**DA 03-1547**

**May 12, 2003**

**CLOSED BROADCAST AUCTION NO. 54**

**CONSTRUCTION PERMITS FOR NEW BROADCAST STATIONS**

**SCHEDULED FOR JULY 23, 2003**

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

**Upfront Payments and Other Auction Procedures**

**Report No. AUC-03-54-B (Auction No. 54)**

I. GENERAL INFORMATION [4](#i.-general-information)

A. Introduction [4](#introduction)

1\. Construction Permits to Be Auctioned
[4](#construction-permits-to-be-auctioned)

B. Rules and Disclaimers [5](#rules-and-disclaimers)

1\. Relevant Authority [5](#relevant-authority)

2\. Prohibition of Collusion [5](#prohibition-of-collusion)

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

4\. Bidder Alerts [8](#bidder-alerts)

5\. National Environmental Policy Act (NEPA) Requirements
[8](#national-environmental-policy-act-nepa-requirements)

C. Auction Specifics [9](#auction-specifics)

1\. Auction Date [9](#auction-date)

2\. Auction Title [9](#auction-title)

3\. Bidding Methodology [9](#bidding-methodology)

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

5\. Requirements for Participation [9](#requirements-for-participation)

6\. General Contact Information [9](#general-contact-information)

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

A. License Selection [11](#license-selection)

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

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

C. New Entrant Bidding Credit (Form 175 Exhibit C)
[11](#c.-new-entrant-bidding-credit-form-175-exhibit-c)

1\. Eligibility [11](#eligibility)

2\. Application Requirements [11](#application-requirements)

3\. Bidding Credits [11](#bidding-credits)

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

E. Installment Payments [11](#e.-installment-payments)

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

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

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

III\. PRE-AUCTION PROCEDURES [11](#iii.-pre-auction-procedures)

A. Auction Seminar [11](#auction-seminar)

B. Short-Form Application (FCC Form 175) --- Due June 20, 2003
[11](#short-form-application-fcc-form-175-due-june-20-2003)

1\. Electronic Filing [11](#electronic-filing)

2\. Completion of the FCC Form 175 [11](#completion-of-the-fcc-form-175)

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

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

D. Upfront Payments --- Due July 3, 2003
[11](#upfront-payments-due-july-3-2003)

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

2\. FCC Form 159 [11](#fcc-form-159)

3\. Amount of Upfront Payment [11](#amount-of-upfront-payment)

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

E. Auction Registration [11](#auction-registration)

F. Remote Electronic Bidding [11](#remote-electronic-bidding)

G. Mock Auction [11](#mock-auction)

IV\. AUCTION EVENT [11](#iv.-auction-event)

A. Auction Structure [11](#auction-structure)

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

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

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

4\. Auction Stopping Rules [11](#auction-stopping-rules)

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

B. Bidding Procedures [11](#bidding-procedures)

1\. Round Structure [11](#round-structure)

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

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

4\. High Bids [11](#high-bids)

5\. Bidding [11](#bidding)

6\. Bid Removal and Bid Withdrawal [11](#bid-removal-and-bid-withdrawal)

7\. Round Results [11](#round-results)

8\. Auction Announcements [11](#auction-announcements)

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

V. POST-AUCTION PROCEDURES [11](#v.-post-auction-procedures)

A. Down Payments [11](#down-payments)

B. Long-Form Application [11](#long-form-application)

C. Default and Disqualification [11](#default-and-disqualification)

D. Refund of Remaining Upfront Payment Balance
[11](#refund-of-remaining-upfront-payment-balance)

VI Attachment A: Construction Permits to be Auctioned
A-[11](#vi-attachment-a)

VII\. Attachment B: FCC Auction Seminar Registration Form
B-[11](#vii.-attachment-b)

VIII\. Attachment C: Electronic Filing and Review of the FCC Form 175
C-[11](#attachment-c)

IX\. Attachment D: Guidelines for Completion of FCC Form 175 and
Exhibits D-[11](#ix.-attachment-d)

X. Attachment E: Auction-Specific Instructions for FCC Remittance Advice
(FCC Form 159-February 2000 Edition) E-[11](#x.-attachment-e)

XI\. Attachment F: Summary Listing of Documents from the Commission and
the Wireless Telecommunications Bureau Addressing Application of the
Anti-Collusion Rules F-[11](#attachment-f)

# I. GENERAL INFORMATION {#i.-general-information .unnumbered}

## Introduction

This public notice announces the procedures and minimum opening bids for
the upcoming auction of construction permits for new full power
television (TV), low power television (LPTV), and FM broadcast stations
("Auction No. 54"), scheduled for July 23, 2003. On April 11, 2003, in
accordance with the Balanced Budget Act of 1997,[^1] the Media Bureau
("MB") and the Wireless Telecommunications Bureau ("WTB") (collectively,
the "Bureaus") released the *Auction No. 54 Comment Public Notice*,[^2]
seeking comment on the establishment of reserve prices and/or minimum
opening bids for Auction No. 54. In addition, the Bureaus sought comment
on a number of procedures to be used in Auction No. 54. The Bureaus
received no comments in response to the *Auction No. 54 Comment Public
Notice*.

### Construction Permits to Be Auctioned 

Auction No. 54 will include construction permits for one TV, two LPTV,
and four FM broadcast stations. These broadcast stations are the subject
of pending, mutually exclusive FCC Form 301 or Form 346 applications for
construction permits for the referenced broadcast services, for which
the Commission has not approved a settlement agreement that obviates the
need for an auction. Pursuant to the *Broadcast First Report and Order,*
participation in this auction is limited to the applicants identified in
Attachment A.[^3] All applications within a mutually exclusive applicant
group ("MX Group") are directly mutually exclusive with one another, and
therefore a single construction permit will be auctioned for each MX
Group identified in Attachment A. Applicants will be eligible to bid on
only those construction permits selected on their previously filed FCC
Form 301 or Form 346. The minimum opening bids and upfront payments for
these broadcast construction permits are also included in Attachment A.

As stated in the *Broadcast First Report and Order*, all pending
mutually exclusive applications for broadcast services must be resolved
through a system of competitive bidding.[^4] When two or more short-form
applications (FCC Form 175) are accepted for filing within an MX Group,
mutual exclusivity exits for auction purposes.[^5] 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.[^6]

## Rules and Disclaimers

### Relevant Authority

Prospective bidders must familiarize themselves thoroughly with the
Commission\'s rules relating to broadcast auctions, contained in Title
47, Part 73 of the Code of Federal Regulations. Prospective bidders must
also be thoroughly familiar with the procedures, terms and conditions
(collectively, "terms") contained in this Public Notice; the *Auction
No. 54* *Comment Public Notice*,[^7] the *Broadcast First Report and
Order,*[^8] the *Broadcast Reconsideration Order,*[^9] and the *New
Entrant Bidding Credit Reconsideration Order*.[^10] Potential bidders
must also familiarize themselves with Part 1, Subpart Q of the
Commission's rules concerning competitive bidding proceedings.[^11] In
particular, broadcasters should also familiarize themselves with the
Commission's recent amendments and clarifications to its general
competitive bidding rules.[^12]

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 bidders. It is the responsibility of all prospective
bidders to remain current with all Commission rules and with all public
notices pertaining to this auction. Copies of most Commission documents,
including public notices, can be retrieved from the FCC Auctions
Internet site at [http://wireless.fcc.gov/auctions]{.underline}.
Additionally, documents are available for public inspection and copying
during regular business hours at the FCC Reference Information Center,
Portals II, 445 12^th^ Street, SW, Room CY-A257, Washington, DC, 20554,
or may be purchased from the Commission\'s duplicating contractor,
Qualex International, Portals II, 445 12^th^ Street, SW, Room CY-B402,
Washington, DC 20554, telephone 202-863-2893, facsimile 202-863-2898, or
via e-mail qualexint@aol.com. When ordering documents from Qualex,
please provide the appropriate FCC document number (for example, FCC
98-194 for the *Broadcast First Report and Order* and FCC 99-74 for the
*Broadcast Reconsideration Order*).

### Prohibition of Collusion 

To ensure the competitiveness of the auction process, the Commission's
rules prohibit applicants for the same market from communicating with
each other during the auction about bids, bidding strategies, or
settlements.[^13] This prohibition begins at the short-form application
filing deadline and ends at the down payment deadline after the auction.
Bidders competing for construction permits in the same market are
encouraged not to use the same individual as an authorized bidder. A
violation of the anti‑collusion rule could occur if an individual acts
as the authorized bidder for two or more competing applicants, and
conveys information concerning the substance of bids or bidding
strategies between the bidders he or she is authorized to represent in
the auction. A violation could similarly occur if the authorized bidders
are different individuals employed by the same organization (*e.g.*, law
firm or consulting firm). In such a case, at a minimum, applicants
should certify on their applications that precautionary steps have been
taken to prevent communication between authorized bidders and that
applicants and their bidding agents will comply with the anti‑collusion
rule.[^14]

However, the 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.[^15] The Commission's anti-collusion
rules allow applicants to form certain agreements during the auction,
provided the applicants have not applied for construction permits in the
same market. In Auction No. 54, for example, the rule would apply to any
applicants bidding for the same market (*i.e.*, Victor, ID, MX Groups
FM2 and FM3). Therefore, applicants that apply to bid for any
construction permit in the same market would be precluded from
communicating after filing the FCC Form 175 application with any other
applicant for a construction permit in that same market. However, all
applicants may enter into bidding agreements *before* filing their FCC
Form 175, as long as they disclose the existence of the agreement(s) in
their FCC Form 175.[^16] If parties agree in principle on all material
terms prior to the short-form filing deadline, those parties must be
identified on the short-form application pursuant to Section 1.2105(c),
even if the agreement has not been reduced to writing. If the parties
have not agreed in principle by the filing deadline, an applicant would
not include the names of those parties on its application, and may not
continue negotiations with other applicants for the same market.[^17] By
signing their FCC Form 175 applications, applicants are certifying their
compliance with Sections 1.2105(c) and 73.5002.

In addition, Section 1.65 of the Commission's rules requires an
applicant to *maintain* the accuracy and completeness of information
furnished in its pending application and to notify the Commission within
30 days of any substantial change that may be of decisional significance
to that application.[^18] Thus, Section 1.65 and 1.2105 require an
auction applicant to notify the Commission of any violation of the
anti-collusion rules upon learning of such violation. Bidders therefore
are required to make such notification to the Commission immediately
upon discovery.[^19]

A summary listing of documents from the Commission and the Bureaus
addressing the application of the anti-collusion rules may be found in
Attachment F.

### Due Diligence 

Potential bidders 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.

Potential bidders are strongly encouraged to conduct their own research
prior to Auction No. 54 in order to determine the existence of pending
proceedings that might affect their decisions regarding participation in
the auction. Participants in Auction No. 54 are strongly encouraged to
continue such research during the auction.

**Bidders are solely responsible for identifying associated risks and
for investigating and evaluating the degree to which such matters may
effect their ability to bid on, otherwise acquire, or make use of the
construction permits available in Auction No. 54.**

Potential bidders for the new full power television facility should note
that, in November 1999, Congress enacted the Community Broadcasters
Protection Act of 1999 (CBPA) which established a new Class A television
service.[^20] In response to the enactment of the CBPA, the Commission
adopted rules to establish the new Class A television service.[^21] In
the *Class A Report and Order*, the Commission adopted rules to provide
interference protection for eligible Class A television stations from
new full power television stations.[^22] Given the Commission's ruling
in the *Class A Report and Order*, the winning bidder in Auction No. 54,
upon submission of its long-form application (FCC Form 301), will have
to provide interference protection to qualified Class A television
stations. Therefore, potential bidders are encouraged to perform
engineering studies to determine the existence of Class A television
stations and their effect on the ability to operate the full power
television station proposed in this auction. Information about the
identity and location of Class A television stations is available from
the Media Bureau's Consolidated Database System (CDBS) (public access
available at: <http://www.fcc.gov/mb>) and on the Media Bureau's Class A
television web page:

<http://www.fcc.gov/mb/video/files/classa.html>

Potential bidders for the new full power television facility are also
reminded that full service television stations are in the process of
converting from analog to digital operation and that stations may have
pending applications to construct and operate digital television
facilities, construction permits and/or licenses for such digital
facilities. Bidders should investigate the impact such applications,
permits and licenses may have on their ability to operate the facilities
proposed in this auction.

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.](mailto:ulscomm@fcc.gov)

### Bidder Alerts 

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 construction permit, and not in default on
any payment for Commission construction permits or licenses (including
down payments) or delinquent on any non-tax debt owed to any Federal
agency.[^23] Prospective bidders are reminded that submission of a false
certification to the Commission is a serious matter that may result in
severe penalties, including monetary forfeitures, construction permit or
license revocations, exclusion from participation in future auctions,
and/or criminal prosecution.

As is the case with many business investment opportunities, some
unscrupulous entrepreneurs may attempt to use Auction No. 54 to deceive
and defraud unsuspecting investors. Common warning signals of fraud
include the following:

-   The first contact is a "cold call" from a telemarketer, or is made
    in response to an inquiry prompted by a radio or television
    infomercial.

-   The offering materials used to invest in the venture appear to be
    targeted at IRA funds, for example by including all documents and
    papers needed for the transfer of funds maintained in IRA accounts.

-   The amount of investment is less than \$25,000.

-   The sales representative makes verbal representations that: (a) the
    Internal Revenue Service ("IRS"), Federal Trade Commission ("FTC"),
    Securities and Exchange Commission ("SEC"), FCC, or other government
    agency has approved the investment; (b) the investment is not
    subject to state or federal securities laws; or (c) the investment
    will yield unrealistically high short-term profits. In addition, the
    offering materials often include copies of actual FCC releases, or
    quotes from FCC personnel, giving the appearance of FCC knowledge or
    approval of the solicitation.

Information about deceptive telemarketing investment schemes is
available from the FTC at (202) 326-2222 and from the SEC at (202)
942-7040. Complaints about specific deceptive telemarketing investment
schemes should be directed to the FTC, the SEC, or the National Fraud
Information Center at (800) 876-7060. Consumers who have concerns about
specific proposals regarding Auction No. 54 may also call the FCC
Consumer Center at (888) CALL-FCC ((888) 225-5322).

### National Environmental Policy Act (NEPA) Requirements

Permittees must comply with the Commission\'s rules regarding the
National Environmental Policy Act (NEPA).[^24] 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.[^25] The
Commission\'s NEPA rules require among other things, that the permittee
consult with expert agencies having NEPA responsibilities, including the
U.S. Fish and Wildlife Service, the State Historic Preservation Office,
the Army Corp of Engineers and the Federal Emergency Management Agency
(through the local authority with jurisdiction over floodplains). The
permittee must prepare environmental assessments for broadcast
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 must also
prepare environmental assessments for broadcast facilities that include
high intensity white lights in residential neighborhoods or excessive
radio frequency emission.

## Auction Specifics

### Auction Date

Auction No. 54 will begin on Wednesday, July 23 2003. The initial
schedule for bidding will be announced by public notice at least one
week before the start of the auction. Unless otherwise announced,
bidding on all construction permits will be conducted on each business
day until bidding has stopped on all construction permits.

### Auction Title

Auction No. 54 --- Closed Broadcast

### Bidding Methodology 

The bidding methodology for Auction No. 54 will be simultaneous,
multiple round bidding. The Commission will conduct this auction over
the Internet, and telephonic bidding will be available as well. As a
contingency plan, bidders may also dial in to the FCC Wide Area Network.
Qualified bidders are permitted to bid telephonically or electronically.

### Pre-Auction Dates and Deadlines

Auction Seminar June 12, 2003

Short-Form (FCC Form 175) Filing Window Opens June 12, 2003; 12:00 p.m.
ET

Short-Form (FCC Form 175) Application Deadline June 20, 2003; 6:00 p.m.
ET

Upfront Payments (via wire transfer) July 3, 2003; 6:00 p.m. ET

Mock Auction July 18, 2003

Auction Begins July 23, 2003

### Requirements for Participation 

Those wishing to participate in the auction must:

-   Submit a short form application (FCC Form 175) electronically by
    6:00 p.m. ET, June 20, 2003. No other application may be substituted
    for the FCC Form 175.

-   Submit a sufficient upfront payment and an FCC Remittance Advice
    Form (FCC Form 159) by 6:00 p.m. ET, July 3, 2003.

-   Comply with all provisions outlined in this public notice and
    applicable Commission rules.

### General Contact Information

+-----------------------------------+----------------------------------+
| GENERAL AUCTION INFORMATION       | FCC Auctions Hotline             |
+-----------------------------------+----------------------------------+
| General Auction Questions         | \(888\) 225-5322, Press Option   |
|                                   | #2                               |
+-----------------------------------+----------------------------------+
| Seminar Registration              | or direct (717) 338-2888         |
+-----------------------------------+----------------------------------+
|                                   | Hours of service: 8 a.m. -- 5:30 |
|                                   | p.m. ET                          |
+-----------------------------------+----------------------------------+
| AUCTION LEGAL INFORMATION         | Auctions and Industry Analysis   |
|                                   | Division                         |
+-----------------------------------+----------------------------------+
| Auction Rules, Policies,          | Legal Branch (202) 418-0660      |
| Regulations                       |                                  |
+-----------------------------------+----------------------------------+
| LICENSING INFORMATION             | Audio Division                   |
+-----------------------------------+----------------------------------+
| Rules, Policies, Regulations      | \(202\) 418-2700                 |
|                                   |                                  |
| Licensing Issues                  | Video Division                   |
|                                   |                                  |
| Due Diligence                     | \(202\) 418-1600                 |
|                                   |                                  |
| Incumbency Issues                 |                                  |
+-----------------------------------+----------------------------------+
| TECHNICAL SUPPORT                 | FCC Auctions Technical Support   |
|                                   | Hotline                          |
+-----------------------------------+----------------------------------+
| Electronic Filing                 | \(202\) 414-1250 (Voice),        |
+-----------------------------------+----------------------------------+
| Automated Auction System          | \(202\) 414-1255 (TTY)           |
|                                   |                                  |
|                                   | Hours of service: Monday through |
|                                   | Friday 8 a.m. to 6:00 p.m. ET    |
+-----------------------------------+----------------------------------+
| PAYMENT INFORMATION               | FCC Auctions Accounting Branch   |
+-----------------------------------+----------------------------------+
| Wire Transfers                    | \(202\) 418-1995                 |
+-----------------------------------+----------------------------------+
| Refunds                           | \(202\) 418-2843 (Fax)           |
+-----------------------------------+----------------------------------+
| TELEPHONIC BIDDING                | Will be furnished only to        |
|                                   | qualified bidders                |
+-----------------------------------+----------------------------------+
| FCC COPY CONTRACTOR               | Qualex International             |
+-----------------------------------+----------------------------------+
| Additional Copies of              | Portals II, 445 12^th^ Street,   |
|                                   | SW, Room CY-B402                 |
+-----------------------------------+----------------------------------+
| Commission Documents              | Washington, DC 20554             |
|                                   |                                  |
|                                   | \(202\) 863-2893                 |
|                                   |                                  |
|                                   | \(202\) 863-2898 (Fax)           |
|                                   |                                  |
|                                   | qualexint@aol.com (E-mail)       |
+-----------------------------------+----------------------------------+
| PRESS INFORMATION                 | Meribeth McCarrick (202)         |
|                                   | 418-0654                         |
+-----------------------------------+----------------------------------+
| FCC FORMS                         | \(800\) 418-3676 (outside        |
|                                   | Washington, DC)                  |
|                                   |                                  |
|                                   | \(202\) 418-3676 (in the         |
|                                   | Washington Area)                 |
|                                   |                                  |
|                                   | <h                               |
|                                   | ttp://www.fcc.gov/formpage>.html |
+-----------------------------------+----------------------------------+
| FCC INTERNET SITES                | [http://w                        |
|                                   | ww.fcc.gov](http://www.fcc.gov/) |
|                                   |                                  |
|                                   | [ht                              |
|                                   | tp://wireless.fcc.gov/](http://w |
|                                   | ww.fcc.gov/wtb/auctions)auctions |
|                                   |                                  |
|                                   | http://www.fcc.gov/mb            |
+-----------------------------------+----------------------------------+

# II. SHORT-FORM APPLICATION (FCC FORM 175) REQUIREMENTS {#ii.-short-form-application-fcc-form-175-requirements .unnumbered}

Guidelines for completion of the short-form application (FCC Form 175)
are set forth in Attachment D to this public notice. The short-form
application seeks the applicant's name and address, legal
classification, status, new entrant bidding credit eligibility,
identification of the construction permit(s) sought, the authorized
bidders and contact persons. All applicants must certify on their FCC
Form 175 applications under penalty of perjury that they are legally,
technically, financially and otherwise qualified to hold a license and,
as discussed below in Section II.E (Provisions Regarding Defaulters and
Former Defaulters), that they are not in default on any payment for
Commission licenses (including down payments) or delinquent on any
non-tax debt owed to any Federal agency. To participate in Auction No.
54, no other application may be substituted for the FCC Form 175.

## License Selection

We note that as part of the FCC Form 175 filing process, applicants must
identify which construction permits they may bid on as part of the
auction. While the electronic FCC Form 175 will allow for the selection
of **all** construction permits, applicants should only select from
among those construction permits that they selected on their previously
filed FCC Form 301 or Form 346. Applicants that select construction
permits on their FCC Form 175 that were not selected on the FCC Form 301
or Form 346 will not be permitted to bid on those construction permits
during the auction.

## Ownership Disclosure Requirements (FCC Form 175 Exhibit A)

The Commission indicated in the *Broadcast First Report and Order* that,
for purposes of determining eligibility to participate in a broadcast
auction, the uniform Part 1 ownership disclosure standards would apply.
Specifically, in completing FCC Form 175, all applicants will be
required to file an "Exhibit A" and provide information required by
Sections 1.2105 and 1.2112 of the Commission's rules, thus providing a
full and complete statement of the ownership of the bidding entity. The
ownership disclosure standards for the short-form are set forth in
Section 1.2112 of the Commission's rules.[^26]

## Consortia And Joint Bidding Arrangements (FCC Form 175 Exhibit B)

Applicants will be required to identify on their short-form applications
any parties with whom they have entered into any consortium
arrangements, joint ventures, partnerships or other agreements or
understandings which relate in any way to the construction permits being
auctioned, including any agreements relating to post-auction market
structure.[^27] Applicants will also be required to certify on their
short-form applications that they have not entered into any explicit or
implicit agreements, arrangements or understandings of any kind with any
parties, other than those identified, regarding the amount of their
bids, bidding strategies, or the particular construction permits on
which they will or will not bid.[^28] As discussed above, if an
applicant has had discussions, but has not reached a joint bidding
agreement by the short-form deadline, it would not include the names of
parties to the discussions on its applications and may not continue
discussions with applicants for the same market after the deadline.[^29]
Where applicants have entered into consortia or joint bidding
arrangements, applicants must submit an "Exhibit B" to the FCC Form 175.

A party holding a non-controlling, attributable interest in one
applicant will be permitted to acquire an ownership interest in, form a
consortium with, or enter into a joint bidding arrangement with other
applicants for construction permits in the same market provided that (i)
the attributable interest holder certifies that it has not and will not
communicate with any party concerning the bids or bidding strategies of
more than one of the applicants in which it holds an attributable
interest, or with which it has formed a consortium or entered into a
joint bidding arrangement; and (ii) the arrangements do not result in a
change in control of any of the applicants.[^30] While the
anti-collusion rules do not prohibit non-auction related business
negotiations among auction applicants, bidders are reminded that certain
discussions or exchanges could touch upon impermissible subject matters
because they may convey pricing information and bidding strategies. Such
subject areas include, but are not limited to, issues such as
management, sales, local marketing agreements, rebroadcast agreements,
and other transactional agreements.

## C. New Entrant Bidding Credit (Form 175 Exhibit C) {#c.-new-entrant-bidding-credit-form-175-exhibit-c .unnumbered}

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.

### 1. Eligibility {#eligibility .unnumbered}

The interests of the bidder, and of any individuals or entities with an
attributable interest in the bidder, in other media of mass
communications shall be considered when determining a bidder\'s
eligibility for the New Entrant Bidding Credit.[^31] The bidder\'s
attributable interests shall be determined as of the short-form
application (FCC Form 175) filing deadline -- June 20, 2003. Bidders
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
application filing deadline -- June 20, 2003.[^32]

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.[^33]

In cases where a bidder'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.[^34]

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, a bidder claiming new entrant status. Specifically, the
attributable mass media interests held by an individual or entity with
an equity and/or debt interest in a bidder 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 bidder, even if such
an interest is non-voting.[^35]

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.[^36] 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 bidders\'
other mass media interests in determining its eligibility for a New
Entrant Bidding Credit.[^37] Full service noncommercial educational
stations, on both reserved and non-reserved channels, are included among
"media of mass communications" as defined in Section 73.5008(b).[^38] A
medium of mass communications is defined in 47 C.F.R § 73.5008 (b) and
includes non-commercial broadcast stations.

### 2. Application Requirements {#application-requirements .unnumbered}

In addition to the ownership information required on Exhibit A,
applicants are required to file supporting documentation on Exhibit C to
their FCC Form 175 applications to establish that they satisfy the
eligibility requirements to qualify for a New Entrant Bidding
Credit.[^39] In those cases where a New Entrant Bidding Credit is being
sought, a certification under penalty of perjury must be set forth in
Exhibit C. An applicant claiming that it qualifies for a 35 percent new
entrant bidding credit must provide a certification, under penalty of
perjury, 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 provide a certification, under penalty
of perjury, 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.

### 3. Bidding Credits {#bidding-credits .unnumbered}

Applicants that qualify for the New Entrant Bidding Credit, as set forth
in 47 C.F.R. § 73.5007, 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, 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.

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. Bidders 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.[^40]

## D. Provisions Regarding Defaulters and Former Defaulters (Form 175 Exhibit D) {#d.-provisions-regarding-defaulters-and-former-defaulters-form-175-exhibit-d .unnumbered}

Each applicant must provide a certification on its FCC Form 175
application, made under penalty of perjury, that it is not in default on
any Commission licenses and that it is not delinquent on any non-tax
debt owed to any Federal agency.[^41] In addition, each applicant must
provide a certification on its FCC Form 175 application, made under
penalty of perjury, indicating whether or not the applicant, its
affiliates, its controlling interests, or the affiliates of its
controlling interest, have ever been in default on any Commission
licenses or have ever been delinquent on any non-tax debt owed to any
federal agency.[^42] The applicant must provide such information for
itself, its affiliates, its controlling interests, and the affiliates of
its controlling interests, as defined by Section 1.2110 of the
Commission's rules (as amended in the *Part 1 Fifth Report and
Order*).[^43] **Applicants must include this statement as Exhibit D of
the FCC Form 175.** If any of an applicant's controlling interest
holders or their affiliates, as defined by Section 1.2110 of the
Commission's rules, have ever been in default on any Commission license
or have ever been delinquent on any non-tax debt owed to any Federal
agency, the applicant must include such information as part of the same
certification statement.[^44] Prospective bidders are reminded that the
statements must be made under penalty of perjury and, further,
submission of a false certification to the Commission is a serious
matter that may result in severe penalties, including monetary
forfeitures, license revocations, exclusion from participation in future
auctions, and/or criminal prosecution.

"Former defaulters" --- *i.e.*, applicants, including their attributable
interest holders, that in the past have defaulted on any Commission
licenses or been delinquent on any non-tax debt owed to any Federal
agency, but that have since remedied all such defaults and cured all of
their outstanding non-tax delinquencies --- are eligible to bid in
Auction No. 54, provided that they are otherwise qualified. However, as
discussed *infra* in Section III.D.3, former defaulters are required to
pay upfront payments that are fifty percent more than the normal upfront
payment amounts.[^45]

## E. Installment Payments {#e.-installment-payments .unnumbered}

Installment payment plans will not be available in Auction No. 54.

## F. Other Information (FCC Form 175 Exhibits E and F) {#f.-other-information-fcc-form-175-exhibits-e-and-f .unnumbered}

Applicants owned by minorities or women, as defined in 47 C.F.R. §
1.2110(b)(2), may attach an exhibit (Exhibit E) regarding this status.
This applicant status information is collected for statistical purposes
only and assists the Commission in monitoring the participation of
"designated entities" in its auctions. Applicants must specify the file
number of the pending FCC Form 301 or Form 346 on Exhibit F
(Miscellaneous Information). Applicants wishing to submit additional
information may do so on Exhibit F (Miscellaneous Information) to the
FCC Form 175.

##  {#section .unnumbered}

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

After the short-form application filing deadline (June 20, 2003),
applicants may make only minor changes to their FCC Form 175
applications. Applicants will not be permitted to make major
modifications to their applications (*e.g*., change their construction
permit selections, change the certifying official, changes in ownership
of the applicant that would constitute a change of control of the
applicant, or changes affecting eligibility for the new entrant bidding
credit).[^46] Permissible minor changes include, for example, deletion
and addition of authorized bidders (to a maximum of three) and revision
of exhibits. Applicants should make these modifications to their FCC
Form 175 electronically and submit a letter, briefly summarizing the
changes, by electronic mail to the attention of Margaret Wiener, Chief,
Auctions and Industry Analysis Division, at the following address:
[auction54@fcc.gov]{.underline}. The electronic mail summarizing the
changes must include a subject or caption referring to Auction No. 54.
The Bureau requests that parties format any attachments to electronic
mail as Adobe^®^ Acrobat^®^ (pdf) or Microsoft^®^ Word documents.

**A separate copy of the letter should be faxed to the attention of
Kathryn Garland at (717) 338-2850.** Questions about other changes
should be directed to Kenneth Burnley of the Auctions and Industry
Analysis Division at (202) 418-0660.

##  {#section-1 .unnumbered}

## H. Maintaining Current Information in Short-Form Applications (FCC Form 175) {#h.-maintaining-current-information-in-short-form-applications-fcc-form-175 .unnumbered}

Applicants have an obligation under 47 C.F.R. §1.65, to maintain the
completeness and accuracy of information in their short-form
applications. Amendments reporting substantial changes of possible
decisional significance in information contained in FCC Form 175
applications, as defined by 47 C.F.R. § 1.2105(b)(2), will not be
accepted and may in some instances result in the dismissal of the FCC
Form 175 application.

# III. PRE-AUCTION PROCEDURES {#iii.-pre-auction-procedures .unnumbered}

## Auction Seminar

On June 12, 2003 the FCC will sponsor a free seminar for Auction No. 54
at the Federal Communications Commission, located at 445 12^th^ Street,
S.W., Washington, D.C. The seminar will provide attendees with
information about pre-auction procedures, conduct of the auction, the
FCC Automated Auction System, and the broadcast service and auction
rules. The seminar will also provide an opportunity for prospective
bidders to ask questions of FCC staff.

To register, complete the registration form found in Attachment B and
submit it by Tuesday, June 10, 2003. Registrations are accepted on a
first-come, first-served basis.

## Short-Form Application (FCC Form 175) --- Due June 20, 2003

In order to be eligible to bid in this auction, applicants must first
submit an FCC Form 175 application. This application must be submitted
electronically and received at the Commission no later than 6:00 p.m. ET
on June 20, 2003. Late applications will not be accepted.

There is no application fee required when filing an FCC Form 175.
However, to be eligible to bid, an applicant must submit an upfront
payment. *See* Part III.D, *infra.*

### Electronic Filing

Applicants must file their FCC Form 175 applications
electronically.[^47] Applications may generally be filed at any time
beginning at 12:00 noon ET on June 12, 2003, until 6:00 p.m. ET on June
20, 2003. Applicants are strongly encouraged to file early and are
responsible for allowing adequate time for filing their applications.
Applicants may update or amend their electronic applications multiple
times until the filing deadline on June 20, 2003.

Applicants must press the "SUBMIT Application" button on the
"Submission" page of the electronic form to successfully submit their
FCC Form 175s. Any form that is not submitted will not be reviewed by
the FCC. Information about accessing the FCC Form 175 is included in
Attachment C. Technical support is available at (202) 414-1250 (voice)
or (202) 414-1255 (text telephone (TTY)); hours of service are Monday
through Friday, from 8:00 AM to 6:00 PM ET. In order to provide better
service to the public, *all calls to the hotline are recorded.*

Applicants can also contact Technical Support via e-mail. To obtain the
address, click the **Support** tab on the Form 175 Homepage.

### Completion of the FCC Form 175

Applicants should carefully review 47 C.F.R. §§ 1.2105 and 73.5002, and
must complete all items on the FCC Form 175. Instructions for completing
the FCC Form 175 are in Attachment D of this public notice. Applicants
are encouraged to begin preparing the required attachments for FCC Form
175 prior to submitting the form. Attachments C and D to this public
notice provide information on the required attachments and appropriate
formats.

### Electronic Review of FCC Form 175

The FCC Form 175 electronic review system may be used to locate and
print applicants' FCC Form 175 information. There is no fee for
accessing this system. *See* Attachment C for details on accessing the
review system.

Applicants may also view other applicants' completed FCC Form 175s after
the filing deadline has passed, and the FCC has issued a public notice
explaining the status of the applications. NOTE: Applicants should not
include sensitive information (*i.e.*, Taxpayer Identification Number or
Employer Identification Number) on any exhibits to their FCC Form 175
applications.

## Application Processing and Minor Corrections

After the deadline for filing the FCC Form 175 applications has passed,
the FCC will process all timely submitted applications to determine
which are acceptable for filing, and subsequently will issue a public
notice identifying: (1) those applications accepted for filing
(including FCC account numbers and the construction permits for which
they applied); (2) those applications rejected; and (3) those
applications which have minor defects that may be corrected, and the
deadline for filing such corrected applications.

As described more fully in the Commission's rules, after the June 20,
2003 short-form filing deadline, applicants may make only minor
corrections to their FCC Form 175 applications. Applicants will not be
permitted to make major modifications to their applications (*e.g.*,
change their construction permit selections, change the certifying
official, change control of the applicant, or change New Entrant Bidding
Credit eligibility).[^48]

## Upfront Payments --- Due July 3, 2003 

In order to be eligible to bid in the auction, applicants must submit an
upfront payment accompanied by an FCC Remittance Advice Form (FCC Form
159). After completing the FCC Form 175, filers will have access to an
electronic version of the FCC Form 159 that can be printed and faxed to
Mellon Bank in Pittsburgh, PA. All upfront payments must be received at
Mellon Bank by 6:00 p.m. ET on July 3, 2003.

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. 54 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 July 3, 2003, deadline
    will result in dismissal of the application and disqualification
    from participation in the auction.

### Making Auction Payments by Wire Transfer

**Wire transfer payments must be received by 6:00 p.m. ET on July 3,
2003.** To avoid untimely payments, applicants should discuss
arrangements (including bank closing schedules) with their banker
several days before they plan to make the wire transfer, and allow
sufficient time for the transfer to be initiated and completed before
the deadline. Applicants will need the following information:

ABA Routing Number: 043000261

Receiving Bank: Mellon Pittsburgh

> BENEFICIARY: FCC/Account \# 910-0180

OBI Field: (Skip one space between each information item)

"AUCTIONPAY"

FCC REGISTRATION NUMBER (FRN): (same as FCC Form 159, block 11 and/or
21)

PAYMENT TYPE CODE: (same as FCC Form 159, block 24A: A54U)

FCC CODE 1: (same as FCC Form 159, block 28A: "54")

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.

Applicants must fax a completed FCC Form 159 (Revised 2/00) to Mellon
Bank at (412) 209-6045 **at least one hour before** placing the order
for the wire transfer (but on the same business day). On the cover sheet
of the fax, write "Wire Transfer - Auction Payment for Auction Event No.
54." **Bidders should confirm the receipt of their upfront payment at
Mellon Bank by contacting their sending financial institution.**

### FCC Form 159

A completed FCC Remittance Advice Form (FCC Form 159, Revised 2/00) must
be faxed to Mellon Bank in order to accompany each upfront payment.
Proper completion of FCC Form 159 (Revised 2/00) is critical to ensuring
correct credit of upfront payments. Detailed instructions for completion
of FCC Form 159 are included in Attachment E to this public notice. An
electronic version of the FCC Form 159 is available after filing the FCC
Form 175. The FCC Form 159 must be completed electronically and must be
filed with Mellon Bank via facsimile.

### Amount of Upfront Payment

The Commission delegated to the Bureaus the authority and discretion to
determine appropriate upfront payment(s) for each auction.[^49] In
addition, in the *Part 1 Fifth Report and Order*, the Commission ordered
that "former defaulters," *i.e.*, applicants that have ever been in
default on any Commission license or have ever been delinquent on any
non-tax debt owed to any Federal agency, be required to pay upfront
payments fifty percent greater than non-"former defaulters."[^50] For
purposes of this calculation, the "applicant" includes the applicant
itself, its affiliates, its controlling interests, and affiliates of its
controlling interests, as defined by Section 1.2110 of the Commission's
rules (as amended in the *Part 1 Fifth Report and Order*).[^51]

In the *Auction No. 54 Comment Public Notice*, we proposed that the
amount of the upfront payment would determine the number of bidding
units on which a bidder may place bids.[^52] In order to bid on a
construction permit, otherwise qualified bidders that applied for that
construction permit on FCC Form 175 must have an eligibility level that
meets the number of bidding units assigned to that construction permit.
(While the electronic FCC Form 175 allows for the selection of all
construction permits, applicants should only select from among those
construction permits that they selected on their previously filed FCC
Form 301 or Form 346).[^53] At a minimum, an applicant's total upfront
payment must be enough to establish eligibility to bid on at least one
construction permit applied for on FCC Form 175, or else the applicant
will not be eligible to participate in the auction. No comments were
received; therefore, we adopt our proposal. The specific upfront
payments and bidding units for each construction permit are set forth in
Attachment A of this Public Notice.

In calculating its upfront payment amount, an applicant should determine
the [maximum]{.underline} number of bidding units on which it may wish
to be active (bidding units associated with construction permits on
which the bidder has the standing high bid from the previous round and
construction permits on which the bidder places a bid in the current
round) in any single round, and submit an upfront payment covering that
number of bidding units. In order to make this calculation, an applicant
should add together the upfront payments for all construction permits on
which it seeks to bid in any given round. **Bidders should check their
calculations carefully, as there is no provision for increasing a
bidder's maximum eligibility after the upfront payment deadline.**

> Former defaulters should calculate their upfront payment for all
> construction permits by multiplying the number of bidding units they
> wish to purchase by 1.5. In order to calculate the number of bidding
> units to assign to former defaulters, the Commission will divide the
> upfront payment received by 1.5 and round the result up to the nearest
> bidding unit.

NOTE: An applicant's actual bidding in any round will be limited by the
bidding units reflected in its upfront payment, in conjunction with the
selections made on the FCC Form 175.

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

The Commission will use wire transfers for all Auction No. 54 refunds.
To ensure that refunds of upfront payments are processed in an
expeditious manner, the Commission is requesting that all pertinent
information as listed below be supplied to the FCC. Applicants can
provide the information electronically during the initial short-form
filing window after the form has been submitted. Wire Transfer
Instructions can also be manually faxed to the FCC, Financial Operations
Center, Auctions Accounting Group, ATTN: Gail Glasser or Tim Dates, at
(202) 418-2843 by July 3, 2003. 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 or Tim Dates at
(202) 418-0496.

Name of Bank

ABA Number

> Contact and Phone Number

Account Number to Credit

Name of Account Holder

FCC Registration Number (FRN)

Taxpayer Identification Number (see below)

Correspondent Bank (if applicable)

ABA Number

Account Number

(Applicants should also note that implementation of the Debt Collection
Improvement Act of 1996 requires the FCC to obtain a Taxpayer
Identification Number (TIN) before it can disburse refunds.) Eligibility
for refunds is discussed in Section V.D., *infra*.

## Auction Registration

Approximately ten days before the auction, the FCC will issue a public
notice announcing all qualified bidders for the auction. Qualified
bidders are those applicants whose FCC Form 175 applications have been
accepted for filing and that have timely submitted upfront payments
sufficient to make them eligible to bid on at least one of the
construction permits for which they applied.

All qualified bidders are automatically registered for the auction.
Registration materials will be distributed prior to the auction by two
separate overnight mailings, each containing the confidential bidder
identification number (BIN) and the other containing the SecurID cards,
both of which are required to place bids. **These mailings will be sent
only to the contact person at the contact address listed in the FCC Form
175.**

Applicants that do not receive both registration mailings will not be
able to submit bids. Therefore, any qualified applicant that has not
received both mailings by noon on Wednesday, July 16, 2003, should
contact the Auctions Hotline at (717) 338-2888. Receipt of both
registration mailings is critical to participating in the auction and
each applicant is responsible for ensuring it has received all of the
registration material.

Qualified bidders should note that lost bidder identification numbers or
SecurID cards can be replaced only by appearing [in person]{.underline}
at the FCC Headquarters located at 445 12^th^ Street, S.W., Washington,
D.C. 20554. Only an authorized representative or certifying official, as
designated on an applicant\'s FCC Form 175, may appear in person with
two forms of identification (one of which must be a photo
identification) in order to receive replacements. Qualified bidders
requiring replacements must call technical support prior to arriving at
the FCC.

## Remote Electronic Bidding 

The Commission will conduct this auction over the Internet, and
telephonic bidding will be available as well. As a contingency plan,
bidders may also dial in to the FCC Wide Area Network. Qualified bidders
are permitted to bid telephonically or electronically. In either case,
**each authorized bidder** must have its own SecurID card, which the FCC
will provide at no charge. Each applicant with one authorized bidder
will be issued two SecurID cards, while applicants with two or three
authorized bidders will be issued three cards. For security purposes,
the SecurID cards and the FCC Automated Auction System user manual are
only mailed to the contact person at the contact address listed on the
FCC Form 175. Please note that each SecurID card is tailored to a
specific auction; therefore, SecurID cards issued for other auctions or
obtained from a source other than the FCC will not work for Auction No.
54. The telephonic bidding phone number will be supplied in the first
overnight mailing, which also includes the confidential bidder
identification number. Each applicant should indicate its bidding
preference---electronic or telephonic---on the FCC Form 175.

Please note that the SecurID cards can be recycled, and we encourage
bidders to return the cards to the FCC. We will provide pre-addressed
envelopes that bidders may use to return the cards once the auction is
over.

## Mock Auction

All qualified bidders will be eligible to participate in a mock auction
on Friday, July 18, 2003. The mock auction will enable applicants to
become familiar with the FCC Automated Auction System prior to the
auction. Participation by all bidders is strongly recommended. Details
will be announced by public notice.

# IV. AUCTION EVENT {#iv.-auction-event .unnumbered}

The first round of bidding for Auction No. 54 will begin on Wednesday,
July 23, 2003. The initial bidding schedule will be announced in a
public notice listing the qualified bidders, which is released
approximately 10 days before the start of the auction.

## Auction Structure

### Simultaneous Multiple Round Auction

In the *Auction No. 54 Comment Public Notice*, we proposed to award all
the construction permits in Auction No. 54 in a simultaneous multiple
round auction.[^54] We received no comments on this issue. We therefore
conclude that it is operationally feasible and appropriate to auction
the construction permits through a simultaneous multiple round auction.
Unless otherwise announced, bids will be accepted on all construction
permits in successive rounds of bidding.

### Maximum Eligibility and Activity Rules

In the *Auction No. 54 Comment Public Notice*, we proposed that the
amount of the upfront payment submitted by a bidder would determine the
maximum initial eligibility (as measured in bidding units) for each
bidder.[^55] No comments were received concerning the eligibility rule.

For Auction No. 54, we will adopt our proposal. The amount of the
upfront payment submitted by a bidder determines the maximum initial
eligibility (in bidding units) for each bidder. Note again that each
construction permit is assigned a specific number of bidding units equal
to the upfront payments listed in Attachment A on a bidding unit per
dollar basis. The total upfront payment defines the maximum number of
bidding units on which the applicant will be permitted to bid and hold
high bids in a round. As there is no provision for increasing a bidder's
eligibility after the upfront payment deadline, prospective bidders are
cautioned to calculate their upfront payments carefully. **The total
upfront payment does not affect the total dollar amount a bidder may bid
on any given construction permit.**

In addition, we received no comments on our proposal for a single stage
auction. Therefore, in order to ensure that the auction closes within a
reasonable period of time, we adopt our proposal 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. That is a
bidder must either place a bid and/or be the standing high bidder during
each round of the auction.

Failure to maintain the requisite activity level will result in the use
of an activity rule waiver, if any remain, or a permanent reduction in
the bidder's bidding eligibility, possibly eliminating them from the
auction.

### Activity Rule Waivers and Reducing Eligibility

In the *Auction No. 54 Comment Public Notice*, we proposed that each
bidder in the auction would be provided three activity rule waivers.
Bidders may use an activity rule waiver in any round during the course
of the auction.[^56] We received no comments on this issue.

Based upon our experience in previous auctions, **we adopt our proposal
that each bidder be provided three activity rule waivers that may be
used in any round during the course of the auction.** Use of an activity
rule waiver preserves the bidder\'s current bidding eligibility despite
the bidder\'s activity in the current round being below the required
level. An activity rule waiver applies to an entire round of bidding and
not to a particular construction permit. We are satisfied that our
practice of providing three waivers over the course of the auction
provides a sufficient number of waivers and flexibility to the bidders
while safeguarding the integrity of the auction.

The FCC Automated Auction System assumes that bidders with insufficient
activity would prefer to use an activity rule waiver (if available)
rather than lose bidding eligibility. Therefore, the system will
automatically apply a waiver (known as an "automatic waiver") at the end
of any round where a bidder\'s activity level is below the minimum
required unless: (1) there are no activity rule waivers remaining; or
(2) bidders eligible to bid on more than one construction permit
override the automatic application of a waiver by reducing eligibility,
thereby meeting the minimum requirements. If a bidder that is eligible
to bid on only one construction permit has no activity rule waivers
available, the bidder's eligibility will be reduced, eliminating it from
the auction. **If a bidder that is eligible to bid on more than one
construction permit has no waivers remaining and does not satisfy the
required activity level, its current eligibility will be permanently
reduced, possibly eliminating the bidder from the auction.**

A bidder that is eligible to bid on more than one construction permit
and has insufficient activity may wish to reduce its bidding eligibility
rather than use an activity rule waiver. If so, the bidder must
affirmatively override the automatic waiver mechanism during the bidding
period by using the "reduce eligibility" function in the bidding system.
In this case, the bidder's eligibility is permanently reduced to bring
the bidder into compliance with the activity rules as described above.
Once eligibility has been reduced, a bidder will not be permitted to
regain its lost bidding eligibility.

Finally, a bidder may proactively use an activity rule waiver as a means
to keep the auction open without placing a bid. If a bidder submits a
proactive waiver (using the proactive waiver function in the bidding
system) during a bidding period in which no bids are submitted, the
auction will remain open and the bidder\'s eligibility will be
preserved. An automatic waiver invoked in a round in which there are no
new bids will not keep the auction open. **Note: Once a proactive waiver
is submitted during a round, that waiver cannot be unsubmitted.**

### Auction Stopping Rules

For Auction No. 54, the Bureaus proposed to employ a simultaneous
stopping rule.[^57] Under this rule, bidding will remain open on all
construction permits until bidding stops on every construction permit.
The auction will close for all construction permits when one round
passes during which no bidder submits a new acceptable bid on any
construction permit or applies a proactive waiver. After the first such
round, bidding closes simultaneously on all construction permits.

The Bureaus also sought comment on a modified version of the stopping
rule. The modified version of the stopping rule would close the auction
for all construction permits after the first round in which no bidder
submits a proactive waiver or a new bid on any construction permit on
which it is not the standing high bidder. Thus, absent any other bidding
activity, a bidder placing a new bid on a construction permit for which
it is the standing high bidder would not keep the auction open under
this modified stopping rule.

The Bureaus further proposed retaining the discretion to keep an auction
open even if no new bids or proactive waivers are submitted. In this
event, the effect will be the same as if a bidder had submitted a
proactive waiver. Thus, the activity rule will apply as usual, and a
bidder with insufficient activity will either use an activity rule
waiver (if it has any left) or lose bidding eligibility.

In addition, we proposed that the Bureaus reserve the right to declare
that the auction will end after a designated number of additional rounds
("special stopping rule"). If the Bureaus invoke this special stopping
rule, it will accept bids in the final round(s) only for construction
permits on which the high bid increased in at least one of the preceding
specified number of rounds. We proposed to exercise this option only in
circumstances such as where the auction is proceeding very slowly, where
there is minimal overall bidding activity, or where it appears likely
that the auction will not close within a reasonable period of time.[^58]
Before exercising this option, 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 adjusting the minimum acceptable bids
and bid increments for construction permits.

We adopt all of the above proposals concerning the auction stopping
rules. Auction No. 54 will begin under the simultaneous stopping rule,
and the Bureaus will retain the discretion to invoke the other versions
of the stopping rule. We believe that these stopping rules are most
appropriate for Auction No. 54, because our experience in prior auctions
demonstrates that the stopping rules balance the interests of
administrative efficiency and maximum bidder participation.

### Auction Delay, Suspension, or Cancellation 

In the *Auction No. 54 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 and competitive conduct of competitive
bidding.[^59]

Because this approach has proven effective in resolving exigent
circumstances in previous auctions, we adopt our proposed auction
cancellation rules. By public notice or by announcement during the
auction, the 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

The initial bidding schedule 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 the round results. Multiple bidding rounds may be conducted
in a given day. Details regarding round result formats and locations
will also be included in the qualified bidders public notice.

The FCC has discretion to change the bidding schedule in order to foster
an auction pace that reasonably balances speed with the bidders\' need
to study round results and adjust their bidding strategies. The 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 or Minimum Opening Bid

*Background*. The Balanced Budget Act calls upon the Commission to
prescribe methods by which a reasonable reserve price will be required
or a minimum opening bid established when FCC licenses 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.[^60] Consistent with
this mandate, the Commission has 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.[^61] 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.[^62] The Commission concluded that the Bureaus
should have the discretion to employ either or both of these mechanisms
for future auctions.[^63]

In the *Auction No. 54 Comment Public Notice*, the Bureaus proposed to
establish minimum opening bids for Auction No. 54 and to retain
discretion to lower the minimum opening bids.[^64] Specifically, for
Auction No. 54, the Bureaus proposed calculating the minimum opening bid
based on the potential value of the spectrum, including the type of
service, proposed population coverage, market size, industry cash flow
data and recent broadcast transactions. We received no comments on this
issue, therefore, we adopt our proposal. The specific minimum opening
bids for each construction permit are set forth in Attachment A of this
public notice.

The minimum opening bids we adopt for Auction No. 54 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 Bureau
will not entertain any requests to reduce the minimum opening bid on
specific construction permits.

[]{.mark}

### Minimum Acceptable Bids and Bid Increments

In the *Auction No. 54 Comment Public Notice*, we proposed to use a
fixed percentage to calculate minimum acceptable bids.[^65] We further
proposed to retain the discretion to change the minimum acceptable bids
and bid increments if circumstances so dictate.[^66] We received no
comment on this issue.

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.[^67] The FCC Automated Auction System will list the
nine bid amounts for each construction permit.

We adopt the proposal contained in the *Auction No. 54 Comment Public
Notice.* Once there is a standing high bid on a construction permit, the
FCC Automated Auction System will calculate a minimum acceptable bid for
that construction permit for the following round, as described below.
The difference between the minimum acceptable bid and the standing high
bid for each construction permit will define the **bid increment --**
*i.e.*, bid increment = (minimum acceptable bid) -- (standing high bid).
The nine acceptable bid amounts for each construction permit consist of
the minimum acceptable bid (the standing high bid plus one bid
increment) and additional amounts calculated using multiple bid
increments (*i.e.*, the second bid amount equals the standing high bid
plus two times the bid increment, the third bid amount equals the
standing high bid plus three times the bid increment, etc.).

For Auction No. 54, we will use a 10 percent bid increment. This means
that the minimum acceptable bid for a construction permit will be
approximately 10 percent greater than the previous standing high bid
received on the construction permit. The minimum acceptable bid amount
will be calculated by multiplying the standing high bid times one plus
the increment percentage --- *i.e.*, (standing high bid) \* (1.10). We
will round the result using our standard rounding procedure for minimum
acceptable bid calculations: 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.

As stated above, until a bid has been placed on a construction permit,
the minimum acceptable bid for that construction permit will be equal to
its minimum opening bid. The additional bid amounts are calculated using
the difference between the minimum opening bid times one plus the
percentage increment, rounded as described above, and the minimum
opening bid. That is, the increment used to calculate additional bid
amounts = (minimum opening bid)(1 + percentage increment){rounded} -
(minimum opening bid). Therefore, when the percentage increment equals
0.1 (*i.e.*, 10%), the first additional bid amount will be approximately
ten percent higher than the minimum opening bid; the second, twenty
percent higher; the third, thirty percent higher; etc.

The Bureaus retain the discretion to compute the minimum acceptable bids
through other methodologies if they determine circumstances so dictate.
Advanced notice of the Bureaus' decision to do so will be announced via
the FCC Automated Auction System.

### High Bids

At the end of a bidding round, the FCC Automated Auction System
determines the high bid for each construction permit based on the
highest gross bid amount received for each construction permit. A high
bid from a previous round is sometimes referred to as a "standing high
bid." A "standing high bid" will remain the high bid until there is a
higher bid on the same construction permit at the close of a subsequent
round. Bidders are reminded that standing high bids confer bidding
activity.[^68]

In the *Auction No. 54 Comment Public Notices*,[^69] the Bureaus
proposed to use a random number generator to select a high bid in the
event of identical high bids on a construction permit in a given round
(*i.e.*, tied bids). No commenter opposed the Bureaus' proposal.
Therefore, the Bureaus adopt their proposal. A Sybase® SQL pseudo-random
number generator based on the Lecuyer algorithm will be used to assign a
random number to each bid. The tied bid having the highest random number
will become the standing high bid. The remaining bidders, as well as the
high bidder, will be able to submit a higher bid in a subsequent round.
If no bidder submits a higher bid in a subsequent round, the high bid
from the previous round will win the construction permit. If any bids
are received on the construction permit in a subsequent round, the high
bid will once again be determined on the highest gross bid amount
received for the construction permit.

### Bidding

During a bidding round, a bidder may submit bids for any or all
construction permits selected on its FCC Form 175 (subject to its
eligibility based on previously filed FCC Forms 301 or Form 346), remove
bids placed in the same bidding round, or if eligible to bid on more
than one construction permit, permanently reduce eligibility. Bidders
also have the option of making multiple submissions in each 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 activity at the close of the round.

Please note that all bidding will take place remotely either through the
FCC Automated Auction System or by telephonic bidding. (Telephonic bid
assistants are required to use a script when entering bids placed by
telephone. Telephonic bidders are therefore reminded to allow sufficient
time to bid by placing their calls well in advance of the close of a
round. Normally, four to five minutes are necessary to complete a bid
submission.) There will be no on-site bidding during Auction No. 54.

A bidder's ability to bid on specific construction permits in the first
round of the auction is determined by two factors: (1) the construction
permits applied for on FCC Form 175 (applicants are eligible to bid on
only those construction permits selected on their previously filed FCC
Form 301 or Form 346); and (2) the upfront payment amount deposited. The
bid submission screens will allow bidders to submit bids on only those
construction permits for which the bidder applied on its FCC Form 175.

In order to access the bidding functions of the FCC Automated Auction
System, bidders must be logged in during the bidding round using the
bidder identification number provided in the registration materials, and
the tokencode generated by the SecurID card. Bidders are strongly
encouraged to print bid confirmations for each round [after]{.underline}
they have completed all of their activity for that round.

In each round, eligible bidders will be able to place bids on a given
construction permit in any of nine different amounts.[^70] For each
construction permit, the FCC Automated Auction System interface will
list the nine acceptable bid amounts in a drop-down box. Bidders may use
the drop-down box to select from among the nine bid amounts. The FCC
Automated Auction System also includes an import function that allows
bidders to upload text files containing bid information.

Until a bid has been placed on a construction permit, the minimum
acceptable bid for that construction permit will be equal to its minimum
opening bid. Once there is a standing high bid on a construction permit,
the FCC Automated Auction System will calculate a minimum acceptable bid
for that construction permit for the following round, as described in
Section IV.B.3.

### Bid Removal and Bid Withdrawal

In the *Auction No. 54 Comment Public Notice*, we proposed bid removal
and bid withdrawal procedures.[^71] With respect to bid withdrawals, we
proposed that bidders not be permitted to withdraw bids in any round. We
received no comments on this issue. Therefore, the Bureaus adopt their
proposal and will not permit bidders to withdrawal bids in any round
during the auction.

**Procedures.** Before the close of a bidding round, a bidder has the
option of removing any bids placed in that round. By using the "remove
bid" function in the bidding system, a bidder may effectively "unsubmit"
any bid placed within that round. Removing a bid will affect a bidder's
activity for the round in which it is removed, *i.e.*, a bid that is
subsequently removed does not count toward the bidder's activity
requirement. 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. 54.

### Round Results

Bids placed during a round will not be made public until the conclusion
of that bidding period. After a round closes, the Bureaus will compile
reports of all bids placed, current high bids, new minimum acceptable
bids, and bidder eligibility status (bidding eligibility and activity
rule waivers), and post the reports for public access. Reports
reflecting bidders\' identities for Auction No. 54 will be available
before and during the auction. Thus, bidders will know in advance of
this auction the identities of the bidders against which they are
bidding.

### Auction Announcements

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

### Maintaining the Accuracy of FCC Form 175 Information

As noted in Section II.H., after the short-form filing deadline,
applicants may make only minor changes to their FCC Form 175
applications. For example, permissible minor changes include deletion
and addition of authorized bidders (to a maximum of three) and certain
revision of exhibits. Applicants must make these modifications to their
FCC Form 175 electronically and submit a letter, briefly summarizing the
changes, by electronic mail to the attention of Margaret Wiener, Chief,
Auctions and Industry Analysis Division at the following address:
[auction54@fcc.gov](mailto:auction82@fcc.gov). The electronic mail
summarizing the changes must include a subject or caption referring to
Auction No. 54. The Bureaus requests that parties format any attachments
to electronic mail as Adobe^®^ Acrobat^®^ (pdf) or Microsoft^®^ Word
documents.

**A separate copy of the letter should be faxed to the attention of
Kathryn Garland at (717) 338-2850.** Questions about other changes
should be directed to Kenneth Burnley of the Auctions and Industry
Analysis Division at (202) 418-0660.

# V. POST-AUCTION PROCEDURES {#v.-post-auction-procedures .unnumbered}

## Down Payments 

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

Within ten business days after release of the auction closing public
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. 54 to 20 percent of its net winning bid
(actual bids less any applicable bidding credit).[^72]

## Long-Form Application 

The auction closing public notice will specify procedures for submitting
any necessary minor amendments to the winning bidder's previously filed
long form application. In accordance with Commission rules, the winning
bidder may not submit amendments that constitute a major change from
either the technical or legal proposal specified in the previously filed
long form application. Given the length of time that the long form
applications have been pending, the winning bidder should take into
account any relevant rule changes in amending their long form
applications on file.

## Default and Disqualification

Any high bidder that defaults or is disqualified after the close of the
auction (*i.e.*, fails to remit the required down payment within the
prescribed period of time, fails to submit a timely long-form
application, fails to make full payment, or is otherwise disqualified)
will be subject to the payments described in 47 C.F.R. § 1.2104(g)(2).
In such event the Commission will offer the construction permit to the
next highest bidder (in descending order) at their final bid.[^73] In
addition, if a default or disqualification involves gross misconduct,
misrepresentation, or bad faith by an applicant, the Commission may
declare the applicant and its principals ineligible to bid in future
auctions, and may take any other action that it deems necessary,
including institution of proceedings to revoke any existing licenses or
construction permits held by the applicant.[^74]

## Refund of Remaining Upfront Payment Balance

All applicants that submitted upfront payments but were not winning
bidders for a construction permit in Auction No. 54 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.

Qualified bidders that have exhausted all of their activity rule
waivers, have no remaining bidding eligibility must submit a written
refund request. If you have completed the refund instructions
electronically, then only a written request for the refund is necessary.
If not, the request must also include wire transfer instructions,
Taxpayer Identification Number ("TIN") and FCC Registration Number
(FRN). Send refund request to:

Federal Communications Commission

Financial Operations Center

Auctions Accounting Group

Gail Glasser or Tim Dates

445 12th Street, S.W., Room 1-C863

Washington, D.C. 20554

Bidders are encouraged to file their refund information electronically
using the refund information portion of the FCC Form 175, but bidders
can also fax their information to the Auctions Accounting Group at (202)
418-2843. Once the information has been approved, a refund will be sent
to the party identified in the refund information.

> NOTE: Refund processing generally takes up to two weeks to complete.
> Bidders with questions about refunds should contact Gail Glasser at
> (202) 418-0578 or Tim Dates at (202) 418-0496.

**Media Contact:**

Meribeth McCarrick at (202) 418-0654

**Auctions and Industry Analysis Division:**

Kenneth Burnley, Legal Branch at (202) 418-0660

Lyle Ishida, Operations Branch at (202) 418-0660

Linda Sanderson, Operations Branch at (717) 338-2888

**Audio Division:**

Lisa Scanlan at (202) 418-2700

**Video Division:**

Shaun Maher at (202) 418-1600

**- FCC -**

# VI ATTACHMENT A {#vi-attachment-a .unnumbered}

**Construction Permits to be Auctioned** (Place holder for Excel file
Attachment A)

# VII. ATTACHMENT B {#vii.-attachment-b .unnumbered}

FCC AUCTION SEMINAR REGISTRATION FORM

Auction No. 54

The FCC will sponsor a one-day seminar for Auction No. 54 applicants.
The seminar is free of charge and will provide information about
pre-auction procedures, service and auction rules, conduct of the
auction, and the FCC Automated Auction System.

Representatives from each company may attend on a reservation basis,
first-come first-served basis until room capacity is filled. The seminar
will be held:

Thursday, June 12, 2003

Federal Communications Commission

445 12^th^ Street S.W. (Room 5-B516)

Washington, DC 20554

Registration: 9:30 a.m. - 10:00 a.m.

Seminar: 10:00 a.m. - 2:00 p.m.

If hotel accommodations are needed

Please contact 1-888-225-5322 (option #2) for a list of hotels in the
area

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

To register, complete the form below and

return no later than

Tuesday, June 10, 2003, by fax to:

FCC Auction 54

Auctions Operations Branch

1270 Fairfield Road

Gettysburg, PA 17325-7245

FAX: 717-338-2850

Phone: 717-338-2888

I/We will attend the Auction No. 54 Seminar, scheduled for Thursday,
June 12, 2003.

Name of attendee:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name of attendee:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Company name:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Company
Address:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Phone: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Fax:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

# ATTACHMENT C

ELECTRONIC FILING AND REVIEW

OF THE FCC FORM 175

Applicants must submit their FCC Form 175 applications electronically.
The FCC recommends submitting your FCC Form 175 via the Internet. As a
contingency, you can submit via the FCC Wide-Area Network. FCC Form 175
applications must be submitted and confirmed by **6:00 p.m. ET on
Friday, June 20, 2003.** Late applications or unconfirmed submissions of
electronic data will not be accepted.

Applicants must click the **SUBMIT Application** button on the
*Submission* page to successfully submit their FCC Form 175. The
electronic filing process consists of an initial filing period and a
resubmission period to make minor corrections. During each filing
period, submitted applications may be updated and amended multiple times
until the filing deadline.

## Software Requirements

Applicants will need to meet the following minimum software
requirements:

-   Web Browser, either of the following:

```{=html}
<!-- -->
```
-   Microsoft® Internet Explorer 4.0 or higher (recommended). Your
    browser must have either Microsoft VM or Java Plug-In Version 1.3.0
    installed.

-   Netscape® Communicator™ 4.0 or higher, with Java Plug-In Version
    1.3.0.

> Java Plug-In Version 1.3.0 is available for downloading at
>
> [***https://wtbjag1w.fcc.gov/ieplugin/j2re-1_3_0_02-win.exe***](https://wtbjag1w.fcc.gov/ieplugin/j2re-1_3_0_02-win.exe)

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

-   If you wish to use the download feature on the Search Results page,
    you will need a .tar file extraction utility, e.g., Winzip
    (available at ***http://www.winzip.com***) or Pkzip for Windows
    (available at ***http://www.pkware.com/shareware***).

## Submitting FCC Form 175 Applications

You can submit FCC Form 175 applications electronically via the
Internet. Start your web browser and point it to either
***http://auctions.fcc.gov/*** (primary location) or
***http://auctions2.fcc.gov/*** (secondary location). On the FCC
Auctions page, click **Form 175 Application & Search** to obtain the
Form 175 Homepage.

**Note:** As a contingency, you may submit FCC Form 175 application
amendments via the FCC Wide Area Network, using Dial-Up Networking. To
access the Wide Area Network, configure your dial-up network to dial
either ***202-408-7835*** or ***717-338-0735***. These phone numbers are
located in the Washington, DC, and Gettysburg, PA, metropolitan areas,
respectively. Thus, they may be long-distance calls, depending on where
you reside.

### Logging On

The Form 175 Homepage has a Form 175 Logon area at the top right. This
area provides fields that let you identify yourself to the system. In
these fields, type your assigned FRN (*without* the hyphens) and the
password you created in CORES, respectively, then click the **Logon**
button.

Once you have logged on with your FRN, you can click the **New Form**
link to obtain the *Profile* page for the auction.

### Uploading Attachments

When uploading attachments from the Form 175 *Attachments* page, you may
use a variety of file formats\--including Word 2000 or earlier,
WordPerfect 6.*x* or earlier, Adobe PDF, and ASCII text\--and you should
verify that the files contain all exhibit information. Also note the
following about files to be uploaded:

-   Files may be no larger than 1.5 Mb.

```{=html}
<!-- -->
```
-   Graphics files (e.g., .*bmp, .tiff, .jpg*) and spreadsheets (e.g.,
    Excel, Lotus) are not supported.

-   Word processing files that are uploaded may not contain graphic
    images.

-   You may include hyphens (-) and underscore (\_) symbols in the name
    of a file to be uploaded, but do not use other punctuation marks or
    blank spaces. The FCC system will not be able to convert that file.

-   The path to a file (i.e., the file name and its directory) must not
    exceed 60 characters.

-   Do not upload a password-protected file. The FCC system will not be
    able to open it or convert it.

-   Do not include your TIN in any attachment to be uploaded. Contents
    of attachments become public once the Status PN is released.

The system converts each uploaded attachment to PDF format. (The
conversion process generally completes within 30 minutes.) Until the
system has converted your file to PDF format, the description field
shows *Not converted*.

Repeat this procedure for each additional attachment you want to add.
When you have finished adding attachments, click the **Continue to
CERTIFICATION** button to obtain the *Certification* page.

#### Unreadable Attachment Files

If you are unable to read an attachment file after it has been
converted, please do the following:

1\. Re-upload the attachment.

2\. If the file still has not been converted properly, then simplify the
formatting of the file.

For example, if you are using a Table structure in a WordPerfect
document, remove the Table structure and leave the contents of the
table, then re-upload the attachment.

After you have successfully re-uploaded an attachment, please delete the
old, unreadable attachment files using their **Delete** links.

### Completing the Submission Procedure

Applicants must press the **SUBMIT Application** button on the
*Submission* page to successfully submit their FCC Form 175. Pressing
**SUBMIT Application** produces a *Submission Confirmation* page showing
the assigned FCC Account Number. During each filing period, submitted
applications may be updated and amended multiple times until the filing
deadline.

## Reviewing FCC Form 175 Applications

Once the FCC has completed the 175 Review process, you can view FCC Form
175 applications electronically by searching for them in the FCC
database. Start your web browser and point it to either
***http://auctions.fcc.gov/*** (primary location) or
***http://auctions2.fcc.gov/*** (secondary location). Click the **Form
175 Application & Search** link, then click the **SEARCH** link at the
top of the page. When the *Form 175 Search* page appears, select the
search criteria you want and then click the **Submit** button.

## Help

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

You can also contact Technical Support via e-mail. To obtain the
address, click the **Support** tab on the Form 175 Homepage.

# IX. ATTACHMENT D {#ix.-attachment-d .unnumbered}

GUIDELINES FOR COMPLETION OF FCC FORM 175 AND EXHIBITS

**A. FCC Form 175**

Because of the significance of the FCC Form 175 application to the
auction, bidders should especially note the following:

**Auction Number:** The Closed Broadcast auction is Auction No. 54.

**Applicant:** Name given is used as your bidder name in the auction.

**Address:** Applicants must provide a street address (not a Post Office
box number) for the applicant, suitable for mail or private parcel
delivery.

**Legal Classification:** Applicants must indicate their legal
classification. The FCC Form 175 requires the applicant to classify
itself as an individual, joint venture, partnership, trust, corporation,
consortium, association, limited liability company (LLC) or government
entity.

**Applicant Status:** Applicants are requested to indicate their status
as a rural telephone company, minority- and/or women-owned business, so
that the FCC can monitor its performance in promoting economic
opportunities for these designated entities.

**Contact person/address:** If the Commission wishes to communicate with
the applicant by telephone or fax, those communications will be directed
to the contact person identified on the FCC Form 175. Space is provided
for an address, telephone number, fax number, and e-mail address. **All
written communication and registration information will be directed to
the applicant's contact person at the address specified on the FCC Form
175.** Applicants must provide a street address for the contact person;
**[no P.O. Box addresses may be used.]{.underline}**

**Authorized Bidders:** Applicants must list the name(s) of the
person(s) (no more than three) authorized to represent them at the
auction. Only those individuals listed on the FCC Form 175 will be
authorized to place bids for the applicant during the auction.

**Bidding Credit Eligibility:** Applicants that qualify for the New
Entrant Bidding Credit must select the applicable bidding credit (25
percent or 35 percent) in the bidding credit eligibility item on the
Form 175. Applicants are advised that this is the sole opportunity to
select "New Entrant" status and claim a bidding credit level (if
applicable). There is no opportunity to change the election once the
initial short-form filing deadline passes on June 20, 2003.

**Electronic or Telephonic Bidding Options:** Bidders may participate in
the auction either electronically or telephonically, and must specify
their preference. To participate in the auction, every authorized bidder
must have a SecurID card, which the FCC will provide free of charge.

**Licenses/Construction Permits:** Applicants should select those
construction permits that were selected on their previously filed FCC
Form 301 or Form 346 on which they want to be eligible to bid in the
auction. Be advised that there is no opportunity to change this list
once the short-form filing deadline passes on June 20, 2003. It is
critically important that you confirm the construction permits that you
have selected because the auction system will not accept a bid on
construction permits for which an applicant has not applied on its FCC
Form 175.

**B. Exhibits and Attachments**

In addition to the FCC Form 175 itself, applicants must submit
additional information required by the FCC\'s rules. If attachments are
not uploaded, the FCC Form 175 application submission process cannot be
completed. Although the FCC does not require a particular format for
this information, it has developed the following guidelines that will
facilitate the processing of short-form applications. The FCC encourages
applicants to submit this information using the following format.

> *If you find that an attachment has not converted properly to Adobe
> PDF format, take the following steps:*
>
> *1) Delete the failed attachment;*
>
> *2) Simplify the formatting of the file. For example, if using a Table
> structure in a WordPerfect document, remove the Table structure
> leaving the contents of the table, re‑save the document; and*

*3) Re‑upload the attachment.*

**Exhibit A \-- Applicant Identity and Ownership Information**: Section
73.5002 of the broadcast competitive bidding procedural rules specifies
the bidding procedures, certification requirements, and anti-collusion
rules applicable to applications for commercial broadcast services that
are subject to auction. Subsection (b) of that rule requires the timely
submission of short-form applications along with all required
certifications, information and exhibits pursuant to the provisions of
47 C.F.R. § 1.2105(a) and any Commission public notices. Section 1.2105,
in turn, requires the disclosure on the short-form of applicant
ownership information, as set forth in Section 1.2112. Specifically, 47
C.F.R. § 1.2105(a)(2)(ii) requires each applicant to fully disclose the
real party or parties-in-interest, and the addresses and citizenship of
the parties, in an exhibit to its FCC Form 175 application. In addition,
the Section 1.2112 ownership disclosure requirements include, *inter
alia*, a listing of FCC-licensed entities and a description of each such
entity's relationship to the applicant and the applicant's real
parties-in-interest.

Furthermore, each applicant applying for a New Entrant Bidding Credit
must provide detailed ownership information for itself and its
attributable interest holders, as defined by Section 73.3555 of the
Commission\'s rules and by Note 2 to that Section. Regardless of whether
a New Entrant Bidding Credit is being sought, all applicants must
provide the above-mentioned identification and ownership information.

**Exhibit B \-- Agreements with Other Parties/Joint Bidding
Arrangements**: Applicants must attach an exhibit identifying all
parties with whom they have entered into any agreements, arrangements or
understandings of any kind that relate to the construction permits being
auctioned, including any agreements relating to the post-auction market
structure. *See* 47 C.F.R. § 1.2105(a)(2)(viii).

Certification (4) to the FCC Form 175 requires the applicant to certify
that it will not enter into any explicit or implicit agreements or
understandings of any kind with parties not identified in the
application regarding bid amounts, bidding strategies, or the particular
licenses the applicant will or will not bid. *See* 45 C.F.R. §
1.2105(a)(2)(ix*). Except to the extent provided in 47 C.F.R. § 73.5002
(d),* the prohibition of collusion set forth in 47 C.F.R. § 1.2105 (c)
becomes effective upon the filing of short-form applications. To prevent
collusion, the Commission\'s Rules *generally* prohibit communication
among applicants for the same mutually exclusive construction permits or
licenses between the initial short-form application filing deadline and
the down payment deadline for construction permits/licenses won, when
such communication concern bids, bidding strategies, or settlements*.*
47 C.F.R. § 1.2105(c).

**Exhibit C \-- Status as a New Entrant Bidding Credit Recipient:** An
applicant claiming that it qualifies for a 35 percent new entrant
bidding credit must provide a certification, under penalty of perjury,
that neither it nor any of its attributable interest holders have any
attributable interests in any other media of mass communications, as
defined in 47 C.F.R. § 73.5008. An applicant claiming that it qualifies
for a 25 percent new entrant bidding credit must provide a
certification, under penalty of perjury, that neither it nor any of its
attributable interest holders have attributable interests in more than
three media of mass communications, as defined in 47 C.F.R. § 73.5008.
In addition, applicants claiming a 25 percent credit shall identify and
describe such media of mass communications. *See* 47 C.F.R. §§ 73.5007
and 73.5008.

Attributable interests held by a winning bidder in existing low power FM
translator facilities will not be counted among the bidder's other mass
media interests in determining eligibility for a bidding credit.[^75]
However, the new entrant bidding credit is not available to a winning
bidder if it, and/or any individual or entity with an attributable
interest in the winning bidder, have an attributable interest in any
existing media of mass communications, as defined by 47 C.F.R. §
73.5008, in the same area as the proposed secondary broadcast
facility.[^76] Full service noncommercial educational stations, on both
reserved and non-reserved channels, are included among "media of mass
communications" as defined in Section 73.5008(b).[^77]

**Exhibit D \--** **Defaulters and Former Defaulters Information:** Each
applicant must provide a certification on an Exhibit certifying that it
is not in default on any Commission construction permits or licenses and
that it is not delinquent on any non-tax debt owed to any Federal
agency. Each applicant must also provide a statement made under penalty
of perjury indicating whether or not the applicant has ever been in
default on any Commission construction permit or license, or has ever
been delinquent on any non-tax debt owed to any Federal agency.

**Exhibit E \-- Information Requested of Designated Entities:**
Applicants owned by minorities or women, as defined in 47 C.F.R. §
1.2110(b)(2), or that are rural telephone companies, as defined in 47
C.F.R. § 1.2110(b)(3), may attach an exhibit regarding this status. This
information will assist the Commission in monitoring the participation
of these \"designated entities\" in its auctions.

**Exhibit F -- Miscellaneous Information:** Applicants must specify the
file number of the pending FCC Form 301 or Form 346 on Exhibit F
(Miscellaneous Information). Applicants wishing to submit additional
information may do so in Exhibit F.

**NOTE: Applicants should not list their TIN numbers on any Exhibits to
their FCC Form 175s.**

**Certifications:** Applicants should carefully read the list of
certifications on the FCC Form 175. These certifications help to ensure
a fair and competitive auction and require, among other things,
disclosure to the Commission of certain information on applicant
ownership and agreements or arrangements concerning the auction.
Submission of an FCC Form 175 application constitutes a representation
by the certifying official that he or she is an authorized
representative of the applicant, has read the form\'s instructions and
certifications, and that the contents of the application and its
attachments are true and correct. Submission of a false certification to
the Commission may result in penalties, including monetary forfeitures,
license forfeitures, ineligibility to participate in future auctions,
and/or criminal prosecution.

**Completeness:** Applicants must submit all information required by the
FCC Form 175 and by applicable rules. Failure to submit required
information by the resubmission date will result in dismissal of the
application and inability to participate in the auction. *See* 47 C.F.R.
§ 1.2105(b).

**NOTE:** Applicants must press the "Submit Form 175" button on the
"Submit" page to successfully submit their FCC Form 175.

**Continuing Accuracy:** Each applicant is responsible for the
continuing accuracy and completeness of information furnished in the FCC
Form 175 and its exhibits. *See* 47 C.F.R. § 1.65. Applicants are
reminded that they consent to be audited in the certification section of
the FCC Form 175 (see certification item number 6).

Applicants are reminded that all information required in connection with
applications to participate in spectrum auctions is necessary to
determine the applicants\' qualifications, and as such will be available
for public inspection. Required proprietary information may be redacted,
or confidentiality may be requested, following the procedures set forth
in 47 C.F.R. § 0.459. Such requests must be submitted in writing to
Margaret Wiener, Chief, Auctions and Industry Analysis Division,
Wireless Telecommunications Bureau, Federal Communications Commission,
445 12^th^ Street, S.W., Room 4-A760, Washington, D.C. 20554 (with a
separate copy mailed to Kenneth Burnley, Legal Branch, Auctions and
Industry Analysis Division), in which case the applicant must indicate
in Exhibit F that it has filed a confidentiality request. Because the
required information bears on applicants\' qualifications, the FCC
envisions that confidentiality requests will not be routinely granted.

**Waivers**: Applicants requesting waiver of any rules must submit a
statement of reasons sufficient to justify the waiver sought. *See* 47
C.F.R. § 1.3.

# X. ATTACHMENT E {#x.-attachment-e .unnumbered}

**AUCTION-SPECIFIC INSTRUCTIONS FOR**

**FCC REMITTANCE ADVICE (FCC FORM 159-February 2000 Edition)**

## Upfront Payments

The following information supplements the standard instructions for FCC
Form 159 (Revised 2/00), and is provided to help ensure correct
completion of FCC Form 159 for upfront payments for Auction No. 54.
Applicants need to complete FCC Form 159 carefully, since:

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

```{=html}
<!-- -->
```
-   **Lack of consistency between information set forth in FCC Form 159
    (Revised 2/00), FCC Form 175, long-form application, and
    correspondence about an application may cause processing delays.**

Therefore appropriate cross-references between the FCC Form 159
Remittance Advice and the FCC

Form 175 Short Form Application are described below:

Block

Number Required Information

> 1 LOCKBOX \# - Enter "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 2/00).

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).

12. Payer TIN -- Enter the payer's nine-digit Taxpayer Identification
    Number (TIN).

> 24A Payment Type Code - Enter "A54U"
>
> 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 "54" (indicating Auction No. 54).

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
    22 for the applicant, using the same information shown on FCC
    Form 175. Otherwise leave them blank.

-   Since credit card payments will not be accepted for this auction,
    leave Section E blank.

## Winning Bidder Requirements, Down Payments and Final Payments

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

# ATTACHMENT F

SUMMARY LISTING OF DOCUMENTS FROM THE COMMISSION

AND THE WIRELESS TELECOMMUNICATIONS BUREAU

ADDRESSING APPLICATION OF THE ANTI‑COLLUSION RULES

## Commission Decisions:

*Second Report and Order* in PP Docket No. 93‑253, FCC 94‑61, 9 FCC Rcd.
2348, 2386‑2388 (1994), paragraphs 221‑226.

*Fifth Report and Order in* PP Docket No. 93‑253, FCC 94‑178, 9 FCC Rcd.
5532, 5570‑5571 (1994), paragraphs 91‑92.

*Fourth Memorandum Opinion and Order* in PP Docket No. 93‑253, FCC
94‑264, 9 FCC Rcd. 6858, 6866‑6869 (1994), paragraphs 47‑60.

*Second Memorandum Opinion and Order* in PP Docket No. 93‑253, FCC
94‑215, 9 FCC Rcd. 7245, 7253‑7255 (1994), paragraphs 48‑55.

*Memorandum Opinion and Order* in PP Docket No. 93‑253, FCC 94‑295, 9
FCC Rcd. 7684, 7687‑7689 (1994), paragraphs 8‑12.

In re Commercial Realty St. Pete, *Notice of Apparent Liability for
Forfeiture,* 10 FCC Rcd. 4277 (1995), In re Commercial Realty St. Pete,
*Memorandum Opinion and Order,* 11 FCC Rcd. 15,374 (1996).

In re Applications of Mercury PCS II, LLC, *Notice of Apparent Liability
for Forfeiture,* 12 FCC Rcd. 17,970 (1997) (petition for partial
reconsideration pending).

Amendment of Part 1of the Commission's rules ‑‑ Competitive Bidding
Procedures, Allocation of Spectrum Below 5 GHz Transferred from Federal
Government Use, 4660‑4685 MHz, WT Docket No. 97‑82, ET Docket No. 94‑32,
FCC 97‑413, *Third Report and Order and Second Further Notice of
Proposed Rule Making,* 13 FCC Rcd. 374, 463‑469 (1997), paragraphs
155-­166.

In re Application of US West Communications, Inc., *Notice of Apparent
Liability for Forfeiture,*13 FCC Rcd 8286 (1998); In the Matter of
Notice of Apparent Liability for Forfeiture of US West Communications,
Inc., *Order*, FCC 99-90 (May 7, 1999).

In re Application of Western PCS BTA I Corporation, *Notice of Apparent
Liability for Forfeiture, FCC* 98‑42 (March 16, 1998); In the Matter of
Notice of Apparent Liability for Forfeiture of Western PCS BTA 1
Corporation, *Memorandum Opinion and Orde*r, 14 FCC Rcd 21571, 21577-78,
¶ 20 (rel. Dec. 13, 1999).

In the Matter of Amendment of Part 1 of the Commission's
Rules---Competitive Bidding Procedures, *Seventh Report and Order*, 16
FCC Rcd 17546 (2001).

## Wireless Telecommunications Bureau Decisions:

Amendment of Parts 21 and 74 of the Commission's rules with Regard to
Filing Procedures in the Multipoint Distribution Service and in the
Instructional Television Fixed Service, *Order,* 11 FCC Rcd. 9655
(Wireless Tel. Bur. 1995).

In re Applications of GWI PCS, Inc. For Authority to Construct and
Operate Broadband PCS Systems Operating on Frequency Block C,
*Memorandum Opinion and Order,* 12 FCC Rcd. 6441 (Wireless Tel. Bur.
1997).

In re Applications of Mercury PCS II, LLC, For Facilities in the
Broadband Personal Communications Services in the D, E, and F Blocks,
*Memorandum Opinion and Order on Reconsideration,* 12 FCC Rcd. 18,093
(Wireless Tel. Bur. 1997).

In the Matter of Applications of High Plains Wireless, L.P., For
Authority to Construct and Operate Broadband PCS Systems on Frequency
Blocks D, E, and F, *Memorandum Opinion and Order,* 12 FCC Rcd. 19,627
(Wireless Tel. Bur. 1997).

In the Matter of Applications of Mercury PCS II, LLC, For Authority to
Construct and Operate Broadband PCS Systems on Frequency Blocks D, E,
and F, *Memorandum Opinion and Order,* 13 FCC Rcd. 5756 (Wireless Tel.
Bur. 1997).

### Public Notices:

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

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

Wireless Telecommunications Bureau Provides Guidance on the
Anti‑Collusion Rule for D, E and F Block Bidders, *Public* *Notice,* 11
FCC Rcd. 10,134 (1996).

Wireless Telecommunications Bureau Responds to Questions About the Local
Multipoint Distribution Service Auction, *Public Notice*, DA 98-37 (rel.
January 9, 1998).

### Letters from the Office of General Counsel and the Wireless Telecommunications Bureau:

*Letter to Gary M. Epstein and James H. Barker from William E. Kennard,
General Counsel, Federal Communications Commission* (released October
25, 1994).

*Letter to Alan F. Ciamporcero from William E Kennard, General Counsel,
Federal Communications Commission* (released October 25, 1996).

*Letter to R. Michael Senkowski from Rosalind K. Allen, Acting Chief,
Commercial Radio Division, Wireless Telecommunications Bureau* (released
December 1, 1994).

*Letter to Leonard J. Kennedy from Rosalind K. Allen, Acting Chief,
Commercial Radio Division, Wireless Telecommunications Bureau* (released
December 14, 1994).

*Letter to Jonathan D. Blake and Robert J. Rini from Kathleen O'Brien
Ham, Chief, Auctions Division, Wireless Telecommunications Bureau,* DA
95‑2404 (released November 28, 1995).

*Letter to Mark Grady from Kathleen O'Brien Ham, Chief, Auctions
Division, Wireless Telecommunications Bureau,* 11 FCC Rcd. 10,895
(1996).

*Letter to David L. Nace from Kathleen O'Brien Ham, Chief, Auctions
Division, Wireless Telecommunications Bureau,* 11 FCC Rcd. 11,363
(1996).

*Letter to Elliott J. Greenwald from Christopher J. Wright, General
Counsel, Federal Communications Commission* (released April 6, 1998).

*Letter to Robert Pettit, Wiley, Rein & Fielding from Margaret W.
Wiener, Chief, Auctions and Industry Analysis Division, Wireless
Telecommunications Bureau*, DA 00-2905 (released December 26, 2000).

### Civil Actions Initiated by U.S. Department of Justice:

*U.S. v. Omnipoint Corp.,* Proposed Final Judgements and Competitive
Impact Statements, Department of Justice, 63 FR 65,228 (November 25,
1998).

"Justice Department Sues Three Firms Over FCC Auction Practices," *Press
Release, U.S.* Department of Justice (November 10, 1998).

Complaint, *U.S.* *v. Omnipoint Corp.,* No. 1:98CV02750 (D.D.C. November
10, 1998).

Complaint, *U.S. v.* *Mercury PCS II, L.L C.,* No. 1:98CV02751 (D.D.C.
November 10, 1998).

Complaint, *U.S. v. 21st Century Bidding Corp., No.* 1:98CV02752 (D.D.C.
November 10, 1998).

**How to Obtain Copies of the Anti-Collusion Decisions:**

Many of the documents listed in this attachment can be retrieved from
the following Commission web site:
[http://wireless.fcc.gov/auctions/anticollusion]{.underline}

The documents may be located by using our search engine (select the link
"search"). Documents retrieved from the web site are available in
various formats including Word, WordPerfect, Acrobat Reader, Excel, and
ASCII Text. To review a document in its entirety, including footnotes,
it is necessary to access the document in WordPerfect, MS Word, or
Acrobat Reader.

Additionally, all of the documents can be ordered in hard copy for a fee
from the Commission's contractor, Qualex International at (202)
863-2893.

#  {#section-2 .unnumbered}

[^1]: ^?^ Section 3002(a), Balanced Budget Act of 1997, Pub. L. 105-33,
    111 Stat. 251 (1997) (\"Balanced Budget Act\"); 47 U.S.C.
    §309(j)(4)(F). The Commission\'s authority to establish a reserve
    price or minimum opening bid is set forth in 47 C.F.R. § 1.2104 (c)
    and (d).

[^2]: Closed Broadcast Auction Scheduled for July 23, 2003; Comment
    Sought on Reserve Prices or Minimum Opening Bids and Other Auction
    Procedures, *Public Notice*, DA 03-1128 (rel. April 11, 2003)
    (\"*Auction No. 54 Comment Public Notice*\").

[^3]: 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, GC Docket
    No. 92-52 and GEN Docket No. 90-264, *First Report and Order*, 13
    FCC Rcd 15920, 15923-25, ¶¶ 7-12 (1998) ("*Broadcast First* *Report
    and Order*").

[^4]: *Id*. at 15923-25, ¶¶ 7-12.

[^5]: *Broadcast 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. 93-252,
    *Second Report and Order*, 9 FCC Rcd 2348, 2376, ¶ 165 (1994).

[^6]: Any applicant that submits a short-form application that is
    accepted for filing but fails to timely submit an upfront payment
    will retain its place in the MX Group but, having purchased no
    bidding eligibility, will not be eligible to bid.

[^7]: *See* n.2, *supra*.

[^8]: *See* n.3, *supra*.

[^9]: *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, *Memorandum
    Opinion and Order*, 14 FCC Rcd 8724 (1999) ("*Broadcast
    Reconsideration Order*").

[^10]: *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, *Memorandum
    Opinion and Order*, 14 FCC Rcd 12541 (1999) ("*New Entrant Bidding
    Credit Reconsideration Order*").

[^11]: *See* Part 1, Subpart Q of Title 47 of the Code of Federal
    Regulations.

[^12]: *See*, e.g., Amendment of Part 1 of the Commission\'s Rules --
    Competitive Bidding Procedures, *Order on Reconsideration of the
    Third Report and Order, Fifth Report and Order, and Fourth Further
    Notice of Proposed Rule Making*, 15 FCC Rcd 15293 (2000) (*Part 1
    Recon. Order and Part 1 Fifth Report and Order, Fourth Further
    Notice of Proposed Rule Making*); Amendment of Part 1 of the
    Commission\'s Rules \-- Competitive Bidding Procedures, *Seventh
    Report and Order*, 16 FCC Rcd 17546 (2001); Amendment of Part 1 of
    the Commission's Rules \-- Competitive Bidding Procedures, *Eighth
    Report and Order*, 17 FCC Rcd 2962 (2002); Amendment of Part 1 of
    the Commission's Rules - Competitive Bidding Procedures, WT Docket
    No. 97-82, *Second Order on Reconsideration of the Third Report and
    Order, and Order on Reconsideration of the Fifth Report and Order*,
    FCC 03-98 (rel. May 8, 2003).

[^13]: *See* 47 C.F.R. §§ 1.2105(c), 73.5002.

[^14]: *See* In re Application of Nevada Wireless for a License to
    Provide 800 MHz Specialized Mobile Radio Service in the Farmington,
    NM-CO Economic Area (EA-155) Frequency Band A, *Memorandum Opinion
    and Order,* 13 FCC Rcd 11973, 11977, ¶ 11 (1998) ("*Nevada
    Wireless")*.

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

[^16]: *See* 47 C.F.R. § 1.2105(c).

[^17]: *See* "Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules," *Public Notice*, DA 95-2244, 11 FCC
    Rcd 9645 (1995) (rel. October 26, 1995).

[^18]: *See* 47 C.F.R. § 1.65.

[^19]: The Commission recently amended Section 1.2105 to require auction
    applicants to report prohibited communications in writing to the
    Commission immediately, but in no case later than five business days
    after the communication occurs. *See* *Seventh Report and Orde*r, 16
    FCC Rcd at 17555.

[^20]: Pub. L. No. 106-113, 113 Stat. 1501 (1999), codified at 47 U.S.C.
    § 336(f).

[^21]: *See* Establishment of a Class A Television Service, MM Docket
    No. 00-10, *Report and Order*, 15 FCC Rcd 6355 (2000) ("*Class A
    Report and Order*").

[^22]: *Id*. at ¶¶ 37-38.

[^23]: *See* 47 C.F.R. § 1.2105.

[^24]: *See* Part 1, Subpart I of Title 47 of the Code of Federal
    Regulations.

[^25]: *See* 47 C.F.R. §§ 1.1305-1.1319.

[^26]: 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 all required certifications, information and exhibits pursuant
    to the provisions of 47 C.F.R. § 1.2105 (a). Section 1.2105, in
    turn, requires the disclosure on the short form of applicant
    ownership information as set forth in Section 1.2112. Note that both
    of the aforementioned Part 1 rule sections were revised in the *Part
    1 Fifth Report and Order.*

[^27]: *See* 47 C.F.R. §§ 1.2105(a)(2)(viii), (c)(1).

[^28]: *See* 47 C.F.R*.* § 1.2105(a)(2)(ix).

[^29]: *See* Section 1.B.2, *supra*.

[^30]: *See* 47 C.F.R. § 1.2105(c)(4)(i), (ii).

[^31]: "Media of Mass Communication" includes both commercial and
    non-commercial broadcast stations.

[^32]: The fact that, on June 20, 2003, a bidder has a pending or
    granted application to assign or transfer control of a media
    interest shall not be sufficient to avoid attribution. Bidders must
    have consummated the transaction by June 20, 2003 to avoid
    attribution.

[^33]: *See* 47 C.F.R. § 73.3555 Note 2.

[^34]: *See* *Clarification of Commission Policies Regarding Spousal
    Attribution*, 7 FCC Rcd 1920 (1992).

[^35]: *See* 47 C.F.R. § 73.5008.

[^36]: 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.

[^37]: *Broadcast Reconsideration Order* at ¶ 75; 47 C.F.R § 73.5007.

[^38]: *See* *Minnesota Christian Broadcasters, Inc*., 18 FCC Rcd 614
    (2003).

[^39]: *See* 47 C.F.R. §§ 1.2105, 73.5007, 73.5008.

[^40]: *See* 47 C.F.R. § 73.5007(c).

[^41]: 47 C.F.R. § 1.2105(a)(2)(x).

[^42]: 47 C.F.R. § 1.2105(a)(2)(xi).

[^43]: 47 C.F.R. § 1.2105(a)(2)(xi).

[^44]: *See Part 1 Fifth Report and Order*, ¶ 42.

[^45]: 47 C.F.R. § 1.2106(a).

[^46]: *See* 47 C.F.R. § 1.2105.

[^47]: *See* 47 C.F.R. § 1.2105(a).

[^48]: *See* 47 C.F.R. §§ 1.2105, 73.5002(c); s*ee also* Two Way Radio
    of Carolina, Inc., *Memorandum, Opinion and Order*, 14 FCC Rcd 12035
    (1999).

[^49]: Amendment of Part 1 of the Commission\'s Rules \-- Competitive
    Bidding Proceeding, WT Docket No. 97-82, *Order, Memorandum Opinion
    and Order and Notice of Proposed Rule Making*, 12 FCC Rcd 5686,
    5697-5698, ¶ 16 (1997). *See also Broadcast First Report and Order,*
    13 FCC Rcd at 15967-68, ¶ 127-128.

[^50]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15316-17, ¶¶ 40-42
    (2000); 47 C.F.R. § 1.2106(a); *see also* 47 C.F.R. §
    1.2105(a)(2)(xi).

[^51]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15316-17, ¶¶
    40-42.

[^52]: *Auction No. 54 Comment Public Notice* at 2-3.

[^53]: Applicants that select construction permits on their FCC Form 175
    that were not selected on the FCC Form 301 or Form 346 will not be
    permitted to bid on those construction permits during the auction.

[^54]: *Auction No. 54 Comment Public Notice* at 2.

[^55]: *Id*. at 2-3.

[^56]: *Id*. at 3-4.

[^57]: *Id*. at 7-8.

[^58]: *Id*.

[^59]: *Id*. at 4.

[^60]: Balanced Budget Act, *see* note 1, *supra*.

[^61]: *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 at 141, 455-456 (1998) (\"*Part 1 Third Report and Order*\").
    *See also Broadcast First Report and Order*, 13 FCC Rcd at 15971, ¶
    134. The Commission has concluded that either or both of these
    mechanisms may be employed for auctions and has delegated the
    requisite authority to make determinations regarding the
    appropriateness of employing either or both.

[^62]: *Part 1 Third Report and Order*, 13 FCC Rcd at 455-456;
    *Broadcast* *First Report and Order*, 13 FCC Rcd at 15971, ¶ 134.

[^63]: *Part 1 Third Report and Order*, 13 FCC Rcd at 455-456.

[^64]: *Auction No. 54 Comment Public Notice* at 5.

[^65]: *Id* at 5-6.

[^66]: *Id*.

[^67]: Bidders must have sufficient eligibility to place a bid on the
    particular construction permit. *See* Section III.D.3. ("Upfront
    Payments and Initial Maximum Eligibility"), *supra*.

[^68]: *See* Section IV.A.2 "Activity Rules," *supra*.

[^69]: *Auction No. 54 Comment Public Notice* at 6.

[^70]: Bidders must have sufficient eligibility to place a bid on the
    particular license. *See* Section III.D.3 "Amount of Upfront
    Payment," *infra*.

[^71]: *Auction No. 54 Comment Public Notice* at 7.

[^72]: *See* 47 C.F.R. §§ 1.2107(b) and 73.5003.

[^73]: *See* 47 C.F.R. § 1.2109(b) and (c). *See also* *Broadcast First
    Report and Order*, 13 FCC Rcd at 15952.

[^74]: *See* 47 C.F.R. § 1.2109(d).

[^75]: *See* *id.* § 73.5007(a).

[^76]: *See* *id.* § 73.5007(b).

[^77]: *See* *Minnesota Christian Broadcasters, Inc*., FCC 03-5, rel.
    January 17, 2003.