DA 03-567

March 4, 2003

AUCTION OF LICENSES IN THE LOWER 700 MHz BAND

SCHEDULED FOR May 28, 2003

**Notice and Filing Requirements, Minimum Opening Bids,**

**Upfront Payments and Other Auction Procedures**

Report No. AUC-03-49-C (Auction No. 49)

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

A. Introduction [1](#introduction)

1\. Background of Proceeding [2](#background-of-proceeding)

2\. Licenses to Be Auctioned [3](#licenses-to-be-auctioned)

B. Rules and Disclaimers [4](#rules-and-disclaimers)

1\. Relevant Authority [4](#relevant-authority)

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

3\. Interference Protection of Television Services
[6](#interference-protection-of-television-services)

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

5\. Bidder Alerts [10](#bidder-alerts)

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

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

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

2\. Auction Title [12](#auction-title)

3\. Bidding Methodology [12](#bidding-methodology)

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

5\. Requirements For Participation [12](#requirements-for-participation)

6\. General Contact Information [14](#general-contact-information)

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

A. License Selection [15](#license-selection)

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

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

D. Eligibility [16](#eligibility)

1\. Bidding Credit Eligibility (FCC Form 175 Exhibit C)
[16](#bidding-credit-eligibility-fcc-form-175-exhibit-c)

2\. Tribal Land Bidding Credit [17](#tribal-land-bidding-credit)

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

4\. Supporting Documentation [18](#supporting-documentation)

E. Provisions Regarding Defaulters and Former Defaulters (FCC Form 175
Exhibit D)
[19](#provisions-regarding-defaulters-and-former-defaulters-fcc-form-175-exhibit-d)

F. Installment Payments [19](#installment-payments)

G. Other Information (FCC Form 175 Exhibits E and F)
[20](#other-information-fcc-form-175-exhibits-e-and-f)

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

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

III\. PRE-AUCTION PROCEDURES [20](#pre-auction-procedures)

A. Auction Seminar [20](#auction-seminar)

B. Short-Form Application (FCC Form 175) --- Due April 11, 2003
[21](#short-form-application-fcc-form-175-due-april-11-2003)

1\. Electronic Filing [21](#electronic-filing)

2\. Completion of the FCC Form 175 [21](#completion-of-the-fcc-form-175)

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

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

D. Upfront Payments --- Due May 2, 2003
[22](#upfront-payments-due-may-2-2003)

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

2\. FCC Form 159 [23](#fcc-form-159)

3\. Amount of Upfront Payment [23](#amount-of-upfront-payment)

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

E. Auction Registration [25](#auction-registration)

F. Remote Electronic Bidding [26](#remote-electronic-bidding)

G. Mock Auction [26](#mock-auction)

IV\. AUCTION EVENT [26](#auction-event)

A. Auction Structure [27](#auction-structure)

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

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

3\. Auction Stages [29](#auction-stages)

4\. Stage Transitions [30](#stage-transitions)

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

6\. Auction Stopping Rules [32](#auction-stopping-rules)

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

B. Bidding Procedures [33](#bidding-procedures)

1\. Round Structure [33](#round-structure)

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

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

4\. High Bids [36](#high-bids)

5\. Bidding [36](#bidding)

6\. Bid Removal and Bid Withdrawal [37](#bid-removal-and-bid-withdrawal)

7\. Round Results [39](#round-results)

8\. Auction Announcements [39](#auction-announcements)

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

V. POST-AUCTION PROCEDURES [40](#post-auction-procedures)

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

B. Auction Discount Voucher [40](#auction-discount-voucher)

C. Long-Form Application (FCC Form 601)
[41](#long-form-application-fcc-form-601)

D. Ownership Disclosure Information Report (FCC Form 602)
[41](#ownership-disclosure-information-report-fcc-form-602)

E. Tribal Land Bidding Credit [41](#tribal-land-bidding-credit-1)

F. Default and Disqualification [42](#default-and-disqualification)

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

VI\. Attachment A: Licenses to be Auctioned A-[1](#attachment-a)

VII\. Attachment B: FCC Auction Seminar Registration Form
B-[1](#attachment-b)

VIII\. Attachment C: Electronic Filing and Review of the FCC Form 175
C-[1](#attachment-c)

IX\. Attachment D: Guidelines for Completion of FCC Form 175 and
Exhibits D-[1](#attachment-d)

X. Attachment E: Auction-Specific Instructions for FCC Remittance Advice
(FCC Form 159 - February 2000 Edition) E-[1](#attachment-e)

XI\. Attachment F: Minimum Acceptable Bids, Bid Increments, and the
Smoothing Formula F-[1](#attachment-f)

XII\. Attachment G: Summary Listing of Documents from the Commission and
the Wireless Telecommunications Bureau Addressing Application of the
Anti-Collusion Rules G-[1](#attachment-g)

# General Information

## Introduction

By this Public Notice, the Wireless Telecommunications Bureau ("Bureau")
announces the procedures and minimum opening bids for the upcoming
auction of licenses in the Lower 700 MHz C and D blocks, (the
710-716/740-746 MHz and 716-722 MHz bands) scheduled for May 28, 2003
(Auction No. 49).[^1] On December 2, 2002, in accordance with the
Balanced Budget Act of 1997,[^2] the Bureau released a public notice
seeking comment on reserve prices or minimum opening bids and the
procedures to be used for the auction of 251 licenses in the Lower 700
MHz band C block.[^3] The Bureau received five comments[^4] and five
reply comments[^5] in response to the *Auction No. 49 Comment Public
Notice.* On January 29, 2003, the Bureau released a public notice
announcing a revised auction inventory to include five licenses in the
Lower 700 MHz band D block.[^6] In the *Auction No.49 Revised Comment
Public Notice*, the Bureau sought comment on the procedural issues
related to the auction of the D block licenses.[^7] In the *Auction No.
49 Revised Comment Public Notice*, the Bureau also revised the starting
date for Auction No. 49.[^8] The Bureau received two comments[^9] and
two reply comments[^10] in response to the *Auction No. 49 Revised
Comment Public Notice*.[^11]

### Background of Proceeding 

On January 18, 2002, the Commission released the *Lower 700 MHz Report &
Order* which adopted allocation and service rules for the Lower 700 MHz
Band.[^12] Specifically, the Commission reallocated the entire 48
megahertz of spectrum in the Lower 700 MHz band to fixed and mobile
services and retained the existing broadcast allocation for both new
broadcast services and incumbent broadcast services during their
transition to digital television ("DTV").[^13] The Commission
established technical criteria designed to protect incumbent television
operations in the band during the DTV transition period, allowed low
power television ("LPTV") and TV translator stations to retain secondary
status and operate in the band after the transition, and set forth a
mechanism by which pending broadcast applications may be amended to
provide analog or digital service in the core television spectrum or to
provide digital service on TV Channels 52- 58.[^14]

In its service rules, the Commission divided the Lower 700 MHz band into
three 12-megahertz blocks, with each block consisting of a pair of 6-
megahertz segments, and two 6-megahertz blocks of contiguous, unpaired
spectrum. The Commission decided to divide the five blocks in the Lower
700 MHz band plan as follows: the two 6-megahertz blocks of contiguous
unpaired spectrum, as well as two of the three 12-megahertz blocks of
paired spectrum, were assigned over six Economic Area Groupings
("EAGs"); the remaining 12 megahertz block of paired spectrum was
assigned over 734 Metropolitan Statistical Areas ("MSAs") and Rural
Service Areas ("RSAs").[^15] All operations in the Lower 700 MHz band
are generally regulated under the framework of Part 27's technical,
licensing, and operating rules.[^16] To permit both wireless services
and certain new broadcast operations in the Lower 700 MHz band, however,
the Commission has amended the maximum power limits in Part 27 to permit
50 kW effective radiated power ("ERP") transmissions in the Lower 700
MHz band, subject to certain conditions.[^17] Finally, the Commission
established competitive bidding procedures and voluntary band-clearing
mechanisms for the Lower 700 MHz band.[^18] On June 14, 2002, the
Commission affirmed its decisions in the *Lower 700 MHz Report and
Order*.[^19]

With respect to the MSA and RSA licenses, the Bureau notes that MSAs and
RSAs are collectively known as Cellular Market Areas (CMAs). CMAs were
created from the Metropolitan Statistical Areas ("MSAs") defined by the
Office of Management and Budget (CMA001-CMA305), the Gulf of Mexico
(CMA306), and Rural Service Areas ("RSAs") established by the FCC
(CMA307-CMA734). These RSAs include parts of Puerto Rico not already in
an MSA (CMA723-CMA729), U.S. Virgin Islands (CMA730-CMA731), Guam
(CMA732), American Samoa (CMA733), and Northern Mariana Islands
(CMA734). The CMA designation, rather than MSA/RSA, is used in the FCC
Automated Auction System and in the Universal Licensing System.

### Licenses to Be Auctioned

Auction No. 49 will offer 256 licenses in the Lower 700 MHz band C block
(710-716/740-746 MHz) and D block (716-722 MHz).[^20] This auction will
include 251 C block and five D block licenses that remained unsold in
Auction No. 44, which closed on September 18, 2002.[^21] The C block is
a 12-megahertz block consisting of a pair of 6-megahertz segments, which
is licensed over various MSAs/RSAs. The D block is a 6-megahertz
unpaired spectrum block, which is licensed over five 700 MHz Economic
Area Groupings ("700 MHz EAGs"). A complete list of licenses available
in Auction No. 49 and their descriptions is included in Attachment A of
this Public Notice.

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

  --------------------- --------------------------- ------------------------- ----------------------- ------------------- -----------------------
  [Block]{.underline}   [Frequencies]{.underline}   [Bandwidth]{.underline}   [Pairing]{.underline}   [Geographic Area    [No. of
                                                                                                      Type]{.underline}   Licenses]{.underline}

  C                     710-716, 740-746            12 MHz                    2 x 6 MHz               MSA/RSA             251

  D                     716-722                     6 MHz                     unpaired                700 MHz EAG         5
  --------------------- --------------------------- ------------------------- ----------------------- ------------------- -----------------------

(*Note: For Auction No. 49, licenses are not available in every market
for the frequency blocks listed in the above table. See Attachment A to
determine which licenses will be offered*.)

## Rules and Disclaimers

### Relevant Authority 

Prospective bidders must familiarize themselves thoroughly with the
Commission's rules relating to the Lower 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. 49 Comment*
*Public Notices;* and the *Part 1 Fifth Report and Order* (as well as
prior and subsequent Commission proceedings regarding competitive
bidding procedures).[^22]

Auction participants bidding on licenses in the 698-746 MHz spectrum
band should also be familiar with the *Lower 700 MHz Notice of Proposed
Rulemaking*,[^23] the *Lower 700 MHz Report and Order*[^24] and the
*Lower 700 MHz MO&O*.[^25]

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 Auctions
Internet site at [http://wireless.fcc.gov/auctions]{.underline}.
Additionally, documents are available for public inspection and copying
during regular business hours at the FCC Reference Information Center,
Portals II, 445 12th Street, SW, Room CY-A257, Washington, DC, 20554, or
may be purchased from the Commission's duplicating contractor, Qualex
International, Portals II, 445 12th Street, SW, Room CY-B402,
Washington, DC 20554, telephone 202-863-2893, facsimile 202-863-2898, or
via e-mail qualexint@aol.com. When ordering documents from Qualex,
please provide the appropriate FCC document number (for example, FCC
01-364 for the *Lower 700 MHz Report and 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.[^26] This prohibition begins at the
short-form application filing deadline and ends at the down payment
deadline after the auction. Bidders competing for licenses in the same
geographic license areas are encouraged not to use the same individual
as an authorized bidder. A violation of the anti‑collusion rule could
occur if an individual acts as the authorized bidder for two or more
competing applicants and conveys information concerning the substance of
bids or bidding strategies between the bidders he or she is authorized
to represent in the auction. 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 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.[^27]

However, the Bureau cautions that merely filing a certifying statement
as part of an application will not outweigh specific evidence that
collusive behavior has occurred, nor will it preclude the initiation of
an investigation when warranted.[^28] The Commission's anti-collusion
rules allow applicants to form certain agreements during the auction,
provided the applicants have not applied for licenses covering the same
geographic areas. In Auction No. 49, for example, the rule would apply
to any applicants bidding for the same MSA/RSA or EAG. Furthermore, the
rule would apply to an applicant bidding for an EAG and another
applicant bidding for an MSA/RSA within that EAG.[^29] In addition,
applicants that apply to bid for all markets would be precluded from
communicating with all other applicants until after the down payment
deadline. However, all applicants may enter into bidding agreements
*before* filing their FCC Form 175, as long as they disclose the
existence of the agreement(s) in their Form 175.[^30] 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
pursuant to 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 licenses covering the same geographic areas.[^31] 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.[^32] Thus, Sections 1.65 and 1.2105 require an
auction applicant to notify the Commission of any violation of the
anti-collusion rules upon learning of such violation. Bidders therefore
are required to make such notification to the Commission immediately
upon discovery.[^33]

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

### Interference Protection of Television Services 

Among other licensing and technical rules, new Lower 700 MHz band
licensees must comply with the interference protection requirements set
forth in Section 27.60 of the Commission's rules.[^34] Generally,
Section 27.60 establishes standards for protection of co- and
adjacent-channel analog TV and DTV facilities. Thus, for example, a new
licensee seeking to operate on the D block (716-722 MHz) portion of the
Lower 700 MHz band must provide co-channel protection to nearby TV and
DTV operations on Channel 55 and adjacent-channel protection to stations
on Channels 54 and 56. New Lower 700 MHz band licensees should also be
aware that incumbent broadcasters may be permitted to make certain
changes to their authorized facilities.[^35] Such modified facilities
may be entitled to interference protection from new Lower 700 MHz band
licensees. In addition, Appendix D of the *Lower 700 MHz Report and
Order* describes additional adjacent-channel interference considerations
that are designed to mitigate the possibility of base-to-base
interference that may arise at base receive stations that are in close
proximity to high power transmitters operating on adjacent
channels.[^36] Moreover, licensees intending to operate a facility at a
power level of greater than 1 kilowatt must provide advance notice to
the Commission and to licensees authorized in their area of
operation.[^37] New Lower 700 MHz licensees also will have to comply
with any additional technical requirements or interference protection
requirements that may be adopted in the future as a result of pending
and future rulemaking proceedings.[^38]

Potential bidders should recognize that the interference protection
requirements for the Lower 700 MHz band are more stringent in certain
respects relative to the interference standards that apply to the Upper
700 MHz band.[^39] These interference obligations will remain in force
until the end of the DTV transition period at which time analog TV and
DTV broadcasters will be required to vacate both the Upper and Lower 700
MHz bands.[^40]

Potential bidders should be aware that a greater number of broadcast
incumbents exist in the Lower 700 MHz band relative to the Upper 700 MHz
band. The Commission has also observed that, although there is
approximately the same number of analog incumbents in both the Upper and
Lower 700 MHz bands, the Lower 700 MHz consists of less spectrum and,
therefore, incumbent licensees are more densely situated across the
band.[^41] Further, there is a significantly greater number of DTV
assignments on the eight television channels in the Lower 700 MHz band,
including licenses, construction permits, pending applications, and
pending allotment petitions, than exist in the Upper 700 MHz band.[^42]
The Commission may also permit certain Channel 60-69 broadcasters to
relocate temporarily into Channels 52-58 pursuant to a voluntary
clearing arrangement.[^43]

#### Negotiations with Incumbent Broadcast Licensees 

The Commission has established a policy of facilitating voluntary
clearing of the 700 MHz bands to allow for the introduction of new
wireless services and to promote the transition of incumbent analog
television licensees to DTV service.[^44] Generally speaking, this
policy provides that the Commission will consider specific regulatory
requests needed to implement voluntary agreements between incumbent
broadcasters and new licensees to clear the Lower 700 MHz band early, if
consistent with the public interest. The fundamentals of the
Commission's voluntary clearing policy for the 700 MHz bands were
established in a series of decisions beginning with the adoption of the
*Upper 700 MHz First Report and Order* in January 2000.[^45] However, in
light of certain differences between the Upper and Lower 700 MHz bands,
the Commission decided not to extend certain aspects of its voluntary
clearing policy to the Lower 700 MHz band, including the presumptions
that were established in the Upper 700 MHz band for analyzing voluntary
band-clearing proposals and the extended DTV construction period that
was provided to certain single-channel broadcasters in connection with
the arrangements for early clearing of the Upper 700 MHz band.[^46] In
considering such regulatory requests, the Commission will consider
whether grant of the request would result in public interest benefits,
such as making new or expanded public safety or other wireless services
available to consumers or deploying wireless service to rural or other
underserved communities.[^47] The Commission intends to weigh these
benefits against any likely public interest costs, such as the loss of
any of the four stations in the designated market area with the largest
audience share, the loss of the sole service licensed to the local
community, the loss of a community's sole service on a channel reserved
for noncommercial educational broadcast service, or a negative effect on
the pace of the DTV transition in the market.[^48]

Subsequent to the adoption by the Commission of its voluntary clearing
policy, the Auction Reform Act of 2002 was enacted.[^49] One provision
of this legislation restricts the Commission's authority to waive
certain broadcast interference standards and the minimum spacing
requirements for certain proposals to relocate Channel 52-69 analog
operations to a Channel 2-51 DTV allotment, if such waiver "will result
in any degradation in or loss of service, or an increased level of
interference to any television household except as the Commission's
rules would otherwise expressly permit, exclusive of any waivers
previously granted."[^50]

#### Canadian and Mexican Border Regions

The United States has bilateral agreements with both Canada and Mexico
setting forth allotment and assignment plans for TV broadcast stations
covering the 698-746 MHz band (Channels 52-59). While the U.S. has
identified this band for reallocation to new services, neither Canada
nor Mexico has done so to date.[^51] Pursuant to these agreements, the
U.S. must protect the signals of Canadian and Mexican TV broadcast
stations located in the border areas, and such operations will therefore
affect U.S. non-broadcast use and services in this band. Accordingly,
licenses issued for this band will be subject to whatever future
agreements the U. S. develops with these two countries. Furthermore,
until such time as existing agreements are replaced or modified to
reflect the new uses, licensees in the band will be subject to existing
agreements and the condition that harmful interference not be caused to,
and must be accepted from, television broadcast operations in those
countries.[^52]

### Due Diligence 

Potential bidders are reminded that there are a number of incumbent
broadcast television licensees already licensed and operating in the
710-716/740-746 MHz and 716-722 MHz bands that 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 52, 53, 54, 55, 56, 57, 58 and 59 must comply
with the co-channel and the adjacent channel provision of Section 27.60
of the Commission's rules.[^53] 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.

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. 49.

To aid potential bidders, the Bureau will issue shortly a Due Diligence
Announcement listing incumbent licensees operating in these bands. The
Commission makes no representations or guarantees that the matters
listed in this Due Diligence Announcement are the only pending matters
that could affect spectrum availability in these services.

Potential bidders also should be aware that certain applications
(including those for modification), petitions for rulemaking, requests
for special temporary authority ("STA"), waiver requests, petitions to
deny, petitions for reconsideration, and applications for review may be
pending before the Commission and relate to particular applicants or
incumbent licensees. In addition, certain judicial proceedings that may
relate to particular applicants or incumbent licensees, or the licenses
available in Auction No. 49, 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. 49.
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. To aid potential bidders, the
Bureau will issue shortly a Due Diligence Announcement listing matters
pending before the Commission that relate to licenses or applications in
these services. The Commission makes no representations or guarantees
that the matters listed in the Due Diligence Announcement are the only
pending matters that could affect spectrum availability in these
services.

In addition, potential bidders may research the licensing database for
the Media Bureau on the Internet in order to determine which frequencies
are already licensed to incumbent licensees. The Commission makes no
representations or guarantees regarding the accuracy or completeness of
information in its databases or any third party databases, including,
for example, court docketing systems. Furthermore, 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 database. **Potential bidders are strongly
encouraged to physically inspect any sites located in, or near, the EAG,
MSA or RSA for which they plan to bid.**

Licensing records for the Media Bureau are contained in the Media
Bureau's Consolidated Data Base System (CDBS) and may be researched on
the Internet at
[http://www.fcc.gov/](http://www.fcc.gov/mb)[mb/]{.underline}. Potential
bidders may query the database online and download a copy of their
search results if desired. Detailed instructions on using Search for
Station Information, Search for Ownership Report Information and Search
for Application Information and downloading query results are available
online by selecting the CDBS Public Access (main) button at the bottom
of the Electronic Filing and Public Access list section. The database
searches return either station or application data. The application
search provides an application link that displays the complete
electronically filed application in application format. An AL/TC search
under the application search link permits searching for Assignment of
License/Transfer of Control groups using the AL/TC group lead
application. For further details, click on the Help file.

Potential bidders should direct questions regarding the search
capabilities of CDBS to the Media Bureau help line at (202) 418-2662, or
via e-mail at [mbinfo@fcc.gov.](mailto:ulscomm@fcc.gov)

### 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.[^54] Prospective bidders are
reminded that submission of a false certification to the Commission is a
serious matter that may result in severe penalties, including monetary
forfeitures, license revocations, exclusion from participation in future
auctions, and/or criminal prosecution.

The FCC makes no representations or warranties about the use of this
spectrum for particular services. Applicants should be aware that 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 and interested parties should
perform their own due diligence before proceeding, as they would with
any new business venture.

As is the case with many business investment opportunities, some
unscrupulous entrepreneurs may attempt to use Auction No. 49 to deceive
and defraud unsuspecting investors. Common warning signals of fraud
include the following:

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

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

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

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

Information about deceptive telemarketing investment schemes is
available from the FTC at (202) 326-2222 and from the SEC at (202)
942-7040. Complaints about specific deceptive telemarketing investment
schemes should be directed to the FTC, the SEC, or the National Fraud
Information Center at (800) 876-7060. Consumers who have concerns about
specific proposals regarding Auction No. 49 may also call the FCC
Consumer Center at (888) CALL-FCC ((888) 225-5322).

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

Licensees must comply with the Commission's rules regarding the National
Environmental Policy Act (NEPA).[^55] The construction of a wireless
antenna facility is a federal action and the licensee must comply with
the Commission's NEPA rules for each such facility.[^56] The
Commission's NEPA rules require, among other things, that the licensee
consult with expert agencies having NEPA responsibilities, including the
U.S. Fish and Wildlife Service, the State Historic Preservation Office,
the Army Corps of Engineers and the Federal Emergency Management Agency
(through the local authority with jurisdiction over floodplains). The
licensee must prepare environmental assessments for facilities that may
have a significant impact in or on wilderness areas, wildlife preserves,
threatened or endangered species or designated critical habitats,
historical or archaeological sites, Indian religious sites, floodplains,
and surface features. The licensee must also prepare environmental
assessments for facilities that include high intensity white lights in
residential neighborhoods or excessive radio frequency emission.

## Auction Specifics

### Auction Date

The auction will begin on Wednesday, May 28, 2003. 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. 49 -- Lower 700 MHz Band

### Bidding Methodology

The bidding methodology for Auction No. 49 will be simultaneous multiple
round bidding. The Commission will conduct this auction over the
Internet. Telephonic bidding will also be available, and the FCC Wide
Area Network will be available as well. Qualified bidders are permitted
to bid telephonically or electronically.

### Pre-Auction Dates and Deadlines

Auction Seminar April 2, 2003

Short-Form (FCC Form 175) Filing Window Opens April 2, 2003; 12:00 p.m.
ET

Short-Form (FCC Form 175) Application Deadline April 11, 2003; 6:00 p.m.
ET

Upfront Payments (via wire transfer) May 2, 2003; 6:00 p.m. ET

Mock Auction May 22, 2003

Auction Begins May 28, 2003

### Requirements For Participation

One commenter, Banks, requests that the Bureau limit eligibility in
Auction No. 49 to parties that qualified to participate in Auction No.
44. Banks argues that such an eligibility limitation is mandated by the
Auction Reform Act.[^57] Banks bases its argument on language from the
Auction Reform Act, which limited the entities eligible to participate
in Auction No. 44 to "those entities that were qualified entities, and
that submitted applications to participate in auction 44, by May 8,
2002, as part of the original auction 44 short form filing
deadline."[^58] Banks contends that this restriction on eligibility
applies to the *spectrum blocks* identified rather than a specific
auction of those spectrum blocks.[^59] Thus, Banks concludes that the
eligibility limitation extends to any subsequent auction of those same
blocks of spectrum. Banks argues that the only other possible
interpretation of the Auction Reform Act is that it does not permit
further auctions of the C and D block spectrum until the Commission goes
forward with the auction of the remainder of the 700 MHz spectrum.[^60]
Only two commenters, Qualcomm and C&S, address Banks's assertion that
the Auction Reform Act limits who is eligible to participate in Auction
No. 49. Both Qualcomm and C&S oppose Banks's interpretation of the
Auction Reform Act.[^61] As we explain below, an analysis of the Auction
Reform Act establishes that Banks's reading of the statute is incorrect.

In the Auction Reform Act, among other things, Congress provided that
the Commission not commence or conduct Auction No. 44 on June 19,
2002.[^62] In the following subsection, Congress indicated that this
prohibition on conducting Auction No. 44 did not apply to the Lower 700
MHz C and D block licenses, established a restriction on the entities
eligible to bid in the auction of these licenses,[^63] and established a
deadline for the auction of such licenses and the deposit of the auction
proceeds in the U.S. Treasury.[^64] A plain reading of these provisions
shows that the limitations on who qualified to bid on the C block and
the D block licenses only applied to the conduct of Auction No. 44 and
not to any subsequent auction. The restriction on eligible bidders is
contained in the same subparagraph as other provisions regarding the
timing of Auction No. 44, the conduct of Auction No. 44, and the deposit
of the proceeds from Auction No. 44 in the U.S. Treasury.[^65] The
timing provisions regarding the conduct of the auction and the deposit
of the auction proceeds are significant because they indicate that
Congress was only referring to one event, the conduct of Auction No.
44.[^66] Congress was not providing any instructions regarding the
conduct of future auctions including the C and D block spectrum.
Further, contrary to Banks's suggestion, nothing in the statute
indicates that Congress was precluding in any manner a re-auction of the
spectrum. Finally, Banks's interpretation of the Auction Reform Act is
contrary to the statutory objectives of section 309(j) of the
Communications Act.[^67] As Qualcomm notes in its comments, under
Banks's interpretation of the Auction Reform Act, bidding on the
licenses in Auction No. 49 would be limited to the same bidders that
chose not to bid on the licenses when they were offered in Auction No.
44.[^68] This is unlikely to result in the licenses being awarded to the
parties that value them most highly. Thus, absent explicit statutory
language supporting Banks' interpretation, we decline to adopt the
eligibility restrictions Banks suggests. Accordingly, any entity wishing
to participate in the auction must:

-   Submit a short-form application (FCC Form 175) electronically by
    6:00 p.m. ET, April 11, 2003.

-   Submit a sufficient upfront payment and an FCC Remittance Advice
    Form (FCC Form 159) by 6:00 p.m. ET, May 2, 2003.

-   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         |
+-----------------------------------+----------------------------------+
|                                   | Hours of service: 8 a.m. -- 5:30 |
|                                   | p.m. ET                          |
+-----------------------------------+----------------------------------+
| AUCTION LEGAL INFORMATION         | Auctions and Industry Analysis   |
|                                   | Division                         |
+-----------------------------------+----------------------------------+
| Auction Rules, Policies,          | Legal Branch (202) 418-0660      |
| Regulations                       |                                  |
+-----------------------------------+----------------------------------+
| LICENSING INFORMATION             | Commercial Wireless Division     |
+-----------------------------------+----------------------------------+
| Rules, Policies, Regulations      | \(202\) 418-0620                 |
|                                   |                                  |
| Licensing Issues                  |                                  |
|                                   |                                  |
| Due Diligence                     |                                  |
|                                   |                                  |
| Incumbency Issues                 |                                  |
+-----------------------------------+----------------------------------+
| TECHNICAL SUPPORT                 | FCC Auctions Technical Support   |
|                                   | Hotline                          |
+-----------------------------------+----------------------------------+
| Electronic Filing                 | \(202\) 414-1250 (Voice),        |
+-----------------------------------+----------------------------------+
| FCC Automated Auction System      | \(202\) 414-1255 (TTY)           |
|                                   |                                  |
|                                   | Hours of service: Monday through |
|                                   | Friday 8 a.m. to 6:00 p.m. ET.   |
+-----------------------------------+----------------------------------+
| PAYMENT INFORMATION               | FCC Auctions Accounting Branch   |
+-----------------------------------+----------------------------------+
| Wire Transfers                    | \(202\) 418-0578 or (202)        |
|                                   | 418-0496                         |
+-----------------------------------+----------------------------------+
| Refunds                           | \(202\) 418-2843 (Fax)           |
+-----------------------------------+----------------------------------+
| TELEPHONIC BIDDING                | Will be furnished only to        |
|                                   | qualified bidders                |
+-----------------------------------+----------------------------------+
| FCC COPY CONTRACTOR               | Qualex International             |
+-----------------------------------+----------------------------------+
| Additional Copies of              | Portals II, 445 12^th^ Street,   |
|                                   | SW, Room CY-B402                 |
+-----------------------------------+----------------------------------+
| Commission Documents              | Washington, DC 20554             |
|                                   |                                  |
|                                   | \(202\) 863-2893                 |
|                                   |                                  |
|                                   | \(202\) 863-2898 (Fax)           |
|                                   |                                  |
|                                   | qualexint@aol.com (E-mail)       |
+-----------------------------------+----------------------------------+
| PRESS INFORMATION                 | Lauren Kravetz (202) 418-7944    |
+-----------------------------------+----------------------------------+
| FCC FORMS                         | \(800\) 418-3676 (outside        |
|                                   | Washington, DC)                  |
|                                   |                                  |
|                                   | \(202\) 418-3676 (in the         |
|                                   | Washington Area)                 |
|                                   |                                  |
|                                   | <h                               |
|                                   | ttp://www.fcc.gov/formpage>.html |
+-----------------------------------+----------------------------------+
| FCC INTERNET SITES                | [http://w                        |
|                                   | ww.fcc.gov](http://www.fcc.gov/) |
|                                   |                                  |
|                                   | [ht                              |
|                                   | tp://wireless.fcc.gov/auctions]( |
|                                   | http://www.fcc.gov/wtb/auctions) |
|                                   |                                  |
|                                   | http://wireless.fcc.gov/uls      |
+-----------------------------------+----------------------------------+

# 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 license(s) sought; and the
authorized bidders and contact persons. All applicants must certify on
their FCC Form 175 applications under penalty of perjury that they are
legally, technically, financially and otherwise qualified to hold a
license and, as discussed below in Section II.E (Provisions Regarding
Defaulters and Former Defaulters), that they are not in default on any
payment for Commission licenses (including down payments) or delinquent
on any non-tax debt owed to any Federal agency.

## License Selection

In Auction No. 49, Form 175 will include a mechanism that allows an
applicant to create customized lists of licenses. The applicant will
make selections for one or more of the filter criteria and the system
will produce a list of licenses satisfying the specified criteria. The
applicant may apply for all the licenses in the customized list (by
using the "Save all filtered licenses" option); select and save
individual licenses separately from the list; or create a second
customized list without selecting any of the licenses from the first
list. Applicants also will be able to select licenses from one
customized list and then create other customized lists to select
additional licenses.

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

All applicants must comply with the uniform Part 1 ownership disclosure
standards and provide information required by Sections 1.2105 and 1.2112
of the Commission's rules. Specifically, in completing FCC Form 175,
applicants will be required to file an "Exhibit A" providing a full and
complete statement of the ownership of the bidding entity. The ownership
disclosure standards for the short-form are set forth in Section 1.2112
of the Commission's rules.[^69]

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

Applicants will be required to identify on their short-form applications
any parties with whom they have entered into any consortium
arrangements, joint ventures, partnerships or other agreements or
understandings which relate in any way to the licenses being auctioned,
including any agreements relating to post-auction market structure.[^70]
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 licenses on which they will or will not
bid.[^71] As discussed above, if an applicant has had discussions, but
has not reached a joint bidding agreement by the short-form deadline, it
would not include the names of parties to the discussions on its
applications and may not continue discussions with applicants for the
same geographic license area(s) after the deadline.[^72] Where
applicants have entered into consortia or joint bidding arrangements,
applicants must submit an "Exhibit B" to the FCC Form 175.

A party holding a non-controlling, attributable interest in one
applicant will be permitted to acquire an ownership interest in, form a
consortium with, or enter into a joint bidding arrangement with other
applicants for licenses in the same geographic license area provided
that (i) the attributable interest holder certifies that it has not and
will not communicate with any party concerning the bids or bidding
strategies of more than one of the applicants in which it holds an
attributable interest, or with which it has formed a consortium or
entered into a joint bidding arrangement; and (ii) the arrangements do
not result in a change in control of any of the applicants.[^73] While
the anti-collusion rules do not prohibit non-auction related business
negotiations among auction applicants, bidders are reminded that certain
discussions or exchanges could touch upon impermissible subject matters
because they may convey pricing information and bidding strategies.

## Eligibility

### Bidding Credit Eligibility (FCC Form 175 Exhibit C)

A bidding credit represents the amount by which a bidder's winning bids
are discounted.[^74] The size of the bidding credit depends on the
average of the aggregated annual gross revenues for each of the
preceding three years of the bidder, its affiliates, its controlling
interests, and the affiliates of its controlling interests.[^75]

In the *Lower 700 MHz Report & Order*, the Commission determined that
three levels of bidding credits were appropriate for the MSA/RSA
licenses in the C block and that the licenses in the D block would be
limited to two levels of bidding credits.[^76] Aloha and Cavalier urge
that the Commission apply three levels of bidding credits to the EAG
licenses in the D block.[^77] Because the bidding credit levels were
adopted by the Commission in its Lower 700 MHz band proceeding, they
were not a matter upon which the Bureau sought comment.[^78]
Accordingly, for Auction No. 49, bidding credits will be available to
small and very small businesses and entrepreneurs, or consortia thereof,
as defined in 47 C.F.R. § 27.702 for the Lower 700 MHz band licenses:

-   A bidder with attributed average annual gross revenues of not more
    than \$40 million for the preceding three years ("small business")
    receives a 15 percent discount on its winning bids for Lower 700 MHz
    band licenses;[^79]

-   A bidder with attributed average annual gross revenues of not more
    than \$15 million for the preceding three years ("very small
    business") receives a 25 percent discount on its winning bids for
    Lower 700 MHz band licenses;[^80]

-   A bidder with attributed average annual gross revenues of not more
    than \$3 million for the preceding three years ("entrepreneur")
    receives a 35 percent discount on its winning bids for the MSA/RSA
    licenses in the Lower 700 MHz band. This definition applies only
    with respect to licenses in Block C (710-716 MHz and 740-746 MHz) as
    specified in 47 C.F.R. § 27.5(c)(1).

A bidder that qualifies as an entrepreneur may bid on EAG licenses in
Block D, but will only receive a 25 percent bidding credit on any EAG
license that it wins. Bidding credits are not cumulative; a qualifying
applicant receives either the 15 percent, 25 percent, or 35 percent
bidding credit on its winning bid, but only one credit per license.

### Tribal Land Bidding Credit

To encourage the growth of wireless services in federally recognized
tribal lands the Commission has implemented a tribal land bidding
credit. *See* Section V.E. of this Public Notice.

### Applicability of Part 1 Attribution Rules

***Controlling interest standard.*** On August 14, 2000, the Commission
released the *Part 1 Fifth Report and Order*, in which the Commission,
*inter alia*, adopted a "controlling interest" standard for attributing
to auction applicants the gross revenues of their investors and
affiliates in determining small business eligibility for future
auctions.[^81] The Commission observed that the rule modifications
adopted in the various Part 1 orders would result in discrepancies
and/or redundancies between certain of the new Part 1 rules and existing
service-specific rules, and the Commission delegated to the Bureau the
authority to make conforming edits to the Code of Federal Regulations
(CFR) consistent with the rules adopted in the Part 1 proceeding.[^82]
Part 1 rules that superseded inconsistent service-specific rules will
control in Auction No. 49.[^83] *Accordingly, the "controlling interest"
standard as set forth in the Part 1 rules will be in effect for Auction
No. 49.*

***Control.*** The term "control" includes both *de facto* and *de jure*
control of the applicant. Typically, *ownership of at least 50.1 percent
of an entity's voting stock evidences de jure control*. *De facto*
control is determined on a case-by-case basis.[^84] The following are
some common indicia of *de facto* control:

-   the entity constitutes or appoints more than 50 percent of the board
    of directors or management committee;

-   the entity has authority to appoint, promote, demote, and fire
    senior executives that control the day-to-day activities of the
    licensee; or

-   the entity plays an integral role in management decisions.

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

A consortium of small businesses, very small businesses or entrepreneurs
is a "conglomerate organization formed as a joint venture between or
among mutually independent business firms," each of which *individually*
must satisfy the definition of small business, very small business or
entrepreneur in Sections 1.2110(f), 27.702. Thus, each consortium member
must disclose its gross revenues along with those of its affiliates, its
controlling interests, and the affiliates of its controlling interests.
We note that although the gross revenues of the consortium members will
not be aggregated for purposes of determining eligibility for small
business, very small business or entrepreneur credits, this information
must be provided to ensure that each individual consortium member
qualifies for any bidding credit awarded to the consortium.

### Supporting Documentation

Applicants should note that they will be required to file supporting
documentation to their FCC Form 175 short-form applications to establish
that they satisfy the eligibility requirements to qualify as small, very
small businesses or entrepreneurs (or consortia of small, very small
businesses or entrepreneurs) for this auction.[^85]

Applicants should further note that submission of an FCC Form 175
application constitutes a representation by the certifying official that
he or she is an authorized representative of the applicant, has read the
form's instructions and certifications, and that the contents of the
application and its attachments are true and correct. Submission of a
false certification to the Commission may result in penalties, including
monetary forfeitures, license forfeitures, ineligibility to participate
in future auctions, and/or criminal prosecution.

***Small business, very small business, or entrepreneur eligibility
(Exhibit C).*** Entities applying to bid as small or very small
businesses or entrepreneurs (or consortia of small or very small
businesses or entrepreneurs) 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) its affiliates, (3) its
controlling interests, and (4) the affiliates of its controlling
interests. **Certification that the average annual gross revenues for
the preceding three years do not exceed the applicable limit is not
sufficient. A statement of the total gross revenues for the preceding
three years is also insufficient. The applicant must provide separately
for itself, its affiliates, its controlling interests, and the
affiliates of 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 small, very small businesses or
entrepreneurs, this information must be provided for each consortium
member.

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

Each applicant must certify on its FCC Form 175 application that it is
not in default on any Commission licenses and that it is not delinquent
on any non-tax debt owed to any Federal agency.[^86] In addition, each
applicant must attach to its FCC Form 175 application a statement made
under penalty of perjury indicating whether or not the applicant, its
affiliates, its controlling interests, or the affiliates of its
controlling interest have ever been in default on any Commission
licenses or have ever been delinquent on any non-tax debt owed to any
Federal agency. The applicant must provide such information for itself,
its affiliates, its controlling interests, and the affiliates of its
controlling interests, as defined by Section 1.2110 of the Commission's
rules (as amended in the *Part 1 Fifth Report and Order*).[^87]
**Applicants must include this statement as Exhibit D of the FCC Form
175.** Prospective bidders are reminded that the statement must be made
under penalty of perjury and, further, submission of a false
certification to the Commission is a serious matter that may result in
severe penalties, including monetary forfeitures, license revocations,
exclusion from participation in future auctions, and/or criminal
prosecution.

"Former defaulters" --- *i.e.*, applicants, including their attributable
interest holders, that in the past have defaulted on any Commission
licenses or been delinquent on any non-tax debt owed to any Federal
agency, but that have since remedied all such defaults and cured all of
their outstanding non-tax delinquencies --- are eligible to bid in
Auction No. 49, provided that they are otherwise qualified. However, as
discussed *infra* in Section III.D.3, former defaulters are required to
pay upfront payments that are fifty percent more than the normal upfront
payment amounts.[^88]

## Installment Payments

Installment payment plans will not be available in Auction No. 49.

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

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

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

After the short-form filing deadline (April 11, 2003), applicants may
make only minor changes to their FCC Form 175 applications. Applicants
will not be permitted to make major modifications to their applications
(*e.g*., change their license selections or proposed service areas,
change the certifying official or change control of the applicant or
change bidding credits). *See* 47 C.F.R. § 1.2105. Permissible minor
changes include, for example, deletion and addition of authorized
bidders (to a maximum of three) and revision of exhibits. Applicants
should make these modifications to their FCC Form 175 electronically and
submit a letter, briefly summarizing the changes, by electronic mail to
the attention of Margaret Wiener, Chief, Auctions and Industry Analysis
Division, at the following address: [auction49@fcc.gov]{.underline}. The
electronic mail summarizing the changes must include a subject or
caption referring to Auction No. 49. The Bureau requests that parties
format any attachments to electronic mail as Adobe^®^ Acrobat^®^ (pdf)
or Microsoft^®^ Word documents.

**A separate copy of the letter should be faxed to the attention of
Kathryn Garland at (717) 338-2850.** 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 Wednesday, April 2, 2003, the FCC will sponsor a free seminar for
Auction No. 49 at the Federal Communications Commission, located at 445
12^th^ Street, SW, Washington, DC. The seminar will provide attendees
with information about pre-auction procedures, conduct of the auction,
the FCC Automated Auction System, and the lower 700 MHz 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 found in Attachment B and
submit it by Friday, March 28, 2003. Registrations are accepted on a
first-come, first-served basis.

## Short-Form Application (FCC Form 175) --- Due April 11, 2003

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 no later than 6:00 p.m. ET
on April 11, 2003. 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* Section III.D, *below*.

### Electronic Filing

Applicants must file their FCC Form 175 applications
electronically.[^89] Applications may generally be filed at any time
beginning at noon ET on April 2, 2003, until 6:00 p.m. ET on April 11,
2003. Applicants are strongly encouraged to file early and are
responsible for allowing adequate time for filing their applications.
Applicants may update or amend their electronic applications multiple
times until the filing deadline on April 11, 2003.

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

Applicants can also contact Technical Support via e-mail. To obtain the
address, click the **Support** tab on the Form 175 Homepage.

### Completion of the FCC Form 175

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

### Electronic Review of FCC Form 175

The FCC Form 175 electronic review system may be used to locate and
print applicants' FCC Form 175 information. There is no fee for
accessing this system. *See* Attachment C for details on accessing the
review system.

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. NOTE: Applicants should not
include sensitive information (*i.e.*, TIN/EIN) on any exhibits to their
FCC Form 175 applications.

## 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; (2)
those applications rejected; and (3) those applications which have minor
defects that may be corrected, and the deadline for filing such
corrected applications.

As described more fully in the Commission's rules, after the April 11,
2003, short-form filing deadline, applicants may make only minor
corrections to their FCC Form 175 applications. Applicants will not be
permitted to make major modifications to their applications (*e.g.*,
change their license selections, change the certifying official, change
control of the applicant, or change bidding credit eligibility).[^90]

## Upfront Payments --- Due May 2, 2003

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 2, 2003.

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. 49 go to a lockbox number different
    from the lockboxes 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 2, 2003, deadline
    will result in dismissal of the application and disqualification
    from participation in the auction.

### Making Auction Payments by Wire Transfer

**Wire transfer payments must be received by 6:00 p.m. ET on May 2,
2003.** To avoid untimely payments, applicants should discuss
arrangements (including bank closing schedules) with their banker
several days before they plan to make the wire transfer, and allow
sufficient time for the transfer to be initiated and completed before
the deadline. Applicants will need the following information:

> ABA Routing Number: 043000261

> Receiving Bank: Mellon Pittsburgh
>
> BENEFICIARY: FCC/Account \# 910-1203
>
> OBI Field: (Skip one space between each information item)

> "AUCTIONPAY"

> FCC REGISTRATION NUMBER (FRN): (same as FCC Form 159, block 11 and/or
> 21)
>
> PAYMENT TYPE CODE (same as FCC Form 159, block 24A: A49U)
>
> FCC CODE 1 (same as FCC Form 159, block 28A: "49")
>
> PAYER NAME (same as FCC Form 159, block 2)
>
> LOCKBOX NO. \# 358425

**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 (Revised 2/00) to Mellon
Bank at (412) 209-6045 **at least one hour before** placing the order
for the wire transfer (but on the same business day). On the cover sheet
of the fax, write "Wire Transfer --- Auction Payment for Auction Event
No. 49." **Bidders should confirm receipt of their upfront payment at
Mellon Bank by contacting their sending financial institution.**

### FCC Form 159

A completed FCC Remittance Advice Form (FCC Form 159, Revised 2/00) must
be faxed to Mellon Bank in order to accompany each upfront payment.
Proper completion of FCC Form 159 (Revised 2/00) is critical to ensuring
correct credit of upfront payments. Detailed instructions for completion
of FCC Form 159 are included in Attachment E to this public notice. An
electronic version of the FCC Form 159 is available after filing the FCC
Form 175. The FCC Form 159 can be completed electronically, but must be
filed with Mellon Bank via facsimile.

### Amount of Upfront Payment

In the *Part 1 Order* the Commission delegated to the Bureau the
authority and discretion to determine appropriate upfront payment(s) for
each auction.[^91] In addition, in the *Part 1 Fifth Report and Order*,
the Commission ordered that "former defaulters," *i.e.*, applicants that
have ever been in default on any Commission license or have ever been
delinquent on any non-tax debt owed to any Federal agency, be required
to pay upfront payments fifty percent greater than non-"former
defaulters."[^92] For purposes of this calculation, the "applicant"
includes the applicant itself, its affiliates, its controlling
interests, and affiliates of its controlling interests, as defined by
Section 1.2110 of the Commission's rules (as amended in the *Part 1
Fifth Report and Order*).[^93]

In the *Auction No. 49 Comment Public Notices*, we proposed that the
amount of the upfront payment would determine the number of bidding
units on which a bidder may place bids.[^94] In order to bid on a
license, otherwise qualified bidders that applied for that license on
Form 175 must have an eligibility level that meets or exceeds the number
of bidding units assigned to that license. At a minimum, therefore, an
applicant's total upfront payment must be enough to establish
eligibility to bid on at least one of the licenses applied for on Form
175, or else the applicant will not be eligible to participate in the
auction. An applicant does not have to make an upfront payment to cover
all licenses for which the applicant has applied on 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 the *Auction No. 49 Comment Public Notices*,[^95] the Bureau proposed
upfront payments on a license-by-license basis using the following
formula:

\$0.005 \* MHz \* License Area Population[^96] with a minimum of \$1,000
per license.[^97]

We received two comments on this issue. Aloha and Cavalier support the
Bureau's proposal.[^98] Accordingly, the Bureau adopts its proposed
formula for determining upfront payments.

The specific upfront payments and bidding units for each license are set
forth in Attachment A of this Public Notice.

In calculating its upfront payment amount, an applicant should determine
the [maximum]{.underline} number of bidding units on which it may wish
to be active (bidding units associated with licenses on which the bidder
has the standing high bid from the previous round and licenses on which
the bidder places a bid in the current round) 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.**

  -------------------- ---------- ----------- ------------------ ---------------- ----------- ----------- -----
  **Example: Upfront                                                                                      
  Payments and Bidding                                                                                    
  Flexibility**                                                                                           

                       **Market   **Block**   **Market Name**    **Population**   **Bidding   **Upfront   
                       No.**                                                      Units**     Payment**   

                       CMA152     C           Portland, ME       300,826          18,000      \$18,000    

                       CMA314     C           Alabama 8 -- Lee   196,259          12,000      \$12,000    

  If a bidder wishes                                                                                      
  to bid on both                                                                                          
  licenses in a round,                                                                                    
  it must have                                                                                            
  selected both on its                                                                                    
  FCC Form 175 and                                                                                        
  purchased at least                                                                                      
  30,000 bidding units                                                                                    
  (18,000 + 12,000).                                                                                      
  If a bidder only                                                                                        
  wishes to bid on                                                                                        
  one, but not both,                                                                                      
  purchasing 18,000                                                                                       
  bidding units would                                                                                     
  meet the requirement                                                                                    
  for either license.                                                                                     
  The bidder would be                                                                                     
  able to bid on                                                                                          
  either license, [but                                                                                    
  not both at the same                                                                                    
  time]{.underline}.                                                                                      
  If the bidder                                                                                           
  purchased only                                                                                          
  12,000 bidding                                                                                          
  units, it would have                                                                                    
  enough eligibility                                                                                      
  for the Alabama 8 -                                                                                     
  Lee license but not                                                                                     
  for the Portland, ME                                                                                    
  license.                                                                                                
  -------------------- ---------- ----------- ------------------ ---------------- ----------- ----------- -----

Former defaulters should calculate their upfront payment for all
licenses by multiplying the number of bidding units they wish to
purchase by 1.5. In order to calculate the number of bidding units to
assign to former defaulters, the Commission will divide the upfront
payment received by 1.5 and round the result up to the nearest bidding
unit.

NOTE: An applicant may, on its FCC Form 175, apply for every applicable
license being offered, but its actual bidding in any round will be
limited by the bidding units reflected in its upfront payment.

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

The Commission will use wire transfers for all Auction No. 49 refunds.
To ensure that refunds of upfront payments are processed in an
expeditious manner, the Commission is requesting that all pertinent
information as listed below be supplied to the FCC. Applicants can
provide the information electronically during the initial short-form
filing window after the form has been submitted. Wire Transfer
Instructions can also be manually faxed to the FCC, Financial Operations
Center, Auctions Accounting Group, ATTN: Gail Glasser or Tim Dates, at
(202) 418-2843 by May 2, 2003. All refunds will be returned to the payer
of record as identified on the FCC Form 159 unless the payer submits
written authorization instructing otherwise. For additional information,
please call Gail Glasser at (202) 418-0578 or Tim Dates at (202)
418-0496.

Name of Bank

> ABA Number
>
> Contact and Phone Number
>
> Account Number to Credit
>
> Name of Account Holder
>
> FCC Registration Number (FRN)
>
> Taxpayer Identification Number (see below)
>
> 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 Section V.G., *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, one containing the confidential bidder
identification number (BIN) and the other containing the SecurID cards,
both of which are 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 Tuesday, May 20, 2003, should contact
the Auctions Hotline at (717) 338-2888. Receipt of both registration
mailings is critical to participating in the auction, and each applicant
is responsible for ensuring it has received all of the registration
material.

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

## Remote Electronic Bidding 

The Commission will conduct this auction over the Internet. Telephonic
bidding will also be available, and the FCC Wide Area Network will be
available as well. Qualified bidders are permitted to bid telephonically
or electronically, *i.e.*, over the Internet or the FCC's Wide Area
Network. In either case, **each authorized bidder** must have its own
SecurID card, which the FCC will provide at no charge. Each applicant
with 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 FCC Automated
Auction System user manual 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; therefore, SecurID cards
issued for other auctions or obtained from a source other than the FCC
will not work for Auction No. 49. The telephonic bidding phone number
will be supplied in the first overnight mailing, which also includes the
confidential bidder identification number. Each applicant should
indicate its bidding preference---electronic or telephonic---on the FCC
Form 175.

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.

## Mock Auction

All qualified bidders will be eligible to participate in a mock auction
on Thursday, May 22, 2003. The mock auction will enable applicants to
become familiar with the FCC Automated Auction System prior to the
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. 49 will begin on Wednesday,
May 28, 2003. The initial bidding schedule will be announced in a public
notice listing the qualified bidders, which is released approximately 10
days before the start of the auction.

## Auction Structure

### Simultaneous Multiple Round Auction

In the *Auction No. 49 Comment Public Notices*, we proposed to award all
licenses in Auction No. 49 in a simultaneous multiple round
auction.[^99] Aloha and Cavalier agree with the Bureau's proposal.[^100]
We conclude that it is operationally feasible and appropriate to auction
the licenses in the Lower 700 MHz band through a 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 synergies that exist among licenses and is
administratively efficient.

### Maximum Eligibility and Activity Rules 

In the *Auction No. 49 Comment Public Notices*, 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.[^101] One commenter, Banks, requests that the Bureau modify, or
create an exception, to this procedure in conjunction with adopting new
procedures that would apply when a high bidder withdraws its bid during
the course of the auction. Specifically, Banks suggests that in Auction
No. 49, when a bidder withdraws its standing high bid, the next-highest
bidder should be offered the licenses at its last bid amount, regardless
of whether the next-highest bidder has any bidding eligibility available
or is even still in the auction.[^102] In support of its proposal, Banks
claims that adoption of this procedure will ensure that the party that
values the license most highly wins the license.[^103] As we explain
below, we decline to adopt Banks' proposal because it would undermine
the efficacy of our activity and eligibility rules, thereby potentially
decreasing the likelihood that the license is awarded to the bidder who
values it most highly.

The Commission's rules do not provide for the procedure suggested by
Banks. Pursuant to section 1.2109(b) of the Commission's rules, however,
the Bureau retains the discretion to offer licenses to the next-highest
bidder if a winning bidder withdraws or defaults "*after* the Commission
has declared competitive bidding closed."[^104] Although the Bureau has
the discretion to award licenses to the next-highest bidder in such
cases, the Commission has consistently indicated, "the best course is to
re-auction the license."[^105] The Commission has also recognized that
the circumstances for which a next-highest offer would be appropriate
are narrow.[^106] Further, the Commission has observed that re-offering
a defaulted license to the next highest bidder "may not ensure that the
license will be offered to the bidder who values it most highly. In
particular, as the license is offered to bidders at that next highest
bids, other parties can argue that they would pay more for the license
if given the opportunity."[^107] Thus, even where the rules provide for
a procedure similar to the one suggested by Banks, it is generally
disfavored.

Perhaps more significantly, Banks's proposal also implicates the
activity and eligibility rules that apply to the conduct of the
Commission's simultaneous multiple round auctions. A bidder's
eligibility at the start of an auction is based upon the upfront payment
amount that is converted into bidding units, using an auction-specific
dollar to bidding unit ratio. Through the upfront payment, the applicant
may purchase as many bidding units as it desires, but it must have
sufficient bidding units to be eligible to bid on at least one of the
licenses that it selects on the FCC Form 175 ("short-form application").
The activity rules, in turn, require bidder participation throughout the
auction. Each bidder must have bidding activity in each round[^108] that
accounts for a specified fraction of the bidder's current eligibility,
as measured in bidding units. Once eligibility has been reduced, a
bidder will not be permitted to regain its lost bidding eligibility.

The activity and eligibility rules serve several important functions
that are necessary to an efficient auction process. The auction activity
and eligibility rules encourage bidders to make early bids in the
auction, as opposed to waiting until later rounds to participate. Prompt
and early participation by a bidder in the auction reveals useful
information to other bidders about its demand and valuations for
licenses. This transparent process allows bidders to modify their
strategies based on current prices. The activity and eligibility rules
also help maintain the pace of the auction, which reduces costs to
bidders and the Commission. By promoting an efficient auction process,
these rules increase the likelihood that the winning bidder will be the
party that most highly values the license. By circumventing the activity
and eligibility rules, Banks' proposal to restore eligibility would
undermine this efficiency.

Furthermore, in contrast with one of the basic principles of our auction
design, Banks' proposal would permit the withdrawal of one bidder to
directly affect the auction outcome for another bidder by means other
than straightforwardly outbidding it. In essence, this change would
allow the withdrawing bidder to turn a license over to the holder of the
second-highest bid, without the second highest bidder having to outbid
the other bidders who might have an interest in the license. This would
create the potential for anti-competitive strategic interaction among
auction participants and abuse of the auction rules.[^109] Finally,
Banks' proposal does not address whether the eligibility of other
bidders, that may also have an interest, should also be restored and at
what level to allow them to bid for the license. Instead, Banks'
proposal makes a questionable assumption that the next highest bidder is
the only bidder who would at that stage be interested in submitting a
bid.[^110] Thus, Banks proposal does not appear to increase the
likelihood that the winning bidder will be the party that most highly
values the license.

Accordingly, we reject Banks' request and adopt our proposal that the
amount of the upfront payment submitted by a bidder determines the
maximum initial eligibility (in bidding units) for each bidder. Note
again that each license is assigned a specific number of bidding units
equal to the upfront payment listed in Attachment A on a bidding unit
per dollar basis. The total upfront payment defines the maximum number
of bidding units on which the applicant will be permitted to bid and
hold high bids in a round. As there is no provision for increasing a
bidder's eligibility after the upfront payment deadline, prospective
bidders are cautioned to calculate their upfront payments carefully.
**The total upfront payment does not affect the total dollar amount 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 late in the auction before
participating. Bidders are required to be active on a specific
percentage of their current 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 a bid in
the current round (*see* "Bid Increments and Minimum Accepted Bids" in
Section IV.B.3, *below*). The minimum required activity is expressed as
a percentage of the bidder's current 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 Section IV.A.3 and "Stage Transitions" in
Section IV.A.4, *below*), we adopt them for Auction No. 49.

### Auction Stages

In the *Auction No. 49 Comment Public Notices*, 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.[^111] 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 its current
eligibility, would be required to be active on 98 percent of its current
bidding eligibility. We received no comments on this proposal.

We adopt our proposals for the activity rule and stages. 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 encompassing 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 bidder's current activity (the sum of
bidding units of the bidder's standing high bids and 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 bidder's current activity
(the sum of bidding units of the bidder's standing high bids and 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 bidder's current
activity (the sum of bidding units of the bidder's standing high bids
and 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
activity level by using the bidding system's bidding module.

Because the foregoing procedures have proven successful in maintaining
proper pace in previous auctions, we adopt them for Auction No. 49.

### Stage Transitions

In the *Auction No. 49 Comment Public Notices*, 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 20 percent for three consecutive rounds of
bidding in each Stage. 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.[^112] We received no comments on this
subject.

We adopt our proposal. Thus, the auction will start in Stage One and
will generally 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 20 percent
or less of the licenses being auctioned (as measured in bidding units).
In addition, 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,[^113] 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. 49.

### Activity Rule Waivers and Reducing Eligibility

In the *Auction No. 49 Comment Public Notices*, we proposed that each
bidder in the auction would be provided five activity rule waivers.
Bidders may use an activity rule waiver in any round during the course
of the auction.[^114] Aloha and Cavalier support the Bureau's proposal
on this issue.[^115]

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 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 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. If a
bidder has no waivers remaining and does not satisfy the required
activity level, the current eligibility will be permanently reduced,
possibly eliminating the bidder from the auction.

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 bidding system. 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* Section IV.A.3 discussion *above*). 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 FCC
Automated Auction System) during a round in which no bids are submitted,
the auction will remain open and the bidder's eligibility will be
preserved. However, an automatic waiver triggered during a round in
which there are no new bids or withdrawals will not keep the auction
open. **Note: Once a proactive waiver is submitted during a round, that
waiver cannot be unsubmitted.**

### Auction Stopping Rules

For Auction No. 49, the Bureau proposed to employ a simultaneous
stopping rule.[^116] The Bureau also sought comment on a modified
version of the stopping rule. The modified version of the stopping rule
would 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 would not keep the auction open
under this modified stopping rule.

The Bureau further proposed retaining the discretion to keep the auction
open even if no new 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 use an activity rule waiver (if it has any left) or
lose bidding eligibility.

In addition, we proposed that the Bureau reserve the right to declare
that the auction will end after a designated 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.[^117] Before exercising this option, the Bureau is likely to
attempt to increase the pace of the auction by, for example, moving the
auction into the next stage (where bidders will be required to maintain
a higher level of bidding activity), increasing the number of rounds per
day, and/or adjusting the minimum acceptable bids and bid increments for
the licenses.

Aloha and Cavalier support the Bureau's proposal on concerning the
auction stopping rules.[^118] In light of the foregoing, we adopt the
above proposals. Auction No. 49 will begin under the simultaneous
stopping rule, and the Bureau will retain the discretion to invoke the
other versions of the stopping rule. We believe that these stopping
rules are most appropriate for Auction No. 49, because our experience in
prior auctions demonstrates that the auction stopping rules balance the
interests of administrative efficiency and maximum bidder participation.

### Auction Delay, Suspension, or Cancellation

In the *Auction No. 49 Comment Public Notices,* 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 conduct of competitive bidding.[^119] Aloha
and Cavalier support the Bureau's proposal on this issue.[^120]

Because this approach has proven effective in resolving exigent
circumstances in previous auctions, we 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.[^121] Each bidding round is followed by
the release of round results. Multiple bidding rounds may be conducted
in a given day. Details regarding round results formats and locations
will also be included in the qualified bidders 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 Bureau may
increase or decrease the amount of time for the bidding rounds and
review periods, or the number of rounds per day, depending upon the
bidding activity level and other factors.

### Reserve Price or Minimum Opening Bid

*Background*. The Balanced Budget Act calls upon the Commission to
prescribe methods by which a reasonable reserve price will be required
or a minimum opening bid established when FCC licenses are subject to
auction (*i.e.*, because they are mutually exclusive), unless the
Commission determines that a reserve price or minimum opening bid is not
in the public interest.[^122] 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.[^123] Among other factors, the Bureau must consider the amount
of spectrum being auctioned, levels of incumbency, the availability of
technology to provide service, the size of the geographic service areas,
the extent of interference with other spectrum bands, and any other
relevant factors that could have an impact on the spectrum being
auctioned.[^124] The Commission concluded that the Bureau should have
the discretion to employ either or both of these mechanisms for future
auctions.[^125]

In the *Auction No. 49 Comment Public Notices*, the Bureau proposed to
establish minimum opening bids for Auction No. 49 and to retain
discretion to lower the minimum opening bids.[^126] Specifically, for
Auction No. 49, the Bureau proposed the following license-by-license
formula for calculating minimum opening bids:

\$0.01 \* MHz \* License Area Population[^127] with a minimum of \$1,000
per license.[^128]

In the alternative, the Bureau sought comment on whether, consistent
with the Balanced Budget Act, the public interest would be served by
having no minimum opening bid or reserve price.[^129]

Two commenters allege that the minimum opening bids are too high and ask
that the Bureau revise the proposed formula to reduce the minimum
opening bids.[^130] Neither commenter proposes a specific reduction to
the minimum opening bids nor a specific change to the formula used to
compute the minimum opening bid.[^131] Further, the commenters provide
no evidence that the proposed minimum opening bids are too high.

Following consideration of comments received, we adopt our proposed
minimum opening bids for Auction No. 49. We note that the minimum
opening bids adopted here are approximately 60% less than those used in
Auction No. 44. Based on this reduction and other considerations, we
believe the minimum opening bids are well below the levels of the likely
winning bids, and are not so high as to discourage competition. Thus, we
are not persuaded that the proposed minimum opening bids are
unreasonable.

The minimum opening bids we adopt for Auction No. 49 are reducible at
the discretion of the Bureau. We emphasize, however, that such
discretion will be exercised, if at all, sparingly and early in the
auction, *i.e.*, before bidders lose all waivers and begin to lose
substantial eligibility. During the course of the auction, the Bureau
will not entertain any requests to reduce the minimum opening bid on
specific licenses.

The specific minimum opening bids for each license available in Auction
No. 49 are set forth in Attachment A.

### Minimum Acceptable Bids and Bid Increments 

In the *Auction No. 49 Comment Public Notices*, we proposed to use a
smoothing methodology to calculate minimum acceptable bids.[^132] The
smoothing methodology is designed to vary the increment for a given
license between a maximum and minimum percentage based on the bidding
activity on that license. This methodology allows the increments to be
tailored to the activity on a license, decreasing the time it takes for
licenses receiving many bids to reach their final prices. The formula
used to calculate this increment is included as Attachment F. We further
proposed to retain the discretion to change the minimum acceptable bids
and bid increments if circumstances so dictate.[^133] Aloha and Cavalier
support the Bureau's position concerning minimum acceptable bids and bid
increments.[^134]

In each round, each eligible bidder will be able to place a bid on a
particular license for which it applied in any of nine different
amounts.[^135] The FCC Automated Auction System will list the nine bid
amounts for each license.

Once there is a standing high bid on a license, the FCC Automated
Auction System will calculate a minimum acceptable bid for that license
for the following round, as described in Attachment F. The difference
between the minimum acceptable bid and the standing high bid for each
license will define the **bid increment** --- *i.e.*, bid increment =
(minimum acceptable bid) -- (standing high bid). The nine acceptable bid
amounts for each license consist of the minimum acceptable bid (the
standing high bid plus one bid increment) and additional amounts
calculated using multiple bid increments (*i.e.*, the second bid amount
equals the standing high bid plus two times the bid increment, the third
bid amount equals the standing high bid plus three times the bid
increment, etc.).

At the start of the auction and until a bid has been placed on a
license, the minimum acceptable bid for that license will be equal to
its minimum opening bid. Corresponding additional bid amounts will be
calculated using bid increments defined as the difference between the
minimum opening bid times one plus the percentage increment, rounded as
described in Attachment F, and the minimum opening bid --- *i.e.*, bid
increment = (minimum opening bid)(1 + percentage increment) {rounded} --
(minimum opening bid). At the start of the auction and until a bid has
been placed on a license, the nine acceptable bid amounts for each
license consist of the minimum opening bid and additional amounts
calculated using multiple bid increments (*i.e.*, the second bid amount
equals the minimum opening bid plus the bid increment, the third bid
amount equals the minimum opening bid plus two times the bid increment,
etc).

In the case of a license for which the standing high bid has been
withdrawn,[^136] the minimum acceptable bid will equal the second
highest bid received for the license. The additional bid amounts are
calculated using the difference between the second highest bid times one
plus the minimum percentage increment, rounded, and the second highest
bid.

The Bureau retains the discretion to change the minimum acceptable bids
and bid increments and the methodology for determining the minimum
acceptable bids and bid increments if they determine circumstance so
dictate. The Bureau will do so by announcement in the FCC Automated
Auction System. The Bureau may also use its discretion to adjust the
minimum bid increment without prior notice if circumstances warrant.

### High Bids

At the end of each bidding round, the high bids will be determined based
on the highest gross bid amount received for each license.[^137] A high
bid from a previous round is sometimes referred to as a "standing high
bid." A "standing high bid" will remain the high bid until there is a
higher bid on the same license at the close of a subsequent round.
Bidders are reminded that standing high bids count towards bidding
activity.[^138]

In the *Auction No. 49 Comment Public Notices*,[^139] the Bureau
proposed to use a random number generator to select a high bid in the
event of identical high bids on a license in a given round (*i.e.*, tied
bids). Aloha and Cavalier support the Bureau's proposal concerning tie
bids.[^140] No commenter opposed the Bureau's proposal. Therefore, the
Bureau adopts its proposal. A Sybase® SQL pseudo-random number generator
based on the Lecuyer algorithm will be used to assign a random number to
each bid. The tied bid having the highest random number will become the
standing high bid. The remaining bidders, as well as the high bidder,
will be able to submit a higher bid in a subsequent round. If no bidder
submits a higher bid in a subsequent round, the high bid from the
previous round will win the license. If any bids are received on the
license in a subsequent round, the high bid will once again be
determined on the highest gross bid amount received for the license.

### Bidding

During a round, a bidder may submit bids for as many licenses as it
wishes (subject to its eligibility), withdraw high bids from previous
bidding rounds, remove bids placed in the same bidding round, or
permanently reduce eligibility. Bidders also have the option of making
multiple submissions and withdrawals in each 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. Bidders should
note that the bidding units associated with licenses for which the
bidder has removed or withdrawn its bid do not count towards the
bidder's activity at the close of the round.

Please note that all bidding will take place remotely either through the
FCC Automated Auction System 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. 49.

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 allow bidders to submit bids on only those
licenses for which the bidder applied on its FCC Form 175.

In order to access the bidding functions of the FCC Automated Auction
System, bidders must be logged in during the bidding round using the
bidder identification number provided in the registration materials, and
the passcode generated by the SecurID card. Bidders are strongly
encouraged to print bid confirmations for each round [after]{.underline}
they have completed all of their activity for that round.

In each round, eligible bidders will be able to place bids on a given
license in any of nine different amounts.[^141] For each license, the
FCC Automated Auction System interface will list the nine acceptable bid
amounts in a drop-down box. Bidders may use the drop-down box to select
from among the nine bid amounts. The FCC Automated Auction System also
includes an import function that allows bidders to upload text files
containing bid information.

Until a bid has been placed on a license, the minimum acceptable bid for
that license will be equal to its minimum opening bid. Once there is a
standing high bid on a license, the FCC Automated Auction System will
calculate a minimum acceptable bid for that license for the following
round, as described in Section IV.B.3.

Finally, bidders are cautioned in selecting their bid amounts because,
as explained in the following section, bidders who withdraw a standing
high bid from a previous round, even if mistakenly or erroneously made,
are subject to bid withdrawal payments.

### Bid Removal and Bid Withdrawal

In the *Auction No. 49 Comment Public Notices*, we proposed bid removal
and bid withdrawal procedures.[^142] Aloha and Cavalier agree with the
Bureau's proposal concerning bid removal and bid withdrawal.[^143] 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 used, we proposed, would be at
the bidder's discretion.

**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 bidding system, 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 removed does not count towards bidding activity. This
procedure will enhance bidder flexibility during the auction, and
therefore, we adopt these procedures for Auction No. 49.

Once a round closes, a bidder may no longer remove a bid. However, in
later rounds, a bidder may withdraw standing high bids from previous
rounds using the withdraw bid function in the FCC Automated Auction
System (assuming that the bidder has not reached its withdrawal limit).
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). **Note: Once a withdrawal is placed during a
round, that withdrawal cannot be unsubmitted.**

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 licenses in combination, we conclude that, for
Auction No. 49, adoption of a limit on the use of withdrawals to two
rounds per bidder is appropriate. 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 and 800 MHz SMR auctions, 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 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 minimum acceptable bid will equal the
second highest bid received for the license, which may be less than, or
equal to, in the case of tied bids, the amount of the withdrawn
bid.[^144] To set the additional bid amounts, the second highest bid
also will be used in place of the standing high bid in the formula used
to calculate bid increments. The Commission will serve as a "place
holder" high bidder on the license until a new bid is submitted on that
license.

**Calculation.** Generally, the Commission imposes payments on bidders
that withdraw high bids during the course of an auction.[^145] If a
bidder withdraws its bid and there is no higher bid in the same or
subsequent auction(s), the bidder that withdrew its bid is responsible
for the difference between its withdrawn bid and the high bid in the
same or subsequent auction(s).[^146] In the case of multiple bid
withdrawals on a single license, within the same or subsequent
auctions(s), the payment for each bid withdrawal will be calculated
based on the sequence of bid withdrawals and the amounts withdrawn. No
withdrawal payment will be assessed for a withdrawn bid if either the
subsequent winning bid or any of the intervening subsequent withdrawn
bids, in either the same or subsequent auctions(s), equals or exceeds
that withdrawn bid. Thus, a bidder that withdraws a bid will not be
responsible for any withdrawal payments if there is a subsequent higher
bid in the same or subsequent auction(s).[^147] This policy allows
bidders most efficiently to allocate their resources as well as to
evaluate their bidding strategies and business plans during an auction
while, at the same time, maintaining the integrity of the auction
process. The Bureau retains the discretion to scrutinize multiple bid
withdrawals on a single license for evidence of anti-competitive
strategic behavior and take appropriate action when deemed necessary.

In the *Part 1 Fifth Report and Order*, the Commission modified Section
1.2104(g)(1) of the rules regarding assessments of interim bid
withdrawal payments.[^148] As amended, Section 1.2104(g)(1) provides
that in instances in which bids have been withdrawn on a license that is
not won in the same auction, the Commission will assess an interim
withdrawal payment equal to 3 percent of the amount of the withdrawn
bids. The 3 percent interim payment will be applied toward any final bid
withdrawal payment that will be assessed after subsequent auction of the
license. Assessing an interim bid withdrawal payment ensures that the
Commission receives a minimal withdrawal payment pending assessment of
any final withdrawal payment. The *Part 1 Fifth Report and Order*
provides specific examples showing application of the bid withdrawal
payment rule.[^149]

### Round Results

Bids placed during a round will not be made public until the conclusion
of that bidding period. After a round closes, the Bureau will compile
reports of all bids placed, bids withdrawn, current high bids, new
minimum acceptable bids, and bidder eligibility status (bidding
eligibility and activity rule waivers), and post the reports for public
access. Reports reflecting bidders' identities for Auction No. 49 will
be available before and during the auction. Thus, bidders will know in
advance of this auction the identities of the bidders against which they
are bidding.

### Auction Announcements

The FCC will use auction announcements to announce items such as
schedule changes and stage transitions. All FCC auction announcements
will be available by clicking a link on the FCC Automated Auction
System.

### Maintaining the Accuracy of FCC Form 175 Information

As noted in Section II.H., after the short-form filing deadline,
applicants may make only minor changes to their FCC Form 175
applications. For example, permissible minor changes include deletion
and addition of authorized bidders (to a maximum of three) and certain
revision of exhibits. Applicants must make these modifications to their
FCC Form 175 electronically and submit a letter, briefly summarizing the
changes, by electronic mail to the attention of Margaret Wiener, Chief,
Auctions and Industry Analysis Division at the following address:
[auction49@fcc.gov](mailto:auction82@fcc.gov). The electronic mail
summarizing the changes must include a subject or caption referring to
Auction No. 49. The Bureau requests that parties format any attachments
to electronic mail as Adobe^®^ Acrobat^®^ (pdf) or Microsoft^®^ Word
documents.

**A separate copy of the letter should be faxed to the attention of
Kathryn Garland at (717) 338-2850.** Questions about other changes
should be directed to Howard Davenport of the 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 winning bidders, down payments
and any withdrawn bid payments due.

Within ten business days after release of the auction closing notice,
each winning bidder must submit sufficient funds (in addition to its
upfront payment) to bring its total amount of money on deposit with the
Commission for Auction No. 49 to 20 percent of its net winning bids
(actual bids less any applicable small, very small business or
entrepreneur bidding credits).[^150] In addition, by the same deadline
all bidders must pay any bid withdrawal payments due under 47 C.F.R. §
1.2104(g), as discussed in "Bid Removal and Bid Withdrawal," Section
IV.B.6. (Upfront payments are applied first to satisfy any withdrawn bid
liability, before being applied toward down payments.)

## Auction Discount Voucher 

On June 8, 2000, the Commission awarded Qualcomm, Inc. a transferable
Auction Discount Voucher ("ADV") in the amount of
\$125,273,878.00.[^151] This ADV may be used by Qualcomm or its
transferee, in whole or in part, to adjust a winning bid in any spectrum
auction prior to June 8, 2003, subject to terms and conditions set forth
in the Commission's Order.[^152] Qualcomm transferred \$10,848,000.00 of
the ADV to a winning bidder in FCC Auction No. 35 and the transferee
used its portion of the ADV to pay a portion of one of its winning bids
in Auction No. 35.[^153] The remaining portion of Qualcomm's ADV could
be used to adjust winning bids in another FCC auction, including Auction
No. 49.

## Long-Form Application (FCC Form 601)

Within ten business days after release of the auction closing notice,
winning bidders must electronically submit a properly completed
long-form application (FCC Form 601) and required exhibits for each
license won through Auction No. 49. Winning bidders that are small, very
small businesses or entrepreneurs must include an exhibit demonstrating
their eligibility for small, very small business or entrepreneur bidding
credits. *See* 47 C.F.R. § 1.2112(b). Further filing instructions will
be provided to auction winners at the close of the auction.

## Ownership Disclosure Information Report (FCC Form 602)

At the time it submits its long-form application (FCC Form 601), each
winning bidder also must comply with the ownership reporting
requirements as set forth in 47 C.F.R. §§ 1.913, 1.919, and 1.2112(a).
We remind applicants that effective December 10, 2002, electronic filing
of the Ownership Disclosure Information Report (FCC Form 602) became
mandatory.[^154] Accordingly, forms filed manually will not be accepted.
Winning bidders without a current Form 602 already on file with the
Commission must submit a properly completed Form 602 at the time they
submit their long-form applications. Further filing instructions will be
provided to auction winners at the close of the auction.

## Tribal Land Bidding Credit

A winning bidder that intends to use its license(s) to deploy facilities
and provide services to federally-recognized tribal lands that are
unserved by any telecommunications carrier or that have a telephone
service penetration rate equal to or below 70 percent is eligible to
receive a tribal land bidding credit as set forth in 47 C.F.R. §§ 1.2107
and 1.2110(f). A tribal land bidding credit is in addition to, and
separate from, any other bidding credit for which a winning bidder may
qualify.

Unlike other bidding credits that are requested prior to the auction, a
winning bidder applies for the tribal land bidding credit *after*
winning the auction when it files its long-form application (FCC Form
601). When filing the long-form application, the winning bidder will be
required to advise the Commission whether it intends to seek a tribal
land bidding credit, for each market won in the auction, by checking the
designated box(es). After stating its intent to seek a tribal land
bidding credit, the applicant will have 90 days from the close of the
long-form filing window to amend its application to select the specific
tribal lands to be served and provide the required tribal government
certifications. Licensees receiving a tribal land bidding credit are
subject to performance criteria as set forth in 47 C.F.R. § 1.2110(f).

For additional information on the tribal land bidding credit, including
how the amount of the credit is calculated, applicants should review the
Commission's rule making proceeding regarding tribal land bidding
credits and related public notices.[^155] Relevant documents can be
viewed on the Commission's web site by going to
[http://wireless.fcc.gov/auctions](http://www.fcc.gov/wtb/auctions) and
clicking on the *Tribal Land Credits* link.

## 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. 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.[^156]

## Refund of Remaining Upfront Payment Balance

All applicants that submitted upfront payments but were not winning
bidders for a license in Auction No. 49 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. All refunds will be returned to the payer of record, as
identified on the FCC Form 159, unless the payer submits written
authorization instructing otherwise.

Bidders that drop out of the auction completely may be eligible for a
refund of their upfront payments before 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 written refund request. If you
have completed the refund instructions electronically, then only a
written request for the refund is necessary. If not, the request must
also include wire transfer instructions, Taxpayer Identification Number
(TIN) and FCC Registration Number (FRN). Send refund request to:

Federal Communications Commission

Financial Operations Center

Auctions Accounting Group

Gail Glasser or Tim Dates

445 12th Street, SW, Room 1-C863

Washington, DC 20554

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

> NOTE: Refund processing generally takes up to two weeks to complete.
> Bidders with questions about refunds should contact Gail Glasser at
> (202) 418-0578 or Tim Dates at (202) 418-0496.

**Media Contact:** Lauren Kravetz at (202) 418-7944

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

**Commercial Wireless Division:** Policy and Rules Branch, Amal Abdallah
at (202) 418-7307 or Evan Baranoff at (202) 418-7142; Licensing and
Technical Analysis Branch, Joanne Epps or Keith Harper, at (202)
418-0620

**Media Bureau:** Engineering Division, Gordon Godfrey at (202)
418-2193.

# Attachment A

PLACE HOLDER

# attachment B

FCC AUCTION SEMINAR REGISTRATION FORM

Auction No. 49

The FCC will sponsor a one-day seminar for Auction No. 49 applicants.
The seminar is free of charge and will provide information about
pre-auction procedures, service and auction rules, conduct of the
auction, and the FCC Automated Auction System.

Representatives from each company may attend on a reservation basis,
first-come first-served until room capacity is filled. The seminar will
be held:

Wednesday, April 2, 2003

Federal Communications Commission

445 12th Street SW

Washington, DC 20554

Registration 9:30 a.m. -- 10:00 a.m.

Seminar 10:00 a.m. - 2 p.m.

If hotel accommodations are needed

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

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

To register, complete the form below and

return no later than

Friday, March 28, 2003, by fax to:

FCC Auction 49

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. 49 Seminar, scheduled for Wednesday,
April 2, 2003.

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

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

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

Company address:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Phone:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_Fax:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

# Attachment C

ELECTRONIC FILING AND REVIEW

OF THE FCC FORM 175

Applicants must submit their FCC Form 175 applications electronically.
The FCC recommends submitting your Form 175 via the Internet. As a
contingency, you can submit via the FCC Wide-Area Network. FCC Form 175
applications must be submitted and confirmed by **6:00 p.m. ET on
Friday, April 11, 2003.** Late applications or unconfirmed submissions
of electronic data will not be accepted.

Applicants must click the **SUBMIT Application** button on the
*Submission* 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.

## Software Requirements

Applicants will need to meet the following minimum software
requirements:

-   Web Browser, either of the following:

```{=html}
<!-- -->
```
-   Microsoft® Internet Explorer 4.0 or higher (recommended). Your
    browser must have either Microsoft VM or Java Plug-In Version 1.3.1
    installed.

-   Netscape® Communicator™ 4.0 or higher, with Java Plug-In Version
    1.3.1.

> Java Plug-In Version 1.3.1 is available for downloading at
> [***http://java.sun.com/getjava/download.html***](http://java.sun.com/products/plugin/).

-   PDF Viewer: Adobe Acrobat Reader 5.0 or higher (available at
    ***http://www.adobe.com***)

-   If you wish to use the download feature on the Search Results page,
    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/shareware***).

## Submitting FCC Form 175 Applications

You can submit FCC Form 175 applications electronically via the
Internet. Start your web browser and point it to either
***https://auctions.fcc.gov/*** (primary location) or
***https://auctions2.fcc.gov/*** (secondary location). On the FCC
Auctions page, click **Form 175 Application & Search** to obtain the
Form 175 Homepage.

**Note:** As a contingency, you may submit FCC Form 175 applications via
the FCC Wide Area Network, using Dial-Up Networking. To access the Wide
Area Network, configure your dial-up network to dial either
***202-408-7835*** or ***717-338-0735***. These phone numbers are
located in the Washington, DC, and Gettysburg, PA, metropolitan areas,
respectively. Thus, they may be long-distance calls, depending on where
you reside.

### Logging On

The Form 175 Homepage has a Form 175 Logon area at the top right. This
area provides fields that let you identify yourself to the system. In
these fields, type your assigned FRN (*without* the hyphens) and the
password you created in CORES, respectively, then click the **Logon**
button.

Once you have logged on with your FRN, you can click the **New Form**
link to obtain the *Profile* page for the auction.

### Uploading Attachments

When uploading attachments from the Form 175 *Attachments* page, you may
use a variety of file formats\--including Word 2000 or earlier,
WordPerfect 6.*x* or earlier, Adobe PDF, and ASCII text\--and you should
verify that the files contain all exhibit information. Also note the
following about files to be uploaded:

-   Files may be no larger than 1.5 Mb.

-   Graphics files (e.g., .*bmp, .tiff, .jpg*) and spreadsheets (e.g.,
    Excel, Lotus) are not supported.

-   Word processing files that are uploaded may not contain graphic
    images.

-   You may include hyphens (-) and underscore (\_) symbols in the name
    of a file to be uploaded, but do not use other punctuation marks or
    blank spaces. The FCC system will not be able to convert that file.

-   The path to a file (i.e., the file name and its directory) must not
    exceed 60 characters.

-   Do not upload a password-protected file. The FCC system will not be
    able to open it or convert it.

-   Do not include your TIN in any attachment to be uploaded. Contents
    of attachments become public once the Status PN is released.

The system converts each uploaded attachment to PDF format. (The
conversion process

generally completes within 30 minutes.) Until the system has converted
your file to PDF format, the description field shows *Not converted*.

Repeat this procedure for each additional attachment you want to add.
When you have finished adding attachments, click the **Continue to
CERTIFICATION** button to obtain the *Certification* page.

#### Unreadable Attachment Files

If you are unable to read an attachment file after it has been
converted, please do the following:

1\. Re-upload the attachment.

2\. If the file still has not been 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 using their **Delete** links.

### Completing the Submission Procedure

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

## Reviewing FCC Form 175 Applications

Once the FCC has completed the 175 Review process, you can view FCC Form
175 applications electronically by searching for them in the FCC
database. Start your web browser and point it to either
***https://auctions.fcc.gov/*** (primary location) or
***https://auctions2.fcc.gov/*** (secondary location). Click the **Form
175 Application & Search** link, then click the **SEARCH** link at the
top of the page. When the *Form 175 Search* page appears, select the
search criteria you want and then click the **Submit** button.

## Help

For technical assistance with 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.*

You can also contact Technical Support via e-mail. To obtain the
address, click the **Support** tab on the Form 175 Homepage.

# Attachment D

GUIDELINES FOR COMPLETION OF FCC FORM 175 AND EXHIBITS

## FCC Form 175

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

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

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

**Legal 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 corporation (LLC) or
government entity.

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

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

**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.

**Bidding Credit Eligibility:** Applicants that qualify for a small
business, very small business or entrepreneur bidding credit must select
the applicable bidding credit (15 percent, 25 percent or 35 percent) in
the bidding credit eligibility item on the Form 175. Applicants are
advised that this is the sole opportunity applicants have to elect small
business status and bidding credit level (if applicable). There is no
opportunity to change the election once the short-form filing deadline
passes on April 11, 2003.

**Electronic or Telephonic Bidding Options:** Bidders may participate in
the auction either electronically or telephonically, and must specify
their preference. To participate in the auction, every authorized bidder
must have a SecurID card, which the FCC will provide free of charge.

**License Selection:** Applicants should select 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 on April 11, 2003. It is critically important that you confirm
the licenses that you have selected because the auction system will not
accept a bid on licenses for which an applicant has not applied on its
FCC Form 175.

The online Form 175 application provides filters that enable you to
generate a customized list of licenses. Once you obtain this customized
list, you can use it to select the licenses you are interested in.

## Exhibits and Attachments 

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

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

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

*2) Re‑upload the attachment.*

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

**NOTE: Applicants should not include sensitive information (i.e.,
TIN/EIN) 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,
very small business or entrepreneur consortium must provide this
information. The following information is required:

### General Information

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

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

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

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

  Trust                  Name, citizenship, and address of trustee

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

### Ownership Information

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

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

Be aware that pursuant to Certification (4) on the FCC Form 175, the
applicant certifies that it will not enter into any explicit or implicit
agreements or understandings of any kind with parties not identified in
the application regarding bid amounts, bidding strategies, or the
particular licenses on which 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 competing applicants from communicating
concerning bids, bidding strategies, or settlements during the period
between the initial short-form applications filing deadline and the
deadline for down payments on licenses won in the auction.* 47 C.F.R. §
1.2105(c).

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

+----------------------+--------------------+-------------------------+
| ***Entity***         | ***Required        |                         |
|                      | Information***     |                         |
+======================+====================+=========================+
| Applicant            | Average annual     |                         |
|                      | gross revenues for |                         |
|                      | the preceding      |                         |
|                      | three years set    |                         |
|                      | forth *both        |                         |
|                      | separately*        |                         |
|                      | (*e.g.*, for each  |                         |
|                      | of the preceding   |                         |
|                      | three years        |                         |
|                      | individually) *and |                         |
|                      | in the aggregate*  |                         |
|                      | (for all of the    |                         |
|                      | preceding three    |                         |
|                      | years combined).   |                         |
|                      | Certification that |                         |
|                      | the average of the |                         |
|                      | aggregated annual  |                         |
|                      | 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          | Same information   |                         |
| Affiliates           | required as        |                         |
|                      | discussed above    |                         |
| *See* 47 CFR §§      |                    |                         |
| 1.2110, 1.2112       |                    |                         |
+----------------------+--------------------+-------------------------+
| Applicant's          | Same information   |                         |
| Controlling          | required as        |                         |
| Interests *See* 47   | discussed above    |                         |
| CFR §§ 1.2110,       |                    |                         |
| 1.2112.              |                    |                         |
+----------------------+--------------------+-------------------------+
|                      | *Example.* The     |                         |
|                      | applicant had      |                         |
|                      | gross revenues of  |                         |
|                      | \$500,000 in 1999, |                         |
|                      | \$1,000,000 in     |                         |
|                      | 2000, and          |                         |
|                      | \$3,000,000 in     |                         |
|                      | 2001, 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(c)(5)(i)(B). |                         |
|                      | Company B owns 52% |                         |
|                      | of the applicant,  |                         |
|                      | making Company B a |                         |
|                      | controlling        |                         |
|                      | interest of the    |                         |
|                      | applicant, as      |                         |
|                      | defined in Section |                         |
|                      | II.D.3 of this     |                         |
|                      | public notice.     |                         |
|                      | Company B owns     |                         |
|                      | 100% of Company C, |                         |
|                      | making Company C   |                         |
|                      | an affiliate of    |                         |
|                      | the applicant's    |                         |
|                      | controlling        |                         |
|                      | interest, under    |                         |
|                      | Section            |                         |
|                      | 1                  |                         |
|                      | .2110(c)(5)(i)(C). |                         |
|                      | The applicant's    |                         |
|                      | Exhibit C would    |                         |
|                      | look like this:    |                         |
+----------------------+--------------------+-------------------------+
|                      | Applicant Name     |                         |
+----------------------+--------------------+-------------------------+
|                      | 1999 gross         | \$ 500,000              |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2000 gross         | \$ 1,000,000            |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2001 gross         | \$ 3,000,000            |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | Average gross      | \$ 1,500,000            |
|                      | revenues for the   |                         |
|                      | preceding 3 years  |                         |
+----------------------+--------------------+-------------------------+
|                      | Company A (an      |                         |
|                      | affiliate of the   |                         |
|                      | applicant)         |                         |
+----------------------+--------------------+-------------------------+
|                      | 1999 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2000 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2001 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | Average gross      | \$ enter amount         |
|                      | revenues for the   |                         |
|                      | preceding 3 years  |                         |
+----------------------+--------------------+-------------------------+
|                      | Company B (a       |                         |
|                      | controlling        |                         |
|                      | interest in the    |                         |
|                      | applicant)         |                         |
+----------------------+--------------------+-------------------------+
|                      | 1999 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2000 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2001 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | Average gross      | \$ enter amount         |
|                      | revenues for the   |                         |
|                      | preceding 3 years  |                         |
+----------------------+--------------------+-------------------------+
|                      | Company C (an      |                         |
|                      | affiliate of the   |                         |
|                      | applicant's        |                         |
|                      | controlling        |                         |
|                      | interest)          |                         |
+----------------------+--------------------+-------------------------+
|                      | 1999 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2000 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2001 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | Average gross      | \$ enter amount         |
|                      | revenues for the   |                         |
|                      | preceding 3 years  |                         |
+----------------------+--------------------+-------------------------+

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

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

**Exhibit D -- Information Required of All Applicants Regarding Prior
Defaults and Prior Delinquencies:** Each applicant must include at
Exhibit D a statement made under penalty of perjury indicating whether
the applicant, its affiliates, its controlling interests, or the
affiliates of its controlling interest have ever been in default on any
Commission licenses or have ever been delinquent on any non-tax debt
owed to any Federal agency. The applicant must provide such information
for itself, for each of its controlling interests and affiliates, and
for each affiliate of its controlling interests as defined by Section
1.2110 of the Commission's rules (as amended in the *Part 1 Fifth Report
and Order*).

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

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

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

**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.

**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 Application" button on the
"Submission" 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).

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 by electronic mail
to the attention of Margaret Wiener, Chief, Auctions and Industry
Analysis Division, at the following address:
[auction49@fcc.gov](mailto:auction44@fcc.gov), in which case the
applicant must indicate in Exhibit F 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.

The electronic mail summarizing the changes must include a subject or
caption referring to Auction No. 49. The Bureau requests that parties
format any attachments to electronic mail as Adobe^®^ Acrobat^®^ (pdf)
or Microsoft^®^ Word documents.

**A separate copy of the letter should be faxed to the attention of
Kathryn Garland at (717) 338-2850.**

# Attachment E

AUCTION-SPECIFIC INSTRUCTIONS FOR

FCC REMITTANCE ADVICE (FCC FORM 159-February 2000 Edition)

## Upfront Payments

The following information supplements the standard instructions for FCC
Form 159 (Revised 2/00), and is provided to help ensure correct
completion of FCC Form 159 for upfront payments for Auction No. 49.
Applicants need to complete FCC Form 159 carefully, since:

-   **Mistakes may affect their bidding eligibility; and**

```{=html}
<!-- -->
```
-   **Lack of consistency between information set forth in FCC Form 159
    (Revised 2/00), 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 "358425"
>
> 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 (Revised 2/00).

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 from the
> Applicant
>
> Information section.
>
> 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).

11. Payer FRN -- Enter the payer's ten-digit FCC Registration Number
    (FRN)

> registered in the Commission Registration System (CORES).

12. Payer TIN -- Enter the payer's nine-digit Taxpayer Identification
    Number (TIN).

> 24A Payment Type Code - Enter "A49U"
>
> 25A Quantity - Enter the number "1"
>
> 26A Fee Due - Amount of Upfront Payment
>
> 27A Total Fee - Will be the same amount as 26A.
>
> 28A FCC Code 1 - Enter the number "49" (indicating Auction No. 49).

NOTES:

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

-   If applicant is different from the payer, complete blocks 13 through
    22 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 Section E 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

Minimum Acceptable Bids, Bid Increments, and the Smoothing Formula

The FCC Automated Auction System calculates the minimum acceptable bids
and bid increments for each license with a standing high bid in each
round of the auction based on all bidding activity for the license. For
this auction, the Commission will use a standard smoothing methodology
to calculate minimum acceptable bids and bid increments.

The smoothing formula calculates minimum acceptable bids by first
calculating a *percentage increment*, not to be confused with the *bid
increment*, for each license based on a weighted average of the activity
received on each license in all previous rounds. This methodology
tailors the percentage increment for each license based on activity,
rather than setting a global increment for all licenses.

In a given round, the calculation of the percentage increment for each
license 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 (10%), and the
maximum percentage increment at 0.2 (20%).

Equations

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

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

X ~i+1~ = I~i+1~ \* Y~i~

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 increment for the next round (round i+1)

N = minimum percentage increment or percentage increment floor

M = maximum percentage increment or percentage increment ceiling

X ~i+1~ = dollar amount associated with the percentage increment

Y~i~ = high bid from the current round

Under the 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 high bid from the current round plus the dollar amount
associated with the percentage increment, with the result rounded to the
nearest thousand if it is over ten thousand, to the nearest hundred if
it is under ten thousand but over one thousand, or to the nearest ten if
it is below one thousand.

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 the smoothing
formula:

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\. Calculation of dollar amount associated with the percentage
increment for round 2 (using I~2~ from above):

X~2~ = 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 the smoothing
formula:

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\. Calculation of dollar amount associated with the percentage
increment for round 3 (using I~3~ from above):

X~3~ = 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 the smoothing
formula:

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\. Calculation of dollar amount associated with the percentage
increment for round 4 (using I~4~ from above):

X~4~ = 0.2 \* \$2,400,000 = \$480,000

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

As stated above, until a bid has been placed on a license, the minimum
acceptable bid for that license will be equal to its minimum opening
bid. The additional bid amounts are calculated using the difference
between the minimum opening bid times one plus the minimum percentage
increment, rounded as described above, and the minimum opening bid. That
is, I = (minimum opening bid)(1 + N){rounded}- (minimum opening bid).
Therefore, when N equals 0.1, the first additional bid amount will be
approximately ten percent higher than the minimum opening bid; the
second, twenty percent; the third, thirty percent; etc.

In the case of a license for which the standing high bid has been
withdrawn, the minimum acceptable bid will equal the second highest bid
received for the license. The additional bid amounts are calculated
using the difference between the second highest bid times one plus the
minimum percentage increment, rounded, and the second highest bid.

# ATTACHMENT G

SUMMARY LISTING OF DOCUMENTS FROM THE COMMISSION

AND THE WIRELESS TELECOMMUNICATIONS BUREAU

ADDRESSING APPLICATION OF THE ANTI‑COLLUSION RULES

## Commission Decisions:

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

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

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

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

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

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

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

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

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

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

In the Matter of Amendment of Part 1 of the Commission's
Rules---Competitive Bidding Procedures, *Seventh Report and Order*, 16
FCC Rcd 17546 (2001).

## Wireless Telecommunications Bureau Decisions:

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

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

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

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

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

### Public Notices:

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

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

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

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

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

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

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

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

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

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

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

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

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

*Letter to Robert Pettit, Wiley, Rein & Fielding from Margaret W.
Wiener, Chief, Auctions and Industry Analysis Division, Wireless
Telecommunications Bureau*, DA 00-2905 (released December 26, 2000).

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

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

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

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

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

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

**How to Obtain Copies of the Anti-Collusion Decisions:**

Many of the documents listed in this attachment can be retrieved from
the following Commission web site:
[http://wireless.fcc.gov/auctions/anticollusion]{.underline}

The documents may be located by using our search engine (select the link
"search"). Documents retrieved from the web site are available in
various formats including Word, WordPerfect, Acrobat Reader, Excel, and
ASCII Text. To review a document in its entirety, including footnotes,
it is necessary to access the document in WordPerfect, MS Word, or
Acrobat Reader.

Additionally, all of the documents can be ordered in hard copy for a fee
from the Commission's contractor, Qualex International at (202)
863-2893.

[^1]: *See* Reallocation and Service Rules for the 698-746 MHz Spectrum
    Band (Television Channels 52-59), GN Docket 01-74, *Report and
    Order*, 17 FCC Rcd 1022 (2002) ("*Lower 700 MHz Report & Order*").

[^2]: Balanced Budget Act of 1997, Pub. L. No. 105-33, 111 Stat. 251, §
    3002(a) (1997) (codified at 47 U.S.C. § 309(j)(4)(F)) ("Balanced
    Budget Act"). The Commission's authority to establish a reserve
    price or minimum opening bid is set forth in 47 C.F.R. § 1.2104(c)
    and (d).

[^3]: *See* Auction of Lower 700 MHz Band Licenses Scheduled for April
    16, 2003; Comment Sought on Reserve Prices or Minimum Opening Bids
    and Other Auction Procedures, *Public Notice*, DA 02-3287 (rel.
    December 2, 2002), 67 Fed. Reg. 72946 ("A*uction No. 49 Comment
    Public Notice"*).

[^4]: Comments were filed on December 16, 2002, by Banks Broadcasting,
    Inc. ("Banks"), Aloha Partners, L.P. ("Aloha"), Harbor Wireless, LLC
    ("Harbor"), Qualcomm, Inc. ("Qualcomm"), and C&S Partners ("C&S").

[^5]: Reply Comments were filed on December 23, 2002, by Aloha, Milkyway
    Broadband, LLC ("Milkyway"), Cavalier Group, LLC ("Cavalier"),
    Qualcomm, and C&S.

[^6]: *See* Revised Inventory and Auction Start Date for Auction of
    Lower 700 MHz Band Licenses; Comment Sought on Reserve Prices or
    Minimum Opening Bids and Other Auction Procedures, *Public Notice*,
    DA 03-100 (rel. January 29, 2003) 68 Fed. Reg. 6452 ("*Auction No.
    49 Revised Comment Public Notice*").

[^7]: *Id.* at 1-2.

[^8]: *Id.*

[^9]: Comments were filed on February 12, 2003, by Banks. Comments were
    filed on February 19, 2003, by Aloha.

[^10]: A Reply Comment was filed on February 19, 2003, by Cavalier.
    Qualcomm submitted a late-filed Reply Comment on February 20, 2003.

[^11]: When commenters have filed comments or reply comments in response
    to both the *Auction No. 49 Comment Public Notice* and the *Auction
    No. 49 Revised Comment Public Notice*, filings responding to the
    *Auction No. 49 Comment Public Notice* will be referred to as "First
    Comments" or "First Reply Comments" and filings responding to the
    *Auction No. 49 Revised Comment Public Notice* will be referred to
    as "Second Comments" or "Second Reply Comments." Further, when
    referencing both the *Auction No. 49 Comment Public Notice* and the
    *Auction No. 49 Revised Comment Public Notice,* the two public
    notices will be referred to collectively as the "*Auction No. 49
    Comment Public Notices."*

[^12]: *Lower 700 MHz Report & Order* at ¶ 1*.*

[^13]: *Id* at ¶¶ 13-14.

[^14]: *Id.* at ¶¶ 13-14, 27-33, and 44-46.

[^15]: *Id.* at ¶¶ 76-96. For the Lower 700 MHz band, the Commission
    adopted Metropolitan Statistical Areas (MSAs) and Rural Service
    Areas (RSAs) as defined by Public Notice Report No. CL-92-40 "Common
    Carrier Public Mobile Services Information, Cellular MSA/RSA Markets
    and Counties," dated January 24, 1992, DA 92-109, 7 FCC Rcd 742
    (1992), with the following modifications: (i) the service areas of
    cellular markets that border the U.S. coastline of the Gulf of
    Mexico extend 12 nautical miles from the U.S. Gulf coastline; and
    (ii) the service area of cellular market 306 that comprises the
    water area of the Gulf of Mexico extends from 12 nautical miles off
    the U.S. Gulf coast outward into the Gulf. *See* 47 C.F.R. §
    27.6(c)(2).

[^16]: *Id.* at ¶¶ 97-123.

[^17]: *Id.* at ¶¶ 99-111.

[^18]: *Id.* at ¶¶ 164-179.

[^19]: *See* Reallocation and Service Rules for the 698-746 MHz Spectrum
    Band (Television Channels 52-59), *Memorandum Opinion and Order*, 17
    FCC Rcd 11613 (2002) ("*Lower 700 MHz MO&O*").

[^20]: The Bureau has before it a Request for Waiver of Auction
    Procedures and Section 1.2109 of the Commission's Rules filed on
    October 2, 2002, by Banks Broadcasting, Inc. ("Banks") and a
    Petition to Promptly Resolve Waiver Request or Remove Four Licenses
    from Auction No. 49 Pending Resolution of Outstanding Waiver
    Request, filed by Banks on December 17, 2002. In these filings,
    Banks seeks to have the Bureau offer it four of the licenses listed
    herein based on high bids Banks formerly held on those licenses in
    Auction No. 44. The Bureau will respond to Banks's request in a
    separate Order.

[^21]: *See* Lower 700 MHz Band Auction Closes, Winning Bidders
    Announced, Down Payments Due October 4, 2002, FCC Forms 601 and 602
    Due October 4, 2002, Ten-Day Petition to Deny Period, *Public
    Notice*, 17 FCC Rcd 17272 (WTB, 2002).

[^22]: Amendment of Part 1 of the Commission's Rules-Competitive Bidding
    Procedures, WT Docket No. 97-82, *Order on Reconsideration of the
    Third Report and Order*, *Fifth Report and Order, and Fourth Further
    Notice of Proposed Rulemaking*, 15 FCC Rcd 15293 (2000) (modified by
    Erratum, DA 00-2475) (rel. Nov. 3, 2000)) ("*Part 1 Fifth Report and
    Order"*). The Commission has further amended Section 1.2105 of the
    Competitive Bidding Rules. *See* In the Matter of Amendment of Part
    1 of the Commission's Rules\--Competitive Bidding Procedures,
    *Seventh Report and Order*, 16 FCC Rcd 17546, 17555, ¶ 17 (2001)
    ("*Part 1* *Seventh Report and Order*"). *See infra* note 49. On
    February 8, 2002, the Commission further amended Section 1.2110 of
    the Competitive Bidding Rules. Amendment of Part 1 of the
    Commission's Rules -- Competitive Bidding Procedures, *Eighth Report
    and Order*, 17 FCC Rcd 2962 (2002).

[^23]: *See* Reallocation and Service Rules for the 698-746 MHz Spectrum
    Band (Television Channels 52-59) GN Docket No. 01-74, *Notice of
    Proposed Rule Making*, 16 FCC Rcd 7278 ("*Lower 700 MHz NPRM*")
    (2001).

[^24]: *See* note 1, *supra*.

[^25]: *See* note 17, *supra*.

[^26]: *See* *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15297-98, ¶¶
    7-8; *see also* 47 C.F.R. § 1.2105.

[^27]: *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*"*)*.

[^28]: *See id*., at 11978.

[^29]: *See* Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules, *Public Notice*, DA 95-2244, 11 FCC
    Rcd 9645 (1995).

[^30]: 47 C.F.R. § 1.2105(c).

[^31]: *See* Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules, *Public Notice*, 11 FCC Rcd 9645
    (1995).

[^32]: 47 C.F.R. § 1.65.

[^33]: The Commission amended Section 1.2105 to require auction
    applicants to report prohibited communications in writing to the
    Commission immediately, but in no case later than five business days
    after the communication occurs. *Part 1* *Seventh Report and Order*,
    16 FCC Rcd at 17555, ¶ 17.

[^34]: 47 C.F.R. § 27.60 (co- and adjacent-channel interference
    protection to analog TV and DTV facilities).

[^35]: Issues of methods of interference protection, rights of incumbent
    broadcasters to protection, and broadcasters' ability to modify
    authorized facilities are discussed in the *DTV Second Biennial
    Review NPRM. See* Second Periodic Review of the Commission's Rules
    and Policies Affecting the Conversion To Digital Television, *Notice
    of Proposed Rule Making*, FCC 03-8, ¶¶ 39-62 (rel. Jan 27, 2003).

[^36]: *Lower 700 MHz Report and Order*, 17 FCC Rcd at 1121, Appendix D.

[^37]: 47 C.F.R. § 27.50(c)(5).

[^38]: A Due Diligence Announcement that includes a listing of some of
    the pending matters that may relate to the Lower 700 MHz C and D
    blocks will be released shortly. The Bureau does not represent that
    this list will include all pending matters that may relate to the
    Lower 700 MHz C and D blocks.

[^39]: *Lower 700 MHz Report and Order,* 17 FCC Rcd at 1045-47 ¶¶ 52-57;
    47 C.F.R. § 27.60(a).

[^40]: *Lower 700 MHz Report and Order,* 17 FCC Rcd at 1033 n. 73.
    Because broadcast operations will exist in the core TV spectrum (on
    and below Channels 51), which is sub-adjacent to the Lower 700 MHz
    band, adjacent-channel and other interference protections may apply
    beyond the end of the DTV transition period.

[^41]: *Id.* at 1039 ¶ 39.

[^42]: *Id.* at 1039 ¶ 39 and n. 111.

[^43]: *Id.* at 1034 ¶ 24.

[^44]: *Id.* at 1094-95 ¶¶ 182-184.

[^45]: The Commission initially stated that it would "consider specific
    regulatory requests needed to implement voluntary agreements"
    between incumbent broadcasters and new licensees to clear the Upper
    700 MHz band early, if consistent with public interest. *See*
    Service Rules for the 746-764 and 776-794 MHz Bands, and Revisions
    to Part 27 of the Commission's Rules, WT Docket No. 99-168, *Upper
    700 MHz First Report and Order*, 15 FCC Rcd 476 (2000) ("*Upper 700
    MHz First Report and Order")*. Subsequently, the Commission
    established a rebuttable presumption favoring the grant of requests
    that would both result in certain specific benefits and avoid
    specific detriments. *See* Service Rules for the 746-764 and 776-794
    MHz Bands, and Revisions to Part 27 of the Commission's Rules, WT
    Docket No. 99-168, *Memorandum Opinion and Order and Further Notice
    of Proposed Rulemaking*, 15 FCC Rcd 20845 at 20870-71 ¶ 61 (2000)
    ("*Upper 700 MHz MO&O and FNPRM").* These policies were later
    extended to "three-way" band clearing arrangements, in which
    non-Channel 59-69 broadcasters were also potential parties. *See*
    Service Rules for the 746-764 and 776-794 MHz Bands, and Revisions
    to Part 27 of the Commission's Rules, WT Docket No. 99-168, Carriage
    of the Transmissions of Digital Broadcast Stations, CS Docket No.
    98-120, Review of the Commission's Rules and Policies Affecting the
    Conversion to Digital Television, MM Docket No. 00-39, *Third Report
    and Order*, 16 FCC Rcd 2703, 2718 at ¶ 36 (2001) ("*Upper 700 MHz
    Third Report and Order").* Subsequently, the Commission provided
    certain additional flexibility to facilitate voluntary agreements
    for early clearing and granted a request for relief from two
    specific DTV-related requirements. *See* Service Rules for the
    746-764 and 776-794 MHz Bands, and Revisions to Part 27 of the
    Commission's Rules, WT Docket No. 99-168, Carriage of the
    Transmissions of Digital Broadcast Stations, CS Docket No. 98-120,
    Review of the Commission's Rules and Policies Affecting the
    Conversion to Digital Television, MM Docket No. 00-39, *Order on
    Reconsideration of the* *Third Report and Order*, 16 FCC Rcd 21633
    (2001), *recon. pending*. The fundamentals of this policy were
    extended to the Lower 700 MHz band in the *Lower 700 MHz Report and
    Order*. *See Lower 700 MHz Report and Order*, 17 FCC Rcd at 1094 n.
    537 and 1095 ¶ 184.

[^46]: *Lower 700 MHz Report and Order*, 17 FCC Rcd at 1095 ¶ 184.

[^47]: *Id.* at 1096 n. 549.

[^48]: *Id.*

[^49]: Auction Reform Act of 2002, Pub. L. No. 107-195, 116 Stat. 715
    ("Auction Reform Act").

[^50]: *Id.*, Section 6(a).

[^51]: A Letter of Understanding ("LOU") with Canada recognized U.S.
    plans to use this band for other than broadcasting services, and
    notes that Canada is independently considering a reduction of the
    spectrum in this band allocated to television. This LOU also
    specifically provides for non-broadcast allocations and services in
    the 746-806 MHz bands (Channels 60-69) by establishing criteria to
    protect DTV stations and analog TV stations established in
    accordance with the existing TV Agreement (Nov. 3, 1993 -- Jan. 5,
    1994). The FCC and Mexico's Secretariat of Communications and
    Transportation have signed a Memorandum of Understanding ("MOU")
    that establishes procedures for implementing digital television
    (DTV) service along the United States/Mexico border and approves all
    five DTV stations in the U.S./Mexico border area slated to begin
    service in November 1998 and May 1999. The MOU, which covers DTV
    operations in the area extending 275 kilometers on either side of
    the U.S./Mexico common border, contains the following provisions: a
    list of mutually acceptable second channel DTV allotments for each
    country; procedures to be used for notifying each administration of
    plans to implement DTV service relative to an allotment; and the
    methods to be used by each administration in evaluating the
    acceptability of proposed DTV facilities.

[^52]: Agreements affecting the use of this band between the United
    States, Canada and Mexico may be referenced on the internet at
    http://www.fcc.gov/ib/pnd/agree/.

[^53]: 47 C.F.R. § 27.60; *see also* Section I.B.3 of this Public
    Notice.

[^54]: 47 C.F.R. § 1.2105.

[^55]: 47 C.F.R. Ch. 1, Subpart I.

[^56]: 47 C.F.R. §§ 1.1305-1.1319.

[^57]: Banks First Comments at 1-3; *see also* Banks Second Comments at
    3-5, 6*.*

[^58]: *Id*. (quoting Auction Reform Act of 2002, Pub. L. No. 107-195,
    116 Stat. 715 (2002), codified as amended at 47 U.S.C. §
    309(j)(15)).

[^59]: Banks First Comments at 2-3.

[^60]: Banks Second Comments at 6.

[^61]: Qualcomm First Comments at 1-3; *see also* C&S Reply Comments at
    1-3; Qualcomm First Reply Comments at 1-3; and Qualcomm Second Reply
    Comments at 1-2.

[^62]: 47 U.S.C. § 309(j)(15) (B).

[^63]: *Id*.

[^64]: 47 U.S.C. § 309(j)(15)(C)

[^65]: 47 U.S.C. § 309(j)(15)(c).

[^66]: Qualcomm First Reply Comments at 2.

[^67]: Section 309(j)(3) of the Communications Act requires the
    Commission to promote the following objectives in designing a system
    of competitive bidding (1) the development and rapid deployment of
    new wireless technology for the benefit of the public without
    administrative or judicial delays; (2) promotion of economic
    opportunity and competition by disseminating licenses among a wide
    variety of applicants including entrepreneurial, small businesses;
    (3) recovery for the public of a portion of the value of radio
    spectrum; and (4) the efficient and intensive use of spectrum. 47
    U.S.C. § 309(j)(3).

[^68]: Qualcomm Second Reply Comments at 2.

[^69]: 47 C.F.R. § 1.2105 requires the disclosure on the short-form of
    the applicant's ownership information as set forth in 47 C.F.R. §
    1.2112. Note that both of these sections were revised in the *Part 1
    Fifth Report and Order*.

[^70]: 47 C.F.R. §§ 1.2105(a)(2)(viii), (c)(1).

[^71]: 47 C.F.R*.* § 1.2105(a)(2)(ix).

[^72]: *See* Section I.B.2, above.

[^73]: 47 C.F.R. § 1.2105(c)(4)(i), (ii).

[^74]: 47 C.F.R. §§ 1.2110(f), 27.702.

[^75]: *Id.; see also* *Lower 700 MHz Report & Order* at ¶¶ 172-73.

[^76]: *700 MHz Report & Order* at ¶¶ 172-73.

[^77]: Aloha Second Comments at 3; *see also* Cavalier Reply Comments at
    2.

[^78]: The Bureau's process for seeking comment on auction procedures is
    not an appropriate forum in which to seek reconsideration of the
    Commission's decision on this issue. Petitions for Reconsideration
    of a final action in a notice and comment rulemaking proceeding must
    be filed within 30 days from the date of public notice of such
    action. *See* 47 C.F.R. § 1.429(a),(d).

[^79]: 47 C.F.R. §§ 1.2110(f), 27.702.

[^80]: *Id.*

[^81]: The eligibility for small business preferences will be determined
    based on the attribution rules in effect at the short-form
    application deadline. *See* *Part 1 Fifth Report and Order*, 15 FCC
    Rcd at 15327, ¶ 67.

[^82]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15330, ¶ 78.

[^83]: *See* Amendment of Part 1 of 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, *Third Report and Order and Second Further Notice
    of Proposed Rule Making*, 13 FCC Rcd 374, 382, ¶ 5 (1997) ("*Part 1
    Third Report and Order*"); *Part 1 Fifth Report and Order,*15 FCC
    Rcd at 15330, ¶ 78.

[^84]: For further guidance on the issue of *de facto* control, see the
    Commission's affiliation rule at 47 C.F.R. § 1.2110(b)(5); *see
    also* Ellis Thompson Corp., *Summary Decision of Administrative Law
    Judge Joseph Chachkin*, 10 FCC Rcd 12554, 12555-56 (1994), in which
    the Commission identified the following factors used to determine
    control of a business: (1) use of facilities and equipment; (2)
    control of day-to-day operations; (3) control of policy decisions;
    (4) personnel responsibilities; (5) control of financial
    obligations; and (6) receipt of monies and profits; Intermountain
    Microwave, 12 FCC 2d. 559 (1963), and Application of Baker Creek
    Communications, L.P., for Authority to Construct and Operate Local
    Multipoint Distribution Services in Multiple Basic Trading Areas,
    *Memorandum Opinion and Order*, 13 FCC Rcd 18709 (1998).

[^85]: 47 C.F.R. § 1.2105.

[^86]: 47 C.F.R. § 1.2105(a)(2)(x).

[^87]: 47 C.F.R. § 1.2105(a)(2)(xi).

[^88]: 47 C.F.R. § 1.2106(a).

[^89]: 47 C.F.R. § 1.2105(a).

[^90]: 47 C.F.R. § 1.2105; *see also* Two Way Radio of Carolina, Inc.,
    *Memorandum Opinion and Order*, 14 FCC Rcd 12035 (1999).

[^91]: 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) ("*Part 1 Order"*).

[^92]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15316-17, ¶¶
    40-42; 47 C.F.R. § 1.2106(a); *see* 47 C.F.R. §§1.2105(a)(2)(xi).

[^93]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15316-17, ¶¶
    40-42.

[^94]: *Auction No. 49 Comment Public Notice* at 2; *see also* *Auction
    No. 49 Revised Comment Public Notice* at 2-3.

[^95]: *Id*.

[^96]: All population figures are from the 2000 U.S. Census, U.S.
    Department of Commerce, Bureau of the Census. *See* Census 2000
    Summary File 1 (SF1) and July 3, 2001, News Releases covering the
    U.S. Virgin Islands, Guam, the Northern Mariana Islands, and
    American Samoa.

[^97]: Results are rounded using our standard rounding procedure:
    results above \$10,000 are rounded to the nearest \$1,000; results
    below \$10,000 but above \$1,000 are rounded to the nearest \$100;
    and results below \$1,000 are rounded to the nearest \$10.

[^98]: Aloha Second Comments at 2; Cavalier Second Reply Comments at 2.

[^99]: *Auction No. 49 Comment Public Notice* at 2; *see also* the
    *Auction No. 49 Revised Comment Public Notice* at 3.

[^100]: Aloha Second Comments at 2; Cavalier Second Reply Comments at 2.

[^101]: *Auction No. 49 Comment Public Notice* at 2; *Auction No. 49
    Revised Comment Public Notice* at 3.

[^102]: Banks First Comments at 1, 3-7; *see also* Banks Second Comments
    at 2, n. 4.

[^103]: *Id*.

[^104]: 47 C.F.R. § 1.2109(b) (emphasis added).

[^105]: *Competitive Bidding Fifth R&O*, 9 FCC Rcd 5532, 5565 ¶ 79
    (1994) (citing *Competitive Bidding Second R&O*, 9 FCC rcd 2348,
    2383-84 ¶ 204 (1994).

[^106]: *Competitive Bidding Fifth R&O*, 9 FCC Rcd at 5565 n. 55 ("If
    only a small number of relatively low-value licenses are to be
    re-auctioned and only a short time has passed since the initial
    auction, the Commission may choose to offer the license to the
    highest losing bidders because the cost of running another auction
    may exceed the benefits.")

[^107]: *Part 1 Third R&O and Second FNPRM*, 13 FCC Rcd 374, 462 ¶ 153
    (1997).

[^108]: Activity rule waivers, when applicable, allow each bidder a
    limited number of exceptions to this requirement.

[^109]: 47 C.F.R. § 1.2105(c).

[^110]: Letter to Messrs. Mason and Northrop, from Kathleen O'Brien Ham,
    Deputy Chief, Wireless Telecommunications Bureau, Federal
    Communications Commission, 16 FCC Rcd 3615 ("*Harbor Wireless*")
    (denying a request to offer an auction participant three licenses on
    which it held the high bid prior to submission and withdrawal of
    higher bids by another bidder prior to close of the auction).

[^111]: *Auction No. 49 Comment Public Notice* at 3; *see also* the
    *Auction No. 49 Revised Comment Public Notice* at 2-3.

[^112]: *Auction No. 49 Comment Public Notice* at 3; *see also* the
    *Auction No. 49 Revised Comment Public Notice* at 2-3.

[^113]: When monitoring activity for determining when to change stages,
    we may consider the percentage of bidding units of the licenses
    receiving new high bids, excluding any FCC-held licenses.

[^114]: *Auction No. 49 Comment Public Notice* at 4; see also the
    *Auction No. 49 Revised Comment Public Notice* at 2-3.

[^115]: Aloha Second Comments at 2; *see also* Cavalier Second Reply
    Comments at 2*.*

[^116]: *Auction No. 49 Comment Public Notice* at 10; see also the
    *Auction No. 49 Revised Comment Public Notice* at 2-3.

[^117]: *Id.*

[^118]: Aloha Second Comments at 2; Cavalier Second Reply Comments at 2.

[^119]: *Auction No. 49 Comment Public Notice* at 4; *see also* *Auction
    No. 49 Revised Public Notice at 2-3.*

[^120]: Aloha Second Comments at 2; Cavalier Second Reply Comments at 2.

[^121]: Aloha and Cavalier support the Bureau's position concerning
    Round Structure. *See* Aloha Second Comments at 2; Cavalier Second
    Reply Comments at 2.

[^122]: *See* Balanced Budget Act, section 3002(a), 47 U.S.C. §
    309(j)(4)(F).

[^123]: *See* *Part 1 Third Report and Order*, 13 FCC Rcd 374, 455-456 ¶
    141 (1997)*.*

[^124]: *Id*.

[^125]: *Id*.

[^126]: *Auction No. 49 Comment Public Notice* at 5; see also *Auction
    No. 49 Revised Comment Public Notice* at 3.

[^127]: All population figures are from the 2000 U.S. Census, U.S.
    Department of Commerce, Bureau of the Census. *See* Census 2000
    Summary File 1 (SF1) and July 3, 2001, News Releases covering the
    U.S. Virgin Islands, Guam, the Northern Mariana Islands, and
    American Samoa.

[^128]: Results are rounded using our standard rounding procedure:
    results above \$10,000 are rounded to the nearest \$1,000; results
    below \$10,000 but above \$1,000 are rounded to the nearest \$100;
    and results below \$1,000 are rounded to the nearest \$10.

[^129]: *Auction 49 Comment Public Notice* at 5-6; *see also* the
    *Auction No. 49 Revised Comment Public Notice* at 3.

[^130]: Harbor Wireless Comments at 2-4; Aloha First Reply Comments at
    2.

[^131]: C&S stated that if the D block licenses are included in Auction
    No. 49, the Bureau should also lower the minimum opening bid
    associated with those licenses. C&S Comments at 1-2.

[^132]: *Auction No. 49 Comment Public Notice* at 6-9; *see also* the
    *Auction No. 49 Revised Comment Public Notice* at 2-3.

[^133]: *Id*.

[^134]: Aloha Second Comments at 2; Cavalier Second Reply Comments at 2.

[^135]: Bidders must have sufficient eligibility to place a bid on the
    particular license. *See* Section III.D.3 "Amount of Upfront
    Payment," *supra*.

[^136]: *See* Section IV.B.6 "Bid Withdrawal and Bid Removal," *infra*.

[^137]: Aloha Second Comments at 2; Cavalier Second Reply Comments at 2.

[^138]: *See* Section I.C. "Activity Rules," *supra*.

[^139]: *Auction No. 49 Comment Public Notice* at 9; *see also* *Auction
    No. 49 Revised Public Notice at* 2-3.

[^140]: Aloha Second Comments at 2; Cavalier Second Reply Comments at 2.

[^141]: Bidders must have sufficient eligibility to place a bid on the
    particular license. *See* Section III.D.3 "Amount of Upfront
    Payment," *infra*.

[^142]: *Auction No. 49 Comment Public Notice* at 9-10; *see also
    Auction No. 49 Comment Public Notice* at 2-3.

[^143]: Aloha Second Comments at 2; Cavalier Second Reply Comments at 2.

[^144]: The Bureau retains the discretion to lower the minimum
    acceptable bid on such licenses in the next round or in later
    rounds.

[^145]: 47 C.F.R. §§ 1.2104(g), 1.2109.

[^146]: The payment will equal the lower of: (1) the difference between
    the net withdrawn bid and the subsequent net winning bid; or (2) the
    difference between the gross withdrawn bid and the subsequent gross
    winning bid. *See* 47 C.F.R. § 1.2104(g)(1).

[^147]: See following paragraph for discussion of interim bid withdrawal
    payments.

[^148]: *See* *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15302, ¶
    15; 47 C.F.R. § 1.2104(g)(1).

[^149]: *See Part 1 Fifth Report and Order*, 15 FCC Rcd at 15302, ¶ 15.

[^150]: 47 C.F.R. § 1.2107(b).

[^151]: In the Matter of Qualcomm Incorporated Petition for Declaratory
    Ruling Giving Effect to the Mandate of the District of Columbia
    Circuit Court of Appeals, *Order*, 16 FCC Rcd 4042 (2000).

[^152]: *Id. See also* Qualcomm, Inc. Petition for Waiver of Certain
    Terms and Conditions of its Auction Discount Voucher, *Order*, FCC
    02-321, WT Docket No. 02-234 (WTB, rel. Nov. 27, 2002).

[^153]: *See* Supplement to Public Notice Released August 22, 2001 By
    Wireless Telecommunications Bureau Announcing It Is Prepared to
    Grant Four C and F Block Broadband Personal Communications Services
    (PCS) Licenses Upon Full and Timely Payment, Auction Event No. 35,
    DA 01-2071, *Public Notice*, 16 FCC Rcd 16,025 (2001). All of the
    terms and conditions applicable to Qualcomm's use of the ADV shall
    apply to its use by a transferee, except that a transferee may not
    transfer the ADV to an entity other than back to Qualcomm. *See* In
    the Matter of Qualcomm Incorporated Petition for Declaratory Ruling
    Giving Effect to the Mandate of the District of Columbia Circuit
    Court of Appeals, *Order*, 16 FCC Rcd 4042 (2000); *see also* Letter
    from Thomas J. Sugrue, Chief, Wireless Telecommunications Bureau,
    Federal Communications Commission, to Veronica M. Ahern, Attorney
    for Qualcomm Incorporated (December 22, 2000).

[^154]: *See* "Wireless Telecommunications Bureau Reminds Filers of
    Effective Date for Mandatory Electronic Filing of FCC Form 602,"
    *Public Notice*, DA 02-3156, (rel. November 14, 2002); *see also* 47
    C.F.R. § 1.913.

[^155]: *See* Extending Wireless Telecommunications Services to Tribal
    Lands, WT Docket No. 99-266, *Report and Order and Further Notice of
    Proposed Rule Making*, 15 FCC Rcd 11794 (2000); Wireless
    Telecommunications Bureau Announces Availability of Bidding Credits
    For Providing Wireless Services To Qualifying Tribal Lands, *Public
    Notice*, 15 FCC Rcd 18351 (2000); Wireless Telecommunications Bureau
    Releases Additional Information Regarding the Procedures for
    Obtaining a Tribal Lands Bidding Credit and List of Tribal Lands,
    *Public Notice*, DA 00-2836, (rel. December 14, 2000); Wireless
    Telecommunications Bureau Announces Enhancements to the Universal
    Licensing System to Help Winning Bidders of FCC Auctions File for
    Tribal Land Bidding Credits, *Public Notice*, DA 01-613, (rel. March
    8, 2001).

[^156]: 47 C.F.R. § 1.2109(d).