**DA 00-781**

**April 10, 2000**

###### AUCTION OF LICENSES FOR THE 700 MHz GUARD BANDS {#auction-of-licenses-for-the-700-mhz-guard-bands .unnumbered}

######  SCHEDULED FOR JUNE 14, 2000 {#scheduled-for-june-14-2000 .unnumbered}

**Auction Notice and Filing Requirements**

**for 104 Licenses in the 700 MHz Guard Band**

**Auction Scheduled for June 14, 2000**

**Minimum Opening Bids and Other Procedural Issues**

**Report No. AUC-00-33-B (Auction No. 33 )**

I. General Information [4](#general-information)

A. Introduction [4](#introduction)

1\. Background of Proceeding [4](#background-of-proceeding)

2\. Licenses to Be Auctioned [5](#licenses-to-be-auctioned)

B. Rules and Disclaimers [5](#rules-and-disclaimers)

1\. Relevant Authority [5](#relevant-authority)

2\. Prohibition of Collusion [6](#prohibition-of-collusion)

3\. Protection of Public Safety Operations......... 7

4\. Protection of Television Services
[7](#protection-of-television-services)

5\. Due Diligence [9](#due-diligence)

6\. Bidder Alerts 10

7\. National Environmental Policy Act (NEPA) Requirements...............
11

C. Auction Specifics [11](#auction-specifics)

1\. Auction Date [11](#auction-date)

2\. Auction Title [11](#auction-title)

3\. Bidding Methodology [11](#bidding-methodology)

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

5\. Requirements for Participation 12

6\. General Contact Information [12](#requirements-for-participation)

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

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

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

C. Small Business Bidding Credits (Form 175 Exhibit C)
[14](#small-business-bidding-credits-form-175-exhibit-c)

1\. Eligibility [14](#eligibility)

2\. Application Showing [15](#application-showing)

3\. Bidding Credits [15](#bidding-credits)

D. Other Information (Form 175 Exhibits D and E)
[16](#other-information-form-175-exhibits-d-and-e)

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

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

III\. PRE-AUCTION PROCEDURES [16](#pre-auction-procedures)

A. Auction Seminar [16](#auction-seminar)

B. Short-Form Application (FCC Form 175) \-- Due May 9, 2000
[17](#short-form-application-fcc-form-175----due-may-9-2000)

1\. Electronic Filing [17](#electronic-filing)

2\. Completion of the FCC Form 175 [17](#completion-of-the-fcc-form-175)

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

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

D. Upfront Payments \-- Due May 26, 2000
[18](#upfront-payments----due-may-26-2000)

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

2\. FCC Form 159 [19](#fcc-form-159)

3\. Amount of Upfront Payment [19](#amount-of-upfront-payment)

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

E. Auction Registration [22](#auction-registration)

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

G. Mock Auction [23](#mock-auction)

IV\. AUCTION EVENT [23](#auction-event)

A. Auction Structure [23](#auction-structure)

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

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

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

4\. Auction Stages [25](#auction-stages)

5\. Stage Transitions [26](#stage-transitions)

6\. Auction Stopping Rules [26](#auction-stopping-rules)

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

B. Bidding Procedures [28](#bidding-procedures)

1\. Round Structure [28](#round-structure)

2\. Reserve Price or Minimum Opening Bid
[28](#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 36

8\. Auction Announcements [35](#__RefHeading___Toc474809448)

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. Default and Disqualification [36](#default-and-disqualification)

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

VI\. Attachment A [38](#attachment-a)

VII\. Attachment B [40](#attachment-b)

VIII\. Attachment C [41](#attachment-c)

IX\. Attachment D [44](#attachment-d)

X. Attachment E [50](#attachment-e)

XI\. Attachment F [52](#attachment-f)

XII\. Attachment G [53](#attachment-g)

XIII\. Attachment H [55](#attachment-h)

XIV\. Attachment I 61

XV\. Attachment J 65

# General Information

## Introduction

This public notice announces the procedures and minimum opening bids for
the upcoming auction of licenses for fixed and mobile services in the
746-747/776-777 and 762-764/792-794 MHz bands ("Auction No. 33"). On
March 10, 2000, the Wireless Telecommunications Bureau ("Bureau")
released a public notice,[^1] seeking comment on the establishment of
reserve prices or minimum opening bids for Auction No. 33, in accordance
with the Balanced Budget Act of 1997.[^2] In addition, the Bureau sought
comment on a number of procedures to be used in Auction No. 33.[^3] The
Bureau received four comments and five reply comments in response to the
*Auction No. 33 Comment Public Notice*.[^4]

### Background of Proceeding

The 746-806 MHz band has historically been used exclusively by
television stations (Channels 60-69). Incumbent analog television
broadcasters are permitted by statute to continue operations in this
band until their markets are converted to digital television
("DTV").[^5] The Budget Act directed the Commission to reallocate this
spectrum for public safety and commercial use by December 31, 1997,[^6]
and to commence competitive bidding for the commercial licenses on the
reallocated spectrum after January 1, 2001.[^7] In November 1999,
Congress enacted a consolidated appropriations statute that revised the
latter instruction.[^8] This legislation accelerated the schedule for
auction of the commercial spectrum bands, and requires that the proceeds
from the auction of these bands be deposited in the U.S. Treasury by
September 30, 2000.

### Licenses to Be Auctioned 

The licenses available in this auction consist of one 4 megahertz
license (a pair of 2 megahertz blocks) and one 2 megahertz license (a
pair of 1 megahertz blocks) in each of 52 Major Economic Areas (MEAs).
These licenses are listed in this public notice on Attachment A. The
following table contains the Block/Frequency Band cross-references for
Auction No. 33:

#########  {#section .unnumbered}

**Frequencies (MHz)**

  --------------- -------------------------------------------------------
  License Suffix  Frequencies

  A               746 - 747, 776 - 777

  B               762 - 764, 792 - 794
  --------------- -------------------------------------------------------

## Rules and Disclaimers

### Relevant Authority

Prospective bidders must familiarize themselves thoroughly with the
Commission\'s rules relating to the 700 MHz band, contained in Title 47,
Part 27 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. 33 Comment Public Notice;* Service
Rules for the 746-764 and 776-794 MHz Bands, and Revisions to Part 27 of
the Commission's Rules, *Second Report and Order*, WT Docket No. 99-168,
FCC 00-90 (rel. March 9, 2000*)("700 MHz Second Report & Order"*), 65
Fed. Reg. 17594 (April 4, 2000), and *First Report and Order,* WT Docket
No. 99-168, FCC 00-5 (rel. January 7, 2000) ("*700 MHz First Report &
Order*"), 65 Fed. Reg. 3139 (January 20, 2000) *recon pending*;
Reallocation of Television Channels 60-69, the 746-806 MHz Band, ET
Docket No. 97-157, *Report and Order*, 12 FCC Rcd 22953 (1998),
*recon*., 13 FCC Rcd 21578 (1998) ("*Reallocation Reconsideration"*).

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 pertaining to this auction. Copies of most Commission documents,
including public notices, can be retrieved from the FCC Internet node
via anonymous ftp \@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 00-5 for the *700 MHz First
Report & Order*).

### 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.[^9] This prohibition begins with the filing
of short-form applications, and ends on the down payment due date 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/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. At a minimum, in
such a case, 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.[^10]

The Bureau, however, 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.[^11] In Auction No. 33, for example,
the rule would apply to any applicants bidding for the same MEA.
Therefore, applicants that apply to bid for "all markets" would be
precluded from communicating with all other applicants after filing the
FCC Form 175. However, applicants may enter into bidding agreements
*before* filing their FCC Form 175 short-form applications, as long as
they disclose the existence of the agreement(s) in their Form 175
short-form applications.[^12] 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. 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.[^13] Thus, Section 1.65
requires an auction applicant to notify the Commission of any violation
of the anti-collusion rules upon learning of such violation. Bidders are
therefore required to make such notification to the Commission
immediately upon discovery.

### Protection of Public Safety Operations

Section 337 (d)(4) of the Budget Act requires that the Commission
establish rules insuring that public safety services licensees using
spectrum reallocated pursuant to subsection (a)(1) shall not be subject
to harmful interference from television broadcast licensees.[^14] The
Conference Report pertaining to that section states that the Commission
should ensure that public safety service licensees in the 746-806 MHz
band "continue to operate free of interference from any new commercial
licensees."[^15] To achieve this end, the Commission established "Guard
Bands" in the 746-747MHz, 762-764 MHz, 776-777 MHz, and 792-794 MHz
bands. The Commission required that entities operating in the Guard
Bands adhere to the same out-of-band emission ("OOBE") criteria that was
adopted for 700 MHz public safety users. In addition, these entities
must coordinate their frequency use with public safety frequency
coordinators and also comply with the adjacent channel coupled power
out-of-band emission limits. [^16] In addition, operations in the Guard
Bands are restricted to entities that do not use a cellular system
architecture.[^17]

### Protection of Television Services

Licensees operating on the spectrum associated with Channels 60, 62, 65,
and 67 must comply with the co-channel and adjacent channel provisions
of Section 27.60 of our Rules. For example, an entity operating on any
portion of the 746-747 MHz Guard Band, which is contained in Channel 60,
must provide co-channel protection to Channel 60, and adjacent channel
protection to Channels 59 and 61.[^18]

#### Negotiations with Incumbent Broadcast Licensees

#### As the Commission noted in the *700 MHz First Report & Order*: "The Congressional plan set forth in Sections 336 and 337 of the \[Communications\] Act and in the 1997 Budget Act is to transition this spectrum from its current use for broadcast services to commercial use and public safety services."[^19] Congress also has directed the Commission to auction 36 MHz of spectrum, six of which are the subject of this auction, allocated for commercial use at least six years before the relocation deadline for incumbent broadcasters in this spectrum, while adopting interference limits and other technical restrictions necessary to protect full-service analog and digital television service during the transition to DTV.[^20] In these circumstances, the Commission will consider specific regulatory requests needed to implement voluntary agreements reached between incumbent licensees and new licensees in these bands. In considering whether the public interest would be served by approving specific requests, the Commission would, for example, consider the benefits to consumers of the provision of new wireless services, such as next generation mobile services or Internet fixed access services.[^21] The Commission would also consider whether such agreements would help clear spectrum for public safety use in these bands and could result in the provision of new wireless service in rural and other relatively underserved communities. On the other hand, the Commission would also consider loss of service to the broadcast community of the licensee. For example, the Commission would consider the availability of the licensee's former analog programming within the service area, through simulcast of that programming on the licensee's DTV channel or distribution of the programming on cable or DBS, or the availability of similar broadcast services within the service area (e.g., whether the lost service is the only network service, the only source for local service, or the only source for otherwise unique broadcast service). {#as-the-commission-noted-in-the-700-mhz-first-report-order-the-congressional-plan-set-forth-in-sections-336-and-337-of-the-communications-act-and-in-the-1997-budget-act-is-to-transition-this-spectrum-from-its-current-use-for-broadcast-services-to-commercial-use-and-public-safety-services.-congress-also-has-directed-the-commission-to-auction-36-mhz-of-spectrum-six-of-which-are-the-subject-of-this-auction-allocated-for-commercial-use-at-least-six-years-before-the-relocation-deadline-for-incumbent-broadcasters-in-this-spectrum-while-adopting-interference-limits-and-other-technical-restrictions-necessary-to-protect-full-service-analog-and-digital-television-service-during-the-transition-to-dtv.-in-these-circumstances-the-commission-will-consider-specific-regulatory-requests-needed-to-implement-voluntary-agreements-reached-between-incumbent-licensees-and-new-licensees-in-these-bands.-in-considering-whether-the-public-interest-would-be-served-by-approving-specific-requests-the-commission-would-for-example-consider-the-benefits-to-consumers-of-the-provision-of-new-wireless-services-such-as-next-generation-mobile-services-or-internet-fixed-access-services.-the-commission-would-also-consider-whether-such-agreements-would-help-clear-spectrum-for-public-safety-use-in-these-bands-and-could-result-in-the-provision-of-new-wireless-service-in-rural-and-other-relatively-underserved-communities.-on-the-other-hand-the-commission-would-also-consider-loss-of-service-to-the-broadcast-community-of-the-licensee.-for-example-the-commission-would-consider-the-availability-of-the-licensees-former-analog-programming-within-the-service-area-through-simulcast-of-that-programming-on-the-licensees-dtv-channel-or-distribution-of-the-programming-on-cable-or-dbs-or-the-availability-of-similar-broadcast-services-within-the-service-area-e.g.-whether-the-lost-service-is-the-only-network-service-the-only-source-for-local-service-or-the-only-source-for-otherwise-unique-broadcast-service. .unnumbered}

#### Canadian and Mexican Border Regions {#canadian-and-mexican-border-regions .unnumbered}

#### There are currently separate agreements with Canada and Mexico covering TV broadcast use of the UHF 470-806 MHz band. Such agreements do not reflect the additional use or services adopted in the *700 MHz First Report & Order* and the *700 MHz Second Report & Order* for 746-764 and 776-794 MHz bands.[^22] While the Commission staff has been involved in discussions with both countries regarding coordination of interference criteria for the use of these bands in the border areas for the additional services, agreements have yet to be reached.[^23] Therefore, until such agreements have been finalized, the Commission found it necessary to adopt certain interim requirements for licenses in these bands along the Canada and Mexico borders.[^24] Accordingly, licenses issued for these bands within 120 km of the borders will be made subject to whatever future agreements the United States develops with those two countries. In that the existing agreements for the protection of TV stations in those countries are still in effect and must be recognized until they are replaced or modified to reflect the new uses, the Commission decided that licenses in the border areas will be granted on the condition that harmful interference may not be caused to, but must accept interference from, UHF TV transmitters in Canada and Mexico. Furthermore, the Commission pointed out that modifications may be necessary to comply with whatever provisions are ultimately specified in future agreements with Canada and Mexico regarding the use of these bands.[^25] Pending further negotiations, the Commission has adopted the protection criteria found in Section 90.545 of the Commission\'s Rules, 47 C.F.R. § 90.545, as an interim criteria for protecting Canadian and Mexican TV and DTV stations.[^26] Potential bidders should be aware that a petition for reconsideration of the TV protection criteria has been filed. Based on future Commission action on this petition, the protection criteria and license conditions, as described above, could be modified. {#there-are-currently-separate-agreements-with-canada-and-mexico-covering-tv-broadcast-use-of-the-uhf-470-806-mhz-band.-such-agreements-do-not-reflect-the-additional-use-or-services-adopted-in-the-700-mhz-first-report-order-and-the-700-mhz-second-report-order-for-746-764-and-776-794-mhz-bands.-while-the-commission-staff-has-been-involved-in-discussions-with-both-countries-regarding-coordination-of-interference-criteria-for-the-use-of-these-bands-in-the-border-areas-for-the-additional-services-agreements-have-yet-to-be-reached.-therefore-until-such-agreements-have-been-finalized-the-commission-found-it-necessary-to-adopt-certain-interim-requirements-for-licenses-in-these-bands-along-the-canada-and-mexico-borders.-accordingly-licenses-issued-for-these-bands-within-120-km-of-the-borders-will-be-made-subject-to-whatever-future-agreements-the-united-states-develops-with-those-two-countries.-in-that-the-existing-agreements-for-the-protection-of-tv-stations-in-those-countries-are-still-in-effect-and-must-be-recognized-until-they-are-replaced-or-modified-to-reflect-the-new-uses-the-commission-decided-that-licenses-in-the-border-areas-will-be-granted-on-the-condition-that-harmful-interference-may-not-be-caused-to-but-must-accept-interference-from-uhf-tv-transmitters-in-canada-and-mexico.-furthermore-the-commission-pointed-out-that-modifications-may-be-necessary-to-comply-with-whatever-provisions-are-ultimately-specified-in-future-agreements-with-canada-and-mexico-regarding-the-use-of-these-bands.-pending-further-negotiations-the-commission-has-adopted-the-protection-criteria-found-in-section-90.545-of-the-commissions-rules-47-c.f.r.-90.545-as-an-interim-criteria-for-protecting-canadian-and-mexican-tv-and-dtv-stations.-potential-bidders-should-be-aware-that-a-petition-for-reconsideration-of-the-tv-protection-criteria-has-been-filed.-based-on-future-commission-action-on-this-petition-the-protection-criteria-and-license-conditions-as-described-above-could-be-modified. .unnumbered}

### Due Diligence 

The FCC makes no representations or warranties about the use of this
spectrum for particular services. Applicants should be aware that an FCC
auction represents an opportunity to become an FCC licensee in this
service, subject to certain conditions and regulations. An 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 should perform their
individual due diligence before proceeding as they would with any new
business venture.

Potential bidders are reminded that there are a number of incumbent
broadcast television licensees already licensed and operating in the
746-764 and 776-794 MHz bands (television Channels 60-62 and 65-67), six
megahertz of which will be subject to the upcoming auction. As discussed
above in greater detail, the Commission made clear that geographic area
licensees operating on the spectrum associated with Channels 60, 62, 65,
and 67 must comply with the co-channel and adjacent channel provision of
Section 90.545 of the Commission's rules.[^27] In addition, geographic
area licensees operating fixed stations in the 746-764 MHz band must
comply with the relevant provisions for "base stations" in Sections
90.309 and 90.545 of the Commissions Rules; and licensees operating
fixed stations in the 776-794 MHz band must comply with the relevant
provisions for "control stations" in those sections of the rules.[^28]

These limitations may restrict the ability of such geographic licensees
to use certain portions of the electromagnetic spectrum or provide
service to certain regions in their geographic license areas. Listed in
Attachment J are the facilities of incumbent television permittees and
licensees on television Channels 59-68. However, prospective bidders
should not rely solely on this list, but should carefully review the
Commission's databases and records before formulating bidding
strategies. Records relating to these stations are available for public
inspection during regular business hours in the Reference Information
Center at the Federal Communications Commission, 445 Twelfth Street, SW,
CY-A257, Washington, D C 20554. The Commission makes no representation
or guarantees regarding the accuracy or completeness of the information
in Attachment J. In addition, the Commission makes no representations or
guarantees regarding the accuracy or completeness of information that
has been provided by incumbent licensees and incorporated into the
databases. Potential bidders are strongly encouraged to physically
inspect any sites located in or near the geographic area for which they
plan to bid.

Potential bidders should also be aware of the following filings:

> QUALCOMM Incorporated, Petition for Declaratory Ruling Giving
>
> Effect to the Mandate of the District of Columbia Circuit Court
>
> of Appeals, Service Rules for the 746-764 and 776-794 MHz
>
> Bands and Revisions to Part 27 of the Commission's Rules,
>
> Petition for Declaratory Ruling (filed January 28, 2000).
>
> "Wireless Telecommunications Bureau Seeks Comment On
>
> QUALCOMM Incorporated's Petition for Declaratory Ruling
>
> Seeking 700 MHz Band License Pursuant to Ruling
>
> of U.S. Circuit Court of Appeals," *Public Notice*, DA 00-219
>
> (rel. February 4, 2000); Extension of Filing Deadline for Comments
>
> to QUALCOMM Incorporated's Petition for Declaratory Ruling,
>
> *Public Notice*, DA 00-273 (rel. February 11, 2000).

**Potential bidders should also be aware that certain applications
(including those for modification), petitions for rulemaking, waiver
requests, requests for special temporary authority ("STA"), petitions to
deny, petitions for reconsideration, and applications for review may be
pending before the Commission that relate to the facilities in
Attachment J. We note that resolution of these pending matters could
have an impact on the availability of spectrum for licensees in the
746-764 and 776-794 MHz bands. While the Commission will continue to act
on pending matters, some of these matters may not be resolved by the
time of auction. Potential bidders are strongly encouraged to conduct
their own research prior to Auction No. 33 in order to determine the
existence of pending proceedings that might affect their decisions
regarding participation in the auction. Participants in Auction No. 33
are strongly encouraged to continue such research during the auction.**

6**. 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. 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.

As is the case with many business investment opportunities, some
unscrupulous entrepreneurs may attempt to use Auction No. 33 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 the minimum 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 700 MHz proposals may also call the FCC Consumer Center at
(888) CALL-FCC ((888) 225-5322).

### National Environmental Policy Act (NEPA) Requirements

The licensee must comply with the Commission\'s rules regarding the
National Environmental Policy Act (NEPA). The construction of a 700 MHz
facility is a federal action and the permitee must comply with the
Commission\'s NEPA rules for each such facility. *See* 47 C.F.R.
§§1.1305-1.1319. The Commission\'s NEPA rules require that, among other
things, the permitee 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 permitee 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 permitee
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 Wednesday, June 14, 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.

### Auction Title

Auction No. 33 --- 700 MHz Guard Band

### Bidding Methodology 

The bidding methodology for Auction No. 33 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 April 27, 2000
>
> Short-Form Application (FCC FORM 175) May 9, 2000; 6:00 p.m. ET
>
> Upfront Payments (via wire transfer) May 26, 2000; 6:00 p.m. ET
>
> Orders for Remote Bidding Software May 30, 2000; 6:00 p.m. ET
>
> Mock Auction June 12, 2000
>
> Auction Begins June 14, 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, May 9, 2000.

-   Submit a sufficient upfront payment and an FCC Remittance Advice
    Form (FCC Form 159) by 6:00 p.m. ET May 26, 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 Software Hours of service: 8 a.m. -- 6:00 p.m.
ET

***AUCTION LEGAL INFORMATION*** Auctions and Industry Analysis Division

Auction Rules, Policies, Regulations Legal Branch (202) 418-0660

***LICENSING INFORMATION*** Commercial Wireless Division

Rules, Policies, Regulations (202) 418-0620

Licensing Issues

Incumbency/Protection Issues

***TECHNICAL SUPPORT*** FCC Auctions Technical Support Hotline

Electronic Filing Assistance (202) 414-1250 (Voice),

Software Downloading (202) 414-1255 (TTY)

Hours of service: 8 a.m. -- 6:00 p.m. ET

***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/wtb/auctions>

[http://www.fcc.gov](http://www.fcc.gov/)

[ftp://ftp.fcc.gov](ftp://ftp.fcc.gov/)

# 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, bidding
credit eligibility, identification of the authorization(s) sought, the
authorized bidders and contact persons, and specific ownership
information.

## Ownership Disclosure Requirements (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 Form 175,
applicants will be required to file an Exhibit A providing a full and
complete statement of the ownership of the bidding entity.[^29] The
ownership disclosure standards for the short-form are set forth in
Section 1.2112 of the Commission's rules.

## Consortia And Joint Bidding Arrangements (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); 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 application and may not continue
discussions with applicants for the same geographic license area(s)
after the deadline.[^30] In cases 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 construction permits in the same geographic license area
provided that (i) the attributable interest holder(s) certify 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.[^31] 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 broach on impermissible subject matters
because they may convey pricing information and bidding strategies.

## Small Business Bidding Credits (Form 175 Exhibit C)

In the *700 MHz Second Report & Order*, the Commission adopted small
business provisions to promote and facilitate the participation of small
businesses in competitive bidding for Guard Band licenses in the 700 MHz
band.[^32]

### Eligibility

Bidding credits are available to small businesses and very small
businesses as defined in 47 C.F.R Section 27.502(a). For purposes of
determining which entities qualify as very small businesses or small
businesses, the Commission will consider the gross revenues of the
applicant, its controlling interests, and affiliates of the applicant
and its controlling interests. The Commission does not impose specific
equity requirements on controlling interests. Once principals or
entities with a controlling interest are determined, only the revenues
of those principals or entities, the applicant and its affiliates will
be counted in determining small business eligibility. 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.[^33] 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.

A consortium of small businesses, or very small businesses is a
conglomerate organization formed as a joint venture between or among
mutually independent business firms, each of which *individually*
satisfies the definition of small or very small business in Section
27.502. 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 must file supporting documentation as Exhibit C to their FCC
Form 175 short form applications to establish that they satisfy the
eligibility requirements to qualify as a small business or very small
business (or consortia of small or very small businesses) for this
auction.[^34] Specifically, for Auction No. 33, applicants applying to
bid as small or very small businesses (or consortia of small or very
small businesses) 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 three years 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 the average 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, and its controlling interests, 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.

### Bidding Credits

Applicants that qualify under the definitions of small business and very
small business (or consortia of small or very small businesses) as are
set forth in 47 C.F.R. § 27.502, are eligible for a bidding credit that
represents the amount by which a bidder\'s winning bids are
discounted.[^35] The size of a bidding credit in the 700 MHz guard band
auction depends on the average gross revenues for the preceding three
years of the bidder and its controlling interests and affiliates:

-   A bidder with average gross revenues of not more than \$40 million
    for the preceding three years receives a 15 percent discount on its
    winning bids for 700 MHz Guard Band manager licenses ("small
    business");[^36]

-   A bidder with average gross revenues of not more than \$15 million
    for the preceding three years receives a 25 percent discount on its
    winning bids for 700 MHz Guard Band manager licenses ("very small
    business").[^37]

Bidding credits are not cumulative: qualifying applicants receive either
the 15 percent or the 25 percent bidding credit, but not both.

Bidders in Auction No. 33 should note that unjust enrichment provisions
apply to winning bidders that use bidding credits and subsequently
assign or transfer control of their licenses to an entity not qualifying
for the same level of bidding credit.[^38] Finally, bidders should also
note that there are no installment payment plans in Auction No. 33.

## Other Information (Form 175 Exhibits D and E)

Applicants owned by minorities or women, as defined in 47 C.F.R. §
1.2110(b)(2), may attach an exhibit (Exhibit D) 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 in Exhibit E, Miscellaneous Information to the FCC Form 175.

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

After the short-form filing deadline (May 9, 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, 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 Amy Zoslov, Chief, Auctions and Industry Analysis
Division, Wireless Telecommunications Bureau, Federal Communications
Commission, 445 12th Street, SW, Suite 4-A760 Washington, DC 20554,
briefly summarizing the changes. Questions about other changes should be
directed to Howard Davenport 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 Thursday, April 27, 2000, the FCC will sponsor a free seminar for
Auction No. 33 at the Federal Communications Commission, located at 445
12^th^ Street, S.W., Washington, D.C. The seminar will provide attendees
with information about pre-auction procedures, conduct of the auction,
FCC remote bidding software, and the 700 MHz Guard Band service 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 included as Attachment B of
this public notice and submit it by Tuesday, April 25, 2000.
Registrations are accepted on a first-come, first-served basis.

## Short-Form Application (FCC Form 175) \-- Due May 9, 2000

In order to be eligible to bid in this auction, applicants must first
submit an FCC Form 175 application. This application must be submitted
electronically and received at the Commission by 6:00 p.m. ET on May 9,
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.[^39] Applications may generally be filed at any time
from April 27, 2000 until 6:00 p.m. ET on May 9, 2000. Applicants are
strongly encouraged to file early, and applicants 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 May 9, 2000.

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 are 8 a.m. to 6
p.m. ET, Monday through Friday.

### Completion of the FCC Form 175

Applicants must 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 system 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**.** *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 that 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 May 9,
2000, short form filing deadline, applicants may make only minor
corrections to their FCC Form 175 applications.[^40] 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).[^41]

## Upfront Payments \-- Due May 26, 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 May 26, 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. 33 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 May 26, 2000 deadline
    will result in dismissal of the application and disqualification
    from participation in the auction.

### Auction Payments by Wire Transfer

Wire transfer payments must be received at Mellon Bank by 6:00 p.m. ET
on May 26, 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 910-1174
>
> OBI Field: (Skip one space between each information item)

"AUCTIONPAY"

> TAXPAYER IDENTIFICATION NO. (same as FCC Form 159, block 26)
>
> PAYMENT TYPE CODE (enter "A33U")
>
> FCC CODE 1 (same as FCC Form 159, block 23A: "33")
>
> PAYER NAME (same as FCC Form 159, block 2)

LOCKBOX NO. \# 358405

**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)
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. 33**.**"
**Applicants are strongly encouraged to confirm timely transmission and
receipt of their upfront payment at Mellon Bank and can do so by
contacting their sending financial institution.**

### FCC Form 159

A completed FCC Remittance Advice Form (FCC Form 159) must be faxed to
Mellon Bank to accompany each upfront payment wire transfer. 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 submitting 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.[^42] In the *Auction No. 33 Comment Public
Notice*, the Bureau proposed upfront payments for Auction No. 33.[^43]
Several comments were submitted regarding the amount of upfront payments
proposed for this auction, and a revised list of upfront payments
appears as Attachment A.

Comments concerning the proposed upfront payment were submitted by AMTA,
and Motorola. According to Motorola, the proposed amounts for upfront
payments are extremely high given the level of incumbency and
restrictions required of licensees in this band.[^44] Furthermore,
Motorola argues that a Guard Band Manager, where TV incumbency is an
issue, may not realize any return on its license investment until
December of 2006 and Guard Band Managers are unlikely to be in a
position to assess the nature of adjacent commercial operations prior to
bidding.[^45] Moreover, Motorola claims that the proposed upfront
payments preclude participation by small business and private land
mobile coordinators. To address these concerns, Motorola urges that the
Bureau use the same formula employed in the 1999 220 MHz auction
("Auction No. 24") to set minimum opening bids and upfront payments.
[^46] According to Motorola, applying the formula in this proceeding
would result in upfront payments that total \$2,108,178 for Block A and
\$4,209,287 for Block B licenses.[^47] AMTA raises similar concerns in
recommending that the Commission reduce the upfront payments to
one-third or one-quarter of their current valuations.[^48] AMTA also
notes that this spectrum is affected by the existence of co-channel or
adjacent channel television broadcast stations in virtually every market
of significant size around the nation and that these licensees are not
required to vacate the spectrum until 2006 and that some licensees may
be eligible for an extension of that deadline.[^49] AMTA cites several
other factors, including anticipated interference from Commercial Mobile
Radio Service ("CMRS") operating in the neighboring 30 MHz and the
technical requirement that must be adopted to ensure interference
protection for public safety systems.[^50]

In its reply comments, AMTA points out that all parties who addressed
this issue took the position that the proposed upfront payments are too
high. AMTA cites several factors in support of its position.[^51] AMTA
urges that the Commission use the upfront payments proposed by Motorola
as absolute upper limits, with further reductions in markets that are
encumbered.[^52] In its reply comments, ITA strongly supports Motorola's
alternative formula for use in calculating upfront payments.[^53]
Similarly, Mobex, in its reply comments, stated that adoption of such a
standard will provide better assurance that the Guard Band licenses will
be sold, in keeping with the Commission's goals to provide spectrum to
the public at a reasonable price in an expeditious manner.[^54] MRFAC
emphasizes on reply that if the Commission hopes to ensure true
competitive bidding between and among a variety of qualified bidders, is
should significantly reduce the amounts proposed for upfront
payments.[^55] On reply, PCIA questions the amount of the proposed
upfront payment in light of the incumbency on the channels, the fact
that must of the spectrum to be auctioned will be unusable for six
years, the fact that the licensing format is new and untested, the cost
associated with being a Band Manager, and the level of interference
protection that must be provided to adjacent channel public safety
systems.[^56]

Upon careful consideration of the comments and reply comments, the
Bureau has decided to exercise its discretion to adjust the upfront
payments and has set them forth in Attachment A. The revised figures are
approximately one-third of the original proposal. In making this
reduction, we recognize the concerns expressed regarding incumbency and
interference issues and uncertainty in when the spectrum may become
unencumbered. We also respond to concerns raised concerning the
opportunity for small businesses to participate in this auction.

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. 33, the amount of
the upfront payment will be translated into bidding units on a
one-to-one basis, *e.g.*, a \$1,000,000 upfront payment provides the
bidder with 1,000,000 bidding units. The total upfront payment defines
the maximum number 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 that an 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 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.

NOTE: An applicant may, on its FCC Form 175, apply for every 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

The Commission will use wire transfers for all Auction No. 33 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 may
either submit the information electronically after filing their
short-form application or fax the wire transfer instructions by May 26,
2000, to the FCC, Financial Operations Center, Auctions Accounting
Group, ATTN: Michelle Bennett or Gail Glasser, at (202) 418-2843. 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.D., *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 a portion 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, June 9, 2000, must 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, D.C. 20554. Only an authorized
representative or certifying official, as designated on the 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 by telephone. 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, May 30, 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. 33. If bidding telephonically,
the telephonic bidding phone number will be supplied in the second
Federal Express mailing of confidential login codes. Qualified bidders
that do not purchase the software may only bid telephonically. To
indicate your bidding preference, an FCC Bidding Preference/Remote
Software Order Form can be accessed when submitting the FCC Form 175 and
completed electronically. A copy of this form is included as Attachment
F in this public notice.

## Mock Auction

All qualified bidders will be eligible to participate in a mock auction
scheduled for Monday, June 12, 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.

# AUCTION EVENT

The first round of bidding for Auction No. 33 will begin on Wednesday,
June 14, 2000. 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.

## Auction Structure

### Simultaneous Multiple Round Auction

In the *Auction No. 33 Comment Public Notice*, we proposed to award 104
Guard Band Manager licenses in the 700 MHz guard bands in a single,
simultaneous multiple round auction.[^57] We received no comment on this
issue. We conclude that it is operationally feasible and appropriate to
auction the 700 MHz Guard Band manager 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. For
Auction No. 33, no applicant may be deemed the winning bidder of both
the Block A and the Block B license in a single geographic service
area.[^58]

### Maximum Eligibility and Activity Rules

In the *Auction No. 33 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.[^59] We received no comments on this issue.

For Auction No. 33 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 initially 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. 33.

### Activity Rule Waivers and Reducing Eligibility

In the *Auction No. 33 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.[^60] 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. 33 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.
[^61] 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.
We received no comment on these proposals.

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 final 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. 33.

### Stage Transitions

In the *Auction No. 33 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.[^62] 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
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. 33.

### Auction Stopping Rules

For Auction No. 33, the Bureau proposed to employ a simultaneous
stopping rule.[^63] 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 sought comment on whether this modified stopping rule should be
used unilaterally or only in stage three of the auction.

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.[^64]
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 9where bidders will be required to maintain a higher
level of bidding activity), increasing the number of bidding rounds per
day.

No comments were received on any of these issues, therefore, we adopt
all of the above proposals concerning the auction stopping rules.
Auction No. 33 will begin under the simultaneous stopping rule, and the
Bureau will retain the discretion to invoke the other versions of the
stopping rule. Adoption of these rules, we believe, is most appropriate
for Auction No. 33 because our experience in prior auctions demonstrates
that the auction stopping rules balance the interests of administrative
efficiency and maximum bidder participation. The substitutability
between and 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. 33 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.[^65]

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
with 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 be included
in the Qualified Bidder 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 of 1997 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.[^66] 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.[^67] 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 valuation of the spectrum
being auctioned.[^68] The Commission concluded that the Bureau should
have the discretion to employ either or both of these mechanisms for
future auctions.[^69]

In the *Auction No. 33 Comment Public Notice*, the Bureau proposed to
establish minimum opening bids for Auction No. 33 and to retain
discretion to lower the minimum opening bids.[^70] Specifically, for
Auction No. 33, the Commission proposed calculating the minimum opening
bid based on information available in the form of a Congressional
estimate of the value of the spectrum. In response to the Auction No. 33
Comment Public Notice, AMTA, ITA, Mobex and Motorola all filed comments
concerning the proposed minimum opening bids.

In its comments, AMTA states that it is unlikely that its members will
elect to participate unless the Commission significantly reduces the
minimum opening bids proposed for the Guard Band spectrum.[^71] AMTA
cites several factors in support of its position. First AMTA points out
that the Guard Band spectrum will not become available until 2006 and
that deadline may be further extended.[^72] Also AMTA asserts that the
Guard Band spectrum is susceptible to interference from CMRS systems
operating in the neighboring 30 MHz and that the economic utility of the
Guard Band allocation will be affected by the technical requirements
adopted to ensure interference protection for public safety
systems.[^73] According to AMTA, these factors support a reduction to
one-third or one-quarter of the proposed valuations in minimum opening
bids in the Guard Band auction.[^74]

ITA claims that the Commission needs to revisit the amount set for the
minimum opening bids in order to give consideration to the interference
protection that must be provided public safety users.[^75] According to
ITA, the protection requirements have the potential to erode the ability
of the Guard Band Manager to fully maximize use of the spectrum.
Further, according to ITA, the Guard Band Manager must also consider
potential interference from adjacent band commercial users and avoid
causing interference to incumbent broadcast operations. ITA argues that
basing minimum bids upon traditional calculations, when there is the
possibility that use of the spectrum cannot be fully maximized simply
makes it that much more difficult to attract a wide pool of prospective
Guard Band Managers.[^76] In view of these factors, ITA strongly
encourages the Commission to reevaluate the methodology it used in
setting the opening minimum bids. ITA did not state what minimum opening
bid would be appropriate.

Mobex claims that the minimum opening bids: (i) are cost prohibitive for
most small businesses; (ii) contradict the requirements of the 1996
Telecommunications Act, specifically Section 309(j); and (iii) will have
a long term negative impact on the few remaining small businesses in the
SMR industry, including Mobex.[^77] According to Mobex, the
Commission\'s excessive minimum opening bids effectively preclude
countless small businesses from realistically participating in the
auction proceeding. Mobex cites to Section 309(j) of the
Telecommunications Act, which Mobex says requires the Commission to
avoid excessive concentration of licenses by disseminating licenses
among a wide variety of applicants, including small businesses.[^78]
Mobex did not indicate what would be a more acceptable minimum opening
bid.

Motorola argues that the proposed minimum opening bid amounts fail to
account for: (i) the presence of incumbent broadcast stations; (ii) the
possibility of interference from adjacent commercial licensees; and
(iii) the barrier to entry these amounts present for small businesses
and associations likely to be interested in the role of Guard Band
Manager.[^79] Motorola further argues that the Commission did not
explain the valuation expected for the Guard Band licenses as compared
to the amount anticipated to be raised by the licenses available on the
other 30 megahertz of spectrum allocated for commercial use in the 700
MHz band. Thus, Motorola says that it has no way of knowing what
specific value the Bureau placed on the Guard Band spectrum.[^80]
Motorola adds that because of TV incumbency issues, there are some
markets where a Guard Band Manager may not be able to recognize a return
on its license until December, 2006. Further, Motorola claims that the
Guard Band spectrum faces potential interference from users of the
remaining 30 megahertz of commercial spectrum in the 700 MHz band.
Moreover, Motorola argues that the current values for upfront payments
preclude small businesses and private land mobile frequency coordinators
from participation in the auction. Motorola asserts that the bidding
credits do not help because the credits are not applied to upfront
payment amounts and the time constraints to raise the capital are
extremely short due to the Congressional requirement to deposit the
proceeds by September 30, 2000. Motorola recommends that the Bureau use
the same formula that it used in setting the minimum opening bids for
the 220 MHz spectrum in Auction No. 24 and that the Bureau maintain the
33% ratio, used in this proceeding, between minimum opening bids and
upfront payments.[^81] Furthermore, Motorola claims that markets which
are encumbered should be subject to a further reduction in minimum
opening bids.

Reply comments were submitted by AMTA, ITA, Mobex , MRFAC, and PCIA.

On reply, AMTA notes that all of the initial comments filed in this
proceeding took the position that the proposed minimum opening bids were
unreasonably high.[^82] AMTA says that collectively the factors cited by
commenters support a reduction in both the upfront payment and minimum
opening bids in Auction No. 33. AMTA argues that those few parties that
are able to participate in the auction will have to pass on unreasonably
high acquisition costs to potential lessees, thus negatively impacting,
if not eliminating, participation by small businesses. AMTA reiterates
that the Commission should reduce the upfront payments and the minimum
opening bids for the Guard Band spectrum to one-third or one-quarter of
their current valuations to bring the valuations in line with the 220
MHz auction figures. AMTA concludes by stating that it supports
Motorola\'s proposal to maintain a ratio of 33 % between minimum opening
bids and upfront payments and that the Commission should use Motorola\'s
proposal as the absolute upper limits, with further reductions in
markets that are encumbered. [^83]

In its reply comments, ITA also notes that all of those filing comments
agreed that the Commission should revisit the amount of minimum opening
bids. According to ITA, because the guard band manager must protect
public safety users from interference, while avoiding interference to
incumbent broadcast operations, it is much more difficult to attract a
wide pool of prospective bidders.[^84] ITA states that it supports
Motorola\'s proposal to apply the valuations used in the 220 MHz auction
to set upfront payments and minimum opening bids.[^85]

In its reply comments, Mobex notes that all parties who submitted
initial comments are in agreement that the Commission\'s proposed
minimum opening bids would be cost prohibitive for many small businesses
Mobex states that the Commission should reduce the valuation for the
Guard Band, citing arguments of potential interference from users within
the 30 megahertz block, the lack of out-of-band limitations on the 30
megahertz block, the requirement to protect public safety users, and the
existence of co-channel or adjacent channel television broadcast
stations in virtually every market of significant size around the
nation.. Mobex also notes that a financial return on the guard band
spectrum may be delayed until December, 2006 and beyond.[^86] In view of
the foregoing, Mobex urges the Commission to adopt the valuations
proposed by Motorola in this proceeding.[^87]

MRFAC states that the minimum opening bid amounts are too high,
considering that the spectrum in many of these markets will be
encumbered until December, 2006, or even beyond.[^88] According to
MRFAC, no rational investor would risk these kind of sums for an
encumbered asset. MRFAC, therefore, urges that the Commission use
minimum opening bids that are in line with those for the 220 MHz
auction.

As in the case of the amount of upfront payments, the Bureau is
persuaded by the comments and reply comments that it is appropriate to
make a downward adjustment in the minimum opening bids. In doing so, we
recognize concerns expressed with regard to when the spectrum may become
available, interference and technical issues, and other factors cited in
response to the Auction No. 33 Comment Public Notice. Accordingly, the
Bureau has lowered the proposed minimum opening bids for the licenses in
the Guard Band, establishing minimum opening bids that are approximately
one-third of the original proposal, as set forth in Attachment A.

### Bid Increments and Minimum Accepted Bids

In the *Auction No. 33 Comment Public Notice*, we proposed to use a
smoothing methodology to calculate minimum bid increments.[^89] We
further proposed to retain the discretion to change the minimum bid
increment if circumstances so dictate.[^90] 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, or 20
percent of the license value, and a minimum of 0.1, or 10 percent of the
license value. The Bureau retains the discretion to change the minimum
bid increment if it determines that circumstances 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. 33 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 tie bids, the Commission will identify
the high bidder on the basis of the order in which the Commission
receives bids. 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, as well as 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. 33.

A bidder\'s ability to bid on specific licenses in the first round of
the auction is determined by two factors: (1) the licenses applied for
on FCC Form 175; and (2) 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. 33 allows bidders to place multiple increment bids, which
will let bidders increase high bids 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. 33 Comment Public Notice*, we proposed bid removal
and bid withdrawal rules.[^91] 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. We
received no comment on this issue.

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. 33, 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. 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. 33.

Once a round closes, a bidder may no longer remove a bid. However, in
the next round, 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). The procedure for withdrawing a bid and receiving a
withdrawal confirmation is essentially the same as the bidding procedure
described in "High Bids," Part IV.B.4.

***Calculation.*** Generally, the Commission imposes payments on bidders
that withdraw high bids during the course of an auction.[^92]
Specifically, a bidder ("Bidder X") that withdraws a high bid during the
course of an auction is subject to a bid withdrawal payment equal to the
difference between the amount withdrawn and the amount of the subsequent
winning bid. If a high bid is withdrawn on a license that remains unsold
at the close of the auction, Bidder X will be required to make an
interim payment equal to three (3) percent of the net amount of the
withdrawn bid.[^93] This payment amount is deducted from any upfront
payments or down payments that Bidder X has deposited with the
Commission. If, in a subsequent auction, that license receives a valid
bid in an amount equal to or greater than the withdrawn bid amount, then
no final bid withdrawal payment will be assessed, and Bidder X may
request a refund of the interim three (3) percent payment. If, in a
subsequent auction, the selling price for that license is less than
Bidder X's withdrawn bid amount, then Bidder X will be required to make
a final bid withdrawal payment, less the three percent interim payment,
equal to either the difference between Bidder X's net withdrawn bid and
the subsequent net winning bid, or the difference between Bidder X's
gross withdrawn bid and the subsequent gross winning bid, whichever is
less.

### 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.[^94] Reports reflecting bidders\' identities and bidder
identification numbers for Auction No. 33 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.[]{#__RefHeading___Toc474809448 .anchor}

### 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.E., 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 revisions to
exhibits. Filers must make these changes on-line, and submit a letter
summarizing these changes to:

Amy Zoslov, Chief,

Auctions and Industry Analysis Division,

Wireless Telecommunications Bureau,

Federal Communications Commission,

445 12^th^ Street, S.W., Washington, D.C. 20554

A separate copy of the letter should be mailed to Howard Davenport,
Auctions and Industry Analysis Division), briefly summarizing the
changes. Questions about other changes should be directed to Howard
Davenport, Auctions and Industry Analysis Division 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 bid withdrawal payments due.

Within ten business days after release of the auction closing public
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 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.) In the *700 MHz Second Report and Order,* in light of the
statutory deadline for depositing auction proceeds, the Commission
delegated to the Bureau authority to suspend payment deadlines and
require that winning bidders on all licenses in the 700 MHz bands pay
the full balance of their winning bids upon submission of their
long-form application. (*See 700 MHz Second Report and Order* at ¶ 105.)
The Bureau will announce via Public Notice if it chooses to exercise
this authority.

## Long-Form Application 

Within ten business days after release of the auction closing public
notice, winning bidders must file: (1) FCC Form 601 and all required
exhibits electronically via the Universal Licensing System ("ULS"); and
(2) FCC Form 602 manually pursuant to Section 1.919 of the Commission's
Rules. Winning bidders may file a single application for all markets won
at auction. Winning bidders that are small businesses or very small
businesses must include and exhibit demonstrating their eligibility for
bidding credits. *See* 47 C.F.R. § 1.2112(b). Further, more detailed
filing instructions will be provided to auction winners at the close of
the auction.

## 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 700 MHz guard band license 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.

Bidders that drop out of the auction completely may be eligible for a
refund of their upfront payments before the close of the auction.
However, bidders that reduce their eligibility and remain in the auction
are not eligible for partial refunds of upfront payments until the close
of the auction. Qualified bidders that have exhausted all of their
activity rule waivers, have no remaining bidding eligibility, and have
not withdrawn a high bid during the auction must submit a refund request
which includes wire transfer instructions and a Taxpayer Identification
Number ("TIN"), to:

Federal Communications Commission

Financial Operations Center

Auctions Accounting Group

Shirley Hanberry

445 12th Street, S.W., Room 1-A824

Washington, D.C. 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 request to the Auctions Accounting Group at (202)
418-2843. Once the request 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 Michelle Bennett
> or Gail Glasser at (202) 418-1995.

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

**Auctions and Industry Analysis Division:** Howard Davenport, Attorney,
Auctions Legal Branch at (202) 418-0660; Kathy Garland, Project Manager,
Auctions Operations Branch at (717) 338-2888, or Craig Bomberger,
Analyst, Auctions Operations Branch at (202) 418-0660.

**Commercial Wireless Division:** Roger Noel, Chief, Licensing and
Technical Analysis Branch, at (202) 418-0620.

**- FCC -**

# ATTACHMENT A

**Auction No. 33**

**Licenses to be Auctioned**

**Revised Upfront Payments and Minimum Opening Bids**

  ---------- ------------ ----------- ----------------------------------------- -------------- ----------- ------------- --------------
  **Major    **License    **License   **Description**                           **Population   **Bidding   **Upfront     **Minimum
  Economic   Numbers**    Bandwidth                                             (1990)**       Units**     Payment**     Opening Bid**
  Area**                  (MHz)**                                                                                        

  MEA001     WXMEA001-A   2           Boston                                    8,672,944      62,000      \$62,000      \$186,000

  MEA002     WXMEA002-A   2           New York City                             29,027,017     208,000     \$208,000     \$623,000

  MEA003     WXMEA003-A   2           Buffalo                                   1,529,735      11,000      \$11,000      \$33,000

  MEA004     WXMEA004-A   2           Philadelphia                              7,942,319      57,000      \$57,000      \$170,000

  MEA005     WXMEA005-A   2           Washington                                7,745,433      55,000      \$55,000      \$166,000

  MEA006     WXMEA006-A   2           Richmond                                  3,897,805      28,000      \$28,000      \$84,000

  MEA007     WXMEA007-A   2           Charlotte-Greensboro-Greenville-Raleigh   9,825,342      70,000      \$70,000      \$211,000

  MEA008     WXMEA008-A   2           Atlanta                                   7,341,931      52,000      \$52,000      \$157,000

  MEA009     WXMEA009-A   2           Jacksonville                              2,168,038      16,000      \$16,000      \$47,000

  MEA010     WXMEA010-A   2           Tampa-St. Petersburg-Orlando              5,528,763      40,000      \$40,000      \$119,000

  MEA011     WXMEA011-A   2           Miami                                     5,025,606      36,000      \$36,000      \$108,000

  MEA012     WXMEA012-A   2           Pittsburgh                                4,148,373      30,000      \$30,000      \$89,000

  MEA013     WXMEA013-A   2           Cincinnati-Dayton                         4,325,459      31,000      \$31,000      \$93,000

  MEA014     WXMEA014-A   2           Columbus                                  2,100,613      15,000      \$15,000      \$45,000

  MEA015     WXMEA015-A   2           Cleveland                                 5,077,339      36,000      \$36,000      \$109,000

  MEA016     WXMEA016-A   2           Detroit                                   10,041,377     72,000      \$72,000      \$215,000

  MEA017     WXMEA017-A   2           Milwaukee                                 4,634,011      33,000      \$33,000      \$99,000

  MEA018     WXMEA018-A   2           Chicago                                   12,495,510     89,000      \$89,000      \$268,000

  MEA019     WXMEA019-A   2           Indianapolis                              2,753,182      20,000      \$20,000      \$59,000

  MEA020     WXMEA020-A   2           Minneapolis-St. Paul                      6,018,051      43,000      \$43,000      \$129,000

  MEA021     WXMEA021-A   2           Des Moines-Quad Cities                    2,733,385      20,000      \$20,000      \$59,000

  MEA022     WXMEA022-A   2           Knoxville                                 1,364,665      9,800       \$9,800       \$29,000

  MEA023     WXMEA023-A   2           Louisville-Lexington-Evansville           4,059,317      29,000      \$29,000      \$87,000

  MEA024     WXMEA024-A   2           Birmingham                                3,082,737      22,000      \$22,000      \$66,000

  MEA025     WXMEA025-A   2           Nashville                                 2,002,283      14,000      \$14,000      \$43,000

  MEA026     WXMEA026-A   2           Memphis-Jackson                           3,850,949      28,000      \$28,000      \$83,000

  MEA027     WXMEA027-A   2           New Orleans-Baton Rouge                   4,310,367      31,000      \$31,000      \$92,000

  MEA028     WXMEA028-A   2           Little Rock                               2,309,255      17,000      \$17,000      \$50,000

  MEA029     WXMEA029-A   2           Kansas City                               2,903,432      21,000      \$21,000      \$62,000

  MEA030     WXMEA030-A   2           St. Louis                                 4,436,804      32,000      \$32,000      \$95,000

  MEA031     WXMEA031-A   2           Houston                                   5,513,511      39,000      \$39,000      \$118,000

  MEA032     WXMEA032-A   2           Dallas-Fort Worth                         9,575,762      68,000      \$68,000      \$205,000

  MEA033     WXMEA033-A   2           Denver                                    3,952,116      28,000      \$28,000      \$85,000

  MEA034     WXMEA034-A   2           Omaha                                     1,638,440      12,000      \$12,000      \$35,000

  MEA035     WXMEA035-A   2           Wichita                                   1,094,213      7,800       \$7,800       \$23,000

  MEA036     WXMEA036-A   2           Tulsa                                     1,259,636      9,000       \$9,000       \$27,000

  MEA037     WXMEA037-A   2           Oklahoma City                             1,695,572      12,000      \$12,000      \$36,000

  MEA038     WXMEA038-A   2           San Antonio                               2,944,684      21,000      \$21,000      \$63,000

  MEA039     WXMEA039-A   2           El Paso-Albuquerque                       2,114,287      15,000      \$15,000      \$45,000

  MEA040     WXMEA040-A   2           Phoenix                                   3,458,935      25,000      \$25,000      \$74,000

  MEA041     WXMEA041-A   2           Spokane-Billings                          1,727,716      12,000      \$12,000      \$37,000

  MEA042     WXMEA042-A   2           Salt Lake City                            2,444,454      17,000      \$17,000      \$52,000

  MEA043     WXMEA043-A   2           San Francisco-Oakland-San Jose            11,956,167     85,000      \$85,000      \$256,000

  MEA044     WXMEA044-A   2           Los Angeles-San Diego                     19,333,536     138,000     \$138,000     \$415,000

  MEA045     WXMEA045-A   2           Portland                                  2,999,719      21,000      \$21,000      \$64,000

  MEA046     WXMEA046-A   2           Seattle                                   3,990,811      29,000      \$29,000      \$86,000

  MEA047     WXMEA047-A   2           Alaska                                    550,043        3,900       \$3,900       \$12,000

  MEA048     WXMEA048-A   2           Hawaii                                    1,108,229      7,900       \$7,900       \$24,000

  MEA049     WXMEA049-A   2           Guam and the Northern Mariana Islands     176,000        2,500       \$2,500       \$3,800

  MEA050     WXMEA050-A   2           Puerto Rico and U.S. Virgin Islands       3,623,846      26,000      \$26,000      \$78,000

  MEA051     WXMEA051-A   2           American Samoa                            47,000         2,500       \$2,500       \$2,500

  MEA052     WXMEA052-A   2           Gulf of Mexico                            0              2,500       \$2,500       \$2,500

                                                                                                                         

  **Major    **License    **License   **Description**                           **Population   **Bidding   **Upfront     **Minimum
  Economic   Numbers**    Bandwidth                                             (1990)**       Units**     Payment**     Opening Bid**
  Area**                  (MHz)**                                                                                        

  MEA001     WXMEA001-B   4           Boston                                    8,672,944      124,000     \$124,000     \$372,000

  MEA002     WXMEA002-B   4           New York City                             29,027,017     415,000     \$415,000     \$1,245,000

  MEA003     WXMEA003-B   4           Buffalo                                   1,529,735      22,000      \$22,000      \$66,000

  MEA004     WXMEA004-B   4           Philadelphia                              7,942,319      114,000     \$114,000     \$341,000

  MEA005     WXMEA005-B   4           Washington                                7,745,433      111,000     \$111,000     \$332,000

  MEA006     WXMEA006-B   4           Richmond                                  3,897,805      56,000      \$56,000      \$167,000

  MEA007     WXMEA007-B   4           Charlotte-Greensboro-Greenville-Raleigh   9,825,342      140,000     \$140,000     \$421,000

  MEA008     WXMEA008-B   4           Atlanta                                   7,341,931      105,000     \$105,000     \$315,000

  MEA009     WXMEA009-B   4           Jacksonville                              2,168,038      31,000      \$31,000      \$93,000

  MEA010     WXMEA010-B   4           Tampa-St. Petersburg-Orlando              5,528,763      79,000      \$79,000      \$237,000

  MEA011     WXMEA011-B   4           Miami                                     5,025,606      72,000      \$72,000      \$216,000

  MEA012     WXMEA012-B   4           Pittsburgh                                4,148,373      59,000      \$59,000      \$178,000

  MEA013     WXMEA013-B   4           Cincinnati-Dayton                         4,325,459      62,000      \$62,000      \$186,000

  MEA014     WXMEA014-B   4           Columbus                                  2,100,613      30,000      \$30,000      \$90,000

  MEA015     WXMEA015-B   4           Cleveland                                 5,077,339      73,000      \$73,000      \$218,000

  MEA016     WXMEA016-B   4           Detroit                                   10,041,377     144,000     \$144,000     \$431,000

  MEA017     WXMEA017-B   4           Milwaukee                                 4,634,011      66,000      \$66,000      \$199,000

  MEA018     WXMEA018-B   4           Chicago                                   12,495,510     179,000     \$179,000     \$536,000

  MEA019     WXMEA019-B   4           Indianapolis                              2,753,182      39,000      \$39,000      \$118,000

  MEA020     WXMEA020-B   4           Minneapolis-St. Paul                      6,018,051      86,000      \$86,000      \$258,000

  MEA021     WXMEA021-B   4           Des Moines-Quad Cities                    2,733,385      39,000      \$39,000      \$117,000

  MEA022     WXMEA022-B   4           Knoxville                                 1,364,665      20,000      \$20,000      \$59,000

  MEA023     WXMEA023-B   4           Louisville-Lexington-Evansville           4,059,317      58,000      \$58,000      \$174,000

  MEA024     WXMEA024-B   4           Birmingham                                3,082,737      44,000      \$44,000      \$132,000

  MEA025     WXMEA025-B   4           Nashville                                 2,002,283      29,000      \$29,000      \$86,000

  MEA026     WXMEA026-B   4           Memphis-Jackson                           3,850,949      55,000      \$55,000      \$165,000

  MEA027     WXMEA027-B   4           New Orleans-Baton Rouge                   4,310,367      62,000      \$62,000      \$185,000

  MEA028     WXMEA028-B   4           Little Rock                               2,309,255      33,000      \$33,000      \$99,000

  MEA029     WXMEA029-B   4           Kansas City                               2,903,432      42,000      \$42,000      \$125,000

  MEA030     WXMEA030-B   4           St. Louis                                 4,436,804      63,000      \$63,000      \$190,000

  MEA031     WXMEA031-B   4           Houston                                   5,513,511      79,000      \$79,000      \$237,000

  MEA032     WXMEA032-B   4           Dallas-Fort Worth                         9,575,762      137,000     \$137,000     \$411,000

  MEA033     WXMEA033-B   4           Denver                                    3,952,116      57,000      \$57,000      \$170,000

  MEA034     WXMEA034-B   4           Omaha                                     1,638,440      23,000      \$23,000      \$70,000

  MEA035     WXMEA035-B   4           Wichita                                   1,094,213      16,000      \$16,000      \$47,000

  MEA036     WXMEA036-B   4           Tulsa                                     1,259,636      18,000      \$18,000      \$54,000

  MEA037     WXMEA037-B   4           Oklahoma City                             1,695,572      24,000      \$24,000      \$73,000

  MEA038     WXMEA038-B   4           San Antonio                               2,944,684      42,000      \$42,000      \$126,000

  MEA039     WXMEA039-B   4           El Paso-Albuquerque                       2,114,287      30,000      \$30,000      \$91,000

  MEA040     WXMEA040-B   4           Phoenix                                   3,458,935      49,000      \$49,000      \$148,000

  MEA041     WXMEA041-B   4           Spokane-Billings                          1,727,716      25,000      \$25,000      \$74,000

  MEA042     WXMEA042-B   4           Salt Lake City                            2,444,454      35,000      \$35,000      \$105,000

  MEA043     WXMEA043-B   4           San Francisco-Oakland-San Jose            11,956,167     171,000     \$171,000     \$513,000

  MEA044     WXMEA044-B   4           Los Angeles-San Diego                     19,333,536     276,000     \$276,000     \$829,000

  MEA045     WXMEA045-B   4           Portland                                  2,999,719      43,000      \$43,000      \$129,000

  MEA046     WXMEA046-B   4           Seattle                                   3,990,811      57,000      \$57,000      \$171,000

  MEA047     WXMEA047-B   4           Alaska                                    550,043        7,900       \$7,900       \$24,000

  MEA048     WXMEA048-B   4           Hawaii                                    1,108,229      16,000      \$16,000      \$48,000

  MEA049     WXMEA049-B   4           Guam and the Northern Mariana Islands     176,000        2,500       \$2,500       \$7,500

  MEA050     WXMEA050-B   4           Puerto Rico and U.S. Virgin Islands       3,623,846      52,000      \$52,000      \$155,000

  MEA051     WXMEA051-B   4           American Samoa                            47,000         2,500       \$2,500       \$2,500

  MEA052     WXMEA052-B   4           Gulf of Mexico                            0              2,500       \$2,500       \$2,500

                                                                                                                         

                                      A-Block Subtotal                                         1,811,900   \$1,811,900   \$5,419,800

                                      B-Block Subtotal                                         3,617,400   \$3,617,400   \$10,838,500

                                                                                                                         

                                                                                Total          5,429,300   \$5,429,300   \$16,258,300
  ---------- ------------ ----------- ----------------------------------------- -------------- ----------- ------------- --------------

#  Attachment B

FCC AUCTION SEMINAR REGISTRATION FORM

Auction No. 33

The FCC will sponsor a one-day seminar for the 700 MHz Guard Band
Auction applicants. The seminar is free of charge and will provide
information about pre-auction procedures, radio service and auction
rules, conduct of the auction, and the FCC remote bidding software.

Representatives from each company can make reservations to attend on a
first-come, first-served basis 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:

**Thursday, April 27, 2000**

**Federal Communications Commission**

**445 12^th^ Street S.W.**

#### Washington, DC 20554 {#washington-dc-20554 .unnumbered}

**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 by mail or fax to be received no later than**

**Tuesday, April 25, 2000,** to:

FCC Auction 33

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. 33 Seminar, scheduled for **Thursday,
April 27, 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 the Commission\'s remote access system. This 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 Tuesday, May 9, 2000.**
Late applications or unconfirmed submissions of electronic data will not
be accepted.

Applicants must press the **175 Submit** 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: v.32bis 14.4kbps 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

-   PPP (Point-to-Point Protocol) Dialer: Use the Dial-Up Networking
    feature included with Windows 95/98

-   Web Browser: Netscape Communicator 4.7 is recommended. However, you
    can also use Netscape Communicator 4.5, 4.51, or 4.61 (Internet web
    browser software).

> **Note:** To download Netscape Communicator 4.7 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

To submit FCC Form 175 applications electronically, you must first
connect to the FCC Network via a toll-free phone number (877-844-2788)
using Dial-Up Networking. Dial-Up Networking establishes a
point‑to‑point connection from your PC to the FCC Network. *This
point‑to‑point connection is not routed through the Internet*.

> **Note:** For instructions on how to connect to the FCC Network using
> Dial-Up Networking, see the *Accessing the FCC Network Using Windows
> 95/98* attachment.

After you have connected to the FCC Network, start your Netscape Web
browser. In your browser's *Location* field, enter
***http://wtbwww34.fcc.gov*** and then click **175 Submit**.

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.

After you upload an attachment, 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. 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 disconnect from the
FCC Network.

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 8 a.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**

**A. 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.

**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 each geographic
area (\"Market\") and each of these licenses must be selected
individually (i.e., selecting channel block A in market MEA001 does not
make you eligible to bid on channel block B in market MEA001). 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 contact 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).

**B. 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 in several attachments 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) 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:

**1. 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 and

Corporation 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

**2. Ownership Information**

***Applicant Status Required Information***

All applicants Name, citizenship, and address of all controlling
interests of the applicant as defined in Part II.C.1 of this public
notice.

All applicants Name, citizenship, and address of all parties holding 10
percent

or more of any 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 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.1 of this public
    notice) of the applicant owns a 10 percent or greater interest or 10
    percent or more of any class of stock, warrants, options or debt
    securities. (*See also* 47 C.F.R. §§ 27.502 and 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 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 Form 175 Exhibit A and provide the required

information.

*Example of c.* 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 A and Company B on its

Form 175 Exhibit A and provide the required information.

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.* 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 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 A\'s interest in the
> applicant need not be reported. However, if A owned 40% of Company B
> in the above example, then 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.

**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). Note that applicants that are
nationwide bidders may not be parties to such agreements. *See* Section
IV.B.7, above.

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 deadline for licenses won, when such
communications concern bids, bidding strategies, or settlements.* 47
C.F.R. § 1.2105(c).

**Exhibit C - 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 Required Information***

Applicant Average gross revenues for the preceding three years set forth
*both separately* (*e.g.*, for each of the three preceding three years
individually) *and in the aggregate* (for all of the preceding three
years combined). Certification that the average gross revenues for the
preceding three years do not exceed the required limit, or providing
average gross revenues for the 3-year period without providing the gross
revenues for each of the preceding three years, is insufficient.

Applicant\'s Affiliates

*see* 47 CFR § 27.502 same information required as discussed above

Applicant\'s

Controlling Interests

*See* Part II.C.1, *above*.

*See also* 47 CFR § 1.2110. same information required as discussed above

> *Example.* The applicant had gross revenues of \$500,000 in 1997,
> \$1,000,000 in 1998, and \$3,000,000 in 1999, with average gross
> revenues for that time period of \$1,500,000. The applicant owns 60%
> of Company A, making Company A an affiliate of the applicant under
> Section 1.2110(b)(4)(i)(B), and Company B owns 52% of the applicant
> (making Company B a controlling interest of the applicant, as defined
> in Part II.C.1 of this public notice. The applicant\'s Exhibit C would
> look like this:

Applicant Name

1997 gross revenues \$ 500,000

1998 gross revenues \$ 1,000,000 1999 gross revenues \$ 3,000,000

Average gross revenues

for the preceding 3 years \$ 1,500,000

Company A (an affiliate of the applicant)

1997 gross revenues \$ enter amount

1998 gross revenues \$ enter amount

1999 gross revenues \$ enter amount

Average gross revenues

for the preceding 3 years \$ enter amount

Company B (a controlling interest in the applicant)

1997 gross revenues \$ enter amount

1998 gross revenues \$ enter amount

1999 gross revenues \$ enter amount

Average gross revenues

for the preceding 3 years \$ enter amount

**TOTAL: combined average gross revenues for the preceding three years
of the applicant, the applicant\'s affiliates and their controlling
interests**

**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 D - Information Requested of Designated Entities:** Applicants
owned by minorities or women, as defined in 47 C.F.R. § 1.2110(b), 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 E - Miscellaneous Information**: Applicants wishing to submit
additional information should include it in Exhibit E.

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 Amy
Zoslov, Chief, Auctions and Industry Analysis Division, Wireless
Telecommunications Bureau, Federal Communications Commission, 445 12^th^
Street, S.W., Room 4-A760, Washington, D.C. 20554 (with a separate copy
mailed to Howard Davenport, Legal Branch, Auctions and Industry Analysis
Division), in which case the applicant must indicate in Exhibit E 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.

# Attachment E

**AUCTION-SPECIFIC INSTRUCTIONS FOR**

**FCC REMITTANCE ADVICE (FCC FORM 159)**

**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. 33. 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 \"358405\"
>
> 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 \"A33U\"
>
> 21A Quantity - Enter the number \"1\"
>
> 22A Amount Due - Enter the total upfront payment due.
>
> 23A FCC Code 1 - Enter the number \"33\" (indicating Auction No. 33).
>
> 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. 33**

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

Qualified bidders are permitted to bid electronically or telephonically.
Each bidder choosing to bid electronically must purchase their own 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 #33.) For security purposes, the software is only mailed to the
contact person at the contract 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 5:30 p.m. ET on
**Tuesday, May 30, 2000.**

FCC BIDDING PREFERENCE (Auction No. 33)

[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 Only (no
money is due and no software will be sent)

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 an 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 (the high bid multiplied by
variable variable I~i+1~ from above). 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.

**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

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

2\. Minimum bid increment for round 2 using the percentage increment

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

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

2\. Minimum bid increment for round 3 using the percentage increment

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

I~4~ = The smaller of (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

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 USING**

**WINDOWS 95/98**

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. Dial-up access to the FCC Network
is required to submit FCC Form 175 applications electronically or use
the FCC Remote Access System.

> **Note:** Dial-up access to the FCC Network is ***not*** required to
> review FCC Form 175 applications. You can perform that function from
> the Internet, by entering location ***http://wtbwww15.fcc.gov/*** on
> your Netscape Web browser and clicking the **175 Review** button.

**[Conventions]{.underline}**

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://wtbwww03.fcc.gov***, you should type all of the
characters shown in bold italic exactly as they are printed.

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

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

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\. If you are connecting to submit FCC Form 175 applications, type
***FCC Auctions 877#*** in the field titled *Type a name for the
computer you are dialing.*

> If you are connecting to use the FCC Remote Access System, type ***FCC
> Auctions 900#*** in the field titled *Type a name for the computer you
> are dialing.*
>
> **Note**: If you connect to the FCC's 900# telephone service, there is
> a charge of \$2.30 per minute. The first minute of connection time to
> the 900 number service is at no charge.

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.  If you are connecting to submit FCC Form 175 applications, type
    ***877*** and ***844-2788*** in the *Area Code* and *Telephone
    Number* fields, respectively.

> If you are connecting to use the FCC Remote Access System, type
> ***900*** and ***555-5554*** in the *Area Code* and *Telephone Number*
> fields, respectively.

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 either *FCC Auctions 877#* or *FCC Auctions 900#*
> 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 FCC Auctions icon that you
wish to configure 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 ***165.135.79.95*** as the Primary 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.
>
> e\. Select *Enable DNS*. Type ***bidder*** in the *Host* box, type
> ***fcc.gov*** in the *Domain* box, then type ***165.135.79.95*** in
> the DNS Server Search Order box and click the **Add** button.

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

g.  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
877#** or **FCC Auctions 900#** icon.

> **Note**: If you connect to the FCC's 900 number telephone service,
> there is a charge of \$2.30 per minute. The first minute of connection
> time to the 900 number service is at no charge.

3\. Click the **Connect** button on the window. *[Do not enter User name
and 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 below.

4\. Once the connection is established, open your Web browser.

5\. In your browser's *Location* field, enter the appropriate Universal
Resource Locator (URL) as follows:

-   For FCC Form 175 Submit, enter ***http://wtbwww34.fcc.gov***
    (primary location) or ***http://wtbwww04.fcc.gov*** (secondary
    location)

-   For the FCC Remote Access System, enter
    ***http://wtbwww26.fcc.gov*** (primary location) or
    ***http://wtbwww03.fcc.gov*** (secondary location)

    If nothing appears in your Web browser, please see the
    *Troubleshooting* section below.

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

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\. If you are dialing the 900 number service, check for a 900 number
telephone block. If the volume settings are low, the modem may be
dialing but not connecting. Check for this by trying to connect to the
877 number, or by dialing the 900 number on that line using a telephone.

4\. Confirm that the correct modem driver is installed for your modem.

***Modem dials but does not connect***

1\. If you are dialing the 900 number service, check for a 900 number
telephone block. Check for this by dialing the 877 number to see if you
connect, or by dialing the 900 number on that line using a telephone.

2\. Confirm that the number the modem is dialing is correct.

3.  Confirm that the modem prefix, if any, is correct.

***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 correct.

2.  Confirm that *Java* and *JavaScript* are enabled in your Web
    browser, and confirm that *Cookies* is set to Accept All.

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 8 a.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:]{.underline}**
>
> *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. 15374 (1996).
>
> In re Applications of Mercury PCS II, LLC, *Notice of Apparent
> Liability for Forfeiture,* 12 FCC Rcd. 17970 (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,* FCC 98‑41 (March 16, 1998).
>
> In re Application of Western PCS BTA I Corporation, *Notice of
> Apparent Liability for Forfeiture, FCC* 98‑42 (March 16, 1998).

**[Wreless Telecommunications Bureau Decisions:]{.underline}**

Amendment of Parts 21 and 74 of the Commission\'s Rules with Regard to
Filing Procedures in the Multipoint Distribution Service and in the
Instructional Television Fixed Service, *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. 18093
(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. 19627
(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:]{.underline}**

\"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. 10134 (1996).

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

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

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

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

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

*Letter to Jonathan D. Blake 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. 10895 (1996).

*Letter to David L. Nace from Kathleen O\'Brien Ham, Chief, Auctions
Division, Wireless Telecommunications Bureau,* 11 FCC Rcd. 11363 (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:]{.underline}**

*U.S. v. Omnipoint Corp.,* Proposed Final Judgements and Competitive
Impact Statements, Department of Justice, 63 FR 65228 (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:]{.underline}

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.

# ATTACHMENT J

Place holder for Attachment J, see Excel file.

[^1]: ^?^ *See* \"Auction of Licenses for the 700 MHz Guard Bands
    Scheduled for June 14, 2000; Comment Sought on Reserve Prices or
    Minimum Opening Bids and Other Auction Procedural Issues,\" *Public
    Notice*, DA 00-559 (rel. March 10, 2000) *(\"Auction No. 33 Comment
    Public Notice*\"), 65 Fed. Reg. 14561 (March 17, 2000).

[^2]: ^?^ Section 3002(a), Balanced Budget Act of 1997, Pub. L. 105-33,
    111 Stat. 251 (1997) (\"Budget Act\"); 47 U.S.C. §309(j)(4)(F). 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).

[^3]: *See* *Auction No. 33 Comment Public Notice* at 5-9.

[^4]: Comments were filed by American Mobile Telecommunications
    Association (AMTA); Industrial Telecommunications Association Inc.
    (ITA); Mobex Communications, Inc. (Mobex); and Motorola, Inc.
    (Motorola); Reply Comments were filed by American Mobile
    Telecommunications Association (AMTA); Industrial Telecommunications
    Association Inc. (ITA); Mobex Communications, Inc. (Mobex); MRFAC,
    Inc. (MRFAC) , and Personal Communications Industry Association,
    Inc. ("PCIA").

[^5]: ^?^ *See* 47 U.S.C. § 337(e). See Advanced Television Systems and
    Their Impact Upon Existing Television Broadcast Service, MM Docket
    No. 87-268, *Reconsideration of Fifth Report and Order*, 13 FCC Rcd
    6860, 6887 (1998).

[^6]: ^?^ *See* Section 337(a) of the Communications Act, 47 U.S.C. §
    337(a).

[^7]: ^?^ *See* Section 337(b)(2) of the Communications Act, 47 U.S.C. §
    337(b)(2)(a).

[^8]: ^?^ *See Consolidated Appropriations*, Appendix E, § 213. *See
    also* 145 Cong. Rec. H12493-94 (Nov. 17, 1999).

[^9]: *See* *700 MHz* Second *Report & Order,* at ¶¶ 104-105; *See also*
    Amendment of the Commission's Rules Regarding the 37.0-38.6 GHz and
    38.6-40.0 GHz Bands, ET Docket No. 95-183, *Report & Order and
    Second Notice of Proposed Rule Making,* 12 FCC Rcd 18600 at ¶ 144
    (1997) 62 Fed. Reg. 14015 (March 25, 1997) ("*Report & Order and
    Second NPRM"*); *See also* 47 C.F.R. § 1.2105(c).

[^10]: *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 11973, 11977, at ¶ 11 (1998) (\"*Nevada
    Wireless*\").

[^11]: *See Nevada Wireless*, 13 FCC Rcd at 11978.

[^12]: *See* 47 C.F.R. § 1.2105(c).

[^13]: *See* 47 C.F.R. § 1.65.

[^14]: *See* 47 U.S.C. 337(d)(4).

[^15]: *See* H.R. Conf. Rep. No. 105-217, 105^th^ Cong., 1^st^ Sess., at
    580 (1997) ("*Conference Report*").

[^16]: *See 700 MHz Second Report & Order,* at ¶¶14-18.

[^17]: *Id .at* ¶*19. See also* fn 34 *which states: "*Similar to the
    definition of a "Cellular System" found in Section 22.99 of our
    Rules, we define a cellular system architecture as one where large
    geographic service areas are segmented into many smaller areas or
    cells, each of which uses its own base station, to enable
    frequencies to be reused at relatively short distances".

[^18]: *Id.* at fn 262 which states in part: "In addition, fixed station
    operations in the 746-747 MHz and 762-764 MHz bands must comply with
    the relevant provisions for "base stations" in Section 90.309 of our
    Rules, and fixed station operations in the 776-777 MHz and 792-794
    MHz bands must comply with the relevant provisions for "control
    stations" in Section 90.309 of our Rules. 47 C.F.R. 90.309."

[^19]: *See 700 MHz First Report & Order,* at ¶ 145; *See* also 47
    U.S.C. §§ 336-337.

[^20]: *See 700 MHz Second Report & Order* at ¶ 111-113.

[^21]: *See 700 MHz First Report & Order,* at ¶ 145; *See also 700 MHz
    Second Report & Order* at ¶ 114*.*

[^22]: *See First 700 MHz Report & Order* at ¶ 146; *See also 700 MHz
    Second Report & Order* at ¶ 115.

[^23]: *Id.* at 146. Furthermore, both Canada and Mexico have been
    notified that the Commission has changed the allocation of these
    bands, and the Commission has discussed with them the possibility of
    mutually compatible spectrum use in all three countries.

[^24]: *See 700 MHz Second Report & Order* at ¶115. *See also 700 MHz
    First Report & Order* at ¶ 146, n. 336. There, the Commission stated
    that: "many agreements have used the geographic distance of 120 km
    from the border as the coordination or effected area. We will apply
    this criterion until agreements are reached.\"

[^25]: *See 700 MHz Second Report & Order* at ¶115.

[^26]: *See 700 MHz First Report & Order at.* at ¶ 146.

[^27]: *See 700 MHz First Report & Order* at ¶ 141. *See also* 47 C.F.R.
    § 90.545; *See also* Section I.B.3.

[^28]: *See* 47 C.F.R. §§ 90.309 and 90.545. The provisions of Section
    90.545 of our Rules have been incorporated into Section 27.60. *See*
    47 C.F.R. § 27.60. In addition, fixed station operations in the
    746-747 MHz and 762-764 MHz bands must comply with the relevant
    provisions for base stations in Section 90.309 of our Rules, and
    fixed station operations in the 776-777 MHz and 792-794 MHz bands
    must comply with the relevant provisions for control stations in
    Section 90.309 of our Rules.

[^29]: ^?^ Section 1.2105, in turn, requires the disclosure on the
    short-form of applicant ownership information as set forth in
    Section 1.2112.

[^30]: ^?^ *See* Section 1.B.2, above.

[^31]: ^?^ *See* 47 C.F.R. § 1.2105(c)(4)(i) & (ii).

[^32]: ^?^ *See* 47 C.F.R §§ 27.502.

[^33]: ^?^ For further guidance on the issue of control, see the
    Commission\'s affiliation rule at 47 C.F.R. § 1.2110(b)(4). *See
    also* Ellis Thompson Corp., 76 Rad. Reg. 2d (P & F) 1125, 1127-28
    (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, 24 Rad. Reg. (P & F) 983 (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).

[^34]: *See* 47 C.F.R. §§ 27.502 and 1.2105.

[^35]: *See* 47 C.F.R § 27.502.

[^36]: *See* 47 C.F.R. §27.502 and 1.2110(e)(iii).

[^37]: *See* 47 C.F.R. § 27.502 and 1.2110(e)(ii).

[^38]: *See* 47 C.F.R. § 27.502.

[^39]: All short-form applications must be filed electronically. *See*
    47 C.F.R. § 1.2105(a).

[^40]: ^?^ *See* Section II.E.

[^41]: *See* 47 C.F.R. § 1.2105. *See also* Two Way Radio of Carolina,
    Inc., *Memorandum, Opinion and Order*, FCC 99-189 (rel. July 22,
    1999).

[^42]: 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); *See also 700 MHz First Report & Order,* at
    ¶ 149.

[^43]: *See Auction No. 33 Comment Public Notice* at 2-3.

[^44]: ^?^ *See* Comments of Motorola at 2.

[^45]: ^?^ *Id.*

[^46]: ^?^ *Id. at 5.*

[^47]: ^?^ *Id.*

[^48]: ^?^ *See* Comments of AMTA at 8.

[^49]: ^?^ *Id.* at 3-4.

[^50]: ^?^ *Id.* at 4-8.

[^51]: ^?^ *See* Reply Comments of AMTA at 3-4.

[^52]: ^?^ *Id.*

[^53]: ^?^ *See* Reply Comments of ITA at 2-3.

[^54]: ^?^ *See* Reply Comments of Mobex at 3.

[^55]: ^?^ *See* Reply Comment of MRFAC at 2.

[^56]: ^?^ *See* PCIA Reply Comments at 1-2.

[^57]: *Auction No. 33 Comment Public Notice* at 2.

[^58]: ^?^ *See* 47 C.F.R. § 27.604.

[^59]: *Id*. at 2-3.

[^60]: *Id*. at 4.

[^61]: *Auction No. 33 Comment Public Notice, supra,* at 3-4.

[^62]: *Auction No. 33 Comment Public Notice,* at 3-4.

[^63]: *Id*. at 9.

[^64]: ^?^ *Id.*

[^65]: *Id*. at 4-5.

[^66]: Budget Act, *see above* note 2.

[^67]: *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. at 141, 455-456 (1998) (\"*Part 1 Third Report and Order*\").

[^68]: *Id*.

[^69]: *Id*.

[^70]: *Auction No. 33 Comment Public Notice* at 5-6.

[^71]: ^?^ *See* Comments of AMTA at 2.

[^72]: ^?^ *Id.* at 3.

[^73]: ^?^ *Id.* at 4.

[^74]: ^?^ *Id.* at 5,8.

[^75]: ^?^ *See* ITA Comments at 2.

[^76]: ^?^ *Id.* at 3.

[^77]: ^?^ *See* Mobex Comments at 1-2.

[^78]: ^?^ *Id.* at 3-9.

[^79]: ^?^ *See* Motorola Comments at 1-4.

[^80]: ^?^ *Id.* at 2.

[^81]: ^?^ *Id.* at 4-6.

[^82]: ^?^ *See* Reply Comments of AMTA at 1.

[^83]: ^?^ *Id.* at 3.

[^84]: ^?^ *See* ITA Reply Comments at 2.

[^85]: ^?^ *Id.*

[^86]: ^?^ *See* Mobex Reply Comments at 3.

[^87]: ^?^ *Id.* at 4.

[^88]: ^?^ *See* MRFAC Reply Comments at 1.

[^89]: *Auction No. 33 Comment Public Notice* at 6-8.

[^90]: ^?^ *Id*.

[^91]: *Auction No. 33 Comment Public Notice* at 8.

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

[^93]: *See*, *e.g.*, "Phase II 220 MHz Service Auction Closes, Winning
    Bidders in the Auction of 908 Phase II 220 MHz," *Public Notice*, 14
    FCC Rcd 605 (1998).

[^94]: ^?^ *See* Attachment I.