DA 00-2259

October 5, 2000

C AND F BLOCK BROADBAND PCS SPECTRUM AUCTION SCHEDULED FOR DECEMBER 12,
2000

**Notice and Filing Requirements for 422 Licenses in the**

**C and F Block Broadband PCS Spectrum Auction**

**Minimum Opening Bids, Upfront Payments and Other Procedural Issues
*For Final Auction Inventory***

Report No. AUC-00-35-E (Auction No. 35)

I. General Information [1](#general-information)

A. Introduction [1](#introduction)

1\. Background of Proceeding [1](#background-of-proceeding)

2\. Licenses to Be Auctioned [2](#licenses-to-be-auctioned)

B. Rules and Disclaimers [3](#rules-and-disclaimers)

1\. Relevant Authority [3](#relevant-authority)

2\. Prohibition of Collusion [4](#prohibition-of-collusion)

3\. Due Diligence [5](#due-diligence)

4\. Clarification of Payment Issue Relating to Licenses Subject to
Pending Proceedings
[6](#clarification-of-payment-issue-relating-to-licenses-subject-to-pending-proceedings)

5\. Bidder Alerts [7](#bidder-alerts)

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

C. Auction Specifics [8](#auction-specifics)

1\. Auction Date [8](#auction-date)

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

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

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

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

6\. General Contact Information [10](#general-contact-information)

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

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

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

C. Eligibility [12](#eligibility)

1\. Eligibility for Closed Bidding (FCC Form 175 Exhibit C)
[12](#eligibility-for-closed-bidding-fcc-form-175-exhibit-c)

2\. Small Business Bidding Credit Eligibility (FCC Form 175 Exhibit D)
[12](#small-business-bidding-credit-eligibility-fcc-form-175-exhibit-d)

3\. Tribal Land Bidding Credit [13](#tribal-land-bidding-credit)

4\. Applicability of Part 1 Attribution Rules
[13](#applicability-of-part-1-attribution-rules)

5\. Application Showing [14](#application-showing)

D. Special C Block Eligibility Restriction Regarding Surrendered C Block
Licenses
[15](#special-c-block-eligibility-restriction-regarding-surrendered-c-block-licenses)

E. Provisions Regarding Defaulters and Former Defaulters
[16](#provisions-regarding-defaulters-and-former-defaulters-fcc-form-175-exhibit-e)

F. Transfer and Assignment Restrictions on Licenses Won in Closed
Bidding
[17](#transfer-and-assignment-restrictions-on-licenses-won-in-closed-bidding)

G. Unjust Enrichment Payments [17](#unjust-enrichment-payments)

H. Installment Payments [17](#installment-payments)

I. Other Information (Form 175 Exhibits G and H)
[17](#other-information-fcc-form-175-exhibits-f-and-g)

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

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

III\. PRE-AUCTION PROCEDURES [18](#pre-auction-procedures)

A. Auction Seminar [18](#auction-seminar)

B. Short-Form Application (FCC Form 175) --- Due November 6, 2000
[18](#short-form-application-fcc-form-175-due-november-6-2000)

1\. Electronic Filing [18](#electronic-filing)

2\. Completion of the FCC Form 175 [19](#completion-of-the-fcc-form-175)

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

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

D. Upfront Payments --- Due November 27, 2000
[19](#upfront-payments-due-november-27-2000)

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

2\. FCC Form 159 [20](#fcc-form-159)

3\. Amount of Upfront Payment [21](#amount-of-upfront-payment)

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

E. Auction Registration [23](#auction-registration)

F. Remote Electronic Bidding Software
[23](#remote-electronic-bidding-software)

G. Mock Auction [24](#mock-auction)

IV\. AUCTION EVENT [24](#auction-event)

A. Auction Structure [24](#auction-structure)

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

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

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

4\. Auction Stages [26](#auction-stages)

5\. Stage Transitions [27](#stage-transitions)

6\. Auction Stopping Rules [27](#auction-stopping-rules)

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

B. Bidding Procedures [29](#bidding-procedures)

1\. Round Structure [29](#round-structure)

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

3\. Bid Increments and Minimum Accepted Bids
[31](#bid-increments-and-minimum-accepted-bids)

4\. High Bids [32](#high-bids)

5\. Bidding [32](#bidding)

6\. Bid Removal and Bid Withdrawal [33](#bid-removal-and-bid-withdrawal)

7\. Round Results [35](#round-results)

8\. Auction Announcements [35](#auction-announcements)

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

V. POST-AUCTION PROCEDURES [35](#post-auction-procedures)

A. Down Payments and Withdrawn Bid Payments
[35](#down-payments-and-withdrawn-bid-payments)

B. Long-Form Application [36](#long-form-application)

C. Tribal Land Bidding Credit [36](#tribal-land-bidding-credit-1)

D. Auction Discount Voucher [36](#auction-discount-voucher)

E. Default and Disqualification [37](#default-and-disqualification)

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

VI\. Attachment A A-[1](#attachment-a)

VII\. Attachment B B-[1](#attachment-b)

VIII\. Attachment C C-[1](#attachment-c)

IX\. Attachment D D-[1](#attachment-d)

X. Attachment E E-[1](#attachment-e)

XI\. Attachment F F-[1](#attachment-f)

XII\. Attachment G G-[1](#attachment-g)

XIII\. Attachment H H-[1](#attachment-h)

XIV\. Attachment I I-[1](#attachment-i)

# General Information

## Introduction

By this public notice, the Wireless Telecommunications Bureau ("Bureau")
announces the procedures and minimum opening bids for the upcoming
auction of broadband Personal Communications Services (PCS) spectrum in
the C and F blocks (Auction No. 35) scheduled for December 12, 2000.
This public notice also provides the final inventory of licenses to be
made available for this auction; we will not add to this inventory for
the December 12, 2000, auction.

On March 3, 2000, in accordance with the Balanced Budget Act of
1997,[^1] the Bureau released a public notice seeking comment on reserve
prices or minimum opening bids and the procedures to be used in Auction
No. 35.[^2] After the release of *C/F Block Sixth Report and Order,*[^3]
the Bureau released a second public notice on September 6, 2000,
revising the list of licenses available, and again seeking comment on
reserve prices or minimum opening bids and the procedures to be used in
Auction No. 35.[^4] The Bureau received seven comments and two reply
comments in response to the *Auction No. 35 Public Notice*,[^5] and
three comments and two reply comments in response to the *Auction No. 35
Comment Public Notice*.[^6]

### Background of Proceeding

Auction No. 35 will be the fourth auction of C block spectrum and the
third auction of F block spectrum. In the past, these spectrum blocks
were designated by the Commission as "entrepreneurs' blocks," meaning
that participation in auctions of C and F block licenses was limited to
entities qualifying under the Commission's rules as entrepreneurs.[^7]
The initial C block licenses were awarded through two auctions, Auction
No. 5, which ended on May 6, 1996, and Auction No. 10, which concluded
on July 16, 1996. Auction No. 11, the initial F block auction, ended on
January 14, 1997, and also included D and E block licenses. Auction No.
22, which concluded on April 15, 1999, made available C, E and F block
licenses that had been returned to, or reclaimed by, the Commission.[^8]

On August 29, 2000, the Commission released the *C/F Block Sixth Report
and Order*, revising the service and auction rules for auction of C and
F block PCS licenses. The Commission decided to reconfigure each 30 MHz
C block license available in Auction No. 35 and other future broadband
PCS auctions into three 10 MHz C block licenses.[^9] The Commission also
divided Basic Trading Areas ("BTAs") into two tiers according to the
population size, with Tier 1 comprising markets with population at or
above 2.5 million, based on 1990 census figures, and Tier 2 comprising
the remaining markets. The Commission decided that some licenses would
be available to all bidders in "open" bidding, while other licenses
would be available only to entrepreneurs in "closed" bidding. The
Commission established open bidding for all C and F block licenses
available but unsold in Auction No. 22 or any subsequent auction. The
Commission also established open bidding for the following licenses: two
of the three reconfigured 10 MHz C block licenses in Tier 1, one of the
three reconfigured 10 MHz C block licenses in Tier 2, the 15 MHz C block
licenses in Tier 1, and all F block licenses (Tier 1 and Tier 2). The
Commission established small and very small business bidding credits of
15 percent and 25 percent, respectively, for licenses won in open
bidding and eliminated bidding credits for licenses won in closed
bidding. Additionally, the Commission removed from its rules the Section
24.710 license cap, which had prohibited an applicant from winning more
than 98 of the licenses available in the C and F blocks. Finally, the
Commission decided that the Commercial Mobile Radio Services spectrum
cap would continue to apply to C and F block licenses, including those
won in Auction No. 35.

### Licenses to Be Auctioned

The 422 licenses available in Auction No. 35 cover 195 various Basic
Trading Areas (BTAs) and consist of 312 C block 10 MHz licenses, 43 C
block 15 MHz licenses, and 67 F block 10 MHz licenses. As stated, the
BTAs are divided into two tiers according to the population size, with
Tier 1 comprising markets with population at or above 2.5 million, and
Tier 2 comprising the remaining markets. There will be 252 licenses open
to all bidders in "open" bidding, while 170 licenses will only be
available to entrepreneurs in "closed" bidding.

The following table contains the Block/Eligibility Status/Frequency
Cross Reference List for Auction No. 35:

+---------+----------+----------+---------+--------------------------+
| Channel | Eli      |          | Ba      | Frequencies              |
|         | gibility |          | ndwidth |                          |
| Block   | Status   |          | (MHz)   |                          |
+---------+----------+----------+---------+--------------------------+
|         | Tier 1   | Tier 2   |         |                          |
+---------+----------+----------+---------+--------------------------+
| C1      | \[Open\] | Closed   | 15      | 1902.5-1910, 1982.5-1990 |
+---------+----------+----------+---------+--------------------------+
| C2      | \[Open\] | Closed\* | 15      | 1985-1902.5, 1975-1982.5 |
+---------+----------+----------+---------+--------------------------+
| C3      | Closed\* | Closed\* | 10      | 1895-1900, 1975-1980     |
+---------+----------+----------+---------+--------------------------+
| C4      | Open     | Closed\* | 10      | 1900-1905, 1980-1985     |
+---------+----------+----------+---------+--------------------------+
| C5      | Open     | Open     | 10      | 1905-1910, 1985-1990     |
+---------+----------+----------+---------+--------------------------+
| F       | Open     | Open     | 10      | 1890-1895, 1970-1975     |
+---------+----------+----------+---------+--------------------------+

> Note: Brackets indicate that no licenses of the particular
> tier/channel block combination will be available in Auction No. 35.
>
> \* The entrepreneur eligibility restriction does not apply to licenses
> that were available but unsold in Auction No. 22. Tier 2 C2 licenses
> are classified as closed, but all of the C2 licenses available in
> Auction No. 35 were available but unsold in Auction No. 22 and are
> therefore open to all bidders. Certain C block licenses were also
> available but unsold in Auction No. 22 (as 30 MHz licenses), and the
> corresponding C3 and C4 licenses are therefore open to all bidders.

A complete list of licenses available for Auction No. 35 is included as
Attachment A. The attachment specifies the eligibility status of each
license.

AT&T proposes switching the eligibility status of the C3 and C5 blocks,
thereby making all of the C3 licenses open to all bidders. AT&T argues
that the C3 block should be open rather than the C5 block, because that
would afford AT&T and other bidders the opportunity to obtain 20 MHz of
contiguous spectrum. [^10] We note that granting AT&T's request would be
contrary to the Commission's recently adopted rules on the location of
open and closed blocks of C block spectrum. As the Commission indicated
in the *C/F Block Sixth Report and Order*, it placed the closed band(s)
next to the F block spectrum in order that entrepreneurs aggregating
newly acquired closed 10 MHz C block licenses with F block licenses
might enjoy reduced base station facilities costs and simplified
maintenance requirements.[^11] Accordingly, we will not make the change
requested by AT&T.

## Rules and Disclaimers

### Relevant Authority

Prospective bidders must familiarize themselves thoroughly with the
Commission's rules relating to Broadband PCS, contained in Title 47,
Part 24 of the Code of Federal Regulations, and those relating to
application and auction procedures, contained in Title 47, Part 1 of the
Code of Federal Regulations.

Prospective bidders must also be thoroughly familiar with the
procedures, terms and conditions (collectively, "Terms") contained in
this public notice; the *Auction No. 35 Comment* *Public Notice*; the
*C/F Block Sixth Report and Order*; the *Part 1 Fifth Report and Order*;
the *C Block Second Report and Order*;[^12] the *C Block Reconsideration
Order*;[^13] the *C Block Fourth Report and Order*;[^14] Part 24,
Subparts A, B, C, E, H, and I, of the Commission's Rules concerning
broadband PCS; and Part 1, Subpart Q, of the Commission's Rules
concerning competitive bidding proceedings.

The terms contained in the Commission's rules, relevant orders, and
public notices are not negotiable. The Commission may amend or
supplement the information contained in our public notices at any time,
and will issue public notices to convey any new or supplemental
information to bidders. It is the responsibility of all prospective
bidders to remain current with all Commission rules and with all public
notices and pronouncements, including orders on delegated authority or
by the Commission relevant to one or more of the licenses or otherwise
pertaining to this auction. Copies of most Commission documents,
including public notices, can be retrieved from the FCC Internet node
via anonymous ftp at ftp://fcc.gov or the FCC Auctions World Wide Web
site at [http://www.fcc.gov/wtb/auctions]{.underline}. Additionally,
documents may be obtained for a fee by calling the Commission's copy
contractor, International Transcription Service, Inc. ("ITS"), at (202)
314-3070. When ordering documents from ITS, please provide the
appropriate FCC number (for example, FCC 00-313 for the *C/F Block Sixth
Report and Order*). See also Due Diligence section below.

### Prohibition of Collusion

To ensure the competitiveness of the auction process, the Commission's
rules prohibit applicants for the same geographic license area from
communicating with each other during the auction about bids, bidding
strategies, or settlements.[^15] This prohibition begins at the
short-form application filing deadline and ends at the down payment
deadline after the auction. Bidders competing for licenses in the same
geographic license areas are encouraged not to use the same individual
as an authorized bidder. A violation of the anti‑collusion rule could
occur if an individual acts as the authorized bidder for two or more
competing applicants, and conveys information concerning the substance
of bids or bidding strategies between the bidders he or she is
authorized to represent in the auction. Also, if the authorized bidders
are different individuals employed by the same organization (*e.g.*, law
firm or consulting firm), a violation could similarly occur. 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.[^16]

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.[^17] In Auction No. 35, for example,
the rule would apply to any applicants bidding for the same BTA.
Therefore, applicants that apply to bid for any license in a BTA would
be precluded from communicating after filing the FCC Form 175 short-form
application with any other applicant for a license in the same BTA.
However, applicants may enter into bidding agreements *before* filing
their FCC Form 175, as long as they disclose the existence of the
agreement(s) in their FCC Form 175.[^18] If parties agree in principle
on all material terms prior to the short-form filing deadline, those
parties must be identified on the short-form application 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 filing deadline, an
applicant would not include the names of those parties on its
application, and may not continue negotiations with other applicants for
the same geographic license areas.[^19] By signing their FCC Form 175
short-form applications, applicants are certifying their compliance with
Section 1.2105(c). In addition, Section 1.65 of the Commission's rules
requires an applicant to *maintain* the accuracy and completeness of
information furnished in its pending application and to notify the
Commission within 30 days of any substantial change that may be of
decisional significance to that application.[^20] Thus, Section 1.65
requires an auction applicant to notify the Commission of any violation
of the anti-collusion rules immediately upon learning of such violation.

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

### Due Diligence

Potential bidders are reminded that private and common carrier fixed
microwave services ("FMS") operating in the 1850-1990 MHz band (and
other bands) are being relocated to available frequencies in higher
bands or to other media. Bidders should become familiar with the status
of FMS operation and relocation, and applicable Commission rules and
orders, in order to make a reasoned, appropriate decision about their
participation in Auction No. 35 and their bidding strategy.[^21]

Potential bidders and interested parties should be aware that various
proceedings that may relate to the licenses available in Auction No. 35
may be pending or subject to further administrative review before the
Commission, including, for example, waiver requests, petitions for
reconsideration, and applications for review. In addition, certain
judicial proceedings that may relate to the licenses available in
Auction No. 35 are pending or may be subject to further review.
Resolution of these matters could have an effect on the availability of
spectrum included in Auction No. 35 and the auction is subject to such
matters. Some of these matters (whether before the Commission or the
courts) may not be resolved by the time of the auction. The Commission
will continue to act on matters before it, but it makes no
representations as to the resolution of judicial proceedings.
**Potential bidders are solely responsible for identifying associated
risks, and investigating and evaluating the degree to which such matters
may affect their ability to bid on or otherwise acquire licenses in
Auction No. 35.**

Potential bidders may obtain information about licenses available in
Auction No. 35 through the Bureau's licensing databases on the World
Wide Web at <http://www.fcc.gov/wtb/uls>. Potential bidders should
direct questions regarding the search capabilities to the FCC Technical
Support hotline at (202) 414-1250 (voice) or (202) 414-1255 (TTY), or
via e-mail at <ulscomm@fcc.gov>. The hotline is available to assist with
questions Monday through Friday, from 7:00 AM to 10:00 PM ET, Saturday,
8:00 AM to 7:00 PM ET, and Sunday, 12:00 noon to 6:00 PM ET. In order to
provide better service to the public, *all calls to the hotline are
recorded.* 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.

Further, potential bidders are strongly encouraged to physically inspect
any sites located in, or near, the geographic area for which they plan
to bid.

Finally, potential bidders are strongly encouraged to make periodic, and
continuing, inquiries to the Office of the Secretary and other available
sources regarding any proceedings that are, or may be, pending with
respect to the licenses available in Auction No. 35.

### Clarification of Payment Issue Relating to Licenses Subject to Pending Proceedings

As noted above, potential bidders should be aware that certain of the
licenses included in Auction No. 35 are or may become the subject of
Commission or judicial proceedings initiated by parties claiming to have
continuing interests in the licenses, despite their failure to meet
payment obligations. This public notice clarifies that the Commission
will return the payments made by winning bidders of licenses in Auction
No. 35 in the event that such bidders are subsequently required to
surrender licenses won to prior applicants or license holders as a
result of final determinations reached in pending proceedings. [^22] The
Commission, however, will not pay interest on the returned payments as
it lacks legal authority to do so.

Including contested licenses in the auction helps to fulfill the
Commission's statutory mandate to hasten the development and deployment
of new technologies and services and to promote competition for the
benefit of the public.[^23] Returning payments to winning bidders if
licenses won are later determined to be unavailable due to subsequent
resolution of other proceedings furthers these vital public interest
goals by reducing uncertainty in the licensing process and encouraging
auction participants to bid on licenses regardless of whether they are
subject to pending proceedings. Retaining payments under the
circumstances could have a chilling effect on participation in Auction
No. 35 and would therefore undermine our efforts to encourage more
efficient use of the spectrum. We note that winning bidders of licenses
subject to pending proceedings are still required to meet the normal
payment and construction schedules established by the Commission.[^24]

### Bidder Alerts 

All applicants must certify on their FCC Form 175 applications under
penalty of perjury that they are legally, technically, financially and
otherwise qualified to hold a license, and not in default on any payment
for Commission licenses (including down payments) or delinquent on any
non-tax debt owed to any Federal agency.[^25] Prospective bidders are
reminded that submission of a false certification to the Commission is a
serious matter that may result in severe penalties, including monetary
forfeitures, license revocations, exclusion from participation in future
auctions, and/or criminal prosecution.

The FCC makes no representations or warranties about the use of this
spectrum for particular services. Applicants should be aware that a FCC
auction represents an opportunity to become a FCC licensee in this
service, subject to certain conditions and regulations. A FCC auction
does not constitute an endorsement by the FCC of any particular
services, technologies or products, nor does an FCC license constitute a
guarantee of business success. Applicants and interested parties should
perform their own due diligence before proceeding, as they would with
any new business venture.

As is the case with many business investment opportunities, some
unscrupulous entrepreneurs may attempt to use Auction No. 35 to deceive
and defraud unsuspecting investors. Common warning signals of fraud
include the following:

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

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

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

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

Information about deceptive telemarketing investment schemes is
available from the FTC at (202) 326-2222 and from the SEC at (202)
942-7040. Complaints about specific deceptive telemarketing investment
schemes should be directed to the FTC, the SEC, or the National Fraud
Information Center at (800) 876-7060. Consumers who have concerns about
specific proposals regarding Auction No. 35 may also call the FCC
Consumer Center at (888) CALL-FCC ((888) 225-5322).

### National Environmental Policy Act ("NEPA") Requirements

Licensees must comply with the Commission's rules regarding the National
Environmental Policy Act (NEPA).[^26] The construction of a wireless
antenna facility is a federal action and the licensee must comply with
the Commission's NEPA rules for each such facility.[^27] The
Commission's NEPA rules require, among other things, that the licensee
consult with expert agencies having NEPA responsibilities, including the
U.S. Fish and Wildlife Service, the State Historic Preservation Office,
the Army Corp of Engineers and the Federal Emergency Management Agency
(through the local authority with jurisdiction over floodplains). The
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 must also prepare environmental
assessments for facilities that include high intensity white lights in
residential neighborhoods or excessive radio frequency emission.

## Auction Specifics

### Auction Date

The auction will begin on Tuesday, December 12, 2000. The initial
schedule for bidding will be announced by public notice at least one
week before the start of the auction. Unless otherwise announced,
bidding on all licenses will be conducted on each business day until
bidding has stopped on all licenses.

In response to comments received by Verizon and reply comments received
by BellSouth/SBC, the Commission announces that bidding for Auction No.
35 will be temporarily suspended during the holidays. Beginning Friday,
December 22, 2000 through Wednesday, January 3, 2001, no bidding will be
conducted. Bidding will resume on Thursday, January 4, 2001.

### Auction Title

Auction No. 35 -- C and F Block Broadband PCS

### Bidding Methodology

The bidding methodology for Auction No. 35 will be simultaneous multiple
round bidding. Bidding will be permitted only from remote locations,
either electronically (by computer) or telephonically.

### Pre-Auction Dates and Deadlines

Auction Seminar October 20, 2000

Short-Form Application (FCC FORM 175) November 6, 2000; 6:00 p.m. ET

Upfront Payments (via wire transfer) November 27, 2000; 6:00 p.m. ET

Orders for Remote Bidding Software November 28, 2000; 6:00 p.m. ET

Mock Auction December 8, 2000

Auction Begins December 12, 2000

### Requirements For Participation

Those wishing to participate in the auction must:

-   Submit a short-form application (FCC Form 175) electronically by
    6:00 p.m. ET, November 6, 2000.

-   Submit a sufficient upfront payment and a FCC Remittance Advice Form
    (FCC Form 159) by 6:00 p.m. ET, November 27, 2000.

-   Comply with all provisions outlined in this public notice.

### General Contact Information

+-----------------------------------+-----------------------------------+
| GENERAL AUCTION INFORMATION       | FCC Auctions Hotline              |
+-----------------------------------+-----------------------------------+
| General Auction Questions         | \(888\) 225-5322, Press Option #2 |
+-----------------------------------+-----------------------------------+
| Seminar Registration              | or direct (717) 338-2888          |
+-----------------------------------+-----------------------------------+
| Orders for Remote Bidding         | Hours of service: 8 a.m. -- 5:30  |
| Software                          | p.m. ET                           |
+-----------------------------------+-----------------------------------+
| AUCTION LEGAL INFORMATION         | Auctions and Industry Analysis    |
|                                   | Division                          |
+-----------------------------------+-----------------------------------+
| Auction Rules, Policies,          | Legal Branch (202) 418-0660       |
| Regulations                       |                                   |
+-----------------------------------+-----------------------------------+
| LICENSING INFORMATION             | Commercial Wireless Division      |
+-----------------------------------+-----------------------------------+
| Rules, Policies, Regulations      | \(202\) 418-0620                  |
|                                   |                                   |
| Licensing Issues                  |                                   |
|                                   |                                   |
| Due Diligence                     |                                   |
|                                   |                                   |
| Incumbency Issues                 |                                   |
+-----------------------------------+-----------------------------------+
| TECHNICAL SUPPORT                 | FCC Auctions Technical Support    |
|                                   | Hotline                           |
+-----------------------------------+-----------------------------------+
| Electronic Filing Assistance      | \(202\) 414-1250 (Voice),         |
+-----------------------------------+-----------------------------------+
| Software Downloading              | \(202\) 414-1255 (TTY)            |
|                                   |                                   |
|                                   | Hours of service: Monday through  |
|                                   | Friday 7 a.m. to 10:00 p.m. ET,   |
|                                   | Saturday, 8:00 a.m. to 7:00 p.m., |
|                                   | Sunday, 12:00 noon to 6:00 p.m.   |
+-----------------------------------+-----------------------------------+
| PAYMENT INFORMATION               | FCC Auctions Accounting Branch    |
+-----------------------------------+-----------------------------------+
| Wire Transfers                    | \(202\) 418-1995                  |
+-----------------------------------+-----------------------------------+
| Refunds                           | \(202\) 418-2843 (Fax)            |
+-----------------------------------+-----------------------------------+
| TELEPHONIC BIDDING                | Will be furnished only to         |
|                                   | qualified bidders                 |
+-----------------------------------+-----------------------------------+
| FCC COPY CONTRACTOR               | International Transcription       |
|                                   | Services, Inc.                    |
+-----------------------------------+-----------------------------------+
| Additional Copies of              | 445 12^th^ Street, SW Room        |
|                                   | CY-B400                           |
+-----------------------------------+-----------------------------------+
| Commission Documents              | Washington, DC 20554              |
|                                   |                                   |
|                                   | \(202\) 314-3070                  |
+-----------------------------------+-----------------------------------+
| PRESS INFORMATION                 | Meribeth McCarrick (202) 418-0654 |
+-----------------------------------+-----------------------------------+
| FCC FORMS                         | \(800\) 418-3676 (outside         |
|                                   | Washington, DC)                   |
|                                   |                                   |
|                                   | \(202\) 418-3676 (in the          |
|                                   | Washington Area)                  |
|                                   |                                   |
|                                   | <http://www.fcc.gov/formpage>     |
+-----------------------------------+-----------------------------------+
| FCC INTERNET SITES                | [http://                          |
|                                   | www.fcc.gov](http://www.fcc.gov/) |
|                                   |                                   |
|                                   | [ftp:/                            |
|                                   | /ftp.fcc.gov](ftp://ftp.fcc.gov/) |
|                                   |                                   |
|                                   | <http://www.fcc.gov/wtb/auctions> |
+-----------------------------------+-----------------------------------+

# SHORT-FORM (FCC FORM 175) APPLICATION REQUIREMENTS

Guidelines for completion of the short-form (FCC Form 175) are set forth
in Attachment D to this public notice. The short-form application seeks
the applicant's name and address, legal classification, status, small
and very small business bidding credit eligibility, identification of
the license(s) sought, the authorized bidders and contact persons. All
applicants must certify on their FCC Form 175 applications under penalty
of perjury that they are legally, technically, financially and otherwise
qualified to hold a license and, as discussed below in Section II.E
(Provisions Regarding Defaulters and Former Defaulters), that they are
not in default on any payment for Commission licenses (including down
payments) or delinquent on any non-tax debt owed to any Federal agency.

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

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. Specifically, in completing FCC Form 175,
applicants will be required to file an "Exhibit A" providing a full and
complete statement of the ownership of the bidding entity. The ownership
disclosure standards for the short-form are set forth in Section 1.2112
of the Commission's rules.[^28]

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

Applicants will be required to identify on their short-form applications
any parties with whom they have entered into any consortium
arrangements, joint ventures, partnerships or other agreements or
understandings which relate in any way to the licenses being auctioned,
including any agreements relating to post-auction market structure.
*See* 47 C.F.R. §§ 1.2105(a)(2)(viii) and 1.2105(c)(1). Applicants will
also be required to certify on their short-form applications that they
have not entered into any explicit or implicit agreements, arrangements
or understandings of any kind with any parties, other than those
identified, regarding the amount of their bids, bidding strategies, or
the particular construction permits on which they will or will not bid.
*See* 47 C.F.R*.* § 1.2105(a)(2)(ix). As discussed above, if an
applicant has had discussions, but has not reached a joint bidding
agreement by the short-form deadline, it would not include the names of
parties to the discussions on its applications and may not continue
discussions with applicants for the same geographic license area(s)
after the deadline.[^29] Where applicants have entered into consortia or
joint bidding arrangements, applicants must submit an "Exhibit B" to the
FCC Form 175.

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

## Eligibility

### Eligibility for Closed Bidding (FCC Form 175 Exhibit C)

***General rule.*** In order to be eligible to bid for one or more
closed licenses, an applicant must show on Exhibit C that, as of the FCC
Form 175 filing deadline, the applicant, its affiliates, persons or
entities that hold interests in the applicant, and their affiliates,
have combined total assets of less than \$500 million and have had
combined gross revenues of less that \$125 million in each of the last
two years. Applicants that can make this showing qualify as
"entrepreneurs" for purposes of C and F block auctions. *See* Section
24.709 of the Commission's Rules.[^31]

***Grandfather exception.*** Qualified applicants that were eligible for
and participated in Auction No. 5 or 10 may bid on closed C block
licenses in any auction that begins on or before March 23, 2001, even if
their total assets and gross revenues exceed the financial caps for
auction participation as an entrepreneur.[^32] This exception does not
extend to F block licenses.

### Small Business Bidding Credit Eligibility (FCC Form 175 Exhibit D)

Bidding credits are available to small and very small businesses, or
consortia thereof, (as defined in 47 C.F.R § 24.720(b)) that win
licenses in open bidding. A bidding credit represents the amount by
which a bidder's winning bids are discounted.[^33] The size of the
bidding credit depends on the average annual gross revenues for the
preceding three years of the bidder, together with its affiliates and
controlling interests of the bidder and its affiliates:

-   A bidder with average annual gross revenues of not more than \$40
    million for the preceding three years ("small business") receives a
    15 percent discount on its winning bids for C and F block
    licenses;[^34]

```{=html}
<!-- -->
```
-   A bidder with average annual gross revenues of not more than \$15
    million for the preceding three years ("very small business")
    receives a 25 percent discount on its winning bids for C and F block
    licenses.[^35]

Bidding credits are not cumulative; qualifying applicants receive either
the 15 percent or the 25 percent bidding credit, but not both. No small
and very small business bidding credits are provided for licenses
subject to closed bidding.

### Tribal Land Bidding Credit

To encourage the growth of wireless services in federally recognized
tribal lands the Commission has implemented a tribal land bidding
credit. *See* Part V.C.

### Applicability of Part 1 Attribution Rules

***Controlling interest standard.*** On August 14, 2000, the Commission
released the *Part 1 Fifth Report and Order*,[^36] in which the
Commission, *inter alia*, adopted a "controlling interest" standard for
attributing to auction applicants the total assets and/or gross revenues
of their investors and affiliates in determining entrepreneur and small
business eligibility for future C and F block auctions.[^37] The
Commission observed that the rule modifications adopted in the various
Part 1 orders would result in discrepancies and/or redundancies between
certain of the new Part 1 rules and existing service-specific rules, and
the Commission delegated to the Bureau the authority to make conforming
edits to the Code of Federal Regulations (CFR) consistent with the rules
adopted in the Part 1 proceeding.[^38] Time may not permit conforming
edits to the Part 24 C and F block rules to be made in advance of
Auction No. 35; however, the Part 1 rules that superseded inconsistent
service-specific rules will control in Auction No. 35.[^39]
*Accordingly, the "controlling interest" standard as set forth will be
in effect for Auction No. 35, even if conforming edits to the CFR are
not made prior to the auction.*

***Control.*** The term "control" includes both *de facto* and *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.[^40] The following are
some common indicia of 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; or

-   the entity plays an integral role in management decisions.

***Attribution for entrepreneur eligibility.*** For purposes of
determining which entities qualify as entrepreneurs for closed bidding,
the Commission will consider the total assets and gross revenues of the
applicant, its controlling interest holders, the affiliates of the
applicant, and their controlling interest holders. The Commission does
not impose specific equity requirements on parties with controlling
interests. Once principals or entities with a controlling interest are
determined, only the assets and revenues of those principals or
entities, the applicant, and their affiliates will be counted in
determining entrepreneur eligibility. Applicants for closed bidding in
Auction No. 35 should not include existing C and F block licenses in
their calculations of total assets; however, all other Commission
licenses must be included in such calculations.[^41]

***Attribution for small and very small business eligibility.***
Similarly, in determining which entities qualify as small or very small
businesses, the Commission will consider the gross revenues of the
applicant, its controlling interest holders, the affiliates of the
applicant, and their controlling interest holders. As stated, the
Commission does not impose specific equity requirements on controlling
interest holders. Once principals or entities with a controlling
interest are determined, only the revenues of those principals or
entities, the applicant and their affiliates will be counted in
determining small business eligibility.

A consortium of small or very small businesses is a "conglomerate
organization formed as a joint venture between or among mutually
independent business firms," each of which *individually* must satisfy
the definition of small or very small business in Section 24.720(b).
Thus, each consortium member must disclose its gross revenues along with
those of its affiliates, controlling interests, and controlling
interests' affiliates. We note that although the gross revenues of the
consortium members will not be aggregated for purposes of determining
eligibility for small or very small business credits, this information
must be provided to ensure that each individual consortium member
qualifies for any bidding credit awarded to the consortium.

### Application Showing

Applicants should note that they will be required to file supporting
documentation to their FCC Form 175 short-form applications to establish
that they satisfy the eligibility requirements to qualify as
entrepreneurs and/or small or very small businesses (or consortia of
small or very small businesses) for this auction.[^42]

Applicants should further note 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 and its attachments are true and correct. Submission of a
false certification to the Commission may result in penalties, including
monetary forfeitures, license forfeitures, ineligibility to participate
in future auctions, and/or criminal prosecution.

***Entrepreneur eligibility (Exhibit C).*** Entities applying to bid on
closed licenses will be required to disclose on Exhibit C to their FCC
Form 175 short-form applications, *separately and in the aggregate*, the
gross revenues for the preceding two years and the total assets of each
of the following: (1) the applicant, (2) the applicant's affiliates, (3)
the applicant's controlling interest holders, and (4) the affiliates of
the applicant's controlling interest holders. Certification that the
gross revenues for each of the preceding two years or the total assets
do not exceed the applicable limit is not sufficient. The applicant must
provide separately for itself, its affiliates, its controlling interest
holders, and their affiliates a schedule of gross revenues for *each* of
the preceding two years. As stated, entities applying for closed bidding
under the grandfather exception (47 C.F.R. § 24.709(b)(i)) need not meet
the total assets and gross revenues limits of Section 24.709(a) of the
Commission's rules. Applicants claiming auction eligibility under the
grandfather exception should note the Commission's clarification of this
exception in the *C/F Block Sixth Report and Order*.[^43]

***Small and very small business eligibility (Exhibit D).*** Entities
applying to bid as small or very small businesses (or consortia of small
or very small businesses) will be required to disclose on Exhibit D to
their FCC Form 175 short-form applications, *separately and in the
aggregate*, the gross revenues for the preceding three years of each of
the following: (1) the applicant, (2) the applicant's affiliates, (3)
the applicant's controlling interest holders, and (4) the affiliates of
the applicant's controlling interest holders. Certification that the
average annual gross revenues for the preceding three years do not
exceed the applicable limit is not sufficient. A statement of the total
gross revenues for the preceding three years is also insufficient. The
applicant must provide separately for itself, its affiliates, its
controlling interest holders, and their affiliates a schedule of gross
revenues for *each* of the preceding three years, as well as a statement
of total average gross revenues for the three-year period. If the
applicant is applying as a consortium of very small or small businesses,
this information must be provided for each consortium member.

## Special C Block Eligibility Restriction Regarding Surrendered C Block Licenses

C block licensees that surrendered C block licenses pursuant to the
disaggregation, prepayment, and/or amnesty/prepayment election options
the Commission made available in the *C Block Second Report and Order
and Further Notice*,[^44] as modified by the *C Block Reconsideration
Order*,[^45] are ineligible to reacquire the spectrum represented by
their surrendered licenses through auction participation, or by any
other means, until March 23, 2001. This prohibition extends to
qualifying members of the licensee's control group, and their
affiliates.[^46] Licensees that surrendered licenses pursuant to the
"pure amnesty" election option remain eligible to reacquire the spectrum
represented by those surrendered licenses through auction participation
or a secondary market transaction.[^47] Applicants that are prohibited
from bidding on licenses representing previously surrendered spectrum,
should not select "all markets" on their FCC Form 175 application if any
of their surrendered spectrum is available in Auction No. 35.

## Provisions Regarding Defaulters and Former Defaulters (FCC Form 175 Exhibit E)

Each applicant must certify on its FCC Form 175 application that it is
not in default on any Commission licenses and that it is not delinquent
on any non-tax debt owed to any Federal agency.[^48] In addition, each
applicant must attach to its FCC Form 175 application a statement made
under penalty of perjury indicating whether or not the applicant has
ever been in default on any Commission licenses or has ever been
delinquent on any non-tax debt owed to any federal agency.[^49]
**Applicants must include this statement as Exhibit E of the FCC Form
175.** If any of an applicant's controlling interests holders or their
affiliates, as defined by Section 1.2110 of the Commission's rules (as
recently amended in the *Part 1 Fifth Report and Order*) have ever been
in default on any Commission license or have ever been delinquent on any
non-tax debt owed to any Federal agency, the applicant must include such
information as part of the same attached statement.[^50] Prospective
bidders are reminded that the statement must be made under penalty of
perjury and, further, submission of a false certification to the
Commission is a serious matter that may result in severe penalties,
including monetary forfeitures, license revocations, exclusion from
participation in future auctions, and/or criminal prosecution.

"Former defaulters" --- *i.e.*, applicants, including their attributable
interest holders, that in the past have defaulted on any Commission
licenses or been delinquent on any non-tax debt owed to any Federal
agency, but that have since remedied all such defaults and cured all of
their outstanding non-tax delinquencies --- are eligible to bid in
Auction No. 35, provided that they are otherwise qualified. However, as
discussed *infra* in Section III.D.3, former defaulters are required to
pay upfront payments that are fifty percent more than the normal upfront
payment amounts.[^51]

## Transfer and Assignment Restrictions on Licenses Won in Closed Bidding

C or F block licenses won in closed bidding generally may be transferred
or assigned only to an entity that meets the entrepreneur financial caps
or that holds another C or F block license that it acquired while
meeting the entrepreneur financial caps. This restriction ends five
years after the date of the initial license grant or upon notification
by the licensee that it has satisfied its five-year construction
requirement under 47 C.F.R. § 24.203(c), whichever comes first.[^52]
Licenses won in open bidding are not subject to this restriction and may
be transferred or assigned any time after grant to any qualified entity.

## Unjust Enrichment Payments

C or F block licensees that use a small or very small business bidding
credit, and during the first five years of their license term seek to
assign or transfer control of a license to an entity that does not meet
the eligibility criteria for a small or very small business bidding
credit, or that is eligible for a lower bidding credit, will have to
reimburse the U.S. Government for a percentage of the amount of the
bidding credit, plus interest.[^53]

In the *C/F Block Sixth Report and Order*, the Commission decided that
licensees are not subject to bidding credit unjust enrichment payments
for early transfer or assignment of licenses won in Auction No. 5 or No.
10.[^54] At the request of Verizon and BellSouth/SBC,[^55] we clarify
that transfer or assignment of a license won in Auctions No. 11, 22, 35,
or any other auction using a small or very small business bidding
credit, will still be subject to any applicable bidding credit unjust
enrichment payment under the Commission's rules.[^56]

## Installment Payments

Installment payment plans will not be available in Auction No. 35.

## Other Information (FCC Form 175 Exhibits F and G)

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

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

After the short-form filing deadline (November 6, 2000), applicants may
make only minor changes to their FCC Form 175 applications. Applicants
will not be permitted to make major modifications to their applications
(*e.g*., change their license selections or proposed service areas,
change the certifying official or change control of the applicant or
change bidding credits). *See* 47 C.F.R. § 1.2105. Permissible minor
changes include, for example, deletion and addition of authorized
bidders (to a maximum of three) and revision of exhibits. Applicants
should make these changes on-line, and submit a letter to Louis Sigalos,
Deputy Chief, Auctions and Industry Analysis Division, Wireless
Telecommunications Bureau, Federal Communications Commission, 445 12th
Street, SW, Suite 4-A668 Washington, DC 20554, briefly summarizing the
changes. Questions about other changes should be directed to Audrey
Bashkin of the Auctions and Industry Analysis Division at (202)
418-0660.

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

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

# PRE-AUCTION PROCEDURES

## Auction Seminar

On Friday, October 20, 2000, the FCC will sponsor a free seminar for
Auction No. 35 at the Federal Communications Commission, located at 445
12^th^ Street, SW, Washington, DC The seminar will provide attendees
with information about pre-auction procedures, conduct of the auction,
FCC remote bidding software, and the C and F block broadband PCS
spectrum and auction rules. The seminar will also provide an opportunity
for prospective bidders to ask questions of FCC staff.

To register, complete the registration form attached hereto as
Attachment B and submit it by Wednesday, October 18, 2000. Registrations
are accepted on a first-come, first-served basis.

## Short-Form Application (FCC Form 175) --- Due November 6, 2000

In order to be eligible to bid in this auction, applicants must first
submit a FCC Form 175 application. This application must be submitted
electronically and received at the Commission no later than 6:00 p.m. ET
on November 6, 2000. Late applications will not be accepted.

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

### Electronic Filing

Applicants must file their FCC Form 175 applications
electronically.[^57] Applications may generally be filed at any time
beginning at noon on October 20, 2000, until 6:00 p.m. ET on November 6,
2000. Applicants are strongly encouraged to file early and are
responsible for allowing adequate time for filing their applications.
Applicants may update or amend their electronic applications multiple
times until the filing deadline on November 6, 2000.

Applicants must press the "Submit Form 175" button on the "Submit" page
of the electronic form to successfully submit their FCC Forms 175. Any
form that is not submitted will not be reviewed by the FCC. Information
about accessing the FCC Form 175 is included in Attachment C. Technical
support is available at (202) 414-1250 (voice) or (202) 414-1255 (text
telephone (TTY)); the hours of service Monday through Friday, from 7:00
AM to 10:00 PM ET, Saturday, 8:00 AM to 7:00 PM ET, and Sunday, 12:00
noon to 6:00 PM ET. In order to provide better service to the public,
*all calls to the hotline are recorded.*

### Completion of the FCC Form 175

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

### Electronic Review of FCC Form 175

The FCC Form 175 electronic review software may be used to review and
print applicants' FCC Form 175 information. Applicants may also view
other applicants' completed FCC Form 175s after the filing deadline has
passed and the FCC has issued a public notice explaining the status of
the applications. For this reason, it is important that applicants do
not include their Taxpayer Identification Numbers (TINs) on any exhibits
to their FCC Form 175 applications. There is no fee for accessing this
system. *See* Attachment C for details on accessing the review system.

## Application Processing and Minor Corrections

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

As described more fully in the Commission's rules, after the November 6,
2000, 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 the certifying official, change
control of the applicant, or change bidding credit eligibility).[^58]

## Upfront Payments --- Due November 27, 2000

In order to be eligible to bid in the auction, applicants must submit an
upfront payment accompanied by an FCC Remittance Advice Form (FCC Form
159). After completing the FCC Form 175, filers will have access to an
electronic version of the FCC Form 159 that can be printed and faxed to
Mellon Bank in Pittsburgh, PA. All upfront payments must be received at
Mellon Bank by 6:00 p.m. ET on November 27, 2000.

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. 35 go to a lockbox number different
    from the ones used in previous FCC auctions, and different from the
    lockbox number to be used for post-auction payments.

-   Failure to deliver the upfront payment by the November 27, 2000,
    deadline will result in dismissal of the application and
    disqualification from participation in the auction.

### Making Auction Payments by Wire Transfer

Wire transfer payments must be received by 6:00 p.m. ET on November 27,
2000. 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
>
> BNF: FCC/AC 910-0198
>
> OBI Field: (Skip one space between each information item)

> "AUCTIONPAY"

> TAXPAYER IDENTIFICATION NO.: (same as FCC Form 159, block 26)
>
> PAYMENT TYPE CODE (enter "A35U")
>
> FCC CODE 1 (same as FCC Form 159, block 23A: "35")
>
> PAYER NAME (same as FCC Form 159, block 2)
>
> LOCKBOX NO. \# 358410

**NOTE:** The BNF and Lockbox number are specific to the upfront
payments for this auction; do not use BNF or Lockbox numbers from
previous auctions.

Applicants must fax a completed FCC Form 159 to Mellon Bank at (412)
209-6045 or (412) 236-5702 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. 35." **Bidders should confirm receipt of their upfront payment at
Mellon Bank by contacting their sending financial institution.**

### FCC Form 159

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

### Amount of Upfront Payment

In the *Part 1 Order, Memorandum Opinion and Order, and Notice of
Proposed Rule Making,* the Commission delegated to the Bureau the
authority and discretion to determine an appropriate upfront payment for
each license being auctioned.[^59] In addition, as required by the *Part
1 Fifth Report and Order*, the upfront payment amount for "former
defaulters," *i.e.*, applicants that have ever been in default on any
Commission license or have ever been delinquent on any non-tax debt owed
to any Federal agency, will be fifty percent more than the normal amount
required to be paid.[^60] In the *Auction No. 35 Comment Public Notice*,
the Bureau proposed upfront payments for Auction No. 35.[^61]
Specifically, the Bureau proposed upfront payments using the following
formula:

**Tier 1**

\(1\) 15 MHz licenses --- 2.5 % of most recent net high bid for C block
licenses in same BTA

\(2\) 10 MHz licenses --- 1.6 % of most recent net high bid for C block
licenses in same BTA

**Tier 2**

(1) 15 MHz licenses --- 1.25 % of most recent net high bid for C block
    licenses in same BTA

\(2\) 10 MHz licenses --- 1.0 % of most recent net high bid for C block
licenses in same BTA

In its comments, BellSouth/SBC propose that the Bureau set upfront
payments using a formula of \$0.06\*MHz\*BTA population.[^62]
BellSouth/SBC argue that using such a formula would be consistent with
prior C and F block auctions. BellSouth/SBC do not, however, criticize
the formula proposed by the Bureau as being flawed. We received no other
comments on this issue. We are not convinced by BellSouth/SBC's
arguments and adopt the proposed formula for upfront payments (with
clarification):

**Tier 1**

\(1\) 15 MHz licenses --- 2.5 % of most recent net high bid for 30 MHz C
block license in same BTA

\(2\) 10 MHz licenses --- 1.6 % of most recent net high bid for 30 MHz C
block license in same BTA

**Tier 2**

(2) 15 MHz licenses --- 1.25 % of most recent net high bid for 30 MHz C
    block license in same BTA

\(2\) 10 MHz licenses --- 1.0 % of most recent net high bid for 30 MHz C
block license in same BTA

Please note that upfront payments are not attributed to specific
licenses, but instead will be translated to bidding units to define a
bidder's maximum bidding eligibility. For Auction No. 35, the amount of
the upfront payment will be translated into bidding units on a
one-to-one basis, *e.g.*, a \$25,000 upfront payment provides the bidder
with 25,000 bidding units. The total upfront payment defines the maximum
amount of bidding units on which the applicant will be permitted to bid
(including standing high bids) in any single round of bidding. Thus, an
applicant does not have to make an upfront payment to cover all licenses
for which the applicant has selected on FCC 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 high bids at
any given time.

In order to be able to place a bid on a license, in addition to being
qualified for and having specified that license on the FCC Form 175, a
bidder must have an eligibility level that meets or exceeds the number
of bidding units assigned to that license. At a minimum, an applicant's
total upfront payment must be enough to establish eligibility to bid on
at least one of the licenses applied for on the FCC Form 175, or else
the applicant will not be eligible to participate in the auction.

In calculating its upfront payment amount, an applicant should determine
the [maximum]{.underline} number of bidding units it may wish to bid on
in any single round, and submit an upfront payment covering that number
of bidding units. In order to make this calculation, an applicant should
add together the upfront payments for all licenses on which it seeks to
bid in any given round. Bidders should check their calculations
carefully, as there is no provision for increasing a bidder's maximum
eligibility after the upfront payment deadline.

> Former defaulters should calculate their upfront payment for all
> licenses by multiplying the number of bidding units they wish to
> purchase by 1.5. In order to calculate the number of bidding units to
> assign to former defaulters, the Commission will divide the upfront
> payment received by 1.5 and round the result up to the nearest bidding
> unit.
>
> NOTE: An applicant may, on its FCC Form 175, apply for every
> applicable license being offered, but its actual bidding in any round
> will be limited by the bidding units reflected in its upfront payment.

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

The Commission will use wire transfers for all Auction No. 35 refunds.
To ensure that refunds of upfront payments are processed in an
expeditious manner, the Commission is requesting that all pertinent
information as listed below be supplied to the FCC. Applicants can
provide the information electronically during the initial short-form
filing window after the form has been submitted. Wire Transfer
Instructions can also be manually faxed to the FCC, Financial Operations
Center, Auctions Accounting Group, ATTN: Tim Dates or Gail Glasser, at
(202) 418-2843 by November 28, 2000. Should the payer fail to submit the
requested information, the refund will be returned to the original
payer. For additional information, please call (202) 418-1995.

Name of Bank

> ABA Number
>
> Contact and Phone Number
>
> Account Number to Credit
>
> Name of Account Holder
>
> Correspondent Bank (if applicable)
>
> ABA Number
>
> Account Number

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

## Auction Registration

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

All qualified bidders are automatically registered for the auction.
Registration materials will be distributed prior to the auction by two
separate overnight mailings, each containing part of the confidential
identification codes required to place bids. These mailings will be sent
only to the contact person at the contact address listed in the FCC Form
175.

Applicants that do not receive both registration mailings will not be
able to submit bids. Therefore, any qualified applicant that has not
received both mailings by noon on Friday, December 8, 2000, should
contact the Auctions Hotline at (717) 338-2888. Receipt of both
registration mailings is critical to participating in the auction and
each applicant is responsible for ensuring it has received all of the
registration material.

Qualified bidders should note that lost login codes, passwords or bidder
identification numbers can be replaced only by appearing [in
person]{.underline} at the FCC Auction Headquarters located at 445
12^th^ St., SW, Washington, DC 20554. Only an authorized representative
or certifying official, as designated on an applicant's FCC Form 175,
may appear in person with two forms of identification (one of which must
be a photo identification) in order to receive replacement codes.
Qualified bidders requiring replacement codes must call technical
support prior to arriving at the FCC to arrange preparation of new
codes.

## Remote Electronic Bidding Software

Qualified bidders are allowed to bid electronically or telephonically.
If choosing to bid electronically, each bidder must purchase their own
copy of the remote electronic bidding software. Electronic bids will
only be accepted from those applicants purchasing the software. However,
the software may be copied by the applicant for use by its authorized
bidders at different locations. The price of the FCC's remote bidding
software is \$175.00 and must be ordered by Tuesday, November 28, 2000.
For security purposes, the software is only mailed to the contact person
at the contact address listed on the FCC Form 175. Please note that
auction software is tailored to a specific auction, so software from
prior auctions will not work for Auction No. 35. If bidding
telephonically, the telephonic bidding phone number will be supplied in
the first Federal Express mailing of confidential login codes. Qualified
bidders that do not purchase the software may only bid telephonically.
To indicate your bidding preference, a FCC Bidding Preference/Remote
Software Order Form can be accessed when submitting the FCC Form 175.
Bidders should complete this form electronically, print it out, and fax
to (717) 338-2850. A manual copy of this form is also included as
Attachment F in this public notice.

## Mock Auction

All qualified bidders will be eligible to participate in a mock auction
on Friday, December 8, 2000. The mock auction will enable applicants to
become familiar with the electronic software prior to the auction. Free
demonstration software will be available for use in the mock auction.
Participation by all bidders is strongly recommended. Details will be
announced by public notice.

In comments received by Verizon and reply comments received by
BellSouth/SBC,[^63] an earlier mock auction date was requested. Due to
technical constraints, however, we cannot accommodate and therefore deny
this request.

# AUCTION EVENT

The first round of bidding for Auction No. 35 will begin on Tuesday,
December 12, 2000. The initial bidding schedule will be announced in a
public notice listing the qualified bidders, which is released
approximately 10 days before the start of the auction.

## Auction Structure

### Simultaneous Multiple Round Auction

In the *Auction No. 35 Comment Public Notice*, we proposed to award all
licenses in Auction No. 35 in a single, simultaneous multiple round
auction.[^64] We received no comment on this issue. We conclude that it
is operationally feasible and appropriate to auction the PCS licenses
through a single, simultaneous multiple round auction. Unless otherwise
announced, bids will be accepted on all licenses in each round of the
auction. This approach, we believe, allows bidders to take advantage of
any synergies that exist among licenses and is most administratively
efficient.

### Maximum Eligibility and Activity Rules

In the *Auction No. 35 Comment Public Notice*, we 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.[^65] We received no comments on this issue.

For Auction No. 35 we will adopt this proposal. The amount of the
upfront payment submitted by a bidder determines the initial maximum
eligibility (in bidding units) for each bidder. Note again that upfront
payments are not attributed to specific licenses, but instead will be
translated into bidding units to define a bidder's initial maximum
eligibility. The total upfront payment defines the maximum number of
bidding units on which the applicant will be permitted to bid. As there
is no provision for increasing a bidder's maximum eligibility during the
course of an auction (as described under "Auction Stages" as set forth
in Part IV.A.4), prospective bidders are cautioned to calculate their
upfront payments carefully. The total upfront payment does not define
the total dollars a bidder may bid on any given license.

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

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
high bidder at the end of the previous bidding round and does not
withdraw the high bid in the current round, or if it submits an
acceptable bid in the current round (*see* "Minimum Accepted Bids" in
Part IV.B.(3), *below*). The minimum required activity level is
expressed as a percentage of the bidder's maximum bidding eligibility,
and increases by stage as the auction progresses. Because these
procedures have proven successful in maintaining the pace of previous
auctions as set forth under "Auction Stages" in Part IV.A.4 and "Stage
Transitions" in Part IV.A.5, *below*, we adopt them for Auction No. 35.

### Activity Rule Waivers and Reducing Eligibility

In the *Auction No. 35 Comment Public Notice*, we proposed that each
bidder in the auction would be provided five activity rule waivers that
may be used in any round during the course of the auction.[^66] We
received no comment on this issue.

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

The FCC automated auction system assumes that bidders with insufficient
activity would prefer to use an activity rule waiver (if available)
rather than lose bidding eligibility. Therefore, the system will
automatically apply a waiver (known as an "automatic waiver") at the end
of any round where a bidder's activity level is below the minimum
required unless: (1) there are no activity rule waivers available; or
(2) the bidder overrides the automatic application of a waiver by
reducing eligibility, thereby meeting the minimum requirements.

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 round by using the
reduce eligibility function in the software. 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* Part
IV.A.4 discussion *below*). Once eligibility has been reduced, a bidder
will not be permitted to regain its lost bidding eligibility.

Finally, a bidder may proactively use an activity rule waiver as a means
to keep the auction open without placing a bid. If a bidder submits a
proactive waiver (using the proactive waiver function in the bidding
software) during a round in which no bids are submitted, the auction
will remain open and the bidder's eligibility will be preserved. An
automatic waiver invoked in a round in which there are no new valid bids
or withdrawals will not keep the auction open.

### Auction Stages

In the *Auction No. 35 Comment Public Notice*, we proposed to conduct
the auction in three stages and employ an activity rule. We further
proposed that, in each round of Stage One, a bidder desiring to maintain
its current eligibility would be required to be active on licenses
encompassing at least 80 percent of its current bidding
eligibility.[^67] In each round of Stage Two, a bidder desiring to
maintain its current eligibility would be required to be active on at
least 90 percent of its current bidding eligibility. Finally, we
proposed that a bidder in Stage Three, in order to maintain eligibility,
would be required to be active on 98 percent of its current bidding
eligibility.

Verizon argues that the proposed initial activity levels for Stages One
and Two are too high. Verizon points out several characteristics of
Auction No. 35, including the number of licenses and size of some of the
markets that it contends warrant lower activity requirements.[^68]
BellSouth/SBC support Verizon's proposal; AT&T opposes it.[^69] We are
not convinced that the characteristics indicated by Verizon increase the
complexity of the auction in a manner that necessitates lower activity
requirements. Our experience using these activity rules and auction
stages in numerous other auctions, including several with many more
licenses, has shown the proposed activity levels to be an effective and
appropriate means by which to keep the auction moving along.

We conclude that the auction will be composed of three stages, which are
each defined by an increasing activity rule. We will adopt our proposals
for the activity rules. Below are the activity levels for each stage of
the auction. The FCC reserves the discretion to further alter the
activity percentages before and/or during the auction.

**Stage One:** During the first stage of the auction, a bidder desiring
to maintain its current eligibility will be required to be active on
licenses that represent at least 80 percent of its current bidding
eligibility in each bidding round. Failure to maintain the required
activity level will result in a reduction in the bidder's bidding
eligibility in the next round of bidding (unless an activity rule waiver
is used). During Stage One, reduced eligibility for the next round will
be calculated by multiplying the sum of bidding units of the bidder's
standing high bids and valid bids during the current round by
five-fourths (5/4).

**Stage Two:** During the second stage of the auction, a bidder desiring
to maintain its current eligibility is required to be active on 90
percent of its current bidding eligibility. Failure to maintain the
required activity level will result in a reduction in the bidder's
bidding eligibility in the next round of bidding (unless an activity
rule waiver is used). During Stage Two, reduced eligibility for the next
round will be calculated by multiplying the sum of bidding units of the
bidder's standing high bids and valid bids during the current round by
ten-ninths (10/9).

**Stage Three:** During the third stage of the auction, a bidder
desiring to maintain its current eligibility is required to be active on
98 percent of its current bidding eligibility. Failure to maintain the
required activity level will result in a reduction in the bidder's
bidding eligibility in the next round of bidding (unless an activity
rule waiver is used). In this stage, reduced eligibility for the next
round will be calculated by multiplying the sum of bidding units of the
bidder's standing high bids and valid bids during the current round by
fifty-fortyninths (50/49).

CAUTION: Since activity requirements increase in each auction stage,
bidders must carefully check their current activity during the bidding
period of the first round following a stage transition. This is
especially critical for bidders that have standing high 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
minimum activity level by using the bidding software's bidding module.

Because the foregoing procedures have proven successful in maintaining
proper pace in previous auctions, we adopt them for Auction No. 35.

### Stage Transitions

In the *Auction No. 35 Comment Public Notice*, we proposed that the
auction would generally advance to the next stage (*i.e.*, from Stage
One to Stage Two, and from Stage Two to Stage Three) when the auction
activity level, as measured by the percentage of bidding units receiving
new high bids, is below 10 percent for three consecutive rounds of
bidding in each Stage. However, we further proposed that the Bureau
would retain the discretion to change stages unilaterally by
announcement during the auction. This determination, we 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.[^70] We received no
comments on this subject.

We adopt our proposal. Thus, the auction will start in Stage One. Under
the FCC's general guidelines, the auction will start in Stage One and it
will advance to the next stage (*i.e.*, from Stage One to Stage Two, and
from Stage Two to Stage Three) when, in each of three consecutive rounds
of bidding, the high bid has increased on 10 percent or less of the
licenses being auctioned (as measured in bidding units). However, 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, the number of new bids, and the percentage
increase in revenue. We believe that these stage transition rules,
having proven successful in prior auctions, are appropriate for use in
Auction No. 35.

### Auction Stopping Rules

For Auction No. 35, the Bureau proposed to employ a simultaneous
stopping rule.[^71] Under this rule, bidding will remain open on all
licenses until bidding stops on every license. The auction will close
for all licenses when one round passes during which no bidder submits a
new acceptable bid on any license, applies a proactive waiver, or
withdraws a previous high bid. After the first such round, bidding
closes simultaneously on all licenses.

The Bureau also proposed a modified version of the simultaneous stopping
rule. This modified version will close the auction for all licenses
after the first round in which no bidder submits a proactive waiver, a
withdrawal, or a new bid on any license on which it is not the standing
high bidder. Thus, absent any other bidding activity, a bidder placing a
new bid on a license for which it is the standing high bidder will not
keep the auction open under this modified stopping rule.

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

In addition, we 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 final round(s) only for licenses on
which the high bid increased in at least one of the preceding specified
number of rounds. We proposed to exercise this option only in
circumstances such as where the auction is proceeding very slowly, where
there is minimal overall bidding activity or where it appears likely
that the auction will not close within a reasonable period of time.[^72]
Before exercising this option, the Bureau is likely to attempt to
increase the pace of the auction by, for example, moving the auction
into the next stage (where bidders will be required to maintain a higher
level of bidding activity), increasing the number of bidding rounds per
day, and/or adjusting the amount of the minimum bid increments for the
licenses.

BellSouth/SBC support our proposal to implement a modified simultaneous
stopping rule, stating that the modification precludes a bidder from
prolonging an auction unnecessarily and encourages bidders to bid on the
licenses they want and can afford.[^73]

Thus, we adopt all of the above proposals concerning the auction
stopping rules. Auction No. 35 will begin under the simultaneous
stopping rule, and the Bureau will retain the discretion to invoke the
other versions of the stopping rule. We believe that these stopping
rules are most appropriate for Auction No. 35, because our experience in
prior auctions demonstrates that the auction stopping rules balance the
interests of administrative efficiency and maximum bidder participation.
The substitutability among licenses in different geographic areas and
the importance of preserving the ability of bidders to pursue backup
strategies support the use of these stopping rules.

### Auction Delay, Suspension, or Cancellation

In the *Auction No. 35 Comment Public Notice*, we 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, evidence of an auction security breach, unlawful
bidding activity, administrative or weather necessity, or for any other
reason that affects the fair and competitive conduct of competitive
bidding.[^74]

Because this approach has proven effective in resolving exigent
circumstances in previous auctions, we will adopt our proposed auction
cancellation rules. 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, evidence of an auction
security breach, unlawful bidding activity, administrative or weather
necessity, or for any other reason that affects the fair and competitive
conduct of competitive bidding. In such cases, the 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. We emphasize 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

The initial bidding schedule will be announced in the public notice
listing the qualified bidders, which is released approximately 10 days
before the start of the auction. This public notice will be included in
the registration mailings. The round structure for each bidding round
contains a single bidding round followed by the release of the 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 above public notice.

The FCC has discretion to change the bidding schedule in order to foster
an auction pace that reasonably balances speed with the bidders' need to
study round results and adjust their bidding strategies. The FCC may
increase or decrease the amount of time for the bidding rounds and
review periods, or the number of rounds per day, depending upon the
bidding activity level and other factors.

### Reserve Price or Minimum Opening Bid

*Background*. The Balanced Budget Act calls upon the Commission to
prescribe methods by which a reasonable reserve price will be required
or a minimum opening bid established when FCC licenses 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.[^75] 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.[^76] 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.[^77] The Commission concluded that the Bureau should have the
discretion to employ either or both of these mechanisms for future
auctions.[^78]

In the *Auction No. 35 Comment Public Notice*, the Bureau proposed to
establish minimum opening bids for Auction No. 35 and to retain
discretion to lower the minimum opening bids.[^79] Specifically, for
Auction No. 35, the Commission proposed the following formula for
minimum opening bids:

**Tier 1**

\(1\) 15 MHz licenses --- 5 % of most recent net high bid for C block
licenses in same BTA

\(2\) 10 MHz licenses --- 3.2 % of most recent net high bid for C block
licenses in same BTA

**Tier 2**

\(1\) 15 MHz licenses --- 2.5 % of most recent net high bid for C block
licenses in same BTA

\(2\) 10 MHz licenses --- 1.6 % of most recent net high bid for C block
licenses in same BTA

In the alternative, the Bureau sought comment on whether, consistent
with the Balanced

Budget Act, the public interest would be served by having no minimum
opening bid or reserve price.[^80]

We will adopt minimum opening bids for Auction No. 35, which are
reducible at the discretion of the Bureau. Congress has enacted a
presumption that unless the Commission determines otherwise, minimum
opening bids or reserve prices are in the public interest.[^81]

BellSouth/SBC propose that the Bureau set minimum opening bids that are
not proportionately different between Tier 1 and Tier 2, *i.e.*, using
percentages that do not vary between the two tiers.[^82] BellSouth/SBC
seem to imply that the percentages for the Tier 1 licenses should be
lowered to match those for Tier 2. BellSouth/SBC do not recognize that
the Bureau previously proposed percentages that did not vary between the
two tiers, and compared with the minimum opening bids we proposed in the
*Auction No. 35 Public Notice*, we have reduced by approximately
one-half the proposed minimum opening bids for the Tier 2 licenses.[^83]

BellSouth/SBC argue that the Bureau should base C block minimum opening
bids on previous net high bids for 15 MHz C block licenses, where
applicable, and F block minimum opening bids on previous net high bids
for F block licenses.[^84] Adopting BellSouth/SBC's proposal, however,
would entail setting minimum opening bids based on previous net high
bids not only from Auction No. 5 and Auction No. 10 --- which were
similar, closed within months of each other, and provide a complete and
consistent set of data --- but also from Auction No. 11 and Auction No.
22, which were very different and took place later (nearly three years
later in the case of Auction No. 22). We are not convinced by
BellSouth/SBC's arguments and adopt the proposed formula for minimum
opening bids (with clarification):

**Tier 1**

\(1\) 15 MHz licenses --- 5 % of most recent net high bid for 30 MHz C
block license in same BTA

\(2\) 10 MHz licenses --- 3.2 % of most recent net high bid for 30 MHz C
block license in same BTA

**Tier 2**

\(1\) 15 MHz licenses --- 2.5 % of most recent net high bid for 30 MHz C
block license in same BTA

\(2\) 10 MHz licenses --- 1.6 % of most recent net high bid for 30 MHz C
block license in same BTA

We conclude that the adopted formula presented here best meets the
objectives of our authority in establishing reasonable minimum opening
bids. We have noted in the past that the reserve price and minimum
opening bid provision is not a requirement to maximize auction revenue
but rather a protection against assigning licenses at unacceptably low
prices, and that we must balance the revenue raising objective against
our other public interest objectives in setting the minimum bid
level.[^85] For the sake of auction integrity and fairness, minimum
opening bids must be set in a manner that is consistent across licenses.

As a final safeguard against unduly high pricing, minimum opening bids
are reducible at the discretion of the Bureau. This will allow the
Bureau flexibility to adjust the minimum opening bids if circumstances
warrant. We emphasize, however, that such discretion will be exercised,
if at all, sparingly and early in the auction, *i.e.*, before bidders
lose all waivers and begin to lose substantial eligibility. During the
course of the auction, the Bureau will not entertain any bidder requests
to reduce the minimum opening bid on specific licenses.

### Bid Increments and Minimum Accepted Bids

In the *Auction No. 35 Comment Public Notice*, we proposed to use a
smoothing methodology to calculate minimum bid increments.[^86] We
further proposed to retain the discretion to change the minimum bid
increment if circumstances so dictate.[^87] We received no comment on
this issue.

We will adopt our proposal for a smoothing formula. The smoothing
methodology is designed to vary the increment for a given license
between a maximum and minimum value based on the bidding activity on
that license. This methodology allows the increments to be tailored to
the activity level of a license, decreasing the time it takes for active
licenses to reach their final value. The formula used to calculate this
increment is included as Attachment G.

We adopt our proposal of initial values for the maximum of 0.2 (20
percent of the license value) and for the minimum of 0.1 (10 percent of
the license value). The Bureau retains the discretion to change the
minimum bid increment if it determines that circumstance so dictate. The
Bureau will do so by announcement in the Automated Auction System. Under
its discretion, the Bureau may also implement an absolute dollar floor
for the bid increment to further facilitate a timely close of the
auction. The Bureau may also use its discretion to adjust the minimum
bid increment without prior notice if circumstances warrant. As an
alternative approach, the Bureau may, in its discretion, adjust the
minimum bid increment gradually over a number of rounds as opposed to
single large changes in the minimum bid increment (*e.g*., by raising
the increment floor by one percent every round over the course of ten
rounds). The Bureau also retains the discretion to use alternate
methodologies, such as a flat percentage increment for all licenses, for
Auction No. 35 if circumstances warrant.

### High Bids

Each bid will be date- and time-stamped when it is entered into the FCC
computer system. In the event of tied high bids (identical gross bid
amounts) for a license during a round, the earliest of the tied bids
will be the standing high bid at the end of the round. The bidding
software allows bidders to make multiple submissions in a round. As each
bid is individually date- and time-stamped according to when it was
submitted, bids submitted by a bidder earlier in a round will have an
earlier date and time stamp than bids submitted later in a round.

### Bidding

During a bidding round, a bidder may submit bids for as many licenses as
it wishes (subject to its eligibility), withdraw high bids from previous
bidding rounds, remove bids placed in the same bidding round, or
permanently reduce eligibility. Bidders also have the option of making
multiple submissions and withdrawals in each bidding 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, and the
date- and time-stamp of that bid reflects the latest time the bid was
submitted.

Please note that all bidding will take place remotely either through the
automated bidding software or by telephonic bidding. (Telephonic bid
assistants are required to use a script when entering bids placed by
telephone. Telephonic bidders are therefore reminded to allow sufficient
time to bid by placing their calls well in advance of the close of a
round. Normally, four to five minutes are necessary to complete a bid
submission.) There will be no on-site bidding during Auction No. 35.

A bidder's ability to bid on specific licenses in the first round of the
auction is determined by three factors: (1) the licenses applied for on
FCC Form 175, (2) eligibility restrictions on those licenses, and (3)
the upfront payment amount deposited. The bid submission screens will be
tailored for each bidder to include only those licenses for which the
bidder applied on its FCC Form 175. A bidder also has the option to
further tailor its bid submission screens to call up specified groups of
licenses.

The bidding software requires each bidder to login to the FCC auction
system during the bidding round using the FCC account number, bidder
identification number, and the confidential security codes provided in
the registration materials. Bidders are strongly encouraged to download
and print bid confirmations [after]{.underline} they submit their bids.

The bid entry screen of the Automated Auction System software for
Auction No. 35 allows bidders to place multiple increment bids.
Specifically, high bids may be increased from one to nine bid
increments. A single bid increment is defined as the difference between
the standing high bid and the minimum acceptable bid for a license. The
bidding software will display the bid increment for each license.

To place a bid on a license, the bidder must increase the standing high
bid by one to nine times the bid increment. This is done by entering a
whole number between 1 and 9 in the bid increment multiplier (Bid Mult)
field in the software. This value will determine the amount of the bid
(Amount Bid) by multiplying the bid increment multiplier by the bid
increment and adding the result to the high bid amount according to the
following formula:

**Amount Bid = High Bid + (Bid Mult \* Bid Increment)**

Thus, bidders may place a bid that exceeds the standing high bid by
between one and nine times the bid increment. For example, to bid the
minimum acceptable bid, which is equal to one bid increment, a bidder
will enter "1" in the bid increment multiplier column and press submit.

For any license on which the FCC is designated as the high bidder
(*i.e.*, a license that has not yet received a bid in the auction or
where the high bid was withdrawn and a new bid has not yet been placed),
bidders will be limited to bidding only the minimum acceptable bid. In
both of these cases no increment exists for the licenses, and bidders
should enter "1" in the Bid Mult field. Note that in this case, any
whole number between 1 and 9 entered in the multiplier column will
result in a bid value at the minimum acceptable bid amount. Finally,
bidders are cautioned in entering numbers in the Bid Mult field because,
as explained in the following section, a high bidder that withdraws its
standing high bid from a previous round, even if mistakenly or
erroneously made, is subject to bid withdrawal payments.

### Bid Removal and Bid Withdrawal

In the *Auction No. 35 Comment Public Notice*, we proposed bid removal
and bid withdrawal rules.[^88] With respect to bid withdrawals, we
proposed limiting each bidder to withdrawals in no more than two rounds
during the course of the auction. The two rounds in which withdrawals
are utilized, we proposed, would be at the bidder's discretion. Verizon
believes the number of rounds in the auction during which a bidder may
withdraw standing high bids should be set at four.[^89] BellSouth/SBC
support Verizon's position; AT&T opposes it.[^90] We reject Verizon's
request, for the reasons discussed below.

In previous auctions, we have detected bidder conduct that, arguably,
may have constituted strategic bidding through the use of bid
withdrawals. While we continue to recognize the important role that bid
withdrawals play in an auction, *i.e.*, reducing risk associated with
efforts to secure various geographic area licenses in combination, we
conclude that, for Auction No. 35, adoption of a limit on their use to
two rounds is the most appropriate outcome. By doing so we believe we
strike a reasonable compromise that will allow bidders to use
withdrawals. Our decision on this issue is based upon our experience in
prior auctions, particularly the PCS D, E and F block auctions, and 800
MHz SMR auction, and is in no way a reflection of our view regarding the
likelihood of any speculation or "gaming" in this auction.

The Bureau will therefore limit the number of rounds in which bidders
may place withdrawals to two rounds. These rounds 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 still be subject to the bid withdrawal payments specified
in 47 C.F.R. § 1.2104(g). Bidders should note that abuse of the
Commission's bid withdrawal procedures could result in the denial of the
ability to bid on a market. If a high bid is withdrawn, the license will
be offered in the next round at the second highest bid price, which may
be less than, or equal to, in the case of tie bids, the amount of the
withdrawn bid, without any bid increment.[^91] The Commission will serve
as a "place holder" on the license until a new acceptable bid is
submitted on that license.

**Procedures.** Before the close of a bidding round, a bidder has the
option of removing any bids placed in that round. By using the "remove
bid" function in the software, 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 subsequently removed does not count toward the bidder's activity
requirement. This procedure, about which we received no comments, will
enhance bidder flexibility during the auction. Therefore, we will adopt
these procedures for Auction No. 35.

Once a round closes, a bidder may no longer remove a bid. However, in
later rounds, a bidder may withdraw standing high bids from previous
rounds using the "withdraw bid" function (assuming that the bidder has
not exhausted its withdrawal allowance). A high bidder that withdraws
its standing high bid from a previous round during the auction is
subject to the bid withdrawal payments specified in 47 C.F.R. §
1.2104(g).

**Calculation.** Generally, the Commission imposes payments on bidders
that withdraw high bids during the course of an auction.[^92] 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 net high bid in the
same or subsequent auction(s). 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 of the intervening subsequent withdrawn bids, 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). This policy allows bidder to most efficiently 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.

In the *Part 1 Fifth Report and Order*, the Commission modified Section
1.2104(g)(1) of the rules regarding assessments of interim bid
withdrawal payments.[^93] As amended, Section 1.2104(g)(1) provides that
in instances in which bids have been withdrawn on a license that is not
won in the same auction, the Commission will assess an interim
withdrawal payment equal to 3 percent of the amount of the bid
withdrawals. The 3 percent interim payment will be applied toward any
final bid withdrawal payment that will be assessed at the close of the
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. The *Part 1
Fifth Report and Order* provides specific examples showing application
of the bid withdrawal payment rule.[^94]

### Round Results

Bids placed during a round will not be published until the conclusion of
that bidding period. After a round closes, the Commission will compile
reports of all bids placed, bids withdrawn, current high bids, new
minimum accepted bids, and bidder eligibility status (bidding
eligibility and activity rule waivers), and post the reports for public
access. Reports reflecting bidders' identities and bidder identification
numbers for Auction No. 35 will be available before and during the
auction. Thus, bidders will know in advance of this auction the
identities of the bidders against which they are bidding.

### Auction Announcements

The FCC will use auction announcements to announce items such as
schedule changes and stage transitions. All FCC auction announcements
will be available on the FCC remote electronic bidding system, as well
as on the Internet.

### Maintaining the Accuracy of FCC Form 175 Information

As noted in Part II.J., after the short-form filing deadline, applicants
may make only minor changes to their FCC Form 175 applications. For
example, permissible minor changes include deletion and addition of
authorized bidders (to a maximum of three) and certain revision of
exhibits. Filers must make these changes on-line, and submit a letter
summarizing the changes to:

Louis Sigalos, Deputy Chief

Auctions and Industry Analysis Division

Wireless Telecommunications Bureau

Federal Communications Commission

445 12^th^ Street, SW, Room 4-A668

Washington, DC 20554

A separate copy of the letter should be mailed to Audrey Bashkin,
Auctions and Industry Analysis Division, Wireless Telecommunications
Bureau, Federal Communications Commission, 445 12^th^ Street, SW, Room
4-A665, Washington, DC 20554. Questions about other changes should be
directed to Audrey Bashkin at (202) 418-0660.

# POST-AUCTION PROCEDURES

## Down Payments and Withdrawn Bid Payments

After bidding has ended, the Commission will issue a public notice
declaring the auction closed, identifying the winning bids and bidders
for each license, and listing withdrawn bid payments due.

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
Government to 20 percent of its net winning bids (actual bids less any
applicable small and very small business bidding credits). *See* 47
C.F.R. § 1.2107(b). In addition, by the same deadline all bidders must
pay any withdrawn bid amounts due under 47 C.F.R. § 1.2104(g), as
discussed in "Bid Removal and Bid Withdrawal," Part IV.B.6. (Upfront
payments are applied first to satisfy any withdrawn bid liability,
before being applied toward down payments.)

## Long-Form Application

Within ten business days after release of the auction closing notice,
winning bidders must electronically submit a properly completed
long-form application and required exhibits for each license won through
Auction No. 35. Winning bidders that are entrepreneurs and/or small or
very small businesses must include an exhibit demonstrating their
eligibility for small and very small business bidding credits. *See* 47
C.F.R. §§ 1.2112(b), 24.709(c)(2)(i). Further filing instructions will
be provided to auction winners at the close of the auction.

## Tribal Land Bidding Credit

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 telephone
service penetration rate equal to or below 70 percent is eligible to
receive a tribal land bidding credit as set forth in 47 C.F.R. §§ 1.2107
and 1.2110(e). A tribal land bidding credit is in addition to, and
separate from, any other bidding credit for which a winning bidder may
qualify.

Unlike other bidding credits that are requested prior to the auction, a
winning bidder applies for the tribal land bidding credit *after*
winning the auction when it files its long-form application (FCC Form
601). In order for a winning bidder to be awarded a tribal land bidding
credit, it must provide specific certifications regarding the servicing
of tribal lands and is subject to specific performance criteria as set
forth in 47 C F R § 1.2110(e).

For additional information on the tribal land bidding credit, including
how to determine the amount of credit available, s*ee* Public Notice DA
00-2219, released September 28, 2000, entitled *Wireless
Telecommunications Bureau Announces Availability of Bidding Credits For
Providing Wireless Services To Qualifying Tribal Lands*.

## Auction Discount Voucher

On June 8, 2000, the Commission awarded Qualcomm, Inc. a transferable
Auction Discount Voucher in the amount of \$125,273,878.00.[^95] This
Auction Discount Voucher may be used by Qualcomm or its transferee, in
whole or in part, to adjust a winning bid in any spectrum auction prior
to June 8, 2003, subject to terms and conditions set forth in the
Commission's Order.

## Default and Disqualification

Any high bidder that defaults or is disqualified after the close of the
auction (*i.e.*, fails to remit the required down payment within the
prescribed period of time, fails to submit a timely long-form
application, fails to make full payment, or is otherwise disqualified)
will be subject to the payments described in 47 C.F.R. § 1.2104(g)(2).
In such event the Commission may re-auction the license or offer it to
the next highest bidder (in descending order) at their final bid. *See*
47 C.F.R. § 1.2109(b) and (c). 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. *See* 47 C.F.R. §
1.2109(d).

## Refund of Remaining Upfront Payment Balance

All applicants that submitted upfront payments but were not winning
bidders for a license in Auction No. 35 may be entitled to a refund of
their remaining upfront payment balance after the conclusion of the
auction. No refund will be made unless there are excess funds on deposit
from that applicant after any applicable bid withdrawal payments have
been paid.

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

Federal Communications Commission

Financial Operations Center

Auctions Accounting Group

Shirley Hanberry

445 12th Street, SW, Room 1-A824

Washington, DC 20554

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

> NOTE: Refund processing generally takes up to two weeks to complete.
> Bidders with questions about refunds should contact Tim Dates or Gail
> Glasser at (202) 418-1995.

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

**Auctions and Industry Analysis Division:** Audrey Bashkin, Legal
Branch or Craig Bomberger, Auctions Operations Branch, at (202)
418-0660; Lisa Stover, Auctions Operations Branch, at (717) 338-2888

**Commercial Wireless Division:** Gary Oshinsky, Policy and Rules Branch
at (202) 418-7167 or JoAnn Epps, Licensing and Technical Analysis Branch
at (202) 418--0620

-   **FCC -**

# Attachment A

(Place Holder)

# Attachment B

FCC AUCTION SEMINAR REGISTRATION FORM

Auction No. 35

The FCC will sponsor a one-day seminar for Auction No. 35 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 remote bidding software.

A maximum of two representatives from each company may attend on a
reservation basis, first-come first-served until room capacity is
filled. Additional seating may be available on a stand-by basis the day
of the seminar. The seminar will be held:

Friday, October 20, 2000

Federal Communications Commission

445 12th Street SW

Washington, DC 20554

Registration 8:30 a.m. - 9:30 a.m.

Seminar 9:30 a.m. - 4 p.m.

If hotel accommodations are needed

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

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

To register, complete the form below and

return no later than

Wednesday, October 18, 2000, by mail or fax to:

FCC Auction 35

Auctions Operations Branch

1270 Fairfield Road

Gettysburg, PA 17325-7245

FAX: 717-338-2850

Phone: 717-338-2888

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

I/We will attend the Auction No. 35 Seminar, scheduled for Friday,
October 20, 2000.

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

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

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

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

# Attachment C

ELECTRONIC FILING AND REVIEW

OF THE FCC FORM 175

Applicants must submit their FCC Form 175 applications electronically,
using either the FCC Auctions System page on the Internet or the
Commission\'s remote access system. The remote access system will
generally be available 24 hours per day. FCC Form 175 applications must
be submitted and confirmed by **6:00 p.m. ET on Monday, November 6,
2000.** Late applications or unconfirmed submissions of electronic data
will not be accepted.

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

## Minimum Hardware and Software Requirements

Applicants will need to meet the following minimum hardware and software
requirements:

### Minimum Hardware Requirements

-   CPU: Intel Pentium

    RAM: 16 MB (more recommended if you have multiple applications open)

Modem: 28.8 Kbps Hayes compatible modem or faster (recommend 56.6 Kbps)

Monitor: VGA or above

Mouse or other pointing device

### Minimum Software Requirements

-   Operating System: Microsoft Windows 95 or 98

```{=html}
<!-- -->
```
-   Web Browser: Netscape Communicator 4.73 is recommended. However, you
    can also use Netscape Communicator 4.5, 4.51, 4.61, 4.7, or 4.72
    (Internet web browser software).

> **Note:** To download Netscape Communicator 4.73 free of charge,
> access the Netscape download site at
> ***http://home.netscape.com/download/***

-   PDF Viewer: Adobe Acrobat Reader 3.0 or higher (available at
    ***http://www.adobe.com***)

    If you wish to use the download feature in the Form 175 Review, you
    will need a .tar file extraction utility, e.g., Winzip (available at
    ***http://www.winzip.com***) or Pkzip for Windows (available at
    ***http://www.pkware.com/download.html***).

## Submitting FCC Form 175 Applications

You can submit FCC Form 175 applications electronically via the
Internet. Start your Netscape Web browser. In your browser's *Location*
field, enter ***http://wtbwww15.fcc.gov*** and then click **175
Submit**.

> **Note:** If you have problems with the Internet, you may submit FCC
> Form 175 applications via the FCC Wide-Area Network, using Dial-Up
> Networking. For details, refer to the *Accessing the FCC Network to
> File FCC Form 175* attachment.

When uploading attachments in FCC Form 175 Submission, applicants may
use a variety of file formats \-- including Word 97 or earlier,
WordPerfect 6.*x* or earlier, Adobe PDF, and ASCII text \-- and should
verify that the files contain all exhibit information. Graphics file
uploads (e.g., *.bmp*, *.tiff*, *.jpg*) and spreadsheets (e.g., Excel,
Lotus) are not supported, and graphics images should not be imported
into any word processing files that are uploaded. ***Do not upload a
password-protected file. The FCC system will not be able to open it or
convert it.***

After you upload an attachment and it has been converted, check to see
if it converted properly by selecting the PDF filename in the rightmost
column. The conversion process generally completes within thirty
minutes. If you are unable to read this file after it has been
converted, please do the following:

1\. Re-upload the attachment.

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

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

After you have successfully re-uploaded an attachment, please delete the
old, unreadable attachment files.

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

## Reviewing FCC Form 175 Applications

Once the FCC has completed the 175 Review process, you can review FCC
Form 175 applications electronically via the Internet. Start your
Netscape Web browser. In your browser's *Location* field, enter
***http://wtbwww15.fcc.gov*** and then click **175 Review**.

## Help

For technical assistance with installing or using FCC software, contact
the FCC Technical Support Hotline at (202) 414‑1250 (V) or (202)
414-1255 (TTY). The FCC Technical Support Hotline is generally available
Monday through Friday from 7 a.m. to 10 p.m. ET, Saturday from 8 a.m. to
7 p.m. ET, and Sunday from 12 p.m. to 6 p.m. ET. *All calls to the FCC
Technical Support Hotline are recorded.*

# Attachment D

GUIDELINES FOR COMPLETION OF FCC FORM 175 AND EXHIBITS

## FCC Form 175

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

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

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

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

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

**Bidding Credit Eligibility:** Be advised that this is the sole
opportunity applicants have to elect small business or very small
business status and bidding credit level (if applicable), and there is
no opportunity to change the election once the short-form filing
deadline passes.

-   Small business or very small business applicants should enter the
    applicable bidding credit from the drop down menu. Applicants should
    be aware that this is the sole opportunity that they will have to
    elect the appropriate bidding credit.

**License Selection:** Applicants should identify all licenses on which
they want to be eligible to bid in the auction. Be advised that there is
no opportunity to change this list once the short-form filing deadline
passes. It is critically important that you confirm the licenses that
you have selected because the FCC auction system will not accept bids on
licenses for which an applicant has not applied on its FCC Form 175.
**Note that there are multiple channel blocks offered in some geographic
areas (\"Markets\") and each of these licenses must be selected
individually (i.e., selecting channel block C3 in market BTA004 does not
make you eligible to bid on channel block C4 in market BTA004).** Each
row in this license list represents a single license, shown as one
market and channel block. Please confirm your license selection, by
clicking on the \"Confirm\" button.

**Authorized Bidders:** Applicants must list the name(s) of the
person(s) (no more than three) authorized to represent them at the
auction. Only those individuals listed on the FCC Form 175 will be
authorized to place or withdraw bids for the applicant during the
auction. **Note: Applicants may only share a common authorized bidder(s)
if each applicant has selected separate markets. *See* 47 CFR §
1.2105(c)**.

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

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

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

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

**Continuing Accuracy:** Each applicant is responsible for the
continuing accuracy and completeness of information furnished in the FCC
Form 175 and its exhibits. *See* 47 C.F.R. § 1.65. It is the FCC\'s
position that during the conduct of an auction, thirty business days
from a reportable change is a reasonable period of time. Applicants are
reminded that they consent to be audited in the certification section of
the FCC Form 175 (see certification item number 6).

## Exhibits and Attachments

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

If you find that an attachment has not converted properly to Adobe PDF
format, take the following steps:

*1) Simplify the formatting of the file. For example, if using a Table
structure in a WordPerfect document, remove the Table structure leaving
the contents of the table, re‑save the document.*

*2) Re‑upload the attachment.*

*3) When the re-uploaded attachment has successfully converted, delete
the failed attachment.*

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

**Exhibit A \-- Applicant Identity and Ownership Information**: 47
C.F.R. § 1.2105(a)(2)(ii) requires each applicant to fully disclose the
real party or parties-in-interest in an exhibit to its FCC Form 175
application. Each member of an applicant applying to bid as a small or
very small business consortium must provide this information. The
following information is required:

### General Information

  -----------------------------------------------------------------------
  ***Applicant Status*** ***Required Information***
  ---------------------- ------------------------------------------------
  General Partnership    Name, citizenship, and address of all partners,
                         and the share or interest participation of each
                         partner

  Limited Partnership    Name, citizenship, and address of each limited
                         partner whose interest in the applicant is equal
                         to or greater than 10 percent (as calculated
                         according to the percentage of equity paid in
                         and the percentage of distribution of profits
                         and losses)

  Corporation            Corporate name and address; and name, title, and
                         citizenship of a responsible officer or director

  Limited Liability      Corporate name and address; and name, address,
  Corporation            and citizenship of all members

  Trust                  Name, citizenship, and address of trustee

  None of the above      Name, citizenship, title or other relation to
                         the applicant, and address of a principal or
                         other responsible person
  -----------------------------------------------------------------------

### Ownership Information

+----------------------+-----------------------------------------------+
| ***Applicant         | ***Required Information***                    |
| Status***            |                                               |
+======================+===============================================+
| All applicants       | Name, citizenship, and address of all         |
|                      | controlling interests of the applicant as     |
|                      | defined in Part II.C.4 of this public notice. |
+----------------------+-----------------------------------------------+
| All applicants       | Name, citizenship, and address of all parties |
|                      | holding 10 percent or more of each class of   |
|                      | stock, warrants, options or debt securities   |
|                      | and the amount and percentage held.           |
+----------------------+-----------------------------------------------+
| All applicants       | Name of all parties holding a 10 percent or   |
|                      | greater interest in the applicant and the     |
|                      | specific amount held.                         |
+----------------------+-----------------------------------------------+
| All applicants       | List of all parties holding indirect          |
|                      | ownership interests in the applicant as       |
|                      | determined by successive multiplication of    |
|                      | the ownership percentages in each link of the |
|                      | vertical ownership chain, that equals 10      |
|                      | percent or more of the applicant, except that |
|                      | if the ownership percentage for any link in   |
|                      | the chain exceeds 50 percent or represents    |
|                      | actual control, it shall be reported as if it |
|                      | were a 100 percent interest.                  |
+----------------------+-----------------------------------------------+
|                      | *Example.* Company A owns 10% of Company B,   |
|                      | which owns 60% of Company C, which owns 25%   |
|                      | of the applicant. Company B\'s interest in    |
|                      | the applicant would be 25% (the same as       |
|                      | Company C\'s interest since Company B\'s      |
|                      | interest in Company C exceeds 50%), and       |
|                      | Company A\'s interest in the applicant would  |
|                      | be 2.5% (0.1 \* 0.25). Under the 10%          |
|                      | attribution benchmark, Company B\'s interest  |
|                      | in the applicant must be reported on the      |
|                      | applicant\'s FCC Form 175 Exhibit A, while    |
|                      | Company A\'s interest in the applicant need   |
|                      | not be reported. However, if Company A owned  |
|                      | 40% of Company B in the above example, then   |
|                      | Company A\'s interest in the applicant would  |
|                      | be 10% (0.4 \* 0.25), and the applicant would |
|                      | need to report it on the applicant\'s FCC     |
|                      | Form 175 Exhibit A                            |
+----------------------+-----------------------------------------------+
| All applicants       | List of any FCC-licensed entity or applicant  |
|                      | for an FCC license, in which                  |
+----------------------+-----------------------------------------------+
|                      | > a\. the applicant;                          |
+----------------------+-----------------------------------------------+
|                      | > b\. any party with a 10 percent or greater  |
|                      | > interest in the applicant; or               |
+----------------------+-----------------------------------------------+
|                      | > c\. a controlling interest (as discussed in |
|                      | > Part II.C.4 of this public notice) that     |
|                      | > owns a 10 percent or greater interest of    |
|                      | > the applicant or 10 percent or more of any  |
|                      | > class of stock, warrants, options or debt   |
|                      | > securities of the applicant. (*See also* 47 |
|                      | > C.F.R. § 1.2110) This list must include a   |
|                      | > description of each such entities\'         |
|                      | > principal business and a description of     |
|                      | > each such entities\' relationship to the    |
|                      | > applicant.                                  |
+----------------------+-----------------------------------------------+
|                      | *Example of a.* The applicant owns 10 percent |
|                      | of Company A (an FCC licensed entity or an    |
|                      | applicant for an FCC license). The applicant  |
|                      | must list Company A on its FCC Form 175       |
|                      | Exhibit A and provide the required            |
|                      | information.                                  |
+----------------------+-----------------------------------------------+
|                      | *Example of b.* Company A owns 10 percent of  |
|                      | the applicant and 10 percent of Company B (an |
|                      | FCC licensed entity or an applicant for an    |
|                      | FCC license). The applicant must list both    |
|                      | Company A and Company B on its FCC Form 175   |
|                      | Exhibit A and provide the required            |
|                      | information.                                  |
+----------------------+-----------------------------------------------+
|                      | *Example of c.* Company A owns 55% of the     |
|                      | applicant and owns 10 percent of Company B    |
|                      | (an FCC licensed entity or an Applicant for   |
|                      | an FCC license). The applicant must list both |
|                      | Company A and Company B on its FCC Form 175   |
|                      | Exhibit A and provide the required            |
|                      | information.                                  |
+----------------------+-----------------------------------------------+

.

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

Be aware that pursuant to Certification (4) on the FCC Form 175, the
applicant certifies that it will not enter into any explicit or implicit
agreements or understandings of any kind with parties not identified in
the application regarding bid amounts, bidding strategies, or the
particular licenses the applicant will or will not bid. *See* 47 C.F.R.
§ 1.2105(a)(2)(ix). *To prevent collusion, the Commission\'s Rules
generally prohibit communication among applicants for the same license
areas between the initial short-form applications filing deadline and
the down payment on licenses won, when such communications concern bids,
bidding strategies, or settlements.* 47 C.F.R. § 1.2105(c).

**Exhibit C -- Entrepreneur Eligibility:** Applicants applying to bid on
closed licenses must attach an Exhibit C showing *separately and in the
aggregate*, the gross revenues for each of the preceding two years and
the total assets of each of the following: (1) the applicant; (2) the
applicant's affiliates; (3) the applicant's controlling interests; and
(4) the affiliates of the applicant's controlling interests.
Certification that, as of the FCC Form 175 filing deadline, the
applicant, together with its affiliates and persons or entities that
hold interests in the applicant and their affiliates, has total assets
of less than \$500 million and has had gross revenues of less that \$125
million in each of the last two years is not sufficient. The applicant
must provide separately for itself, its affiliates, its controlling
interests, and their affiliates a schedule of gross revenues for *each*
of the preceding two years. As stated, entities applying for closed
bidding under the grandfather exception (47 C.F.R. § 24.709(b)(i)) need
not meet the total assets and gross revenues limits of Section 24.709(a)
of the Commission's rules. By submitting the FCC Form 175, applicants
certify that they are eligible to participate in Auction No. 35 under
all of the Commission's rules. Applicants claiming auction eligibility
under the grandfather exception should note the Commission's
clarification of this exception in the *C/F Block Sixth Report and
Order*.[^96]

**Exhibit D --Status as a Small Business or Very Small Business**:
Applicants claiming status as a very small business or small business
must attach an exhibit providing the following information regarding
this status.

+----------------------+---------+----------+-------------------------+
| ***Entity***         | ***R    |          |                         |
|                      | equired |          |                         |
|                      | Informa |          |                         |
|                      | tion*** |          |                         |
+======================+=========+==========+=========================+
| Applicant            | Average |          |                         |
|                      | annual  |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for the |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | three   |          |                         |
|                      | years   |          |                         |
|                      | set     |          |                         |
|                      | forth   |          |                         |
|                      | *both   |          |                         |
|                      | sepa    |          |                         |
|                      | rately* |          |                         |
|                      | (       |          |                         |
|                      | *e.g.*, |          |                         |
|                      | for     |          |                         |
|                      | each of |          |                         |
|                      | the     |          |                         |
|                      | three   |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | three   |          |                         |
|                      | years   |          |                         |
|                      | indivi  |          |                         |
|                      | dually) |          |                         |
|                      | *and in |          |                         |
|                      | the     |          |                         |
|                      | agg     |          |                         |
|                      | regate* |          |                         |
|                      | (for    |          |                         |
|                      | all of  |          |                         |
|                      | the     |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | three   |          |                         |
|                      | years   |          |                         |
|                      | com     |          |                         |
|                      | bined). |          |                         |
|                      | Certif  |          |                         |
|                      | ication |          |                         |
|                      | that    |          |                         |
|                      | the     |          |                         |
|                      | average |          |                         |
|                      | annual  |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for the |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | three   |          |                         |
|                      | years   |          |                         |
|                      | do not  |          |                         |
|                      | exceed  |          |                         |
|                      | the     |          |                         |
|                      | r       |          |                         |
|                      | equired |          |                         |
|                      | limit,  |          |                         |
|                      | or      |          |                         |
|                      | pr      |          |                         |
|                      | oviding |          |                         |
|                      | average |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for the |          |                         |
|                      | 3-year  |          |                         |
|                      | period  |          |                         |
|                      | without |          |                         |
|                      | pr      |          |                         |
|                      | oviding |          |                         |
|                      | the     |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for     |          |                         |
|                      | each of |          |                         |
|                      | the     |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | three   |          |                         |
|                      | years,  |          |                         |
|                      | is      |          |                         |
|                      | insuff  |          |                         |
|                      | icient. |          |                         |
+----------------------+---------+----------+-------------------------+
| Applicant\'s         | Same    |          |                         |
| Affiliates           | info    |          |                         |
|                      | rmation |          |                         |
| *See* 47 CFR §       | r       |          |                         |
| 1.2110               | equired |          |                         |
|                      | as      |          |                         |
|                      | di      |          |                         |
|                      | scussed |          |                         |
|                      | above   |          |                         |
+----------------------+---------+----------+-------------------------+
| Applicant\'s         | Same    |          |                         |
| Controlling          | info    |          |                         |
| Interests *See* Part | rmation |          |                         |
| II.C.4, *supra*.     | r       |          |                         |
|                      | equired |          |                         |
|                      | as      |          |                         |
|                      | di      |          |                         |
|                      | scussed |          |                         |
|                      | above   |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | *Ex     |          |                         |
|                      | ample.* |          |                         |
|                      | The     |          |                         |
|                      | ap      |          |                         |
|                      | plicant |          |                         |
|                      | had     |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | of      |          |                         |
|                      | \$      |          |                         |
|                      | 500,000 |          |                         |
|                      | in      |          |                         |
|                      | 1997,   |          |                         |
|                      | \$1,    |          |                         |
|                      | 000,000 |          |                         |
|                      | in      |          |                         |
|                      | 1998,   |          |                         |
|                      | and     |          |                         |
|                      | \$3,    |          |                         |
|                      | 000,000 |          |                         |
|                      | in      |          |                         |
|                      | 1999,   |          |                         |
|                      | with    |          |                         |
|                      | average |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for     |          |                         |
|                      | that    |          |                         |
|                      | time    |          |                         |
|                      | period  |          |                         |
|                      | of      |          |                         |
|                      | \$1,5   |          |                         |
|                      | 00,000. |          |                         |
|                      | The     |          |                         |
|                      | ap      |          |                         |
|                      | plicant |          |                         |
|                      | owns    |          |                         |
|                      | 60% of  |          |                         |
|                      | Company |          |                         |
|                      | A,      |          |                         |
|                      | making  |          |                         |
|                      | Company |          |                         |
|                      | A an    |          |                         |
|                      | af      |          |                         |
|                      | filiate |          |                         |
|                      | of the  |          |                         |
|                      | ap      |          |                         |
|                      | plicant |          |                         |
|                      | under   |          |                         |
|                      | Section |          |                         |
|                      | 1.211   |          |                         |
|                      | 0(c)(4) |          |                         |
|                      | (i)(B), |          |                         |
|                      | and     |          |                         |
|                      | Company |          |                         |
|                      | B owns  |          |                         |
|                      | 52% of  |          |                         |
|                      | the     |          |                         |
|                      | ap      |          |                         |
|                      | plicant |          |                         |
|                      | (making |          |                         |
|                      | Company |          |                         |
|                      | B a     |          |                         |
|                      | cont    |          |                         |
|                      | rolling |          |                         |
|                      | i       |          |                         |
|                      | nterest |          |                         |
|                      | of the  |          |                         |
|                      | app     |          |                         |
|                      | licant, |          |                         |
|                      | as      |          |                         |
|                      | defined |          |                         |
|                      | in Part |          |                         |
|                      | II.C.4  |          |                         |
|                      | of this |          |                         |
|                      | public  |          |                         |
|                      | notice. |          |                         |
|                      | The     |          |                         |
|                      | appli   |          |                         |
|                      | cant\'s |          |                         |
|                      | Exhibit |          |                         |
|                      | C would |          |                         |
|                      | look    |          |                         |
|                      | like    |          |                         |
|                      | this:   |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | Ap      |          |                         |
|                      | plicant |          |                         |
|                      | Name    |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1997    |          | \$ 500,000              |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1998    |          | \$ 1,000,000            |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1999    |          | \$ 3,000,000            |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | Average |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | for the |          | \$ 1,500,000            |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | 3 years |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | Company |          |                         |
|                      | A (an   |          |                         |
|                      | af      |          |                         |
|                      | filiate |          |                         |
|                      | of the  |          |                         |
|                      | app     |          |                         |
|                      | licant) |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1997    |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1998    |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1999    |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | Average |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for the |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | 3 years |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | Company |          |                         |
|                      | B (a    |          |                         |
|                      | cont    |          |                         |
|                      | rolling |          |                         |
|                      | i       |          |                         |
|                      | nterest |          |                         |
|                      | in the  |          |                         |
|                      | app     |          |                         |
|                      | licant) |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1997    |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1998    |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1999    |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | Average |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for the |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | 3 years |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | **T     | **       |                         |
|                      | OTAL:** | combined |                         |
|                      |         | average  |                         |
|                      |         | gross    |                         |
|                      |         | revenues |                         |
|                      |         | for the  |                         |
|                      |         | p        |                         |
|                      |         | receding |                         |
|                      |         | three    |                         |
|                      |         | years of |                         |
|                      |         | the      |                         |
|                      |         | ap       |                         |
|                      |         | plicant, |                         |
|                      |         | the      |                         |
|                      |         | appl     |                         |
|                      |         | icant\'s |                         |
|                      |         | af       |                         |
|                      |         | filiates |                         |
|                      |         | and      |                         |
|                      |         | their    |                         |
|                      |         | con      |                         |
|                      |         | trolling |                         |
|                      |         | int      |                         |
|                      |         | erests** |                         |
+----------------------+---------+----------+-------------------------+

**NOTE:** Each member of an applicant that is applying to bid as a
consortium of small or very small

businesses must provide this information and qualify for the claimed
status.

**Exhibit E -- Information Required of All Applicants Regarding Prior
Defaults and Prior Delinquencies:** Each applicant must include at
Exhibit E a statement made under penalty of perjury indicating whether
or not the applicant has ever been in default on any Commission licenses
or has ever been delinquent on any non-tax debt owed to any Federal
agency. If any of an applicant's controlling interests holders or their
affiliates, as defined by Section 1.2110 of the Commission's rules (as
recently amended in the *Part 1 Fifth Report and Order*) has ever been
in default on any Commission license or has ever been delinquent on any
non-tax debt owed to any Federal agency, the applicant must include such
information as part of the same attached statement. An applicant for
closed C block licenses that claims Auction No. 35 entrepreneur
eligibility under the grandfather exception, 47 C.F.R. § 24.709(b)(i),
must state under penalty of perjury in Exhibit E whether or not *any*
entity whose gross revenues and total assets are required to be
attributed to the applicant under 47 C.F.R. § 24.709 has ever been in
default on any Commission licenses or has ever been delinquent on any
non-tax debt owed to any Federal agency. *See* 47 C.F.R. §§
1.2105(a)(2)(xi).

**Exhibit F \-- Information Requested of Designated Entities:**
Applicants owned by minorities or women, as defined in 47 C.F.R. §
1.2110(c), or that are rural telephone companies, may attach an exhibit
regarding this status. This information, in conjunction with the
information requested in Block 10 of the FCC Form 175, will assist the
Commission in monitoring the participation of these \"designated
entities\" in its auctions.

**Exhibit G \-- Miscellaneous Information**: Applicants wishing to
submit additional information should include it in Exhibit G.

Applicants are reminded that all information required in connection with
applications to participate in spectrum auctions is necessary to
determine the applicants\' qualifications, and as such will be available
for public inspection. Required proprietary information may be redacted,
or confidentiality may be requested, following the procedures set forth
in 47 C.F.R. § 0.459. Such requests must be submitted in writing to
Louis Sigalos, Deputy Chief, Auctions and Industry Analysis Division,
Wireless Telecommunications Bureau, Federal Communications Commission,
445 12^th^ Street, SW, Room 4-A668, Washington, DC 20554 (with a
separate copy mailed to Audrey Bashkin, Legal Branch, Auctions and
Industry Analysis Division, Room 4-A665), in which case the applicant
must indicate in Exhibit G that it has filed a confidentiality request.
Because the required information bears on applicants\' qualifications,
the FCC envisions that confidentiality requests will not be routinely
granted.

**Waivers:** Applicants requesting waiver of any rules must submit a
statement of reasons sufficient to justify the waiver sought. *See* 47
C.F.R. §§ 1.3, 1.925.

# Attachment E

AUCTION-SPECIFIC INSTRUCTIONS FOR

FCC REMITTANCE ADVICE (FCC FORM 159-July 1997 edition)

## Upfront Payments

The following information supplements the standard instructions for FCC
Form 159, and is provided to help ensure correct completion of FCC Form
159 for upfront payments for Auction No. 35. Applicants need to complete
FCC Form 159 carefully, since:

-   Mistakes may affect their bidding eligibility; and

-   Lack of consistency between information set forth in FCC Form 159,
    FCC Form 175, long-form application, and correspondence about an
    application may cause processing delays.

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

Form 175 Short Form Application are described below:

Block

Number Required Information

> 1 LOCKBOX \# - Enter \"358410\"
>
> 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.
>
> 4-8 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, blocks 2 through 5.
>
> 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).
>
> 20A Payment Type Code - Enter \"A35U\"
>
> 21A Quantity - Enter the number \"1\"
>
> 22A Amount Due - Enter the total upfront payment due.
>
> 23A FCC Code 1 - Enter the number \"35\" (indicating Auction No. 35).
>
> 26 Applicant TIN - Same as FCC Form 175, block 7.

NOTES:

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

-   If applicant is different from the payer, complete blocks 11 through
    18 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 this area blank.

## Winning Bidder Requirements, Down Payments and Final Payments

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

# Attachment F

**FCC BIDDING PREFERENCE/**

**REMOTE SOFTWARE ORDER FORM**

**Auction No. 35**

***All qualified applicants who plan to participate in this auction
[must]{.underline} complete the form below.***

Each qualified applicant choosing to bid electronically must purchase
their own copy of FCC Remote Bidding Software. Electronic bids will only
be accepted from those applicants purchasing the software, however, the
software may be copied by the applicant for use by its authorized
bidders at different locations.

The price of the FCC Remote Bidding Software is **\$175.00**, which
includes a user manual and shipping costs. (Since bidding software is
tailored to a specific auction, previous versions will not work for
Auction #35.) For security purposes, the software is only mailed to the
contact person at the contact address listed on the FCC Form 175.

Completed forms should be printed and either faxed or mailed to the
address below, ensuring receipt by no later than 6:00 p.m. ET on
**Tuesday, November 28, 2000.**

FCC BIDDING PREFERENCE (Auction No. 35)

[Auction Operations Branch]{.underline}

1270 Fairfield Rd.

Gettysburg, PA 17325-7245

FAX: 717-338-2850

Auction Applicant:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

FCC Assigned Account No. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Contact Phone: \_\_\_\_\_\_\_\_\_\_\_\_\_

Contact Name:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Contact Address:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Contact City: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Contact State: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Contact Zip: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Contact Fax: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Bidding Preference: \_\_\_\_Electronic \_\_\_\_Telephonic

If planning to bid electronically, please complete the following:

Type: \_\_\_\_3.5 Diskette \_\_\_\_ CD-Rom

Payment of \$175.00 US by: \_\_\_\_ Check (payable to FCC) \_\_\_\_
Mastercard \_\_\_\_ Visa

Credit card number
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Expiration
date \_\_\_\_\_\_\_\_\_\_\_\_

Name on card
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Authorized signature
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date \_\_\_\_\_\_\_\_\_\_\_

# Attachment G

## Bid Increments and Exponential Smoothing

*Background*. The Auctions Automation System ("AAS") calculates the
minimum bid increment for each license with a standing high bid in each
round of the auction based on all bidding activity for the license. For
this auction, the Commission will use a standard exponential smoothing
methodology to calculate minimum bid increments.

The AAS' exponential smoothing formula calculates the bid increment
based on a weighted average of activity received for each license in all
previous rounds. This methodology allows the Commission to tailor each
license's bid increment based on its specific level of activity
throughout the auction and provides a fairer means to determine license
value.

*Calculation*. The calculation of the percentage bid increment increase
for each license for the current round is made at the end of the
previous round. The computation is based on an activity index, which is
calculated as the weighted average of the activity in that round and the
activity index from the prior round. The activity index at the start of
the auction (round 0) will be set at 0. The current activity index is
equal to a weighting factor times the number of new bids received on the
license in the most recent bidding round plus one minus the weighting
factor times the activity index from the prior round. The activity index
is then used to calculate a percentage increment by multiplying a
minimum percentage increment by one plus the activity index with that
result being subject to a maximum percentage increment. The Commission
will initially set the weighting factor at 0.5, the minimum percentage
increment at 0.1, and the maximum percentage increment at 0.2. (See
example below.)

***Equations***

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

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

where,

A~i~ = activity index for the current round (round i)

C = activity weight factor

B~i~ = number of bids in the current round (round i)

A~i-1~ = activity index from previous round (round i-1), A~0~ is 0

I~i+1~ = percentage bid increment for the next round (round i+1)

N = minimum percentage increment or bid increment floor

M = maximum percentage increment or bid increment ceiling

Under the exponential smoothing methodology, once a bid has been
received on a license, the minimum acceptable bid for that license in
the following round will be the new high bid plus the dollar amount
associated with the percentage increment (variable I~i+1~ from above
times the high bid). This result will be rounded to the nearest thousand
if the minimum acceptable bid is over ten thousand dollars or to the
nearest hundred if it is under ten thousand dollars. [^97]

**Examples**

License 1

C=0.5, N = 0.1, M = 0.2

[Round 1 (2 new bids, high bid = \$1,000,000)]{.underline}

1\. Calculation of percentage increment for round 2 using exponential
smoothing:

A~1~ = (0.5 \* 2) + (0.5 \* 0) = 1

The smaller of I~2~ = (1 + 1) \* 0.1 = 0.2 or 0.2 (the maximum
percentage increment)

2\. Minimum bid increment for round 2 using the percentage increment
(I~2~ from above)

0.2 \* \$1,000,000 = \$200,000

3\. Minimum acceptable bid for round 2 = \$1,200,000

[Round 2 (3 new bids, high bid = \$2,000,000)]{.underline}

1\. Calculation of percentage increment for round 3 using exponential
smoothing:

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

The smaller of I~3~ = (1 + 2) \* 0.1 = 0.3 or 0.2 (the maximum
percentage increment)

2\. Minimum bid increment for round 3 using the percentage increment
(I~3~ from above)

0.2 \* \$2,000,000 = \$400,000

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

[Round 3 (1 new bid, high bid = \$2,400,000)]{.underline}

1\. Calculation of percentage increment for round 4 using exponential
smoothing:

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

The smaller of I~4~ = (1 + 1.5) \* 0.1 = 0.25 or 0.2 (the maximum
percentage increment)

2\. Minimum bid increment for round 4 using the percentage increment
(I~4~ from above)

0.2 \* \$2,400,000 = \$480,000

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

For questions concerning bid increments, contact Craig Bomberger,
Analyst, Auctions Operations Branch at (202) 418-0660.

# Attachment H

ACCESSING THE FCC NETWORK

TO FILE FCC FORM 175

This attachment describes how to access the FCC Network from a system
that is running the Microsoft Windows 95 or Microsoft Windows 98
operating system. This involves configuring dial-up network access and
then performing the dial-up procedure.

> **Note:** Dial-up access to the FCC Network is ***not*** required to
> submit or review FCC Form 175 applications. You can perform those
> functions from the Internet, by entering location
> ***http://wtbwww15.fcc.gov/*** on your Netscape Web browser and
> clicking the **175 Submit** or **175 Review** button, respectively.
> For more details, refer to the *Electronic Filing and Review of the
> FCC Form 175* attachment.

## Conventions

The instructions in this section use the following typographical
conventions:

  ------------------- -----------------------------------------------------------
  **bold**            Represents objects on the screen that you click with the
                      mouse pointer, including buttons, Internet links, icons,
                      tabs, menu items (e.g., **Cancel** button, **Auctions**
                      link, **Save** option in the File menu).

  *italic*            Represents field names or areas of a screen (e.g.,
                      *Applicant* field, *Selected Licenses* area of a screen).

  ***bold italic***   Represents characters that you must type exactly as they
                      appear in the instructions. For example, if you are
                      instructed to type ***http://wtbwww15.fcc.gov***, you
                      should type all of the characters shown in bold italic
                      exactly as they are printed.

  [Small              Represents keys on the keyboard (e.g., [Enter, Ctrl,
  Caps]{.smallcaps}   Esc]{.smallcaps}).
  ------------------- -----------------------------------------------------------

***Note:*** Throughout these instructions, "enter" means to type the
appropriate information and then press the [Enter]{.smallcaps} key.

## Accessing the FCC Network to Submit FCC Form 175 Applications

The following section provides the instructions for configuring the
dial-up network access in preparation for submitting FCC Form 175
applications. The subsequent section gives the dial-up procedure.

### Configuring Dial-Up Networking

1\. To start dial-up networking:

> a\. Click the Windows 95/98 **Start** button.
>
> b\. Click the **Programs** option to display the Programs menu.
>
> c\. Click the **Accessories** option to display the Accessories menu.
>
> d\. In Windows 95, click **Dial-Up Networking**.
>
> In Windows 98, click **Communications**, then **Dial-Up Networking**.
>
> If **Dial-Up Networking** is not an option on your Accessories menu,
> you should install it from your Windows 95/98 CD or diskettes.

2\. When the Dial-Up Networking window appears, double-click the **Make
New Connection** icon.

The Make New Connection window appears.

3\. Type ***FCC Auctions 800#*** in the field titled *Type a name for
the computer you are dialing.*

4\. In Windows 95, click the down arrow at the right of the *Select a
modem* field and select your modem from the menu of available modems.

> In Windows 98, click the down arrow at the right of the *Select a
> device* field and select your modem from the menu of available
> devices.
>
> If your modem does not appear on this list, you must install your
> modem driver according to the modem manufacturer installation
> procedures, which are usually described in your modem's user manual.

5\. Click the **Next** button.

6.  Type ***800*** and ***378-7435*** in the *Area Code* and *Telephone
    Number* fields, respectively.

> If you need to dial *9* or some other digit to get an outside line,
> include that digit in the *Area Code* field. For example, you might
> type ***9, 1 800*** in this field.

7\. Verify that the correct country is selected in the *Country code*
field.

> If necessary, click the down arrow at the right of the *Country code*
> field and select the appropriate country from the menu of available
> countries.

8\. Click the **Next** button.

9\. Click the **Finish** button.

> An icon labeled *FCC Auctions 800#* appears in the Dial-Up Networking
> window.

10\. Verify that properties are configured correctly before attempting a
dial-up session. Put the mouse pointer on the icon and click the
**right** mouse button to display a menu. Click **Properties** from the
menu.

11\. Click the **Configure** button. Click the **Options** tab at the
top of the Properties window.

12\. In the *Connection control* area of the Options tab, verify that
*[neither]{.underline}* option is selected. If either option is
selected, click the check box at the left of the option to deselect it.
Then click **OK**.

13\. In Windows 95, click the **Server Type\...** button.

In Windows 98, click the **Server Types** tab at the top of the
Properties window.

14\. In the *Advanced Options* area, verify that **only** *Enable
software compression* is selected. If it is not selected, click the
check box at the left of the option to select it. If either of the other
options is selected, click the check box to deselect it.

15\. In the *Allowed Network Protocols* area, **verify that only
*TCP/IP* is selected**.

> If it is not selected, click the check box at the left of the option
> to select it. If either of the other options is selected, click the
> check box to deselect it.

16\. Click the **TCP/IP Settings** button. On the TCP/IP Settings
window, select *Server assigned IP addresses* at the top and select
*Specify name server addresses* midway down the window.

17. Type ***165.135.241.149*** as the Primary DNS and
    ***165.135.79.95*** as the Secondary DNS.

Ensure that these two options are checked:

-   Use IP header compression

-   Use default gateway or remote network

18. Click **OK** on the *TCP/IP Settings* window and the *Server Type*
    window.

19. Close the *Dial-Up Networking* window.

20\. a. Click the Windows 95/98 **Start** button, then click the
**Settings** option to display the Settings menu.

> b\. Click **Control Panel** and then double-click the **Network**
> icon.
>
> c\. Highlight the *TCP/IP Protocol* and click **Properties**. If there
> are multiple TCP/IP protocols, highlight *TCP/IP \--\> Dial-Up
> Adapter* and click **Properties**.
>
> In a Windows 98 environment, a confirmation dialog appears. Read the
> information on the dialog, then click the **OK** button.
>
> d\. Click the **DNS Configuration** tab and then click the **Enable
> DNS** radio button at the top.

e.  Type ***bidder*** in the *Host* box and type ***fcc.gov*** in the
    *Domain* box.

> **Note:** You are limited to three DNS entries. If you already have
> three DNS entries, you must delete two of them before performing the
> next two steps. To do this, click the first entry you want to delete
> and click the **Remove** button. Then click the second entry you want
> to delete and click the **Remove** button again.

f.  Type ***165.135.241.149*** in the DNS Server Search Order box and
    click the **Add** button.

g.  Type ***165.135.79.95*** in the DNS Server Search Order box and
    click **Add** again.

h.  Click **OK** on the TCP/IP Properties window, then click **OK** on
    the Network window.

If you are prompted to restart your computer, click **Yes** to restart,
then begin

the Dial-Up Procedure.

### Dial-Up Procedure

1.  If the Dial-Up Networking window is not currently open, do the
    following:

> a\. Click the Windows 95/98 **Start** button.
>
> b\. Click the **Programs** option to display the Programs menu.
>
> c\. Click the **Accessories** option to display the Accessories menu.
>
> d\. In Windows 95, click **Dial-Up Networking**
>
> In Windows 98, click **Communications**, then **Dial-Up Networking**.

The Dial-Up Networking window appears.

2\. In the Dial-Up Networking window, double-click the **FCC Auctions
800#** icon.

3\. Click the **Connect** button on the window. *[Do not enter User name
or Password]{.underline}*.

> The Connection window appears, indicating the status of your
> connection as your modem dials into the system. This window must
> remain running during your dial-up session. You may minimize the
> window, if you wish.
>
> If your modem fails to establish a connection, please see the
> *Troubleshooting* section.

## Submitting FCC Form 175 Applications

After you have connected to the FCC Network, start your Netscape Web
browser. In your browser's *Location* field, enter
***http://wtbwww15.fcc.gov*** (primary location) or
***http://wtbwww04.fcc.gov*** (secondary location) and then click **175
Submit**.

> **Note:** The *wtbwww04* location can only be accessed through dial-up
> networking; it cannot be accessed through the Internet.

When uploading attachments in FCC Form 175 Submission, applicants may
use a variety of file formats \-- including Word 97 or earlier,
WordPerfect 6.*x* or earlier, Adobe PDF, and ASCII text \-- and should
verify that the files contain all exhibit information. Graphics file
uploads (e.g., *.bmp*, *.tiff*, *.jpg*) and spreadsheets (e.g., Excel,
Lotus) are not supported, and graphics images should not be imported
into any word processing files that are uploaded. ***Do not upload a
password-protected file. The FCC system will not be able to open it or
convert it.***

After you upload an attachment and it has been converted, check to see
if it converted properly by selecting the PDF filename in the rightmost
column. The conversion process generally completes within thirty
minutes. If you are unable to read this file after it has been
converted, please do the following:

1.  Re-upload the attachment.

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

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

After you have successfully re-uploaded an attachment, please delete the
old, unreadable attachment files.

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

When you have finished, exit your Web browser; then click the
**Disconnect** button on the Connection window to end your dial-up
session.

## Removing the Dial-Up Networking Service

Once you have finished using the dial-up networking service, you can
remove it from your computer, as follows:

1.  Click the Windows 95/98 **Start** button, then click the
    **Settings** option to display the Settings menu.

2.  Click **Control Panel** and then double-click the **Network** icon.

3.  Highlight the *TCP/IP Protocol* and click **Properties**. If there
    are multiple TCP/IP protocols, highlight *TCP/IP \--\> Dial-Up
    Adapter* and click **Properties**.

> In a Windows 98 environment, a confirmation dialog appears. Read the
> information on the dialog, then click the **OK** button.

4.  Click the **DNS Configuration** tab.

5.  Click the DNS Server Search Order box containing
    ***165.135.241.149*** to select it, then click the **Remove**
    button.

6.  Similarly, click the DNS Server Search Order box containing
    ***165.135.79.95*** to select it, then click the **Remove** button.

7.  Click **OK** on the TCP/IP Properties windows, then click **OK** on
    the Network windows.

8.  If you are prompted to restart your computer, click **Yes** to
    restart.

9.  Remove the **FCC Auctions 800#** icon from your desktop. That is,
    click the icon with your *right* mouse button and then click the
    **Delete** option in the pull-down menu.

## Troubleshooting

Following are problems you may encounter and possible solutions for
resolving or isolating them.

### Modem does not respond

1.  Confirm that all physical connections for the modem are present.

2.  Confirm that the phone line is active by connecting it to a
    telephone and checking for a dial-tone.

3.  Confirm that the correct modem driver is installed for your modem.

### Modem dials but does not connect

1.  Confirm that the number the modem is dialing is correct.

```{=html}
<!-- -->
```
2.  Confirm that the modem prefix, if any, is correct.

***Using a Backup Dial-In Number.*** If the number and prefix are
correct, the 800 number being dialed may be experiencing problems. In
this case, you can reconfigure the dial-up software using an alternate
dial-in number, which is also toll-free. To use the backup number,
perform the *Configuring Dial-Up Networking* procedure again, but this
time make the following changes:

-   In Step 3, type ***FCC Auctions 877#*** in the field titled *Type a
    name for the computer you are dialing.*

-   In Step 6, type ***877*** and ***844-2788*** in the *Area Code* and
    *Telephone Number* fields, respectively.

-   In Step 17, type ***165.135.79.95*** as the Primary DNS.

-   In Step 20f, type ***165.135.79.95*** in the DNS Server Search Order
    box.

### Modem dials and connects, but nothing appears when you enter the Location in the Web browser 

1.  Verify the Dial-Up Networking settings specified in the *Configuring
    Dial-Up* *Networking* section.

2.  Confirm that your Web browser is not using proxies:

```{=html}
<!-- -->
```
a)  On your browser, click the **Preferences** option in the Edit menu.

b)  In the Category area at the left, double-click **Advanced**.

c)  Click the Advanced structure's **Proxies** option.

d)  Click the radio button labeled **Direct connection to the
    Internet**.

e)  Click the **OK** button at the bottom of the window.

### Receive an Internal Server error in the Web browser 

1.  Confirm that the *Location* is set to ***http://wtbwww15.fcc.gov***
    or ***http://wtbwww04.fcc.gov***

2.  On your browser, click the **Preferences** option in the Edit menu.
    In the Category area at the left, double-click **Advanced**. In the
    area at the top, confirm that *Enable Java* and *Enable JavaScript*
    are selected. In the Cookies area, confirm that *Accept all cookies*
    is selected.

## Help

For technical assistance with installing or using FCC software, contact
the FCC Technical Support Hotline at (202) 414‑1250 (V) or (202)
414-1255 (TTY). The FCC Technical Support Hotline is generally available
Monday through Friday from 7 a.m. to 10 p.m. ET, Saturday from 8 a.m. to
7 p.m. ET, and Sunday from 12 p.m. to 6 p.m. ET. *All calls to the FCC
Technical Support Hotline are recorded.*

# ATTACHMENT i

SUMMARY LISTING OF DOCUMENTS FROM THE COMMISSION

AND THE WIRELESS TELECOMMUNICATIONS BUREAU

ADDRESSING APPLICATION OF THE ANTI‑COLLUSION RULES

All of the following documents can be found at FCC web site:
[http://www.fcc.gov/wtb/auctions/collusio/collusio.html]{.underline}

## Commission Decisions:

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

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

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

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

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

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

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

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

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

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

## Wireless Telecommunications Bureau Decisions:

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

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

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

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

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

### Public Notices:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

### Miscellaneous:

Many of these documents can be retrieved from the following Commission
web site:

<http://www.fcc.gov/wtb/auctions/collusio/collusio.html>

These documents may be located by using our search engine (select the
link \"search\"). All of these documents can be ordered in hard copy for
a fee from the Commission's contractor, International Transcription
Service, Inc. at (202) 314­-3070.

Documents retrieved from the FCC web site are available in various
formats. In order to review a document in its entirety, including
footnotes, it is necessary to access the document in WordPerfect, MS
Word, or Acrobat Reader.

[^1]: Balanced Budget Act of 1997, Pub. L. No. 105-33, 111 Stat. 251, §
    3002(a) (codified at 47 U.S.C. § 309(j)(4)(F) (1997)) ("Balanced
    Budget Act"). The Commission's authority to establish a reserve
    price or minimum opening bid is set forth in 47 C.F.R. § 1.2104(c)
    and (d).

[^2]: *See* "C and F Block Broadband PCS Spectrum Auction Scheduled for
    July 26, 2000; Comment Sought on Reserve Prices or Minimum Opening
    Bids and Other Auction Procedural Issues," *Public Notice*, DA
    00-504 (rel. March 3, 2000) (*"Auction No. 35 Public Notice*").

[^3]: *See* Amendment of the Commission's Rules Regarding Installment
    Payment Financing for Personal Communications Services (PCS)
    Licensees, WT Docket No, 97-82, *Sixth Report and Order and Order on
    Reconsideration*, FCC 00-313 (rel. August 29, 2000) ("*C/F Block
    Sixth Report and Order*").

[^4]: *See* "C and F Block Broadband PCS Spectrum Auction Scheduled for
    November 29, 2000, Rescheduled for December 12, 2000; Revised List
    of Available Licenses; Comment Sought on Reserve Prices or Minimum
    Opening Bids and Other Auction Procedures," *Public Notice,* DA
    00-2038 (rel. September 6, 2000), 65 Fed. Reg. 55,243 (September 13,
    2000), *corrected* "Correction to Attachment A" (rel. September 12,
    2000) (collectively referred to as "*Auction No. 35 Comment Public
    Notice*").

[^5]: Comments were filed by Carolina PCS I Limited Partnership
    ("Carolina"); Clear Talk; Conestoga Wireless Company ("Conestoga");
    GTE Service Corporation ("GTE"); Nextel Communications, Inc.
    ("Nextel"); SBC Communications Inc. ("SBC"); and UTStarcom. Reply
    comments were filed by 3-G Network Holdings and OPM Auction Co.
    ("OPM"). *Ex parte* comments were filed by 3-G Network Holdings.

[^6]: Comments were filed by AT&T Wireless Services, Inc. ("AT&T");
    BellSouth Corporation and SBC Communications, Inc. jointly
    ("BellSouth/SBC"); and Verizon Wireless ("Verizon"). Reply comments
    were filed by BellSouth/SBC and AT&T.

[^7]: The Commission required that in order to qualify as an
    "entrepreneur," an applicant, including attributable investors and
    affiliates, must have had gross revenues of less than \$125 million
    in each of the last two years and must have less than \$500 million
    in total assets. *See* 47 C.F.R. § 24.709; Implementation of Section
    309(J) of the Communications Act-Competitive Bidding, PP Docket
    93-253, *Fifth Report and Order*, 9 FCC Rcd 5532, 5581-82, ¶ 115
    (1994) (*"Competitive Bidding Fifth Report and Order"*). Originally,
    there was a personal net worth test, but this test was eliminated.
    *See* Implementation of Section 309(j) of the Communications
    Act-Competitive Bidding, PP Docket 93-253, *Fifth Memorandum Opinion
    and Order*, 10 FCC Rcd 403, 420-21, ¶¶ 28-30 (1994) (*"Competitive
    Bidding Fifth Memorandum Opinion and Order"*)

[^8]: Auction No. 22 was originally announced as an auction of licenses
    for C, D, E, and F block spectrum; however, no D block spectrum
    remained in the license inventory by the start of the auction.

[^9]: *See* Amendment of the Commission's Rules Regarding Installment
    Payment Financing for Personal Communications Services (PCS)
    Licensees, WT Docket No, 97-82, *Sixth Report and Order and Order on
    Reconsideration*, FCC Rcd 00-313 (rel. August 29, 2000) ("*C/F Block
    Sixth Report and Order*")*.*

[^10]: AT&T Comments at 1-5.

[^11]: *See C/F Block Sixth Report and Order*, n.58.

[^12]: Amendment of the Commission's Rules Regarding Installment Payment
    Financing for Personal Communications Services (PCS) Licenses, WT
    Docket No. 97-82, *Second Report and Order and Further Notice of
    Proposed Rule Making*, 12 FCC Rcd 16,436 (1997) (*"C Block Second
    Report and Order"*).

[^13]: Amendment of the Commission's Rules Regarding Installment Payment
    Financing for Personal Communications Services (PCS) Licenses, WT
    Docket No. 97-82, *Order on Reconsideration of the Second Report and
    Order*, 13 FCC Rcd 8345 (1998) (*"C Block Reconsideration Order"*).

[^14]: Amendment of the Commission's Rules Regarding Installment Payment
    Financing for Personal Communications Services (PCS) Licenses, WT
    Docket No. 97-82, *Fourth Report and Order*, 13 FCC Rcd 15,743,
    15,749, ¶10, 15,751, ¶ 13, 15,752, ¶ 15 (1998) (*"C Block Fourth
    Report and Order"*); *see also* Amendment of the Commission's Rules
    Regarding Installment Payment Financing for Personal Communications
    Services (PCS) Licenses, WT Docket No. 97-82, *Order on
    Reconsideration of the Fourth Report and Order*, 15 FCC Rcd 4740,
    4742-43, ¶¶ 6-8 (2000) (*"C Block Fourth Report and Order
    Reconsideration"*).

[^15]: *See* Amendment of Part 1 of the Commission's Rules ---
    Competitive Bidding Procedures, WT Docket No. 97-82, *Order on
    Reconsideration of the Third Report and Order, Fifth Report and
    Order, and Fourth Further Notice of Proposed Rule Making*, FCC
    00-274 (rel. August 14, 2000) ("*Part 1 Fifth Report and Order*").

[^16]: *See* In re Application of Nevada Wireless for a License to
    Provide 800 MHz Specialized Mobile Radio Service in the Farmington,
    NM-CO Economic Area (EA-155) Frequency Band A, *Memorandum Opinion
    and Order,* 13 FCC Rcd. 11,973, 11,977 ¶ 11 (1998) ("*Nevada
    Wireless")*.

[^17]: *See id*., at 11,978.

[^18]: *See* 47 C.F.R. § 1.2105(c). Note that, unless otherwise
    indicated, all references herein to Commission's rules are to the
    amended rules that will be effected as of the start date of Auction
    No. 35.

[^19]: *See* "Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules," *Public Notice*, DA 95-2244, 11 FCC
    Rcd. 9645 (1995) (rel. October 26, 1995).

[^20]: *See* 47 C.F.R. § 1.65.

[^21]: *See, e.g.,* 47 C.F.R. §§ 15.307, 24.5, 24.237--24.253, 101.3,
    101.69--101.81, 101.147; Amendment to the Commission's Rules
    Regarding a Plan for Sharing the Costs of Microwave Relocation, WT
    Docket No. 95-157, *Memorandum Opinion and Order on
    Reconsideration,* FCC 00-123 (rel. July 19, 2000); Amendment to the
    Commission's Rules Regarding a Plan for Sharing the Costs of
    Microwave Relocation, *Second Report and Order,* 12 FCC Rcd 2705
    (1997); Amendment to the Commission's Rules Regarding a Plan for
    Sharing the Costs of Microwave Relocation, *First Report and Order
    and Further Notice of Proposed Rule Making,* 11 FCC Rcd 8825 (1996).

[^22]: *See* Implementation of Section 309(j) of the Communications Act
    --- Competitive Bidding for Commercial Broadcast and Instructional
    Television Fixed Service Licenses, MM Docket No. 97-234,
    Reexamination of the Policy Statement on Comparative Broadcast
    Hearings, GC Docket No. 92-52, Proposals to Reform Comparative
    Hearing Process to Expedite the Resolution of Cases, GEN Docket No.
    90-264, *Order*, FCC 99-157, n.15 (rel. July 2, 1999) (Commission
    order denying petitions for stay of Auction No. 25 pending judicial
    review and noting that the Commission will return payments made by
    winning bidders if licenses bid for are later determined to be
    unavailable due to a subsequent court action). *See also* "Auction
    of C, D, E, and F Block Broadband PCS Licenses; Status of
    Applications to Participate in the Auction; Clarification of Payment
    Issue Relating to Licenses Subject to Pending Proceedings," *Public
    Notice*, 14 FCC Rcd 5467, 5470-71 (1999).

[^23]: ^?^ 47 U.S.C. § 309(j)(3).

[^24]: ^?^ See "Auction of C, D, E, and F Block Broadband PCS Licenses;
    Notice and Filing Requirements for Auction of C, D, E, and F Block
    Broadband Personal Communications Services Licenses Scheduled for
    March 23, 1999; Minimum Opening Bids and Other Procedural Issues,"
    Public Notice, 13 FCC Rcd 24,540, 24,545 (1998).

[^25]: *See* 47 C.F.R. § 1.2105.

[^26]: *See* 47 C.F.R. Ch. 1, Subpart I.

[^27]: *See* 47 C.F.R. §§ 1.1305-1.1319.

[^28]: Section 1.2105 requires the disclosure on the short-form of
    applicant ownership information as set forth in Section 1.2112. Note
    that both of these sections were revised in the *Part 1 Fifth Report
    and Order*.

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

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

[^31]: 47 C.F.R. § 24.709(a).

[^32]: *See* 47 C.F.R. § 24.709(b)(9)(i); *see also C/F Block Sixth
    Report and Order* at ¶¶ 35-42 and App. D.

[^33]: *See* 47 C.F.R. §§ 24.712, 24.717.

[^34]: *See* 47 C.F.R. §§ 24.712(a), 24.717(a), 24.720(b).

[^35]: *See* 47 C.F.R. §§ 24.712(b), 24.717(b), 24.720(b).

[^36]: Amendment of Part 1 of the Commission's Rules --- Competitive
    Bidding Procedures, WT Docket No. 97-82, *Order on Reconsideration
    of the Third Report and Order, Fifth Report and Order, and Fourth
    Further Notice of Proposed Rule Making*, FCC 00-274 (rel. August 14,
    2000) ("*Part 1 Fifth Report and Order*").

[^37]: The eligibility as an entrepreneur of all applicants for future C
    and F block auctions --- except for those applicants that are
    "grandfathered" under Section 24.709(b)(9)(i) of the Commission
    rules --- as well as the eligibility for small business preferences,
    will be determined based on the attribution rules in effect at the
    short-form application deadline. *Id.* at ¶ 67. *See* *Part 1 Fifth
    Report and Order*, 65 Fed. Reg. 52,323 (August 29, 2000) (summary).

[^38]: *Part 1 Fifth Report and Order*, ¶ 78. In addition to the
    attribution rule change, compare, *e.g.*, 47 C.F.R. § 24.720(e)
    (definition of "Rural Telephone Company" in the broadband PCS rules)
    with 47 C.F.R. § 1.2110(b)(3) (definition of "Rural Telephone
    Company" in the Part 1 rules).

[^39]: *See Part 1 Third Report and Order* at 382, ¶ 5; *Part 1 Fifth
    Report and Order*, ¶ 67.

[^40]: For further guidance on the issue of *de facto* control, see the
    Commission's affiliation rule at 47 C.F.R. § 1.2110(b)(4); *see
    also* Ellis Thompson Corp., 10 FCC Rcd. 12,554, 12,555-56 (1994), in
    which the Commission identified the following factors used to
    determine control of a business: (1) use of facilities and
    equipment; (2) control of day-to-day operations; (3) control of
    policy decisions; (4) personnel responsibilities; (5) control of
    financial obligations; and (6) receipt of monies and profits;
    Intermountain Microwave, 12 FCC 2d. 559 (1963), and Application of
    Baker Creek Communications, LP, For Authority to Construct and
    Operate Local Multipoint Distribution Services in Multiple Basic
    Trading Areas, *Memorandum Opinion and Order*, 13 FCC Rcd. 18,709
    (rel. September 23, 1998).

[^41]: *See* Implementation of Section 309(j) of the Communications Act
    --- Competitive Bidding, PP Docket No. 93-253, Amendment of Parts 20
    and 24 of the Commission's Rules --- Broadband PCS Competitive
    Bidding and the Commercial Mobile Radio Service Spectrum Cap, WT
    Docket No. 96-59, Amendment of the Commission's Cellular/PCS
    Cross-Ownership Rule, GN Docket No. 90-314, *Order on
    Reconsideration*, FCC 00-299, at ¶ 20 (rel. September 14, 2000).

[^42]: *See* 47 C.F.R. §§ 24.709, 24.720, 1.2105.

[^43]: *C/F Block Sixth Report and Order*, ¶¶ 38-42.

[^44]: *C Block Second Report and Order and Further Notice*, 12 FCC Rcd
    16,436.

[^45]: *C Block Reconsideration Order*, 13 FCC Rcd 8345.

[^46]: *C Block Fourth Report and Order* at ¶¶ 12-13; *C Block
    Reconsideration Order*, 13 FCC Rcd at 8360-61 ¶¶ 37, 28, and 41 and
    8367 ¶ 50; *see* 47 C.F.R. § 24.709(b)(9)(ii).

[^47]: *C Block Fourth Report and Order* at note 48; *C Block
    Reconsideration Order*, 13 FCC Rcd at 8360-61 ¶¶ 37.

[^48]: 47 C.F.R. § 1.2105(a)(2)(x).

[^49]: 47 C.F.R. § 1.2105(a)(2)(xi).

[^50]: *See Part 1 Fifth Report and Order*, ¶ 42. An applicant for
    closed C block licenses that claims Auction No. 35 entrepreneur
    eligibility under the grandfather exception, 47 C.F.R. §
    24.709(b)(i), must state under penalty of perjury in Exhibit E
    whether or not *any* entity whose gross revenues and total assets
    are required to be attributed to the applicant under 47 C.F.R. §
    24.709 has ever been in default on any Commission licenses or has
    ever been delinquent on any non-tax debt owed to any Federal agency.
    *See* "Auction of C, D, E, and F Block Broadband PCS Licenses;
    Notice and Filing Requirements for Auction of C, D, E, and F Block
    Broadband Personal Communications Services Licenses Scheduled for
    March 23, 1999; Minimum Opening Bids and Other Procedural Issues,"
    Public Notice, 13 FCC Rcd 24,540, 24,552 (1998). We note that if any
    entity whose gross revenues and total assets are required to be
    attributed to the applicant under 47 C.F.R. § 24.709 is in default
    on any Commission licenses or is delinquent on any non-tax debt owed
    to any Federal agency at the deadline for filing FCC Form 175
    application for Auction No. 35, the applicant will not be able to
    make the certification required by 47 C.F.R. § 1.2105(a)(2)(x) and
    will not be eligible to participate in the auction.

[^51]: 47 C.F.R. § 1.2106(a).

[^52]: *See* 47 C.F.R. § 24.839.

[^53]: 47 C.F.R. § 1.2111(d), (e)(2)-(3). Licensees are *not* subject to
    unjust enrichment payments for transfer or assignment of licenses
    won in Auction No. 5 and No. 10. *See* *C/F Block Sixth Report and
    Order*, ¶ 51.

[^54]: *C/F Block Sixth Report and Order*, ¶ 51; 47 C.F.R. § 24.712(c).

[^55]: See Verizon Comments at 4-5; BellSouth/SBC Reply at 5.

[^56]: *See* 47 C.F.R. § 1.2111.

[^57]: *See* 47 C.F.R. § 1.2105(a).

[^58]: *See* 47 C.F.R. § 1.2105. *See also* Two Way Radio of Carolina,
    Inc., *Memorandum, Opinion and Order*, FCC 99-189, 14 FCC Rcd.
    12,035 (rel. July 22, 1999).

[^59]: Amendment of Part 1 of the Commission's rules --- Competitive
    Bidding Proceeding, WT Docket No. 97-82, *Order, Memorandum Opinion
    and Order and Notice of Proposed Rule Making*, 12 FCC Rcd. 5686,
    5697-5698, ¶ 16 (1997).

[^60]: *Part 1 Fifth Report and Order*, ¶¶ 40-42; 47 C.F.R. § 1.2106(a);
    s*ee also C Block Fourth Report and Order* at 15,761-62, ¶ 34; *see*
    47 C.F.R. §§1.2105(a)(2)(xi) and 24.709(a)(5).

[^61]: *See Auction No. 35 Comment Public Notice* at 7.

[^62]: BellSouth/SBC Comments at 3.

[^63]: Verizon Comments at 2; BellSouth/SBC Reply at 1-3.

[^64]: *Auction No. 35 Comment Public Notice* at 7.

[^65]: *Id*. at 8.

[^66]: *Id*. at 9.

[^67]: *Id*. at 8.

[^68]: Verizon Comments at 2-3.

[^69]: BellSouth/SBC Reply at 4; AT&T Reply at 2.

[^70]: *Id*. *at 8.*

[^71]: *Id*. at 14.

[^72]: *Id.*

[^73]: BellSouth/SBC Comments at 6-7.

[^74]: *Id*.

[^75]: *See* Balanced Budget Act, section 3002(a), 47 U.S.C. §
    309(j)(4)(F).

[^76]: *See* Amendment of Part 1 of the Commission's Rules ---
    Competitive Bidding Procedures, WT Docket No. 97-82, *Third Report
    and Order and Second Further Notice of Proposed Rule Making,* 13 FCC
    Rcd. 375, 455-456 ¶ 141 (1997)*("Part 1 Third Report and Order").*

[^77]: *Id*.

[^78]: *Id*.

[^79]: *Auction No. 35 Comment Public Notice* at 10.

[^80]: *Id*. at 11.

[^81]: Section 309(j)(4)(F) of the Communications Act directs the
    Commission to "prescribe methods by which a reasonable reserve price
    will be required, or a minimum bid established, to obtain any
    license or permit being assigned pursuant to the competitive
    bidding, unless the Commission determines that such a reserve price
    or minimum bid is not in the public interest."

[^82]: BellSouth/SBC Comments at 4-5.

[^83]: *See Auction No. 35 Public Notice* at 5-7.

[^84]: BellSouth/SBC Comments at 5-6.

[^85]: *See* Auction of 800 MHz SMR Upper 10 MHz Band, Minimum Opening
    Bids or Reserve Prices, DA 97‑2147, *Order*, 12 FCC Rcd. 16,354,
    16,358 (1997).

[^86]: *Auction No. 35 Comment Public Notice* at 11.

[^87]: *Id*.

[^88]: *Auction No. 35 Comment Public Notice* at 13.

[^89]: Verizon Comments at 4.

[^90]: BellSouth/SBC Reply at 3; AT&T Reply at 1-2.

[^91]: The Bureau retains the discretion to lower the minimum acceptable
    bid on such licenses in the next round or in later rounds.

[^92]: *See* 47 C.F.R. §§ 1.2104(g), 1.2109.

[^93]: *See* *Part 1 Fifth Report and Order*, ¶ 15; 47 C.F.R. §
    1.2104(g)(1).

[^94]: *See Part 1 Fifth Report and Order*, ¶ 15.

[^95]: *See* Qualcomm Incorporated Petition for Declaratory Ruling
    Giving Effect to the Mandate of the District of Columbia Circuit
    Court of Appeals, *Order*, FCC 00-189 (rel. June 8, 2000).

[^96]: *C/F Block Sixth Report and Order*, ¶¶ 38-42.

[^97]: Multiple increment bids are not rounded according to the
    previously stated rounding rule; they are received, displayed, and
    stored by the Automated Auction System as non-rounded dollar amounts
    resulting from the following formula: Amount Bid = High Bid + (Bid
    Multiplier \* Bid Increment).