DA 07-514

February 26, 2007

**AUCTION OF PHASE II 220 MHz SERVICE SPECTRUM**

**SCHEDULED FOR JUNE 20, 2007**

**Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments
and Other Procedures for Auction No. 72**

**AU Docket No. 06-214**

Report No. AUC-07-72-B (Auction No. 72)

Table of Contents

Heading Paragraph \#

I. General Information 1

A. Introduction 1

1\. Background of Proceeding 7

2\. Licenses to be Auctioned 8

B. Rules and Disclaimers 11

1\. Relevant Authority 11

2\. Prohibition of Collusion; Compliance with Antitrust Laws 13

3\. Protection of Incumbent Operations 22

a\. International Coordination 23

b\. Quiet Zones 24

4\. Due Diligence 25

5\. Use of Integrated Spectrum Auction System 34

6\. Bidder Alerts 35

7\. Environmental Review Requirements 37

C. Auction Specifics 38

1\. Auction Date 38

2\. Auction Title 41

3\. Bidding Methodology 42

4\. Pre-Auction Dates and Deadlines 43

5\. Requirements for Participation 44

6\. General Contact Information 45

II\. short-form Application (FCC FORM 175) REQUIREMENTS 46

A. Preferences for Small Businesses and Others 50

1\. Size Standards for Bidding Credits 50

2\. Tribal Lands Bidding Credit 54

3\. Installment Payments 55

B. License Selection 56

C. Disclosure of Bidding Arrangements 57

D. Ownership Disclosure Requirements 59

E. Bidding Credit Revenue Disclosures 61

F. Provisions Regarding Former and Current Defaulters 66

G. Other Information 72

H. Minor Modifications to Short-Form Applications (FCC Form 175) 73

I. Maintaining Current Information in Short-Form Applications (FCC Form
175) 77

III\. PRE-AUCTION PROCEDURES 80

A. Auction Seminar --- April 11, 2007 80

B. Short-Form Application (FCC Form 175) --- Due Prior to 6:00 p.m. ET
on April 20, 2007 83

C. Application Processing and Minor Corrections 86

D. Upfront Payments --- Due May 21, 2007 88

1\. Making Auction Payments by Wire Transfer 89

2\. FCC Form 159 92

3\. Upfront Payments and Bidding Eligibility 93

4\. Applicant's Wire Transfer Information for Purposes of Refunds of
Upfront Payments 100

E. Auction Registration 101

F. Remote Electronic Bidding 105

G. Mock Auction --- June 18, 2007 107

IV\. AUCTION EVENT 108

A. Auction Structure 109

1\. Simultaneous Multiple Round Auction 109

2\. Information Available to Bidders Before and During the Auction 112

3\. Eligibility and Activity Rules 118

4\. Auction Stages 122

5\. Stage Transitions 127

6\. Activity Rule Waivers 129

7\. Auction Stopping Rules 134

8\. Auction Delay, Suspension, or Cancellation 140

B. Bidding Procedures 142

1\. Round Structure 142

2\. Reserve Price and Minimum Opening Bids 144

3\. Bid Amounts 151

4\. Provisionally Winning Bids 156

5\. Bid Removal and Bid Withdrawal 165

6\. Round Results 173

7\. Auction Announcements 175

V. POST-AUCTION PROCEDURES 176

A. Down Payments 176

B. Final Payments 178

C. Long-Form Application (FCC Form 601) 179

D. Ownership Disclosure Information Report (FCC Form 602) 181

E. Tribal Lands Bidding Credit 182

F. Default and Disqualification 185

G. Refund of Remaining Upfront Payment Balance 188

VI\. Contacts 192

Attachment A: licenses to Be Auctioned

attachment B: FCC Auction Seminar Registration Form

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

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

ATTACHMENT E: Formulas to Determine Minimum Acceptable Bids

ATTACHMENT F: Summary Listing of Documents Addressing Application of the
Anti-Collusion Rule

# General Information

## Introduction

1.  By this Public Notice, the Commission announces the procedures and
    minimum opening bid amounts for the upcoming auction of Phase II 220
    MHz Service licenses in the paired 220-222 MHz band scheduled to
    begin on June 20, 2007 (Auction No. 72).[^1] On December 12, 2006,
    in accordance with Section 309(j)(3) of the Communications Act of
    1934, as amended,[^2] the Wireless Telecommunications Bureau
    ("Bureau") released a public notice seeking comment on reserve
    prices or minimum opening bid amounts and the procedures to be used
    in Auction No. 72.[^3] The Bureau received one comment and no reply
    comments in response to the *Auction No. 72 Comment Public Notice*.
    [^4]

2.  In the *Auction No. 72 Comment Public Notice*, the Bureau proposed
    to include all 94 Phase II 220 MHz Service licenses in a single
    auction using the Commission's standard simultaneous multiple-round
    ("SMR") auction format.[^5] At the same time, the Bureau sought
    comment on the feasibility and desirability of allocating the Phase
    II 220 MHz Service licenses using the Commission's package bidding
    format ("SMR-PB").[^6] Based on the record and the particular
    circumstances of the auction of Phase II 220 MHz Service licenses,
    the Bureau, as described in more detail below, will include all 94
    Phase II 220 MHz Service licenses in a single auction using the
    Commission's standard SMR format, as proposed.[^7] Package bidding
    will not be used in Auction No. 72.[^8]

3.  The Bureau also sought comment in the *Auction No. 72 Comment Public
    Notice* on whether to implement procedures that would limit the
    disclosure of certain information on bidder interests, and
    identities prior to the close of bidding.[^9] In particular, the
    Bureau asked commenters to indicate what factors weigh for or
    against limiting disclosure of bidder interests and identities, and
    whether the Commission should condition the use of any disclosure
    limits on a measure of competition in the auction.

4.  For Auction No. 72, the Bureau will determine the information
    procedures based primarily on the eligibility ratio, a measure of
    likely competition in the auction. The eligibility ratio is defined
    as the total number of bidding units of eligibility purchased by
    bidders through their upfront payments, divided by the total number
    of bidding units for the licenses in the auction. Specifically, if
    the eligibility ratio equals or exceeds three, the Bureau will not
    use the limited information procedures, since with sufficient likely
    competition, the anti-competitive behavior that limited information
    procedures aim to deter is unlikely to be successful.[^10] If the
    eligibility ratio is less than three, in general the Bureau will
    withhold certain information on bidder interests and bidder
    identities. However, if the eligibility ratio is less than three,
    the Commission reserves the discretion not to limit information on
    bidder interests and identities if circumstances indicate that
    limited information procedures would not be an effective tool for
    deterring anti-competitive behavior. Such circumstances would occur,
    for example, if only two applicants became qualified to participate
    in the bidding, since limited information procedures would be
    ineffective in preventing bidders from knowing the identity of the
    competing bidder.[^11]

5.  In the event that the conditions described above result in the use
    of procedures under which certain information is withheld, the
    Bureau will release: (1) each bidder's eligibility and upfront
    payment made prior to the start of the auction; and (2) the amounts
    of all gross bids (including the losing bids) for each license after
    each round, but not the identities of the bidders placing the bids. 
    The Bureau believes this provides bidders with information regarding
    license valuations without compromising the goal of reducing the
    potential for anti-competitive outcomes.

6.  Pursuant to these procedures, information on the license selections
    of auction applicants will be withheld at least until the upfront
    payment deadline has passed and the Commission determines the
    information procedures that will be used for the auction. Therefore,
    to enable applicants to comply with the Commission's anti-collusion
    rules, once the Bureau has conducted its initial review of
    applications to participate in Auction No. 72, each applicant will
    receive a letter that lists the other applicants in Auction No. 72
    that have applied for licenses in any of the same geographic areas
    as the applicant.[^12]

### Background of Proceeding 

7.  Licenses in the Phase II 220 MHz spectrum to be auctioned in Auction
    No. 72 have been offered previously in other auctions[^13] but were
    returned to the Commission as a result of license cancellation or
    termination. In March 1997, the Commission restructured the
    licensing framework that governs the 220 MHz Service. Site-specific
    licensing, used in the Phase I 220 MHz Service, was replaced with a
    geographic-based system in the Phase II 220 MHz Service.[^14] This
    geographic-based licensing methodology is similar to that used in
    other commercial mobile radio services (\"CMRS\"). The Commission
    developed three types of geographic area licenses for the Phase II
    220 MHz Service. The first type of license was based upon Economic
    Areas (EAs), developed by the Bureau of Economic Analysis of the
    U.S. Department of Commerce. In addition, the Commission created
    three EA-type license areas to cover the following United States
    territories: American Samoa; the U.S. Virgin Islands and Puerto
    Rico; and Guam and the Northern Mariana Islands. The second type of
    license, known as Economic Area Groupings (EAGs), included 6 groups
    of EAs, which collectively encompassed all of the EA and EA-type
    licenses. Finally, the Commission designed three nationwide
    licenses, each of which encompassed all six EAGs. Service and
    operational requirements for the Phase II 220 MHz Service are
    contained primarily in Part 90 of the Commission\'s Rules, 47 C.F.R.
    Part 90.

### Licenses to be Auctioned 

8.  Auction No. 72 will offer 94 licenses: 93 Economic Area (EA)
    licenses and one Economic Area Grouping ("EAG") license.

9.  The following table describes the Phase II 220 MHz Service licenses
    that will be offered in Auction No. 72:

[]{.mark}

[]{.mark}

+-------+-----------------+----------------+---------------+----------+
| Block | Bandwidth       | Pairing\*      | Geographic    | No. of   |
|       |                 |                | Area Type     |          |
|       |                 |                |               | Licenses |
+-------+-----------------+----------------+---------------+----------+
| A     | 100 kHz         | 2 x 50 kHz     | EA            | 13       |
+-------+-----------------+----------------+---------------+----------+
| B     | 100 kHz         | 2 x 50 kHz     | EA            | 18       |
+-------+-----------------+----------------+---------------+----------+
| C     | 100 kHz         | 2 x 50 kHz     | EA            | 23       |
+-------+-----------------+----------------+---------------+----------+
| D     | 100 kHz         | 2 x 50 kHz     | EA            | 17       |
+-------+-----------------+----------------+---------------+----------+
| E     | 100 kHz         | 2 x 50 kHz     | EA            | 22       |
+-------+-----------------+----------------+---------------+----------+
| I     | 150 kHz         | 2 x 75 kHz     | EAG           | 1        |
+-------+-----------------+----------------+---------------+----------+

> \*For the specific frequencies of licenses in each block refer to
> Attachment A -- Part 2. Licenses in blocks A-E have 10 paired 5 kHz
> channels, and the I block license has 15 paired 5 kHz channels. None
> of the licenses offered in Auction No. 72 have contiguous channels
> except for the E block licenses.

10. Because of the history of licenses for Phase II 220 MHz Service,
    certain licenses available in Auction No. 72 are available for only
    part of a market. In addition, one license available for only part
    of a market also covers less bandwidth than noted in the table
    above. The licenses available in this auction are listed in
    Attachment A of this Public Notice. The Phase II 220 MHz spectrum
    covered by this auction is only available to non-Government
    applicants.[^15]

## Rules and Disclaimers 

### Relevant Authority 

11. Prospective applicants must familiarize themselves thoroughly with
    the Commission's general competitive bidding rules set forth in
    Title 47, Part 1, of the Code of Federal Regulations, including
    recent amendments and clarifications;[^16] rules relating to the
    Phase II 220 MHz Service contained in Title 47, Part 90, of the Code
    of Federal Regulations; and rules relating to applications, practice
    and procedure contained in Title 47, Part 1, of the Code of Federal
    Regulations. Prospective applicants must also be thoroughly familiar
    with the procedures, terms and conditions (collectively, "terms")
    contained in this Public Notice and the Commission's decisions in
    proceedings regarding competitive bidding procedures, application
    requirements, and obligations of Commission licensees.[^17] For
    example, among other Commission orders, prospective bidders should
    be familiar with the *220 MHz Third R&O,* the *220 MHz Fourth R&O,*
    the *220 MHz Fifth R&O,* the *220 MHz 2000 M&O,* and the *Rural
    Services Order.*

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 applicants. It is the responsibility of
    all applicants to remain current with all Commission rules and with
    all public notices pertaining to this auction. Copies of most
    auctions-related Commission documents, including public notices, can
    be retrieved from the FCC Auctions Internet site at
    [http://wireless.fcc.gov/auctions](http://wireless.fcc.gov/auctions/default.htm?job=auctions_home).
    Additionally, documents are available for public inspection and
    copying between 8:00 a.m. and 4:30 p.m. Eastern Time (ET) Monday
    through Thursday or 8:00 a.m. to 11:30 a.m. ET Fridays at the FCC
    Reference Information Center, 445 12th Street, SW, Room CY-A257,
    Washington, DC 20554. Documents may also be purchased from the
    Commission's duplicating contractor, Best Copy and Printing, Inc.
    ("BCPI"), 445 12th Street, SW, Room CY-B402, Washington, DC 20554,
    800-378-3160 or at
    [http://www.bcpiweb.com](http://www.bcpiweb.com/).[^18]

### Prohibition of Collusion; Compliance with Antitrust Laws

13. To ensure the competitiveness of the auction process, Section
    1.2105(c) of the Commission's rules prohibit applicants competing
    for licenses in any of the same geographic license areas from
    communicating with each other about bids, bidding strategies, or
    settlements unless such applicants have identified each other on
    their short-form applications (FCC Forms 175) as parties with whom
    they have entered into agreements pursuant to Section
    1.2105(a)(2)(viii).[^19] In Auction No. 72, the rule would apply to
    any applicants for licenses in the same EA or EAG. The rule would
    also apply to applicants for licenses in overlapping EAs and the
    EAG. For example, assume that one applicant applies for an EAG
    license and a second applicant applies for an EA license covering
    any area within that EAG. The two entities will have applied for
    licenses covering the same geographic areas and would be precluded
    from communicating with each other under the rule. In addition, the
    rule would preclude applicants that apply to bid for all licenses
    from communicating with all other applicants. Thus, applicants that
    have applied for licenses covering the same markets (unless they
    have identified each other on their FCC Form 175 applications as
    parties with whom they have entered into agreements under Section
    1.2105(a)(2)(viii)) must affirmatively avoid all communications with
    or disclosures to each other that affect or have the potential to
    affect bids or bidding strategy, which may include communications
    regarding the post-auction market structure.[^20] This prohibition
    begins at the short-form application filing deadline and ends at the
    down payment deadline after the auction.[^21] **This prohibition
    applies to all applicants regardless of whether such applicants
    become qualified bidders or actually bid.**[^22] (As described in
    Section IV.A.2., below, information concerning applicants' license
    selections will not be made public at least until the upfront
    payment deadline has passed and the Commission determines the
    information procedures that will be used for the auction. Therefore,
    the Commission will inform each applicant by letter of the identity
    of each of the other applicants that has applied for licenses
    covering any of the same geographic areas as the licenses that it
    has selected in its short-form application.[^23])

14. For purposes of this prohibition, Section 1.2105(c)(7)(i) defines
    "applicant" as including all officers and directors of the entity
    submitting a short-form application to participate in the auction,
    all controlling interests of that entity, as well as all holders of
    partnership and other ownership interests and any stock interest
    amounting to 10 percent or more of the entity, or outstanding stock,
    or outstanding voting stock of the entity submitting a short-form
    application.[^24]

15. Applicants for licenses for any of the same geographic license areas
    must not communicate directly or indirectly about bids or bidding
    strategy.[^25] Accordingly, such applicants are encouraged not to
    use the same individual as an authorized bidder. A violation of the
    anti‑collusion rule could occur if an individual acts as the
    authorized bidder for two or more competing applicants, and conveys
    information concerning the substance of bids or bidding strategies
    between such applicants. Also, if the authorized bidders are
    different individuals employed by the same organization (*e.g.,* law
    firm or engineering firm or consulting firm), a violation similarly
    could occur.[^26] 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.[^27] A violation of the anti-collusion rule
    could occur in other contexts, such as an individual serving as an
    officer for two or more applicants.[^28] Moreover, the Commission
    has found a violation of the anti-collusion rule where a bidder used
    the Commission's bidding system to disclose "its bidding strategy in
    a manner that explicitly invited other auction participants to
    cooperate and collaborate in specific markets,"[^29] and has placed
    auction participants on notice that the use of its bidding system
    "to disclose market information to competitors will not be tolerated
    and will subject bidders to sanctions."[^30] Bidders are cautioned
    that the Commission remains vigilant about prohibited communications
    taking place in other situations. For example, the Commission has
    warned that prohibited "communications concerning bids and bidding
    strategies may include communications regarding capital calls or
    requests for additional funds in support of bids or bidding
    strategies to the extent such communications convey information
    concerning the bids and bidding strategies directly or
    indirectly."[^31] Applicants are hereby placed on notice that public
    disclosure of information relating to bidder interests and bidder
    identities that -- although revealed prior to and during other
    Commission auctions -- is confidential in this auction at the time
    of disclosure may violate the anti-collusion rule.[^32] Bidders
    should use caution in their dealings with other parties, such as
    members of the press, financial analysts, or others who might become
    a conduit for the communication of prohibited bidding
    information.[^33]

16. The Commission's rules do not prohibit applicants from entering into
    otherwise lawful bidding agreements before filing their short-form
    applications, as long as they disclose the existence of the
    agreement(s) in their short-form application.[^34] If parties agree
    in principle on all material terms prior to the short-form filing
    deadline, each party to the agreement must identify the other party
    or parties to the agreement on its short-form application under
    Section 1.2105(c), even if the agreement has not been reduced to
    writing. If the parties have not agreed in principle by the
    short-form filing deadline, they should not include the names of
    parties to discussions on their applications, and they may not
    continue negotiations, discussions or communications with any other
    applicants after the short-form filing deadline.[^35]

17. By electronically submitting its short-form application following
    the electronic filing procedures set forth in Attachment C to this
    Public Notice, each applicant certifies its compliance with Section
    1.2105(c). However, the Bureau cautions that merely filing a
    certifying statement as part of an application will not outweigh
    specific evidence that collusive behavior has occurred, nor will it
    preclude the initiation of an investigation when warranted.[^36] The
    Commission has stated that it "intend\[s\] to scrutinize carefully
    any instances in which bidding patterns suggest that collusion may
    be occurring."[^37] Any applicant found to have violated the
    anti-collusion rule may be subject to sanctions.[^38]

18. Applicants are also reminded that, regardless of compliance with the
    Commission's rules, they remain subject to the antitrust laws, which
    are designed to prevent anticompetitive behavior in the marketplace.
    [^39] Compliance with the disclosure requirements of the
    Commission's anti-collusion rule will not insulate a party from
    enforcement of the antitrust laws.[^40] For instance, a violation of
    the antitrust laws could arise out of actions taking place well
    before any party submits a short form application.[^41] The
    Commission has cited a number of examples of potentially
    anticompetitive actions that would be prohibited under antitrust
    laws: for example, actual or potential competitors may not agree to
    divide territories horizontally in order to minimize competition,
    regardless of whether they split a market in which they both do
    business, or whether they merely reserve one market for one and
    another for the other.[^42] Similarly, the Bureau has long reminded
    potential applicants and others that "\[e\]ven where the applicant
    discloses parties with whom it has reached an agreement on the
    short-form application, thereby permitting discussions with those
    parties, the applicant is nevertheless subject to existing antitrust
    laws."[^43] To the extent the Commission becomes aware of specific
    allegations that may give rise to violations of the federal
    antitrust laws, the Commission may refer such allegations to the
    United States Department of Justice for investigation.[^44] If an
    applicant is found to have violated the antitrust laws or the
    Commission's rules in connection with its participation in the
    competitive bidding process, it may be subject to forfeiture of its
    upfront payment, down payment, or full bid amount and may be
    prohibited from participating in future auctions, among other
    sanctions.[^45]

19. 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.[^46] Thus, Section 1.65 requires an auction
    applicant to notify the Commission of any substantial change to the
    information or certifications included in its pending short-form
    application. Applicants are therefore required by Section 1.65 to
    report to the Commission any communications they have made to or
    received from another applicant after the short-form filing deadline
    that affect or have the potential to affect bids or bidding strategy
    unless such communications are made to or received from parties to
    agreements identified under Section 1.2105(a)(2)(viii). In addition,
    Section 1.2105(c)(6) provides that any applicant that makes or
    receives a communication prohibited by Section 1.2105(c) must report
    such communication to the Commission in writing immediately, and in
    no case later than five business days after the communication
    occurs.[^47] Applicants must be aware that failure to comply with
    the Commission's rules can result in enforcement action under
    certain circumstances.

20. Applicants that are winning bidders will be required to disclose in
    their long-form applications the specific terms, conditions, and
    parties involved in any bidding consortia, joint ventures,
    partnerships, and other arrangements entered into relating to the
    competitive bidding process.[^48]

21. A summary listing of documents issued by the Commission and the
    Bureau addressing the application of the anti-collusion rule may be
    found in Attachment F. These documents are available on the
    Commission's auction anti-collusion web page.[^49]

### Protection of Incumbent Operations

22. Potential applicants are advised that there are a number of
    incumbent Phase I 220 MHz Service licensees already licensed and
    operating on frequencies between 220 and 222 MHz. Such Phase I
    incumbents must be protected from harmful interference by Phase II
    220 MHz Service licensees in accordance with the Commission\'s
    rules. See, e.g., 47 C.F.R. § 90.763. These limitations may restrict
    the ability of Phase II geographic area licensees to use certain
    portions of the electromagnetic spectrum or provide service to
    certain areas in their geographic license areas.

#### International Coordination 

23. Potential bidders seeking licenses for geographic areas that are
    near the Canadian or Mexican borders should be aware that the use of
    some or all of the channels they acquire in the auction could be
    restricted by agreements with Canada or Mexico on the use of 220-222
    MHz spectrum in the border area.[^50]

#### Quiet Zones 

24. Phase II 220 MHz Service licensees must protect the radio quiet
    zones set forth in the Commission's rules.[^51] Licensees are
    cautioned that they must receive the appropriate approvals directly
    from the relevant quiet zone entity prior to operating within the
    areas described in the Commission's rules.[^52]

###  Due Diligence 

25. The Bureau cautions potential applicants formulating their bidding
    strategies to investigate and consider the extent to which Phase II
    220 MHz frequencies are occupied. Applicants and their investors
    should also understand that Commission rules and requirements place
    limitations on the ability of Phase II 220 MHz Service licensees to
    use this spectrum. As stated above, incumbent Phase I 220 MHz
    Service operations in the 220-222 MHz band must be protected. These
    limitations may restrict the ability of Phase II 220 MHz Service
    geographic area licensees to use certain portions of the
    electromagnetic spectrum or provide service to certain areas in
    their geographic license areas. Bidders should become familiar with
    the status of these operations, applicable Commission rules, orders
    and any pending proceedings related to the service, in order to make
    reasoned, appropriate decisions about their participation in Auction
    No. 72 and their bidding strategy.

26. Potential bidders are reminded that they are solely responsible for
    investigating and evaluating all technical and marketplace factors
    that may have a bearing on the value of the Phase II 220 MHz Service
    licenses 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 licensee in the Phase II 220 MHz
    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 license
    constitute a guarantee of business success.** Applicants should
    perform their individual due diligence before proceeding as they
    would with any new business venture.

27. Potential bidders are strongly encouraged to conduct their own
    research prior to the beginning of bidding in Auction No. 72 in
    order to determine the existence of any pending administrative or
    judicial proceedings that might affect their decision regarding
    participation in the auction. Participants in Auction No. 72 are
    strongly encouraged to continue such research throughout the
    auction. In addition, potential bidders should perform technical
    analyses sufficient to assure themselves that, should they prevail
    in competitive bidding for a specific license, they will be able to
    build and operate facilities that will fully comply with the
    Commission\'s technical and legal requirements as well as other
    applicable Federal, state, and local laws.

28. Applicants should also be aware that certain pending and future
    proceedings, including applications (including those for
    modification), petitions for rulemaking, requests for special
    temporary authority, waiver requests, petitions to deny, petitions
    for reconsideration, informal oppositions, and applications for
    review, before the Commission may relate to particular applicants or
    incumbent licensees or the licenses available in Auction No. 72. In
    addition, pending and future judicial proceedings may relate to
    particular applicants or incumbent licensees, or the licenses
    available in Auction No. 72. Prospective bidders are responsible for
    assessing the likelihood of the various possible outcomes, and
    considering their potential impact on spectrum licenses available in
    this auction.

29. Applicants should perform due diligence to identify and consider all
    proceedings that may affect the spectrum licenses being auctioned
    and that could have an impact on the availability of spectrum for
    Auction No. 72. In addition, although the Commission may continue to
    act on various pending applications, informal objections, petitions,
    and other requests for Commission relief, some of these matters may
    not be resolved by the beginning of bidding in the auction.

30. Applicants are solely responsible for identifying associated risks
    and for investigating and evaluating the degree to which such
    matters may affect their ability to bid on, otherwise acquire, or
    make use of licenses available in Auction No. 72.

31. Applicants may use the Bureau's licensing databases at
    <http://wireless.fcc.gov/uls> to obtain information about incumbent
    licenses that may affect the availability of the spectrum for which
    licenses are offered in Auction No. 72. Applicants may query the
    database online and download a copy of their search results if
    desired. Detailed instructions on using License Search (including
    frequency searches and the GeoSearch capability) and downloading
    query results are available online by selecting the "?" button at
    the upper right-hand corner of the License Search screen or by going
    to the Universal Licensing System ("ULS") support site at
    <http://esupport.fcc.gov/licensing.htm>. Applicants should direct
    questions regarding the ULS search capabilities to the FCC ULS
    Technical Support hotline at (877) 480-3201, option two. The hotline
    is available to assist with questions Monday through Friday, from
    8:00 a.m. to 7:00 p.m. ET. In order to provide better service to the
    public, all calls to the hotline are recorded.

32. The Commission makes no representations or guarantees regarding the
    accuracy or completeness of information in its databases or any
    third party databases, including, for example, court docketing
    systems. To the extent the Commission's databases may not include
    all information deemed necessary or desirable by an applicant,
    applicants may obtain or verify such information from independent
    sources or assume the risk of any incompleteness or inaccuracy in
    said databases. Furthermore, the Commission makes no representations
    or guarantees regarding the accuracy or completeness of information
    that has been provided by incumbent licensees and incorporated into
    its databases.

33. Potential applicants are strongly encouraged to physically inspect
    any prospective sites located in, or near, the service area for
    which they plan to bid, and also to familiarize themselves with the
    environmental review obligations described below in Section I.B.7.

### Use of Integrated Spectrum Auction System

34. The Commission will make available a browser-based bidding system to
    allow bidders to participate in Auction No. 72 over the Internet
    using the Commission's Integrated Spectrum Auction System ("ISAS" or
    "FCC Auction System"). The Commission makes no warranty whatsoever
    with respect to the FCC Auction System. In no event shall the
    Commission, or any of its officers, employees or agents, be liable
    for any damages whatsoever (including, but not limited to, loss of
    business profits, business interruption, loss of business
    information, or any other loss) arising out of or relating to the
    existence, furnishing, functioning or use of the FCC Auction System
    that is accessible to qualified bidders in connection with this
    auction. Moreover, no obligation or liability will arise out of the
    Commission's technical, programming or other advice or service
    provided in connection with the FCC Auction System.

### Bidder Alerts

35. As is the case with many business investment opportunities, some
    unscrupulous entrepreneurs may attempt to use Auction No. 72 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.

36. Information about deceptive telemarketing investment schemes is
    available from the Commission as well as the FTC and SEC. Additional
    sources of information for potential bidders and investors my be
    obtained from: (i) FCC by going to
    <http://wireless.fcc.gov/csinfo/#fraud> or by telephone at (888)
    225-5322 (FCC's Consumer Call Center); (ii) FTC by going to
    <http://ftc.gov/bcp/menu-invest.htm> or by telephone at (202)
    326-2222; and (iii) SEC by going to
    <http://sec.gov/cgi-bin/txt-srch-sec?text=fraud&section=Investor+Information&x=8&y=5>
    or by telephone 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.

### Environmental Review Requirements

37. Licensees must comply with the Commission's rules regarding
    implementation of the National Environmental Policy Act and other
    federal environmental statutes.[^53] The construction of a wireless
    antenna facility is a federal action and the licensee must comply
    with the Commission's environmental rules for each such
    facility.[^54] The Commission's environmental rules require, among
    other things, that the licensee consult with expert agencies having
    environmental responsibilities, including the U.S. Fish and Wildlife
    Service, the State Historic Preservation Office, the Army Corps of
    Engineers and the Federal Emergency Management Agency (through the
    local authority with jurisdiction over floodplains). In assessing
    the effect of facilities construction on historic properties, the
    licensee must follow the provisions of the Nationwide Programmatic
    Agreement Regarding the Section 106 National Historic Preservation
    Act Review Process.[^55] The licensee must prepare environmental
    assessments for facilities that may have a significant impact in or
    on wilderness areas, wildlife preserves, threatened or endangered
    species or designated critical habitats, historical or
    archaeological sites, Indian religious sites, floodplains, and
    surface features. The licensee also must prepare environmental
    assessments for facilities that include high intensity white lights
    in residential neighborhoods or excessive radio frequency emission.

## Auction Specifics

### Auction Date

38. Bidding in Auction No. 72 will begin on Wednesday, June 20, 2007, as
    announced in the *Auction No. 72 Comment Public Notice*.[^56]

39. In its comments in response to the *Auction No. 72 Comment Public
    Notice*, Skybridge seeks a delay of several months in the start of
    Auction No. 72.[^57] We do not believe that it would be in the
    public interest to do so. Skybridge argues for a delay to enable the
    Commission to complete the processing of applications for the
    assignment of certain 220 MHz licenses to an affiliate of
    Skybridge.[^58] Generally, we have held that the existence of
    related pending proceedings is not a sufficient reason to delay an
    auction.[^59] Similarly, the Commission has observed that Section
    309(j)(3)(E)(ii)'s statutory requirement to provide prospective
    bidders with time to develop business plans and evaluate the
    availability of equipment does not "require\[\] the Commission to
    postpone an auction until every external factor that might influence
    a bidder's business plan is resolved with absolute certainty.[^60]
    Further, we note that the application identified by Skybridge has
    been acted upon.[^61] Skybridge provides no legal or policy reason,
    other than its concern about the processing of the identified
    assignment application, in support of its request for postponement.
    In furtherance of the statutory objectives underlying the
    Commission's auctions process, including promoting the rapid
    deployment of new technologies and services to the public, and
    enhancing economic opportunity and competition,[^62] we determine
    that the public interest would be served by proceeding with the
    auction as scheduled.[^63] The initial schedule for bidding will be
    announced by public notice at least one week before the start of the
    auction.

40. Unless otherwise announced, bidding on all licenses will be
    conducted on each business day until bidding has stopped on all
    licenses.

### Auction Title

41. Auction No. 72 -- Phase II 220 MHz

### Bidding Methodology 

42. As discussed in more detail below, the bidding methodology for
    Auction No. 72 will be simultaneous multiple round bidding.[^64] The
    Commission will conduct this auction over the Internet using the FCC
    Auction System, and telephonic bidding will be available as well.
    Qualified bidders are permitted to bid electronically via the
    Internet or by telephone.[^65] All telephone calls are recorded.

### Pre-Auction Dates and Deadlines

43. Dates and Deadlines

> Auction Seminar April 11, 2007

Short-Form Application (FCC Form 175) Filing Window Opens April 11,
2007; 12:00 noon ET

> Short-Form Application (FCC Form 175) Filing Window Deadline April 20,
> 2007; prior to 6:00 p.m. ET

Upfront Payments (via wire transfer) May 21, 2007; 6:00 p.m. ET

> Mock Auction June 18, 2007

Auction Begins June 20, 2007

### Requirements for Participation

44. Those wishing to participate in the auction must:

-   Submit a short-form application (FCC Form 175) electronically prior
    to 6:00 p.m. Eastern Time (ET), April 20, 2007, following the
    electronic filing procedures set forth in Attachment C to this
    Public Notice.

```{=html}
<!-- -->
```
-   Submit a sufficient upfront payment and an FCC Remittance Advice
    Form (FCC Form 159) by 6:00 p.m. ET, May 21, 2007, following the
    procedures and instructions set forth in Section III.D. and
    Attachment D to this Public Notice.

```{=html}
<!-- -->
```
-   Comply with all provisions outlined in this Public Notice and
    applicable Commission rules. For example, the Phase II 220 MHz
    spectrum covered by this auction is only available to non-Government
    applicants under section 90.721(b) of those rules, 47 C.F.R. §
    90.721(b). In this context, non-Government applicants are those
    applying to use spectrum for non-Federal Government operations. See
    paragraph 10 and footnote 15 above.

### General Contact Information

45. General Contact Information Table

+-----------------------------------+----------------------------------+
| **GENERAL AUCTION INFORMATION**   | FCC Auctions Hotline             |
+-----------------------------------+----------------------------------+
| General Auction Questions         | \(888\) 225-5322, option two;    |
+-----------------------------------+----------------------------------+
| Auction Process and Procedures    | or (717) 338-2868                |
|                                   |                                  |
| Seminar Registration              |                                  |
+-----------------------------------+----------------------------------+
|                                   | Hours of service: 8:00 a.m. --   |
|                                   | 5:30 p.m. ET,                    |
|                                   |                                  |
|                                   | Monday through Friday            |
+-----------------------------------+----------------------------------+
| **AUCTION LEGAL INFORMATION**     | Auctions and Spectrum Access     |
|                                   | Division                         |
+-----------------------------------+----------------------------------+
| Auction Rules, Policies,          | \(202\) 418-0660                 |
| Regulations                       |                                  |
+-----------------------------------+----------------------------------+
| **LICENSING INFORMATION**         | Mobility Division                |
+-----------------------------------+----------------------------------+
| Service Rules, Policies,          | \(202\) 418-0620                 |
| Regulations                       |                                  |
|                                   |                                  |
| Licensing Issues, Engineering     |                                  |
| Issues                            |                                  |
|                                   |                                  |
| Due Diligence, Incumbency Issues  |                                  |
+-----------------------------------+----------------------------------+
| **TECHNICAL SUPPORT**             | FCC Auctions Technical Support   |
|                                   | Hotline                          |
+-----------------------------------+----------------------------------+
| Electronic Filing                 | \(877\) 480-3201, option nine;   |
|                                   | or (202) 414-1250                |
+-----------------------------------+----------------------------------+
| FCC Auction System                | \(202\) 414-1255 (TTY)           |
| (Hardware/Software Issues)        |                                  |
|                                   | Hours of service: 8:00 a.m. --   |
|                                   | 6:00 p.m. ET,                    |
|                                   |                                  |
|                                   | Monday through Friday            |
+-----------------------------------+----------------------------------+
| **PAYMENT INFORMATION**           | FCC Auctions Accounting Branch   |
+-----------------------------------+----------------------------------+
| Wire Transfers                    | \(202\) 418-0578                 |
+-----------------------------------+----------------------------------+
| Refunds                           | \(202\) 418-2843 (Fax)           |
+-----------------------------------+----------------------------------+
| **AUCTION BIDDER LINE**           | Will be furnished only to        |
|                                   | qualified bidders                |
+-----------------------------------+----------------------------------+
| **FCC COPY CONTRACTOR**           | Best Copy and Printing, Inc      |
+-----------------------------------+----------------------------------+
| Additional Copies of              | 445 12th Street, SW, Room        |
|                                   | CY-B402                          |
+-----------------------------------+----------------------------------+
| Commission Documents              | Washington, DC 20554             |
|                                   |                                  |
|                                   | \(800\) 378-3160                 |
|                                   |                                  |
|                                   | [http://www.bcpiw                |
|                                   | eb.com](http://www.bcpiweb.com/) |
+-----------------------------------+----------------------------------+
| **PRESS INFORMATION**             | Chelsea Fallon (202) 418-7991    |
+-----------------------------------+----------------------------------+
| **FCC FORMS**                     | \(800\) 418-3676 (outside        |
|                                   | Washington, DC)                  |
|                                   |                                  |
|                                   | \(202\) 418-3676 (in the         |
|                                   | Washington area)                 |
|                                   |                                  |
|                                   | <h                               |
|                                   | ttp://www.fcc.gov/formpage.html> |
+-----------------------------------+----------------------------------+
| **ACCESSIBLE FORMATS**            | Consumer and Governmental        |
|                                   | Affairs Bureau                   |
+-----------------------------------+----------------------------------+
| Braille, large print, electronic  | \(202\) 418-0530 or (202)        |
| files, or                         | 418-0432 (TTY)                   |
+-----------------------------------+----------------------------------+
| audio format for people with      | <fcc504@fcc.gov>                 |
| disabilities                      |                                  |
+-----------------------------------+----------------------------------+
| **FCC INTERNET SITES**            | [http://w                        |
|                                   | ww.fcc.gov](http://www.fcc.gov/) |
|                                   |                                  |
|                                   | <h                               |
|                                   | ttp://wireless.fcc.gov/auctions> |
|                                   |                                  |
|                                   | <http://wireless.fcc.gov/uls>    |
+-----------------------------------+----------------------------------+

#  {#section .unnumbered}

# short-form Application (FCC FORM 175) REQUIREMENTS

46. An application to participate in an FCC auction, referred to as a
    short-form application or FCC Form 175, provides information used in
    determining whether the applicant is legally, technically, and
    financially qualified to participate in Commission auctions for
    licenses or permits.[^66] The short-form application is the first
    part of the Commission's two-phased auction application process. In
    the first phase of this process, parties desiring to participate in
    the auction file streamlined, short-form applications in which they
    certify under penalty of perjury as to their qualifications.[^67]
    Eligibility to participate in bidding is based on the applicants\'
    short-form applications and certifications as well as their upfront
    payments, explained below.[^68] In the second phase of the process,
    winning bidders file a more comprehensive long-form
    application.[^69]

47. Entities seeking licenses available in Auction No. 72 must file a
    short-form application electronically via the FCC Auction System
    prior to 6:00 p.m. ET on April 20, 2007, following the procedures
    prescribed in Attachment C to this Public Notice. If an applicant
    claims eligibility for a bidding credit, the information provided in
    its FCC Form 175 will be used in determining whether the applicant
    is eligible for the claimed bidding credit. Applicants bear full
    responsibility for submitting accurate, complete and timely
    short-form applications. All applicants must certify on their
    short-form applications under penalty of perjury that they are
    legally, technically, financially and otherwise qualified to hold a
    license.[^70] Applicants should read the instructions set forth in
    Attachment C to this Public Notice carefully and should consult the
    Commission's rules to ensure that, in addition to the materials
    described below, all the information that is required under the
    Commission's rules is included with their short-form applications.

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

49. Applicants also should note that submission of a short-form
    application (and any amendments thereto) constitutes a
    representation by the certifying official that he or she is an
    authorized representative of the applicant, that he or she has read
    the form's instructions and certifications, and that the contents of
    the application, its certifications, and any attachments are true
    and correct. Applicants are not permitted to make major
    modifications to their applications; such impermissible changes
    include a change of the certifying official to the application.[^71]
    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.

## Preferences for Small Businesses and Others 

### Size Standards for Bidding Credits 

50. A bidding credit represents the amount by which a bidder's winning
    bid will be discounted. For Auction No. 72, bidding credits will be
    available to small businesses and very small businesses, and
    consortia thereof, as follows:

-   A bidder with attributed average annual gross revenues that exceed
    \$3 million and do not exceed \$15 million for the preceding three
    years ("small business") will receive a 25 percent discount on its
    winning bid.[^72]

-   A bidder with attributed average annual gross revenues that do not
    exceed \$3 million for the preceding three years ("very small
    business") will receive a 35 percent discount on its winning
    bid.[^73]

51. Bidding credits are not cumulative; a qualifying applicant receives
    either the 25 percent or 35 percent bidding credit on its winning
    bid, but not both.

52. Every applicant that claims eligibility for a bidding credit as
    either a small business or a very small business, or a consortium of
    small businesses or very small businesses, will be required to
    provide information regarding revenues attributable to the
    applicant, its affiliates, its controlling interests, and the
    affiliates of its controlling interests on its FCC Form 175
    short-form application to establish that it satisfies the applicable
    eligibility requirement.[^74] Applicants claiming eligibility as a
    designated entity in Auction No. 72 should review carefully the
    *CSEA/Part 1 Designated Entity FNPRM and the Designated Entity
    Second Report and Order*. In that connection, the Commission adopted
    rules governing eligibility for designated entity benefits in the
    *Designated Entity Second Report and Order*.[^75] The Commission's
    new rules regarding applicants seeking eligibility for designated
    entity benefits requires the disclosure of a list of all parties
    with which the applicant has entered into arrangements for the lease
    or resale (including wholesale agreements) of any of the capacity of
    any of the applicant's spectrum;[^76] and a list, separately and in
    the aggregate, of the gross revenues of entities with which the
    applicant has an attributable material relationship, as defined in
    Section 1.2110(b)(3)(iv)(B).[^77]

53. The Commission has adopted a narrow exemption from the attribution
    rule for the officers and directors of a rural telephone cooperative
    pursuant to which the gross revenues of the affiliates of the
    cooperative's officers and directors are not attributed to the
    applicant.[^78] An applicant (or controlling interest) seeking to
    claim this exemption must include in its short-form application a
    certification that it is validly organized under the most closely
    applicable organizing statute for a cooperative, and that such
    organization is reflected in its articles of incorporation, by-laws,
    and/or other relevant organic documents.[^79] Applicants seeking to
    claim this exemption must meet all of the conditions specified in 47
    C.F.R. § 1.2110(b)(3)(iii) of the Commission's rules.[^80]
    Additional guidance on completing the FCC Form 175 to claim this
    exemption may be found in Attachment C to this Public Notice.

### Tribal Lands Bidding Credit

54. To encourage the growth of wireless services in federally recognized
    tribal lands, the Commission has implemented a tribal lands bidding
    credit.[^81]

### Installment Payments

55. Installment payment plans will not be available in Auction No. 72.

## License Selection 

56. In Auction No. 72, applicants must select the licenses on which they
    want to bid from the "Eligible Licenses" list. In Auction No. 72,
    FCC Form 175 will include a filtering mechanism that allows an
    applicant to filter the available licenses. The applicant will make
    selections for one or more of the filter criteria and the system
    will produce a list of licenses satisfying the specified criteria.
    The applicant may select all the licenses in the customized list or
    select individual licenses from the list. Applicants also will be
    able to select licenses from one customized list and then create
    additional customized lists to select additional licenses. There
    will be no opportunity to change license selection after the
    short-form filing deadline.[^82] It is critically important that an
    applicant confirm its license selections before submitting its
    short-form application because the FCC Auction System will not
    accept bids on licenses that an applicant has not selected on its
    FCC Form 175.

## Disclosure of Bidding Arrangements

57. Applicants will be required to identify in their short-form
    applications all parties with whom they have entered into any
    agreements, arrangements, or understandings of any kind relating to
    the licenses being auctioned, including any agreements relating to
    post-auction market structure.[^83] Applicants also will be required
    to certify under penalty of perjury in their short-form applications
    that they have not entered and will not enter into any explicit or
    implicit agreements, arrangements or understandings of any kind with
    any parties, other than those identified in the application,
    regarding the amount of their bids, bidding strategies, or the
    particular licenses on which they will or will not bid.[^84] If an
    applicant has had discussions, but has not reached a joint bidding
    agreement by the short-form application filing deadline, it would
    not include the names of parties to the discussions on its
    application and may not continue such discussions with any
    applicants after the deadline.[^85]

58. After the filing of short-form applications, the Commission's rules
    do not prohibit a party holding a non-controlling, attributable
    interest in one applicant from acquiring an ownership interest in or
    entering into a joint bidding arrangement with other applicants
    provided that (i) the attributable interest holder certifies that it
    has not and will not communicate with any party concerning the bids
    or bidding strategies of more than one of the applicants in which it
    holds an attributable interest, or with which it has entered into a
    joint bidding arrangement; and (ii) the arrangements do not result
    in a change in control of any of the applicants.[^86] While the
    anti-collusion rules do not prohibit non-auction-related business
    negotiations among auction applicants, applicants are reminded that
    certain discussions or exchanges could touch upon impermissible
    subject matters because they may convey pricing information and
    bidding strategies.[^87] Further, as discussed above, compliance
    with the disclosure requirements of the Commission's anti-collusion
    rule will not insulate a party from enforcement of the antitrust
    laws.[^88]

## Ownership Disclosure Requirements 

59. All applicants must comply with the uniform Part 1 ownership
    disclosure standards and provide information required by Sections
    1.2105 and 1.2112 of the Commission's rules.[^89] Specifically, in
    completing the short-form application, applicants will be required
    to fully disclose information on the real party or
    parties-in-interest and ownership structure of the applicant. The
    ownership disclosure standards for the short form are prescribed in
    Sections 1.2105 and 1.2112 of the Commission's rules.[^90] Each
    applicant is responsible for information submitted in its short-form
    application being complete and accurate.

60. An applicant's most current ownership information on file with the
    Commission, if in an electronic format compatible with the
    short-form application (FCC Form 175) (such as information submitted
    in an on-line FCC Form 602 or in an FCC Form 175 filed for a
    previous auction using ISAS) will automatically be entered into the
    applicant's short-form application. Applicants are responsible for
    ensuring that the information submitted in their FCC Form 175 for
    Auction No. 72 is complete and accurate. Accordingly, applicants
    should carefully review any information automatically entered to
    confirm that it is complete and accurate as of the deadline for
    filing the short-form application. Applicants can update any
    information that was entered automatically and needs to be changed
    directly in the short-form application.

## Bidding Credit Revenue Disclosures

61. To determine which applicants qualify for bidding credits as small
    businesses or very small businesses, the Commission considers the
    gross revenues of the applicant, its affiliates, its controlling
    interests, and the affiliates of its controlling interests.[^91]
    Therefore, entities applying to bid as small businesses or very
    small businesses (or consortia of small businesses or very small
    businesses) will be required to disclose on their FCC Form 175
    short-form applications the gross revenues of each of the following
    for the preceding three years: (1) the applicant, (2) its
    affiliates, (3) its controlling interests, and (4) the affiliates of
    its controlling interests.[^92] Certification that the average
    annual gross revenues of such entities and individuals for the
    preceding three years do not exceed the applicable limit is not
    sufficient. In order to comply with the Commission's disclosure
    requirements for bidding credit eligibility, an applicant must
    provide separately for itself, its affiliates, its controlling
    interests, and the affiliates of its controlling interests, the
    gross revenues for each of the preceding three years. If the
    applicant is applying as a consortium of small businesses or very
    small businesses, this information must be provided for each
    consortium member.

62. Controlling interests of an applicant include individuals and
    entities with either *de facto* or *de jure* control of the
    applicant. Typically, ownership of at least 50.1 percent of an
    entity's voting stock evidences *de jure* control. *De facto*
    control is determined on a case-by-case basis.[^93] The following
    are some common indicia of *de facto* control:

-   the entity constitutes or appoints more than 50 percent of the board
    of directors or management committee;

-   the entity has authority to appoint, promote, demote, and fire
    senior executives that control the day-to-day activities of the
    licensee;

-   the entity plays an integral role in management decisions.[^94]

63. Officers and directors of an applicant are also considered to have
    controlling interest in the applicant.[^95] The Commission does not
    impose specific equity requirements on controlling interest holders.
    Once the principals or entities with a controlling interest are
    determined, only the revenues of those principals or entities, the
    affiliates of those principals or entities, and the applicant and
    its affiliates will be counted in determining small business
    eligibility.

64. In recent years the Commission has made modifications to its rules
    governing the attribution of gross revenues for purposes of
    determining small business eligibility. These changes include
    exempting the gross revenues of the affiliates of a rural telephone
    cooperative's officers and directors from attribution to the
    applicant if certain specified conditions are met.[^96] The
    Commission has also clarified that, in calculating an applicant's
    gross revenues under the controlling interest standard, it will not
    attribute the personal net worth, including personal income, of its
    officers and directors to the applicant.[^97]

65. A consortium of small businesses or very small businesses is a
    "conglomerate organization composed of two or more entities, each of
    which individually satisfies the definition of a small business
    \[or\] very small business as those terms are defined in the
    service-specific rules."[^98] Thus, each member of a consortium of
    small or very small businesses that applies to participate in
    Auction No. 72 must individually meet the definition of small
    business or very small business adopted by the Commission for the
    Phase II 220 MHz Service.[^99] Each consortium member must disclose
    its gross revenues along with those of its affiliates, its
    controlling interests, and the affiliates of its controlling
    interests. Although the gross revenues of the consortium members
    will not be aggregated for purposes of determining the consortium's
    eligibility as a small business or very small business,[^100] this
    information must be provided to ensure that each individual
    consortium member qualifies for any bidding credit awarded to the
    consortium.[^101]

## Provisions Regarding Former and Current Defaulters

66. Each applicant must state under penalty of perjury on its short-form
    application whether or not the applicant, its affiliates, its
    controlling interests, and the affiliates of its controlling
    interests, as defined by Section 1.2110,[^102] have ever been in
    default on any Commission licenses or have ever been delinquent on
    any non-tax debt owed to any Federal agency.[^103] In addition, each
    applicant must certify under penalty of perjury on its short-form
    application that as of the short-form filing deadline, the
    applicant, its affiliates, its controlling interests, and the
    affiliates of its controlling interests, as defined by Section
    1.2110, are not in default on any payment for Commission licenses
    (including down payments) and that they are not delinquent on any
    non-tax debt owed to any Federal agency.[^104] Prospective
    applicants are reminded that submission of a false certification to
    the Commission is a serious matter that may result in severe
    penalties, including monetary forfeitures, license revocations,
    exclusion from participation in future auctions, and/or criminal
    prosecution.

67. "Former defaulters" --- *i.e.*, applicants, including any of their
    affiliates, any of their controlling interests, or any of the
    affiliates of their controlling interests, that in the past have
    defaulted on any Commission 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. 72,
    provided that they are otherwise qualified. However, as discussed in
    Section III.D.3. below, former defaulters are required to pay
    upfront payments that are fifty percent more than the normal upfront
    payment amounts.[^105]

68. "Current defaulters" --- *i.e.*, applicants, including any of their
    affiliates, any of their controlling interests, or any of the
    affiliates of their controlling interests, that are in default on
    any payment for any Commission licenses (including down payments) or
    are delinquent on any non-tax debt owed to any Federal agency as of
    the filing deadline for applications to participate in this auction
    --- are not eligible to bid in Auction No. 72.[^106]

69. Applicants are encouraged to review the Bureau's previous guidance
    on default and delinquency disclosure requirements in the context of
    the short-form application process.[^107] For example, it has been
    determined that to the extent that Commission rules permit late
    payment of regulatory or application fees accompanied by late fees,
    such debts will become delinquent for purposes of Sections 1.2105(a)
    and 1.2106(a) only after the expiration of a final payment
    deadline.[^108] Therefore, with respect to regulatory or application
    fees, the provisions of Sections 1.2105(a) and 1.2106(a) regarding
    default and delinquency in connection with competitive bidding are
    limited to circumstances in which the relevant party has not
    complied with a final Commission payment deadline.[^109]

70. The Commission considers outstanding debts owed to the United States
    Government, in any amount, to be a serious matter. The Commission
    adopted rules, including a provision referred to as the \"red light
    rule,\" that implement the Commission\'s obligations under the Debt
    Collection Improvement Act of 1996, which governs the collection of
    claims owed to the United States.[^110] Under the red light rule,
    the Commission will not process applications and other requests for
    benefits filed by parties that have outstanding debts owed to the
    Commission. In the same rulemaking order, the Commission explicitly
    declared, however, that the Commission\'s competitive bidding rules
    \"are not affected\" by the red light rule.[^111] As a consequence,
    the Commission\'s adoption of the red light rule does not alter the
    applicability of any of the Commission\'s competitive bidding rules,
    including the provisions and certifications of Sections 1.2105 and
    1.2106, with regard to current and former defaults or delinquencies.
    Applicants are reminded, however, that the Commission's Red Light
    Display System, which provides information regarding debts owed to
    the Commission, may not be determinative of an auction applicant's
    ability to comply with the default and delinquency disclosure
    requirements of section 1.2105.[^112] Thus, while the red light rule
    ultimately may prevent the processing of long-form applications by
    auction winners, an auction applicant's "red light" status is not
    necessarily determinative of its eligibility to participate in this
    auction or of its upfront payment obligation.

71. Prospective applicants in Auction No. 72 should note that any
    long-form applications filed after the close of competitive bidding
    will be reviewed for compliance with the Commission's red light
    rule,[^113] and such review may result in the dismissal of a winning
    bidder\'s long-form application.[^114]

## Other Information 

72. Applicants owned by member of minority groups and/or women, as
    defined in Section 1.2110(c)(3),[^115] may identify themselves in
    filling out their short-form applications regarding this status.
    This applicant status information is collected for statistical
    purposes only and assists the Commission in monitoring the
    participation of "designated entities" in its auctions.[^116]

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

73. As of the deadline for filing short-form applications (FCC
    Forms 175) prior to 6:00 p.m. ET on April 20, 2007, applicants are
    permitted to make only minor changes to their applications.
    Applicants are not permitted to make major modifications to their
    applications (*e.g.*, change their license selections, change
    control of the applicant, change the certifying official, or change
    their size to claim eligibility for a higher bidding credit).[^117]
    Permissible minor changes include, for example, deletion and
    addition of authorized bidders (to a maximum of three) and revision
    of addresses and telephone numbers of the applicants and their
    contact persons.

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

75. In addition, during those periods outside of the initial and
    resubmission filing windows (i.e., when you cannot electronically
    update your FCC Form 175), an applicant should submit a letter
    briefly summarizing the changes and subsequently update their
    short-form applications in ISAS as soon as possible. Note: After the
    filing window has closed, the auction system will not permit
    applicants to make certain changes, such as legal classification and
    bidding credit. Any letter describing changes to an applicant's
    short-form application should be submitted by electronic mail to the
    following address: <auction72@fcc.gov>. The electronic mail
    summarizing the changes must include a subject or caption referring
    to Auction No. 72 and the name of the applicant (e.g., "RE: Changes
    to Auction No. 72 Short-Form Application of ABC Corp."). The Bureau
    requests that parties format any attachments to electronic mail as
    Adobe^®^ Acrobat^®^ (pdf) or Microsoft^®^ Word documents. Questions
    about short-form application (FCC Form 175) amendments should be
    directed to Howard Davenport of the Auctions and Spectrum Access
    Division at (202) 418-0660.

76. Applicants must **not** submit application-specific material through
    the Commission's Electronic Comment Filing System (ECFS).

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

77. 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.[^118] Changes that cause a loss of or reduction in
    eligibility for a bidding credit must be reported immediately. If an
    amendment reporting substantial changes is a "major amendment" as
    defined by 47 C.F.R. § 1.2105, the major amendment will not be
    accepted and may result in the dismissal of the short-form
    application.[^119]

78. As noted in Section II.H., after the short-form filing deadline,
    applicants may make only minor changes to their FCC Form 175
    applications, for example, deletion and addition of authorized
    bidders (to a maximum of three). Applicants must click on the
    **SUBMIT** button in the FCC Auction System for the changes to be
    submitted and considered by the Commission. In addition, applicants
    must submit a letter, briefly summarizing the changes, by electronic
    mail at the following address: <auction72@fcc.gov>. The electronic
    mail summarizing the changes must include a subject or caption
    referring to Auction No. 72 and the name of the applicant. The
    Bureau requests that parties format any attachments to electronic
    mail as Adobe^®^ Acrobat^®^ (pdf) or Microsoft^®^ Word documents.

79. Applicants must **not** submit application-specific material through
    ECFS into the record of the proceeding concerning Auction No. 72
    procedures.

# PRE-AUCTION PROCEDURES

## Auction Seminar --- April 11, 2007

80. On Wednesday, April 11, 2007, the FCC will sponsor a free seminar
    for parties interested in participating in Auction No. 72 at the FCC
    headquarters, located at 445 12^th^ Street, SW, Washington, DC. The
    seminar will provide attendees with information about pre-auction
    procedures, completing FCC Form 175, auction conduct, the FCC
    Auction System, auction rules, and the Phase II 220 MHz Service
    rules. The seminar will also provide an opportunity for prospective
    bidders to ask questions of FCC staff concerning the auction,
    auction procedures, filing requirements and other matters related to
    this auction.

81. To register, please provide the information listed on Attachment B
    by fax, e-mail or telephone to the FCC by Monday, April 9, 2007.

82. For individuals who are unable to attend, an Audio/Video webcast of
    this seminar will be available from the FCC's Auction No. 72 web
    page at <http://wireless.fcc.gov/auctions/72/>. Select the "Auction
    Seminar" link. The seminar webcast will be archived for future
    viewing.

## Short-Form Application (FCC Form 175) --- Due Prior to 6:00 p.m. ET on April 20, 2007

83. In order to be eligible to bid in this auction, applicants must
    first follow the procedures set forth in Attachment C to this Public
    Notice to submit an FCC Form 175 application electronically via the
    FCC Auction System.[^120] This application must be received at the
    Commission prior to 6:00 p.m. ET on April 20, 2007. **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.[^121]

84. Applications may generally be filed at any time beginning at noon ET
    on April 11, 2007, and the filing window will close prior to 6:00
    p.m. ET on April 20, 2007. Applicants are strongly encouraged to
    file early and are responsible for allowing adequate time for filing
    their applications. Applicants may update or amend their
    applications multiple times until the filing deadline on April 20,
    2007.

85. Applicants must always click on the SUBMIT button on the Certify &
    Submit screen of the electronic form to successfully submit or
    modify their FCC Form 175. Any form that is not submitted will not
    be reviewed by the FCC. Additional information about accessing,
    completing, and viewing the FCC Form 175 is included in
    Attachment C. FCC Auctions Technical Support is available at (877)
    480-3201, option nine; (202) 414-1250; or (202) 414-1255 (text
    telephone (TTY)); hours of service are Monday through Friday, from
    8:00 a.m. to 6:00 p.m. ET. In order to provide better service to the
    public, all calls to Technical Support are recorded.

## Application Processing and Minor Corrections

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

87. As described more fully in the Commission's rules, after the April
    20, 2007, 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 license selections, change control of the
    applicant, change certifying official, or change their size to claim
    eligibility for a higher bidding credit).[^122]

## Upfront Payments --- Due May 21, 2007

88. In order to be eligible to bid in the auction, applicants must
    submit an upfront payment accompanied by an FCC Remittance Advice
    Form (FCC Form 159). After completing the FCC Form 175, filers will
    have access to an electronic version of the FCC Form 159 that can be
    printed and sent by facsimile to Mellon Bank in Pittsburgh, PA.
    **All upfront payments must be received in the proper account at
    Mellon Bank by 6:00 p.m. ET on May 21, 2007.**

### Making Auction Payments by Wire Transfer 

89. Wire transfer payments must be received by 6:00 p.m. ET on May 21,
    2007.[^123] **[No other payment method is acceptable]{.underline}**
    for this auction.[^124] To avoid untimely payments, applicants
    should discuss arrangements (including bank closing schedules) with
    their banker several days before they plan to make the wire
    transfer, and allow sufficient time for the transfer to be initiated
    and completed before the deadline. Applicants will need the
    following information:

> ABA Routing Number: 043000261
>
> Receiving Bank: Mellon Pittsburgh
>
> 500 Ross St.
>
> Pittsburgh, PA 15262
>
> BENEFICIARY: FCC/Account \# 910-1182
>
> Originating Bank Information (OBI Field): (Skip one space between each
> information item)
>
> "AUCTIONPAY"
>
> APPLICANT FCC REGISTRATION NUMBER (FRN): (same as FCC Form 159, block
> 21)
>
> PAYMENT TYPE CODE: (same as FCC Form 159, block 24A: "A72U")
>
> FCC CODE 1: (same as FCC Form 159, block 28A: "72")
>
> PAYER NAME: (same as FCC Form 159, block 2)
>
> LOCKBOX NO. \# 358415
>
> **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.

90. At least one hour before placing the order for the wire transfer
    (but on the same business day), applicants must send by facsimile a
    completed FCC Form 159 (Revised 2/03) to Mellon Bank at (412)
    209-6045. On the cover sheet of the facsimile, write "Wire Transfer
    --- Auction Payment for Auction No. 72." In order to meet the
    Commission's upfront payment deadline, an applicant's payment must
    be credited to the Commission\'s account before the deadline.[^125]
    **Applicants are responsible for obtaining confirmation from their
    financial institution that Mellon Bank has timely received their
    upfront payment and deposited it in the proper account.**

91. 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. 72 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 as instructed by the May 21,
    2007, deadline, will result in dismissal of the application and
    disqualification from participation in the auction.

### FCC Form 159

92. A completed FCC Remittance Advice Form (FCC Form 159, Revised 2/03)
    must be sent by facsimile to Mellon Bank to accompany each upfront
    payment. Proper completion of FCC Form 159 (Revised 2/03) is
    critical to ensuring correct crediting of upfront payments. Detailed
    instructions for completion of FCC Form 159 are included in
    Attachment D to this Public Notice. An electronic pre-filled version
    of the FCC Form 159 is available after submitting the FCC Form 175.
    Payors using a pre-filled FCC Form 159 are responsible for ensuring
    that all of the information on the form, including payment amounts,
    is accurate. The FCC Form 159 can be completed electronically, but
    must be filed with Mellon Bank via facsimile.

### Upfront Payments and Bidding Eligibility

93. In the Part *1 Order,* the Commission delegated to the Bureau the
    authority and discretion to determine appropriate upfront payment(s)
    for each auction.[^126] In addition, in the *Part 1* *Fifth Report
    and Order*, the Commission ordered that applicants that are former
    defaulters be required to pay upfront payments 50 percent greater
    than non-former defaulters.[^127] For purposes of this calculation,
    the "applicant" includes the applicant itself, its affiliates, its
    controlling interests, and affiliates of its controlling interests,
    as defined by Section 1.2110 of the Commission's rules.[^128]

94. In the *Auction* No*. 72 Comment Public Notice*, the Bureau proposed
    that the amount of the upfront payment would determine a bidder's
    initial bidding eligibility, the maximum number of bidding units on
    which a bidder may place bids.[^129] In order to bid on a license,
    otherwise qualified bidders that selected that license on Form 175
    must have a current eligibility level that meets or exceeds the
    number of bidding units assigned to that license. At a minimum,
    therefore, an applicant's total upfront payment must be enough to
    establish eligibility to bid on at least one of the licenses
    selected on its Form 175, or else the applicant will not be eligible
    to participate in the auction. An applicant does not have to make an
    upfront payment to cover all licenses the applicant selected on its
    Form 175, but rather to cover the maximum number of bidding units
    that are associated with licenses on which the bidder wishes to
    place bids and hold provisionally winning bids at any given
    time.[^130]

95. In the Auction *No. 72 Comment Public Notice*, the Bureau proposed
    to calculate upfront payments for Auction No. 72 on a
    license-by-license basis using the following formulas:[^131]

> EA Licenses \$500 per license
>
> EAG License \$0.01 \* 0.15 MHz \* License Area Population

96. The Bureau set forth the specific upfront payments and bidding units
    for each license in Attachment A of the *Auction No. 72 Comment
    Public Notice* and sought comment on this proposal. The Bureau
    received no comments in response to the proposed upfront payments.
    The specific upfront payments and bidding units for each license are
    set forth in Attachment A of this Public Notice.

97. Upfront payments help deter frivolous or insincere bidding. In
    addition, upfront payments provide the Commission with a source of
    funds in the event that the bidder incurs liability during the
    auction. Applicants must make upfront payments sufficient to obtain
    bidding eligibility on the licenses on which they will bid.

98. In calculating its upfront payment amount, an applicant should
    determine the **maximum** number of bidding units on which it may
    wish to be active (bid on or hold provisionally winning bids on) in
    any single round, and submit an upfront payment amount covering that
    number of bidding units.[^132] In order to make this calculation, an
    applicant should add together the upfront payments for all licenses
    on which it seeks to be active in any given round. **Applicants
    should check their calculations carefully, as there is no provision
    for increasing a bidder's eligibility after the upfront payment
    deadline.**

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

  **Market Number**  **Market Name**       **Bidding Units**  **Upfront
                                                              Payment**

  BEA009-D           State College, PA     500                \$500

  EAG005-I           Central/Mountain      74,000             \$74,000

  If a bidder wishes                                          
  to bid on both                                              
  licenses in a                                               
  round, it must                                              
  have selected both                                          
  on its FCC Form                                             
  175 and purchased                                           
  at least 74,500                                             
  bidding units                                               
  (500 + 74,000). If                                          
  a bidder only                                               
  wishes to bid on                                            
  one, but not both,                                          
  purchasing 74,000                                           
  bidding units                                               
  would meet the                                              
  requirement for                                             
  either license.                                             
  The bidder would                                            
  be able to bid on                                           
  either license,                                             
  but not both at                                             
  the same time. If                                           
  the bidder                                                  
  purchased only 500                                          
  bidding units, it                                           
  would have enough                                           
  eligibility for                                             
  the State College,                                          
  PA license but not                                          
  for the                                                     
  Central/Mountain                                            
  license.                                                    
  ------------------ --------------------- ------------------ -----------------

99. "Former defaulters" should calculate their upfront payment for all
    licenses by multiplying the number of bidding units on which they
    wish to be active by 1.5.[^133] 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.

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

100. To ensure that refunds of upfront payments are processed in an
     expeditious manner, the Commission is requesting that all pertinent
     information listed below be supplied to the FCC. Applicants can
     provide the information electronically during the initial
     short-form application filing window after the form has been
     submitted. (Applicants are reminded that information submitted as
     part of an FCC Form 175 will be available to the public; for that
     reason, wire transfer information should **not** be included in an
     FCC Form 175.) Wire Transfer Instructions can also be manually sent
     by facsimile to the FCC, Financial Operations Center, Auctions
     Accounting Group, ATTN: Gail Glasser, at (202) 418-2843. All
     refunds will be returned to the payer of record as identified on
     the FCC Form 159 unless the payer submits written authorization
     instructing otherwise. For additional information, please call Gail
     Glasser at (202) 418-0578.

> Name of Bank
>
> ABA Number
>
> Address of Bank
>
> Contact and Phone Number
>
> Account Number to Credit
>
> Name of Account Holder
>
> FCC Registration Number (FRN)
>
> Correspondent Bank (if applicable)
>
> ABA Number
>
> Account Number
>
> Eligibility for refunds is discussed in Section V.G., below.

## Auction Registration

101. Approximately ten days before the auction, the FCC will issue a
     public notice announcing all qualified bidders for the auction.
     Qualified bidders are those applicants whose FCC Form 175
     applications have been accepted for filing and have timely
     submitted upfront payments sufficient to make them eligible to bid.

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

103. Qualified bidders that do not receive this registration mailing
     will not be able to submit bids. Therefore, any qualified bidder
     that has not received this mailing by noon on Thursday, June 14,
     2007, should call (717) 338-2868. Receipt of this registration
     mailing is critical to participating in the auction, and each
     applicant is responsible for ensuring it has received all of the
     registration material.

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

## Remote Electronic Bidding 

105. The Commission will conduct this auction over the Internet, and
     telephonic bidding will be available as well. Qualified bidders are
     permitted to bid electronically and telephonically. Each applicant
     should indicate its bidding preference -- electronic or telephonic
     -- on the FCC Form 175. In either case, each authorized bidder must
     have its own SecurID^®^ token, which the FCC will provide at no
     charge. Each applicant with one authorized bidder will be issued
     two SecurID^®^ tokens, while applicants with two or three
     authorized bidders will be issued three tokens. **For security
     purposes, the SecurID**^®^ **tokens, the telephonic bidding
     telephone number, and the Integrated Spectrum Auction System (ISAS)
     Bidder's Guide are only mailed to the contact person at the contact
     address listed on the FCC Form 175.** Please note that each
     SecurID^®^ token is tailored to a specific auction; therefore,
     SecurID^®^ tokens issued for other auctions or obtained from a
     source other than the FCC will not work for Auction No. 72.

106. Please note that the SecurID^®^ tokens can be recycled, and the
     Bureau encourages bidders to return the tokens to the FCC. The
     Bureau will provide pre-addressed envelopes that bidders may use to
     return the tokens once the auction is closed.

## Mock Auction --- June 18, 2007 

107. All qualified bidders will be eligible to participate in a mock
     auction on Monday, June 18, 2007. The mock auction will enable
     applicants to become familiar with the FCC Auction System prior to
     the auction. Participation by all bidders is strongly recommended.
     Details will be announced by public notice.

# AUCTION EVENT

108. The first round of bidding for Auction No. 72 will begin on
     Wednesday, June 20, 2007. The initial bidding schedule will be
     announced in a public notice listing the qualified bidders, which
     is to be released approximately 10 days before the start of the
     auction.

## Auction Structure

### Simultaneous Multiple Round Auction

109. In the *Auction No. 72 Comment Public Notice*, the Bureau proposed
     to auction all Phase II 220 MHz Service licenses in a single
     auction using the Commission's standard simultaneous multiple-round
     ("SMR") auction format.[^134] This type of auction offers every
     license for bid at the same time and consists of successive bidding
     rounds in which eligible bidders may place bids on individual
     licenses. A bidder may bid on, and potentially win, any number of
     licenses. Typically, bidding remains open on all licenses until
     bidding stops on every license, unless a modified stopping rule is
     invoked.

110. The Bureau also sought comment on using a simultaneous
     multiple-round with package bidding ("SMR-PB") format for Auction
     No. 72. The Bureau does not believe that a package bidding format
     would significantly enhance the ability of bidders to create
     efficient aggregations of licenses in Auction No. 72.[^135]
     Therefore, the Bureau will not use an SMR-PB format for Auction
     No. 72. As a result, the Bureau does not address the specifics of
     the SMR-PB format at this time.

111. We conclude that the Bureau's standard SMR auction format will meet
     the needs of bidders in Auction No. 72, and we adopt the proposal
     to use a simultaneous multiple-round auction format without package
     bidding. Unless otherwise announced, bids will be accepted on all
     licenses in each round of the auction until bidding stops on every
     license. This approach, the Bureau believes, allows bidders to take
     advantage of synergies that exist among licenses.

### Information Available to Bidders Before and During the Auction 

112. In the *Auction No. 72 Comment Public Notice*, the Bureau sought
     comment on whether to implement procedures that prior to and during
     the auction would limit the disclosure of information on bidder
     interests and identities. In particular, the Bureau sought comment
     on whether technological considerations or the likely level of
     competition in Auction No. 72 weigh in favor of or against limiting
     the disclosure of information on bidder interests and identities
     relative to most past Commission spectrum auctions, or whether the
     Commission should condition the implementation of such limits on a
     measure of the competitiveness of the auction, such as the
     eligibility ratio or a modified version of the eligibility
     ratio.[^136] The Bureau received no comments on this issue.

113. Although the Commission has the option to limit the availability of
     information on an auction-by-auction basis, until recently the
     Commission generally has elected not to limit such
     information.[^137] However, as discussed by the Commission in
     connection with Auction No. 66, there are potential harms as well
     as benefits from publicly revealing all information during the
     auction process.[^138] The potential harms from anti-competitive
     behavior facilitated by the release of certain information are
     likely to be greater when the auction is less competitive -- that
     is, when the number of bidders and the level of upfront payments
     are relatively low compared to the number of licenses offered.
     Therefore, for Auction No. 72, the Bureau will use limited
     information procedures if it appears likely that the
     competitiveness of the auction will be low, and if the Bureau
     believes that limited information procedures will be effective in
     making anti-competitive behavior less likely to be successful.
     Alternatively, if the Bureau determines that the auction is likely
     to be sufficiently competitive, and therefore, that the risk of
     successful collusion is low, the Bureau will not implement
     procedures that would limit the disclosure of information on bidder
     interests and identities before the close of bidding.

114. Specifically, the Bureau will estimate the likely level of
     competition in the auction by considering the eligibility ratio,
     defined as the total number of bidding units of eligibility
     purchased by bidders through their upfront payments divided by the
     total number of bidding units for the licenses in the auction. If
     the eligibility ratio equals or exceeds three, the Bureau will not
     use limited information procedures. If the eligibility ratio is
     less than three, in general the Bureau will withhold certain
     information on bidder interests and bidder identities prior to and
     during the auction.

115. However, if the eligibility ratio is less than three, the Bureau
     reserves the discretion not to use limited information procedures
     if circumstances indicate that limited information procedures would
     not be an effective tool for deterring anti-competitive behavior.
     For example, if only two applicants become qualified to participate
     in the bidding, limited information procedures would be ineffective
     in preventing bidders from knowing the identity of the competing
     bidder and, therefore, limited information procedures would not
     serve to deter attempts at signaling and retaliatory bidding
     behavior. The Bureau anticipates announcing the information
     disclosure procedures to be used at or about the time that the
     Bureau releases a public notice announcing the applicants that are
     qualified to participate in the bidding.

116. If the Commission determines that limited information procedures
     will be used, it will make available prior to the auction the total
     eligibility level for the auction as well as the eligibility of
     each bidder but will not identify bidders' license selections.
     After each round of bidding, the amounts of each bid placed will be
     made available, but not the identities of the bidders. This
     information will give bidders an indication of demand for the
     licenses, so that bidders and their investors will be able to
     assess whether their bids are likely to be consistent with the
     valuations of other bidders, allowing them to bid more confidently.
     In addition, after each round bidders logged in to the FCC Auction
     System will be able to see whether their own bids are provisionally
     winning.

117. *Other Issues.* The Bureau does not believe that the information
     disclosure procedures established for this auction will interfere
     with the administration of or compliance with the Commission's
     anti-collusion rule. Section 1.2105(c)(1) of the Commission's rules
     provides that after the short-form application filing deadline, all
     applicants for licenses in any of the same geographic license areas
     are prohibited from disclosing to each other in any manner the
     substance of bids or bidding strategies until after the down
     payment deadline, subject to specified exceptions.[^139] When
     limited information procedures are not in effect for a particular
     auction, each applicant's selection of licenses has been publicly
     available through the Commission's on-line short-form application
     database. In Auction No. 72, however, the Commission will not
     disclose information regarding license selection at least until the
     upfront payment deadline has passed and the Commission determines
     the information disclosure procedures to be used for the auction.
     As in the past, the Commission will disclose the other portions of
     applicants' short-form applications, through its on-line database
     and certain application-based information through public notices.
     Thus, even without information regarding license selection,
     applicants would be able to comply with Section 1.2105(c) by not
     disclosing bids or bidding strategies to any other applicants in
     the auction. This approach, however, could inhibit otherwise lawful
     communications with applicants for licenses in other geographic
     license areas, which the Commission's rule permits.[^140]
     Consequently, the Bureau will notify separately each applicant with
     short-form applications to participate in a pending auction whether
     applicants in Auction No. 72 have applied for licenses in any of
     the same geographic areas as that applicant. Specifically, after
     the Bureau conducts its initial review of applications to
     participate in Auction No. 72, each applicant with a pending
     short-form application will receive a letter that lists the
     applicants in Auction No. 72 that have applied for licenses in any
     of the same geographic areas as the applicant. The list will
     identify the Auction No. 72 applicant(s) by name but will not list
     the license selections of the Auction No. 72 applicant(s). As in
     past auctions, additional information regarding applicants in
     Auction No. 72 that is needed to comply with Section 1.2105(c),
     e.g., the identities of controlling interest in the applicant and
     ownership interests greater than ten percent, will be available
     through the publicly accessible on-line short-form application
     database.[^141]

### Eligibility and Activity Rules 

118. In the *Auction No. 72 Comment Public Notice*, the Bureau proposed
     that the amount of the upfront payment submitted by a bidder would
     determine the initial (maximum) eligibility (as measured in bidding
     units) for each bidder.[^142] The Bureau received no comments on
     this issue.

119. The Commission will use upfront payments to determine initial
     (maximum) eligibility (as measured in bidding units) for Auction
     No. 72. The amount of the upfront payment submitted by a bidder
     determines initial bidding eligibility, the maximum number of
     bidding units on which a bidder may be active. As noted earlier,
     each license is assigned a specific number of bidding units listed
     in Attachment A. Bidding units for a given license do not change as
     prices rise during the auction. A bidder's upfront payment is not
     attributed to specific licenses. Rather, a bidder may place bids on
     any of the licenses selected on its FCC Form 175 as long as the
     total number of bidding units associated with those licenses does
     not exceed its current eligibility. Eligibility cannot be increased
     during the auction; it can only remain the same or decrease. Thus,
     in calculating its upfront payment amount, an applicant must
     determine the maximum number of bidding units it may wish to bid on
     or hold provisionally winning bids on in any single round, and
     submit an upfront payment amount covering that total number of
     bidding units. **The total upfront payment does not affect the
     total dollar amount a bidder may bid on any given license.**

120. In order to ensure that an auction closes within a reasonable
     period of time, an activity rule requires bidders to bid actively
     throughout the auction, rather than wait until late in the auction
     before participating. Bidders are required to be active on a
     specific percentage of their current bidding eligibility during
     each round of the auction.

121. A bidder's activity level in a round is the sum of the bidding
     units associated with licenses on which the bidder is active. A
     bidder is considered active on a license in the current round if it
     is either the provisionally winning bidder at the end of the
     previous bidding round and does not withdraw the provisionally
     winning bid in the current round, or if it submits a bid in the
     current round (*see* "Bid Amounts" in Section IV.B.3, *below*). The
     minimum required activity is expressed as a percentage of the
     bidder's current eligibility, and increases by stage as the auction
     progresses. Because these procedures (as set forth under "Auction
     Stages" in Section IV.A.4. and "Stage Transitions" in Section
     IV.A.5. *below*) have proven successful in maintaining the pace of
     previous auctions, the Commission adopts them for Auction No. 72.
     Failure to maintain the requisite activity level will result in the
     use of an activity rule waiver, if any remain, or a reduction in
     the bidder's eligibility, possibly curtailing or eliminating the
     bidder's ability to place bids in the auction.[^143]

### Auction Stages

122. In the *Auction No. 72 Comment Public Notice*, the Bureau proposed
     to conduct the auction in two stages and employ an activity rule.
     The Bureau further proposed that, in each round of Stage One, a
     bidder desiring to maintain its current bidding eligibility would
     be required to be active on licenses representing at least 80
     percent of its current bidding eligibility.[^144] Finally, the
     Bureau proposed that in each round of Stage Two, a bidder desiring
     to maintain its current bidding eligibility would be required to be
     active on at least 95 percent of its current bidding eligibility.
     The Bureau received no comments on this proposal.

123. The Commission adopts the Bureau's proposals for the activity rules
     and stages. Below are the activity levels for each stage of the
     auction. The Bureau reserves the discretion to further alter the
     activity percentages before and/or during the auction.

124. **Stage One:** During the first stage of the auction, a bidder
     desiring to maintain its current bidding eligibility will be
     required to be active on licenses representing at least 80 percent
     of its current bidding eligibility in each bidding round. Failure
     to maintain the required activity level will result in the use of
     an activity rule waiver or, if the bidder has no activity rule
     waivers remaining, a reduction in the bidder's bidding eligibility
     in the next round. During Stage One, reduced eligibility for the
     next round will be calculated by multiplying the bidder's current
     round activity (the sum of bidding units of the bidder's
     provisionally winning bids and bids during the current round) by
     five-fourths (5/4).

125. **Stage Two:** During the second stage of the auction, a bidder
     desiring to maintain its current bidding eligibility is required to
     be active on 95 percent of its current bidding eligibility. Failure
     to maintain the required activity level will result in the use of
     an activity rule waiver or, if the bidder has no activity rule
     waivers remaining, a reduction in the bidder's bidding eligibility
     in the next round. During Stage Two, reduced eligibility for the
     next round will be calculated by multiplying the bidder's current
     round activity (the sum of bidding units of the bidder's
     provisionally winning bids and bids during the current round) by
     twenty-nineteenths (20/19).

CAUTION: Since activity requirements increase in Stage Two, bidders must
carefully check their activity during the first round following a stage
transition to ensure that they are meeting the increased activity
requirement. This is especially critical for bidders that have
provisionally winning bids and do not plan to submit new bids. In past
auctions, some bidders have inadvertently lost bidding eligibility or
used an activity rule waiver because they did not re-verify their
activity status at stage transitions. Bidders may check their activity
against the required activity level by logging into the FCC Auction
System.

126. Because the foregoing procedures have proven successful in
     maintaining the proper pace in previous auctions, the Bureau adopts
     them for Auction No. 72.

### Stage Transitions

127. In the *Auction No. 72 Comment Public Notice*, the Bureau proposed
     that the auction would generally advance to the next stage (*i.e.*,
     from Stage One to Stage Two) when the auction activity level, as
     measured by the percentage of bidding units receiving new
     provisionally winning bids, is approximately 20 percent or lower
     for three consecutive rounds of bidding.[^145] The Bureau further
     proposed that the Bureau would retain the discretion to change
     stages unilaterally by announcement during the auction. This
     determination, the Bureau proposed, would be based on a variety of
     measures of bidder activity, including, but not limited to, the
     auction activity level, the percentages of licenses (as measured in
     bidding units) on which there are new bids, the number of new bids,
     and the percentage increase in revenue.[^146] The Bureau received
     no comments on this issue.

128. We adopt this proposal. Thus, the auction will start in Stage One
     and will generally advance to Stage Two when, in each of three
     consecutive rounds of bidding, the provisionally winning bids have
     been placed on 20 percent or less of the licenses being auctioned
     (as measured in bidding units).[^147] In addition, the Bureau will
     retain the discretion to regulate the pace of the auction by
     announcement. This determination will be based on a variety of
     measures of bidder activity, including, but not limited to, the
     auction activity level, the percentages of licenses (as measured in
     bidding units) on which there are new bids,[^148] the number of new
     bids, and the percentage increase in revenue. The Bureau believes
     that these stage transition rules, having proven successful in
     prior auctions, are appropriate for use in Auction No. 72.

### Activity Rule Waivers

129. In the *Auction No. 72 Comment Public Notice*, the Bureau proposed
     that each bidder in the auction be provided with three activity
     rule waivers.[^149] The Bureau received no comments on this issue.
     Therefore, we adopt the proposal that each bidder be provided three
     activity rule waivers. The Bureau is satisfied that providing three
     waivers over the course of the auction will give bidders a
     sufficient number of waivers and flexibility, while also
     safeguarding the integrity of the auction.

130. Bidders may use an activity rule waiver in any round during the
     course of the auction. Use of an activity rule waiver preserves the
     bidder's current bidding eligibility despite the bidder's activity
     in the current round being below the required minimum activity
     level. An activity rule waiver applies to an entire round of
     bidding and not to a particular license. Activity rule waivers can
     be either applied proactively by the bidder (a "proactive waiver")
     or applied automatically by the FCC Auction System (an "automatic
     waiver") and are principally a mechanism for auction participants
     to avoid the loss of bidding eligibility in the event that exigent
     circumstances prevent them from placing a bid in a particular
     round.

131. The FCC Auction System assumes that bidders with insufficient
     activity would prefer to apply an activity rule waiver (if
     available) rather than lose bidding eligibility. Therefore, the
     system will automatically apply a waiver at the end of any bidding
     round where a bidder's activity level is below the minimum required
     unless: (1) there are no activity rule waivers available; or (2)
     the bidder overrides the automatic application of a waiver by
     reducing eligibility. If a bidder has no waivers remaining and does
     not satisfy the activity requirement, the FCC Auction System will
     permanently reduce the bidder's eligibility, possibly curtailing or
     eliminating the bidder's ability to place additional bids in the
     auction.

132. A bidder with insufficient activity that wants to reduce its
     bidding eligibility rather than use an activity rule waiver must
     affirmatively override the automatic waiver mechanism during the
     bidding round by using the "reduce eligibility" function in the FCC
     Auction System. In this case, the bidder's eligibility is
     permanently reduced to bring the bidder into compliance with the
     activity rules as described in "Auction Stages" (*see* Section
     IV.A.4. *above*). Once eligibility has been reduced, a bidder will
     not be permitted to regain its lost bidding eligibility even if the
     round has not yet closed.

133. Finally, a bidder may apply an activity rule waiver proactively as
     a means to keep the auction open without placing a bid. If a bidder
     proactively applies an activity waiver (using the "apply waiver"
     function in the FCC Auction System) during a bidding round in which
     no bids are placed or withdrawn, the auction will remain open and
     the bidder's eligibility will be preserved. However, an automatic
     waiver applied by the FCC Auction System in a round in which there
     are no new bids, withdrawals, or proactive waivers will not keep
     the auction open. A bidder cannot submit a proactive waiver after
     submitting a bid in a round, and submitting a proactive waiver will
     preclude a bidder from placing any bids in that round. **Note:
     Applying a waiver is irreversible; once a proactive waiver is
     submitted that waiver cannot be unsubmitted, even if the round has
     not yet closed.**

### Auction Stopping Rules

134. For Auction No. 72, the Bureau proposed to employ a simultaneous
     stopping rule approach.[^150] A simultaneous stopping rule means
     that all licenses remain available for bidding until bidding closes
     simultaneously on all licenses. More specifically, bidding will
     close simultaneously on all licenses after the first round in which
     no bidder submits any new bids, applies a proactive waiver, or
     withdraws any provisionally winning bids.

135. The Bureau also sought comment on a modified version of the
     simultaneous stopping rule ("modified stopping rule"). The modified
     stopping rule would close the auction for all licenses after the
     first round in which no bidder applies a proactive waiver,
     withdraws a provisionally winning bid, or places any new bids on
     any license on which it is not the provisionally winning bidder.
     Thus, absent any other bidding activity, a bidder placing a new bid
     on a license for which it is the provisionally winning bidder would
     not keep the auction open under this modified stopping rule.

136. The Bureau further proposed retaining the discretion to keep the
     auction open even if no bidder places any new bids, applies a
     proactive waiver, or withdraws any provisionally winning bids in a
     round. In this event, the effect will be the same as if a bidder
     had applied a waiver. Thus, the activity rule will apply as usual,
     and a bidder with insufficient activity will either use an activity
     rule waiver (if it has any left) or lose bidding eligibility.

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

138. The Bureau proposed to exercise these options only in circumstances
     such as where the auction is proceeding very slowly, where there is
     minimal overall bidding activity or where it appears likely that
     the auction will not close within a reasonable period of
     time.[^151] The Bureau noted that before exercising these options,
     the Bureau is likely to attempt to increase the pace of the auction
     by, for example, increasing the number of bidding rounds per day,
     and/or changing the minimum acceptable bids.

139. The Bureau believes that the proposed stopping rules are
     appropriate for Auction No. 72 because our experience in prior
     auctions demonstrates that these stopping rules balance interests
     of administrative efficiency and maximum bidder participation. The
     Bureau received no comments concerning the auction stopping rules.
     Therefore the Bureau adopts the proposals made in the *Auction No.
     72 Comment Public Notice*. Auction No. 72 will begin under the
     simultaneous stopping rule approach, and the Bureau will retain the
     discretion to employ the other versions of the stopping rule.
     Moreover, the Bureau will retain the discretion to use the modified
     stopping rule with or without prior announcement during the
     auction.

### Auction Delay, Suspension, or Cancellation

140. In the *Auction No. 72 Comment Public Notice*, the Bureau proposed
     that, by public notice or by announcement during the auction, the
     Bureau may delay, suspend, or cancel the auction in the event of
     natural disaster, technical obstacle, administrative or weather
     necessity, evidence of an auction security breach or unlawful
     bidding activity, or for any other reason that affects the fair and
     efficient conduct of competitive bidding.[^152] The Bureau received
     no comment on this issue.

141. Because our approach to notification of delay during an auction has
     proven effective in resolving exigent circumstances in previous
     auctions, the Bureau adopts the Bureau's proposed rules regarding
     auction delay, suspension, or cancellation. By public notice or by
     announcement during the auction, the Bureau may delay, suspend, or
     cancel the auction in the event of natural disaster, technical
     obstacle, administrative or weather necessity, evidence of an
     auction security breach or unlawful bidding activity, or for any
     other reason that affects the fair and efficient conduct of
     competitive bidding. In such cases, the Bureau, in its 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 Bureau to delay or suspend the auction.
     The Bureau emphasizes that exercise of this authority is solely
     within the discretion of the Bureau, 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

142. The initial schedule of bidding rounds will be announced in the
     public notice listing the qualified bidders, which is released
     approximately 10 days before the start of the auction. Each bidding
     round is followed by the release of round results. Multiple bidding
     rounds may be conducted in a given day. Details regarding round
     results formats and locations will also be included in the
     qualified bidders public notice.

143. The Bureau 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 Bureau may increase or decrease the amount of time
     for the bidding rounds, the amount of time between rounds, or the
     number of rounds per day, depending upon bidding activity and other
     factors.

### Reserve Price and Minimum Opening Bids

144. Section 309(j) of the Communications Act of 1934, as amended, calls
     upon the Commission to prescribe methods by which a reasonable
     reserve price will be required or a minimum opening bid established
     when applications for FCC licenses 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.[^153] Consistent with this mandate, the
     Commission directed the Bureau to seek comment on the use of a
     minimum opening bid and/or reserve price prior to the start of each
     auction.[^154] Among other factors, the Bureau 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.[^155] The Commission
     concluded that the Bureau should have the discretion to employ
     either or both of these mechanisms for future auctions.[^156]

145. The Bureau proposed in the *Auction No. 72 Comment Public Notice*
     to establish minimum opening bids for each license, while retaining
     discretion to lower the minimum opening bids.[^157] Specifically,
     for Auction No. 72, the Bureau proposed the following formulas for
     calculating license-by-license minimum opening bids: [^158]

> EA Licenses \$500 per license
>
> EAG License \$0.01 \* 0.15 MHz \* License Area Population

146. The Bureau sought comment on this proposal and, in the alternative,
     whether, consistent with the Section 309(j), the public interest
     would be served by having no minimum opening bids.[^159] Skybridge
     filed comments in which it sought a reduction in the minimum
     opening bids by 50 percent.[^160] Skybridge argues that lowering
     minimum opening bids will increase the likelihood that these
     licenses will be sold at auction.[^161] Skybridge notes that the
     auction will make available spectrum that licensees will seek to
     aggregate in order to satisfy "a particular viable market
     opportunity."[^162] Skybridge also contends that the licenses being
     offered in Auction No. 72 have "low market value," and asserts that
     it does "not know of market indications of higher values, or
     developments in the near term that would cause higher values.[^163]

147. We continue to believe that the minimum opening bid amounts
     proposed in the *Auction No. 72 Comment Public Notice* are
     appropriate. The proposed minimum opening bid amounts better enable
     the Commission meet the statutory objective of recovering for the
     public a portion of the value of the spectrum resource made
     available for commercial use.[^164] Moreover, we observed in the
     *Auction No. 72 Comment Public Notice* that the proposed minimum
     opening bid of \$500 will not impede any party willing and able to
     offer wireless service to the public.[^165] Skybridge offers little
     support for its contention that the licenses being offered have
     "low market value."[^166]

148. The Bureau believes that the minimum opening bids for this auction
     are reasonable. Accordingly, the Bureau will adopt the proposed
     minimum opening bid amounts and set the minimum opening bids using
     the proposed formulas.

149. The Commission did not receive any comments addressing our proposal
     that the Bureau retain the discretion to reduce minimum opening bid
     amounts. The Bureau adopts this proposal. The minimum opening bid
     amounts the Bureau adopts for Auction No. 72 are reducible at the
     discretion of the Bureau. The Bureau emphasizes, however, that such
     discretion will be exercised, if at all, sparingly and early in the
     auction, i.e., before bidders lose all activity waivers. During the
     course of the auction, the Bureau will not entertain requests to
     reduce the minimum opening bid amount on specific licenses. The
     Bureau notes that effectively the minimum opening bids operate as
     reserve prices.

150. The specific minimum opening bid amounts for each license available
     in Auction No. 72 calculated pursuant to the procedure describe
     above are set forth in Attachment A.

### Bid Amounts 

151. In the *Auction No. 72 Comment Public Notice*, the Bureau proposed
     that in each round, eligible bidders be able to place a bid on a
     given license in any of nine different amounts.[^167] Under the
     proposal, the FCC Auction System interface will list the acceptable
     bid amounts for each license.[^168] The Bureau received no comment
     on this issue. Based on our experience in prior auctions, the
     Bureau adopts our proposals for Auction No. 72.

152. The first of the acceptable bid amounts is called the minimum
     acceptable bid amount. The minimum acceptable bid amount for a
     license will be equal to its minimum opening bid amount until there
     is a provisionally winning bid for the license. After there is a
     provisionally winning bid for a license, the minimum acceptable bid
     amount for that license will be equal to the amount of the
     provisionally winning bid plus a percentage of that bid amount
     calculated using the formula described below. In general, the
     percentage will be higher for a license receiving many bids than
     for a license receiving few bids. In the case of a license for
     which the provisionally winning bid has been withdrawn, the minimum
     acceptable bid amount will equal the second highest bid received
     for the license.[^169]

153. The percentage of the provisionally winning bid used to establish
     the minimum acceptable bid amount (the "additional percentage") is
     calculated at the end of each round, based on an activity index
     which is a weighted average of the number of bids in that round and
     the activity index from the prior round. Specifically, the activity
     index is equal to a weighting factor times the number of bids on
     the license in the most recent bidding round plus one minus the
     weighting factor times the activity index from the prior
     round.[^170] The additional percentage is determined as one plus
     the activity index times a minimum percentage amount, with the
     result not to exceed a given maximum. The additional percentage is
     then multiplied by the provisionally winning bid amount to obtain
     the minimum acceptable bid for the next round. The Commission will
     initially set the weighting factor at 0.5, the minimum percentage
     at 0.1 (10%), and the maximum percentage at 0.2 (20%). Hence, at
     these initial settings, the minimum acceptable bid for a license
     will be between 10% and 20% higher than the provisionally winning
     bid, depending upon the bidding activity for the license. Equations
     and examples are shown in Attachment E.

154. The additional bid amounts are calculated using the minimum
     acceptable bid amount and a bid increment percentage. The first
     additional acceptable bid amount equals the minimum acceptable bid
     amount times one plus the bid increment percentage, rounded. If,
     for example, the bid increment percentage is ten percent, the
     calculation is (minimum acceptable bid amount) \* (1 + 0.1),
     rounded, or (minimum acceptable bid amount) \* 1.1, rounded; the
     second additional acceptable bid amount equals the minimum
     acceptable bid amount times one plus two times the bid increment
     percentage, rounded, or (minimum acceptable bid amount) \* 1.2,
     rounded; the third additional acceptable bid amount equals the
     minimum acceptable bid amount times one plus three times the bid
     increment percentage, rounded, or (minimum acceptable bid amount)
     \* 1.3, rounded; etc. The Bureau will round the results of these
     calculations, as well as the calculations to determine the minimum
     acceptable bid amounts, using our standard rounding
     procedures.[^171] For Auction No. 72, the Bureau proposed to use a
     bid increment percentage of ten percent to calculate the additional
     acceptable bid amounts. The Bureau received no comment on this
     issue and will begin the auction with a bid increment percentage of
     ten percent and eight additional bid amounts.

155. The Bureau did not receive any comments on our proposal. The Bureau
     retains the discretion to change the minimum acceptable bid
     amounts, the minimum acceptable bid formula parameters, the bid
     increment percentage, and the number of acceptable bid amounts if
     it determines that circumstances so dictate. The Bureau will do so
     by announcement in the FCC Auction System during the auction if
     circumstances warrant.

### Provisionally Winning Bids 

156. At the end of each bidding round, a "provisionally winning bid"
     will be determined based on the highest bid amount received for
     each license. A provisionally winning bid will remain the
     provisionally winning bid until there is a higher bid on the same
     license at the close of a subsequent round. Provisionally winning
     bids at the end of the auction become the winning bids. Bidders are
     reminded that provisionally winning bids count toward activity for
     purposes of the activity rule.[^172]

157. In the Auction *No. 72 Comment Public Notice*, the Bureau proposed
     to use a random number generator to select a single provisionally
     winning bid in the event of identical high bid amounts being
     submitted on a license in a given round (*i.e.*, tied bids).[^173]
     No comments were received on this proposal. Therefore, the Bureau
     adopts its proposal. A pseudo-random number generator based on the
     L'Ecuyer algorithms will be used to assign a random number to each
     bid.[^174] The tied bid with the highest random number wins the
     tiebreaker, and becomes the provisionally winning bid. The
     remaining eligible bidders, as well as the provisionally winning
     bidder, can submit higher bids in subsequent rounds. However, if
     the auction were to end with no other bids being placed, the
     winning bidder would be the one that placed the selected
     provisionally winning bid.

158. During a round, a bidder may submit bids for as many licenses as it
     wishes (providing that it is eligible to bid), withdraw
     provisionally winning bids from previous rounds, remove bids placed
     in the current bidding round, or permanently reduce eligibility.
     Bidders also have the option of submitting and removing multiple
     bids and withdrawing multiple provisionally winning bids (subject
     to the limitation on withdrawal rounds discussed below) during a
     round. If a bidder submits multiple bids for a single license 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 licenses for which the bidder has removed or
     withdrawn its bid do not count towards the bidder's current
     activity.

159. All bidding will take place remotely either through the FCC Auction
     System or by telephonic bidding. There will be no on-site bidding
     during Auction No. 72. Please note that telephonic bid assistants
     are required to use a script when entering bids placed by
     telephone. Telephonic bidders are therefore reminded to allow
     sufficient time to bid by placing their calls well in advance of
     the close of a round. The length of a call to place a telephonic
     bid may vary; please allow a minimum of ten minutes.

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

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

162. In each round, eligible bidders will be able to place bids on a
     given license in any of nine different amounts.[^175] For each
     license, the FCC Auction System will list the nine acceptable bid
     amounts in a drop-down box. [^176] Bidders use the drop-down box to
     select from among the acceptable bid amounts. The FCC Auction
     System also includes an "upload" function that allows bidders to
     upload text files containing bid information.

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

164. Finally, bidders are cautioned to select their bid amounts
     carefully because, as explained below, bidders that withdraw a
     provisionally winning bid from a previous round, even if the bid
     was mistakenly or erroneously made, are subject to bid withdrawal
     payments.

### Bid Removal and Bid Withdrawal 

165. In the *Auction No. 72 Comment Public Notice*, the Commission
     proposed bid removal and bid withdrawal procedures.[^177] With
     respect to bid withdrawals, the Commission proposed limiting each
     bidder to withdrawals in no more than two rounds during the course
     of the auction. The round in which withdrawals are used would be at
     each bidder's discretion. The Bureau received no comments on this
     issue. In previous auctions, the Bureau has detected bidder conduct
     that, arguably, may have constituted anti-competitive behavior
     through the use of bid withdrawals. While the Bureau continues to
     recognize the important role that bid withdrawals may play in an
     auction, i.e., reducing risk associated with efforts to secure
     various licenses in combination, the Bureau concludes that, for
     Auction No. 72, adoption of a limit on the use of withdrawals to
     two rounds per bidder is appropriate. By doing so the Bureau
     strikes a reasonable compromise that will allow bidders to use
     withdrawals. We base our decision on this issue upon the Bureau's
     experience with bid withdrawals in prior auctions, including PCS D,
     E and F block, 800 MHz SMR, and other auctions. The Bureau will
     therefore limit the number of rounds in which bidders may place
     withdrawals to two rounds, as previously proposed.

166. *Procedures.* Before the close of a bidding round, a bidder has the
     option of removing any bids placed in that round. By using the
     "remove bids" function in the FCC Auction System, a bidder may
     effectively "unsubmit" any bid placed within that round. A bidder
     removing a bid placed in the same round is not subject to
     withdrawal payments. Removing a bid will affect a bidder's activity
     for the round in which it is removed, i.e., a bid that is removed
     does not count toward bidding activity. These procedures will
     enhance bidder flexibility during the auction, and therefore the
     Bureau adopts them for Auction No. 72.

167. Once a round closes, a bidder may no longer remove a bid. However,
     in later rounds, a bidder may withdraw provisionally winning bids
     from previous rounds using the "withdraw bids" function in the FCC
     Auction System (assuming that the bidder has not already withdrawn
     bids in two previous rounds). A provisionally winning bidder that
     withdraws its provisionally winning bid from a previous round
     during the auction is subject to the bid withdrawal payments
     specified in 47 C.F.R. § 1.2104(g). **Note: Once a withdrawal is
     submitted during a round, that withdrawal cannot be unsubmitted
     even if the round has not yet ended.**

168. The rounds in which a bidder may withdraw its bids will be at the
     bidder's discretion and there will be no limit on the number of
     bids that may be withdrawn in either of these rounds. Withdrawals
     during the auction will be subject to the bid withdrawal payments
     specified in 47 C.F.R. § 1.2104(g). Bidders should note that
     evidence of abuse of the Commission's bid withdrawal procedures
     could result in the denial of the ability to bid on a market.

169. If a provisionally winning bid is withdrawn, the minimum acceptable
     bid amount will equal the amount of the second highest bid received
     for the license, which may be less than, or in the case of tied
     bids, equal to, the amount of the withdrawn bid.[^178] To set the
     additional bid amounts, the second highest bid amount also will be
     used in place of the provisionally winning bid in the formula used
     to calculate additional bid amounts. The Commission will serve as a
     "place holder" provisionally winning bidder on the license until a
     new bid is submitted on that license.

170. *Calculation of Bid Withdrawal Payment.* Generally, the Commission
     imposes payments on bidders that withdraw high bids during the
     course of an auction.[^179] If a bidder withdraws its bid and there
     is no higher bid in the same or subsequent auction(s), the bidder
     that withdrew its bid is responsible for the difference between its
     withdrawn bid and the provisionally winning bid in the same or
     subsequent auction(s).[^180] In the case of multiple bid
     withdrawals on a single license, within the same or subsequent
     auctions(s), the payment for each bid withdrawal will be calculated
     based on the sequence of bid withdrawals and the amounts withdrawn.
     No withdrawal payment will be assessed for a withdrawn bid if
     either the subsequent winning bid or any subsequent intervening
     withdrawn bid, in either the same or subsequent auctions(s), equals
     or exceeds that withdrawn bid. Thus, a bidder that withdraws a bid
     will not be responsible for any withdrawal payments if there is a
     subsequent higher bid in the same or subsequent auction(s).[^181]
     This policy allows bidders most efficiently to allocate their
     resources as well as to evaluate their bidding strategies and
     business plans during an auction while, at the same time,
     maintaining the integrity of the auction process. The Bureau
     retains the discretion to scrutinize multiple bid withdrawals on a
     single license for evidence of anti-competitive strategic behavior
     and take appropriate action when deemed necessary.

171. Section 1.2104(g)(1) of the rules sets forth the payment
     obligations of a bidder that withdraws a high bid on a license
     during the course of an auction, and provides for the assessment of
     interim bid withdrawal payments.[^182] In the *Auction No. 72
     Comment Public Notice*, the Bureau proposed to establish the
     percentage at ten percent (10%) for the Phase II 220 MHz Service
     auction and sought comment on the proposal.

172. The Bureau received no comments on this issue and adopts its
     proposal. The Commission will assess an interim withdrawal payment
     equal to ten percent (10%) of the amount of the withdrawn bids. The
     ten percent (10%) interim payment will be applied toward any final
     bid withdrawal payment that will be assessed after subsequent
     auction of the license. Assessing an interim bid withdrawal payment
     ensures that the Commission receives a minimal withdrawal payment
     pending assessment of any final withdrawal payment. Section
     1.2104(g) provides specific examples showing application of the bid
     withdrawal payment rule.[^183]

### Round Results

173. If limited information procedures described above are in effect,
     limited information about the results of a round will be made
     public after the conclusion of the round.[^184] Specifically, after
     a round closes, the Bureau will make available for each license,
     its current provisionally winning bid amount, the minimum
     acceptable bid amount for the following round, the amounts of all
     bids placed on the license during the round, and whether the
     license is FCC held. The reports will be publicly accessible.
     Moreover, after the auction, the Bureau will make available
     complete reports of all bids placed during each round of the
     auction, including bidder identities.

174. If, however, limited information procedures are not used, more
     information will be provided after each round in the auction. Bids
     placed during a round, including bidder identities, will be made
     public at the conclusion of that round. Specifically, after a round
     closes, the Bureau will compile reports of all bids placed and
     which bidders made them, current provisionally winning bids, new
     minimum acceptable bid amounts, and bidder eligibility status
     (bidding eligibility and activity rule waivers) and will post the
     reports for public access.

### Auction Announcements

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

# POST-AUCTION PROCEDURES

## Down Payments 

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

177. Within ten business days after release of the auction closing
     notice, each winning bidder must submit sufficient funds (in
     addition to its upfront payment) to bring its total amount of money
     on deposit with the Commission for Auction No. 72 to 20 percent of
     the net amount of its winning bids (gross bids less any applicable
     small business or very small business bidding credits).[^185]

## Final Payments

178. Each winning bidder will be required to submit the balance of the
     net amount of its winning bids within 10 business days after the
     deadline for submitting down payments.[^186]

## Long-Form Application (FCC Form 601)

179. Within ten business days after release of the auction closing
     notice, winning bidders must electronically submit a properly
     completed long-form application (FCC Form 601) for each license won
     through Auction No. 72. Winning bidders that are small businesses
     or very small businesses must demonstrate their eligibility for a
     small business or very small business bidding credit.[^187] Further
     filing instructions will be provided to auction winners at the
     close of the auction.

180. The *CSEA/Part 1 Report and Order* modifies the procedure by which
     a consortium that is a winning bidder in Auction No. 72 will apply
     for a license.[^188] In particular, (a) each member or group of
     members of a winning consortium seeking separate licenses will be
     required to file a separate long-form application for its
     respective license(s) and, in the case of a license to be
     partitioned or disaggregated, the member or group filing the
     applicable long-form application shall provide the parties'
     partitioning or disaggregation agreement in its long-form
     application; (b) two or more consortium members seeking to be
     licensed together shall first form a legal business entity; and (c)
     any such entity must meet the applicable eligibility requirements
     in our rules for small business status.[^189] Applicants applying
     as consortia should review the *CSEA/Part 1 Report and Order* in
     detail and monitor any relevant future proceedings to understand
     how the members of the consortia will apply for a license in the
     event they are winning bidders.

## Ownership Disclosure Information Report (FCC Form 602) 

181. At the time it submits its long-form application (FCC Form 601),
     each winning bidder also must comply with the ownership reporting
     requirements as set forth in 47 C.F.R. §§ 1.913, 1.919, and 1.2112.
     An ownership disclosure record is automatically created in ULS for
     any applicant that submits an FCC Form 175. However, winning
     bidders will be required to review and confirm that it is complete
     and accurate as of the date of filing Form 601. Further
     instructions will be provided to winning bidders at the close of
     the auction.

## Tribal Lands Bidding Credit

182. A winning bidder that intends to use its license(s) to deploy
     facilities and provide services to federally recognized tribal
     lands that are unserved by any telecommunications carrier or that
     have a wireline penetration rate equal to or below 85 percent is
     eligible to receive a tribal lands bidding credit as set forth in
     47 C.F.R. §§ 1.2107 and 1.2110(f). A tribal lands bidding credit is
     in addition to, and separate from, any other bidding credit for
     which a winning bidder may qualify.

183. Unlike other bidding credits that are requested prior to the
     auction, a winning bidder applies for the tribal lands bidding
     credit **after** winning the auction when it files its long-form
     application (FCC Form 601). When initially filing the long-form
     application, the winning bidder will be required to advise the
     Commission whether it intends to seek a tribal lands bidding
     credit, for each license won in the auction, by checking the
     designated box(es). After stating its intent to seek a tribal lands
     bidding credit, the applicant will have 180 days from the close of
     the long-form filing window to amend its application to select the
     specific tribal lands to be served and provide the required tribal
     government certifications. Licensees receiving a tribal lands
     bidding credit are subject to performance criteria as set forth in
     47 C.F.R. § 1.2110(f)(3)(vi).[^190]

184. For additional information on the tribal lands bidding credit,
     including how the amount of the credit is calculated, applicants
     should review the Commission's rule making proceeding regarding
     tribal lands bidding credits and related public notices.[^191]
     Relevant documents can be viewed on the Commission's web site by
     going to
     [http://wireless.fcc.gov/auctions](http://wireless.fcc.gov/auctions/default.htm?job=auctions_home)
     and clicking on the **Tribal Land Credits** link.

## Default and Disqualification

185. Any winning bidder that defaults or is disqualified after the close
     of the auction (i.e., fails to remit the required down payment
     within the prescribed period of time, fails to submit a timely
     long-form application, fails to make full payment, or is otherwise
     disqualified) will be subject to the payments described in 47
     C.F.R. § 1.2104(g)(2). The payments include both a deficiency
     payment, equal to the difference between the amount of the bidder's
     bid and the amount of the winning bid the next time a license
     covering the same spectrum is won in an auction, plus an additional
     payment equal to a percentage of the defaulter's bid or of the
     subsequent winning bid, whichever is less. Pursuant to recent
     modifications to the rule governing default payments, the
     percentage of the applicable bid to be assessed as an additional
     payment for defaults in a particular auction is established in
     advance of the auction. Accordingly, in the *Auction No. 72 Comment
     Public Notice*, the Bureau proposed to set the additional default
     payment for the auction of Phase II 220 MHz Service licenses at ten
     percent of the applicable bid. The Bureau sought comment on its
     proposal.

186. No comments were received on this issue. The Bureau therefore
     adopts its proposal and sets the additional default payment for the
     auction of Phase II 220 MHz spectrum licenses at ten percent of the
     applicable bid.

187. Finally, the Bureau notes that in the event of a default, the
     Commission may re-auction the license or offer it to the next
     highest bidder (in descending order) at its final bid amount.[^192]
     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 held by the applicant.[^193]

## Refund of Remaining Upfront Payment Balance 

188. All applicants that submit upfront payments but after the close of
     the auction are not winning bidders for a license in Auction No. 72
     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.

189. Bidders that drop out of the auction completely may be eligible for
     a refund of their upfront payments before the close of the auction.
     Qualified bidders that have exhausted all of their activity rule
     waivers, have no remaining bidding eligibility, and have not
     withdrawn a provisionally winning bid during the auction may also
     be eligible for a refund of their upfront payment before the close
     of the auction. If an applicant has completed the refund
     instructions electronically, the refund will be sent automatically.
     If an applicant has not completed the refund instructions
     electronically, a written request must be submitted for the refund
     and include wire transfer instructions, and FCC Registration Number
     (FRN). Send refund requests to:

Federal Communications Commission

Financial Operations Center

Auctions Accounting Group

Gail Glasser

445 12th Street, SW, Room 1-C864

Washington, DC 20554

190. Bidders are encouraged to file their refund information
     electronically using the **Refund Information** icon found on the
     *Auction Application Manager* page or through the **Wire Transfer
     for Refund Purposes** link available in various locations
     throughout the FCC Auction System, but bidders may also send their
     information by facsimile to the Auctions Accounting Group at (202)
     418-2843. Once the information has been approved, a refund will be
     sent to the party identified in the refund information.

191. Following the close of the auction, the Commission may refund
     upfront monies on deposit that exceed the required total of
     payments owed by winning bidders. Such refunds will be made to the
     payer of record as identified on the FCC Form 159, provided the
     necessary refund request and wire transfer instructions have been
     received.

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

# Contacts

192. List of Commission staff contacts:

## Media Contact  {#media-contact .unnumbered}

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

## Auctions and Spectrum Access Division  {#auctions-and-spectrum-access-division .unnumbered}

> For legal questions: Howard Davenport at (202) 418-0660
>
> For general auction questions: Debbie Smith or Barbara Sibert at (717)
> 338-2868

## Mobility Division  {#mobility-division .unnumbered}

> For legal and technical questions:  Allen Barna (legal) at (202)
> 418-0620 or Gary Devlin (technical) at (717) 338-2618
>
> For licensing questions:  Bettye Woodward at (202) 418-0620
>
> To request materials in accessible formats (Braille, large print,
> electronic files, audio format) for people with disabilities, send an
> e-mail to <fcc504@fcc.gov> or call the Consumer and Governmental
> Affairs Bureau at (202) 418-0530 or (202) 418-0432 (TTY).

\-- FCC \--

# Attachment A {#attachment-a .unnumbered}

**Auction No. 72 -- Phase II 220 MHz Service**

**DA07-514**

This page was intentionally inserted as a placeholder for Attachment A,
which is available as separate files.

# attachment B {#attachment-b .unnumbered}

**FCC AUCTION NO. 72**

**SEMINAR REGISTRATION FORM**

The FCC will sponsor a one-day seminar for Auction No. 72 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 Auction System.

The seminar will be held:

Wednesday, April 11, 2007

Federal Communications Commission

445 12th Street, SW

Washington, DC 20554

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

Seminar 10:30 a.m. - 2:00 p.m.

If hotel accommodations are needed, please contact

the Auctions staff at (717) 338-2868 for a list of hotels in the area.

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

To register, please provide the information listed below no later than

Monday, April 9, 2007, by either

E-mail: <Auchelp@fcc.gov>

Facsimile: 717-338-2850

Phone: 717-338-2868

Note: The seminar will also be available via webcast and may be viewed
by clicking on the Auction Seminar link on the Auction No. 72 web page,
[http://wireless.fcc.gov/auctions/72/](http://wireless.fcc.gov/auctions/default.htm?job=auction_summary&id=72).
For further information about accessing FCC webcasts, please visit
<http://www.fcc.gov/realaudio/>.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

I/We will attend the Auction No. 72 Seminar, scheduled for Wednesday,
April 11, 2007.

Name of attendee:

Name of attendee:

Company name:

Company address:

Phone: Fax:

# ATTACHMENT C {#attachment-c .unnumbered}

**ELECTRONIC FILING AND REVIEW**

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

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

An applicant must submit its short-form application (FCC Form 175)
electronically, via the FCC Auction System. **The FCC Form 175
applications must be submitted and confirmed prior to 6:00 p.m. ET on
Friday, April 20, 2007.** Late applications or unconfirmed submissions
of electronic data will not be accepted.

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

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

## Software Requirements

Applicants must meet the following minimum software requirements:

-   Web Browser:

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

    or

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

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

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

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

## Logging On

To submit an FCC Form 175 application electronically via the Internet,
start your web browser and point it to either <http://auctions.fcc.gov/>
(primary location) or <http://auctions2.fcc.gov/> (secondary location).
Once on the *FCC* *Integrated Spectrum Auction System* page, an
applicant may log in to create an FCC Form 175 application using its FCC
Registration Number (FRN) and password.

## Application Filing Instructions

The on-line FCC Form 175 requests information needed to determine
whether an applicant qualifies to participate in competitive bidding for
Commission licenses or construction permits.[^194] Pursuant to Section
1.2105(a), FCC Form 175 must be submitted electronically. Applicants
must submit required information as entries in the data fields of the
electronic FCC Form 175 whenever a data field is available for that
information. Attachments should not be used to provide information that
can be supplied within the data fields of the electronic FCC Form 175.

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

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

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

### Applicant Information

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

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

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

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

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

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

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

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

• the applicant's preference for electronic or telephonic bidding

• whether the applicant claims eligibility for certain types of bidding
credits and the amount claimed.[^195]

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

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

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

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

-   Applicants must identify at least one authorized bidder. While
    applicants may change their authorized bidders at a later date, in
    Auction No. 72 only those bidders listed on the FCC Form 175 will be
    authorized to place bids for the applicant during the auction.

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

### License Selection

The *License Selection* screens make up the second series of screens in
FCC Form 175. In the *License Selection* screens, the applicant will
identify the items on which the applicant may wish to bid during the
auction. Applicants are not obligated to bid on all licenses selected;
however, applicants will not be able to bid on licenses that they have
not selected on the FCC Form 175.[^196] Be advised that there is no
opportunity to change this list once the short-form filing deadline
passes on April 20, 2007.

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

The License Selection screen contains a listing of all available
licenses in the auction. Applicants can navigate within the License
Selection screen by selecting the individual page links or the
"Previous" and "Next" buttons above and below the list of available
licenses. In addition, applicants can use pre-defined filters to narrow
down the list of licenses for which they wish to select and save.
Specifically, licenses can be selected by either: 1) clicking the check
box next to the license name, then selecting the "Save Selected Items"
button; 2) clicking the "Save all Items" button to save all available
licenses; or by 3) clicking the "Save All Filtered Items" button after
applying a filter. Once the applicant has successfully saved a license,
the word "Saved" will appear next to the license name to confirm that it
has been saved with the application.

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

Licenses can be removed by either: 1) clicking the check box (to
uncheck) next to a previously saved license, then selecting the "Remove
Selected Items" button; 2) clicking the "Remove all Items" button to
remove all previously saved licenses; or by 3) clicking the "Remove All
Filtered Items" button after applying a filter. Removed licenses will
not have the word "Saved" next to the license name.

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

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

### Agreements

The *Agreements* screens are the third series of screens in FCC Form
175. In the *Agreements* screens, applicants will provide information
regarding auction-related agreements subject to disclosure under the
Commission's rules.[^197]

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

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

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

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

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

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

-   Modifying agreement identifiers by clicking on them.

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

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

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

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

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

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

### Ownership

The *Ownership* screens are the fourth series of screens in the FCC Form
175. In the *Ownership* screens, applicants will provide information
regarding parties with ownership interests in the applicant that must be
disclosed pursuant to Commission rules.[^198] Commission rules also
require the disclosure and description of FCC-regulated businesses that
are owned by the applicant and parties with certain ownership interests
in the applicant.[^199] In addition, if the applicant has claimed
eligibility for bidding credits based on revenues attributable to the
applicant and related parties, the applicant will provide information
regarding revenues in the *Ownership* screens.

#### Information Already on File with the Commission

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

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

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

**• Sections 1.2105 and 1.2112(a) of the Commission's rules lists the
interest holders in the applicant that must be disclosed in FCC Form
175.**[^200]

**• Section 1.2112(a)(7) lists the FCC-regulated business entities, or
applicants for an FCC license, that must be disclosed in FCC Form
175.**[^201]

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

-   If an application includes one or more disclosable interest holders
    with an indirect ownership in the applicant,[^202] the application
    must include an attachment regarding the relationship between the
    indirect interest holder(s) and the applicant. The attachment should
    provide an overview of the ownership chain that links the indirect
    owners to the applicant, *e.g.*, indirect owner X owns 50% of
    holding company Y; indirect owner Z owns 50% of holding company Y;
    and holding company Y owns 100% of the applicant.[^203] One
    attachment connecting all indirect owners to the applicant is
    sufficient; a separate attachment for each indirect owner is not
    required. An overview of the ownership connections is sufficient;
    the attachment does not need to duplicate all the detailed
    information already provided in the FCC Form 175.

-   The "Percent of Interest Held in Applicant" should reflect the
    disclosable interest holder's aggregate ownership interest in the
    applicant. In some cases, *e.g.*, circumstances where there is joint
    ownership or indirect ownership resulting in different owners
    sharing the same ownership interests, the sum of all the percentages
    held by disclosable interest holders may exceed 100%. In other
    cases, *e.g.*, directors and officers of an entity seeking
    revenue-based bidding credits,[^204] a disclosable interest holder
    may have a 0% percent of interest held in the applicant.

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

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

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

#### View/Edit Ownership Disclosure Information

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

Existing ownership information is divided into three groups:

-   Disclosable Interest Holders of this Applicant

-   FCC Regulated Businesses of this Applicant

-   Affiliates of this Applicant

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

#### Bidding Credit Revenue Information

If the applicant has claimed eligibility for a bidding credit based on
revenues attributable to the applicant and related parties, the first
*Ownership* screen will request relevant information regarding the
applicant's revenues. The subsequent screen will request which of the
two sources of financial information authorized by Section 1.2110 (n)
the applicant used for the revenue information.[^205]

Applicants claiming eligibility for a bidding credit based on revenues
are required to provide revenue information separately and in the
aggregate for the applicant, its affiliates, its controlling interests,
and affiliates of its controlling interests. In addition, if the
applicant is a consortium of small businesses, the information must be
provided with respect to each member comprising the consortium.[^206]
The Commission's definition of an affiliate of the applicant encompasses
both controlling interests of the applicant and affiliates of
controlling interests of the applicant.[^207] FCC Form 175 screens
request information regarding the applicant, disclosable interest
holders, and affiliates of the applicant. Accordingly, information that
Commission rules require be disclosed regarding controlling interests
and affiliates of controlling interests that are not disclosable
interest holders should be disclosed in screens requesting information
regarding affiliates of the applicant.

Following the first two screens, the subsequent screen will be similar
to the initial *Ownership* screen described above, with one addition. In
addition to being able to add disclosable interest holders and
FCC-regulated business, applicants that claim eligibility for bidding
credits based on revenues also will have an option to add information
regarding affiliates, including their revenues, that are not disclosable
interest holders.[^208]

Applicants that claim eligibility based on revenues attributable to the
applicant and related parties will be requested to provide revenue
information for each disclosable interest holder. With respect to
disclosable interest holders that are affiliates or controlling
interests of the applicant, applicants will fill out two screens similar
to the two described above with respect to the applicant, *i.e.*, one
screen requesting the relevant information and a second screen regarding
the source of the revenue information.

Some disclosable interest holders that must be listed in FCC Form 175
pursuant to Section 1.2112(a) may not be affiliates of the applicant,
controlling interests of the applicant, or affiliates of the applicant's
controlling interests.[^209] Revenues for such disclosable interest
holders are not attributable to the applicant. Consequently, applicants
may not need to provide revenue information for every disclosable
interest holder. In such case, an applicant may indicate on the first
screen requesting revenue information for that disclosable interest
holder that no revenue information is required. To report that no
revenue information needs to be disclosed, check the box indicating that
the disclosable interest holder is **not** an affiliate or a controlling
interest within the meaning of the Commission's rules.

*Claiming Attribution Exemption for Eligible Rural Telephone
Cooperatives*. An applicant will be exempt from attribution of gross
revenues of an affiliate or a controlling interest in the applicant if
such entity meets all of the conditions set forth in 47 C.F.R. §
1.2110(b)(3)(iii) of the Commission's rules. When seeking to demonstrate
that the applicant (or its controlling interest) is an eligible rural
telephone cooperative pursuant to 47 C.F.R. § 1.2110(b)(3)(iii), you
should not check the box indicating that the disclosable interest holder
is **not** an affiliate or a controlling interest within the meaning of
the Commission's rules. You should then indicate that the affiliate or
controlling interest has zero gross revenues. You should also provide in
an attachment a statement that the applicant, affiliate and/or
controlling interest is an eligible rural telephone cooperative within
the meaning of 47 C.F.R. § 1.2110(b)(3)(iii). In that attachment, you
may also provide any additional information as may be required to
demonstrate eligibility for the exemption from the attribution
rule.[^210]

In addition, an applicant may have affiliates that are not disclosable
interest holders. To disclose information regarding such affiliates and
their revenues required pursuant to Commission rule,[^211] applicants
can click on the **ADD AFFILIATE** button on the initial *Ownership*
screen. Applicants also can click on the **Add Affiliate to Applicant**
link on the *View/Edit Ownership Disclosure Information* screen to
disclose information regarding affiliates and their revenues.

Applicants providing information regarding an affiliate must provide the
name of the affiliate and the affiliate's principal business. To
simplify filling out FCC Form 175, applicants can click on the **select
business(es) already submitted** link when entering an affiliate that
previously was entered as an FCC-regulated business for the applicant or
a Disclosable Interest Holder. Applicants will fill out two screens
similar to the two described above with respect to the affiliate,
*i.e.*, one screen requesting the relevant information and a second
screen regarding the source of the revenue information.

Finally, applicants claiming eligibility for bidding credits based on
revenues attributable to the applicant and related parties will be asked
to confirm that they have provided information with respect to all of
the relevant parties, *i.e.*, the applicant; each of the applicant's
officers and directors; each of the applicant's other controlling
interests; each of the applicant's affiliates; and for each affiliate of
the applicant's controlling interests, including its officers and
directors.[^212]

### Summary

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

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

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

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

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

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

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

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

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

### Attaching Additional Information

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

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

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

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

### Certify and Submit

The *Certify and Submit* screens are the sixth and final series of
screens in FCC Form 175. In the *Certify and Submit* screens, applicants
will provide certifications required of all participants in the
Commission's competitive bidding processes.[^213]

The first *Certify and Submit* screen requires each applicant to
indicate whether the applicant, any affiliate, any controlling interest,
and any affiliate of a controlling interest have ever been in default on
any Commission license or have ever been delinquent on any non-tax debt
owed to any Federal agency.[^214] Applicants associated with a relevant
entity that has been in default or delinquent may participate in an
auction, if otherwise qualified. However, such applicants must submit an
upfront payment equal to 50 percent more than otherwise required.[^215]

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

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.[^216] Applicants are reminded
that submission of an FCC Form 175 application constitutes a
representation by the certifying official that he or she is an
authorized representative of the applicant, has read the form's
instructions and certifications, and that the contents of the
application, its certifications and any attachments are true and
correct. (Moreover, as noted above, a change of certifying official is
considered a major change of the short-form application and will not be
permitted after the short-form deadline.) Submission of a false
certification to the Commission may result in penalties, including
monetary forfeitures, license forfeitures, ineligibility to participate
in future auctions, and/or criminal prosecution.

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

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

FCC Form 175 applications must be submitted and confirmed prior to 6:00
p.m. ET on Friday, April 20, 2007. Late applications or unconfirmed
submissions of electronic data will not be accepted.

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

#### Withdrawing an Application

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

#### Updating Existing Applications

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

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

After the short-form application filing deadline (6:00 p.m. ET April 20,
2007), applicants may make only minor changes to their applications.
Applicants will not be permitted to make major modifications to their
applications (*e.g*., change their license selections, change the
certifying official, change control of the applicant, or increase its
bidding credit).[^217]

### Upfront Payment Calculator and Form 159 

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

### Refund of Upfront Payment 

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

## Application Review

Once the FCC has completed the short-form application review process,
you can view FCC Form 175 applications electronically by searching for
them in the FCC database. Start your web browser and point it to either
[***http://auctions.fcc.gov/***](http://auctions.fcc.gov/) (primary
location) or
[***http://auctions2.fcc.gov/***](http://auctions2.fcc.gov/) (secondary
location). Click the **Auction Applications** link in the Public Access
area on the *FCC Integrated Spectrum Auction System* page to start your
search.

## Technical Support

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

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

*Paperwork Reduction Act Approval*:* * The FCC Form 175 was assigned
control number 3060-0600 and was approved by the Office of Management
and Budget on November 1, 2006.

# ATTACHMENT D {#attachment-d .unnumbered}

**AUCTION-SPECIFIC INSTRUCTIONS FOR**

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

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

The following information supplements the standard instructions for FCC
Form 159 (Revised 2/03), and is provided to help ensure correct
completion of FCC Form 159 for upfront payments for Auction No. 72.
Applicants need to complete FCC Form 159 carefully, because:

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

```{=html}
<!-- -->
```
-   **Lack of consistency between information provided in FCC Form 159
    (Revised 2/03), FCC Form 175, long-form application, and
    correspondence about an application may cause processing delays.**

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

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

Block

Number Required Information

> 1 LOCKBOX \# - Enter "358415"
>
> 2 Payer Name - Enter the name of the person or company making the
> payment.
>
> If the applicant itself is the payer, this entry would be the same as
> FCC Form 175.

3.  Total Amount Paid - Enter the amount of the upfront payment
    associated with the

> FCC Form 159 (Revised 2/03).

8.  Street Address, City, State, ZIP Code - Enter the street mailing
    address (**not Post Office box number**) where mail should be sent
    to the payer. If the applicant is the payer, these entries would be
    the same as FCC Form 175 from the Applicant Information section.

> 9 Daytime Telephone Number - Enter the telephone number of a person
> knowledgeable about this upfront payment.

10. Country Code - For addresses outside the United States, enter the
    appropriate postal country code (available from the Mailing
    Requirements Department of the U.S. Postal Service).

> 11 Payer FRN - Enter the payer's ten-digit FCC Registration Number
> (FRN) registered in the Commission Registration System (CORES).
>
> 21 Applicant FRN (Complete only if applicant is different than payer.)
> -- Enter the applicant's ten-digit FCC Registration Number (FRN)
> registered in the Commission Registration System (CORES).
>
> 24A Payment Type Code - Enter "A72U"
>
> 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 "72" (indicating Auction No. 72).

NOTES:

-   Do not use Remittance Advice (Continuation Sheet), FCC Form 159-C,
    for upfront payments.

-   If applicant is different from the payer, complete blocks 13 through
    21 for the applicant, using the same information shown on FCC
    Form 175. Otherwise leave them blank.

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

**[Winning Bidder Requirements, Down Payments and Final
Payments]{.underline}**

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

# ATTACHMENT E {#attachment-e .unnumbered}

**FORMULAS TO DETERMINE MINIMUM ACCEPTABLE BIDS**

A~i~ = (C \* B~i~) + ((1-C) \* A~i-1~)

I~i+1~ = smaller of ((1 + A~i~) \* N) and M

X ~i+1~ = I~i+1~ \* Y~i~

where

> A~i~ = activity index for the current round (round i)
>
> C = activity weight factor
>
> B~i~ = number of bidders submitting bids on the licenses in the
> current round (round i)
>
> A~i-1~ = activity index from previous round (round i-1), A~0~ is 0
>
> I~i+1~ = additional percentage for the next round (round i+1)
>
> N = minimum additional percentage or floor
>
> M = maximum additional percentage or ceiling
>
> X~i+1~ = additional dollar amount
>
> Y~i~ = provisionally winning bid amount from the current round

######## Examples {#examples .unnumbered}

C=0.5, N = 0.1, M = 0.2

[Round 1 (1 bidder submitting bids, provisionally winning bid =
\$1,000,000)]{.underline}

1\. Calculation of additional percentage for round 2:

A~1~ = (0.5 \* 1) + (0.5 \* 0) = 0.5

I~2~ = The smaller of \[((1 + 0.5) \* 0.1) = 0.15\] and 0.2 (the maximum
additional percentage)

= 0.15

2\. Calculation of dollar amount associated with the additional
percentage for round 2 (using I~2~ from above):

X~2~ = 0.15 \* \$1,000,000 = \$150,000

3\. Minimum acceptable bid amount for round 2 = \$1,150,000

[Round 2 (3 bidders submitting bids, provisionally winning bid =
\$2,000,000)]{.underline}

1\. Calculation of additional percentage for round 3:

A~2~ = (0.5 \* 3) + (0.5 \* 1) = 2

I~3~ = The smaller of \[((1 + 2) \* 0.1) = 0.3\] and 0.2 (the maximum
additional percentage)

= 0.02

2\. Calculation of dollar amount associated with the additional
percentage for round 3 (using I~3~ from above):

X~3~ = 0.2 \* \$2,000,000 = \$400,000

3\. Minimum acceptable bid amount for round 3 = \$2,400,000

[Round 3 (1 bidder submitting bids, provisionally winning bid =
\$2,400,000)]{.underline}

1\. Calculation of additional percentage for round 4:

A~3~ = (0.5 \* 1) + (0.5 \* 2) = 1.5

I~4~ = The smaller of \[((1 + 1.5) \* 0.1) = 0.25\] and 0.2 (the maximum
additional percentage)

= 0.2

2\. Calculation of dollar amount associated with the additional
percentage for round 4 (using I~4~ from above):

X~4~ = 0.2 \* \$2,400,000 = \$480,000

3\. Minimum acceptable bid amount for round 4 = \$2,880,000

# ATTACHMENT F {#attachment-f .unnumbered}

**SUMMARY LISTING OF DOCUMENTS ADDRESSING**

**APPLICATION OF THE ANTI‑COLLUSION RULE**

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

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

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

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

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

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

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

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

Amendment of Part 1 of the Commission's Rules -- Competitive Bidding
Procedures, WT Docket No. 97‑82, *Third Report and Order and Second
Further Notice of Proposed Rule Making,* 13 FCC Rcd 374, 463‑469 ¶¶
155-166 (1997).

Application of US West Communications, Inc., *Notice of Apparent
Liability for Forfeiture,* 13 FCC Rcd 8286 (1998); Notice of Apparent
Liability for Forfeiture of US West Communications, Inc., *Order*, 14
FCC Rcd 8816 (1999).

Application of Western PCS BTA I Corp., *Notice of Apparent Liability
for Forfeiture,* 13 FCC Rcd 8305 (1998); Notice of Apparent Liability
for Forfeiture of Western PCS BTA 1 Corp., *Memorandum Opinion and
Order*, 14 FCC Rcd 21571, 21577-78 ¶ 20 (1999).

Amendment of Part 1 of the Commission's Rules -- Competitive Bidding
Procedures, WT Docket No. 97-82, *Seventh Report and Order*, 16 FCC Rcd
17546 (2001).

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

Amendment of Parts 21 and 74 of the Commission's Rules with Regard to
Filing Procedures in the Multipoint Distribution Service and in the
Instructional Television Fixed Service, MM Docket No. 94-13, *Order,* 11
FCC Rcd 9655 (Wireless Telecom. Bur. 1995).

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

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

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

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

**[Public Notices]{.underline}**

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

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

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

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

**[Letters from the Office of General Counsel, the Wireless
Telecommunications Bureau and the Media Bureau]{.underline}**

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

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

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

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

Letter to Jonathan D. Blake from Kathleen O'Brien Ham, 10 FCC Rcd 13783
(Auc. Div. 1995).

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

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

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

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

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

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

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

**[Enforcement Bureau Decisions]{.underline}**

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

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

**[Civil Actions Initiated by U.S. Department of Justice]{.underline}**

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

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

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

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

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

**[How to Obtain Copies of the Anti-Collusion Decisions]{.underline}**

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

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

Additionally, all of the documents can be ordered in hard copy for a fee
from the Commission's duplicating contractor, Best Copy and Printing,
Inc., 445 12th Street, SW, Room CY-B402, Washington, DC 20554, (800)
378-3160 (telephone) or http://www.bcpiweb.com.

[^1]: For some of the orders and related rules associated with the Phase
    II 220 MHz service auction, *see* In the Matter of Amendment of Part
    90 of the Commission's Rules to Provide for the Use of the 220-222
    MHz Band by the Private Land Mobile Radio Service, Implementation of
    Sections 3(n) and 332 of the Communications Act, Regulatory
    Treatment of Mobile Services, Implementation of Section 309(j) of
    the Communications Act -- Competitive Bidding, *Third Report and
    Order and Fifth Notice of Proposed Rulemaking,* 12 FCC Rcd
    10943(1997), *modified on recon.*, 13 FCC Rcd 14569 (1998) *("220
    MHz Third R&O")*; In the Matter of Amendment of Part 90 of the
    Commission's Rules to Provide For the Use of the 220-222 MHz Band by
    the Private Land Mobile Radio Service, *Fourth Report and Order*, 12
    FCC Rcd 13453 (1997) *("220 MHz Fourth R&O")*; In the Matter of
    Amendment of Part 90 of the Commission's Rules to Provide for the
    Use of the 220-222 MHz Band by the Private Land Mobile Radio
    Service, Implementation of Sections 3(n) and 332 of the
    Communications Act, Regulatory Treatment of Mobile
    Services-Geographic Partitioning and Spectrum Disaggregation for the
    220-222 MHz Service, *Fifth Report and Order,* 13 FCC Rcd 24615
    (1998) *("220 MHz Fifth R&O")* and *Memorandum Opinion and Order*,
    15 FCC Rcd 5919 (2000), *vacated and superseded by Memorandum
    Opinion and Order,* 15 Rcd 13924 (2000) ("*220 MHz 2000 MO&O"*). In
    addition, in 2004, the Commission released an order making the
    substantial service standard available to those 220 MHz Phase II
    licensees that were not already authorized to use it to meet their
    construction requirements. *See* In the Matter of Facilitating the
    Provision of Spectrum-Based Services to Rural Areas and Promoting
    Opportunities for Rural Telephone Companies to Provide
    Spectrum-Based Services, *Report and Order*, 19 FCC Rcd 19078
    (2004), *erratum*, 19 FCC Rcd 24084 (2004) ("*Rural Services
    Order"*).

[^2]: 47 U.S.C. § 309(j)(3)(E)(i)(requirement to seek comment on
    proposed auction procedures); *see also* 47 U.S.C.
    § 309(j)(4)(F)(authorization to prescribe reserve price or minimum
    bid); 47 C.F.R. § 1.2104(c) and (d).

[^3]: "Auction of Phase II 220 MHz Spectrum Scheduled for June 20, 2007;
    Comment Sought on Competitive Bidding Procedures For Auction No.
    72," *Public Notice*, DA 06-2437 (rel. Dec.12, 2006) ("*Auction No.
    72 Comment Public Notice*").

[^4]: Skybridge Spectrum Foundation (Skybridge) submitted comments
    (filed Dec. 29, 2006) and an *erratum* (filed Jan. 1, 2007).

[^5]: *Auction No. 72 Comment Public Notice* at ¶¶ 7-8. This type of
    auction offers every license for bid at the same time and consists
    of successive bidding rounds in which eligible bidders may place
    bids on individual licenses. A bidder may bid on, and potentially
    win, any number of licenses. Bidding generally remains open on all
    licenses until bidding stops on every license.

[^6]: Under the Commission's package bidding format, bidders would be
    able to place bids on any groups of licenses they wish to win
    together, with the result that they win either all the licenses in a
    group or none of them.

[^7]: Section IV.A.1. "Simultaneous Multiple Round Auction," below*.*

[^8]: *Id*.

[^9]: *Auction No. 72 Comment Public Notice* at ¶ 9.

[^10]: Auction of Advanced Wireless Services Licenses Scheduled for June
    29, 2006, Notice and Filing Requirement, Minimum Opening Bids,
    Upfront Payment and Other Procedures for Auction No. 66, *Public
    Notice*, 21 FCC Rcd 4562, 4565, 4600-05 ¶¶ 4-5, 140-157 (2006)
    ("*Auction No. 66 Procedures Public Notice*").

[^11]: We anticipate announcing the information disclosure procedures to
    be used at or about the time that we release a public notice
    announcing the applicants that are qualified to participate in the
    bidding.

[^12]: The list will identify the Auction No. 72 applicant(s) by name
    but will not list the license selections of the Auction No. 72
    applicant(s). As in past auctions, additional information regarding
    applicants in Auction No. 72 that is needed to comply with section
    1.2105(c), *e.g.*, the identities of controlling interest in the
    applicant and of ownership interests greater than ten percent (10%),
    will be available through the publicly accessible on-line short-form
    application database. *See* below at ¶¶ 111-116*.*

[^13]: Auction No. 18, "Phase II 220 MHz Service Auction Closes, Winning
    Bidders in the Auction of 908 Phase II 220 MHz Service Licenses,"
    *Public Notice*, 14 FCC Rcd 605 (1998) ("*Auction No. 18 Winning
    Bidders' Public Notice*"); Auction 24, "Phase II 220 MHz Service
    Spectrum Auction Closes, Winning Bidders in the Auction of 225
    Licenses in the Phase II 220 MHz Service," *Public Notice*, 14 FCC
    Rcd 11218 (1999) ("*Auction No. 24 Winning Bidders' Public
    Notice*"); Auction No. 43 "Multi-Radio Service Auction Closes,
    Winning Bidders Announced," *Public Notice*, 17 FCC Rcd 1446 (2002)
    ("*Auction No. 43 Winning Bidders' Public Notice*").

[^14]: Amendment of Part 90 of the Commission's Rules to Provide for the
    Use of the 220-222 MHz Band by the Private Land Mobile Radio
    Service, *Third Report and Order and Fifth Notice of Proposed
    Rulemaking,* FCC 97-57, 12 FCC Rcd 10943 (1997) ("220 MHz Third
    Report and Order").

[^15]: Section 90.721(b) of the Commission's rules, 47 C.F.R. §
    90.721(b). In this context, non-Government applicants are those
    applying to use spectrum for non-Federal Government operations.
    *See* In the Matter of Amendment of Part 90 of the Commission's
    Rules to Provide For the Use of the 220-222 MHz Band by the Private
    Land Mobile Radio Services, PR Docket No. 89-522, *Report and
    Order*, 6 FCC Rcd 2356, 2356-2357 n.5 (1991), and *Third Report and
    Order*, 12 FCC Rcd 10943, 11004 (1997).

[^16]: 47 C.F.R. Part 1, Subpart Q. Prospective applicants are also
    encouraged to review the Commission's decisions that establish
    competitive bidding rules and policies, including policies governing
    benefits extended to designated entities (i.e., small businesses,
    rural telephone companies, and businesses owned by women and
    minorities). *See*, *e.g*., Implementation of the Commercial
    Spectrum Enhancement Act and Modernization of the Commission's
    Competitive Bidding Rules and Procedures, WT Docket No. 05-211,
    *Report and Order,* 21 FCC Rcd 891 (2006) ("*CSEA/Part 1 Report and
    Order*"), petitions for reconsideration pending; Implementation of
    the Commercial Spectrum Enhancement Act and Modernization of the
    Commission's Competitive Bidding Rules and Procedures, WT Docket No.
    05-211, *Second Report and Order and Second Further Notice of
    Proposed Rulemaking*, 21 FCC Rcd 4753 (2006) ("*CSEA/Part 1 Second
    Report and Order* and *CSEA/Part 1 Designated Entity Second
    FNPRM*"), petitions for reconsideration pending; Implementation of
    the Commercial Spectrum Enhancement Act and Modernization of the
    Commission's Competitive Bidding Rules and Procedures, WT Docket No.
    05-211, *Order on Reconsideration of the Second Report and Order*,
    21 FCC Rcd 6703 (2006), petition for reconsideration pending.

[^17]: *See*, *e.g.*, Amendment of Part 1 of the Commission's Rules ---
    Competitive Bidding Procedures, *Second Report and Order,* 9 FCC Rcd
    2348 (1994) (*Competitive Bidding Second Report and Order*);
    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) (modified by Erratum,
    DA 00-2475 (rel. Nov. 3, 2000)) ("*Part 1 Fifth Report and Order*");
    Amendment of Part 1 of the Commission's Rules --- Competitive
    Bidding Procedures, *Seventh Report and Order*, 16 FCC Rcd 17546
    (2001) ("*Part 1 Seventh Report and Order*") (amending the
    anti-collusion rule, which is codified at 47 C.F.R. §1.2105(c));
    Amendment of Part 1 of the Commission's Rules --- Competitive
    Bidding Procedures, *Eighth Report and Order*, 17 FCC Rcd 2962
    (2002) (amending Section 1.2110 of the Commission's rules); *Second
    Order on Reconsideration of the Fifth Report and Order*, 20 FCC Rcd
    1942 (2005) ("*Second Order on Reconsideration of the Fifth Report
    and Order*") (further amending Section 1.2110 to exempt the gross
    revenues of the affiliates of a rural telephone cooperative's
    officers and directors from attribution to the applicant and
    adopting other modifications to the competitive bidding rules);
    *CSEA/Part 1 Report and Order*.

[^18]: When ordering documents from BCPI, please provide the appropriate
    FCC document number (for example, DA 06-2437 for the *Auction No. 72
    Comment Public Notice*, or DA 07-514 for this Public Notice).

[^19]: 47 C.F.R. §§ 1.2105(a)(2)(viii), 1.2105(c)(1). *See also* *Part 1
    Seventh Report and Order,* 16 FCC Rcd 17546 (2001); *Part 1 Fifth
    Report and Order*, 15 FCC Rcd at 15297-98 ¶¶ 7-8.

[^20]: *See*, *e.g.*, "Wireless Telecommunications Bureau Provides
    Guidance on the Anti-Collusion Rule for D, E. and F Block Bidders,"
    *Public Notice*, DA 96-1460 (rel. August 28, 1996).

[^21]: 47 C.F.R. § 1.2105(c)(1).

[^22]: *See, e.g.*, Star Wireless, LLC, *Forfeiture Order*, 19 FCC Rcd
    18626, 18628 ¶ 4, n.19 (EB 2004), application for review pending
    (collusion rule applies to applicants regardless of whether they are
    qualified to bid); Letter to Robert Pettit, Esquire, from Margaret
    W. Wiener, Chief, Auctions and Industry Analysis Division, Wireless
    Telecommunications Bureau, Federal Communications Commission, 16 FCC
    Rcd 10080 (WTB 2000) (declining to exempt an applicant's controlling
    interest from coverage by the anti-collusion rule, even though the
    applicant never made an upfront payment for the auction and was not
    listed as a qualified bidder).

[^23]: Section IV.A.2. "Information Available to Bidders Before and
    During the Auction," below, especially ¶¶ 111-116.

[^24]: 47 C.F.R. § 1.2105(c)(7)(i).

[^25]: *Part 1 Seventh Report and Order*, 16 FCC Rcd at 17549-50 ¶ 6.

[^26]: Application of Nevada Wireless for a License to Provide 800 MHz
    Specialized Mobile Radio Service in the Farmington, NM-CO Economic
    Area (EA-155) Frequency Band A, *Memorandum Opinion and Order,* 13
    FCC Rcd 11973, 11977 ¶ 11 (1998) ("*Nevada Wireless Order*").

[^27]: *Id*.

[^28]: *See, e.g., Letter to Colby M. May, TCCSA, Inc., d/b/a Trinity
    Broadcasting Network, from Barbara A. Kreisman, Chief, Video
    Division, Media Bureau, and Margaret W. Wiener, Chief, Auctions and
    Spectrum Access Division, Wireless Telecommunications Bureau*, 20
    FCC Rcd 14648 (WTB/MB 2005) (finding apparent violation of
    anti-collusion rule where applicants with mutually exclusive
    applications reported sharing same individual as an officer and
    director and reported having no bidding agreement).

[^29]: Mercury PCS II, LLC, *Notice of Apparent Liability for
    Forfeiture*, 12 FCC Rcd 17970, 17976 ¶ 12 (1997).

[^30]: Mercury PCS II, LLC, *Memorandum Opinion and Order*, 13 FCC Rcd
    23755, 23760 ¶ 11 (1998).

[^31]: Implementation of Section 309(j) of the Communications Act --
    Competitive Bidding, PP Docket No. 93-253, *Memorandum Opinion and*
    *Order*, 9 FCC Rcd 7684, 7689 ¶ 12 (1994).

[^32]: Thus, communication by an applicant to another applicant for one
    or more of the same licenses of the applicant's license selections
    on its short-form application, or of the fact that the applicant
    does or does not hold provisionally winning bids on particular
    licenses, may well violate the anti-collusion rule.

[^33]: For example, where limited information disclosure procedures are
    in place, as in this auction, a qualified bidder's statement to the
    press that it has lost bidding eligibility and stopped bidding in
    the auction could give rise to a finding of an anti-collusion rule
    violation. *Cf.* Wireless Telecommunications Bureau Responds to
    Questions About the Local Multipoint Distribution Service Auction,
    *Public Notice*, 13 FCC Rcd 341, 347-8 (1998) ("Public statements
    can give rise to collusion concerns. This has occurred in the
    antitrust context, where certain public statements can support other
    evidence which tends to indicate the existence of a conspiracy.").

[^34]: 47 C.F.R. § 1.2105(c)(7)(i).

[^35]: Wireless Telecommunications Bureau Clarifies Spectrum Auction
    Anti-Collusion Rules, *Public Notice*, 11 FCC Rcd 9645 (1995)
    ("*Anti-Collusion Public Notice*").

[^36]: *Nevada Wireless Order*, 13 FCC Rcd at 11978 ¶ 13.

[^37]: Implementation of Section 309(j) of the Communications Act --
    Competitive Bidding, PP Docket No. 93-253, *Memorandum Opinion and
    Order*, 9 FCC Rcd 7684, 7689 ¶ 12 (1994).

[^38]: 47 C.F.R. §§ 1.2105(c), 1.2107(d), and 1.2109(d).

[^39]: Amendment of Part 1 of the Commission\'s Rules -- Competitive
    Bidding Procedures, WT Docket No. 97-82, *Third Further Notice of
    Proposed Rule Making*, 14 FCC Rcd 21558, 21560 ¶ 4 and n. 4 (1999)
    *citing* Implementation of Section 309(j) of the Communications Act
    -- Competitive Bidding, PP Docket No. 93-253, *Memorandum Opinion
    and* Order, 9 FCC Rcd 7684, 7689 ¶ 12 (1994) ("\[W\]e wish to
    emphasize that all applicants and their owners continue to be
    subject to existing antitrust laws. Applicants should note that
    conduct that is permissible under the Commission\'s Rules may be
    prohibited by the antitrust laws."); Implementation of Section
    309(j) of the Communications Act-Competitive Bidding, PP Docket No.
    93-253, *Fourth Memorandum Opinion & Order*, 9 FCC Rcd 6858, 6869 n.
    134 (1994)("\[A\]pplicants will also be subject to existing
    antitrust laws."). ("*Fourth Memorandum Opinion and Order*").

[^40]: *Competitive Bidding Second Report and Order*, 9 FCC Rcd at 2388
    ¶ 226. *See also* "Justice Department Sues Three Firms Over FCC
    Auction Practices," *Press Release* 98-536 (DOJ Nov. 10, 1998).

[^41]: The Commission has cited a number of examples of such
    anticompetitive behavior. *See, e.g.,* Implementation of Section
    309(j) of the Communications Act-Competitive Bidding, PP Docket No.
    93-253, *Fourth Memorandum Opinion & Order*, 9 FCC Rcd 6858 at 6869
    n. 134.

[^42]: Implementation of Section 309(j) of the Communications
    Act-Competitive Bidding, PP Docket No. 93-253, *Fourth Memorandum
    Opinion & Order*, 9 FCC Rcd 6858, 6869 n. 134 (1994); *see also*
    *Anti-Collusion Public Notice.*

[^43]: *Anti-Collusion Public Notice*.

[^44]: *Competitive Bidding Second Report and Order*, 9 FCC Rcd at 2388
    ¶ 226.

[^45]: 47 C.F.R. § 1.2109(d); *see also* *Competitive Bidding Second
    Report and Order*, 9 FCC Rcd at 2388 ¶ 226.

[^46]: 47 C.F.R. § 1.65.

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

[^48]: 47 C.F.R. § 1.2107(d).

[^49]: [http://wireless.fcc.gov/auctions/anticollusion](http://wireless.fcc.gov/auctions/default.htm?job=anti_collusion)

[^50]: Agreements with Canada and Mexico at
    <http://www.fcc.gov/ib/sand/agree/welcome.html>

[^51]: 47 C.F.R. § 1.924.

[^52]: *Id.*

[^53]: 47 C.F.R. Ch. 1, Subpart I.

[^54]: 47 C.F.R. §§ 1.1305-1.1319.

[^55]: 47 C.F.R. Part 1, Appendix C.

[^56]: *Auction No. 72 Comment Public Notice*, at ¶ 1.

[^57]: Skybridge Comments at 5 (proposing to extend dates for this
    auction by 12 months but at least by six months).

[^58]: Skybridge Comments at 2-3.

[^59]: In the Matter of Motion of Ranger Cellular and Miller
    Communications, Inc. for a Stay of the Cellular Rural Service Areas
    Auction No. 45, Order, 17 FCC Rcd 9320 at 9322-23 (WTB 2002).

[^60]: *See* Implementation of the Commercial Spectrum Enhancement Act
    and Modernization of the Commission's Competitive Bidding Rules and
    Procedures, *Order on Reconsideration of the Second Report and
    Order*, 21 FCC Rcd 6703, 6707 ¶ 9 (2006).

[^61]: Application for Assignment of Authorization, Warren C. Havens
    (assignee) and Net Radio Group Communications, LLC (assignor) (File
    No. 0002482294). On Jan. 12, 2007, the Commission consented to this
    assignment.

[^62]: 47 U.S.C. § 309(j)(3)(A)-(D). *See also* 47 U.S.C. § 309(j)(15).

[^63]: *See also* In the Matter of Petition for Reconsideration by
    Warren C. Havens, AMTS Consortium, LLC, Telesaurus-VPC, LLC, and
    Telesaurus Holdings GB LLC, *Memorandum Opinion and Order,* DA
    07-457, at ¶¶ 4-5 (rel. Jan. 31, 2007) (finding public interest
    served by conduct of auction of Automated Maritime
    Telecommunications System (AMTS) licenses (Auction No. 61) as
    scheduled and denying requests of Skybridge affiliates for
    reconsideration of refusal to delay that auction, *inter alia*,
    because of claimed impact conduct of that auction would have had on
    those affiliates' business plans, their financing activities, and
    the valuation of the spectrum).

[^64]: Section IV.A.1. "Simultaneous Multiple Round Auction," below*.*

[^65]: For additional information regarding ISAS, including sample
    screen shots, visit the "About ISAS" web page at
    [http://wireless.fcc.gov/auctions/about_isas](http://wireless.fcc.gov/auctions/default.htm?job=about_isas).

[^66]: 47 C.F.R. § 1.2105.

[^67]: *Id*.; *Competitive Bidding* *Second Report and Order*, 9 FCC Rcd
    at 2376 ¶ 163.

[^68]: Section III.D. "Upfront Payments -- Due May 21, 2007," below*.*

[^69]: 47 C.F.R. § 1.2107.

[^70]: 47 C.F.R. § 1.2105(a)(2)(v).

[^71]: 47 C.F.R. § 1.2105(b).

[^72]: 47 C.F.R. § 1.2110(f)(2)(ii).

[^73]: 47 C.F.R. § 1.2110(f)(2)(i).

[^74]: 47 C.F.R. §§ 1.2105, 1.2110(b)(1)(i). *See* Section II.E.
    "Bidding Credit Revenue Disclosures," below, and Attachment C.

[^75]: *See, generally, Designated Entity Second Report and Order*,
    recons. pending.

[^76]: 47 C.F.R. § 1.2112(b)(1)(iii).

[^77]: 47 C.F.R. § 1.2112(b)(1)(iv). Note that certain otherwise
    attributable material relationships may not be attributable pursuant
    to the provisions of 47 C.F.R. § 1.2110(b)(3)(iv)(C)(2).

[^78]: 47 C.F.R. § 1.2110(c)(2)(ii)(F).

[^79]: *Second* *Order on Reconsideration of the Fifth Report and
    Order*, 20 FCC Rcd at 1949 ¶ 18.

[^80]: 47 C.F.R. § 1.2110(b)(3)(iii). *See Order on Reconsideration of
    the Part 1 Fifth Report and Order*, 18 FCC Rcd at 10186-94 ¶¶ 10-18;
    *Second* *Order on Reconsideration of the Fifth Report and Order*,
    20 FCC Rcd at 1945-46 ¶ 9.

[^81]: Section V.E. "Tribal Lands Bidding Credit," below.

[^82]: 47 C.F.R. § 1.2105(b)(2).

[^83]: 47 C.F.R. § 1.2105(a)(2)(viii), (c)(1).

[^84]: 47 C.F.R*.* § 1.2105(a)(2)(ix).

[^85]: Section I.B.2. "Prohibition of Collusion; Compliance with
    Antitrust Laws," above*.*

[^86]: 47 C.F.R. § 1.2105(c)(4)(i), (ii).

[^87]: Section I.B.2. "Prohibition of Collusion; Compliance with
    Antitrust Laws," above*.*

[^88]: *Id.*

[^89]: 47 C.F.R. § 1.2105 requires the disclosure on the short-form
    application of the applicant's ownership information as set forth in
    47 C.F.R. §§ 1.2105 and 1.2112.

[^90]: *Id.*

[^91]: § 1.2110(b); *see also Part 1 Fifth Report and Order*, 15 FCC Rcd
    at 15323-27 ¶¶ 59-67.

[^92]: § 1.2110(b).

[^93]: For further guidance on the issue of *de facto* control, see the
    Commission's affiliation rule at 47 C.F.R. §1.2110(b)(5); *see also
    Intermountain Microwave*, 12 FCC 2d. 559, 560 (1963), and
    Application of Baker Creek Communications, L.P., for Authority to
    Construct and Operate Local Multipoint Distribution Services in
    Multiple Basic Trading Areas, *Memorandum Opinion and Order,* 13 FCC
    Rcd 18709 (1998).

[^94]: 47 C.F.R. § 1.2110(c)(2)(i)(A)-(C).

[^95]: 47 C.F.R. § 1.2110(c)(2)(ii)(F).

[^96]: *Order on Reconsideration of the Part 1 Fifth Report and Order*,
    18 FCC Rcd at 10186-194 ¶¶ 10-18; *Second Order on Reconsideration
    of the Fifth Report and Order*, 20 FCC Rcd at 1945-46 ¶ 9.

[^97]: *Order on Reconsideration of the Part 1 Fifth Report and Order*,
    18 FCC Rcd at 10185-186 ¶¶ 8-9. However, to the extent that the
    officers and directors of the applicant are controlling interest
    holders of other entities, the gross revenues of those entities will
    be attributed to the applicant.

[^98]: 47 C.F.R. §1.2110(c)(6).

[^99]: 47 C.F.R. §§ 90.912, 90.1021, and 90.1103.

[^100]: 47 C.F.R. § 1.2110(b)(3)(i).

[^101]: The *CSEA/Part 1 Report and Order* modified the procedure by
    which a consortium that is a winning bidder will apply for a
    license. *See CSEA/Part 1 Report and Order*, 21 FCC Rcd at 911-912
    ¶¶ 51-52. Applicants applying as consortia should review the
    *CSEA/Part 1 Report and Order* and sections 1.2107(g) and
    1.2110(b)(3) of the Commission's rules to understand how the members
    of the consortia will apply for a license in the event they are
    winning bidders.

[^102]: 47 C.F.R. § 1.2110.

[^103]: 47 C.F.R. § 1.2105(a)(2)(xi); *Part 1 Fifth Report and Order*,
    15 FCC Rcd at 15317 ¶ 42 and n. 142.

[^104]: 47 C.F.R. § 1.2105(a)(2)(x); *Part 1 Fifth Report and Order*, 15
    FCC Rcd at 15317 ¶ 42.

[^105]: 47 C.F.R. § 1.2106(a).

[^106]: 47 C.F.R. §§ 1.2105(a)(2)(x) and 1.2105(b)(1); see Part 1 Fifth
    Report and Order, 15 FCC Rcd at 15317 ¶ 42 and n.142 ("If any one of
    an applicant's controlling interests or their affiliates...is in
    default on any Commission licenses or is delinquent on any non-tax
    debt owed to any Federal agency at the time the applicant files
    it\[s\] FCC Form 175, the applicant will not be able to make the
    certification required by Section 1.2105(a)(2)(x)...and will not be
    eligible to participate in Commission auctions.")

[^107]: "WTB Reminds Prospective Broadband PCS Spectrum Auction
    Applicants of Default and Delinquency Disclosure Requirements,"
    *Public Notice*, 19 FCC Rcd 21920 (2004) ("*Auction Default
    Disclosure Public* *Notice*"). This public notice may be found at
    [http://wireless.fcc.gov/auctions/58/](http://wireless.fcc.gov/auctions/default.htm?job=auction_summary&id=58).

[^108]: Letter to Cheryl A. Tritt, Esq., Morrison and Foerster, LLP,
    from Margaret Wiener, Chief, Auctions and Spectrum Access Division,
    Wireless Telecommunications Bureau, 19 FCC Rcd 22907 (2004)
    (clarifying the term "debt" or "non-tax debt" as referenced in 47
    C.F.R. §§ 1.2105(a) and 1.2106(a)). This letter may be found at:
    [http://wireless.fcc.gov/auctions/58/](http://wireless.fcc.gov/auctions/default.htm?job=auction_summary&id=58).

[^109]: Even where Commission rules expressly permit late payment,
    subject to payment of an additional late fee, and do not impose a
    final payment deadline, the Commission may in some cases issue a
    demand for payment by a date certain. *See* 47 C.F.R. § 1.1164(a).
    Failure to comply with the terms of a particular demand letter in
    the time period provided may render the subject debt delinquent,
    notwithstanding rules generally permitting late payment.

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

[^111]: *Debt Collection Report and Order*, 19 FCC Rcd at 6541 n.11.
    Footnote 11 specifically mentions 47 C.F.R. § 1.2105(a)(2)(x) and
    (xi).

[^112]: *Auction Default Disclosure Public Notice*, 19 FCC Rcd at 21920
    (addressing relationship between Commission's Red Light Display
    System and FCC Form 175 default and delinquency disclosure
    requirements for auction applicants).

[^113]: *Debt Collection Report and Order*, 19 FCC Rcd 6540. *See*
    *also* 47 C.F.R. § 1.1112.

[^114]: Applicants that have their long-form applications dismissed will
    be deemed to have defaulted and will be subject to default payments
    under 47 C.F.R. §§ 1.2104(g) and 1.2109(c).

[^115]: 47 C.F.R. § 1.2110(c)(3).

[^116]: Designated entities are defined as small businesses, businesses
    owned by members of minority groups and/or women, and rural
    telephone companies. *See* 47 C.F.R. § 1.2110(a).

[^117]: 47 C.F.R. § 1.2105(b).

[^118]: 47 C.F.R. § 1.65.

[^119]: 47 C.F.R. § 1.2105(b)(2).

[^120]: 47 C.F.R. § 12105(a).

[^121]: Section III.D. "Upfront Payments --- Due May 21, 2007," below*.*

[^122]: 47 C.F.R. § 1.2105(b); *see also* Two Way Radio of Carolina,
    Inc., *Memorandum Opinion and Order*, 14 FCC Rcd 12035 (1999).

[^123]: A wire transfer is a transaction that you initiate through your
    bank. It authorizes your bank to wire funds from your account to our
    lockbox bank, the Mellon Bank in Pittsburgh, PA. Additional
    information on wire transfers is available on the Commission's web
    site at <http://www.fcc.gov/fees/wiretran.html>.

[^124]: The Commission will not accept checks, credit cards, or ACH
    payments.

[^125]: Letter to Patrick Shannon, Counsel for Lynch 3G Communications
    Corp., from Margaret W. Wiener, Chief, Auctions and Industry
    Analysis Division, Wireless Telecommunications Bureau, 18 FCC Rcd
    11552 (2003).

[^126]: Amendment of Part 1 of the Commission's Rules --- Competitive
    Bidding Proceeding, *Order, Memorandum Opinion and Order and Notice
    of Proposed Rule Making*, 12 FCC Rcd 5686, 5697-98 ¶ 16 (1997)
    ("*Part 1 Order*").

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

[^128]: 47 C.F.R. § 1.2110(c).

[^129]: *Auction No. 72 Comment Public Notice* at ¶ 18.

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

[^131]: All population figures are from the 2000 U.S. Census, U.S.
    Department of Commerce, Bureau of the Census. *See* Census 2000
    Summary File 1 (SF1) and July 3, 2001, News Releases covering the
    U.S. Virgin Islands, Guam, the Northern Mariana Islands, and
    American Samoa. Two of the licenses available cover partial markets.
    The population listed for these licenses is based on the 2000
    decennial census and reflects the area covered. See Attachment A for
    more information.

[^132]: In some cases a qualified bidder\'s maximum eligibility may be
    less than the amount of its upfront payment because the qualified
    bidder has either previously been in default on a Commission license
    or delinquent on non-tax debt owed to a Federal agency (see 47
    C.F.R. section 1.2106(a)), or has submitted an upfront payment that
    exceeds the total amount of bidding units associated with the
    licenses it selected on its FCC Form 175 application.

[^133]: 47 C.F.R. § 1.2106(a).

[^134]: *Auction No. 72 Comment Public Notice* at ¶ 7.

[^135]: *See*, *e.g.*, Auction of Advanced Wireless Services Licenses
    Scheduled for June 29, 2006; Comment Sought on Reserve Prices or
    Minimum Opening Bids and Other Procedures," *Public Notice*, 21 FCC
    Rcd 794, 797-8 (2006) ("*Auction No. 66 Comment Public Notice*").

[^136]: *Auction No. 72 Comment Public Notice* at ¶ 9.

[^137]: *Auction No. 66 Procedures Public Notice* at ¶¶ 140-157; *see
    also* *Auction No. 66 Comment Public Notice*, 21 FCC Rcd 794,
    799-800. []{.mark}

[^138]: *Auction No. 66 Comment Public Notice,* 21 FCC Rcd at 799-800.

[^139]: 47 C.F.R. § 1.2105(c)(1).

[^140]: As discussed at greater length elsewhere in this Public Notice,
    other laws may prohibit particular communications regarding bids and
    bidding strategies. Nothing in the Commission's rules or procedures
    insulates applicants against liability for violating such laws,
    *e.g.*, applicable anti-trust laws.

[^141]: For purposes of Section 1.2105(c), the term applicant includes
    all controlling interests, all parties with ownership interests
    greater than ten percent and all officers and directors of the
    applicant. 47 C.F.R. § 1.2105(c)(7).

[^142]: *Auction No. 72 Comment Public Notice* at ¶¶ 17-18.

[^143]: Below, Section IV.A.6. "Activity Rule Waivers*.*"

[^144]: *Auction No. 72 Comment Public Notice* at ¶ 22.

[^145]: The percentage of bidding units receiving new provisionally
    winning bids is reported as the "Stage Transition Percentage" on the
    Results tab of the FCC Auction System.

[^146]: *Auction No. 72 Comment Public Notice* at ¶ 21.

[^147]: The stage of the auction does not affect the auction stopping
    rules; the auction may conclude in Stage One. *See* Section IV.A.7.
    "Auction Stopping Rules," below.

[^148]: When monitoring activity for determining when to change stages,
    we may consider the percentage of bidding units of the licenses
    receiving new provisionally winning bids, excluding any FCC-held
    licenses.

[^149]: *Auction No. 72 Comment Public Notice* at ¶ 28.

[^150]: *Auction No. 72 Comment Public Notice* at ¶¶ 14-15.

[^151]: *Id*.

[^152]: *Id.* at ¶ 16.

[^153]: 47 U.S.C. § 309(j)(4)(F).

[^154]: Amendment of Part 1 of the Commission's Rules --- Competitive
    Bidding Procedures, WT Docket No. 97-82, *Third Report and Order and
    Second Further Notice of Proposed Rule Making*, 13 FCC Rcd 375,
    455-456 ¶ 141 (1997) ("*Part 1 Third Report and Order*").

[^155]: *Id*.

[^156]: *Id*.

[^157]: *Auction No. 72 Comment Public Notice* at ¶¶ 29-33.

[^158]: All population figures are from the 2000 U.S. Census, U.S.
    Department of Commerce, Bureau of the Census. *See* Census 2000
    Summary File 1 (SF1) and July 3, 2001, News Releases covering the
    U.S. Virgin Islands, Guam, the Northern Mariana Islands, and
    American Samoa. Results are rounded using our standard rounding
    procedure: results above \$10,000 are rounded to the nearest
    \$1,000; results below \$10,000 but above \$1,000 are rounded to the
    nearest \$100; and results below \$1,000 are rounded to the nearest
    \$10.

[^159]: *Auction No. 72 Comment Public Notice* at ¶¶ 32-33.

[^160]: Skybridge Comments at 4.

[^161]: *Id.*

[^162]: *Id.*

[^163]: *Id*.

[^164]: *See* 47 U.S.C. § 309(j)(3)(C).

[^165]: In that regard, we noted that under the Commission's current
    rules, the filing fee for a new cellular license or to make major
    modifications to an existing cellular license is \$365. *Auction No.
    72 Comment Public Notice* at n. 31.

[^166]: Skybridge's only support for its belief consists of a cash and
    debt offer made by Skybridge's President, Warren C. Havens, to
    acquire certain 220 MHz licenses in a bankruptcy proceeding at a
    price below winning bid amounts from a prior auction held in 1998.
    Skybridge states that Mr. Havens was the high bidder and that this
    amount did not include "other direct costs." *Id.* at 2, 4.

[^167]: Bidders must have sufficient eligibility to place a bid on the
    particular license. *See* Section III.D.3 "Upfront Payments and
    Bidding Eligibility," above*.*

[^168]: In the event of duplicate bid amounts due to rounding, the FCC
    Auction System will omit the duplicates and will list fewer
    acceptable bid amounts for the license.

[^169]: Section IV.B.5. "Bid Removal and Bid Withdrawal," below.

[^170]: For Round 1 calculations, because there is no prior round
    (*i.e.*, no round 0), the activity index from the prior round is set
    at 0.

[^171]: Results are rounded using our standard rounding procedure:
    results above \$10,000 are rounded to the nearest \$1,000; results
    below \$10,000 but above \$1,000 are rounded to the nearest \$100;
    and results below \$1,000 are rounded to the nearest \$10.

[^172]: Section IV.A.3. "Eligibility and Activity Rules," above.

[^173]: *Auction No. 72 Comment Public Notice* at ¶ 39.

[^174]: A description of the L'Ecuyer algorithms can be found in
    L'Ecuyer, P. (1999) "Good Parameters and Implementations for
    Combined Multiple Recursive Random Number Generators" *Operations
    Research* 47 (1), pp.159-164. A longer version of this paper and the
    C code for the algorithms can be found on the author's website at
    <http://www.iro.umontreal.ca/~lecuyer/papers.html>.

[^175]: Bidders must have sufficient eligibility to place a bid on the
    particular license. *See* Section III.D.3. "Upfront Payments and
    Bidding Eligibility," above*.*

[^176]: In the event of duplicate bid amounts due to rounding, the FCC
    Auction System will omit the duplicates and will list fewer than
    nine acceptable bid amounts for the license.

[^177]: *Auction No. 72 Comment Public Notice* at ¶¶ 41-44.

[^178]: The Bureau retains the discretion to lower the minimum
    acceptable bid on such licenses in the next round or in later
    rounds.

[^179]: 47 C.F.R. §§ 1.2104(g), 1.2109.

[^180]: The payment will equal the lower of: (1) the difference between
    the net withdrawn bid and the subsequent net winning bid; or (2) the
    difference between the gross withdrawn bid and the subsequent gross
    winning bid. *See* 47 C.F.R. § 1.2104(g)(1).

[^181]: See following paragraph for discussion of interim bid withdrawal
    payments.

[^182]: 47 C.F.R. § 1.2104(g)(1); *see* *Part 1 Fifth Report and Order*,
    15 FCC Rcd at 15302 ¶ 15.

[^183]: 47 C.F.R. § 1.2104(g).

[^184]: The identities of parties that are qualified to bid in Auction
    No. 72 will be available before the auction. Thus, bidders will know
    in advance of this auction the identities of the other parties
    against which they may be bidding in the auction.

[^185]: 47 C.F.R. § 1.2107(b).

[^186]: 47 C.F.R. § 1.2109(a).

[^187]: 47 C.F.R. § 1.2112(b).

[^188]: *CSEA/Part 1 Report and Order* at ¶¶ 51-52, petitions for
    reconsideration pending.

[^189]: *Id.*

[^190]: *See also* 47 C.F.R. § 1.2110(f)(3)(ii) & (vii).

[^191]: *See generally*, Extending Wireless Telecommunications Services
    to Tribal Lands, *Report and Order and Further Notice of Proposed
    Rule Making*, 15 FCC Rcd 11794 (2000), *Second Report and Order and
    Second Further Notice of Proposed Rulemaking*, 18 FCC Rcd 4775,
    4778-79 ¶ 10 (2003), *Third Report and Order*, 19 FCC Rcd 17652
    (2004). *See also* "Wireless Telecommunications Bureau Announces
    Enhancements to the Universal Licensing System to Help Winning
    Bidders of FCC Auctions File for Tribal Lands Bidding Credits,"
    *Public Notice*, 16 FCC Rcd 5355 (2001); "Wireless
    Telecommunications Bureau Releases Additional Information Regarding
    the Procedures for Obtaining a Tribal Lands Bidding Credit and List
    of Tribal Lands," *Public Notice*, 15 FCC Rcd 24838 (2000);
    "Wireless Telecommunications Bureau Announces Availability of
    Bidding Credits for Providing Wireless Services to Qualifying Tribal
    Lands: Tribal Lands Bidding Credits to be Available Beginning in
    Auction No. 36 (800 MHz Specialized Mobile Radio (SMR) Lower 80
    Channels) and in Future Auctions," *Public Notice*, 15 FCC Rcd 18351
    (2000).

[^192]: 47 C.F.R. § 1.2109(b) and (c).

[^193]: 47 C.F.R. § 1.2109(d).

[^194]: *See generally*, 47 C.F.R. § 1.2105.

[^195]: 47 C.F.R. § 1.2105(a)(2)(ii)(A).

[^196]: 47 C.F.R. § 1.2105(a)(2)(i).

[^197]: 47 C.F.R. § 1.2105(a)(2)(viii).

[^198]: 47 C.F.R. §§ 1.2105(a)(2)(ii)(B), 1.2110 and 1.2112.

[^199]: 47 C.F.R. § 1.2112.

[^200]: 47 C.F.R. § 1.2112(a). Section 1.2105 requires the disclosure on
    the short-form application of applicant ownership information as set
    forth in Section 1.2112.

[^201]: 47 C.F.R. § 1.2112(a)(7).

[^202]: 47 C.F.R. § 1.2112(a)(6).

[^203]: *Id*.

[^204]: 47 C.F.R. § 1.2112(b)(1)(i).

[^205]: 47 C.F.R. § 1.2110(n).

[^206]: 47 C.F.R. § 1.2112(b)(1)(iii).

[^207]: 47 C.F.R. § 1.2110(c)(5).

[^208]: 47 C.F.R. §1.2112(b)(1)(iii).

[^209]: *Compare* 47 C.F.R. 1.2110(c)(2) (definition of controlling
    interests) and (c)(5)(definition of affiliate) *with* 47 C.F.R.
    1.2112(a) (describing disclosable interest holders).

[^210]: *See* Amendment of Part 1 of the Commission's Rules --
    Competitive Bidding Procedures, *Second Order on Reconsideration of
    the Third Report and Order and Order on Reconsideration of the Fifth
    Report and Order*, 18 FCC Rcd 10,180 (2003); *Second* *Order on
    Reconsideration of the Fifth Report and Order*, 20 FCC Rcd at 1942.

[^211]: 47 C.F.R. § 1.2112(b)(1)(iii).

[^212]: *Id*.

[^213]: *See generally*, 47 C.F.R. § 1.2105(a)(2) (iv)-(vii) and
    (ix)-(xi).

[^214]: 47 C.F.R. § 1.2105(a)(2)(xi).

[^215]: 47 C.F.R. § 1.2106(a).

[^216]: 47 C.F.R. § 1.2105(a)(2)(v).

[^217]: 47 C.F.R. § 1.2105(b).