**DA 04-2086**

**July 13, 2004**

**24 GHz SERVICE SPECTRUM AUCTION**

**3 Qualified Bidders**

**Report No. AUC-04-56-D (Auction No. 56)**

In this *Public Notice,* the Federal Communications Commission ("FCC" or
"Commission") identifies three applicants found to be qualified to bid
in the upcoming auction for 880 licenses in the 24 GHz Service
allocation in the 24.25-24.45 GHz and 25.05-25.25 GHz bands (24 GHz
band) ("Auction No. 56"). Auction No. 56 is scheduled to begin on
Wednesday, July 28, 2004. In addition, this *Public Notice* contains
bidding instructions and other important information regarding Auction
No. 56.

**Attachment A** lists each of the three qualified bidders, their
upfront payments, and maximum eligibility in bidding units.

**Attachment B** lists the licenses selected on each qualified bidder's
FCC Form 175.

**Attachment C** lists the applicants that submitted FCC Form 175
applications, but did not qualify to bid in this auction.

**Attachment D** describes how to participate in the mock auction.

**Attachment E** provides information on "How to Monitor the FCC
Auctions On-line," and round results file formats for use during the
auction.

In order to participate effectively in the auction, qualified bidders
should again familiarize themselves with the auction rules and other
information contained in the *Auction No. 56 Procedures Public Notice*
and subsequent public notices.[^1] This *Public Notice* and other
documents related to Auction No. 56 are available on the Commission's
auctions website, <http://wireless.fcc.gov/auctions/>. The following
information provides additional guidance.

***Registration.*** Qualified bidders have been automatically registered
for the auction. For security reasons, the Commission will confirm
registration through two separate mailings of registration materials.
Both mailings will be sent to the bidder's contact person at the contact
address identified in the bidder\'s FCC Form 175. Upon receipt of both
mailings, each bidder should be in possession of the following
information:

-   Bidder Identification Number

-   At least two SecurID cards

-   Bidding System User Manual

-   FCC Telephonic Bidding phone number

Qualified bidders are solely responsible for ensuring the security of
their computer systems, security of their registration materials, and
that only authorized bidders place bids on their behalf. The FCC assumes
no responsibility or liability for these matters.

WARNING: Any unauthorized entity accessing or tampering with an FCC or
other government computer will be prosecuted to the full extent of the
law.

Any qualified bidder listed in Attachment A of this *Public Notice* that
has not received both registration mailings **by noon on Wednesday, July
21, 2004**, must contact the Auctions Hotline directly at (717)
338-2888. Receipt of both registration mailings is critical to
participating in both the mock auction and the actual auction event, and
it is the responsibility of each qualified bidder to ensure that all
registration information has been received.

***Registration Material Replacement.*** Lost bidder identification
numbers or SecurID cards can be replaced only by appearing [in
person]{.underline} at the FCC Headquarters, located at 445 12^th^
Street, SW, Washington, DC. Only an authorized bidder, the contact
person or the 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 replacements.
Qualified bidders requiring replacements must call technical support
prior to arriving at the FCC.

If a bidder receives a damaged card(s), the bidder's contact person
should call Technical Support to request a replacement. Technical
Support will verify that the card is unusable, and a new card will be
sent by Federal Express along with a self-addressed stamped envelope for
returning the damaged card(s).

***Bidding.*** The Commission will conduct this auction over the
Internet, and telephonic bidding will be available as well. As a
contingency plan, bidders may also dial in to the FCC Wide Area Network.

Qualified bidders are permitted to bid telephonically or electronically.
In either case, **each authorized bidder** must have its own Remote
Security Access SecurID card, which the FCC will provide at no charge.
Each applicant with only one authorized bidder will be issued two
SecurID cards, while applicants with two or three authorized bidders
will be issued three cards. For security purposes, the SecurID cards and
the instructions for using them are only mailed to the contact person at
the contact address listed on the FCC Form 175. Please note that each
SecurID card is tailored to a specific auction. SecurID cards issued for
other auctions or obtained from a source other than the FCC will not
work for Auction No. 56. The telephonic bidding phone number will be
supplied in the first mailing along with the confidential bidder
identification number.

Please note that the SecurID cards can be recycled, and we encourage
bidders to return the cards to the FCC. We will provide pre-addressed
envelopes that bidders may use to return the cards once the auction is
over.

***Bidding Contingency Plan.*** Bidders should develop comprehensive
contingency plans that can be quickly implemented if bidders experience
difficulty participating in the auction. While the FCC will correct any
problems within Commission‑controlled facilities, bidders are solely
responsible for anticipating and overcoming problems such as bidder
technical failures, local telephone service interruptions, adverse local
weather conditions, unavailability of authorized bidders, or the loss or
breach of confidential security codes.

In their registration materials, all qualified bidders will be supplied
with a telephone number for telephonic bidding. Bidders choosing to bid
telephonically are required to use this telephone number to place bids.
Electronic bidders may use this telephone number as an alternate method
of bidding in the event they are unable to submit their bids
electronically. **Telephonic bidders are reminded to allow sufficient
time to bid by placing their calls well in advance of the close of a
round.**

***Minimum Opening Bids.*** There will be a minimum opening bid for each
license in Auction No. 56, calculated in accordance with the formulas
previously announced.[^2] The minimum opening bid amount is subject to
reduction at the discretion of the Commission. However, bidders should
be aware that the Commission will not entertain requests to lower
minimum opening bids. The agency will exercise its discretion, if at
all, independent of any communications from bidders.

***Messages and Announcements.*** The FCC will post pertinent auction
information as messages and announcements. Bidders should routinely
check for messages and announcements each time they enter the FCC
Automated Auction System, and should read this information carefully.

***Bidding Schedule.*** The bidding schedule for Wednesday, July 28,
2004, and continuing until further notice, will be:

[]{.mark}

Bidding Period 9:00 a.m. - 10:00 a.m. ET

Bidding Period 11:00 a.m. - 12:00 p.m. ET

Bidding Period 1:30 p.m. - 2:30 p.m. ET

Bidding Period 3:30 p.m. - 4:30 p.m. ET

Round results will be provided approximately 10 minutes after the close
of each round. The FCC will set the pace of the auction based upon its
monitoring of the bidding and its assessment of the auction\'s progress.
All subsequent schedule changes will be made by announcement during the
course of the auction.

***Bidder Questions during the Auction.*** FCC auction officials and
Technical Support staff will be available during the course of the
auction to answer questions from authorized bidders. Bidders should
identify themselves as a bidder with time sensitive auction questions
when calling any number. Help can be obtained through the following
telephone numbers:

+-----------------------------------+-----------------------------------+
| FCC Bidder Line                   | Use telephonic bid number         |
|                                   | supplied in registration mailing  |
| (telephonic bidding, auction      |                                   |
| conduct questions)                |                                   |
+-----------------------------------+-----------------------------------+
| FCC Technical Support Hotline     | \(202\) 414-1250                  |
|                                   |                                   |
| (all technical questions,         |                                   |
| software and hardware)            |                                   |
+-----------------------------------+-----------------------------------+
| FCC Auctions and Spectrum Access  | \(202\) 418-0660                  |
| Division (legal questions)        |                                   |
+-----------------------------------+-----------------------------------+

***Monitoring Round Results.*** Attachment E (How to Monitor the FCC
Auctions On-Line) of this *Public Notice* provides instructions for
reviewing and downloading round results, as well as other material
related to Auction No. 56, that will be released by the Commission
during the course of the auction.

***Auction Tracking Tool (ATT).*** The FCC has developed a tool for
tracking the results of its auctions. The ATT is a stand-alone
application that runs on Windows 95, 98, 2000, ME, NT, and XP operating
systems. It does not require any other software, although some advanced
features require Microsoft Excel. The tool will allow users to import
round result files and analyze bidding results after each round of the
auction. For installation and user instructions, see the README file,
the ATT User Manual, or the on-line help system that accompanies the
ATT.

The ATT version specifically designed for Auction No. 56 is available
for downloading and should be used for both the mock auction and the
actual auction. The ATT is located at the auctions web site,
<http://wireless.fcc.gov/auctions/>. From the options on the left,
select **Tracking Tools**.

The ATT, provided to bidders free of charge, is an additional means of
analyzing the auction round results. Bidders should have a back up
strategy in place, which may be quickly implemented, should they
experience technical difficulties with the ATT.

**User Requirements.** This software is designed to be used by a wide
range of users. For most effective use of the tool, users should be
familiar with:

-   Microsoft Windows 95, 98, NT, 2000, ME or XP

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-   Microsoft Excel 97 or higher

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-   The FCC simultaneous multiple-round auction format

***Amendments to FCC Form 175s.*** Applicants are responsible for
maintaining the accuracy and completeness of information furnished in
their FCC Form 175 and exhibits.[^3] Applicants should amend their
applications within ten business days from the occurrence of a
reportable change. Filers should make modifications to their FCC Form
175 electronically and submit a letter, briefly summarizing the changes,
by electronic mail to the attention of Margaret Wiener, Chief, Auctions
and Spectrum Access Division, at the following address:
[auction56@fcc.gov](mailto:auction50@fcc.gov). A separate copy of the
letter should be faxed to Howard Davenport, Auctions and Spectrum Access
Division, (202) 418-1186. Questions about other changes should be
directed to Howard Davenport at (202) 418-0660.

As described in the Commission\'s rules, applicants may make only minor
corrections to their FCC Form 175 applications (*e.g*., authorized
bidder, fax number).[^4] Major modifications (*e.g.*, changing the
markets applied for, changing control of the applicant, changing the
certifying official) will not be accepted.[^5]

***Due Diligence.*** Potential bidders are reminded that there are a
number of incumbent 24 GHz Service licensees operating on 24.25-24.45
GHz and 25.05-25.25 GHz bands that are subject to the upcoming auction.
Incumbent licenses were originally granted in 1997 in 102 SMSAs.
Incumbent systems are entitled to protection as specified under Section
101.509 of the Commission\'s rules from co-channel interference by any
new entrant who obtains a 24 GHz EA license at the auction. We therefore
caution potential bidders in formulating their bidding strategies to
investigate and consider the extent to which 24 GHz channels are
occupied by incumbents. We note that the power flux density listed in
subparagraph (e) under Section 101.509 now reads \"-114\" instead of
\"-14.\"[^6]

Potential bidders are solely responsible for identifying associated
risks and for investigating and evaluating the degree to which such
matters may affect their ability to bid on, otherwise acquire, or make
use of licenses available in Auction No. 56.

Potential bidders also should be aware that certain applications
(including those for modification), petitions for rulemaking, requests
for special temporary authority, waiver requests, petitions to deny,
petitions for reconsideration, and applications for review may be
pending before the Commission and relate to particular applicants,
incumbent licensees, or the licenses available in Auction No. 56. In
addition, certain judicial proceedings that may relate to particular
applicants or incumbent licensees, or the licenses available in Auction
No. 56, may be commenced, or may be pending, or may be subject to
further review. We note that resolution of these matters could have an
impact on the availability of spectrum in Auction No. 56. In addition,
although the Commission will continue to act on pending applications,
requests and petitions, some of these matters may not be resolved by the
time of the auction.

**Potential bidders are solely responsible for identifying associated
risks and for investigating and evaluating the degree to which such
matters may affect their ability to bid on, otherwise acquire, or make
use of licenses available in Auction No. 56.** For further details
regarding due diligence, please refer to Section I.B.4 of the *Auction
No. 56 Procedures Public Notice*.[^7]

***Mock Auction*.** The FCC will conduct a mock auction on Friday, July
23, 2004, which will allow qualified bidders to familiarize themselves
with the FCC Automated Auction System. Only qualified bidders will be
permitted to participate in the mock auction. The Bureau will conduct
this auction over the Internet, and telephonic bidding will be available
as well. As a contingency plan, bidders may also dial in to the FCC Wide
Area Network. Qualified bidders that wish to place bids telephonically
should use the telephone number supplied in the Auction No. 56
registration materials.

The mock auction will include all Auction No. 56 licenses, and will
follow the rules governing the actual auction. **The mock auction will
be identified as Auction No. 74. The program will assume that each
bidder applied for all licenses. The program will reflect the actual
upfront payment submitted by the bidder, which will determine the
initial (maximum) eligibility (as measured in bidding units).** The mock
auction will simulate the start of the auction, and all bidders will be
required to be active on 80 percent of their current bidding
eligibility. A bidder not meeting this requirement will have a waiver
automatically applied (if the bidder has any waivers available), or its
current eligibility will be permanently reduced (if the bidder has no
waivers remaining), possibly eliminating the bidder from the auction.

Electronic bidders participating in the mock auction are advised to
review the Bidding System User Manual provided in the second mailing.
Attachment D to this *Public Notice* provides instructions for accessing
the FCC Mock Auction site.

The mock auction bidding schedule for Friday, July 23, 2004, will be:

Round 1 Bidding Period 9:00 a.m. - 10:00 a.m. ET

Round 2 Bidding Period 11:00 a.m. - 12:00 p.m. ET

Round 3 Bidding Period 1:00 p.m. - 1:30 p.m. ET

Round 4 Bidding Period 2:00 p.m. - 2:30 p.m. ET

Round 5 Bidding Period 3:00 p.m. - 3:15 p.m. ET

Round 6 Bidding Period 4:00 p.m. - 4:15 p.m. ET

**OTHER IMPORTANT INFORMATION**

**Prohibition of Collusion.** Applicants are reminded that Section
1.2105(c) of the Commission's rules prohibits applicants for licenses in
any of the same geographic license areas from communicating with each
other during the auction about bids, bidding strategies, or settlements
unless they have identified each other as parties with which they have
entered into agreements under Section 1.2105(a)(2)(viii).[^8] For
Auction No. 56, this prohibition became effective at the short-form
application filing deadline on Friday, June 4, 2004, and will end on the
post-auction down payment deadline, which will be announced in a future
public notice.[^9] **This prohibition applies to all applicants
regardless of whether such applicants become qualified bidders or
actually bid.**[^10] For purposes of this prohibition, Section
1.2105(c)(7)(i) defines applicant as including all controlling interests
in the entity submitting a short-form application to participate in the
auction, as well as all holders of partnership and other ownership
interests and any stock interest amounting to 10 percent or more of the
entity, or outstanding stock, or outstanding voting stock of the entity
submitting a short-form application, and all officers and directors of
that entity.[^11] If parties had agreed in principle on all material
terms of a bidding agreement(s), those parties must have been identified
on the short-form application under Section 1.2105(c), even if the
agreement had not been reduced to writing. If parties had not agreed in
principle by the filing deadline, an applicant should not have included
the names of those parties on its application, and must not have
continued negotiations with other applicants for licenses in the same
geographic areas.[^12]

The Bureau has encouraged applicants competing for licenses in any of
the same geographic license areas not to use the same individual as an
authorized bidder.[^13] A violation of the anti-collusion rule could
occur if an individual acts as the authorized bidder for two or more
competing applicants, and conveys information concerning the substance
of bids or bidding strategies between the bidders he or she is
authorized to represent in the auction. A violation could similarly
occur if the authorized bidders are different individuals employed by
the same organization (e.g., law firm or consulting firm). In such a
case, at a minimum, applicants should take precautionary steps to
prevent communication between authorized bidders.[^14]

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.[^15] Thus, Section 1.65 requires auction applicants
that engage in communications of bids or bidding strategies that result
in a bidding agreement, arrangement or understanding not already
identified on their short-form applications to promptly disclose any
such agreement, arrangement or understanding to the Commission by
amending their pending applications. In addition, Section 1.2105(c)(6)
requires all auction applicants to report prohibited discussions or
disclosures regarding bids or bidding strategy to the Commission in
writing immediately but in no case later than five business days after
the communication occurs, even if the communication does not result in
an agreement or understanding regarding bids or bidding strategy that
must be reported under Section 1.65.[^16]

Applicants that are winning bidders will be required to disclose in
their long-form applications the specific terms, conditions, and parties
involved in all bidding consortia, joint ventures, partnerships, and
other arrangements entered into relating to the competitive bidding
process. Any applicant found to have violated the anti-collusion rule
may be subject to sanctions.[^17] In addition, applicants are reminded
that they are subject to the antitrust laws, which are designed to
prevent anti-competitive behavior in the marketplace. If an applicant is
found to have violated the antitrust laws in connection with its
participation in the competitive bidding process, it may be subject to
forfeiture of its upfront payment, down payment, or full bid amount and
may be prohibited from participating in future auctions.[^18]

***Long-Form Applications.*** Applicants that claim status as a small
business should be aware that at the long-form application stage they
will be subject to more extensive reporting requirements contained in
the Commission\'s Part 1 ownership disclosure rule.[^19] In addition,
applicants with foreign ownership interests will be required to comply
with 47 U.S.C. Section 310(b) at the long-form application stage.

For additional information regarding this *Public Notice*, please
contact Barbara Sibert, Auctions Project Manager, at (717) 338-2888; Roy
Knowles, Auctions Analyst, at (717) 338-2888; or Howard Davenport,
Attorney Advisor, Auctions and Spectrum Access Division, at (202)
418-0660.

Technical questions about software or hardware should be directed to
Technical Support at (202) 414-1250 (V) or (202) 414-1255 (TTY).

**[- FCC -]{.smallcaps}**

![](media/image2.wmf){width="6.944444444444445e-4in"
height="6.944444444444445e-4in"}

[^1]: *See "*Auction of 24 GHz Service Licenses Scheduled for July 28,
    2004, Notice and Filing Requirements, Minimum Opening Bids, Upfront
    Payments, and Other Auction Procedures," *Public Notice,* 19 FCC
    Rcd. 4355 (2004) ("*Auction No. 56 Procedures Public Notice"*).

[^2]: *Auction No. 56 Procedures Public Notice*, 19 FCC Rcd. 4355, 4362
    (2004). Attachment A of the *Auction No. 56 Public Notice* sets
    forth the minimum opening bids for each license offered in Auction
    No. 56.

[^3]: 47 C.F.R § 1.65.

[^4]: 47 C.F.R. § 1.2105(b).

[^5]: *Id*.

[^6]: 47 C.F.R. § 101.509(e); *see also* 69 Fed Reg 25337 (May 6, 2004).

[^7]: *See Auction No. 56 Procedures Public Notice*, 19 FCC Rcd at
    4363-64.

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

[^9]: 47 C.F.R. § 1.2105(c)(1).

[^10]: *See, e.g.*, Letter to Robert Pettit, Esquire, from Margaret W.
    Wiener, Chief, Auctions and Industry Analysis Division, Wireless
    Telecommunications Bureau, Federal Communications Commission, 16 FCC
    Rcd 10080 (WTB 2000) (declining to except an applicant's controlling
    interest from coverage by the anti-collusion rule, even though the
    applicant never made an upfront payment for the auction and was not
    listed as a qualified bidder).

[^11]: 47 C.F.R. § 1.2105(c)(7)(i).

[^12]: *See* "Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules," *Public Notice*, 11 FCC Rcd 9645
    (1995).

[^13]: *See Auction No. 56 Procedures Public Notice,* 19 FCC Rcd at
    4361.

[^14]: *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 ¶ 11 (1998) ("*Nevada
    Wireless*"*)*.

[^15]: 47 C.F.R. § 1.65.

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

[^17]: *See* 47 C.F.R. §§ 1.2105(c), 1.2107(d), and 1.2109(d).

[^18]: 47 C.F.R. § 1.2109(d).

[^19]: 47 C.F.R. § 1.2112(b)(2).