**DA 07-1966**

**May 11, 2007**

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

###### Status of Short-Form Applications to Participate in Auction No. 72 {#status-of-short-form-applications-to-participate-in-auction-no.-72 .unnumbered}

**Report No. AUC-07-72-C (Auction No. 72)**

The Wireless Telecommunications Bureau of the Federal Communications
Commission ("Commission") has received six short-form applications (FCC
Forms 175) to participate in the upcoming auction of 94 Phase II 220 MHz
Service licenses (Auction No. 72) scheduled to begin on Wednesday, June
20, 2007.[^1] The applications have been reviewed for completeness and
compliance with the Commission's rules, and have been classified into
the categories listed below.

**[Application Categories]{.underline}:**

**ACCEPTED FOR FILING 2 applications**

**INCOMPLETE 4 applications**

**Accepted:** Applications accepted for filing are listed alphabetically
in Attachment A.[^2] **These applicants will become qualified bidders
upon receipt of the required upfront payment due prior to 6:00 p.m.
Eastern Time (ET) on Monday, May 21, 2007.**[^3] These applicants need
take no further action with respect to their applications, except as may
be necessary to maintain the accuracy and acceptability of their
applications.[^4]

**Incomplete:** Applications found to be incomplete or deficient are
listed alphabetically in Attachment B. Those applicants will receive
overnight correspondence indicating what information is required to make
their applications acceptable for filing. These applicants may become
qualified bidders only if they complete the following actions: (1) make
the required upfront payments prior to **6:00 p.m. ET on Monday, May 21,
2007**; and (2) resubmit their applications**,** having corrected the
deficiencies indicated, prior to **6:00 p.m. ET on Monday, May 21,
2007**.[^5] Applicants also must maintain the accuracy of their
short-form applications as required by the Commission's rules.[^6]

The filing window for resubmitting short-form applications is now open.
Corrected applications must be filed prior to **6:00 p.m. ET on Monday,
May 21, 2007.** This will be the only opportunity to cure specified
application defects; late resubmissions will not be accepted. In
addition, if an application is incomplete or otherwise deficient after
the resubmission deadline has passed, the application will not be
accepted and the applicant will not be permitted to participate in the
bidding.

### UPFRONT PAYMENT DEADLINE

Upfront payments and accompanying FCC Remittance Advice forms (FCC Form
159) for Auction No. 72 are due in the proper account at Mellon Bank,
Pittsburgh, Pennsylvania, prior to **6:00 p.m. ET on Monday, May 21,
2007.** In order to meet the Commission's upfront payment deadline, an
applicant's payment must be credited to the Commission's account by the
deadline.[^7] **Payments must be made by wire transfer only in
accordance with the instructions provided in the *Auction No. 72
Procedures Public Notice*.**[^8] **No other payment method is acceptable
for this auction.**[^9] Applicants are reminded to provide their FCC
Registration Number ("FRN") on the FCC Form 159. 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 February 2003) to Mellon Bank at (412) 209-6045.

Applicants that have filed applications deemed to be incomplete or
deficient, as noted in Attachment B to this public notice, must submit
timely and sufficient upfront payments before the Commission will review
their resubmitted applications. If no upfront payment is made, or the
application is incomplete or deficient following its resubmission, the
applicant will not be eligible to bid in the auction. When the applicant
has provided its FRN and wire transfer instructions from the payor of
record, if eligible for refund, any upfront payment made will be
refunded in a timely manner upon request.

**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.** The Bureau reminds
applicants that to avoid untimely upfront payments they should discuss
arrangements (including transfer times and bank closing schedules) with
their financial institution several days before making the wire
transfer. Be sure to allow sufficient time for the transfer to be
initiated and completed before the deadline. Detailed information
regarding upfront payments, including additional requirements for
"former defaulters," can be found in the *Auction No. 72 Procedures
Public Notice* under Section II.F. and Section III.D.[^10]

**Note:** Applicants are reminded to submit the same FRN with all future
payments for Auction No. 72.

### OTHER IMPORTANT INFORMATION

**Qualified Bidders:** Approximately two weeks after the upfront payment
deadline, following Commission review of resubmitted short-form
applications, and correlation of payments and applications, a public
notice listing all applicants qualified to bid in the auction will be
released. The same public notice will also include bidding schedules for
both the mock auction and the first day of bidding in Auction No. 72.

**Due Diligence:** 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 licenses being offered in this auction. The Commission makes no
representations or warranties about the use of this spectrum for
particular services. 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 pending proceedings,
pleadings, applications, or authorizations that might affect their
decisions regarding participation in the auction. Participants in
Auction No. 72 are strongly encouraged to continue such research during
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 comply fully with the Commission\'s
technical and legal requirements. For further details regarding due
diligence, please refer to the *Auction No. 72 Procedures Public Notice*
under Section I.B.4.[^11]

**Prohibition of Collusion:** Applicants are reminded that Section
1.2105(c) of the Commission's rules prohibits applicants for any of the
same geographic license areas from communicating with each other about
bids, bidding strategies, or settlements, which may include
communications regarding the post-auction market structure, unless they
have identified each other on their short-form applications as parties
with which they have entered into agreements under Section
1.2105(a)(2)(viii).[^12] In Auction No. 72, the rule would apply to any
applicants for licenses in the same BEA or EAG. The rule would also
apply to applicants for licenses in overlapping BEAs and EAG. For
example, assume that one applicant applies for the EAG license and a
second applicant applies for a BEA license covering any area within that
EAG. The two entities will have applied for licenses covering the same
geographic area 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 the same or
overlapping markets (unless they have identified each other on their
short-form 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. In addition,
Auction No. 72 applicants are reminded that information relating to
bidder interests, bids and bidder identities that typically has been
revealed prior to and during past Commission auctions remains non-public
until further notice; communication to other applicants or public
disclosure of such information may violate the anti-collusion rule.[^13]
For Auction No. 72, this prohibition became effective at the short-form
application filing deadline on April 20, 2007, and will end at the
post-auction down payment deadline, which will be announced in a future
public notice.[^14] **This prohibition applies to all applicants
regardless of whether such applicants become qualified bidders or
actually bid.**[^15] Moreover, as described in the *Auction No. 72
Procedures Public Notice*, due to limited disclosure in this auction,
each applicant is being informed by letter of the identity of each of
the other applicants that has applied for any of the same or overlapping
geographic areas that it has selected in its short-form
application.[^16] 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.[^17] The Bureau notes that a violation of the
anti-collusion rule could occur when an individual serves as an officer
and/or director for two or more competing applicants.[^18]

If parties had agreed in principle on all material terms of a bidding
agreement(s), those parties must have been identified on the short-form
application under Section 1.2105(c), even if the agreement had not been
reduced to writing. If parties had not agreed in principle by the
short-form application filing deadline on April 20, 2007, an applicant
should not have included the names of those parties on its application,
and must not have continued negotiations.[^19]

Bidders competing for licenses for any of the same or overlapping
geographic license areas must not communicate directly or indirectly
about bids or bidding strategy.[^20] The Bureau has encouraged
applicants competing for licenses in any of the same or overlapping
geographic license areas not to use the same individual as an authorized
bidder. A violation of the anti‑collusion rule could occur if an
individual acts as the authorized bidder for two or more competing
applicants, and conveys information concerning the substance of bids or
bidding strategies between the bidders he or she is authorized to
represent in the auction.[^21] Also, if the authorized bidders are
different individuals employed by the same organization (*e.g*., law
firm or consulting firm), a violation could likewise occur. In such a
case, at a minimum, applicants should take precautionary steps to
prevent communication between authorized bidders and to ensure that
applicants and their bidding agents will comply with the anti‑collusion
rule.[^22] However, the Bureau cautions that the mere existence of
precautionary measures will not outweigh specific evidence that
collusive behavior has occurred, nor will it preclude the initiation of
an investigation when warranted.[^23]

We also caution applicants that public disclosure of information
relating to bidder interests and bidder identities that is confidential
in this auction at the time of disclosure may violate the anti-collusion
rule. 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 could violate the anti-collusion rule.
Applicants also 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 non-public information
concerning Auction No. 72.[^24]

In addition, Section 1.65 of the Commission's rules requires an
applicant to **maintain** the accuracy and completeness of information
furnished in its pending application and to notify the Commission within
30 days of any substantive change that may be of decisional significance
to that application.[^25] Thus, Section 1.65 requires auction applicants
that engage in communication of bids or bidding strategies that results
in a bidding agreement, arrangement, or understanding not already
identified on their short-form applications to promptly disclose any
such agreement, arrangement, or understanding to the Commission by
amending their pending applications. In addition, Section 1.2105(c)(6)
requires all auction applicants to report prohibited discussions or
disclosures regarding bids or bidding strategy to the Commission in
writing immediately, but in no case later than five business days after
the communication occurs, even if the communication does not result in
an agreement or understanding regarding bids or bidding strategy that
must be reported under Section 1.65.[^26]

Applicants that are winning bidders will be required to disclose in
their long-form applications the specific terms, conditions, and parties
involved in all bidding consortia, joint ventures, partnerships, or
other agreements or arrangements entered into relating to the
competitive bidding process.[^27] Any applicant found to have violated
the anti-collusion rule may be subject to sanctions.[^28] In addition,
applicants are reminded that they are subject to the antitrust laws,
which are designed to prevent anti-competitive behavior in the
marketplace. If an applicant is found to have violated the antitrust
laws 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.[^29]

**Ex Parte Rule:** Applicants should also be aware that the Commission
has generally exempted auction proceedings from the strict requirements
of the ex parte rule found in Section 1.1208 of the Commission's
rules.[^30]

**Mock Auction:** All applicants found to be qualified bidders will be
eligible to participate in a mock auction on Monday, June 18, 2007. The
Bureau encourages all qualified bidders to take advantage of this
opportunity to become familiar with the FCC's Integrated Spectrum
Auction System ("ISAS" or "FCC Auction System").[^31] In the public
notice announcing the qualified bidders, the Bureau will announce the
bidding schedule for the mock auction. The mock auction will be
conducted over the Internet, and telephonic bidding will be available as
well.

**Electronic Bidding:** Applicants are reminded that qualified bidders
are eligible to bid either electronically or telephonically. Applicants
should specify their bidding preference on the FCC Form 175, if they
have not already done so.

Bidders can access the FCC Auction System over the Internet. Access to
the system via the Internet requires, at a minimum, the following
software:

[]{.mark}

-   Web Browser, either of the following:

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

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

> **Other browsers are not supported.**
>
> 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***](http://java.sun.com/products/archive/j2se/1.4.2_05/index.html)
> (choose the JRE version).

-   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.

**Long-Form Applications:** All applicants should be aware that at the
long-form application stage, they will be subject to the more extensive
reporting requirements contained in the Commission's Part 1 ownership
disclosure rules.[^32]

**Sample Limited Information Round Results Files:** If Auction No. 72 is
conducted with limited information released prior to and during the
auction, two types of reports will be available to bidders: (1)
publicly-available information and (2) bidder-specific information
available only to that bidder when logged in to the FCC Auction System.

The public information will be available on the FCC Auction System
results page and will include for each license the following
information, which will be current as of the conclusion of the most
recently completed round: its provisionally winning bid amount, the
minimum acceptable bid amount for the following round, the gross amounts
of all bids placed on the license during the round, and whether the
license has a provisionally winning bid or is FCC-held. This information
will also be available in downloadable files.

When a bidder is logged in to the FCC Auction System, it will have a
selection of "My Bid Reports" available to it on the FCC Auction
System's bidding page. Information in "My Bid Reports" allows only the
respective bidder to view all of its actions in the current and previous
rounds of the auction.

Samples of the results page downloadable files and bidder-specific "My
Bid Reports" are available on the web page for Auction No. 72,
[http://wireless.fcc.gov/auctions/72/](http://wireless.fcc.gov/auctions/default.htm?job=auction_summary&id=72),
via the "Auction Seminar" link (scroll down to the bottom of the auction
seminar page).[^33]

**CONTACT INFORMATION**

For questions about payment or instructions for wiring upfront payments,
contact Gail Glasser, Auctions Accounting Group, at (202) 418-0578.

For specific questions about an applicant's incomplete status, the
applicant should contact the staff reviewer identified in the
correspondence sent to the applicant by overnight mail.

For technical assistance with accessing the FCC Auction System, 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
generally available Monday through Friday from 8:00 a.m. to 6:00 p.m.
ET. All calls to the FCC Technical Support Hotline are recorded.

For further information concerning this auction proceeding, contact:

Auctions and Spectrum Access Division, Wireless Telecommunications
Bureau:

For auction legal questions:

Howard Davenport at (202) 418-0660

For auction procedure, bidding and general information questions:

Debbie Smith or Barbara Sibert at (717) 338-2868

Mobility Division, Wireless Telecommunications Bureau:

For licensing legal and service rule questions:

Allen Barna (legal) at (202) 418-0620 or Gary Devlin (technical) at
(717) 338-2618

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 -**

[^1]: *See* "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," *Public
    Notice,* DA 07-514 (WTB February 26, 2007) ("*Auction No. 72
    Procedures Public Notice*").

[^2]: Designation of an application as accepted for filing indicates
    that the applicant has provided the certifications and information
    concerning its qualifications as required by our competitive bidding
    rules for participation in the auction. The Bureau notes that under
    the Commission's two-phased auction application process, a winning
    bidder must submit a long-form application after the close of the
    auction to demonstrate its qualifications to hold a Commission
    license and, if a bidding credit is requested, its eligibility for
    the bidding credit requested. *See* 47 C.F.R. § 1.2107 -- 1.2109;
    *see also* Amendment of Part 1 of the Commission's Rules --
    Competitive Bidding Procedures, *Second Report and Order*, 9 FCC Rcd
    2348, 2376-77 ¶¶ 163-168 (1994). Thus, a determination that a
    short-form application is complete and complies with the
    Commission's competitive bidding rules and policies is not
    determinative of an applicant's qualifications to hold a license or
    entitlement to a bidding credit. In the event that an applicant is
    found unqualified to be a Commission licensee or ineligible for
    claimed designated entity benefits, it will be liable for any
    obligations incurred as a result of its participation in the
    auction. *See generally* 47 C.F.R. § 1.2109.

[^3]: *See* 47 C.F.R. § 1.2106.

[^4]: *See* 47 C.F.R. § 1.65 (an applicant must maintain the accuracy
    and completeness of information furnished in its pending application
    and notify the Commission within 30 days of any substantial change
    that may be of decisional significance to that application), 47
    C.F.R. § 1.2105(c)(6) (any applicant that makes or receives a
    prohibited communication must report such communication in writing
    to the Commission no later than five business days after the
    communication occurs).

[^5]: *See* 47 C.F.R. §§ 1.2105(b), 1.2106.

[^6]: *See* 47 C.F.R. §§ 1.65, 1.2105(c)(6).

[^7]: *See* Letter from Margaret W. Wiener, Chief, Auctions and Industry
    Analysis Div., to Patrick Shannon, Esq., Counsel for Lynch 3G
    Communications Corp., 18 FCC Rcd 11552 (WTB 2003) (finding that an
    applicant had failed to timely submit its upfront payment when the
    payment was received by the Commission's bank before the applicable
    deadline, but not credited to the Commission's account until after
    the deadline due to an error of the applicant's bank).

[^8]: *See Auction No. 72 Procedures Public Notice* at 27-31 ¶¶ 88-100.
    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, Pennsylvania.
    Additional information on wire transfers is available on the
    Commission's web site at <http://www.fcc.gov/fees/wiretran.html>.

[^9]: The Commission will not accept checks, credit cards, or automated
    clearing house ("ACH") payments.

[^10]: *See Auction No. 72 Procedures Public Notice* at 23-25 ¶¶ 66-71,
    27-31 ¶¶ 88-100.

[^11]: *See id.,* at 12-13 ¶¶ 25-33.

[^12]: 47 C.F.R. §§ 1.2105(a)(2)(viii), 1.2105(c)(1). *See also*
    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) ("*Part 1 Seventh Report and Order*");
    *id.,* *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, 15297-98 ¶¶ 7-8 (2000).

[^13]: *See Auction No. 72 Procedures Public Notice* at 7-11 ¶¶ 13-21,
    32-34 ¶¶ 112-117*.*

[^14]: 47 C.F.R. § 1.2105(c)(1).

[^15]: *See, e.g.,* Northeast Communications of Wisconsin, LLC,
    *Forfeiture Order*, 19 FCC Rcd 18635 (EB 2004) (imposing forfeiture
    in the amount of \$100,000 for violation of the anti-collusion rule,
    even though the applicant never made an upfront payment for the
    auction and was not listed as a qualified bidder); Letter to Robert
    Pettit, Esq., from Margaret W. Wiener, Chief, Auctions and Industry
    Analysis Div., 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).

[^16]: *See Auction No. 72 Procedures Public Notice* at 33-34 ¶ 117.

[^17]: 47 C.F.R. § 1.2105(c)(7)(i).

[^18]: *See* Letter to Colby M. May from Barbara A. Kreisman and
    Margaret W. Wiener, 20 FCC Rcd 14648 (MB/WTB 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 no bidding agreement).

[^19]: *See* Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules, *Public Notice*, 11 FCC Rcd 9645 (WTB
    1995).

[^20]: *Part 1 Seventh Report and Order*, 16 FCC Rcd at 17549-50 ¶ 6.

[^21]: *See Auction No. 72 Procedures Public Notice* at 8-9 ¶ 15.

[^22]: *See* Application of Nevada Wireless for a License to Provide 800
    MHz Specialized Mobile Radio Service in the Farmington, NM-CO
    Economic Area (EA-155) Frequency Band A, *Memorandum Opinion and
    Order*, 13 FCC Rcd 11973, 11977 ¶ 11 (1998).

[^23]: *Id*., 13 FCC Rcd at 11978 ¶ 13.

[^24]: *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.").

[^25]: 47 C.F.R. § 1.65.

[^26]: 47 C.F.R. § 1.2105(c)(6); *see also Part 1* *Seventh Report and
    Order*, 16 FCC Rcd at 17555 ¶ 17.

[^27]: 47 C.F.R. § 1.2107(d).

[^28]: *See* 47 C.F.R. §§ 1.2105(c), 1.2107(d), and 1.2109(d).

[^29]: 47 C.F.R. § 1.2109(d).

[^30]: *See* 47 C.F.R. § 1.1208. *See also* "Commission Announces that
    Mutually Exclusive 'Short-Form' Applications (Form 175) to
    Participate in Competitive Bidding Process ('Auctions') Are Treated
    as Exempt for *Ex Parte* Purposes," *Public Notice*, 9 FCC Rcd 6760
    (1994). *See also* 47 C.F.R. § 1.1202(d)(1) Note 1.

[^31]: For additional information regarding the FCC's Integrated
    Spectrum Auction System, 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).

[^32]: *See* 47 C.F.R. §§ 1.2107, 1.2112(b)(2).

[^33]: Please note that the sample files of publicly-available
    information were recently replaced to correct an error in the sample
    files that were previously available.