit selection after
    the short-form filing deadline.[^89] It is critically important that
    an applicant confirm its construction permit selections before
    submitting its short-form application because the FCC Auction System
    will not accept bids on construction permits that an applicant has
    not selected on its short-form application.

## Disclosure of Bidding Arrangements

53. Applicants will be required to identify in their short-form
    applications all parties with whom they have entered into any
    agreements, arrangements, or understandings of any kind relating to
    the construction permits being auctioned, including any agreements
    relating to post-auction market structure.[^90] Applicants also will
    be required to certify under penalty of perjury in their short-form
    applications that they have not entered and will not enter into any
    explicit or implicit agreements, arrangements or understandings of
    any kind with any parties, other than those identified in the
    application, regarding the amount of their bids, bidding strategies,
    or the particular construction permits on which they will or will
    not bid.[^91] If an applicant has had discussions, but has not
    reached a joint bidding agreement by the short-form application
    filing deadline, it would not include the names of parties to the
    discussions on its application and may not continue such discussions
    with any applicants after the deadline.[^92]

54. After the filing of short-form applications, the Commission's rules
    do not prohibit a party holding a non-controlling, attributable
    interest in one applicant from acquiring an ownership interest in or
    entering into a joint bidding arrangement with other applicants
    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 entered into a
    joint bidding arrangement; and (ii) the arrangements do not result
    in a change in control of any of the applicants.[^93] 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.[^94] Such subject areas include, but are not
    limited to, issues such as management sales, local marketing
    agreements, rebroadcast agreements, and other transactional
    agreements. Further, as discussed above, compliance with the
    disclosure requirements of the Commission's anti-collusion rule will
    not insulate a party from enforcement of the antitrust laws.[^95]

## Ownership Disclosure Requirements 

55. The Commission specified in the *Broadcast Competitive Bidding First
    Report and Order* that, for purposes of determining eligibility to
    participate in a broadcast auction, 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.[^96] Specifically, in completing the short-form
    application, applicants will be required to fully disclose
    information on the real party or parties-in-interest and ownership
    structure of the applicant. The ownership disclosure standards for
    the short form are prescribed in Sections 1.2105 and 1.2112 of the
    Commission's rules.[^97] Each applicant is responsible for
    information submitted in its short-form application being complete
    and accurate.

56. In certain circumstances an applicant's most current ownership
    information on file with the Commission, if in an electronic format
    compatible with the short-form application (FCC Form 175) (such as
    information submitted in an on-line FCC Form 602 or in an FCC Form
    175 filed for a previous auction using ISAS) will automatically be
    entered into the applicant's short-form application. Applicants are
    responsible for ensuring that the information submitted in their
    short-form application for Auction No. 68 is complete and accurate.
    Accordingly, applicants should carefully review any information
    automatically entered to confirm that it is complete and accurate as
    of the deadline for filing the short-form application. Applicants
    can update any information that was entered automatically and needs
    to be changed directly in the short-form application.

## Provisions Regarding Former and Current Defaulters

57. Each applicant must state under penalty of perjury on its short-form
    application whether or not the applicant, its affiliates, its
    controlling interests, and the affiliates of its controlling
    interests, as defined by Section 1.2110,[^98] have ever been in
    default on any Commission construction permit or license or have
    ever been delinquent on any non-tax debt owed to any Federal
    agency.[^99] In addition, each applicant must certify under penalty
    of perjury on its short-form application that as of the short-form
    filing deadline, the applicant, its affiliates, its controlling
    interests, and the affiliates of its controlling interests, as
    defined by Section 1.2110, are not in default on any payment for a
    Commission construction permit or license (including a down payment)
    and that they are not delinquent on any non-tax debt owed to any
    Federal agency.[^100] 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.

58. "Former defaulters" --- *i.e.*, applicants, including any of their
    affiliates, any of their controlling interests, or any of the
    affiliates of their controlling interests, that in the past have
    defaulted on any Commission construction permit or license 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. 68, provided that they are otherwise qualified. However, as
    discussed in Section III.D.3., *infra*, former defaulters are
    required to pay upfront payments that are fifty percent more than
    the normal upfront payment amounts.[^101]

59. "Current defaulters" --- *i.e.*, applicants, including any of their
    affiliates, any of their controlling interests, or any of the
    affiliates of their controlling interests, that are in default on
    any payment for any Commission construction permit or license
    (including a down payment) or are delinquent on any non-tax debt
    owed to any Federal agency as of the filing deadline for
    applications to participate in this auction -- are not eligible to
    bid in Auction No. 68.[^102]

60. Applicants are encouraged to review the Wireless Telecommunications
    Bureau's previous guidance on default and delinquency disclosure
    requirements in the context of the short-form application
    process.[^103] For example, it has been determined that to the
    extent that Commission rules permit late payment of regulatory or
    application fees accompanied by late fees, such debts will become
    delinquent for purposes of Sections 1.2105(a) and 1.2106(a) only
    after the expiration of a final payment deadline.[^104] Therefore,
    with respect to regulatory or application fees, the provisions of
    Sections 1.2105(a) and 1.2106(a) regarding default and delinquency
    in connection with competitive bidding are limited to circumstances
    in which the relevant party has not complied with a final Commission
    payment deadline.[^105]

61. The Commission considers outstanding debts owed to the United States
    Government, in any amount, to be a serious matter. The Commission
    adopted rules, including a provision referred to as the "red light
    rule," that implement the Commission\'s obligations under the Debt
    Collection Improvement Act of 1996, which governs the collection of
    claims owed to the United States.[^106] Under the red light rule,
    the Commission will not process applications and other requests for
    benefits filed by parties that have outstanding debts owed to the
    Commission. In the same rulemaking order, the Commission explicitly
    declared, however, that the Commission\'s competitive bidding rules
    "are not affected" by the red light rule.[^107] As a consequence,
    the Commission\'s adoption of the red light rule does not alter the
    applicability of any of the Commission\'s competitive bidding rules,
    including the provisions and certifications of Sections 1.2105 and
    1.2106, with regard to current and former defaults or delinquencies.
    Applicants are reminded, however, that the Commission's Red Light
    Display System, which provides information regarding debts owed to
    the Commission, may not be determinative of an auction applicant's
    ability to comply with the default and delinquency disclosure
    requirements of section 1.2105.[^108] Thus, while the red light rule
    ultimately may prevent the processing of long-form applications by
    auction winners, an auction applicant's "red light" status is not
    necessarily determinative of its eligibility to participate in this
    auction or of its upfront payment obligation.

62. Prospective applicants in Auction No. 68 should note that any
    long-form applications filed after the close of competitive bidding
    will be reviewed for compliance with the Commission's red light
    rule,[^109] and such review may result in the dismissal of a winning
    bidder\'s long-form application.[^110]

## Other Information 

63. Applicants owned by members of minority groups and/or women, as
    defined in Section 1.2110(c)(3),[^111] may identify themselves in
    filling out their short-form applications 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.[^112]

## Minor Modifications to Short-Form Applications (FCC Forms 175)

64. After the deadline for filing short-form applications (FCC
    Forms 175) at **6:00 p.m. ET on November 13, 2006**, applicants are
    permitted to make only minor changes to their applications.
    Applicants are not permitted to make major modifications to their
    applications (*e.g.*, change their construction permit selections,
    change control of the applicant, claim eligibility for a higher
    percentage of bidding credit or change their self-identification as
    noncommercial educational).[^113] Permissible minor changes include,
    for example, deletion and addition of authorized bidders (to a
    maximum of three) and revision of addresses and telephone numbers of
    the applicants and their contact persons.

65. Any application amendment and related statements of fact must be
    certified by: (1) the applicant, if the applicant is an
    individual, (2) one of the partners if the applicant is a
    partnership, (3) an officer, director, or duly authorized employee,
    if the applicant is a corporation, (4) by a member who is an
    officer, if the applicant is an unincorporated association, (5) the
    trustee if the applicant is an amateur radio service club, or (6) a
    duly elected or appointed official who is authorized to make such
    certifications under the laws of the applicable jurisdiction, if the
    applicant is a governmental entity.[^114]

66. An applicant must make permissible minor changes to its short-form
    application, as such changes are defined by Section 1.2105(b),
    electronically, using the FCC Auction System. Applicants must click
    on the **SUBMIT** button in the FCC Auction System for the changes
    to be submitted and considered by the Commission. After the revised
    application has been submitted, a confirmation page will be
    displayed that states the submission time and date, along with a
    unique file number.

67. In addition, an applicant should submit a letter briefly summarizing
    the changes and subsequently update their short-form applications in
    ISAS as soon as possible. Note: After the filing window has closed,
    the auction system will not permit applicants to make certain
    changes, such as legal classification, NCE status, and bidding
    credit. Any letter describing changes to an applicant's short-form
    application must be submitted by electronic mail to the following
    address: <auction68@fcc.gov>. The electronic mail summarizing the
    changes must include a subject or caption referring to Auction No.
    68 and the name of the applicant (*e.g*., "RE: Changes to Auction
    No. 68 Short-Form Application of ABC Corp."). The Bureaus request
    that parties format any attachments to electronic mail as Adobe^®^
    Acrobat^®^ (pdf) or Microsoft^®^ Word documents. Questions about
    short-form application (FCC Form 175) amendments should be directed
    to Lynne Milne of the Auctions and Spectrum Access Division at (202)
    418-0660.

68. Applicants must **not** submit application-specific material through
    the Commission's Electronic Comment Filing System (ECFS), which was
    used for submitting comments regarding Auction No. 68 procedures.

## Maintaining Current Information in Short-Form Applications (FCC Form 175)

69. 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.[^115] Changes that cause a loss of or reduction in
    the percentage of bidding credit specified on the originally
    submitted Form 175 application must be reported immediately.[^116]
    If an amendment reporting substantial changes is a "major amendment"
    as defined by 47 C.F.R. § 1.2105, the major amendment will not be
    accepted and may result in the dismissal of the short-form
    application.[^117]

### Maintaining the Accuracy of FCC Form 175 Information

70. As noted in Section II.H., after the short-form filing deadline,
    applicants may make only minor changes to their FCC Form 175
    applications, for example, deletion and addition of authorized
    bidders (to a maximum of three). Applicants must click on the
    **SUBMIT** button in the FCC Auction System for the changes to be
    submitted and considered by the Commission. In addition, applicants
    must submit a letter, briefly summarizing the changes, by electronic
    mail at the following address: <auction68@fcc.gov>. The electronic
    mail summarizing the changes must include a subject or caption
    referring to Auction No. 68 and the name of the applicant. The
    Bureaus requests that parties format any attachments to electronic
    mail as Adobe^®^ Acrobat^®^ (pdf) or Microsoft^®^ Word documents.

71. Applicants must **not** submit application-specific material through
    ECFS into the record of the proceeding concerning Auction No. 68
    procedures.

# PRE-AUCTION PROCEDURES

## Auction Seminar 

72. There will be no auction seminar for Auction No. 68. A previously
    held FM broadcast auction seminar is available for individuals to
    view. The Auction No. 62 seminar provided attendees information
    about pre-auction procedures, completing FCC Form 175, auction
    conduct, the FCC Auction System, auction rules, and the FM broadcast
    service rules. The Audio/Video webcast of the Auction No. 62 seminar
    is available from the FCC's Auction No. 62 web page at
    [http://wireless.fcc.gov/auctions/62/](http://wireless.fcc.gov/auctions/default.htm?job=auction_summary&id=62).
    Select the "Auction Seminar" link. FCC staff are available to answer
    questions concerning the auction, auction procedures, filing
    requirements, and other matters related to this auction. (Note that,
    to the extent that competitive bidding procedures discussed in that
    presentation may have differed from those described in this public
    notice, the procedures and instructions described herein will
    control and must be followed.)

## Short-Form Application (FCC Form 175) --- Due Before 6:00 p.m. ET on November 13, 2006

73. In order to be eligible to bid in this auction, applicants must
    first submit an FCC Form 175 application electronically via the FCC
    Auction System.[^118] This application must be received at the
    Commission prior to 6:00 p.m. ET on November 13, 2006. **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.[^119]

74. Applications may generally be filed at any time beginning at noon ET
    on November 6, 2006, until 6:00 p.m. ET on November 13, 2006.
    Applicants are strongly encouraged to file early and are responsible
    for allowing adequate time for filing their applications. Applicants
    may update or amend their applications multiple times until the
    filing deadline on November 13, 2006.

75. An applicant must always click on the **SUBMIT** button on the
    Certify & Submit screen of the electronic form to successfully
    submit its FCC Form 175 or modifications. Any form that is not
    submitted will not be reviewed by the FCC. Information about
    accessing, completing, and viewing the FCC Form 175 is included in
    Attachment B. FCC Auctions Technical Support is available at (877)
    480-3201, option nine; (202) 414-1250; 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. In order to provide better service to the
    public, all calls to Technical Support are recorded.

## Application Processing and Minor Corrections

76. 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 resubmitting corrected applications.

77. Non-mutually exclusive applications will be listed in a subsequent
    public notice to be released by the Bureaus. Such applications will
    not proceed to auction, but will proceed in accordance with
    instructions set forth in that public notice.[^120] All mutually
    exclusive applications will be considered under the relevant
    procedures for conflict resolution. Mutually exclusive commercial
    applications will proceed to auction.[^121] In the *NCE Second
    Report and Order*, the Commission held that applications for NCE FM
    stations on nonreserved spectrum, filed during an FM filing window,
    will be returned as unacceptable for filing if mutually exclusive
    with any application for a commercial station.[^122] Accordingly, if
    an FCC Form 175 filed during the Auction No. 68 filing window
    identifying the applicant as noncommercial educational is mutually
    exclusive with any application filed during that window by an
    applicant for a commercial station, the former will be returned as
    unacceptable for filing.[^123]

78. As described more fully in the Commission's rules, after the
    short-form filing deadline on November 13, 2006, 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 construction permit
    selections, change control of the applicant, claim eligibility for a
    higher percentage of bidding credit or change their
    self-identification as NCE).[^124]

## Upfront Payments --- Due December 11, 2006

79. 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 sent by facsimile to Mellon Bank in Pittsburgh, PA.
    **All upfront payments must be received in the proper account at
    Mellon Bank before 6:00 p.m. ET on December 11, 2006.**

### Making Auction Payments by Wire Transfer 

80. Wire transfer payments must be received before 6:00 p.m. ET on
    December 11, 2006. 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
>
> 500 Ross St.
>
> Pittsburgh, PA 15262
>
> BENEFICIARY: FCC/Account \# 910-0180
>
> Originating Bank Information (OBI Field): (Skip one space between each
> information item)
>
> "AUCTIONPAY"
>
> APPLICANT FCC REGISTRATION NUMBER (FRN): (same as FCC Form 159, block
> 21)
>
> PAYMENT TYPE CODE: (same as FCC Form 159, block 24A: "A68U")
>
> FCC CODE 1: (same as FCC Form 159, block 28A: "68")
>
> PAYER NAME: (same as FCC Form 159, block 2)
>
> LOCKBOX NO. \# 358420

**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.

81. At least one hour before placing the order for the wire transfer
    (but on the same business day), applicants must send by facsimile a
    completed FCC Form 159 (Revised 2/03) to Mellon Bank at (412)
    209-6045. On the cover sheet of the facsimile, write "Wire Transfer
    --- Auction Payment for Auction No. 68." In order to meet the
    Commission's upfront payment deadline, an applicant's payment must
    be credited to the Commission\'s account before the deadline.[^125]
    **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.**

82. 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. 68 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 specified deadline on
    December 11, 2006, will result in dismissal of the application and
    disqualification from participation in the auction.

### FCC Form 159

83. A completed FCC Remittance Advice Form (FCC Form 159, Revised 2/03)
    must be sent by facsimile 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 C to this Public Notice. An electronic pre-filled version
    of the FCC Form 159 is available after submitting the FCC Form 175.
    Payors using a pre-filled FCC Form 159 are responsible for ensuring
    that all of the information on the form, including payment amounts,
    is accurate. The FCC Form 159 can be completed electronically, but
    must be filed with Mellon Bank via facsimile.

### Upfront Payments and Bidding Eligibility

84. In the *Part 1 Order*, the Commission delegated to the Bureaus the
    authority and discretion to determine appropriate upfront payment(s)
    for each auction.[^126] In addition, in the *Part 1* *Fifth Report
    and Order*, the Commission ordered that applicants that are "former
    defaulters" be required to pay upfront payments 50 percent greater
    than non-former defaulters.[^127] 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.[^128]

85. In the *Auction No. 68 Comment Public Notice*, we proposed that the
    amount of the upfront payment would determine a bidder's initial
    bidding eligibility, the maximum number of bidding units on which a
    bidder may place bids.[^129] In order to bid on a construction
    permit, otherwise qualified bidders that selected that construction
    permit on FCC Form 175 must have a current eligibility level that
    meets or exceeds the number of bidding units assigned to that
    construction permit. At a minimum, therefore, an applicant's total
    upfront payment must be enough to establish eligibility to bid on at
    least one of the construction permits selected on its FCC 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 construction permits the applicant selected on its FCC
    Form 175, but rather to cover the maximum number of bidding units
    that are associated with construction permits on which the bidder
    wishes to place bids and hold provisionally winning bids at any
    given time.[^130]

86. In the *Auction No. 68 Comment Public Notice*, the Bureaus proposed
    upfront payments for each construction permit taking into account
    various factors related to the efficiency of the auction process and
    the potential value of similar spectrum and sought comment on this
    proposal. The specific upfront payments and bidding units for each
    construction permit are set forth in Attachment A of this Public
    Notice.

87. In calculating its upfront payment amount, an applicant should
    determine the **maximum** number of bidding units on which it may
    wish to be active (bid on or hold provisionally winning bids on) in
    any single round, and submit an upfront payment amount covering that
    number of bidding units. In order to make this calculation, an
    applicant should add together the upfront payments for all
    construction permits on which it seeks to be active in any given
    round. **Applicants should check their calculations carefully,
    because it is not possible to increase a bidder's eligibility after
    the upfront payment deadline.**

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

  **Construction   **Market Name**       **Bidding Units**  **Upfront
  Permit**                                                  Payment**

  MM-FM366-A       Covelo, CA            7,500              \$7,500

  MM-FM068-A       Perry, FL             15,000             \$15,000

  If a bidder                                               
  wishes to bid on                                          
  both                                                      
  construction                                              
  permits in a                                              
  round, it must                                            
  have selected                                             
  both on its FCC                                           
  Form 175 and                                              
  purchased at                                              
  least 22,500                                              
  bidding units                                             
  (7,500 +                                                  
  15,000). If a                                             
  bidder only                                               
  wishes to bid on                                          
  one, but not                                              
  both, purchasing                                          
  15,000 bidding                                            
  units would meet                                          
  the requirement                                           
  for either                                                
  construction                                              
  permit. The                                               
  bidder would be                                           
  able to bid on                                            
  either                                                    
  construction                                              
  permit, **but                                             
  not both at the                                           
  same time**. If                                           
  the bidder                                                
  purchased only                                            
  7,500 bidding                                             
  units, it would                                           
  have enough                                               
  eligibility for                                           
  the Covelo, CA,                                           
  construction                                              
  permit but not                                            
  for the Perry,                                            
  FL, construction                                          
  permit.                                                   
  ---------------- --------------------- ------------------ -----------------

88. "Former defaulters" should calculate their upfront payment for all
    construction permits by multiplying the number of bidding units on
    which they wish to be active by 1.5.[^131] 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. If a "former defaulter"
    fails to submit a sufficient upfront payment to establish
    eligibility to bid on at least one of the construction permits for
    which the applicant applied on its FCC Form 175, the applicant will
    not be eligible to participate in the auction.

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

89. To ensure that refunds of upfront payments are processed in an
    expeditious manner, the Commission is requesting that all pertinent
    information listed below be supplied to the FCC. Applicants can
    provide the information electronically during the initial
    application filing window after the application has been submitted.
    (Applicants are reminded that information submitted as part of an
    FCC Form 175 will be available to the public; for that reason, wire
    transfer information should **not** be included in an FCC Form 175.)
    Wire Transfer Instructions can also be manually sent by facsimile to
    the FCC, Financial Operations Center, Auctions Accounting Group,
    ATTN: Gail Glasser, at (202) 418-2843. 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
>
> Address of Bank
>
> 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.[^132])
Eligibility for refunds is discussed in Section V.E., below.

## Auction Registration

90. 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 construction permits for which they applied.

91. All qualified bidders are automatically registered for the auction.
    Registration materials will be distributed prior to the auction by
    overnight mail. The mailing will be sent only to the contact person
    at the contact address listed in the FCC Form 175 and will include
    the SecurID^®^ cards that will be required to place bids, the
    Integrated Spectrum Auction System (ISAS) Bidder's Guide, and the
    Auction Bidder Line phone number.

92. Qualified bidders that do not receive this registration mailing will
    not be able to submit bids. Therefore, any qualified bidder that has
    not received this mailing by noon on Thursday, January 4, 2007,
    should call (717) 338-2868. Receipt of this registration mailing is
    critical to participating in the auction, and each applicant is
    responsible for ensuring it has received all of the registration
    material.

93. In the event that 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).

## Remote Electronic Bidding 

94. The Commission will conduct this auction over the Internet, and
    telephonic bidding will be available as well. Qualified bidders are
    permitted to bid electronically and telephonically. 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, the telephonic bidding telephone number, and
    the Integrated Spectrum Auction System (ISAS) Bidder's Guide 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. 68.

95. 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 closed.

## Mock Auction -- January 8, 2007 

96. All qualified bidders will be eligible to participate in a mock
    auction on Monday, January 8, 2007. The mock auction will enable
    applicants to become familiar with the FCC Auction System prior to
    the auction. Participation by all bidders is strongly recommended.
    Details will be announced by public notice.

# AUCTION EVENT

97. The first round of bidding for Auction No. 68 will begin on
    Wednesday, January 10, 2007. The initial bidding schedule will be
    announced in a public notice listing the qualified bidders, which is
    to be released approximately 10 days before the start of the
    auction.

## Auction Structure

### Simultaneous Multiple Round Auction

98. In the *Auction No. 68 Comment Public Notice*, we proposed to
    auction all construction permits in Auction No. 68 in a single
    auction using the Commission's standard simultaneous multiple-round
    ("SMR") auction format.[^133] As described further below, this type
    of auction offers every construction permit for bid at the same time
    and consists of successive bidding rounds in which eligible bidders
    may place bids on individual construction permits. A bidder may bid
    on, and potentially win, any number of construction permits.
    Typically, bidding remains open on all construction permits until
    bidding stops on every construction permit, unless a modified
    stopping rule is invoked.

99. Mullaney Engineering, Inc. ("Mullaney") in its comments suggests
    that rather than keep bidding open until bidding stops on all
    permits, we close bidding on each permit once there has been no
    activity on that permit for ten rounds.[^134] Mullaney insists that
    keeping all permits open "increases the administrative costs for the
    new entrant bidder" because that bidder is "forced to continue
    monitoring each round of the bidding despite the fact that their
    allotment may not have had any activity for ten or more
    rounds."[^135]

100. Through its experience with auctions, the Commission has found that
     the simultaneous multiple round bidding design best advances the
     goals of competitive bidding. This auction design generates the
     most information about relative prices during the course of the
     auction and provides bidders with the greatest flexibility to
     pursue back-up strategies. Adoption of Mullaney's proposal would
     reduce the flexibility of bidders to implement backup strategies in
     response to price information developed as the auction continues.
     Furthermore, in addition to the informational and bidding
     flexibility advantages, simultaneous multiple round auctions
     engender vigorous competition and are more likely to place
     construction permits in the hands of the bidder with the highest
     valuation.[^136] We therefore conclude that it is operationally
     feasible and appropriate to auction the FM broadcast stations
     construction permits through a simultaneous multiple round auction,
     and we decline to adopt Mullaney's proposal. Unless otherwise
     announced, bids will be accepted on all construction permits in
     each round of the auction.

### Eligibility and Activity Rules 

101. In the *Auction No. 68 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.[^137] We received no comments concerning the
     eligibility rule.

102. Accordingly, we adopt the proposed use of upfront payments to
     determine initial (maximum) eligibility (as measured in bidding
     units) for Auction No. 68. The amount of the upfront payment
     submitted by a bidder determines initial bidding eligibility, the
     maximum number of bidding units on which a bidder may be active. As
     noted earlier, each construction permit is assigned a specific
     number of bidding units equal to the upfront payment listed in
     Attachment A on a bidding unit per dollar basis. Bidding units for
     a given construction permit do not change as prices rise during the
     auction. A bidder's upfront payment is not attributed to specific
     construction permits. Rather, a bidder may place bids on any of the
     construction permits selected on its FCC Form 175 as long as the
     total number of bidding units associated with those construction
     permits does not exceed its current eligibility. Eligibility cannot
     be increased during the auction; it can only remain the same or
     decrease. Thus, in calculating its upfront payment amount, an
     applicant must determine the maximum number of bidding units it may
     wish to bid on or hold provisionally winning bids on in any single
     round, and submit an upfront payment amount covering that total
     number of bidding units. **The total upfront payment does not
     affect the total dollar amount a bidder may bid on any given
     construction permit.**

103. In order to ensure that an 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 bidding eligibility during
     each round of the auction.

104. In the *Auction No. 68 Comment Public Notice*, the Bureaus proposed
     to conduct this auction in one stage and employ a 100 percent
     activity rule. We received no comments on our proposal for a single
     stage auction. Because we expect our proposals in this regard to
     maintain an appropriate pace of bidding in this auction, we adopt
     our proposal for one stage with the following activity requirement:
     a bidder is required to be active on 100 percent of its current
     eligibility during each round of the auction.

105. A bidder's activity level in a round is the sum of the bidding
     units associated with construction permits on which the bidder is
     active. A bidder is considered active on a construction permit in
     the current round if it is either the provisionally winning bidder
     at the end of the previous bidding round or if it submits a bid in
     the current round (*see* "Bid Amounts" in Section IV.B.3, *below*).
     Failure to maintain the requisite activity level will result in the
     use of an activity rule waiver, if any remain, or a reduction in
     the bidder's eligibility, possibly curtailing or eliminating the
     bidder's ability to place bids in the auction.[^138]

### Activity Rule Waivers

106. In the *Auction No. 68 Comment Public Notice*, we proposed that
     each bidder in the auction be provided with three activity rule
     waivers.[^139] We received no comments on this issue. Therefore, we
     adopt our proposal that each bidder be provided three activity rule
     waivers. We are satisfied that providing three waivers over the
     course of the auction will give bidders a sufficient number of
     waivers and flexibility, while also safeguarding the integrity of
     the auction.

107. Bidders may use an activity rule waiver 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 minimum activity
     level. An activity rule waiver applies to an entire round of
     bidding and not to a particular construction permit. Activity rule
     waivers can be either applied proactively by the bidder (a
     "proactive waiver") or applied automatically by the FCC Auction
     System (an "automatic waiver") and are principally a mechanism for
     auction participants to avoid the loss of bidding eligibility in
     the event that exigent circumstances prevent them from placing a
     bid in a particular round.

108. The FCC Auction System assumes that bidders with insufficient
     activity would prefer to apply an activity rule waiver (if
     available) rather than lose bidding eligibility. Therefore, the
     system will automatically apply a waiver at the end of any bidding
     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. If a bidder has no waivers remaining and does
     not satisfy the activity requirement, the FCC Auction System will
     permanently reduce the bidder's eligibility, possibly curtailing or
     eliminating the bidder's ability to place additional bids in the
     auction.

109. 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
     bidding round by using the "reduce eligibility" function in the FCC
     Auction System. In this case, the bidder's eligibility is
     permanently reduced to bring the bidder into compliance with the
     activity rules as described in "Eligibility and Activity Rules"
     (*see* Section IV.A.2 *above*). Once eligibility has been reduced,
     a bidder will not be permitted to regain its lost bidding
     eligibility even if the round has not yet closed.

110. Finally, a bidder may apply an activity rule waiver proactively as
     a means to keep the auction open without placing a bid. If a bidder
     proactively applies an activity waiver (using the "apply waiver"
     function in the FCC Auction System) during a bidding round in which
     no bids are submitted, the auction will remain open and the
     bidder's eligibility will be preserved. However, an automatic
     waiver applied by the FCC Auction System in a round in which there
     are no new bids will not keep the auction open.

111. A bidder cannot submit a proactive waiver after submitting a bid in
     a round, and submitting a proactive waiver will preclude a bidder
     from placing any bids in that round. **Note: Applying a waiver is
     irreversible; once a proactive waiver is submitted that waiver
     cannot be unsubmitted, even if the round has not yet closed.**

### Auction Stopping Rules

112. For Auction No. 68, the Bureaus proposed to employ a simultaneous
     stopping rule approach.[^140] The Bureaus also sought comment on a
     modified version of the simultaneous stopping rule ("modified
     stopping rule"). The modified stopping rule would close the auction
     for all construction permits after the first round in which no
     bidder applies a waiver or submits any new bids on any construction
     permit on which it is not the provisionally winning bidder. Thus,
     absent any other bidding activity, a bidder placing a new bid on a
     construction permit for which it is the provisionally winning
     bidder would not keep the auction open under this modified stopping
     rule.

113. The Bureaus further proposed retaining the discretion to keep the
     auction open even if no new bids or proactive waivers are submitted
     in a round. In this event, the effect will be the same as if a
     bidder had applied a 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.

114. In addition, we proposed that the Bureaus reserve the right to
     declare that the auction will end after a specified number of
     additional rounds ("special stopping rule"). If the Bureaus invoke
     this special stopping rule, they will accept bids in the specified
     final round(s) and the auction will close.

115. We proposed to exercise these options 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.[^141] We
     noted that before exercising these options, the Bureaus are likely
     to attempt to increase the pace of the auction by, for example,
     increasing the number of bidding rounds per day, and/or increasing
     the amount of the minimum bid increments for the limited number of
     construction permits where there is still a high level of bidding
     activity.

116. We received no comments on the proposals about stopping rules. We
     find that the proposed stopping rules are appropriate for Auction
     No. 68, because our experience in prior auctions demonstrates that
     these stopping rules balance interests of administrative efficiency
     and maximum bidder participation. Therefore we adopt the proposals
     made in the *Auction No. 68 Comment Public Notice*. Auction No. 68
     will begin under the simultaneous stopping rule approach, and the
     Bureaus will retain the discretion to employ the other versions of
     the stopping rule. Moreover, the Bureaus will retain the discretion
     to use the modified stopping rule with or without prior
     announcement during the auction.

### Auction Delay, Suspension, or Cancellation

117. In the *Auction No. 68 Comment Public Notice*, we proposed that, by
     public notice or by announcement during the auction, the Bureaus
     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.[^142] We received no comment on this issue.

118. Because our approach to notification of delay during an auction has
     proven effective in resolving exigent circumstances in previous
     auctions, we adopt our proposed rules regarding auction delay,
     suspension, or cancellation. By public notice or by announcement
     during the auction, the Bureaus 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 Bureaus, in their 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 Bureaus to delay or suspend the auction. We emphasize that
     exercise of this authority is solely within the discretion of the
     Bureaus, 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

119. 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.

120. The Bureaus have the 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 Bureaus 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 and Minimum Opening Bids

121. Section 309(j) of the Communications Act of 1934, as amended, calls
     upon the Commission to prescribe methods by which a reasonable
     reserve price will be required or a minimum opening bid established
     when applications for FCC licenses or construction permits 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.[^143] Consistent with
     this mandate, the Commission directed the Bureaus to seek comment
     on the use of a minimum opening bid and/or reserve price prior to
     the start of each auction.[^144] Among other factors, the Bureaus
     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.[^145] The
     Commission concluded that the Bureaus should have the discretion to
     employ either or both of these mechanisms for future
     auctions.[^146] This is consistent with policy applied in earlier
     spectrum auctions, including Auction Nos. 25, 27, and 54 (Closed
     Broadcast); Auction No. 32 (AM Broadcast); and Auction Nos. 37 and
     62 (FM Broadcast).

122. In the *Auction No. 68 Comment Public Notice*, the Bureaus proposed
     to establish minimum opening bids for Auction No. 68, reasoning
     that a minimum opening bid, successfully used in other broadcast
     auctions, is a valuable tool, effectively regulating the pace of
     the auction.[^147] Specifically, a minimum opening bid was proposed
     for each construction permit listed in Attachment A. The minimum
     opening bid was determined by taking into account various factors
     relating to the efficiency of the auction and the potential value
     of the spectrum, including the type of service and class of
     facility offered, market size, population covered by the proposed
     FM broadcast facility, industry cash flow data, and recent
     broadcast transactions. Based on our experience in using minimum
     opening bids in other auctions, we believe that minimum opening
     bids speed the course of the auction and ensure that valuable
     assets are not sold for nominal prices, without unduly interfering
     with the efficient awarding of construction permits.[^148]

123. In the alternative, the Bureaus sought comment on whether,
     consistent with the Section 309(j), the public interest would be
     served by having no minimum opening bid or reserve price.[^149]
     Mullaney objects to the minimum opening bid amounts proposed in the
     *Auction No. 68 Comment Public Notice* and requests that the
     minimum opening bids be reduced to ten percent of the proposed
     amounts or a minimum of \$500.[^150] Mullaney's objections,
     however, proceed from Mullaney's speculation that the permits being
     offered in Auction No. 68 were unsold in Auction Nos. 37 and 62
     because "the public found the minimum opening bids to be much too
     high."[^151] On the contrary, analysis of the Auction Nos. 37 and
     62 bidding reveals that, in each case, multiple bidders placed bids
     on these nine permits that exceeded the minimum opening bid amount
     in that auction, and in most cases bids were substantially higher
     than the minimum opening bid. Moreover, the bidding history for
     these permits suggests that the minimum opening bid amounts
     continued to serve the intended purpose in those prior auctions,
     thereby promoting efficiency in the assignment of FM construction
     permits. We thus reject Mullaney's arguments that the specified
     minimum opening bid amounts are too high.[^152]

124. Mullaney also states that we must adopt procedures on how to handle
     vacant allotments that receive no auction bids or when there is a
     payment default.[^153] Mullaney suggests that , if a permit remains
     unsold at the end of the auction, that allotment should be
     deleted.[^154] However, Mullaney mistakenly assumes that most of
     the nine permits being offered in Auction No. 68 received no bids
     in Auction Nos. 37 and/or 62.[^155] To the contrary, all of these
     permits received multiple bids in prior FM auctions.[^156] We find
     no basis reason to depart from the Commission's established
     procedures for the assignment of construction permits.

125. We conclude that the proposed minimum opening bid amounts are
     appropriate, and we adopt our proposed amounts. The minimum opening
     bid amounts we adopt for Auction No. 68 are reducible at the
     discretion of the Bureaus. 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
     Bureaus will not entertain requests to reduce the minimum opening
     bid amount on specific construction permits.

126. The specific minimum opening bid amounts for each construction
     permit available in Auction No. 68 are set forth in Attachment
     A.[^157]

### Bid Amounts 

127. In the *Auction No. 68 Comment Public Notice*, we proposed to use a
     minimum acceptable bid increment of 10 percent. This means that the
     minimum acceptable bid amount for a construction permit will be
     approximately 10 percent greater than the provisionally winning bid
     amount for the construction permit. The minimum acceptable bid
     amount will be calculated by multiplying the provisionally winning
     bid amount times one plus the minimum acceptable bid percentage --
     *i*.*e.*, (provisionally winning bid amount) \* (1.10). We will
     round the result using our standard rounding procedures.[^158] We
     further proposed to retain the discretion to change the minimum
     acceptable bid amounts and bid increments amounts if we determine
     that circumstances so dictate. Mullaney asserts that our proposed
     bid increments are too low. We reject Mullaney's suggestion that
     bid increments be increased to two, three, four, and five times the
     current bid.[^159] Our experience in the previous FM auctions
     assures us that the bid increments in use are sufficient to ensure
     active bidding. Thus, we will begin the auction with a minimum
     acceptable bid percentage of 10 percent.

128. In each round, each eligible bidder will be able to place a bid on
     a particular construction permit for which it applied in any of
     nine different amounts.[^160] The FCC Auction System will list the
     nine bid amounts for each construction permit.[^161] The nine bid
     amounts for each construction permit consist of the minimum
     acceptable bid amount calculated using a bid increment percentage.

129. The calculation of the minimum acceptable bid amounts for each
     construction permit for the next round is made at the end of each
     round. The acceptable bid amounts in addition to the minimum
     acceptable bid amount for each construction permit are calculated
     using a **bid increment** percentage. The first additional
     acceptable bid amount equals the minimum acceptable bid amount
     times one plus the bid increment percentage, rounded --- *e.g.*, if
     the increment percentage is 10 percent, the calculation is (minimum
     acceptable bid amount) \* (1 + 0.10), rounded, or (minimum
     acceptable bid amount) \* 1.10, rounded; the second additional
     acceptable bid amount equals the minimum acceptable bid amount
     times one plus two times the bid increment percentage, rounded, or
     (minimum acceptable bid amount) \* 1.20, rounded; the third
     additional acceptable bid amount equals the minimum acceptable bid
     amount times one plus three times the bid increment percentage,
     rounded, or (minimum acceptable bid amount) \* 1.30, rounded; etc.

130. The Bureaus retain the discretion to change the minimum acceptable
     bid amounts, the minimum acceptable bid percentage, and the bid
     increment percentage if they determine that circumstances so
     dictate. The Bureaus will do so by announcement in the FCC Auction
     System during the auction. The Bureaus may also use its discretion
     to adjust the minimum bid increment amount without prior notice if
     circumstances warrant.

### Provisionally Winning Bids 

131. At the end of each bidding round, a "provisionally winning bid"
     will be determined based on the highest bid amount received for
     each construction permit. A provisionally winning bid will remain
     the provisionally winning bid until there is a higher bid on the
     same construction permit at the close of a subsequent round.
     Provisionally winning bids at the end of the auction become the
     winning bids. Bidders are reminded that provisionally winning bids
     count toward activity for purposes of the activity rule.[^162]

132. In the *Auction* *No. 68 Comment Public Notice*, the Bureaus
     proposed to use a random number generator to select a single
     provisionally winning bid in the event of identical high bid
     amounts being submitted on a construction permit in a given round
     (*i.e.*, tied bids).[^163] No comments were received on this
     proposal. Therefore, the Bureaus adopt their proposal.

133. A pseudo-random number generator based on the L'Ecuyer algorithms
     will be used to assign a random number to each bid.[^164] The tied
     bid with the highest random number wins the tiebreaker, and becomes
     the provisionally winning bid. The remaining eligible bidders, as
     well as the provisionally winning bidder, can submit higher bids in
     subsequent rounds. However, if the auction were to end with no
     other bids being placed, the winning bidder would be the one that
     placed the selected provisionally winning bid.

134. During a round, a bidder may submit bids for as many construction
     permits as it wishes (providing that it is eligible to bid), remove
     bids placed in the current bidding round, or permanently reduce
     eligibility. Bidders also have the option of submitting and
     removing multiple bids during a round. If a bidder submits multiple
     bids for a single construction permit 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
     construction permits for which the bidder has removed its bid do
     not count towards the bidder's current activity.

135. All bidding will take place remotely either through the FCC Auction
     System or by telephonic bidding. There will be no on-site bidding
     during Auction No. 68. Please note that 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 telephonic bid submission.

136. A bidder's ability to bid on specific construction permits is
     determined by two factors: (1) the construction permits selected on
     the bidder's FCC Form 175 and (2) the bidder's eligibility. The bid
     submission screens will allow bidders to submit bids on only those
     construction permits the bidder selected on its FCC Form 175.

137. In order to access the bidding function of the FCC Auction System,
     bidders must be logged in during the bidding round using the
     passcode generated by the SecurID^®^ card and a personal
     identification number (PIN) created by the bidder. Bidders are
     strongly encouraged to print a "round summary" for each round after
     they have completed all of their activity for that round.

138. In each round, eligible bidders will be able to place bids on a
     given construction permit in any of nine different amounts.[^165]
     For each construction permit, the FCC Auction System will list the
     nine acceptable bid amounts in a drop-down box.[^166] Bidders use
     the drop-down box to select from among the acceptable bid amounts.
     The FCC Auction System also includes an "upload" function that
     allows bidders to upload text files containing bid information.

139. Until a bid has been placed on a construction permit, the minimum
     acceptable bid amount for that construction permit will be equal to
     its minimum opening bid amount. Once there are bids on a
     construction permit, minimum acceptable bids for a construction
     permit for the following round will be determined as described in
     Section IV.B.3.

### Bid Removal and Bid Withdrawal 

140. In the *Auction No. 68 Comment Public Notice*, we proposed bid
     removal and bid withdrawal procedures.[^167] We received no
     comments on the issue of bid removals. Therefore, the Bureaus adopt
     their proposals concerning bid removals.

141. With respect to bid withdrawals, we proposed that bidders not be
     permitted to withdraw bids in any round. In substantially identical
     comments, Legacy Media Company, Inc. ("Legacy") and Concerned
     Citizens of Hawaii ("Citizens") argue that the Commission needs to
     eliminate a "loophole" in the Commission\'s withdrawal payment rule
     provisions.[^168] Legacy and Citizens suggest that the Commission's
     rules governing bid withdrawal payments create an incentive for
     bidders to withdraw because of the time that may elapse before a
     withdrawing bidder's final withdrawal payment liability is
     determined.[^169] Legacy and Citizens describe four instances of
     sequential withdrawals by the same bidders in FM Auction Nos. 37
     and 62, resulting in delayed service to the public. Legacy and
     Citizens argue that a withdrawing bidder should be barred from
     bidding on the same FM allotments in future auctions, such as
     Auction No. 68.[^170] Further, Legacy and Citizens ask that the
     Commission "clarify" that a withdrawn bid is a failure to make
     payment on a provisionally winning bid and this: (1) is a default
     on a payment for a Commission license within the meaning of the
     current defaulter certification specified at 47 C.F.R. §
     1.2105(a)(1)(x), (2) must be disclosed on a short-form application
     for subsequent auctions, and (3) bars participation by that
     withdrawing bidder in subsequent auctions, unless good cause is
     demonstrated.[^171]

142. In contrast, Steven R. Bartholomew opposes the Commission's
     proposal not to permit bid withdrawals in Auction No. 68,
     specifically characterizing as "idle speculation" the assertion by
     Legacy and Citizens that withdrawals by four bidders in FM Auction
     Nos. 37 and 62 delayed the submission of at least \$1,801,000 to
     the U.S. Treasury.[^172] Bartholomew claims that withdrawals
     facilitate potential deals with auction non-participants to trade
     licenses and make it easier for financially constrained small
     bidders to engage in "parking" of bids on construction permits in
     which they are not interested in order to avoid bidding up the
     prices of the construction permits in which they are interested. In
     his reply comments, Bartholomew asserts that there were no "bona
     fide" applicants who were harmed by the withdrawals in the two
     earlier auctions.[^173] We reject Bartholomew's arguments and note
     that our auction procedures, including withdrawal and activity
     rules, are designed to encourage participation by all interested
     parties and straightforward bidding by auction participants, so
     that the auction mechanism will assign the permits directly to the
     parties that value them most highly.

143. In addition, Bartholomew argues against the suggestion of Legacy
     and Citizens that bidders that withdrew bids in Auction Nos. 37 or
     62 not be permitted to participate in Auction No. 68,[^174] and
     alternatively, suggests that the FCC privately offer those bidders
     the opportunity to reinstate their withdrawn bids.[^175]
     Bartholomew also challenges the Commission's withdrawal payment
     procedures from the previous auctions. In his reply comments,
     Bartholomew proposes several revisions to the Commission's
     withdrawal payment rules, including a new flat 10 percent final
     withdrawal payment based on the amount of the withdrawn bid, to
     replace the current interim and final withdrawal payments based, in
     part, on the winning bid for the particular construction permit or
     license in the same or a subsequent auction.[^176]

144. Generally, these proposals all seek to change various aspects of
     the Commission's competitive bidding rules, which would require a
     rulemaking and is therefore outside of the scope of the issues upon
     which the Bureaus have invited comment. With respect to
     Bartholomew's suggestion to impose an additional bid withdrawal
     payment, we note that the Commission's rules on withdrawal payments
     were recently revised to allow for such additional payments, and we
     are making provision for such payments in this auction. (This
     subject is discussed further below.) Accordingly, the Bureaus adopt
     their proposal concerning bid withdrawals and will not permit
     bidders to withdraw bids in any round during the auction. Moreover,
     because there will be no bid withdrawals in Auction No. 68, the
     concerns raised by Legacy and Citizens regarding sequential
     withdrawals will not arise in this auction. We also decide that it
     is not necessary to take the extra precaution of barring bidders
     who withdrew high bids in the earlier FM auctions from
     participating in Auction No. 68.

145. Bidders are cautioned to select bid amounts carefully because no
     bid withdrawals will be allowed in Auction No. 68, even if a bid
     was mistakenly or erroneously made.

146. **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 bids" function in the FCC Auction 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. Once a round closes, a
     bidder may no longer remove a bid. No comments were received on
     this issue, therefore, we adopt these procedures for Auction No.
     68.

### Round Results

147. Bids placed during a round will not be made public until the
     conclusion of that round. After a round closes, the Bureaus will
     compile reports of all bids placed, current provisionally winning
     bids, new minimum acceptable bid amounts, and bidder eligibility
     status (bidding eligibility and activity rule waivers), and post
     the reports for public access. Reports reflecting bidders'
     identities for Auction No. 68 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

148. The Commission will use auction announcements to announce items
     such as schedule changes. All auction announcements will be
     available by clicking a link in the FCC Auction System.

# POST-AUCTION PROCEDURES

## Down Payments 

149. After bidding has ended, the Commission will issue a public notice
     declaring the auction closed and identifying winning bidders, down
     payments and final payments due.

150. 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. 68 to 20 percent of
     the net amount of its winning bids (gross bids less any applicable
     new entrant bidding credits).[^177]

## Final Payments

151. Recognizing the public benefit of maintaining a consistent set of
     auction procedures across the various auctionable services, in the
     *CSEA/Part 1 Report and Order*, the Commission recently conformed
     the broadcast final payment procedures to the analogous Part 1
     requirements. [^178] Specifically, the Part 1 rules provide that,
     unless otherwise specified by public notice, auction winners are
     required to pay the balance of their winning bids in a lump sum
     within ten business days following the release of a public notice
     establishing the payment deadline.[^179] In recent spectrum
     auctions, the Commission has required each winning bidder to submit
     the balance of the net amount of its winning bid(s) within ten
     business days after the deadline for submitting down payments.
     Consistent with this approach, for Auction No. 68 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.[^180]

## Long-Form Application 

152. Mullaney comments that, because final payment is now due within
     approximately 20 days after release of the auction closing public
     notice announcing winning auction bidders, the time period for
     filing a long-form application (FCC Form 301) should be extended
     from 30 to 90 days from release of that public notice.[^181]
     However, the 30-day period for filing Form 301 is dictated by the
     Commission's Rules,[^182] which may not be changed outside of a
     formal rulemaking proceeding. The Bureaus cannot implement
     Mullaney's proposed change of this filing deadline. Accordingly,
     within thirty days after the release of the auction closing notice,
     winning bidders must electronically submit a properly completed FCC
     Form 301, Application for FM Construction Permit, and required
     exhibits for each construction permit won through Auction No. 68.
     Winning bidders claiming new entrant status must include an exhibit
     demonstrating their eligibility for the bidding credit.[^183]
     Further filing instructions will be provided to auction winners at
     the close of the auction.

## Default and Disqualification

153. Any winning 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). The payments include both a deficiency
     payment, equal to the difference between the amount of the bidder's
     bid and the amount of the winning bid the next time a construction
     permit covering the same spectrum is won in an auction, plus an
     additional payment equal to a percentage of the defaulter's bid or
     of the subsequent winning bid, whichever is less. Pursuant to
     recent modifications to the rule governing default payments, the
     percentage of the applicable bid to be assessed as an additional
     payment for defaults in a particular auction is established in
     advance of the auction. Accordingly, in the *Auction No. 68 Comment
     Public Notice*, we proposed to set the additional default payment
     for the auction of the FM broadcast construction permits at ten
     percent (10%) of the applicable bid. We sought comment on our
     proposal. Legacy and Citizens support a 10 percent additional
     payment for each auction in which a bid is withdrawn.[^184] In
     reply, Bartholomew contends that Legacy and Citizens misunderstand
     the default rules; instead Bartholomew seeks changes to the default
     payment rules.[^185] As mentioned above, the proposed changes to
     default payment rules are outside of the scope of this proceeding.
     Based on our experience and the record before us, we will set the
     additional default payment for this auction of FM broadcast
     construction permits at ten percent (10%) of the applicable bid.

154. Finally, we note that in the event of a default, the Commission may
     re-auction the construction permit or offer it to the next highest
     bidder (in descending order) at its final bid amount.[^186] 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 authorizations held by the applicant.[^187]

## Refund of Remaining Upfront Payment Balance 

155. All applicants that submit upfront payments but after the close of
     the auction are not winning bidders for a construction permit in
     Auction No. 68 may be entitled to a refund of their remaining
     upfront payment balance after the conclusion of the auction. 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.

156. 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 and have no remaining bidding eligibility may also be
     eligible for a refund of their upfront payment before the close of
     the auction. If an applicant has completed the refund instructions
     electronically, the refund will be sent automatically. If an
     applicant has not completed the refund instructions electronically,
     a written request must be submitted for the refund and include wire
     transfer instructions, Taxpayer Identification Number (TIN) and FCC
     Registration Number (FRN). Send refund requests to:

> Federal Communications Commission
>
> Financial Operations Center
>
> Auctions Accounting Group
>
> Gail Glasser
>
> 445 12th Street, SW, Room 1-C864
>
> Washington, DC 20554

157. Bidders are encouraged to file their refund information
     electronically using the **Refund Information** icon found on the
     *Auction Application Manager* page or through the **Wire Transfer
     for Refund Purposes** link available in various locations
     throughout the FCC Auction System, but bidders may also send their
     information by facsimile 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.

158. Following the close of the auction, the Commission may refund
     upfront monies on deposit that exceed the required final payment
     and/or default payment amounts. Such refunds will be made to the
     payer of record as identified on the FCC Form 159, provided the
     necessary refund request and wire transfer instructions have been
     received.

> NOTE: Refund processing generally takes up to two weeks to complete.
> Bidders with questions about refunds should contact Gail Glasser at
> (202) 418-0578.

#  {#section-1 .unnumbered}

# Contacts

**Media Contact:**

For press inquiries: Chelsea Fallon (202) 418-7991

**Audio Division, Media Bureau:**

For service rule questions: Lisa Scanlan or Thomas Nessinger at (202)
418-2700

**Auctions and Spectrum Access Division:**

For legal questions: Lynne Milne at (202) 418-0660

For general auction questions: Debbie Smith or Lisa Stover at (717)
338-2868

> To request materials in accessible formats (Braille, large print,
> electronic files, audio format) for people with disabilities, send an
> e-mail to <fcc504@fcc.gov> or call the Consumer and Governmental
> Affairs Bureau at (202) 418-0530 or (202) 418-0432 (TTY).

**\-- FCC \--**

#  {#section-2 .unnumbered}

**Auction No. 68 -- FM Broadcast**

**DA 06-1949**

**Attachment A**

  ----------------- -------------- ------------ -------- ------------- ---------------- ----------------- ---- ---- --- --------------- ---- ---- --- ------------ ------------ ------------
  **Construction\   **Market**                  ** **    **Channel**   **Class**        **Coordinates**                                               **Bidding\   **Upfront\   **Minimum\
  Permit**                                                                                                                                            Units**      Payment**    Opening
                                                                                                                                                                                Bid**

                    **State**      **City**                                             **Latitude**                    **Longitude**                                           

  MM-FM366-A        CA             Covelo       \*\*     245           A                39                47   42   N   123             14   54   W   7,500        \$7,500      \$7,500

  MM-FM040-A        CA             Tecopa       \*       291           A                35                50   48   N   116             13   24   W   1,500        \$1,500      \$1,500

  MM-FM063-A        FL             Cedar Key    \*\*\*   261           A                29                8    12   N   83              2    6    W   1,500        \$1,500      \$1,500

  MM-FM068-A        FL             Perry        \*\*\*   228           A                30                7    0    N   83              34   26   W   15,000       \$15,000     \$15,000

  MM-FM079-C2       HI             Kihei        \*       298           C2               20                47   0    N   156             27   48   W   90,000       \$90,000     \$90,000

  MM-FM179-C        MT             Outlook      \*       289           C                48                53   18   N   104             46   42   W   10,000       \$10,000     \$10,000

  MM-FM414-C1       NC             Ocracoke     \*\*     224           C1               34                51   32   N   76              25   0    W   150,000      \$150,000    \$150,000

  MM-FM445-A        PA             Meyersdale   \*\*     253           A                39                48   42   N   79              1    36   W   90,000       \$90,000     \$90,000

  MM-FM318-C2       UT             Parowan      \*       300           C2               37                50   30   N   112             49   30   W   15,000       \$15,000     \$15,000

                                                                                                                                                                                

                                   **Auction             **9**         **Construction                                                                                           
                                   Total**                             Permits**                                                                                                

                                                                                                                                                                                

  \*                Construction                                                                                                                                                
                    permit offered                                                                                                                                              
                    but unsold in                                                                                                                                               
                    Auctions No.                                                                                                                                                
                    37 & No. 62.                                                                                                                                                

  \*\*              Construction                                                                                                                                                
                    permit offered                                                                                                                                              
                    but unsold in                                                                                                                                               
                    Auction No.                                                                                                                                                 
                    62.                                                                                                                                                         

  \*\*\*            Construction                                                                                                                                                
                    permit offered                                                                                                                                              
                    in Auction No.                                                                                                                                              
                    37, but the                                                                                                                                                 
                    winning bidder                                                                                                                                              
                    defaulted.                                                                                                                                                  
  ----------------- -------------- ------------ -------- ------------- ---------------- ----------------- ---- ---- --- --------------- ---- ---- --- ------------ ------------ ------------

**ATTACHMENT B**

**ELECTRONIC FILING AND REVIEW**

**OF THE SHORT-FORM APPLICATION (FCC FORM 175)**

**[PAPERWORK REDUCTION ACT NOTICE]{.underline}**

The Federal Communications Commission uses information collected in FCC
Form 175 in determining whether applicants are legally, technically, and
financially qualified to participate in Commission auctions for licenses
or permits. In addition, if an applicant applies for status as a
particular type of auction participant pursuant to Commission rules, the
Commission uses the information in determining whether the applicant is
eligible for the status requested. The Commission's auctions, including
the collection of information to determine applicants' qualifications to
participate pursuant to Commission rules and requirements, are designed
to limit the competitive bidding to qualified applicants, to deter
possible abuse of the bidding and licensing process, and to enhance the
use of competitive bidding to assign Commission licenses and permits in
furtherance of the public interest.

The Commission estimates that each response to this collection of
information will take on average of 1.5 hours. This estimate includes
the time to read the instructions, look through existing records, gather
and maintain required data, and actually complete and review the form or
response.  If you have any comments on this estimate, or on how we can
improve the collection and reduce the burden it causes you, please write
the Federal Communications Commission, AMD-PERM, Washington, DC 20554,
Paperwork Reduction Project (3060-0600).  PLEASE DO NOT SEND COMPLETED
APPLICATION FORMS TO THIS ADDRESS.

The information collected in FCC Form 175 is required to be filed by all
applicants to participate in a Commission auction, pursuant to Section
309(j)(5) of the Communications Act and Section 1.2105 of the
Commission's rules. *See* 47 U.S.C. § 309(j)(5), 47 C.F.R. § 1.2105.
Information collected in a submitted FCC Form 175 will be available for
public inspection.

You are not required to respond to a collection of information sponsored
by the Federal government, and the government may not conduct or sponsor
this collection, unless it displays a current valid OMB control number
with this notice. This collection has been assigned OMB control number
3060-0600.

**THE FOREGOING NOTICE IS REQUIRED BY THE PAPERWORK REDUCTION ACT OF
1995, PUBLIC LAW 104-13, OCTOBER 1, 1995, 44 U.S.C. SECTION 3507.**

**[APPLICATION PREPARATION AND SUBMISSION]{.underline}**

An applicant must submit its short-form application (FCC Form 175)
electronically, via the FCC Auction System. **The FCC Form 175
applications must be submitted and confirmed prior to 6:00 p.m. ET on
Monday, November 13, 2006.** Late applications or unconfirmed
submissions of electronic data will not be accepted.

Applicants are reminded that all information required in connection with
applications to participate in spectrum license auctions is necessary to
determine each applicant's qualifications, and as such will be available
for public inspection. Accordingly, an applicant should not include any
unnecessary sensitive information, such as Taxpayer Identification
Numbers or Social Security Numbers, in its short-form application.
Applicants may request that information submitted not be made routinely
available for public inspection following the procedures set forth in 47
C.F.R. § 0.459. Pursuant to Section 0.459(a), such requests must be
included as an attachment to FCC Form 175 and identify the information
to which the request applies. Because the required information bears on
each applicant's qualifications, confidentiality requests will not be
routinely granted.

Applicants may make multiple changes to their FCC Form 175 applications
until the close of the filing window. However, applicants must press the
**SUBMIT** button in the FCC Auction System for the changes to be
submitted and considered by the Commission.

## Software Requirements

Applicants must meet the following minimum software requirements:

-   Web Browser:

```{=html}
<!-- -->
```
-   Microsoft^®^ Internet Explorer 6.0 or higher (recommended). Your
    browser must have either Microsoft VM or Java Plug-In Version
    1.4.2_05 installed.

    or

-   Netscape^®^ Communicator™ 6.0 or higher, with Java Plug-In Version
    1.4.2_05.

> Java Plug-In Version 1.4.2_05 is available for downloading at
> ***<http://java.sun.com/products/archive/j2se/1.4.2_05/index.html>***
> (choose the JRE version).
>
> Other browsers are not supported.

-   PDF Viewer: Adobe Acrobat Reader 5.0 or higher (available at
    [***http://www.adobe.com***](http://www.adobe.com/))

> Currently, the Apple^®^ Mac OS^®^ is not supported.

## Logging On

To submit an FCC Form 175 application 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).
Once on the *FCC* *Integrated Spectrum Auction System* page, an
applicant may log in to create an FCC Form 175 application using its FCC
Registration Number (FRN) and password.

## Application Filing Instructions

The on-line FCC Form 175 requests information needed to determine
whether an applicant qualifies to participate in competitive bidding for
Commission licenses or construction permits.[^188] Pursuant to Section
1.2105(a), the FCC Form 175 must be submitted electronically. Applicants
must submit required information as entries in the data fields of the
electronic FCC Form 175 whenever a data field is available for that
information. Attachments should not be used to provide information that
can be supplied within the data fields of the electronic FCC Form 175.

The screens comprising FCC Form 175 consist of six series, each
requesting six separate types of information: 1) *Applicant
Information*; 2) *Permit Selection*; 3) *New Entrant Bidding Credit
Eligibility*; 4) *Agreements*; 5) *Ownership*; and 6) *Certify and
Submit*. In addition, *Summary* screens, appear prior to the *Certify
and Submit* screens. The *Summary* screens provide an overview of an
applicant's FCC Form 175 that facilitates reviewing and revising
specific information, as well as an automated check for certain
inconsistencies and omissions in submitted information.

To simplify filling out FCC Form 175, certain initial information
applicants provide is used to determine what additional information is
needed, and what subsequent screens will appear to collect that
information. For example, a corporate applicant, unlike an individual
applicant, must identify a corporate officer or director responsible for
the application (sometimes called a responsible party). If an applicant
identifies itself as an individual, no additional information is needed
regarding an additional responsible party, and screens requesting
responsible party information will not appear. However, if the applicant
identifies itself as a corporation, subsequent screens in the FCC Form
175 will ask for responsible party information.

Applicants should be able to fill out Form 175 by following the
instructions below. Additional help in filling out FCC Form 175 can be
accessed from the electronic FCC Form 175 in two ways: 1) by clicking on
the **Help** link in the upper right of any screen, which will open
Auction Application Online Filing Help; or 2) by clicking on the text of
any **Common Question** link appearing on the right side of the screen.
The common questions displayed relate to the current screen and vary
from screen to screen. In the event the assistance provided by these
sources is insufficient, filers should use the contact information
provided in the *Procedures Public Notice* to obtain additional
assistance.

### Applicant Information

The *Applicant Information* screens are the first series of screens in
FCC Form 175. In the *Applicant Information* screens, the applicant will
provide basic information including

• the applicant's legal classification, *e.g*., individual, corporation,
etc.

• optional information regarding the applicant's status as a minority-
or woman-owned business or a rural telephone company

• whether the applicant requests Noncommercial Educational election.
This response (yes or no) is mandatory.[^189]

• the applicant's name, which will be used as the bidder name during the
auction

• citizenship (for individuals), or jurisdiction of formation for legal
entities

• for applicants classified as legal entities, *e.g*., corporations and
partnerships, the name of and information regarding the entity's
responsible individual

• the name, address, telephone and facsimile number of a contact person
who will communicate with the Commission regarding the applicant's FCC
Form 175

• the names of up to three persons authorized to bid for the applicant
in the auction

• the applicant's preference for electronic or telephonic bidding

• whether the applicant claims a new entrant bidding credit and the
percentage claimed.[^190]

Each screen will specify the information that the applicant must
provide. Please note the following with respect to particular
information requested:

-   Applicants must indicate their legal classification before
    continuing to subsequent screens, because the legal classification
    will determine which subsequent screens will appear.

-   P.O. Boxes may not be used for an applicant's address.

-   To simplify filling out the FCC Form 175, an applicant that has the
    same address as its contact person can click on the **COPY APPLICANT
    ADDRESS** button to automatically fill in the contact person's
    address. P.O. Boxes may not be used for a contact person's address.

-   Applicants must identify at least one authorized bidder. While
    applicants may change their authorized bidders at a later date, in
    Auction No. 68 only those bidders listed on the FCC Form 175 will be
    authorized to place bids for the applicant during the auction.

-   Any qualified bidder may bid either via the Internet or by telephone
    during the auction. Specifying a preference for electronic or
    telephonic bidding assists the Commission in determining the staff
    required for telephonic bidding.

-   Any application for a noncommercial educational station that is
    mutually exclusive with any application for a commercial station
    will be returned as unacceptable for filing.[^191]

### Permit Selection

The *Permit Selection* screens make up the second series of screens in
FCC Form 175. In the *Permit Selection* screens, the applicant will
identify the construction permits (identified in FCC Form 175 as items)
on which the applicant may wish to bid during the auction. Applicants
are not obligated to bid on all construction permits selected; however,
applicants will not be able to bid on construction permits that they
have not selected on the FCC Form 175.[^192] Be advised that there is no
opportunity to change this list once the short-form filing deadline
passes on November 13, 2006.

To participate in an auction, applicants must select at least one
construction permit. Until the applicant selects a construction permit,
the applicant cannot submit the FCC Form 175. An applicant's permit
selections cannot be changed after the initial filing window has closed.
Therefore, during the initial filing window it is important to carefully
review permit selections to make sure all the construction permits on
which the applicant may wish to bid have been selected.

The Permit Selection screen contains a listing of all available
construction permits in the auction. Construction permits can be
selected by either: 1) clicking the check box next to the construction
permit name, then selecting the "Save Selected Items" button; or by 2)
clicking the "Save all Items" button to save all available construction
permits. Once the applicant has successfully saved a construction
permit, the word "Saved" will appear next to the construction permit
name to confirm that it has been saved with the application.

[NOTE]{.underline}: Construction Permits selected on the Permit
Selection screen will be automatically saved when navigating to another
screen within the Auction Application by using the links and buttons
provided on the screen.

Construction Permits can be removed by either: 1) clicking the check box
(to uncheck) next to a previously saved construction permit, then
selecting the "Remove Selected Items" button; or by 2) clicking the
"Remove all Items" button to remove all previously saved construction
permits. Removed construction permits will not have the word "Saved"
next to the construction permit name.

Applicants may view all saved construction permits by either clicking
the **Edit Icon** next to "View Saved Items" at the top-right corner of
the list, or by clicking the "CONTINUE" button at the bottom of the
page.

Once construction permits have been saved, the View/Edit Permit
Selections screen will be the first screen displayed when navigating to
the Permit Selection step. This screen lists all construction permits
the applicant has selected and saved for the auction. To select a new
construction permit or remove a previously selected construction permit,
click the **Edit Icon** next to "Return to Permit Selection" at the
top-right corner of the list. This will take you to the original *Select
Permits* screen, as described above.

**The reference coordinates are also displayed for each listed FM
allotment. Once the applicant has selected and added an FM permit, the
reference coordinates are followed by a "Edit" icon. Clicking this icon
produces a page on which the applicant can change the reference
coordinate values to preferred site coordinates.**[^193] If the
applicant previously has selected construction permits, the initial
*Permit Selection* screen will be the *View/Edit* *Permit Selections*
screen. This screen lists the construction permits previously selected
for this auction. To select a new construction permit or remove a
previously selected construction permit, click the **Edit** icon next to
Change Selection at the top-right corner of the list. This will take you
to the original *Select Permits* screen, described above.

### New Entrant Bidding Credit Eligibility

The *New Entrant Eligibility* screens are the third series of screens in
FCC Form 175. On the initial screen, applicants indicate whether they
are claiming the New Entrant bidding credit and, if so, whether they are
claiming a 25 percent or 35 percent New Entrant bidding credit.
Applicants should ensure that this bidding credit information is
consistent with the bidding credit eligibility information provided on
the first *Applicant Information* screen.

Applicants claiming either no New Entrant bidding credit or a 35 percent
New Entrant bidding credit will not need to provide additional
information in FCC Form 175 regarding their claimed New Entrant bidding
credit. Such applicants will continue to the next series of
screens.[^194]

Applicants claiming a 25 percent New Entrant bidding credit must provide
additional information regarding existing mass media facilities in which
the applicant, or any individual or entity with an attributable interest
in the applicant, has an attributable interest. Applicants must
identify:

-   the existing mass media facility or facilities;

-   the individual or entity with an attributable interest in the
    existing mass media facility;

-   the attributable interest in the facility; and whether any proposed
    broadcast facilities are in the 'same area' as existing mass media
    facilities, as defined by applicable Commission rules. *See* 47
    C.F.R. §§ 73.5007, 5008.

-   In the event that the applicant indicates that any of the broadcast
    facilities proposed in this auction are in the 'same area' as the
    identified existing mass media facility, the applicant must continue
    to an additional screen where the applicant must indicate which
    proposed broadcast facility in the auction is in the 'same area' as
    the identified existing mass media facility.

Once the applicant has identified all relevant existing mass media
facilities, and all proposed broadcast facilities in the 'same area' as
each relevant existing mass media facility, applicants will continue to
the View/Edit All Facilities screen. This screen lists the applicant's
claimed New Entrant bidding credit of 25 percent, the relevant existing
mass media facilities, and the proposed broadcast facilities in the
'same area' as each relevant existing mass media facility. From this
screen, options include:

-   Clicking the **Edit** icon or the **Modify bidding credit
    selection** link to return to the initial New Entrant bidding credit
    eligibility screen.

-   Modifying information about relevant mass media facilities by
    clicking on them.

-   Clicking the **Delete This Facility** link to delete a facility and
    identified proposed broadcast facilities in the 'same area.'

-   Modifying information regarding a proposed broadcast facility by
    clicking on its identifier.

-   Clicking the **Remove** icon next to information about a particular
    proposed broadcast facility in the 'same area' to remove the
    corresponding facility.

-   Clicking the **Add a proposed 'Same Area' Facility to \[an existing
    mass media facility\]** link to add a new proposed broadcast
    facility in the 'same area.'

-   Clicking the **CREATE NEW MASS MEDIA FACILITY** button to add
    additional mass media facilities.

When all relevant existing mass media facilities, and proposed broadcast
facilities in the 'same area' as each relevant existing mass media
facility, have been identified, click the **CONTINUE** button.

### Agreements

The *Agreements* screens are the fourth series of screens in FCC Form
175. In the *Agreements* screens, applicants will provide information
regarding auction-related agreements subject to disclosure under the
Commission's rules.[^195]

On the first screen, applicants must state whether the applicant has any
agreements that are subject to disclosure under the Commission's rules
by responding yes or no to a question asking whether the applicant has
entered into partnerships, joint ventures, consortia or other agreements
or understandings of any kind relating to the construction permits being
auctioned, including any such agreement relating to the post-auction
market structure. If an applicant answers "No," the applicant will
continue with the Ownership series of screens, described below. If the
applicant answers "Yes," the applicant will continue with additional
*Agreements* screens described here.

In the additional *Agreements* screens, applicants must provide an
identifying name for the agreement and must identify the parties, other
than the applicant, to the agreement. The agreement identifier can be a
brief description of the agreement or a simple reference name; however,
each agreement identifier must be unique.

In the event the other party to the agreement is an entity or an
individual, different identifying information is required. For either
entities or individuals, applicants may provide FCC Registration Numbers
("FRNs"), if available. Providing the FRN helps prevent identification
errors resulting from parties having similar names or a single party
using multiple names. Provision of an agreement party's FRN is optional.

Up to three parties to the agreement (not including the applicant) can
be identified on a single screen. Additional parties can be added by
clicking the **ADD MORE PARTIES** button. In the event of an error, the
name of a party and its associated FRN can be deleted from the form by
clicking on the **RESET** button. After identifying all parties to a
particular agreement, click the **FINISH THIS AGREEMENT** button.

The next *Agreements* screen is the *View/Edit Agreements* screen. This
screen lists the agreements and parties to each agreement that already
have been entered. From this screen, you have the following options:

-   Clicking the **Edit** icon or the **Agreements** link to return to
    the initial *Agreements* screen regarding whether or not the
    applicant has any agreements.

-   Modifying agreement identifiers by clicking on them.

-   Clicking the **Delete This Agreement** link to delete an agreement
    and associated parties.

-   Modifying information regarding a particular party to an agreement
    by clicking on the party's name.

-   Clicking the **Remove** icon next to information about a particular
    party to remove the corresponding party.

-   Clicking the **Add Party to This Agreement** link to add a new party
    to an agreement.

-   Clicking the **CREATE NEW AGREEMENT** button to add additional
    agreements.

When you have identified all agreements and the parties to each
agreement, click the **CONTINUE** button.

### Ownership

The *Ownership* screens are the fifth series of screens in the FCC Form
175. In the *Ownership* screens, applicants will provide information
regarding parties with ownership interests in the applicant that must be
disclosed pursuant to Commission rules.[^196] Commission rules also
require the disclosure and description of FCC-regulated businesses that
are owned by the applicant and parties with certain ownership interests
in the applicant.[^197]

#### Information Already on File with the Commission

Some applicants may have previously filed FCC Form 602 disclosing
ownership information in connection with wireless services. In addition,
some applicants may have filed a short-form application (FCC Form 175)
for a previous auction disclosing ownership information. To simplify
filling out this FCC Form 175, an applicant's most current FCC Form 602
or FCC Form 175 ownership information on file with the Commission, if in
an electronic format compatible with FCC Form 175, automatically will be
entered into this FCC Form 175. Applicants with ownership information
automatically entered into FCC Form 175 will proceed directly to the
*View/Edit Ownership* screen described below.

Each applicant is responsible for information submitted in its FCC Form
175 being complete and accurate. Applicants should carefully review any
information automatically entered to confirm that it is complete and
accurate as of the deadline for submitting this FCC Form 175. Applicants
can update the information directly in the FCC Form 175. After the
deadline for filing this FCC Form 175, ownership information in a
submitted FCC Form 175 will be considered to be the applicant's most
current ownership information on file with the Commission.

#### Disclosable Interest Holders and FCC-Regulated Businesses 

**• Sections 1.2105 and 1.2112(a) of the Commission's rules lists the
interest holders in the applicant that must be disclosed in FCC Form
175.**[^198]

**• Section 1.2112(a)(7) lists the FCC-regulated business entities, or
applicants for an FCC license, that must be disclosed in FCC Form
175.**[^199]

The initial *Ownership* screen enables the applicant to add information
regarding either a disclosable interest holder or the FCC-regulated
businesses in which the applicant has an interest. Each screen will
specify the information that the applicant must provide. Please note the
following with respect to particular information requested:

-   If an application includes one or more disclosable interest holders
    with an indirect ownership in the applicant,[^200] the application
    must include an attachment regarding the relationship between the
    indirect interest holder(s) and the applicant. The attachment should
    provide an overview of the ownership chain that links the indirect
    owners to the applicant, *e.g.*, indirect owner X owns 50% of
    holding company Y; indirect owner Z owns 50% of holding company Y;
    and holding company Y owns 100% of the applicant.[^201] One
    attachment connecting all indirect owners to the applicant is
    sufficient; a separate attachment for each indirect owner is not
    required. An overview of the ownership connections is sufficient;
    the attachment does not need to duplicate all the detailed
    information already provided in the FCC Form 175.

-   The "Percent of Interest Held in Applicant" should reflect the
    disclosable interest holder's aggregate ownership interest in the
    applicant. In some cases, *e.g.*, circumstances where there is joint
    ownership or indirect ownership resulting in different owners
    sharing the same ownership interests, the sum of all the percentages
    held by disclosable interest holders may exceed 100%. In other
    cases, *e.g.*, directors and officers, a disclosable interest holder
    may have a 0% percent of interest held in the applicant.

-   FCC-regulated businesses in which the applicant has an interest can
    be entered from the initial *Add Ownership Disclosure Information*
    screen. FCC-regulated businesses in which a disclosable interest
    holder has an interest can be entered from the *Add FCC Regulated
    Business* screen in the series of screens for entering information
    about a Disclosable Interest Holder.

-   When adding an FCC-regulated business, "Percent of Interest Held"
    refers to the percent of interest held by the applicant or
    disclosable interest holder, as applicable, in the FCC-regulated
    business.

-   To simplify filling out the FCC Form 175, applicants can click on
    the **select business(es) already submitted** link when entering an
    FCC-regulated business previously entered as an FCC-regulated
    business for the applicant or another Disclosable Interest Holder.
    When doing so, be certain to enter the "Percent of Interest Held" in
    the FCC regulated business by the current party, either the
    applicant or the disclosable interest holder, with respect to which
    the FCC-regulated business is being entered.

#### View/Edit Ownership Disclosure Information

The *View/Edit Ownership Disclosure Information* screen summarizes
Ownership information already entered in FCC Form 175, either
automatically from compatible ownership information on file with the
Commission or directly by the applicant, and provides links enabling
existing information to be revised and additional information to be
added.

Existing ownership information is divided into two groups:

-   Disclosable Interest Holders of this Applicant

-   FCC Regulated Businesses of this Applicant

To view the detailed information submitted regarding the applicant, a
disclosable interest holder, or FCC-regulated business, click on the
relevant party's name. To delete existing information or add a new entry
in one of the categories, click on the relevant link. This screen also
provides a link enabling applicants to add an FCC-regulated business
directly to an existing disclosable interest holder, without needing to
reenter the disclosable interest holder's information.

### Summary

The *Summary* screens summarize information applicants have provided in
previous screens, offering an overview of an applicant's FCC Form 175 to
help locate specific information. The *Summary* screens will appear
prior to the *Certify and Submit* screens, in order to permit the
applicant to review all the information entered in previous screens and
to provide an opportunity to check for errors in the information
submitted.

The first *Summary* screen, the *Summary Overview* screen, lists the
first five series of screens in the application and provides a
**VIEW/EDIT** button to access each one. Here is what happens if you
click **VIEW/EDIT** for each series:

-   Clicking **VIEW/EDIT** for Applicant Information produces a *Detail
    for Applicant Information* screen showing what you entered for each
    data entry field. To change any data item, click the **Edit** icon
    for the relevant data field.

-   Clicking **VIEW/EDIT** for Permit Selection takes you to the
    *View/Edit Permit Selection* screen discussed above in the Permit
    Selection section.

-   Clicking **VIEW/EDIT** for New Entrant Eligibility takes you to the
    *View/Edit New Entrant Eligibility* screen discussed above in the
    New Entrant Bidding Credit section.

-   Clicking **VIEW/EDIT** for Agreements takes you to the *Agreements*
    screen discussed above in the Agreements section.

-   Clicking **VIEW/EDIT** for Ownership takes you to the *View/Edit
    Ownership Disclosure Information* screen discussed above in the
    Ownership section.

Clicking on the **CHECK ERRORS** button initiates an automated check of
the application. If the automated check encounters any errors that must
be corrected before submitting the application, the error(s) will be
listed in an Error box at the top of the screen. To correct one of these
errors, click its corresponding **EDIT** button. In addition, if the
automated check encounters any apparent errors that might render the
application incomplete if the application is submitted with current
information, the apparent error will be listed in a Warning box. To
revise the information related to the apparent error, click its
corresponding **EDIT** button.

Each applicant is solely responsible for providing complete and accurate
information in its FCC Form 175. The automated check is provided to
assist applicants in completing FCC Form 175. However, the automated
check cannot be relied upon to determine whether the information
provided in the FCC Form 175 is complete or accurate. The automated
check may not catch all errors and applicants cannot rely on the
automated check to determine the completeness or the accuracy of
submitted information.

If the automated check does not encounter any errors, a box will appear
displaying the message "**No Errors found - You may continue to Certify
and Submit.**" Applicants may then click the **CONTINUE TO CERTIFY**
button.

### Attaching Additional Information

If an applicant needs to provide additional information not requested
directly in the screens comprising the FCC Form 175, additional
information can be provided in an attachment.

The screen for adding an attachment to FCC Form 175 can be accessed by
clicking on the **Attachments** link in the upper right of any screen.
The *Add Attachment* screen requests information regarding the type of
attachment to be added, the name of the file to be attached, and a brief
description of the attachment. If the attachment is a request for a
waiver of any of the Commission's rules or procedures, the applicant
must identify the "Type" of attachment as a "Waiver" to facilitate
prompt processing. Once the requested information is provided,
applicants can add the attachment to the application by clicking on the
**ADD ATTACHMENT** button.

A list of any attachments already uploaded along with the applicant's
FCC Form 175 appears at the bottom of the screen.

When uploading attachments, applicants may use a variety of file
formats\-- including (but not limited to) Word 2000 or earlier,
WordPerfect 5.x or later, Adobe PDF, and ASCII text\--and must verify
that the files contain all exhibit information. Files may be no larger
than 10 Mb. Graphics files (e.g., .bmp, .tiff, .jpg) and spreadsheets
(e.g., Excel, Lotus) are supported but not recommended. Files must not
be password-protected.

### Certify and Submit

The *Certify and Submit* screens are the sixth and final series of
screens in FCC Form 175. In the *Certify and Submit* screens, applicants
will provide certifications required of all participants in the
Commission's competitive bidding processes.[^202]

The first *Certify and Submit* screen requires each applicant to
indicate whether the applicant, any affiliate, any controlling interest,
and any affiliate of a controlling interest have ever been in default on
any Commission construction permit or license or have ever been
delinquent on any non-tax debt owed to any Federal agency.[^203]
Applicants associated with a relevant entity that has been in default or
delinquent may participate in an auction, if otherwise qualified.
However, such applicants must submit an upfront payment equal to 50
percent more than otherwise required.[^204]

The second *Certify and Submit* screen lists the certifications required
of all applicants in the Commission's competitive bidding processes and
requests that the applicant's certifying official be identified and sign
the application. Any auction short-form application must be certified
by: (1) the applicant, if the applicant is an individual, (2) one of the
partners if the applicant is a partnership, (3) by an officer, director,
or duly authorized employee, if the applicant is a corporation, (4) by a
member who is an officer, if the applicant is an unincorporated
association, (5) by the trustee if the applicant is an amateur radio
service club, or (6) a duly elected or appointed official who is
authorized to do so under the laws of the applicable jurisdiction, if
the applicant is a governmental entity.[^205]

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.[^206] Applicants are reminded
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, its certifications and any attachments are true, complete
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.

Once the two *Certify and Submit* screens have been filled out, the
application may be submitted by clicking on the **SUBMIT** button.

After the application has been submitted, a confirmation screen will be
displayed that states the submission time and date, along with a unique
file number. It is recommended that you print a copy of the confirmation
page for your records. You may then view and print a copy of your
submitted application by clicking on Print Preview.

FCC Form 175 applications must be submitted and confirmed prior to 6:00
p.m. ET on Monday, November 13, 2006. Late applications or unconfirmed
submissions of electronic data will not be accepted.

### Withdrawing an Application Before the Short-Form Filing Deadline and Updating Existing Applications

#### Withdrawing an Application

If you wish to withdraw a submitted application before the short-form
filing deadline, click on the **Withdraw Application** icon on the
*Auction Application Manager Create or Review Auction Applications* page
and confirm that you want to withdraw your application. If you
subsequently decide to file an application, you will have to re-enter
all previously-submitted data. Applications may not be withdrawn after
the short-form application filing deadline.

#### Updating Existing Applications

Once you have logged into the Auctions Application Manager, the *Create
or Review Auction Applications* page displays any application you have
created or submitted within a filing window. **Note:** This page shows
the application status, the date and time the application was last
updated; and the date and time the application was last submitted. You
may use this page as a reference to confirm the date and time of your
most recent submission of the application.

To review or continue working on an existing application, click its
auction number. This produces the application's *Summary* page and
places you in a view/edit mode. Applicants must go to the *Certify and
Submit* screens and click the **SUBMIT** button to submit any changes
made to their FCC Form 175. After the revised application has been
submitted, a confirmation page will be displayed that states the
submission time and date, along with your unique file number. It is
recommended that you print a copy of the confirmation page for your
records. You may then view and print a copy of your submitted
application by clicking on Print Preview.

After the short-form application filing deadline (6:00 p.m. ET November
13, 2006), applicants may make only minor changes to their applications.
Applicants will not be permitted to make major modifications to their
applications (*e.g*., change their construction permit selections,
change the certifying official, change control of the applicant, or
increase its bidding credit).[^207]

### Upfront Payment Calculator and Form 159 

You may access the **Upfront Payment Calculator and Form 159** from the
*Create or Review Auction Applications* page and from the *Auction
Application Submit Confirmation* page. When you click the **Upfront
Payment Calculator and Form 159** icon or link, a page will be displayed
where you can determine the appropriate upfront payment amount to submit
with the FCC Form 159. From the *Calculate Upfront Payment* page, you
may click the **Form 159** button to obtain the FCC Form 159.

### Refund of Upfront Payment 

On *My Auctions* page, click on the **See Wire Transfer for Refund
Purposes** link to provide your wire transfer instructions for purposes
of refunds of upfront payments. The Commission will use this information
to refund excess funds on deposit upon receipt of a written refund
request.

## Application Review

Once the FCC has completed the short-form application 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/***](http://auctions.fcc.gov/) (primary
location) or
[***http://auctions2.fcc.gov/***](http://auctions2.fcc.gov/) (secondary
location). Click the **Auction Applications** link in the Public Access
area on the *FCC Integrated Spectrum Auction System* page to start your
search.

## Technical Support

For technical assistance with using FCC software, contact the FCC
Technical Support Hotline at (877) 480-3201, option nine; (202)
414-1250; or (202) 414-1255 (TTY). The FCC Technical Support Hotline is
available Monday through Friday from 8 a.m. to 6 p.m. ET. All calls to
the FCC Technical Support Hotline are recorded.

FCC Technical Support can also be contacted electronically by filling
out a help request form at <https://esupport.fcc.gov/request.htm>. On
the Submit Help Request page, select **Integrated Spectrum Auction
System (ISAS)** from the \"FCC System\" drop-down.

**ATTACHMENT C**

**AUCTION-SPECIFIC INSTRUCTIONS FOR**

**FCC REMITTANCE ADVICE (FCC FORM 159-February 2003 Edition)**

**[Upfront Payments]{.underline}**

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. 68.
Applicants need to complete FCC Form 159 carefully, because:

-   **Mistakes may affect bidding eligibility; and**

```{=html}
<!-- -->
```
-   **Lack of consistency between information provided 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

Short Form Application (FCC Form 175) are described below:

Block

Number Required Information

> 1 LOCKBOX \# - Enter "358420"
>
> 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).
>
> 21 Applicant FRN (Complete only if applicant is different than payer.)
> -- Enter the applicant's ten-digit FCC Registration Number (FRN)
> registered in the Commission Registration System (CORES).
>
> 24A Payment Type Code - Enter "A68U"
>
> 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 "68" (indicating Auction No. 68).

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]{.underline}**

Specific information regarding down payments and final payments will be
included in a post-auction public notice announcing the winning bidders.

# ATTACHMENT D {#attachment-d .unnumbered}

**SUMMARY LISTING OF DOCUMENTS ADDRESSING**

**APPLICATION OF THE ANTI‑COLLUSION RULE**

**[Commission Decisions]{.underline}**

Implementation of Section 309(j) of the Communications Act --
Competitive Bidding, PP Docket No. 93‑253, *Second Report and Order*, 9
FCC Rcd 2348, 2386‑2388 ¶¶ 221‑226 (1994).

Implementation of Section 309(j) of the Communications Act --
Competitive Bidding, *Fifth Report and Order*, PP Docket No. 93‑253, 9
FCC Rcd 5532, 5570‑5571 ¶¶ 91-92 (1994).

Implementation of Section 309(j) of the Communications Act --
Competitive Bidding, *Fourth Memorandum Opinion and Order*, PP Docket
No. 93‑253, 9 FCC Rcd 6858, 6866‑6869 ¶¶ 47-60 (1994).

Implementation of Section 309(j) of the Communications Act --
Competitive Bidding, *Second Memorandum Opinion and Order*, PP Docket
No. 93‑253, 9 FCC Rcd 7245, 7253‑7255 ¶¶ 48-55 (1994).

Implementation of Section 309(j) of the Communications Act --
Competitive Bidding, *Memorandum Opinion and Order*, PP Docket No.
93‑253, 9 FCC Rcd 7684, 7687‑7689 ¶¶ 8-12 (1994).

Commercial Realty St. Pete, *Notice of Apparent Liability for
Forfeiture,* 10 FCC Rcd 4277 (1995), *Memorandum Opinion and Order,* 11
FCC Rcd 15374 (1996).

Applications of Mercury PCS II, LLC, *Notice of Apparent Liability for
Forfeiture,* 12 FCC Rcd 17970 (1997), *Memorandum Opinion and Order*, 13
FCC Rcd 23755 (1998).

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 374, 463‑469 ¶¶
155-166 (1997).

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*, 14
FCC Rcd 8816 (1999).

Application of Western PCS BTA I Corp., *Notice of Apparent Liability
for Forfeiture,* 13 FCC Rcd 8305 (1998); Notice of Apparent Liability
for Forfeiture of Western PCS BTA 1 Corp., *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, WT Docket No. 97-82, *Seventh Report and Order*, 16 FCC Rcd
17546 (2001).

[**Wireless Telecommunications Bureau Dec**i**sions**]{.underline}

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, MM Docket No. 94-13, *Order,* 11
FCC Rcd 9655 (Wireless Telecom. Bur. 1995).

Applications of GWI PCS, Inc., *Memorandum Opinion and Order,* 12 FCC
Rcd 6441 (Wireless Telecom. Bur. 1997).

Applications of Mercury PCS II, LLC, *Memorandum Opinion and Order on
Reconsideration,* 12 FCC Rcd 18093 (Wireless Telecom. Bur. 1997).

Applications of High Plains Wireless, L.P., *Memorandum Opinion and
Order,* 12 FCC Rcd 19627 (Wireless Telecom. Bur. 1997).

Applications of Mercury PCS II, LLC, *Memorandum Opinion and Order,* 13
FCC Rcd 5756 (Wireless Telecom. Bur. 1997).

### [Public Notices]{.underline} {#public-notices .unnumbered}

Wireless Telecommunications Bureau Clarifies Spectrum Auction
Anti‑Collusion Rules, *Public Notice,* 11 FCC Rcd 9645 (Wireless
Telecom. Bur. 1995).

FCC Staff Clarifies Application of Anti‑Collusion Rule to Broadband PCS
\"C\" Block Reauction, *Public Notice,* 11 FCC Rcd 7031 (Auc. Div.
1996).

Wireless Telecommunications Bureau Provides Guidance on the
Anti‑Collusion Rule for D, E and F Block Bidders, *Public* *Notice,* 11
FCC Rcd 10134 (Wireless Telecom. Bur. 1996).

Wireless Telecommunications Bureau Responds to Questions About the Local
Multipoint Distribution Service Auction, *Public Notice*, 13 FCC Rcd 341
(Wireless Telecom. Bur. 1998).

### [Letters from the Office of General Counsel, the Wireless Telecommunications Bureau and the Media Bureau]{.underline} {#letters-from-the-office-of-general-counsel-the-wireless-telecommunications-bureau-and-the-media-bureau .unnumbered}

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 from Kathleen O'Brien Ham, 10 FCC Rcd 13783
(Auc. Div. 1995).

Letter to Mark Grady from Kathleen O'Brien Ham, 11 FCC Rcd 10895 (Auc.
Div. 1996).

Letter to David L. Nace from Kathleen O'Brien Ham, 11 FCC Rcd 11363
(Auc. Div. 1996).

Letter to Elliott J. Greenwald from Christopher J. Wright, 13 FCC Rcd
7132 (Gen. Counsel 1998).

Letter to Robert Pettit from Margaret W. Wiener, 16 FCC Rcd 10080 (Auc.
Div. 2000).

Letter to Colby M. May from Barbara A. Kreisman and Margaret W. Wiener,
20 FCC Rcd 14648 (Video and Auc. Divs. 2005).

Letter to John Cooper, Aurora Communications, Inc., from Margaret W.
Wiener, 21 FCC Rcd 523 (Auc. Div. 2006).

Letter to Howard A. Kalmenson, Lotus Communications Corp., from Margaret
W. Wiener, 21 FCC Rcd 520 (Auc. Div. 2006).

### [Enforcement Bureau Decisions]{.underline} {#enforcement-bureau-decisions .unnumbered}

Application of Star Wireless, LLC, *Forfeiture Order*, 19 FCC Rcd 18626
(Enf. Bur. 2004).

Application of Northeast Communications of Wisconsin, Inc., *Forfeiture
Order*, 19 FCC Rcd 18635 (Enf. Bur. 2004).

### [Civil Actions Initiated by U.S. Department of Justice]{.underline} {#civil-actions-initiated-by-u.s.-department-of-justice .unnumbered}

*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]{.underline} {#how-to-obtain-copies-of-the-anti-collusion-decisions .unnumbered}

Many of the documents listed in this attachment can be retrieved from
the following Commission web site:
[http://wireless.fcc.gov/auctions/anticollusion](http://wireless.fcc.gov/auctions/default.htm?job=anti_collusion).

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 duplicating contractor, Best Copy and Printing,
Inc., 445 12^th^ Street, SW, Room CY-B402, Washington, DC 20554, (800)
378-3160 (telephone) or
[http://www.bcpiweb.com](http://www.bcpiweb.com/).

[^1]: 47 U.S.C. § 309(j)(3)(E)(i)(requirement to seek comment on
    proposed auction procedures); *see* 47 U.S.C.
    § 309(j)(4)(F)(authorization to prescribe reserve price or minimum
    bid); *see also* 47 C.F.R.§ 1.2104(c) and (d).

[^2]: "Auction of FM Broadcast Construction Permits Scheduled for
    January 10, 2007; Comment Sought on Competitive Bidding Procedures
    for Auction No. 68," AU Docket No. 06-101, *Public Notice*, DA
    06-997 ("*Auction No. 68 Comment Public Notice*").

[^3]: Concerned Citizens of Hawaii, Legacy Media Company, Inc., Mullaney
    Engineering, Inc., National Public Radio, and Steven R. Bartholomew
    filed comments. Houston Christian Broadcasters, Inc., the Sister
    Sherry Lynn Foundation, Inc., and Revival Christian Ministries, Inc.
    jointly filed "Petition for Reconsideration" by the deadline for
    comments; as discussed further below, we are treating this
    submission in the same manner as comments received in this
    proceeding. Steven R. Bartholomew submitted reply comments.

[^4]: "FM Broadcast Construction Permits Auction Closes, Auction No. 37
    Winning Bidders Announced; Payment and Application Deadlines
    Established," *Public Notice*, 20 FCC Rcd 1021 (WTB/MB 2004);
    "Auction of FM Broadcast Construction Permits Closes, Winning
    Bidders Announced for Auction No. 62, Down Payments due February 23,
    2006, FCC Form 301 due March 10, 2006," *Public Notice*, 21 FCC Rcd
    1071 (WTB/MB 2006). *See also Letter to Alva Fearon, President, In
    Vibration, Inc.*, 20 FCC Rcd 7791 (WTB/MB 2005).

[^5]: 47 C.F.R. § 73.202(b).

[^6]: *See* Implementation of Section 309(j) of the Communications Act
    -- Competitive Bidding for Commercial Broadcast and Instructional
    Television Fixed Service Licenses, MM Docket No. 97-234, *First
    Report and Order,* 13 FCC Rcd 15920 (1998) ("*Broadcast Competitive
    Bidding First Report and Order*"), *Memorandum Opinion and Order*,
    14 FCC Rcd 8724 (1999) ("*Broadcast Competitive Bidding First
    Reconsideration Order*"), *Memorandum Opinion and Order*, 14 FCC Rcd
    12541 (1999), *aff'd*, *Orion Communications Ltd. V. FCC*, 221 F.3d
    196, No. 98-1424, slip op. (D.C. Cir. June 13, 2000) (unpublished
    opinion available at 2000 WL 816046 (D.C. Cir.), *aff'd, Orion
    Communications Ltd. V. FCC,* 213 F.3d 761 (D.C. Cir. 2000).
    Attachment A also lists the reference coordinates for each vacant FM
    allotment. With regard to the FM service, the Commission gave
    applicants the opportunity to submit a set of preferred site
    coordinates as an alternative to the reference coordinates for the
    vacant FM allotment upon which they intend to bid. Further
    information regarding preferred site coordinates may be found in
    Attachment B to this public notice. *See* *Broadcast Competitive
    Bidding First Report and Order*, 13 FCC Rcd at 15974-75 and n.153.

[^7]: *Broadcast Competitive Bidding First Report and Order*, 13 FCC Rcd
    at 15978-80 ¶¶ 149-154. *See also* Implementation of Section 309(j)
    of the Communications Act -- Competitive Bidding, PP Docket No.
    93-253, *Second Report and Order*, 9 FCC Rcd 2348, 2376 ¶ 165 (1994)
    ("*Competitive Bidding Second Report &Order*").

[^8]: *Broadcast Competitive Bidding First Report and Order*, 13 FCC Rcd
    at 15923-25 ¶¶ 7-12.

[^9]: Any applicant that submits a short-form application that is
    accepted for filing but fails to timely submit an upfront payment
    will retain its status as an applicant in Auction No. 68 and will
    remain subject to the Commission\'s anti-collusion rules, 47 C.F.R.
    §§ 1.2105(c) and 73.5002(d), but, having purchased no bidding
    eligibility, will not be eligible to bid. *See Broadcast Competitive
    Bidding First Report and Order*, 13 FCC Rcd at 15980 ¶ 153.

[^10]: NPR Comments.

[^11]: *See* NPR Comments at 3-4.

[^12]: This Public Notice explains below that bid withdrawals will not
    be permitted in this auction and additional payments will be imposed
    to deter post-auction defaults. For detailed information on the bids
    placed during the previous FM auctions (Auction Nos. 37 and 62),
    auction results, and post-auction decisions, see the Commission's
    Auctions web page at
    [http://wireless.fcc.gov/auctions](http://wireless.fcc.gov/auctions/default.htm?job=auctions_home).

[^13]: *See* NPR Comments at 2-3.

[^14]: *See id.*, at 2 (citing 47 C.F.R. § 73.5002(a)).

[^15]: 47 C.F.R. § 73.5002(a).

[^16]: *See* Attachment B.

[^17]: *See* 47 C.F.R. § 73.5002 (a) and (b).

[^18]: *See* Reexamination of the Comparative Standards for
    Noncommercial Educational Applicants, MM Docket No. 95-31, *Second
    Report and Order*, 18 FCC Rcd 6691, 6699-6700 ¶ 21 (2003) ("*NCE
    Second Report and Order*"), recons pending.

[^19]: "*Auction of FM Broadcast Construction Permits Scheduled for
    November 1, 2005, Auction No. 62*," 20 FCC Rcd 10492 (WTB / MB
    2005); "*Auction of FM Broadcast Construction Permits Scheduled for
    November 3, 2004, Auction No. 37*," Public Notice, 19 FCC Rcd 10570
    (WTB / MB 2004).

[^20]: NPR's complaint that the *Auction No. 68 Comment Public Notice*
    does not mention that NCE applicants need not pay minimum opening
    bids, upfront payments or filing fees is misdirected because the
    Bureaus' proposals in that public notice were only intended to apply
    where applications submitted in an auction filing window are found
    to be mutually exclusive. In such event, Section 309(j) of the
    Communications Act requires that such mutual exclusivity must be
    resolved through the use of competitive bidding procedures. *See*
    *Broadcast Competitive Bidding First Report and Order* , 13 FCC Rcd
    at 5920.

[^21]: 47 U.S.C. § 309(j)(3).

[^22]: *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 Rulemaking*, 13 FCC
    Rcd 374, 448 (1997).

[^23]: "Petition for Reconsideration" of Houston Christian Broadcasters,
    Inc., the Sister Sherry Lynn Foundation, Inc., and Revival Christian
    Ministries, Inc. (filed Sept. 12, 2006) (*Houston Christian PFR*).

[^24]: *See* "Auction of FM Broadcast Permits; Status of Applications to
    Participate in Auction No. 37," *Public Notice*, 19 FCC Rcd 17,938
    (2004) (rejecting applications for NCE FM broadcast stations that
    were mutually exclusive with applications for FM commercial
    broadcast stations).

[^25]: *Houston Christian PFR* at 4.

[^26]: *See*, *e.g*., Amendment of Part 1 of the Commission\'s Rules --
    Competitive Bidding Procedures, WT Docket No. 97-82, *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 (2000) ("*Fifth Report and Order*"); *id.,* *Seventh
    Report and Order*, 16 FCC Rcd 17546 (2001) ("*Seventh Report and
    Order*"); *id.,* *Eighth Report and Order*, 17 FCC Rcd 2962 (2002);
    *id.,* *Second Order on Reconsideration of the Third Report and
    Order and Order on Reconsideration of the Fifth Report and Order*,
    18 FCC Rcd 10180 (2003).

[^27]: *Broadcast Competitive Bidding First Report and Order*, 13 FCC
    Rcd at 15920.

[^28]: *Broadcast Competitive Bidding First Reconsideration Order*, 14
    FCC Rcd at 8724.

[^29]: Implementation of Section 309(j) of the Communications Act --
    Competitive Bidding for Commercial Broadcast and Instructional
    Television Fixed Service Licenses, MM Docket No. 97-234, *Memorandum
    Opinion and Order*, 14 FCC Rcd 12541 (1999) ("*New Entrant Bidding
    Credit Reconsideration Order*").

[^30]: *NCE Second Report and Order*, 18 FCC Rcd at 6691.

[^31]: When ordering documents from BCPI, please provide the appropriate
    FCC document number (for example, DA 06-997 for the *Auction No. 68
    Comment Public Notice*, or DA 06-1949 for this Public Notice).

[^32]: 47 C.F.R. §§ 1.2105(a)(2)(viii), 1.2105(c)(1), and 73.5002. *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.

[^33]: 47 C.F.R. § 1.2105(c)(1).

[^34]: *See, e.g*., Star Wireless, LLC, *Forfeiture Order*, 19 FCC Rcd
    18626, 18628 ¶ 4, n.19 (EB 2004), application for review pending
    (collusion rule applies to applicants regardless of whether they are
    qualified to bid); 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 exempt 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).

[^35]: *Part 1 Seventh Report and Order*, 16 FCC Rcd at 17549 n.12.

[^36]: 47 C.F.R. § 1.2105(c)(7)(i).

[^37]: *Part 1 Seventh Report and Order*, 16 FCC Rcd at 17549-50 ¶ 6.

[^38]: *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 11973, 11977 ¶ 11 (1998) ("*Nevada Wireless
    Order*").

[^39]: *Id*.

[^40]: *See, e.g*., *Letter to Colby M. May, TCCSA, Inc., d/b/a Trinity
    Broadcasting Network, from Barbara A. Kreisman, Chief, Video
    Division, Media Bureau, and Margaret W. Wiener, Chief, Auctions and
    Spectrum Access Division, Wireless Telecommunications Bureau*, 20
    FCC Rcd 14648 (WTB/MB 2005) (finding apparent violation of
    anti-collusion rule where applicants with mutually exclusive
    applications reported sharing same individual as an officer and
    director and reported having no bidding agreement).

[^41]: Mercury PCS II, LLC, *Notice of Apparent Liability for
    Forfeiture*, 12 FCC Rcd 17970, 17976 ¶ 12 (1997).

[^42]: Mercury PCS II, LLC, *Memorandum Opinion and Order*, 13 FCC Rcd
    23755, 23760 ¶ 11 (1998).

[^43]: Implementation of Section 309(j) of the Communications Act --
    Competitive Bidding, PP Docket No. 93-253, *Memorandum Opinion and*
    Order, 9 FCC Rcd 7684, 7689 ¶ 12 (1994).

[^44]: *Cf.* Wireless Telecommunications Bureau Responds to Questions
    About the Local Multipoint Distribution Service Auction, *Public
    Notice*, 13 FCC Rcd 341, 347-8 (1998) ("Public statements can give
    rise to collusion concerns. This has occurred in the antitrust
    context, where certain public statements can support other evidence
    which tends to indicate the existence of a conspiracy.").

[^45]: 47 C.F.R. § 1.2105(c)(7)(i).

[^46]: *See* Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules, *Public Notice*, 11 FCC Rcd 9645
    (1995) ("*Anti-Collusion Public Notice*").

[^47]: *Nevada Wireless Order*, 13 FCC Rcd at 11978 ¶ 13.

[^48]: Implementation of Section 309(j) of the Communications Act --
    Competitive Bidding, PP Docket No. 93-253, *Memorandum Opinion and
    Order*, 9 FCC Rcd 7684, 7689 ¶ 12 (1994).

[^49]: *See* 47 C.F.R. §§ 1.2105(c), 1.2107(d), and 1.2109(d).

[^50]: *See* Amendment of Part 1 of the Commission\'s Rules --
    Competitive Bidding Procedures, WT Docket No. 97-82, *Third Further
    Notice of Proposed Rule Making*, 14 FCC Rcd 21558, 21560 ¶ 4 and n.
    4 (1999) *citing* Implementation of Section 309(j) of the
    Communications Act -- Competitive Bidding, PP Docket No. 93-253,
    *Memorandum Opinion and* *Order*, 9 FCC Rcd 7684, 7689 ¶ 12 (1994)
    ("\[W\]e wish to emphasize that all applicants and their owners
    continue to be subject to existing antitrust laws. Applicants should
    note that conduct that is permissible under the Commission\'s Rules
    may be prohibited by the antitrust laws."); Implementation of
    Section 309(j) of the Communications Act-Competitive Bidding, PP
    Docket No. 93-253, *Fourth Memorandum Opinion & Order*, 9 FCC Rcd
    6858, 6869 n. 134 (1994)("\[A\]pplicants will also be subject to
    existing antitrust laws.") ("*Fourth Memorandum Opinion and
    Order*").

[^51]: *See Competitive Bidding Second Report and Order*, 9 FCC Rcd at
    2388 ¶ 226. *See also* "Justice Department Sues Three Firms Over FCC
    Auction Practices," *Press Release* 98-536 (DOJ Nov. 10, 1998).

[^52]: The Commission has cited a number of examples of such
    anticompetitive behavior. *See, e.g.,* Implementation of Section
    309(j) of the Communications Act-Competitive Bidding, PP Docket No.
    93-253, *Fourth Memorandum Opinion & Order*, 9 FCC Rcd 6858 at 6869
    n.134.

[^53]: *Id*.; *see also* *Anti-Collusion Public Notice,* 11 FCC Rcd
    9645*.*

[^54]: *See* *Anti-Collusion Public Notice, id.*

[^55]: *See Competitive Bidding Second Report and Order*, 9 FCC Rcd at
    2388 ¶ 226.

[^56]: *See* 47 C.F.R. § 1.2109(d); *see also* *Competitive Bidding
    Second Report and Order*, 9 FCC Rcd at 2388 ¶ 226.

[^57]: 47 C.F.R. § 1.65.

[^58]: 47 C.F.R. § 1.2105(c)(6); *see also* *Part 1 Seventh Report and
    Order*, 16 FCC Rcd at 17555 ¶ 17.

[^59]: 47 C.F.R. § 1.2107(d).

[^60]: [http://wireless.fcc.gov/auctions/anticollusion](http://wireless.fcc.gov/auctions/default.htm?job=anti_collusion)

[^61]: *See* 47 C.F.R. § 73.202.

[^62]: *See*, *e.g.*, *Charlotte Amalie, Frederiksted, and
    Christiansted, U.S. Virgin Islands*, *Memorandum Opinion & Order*,
    19 FCC Rcd 30 (MB 2004); *Cheyenne, Wyoming and Gering, Nebraska*,
    *Memorandum Opinion & Order*, 15 FCC Rcd 7528 (MMB 2000);
    *Circleville, Ohio*, *Memorandum Opinion & Order*, 9 F.C.C.2d 159
    (1967).

[^63]: 47 C.F.R. Ch. 1, Subpart I.

[^64]: 47 C.F.R. §§ 1.1305-1.1319.

[^65]: *See* 47 C.F.R. Part 1, Appendix C.

[^66]: *Auction No. 68 Comment Public Notice* at 1.

[^67]: *See infra* Section IV.A.1. "Simultaneous Multiple Round
    Auction."

[^68]: For additional information regarding ISAS, including sample
    screen shots, visit the "About ISAS" web page at
    [http://wireless.fcc.gov/auctions/about_isas](http://wireless.fcc.gov/auctions/default.htm?job=about_isas).

[^69]: *See* 47 C.F.R. § 1.2105.

[^70]: *See* *id*.; *Competitive Bidding* *Second Report and Order*, 9
    FCC Rcd at 2376 ¶ 163.

[^71]: *See infra* Section III.D. "Upfront Payments -- Due December 11,
    2006."

[^72]: *See* 47 C.F.R. §§ 1.2107, 73.5005.

[^73]: *See* 47 C.F.R. § 1.2105(a)(2)(v).

[^74]: As discussed generally in *NCE Second Report and Order*, the
    opening of a window for nonreserved vacant FM allotments provides a
    filing opportunity for both NCE and commercial applicants. However,
    as discussed in Section III.C, *infra*, while non-mutually exclusive
    NCE applications will not be resolved through competitive bidding,
    any applications specifying NCE facilities that are mutually
    exclusive with any applications specifying commercial facilities
    will be returned as unacceptable for filing. 47 C.F.R. § 73.5002(b).

[^75]: "Media of mass communication" include both commercial and NCE
    full-power broadcast stations.

[^76]: The fact that, on November 13, 2006, an applicant has a pending
    or granted application to assign or transfer control of a media
    interest shall not be sufficient to avoid attribution. Applicants
    must have consummated the transaction by November 13, 2006, to avoid
    attribution. Thus, an applicant could not qualify for a bidding
    credit, nor upgrade a previously claimed bidding credit, based upon
    ownership or positional changes occurring after the short-form
    filing deadline. *See* *Liberty Productions, a Limited Partnership,
    Memorandum Opinion and Order*, 16 FCC Rcd 12061, *stay denied*, 16
    FCC Rcd 18966 (2001), *aff'd sub nom, Biltmore Forest Broadcasting
    FM, Inc. v. F.C.C*., 321 F.3d 155 (D.C. Cir.), *cert. denied*, 540
    U.S. 981 (2003) ("*Liberty Productions*").

[^77]: *See* 47 C.F.R. § 73.3555 Note 2.

[^78]: *See Clarification of Commission Policies Regarding Spousal
    Attribution, Memorandum Opinion and Order*, 7 FCC Rcd 1920 (1992).

[^79]: *See Review of the Commission's Regulations Governing Attribution
    of Broadcast and Cable/MDS Interests*, MM Docket No. 94-150, *Report
    and Order*, 14 FCC Rcd 12559 (1999) (prior history omitted).

[^80]: *See* 47 C.F.R. § 73.5008(c).

[^81]: Further, any bidder asserting new entrant status must have *de
    facto* as well as *de jure* control of the entity claiming the
    bidding credit. 47 C.F.R. § 73.5007. Typically, *de jure* control is
    evidenced by ownership of at least 50.1 percent of an entity\'s
    voting stock or equivalent level of interest in cases where the
    bidder is not a corporate entity. *De facto* control is determined
    on a case-by-case basis.

[^82]: *Broadcast Competitive Bidding Reconsideration Order*, 14 FCC Rcd
    at 8764 ¶ 75; 47 C.F.R. § 73.5007.

[^83]: *See Minnesota Christian Broadcasters, Inc.,* *Memorandum Opinion
    and Order,* 18 FCC Rcd 614 (2003), *aff'd sub nom*. *Carol DeLaHunt
    v. F.C.C.*, No. 03-1029 (D.C. Cir. Feb. 4, 2004) and *Minnesota
    Christian Broadcasters, Inc. v. FCC*, No. 03-1439 (D.C. Cir June 14,
    2005).

[^84]: *See* 47 C.F.R. §§ 1.2105(a), 73.3555 and Note 2, 73.5007,
    73.5008.

[^85]: *See* 47 C.F.R. §§ 73.5007, 73.5008.

[^86]: *See* 47 C.F.R. § 73.5007.

[^87]: *See* 47 C.F.R. § 73.5008.

[^88]: *See* 47 C.F.R. § 73.5007(c).

[^89]: *See* 47 C.F.R. § 1.2105(b)(2).

[^90]: *See* 47 C.F.R. § 1.2105(a)(2)(viii), (c)(1).

[^91]: *See* 47 C.F.R*.* § 1.2105(a)(2)(ix).

[^92]: *See supra* Section I.B.2 "Prohibition of Collusion; Compliance
    with Antitrust Laws."

[^93]: *See* 47 C.F.R. § 1.2105(c)(4)(i), (ii).

[^94]: *See supra* Section I.B.2 "Prohibition of Collusion; Compliance
    with Antitrust Laws."

[^95]: *See id.*

[^96]: 47 C.F.R. § 1.2105 requires the disclosure on the short-form
    application of the applicant's ownership information as set forth in
    47 C.F.R. §§ 1.2105 and 1.2112.

[^97]: Section 73.5002 of the Commission's rules specifies the bidding
    procedures, certification requirements and the anti-collusion rules
    applicable to mutually exclusive applications for commercial
    broadcast services subject to auction. Subsection (b) of that rule
    requires the timely submission of short form applications, along
    with the required certifications, information and exhibits, pursuant
    to the provisions of 47 C.F.R. § 1.2105(a) and any Commission public
    notices. 47 C.F.R. § 1.2105 requires the disclosure on the
    short-form application of the applicant's ownership information as
    set forth in 47 C.F.R. § 1.2112.

[^98]: *See* 47 C.F.R. § 1.2110.

[^99]: *See* 47 C.F.R. § 1.2105(a)(2)(xi); *Part 1 Fifth Report and
    Order*, 15 FCC Rcd at 15317 ¶ 42 and n. 142.

[^100]: *See* 47 C.F.R. § 1.2105(a)(2)(x); *Part 1 Fifth Report and
    Order*, 15 FCC Rcd at 15317 ¶ 42.

[^101]: *See* 47 C.F.R. § 1.2106(a).

[^102]: *See* 47 C.F.R. §§ 1.2105(a)(2)(x) and 1.2105(b)(1); *see Part 1
    Fifth Report and Order*, 15 FCC Rcd at 15317 ¶ 42 and n.142. ("If
    any one of an applicant's controlling interests or their
    affiliates...is in default on any Commission licenses or is
    delinquent on any non-tax debt owed to any Federal agency at the
    time the applicant files it\[s\] Form 175, the applicant will not be
    able to make the certification required by Section
    1.2105(a)(2)(x)...and will not be eligible to participate in
    Commission auctions.")

[^103]: *See* "WTB Reminds Prospective Broadband PCS Spectrum Auction
    Applicants of Default and Delinquency Disclosure Requirements,"
    *Public Notice*, 19 FCC Rcd 21920 (2004) ("*Auction Default
    Disclosure Public* *Notice*"). This public notice may be found at
    [http://wireless.fcc.gov/auctions/58/](http://wireless.fcc.gov/auctions/default.htm?job=auction_summary&id=58).

[^104]: *See* Letter to Cheryl A. Tritt, Esq., Morrison and Foerster,
    LLP, from Margaret Wiener, Chief, Auctions and Spectrum Access
    Division, Wireless Telecommunications Bureau, 19 FCC Rcd 22907
    (2004) (clarifying the term "debt" or "non-tax debt" as referenced
    in 47 C.F.R. §§ 1.2105(a) and 1.2106(a)). This letter may be found
    at
    [http://wireless.fcc.gov/auctions/58/](http://wireless.fcc.gov/auctions/default.htm?job=auction_summary&id=58).

[^105]: Even where Commission rules expressly permit late payment,
    subject to payment of an additional late fee, and do not impose a
    final payment deadline, the Commission may in some cases issue a
    demand for payment by a date certain. *See* 47 C.F.R. § 1.1164(a).
    Failure to comply with the terms of a particular demand letter in
    the time period provided may render the subject debt delinquent,
    notwithstanding rules generally permitting late payment.

[^106]: Amendment of Parts 0 and 1 of the Commission\'s Rules;
    Implementation of the Debt Collection Improvement Act of 1996 and
    Adoption of Rules Governing Applications or Requests for Benefits by
    Delinquent Debtors, MD Docket No. 02-339, *Report and Order*, 19 FCC
    Rcd 6540 (2004) (implementing Pub. L. No. 104-134, 110 Stat. 1321,
    1358 (1996)) ("*Debt Collection Report and Order*").

[^107]: *Debt Collection Report and Order*, 19 FCC Rcd at 6541 n.11.
    Footnote 11 specifically mentions 47 C.F.R. § 1.2105(a)(2)(x) and
    (xi).

[^108]: *See* *Auction Default Disclosure Public Notice*, 19 FCC Rcd at
    21920 (addressing relationship between Commission's Red Light
    Display System and FCC Form 175 default and delinquency disclosure
    requirements for auction applicants).

[^109]: *See Debt Collection Report and Order*, 19 FCC Rcd 6540. *See*
    *also* 47 C.F.R. § 1.1112.

[^110]: Applicants that have their long-form applications dismissed will
    be deemed to have defaulted and will be subject to default payments
    under 47 C.F.R. §§ 1.2104(g) and 1.2109(c).

[^111]: *See* 47 C.F.R. § 1.2110(c)(3).

[^112]: Designated entities are defined as small businesses, businesses
    owned by members of minority groups and/or women, and rural
    telephone companies. 47 C.F.R. § 1.2110(a).

[^113]: *See* 47 C.F.R. § 1.2105(b).

[^114]: *See* 47 C.F.R. § 1.917; see also 47 C.F.R. § 73.3513.

[^115]: *See* 47 C.F.R. § 1.65.

[^116]: For example, if ownership changes result in the attribution of
    new interest holders that affect the applicant's qualifications for
    a new entrant bidding credit, such information must be clearly
    stated in the bidder's amendment. *See Liberty Productions*, 16 FCC
    Rcd at 12078. Events occurring after the short-form filing deadline,
    such as the acquisition of attributable interests in media of mass
    communications, may also cause diminishment or loss of the bidding
    credit, and must be reported immediately.

[^117]: *See* 47 C.F.R. § 1.2105(b)(2).

[^118]: *See* 47 C.F.R. § 12105(a).

[^119]: *See infra* Section III.D. "Upfront Payments --- Due December
    11, 2006."

[^120]: *See* 47 C.F.R. § 73.3573(f)(4).

[^121]: In the *NCE Second Report and Order*, the Commission determined
    that short-form applicants that do not identify themselves on their
    FCC Form 175 as "noncommercial educational" will be considered, as a
    matter of law, applicants for commercial broadcast stations. *NCE
    Second Report and Order*, 18 FCC Rcd at 6700 ¶ 22.

[^122]: *Id.* at 6699-6701. *See also* 47 C.F.R. § 73.5002(b).

[^123]: *NCE Second Report and Order*, 18 FCC Rcd at 6699-6701. *See
    also* 47 C.F.R. § 73.5002(b).

[^124]: *See* 47 C.F.R. § 1.2105(b); *see also* Two Way Radio of
    Carolina, Inc., *Memorandum Opinion and Order*, 14 FCC Rcd 12035
    (1999).

[^125]: *See* Letter to Patrick Shannon, Counsel for Lynch 3G
    Communications Corp., 18 FCC Rcd 11552 (WTB 2003).

[^126]: 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*").

[^127]: *See Part 1 Fifth Report and Order*, 15 FCC Rcd at 15316-17 ¶¶
    40-42; 47 C.F.R. § 1.2106(a); *see supra* Section II.F. "Provisions
    Regarding Former and Current Defaulters."

[^128]: 47 C.F.R. § 1.2110(c).

[^129]: *Auction No. 68 Comment Public Notice* at 4.

[^130]: Provisionally winning bids are bids that would become final
    winning bids if the auction were to close after the given round.
    *See* *infra* Section IV.B.4. "Provisionally Winning Bids."

[^131]: *See* 47 C.F.R. § 1.2106(a).

[^132]: *See* 47 C.F.R. §1.1910.

[^133]: *Auction No. 68 Comment Public Notice* at 2.

[^134]: Mullaney Comments at 2.

[^135]: *Id*.

[^136]: *Part 1 Second Report and Order*, 9 FCC Rcd at 2366*.*

[^137]: *Auction No. 68 Comment Public Notice* at 4.

[^138]: *See supra* Section IV.A.3. "Activity Rule Waivers*.*"

[^139]: *Auction No. 68 Comment Public Notice* at 6.

[^140]: *Auction No. 68 Comment Public Notice* at 3.

[^141]: *Id*. at 3.

[^142]: *Id.* at 4.

[^143]: 47 U.S.C. § 309(j)(4)(F).

[^144]: *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*").

[^145]: *Id*.

[^146]: *Id*.

[^147]: *Auction No. 68 Comment Public Notice* at 6.

[^148]: *See* 47 U.S.C. 309(j)(3)(C).

[^149]: *Auction No. 68 Comment Public Notice* at 6.

[^150]: Mullaney Comments at 1-2.

[^151]: Mullaney Comments at 1.

[^152]: We note also that the minimum opening bids for three of the
    permits (Kihei, Hawaii, Outlook, Montana, and Parowan, Utah)
    previously were reduced from their original Auction No. 37 minimum
    opening bid amounts.

[^153]: Mullaney Comments at 1-2.

[^154]: Mullaney Comments at 3.

[^155]: *Id*. at 2 ("However, this public notice indicates that 7 out of
    9 of these channels **never received a single bid in up to two
    separate auctions**.") (emphasis in original).

[^156]: Four of these nine construction permits received bids in both
    Auction Nos. 37 and 62, while two of these nine construction permits
    received bids only in Auction No. 37 and three of them received bids
    only in Auction No. 62. The Covelo construction permit (MM-FM366-A)
    received 50 bids in Auction No. 62. The Tecopa construction permit
    (MM-FM040-A) received 112 bids in Auction No. 37 and 63 bids in
    Auction No. 62. The Cedar Key construction permit (MM-FM063-A)
    received 311 bids in Auction No. 37. The Perry construction permit
    (MM-FM068-A) received 186 bids in Auction No. 37. The Kihei
    construction permit (MM-FM079-C2) received 68 bids in Auction No. 37
    and 34 bids in Auction No. 62. The Outlook construction permit
    (MM-FM179-C) received 12 bids in Auction No. 37 and 11 bids in
    Auction No. 62. The Ocracoke construction permit (MM-FM414-C1)
    received 16 bids in Auction No. 62. The Meyersdale construction
    permit (MM-FM445-A) received 25 bids in Auction No. 62. The Parowan
    construction permit (MM-FM318-C2) received 137 bids in Auction No.
    37 and 29 bids in Auction No. 62.

[^157]: 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.

[^158]: *Id*.

[^159]: Mullaney Comments at 2.

[^160]: Bidders must have sufficient eligibility to place a bid on the
    particular construction permit. *See supra* Section III.D.3 "Upfront
    Payments and Bidding Eligibility."

[^161]: In the event of duplicate bid amounts due to rounding, the FCC
    Auction System will omit the duplicates and will list fewer than
    nine acceptable bid amounts for the construction permit.

[^162]: *See supra* Section IV.A.2. "Eligibility and Activity Rules."

[^163]: *Auction No. 68 Comment Public Notice* at 7 and 8.

[^164]: 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>.

[^165]: Bidders must have sufficient eligibility to place a bid on the
    particular construction permit. *See* *supra* Section III.D.3.
    "Upfront Payments and Bidding Eligibility"

[^166]: In the event of duplicate bid amounts due to rounding, the FCC
    Auction System will omit the duplicates and will list fewer than
    nine acceptable bid amounts for the construction permit.

[^167]: *Auction No. 68 Comment Public Notice* at 8.

[^168]: Although in each set of comments, Legacy and Citizens make
    references to defaults and default payments, the examples provided
    by Legacy and Citizens concern withdrawals of provisionally winning
    bids before the close of competitive bidding in Auction Nos. 37 and
    62, instead of payment defaults after the close of competitive
    bidding. For purposes of clarity (to distinguish bid withdrawals
    before the close of bidding from payment defaults after the close of
    bidding), we use the terms withdrawal and withdrawal payments in
    this discussion. In his reply comments, Bartholomew agrees that
    Legacy and Citizens more appropriately should use the term withdraw
    or withdrawal payments, instead of default or default payments.
    Bartholomew Reply Comments at 1-3.

[^169]: Legacy Comments at 1-5; Citizens Comments at 1-5.

[^170]: \"Further, to prevent the \[withdrawing bidder\] from simply
    forming a \'new entity\' to serve as the nominal auction
    participant, the ban should also extend to entities in which the
    \[withdrawing bidder\'s\] principals have attributable interests.\"
    Legacy Comments at 4; Citizens Comments at 4.

[^171]: Legacy Comments 5; Citizens Comments at 5.

[^172]: Bartholomew Reply Comment at 3.

[^173]: Bartholomew Reply Comment at 5.

[^174]: Legacy Comments at 4; Citizens Comments at 4.

[^175]: In his reply comments, Bartholomew argues that the Commission
    should change its method of creating vacant FM allotments, and that
    the Commission on its own motion should reallocate these nine FM
    allotments in Auction No. 68 to new towns, as well as permitting
    winning bidders to petition to change the city of license for any
    construction permits won in the auction as soon as final payment is
    made. Bartholomew Reply Comments at 7-10. We decline to adopt his
    proposals to change our vacant FM allotment rules and procedures
    because this is not the appropriate forum and due to an insufficient
    record for such rule and procedural changes.

[^176]: Bartholomew Reply Comments at 5-7.

[^177]: *See* 47 C.F.R. § 1.2107(b).

[^178]: *See* Implementation of the Commercial Spectrum Enhancement Act
    and Modernization of the Commission's Competitive Bidding Rules and
    Procedures, WT Docket No. 05-211, *Report and Order*, 21 FCC Rcd 891
    (2006). ("*CSEA/Part 1 Report and Order*").

[^179]: 47 C.F.R. § 1.2109(a).

[^180]: *See* 47 C.F.R. § 1.2109(a).

[^181]: Mullaney Comments at 3-4.

[^182]: 47 C.F.R. § 73.5005(a).

[^183]: *Id*. §§ 1.2112(b) and 73.5005.

[^184]: Legacy Comments at 3; Citizens Comments at 3.

[^185]: Bartholomew Reply Comments at 1-4.

[^186]: *See* 47 C.F.R. § 1.2109(b) and (c).

[^187]: 47 C.F.R. § 1.2109(d).

[^188]: *See generally*, 47 C.F.R. § 1.2105.

[^189]: Any application for a noncommercial educational station that is
    mutually exclusive with any application for a commercial station
    will be returned as unacceptable for filing. *See NCE Second Report
    and Order*, 18 FCC Rcd at 6699-6700. Applicants specifying the same
    FM station construction permit are considered mutually exclusive.

[^190]: *See* 47 C.F.R. §§ 1.2105(a)(2)(ii)(A), 73.5007 and 73.5008.

[^191]: *See NCE Second Report and Order*, 18 FCC Rcd at 6699-6700.
    Applicants specifying the same FM station construction permit are
    considered mutually exclusive.

[^192]: *See* 47 C.F.R. § 1.2105(a)(2)(i).

[^193]: *See Broadcast Competitive Bidding First Report and Order*, 13
    FCC Rcd at 15974 and n.153.

[^194]: Full-service noncommercial educational stations, on both
    reserved and nonreserved channels, are included among "media of mass
    communications" as defined in Section 73.5008(b). *See Minnesota
    Christian Broadcasters, Inc*., 18 FCC Rcd 614 (2003), *aff'd sub
    nom, Carol DeLaHunt v. FCC, 411 F.3d 283 (D.C.Cir. 2005).*

[^195]: *See* 47 C.F.R. § 1.2105(a)(2)(viii).

[^196]: *See* 47 C.F.R. §§ 1.2105(a)(2)(ii)(B), 1.2110, 1.2112, and
    73.5002.

[^197]: *See* 47 C.F.R. § 1.2112.

[^198]: 47 C.F.R. § 1.2112(a). Section 73.5002 specifies the bidding
    procedures, certification requirements and anti-collusion rules
    applicable to applications for commercial broadcast services that
    are subject to auction. Subsection (b) requires the timely
    submission of Form 175 applications along with all required
    certifications, information and exhibits pursuant to 47 C.F.R. §
    1.2105(a) and any Commission public notices. Section 1.2105 requires
    the disclosure on the short-form application of applicant ownership
    information as set forth in Section 1.2112.

[^199]: 47 C.F.R. § 1.2112(a)(7).

[^200]: S*ee* 47 C.F.R. § 1.2112(a)(6).

[^201]: *Id*.

[^202]: *See generally*, 47 C.F.R. § 1.2105(a)(2) (iv)-(vii) and
    (ix)-(xi).

[^203]: *See* 47 C.F.R. § 1.2105(a)(2)(xi).

[^204]: *See* 47 C.F.R. § 1.2106(a).

[^205]: *See* 47 C.F.R. § 1.917.

[^206]: *See* 47 C.F.R. § 1.2105(a)(2)(v).

[^207]: *See* 47 C.F.R. § 1.2105(b).