**DA 02-1491**

**June 26, 2002**

**AUCTION No. 44**

**REVISED SCHEDULE, LICENSE INVENTORY, AND PROCEDURES**

**Report No. AUC 02-44-G (Auction No. 44)**

By this Public Notice, the Wireless Telecommunications Bureau ("Bureau")
revises the schedule, license inventory, and procedures for Auction No.
44 in order to comply with the recently enacted Auction Reform Act of
2002.[^1] With the exception of the changes set forth in this Public
Notice, the Commission's competitive bidding rules and the procedures,
terms and conditions previously announced in the *Auction No. 44
Procedures Public Notice* will apply in Auction No. 44.[^2]

Pursuant to the Auction Reform Act, the Commission will commence Auction
No. 44 on August 27, 2002 with an inventory of 740 licenses in the Lower
700 MHz C and D blocks, or the 710-716/740-746 MHz and 716-722 MHz
bands.[^3] The Auction Reform Act provides that the Commission may not
commence Auction No. 44 on June 19, 2002 as previously scheduled.[^4]
The Auction Reform Act defines the entities that are eligible to bid in
a rescheduled auction of the C and D block licenses.[^5] The Auction
Reform Act also directs the Commission to return certain payments to
certain bidders within one month of its enactment.[^6]

**New Auction Start Date**

Auction No. 44 will begin on August 27, 2002. A complete list of all
relevant dates appears at the end of this Public Notice.

**Eligible Bidders**

Pursuant to the Auction Reform Act, only those entities that were
qualified bidders for Auction No. 44 are eligible to participate in the
rescheduled Auction No. 44.[^7] Accordingly, only the 128 qualified
bidders identified in the *Auction No. 44 Qualified Bidders Public
Notice* are eligible to participate in Auction No. 44.[^8]

**Continuing Application of Anti-Collusion Rule**

All parties that submitted short-form applications to participate in
Auction No. 44, including but not limited to qualified bidders, are
reminded that they remain subject to the Commission\'s anti-collusion
rule until the post-auction down payment deadline.[^9]

**Revised Auction No. 44 License Inventory**

In compliance with the Auction Reform Act, rescheduled Auction No. 44
will offer 740 C and D block licenses in the Lower 700 MHZ bands.[^10]
The C block is a 12-megahertz spectrum block, consisting of a pair of 6-
megahertz segments, which is licensed over 734 Metropolitan Statistical
Areas ("MSAs") and Rural Service Areas ("RSAs"). [^11] The D block is a
6-megahertz unpaired spectrum block, which is licensed over six 700 MHz
Economic Area Groupings ("700 MHz EAGs"). A complete revised list of
licenses available in Auction No. 44 and their descriptions is included
in Attachment A of this Public Notice.

The following table contains the block/frequency cross-reference for the
710‑716 / 740‑746 MHz and 716‑722 MHz Bands:

+---+---------------+-------+----------+------------------+-----+---+
| [ | >             | [Ba   | [Pair    | [Geographic Area | [   |   |
| B |  [Frequencies | ndwid | ing]{.un | T                | No. |   |
| l | > (MHz)       | th]{. | derline} | ype]{.underline} | of  |   |
| o | ]{.underline} | under |          |                  | Lic |   |
| c |               | line} |          |                  | ens |   |
| k |               |       |          |                  | es] |   |
| ] |               |       |          |                  | {.u |   |
| { |               |       |          |                  | nde |   |
| . |               |       |          |                  | rli |   |
| u |               |       |          |                  | ne} |   |
| n |               |       |          |                  |     |   |
| d |               |       |          |                  |     |   |
| e |               |       |          |                  |     |   |
| r |               |       |          |                  |     |   |
| l |               |       |          |                  |     |   |
| i |               |       |          |                  |     |   |
| n |               |       |          |                  |     |   |
| e |               |       |          |                  |     |   |
| } |               |       |          |                  |     |   |
+---+---------------+-------+----------+------------------+-----+---+
| C | > 710-716,    | 12    | 2 x 6    | MSA/RSA          | 734 |   |
|   | > 740-746     | MHz   | MHz      |                  |     |   |
+---+---------------+-------+----------+------------------+-----+---+
| D | > 716-722     | 6 MHz | Unpaired | 700 MHz EAG      | 6   |   |
+---+---------------+-------+----------+------------------+-----+---+

**Return of Upfront Payments for Qualified Bidders Eligible to Bid on A,
B, or E Blocks**

In compliance with the Auction Reform Act, the Commission will honor
timely requests for the return of upfront payments to payer(s) of record
for qualified bidders eligible to bid on A, B or E block licenses,
*i.e.*, qualified bidders that selected licenses in the A, B or E blocks
and have upfront payments that purchased sufficient eligibility to bid
on at least one of the licenses in those blocks (*i.e.*, an upfront
payment of at least \$3,069,000).[^12] **Qualified bidders are reminded
that, pursuant to the *Auction No. 44 Procedures Public Notice*, they
only may bid on licenses when they have sufficient bidding units of
eligibility. Full or partial return of upfront payments will reduce the
qualified bidder's eligibility by one bidding unit for each dollar
returned. No qualified bidder will be able to increase its eligibility
after 6 p.m. ET, July 26, 2002, the deadline for selecting additional
licenses (*see* Selecting Additional Licenses, below) and supplementing
upfront payments (*see* Supplementing Upfront Payments, below).
Qualified bidders should take all available precautions to assure that
upfront payments held by the Commission provide sufficient eligibility
to bid on all the licenses in which they have an interest. As discussed
further below, after completing the procedures set forth in this Public
Notice, the Bureau will issue a public notice providing a final list of
all qualified bidders, their license selections, upfront payments, and
bidding eligibility.**

To obtain a full or partial return of upfront payment(s) to payer(s) of
record for a qualified bidder eligible to bid on A, B or E block
licenses, the qualified bidder's authorized representative or contact
person identified on FCC Form 175 must send electronic mail containing
the information set forth below to [auction44@fcc.gov,]{.underline}
following the release of this Public Notice but no later than 6:00 p.m.
ET on July 3, 2002:

-   A subject line indicating a request for Auction No. 44 upfront
    payment return;

-   The qualified bidder's name;

-   The total amount of the upfront payment for the qualified bidder to
    be returned;

-   The name, street address, and telephone number of the party sending
    the email; and

-   For each payer of record to receive a return payment, the following
    wire transfer information:

    Amount of Wire Transfer

    Name and Address of Bank

> ABA Number
>
> Contact and Phone Number
>
> Account Number to Credit
>
> Name of Account Holder
>
> FCC Registration Number (FRN)
>
> Taxpayer Identification Number[^13]
>
> Correspondent Bank (if applicable)
>
> ABA Number
>
> Account Number

All returns will be made by wire transfer. Absent other sufficient
written instructions submitted by the payer(s) of record, upfront
payment(s) will be returned to the payer(s) of record as identified on
the FCC Form 159 that accompanied the upfront payment(s). Please call
Gail Glasser at (202) 418-0578 or Tim Dates at (202) 418-0496 with any
questions regarding wire transfer procedures.

**The Commission will honor requests for returns of upfront payment from
qualified bidders that comply with the above procedures and that are
received after the release of this Public Notice but no later than 6:00
p.m. ET July 3, 2002. Qualified bidders intending to make use of the
above procedures are urged to do so promptly to avoid last minute
errors. UNTIMELY REQUESTS WILL NOT BE HONORED.**

**Early Departure from Auction No. 44 and Upfront Payment Refunds**

Due to the changes made to Auction No. 44 by the Auction Reform Act, the
Bureau will permit any qualified bidder not eligible to bid on A, B or E
block licenses to forgo further participation and depart from Auction
No. 44 following the release of this Public Notice but no later than
6:00 p.m. ET July 3, 2002. The Bureau provides this procedure because
qualified bidders could not have anticipated the statutorily mandated
changes in Auction No. 44 at the time they submitted their applications
to participate. The upfront payments of any qualified bidders departing
from Auction No. 44 will be refunded in full to the payer(s) of record.
**Qualified bidders not eligible to bid on A, B or E block licenses that
depart using this procedure may obtain only full -- NOT partial --
refunds of upfront payments. Qualified bidders departing from Auction
No. 44 may NOT supplement their upfront payments (*see* Supplementing
Upfront Payments, below). Consequently, qualified bidders departing from
Auction No. 44 and having upfront payments refunded will have zero
bidding units of eligibility and no longer be eligible to bid on any
licenses in Auction No. 44. Any qualified bidders departing from Auction
No. 44 remain subject to the Commission's anti-collusion rule until the
post-auction down payment deadline.**[^14]

To forgo further participation and have the upfront payment refunded, a
qualified bidder's authorized representative or contact person
identified on FCC Form 175 must send electronic mail containing the
information set forth below to [auction44@fcc.gov]{.underline} following
the release of this Public Notice but no later than 6:00 p.m. ET on July
3, 2002:

-   A subject line indicating departure from Auction No. 44;

-   The qualified bidder's name;

-   The name, street address, and telephone number of the party sending
    the email; and

-   For each payer of record, the following wire transfer information:

    Name and Address of Bank

> ABA Number
>
> Contact and Phone Number
>
> Account Number to Credit
>
> Name of Account Holder
>
> FCC Registration Number (FRN)
>
> Taxpayer Identification Number[^15]
>
> Correspondent Bank (if applicable)
>
> ABA Number
>
> Account Number

All refunds will be made by wire transfer. Absent sufficient other
written instructions submitted by the payer(s) of record, upfront
payment(s) will be returned to the payer(s) of record as identified on
the FCC Form 159 that accompanied the upfront payment(s). Please call
Gail Glasser at (202) 418-0578 or Tim Dates at (202) 418-0496 with any
questions regarding wire transfer procedures.

**The Commission will honor requests for early departure and will refund
full upfront payments that comply with the above procedures and that are
received after the release of this Public Notice but no later than 6:00
p.m. ET July 3, 2002. Qualified bidders intending to make use of the
above procedures are urged to do so promptly to avoid last minute
errors. UNTIMELY REQUESTS WILL NOT BE HONORED.**

**Selecting Additional Licenses**

Due to the changes made to Auction No. 44 by the Auction Reform Act, the
Bureau will permit qualified bidders not departing from the auction to
select additional licenses. The Bureau provides this procedure because
qualified bidders could not have anticipated the statutorily mandated
changes in Auction No. 44 at the time they submitted their original
license selections. Accordingly, for purposes of allowing qualified
bidders to make additional license selections in compliance with this
Public Notice, the Bureau waives on its own motion the prohibition
against changes in the license service areas identified on the qualified
bidder's short-form application as licenses on which the qualified
bidder intends to bid.[^16] Qualified bidders are **not** authorized to
de-select any licenses already selected, but, pursuant to the
Commission's usual procedures, need not bid on every license selected.
In addition, the Commission\'s prohibition against any other major
amendments, *e.g.*, changes in ownership that would constitute an
assignment or transfer of control, also remains in effect.[^17] Any
application of the Commission's anti-collusion rule will take into
account a qualified bidder's selection of any additional licenses.[^18]

To select additional licenses, the qualified bidder\'s authorized
representative or contact person must send an electronic mail to
<auction44@fcc.gov> no earlier than July 22, 2002 but no later than 6:00
p.m. ET on July 26, 2002 with the following information:

-   A subject line indicating Auction No. 44 additional license
    selection;

-   In the text of the message, the bidder must:

1)  List the Qualified Bidder's FRN number; and

2)  **List the additional licenses** on which it wishes to bid in
    Auction No. 44. The licenses must be listed one per line and must
    correspond precisely to the \"License Number\" column found in
    Attachment A to this Public Notice. Failure to list valid license
    numbers as provided in Attachment A will prevent the license from
    being added to the Form 175. The licenses may be listed in any
    order, and are not to be preceded by any labels or titles. Only
    additional licenses should be listed; do not list the licenses
    previously submitted on the Form 175 that were reported in the
    *Auction No. 44 Qualified Bidders Public Notice*.

For example, the following message would correctly request the addition
of three licenses to the bidder with the specified FRN:

Subject Line: Auction No. 44 Additional License Selection

FRN: 0123456789

WZ-CMA003-C

WZ-EAG706-D

WZ-EAG701-D

**To be effective, additional license selections must comply with the
above procedures and be received no earlier than July 22, 2002 but no
later than 6:00 p.m. ET July 26, 2002. Parties that intend to make use
of the above procedures are urged to do so early in the period to avoid
last minute errors. UNTIMELY ADDITIONAL LICENSE SELECTIONS WILL NOT BE
EFFECTIVE.**

**Supplementing Upfront Payments**

In addition, due to changes made to Auction No. 44 by the Auction Reform
Act, the Bureau will permit qualified bidders not departing from Auction
No. 44 to supplement their existing upfront payments to purchase
additional bidding eligibility. The Bureau provides this procedure
because qualified bidders could not have anticipated the statutorily
mandated changes in Auction No. 44 at the time they submitted their
original upfront payments. Accordingly, for purposes of allowing
qualified bidders that do not depart from Auction No. 44 to make
supplemental upfront payments in compliance with this Public Notice, the
Bureau waives on its own motion the prior deadline for upfront payments.
To exercise this option, qualified bidders must submit the additional
upfront payment accompanied by an FCC Remittance Advice Form (FCC Form
159 (Revised 2/00)). **All supplemental upfront payments must be
received at Mellon Bank no earlier than July 22, 2002, but no later than
6:00 p.m. ET on July 26, 2002.** The FCC Form 159 is available on-line
via a link from
[www.fcc.gov/formpage.html](http://www.fcc.gov/formpage.html). The FCC
Form 159 must be filed with Mellon Bank via facsimile at (412) 209-6045.
A completed FCC Form 159 must be faxed to Mellon Bank at (412) 209-6045
**at least one hour before** placing the order for the wire transfer
(but on the same business day). On the cover sheet of the fax, write
"Wire Transfer --- Auction Payment for Auction Event No. 44."

Please note that:

-   All payments must be made in U.S. dollars.

-   All payments must be made by wire transfer.

-   Supplemental upfront payments for Auction No. 44 will go to the same
    lockbox number used for the initial Auction No. 44 upfront payment,
    as listed below.

-   Failure to deliver the supplemental upfront payment by the July 26,
    2002, deadline will result in the bidder not receiving the
    corresponding additional eligibility.

    [Making Supplemental Upfront Payments by Wire Transfer]{.underline}

Wire transfer payments must be received no later than 6:00 p.m. ET on
July 26, 2002. To avoid untimely payments, applicants should discuss
arrangements (including bank closing schedules) with their banker
several days before they plan to make the wire transfer, and allow
sufficient time for the transfer to be initiated and completed before
the deadline. Applicants will need the following information:

> ABA Routing Number: 043000261

> Receiving Bank: Mellon Pittsburgh
>
> BENEFICIARY: FCC/Account \# 910-1182
>
> OBI Field: (Skip one space between each information item)

> "AUCTIONPAY"

> FCC REGISTRATION NUMBER (FRN): (same as FCC Form 159, block 11 and/or
> 21)
>
> PAYMENT TYPE CODE: (same as FCC Form 159, block 24A: A44U)
>
> FCC CODE 1: (same as FCC Form 159, block 28A: "44")
>
> 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.

**Bidders should confirm the receipt and the amount of their upfront
payment at Mellon Bank by contacting their sending financial
institution. All supplemental upfront payments must be received at
Mellon Bank no earlier than July 22, 2002, but no later than 6:00 p.m.
ET on July 26, 2002. Parties that intend to make use of the above
procedures are urged to do so early in the period to avoid last minute
errors. UNTIMELY SUPPLEMENTAL UPFRONT PAYMENTS WILL NOT INCREASE A
QUALIFIED BIDDER'S ELIGIBILITY.**

**Auction Registration Information**

Approximately ten days before the auction, the Commission will issue a
public notice providing a final list of all qualified bidders, their
license selections, and upfront payments received for this auction.

Qualified bidders planning to participate in Auction No. 44 should
retain ALL materials previously sent by overnight delivery in two
separate mailings on June 11, 2002. These materials **[WILL
NOT]{.underline}** be re-sent (*e.g.*, Bidder Identification Numbers,
SecurID cards, FCC Auctions Bidding System User Manual).

[Bidder Identification Number]{.underline}

Qualified bidders should keep the letter sent by overnight delivery on
June 11, 2002 that includes their Bidder Identification Number ("BIN")
stored in a safe and secure location. Each qualified bidder's BIN
remains the same and will not be changed for the rescheduled Auction No.
44.

[SecurID Cards]{.underline}

Qualified bidders should keep the SecurID Card sent by overnight
delivery on June 11, 2002 stored in a safe and secure location. These
same cards will be used for the rescheduled Auction No. 44. SecurID
cards will be re-set to "new PIN" mode prior to the Mock Auction
scheduled for August 22, 2002. Qualified bidders should refer to their
"FCC Auctions Bidding System User Manual (Auction 44)" for complete
details on how to Access the FCC Bidding System.

After participation in Auction No. 44 is completed, qualified bidders
are encouraged to return their SecurID cards to the Commission for
recycling. Qualified bidders will receive a pre-addressed, stamped
envelope for use in returning SecurID cards together with their copy of
this Public Notice. Qualified bidders that forgo further participation
in Auction No. 44 are encouraged to return their SecurID cards now.
Qualified bidders participating in Auction No. 44 may return their
SecurID cards after the close of the auction. Please note that each
SecurID card is tailored to a specific auction; therefore, the SecurID
cards issued for Auction No. 44 will not work for future auctions.

**Maintaining the Accuracy of FCC Form 175 Information**

Parties are responsible for maintaining the accuracy and completeness of
information furnished in their FCC Form 175 and exhibits.[^19] Parties
should amend their applications within ten business days from the
occurrence of a reportable change. Filers should make modifications to
their FCC Form 175 electronically and submit a letter, briefly
summarizing the changes, by electronic mail to the attention of Margaret
Wiener, Chief, Auctions and Industry Analysis Division, at the following
address: [auction44@fcc.gov](mailto:auction43@fcc.gov). A separate copy
of the letter should be faxed to the attention of Kathryn Garland,
Chief, Auctions Operations Branch, (717) 338-2850. Questions about other
changes should be directed to Howard Davenport at (202) 418-0660.

Any parties that must file amendments are advised that they will be
unable to make modifications to their FCC Form 175 electronically from 6
p.m. ET July 22, 2002, until the release of the public notice containing
the final list of qualified bidders. **Parties nevertheless must make
timely amendments by submitting a letter regarding any changes as
described above.**

**Revised Auction Schedule**

Deadline for requesting return of upfront payments

by qualified bidders eligible to bid on A, B, and E block
licenses..................6 p.m. ET July 3, 2002

Deadline for early departure from Auction No.
44......................................6 p.m. ET July 3, 2002

Deadline for selecting additional
licenses.................................................6 p.m. ET July
26, 2002

Deadline for supplementing upfront
payments...........................................6 p.m. ET July 26,
2002

Mock
Auction.................................................................................\..........August
22, 2002

Auction
Start....................................................................................\......\...August
27, 2002

\* \* \* \* \*

**For further information, contact:**

**Media Contact:** Meribeth McCarrick at (202) 418-0654

**Auctions Accounting Group:** Gail Glasser at (202) 418-0578 or Tim
Dates at (202) 418-0496

**Auctions and Industry Analysis Division:** Howard Davenport, Legal
Branch, or Lyle Ishida, Auctions Operations Branch, at (202) 418-0660;
Linda Sanderson, Auctions Operations Branch, at (717) 338-2888.

\-\-- FCC \-\--

[^1]: Auction Reform Act of 2002, Pub. L. No. 107-195, 116 Stat. 715
    ("Auction Reform Act").

[^2]: *See* 47 C.F.R. Part 1, Subpart Q (Commission competitive bidding
    rules); Auction of Licenses in the 698-746 MHZ Band Scheduled for
    June 19, 2002; Notice and Filing Requirements, Minimum Opening Bids,
    Upfront Payments, and Other Auction Procedures, *Public Notice*, 17
    FCC Rcd 4935 (2002) (\"*Auction No. 44 Procedures Public Notice*\").

[^3]: *See* Auction Reform Act, sec. 3 (adding para. 15(C)(iii) to 47
    U.S.C. § 309(j)). The original license inventory for Auction No. 44
    consisted of licenses for use of the A, B, C, D, and E blocks in the
    Lower 700 MHz bands, *i.e.*, the bands from 698-746 MHz which are
    currently used for television channels 52-59. *See Auction No. 44
    Procedures Public Notice*.

[^4]: Auction Reform Act, sec. 3 (adding para. 15(B) to 47 U.S.C. §
    309(j)). *See* Auction Reform Act, sec. 3 (adding para. 15(C)(iii),
    which establishes deadlines for auction of the C and D block
    licenses).

[^5]: *See* Auction Reform Act, sec. 3 (adding para. 15(C)(ii) to 47
    U.S.C. § 309(j)); *see also* Auction of Licenses for 698-746 MHZ
    Band; 128 Qualified Bidders, *Public Notice*, DA 02-1346 (rel. June
    7, 2002)(\"*Auction No. 44* *Qualified Bidders Public Notice*\").

[^6]: *See* Auction Reform Act, sec. 3 (adding para. 15(D) to 47 U.S.C.
    § 309(j)).

[^7]: *See* *id.*, sec. 3 (adding para. 15(C)(ii) to 47 U.S.C. §
    309(j)).

[^8]: *See Auction No. 44* *Qualified Bidders Public Notice.*

[^9]: *See* 47 C.F.R. § 1.2105(c).

[^10]: *See* Auction Reform Act, sec. 3 (adding para. 15(C) to 47 U.S.C.
    § 309(j)).

[^11]: MSAs and RSAs are sometimes collectively referred to as Cellular
    Market Areas (CMAs).

[^12]: Auction Reform Act, sec. 3 (adding para. 15(D) to 47 U.S.C. §
    309(j)). The qualified bidders in this category are: Aloha Partners,
    L.P.; Cavalier Group, LLC; Council Tree Wireless, L.L.C.; DataCom
    Wireless, L.L.C.; Omega Communications, L.L.C.; and Spectrum
    Holdings I, LP. *See Auction No. 44 Qualified Bidders Public
    Notice*.

[^13]: The Debt Collection Improvement Act of 1996 requires the
    Commission to obtain a Taxpayer Identification Number (TIN) before
    it can disburse refunds. *See* 31 U.S.C. §§ 3720B, *et seq.*

[^14]: *See* 47 C.F.R. § 1.2105(c).

[^15]: The Debt Collection Improvement Act of 1996 requires the
    Commission to obtain a Taxpayer Identification Number (TIN) before
    it can disburse refunds. *See* 31 U.S.C. §§ 3720B, *et seq.*

[^16]: *See* 47 C.F.R. § 1.2105(b)(2).

[^17]: *See id.*

[^18]: *See* 47 C.F.R. § 1.2105(c).

[^19]: 47 C.F.R § 1.65.