**DA 03-2551**

**July 31, 2003**

**CLOSED BROADCAST STATIONS**

**AUCTION CLOSES**

**Winning Bidders Announced**

Down Payments Due August 14, 2003

Long-Form Application Amendments Due August 30, 2003

*Ten-Day Petition to Deny Period*

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

On July 29, 2003, the Federal Communications Commission completed the
auction of construction permits for one new full power television (TV)
and three FM broadcast stations ("Auction No. 54"), raising (in net high
bids) a total of \$4,657,600 for the U.S. Treasury. In this auction, two
winning bidders won a total of four construction permits.

This Public Notice provides detailed information concerning winning
bidders, down payments, deposits, amendment filing requirements for FCC
Forms 301 ("long-form applications"), and licensing matters. Key
information appears in the following attachments:

**Attachment A:** "Round Results, High Bids" lists winning bidders, the
gross winning bids, and the net amounts of the winning bid.

> **Attachment B:** "Bidder Payment/Refund Report" lists down payments
> owed by winning bidders, if any.

A copy of this Public Notice will be sent via overnight mail to each
winning bidder.

## Down Payments

The Commission's rules require that within ten business days after the
release of this Public Notice, in this case before **6:00 p.m. ET on
August 14, 2003**, winning bidders in Auction No. 54 must have on
deposit with Mellon Bank in Pittsburgh, Pennsylvania, enough funds to
cover down payments on winning bids. If a winning bidder's upfront
payment is not sufficient to meet this requirement, the winning bidder
must deposit additional funds.[^1]

The amount now due from each winning bidder, if any, is set out in the
last column of **Attachment B**. *Note that a payment and FCC Form 159
are necessary only if a winning bidder's upfront payment **does not**
cover the required total of down payments (as reflected in Attachment
B).* Each winning bidder's down payment must be twenty (20) percent of
its net winning bid(s).

## Long-Form Applications

Winning bidders must submit minor amendments to previously filed
long-form applications within 30 days, by August 30, 2003. Winning
bidders' long form applications, as amended, will be placed on public
notice, triggering the appropriate period for the filing of petitions to
deny.[^2]

## Final Payments

After the termination of the pleading cycle for petitions to deny,[^3]
the Commission will issue a public notice announcing that it is prepared
to award the construction permits to the winning bidders, if the
applications are uncontested.[^4] Within ten business days after the
date of that public notice, the uncontested winning bidders will be
required to make full payment of the balance of their winning bids.[^5]
Broadcast construction permits will be granted only after the full and
timely payment of winning bids and any applicable late fees, in
accordance with Section 1.2109(a).[^6] The previously filed long-form
applications of the unsuccessful competing bidders will be dismissed
following the grant of the winning bidder's construction permit.

## Method of Payment

All payments must be in U.S. dollars and made in the form of a wire
transfer. No personal checks, credit card payments, or other forms of
payment will be accepted. All payments must be accompanied by a
completed FCC Remittance Advice Form (FCC Form 159).[^7] If applicable,
a partially completed copy of the FCC Form 159 will be sent to winning
bidders to facilitate submission of the correct down payment. Questions
regarding FCC Form 159 should be addressed to Gail Glasser at
202-418-0578**. Please note, however, that winning bidders are
responsible for insuring submission of the correct down payment and
obtaining confirmation from their financial institution that Mellon Bank
has timely received their down payment and deposited it in the proper
account.**

**Wire transfers for down payments must be received by Mellon Bank by
6:00 p.m. ET, on August 14, 2003**. Winning bidders should coordinate
with their bankers ahead of time regarding their wire transfers, and
allow sufficient time for the wire transfer to **be initiated and**
**completed prior to the deadline.** To submit funds by wire transfer,
winning bidders will need the following information:

> ABA Routing Number: 043000261
>
> Receiving Bank: Mellon Pittsburgh
>
> BNF: FCC Account Number 911-6106
>
> 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: A54D)
>
> FCC CODE 1: (same as FCC Form 159, block 28A: "54")
>
> PAYOR NAME: (same as FCC Form 159, block 2)
>
> LOCKBOX NO.: 358850

Winning bidders must fax a completed FCC Form 159 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).

Proper completion of the FCC Form 159 is critical to ensuring correct
credit of bidder deposits. **Winning bidders must use the same Taxpayer
Identification Number (TIN) / FCC Registration Number (FRN) used on
their FCC Form 175.**[^8] Questions concerning the calculation and
submission of down payments should be directed to Gail Glasser at
202-418-0578.

> **E. Default and Disqualification Payments**

The Commission imposes payments on bidders that default on payments due
after an auction closes or those that are disqualified.[^9]

*Bid Default/Disqualification Payments.* If a high bidder defaults or is
disqualified after the close of the auction, the defaulting bidder will
be subject to the following payment obligations: 1) the difference
between the high bid and the amount of the winning bid the next time the
construction permit is offered by the Commission, and 2) an additional
payment equal to three (3) percent of the subsequent winning bid or
three (3) percent of the defaulted bid, whichever is less. Where a
bidding credit applies to the winning bid in either the original or the
subsequent auction, the calculation of the three percent payment is
based on the smaller of the two gross bids or smaller of the two net
bids, whichever basis (gross or net) was used to figure the first
component.[^10] Thus, if the difference between the gross bids is less
than the difference between the net bids, the three percent payment will
be computed on the lower of the gross bids. If the difference between
the net bids is less than or equal to the difference between the gross
bids, the three percent payment will be computed on the lower of the net
bids.[^11] However, if both the difference between the gross bids and
the difference between the net bids are less than or equal to zero, the
three percent payment will be computed on the lower of the net bids.

If a winning bidder fails to remit the required down payment within ten
(10) business days after the Commission has released this Public Notice,
in this case by August 14, 2003, the bidder will be deemed to have
defaulted, its application will be dismissed, and it will be liable for
a default payment as described above. In such event, the Commission, at
its discretion, may either auction the construction permit(s) to
existing or new applicants, or offer it to the other highest bidders (in
descending order) at their final bids.[^12]

If a winning bidder fails to pay the balance of its winning bids in a
lump sum by the applicable deadline as specified by the Commission, it
will be allowed to make payment within ten (10) business days after the
payment deadline provided that it also pays a late fee equal to five (5)
percent of the amount due.[^13] When a winning bidder fails to pay the
balance of its winning bid plus late fee by the late payment deadline,
it is considered to be in default on its construction permit(s) and
subject to the applicable default payments.[^14]

Construction permits will be awarded upon the full and timely payment of
winning bids and any applicable late fees.[^15] A winning bidder that is
found unqualified to be a licensee, fails to remit the balance of its
winning bid in a timely manner, or defaults or is disqualified for any
reason after having made the required down payment, will be deemed to
have defaulted and will be liable for the payment set forth in Section
1.2104(g)(2).[^16] In such event, the Commission may either auction the
construction permit to existing or new applicants or offer it to the
other highest bidders (in descending order) at their final bids.[^17]

Additionally, bidders that are found to have violated the antitrust laws
or the Commission's rules in connection with their participation in the
competitive bidding process may be subject, in addition to any other
applicable sanctions, to forfeiture of their upfront payment, down
payment, or full bid amount, and may be prohibited from participating in
future auctions.[^18]

## F. Refund of Excess Upfront Payments  {#f.-refund-of-excess-upfront-payments .unnumbered}

Upfront monies on deposit that are in excess of the required down
payment, and/or default payment amounts will be refunded to the payer of
record as identified on FCC Form 159 promptly upon receipt of the
necessary wire transfer instructions. Such instructions must be faxed to
Gail Glasser at 202-418-2843. Any questions concerning refunds should be
referred to Gail Glasser at 202-418-0578.

## G. Amendment to Long-Form Application  {#g.-amendment-to-long-form-application .unnumbered}

***Deadline For Filing:*** By **6:00 p.m. ET on August 30**, **2003**
winning bidders must submit all necessary amendments to their previously
filed long-form application(s) covering the construction permit for
which they were the winning high bidder.[^19]

***Where and How to File:*** The completed amendment to the previously
filed FCC Form 301 may be electronically or paper-filed. In accordance
with the Commission rules, amendment data submitted by winning bidders
must not constitute a major change from either the technical or other
data specified in the previously filed FCC Form 301.[^20]

Electronically filed amendments must be submitted via the Commission's
Consolidated Database System (CDBS).[^21] Users can access the CDBS
electronic filing system *via* the Internet from the Media Bureau's Web
Site at:

**http://www.fcc.gov/mb/elecfile.html.**

Electronic filing instructions are available in the CDBS User's Guide.
The Guide can be accessed from the electronic filing web site, above, by
clicking on the CDBS link. This action will take the user to the Media
Bureau's CDBS Electronic Filing System site. The user should then click
on the "Go to CDBS User's Guide" link. Internet access to the CDBS
online electronic forms filing system requires, at a minimum, a browser
such as Netscape version 3.04 or Internet Explorer version 3.51, or
later. After selecting Form 301, applicants should indicate that they
are submitting a minor amendment to a pending application. Applicants
should also provide the file number of the previously filed Form 301.
For technical assistance with electronic filing, call the Media Bureau
Help Desk at (202) 418-2MMB.

Paper-filed amendments may be submitted in triplicate to the Office of
the Secretary. Such amendments must indicate the applicant name,
application file number, and the facility identification number.
Additionally, filings can be sent by hand or messenger delivery, by
commercial overnight courier, or by first-class or overnight U.S. Postal
Service mail. Applicants are cautioned, however, that the Commission
continues to experience delays in receiving U.S. Postal Service mail.
All filings must be addressed to The Secretary, Office of the Secretary,
Federal Communications Commission. U.S. Postal Service first-class mail,
Express Mail, and Priority Mail should be addressed to 445 12th Street,
SW, Washington, DC 20554. Commercial overnight mail (other than U.S.
Postal Service, Express Mail and Priority Mail) must be sent to 9300
East Hampton Drive, Capitol Heights, MD 20743. Winning bidders filing
amendments to the FM Form 301 applications may also send a courtesy copy
of the amendment to Liz Robinson, Audio Division, Room 2-B450, 445
12^th^ Street SW, Washington, DC 20554. Winning bidders filing
amendments to the TV Form 301 application may also send a courtesy copy
of the amendment to Shaun Maher, Video Division, Room 2-A820, 445 12^th^
Street SW, Washington, DC 20554.

The Commission\'s contractor, Vistronix, Inc., will receive
hand-delivered and messenger-delivered paper filings for the Office of
the Secretary at 236 Massachusetts Avenue, N.E., Suite 110, Washington,
DC 20002. The filing hours at this location are 8:00 a.m. to 7:00 p.m.

**Additional Post-Auction Filing Requirements**. Section 73.5005(a) of
the Commission's rules requires that post-auction filings include the
exhibits mandated by 47 C.F.R. § 1.2107(d) (concerning any bidding
consortia, or joint bidding arrangements, if applicable); 47 C.F.R. §
1.2110(j) (concerning designated entity status, if applicable); and 47
C.F.R. § 1.2112(a) and (b) (concerning ownership and real party in
interest information).[^22] Where applicable, such exhibits must be
filed with the amendment to the previously filed Form 301 application
and must be filed no later than August 30, 2003.

**Late-filed amendments will not be accepted.**[^23]

## H. Maintaining Accuracy of Information {#h.-maintaining-accuracy-of-information .unnumbered}

After the auction closes, applicants are required to make all changes by
filing amendments to FCC Form 301. Applicants are no longer required to
maintain accuracy and completeness of information furnished on their FCC
Form 175 and exhibits.

## I. Application Processing and License Grant {#i.-application-processing-and-license-grant .unnumbered}

Pursuant to 47 C.F.R. §§ 1.2108(b) and 73.5006, and the Balanced Budget
Act of 1997,[^24] interested parties will have **ten (10) days** to file
petitions to deny after the Commission releases a public notice
announcing the FCC Form 301 is acceptable for filing. The Media Bureau
will use public notices generated by CDBS to start the ten-day period
for filing petitions to deny these applications. The public notice
entitled "Broadcast Applications" will list such applications as
"Accepted for Filing." An applicant may file an opposition to any
petition to deny within **five (5) business days** after the time for
filing petitions to deny has expired.[^25] The petitioner may file a
reply to such opposition within **five (5) business days** after the
time for filing oppositions has expired.[^26] If the Commission
determines an applicant is qualified and there is no substantial and
material issue of fact concerning that determination, the Commission
will issue a public notice announcing that it is prepared to grant the
application conditioned upon the full and timely payment of the
remaining balance of the applicant's winning bid. Once the Commission
has received full payment of the applicant's winning bid, it will issue
a public notice announcing grant of the construction permit to the
applicant.

*Frivolous Pleadings.* The Commission reminds parties to our proceedings
and their attorneys that the Commission intends to use its authority
fully to deter the filing of frivolous pleadings.[^27]

## J. Anti-collusion Rules {#j.-anti-collusion-rules .unnumbered}

To ensure the competitiveness of the auction process, the Commission's
rules prohibit competing applicants from communicating with each other
during the auction about bids, bidding strategies, or settlements. As
explained more fully in the *Auction No. 54 Procedures Public
Notice*,[^28] this prohibition began with the filing of short-form
applications and ends on the down payment due date, or August 14,
2003.[^29] The prohibition ends on the down payment due date regardless
of whether a high bidder must supplement its upfront payment to cover
its down payment. Applicants certified their compliance with Section
1.2105(c) when their FCC Form 175 short-form applications were signed.

## K. Return of SecurID Cards {#k.-return-of-securid-cards .unnumbered}

Bidders are encouraged to return their SecurID cards to the FCC by
**August 14, 2003** for recycling. The Commission will send bidders a
copy of this Public Notice and a pre-addressed, stamped envelope. All
bidders should use the envelope to return the cards now that the auction
is over. Please note that each SecurID card is tailored to a specific
auction, therefore, the cards issued for this auction will not work for
future auctions.

\* \* \* \* \*

**For further information, contact:**

+-------------------------------+--------------------------------------+
| News Media:                   | Meribeth McCarrick at 202-418-0654   |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Technical Support Hotline:    | Technical Support Personnel at       |
|                               |                                      |
|                               | 202-414-1250 (V)                     |
|                               |                                      |
|                               | or 202-414-1255 (text telephone      |
|                               | (TTY))                               |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Office of the Managing        | Gail Glasser at 202-418-0578         |
| Director                      |                                      |
|                               |                                      |
| Auctions Accounting Group     |                                      |
|                               |                                      |
| (Payment, FCC Form 159 and    |                                      |
| refund questions)             |                                      |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Media Bureau, (FCC Form 301)  | Lisa Scanlan at 202-418-2700         |
|                               |                                      |
| Audio Division                |                                      |
+-------------------------------+--------------------------------------+
| Video Division                | Shaun Maher at 202-418-1600          |
+-------------------------------+--------------------------------------+
| Wireless Telecommunications   | Linda Sanderson, Project Manager at  |
| Bureau, Auctions and Industry | 717-338-2888                         |
| Analysis Division             |                                      |
| (Auction-related questions)   | Kenneth Burnley, Attorney at         |
|                               | 202-418-0660                         |
+-------------------------------+--------------------------------------+

**- FCC -**

[^1]: *See* 47 C.F.R. §§ 1.2107(b) and 73.5003(b).

[^2]: *See* further discussion at 5-6, *infra*.

[^3]: *See* 47 C.F.R. § 73.5006.

[^4]: In cases where petitions to deny are filed, final payment public
    notices shall be promptly issued for the associated construction
    permits after the Media Bureau disposes of petitions to deny and is
    otherwise satisfied that an applicant is qualified to hold the
    construction permit. *See* 47 C.F.R. § 73.5006(d).

[^5]: 47 C.F.R. § 1.2109.

[^6]: 47 C.F.R. §1.2109(a).

[^7]: Copies of the FCC Form 159 may be obtained by calling the
    Commission's Forms Distribution Center at 1-800-418-3676 (outside
    Washington, D.C.) or 202-418-3676 (in the Washington D.C. area).
    Copies of the FCC Form 159 can also be obtained via the Internet
    (http://www.fcc.gov/formpage.html) or by calling the Commission's
    Fax-On-Demand at 202-418-2830.

[^8]: If, subsequent to final submission of its FCC Form 175, a bidder
    has provided the Commission with a written correction of its
    Taxpayer Identification Number, the bidder should use the corrected
    number.

[^9]: 47 C.F.R. §§ 1.2104(g), 1.2109(c).

[^10]: *See* 47 C.F.R. § 1.2104(g)(1).

[^11]: 47 C.F.R. § 1.2104(g).

[^12]: 47 C.F.R. § 1.2109(b).

[^13]: 47 C.F.R. §§ 1.2109(a), 73.5003.

[^14]: 47 C.F.R. § 1.2109(a).

[^15]: 47 C.F.R. §§ 1.2109(a), 73.5003.

[^16]: 47 C.F.R. §§ 1.2104(g)(2), 1.2109(c).

[^17]: 47 C.F.R. § 1.2109(c).

[^18]: 47 C.F.R. § 1.2109(d).

[^19]: 47 C.F.R. § 73.5005(a).

[^20]: *See* 47 C.F.R. §§ 73.3573(a)(1), 73.3573(f)(5)(iii),
    73.3522(a)(3).

[^21]: *See* "Mass Media Bureau Implements Mandatory Electronic Filing
    of FCC Forms 301, 314, and 315," *Public Notice*, 16 FCC Rcd 3989
    (MMB 2001).

[^22]: *See also* 47 C.F.R. § 73.3573(f)(5)(i).

[^23]: 47 C.F.R. § 1.2107(c).

[^24]: Pub. L. 105-33, 111 Stat. 251 (1997).

[^25]: 47 C.F.R. §1.2108(c).

[^26]: *Id.*

[^27]: *See* Commission Taking Tough Measures Against Frivolous
    Pleadings, *Public Notice*, 11 FCC Rcd 3030 (1996).

[^28]: *See* 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, *Public Notice*, DA 03-1547 (rel. May 12,
    2003), 68 Fed. Reg. 35216 (June 12, 2003) ("*Auction No. 54
    Procedures Public Notice*").

[^29]: *Auction No. 54 Procedures Public Notice* at 6.