DA 05-2543

September 30, 2005

**AUCTION OF LOW POWER TELEVISION**

**CONSTRUCTION PERMITS CLOSES**

**Winning Bidders Announced for Auction No. 81**

Down Payments due October 31, 2005

FCC Forms 346 or 301-CA due October 31, 2005

**Report No. AUC-05-81-H (Auction No. 81)**

On September 26, 2005, the Federal Communications Commission completed
the auction of 113 construction permits for certain low power television
(LPTV), television translator and Class A television broadcast stations
(Auction No. 81), raising (in net bids) a total of \$836,100. In this
auction, 39 winning bidders won a total of 90 permits. This public
notice provides detailed information concerning winning bidders, down
payments, deposits and/or refunds, long-form application (FCC Form 346
or 301-CA) filing requirements, requests for rule waivers, and licensing
matters. Key information appears in the following attachments:

**Attachment A:** "Winning Bids" lists winning bidders and both their
total gross and net winning bid amounts.

> **Attachment B:** "Bidder Payment/Refund" lists any down payments and
> final payments owed by winning bidders, if any.
>
> **Attachment C: "**Withdrawal Payment Report" lists bid withdrawal
> payments owed by bidders, if any**.**

A copy of this public notice will be sent via overnight delivery to each
winning bidder.

## Down Payments

In order to alleviate any undue burden caused by post-auction deadlines
on any winning bidder affected by Hurricane Rita and/or Hurricane
Katrina, the down payment deadline will be **October 31, 2005**.[^1]
Before **6:00 p.m. Eastern Time (ET) on October 31, 2005**, winning
bidders in Auction No. 81 must have on deposit with Mellon Bank in
Pittsburgh, Pennsylvania, enough funds to cover 1) down payments on
winning bids, and 2) payments for withdrawn bids, if applicable.[^2] If
a winning bidder's upfront payment is not sufficient to meet both of
these requirements, the winning bidder must deposit additional
funds.[^3]

The amount now due from each winning bidder, if any, is set out in the
"Additional Amount Due after Upfront Payment Balance Applied Due by
October 31, 2005" column of **Attachment B**.[^4] **Note that a payment
and FCC Form 159 are necessary only if a winning bidder's upfront
payment does not cover the required total of down payments and withdrawn
bid payments (as reflected in Attachment B).** Each winning bidder's
total deposits must be a total of any withdrawal payments (if
applicable) plus twenty percent of the net amount of its winning bids.

## Final Payments

Upon resolution, favorable to the winning bidders, of matters raised in
petitions to deny and/or any other technical or legal issues raised by
the Forms 346 or 301-CA applications,[^5] the Commission will issue a
public notice announcing that it is prepared to award the construction
permits to the winning bidders.[^6] Within ten business days after the
date of that public notice, the winning bidders will be required to make
full payment of the balance of their winning bids.[^7] Broadcast
construction permits will be granted only after the full and timely
payment of winning bids and any applicable late fees, in accordance with
Section 1.2109(a).[^8]

##  Method of Payment 

All payments must be in U.S. dollars and made in the form of a wire
transfer. No personal checks, credit card payments, or other forms of
payment will be accepted. All payments must be accompanied by a
completed FCC Remittance Advice Form (FCC Form 159).[^9] If applicable,
a partially completed copy of the FCC Form 159 will be sent to winning
bidders to facilitate submission of the correct down payment. **Please
note, however, that winning bidders are responsible for insuring
submission of the correct down payment, timely filing of an accurate and
complete FCC Form 159, and obtaining confirmation from their financial
institution that Mellon Bank has timely received their down payment and
deposited it into the proper account**.

Questions concerning the calculation and submission of down and final
payments, the FCC Form 159, and refunds should be directed to Gail
Glasser at (202) 418-0578.

**Wire transfers for down payments must be received by Mellon Bank
before 6:00 p.m. ET on October 31, 2005**. Winning bidders should
coordinate with their bankers ahead of time regarding their wire
transfers, and allow sufficient time for the wire transfer to be
**initiated and completed prior to the deadline.** To submit funds by
wire transfer, winning bidders will need the following information:

> ABA Routing Number: 043000261
>
> Receiving Bank: Mellon Pittsburgh
>
> 500 Ross Street
>
> Pittsburgh, PA 15262
>
> BNF: FCC Account Number 911-6106
>
> OBI Field: (Skip one space between each information item) "AUCTIONPAY"
>
> APPLICANT'S FCC REGISTRATION NUMBER (FRN): (same as FCC Form 159,
> block 21)
>
> PAYMENT TYPE CODE: (same as FCC Form 159, block 24A: "A81D")
>
> FCC CODE 1: (same as FCC Form 159, Block 28A: "81")
>
> PAYOR NAME: (same as FCC Form 159, Block 2)

LOCKBOX NO.: #358850

At least one hour before placing the order for the wire transfer (but on
the same business day), winning bidders must send by facsimile the
completed FCC Form 159 to Mellon Bank at (412) 209-6045. Proper
completion of the FCC Form 159 is critical to ensuring correct credit of
bidder deposits. **Winning bidders must use the same FCC Registration
Number (FRN) used on their FCC Form 175.**

**Failure to complete the down payment on or before October 31, 2005,
will result in default. *See* Section D.2., below.**

##  Withdrawal, Default and Disqualification Payments

The Commission imposes payments on bidders that withdraw provisionally
winning bids during the course of an auction, those that default on
payments due after an auction closes, and those that are
disqualified.[^10]

*1.* [Bid Withdrawal Payments]{.underline}*.* A bidder (Bidder X) that
withdraws a provisionally winning bid during the course of an auction is
subject to a bid withdrawal payment equal to the difference between the
amount of the withdrawn bid and the amount of the subsequent winning
bid. No withdrawal payment will be assessed for a withdrawn bid if
either the subsequent winning bid or any of the intervening subsequent
withdrawn bids equals or exceeds that withdrawn bid. If a provisionally
winning bid is withdrawn on a construction permit that remains unsold at
the close of the auction, Bidder X will be required to make an interim
payment equal to three percent of the net amount of the withdrawn
bid.[^11] This payment amount is deducted from any upfront payments or
down payments that Bidder X has deposited with the Commission. If, in a
subsequent auction, that construction permit receives a valid bid in an
amount equal to or greater than the withdrawn bid amount, then no final
bid withdrawal payment will be assessed, and upon appropriate request,
the Commission will refund the interim three percent payment. If, in a
subsequent auction, the winning bid amount for that construction permit
is less than Bidder X's withdrawn bid amount, then Bidder X will be
required to make a final bid withdrawal payment equal to either the
difference between Bidder X's net withdrawn bid and the subsequent net
winning bid, or the difference between Bidder X's gross withdrawn bid
and the subsequent gross winning bid, whichever is less. The three
percent interim payment will be applied toward the withdrawal payment.

**Attachment C** identifies bidders that owe withdrawal payments to the
Commission as a result of bids withdrawn in Auction No. 81. Any upfront
payments or down payments that the withdrawing bidder has deposited with
the Commission will first be applied to satisfy the withdrawal payment
amount before being applied towards a winning bidder's down
payment.[^12]

*2.* [Bid Default/Disqualification Payments]{.underline}*.* If a winning
bidder defaults or is disqualified after the close of the auction, the
defaulting bidder will be subject to the same bid withdrawal payment
obligations as described above, plus an additional payment equal to
three percent of the subsequent winning bid or three percent of the
defaulted bid, whichever is less. Where a bidding credit applies to the
winning bid in either the original or the subsequent auction, the
calculation of the three percent payment is based on the smaller of the
two gross bids or smaller of the two net bids, whichever basis (gross or
net) was used to figure the first component.[^13] Thus, if the
difference between the gross bids is less than the difference between
the net bids, the three percent payment will be computed on the lower of
the gross bids. If the difference between the net bids is less than or
equal to the difference between the gross bids, the three percent
payment will be computed on the lower of the net bids. However, if both
the difference between the gross bids and the difference between the net
bids are less than or equal to zero, the three percent payment will be
computed on the lower of the net bids.

If a winning bidder fails to remit the required down payment within ten
business days after the Commission has released this public notice, in
this case by October 31, 2005, the bidder will be deemed to have
defaulted, its application will be dismissed, and it will be liable for
a default payment as described above.[^14] In such event, the
Commission, at its discretion, may either auction the spectrum to
existing or new applicants, or offer it to the other highest bidders (in
descending order) at their final bids.[^15]

If a winning bidder fails to pay the balance of its winning bids in a
lump sum by the applicable deadline as specified by the Commission, it
will be allowed to make payment within ten business days after the
payment deadline provided that it also pays a late fee equal to five
percent of the amount due.[^16] When a winning bidder fails to pay the
balance of its winning bid plus the late fee by the late payment
deadline, it is considered to be in default on its construction
permit(s) and subject to the applicable default payments.[^17]

Construction permits will be awarded upon completion of the review of
each applicant\'s long-form application, but only after the full and
timely payment of winning bids and any applicable late fees.[^18] If a
winning bidder defaults or is disqualified for any reason after having
made the required down payment, it will be deemed to have defaulted and
will be liable for the payment set forth in Section 1.2104(g)(2).[^19]
In such event, the Commission may either auction the spectrum to
existing or new applicants or offer it to the other highest bidders (in
descending order) at the amount of their final bids.[^20]

Additionally, bidders that are found to have violated the antitrust laws
or the Commission's rules in connection with their participation in the
competitive bidding process may be subject, in addition to any other
applicable sanctions, to forfeiture of their upfront payment, down
payment, or full bid amount, and may be prohibited from participating in
future auctions.[^21]

## Refund of Excess Payments 

Upfront monies on deposit that are in excess of any applicable down
payment, withdrawal and/or default payment amounts will be refunded to
the payer of record as identified on the FCC Form 159 promptly upon
receipt of the necessary wire transfer instructions. Applicants must
provide this information by accessing the "See Wire Transfer for Refund
Purposes" link under the Post-Auction section of the My Auctions Page or
by sending by facsimile such instructions to Gail Glasser of the Office
of the Managing Director at (202) 418-2843. Any questions concerning
refunds should be referred to Gail Glasser at (202) 418-0578.

## FCC Forms 346 or 301-CA 

***Deadline for Filing*:** Before **6:00 p.m. ET on October 31, 2005,**
winning bidders must submit electronically a properly completed
long-form application (FCC Form 346 or 301-CA, as appropriate),
including required exhibits, covering each construction permit for which
they were the winning bidder.[^22]

***Where and How to File:*** Applicants must file accurate and complete
FCC Form 346 or 301-CA applications *electronically* through the Media
Bureau's Consolidated Database System (CDBS) online electronic forms
system.[^23] In accordance with the Commission's rules, electronic
filing of FCC Form 346 or 301-CA must be accompanied by the appropriate
application filing fee,[^24] and information submitted on the new FCC
Form 346 or 301-CA applications by winning bidders must not constitute a
major change from any information specified in the winning bidder\'s
previously filed FCC Form 175.[^25] Instructions for use of the Media
Bureau\'s electronic filing system are available in the CDBS User's
Guide, which can be accessed from the electronic filing web site at:

[**http://www.fcc.gov/mb/elecfile.html**](http://www.fcc.gov/mb/elecfile.html)

The Guide can be accessed by clicking on the CDBS link at the electronic
filing web site, above. This action will take the user to the Media
Bureau's CDBS Electronic Filing System site. The user should then click
on the "Go to CDBS User's Guide" link. Internet access to the CDBS
online electronic forms filing system requires, at a minimum, a browser
such as Netscape version 3.04 or Internet Explorer version 3.51, or
later. When filing FCC Form 346 or 301-CA, applicants must select "Long
Form Application for LPTV Auction No. 81" on the Pre-form for Form 346
or 301-CA (Question 2 -- Application Purpose). For assistance with
electronic filing, call the Video Division Help Desk at (202) 418-2662.

**The staff will return applications not submitted in accordance with
the procedures described above. An applicant that fails to submit the
required long form application before the specified deadline, and fails
to establish good cause for any late-filed submission, shall be deemed
to have defaulted and shall be subject to the payments set forth in
Section 1.2104(g) of the Commission's rules.**[^26] **Applicants are
encouraged to pay the FCC Form 346 or 301-CA application filing fee
electronically using CDBS filing system in order to avoid processing
delays.**[^27]

## Additional Post-Auction Filing Requirements 

Section 73.5005(a) of the Commission's rules[^28] requires that
post-auction long-form applications include the exhibits mandated by:
Section 1.2107(d) (providing a detailed explanation of the terms,
conditions, and parties involved in any bidding consortium, joint
venture, partnership, or other agreement or arrangement the applicant
had entered into relating to the competitive bidding process);[^29]
Section 1.2110(j) (requiring an applicant claiming designated entity
status to describe how it satisfies the eligibility requirements for
such designated entity status, and to list and summarize all agreements
that affect designated entity status, such as partnership agreements,
shareholder agreements, management agreements, and any other agreements,
including oral agreements, that establish that the designated entity
will have both *de facto* and *de jure* control of the entity);[^30] and
Section 1.2112(a) (requiring that each long-form application fully
disclose ownership information and the real party or parties in interest
in the applicant or application).[^31]

##  {#section .unnumbered}

## Maintaining Accuracy of Information

After the auction closes, applicants are required to make all changes by
filing FCC Forms 346 or 301-CA. Applicants are no longer required to
maintain the accuracy and completeness of information furnished on their
FCC Form 175 and exhibits.

## Application Processing and Construction Permit Grant

Pursuant to 47 C.F.R. §§ 1.2108(b) and 73.5006, and the Balanced Budget
Act of 1997,[^32] interested parties will have **fifteen (15) days** to
file petitions to deny after the Commission releases a public notice
announcing the FCC Forms 346 or 301-CA have been accepted for
filing.[^33] An applicant may file an opposition to any petition to deny
within **fifteen (15) days** of the filing deadline for petitions to
deny.[^34] Replies must be filed within **ten (10) days** of the filing
deadline for oppositions.[^35]

[Frivolous Pleadings]{.underline}*.* The Commission reminds parties to
our proceedings and their attorneys that the Commission intends to use
its authority fully to deter the filing of frivolous pleadings.[^36] If
the Commission determines an applicant is qualified and there is no
substantial and material issue of fact concerning that determination,
the Commission will issue a public notice announcing that it is prepared
to grant the application conditioned upon the full and timely payment of
the remaining balance of the applicant's winning bid. Once the
Commission has received full payment of the applicant's winning bid, it
will grant the construction permit.

## Anti-collusion Rules

To ensure the competitiveness of the auction process, the Commission's
rules prohibit competing applicants from communicating with each other
about bids, bidding strategies, or settlements, unless such applicants
have identified each other on their FCC Form 175 applications as parties
with whom they have entered into agreements under section
1.2105(a)(2)(viii).[^37] As explained more fully in the *Auction No. 81
Qualified Bidders Public Notice*,[^38] this prohibition began at the
short-form application filing deadline and ends at the down payment
deadline, which is October 31, 2005.[^39] The prohibition applies to all
applicants in Auction No. 81 regardless of whether an applicant became a
qualified bidder or actually participated in the bidding, and the
prohibition continues until the down payment deadline regardless of
whether a winning bidder needs to make an additional payment by the down
payment deadline. Applicants certified their compliance with Section
1.2105(c) when their FCC Form 175 short-form applications were signed.

## Return of SecurID Cards

Bidders are encouraged to return for recycling their SecurID cards to
the FCC by October 31, 2005. The Commission will send bidders a copy of
this public notice and a pre-addressed, stamped envelope. All bidders
should use the envelope to return the cards now that the auction is
closed. Please note that each SecurID card is tailored to a specific
auction. Therefore, the cards issued for this auction will not work for
future auctions.

\* \* \* \* \*

**For further information, contact**

+------------------------------+---------------------------------------+
| News Media:                  | Chelsea Fallon at (202) 418-7991      |
+------------------------------+---------------------------------------+
|                              |                                       |
+------------------------------+---------------------------------------+
| Technical Support Hotline:   | Technical Support Personnel at        |
|                              |                                       |
|                              | \(877\) 480-3201, option nine; (202)  |
|                              | 414-1250;                             |
|                              |                                       |
|                              | or (202) 414-1255 (text telephone     |
|                              | (TTY))                                |
+------------------------------+---------------------------------------+
|                              |                                       |
+------------------------------+---------------------------------------+
| Office of the Managing       | Gail Glasser at (202) 418-0578        |
| Director                     |                                       |
|                              |                                       |
| Auctions Accounting Group    |                                       |
|                              |                                       |
| (Payment, FCC Form 159 and   |                                       |
| refund questions)            |                                       |
+------------------------------+---------------------------------------+
|                              |                                       |
+------------------------------+---------------------------------------+
| Media Bureau,                | Shaun Maher, Attorney, at (202)       |
|                              | 418-1600                              |
| Video Division               |                                       |
|                              | Hossein Hashemzadeh, Associate Chief, |
| (FCC Forms 346 or 301-CA     | at (202) 418-1600                     |
| questions)                   |                                       |
+------------------------------+---------------------------------------+
|                              |                                       |
+------------------------------+---------------------------------------+
| Wireless Telecommunications  | Linda Sanderson, Project Manager, at  |
| Bureau, Auctions and         | (717) 338-2888                        |
| Spectrum Access Division     |                                       |
| (Auction-related questions)  | Lynne Milne, Attorney at (202)        |
|                              | 418-0660                              |
+------------------------------+---------------------------------------+

To request materials in accessible formats (Braille, large print,
electronic files, audio format) for people with disabilities, send an
e-mail to <fcc504@fcc.gov> or call the Consumer and Governmental Affairs
Bureau at (202) 418-0530 or (202) 418-0432 (TTY).

\- FCC -

[^1]: The Media Bureau and Wireless Telecommunications Bureau previously
    announced that the deadline for winning bidders to submit their down
    payments would be ten business days after release of the auction
    closing notice. See "Auction of Low Power Television Construction
    Permits Scheduled for September 14, 2005, Notice and Filing
    Requirements, Minimum Opening Bids, Upfront Payments and Other
    Procedures for Auction No. 81," *Public Notice*, DA 05-1337, at 31
    (May 20, 2005) ("*Auction No. 81 Procedures Public Notice*").

[^2]: *See* 47 C.F.R. § 1.2107(b).

[^3]: *Id*. In the event a bidder has withdrawn a bid(s) and is subject
    to a bid withdrawal payment(s), the bidder's upfront payment will be
    first applied to satisfy the withdrawal payment(s) before being
    applied toward its down payment. *See* 47 C.F.R. § 1.2104(g)(1).

[^4]: On September 19, 2005, Three Angels Broadcasting Network, Inc.
    (Three Angels) amended its short-form application (FCC Form 175) to
    report that it no longer claims the 35 percent new entrant bidding
    credit indicated on its originally-submitted short-form application.
    Three Angels claims eligibility for a 25 percent new entrant bidding
    credit. Although the FCC\'s Integrated Spectrum Auction System
    (\"ISAS\") results files after September 19, 2005 continued to show
    net bid amounts for Three Angels that reflected a 35 percent bidding
    credit, Three Angels is eligible only for a 25 percent new entrant
    bidding credit for any construction permit won in Auction No. 81.
    For this reason, the net bid amounts for Three Angels listed in the
    attachments to this public notice reflect a 25 percent new entrant
    bidding credit.

[^5]: A winning bidder that is found unqualified to be a Commission
    licensee will be deemed to have defaulted, its application will be
    dismissed, and it will be liable for the payment set forth in
    Sections 1.2104(g)(2) or 1.2104(g)(3) of the Commission's rules,
    whichever is applicable. *See* 47 C.F.R. §§ 1.2104(g), 1.2109(c).

[^6]: *See* 47 C.F.R. § 73.5006(d).

[^7]: 47 C.F.R. §§ 1.2109 and 73.5003.

[^8]: 47 C.F.R. § 1.2109(a).

[^9]: Copies of the FCC Form 159 may be obtained by calling the
    Commission's Forms Distribution Center at 1-800-418-3676 (outside
    Washington, D.C.) or (202) 418-3676 (in the Washington D.C. area).
    Copies of the FCC Form 159 can also be obtained via the Internet
    (<http://www.fcc.gov/formpage.html>) or by calling from the handset
    of a facsimile machine the Commission's Fax Information System at
    (202) 418-2830.

[^10]: *See* 47 C.F.R. §§ 1.2104(g), 1.2109.

[^11]: *See* 47 C.F.R. § 1.2104(g)(1); Amendment of Part 1 of the
    Commission's Rules -- Competitive Bidding Procedures, WT Docket No.
    97-82, *Order on Reconsideration of the Third Report and Order*,
    *Fifth Report and Order, and Fourth Further Notice of Proposed Rule
    Making*, 15 FCC Rcd 15293, 15301-02 (2000) (\"*Part 1 Fifth Report
    and Order*\"); *see* Implementation of Section 309(j) of the
    Communications Act -- Competitive Bidding, PP Docket No. 93-253,
    *Fifth Report and Order*, 9 FCC Rcd 5532, 5563 n.51 (1994); *see
    also* Phase II 220 MHz Service Auction Closes, Winning Bidders in
    the Auction of 908 Phase II 220 MHz Service Licenses, *Public
    Notice*, 14 FCC Rcd 605 (1999).

[^12]: *See* 47 C.F.R. § 1.2104(g)(1).

[^13]: *See* 47 C.F.R. § 1.2104(g)(2).

[^14]: *See* 47 C.F.R. §§ 1.2104(g), 1.2109.

[^15]: *See* 47 C.F.R. § 1.2109(b).

[^16]: 47 C.F.R. §§ 1.2109(a), 73.5003.

[^17]: *See* 47 C.F.R. §§ 1.2104(g), 1.2109(a), 1.2109(c).

[^18]: *See* 47 C.F.R. §§1.2109(a), 73.5003.

[^19]: *See* 47 C.F.R. §§ 1.2104(g)(2), 1.2109(a), 1.2109(c).

[^20]: *See* 47 C.F.R. § 1.2109(c).

[^21]: *See* 47 C.F.R. § 1.2109(d).

[^22]: *See* 47 C.F.R. § 73.5005(a).

[^23]: For information regarding electronic application filing, refer to
    "Mass Media Bureau Implements Mandatory Electronic Filing of FCC
    Forms 301, 314, and 315," *Public Notice*, 16 FCC Rcd 3989 (MMB
    2001).

[^24]: *See* Implementation of Section 309(j) of the Communications Act
    -- Competitive Bidding for Commercial Broadcast and Instructional
    Television Fixed Service Licenses, MM Docket No. 97-234, *First
    Report and Order*, 13 FCC Rcd 15920, 15984 ¶ 164 (1998).

[^25]: *See* 47 C.F.R. §§ 73.3522(a), 73.3572.

[^26]: *See* 47 C.F.R. §§ 1.2104(g), 1.2107(c), 73.5005(c).

[^27]: Applicants also are reminded that the Commission's "red light
    rule" implementing the Debt Collection Improvement Act has become
    effective. 47 C.F.R. § 1.1910. Under the red light rule, the
    Commission will not process applications and other requests for
    benefits filed by parties that have outstanding debts owed to the
    Commission. *Id.; see also* 47 C.F.R. § 1.2109(c) (post-auction
    defaults).

[^28]: 47 C.F.R. § 73.5005(a).

[^29]: 47 C.F.R. § 1.2107(d).

[^30]: 47 C.F.R. § 1.2110(j).

[^31]: 47 C.F.R. § 1.2112(a).

[^32]: Pub. L. 105-33, 111 Stat. 251 (1997).

[^33]: 47 C.F.R. § 73.5006(b).

[^34]: 47 C.F.R. § 73.5006(c).

[^35]: *Id.*

[^36]: *See* Commission Taking Tough Measures Against Frivolous
    Pleadings, *Public Notice*, 11 FCC Rcd 3030 (1996).

[^37]: 47 C.F.R. §§ 1.2105(a)(2)(viii), 1.2105(c)(1). *See also*
    Amendment of Part 1 of the Commission\'s Rules -- Competitive
    Bidding Procedures, WT Docket No. 97-82, *Seventh Report and Order*,
    16 FCC Rcd 17546 (2001); *Part 1 Fifth Report and Order*, 15 FCC Rcd
    at 15297-98 ¶¶ 7-8.

[^38]: *See* Auction of Low Power Television Construction Permits, 44
    Bidders Qualified to Participate in Auction No. 81, *Public Notice*,
    DA 05-2359 (September 2, 2005).

[^39]: *Id*.