Before the

**Federal Communications Commission**

**Washington, D.C. 20554**

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**ORDER**

**Adopted: April 11, 2002 Released: April 11, 2002**

By the Deputy Chief, Wireless Telecommunications Bureau:

# introduction

1.  In this Order, the Wireless Telecommunications Bureau ("Bureau")
    makes conforming edits to service-specific competitive bidding
    rules[^1] and portions of the Part 1 general competitive bidding
    rules[^2] in accordance with the authority delegated by the
    Commission in the *Part 1 Fifth Report and Order*.[^3] These
    conforming edits further the Bureau's continuing efforts to
    streamline its procedures in accordance with the Commission's
    biennial regulatory review obligations set forth at section 11(a) of
    the Communications Act of 1934, as amended, and the recommendations
    contained in the *2000 Biennial Staff Report*.[^4] In addition to
    making these conforming edits, we also exercise our delegated
    authority[^5] to make certain ministerial conforming amendments,[^6]
    including edits to correct competitive bidding provisions[^7] that
    were inadvertently altered or deleted by the *Part 1 Third Report
    and Order* and the *Competitive Bidding Sixth Report and Order*.[^8]
    We also remove service-specific provisions that are redundant with
    the Bureau's delegated authority to conduct auctions.[^9] The effect
    of today's action is to eliminate approximately 66 pages of
    redundant or unnecessary rules from the Code of Federal Regulations
    ("C.F.R.").

# BACKGROUND

2.  In the *Competitive Bidding Second Report and Order*, by amending
    Part 1 of the Commission's rules to add a new Subpart Q, the
    Commission established general competitive bidding rules that would
    apply to a variety of spectrum based services licensed by the
    Commission.[^10] In establishing these rules, the Commission
    intended that the general competitive bidding rules would apply to a
    particular service unless it adopted service-specific rules that
    varied from the Part 1 general competitive bidding rules.[^11]
    Subsequently, the Commission adopted competitive bidding rules for a
    number of services.[^12] A consequence of the adoption of these
    service-specific competitive bidding rules was an unnecessary
    variation in procedures across services.[^13] Additionally, portions
    of the Part 1 general competitive bidding rules were repeated almost
    verbatim in the service-specific competitive bidding rules.[^14]
    Accordingly, in 1997, based upon its experience with the competitive
    bidding process, the Commission initiated the Part 1 proceeding to
    establish a uniform set of provisions for all services subject to
    competitive bidding, eliminate unnecessary rules, and provide for a
    more consistent and efficient licensing process.[^15]

3.  In the *Part 1 Fifth Report and Order*, the most recent
    comprehensive Order in the Part 1 proceeding, the Commission
    determined that it had made the majority of the changes contemplated
    by its prior orders.[^16] Therefore, the Commission recognized that
    it was appropriate to commence the next step in the process, *i.e*.,
    eliminating service-specific competitive bidding rules from the
    C.F.R. that have either been superseded by or are redundant with the
    Part 1 general competitive bidding rules.[^17] Accordingly, the
    Commission delegated to the Bureau the authority to make conforming
    edits to the C.F.R. consistent with the Part 1 proceeding.[^18]

# Discussion 

4.  Pursuant to our delegated authority, this Order identifies and
    removes service-specific competitive bidding rules that have been
    superseded or made redundant[^19] by the Part 1 general competitive
    bidding rules.[^20] In those instances in which service-specific
    departures from the Part 1 general competitive bidding rules were
    tailored for a particular service, we retain such rules.[^21] In
    addition, pursuant to the Bureau's delegated authority to make
    ministerial conforming edits[^22] to Commission rules, we restore
    and revise certain rule sections that were inadvertently altered,
    deleted, or misstated.[^23]

5.  As explained below, we modify or remove service-specific competitive
    bidding rules in the following areas: (1) scope of service-specific
    competitive bidding rules; (2) competitive bidding design
    options; (3) competitive bidding mechanisms; (4) bidding application
    and certification procedures, and prohibition of collusion; (5)
    submission of upfront payments; (6) submission of down and full
    payments, and filing of long-form applications; (7) procedures for
    filing petitions to deny against long-form applications; (8) license
    grant, denial, default, and disqualification; (9) designated
    entities; (10) unjust enrichment in license assignment or transfer
    of control; (11) ownership disclosure requirements for short- and
    long-form applications; and (12) definitions.[^24] Also, technical
    edits are made to Commission rules that refer to service-specific
    competitive bidding rules that have been removed or modified.[^25]

6.  [Scope of service-specific competitive bidding rules]{.underline}.
    Each set of service-specific competitive bidding rules contains a
    provision that provides that the general competitive bidding rules
    set forth at Part 1, Subpart Q of the Commission's rules apply
    unless the service-specific rules indicate otherwise. This means
    that service-specific competitive bidding rules are necessary only
    to specify departures from or supplemental procedures to the Part 1
    competitive bidding rules.[^26] We adopt uniform language stating
    this proposition in all services subject to competitive bidding and
    modify the following service-specific rules: 21.950; 22.201; 22.228;
    22.960; 24.301; 24.701; 25.401; 26.201; 27.201; 27.501(a); 27.701;
    73.3572(e)(2),[^27] (f);[^28] 73.5000(a); 80.1251; 90.801; 90.901;
    90.1001; 90.1101; 95.816(a); 100.71; 101.537; 101.1101; 101.1201;
    and 101.1317.[^29]

7.  [Competitive bidding design options]{.underline}. Section 1.2103 of
    the Commission's rules outlines the general competitive bidding
    design options (or the different competitive bidding methodologies)
    for services or classes of services subject to competitive
    bidding.[^30] These competitive bidding design options include:
    simultaneous multiple-round auctions (using remote or on-site
    electronic bidding); sequential multiple-round auctions (using
    either oral ascending or remote and/or on-site electronic bidding);
    sequential or simultaneous single-round auctions (using either
    sealed paper or remote and/or on-site electronic bidding);
    combinatorial (package/contingent) bidding auctions; and real-time
    bidding in all electronic auction designs.[^31] The following
    service-specific rules, which are redundant with all or part of
    section 1.2103, are removed: 21.951(a)-(a)(1); 22.203; 22.961;
    24.702; 26.202; 90.802; 90.902; 90.1003; 100.72; 101.1102; and
    101.1202.[^32]

8.  [Competitive bidding mechanisms]{.underline}. Section 1.2104 of the
    Commission's rules describes the mechanisms used to implement the
    Commission's competitive bidding design provisions.[^33] This rule
    also sets forth the treatment of bid withdrawal, down and full
    payment default,[^34] and bidder disqualification.[^35] The
    following service-specific rules redundant with all or part of the
    competitive bidding design mechanism provisions of section
    1.2104[^36] are modified or removed: 21.951(a)(2)-(c); 22.205;
    22.962; 25.402; 26.203; 27.202; 73.5001; 90.803; 90.903(c)-(f);
    90.1005; 90.1015(b); 100.73; 101.1103; and 101.1203.[^37] Also, the
    following service-specific rules, which conflict or are redundant
    with all or part of the bid withdrawal, down or full payment
    default, and disqualification payment rules of section 1.2104,[^38]
    are removed: 21.959(a)-(b); 22.207; 22.215(b); 22.963; 24.704;
    27.203; 73.5004(a); 90.805; 90.905; 90.1007; 100.74; and
    100.78(b).[^39]

9.  [Bidding application and certification procedures; prohibition of
    collusion]{.underline}. Section 1.2105 of the Commission's rules
    describes the short-form application ("FCC Form 175") and
    certification procedures and the prohibition against applicant
    collusion.[^40] Section 1.2105 sets forth the information and
    certifications that applicants must provide to participate in an
    auction.[^41] This section also prohibits applicants from
    communicating with each other about bids, bidding strategies, or
    settlements if the applicants are bidding on licenses in the same
    geographic area unless applicants are members of bidding
    arrangements identified on a bidder's short-form application.[^42]
    This prohibition period commences at the short-form application
    filing deadline and concludes at the post-auction down payment
    deadline.[^43] The following service-specific rules, which are
    redundant with all or part of the Part 1 short-form application and
    certification procedures in section 1.2105,[^44] are removed in
    whole or in part: 21.952; 22.209; 22.227; 22.964; 24.709(a)(4)-(5);
    26.205; 27.204(a)-(b); 90.806; 90.906; 90.1009; 100.75; 101.531(a);
    101.1104; and 101.1204.[^45] Also, the following service-specific
    rules, which are redundant with all or part of the prohibition on
    collusion in section 1.2105,[^46] are modified or removed in whole
    or in part: 21.953; 25.405; 27.204(c); and 100.79.[^47]

10. [Submission of upfront payments]{.underline}. Section 1.2106 of the
    Commission's rules describes the procedures for submitting upfront
    payments, *i.e*., the sums an applicant that complies with the
    short-form application requirements tenders to the Commission before
    an auction in order to be qualified to bid.[^48] The following
    service-specific rules, which conflict or are redundant with all or
    part of section 1.2106 of the Commission's rules,[^49] are removed
    in whole or in part: 21.954; 22.211(a); 22.965(a); 24.706(a), (c);
    24.711(a)(1); 24.716(a)(1); 26.206; 27.205; 73.5003(a); 90.807(a);
    90.907(a); 90.1011(a); 100.76(a); 101.1105(a); and 101.1205(a).[^50]

11. [Submission of down and full payments, and filing of long-form
    applications]{.underline}. Section 1.2107 of the Commission's rules
    describes the procedures for submitting down and full payments, and
    filing the long-form application ("FCC Form 601").[^51] The down
    payment is the sum that the winning bidder(s) must tender to the
    Commission after the auction closes to bring its total deposit(s) up
    to twenty (20) percent of its high bid(s).[^52] This payment assures
    the Commission that the winning bidder is able to tender the full
    amount of its bid when it later comes due.[^53] Unless otherwise
    specified by public notice, the down payment must be made within
    ten (10) business days after the winning bidder is notified that it
    is the high bidder for a license(s).[^54] The Commission relies upon
    the long-form application to determine whether the winning bidder is
    qualified to be a licensee.[^55] The long-form application must be
    submitted within ten (10) business days after the winning bidder is
    notified that it is the high bidder.[^56] After submission of the
    down payment and long-form application, the winning bidder must
    submit the full payment due on the license(s) within ten (10)
    business days of notification that the license(s) is ready for
    grant,[^57] unless it qualifies to make installment payments.[^58]
    If the winning bidder fails to make the full payment within this
    time period, it is afforded an additional ten (10) day period to
    make full payment, provided that it also pays a late fee equal to
    five (5) percent of the amount due.[^59] The following
    service-specific rules, which conflict or are redundant with all or
    part of section 1.2107 of the Commission's rules,[^60] are modified
    or removed in whole or in part: 21.955(a), (c); 21.958; 22.211(b);
    22.213; 22.965(b); 24.706(b); 24.711(a)(2); 24.716(a)(2); 25.404(a),
    (b); 26.206; 26.207; 27.206; 73.3573(f)(5)(i); 73.5003(b)-(c);
    74.1233(d)(5)(i); 90.807(b); 90.808; 90.907(b); 90.908; 90.1011(b);
    90.1013; 100.76(b); 101.531; 101.1105(b); 101.1205(b); and
    101.1206.[^61]

12. [Procedures for filing petitions to deny against long-form
    applications]{.underline}. Section 1.2108 of the Commission's rules
    describes the timing and procedures for filing petitions to deny a
    winning bidder's long-form application.[^62] The period for filing a
    petition to deny commences after the Commission releases a public
    notice announcing that a long-form application has been accepted for
    filing.[^63] Section 1.2108 also provides that the length of time to
    file a petition to deny may vary on a service-specific basis,[^64]
    but cannot exceed ten (10) days.[^65] The following service-specific
    rules, which conflict or are redundant with all or part of section
    1.2108 of the Commission's rules,[^66] are modified or removed:
    21.957; 90.1025(a); 101.1110; and 101.1207.[^67]

13. [License grant, denial, default, and disqualification]{.underline}.
    Section 1.2109 of the Commission's rules addresses the consequences
    for a winning bidder that fails to timely make a down payment[^68]
    or full payment[^69] on its winning bid(s), withdraws its bid(s)
    after the auction has closed,[^70] violates the federal antitrust
    laws,[^71] or is otherwise found unqualified to be a licensee.[^72]
    The following service-specific rules, which conflict or are
    redundant with all or part of section 1.2109 of the Commission's
    rules,[^73] are modified or removed: 21.959(c)-(e); 22.207; 22.215;
    22.967; 24.708; 24.711(a)(2); 24.716(a)(2); 25.406; 26.208; 27.208;
    73.5004; 90.809(a); 90.909(a)-(b); 90.1015; and 100.78(a).[^74]

14. [Designated entities]{.underline}.[^75] Section 1.2110 of the
    Commission's rules sets forth certain provisions applicable to
    designated entities -- small businesses, businesses owned by members
    of minority groups and/or women, and rural telephone companies.[^76]
    This section also provides the eligibility criteria for small
    businesses, defines terms specific to designated entities, and
    addresses bidding credits and other financial incentives available
    to certain designated entities. The following service-specific
    rules, which are redundant with certain portions of section 1.2110
    of the Commission's rules,[^77] are removed: 21.955(b);
    24.321(a)(7); 24.716(c); 27.210(b)(3)(ii), (c); 27.502(a)(7);
    90.812(a); and 101.538(a)(8).[^78] We also modify or remove the
    following service-specific rules in whole or in part because they
    conflict or are redundant with section 1.2110(b) of the Commission's
    rules,[^79] the Part 1 eligibility criteria for small business
    status: 21.961(b)(2); 22.223(b)(2)-(4); 24.321(a)(3)-(5);
    24.709(a)(2); 24.720(b)(3)-(4); 26.4; 26.210(b); 27.210(b)(3);
    27.502(a)(3)-(5); 80.1252(b)(3)-(4); 90.814(b)(2); 90.912(b)(3);
    90.1021(b)(3); 90.1103(b)(3)-(4); 95.816(c)(3)-(4);
    101.538(a)(5)-(6); and 101.1209(b)(2).[^80] We modify the following
    service-specific rules by changing the term "controlling principal"
    to "controlling interest" to conform the rules with the Commission's
    general competitive bidding rules:[^81] 90.912(b)(1)-(2);
    90.913(a)(1); 90.1021(b)(1)-(2); 90.1023(a)(1); 101.1109(a)(1); and
    101.1112(b)-(e).[^82] Additionally, we modify or remove the
    following service-specific rules in whole or in part because they
    conflict or are redundant with section 1.2110(c)(2) of the
    Commission's rules,[^83] the Part 1 definition of "controlling
    interest": 22.223(e); 22.225(e); 24.321(b); 26.4; 27.502(b);
    80.1252(c); 90.814(g); 90.1103(c); 95.816(d); and 101.538(b).[^84]
    We also modify section 24.709 to clarify its applicability to
    existing licensees.[^85]

15. [Assignment or transfer of control: unjust enrichment]{.underline}.
    Section 1.2111 of the Commission's rules contains the procedures and
    reporting requirements for assigning or transferring licenses.[^86]
    This section also contains the rules for partitioning a license and
    disaggregating spectrum, including the related matters of unjust
    enrichment, bidding credits, installment payments, the length of the
    license term, and construction requirements. The following
    service-specific rules, which are redundant with all or part of
    section 1.2111 of the Commission's rules,[^87] are modified or
    removed in whole or in part: 21.960(b)(5)(i)-(ii), (d)(1);
    22.217(b); 24.711(c); 24.712(c); 24.714(c); 24.716(d); 24.717(c);
    26.210(d); 27.15(c); 27.209(d); 73.5009(a); 90.810(b); 90.812(b);
    90.813(c), (d)(2)(i);[^88] 90.910(b); 90.911(c); 90.1017(b);
    95.823(c)(1); 101.56(i); 101.535(a)(1), (c); 101.1107(e);
    101.1208(b); 101.1319(c); and 101.1323(c).[^89]

16. [Ownership disclosure requirements for short- and long-form
    applications]{.underline}. Section 1.2112 of the Commission's rules
    contains the Commission's ownership disclosure requirements for both
    the short-form application, which is a pre-requisite to
    participation in an auction,[^90] and the long-form application,
    which is filed by the winning bidder(s) to assist the Commission in
    determining whether the winning bidder is qualified to be a
    licensee.[^91] We modify or remove sections 22.225(b);
    90.815(a)-(b); 90.913(a)-(b); 90.1023(a)-(b); and
    101.1109(a)-(b)[^92] because these service-specific rules are
    redundant with the ownership disclosure requirements set forth in
    section 1.2112 of the Commission's rules.[^93] We also modify
    section 73.5009(b) to indicate that the ownership disclosure
    requirements found at section 1.2112(a) do not apply to the
    assignment or transfer of licenses or construction permits in the
    broadcast services subject to competitive bidding.[^94]

17. [Definitions]{.underline}. Section 1.2110 of the Commission's rules
    provides uniform definitions for "affiliate,"[^95] "audits,"[^96]
    "businesses owned by members of minority groups and/or women,"[^97]
    "controlling interests,"[^98] "eligibility for small business
    provisions,"[^99] "gross revenues,"[^100] and "rural telephone
    company."[^101] We modify or remove the following rules in whole or
    in part because they conflict or are redundant with section
    1.2110(c)(5) of the Commission's rules,[^102] the Part 1 definition
    of "affiliate": 21.961(d); 22.223(d); 22.225(e); 24.709(g);
    24.720(l); 26.4; 27.210(d); 90.814(h); 90.815(e); 90.912(d);
    90.913(d)(3); 90.1021(d); 90.1023(e); 90.1323(e); 101.1112(h); and
    101.1209(e).[^103] We modify the definition of "audits" in section
    1.2110(m)[^104] to clarify that all applicants and licensees
    claiming designated entity status are subject to audits.
    Accordingly, the following service-specific rules, which are
    redundant with section 1.2110(m) of the Commission's rules, are
    removed: 21.960(g); 22.225(d); 24.709(d); 26.210(c); 90.815(d);
    90.913(d); 90.1023(d); and 101.1109(d).[^105] We also remove the
    following service-specific rules because they conflict or are
    redundant with section 1.2110(c)(3) of the Commission's rules,[^106]
    the Part 1 definition for "businesses owned by members of minority
    groups and/or women": 24.709(g); 24.720(i); 90.814(e)-(f); and
    90.815(e).[^107] We remove the following service-specific rules in
    whole or in part because they conflict or are redundant with section
    1.2110(n) of the Commission's rules,[^108] the Part 1 definition of
    "gross revenues": 21.961(c); 22.223(c); 22.225(e); 24.709(g);
    24.720(f); 26.4; 27.210(c); 90.814(d); 90.815(e); 90.912(c);
    90.913(d)(3); 90.1021(c); 90.1023(e); 90.1323(e); 101.1112(g); and
    101.1209(d).[^109] We also modify or remove the following
    service-specific rules in whole or in part because they are
    redundant with section 1.2110(c)(4) of the Commission's rules,[^110]
    the Part 1 definition of "rural telephone company": sections
    24.720(e); 26.4; 90.814(c); and 101.1209(c).[^111] We also add a
    definition of "total assets" to section 1.2110 of the Commission's
    rules [^112] to address the circumstances in which "total assets"
    information is relevant to the determination of whether an applicant
    (or licensee) is eligible for status as an entrepreneur.[^113]
    Accordingly, we delete the redundant portions of the following
    service-specific rules that pertain to "total assets": sections
    24.709(g); 24.720(g); and 90.815(e).[^114]

18. [Technical/ministerial edits to Commission rules]{.underline}. As a
    result of the conforming edits made in this Order, some of the
    service-specific competitive bidding rules refer to sections of the
    Part 1 general competitive bidding rules that have been removed or
    modified. Accordingly, we modify the following rules to eliminate or
    correct references to rules that have been removed or modified:
    1.2107(e); 1.2110(f)(3)(ii)(B), (f)(3)(iii)-(iv), (vii);
    21.956(b)(3); 21.960(b)(4); 22.223(b)(3); 24.321(c)(1); 24.709;
    24.711(b)-(b)(2); 24.712(a)-(b); 24.714(d)(1), (d)(2)(i), (iii),
    (d)(3)(i), (ii); 24.716(b)-(b)(2); 24.717(a)-(b); 24.720(b)(5),
    (c)(2), (j)(2), (k)(4), (n)(3)-(4); 26.210(a); 27.15(d)-(e);
    73.3571(h)(4)(i); 73.3573(f)(5)(ii); 73.5005(a); 73.5006(d);
    80.1252(d); 90.705; 90.813(d)(2)(ii)-(iv), (3)(ii), (e), (f);
    90.814(a)(3); 90.910(a); 90.1017(a); 90.1025(b); 90.1103(d);
    95.816(e); 95.823(c)(2), (c)(2)(iii), (c)(3); 101.538(c); and
    101.1319(b).[^115] Finally, we correct errors in the following rules
    pursuant to the Bureau's delegated authority under section 0.331(d)
    to make ministerial conforming edits:[^116] 22.227;
    24.711(b)(3)-(5);[^117] 73.5009;[^118] 90.809(b); 90.813(a);
    90.909(c); 90.913(a); 95.816(f); and 101.538(a)(7).[^119]

# Ordering clause

19. IT IS ORDERED that Parts 1, 21, 22, 24, 25, 26, 27, 73, 74, 80, 90,
    95, 100, and 101 of the Commission's rules are AMENDED in accordance
    with the foregoing Order and as set forth in Appendix A, effective
    30 days after publication in the *Federal Register*. This action is
    taken pursuant to the authority delegated by the Commission in the
    *Part 1 Fifth Report and Order*, 47 U.S.C. § 155(c), and 47 C.F.R.
    §§ 0.131(c) and 0.331(d).

FEDERAL COMMUNICATIONS COMMISSION

Kathleen O'Brien Ham

Deputy Chief, Wireless Telecommunications Bureau

**APPENDIX A:** **Rule Changes**

**For the reasons discussed in the preamble the Federal Communications
Commission amends 47 CFR parts 1, 21, 22, 24, 25, 26, 27, 73, 74, 80,
90, 95, 100, and 101 as follows:**

1.  Amend § 1.2107 by revising paragraph (e) to read as follows:

**[§ 1.2107 Submission of down payment and filing of long-form
application.]{.underline}**

\* \* \* \* \*

\(e\) A winning bidder that seeks a bidding credit to serve a qualifying
tribal land, as defined in § 1.2110(f)(3)(i), within a particular market
must indicate on the long-form application (FCC Form 601) that it
intends to serve a qualifying tribal land within that market.

\* \* \* \* \*

2.  Amend §1.2110 by revising paragraphs (b)(1), (f)(3)(ii)(B),
    (f)(3)(iii), (f)(3)(iv), (f)(3)(vii), and (m)(1) and adding new
    paragraph (o) to read as follows:

**[§ 1.2110 Designated entities.]{.underline}**

\* \* \* \* \*

\(b\) Eligibility for small business and entrepreneur provisions.

\(1\) Size attribution.

\(i\) The gross revenues of the applicant (or licensee), its controlling
interests and their affiliates shall be attributed to the applicant and
considered on a cumulative basis and aggregated for purposes of
determining whether the applicant (or licensee) is eligible for status
as a small business. An applicant seeking status as a small business
must disclose on its short- and long-form applications, separately and
in the aggregate, the gross revenues of the applicant (or licensee), its
controlling interests and their affiliates for each of the previous
three years.

\(ii\) If applicable, the total assets of the applicant (or licensee),
its controlling interests and their affiliates shall be attributed to
the applicant and considered on a cumulative basis and aggregated for
purposes of determining whether the applicant (or licensee) is eligible
for status as an entrepreneur. An applicant seeking status as an
entrepreneur must disclose on its short- and long-form applications,
separately and in the aggregate, the gross revenues of the applicant (or
licensee), its controlling interests and their affiliates for each of
the previous two years.

\* \* \* \* \*

\(f\) \* \* \*

\(3\) \* \* \*

\(ii\) \* \* \*

\(B\) In addition, within ninety (90) days after the filing deadline for
long‑ form applications, the winning bidder must amend its long‑form
application and file a certification that it will comply with the
buildout requirements set forth in § 1.2110(f)(vi) and consult with the
tribal government regarding the siting of facilities and deployment of
service on the tribal land.

\(iii\) Bidding credit formula. Subject to the applicable bidding credit
limit set forth in § 1.2110(f)(3)(iv), the bidding credit shall equal
three hundred thousand (300,000) dollars for the first two hundred (200)
square miles (518 square kilometers) of qualifying tribal land, and
fifteen hundred (1500) dollars for each additional square mile (2.590
square kilometer) of qualifying tribal land above two hundred (200)
square miles (518 square kilometers).

\(iv\) Bidding credit limit. If the high bid is equal to or less than
one million (1,000,000) dollars, the maximum bidding credit calculated
pursuant to § 1.2110(f)(3)(iii) shall not exceed fifty (50) percent of
the high bid. If the high bid is greater than one million (1,000,000)
dollars, but equal to or less than two million (2,000,000) dollars, the
maximum bidding credit calculated pursuant to § 1.2110(f)(3)(iii) shall
not exceed five hundred thousand (500,000) dollars. If the high bid is
greater than two million (2,000,000) dollars, the maximum bidding credit
calculated pursuant to § 1.2110(f)(3)(iii) shall not exceed twenty-five
(25) percent of the high bid.

\* \* \* \* \*

\(vii\) Performance penalties. If a recipient of a bidding credit under
this section fails to provide the post‑construction certification
required by § 1.2110(f)(3)(vi), then it shall repay the bidding credit
amount in its entirety, plus interest. The interest will be based on the
rate for ten-year U.S. Treasury obligations applicable on the date the
license is granted. Such payment shall be made within thirty (30) days
of the third anniversary of the initial grant of its license.

\* \* \* \* \*

\(m\) \* \* \*

\(1\) Applicants and licensees claiming eligibility shall be subject to
audits by the Commission, using in-house and contract resources.
Selection for audit may be random, on information, or on the basis of
other factors.

\* \* \* \* \*

\(o\) Total Assets. Total assets shall mean the book value (except where
generally accepted accounting principles (GAAP) require market
valuation) of all property owned by an entity, whether real or personal,
tangible or intangible, as evidence by the most recently audited
financial statements or certified by the applicant's chief financial
offer or its equivalent if the applicant does not otherwise use audited
financial statements.

3.  Revise § 21.950 to read as follows:

**[§ 21.950 MDS subject to competitive bidding.]{.underline}**

Mutually exclusive initial applications for MDS licenses are subject to
competitive bidding. The general competitive bidding procedures set
forth in Part 1, Subpart Q of this chapter will apply unless otherwise
provided in this part.

**[§ 21.951 through § 21.953 \[Removed and Reserved\]]{.underline}**

4.  Remove and reserve § 21.951 through § 21.953.

5.  Revise § 21.954 to read as follows:

**[§ 21.954 Submission of upfront payments.]{.underline}**

Applicants who are small businesses eligible for reduced upfront
payments will be required to submit an upfront payment amount in
accordance with § 21.960(c).

**[§21.955 \[Removed and Reserved\]]{.underline}**

6.  Remove and reserve § 21.955.

7.  Amend § 21.956 by revising paragraph (b)(3) to read as follows:

**[§ 21.956 Filing of long-form applications or statements of
intention.]{.underline}**

\* \* \* \* \*

\(b\) \* \* \*

\(3\) an exhibit complying with §§ 1.2110(j) of this chapter and
21.960(e), if the winning bidder submitting the long-from application or
statement of intention claims status as a designated entity.

\* \* \* \* \*

8.  Revise § 21.957 to read as follows:

**[§ 21.957 Comments on statements of intention.]{.underline}**

In addition to the provisions of § 21.30, parties wishing to comment or
oppose the issuance of a BTA authorization in connection with the filing
of a statement of intention by a winning bidder must do so prior to the
Commission's issuance of the BTA authorization.

9.  Revise § 21.958 to read as follows:

**[§ 21.958 Issuance of BTA licenses]{.underline}.**

A winning bidder who submitted a long-form application for an MDS
station license within its BTA service area pursuant to § 21.956(a) will
receive its BTA authorization concurrent with the grant of its MDS
conditional station license within its BTA service area. A winning
bidder who submitted a statement of intention with regard to its BTA
service area pursuant to § 21.956(a) will receive its BTA authorization
following the Commission\'s review of its statement of intention. The
Commission will issue a BTA authorization to a winning bidder within ten
(10) business days following notification of receipt of full payment of
the amount of the winning bid.

**[§ 21.959 \[Removed and Reserved\]]{.underline}**

10. Remove and reserve § 21.959.

11. Amend § 21.960 by revising paragraph (b)(5) and removing paragraphs
    (d)(1) and (g) to read as follows:

**[§ 21.960 Designated entity provisions for MDS.]{.underline}**

\* \* \* \* \*

\(b\) \* \* \*

\(5\) Unjust enrichment. If an eligible BTA authorization holder that
utilizes installment financing under this subsection seeks to partition,
pursuant to § 21.931, a portion of its BTA containing one‑third or more
of the population of the area within its control in the licensed BTA to
an entity not meeting the eligibility standards for installment
payments, the holder must make full payment of the remaining unpaid
principal and any unpaid interest accrued through the date of partition
as a condition of approval.

\* \* \* \* \*

12. Amend § 21.961 by redesignating paragraph (b)(3) as (b)(2), and
    removing paragraphs (c) and (d).

13. Revise § 22.201 to read as follows:

**[§ 22.201 Paging geographic area authorizations are subject to
competitive bidding.]{.underline}**

Mutually exclusive initial applications for paging geographic area
licenses are subject to competitive bidding. The general competitive
bidding procedures set forth in Part 1, Subpart Q of this chapter will
apply unless otherwise provided in this subpart and Part 90 of this
chapter.

**[§ 22.203 \[Removed and Reserved\]]{.underline}**

14. Remove and reserve § 22.203.

**[§ 22.205 \[Removed and Reserved\]]{.underline}**

15. Remove and reserve § 22.205.

**[§ 22.207 \[Removed and Reserved\]]{.underline}**

16. Remove and reserve § 22.207.

**[§ 22.209 \[Removed and Reserved\]]{.underline}**

17. Remove and reserve § 22.209.

**[§ 22.211 \[Removed and Reserved\]]{.underline}**

18. Remove and reserve § 22.211.

19. Revise § 22.213 to read as follows:

**[§ 22.213 Filing of long-form applications.]{.underline}**

After an auction, the Commission will not accept long form applications
for paging geographic authorizations from anyone other than the auction
winners and parties seeking partitioned authorizations pursuant to
agreements with auction winners under § 22.221 of this part.

**[§ 22.215 \[Removed and Reserved\]]{.underline}**

20. Remove and reserve § 22.215.

21. Revise § 22.217 to read as follows:

    **[§ 22.217 Bidding credit for small businesses.]{.underline}**

    A winning bidder that qualifies as a small business or a consortium
    of small businesses as defined in § 22.223(b)(1)(i) of this part may
    use a bidding credit of thirty-five (35) percent to lower the cost
    of its winning bid. A winning bidder that qualifies as a small
    business or consortium of small businesses as defined in §
    22.223(b)(1)(ii) of this part may use a bidding credit of
    twenty-five (25) percent to lower the cost of its winning bid.

22. Amend § 22.223 by redesignating paragraph (b)(3) as (b)(2), removing
    paragraphs (b)(4), (c), (d) and (e), and revising newly redesignated
    paragraph (b)(2) to read as follows:

**[§ 22.223 Definitions concerning competitive bidding
process]{.underline}**.

\* \* \* \* \*

\(b\) \* \* \*

\(2\) A consortium of small businesses is a conglomerate organization
formed as a joint venture between or among mutually independent business
firms, each of which individually satisfies the definition of a small
business in paragraph (b)(1)(i) or (b)(1)(ii) of this section. Each
individual member must establish its eligibility as a small business, as
defined in this section.

23. Revise § 22.225 to read as follows:

**[§ 22.225 Certifications, disclosures, records maintenance, and
definitions.]{.underline}**

\(a\) Short-form applications: certifications and disclosure. In
addition to certifications and disclosures required by Part 1, Subpart Q
of this chapter, each applicant for a paging license which qualifies as
a small business or consortium of small businesses shall append the
following information as an exhibit to its FCC Form 175: the identity of
the applicant's controlling interest and affiliates, and, if a
consortium of small businesses, the members of the joint venture.

\(b\) Records maintenance. All winning bidders qualifying as small
businesses shall maintain at their principal place of business an
updated file of ownership, revenue, and asset information, including any
documents necessary to establish small businesses under § 22.223.
Licensees (and their successors-in-interest) shall maintain such files
for the term of the license. Applicants that do not obtain the
license(s) for which they applied shall maintain such files until the
grant of such license(s) is final, or one year from the date of the
filing of their short-form application (FCC Form 175), whichever is
earlier.

\(c\) Definitions. The terms small business and consortium of small
businesses used in this section are defined in § 22.223.

24. Revise § 22.227 to read as follows:

**[§ 22.227 Petitions to deny and limitations on
settlements.]{.underline}**

\(a\) Procedures regarding petitions to deny long-form applications in
the paging service will be governed by § 1.939.

\(b\) The consideration that an individual or an entity will be
permitted to receive for agreeing to withdraw an application or petition
to deny will be limited by the provisions set forth in § 1.935.

25. Revise § 22.228 to read as follows:

**[§ 22.228 Cellular Rural Service Area licenses subject to competitive
bidding.]{.underline}**

Mutually exclusive initial applications for Cellular Rural Service Area
licenses are subject to competitive bidding. The general competitive
bidding procedures set forth in Part 1, Subpart Q of this chapter will
apply unless otherwise provided in this subpart.

26. Revise § 22.960 to read as follows:

**[§ 22.960 Cellular unserved area radiotelephone licenses subject to
competitive bidding.]{.underline}**

Mutually exclusive initial applications for cellular unserved area Phase
I and Phase II licenses filed after July 26, 1993 are subject to
competitive bidding. The general competitive bidding procedures set
forth in Part 1, Subpart Q of this chapter will apply unless otherwise
provided in this subpart.

**[§§ 22.961 through 22.965 \[Removed and Reserved\]]{.underline}**

27. Remove and reserve §§ 22.961 through 22.965.

**[§ 22.967 \[Removed and Reserved\]]{.underline}**

28. Remove and reserve § 22.967.

29. Revise § 24.301 to read as follows:

**[§ 24.301 Narrowband PCS subject to competitive
bidding.]{.underline}**

Mutually exclusive initial applications for narrowband PCS service
licenses are subject to competitive bidding. The general competitive
bidding procedures set forth in Part 1, Subpart Q of this chapter will
apply unless otherwise provided in this subpart.

30. Revise § 24.321 to read as follows:

**[§ 24.321 Designated entities.]{.underline}**

\(a\) Eligibility for small business provisions.

\(1\) A small business is an entity that, together with its controlling
interests and affiliates, has average gross revenues not exceeding \$ 40
million for the preceding three years.

\(2\) A very small business is an entity that, together with its
controlling interests and affiliates, has average gross revenues not
exceeding \$ 15 million for the preceding three years.

\(3\) A consortium of small businesses (or a consortium of very small
businesses) is a conglomerate organization formed as a joint venture
between or among mutually independent business firms, each of which
individually satisfies the definition in paragraph (a)(1) of this
section (or each of which individually satisfies the definition in
paragraph (a)(2) of this section). Where an applicant or licensee is a
consortium of small businesses (or very small businesses), the gross
revenues of each small business (or very small business) shall not be
aggregated.

\(b\) Bidding credits. (1) After August 7, 2000, a winning bidder that
qualifies as a small business or a consortium of small businesses as
defined in this section may use the bidding credit specified in §
1.2110(f)(2)(iii) of this chapter. A winning bidder that qualifies as a
very small business or a consortium of very small businesses as defined
in this section may use the bidding credit specified in §
1.2110(f)(2)(ii) of this chapter.

(2)(i) Businesses owned by members of minority groups and women,
including small businesses owned by members of minority groups and
women, that are winning bidders on nationwide licenses on Channel 5,
Channel 8, and Channel 11 prior to \[effective date of rules\] will be
eligible for a twenty-five (25) percent bidding credit.

\(ii\) Businesses owned by members of minority groups and women,
including small businesses owned by members of minority groups and
women, that are winning bidders on regional licenses on Channel 13 and
Channel 17 prior to August 7, 2000 will be eligible for a forty (40)
percent bidding credit.

\(c\) Installment payments. Small businesses, including small businesses
owned by members of minority groups and women, that are winning bidders
on any regional license prior to August 7, 2000 will be eligible to pay
the full amount of their winning bids in installments over the term of
the license pursuant to the terms set forth in § 1.2110(g) of this
chapter.

31. Revise § 24.701 to read as follows:

**[§ 24.701 Broadband PCS subject to competitive bidding.]{.underline}**

Mutually exclusive initial applications for broadband PCS service
licenses are subject to competitive bidding. The general competitive
bidding procedures set forth in Part 1, Subpart Q of this chapter will
apply unless otherwise provided in this subpart.

**[§ 24.702 \[Removed and Reserved\]]{.underline}**

32. Remove and reserve § 24.702.

**[§ 24.704 \[Removed and Reserved\]]{.underline}**

33. Remove and reserve § 24.704.

**[§ 24.706 \[Removed and Reserved\]]{.underline}**

34. Remove and reserve § 24.706.

**[§ 24.708 \[Removed and Reserved\]]{.underline}**

35. Remove and reserve § 24.708.

36. Revise § 24.709 to read as follows:

**[§ 24.709 Eligibility for licenses for frequency Blocks C or
F.]{.underline}**

\(a\) *General Rule for licenses offered for closed bidding.*

\(1\) No application is acceptable for filing and no license shall be
granted to a winning bidder in closed bidding for frequency block C or
frequency block F, unless the applicant, together with its affiliates
and persons or entities that hold interests in the applicant and their
affiliates, have had gross revenues of less than \$125 million in each
of the last two years and total assets of less than \$500 million at the
time the applicant\'s short‑form application (Form 175) is filed.

\(2\) Any licensee awarded a license won in closed bidding pursuant to
the eligibility requirements of this section (or pursuant to §
24.839(a)(2)) shall maintain its eligibility until at least five years
from the date of initial license grant, except that a licensee\'s (or
other attributable entity\'s) increased gross revenues or increased
total assets due to nonattributable equity investments (i.e., from
sources whose gross revenues and total assets are not considered under
paragraph (b) of this section), debt financing, revenue from operations
or other investments, business development, or expanded service shall
not be considered.

\(3\) *Tiers*. (i) For purposes of determining spectrum to which the
eligibility requirements of this section are applicable, the BTA service
areas (see § 24.202(b)) are divided into two tiers according to their
population as follows:

\(A\) Tier 1: BTA service areas with population equal to or greater than
2.5 million;

\(B\) Tier 2: BTA service areas with population less than 2.5 million.

\(ii\) For Auction No. 35, the population of individual BTA service
areas will be based on the 1990 census. For auctions beginning after the
start of Auction No. 35, the population of individual BTA service areas
will be based on the most recent available decennial census.

\(4\) *Application of eligibility requirements.* (i) The following
categories of licenses will be subject to closed bidding pursuant to the
eligibility requirements of this section in auctions that begin after
the effective date of this paragraph.

\(A\) For Tier 1 BTAs, one of the 10 MHz C block licenses (1895‑1900 MHz
paired with 1975‑1980 MHz);

\(B\) For Tier 2 BTAs, two of the 10 MHz C block licenses (1895‑1900 MHz
paired with 1975‑1980 MHz; 1900‑1905 MHz paired with 1980‑1985 MHz) and
all 15 MHz C block licenses.

\(ii\) Notwithstanding the provisions of paragraph (a)(4)(i) of this
section, any C block license for operation on spectrum that has been
offered, but not won by a bidder, in closed bidding in any auction
beginning on or after March 23, 1999, will not be subject in a
subsequent auction to closed bidding pursuant to the eligibility
requirements of this section.

\(5\) *Special rule for licensees disaggregating or returning certain
spectrum in frequency block C.*

\(i\) In addition to entities qualifying for closed bidding under
paragraph (a)(1) of this section, any entity that was eligible for and
participated in the auction for frequency block C, which began on
December 18, 1995, or the reauction for frequency block C, which began
on July 3, 1996, will be eligible to bid for C block licenses offered in
closed bidding in any reauction of frequency block C spectrum that
begins within two years of March 23, 1999.

\(ii\) In cases of merger, acquisition, or other business combination of
entities, where each of the entities is eligible to bid for C block
licenses offered in closed bidding in any reauction of C block spectrum
on the basis of the eligibility exception set forth in paragraph
(a)(5)(i) of this section, the resulting entity will also be eligible
for the exception specified in paragraph (a)(5)(i).

\(iii\) In cases of merger, acquisition, or other business combination
of entities, where one or more of the entities are ineligible for the
exception set forth in paragraph (a)(5)(i) of this section, the
resulting entity will not be eligible pursuant to paragraph (a)(5)(i)
unless an eligible entity possesses *de jure* and *de facto* control
over the resulting entity.

\(iv\) The following restrictions will apply for any reauction of
frequency block C spectrum conducted after March 24, 1998:

\(A\) Applicants that elected to disaggregate and surrender to the
Commission 15 MHz of spectrum from any or all of their frequency block C
licenses, as provided in Amendment of the Commission\'s Rules Regarding
Installment Payment Financing for Personal Communications Services (PCS)
Licensees, Second Report and Order and Further Notice of Proposed Rule
Making, WT Docket No. 97‑82, 12 FCC Rcd 16,436 (1997), as modified by
the Order on Reconsideration of the Second Report and Order, WT Docket
No. 97‑82, FCC 98‑46 (rel. Mar. 24, 1998), will not be eligible to apply
for such disaggregated spectrum until 2 years from the start of the
reauction of that spectrum.

\(B\) Applicants that surrendered to the Commission any of their
frequency block C licenses, as provided in Amendment of the
Commission\'s Rules Regarding Installment Payment Financing for Personal
Communications Services (PCS) Licensees, Second Report and Order and
Further Notice of Proposed Rule Making, WT Docket No. 97‑82, 12 FCC Rcd
16,436 (1997), as modified by the Order on Reconsideration of the Second
Report and Order, WT Docket No. 97‑82, FCC 98‑46 (rel. Mar. 24, 1998),
will not be eligible to apply for the licenses that they surrendered to
the Commission until 2 years from the start of the reauction of those
licenses if they elected to apply a credit of 70% of the down payment
they made on those licenses toward the prepayment of licenses they did
not surrender.

\(b\) *Exceptions to General Rule.*

\(1\) *Scope.* The following provisions apply to licenses acquired in
Auctions No. 5, 10, 11 or 22, or pursuant to § 24.839(a)(2) or (a)(3)
prior to October 30, 2000.

\(i\) *Small Business Consortia*. Where an applicant (or licensee) is a
consortium of small businesses, the gross revenues and total assets of
each small business shall not be aggregated.

\(ii\) *Publicly‑Traded Corporations*. Where an applicant (or licensee)
is a publicly traded corporation with widely dispersed voting power, the
gross revenues and total assets of a person or entity that holds an
interest in the applicant (or licensee), and its affiliates, shall not
be considered.

\(iii\) *25 Percent Equity Exception*. The gross revenues and total
assets of a person or entity that holds an interest in the applicant (or
licensee), and its affiliates, shall not be considered so long as:

\(A\) Such person or entity, together with its *affiliates*, holds only
*nonattributable* *equity* equaling no more than 25 percent of the
applicant\'s (or licensee\'s) total equity;

\(B\) Except as provided in paragraph (b)(1)(v) of this section, such
person or entity is not a member of the applicant\'s (or licensee\'s)
*control* *group*; and

\(C\) The applicant (or licensee) has a *control* *group* that complies
with the minimum equity requirements of paragraph (b)(1)(v) of this
section, and, if the applicant (or licensee) is a corporation, owns at
least 50.1 percent of the applicant\'s (or licensee\'s) voting
interests, and, if the applicant (or licensee) is a partnership, holds
all of its general partnership interests.

\(iv\) 4*9.9 Percent Equity Exception.* The *gross* *revenues* and
*total* *assets* of a person or entity that holds an interest in the
applicant (or licensee), and its affiliates, shall not be considered so
long as:

\(A\) Such person or entity, together with its *affiliates*, holds only
*nonattributable* *equity* equaling no more than 49.9 percent of the
applicant\'s (or licensee\'s) total equity;

\(B\) Except as provided in paragraph (b)(1)(vi) of this section, such
person or entity is not a member of the applicant\'s (or licensee\'s)
*control* *group*; and

\(C\) The applicant (or licensee) has a *control* *group* that complies
with the minimum equity requirements of paragraph (b)(1)(vi) of this
section and, if the applicant (or licensee) is a corporation, owns at
least 50.1 percent of the applicant\'s (or licensee\'s) voting
interests, and, if the applicant (or licensee) is a partnership, holds
all of its general partnership interests.

\(v\) *Control Group Minimum 25 Percent Equity Requirement.* In order to
be eligible to exclude gross revenues and total assets of persons or
entities identified in paragraph (b)(1)(iii) of this section, and
applicant (or licensee) must comply with the following requirements:

\(A\) Except for an applicant (or licensee) whose sole control group
member is a *preexisting* *entity*, as provided in paragraph
(b)(1)(v)(B) of this section, at the time the applicant\'s short‑form
application (Form 175) is filed and until at least three years following
the date of initial license grant, the applicant\'s (or licensee\'s)
control group must own at least 25 percent of the applicant\'s (or
licensee\'s) total equity as follows:

([1]{.underline}) At least 15 percent of the applicant\'s (or
licensee\'s) total equity must be held by *qualifying* *investors*,
either unconditionally or in the form of options exercisable, at the
option of the holder, at any time and at any exercise price equal to or
less than the market value at the time the applicant files its
short‑form application (Form 175);

([2]{.underline}) Such *qualifying* *investors* must hold 50.1 percent
of the voting stock and all general partnership interests within the
control group, and must have *de facto* control of the control group and
of the applicant;

([3]{.underline}) The remaining 10 percent of the applicant\'s (or
licensee\'s) total equity may be owned, either unconditionally or in the
form of stock options, by any of the following entities, which may not
comply with § 24.720(i)(1):

([i]{.underline}) *Institutional* *Investors*;

([ii]{.underline}) Noncontrolling *existing* *investors* in any
*preexisting* *entity* that is a member of the *control* *group*;

([iii]{.underline}) Individuals that are members of the applicant\'s (or
licensee\'s) management; or

([iv]{.underline}) *Qualifying* *investors*, as specified in §
24.720(i)(4).

([4]{.underline}) Following termination of the three‑year period
specified in paragraph (b)(1)(v)(A) of this section, *qualifying*
*investors* must continue to own at least 10 percent of the applicant\'s
(or licensee\'s) total equity unconditionally or in the form of stock
options subject to the restrictions in paragraph
(b)(1)(v)(A)([1]{.underline}) of this section. The restrictions
specified in paragraph (b)(1)(v)(A)([3]{.underline})([i]{.underline})
through (b)(1)(v)(A)([3]{.underline})([iv]{.underline}) of this section
no longer apply to the remaining equity after termination of such
three‑year period.

\(B\) At the election of an applicant (or licensee) whose *control*
*group\'s* sole member is a preexisting entity, the 25 percent minimum
equity requirements set forth in paragraph (b)(1)(v)(A) of this section
shall apply, except that only 10 percent of the applicant\'s (or
licensee\'s) total equity must be held in *qualifying* *investors*, and
that the remaining 15 percent of the applicant\'s (or licensee\'s) total
equity may be held by *qualifying* *investors*, or noncontrolling
*existing* *investors* in such *control* *group* member or individuals
that are members of the applicant\'s (or licensee\'s) management. These
restrictions on the identity of the holder(s) of the remaining 15
percent of the licensee\'s total equity no longer apply after
termination of the three‑year period specified in paragraph (b)(1)(v)(A)
of this section.

\(vi\) *Control Group Minimum 50.1 Percent Equity Requirement*. In order
to be eligible to exclude *gross* *revenues* and *total* *assets* of
persons or entities identified in paragraph (b)(1)(iv) of this section,
an applicant (or licensee) must comply with the following requirements:

\(A\) Except for an applicant (or licensee) whose sole control group
member is a *preexisting* *entity*, as provided in paragraph
(b)(1)(vi)(B) of this section, at the time the applicant\'s short‑form
application (Form 175) is filed and until at least three years following
the date of initial license grant, the applicant\'s (or licensee\'s)
*control* *group* must own at least 50.1 percent of the applicant\'s (or
licensee\'s) total equity as follows:

([1]{.underline}) at least 30 percent of the applicant\'s (or
licensee\'s) total equity must be held by *qualifying* *investors*,
either unconditionally or in the form of options, exercisable at the
option of the holder, at any time and at any exercise price equal to or
less than the market value at the time the applicant files its
short‑form application (Form 175);

([2]{.underline}) Such *qualifying* *investors* must hold 50.1 percent
of the voting stock and all general partnership interests within the
control group and must have *de facto* control of the control group and
of the applicant;

([3]{.underline}) The remaining 20.1 percent of the applicant\'s (or
licensee\'s) total equity may be owned by *qualifying* *investors*,
either unconditionally or in the form of stock options not subject to
the restrictions of paragraph (b)(1)(vi)(A)([1]{.underline}) of this
section, or by any of the following entities which may not comply with §
24.720(i)(1):

([i]{.underline}) *Institutional* *investors*, either unconditionally or
in the form of stock options;

([ii]{.underline}) Noncontrolling *existing* *investors* in any
*preexisting* *entity* that is a member of the *control* *group*, either
unconditionally or in the form of stock options;

([iii]{.underline}) Individuals that are members of the applicant\'s (or
licensee\'s) management, either unconditionally or in the form of stock
options; or

([iv]{.underline}) *Qualifying* *investors*, as specified in
24.720(i)(4).

([4]{.underline}) Following termination of the three‑year period
specified in paragraph (b)(1)(vi)(A) of this section, *qualifying*
*investors* must continue to own at least 20 percent of the applicant\'s
(or licensee\'s) total equity unconditionally or in the form of stock
options subject to the restrictions in paragraph
(b)(1)(vi)(A)([1]{.underline}) of this section. The restrictions
specified in paragraph (b)(1)(vi)(A)([3]{.underline})([i]{.underline})
through (b)(1)(vi)(A)([3]{.underline})([iv]{.underline}) of this section
no longer apply to the remaining equity after termination of such
three‑year period.

\(B\) At the election of an applicant (or licensee) whose *control*
*group\'s* sole member is a *preexisting* *entity*, the 50.1 percent
minimum equity requirements set forth in paragraph (b)(1)(vi)(A) of this
section shall apply, except that only 20 percent of the applicant\'s (or
licensee\'s) total equity must be held by *qualifying* *investors*, and
that the remaining 30.1 percent of the applicant\'s (or licensee\'s)
total equity may be held by *qualifying* *investors*, or noncontrolling
existing investors in such *control* *group* member or individuals that
are members of the applicant\'s (or licensee\'s) management. These
restrictions on the identity of the holder(s) of the remaining 30.1
percent of the licensee\'s total equity no longer apply after
termination of the three‑year period specified in paragraph
(b)(1)(vi)(A) of this section.

\(vii\) *Calculation of Certain Interests.* Except as provided in
paragraphs (b)(1)(v) and (b)(1)(vi) of this section, ownership interests
shall be calculated on a fully diluted basis; all agreements such as
warrants, stock options and convertible debentures will generally be
treated as if the rights thereunder already have been fully exercised,
except that such agreements may not be used to appear to terminate or
divest ownership interests before they actually do so, in order to
comply with the *nonattributable* *equity* requirements in paragraphs
(b)(1)(iii)(A) and (b)(1)(iv)(A) of this section.

\(viii\) *Aggregation of Affiliate Interests*. Persons or entities that
hold interest in an applicant (or licensee) that are affiliates of each
other or have an identify of interests identified in § 1.2110(c)(5)(iii)
will be treated as though they were one person or entity and their
ownership interests aggregated for purposes of determining an
applicant\'s (or licensee\'s) compliance with the *nonattributable*
*equity* requirements in paragraphs (b)(1)(iii)(A) and (b)(1)(iv)(A) of
this section.

*Example 1 for paragraph (b)(1)(viii).* ABC Corp. is owned by
individuals, A, B, and C, each having an equal one‑third voting interest
in ABC Corp. A and B together, with two‑thirds of the stock have the
power to control ABC Corp. and have an identity of interest. If A & B
invest in DE Corp., a broadband PCS applicant for block C, A and B\'s
separate interests in DE Corp. must be aggregated because A and B are to
be treated as one person.

*Example 2 for paragraph (b)(1)(viii).* ABC Corp. has subsidiary BC
Corp., of which it holds a controlling 51 percent of the stock. If ABC
Corp. and BC Corp., both invest in DE Corp., their separate interests in
DE Corp. must be aggregated because ABC Corp. and BC Corp. are
affiliates of each other.

\(2\) *The following provisions apply to licenses acquired pursuant to §
24.839(a)(2) or (a)(3) on or after October 30, 2000.*

\(i\) In addition to the eligibility requirements set forth at 24.709(a)
and (b), applicants and/or licensees seeking to acquire C and/or F block
licenses pursuant to 24.839(a)(2) or (a)(3) will be subject to the
controlling interest standard in 1.2110(c)(2) of the Commission's rules
for purposes of determining unjust enrichment payment obligations. See §
1.2111.

\(c\) *Short‑Form and Long‑Form Applications: Certifications and
Disclosure.*

\(1\) *Short‑form Application*. In addition to certifications and
disclosures required by Part 1, subpart Q of this chapter, each
applicant to participate in closed bidding for frequency block C or
frequency block F shall certify on its short‑form application (Form 175)
that it is eligible to bid on and obtain such license(s), and (if
applicable) that it is eligible for designated entity status pursuant to
this section and § 24.720, and shall append the following information as
an exhibit to its Form 175:

\(i\) For all applicants:

\(A\) The applicant\'s gross revenues and total assets, computed in
accordance with paragraphs (a) of this section and §
1.2110(b)(1)-(b)(2). that is *a publicly traded corporation with widely
disbursed voting power:*

\(ii\) For all applicants that participated in Auction Nos. 5, 10, 11,
and/or 22:

\(A\) The identity of each member of the applicant\'s *control* *group*,
regardless of the size of each member\'s total interest in the
applicant, and the percentage and type of interest held;

\(B\) The citizenship and the gender or minority group classification
for each member of the applicant\'s *control* *group* if the applicant
is claiming status as a *business owned by members of minority groups
and/or women*;

\(C\) The status of each *control* *group* member that is an
*institutional* *investor*, an *existing* *investor*, and/or a member of
the applicant\'s management;

\(D\) The identify of each *affiliate* of the applicant and each
affiliate of individuals or entities identified pursuant to paragraphs
(c)(1)(ii)(A) and (c)(1)(ii)(C) of this section;

\(E\) A certification that the applicant\'s sole *control* *group*
member is a *preexisting* *entity*, if the applicant makes the election
in either paragraph (b)(1)(v)(B) or (b)(1)(vi)(B)of this section; and

\(F\) For an applicant that is a *publicly* *traded corporation with
widely disbursed voting power:*

([1]{.underline}) A certified statement that such applicant complies
with the requirements of the definition of *publicly traded corporation
with widely disbursed voting power* set forth in § 24.720(h);

([2]{.underline}) The identify of each *affiliate* of the applicant.

\(iii\) For each applicant claiming status as a *small* *business*
*consortium*, the information specified in paragraph (c)(1)(ii) of this
section, for each member of such consortium.

\(2\) *Long‑form* *Application*. In addition to the requirements in
subpart I of this part and other applicable rules (e.g., §§ 20.6(e) and
20.9(b) of this chapter), each applicant submitting a long‑form
application for a license(s) for frequency block C or F shall in an
exhibit to its long‑ form application:

\(i\) Disclose separately and in the aggregate the *gross* *revenues*
and *total* *assets*, computed in accordance with paragraphs (a) and (b)
of this section, for each of the following: the applicant; the
applicant\'s *affiliates*, the applicant\'s *control* *group* members;
the applicant\'s attributable investors; and *affiliates* of its
attributable investors;

\(ii\) List and summarize all agreements or other instruments (with
appropriate references to specific provisions in the text of such
agreements and instruments) that support the applicant\'s eligibility
for a license(s) for frequency block C or frequency block F and its
eligibility under §§ 24.711, 24.712, 24.714 and 24.720, including the
establishment of *de facto* and *de jure* control; such agreements and
instruments include articles of incorporation and bylaws, shareholder
agreements, voting or other trust agreements, partnership agreements,
management agreements, joint marketing agreements, franchise agreements,
and any other relevant agreements (including letters of intent), oral or
written; and

\(iii\) List and summarize any investor protection agreements and
identify specifically any such provisions in those agreements identified
pursuant to paragraph (c)(2)(ii) of this section, including rights of
first refusal, supermajority clauses, options, veto rights, and rights
to hire and fire employees and to appoint members to boards of directors
or management committees.

\(3\) *Records* *Maintenance*. All applicants, including those that are
winning bidders, shall maintain at their principal place of business an
updated file of ownership, revenue and asset information, including
those documents referenced in paragraphs (c)(2)(ii) and (c)(2)(iii) of
this section and any other documents necessary to establish eligibility
under this section or under the definitions *of small business and/or
business owned by members of minority groups and/or women*. Licensees
(and their successors in interest) shall maintain such files for the
term of the license. Applicants that do not obtain the license(s) for
which they applied shall maintain such files until the grant of such
license(s) is final, or one year from the date of the filing of their
short‑form application (Form 175), whichever is earlier.

\(d\) Definitions. The terms consortium of small businesses, control
group, existing investor, institutional investor, nonattributable
equity, preexisting entity, publicly traded corporation with widely
dispersed voting power, qualifying investor, and small business used in
this section are defined in § 24.720 of this chapter.

37. Revise § 24.711 to read as follows:

**[§ 24.711 Installment payments for licenses for frequency Block
C.]{.underline}**

Installment payments. Each eligible licensee of frequency Block C may
pay the remaining 90 percent of the net auction price for the license in
installment payments pursuant to § 1.2110(f) of this chapter and under
the following terms:

\(a\) For an eligible licensee with gross revenues exceeding \$75
million (calculated in accordance with §§ 1.2110(b) and 24.709(b)) in
each of the two preceding years (calculated in accordance with §
1.2110(n) of the Commission's rules), interest shall be imposed based on
the rate for ten‑year U.S. Treasury obligations applicable on the date
the license is granted, plus 3.5 percent; payments shall include both
principal and interest amortized over the term of the license.

\(b\) For an eligible licensee with gross revenues not exceeding \$75
million (calculated in accordance with §§ 1.2110(b) and 24.709(b)) in
each of the two preceding years, interest shall be imposed based on the
rate for ten‑year U.S. Treasury obligations applicable on the date the
license is granted, plus 2.5 percent; payments shall include interest
only for the first year and payments of interest and principal amortized
over the remaining nine years of the license term.

\(c\) For an eligible licensee that qualifies as a small business or as
a consortium of small businesses, interest shall be imposed based on the
rate for ten‑year U.S. Treasury obligations applicable on the date the
license is granted; payments shall include interest only for the first
six years and payments of interest and principal amortized over the
remaining four years of the license term.

38. Revise 24.712 to read as follows:

**[§ 24.712 Bidding credits for licenses won for frequency Block
C.]{.underline}**

\(a\) Except with respect to licenses won in closed bidding in auctions
that begin after March 23, 1999, a winning bidder that qualifies as a
small business or a consortium of small businesses as defined in §
24.720(b)(1) or § 24.720(b)(3) may use a bidding credit of fifteen
percent, as specified in § 1.2110(f)(2)(iii) of this chapter, to lower
the cost of its winning bid.

\(b\) Except with respect to licenses won in closed bidding in auctions
that begin after March 23, 1999, a winning bidder that qualifies as a
very small business or a consortium of very small businesses as defined
in § 24.720(b)(2) or § 24.720(b)(4) may use a bidding credit of
twenty-five percent as specified in § 1.2110(f)(2)(ii) of this chapter,
to lower the cost of its winning bid.

\(c\) Unjust enrichment. The unjust enrichment provisions of § 1.2111(d)
and (e)(2) shall not apply with respect to licenses acquired in either
the auction for frequency block C that began on December 18, 1995, or
the reauction of block C spectrum that began on July 3, 1996.

39. Amend § 24.714 by redesignating paragraph (d) as (c) and revising
    newly redesignated paragraphs (c)(1), (c)(2)(i), (c)(2)(iii),
    (c)(3)(i), and (c)(3)(ii) to read as follows:

**[§ 24.714 Partitioned licenses and disaggregated
spectrum.]{.underline}**

\* \* \* \* \*

\(c\) Installment payments\--(1) Apportioning the balance on installment
payment plans. When a winning bidder elects to pay for its license
through an installment payment plan pursuant to §§ 1.2110(g) of this
chapter or 24.716, and partitions its licensed area or disaggregates
spectrum to another party, the outstanding balance owed by the licensee
on its installment payment plan (including accrued and unpaid interest)
shall be apportioned between the licensee and partitionee or
disaggregatee. Both parties will be responsible for paying their
proportionate share of the outstanding balance to the U.S. Treasury. In
the case of partitioning, the balance shall be apportioned based upon
the ratio of the population of the partitioned area to the population of
the entire original license area calculated based upon the most recent
census data. In the case of disaggregation, the balance shall be
apportioned based upon the ratio of the amount of spectrum disaggregated
to the amount of spectrum allocated to the licensed area.

\(2\) \* \* \*

\(i\) When a winning bidder elects to pay for its license through an
installment payment plan, and partitions its license or disaggregates
spectrum to another party that would not qualify for an installment
payment plan or elects not to pay its share of the license through
installment payments, the outstanding balance owed by the licensee
(including accrued and unpaid interest shall be apportioned according to
§ 24.714(c)(1).

\* \* \* \* \*

\(iii\) The licensee shall be permitted to continue to pay its pro rata
share of the outstanding balance and shall receive new financing
documents (promissory note, security agreement) with a revised payment
obligation, based on the remaining amount of time on the original
installment payment schedule. These financing documents will replace the
licensee\'s existing financing documents, which shall be marked
\"superseded\" and returned to the licensee upon receipt of the new
financing documents. The original interest rate, established pursuant to
§ 1.2110(g)(3)(i) of this chapter at the time of the grant of the
initial license in the market, shall continue to be applied to the
licensee\'s portion of the remaining government obligation. We will
require, as a further condition to approval of the partial assignment
application, that the licensee execute and return to the U.S. Treasury
the new financing documents within 30 days of the Public Notice
conditionally granting the partial assignment application. Failure to
meet this condition will result in the automatic cancellation of the
grant of the partial assignment application.

\* \* \* \* \*

\(3\) \* \* \*

\(i\) Where both parties to a partitioning or disaggregation agreement
qualify for installment payments, the partitionee or disaggregatee will
be permitted to make installment payments on its portion of the
remaining government obligations, as calculated according to §
24.714(c)(1).

\(ii\) Each party will be required, as a condition to approval of the
partial assignment application, to execute separate financing documents
(promissory note, security agreement) agreeing to pay their pro rata
portion of the balance due (including accrued and unpaid interest) based
upon the installment payment terms for which they qualify under the
rules. The financing documents must be returned to the U.S. Treasury
within thirty (30) days of the Public Notice conditionally granting the
partial assignment application. Failure by either party to meet this
condition will result in the automatic cancellation of the grant of the
partial assignment application. The interest rate, established pursuant
to § 1.2110(g)(3)(i) of this chapter at the time of the grant of the
initial license in the market, shall continue to be applied to both
parties\' portion of the balance due. Each party will receive a license
for their portion of the partitioned market or disaggregated spectrum.

\* \* \* \* \*

40. Revise § 24.716 to read as follows:

**[§ 24.716 Installment payments for licenses for frequency Block
F.]{.underline}**

Installment Payments. Each eligible licensee of frequency Block F may
pay the remaining 80 percent of the net auction price for the license in
installment payments pursuant to § 1.2110(g) of this chapter and under
the following terms:

\(a\) For an eligible licensee with gross revenues exceeding \$75
million (calculated in accordance with §§ 1.2110(b) and, when
applicable, 24.709(b)) in each of the two preceding years (calculated in
accordance with § 1.2110(n) of the Commission's rules), interest shall
be imposed based on the rate for ten‑year U.S. Treasury obligations
applicable on the date the license is granted, plus 3.5 percent;
payments shall include both principal and interest amortized over the
term of the license;

\(b\) For an eligible licensee with gross revenues not exceeding \$75
million (calculated in accordance with §§ 1.2110(b) and, when
applicable, 24.709(b)) in each of the two preceding years (calculated in
accordance with § 1.2110(n) of the Commission's rules), interest shall
be imposed based on the rate for ten‑year U.S. Treasury obligations
applicable on the date the license is granted, plus 2.5 percent;
payments shall include interest only for the first year and payments of
interest and principal amortized over the remaining nine years of the
license term; or

\(c\) For an eligible licensee that qualifies as a small business or as
a consortium of small businesses, interest shall be imposed based on the
rate for ten‑year U.S. Treasury obligations applicable on the date the
license is granted; payments shall include interest only for the first
two years and payments of interest and principal amortized over the
remaining eight years of the license term.

41. Revise § 24.717 to read as follows:

**[§ 24.717 Bidding credits for licenses for frequency Block
F.]{.underline}**

\(a\) Except with respect to licenses won in closed bidding in auctions
that begin after March 23, 1999, a winning bidder that qualifies as a
small business or a consortium of small businesses as defined in §
24.720(b)(1) or § 24.720(b)(3) may use a bidding credit of fifteen
percent, as specified in § 1.2110(f)(2)(iii) of this chapter, to lower
the cost of its winning bid.

\(b\) Except with respect to licenses won in closed bidding in auctions
that begin after March 23, 1999, a winning bidder that qualifies as a
very small business or a consortium of very small businesses as defined
in § 24.720(b)(2) or § 24.720(b)(4) may use a bidding credit of
twenty‑five percent as specified in § 1.2110(f)(2)(ii) of this chapter,
to lower the cost of its winning bid.

42. Revise §24.720 to read as follows:

**[§ 24.720 Definitions.]{.underline}**

\(a\) Scope. The definitions in this section apply to §§ 24.709 through
24.717, unless otherwise specified in those sections.

\(b\) *Small business; very small business; consortia*.

\(1\) A *small* *business* is an entity that, together with its
*affiliates* and persons or entities that hold interest in such entity
and their affiliates, has average annual *gross* *revenues* that are not
more than \$40 million for the preceding three years.

\(2\) A *very* *small* *business* is an entity that, together with its
*affiliates* and persons or entities that hold interests in such entity
and their *affiliates*, has average annual *gross* *revenues* that are
not more than \$15 million for the preceding three years.

\(3\) A *small* *business* *consortium* is a conglomerate organization
formed as a joint venture between or among mutually independent business
firms, each of which individually satisfies the definition of a *small*
*business* in paragraph (b)(1) of this section.

\(4\) A *very* *small* *business* consortium is a conglomerate
organization formed as a joint venture between or among mutually
independent business firms, each of which individually satisfies the
definition of a *very* *small* *business* in paragraph (b)(2) of this
section.

\(c\) *Business Owned by Members of Minority Groups and/or Women. A
business owned by members of minority groups and/or women* is an entity:

\(1\) In which the *qualifying* *investor* members of an applicant\'s
*control* *group* are members of minority groups and/or women who are
United States citizens; and

\(2\) That complies with the requirements of §§ 24.709(b)(1)(iii) and
(b)(1)(v) or § 24.709(b)(1)(iv) and (b)(vi).

\(d\) *Small Business Owned by Members of Minority Groups and/or Women:
Consortium of Small Businesses Owned by Members of Minority and/or
Women.* A Small business owned by members of minority groups and/or
women is an entity that meets the definitions in both paragraphs (b) and
(c) of this section. A *consortium* *of small businesses* *owned by
members of minority* *groups* *and/or women* is a conglomerate
organization formed as a joint venture between mutually‑ independent
business firms, each of which individually satisfies the definitions in
paragraphs (b) and (c) of this section.

\(e\) *Institutional* *Investor*. An *institutional* *investor* is an
insurance company, a bank holding stock in trust accounts through its
trust department, or an investment company as defined in 15 U.S.C.
80a‑3(a), including within such definition any entity that would
otherwise meet the definition of investment company under 15 U.S.C.
80a‑3(a) but is excluded by the exemptions set forth in 15 U.S.C. 80a‑3
(b) and (c), without regard to whether such entity is an issuer of
securities; provided that, if such investment company is owned, in whole
or in part, by other entities, such investment company, such other
entities and the *affiliates* of such other entities, taken as a whole,
must be primarily engaged in the business of investing, reinvesting or
trading in securities or in distributing or providing investment
management services for securities.

\(f\) *Nonattributable* *Equity*.

\(1\) *Nonattributable* *equity* shall mean:

\(i\) For corporations, voting stock or non‑voting stock that includes
no more than twenty‑five percent of the total voting equity, including
the right to vote such stock through a voting trust or other
arrangement;

\(ii\) For partnerships, joint ventures and other non‑corporate
entities, limited partnership interests and similar interests that do
not afford the power to exercise control of the entity.

\(2\) For purposes of assessing compliance with the equity limits in §§
24.709 (b)(1)(iii)(A) and (b)(1)(iv)(A), where such interests are not
held directly in the applicant, the total equity held by a person or
entity shall be determined by successive multiplication of the ownership
percentages for each link in the vertical ownership chain.

\(g\) *Control* *Group*. A *control* *group* is an entity, or a group of
individuals or entities, that possesses *de jure* control and *de facto*
control of an applicant or licensee, and as to which the applicant\'s or
licensee\'s charters, bylaws, agreements and any other relevant
documents (and amendments thereto) provide:

\(1\) That the entity and/or its members own unconditionally at least
50.1 percent of the total voting interests of a corporation;

\(2\) That the entity and/or its members receive at least 50.1 percent
of the annual distribution or any dividends paid on the voting stock of
a corporation;

\(3\) That, in the event of dissolution or liquidation of a corporation,
the entity and/or or its members are entitled to receive 100 percent of
the value of each share of stock in its possession and a percentage of
the retained earnings of the concern that is equivalent to the amount of
equity held in the corporation; and

\(4\) That, for other types of businesses, the entity and/or its members
have the right to receive dividends, profits and regular and liquidating
distributions from the business in proportion to the amount of equity
held in the business.

NOTE to paragraph (g): Voting control does not always assure *de facto*
control, such as for example, when the voting stock of the control group
is widely dispersed (see e.g., § 1.2110(c)(5)(ii)(C)).

\(h\) *Publicly Traded Corporation with Widely Dispersed Voting Power*.
A publicly traded corporation with widely dispersed voting power is a
business entity organized under the laws of the United States:

\(1\) Whose shares, debt, or other ownership interests are traded on an
organized securities exchange within the United States;

\(2\) In which no person

\(i\) Owns more than 15 percent of the equity; or

\(ii\) Possesses, directly or indirectly, through the ownership of
voting securities, by contract or otherwise, the power to control the
election of more than 15 percent of the members of the board of
directors or other governing body of such publicly traded corporation;
and

\(3\) Over which no person other than the management and members of the
board of directors or other governing body of such publicly traded
corporation, in their capacities as such, has *de facto* control.

\(4\) The term *person* shall be defined as in section 13(d) of the
Securities and Exchange Act of 1934, as amended (15 U.S.C. 78(m)), and
shall also include investors that are commonly controlled under the
indicia of control set forth in the definition of affiliate in
paragraphs (1)(2) through (1) of this section.

\(i\) *Qualifying* *Investor*; *Qualifying* *Minority and/or Woman
Investor*.

\(1\) A *qualifying* *investor* is a person who is (or holds an interest
in) a member of the applicant\'s (or licensee\'s) control group and
whose gross revenues and total assets, when aggregated with those of all
other attributable investors and affiliates, do not exceed the gross
revenues and total assets limits specified in § 24.709(a), or, in the
case of an applicant (or licensee) that is a small business, do not
exceed the gross revenues limit specified in paragraph (b) of this
section.

\(2\) A *qualifying minority and/or woman investor* is a person who is a
*qualifying* *investor* under paragraph (i)(1), who is (or holds an
interest in) a member of the applicant\'s (or licensee\'s) *control*
*group* and who is a *member* *of a minority group* or a woman and a
United States citizen.

\(3\) For purposes of assessing compliance with the minimum equity
requirements of § 24.709(b)(1)(v) and (b)(1)(vi), where such equity
interests are not held directly in the applicant, interests held by
qualifying investors or qualifying minority and/or woman investors shall
be determined by successive multiplication of the ownership percentages
for each link in the vertical ownership chain.

\(4\) For purposes of § 24.709 (b)(1)(v)(A)([3]{.underline}) and
(b)(1)(vi)(A)([3]{.underline}), a qualifying investor is a person who is
(or holds an interest in) a member of the applicant\'s (or licensee\'s)
control group and whose gross revenues and total assets do not exceed
the gross revenues and total assets limits specified in § 24.709(a).

\(j\) *Preexisting* *entity*; *Existing* *investor*. A *preexisting*
*entity* is an entity that was operating and earning revenues for at
least two years prior to December 31, 1994. An *existing* *investor* is
a person or entity that was an owner of record of a preexisting
entity\'s equity as of November 10, 1994, and any person or entity
acquiring *de* *minimis* equity holdings in a *preexisting* *entity*
after that date.

Note: In applying the term *existing* *investor* to *de* *minimis*
interests in preexisting entities obtained or increased after November
10, 1994, the Commission will scrutinize any significant restructuring
of the *preexisting* *entity* that occurs after that date and will
presume that any change of equity that is five percent or less of the
*preexisting* *entity\'s* total equity is de *minimis*. The burden is on
the applicant (or licensee) to demonstrate that changes that exceed five
percent are not significant.

43. Revise § 25.401 to read as follows:

**[§ 25.401 Satellite DARS applications subject to competitive
bidding.]{.underline}**

Mutually exclusive initial applications for DARS service licenses are
subject to competitive bidding. The general competitive bidding
procedures set forth in Part 1, Subpart Q of this chapter will apply
unless otherwise provided in this part.

**[§ 25.402 \[Removed and Reserved\]]{.underline}**

44. Remove and reserve § 25.402.

45. Revise § 25.404 to read as follows:

**[§ 25.404 Submission of down payment and filing of long-form
applications.]{.underline}**

A high bidder that meets its down payment obligations in a timely manner
must, within thirty (30) business days after being notified that it is a
high bidder, submit an amendment to its pending application to provide
the information required by § 25.144.

**[§ 25.405 through § 25.406 \[Removed and Reserved\]]{.underline}**

46. Remove and reserve § 25.405 through § 25.406.

47. Revise § 26.4 to read as follows:

**[§ 26.4 Terms and definitions.]{.underline}**

[Assigned frequency]{.underline}. The center of the frequency band
assigned to a station.

[Authorized bandwidth]{.underline}. The maximum width of the band of
frequencies permitted to be used by a station. This is normally
considered to be the necessary or occupied bandwidth, whichever is
greater.

[Average terrain]{.underline}. The average elevation of terrain between
3 and 16 kilometers from the antenna site.

[Effective radiated power (e.r.p.) (in a given
direction)]{.underline}*.* The product of the power supplied to the
antenna and its gain relative to a half‑wave dipole in a given
direction.

[Equivalent isotropically radiated power (e.i.r.p.)]{.underline}*.* The
product of the power supplied to the antenna and the antenna gain in a
given direction relative to an isotropic antenna.

[Fixed service]{.underline}*.* A radio communication service between
specified fixed points.

[Fixed station]{.underline}*.* A station in the fixed service.

[Land mobile service]{.underline}*.* A mobile service between base
stations and land mobile stations, or between land mobile stations.

[Land mobile station]{.underline}*.* A mobile station in the land mobile
service capable of surface movement within the geographic limits of a
country or continent.

[Land station]{.underline}*.* A station in the mobile service not
intended to be used while in motion.

[Mobile service]{.underline}*.* A radio communication service between
mobile and land stations, or between mobile stations.

[Mobile station]{.underline}*.* A station in the mobile service intended
to be used while in motion or during halts at unspecified points.

[National Geodetic Reference System (NGRS)]{.underline}. The name given
to all geodetic control data contained in the National Geodetic Survey
(NGS) database. (Source: National Geodetic Survey, U.S. Department of
Commerce)

[Small business]{.underline}. Consortium of small businesses*.*

\(a\) A small business is an entity that, together with its affiliates
and entities holding controlling interests in the entity, has average
annual gross revenues that are not more than \$40 million for the
preceding three years.

\(b\) A small business consortium is a conglomerate organization formed
as a joint venture between or among mutually independent business firms,
each of which individually satisfies the definition of a small business.
Where an applicant (or licensee) is a consortium of small businesses,
the gross revenues of each business shall not be aggregated.

\(c\) Applicants without identifiable controlling interests. Where an
applicant (or licensee) cannot identify controlling interests under the
standards set forth in this section, the gross revenues of all interest
holders in the applicant, and their affiliates, will be attributable.

[Universal Licensing System]{.underline}*.* The Universal Licensing
System (ULS) is the consolidated database, application filing system,
and processing system for all Wireless Radio Services. ULS supports
electronic filing of all applications and related documents by
applicants and licensees in the Wireless Radio Services, and provides
public access to licensing information.

48. Revise § 26.201 to read as follows:

**[§ 26.201 GWCS subject to competitive bidding.]{.underline}**

Mutually exclusive initial applications for GWCS service licenses are
subject to competitive bidding. The general competitive bidding
procedures set forth in Part 1, Subpart Q of this chapter will apply
unless otherwise provided in this part.

**[§ 26.202 through § 26.203 \[Removed and Reserved\]]{.underline}**

49. Remove and reserve § 26.202 through § 26.203.

**[§ 26.205 through § 26.208 \[Removed and Reserved\]]{.underline}**

50. Remove and reserve § 26.205 through § 26.208.

51. Revise § 26.210 to read as follows:

**[§ 26.210 Provisions for small businesses]{.underline}.**

Bidding credits. A winning bidder that qualifies as a small business or
a consortium of small businesses may use the bidding credit specified in
§ 1.2100(f)(2)(iii) of this chapter.

52. Amend § 27.15 by redesignating paragraphs (d) and (e) as (c) and
    (d).

53. Revise § 27.201 to read as follows:

**[§ 27.201 WCS in the 2305-2320 MHz and 2345-2360 MHz bands subject to
competitive bidding.]{.underline}**

Mutually exclusive initial applications for WCS licenses in the
2305-2320 MHz and 2345-2360 MHz bands are subject to competitive
bidding. The general competitive bidding procedures set forth in Part 1,
Subpart Q of this chapter will apply unless otherwise provided in this
subpart.

**[§ 27.202 through § 27.206 \[Removed and Reserved\]]{.underline}**

54. Remove and reserve § 27.202 through § 27.206.

**[§ 27.208 \[Removed and Reserved\]]{.underline}**

55. Remove and reserve § 27.208.

56. Amend § 27.209 by removing paragraph (d).

57. Revise § 27.210 to read as follows:

**[§ 27.210 Definitions]{.underline}**

\(a\) Scope. The definitions in this section apply to § 27.209, unless
otherwise specified in those sections.

\(b\) Small Business; Very Small Business; Consortia.

\(1\) A small business is an entity that, together with its affiliates
and controlling principals, has average annual gross revenues that are
not more than \$40 million for the preceding three years.

\(2\) A very small business is an entity that, together with its
affiliates and controlling principals, has average annual gross revenues
that are not more than \$15 million for the preceding three years.

\(3\) For purposes of paragraphs (b)(1) and (b)(2) of this section, the
personal net worth of an applicant and its affiliates is not included in
the applicant\'s gross revenues.

\(4\) A consortium of small businesses (or a consortium of very small
businesses) is a conglomerate organization formed as a joint venture
between or among mutually independent business firms, each of which
individually satisfies the definition in paragraph (b)(1) of this
section or each of which satisfies the definition in paragraph (b)(2) of
this section. Where an applicant (or licensee) is a consortium of small
businesses, the gross revenues of each small business shall not be
aggregated.

58. Amend § 27.501 by revising paragraph (a) to read as follows:

**[§ 27.501 746-761 MHz and 776-794 MHz bands subject to competitive
bidding.]{.underline}**

\(a\) Mutually exclusive initial applications for licenses in the
746-764 MHz and 776-794 MHz bands are subject to competitive bidding.
The general competitive bidding procedures set forth in Part 1, Subpart
Q of this chapter will apply unless otherwise provided in this subpart.

\* \* \* \* \*

59. Revise § 27.502 to read as follows:

**[§ 27.502 Designated entities]{.underline}**

Eligibility for small business provisions.

\(a\) A small business is an entity that, together with its controlling
interests and affiliates, has average gross revenues not exceeding \$40
million for the preceding three years.

\(b\) A very small business is an entity that, together with its
controlling interests and affiliates, has average gross revenues not
exceeding \$15 million for the preceding three years.

\(c\) A consortium of small businesses (or a consortium of very small
businesses) is a conglomerate organization formed as a joint venture
between or among mutually independent business firms, each of which
individually satisfies the definition in paragraph (a)(1) of this
section (or each of which individually satisfies the definition in
paragraph (a)(2) of this section).

60. Amend § 27.701 by revising paragraph (a) to read as follows:

**[§ 27.701 698-746 MHz bands subject to competitive
bidding.]{.underline}**

Mutually exclusive initial applications for licenses in the 698-746 MHz
band are subject to competitive bidding. The general competitive bidding
procedures set forth in Part 1, Subpart Q of this chapter will apply
unless otherwise provided in this subpart.

61. Amend § 73.3571 by revising paragraph (h)(4)(i) to read as follows:

**[§ 73.3571 Processing of AM broadcast station
applications.]{.underline}**

\* \* \* \* \*

\(h\) \* \* \*

(4)(i) The auction will be held pursuant to the procedures set forth in
§§ 1.2101 et seq. and 73.5000 et seq. Subsequent to the auction, the FCC
will release a Public Notice announcing the close of the auction and
identifying the winning bidders. Winning bidders will be subject to the
provisions of § 1.2107 regarding down payments and will be required to
submit the appropriate down payment within 10 business days of the
Public Notice. Pursuant to §§ 1.2107 and 73.5005, a winning bidder that
meets its down payment obligations in a timely manner must, within 30
days of the release of the Public Notice announcing the close of the
auction, submit the appropriate long‑ form application for each
construction permit for which it was the winning bidder. Long‑form
applications filed by winning bidders shall include the exhibits
identified in § 73.5005(a).

\* \* \* \* \*

62. Amend § 73.3572 by revising paragraphs (e) and (f) to read as
    follows:

§ 73.3572 Processing of TV Broadcast, Class A TV Broadcast, low power
TV, TV translator and TV booster station applications.

\* \* \* \* \*

\(e\) The FCC will specify by Public Notice, pursuant to § 73.5002, a
period for filing applications for a new non‑reserved television, low
power TV and TV translator stations or for major modifications in the
facilities of such authorized stations and major modifications in the
facilities of Class A TV stations.

\(f\) Applications for minor modification of Class A TV, low power TV,
TV translator and TV booster stations may be filed at any time, unless
restricted by the FCC, and will be processed on a
\"first‑come/first‑served\" basis, with the first acceptable application
cutting off the filing rights of subsequent, competing applicants.
Provided, however, that applications for minor modifications of Class A
TV and those of TV broadcast stations may become mutually exclusive
until grant of a pending Class A TV or TV broadcast minor modification
application.

\* \* \* \* \*

63. Amend § 73.3573 by revising paragraph (f)(5)(i) and (f)(5)(ii) to
    read as follows:

**[§ 73.3573 Processing FM broadcast station
applications.]{.underline}**

\* \* \* \* \*

\(f\) \* \* \*

\(5\) \* \* \*

\(i\) Pursuant to §§ 1.2107 and 73.5005, a winning bidder that meets its
down payment obligations in a timely manner must, within 30 days of the
release of the public notice announcing the close of the auction, submit
the appropriate long‑ form application for each construction permit for
which it was the winning bidder. Long‑form applications filed by winning
bidders shall include the exhibits identified in § 73.5005(a).

\(ii\) These applications will be processed and the FCC will
periodically release a Public Notice listing such applications that have
been accepted for filing and announcing a date by which petitions to
deny must be filed in accordance with the provisions of §§ 73.5006 and
73.3584 of this chapter. If the applicant is duly qualified, and upon
examination, the FCC finds that the public interest, convenience and
necessity will be served by the granting of the winning bidder\'s
long‑form application, a Public Notice will be issued announcing that
the construction permit is ready to be granted. Each winning bidder
shall pay the balance of its winning bid in a lump sum within 10
business days after release of the Public Notice, as set forth in §§
1.2109(a) and 73.5003. Construction permits will be granted by the
Commission following the receipt of the full payment.

\* \* \* \* \*

64. Amend § 73.5000 by revising paragraph (a) to read as follows:

**[§ 73.5000 Services subject to competitive bidding.]{.underline}**

\(a\) Mutually exclusive applications for new facilities and for major
changes to existing facilities in the following broadcast services are
subject to competitive bidding: AM; FM; FM translator; analog
television; low power television; television translator; Instructional
Television Fixed Service (ITFS); and Class A television. Mutually
exclusive applications for minor modifications of Class A television and
television broadcast are also subject to competitive bidding. The
general competitive bidding procedures set forth in Part 1, Subpart Q of
this chapter will apply unless otherwise provided in Part 73 or Part 74.

\* \* \* \* \*

**[§ 73.5001 \[Removed and Reserved\]]{.underline}**

65. Remove and reserve § 73.5001.

66. Revise § 73.5003 to read as follows:

**[§ 73.5003 Submission of full payments.]{.underline}**

If a winning bidder fails to pay the balance of its winning bid in a
lump sum by the applicable deadline as specified by the Commission, it
will be allowed to make payment within ten (10) business days after the
payment deadline, provided that it also pays a late fee equal to five
(5) percent of the amount due. Broadcast construction permits and ITFS
licenses will be granted by the Commission following the receipt of full
payment

**[§ 73.5004 \[Removed and Reserved\]]{.underline}**

67. Remove and reserve § 73.5004.

68. Amend § 73.5005 by revising paragraph (a) to read as follows:

**[§ 73.5005 Filing of long-form applications.]{.underline}**

\(a\) Within thirty (30) days following the close of bidding and
notification to the winning bidders, each winning bidder must submit an
appropriate long‑form application (FCC Form 301, FCC Form 346, FCC Form
349 or FCC Form 330) for each construction permit or license for which
it was the high bidder. Long‑form applications filed by winning bidders
shall include the exhibits required by 47 CFR 1.2107(d) (concerning any
bidding consortia or joint bidding arrangements); § 1.2110(j)
(concerning designated entity status, if applicable); and § 1.2112 (a)
and (b) (concerning disclosure of ownership and real party in interest
information, and, if applicable, disclosure of gross revenue information
for small business applicants).

\* \* \* \* \*

69. Amend § 73.5006 by revising paragraph (d) to read as follows:

[**§** **73.5006 Filing of petitions to deny against long-form
applications**]{.underline}

\* \* \* \* \*

\(d\) If the Commission denies or dismisses all petitions to deny, if
any are filed, and is otherwise satisfied that an applicant is
qualified, a public notice will be issued announcing that the broadcast
construction permit(s) or ITFS license(s) is ready to be granted, upon
full payment of the balance of the winning bid(s). See 47 CFR 73.5003.
Construction of broadcast stations or ITFS facilities shall not commence
until the grant of such permit or license to the winning bidder.

70. Revise § 73.5009 to read as follows:

**[§ 73.5009 Assignment or transfer of control.]{.underline}**

\(a\) The unjust enrichment provisions found at sections 1.2111(b)
through (e) of this chapter shall not apply to applicants seeking
approval of a transfer of control or assignment of a broadcast
construction permit or license within three years of receiving such
permit or license by means of competitive bidding.

\(b\) The ownership disclosure requirements found at section 1.2112(a)
of this chapter shall not apply to an applicant seeking consent to
assign or transfer control of a broadcast construction permit or license
awarded by competitive bidding.

71. Amend § 74.1233 by revising paragraph (5)(i) to read as follows:

[§ 74.1233 Processing FM translator and booster station
applications.]{.underline}

\* \* \* \* \*

(5)(i) Pursuant to § 1.2107, a winning bidder that meets its down
payment obligations in a timely manner must, within 30 days of the
release of the public notice announcing the close of the auction, submit
the appropriate long‑form application for each construction permit for
which it was the winning bidder. Long‑form applications filed by winning
bidders shall include the exhibits identified in § 73.5005.

\* \* \* \* \*

72. Revise § 80.1251 to read as follows:

**[§ 80.1251 Maritime communications subject to competitive
bidding.]{.underline}**

Mutually exclusive initial applications for VPCSA licenses and AMTS
coast station licenses are subject to competitive bidding. The general
competitive bidding procedures set forth in Part 1, Subpart Q of this
chapter will apply unless otherwise provided in this part.

73. Amend § 80.1252 by redesignating paragraphs (b)(5) and (d) as (b)(3)
    and (c), removing paragraph (b)(4), and revising newly redesignated
    paragraph (c) to read as follows:

**[§ 80.1252 Designated entities]{.underline}.**

\* \* \* \* \*

\(c\) A winning bidder that qualifies as a small business or consortium
of small businesses as defined in § 80.1252(b)(1) or § 80.1252(b)(3) of
this subpart may use the bidding credit specified in § 1.2110(f)(2)(ii)
of this chapter. A winning bidder that qualifies as a very small
business or consortium of very small businesses as defined in §
80.1252(b)(2) or § 80.1252(b)(3) may use the bidding credit specified in
§ 1.2110(f)(2)(i) of this chapter.

74. Amend § 90.705 by revising the first sentence to read as follows:

**[§ 90.705 Forms to be used.]{.underline}**

Phase II applications for EA, Regional, or Nationwide radio facilities
under this subpart must be prepared in accordance with §§ 1.2105 and
1.2107 of this chapter. \* \* \*

75. Revise § 90.801 to read as follows:

**[§ 90.801 900 MHz SMR spectrum subject to competitive
bidding.]{.underline}**

Mutually exclusive initial applications for 900 MHz SMR service licenses
are subject to competitive bidding. The general competitive bidding
procedures set forth in Part 1, Subpart Q of this chapter will apply
unless otherwise provided in this subpart.

**[§ 90.802 through § 90.803 \[Removed and Reserved\]]{.underline}**

76. Remove and reserve § 90.802 through § 90.803.

**[§ 90.805 through § 90.806 \[Removed and Reserved\]]{.underline}**

77. Remove and reserve § 90.805 through § 90.806.

78. Revise § 90.807 to read as follows:

**[§ 90.807 Submission of upfront payments.]{.underline}**

Each bidder in the 900 MHz SMR auction will be required to submit an
upfront payment of \$0.02 per MHz per pop, for the maximum number of
licenses (in terms of MHz‑pops) on which it intends to bid.

**[§ 90.808 \[Remove and Reserve\]]{.underline}**

79. Remove and reserve § 90.808.

80. Revise § 90.809 to read as follows:

**[§ 90.809 License grants.]{.underline}**

MTA licenses pursued through competitive bidding will be granted
pursuant to the requirements specified in § 1.945 of this chapter.

81. Revise § 90.810 to read as follows:

**[§ 90.810 Bidding credits for small businesses.]{.underline}**

A winning bidder that qualifies as a small business or a consortium of
small businesses, (as defined in § 90.814(b)(1)(i) may use a bidding
credit of 15 percent to lower the cost of its winning bid on any of the
blocks identified in § 90.617(d), Table 4B. A winning bidder that
qualifies as a small business or a consortium of small businesses, (as
defined in § 90.814(b)(1)(ii) may use a bidding credit of 10 percent to
lower the cost of its winning bid on any of the blocks identified in §
90.617(d), Table 4B.

**[§ 90.812 \[Remove and Reserve\]]{.underline}**

82. Remove and reserve § 90.812.

83. Amend § 90.813 by redesignating paragraphs (d), (e), and (f) as
    paragraphs (c), (d), and (e), and revising paragraph (a) and newly
    redesignated paragraph (c) to read as follows:

**[§ 90.813 Partitioned licenses and disaggregated
spectrum.]{.underline}**

\(a\) Eligibility. Parties seeking approval for partitioning and
disaggregation shall request an authorization for partial assignment of
a license pursuant to § 1.948 of this chapter.

\* \* \* \* \*

\(c\) Installment Payments.

\(1\) Apportioning the Balance on Installment Payment Plans. When a
winning bidder elects to pay for its license through an installment
payment plan pursuant to § 90.812, and partitions its licensed area or
disaggregates spectrum to another party, the outstanding balance owed by
the licensee on its installment payment plan (including accrued and
unpaid interest) shall be apportioned between the licensee and
partitionee or disaggregatee. Both parties will be responsible for
paying their proportionate share of the outstanding balance to the U.S.
Treasury. In the case of partitioning, the balance shall be apportioned
based upon the ratio of the population of the partitioned area to the
population of the entire original license area calculated based upon the
most recent census data. In the case of disaggregation, the balance
shall be apportioned based upon the ratio of the amount of spectrum
disaggregated to the amount of spectrum allocated to the licensed area.

\(2\) Parties Not Qualified For Installment Payment Plans.

\(i\) The partitionee or disaggregatee shall, as a condition of the
approval of the partial assignment application, pay its entire pro rata
amount within 30 days of Public Notice conditionally granting the
partial assignment application. Failure to meet this condition will
result in a rescission of the grant of the partial assignment
application.

\(ii\) The licensee shall be permitted to continue to pay its pro rata
share of the outstanding balance and shall receive new financing
documents (promissory note, security agreement) with a revised payment
obligation, based on the remaining amount of time on the original
installment payment schedule. These financing documents will replace the
licensee\'s existing financing documents which shall be marked
"superseded" and returned to the licensee upon receipt of the new
financing documents. The original interest rate, established pursuant to
§ 1.2110(g)(3)(i) of this chapter at the time of the grant of the
initial license in the market, shall continue to be applied to the
licensee\'s portion of the remaining government obligation. We will
require, as a further condition to approval of the partial assignment
application, that the licensee execute and return to the U.S. Treasury
the new financing documents within 30 days of the Public Notice
conditionally granting the partial assignment application. Failure to
meet this condition will result in the automatic cancellation of the
grant of the partial assignment application.

\(iii\) A default on the licensee\'s payment obligation will only affect
the licensee\'s portion of the market.

\(3\) Parties Qualified For Installment Payment Plans.

\(i\) Where both parties to a partitioning or disaggregation agreement
qualify for installment payments, the partitionee or disaggregatee will
be permitted to make installment payments on its portion of the
remaining government obligation, as calculated according to paragraph
(d)(1) of this section.

\(ii\) Each party will be required, as a condition to approval of the
partial assignment application, to execute separate financing documents
(promissory note, security agreement) agreeing to pay their pro rata
portion of the balance due (including accrued and unpaid interest) based
upon the installment payment terms for which they qualify under the
rules. The financing documents must be returned to the U.S. Treasury
within thirty (30) days of the Public Notice conditionally granting the
partial assignment application. Failure by either party to meet this
condition will result in the automatic cancellation of the grant of the
partial assignment application. The interest rate, established pursuant
to § 1.2110(g)(3)(i) of this chapter at the time of the grant of the
initial license in the market, shall continue to be applied to both
parties\' portion of the balance due. Each party will receive a license
for their portion of the partitioned market or disaggregated spectrum.

\(iii\) A default on an obligation will only affect that portion of the
market area held by the defaulting party.

\(iv\) Partitionees and disaggregatees that qualify for installment
payment plans may elect to pay some of their pro rata portion of the
balance due in a lump sum payment to the U.S. Treasury and to pay the
remaining portion of the balance due pursuant to an installment payment
plan.

\* \* \* \* \*

84. Amend § 90.814 by redesignating paragraph (b)(3) as (b)(2), revising
    newly redesignated paragraph (b)(2), and removing paragraphs (c),
    (d), (e), (f), (g), and (h) to read as follows:

**[§ 90.814 Definitions.]{.underline}**

\* \* \* \* \*

\(b\) \* \* \*

> \(2\) A small business consortium is a conglomerate organization
> formed as a joint venture between or among mutually independent
> business firms, each of which individually satisfies either definition
> of a small business in paragraph (b)(1) of this section. In a
> consortium of small businesses, each individual member must establish
> its eligibility as a small business, as defined in this section.

85. Revise § 90.815 to read as follows:

**[§ 90.815 Certifications, disclosures, records maintenance, and
definitions.]{.underline}**

(a) Short‑Form Applications: Certifications and Disclosure. Each
    applicant for an MTA license which qualifies as a small business or
    consortium of small businesses shall append the following
    information as an exhibit to its short‑ form application (Form 175):
    The identity of the applicant\'s affiliates, persons or entities
    that hold attributable interests in such entity, and their
    affiliates, and, if a consortium of small businesses, the members in
    the joint venture.

(b) Records Maintenance. All winning bidders qualifying as small
    businesses, shall maintain at their principal place of business an
    updated file of ownership, revenue and asset information, including
    any documents necessary to establish eligibility as a small business
    and/or consortium of small businesses under § 90.814. Licensees (and
    their successors in interest) shall maintain such files for the term
    of the license.

(c) Definitions. The terms affiliate, business owned by members of
    minority groups and/or women, consortium of small businesses, gross
    revenues, members of minority groups, nonattributable equity, small
    business and total assets used in this section are defined in §
    90.814.

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86. Revise § 90.901 to read as follows:

**[§ 90.901 900 MHz SMR spectrum subject to competitive
bidding.]{.underline}**

Mutually exclusive initial applications for 800 MHz band licenses in
Spectrum Blocks A through V are subject to competitive bidding. The
general competitive bidding procedures set forth in Part 1, Subpart Q of
this chapter will apply unless otherwise provided in this subpart.

**[§ 90.902 \[Removed and Reserved\]]{.underline}**

87. Remove and reserve § 90.903.

88. Revise § 90.903 to read as follows:

[§ 90.903 Competitive bidding mechanisms.]{.underline}

\(a\) Sequencing. The Wireless Telecommunications Bureau will establish
and may vary the sequence in which 800 MHz SMR licenses for Spectrum
Blocks A through V will be auctioned.

\(b\) Grouping.

\(1\) All EA licenses for Spectrum Blocks A through V will be auctioned
simultaneously, unless the Wireless Telecommunications Bureau announces,
by Public Notice prior to the auction, an alternative method of grouping
these licenses for auction.

\(2\) Spectrum Blocks D through V. All EA licenses for Spectrum Blocks D
through V will be auctioned by the following Regions:

\(i\) Region 1 (Northeast): The Northeast Region consists of the
following MTAs: Boston‑Providence, Buffalo‑Rochester, New York,
Philadelphia, and Pittsburgh.

\(ii\) Region 2 (South): The South Region consists of the following
MTAs: Atlanta, Charlotte‑Greensboro‑Greenville‑Raleigh, Jacksonville,
Knoxville, Louisville‑Lexington‑Evansville, Nashville, Miami‑Fort
Lauderdale, Richmond‑ Norfolk, Tampa‑St. Petersburg‑Orlando, and
Washington‑Baltimore; and, Puerto Rico and United States Virgin Islands.

\(iii\) Region 3 (Midwest): The Midwest Region consists of the following
MTAs: Chicago, Cincinnati‑Dayton, Cleveland, Columbus, Des Moines‑Quad
Cities, Detroit, Indianapolis, Milwaukee, Minneapolis‑St. Paul, and
Omaha.

\(iv\) Region 4 (Central): The Central Region consists of the following
MTAs: Birmingham, Dallas‑Fort Worth, Denver, El Paso‑Albuquerque,
Houston, Kansas City, Little Rock, Memphis‑Jackson, New Orleans‑Baton
Rouge, Oklahoma City, San Antonio, St. Louis, Tulsa, and Wichita.

\(v\) Region 5 (West): The West Region consists of the following MTAs:
Honolulu, Los Angeles‑San Diego, Phoenix, Portland, Salt Lake City, San
Francisco‑Oakland‑San Jose, Seattle (including Alaska), and
Spokane‑Billings; and, American Samoa, Guam, and the Northern Mariana
Islands.

**[§ 90.905 through § 90.908 \[Removed and Reserved\]]{.underline}**

89. Remove and reserve § 90.905 through § 90.908.

90. Revise § 90.909 to read as follows:

**[§ 90.909 License grants.]{.underline}**

EA licenses pursued through competitive bidding procedures will be
granted pursuant to the requirements specified in § 1.945 of this
chapter.

91. Revise § 90.910 to read as follows:

**[§ 90.910 Bidding credits.]{.underline}**

A winning bidder that qualifies as a very small business or a consortium
of very small businesses, as defined in §§ 90.912(b)(2) and (b)(4), may
use a bidding credit of 35 percent to lower the cost of its winning bid
on Spectrum Blocks A through V. A winning bidder that qualifies as a
small business or a consortium of small businesses, as defined in §§
90.912(b)(1) or (b)(3), may use a bidding credit of 25 percent to lower
the cost of its winning bid on Spectrum Blocks A through V.

92. Amend § 90.911 by redesignating paragraphs (d), (e), (f) and (g) as
    (c), (d), (e) and (f).

93. Amend § 90.912 by redesignating paragraphs (b)(4) and (b)(5) as
    paragraphs (b)(3) and (b)(4), revising paragraphs (b)(1) and (b)(2),
    and removing paragraphs (c) and (d) to read as follows:

**[§ 90.912 Definitions.]{.underline}**

\* \* \* \* \*

\(b\) Small Business; Very Small Business; Consortium of Small
Businesses; Consortium of Very Small Businesses.

\(1\) A small business is an entity that together with its affiliates
and controlling interests, has average gross revenues that do not exceed
\$15 million for the three preceding years; or

\(2\) A very small business is an entity that together with its
affiliates and controlling interests, has average gross revenues that do
not exceed \$3 million for the three preceding years.

94. Revise § 90.913 to read as follows:

**[§ 90.913 Certifications, disclosures, records maintenance, and
definitions.]{.underline}**

\(a\) Short‑Form Applications: Certifications and Disclosure. Each
applicant for an EA license which qualifies as a small business or
consortium of small businesses under § 90.912(b) shall append as an
exhibit to its short‑form application (FCC Form 175): The identity of
the applicant\'s affiliates and controlling principals, and, if a
consortium of small businesses (or a consortium of very small
businesses), the members of the joint venture.

\(b\) Records Maintenance. All winning bidders qualifying as small
businesses or very small businesses, shall maintain at their principal
place of business an updated file of ownership, revenue and asset
information, including any document necessary to establish eligibility
as a small business, very small business and/or consortium of small
businesses (or consortium of very small businesses) under § 90.912.
Licensees (and their successors in interest) shall maintain such files
for the term of the license.

\(c\) Definitions. The terms small business, very small business,
consortium of small businesses, and consortium of very small businesses
used in this section are defined in § 90.912.

95. Revise § 90.1001 to read as follows:

**[§ 90.1001 220 MHz service subject to competitive
bidding.]{.underline}**

Mutually exclusive initial applications for 200 MHz geographic area
licenses are subject to competitive bidding. The general competitive
bidding procedures set forth in Part 1, Subpart Q of this chapter will
apply unless otherwise provided in this subpart.

**[§ 90.1003 \[Removed and Reserved\]]{.underline}**

96. Remove and reserve § 90.1003.

**[§ 90.1005 \[Removed and Reserved\]]{.underline}**

97. Remove and reserve § 90.1005.

**[§ 90.1007 \[Removed and Reserved\]]{.underline}**

98. Remove and reserve § 90.1007.

**[§ 90.1009 \[Removed and Reserved\]]{.underline}**

99. Remove and reserve § 90.1009.

**[§ 90.1011 \[Removed and Reserved\]]{.underline}**

100. Remove and reserve § 90.1011.

**[§ 90.1013 \[Removed and Reserved\]]{.underline}**

101. Remove and reserve § 90.1013.

**[§ 90.1015 \[Removed and Reserved\]]{.underline}**

102. Remove and reserve § 90.1015.

103. Revise § 90.1017 to read as follows:

**[§ 90.1017 Bidding credits for small businesses and very small
businesses.]{.underline}**

Bidding credits. A winning bidder that qualifies as a small business or
a consortium of small businesses as defined in §§ 90.1021(b)(1) or
90.1021(b)(3) may use a bidding credit of 25 percent to lower the cost
of its winning bid. A winning bidder that qualifies as a very small
business or a consortium of very small businesses as defined in §§
90.1021(b)(2) or 90.1021(b)(3) may use a bidding credit of 35 percent to
lower the cost of its winning bid.

104. Amend § 90.1021, by redesignating paragraph (b)(4) as paragraph
     (b)(3), revising paragraphs (b)(1) and (b)(2), and removing
     paragraphs (c) and (d) to read as follows:

**[§ 90.1021 Definitions concerning competitive bidding
process.]{.underline}**

\* \* \* \* \*

\(b\) \* \* \*

\(1\) A small business is an entity that, together with its affiliates
and controlling interests, has average gross revenues that are not more
than \$15 million for the preceding three years.

\(2\) A very small business is an entity that, together with its
affiliates and controlling interests, has average gross revenues that
are not more than \$3 million for the preceding three years.

\* \* \* \* \*

105. Revise § 90.1023 to read as follows:

**[§ 90.1023 Certifications, disclosures, and records
maintenance.]{.underline}**

\(a\) Short‑Form Applications: Certifications and Disclosure. In
addition to certifications and disclosures required in Part 1, Subpart
Q, of this chapter, each applicant for a 220 MHz service geographic area
license which qualifies as a small business, very small business,
consortium of small businesses, or consortium of very small businesses,
shall append the following information as an exhibit to its FCC Form
175: the identity of the applicant\'s affiliates and controlling
interests, and, if a consortium of small businesses (or consortium of
very small businesses), the members of the joint venture.

\(b\) Records maintenance. All winning bidders qualifying as small
businesses or very small businesses shall maintain at their principal
place of business an updated file of ownership, revenue, and asset
information, including any documents necessary to establish eligibility
as a small business or very small business and/or consortium of small
businesses (or consortium of very small businesses) under § 90.1021.
Licensees (and their successors‑in‑interest) shall maintain such files
for the term of the license. Applicants that do not obtain the
license(s) for which they applied shall maintain such files until the
grant of such license(s) is final, or one year from the date of the
filing of their short‑form application (FCC Form 175), whichever is
earlier.

\(c\) Definitions. The terms affiliate, small business, very small
business, consortium of small businesses (or consortium of very small
businesses), and gross revenues used in this section are defined in §
90.1021.

106. Revise § 90.1025 to read as follows:

**[§ 90.1025 Limitations on settlements]{.underline}**.

The consideration that an individual or an entity will be permitted to
receive for agreeing to withdraw an application or a petition to deny
will be limited by the provisions set forth in § 1.2105(c) of this
chapter.

107. Revise § 90.1101 to read as follows:

**[§ 90.1101 Location and Monitoring service subject to competitive
bidding.]{.underline}**

Mutually exclusive initial applications for multilateration Location and
Monitoring Service licenses are subject to competitive bidding. The
general competitive bidding procedures set forth in Part 1, Subpart Q of
this chapter will apply unless otherwise provided in this subpart.

108. Amend § 90.1103 by redesignating paragraphs (b)(5) and (d) as
     paragraphs (b)(3) and

     (c), and revising newly redesignated paragraph (c) to read as
     follows:

**[§ 90.1103 Designated entities.]{.underline}**

\* \* \* \* \*

\(c\) A winning bidder that qualifies as a small business or a
consortium of small businesses as defined in paragraphs (b)(1) or (b)(3)
of this section may use the bidding credit specified in §
1.2110(f)(2)(ii) of this chapter. A winning bidder that qualifies as a
very small businesses or a consortium of very small businesses as
defined in paragraph (b)(2) or (b)(3) of this section may use the
bidding credit specified in § 1.2110(f)(2)(i) of this chapter.

109. Amend § 95.816 by redesignating paragraphs (c)(5), (e), and(f) as
     paragraphs (c)(3), (d), and (e), revising paragraph (a), and
     revising newly redesignated paragraphs (d) and (e) to read as
     follows:

**[§95.816 Competitive bidding proceedings.]{.underline}**

\(a\) Mutually exclusive initial applications for 218‑219 MHz Service
licenses are subject to competitive bidding. The general competitive
bidding procedures set forth in Part 1, Subpart Q of this chapter will
apply unless otherwise provided in this part.

\* \* \* \* \*

(d) Bidding credits. A winning bidder that qualifies as a small business
    or a consortium of small

businesses as defined in this subsection may use the bidding credit
specified in § 1.2110(f)(2)(ii) of this chapter. A winning bidder that
qualifies as a very small business or a consortium of very small
businesses as defined in this subsection may use the bidding credit
specified in accordance with § 1.2110(f)(2)(i) of this chapter.

\(e\) Winning bidders in Auction No. 2, which took place on July 28-29,
1994, that, at the time of

auction, met the qualifications under the Commission's rules then in
effect, for small business status will receive a twenty-five percent
bidding credit pursuant to Amendment of Part 95 of the Commission's
Rules to Provide Regulatory Flexibility in the 218-219 MHz Service,
Report and Order and Memorandum Opinion and Order, FCC 99-239 (released
September 10, 1999).

110. Amend § 95.823 by redesignating paragraphs (c)(2) and (c)(3) as
     paragraphs (c)(1) and (c)(2), and revising newly redesignated
     paragraphs (c)(1)(i) and (c)(1)(iii) to read as follows:

**[§ 95.823 Geographic partitioning and spectrum
disaggregation.]{.underline}**

\* \* \* \* \*

\(c\) \* \* \*

\(1\) \* \* \*

\(i\) When a winning bidder (partitionor or disaggregator) that elected
to pay for its license through an installment payment plan partitions
its license or disaggregates spectrum to another party (partitionee or
disaggregatee) that would not qualify for an installment payment plan,
or elects not to pay for its share of the license through installment
payments, the outstanding principal balance owed by the partitionor or
disaggregator shall be apportioned according to § 1.2111(e)(3) of this
chapter. The partitionor or disaggregator is responsible for accrued and
unpaid interest through and including the consummation date.

\* \* \* \* \*

\(iii\) The partitionor or disaggregator shall be permitted to continue
to pay its pro rata share of the outstanding balance and, if applicable,
shall receive loan documents evidencing the partitioning and
disaggregation. The original interest rate, established pursuant to §
1.2110(g)(3)(i) of this chapter at the time of the grant of the initial
license in the market, shall continue to be applied to the
partitionor\'s or disaggregator\'s portion of the remaining government
obligation.

\* \* \* \* \*

111. Revise § 100.71 to read as follows:

**[§ 100.71 DBS subject to competitive bidding.]{.underline}**

Mutually exclusive initial applications for DBS service licenses are
subject to competitive bidding. The general competitive bidding
procedures set forth in Part 1, Subpart Q of this chapter will apply
unless otherwise provided in this part.

**[§ 100.72 through § 100.76 \[Removed and Reserved\]]{.underline}**

112. Remove and reserve § 100.72 through § 100.76.

**[§ 100.78 through § 100.79 \[Removed and Reserved\]]{.underline}**

113. Remove and reserve § 100.78 through § 100.79.

114. Amend § 101.56 by revising paragraph (i) to read as follows:

**[§ 101.56 Partitioned service areas (PSAs) and disaggregated
spectrum.]{.underline}**

\* \* \* \* \*

(i) Licensees, including those using bidding credits in a competitive
    bidding procedure, shall

have the authority to partition service areas or disaggregate spectrum.

**[§101.531 \[Removed and Reserved\]]{.underline}**

115. Remove and reserve §101.531.

116. Amend § 101.535 by redesignating paragraphs (a)(2) (a)(3), (d),
     and (e) as paragraphs (a)(1) (a)(2), (c), and (d).

117. Revise § 101.537 to read as follows:

**[§ 101.537 24 GHz band subject to competitive bidding.]{.underline}**

Mutually exclusive initial applications for 24 GHz band licenses are
subject to competitive bidding. The general competitive bidding
procedures set forth in Part 1, Subpart Q of this chapter will apply
unless otherwise provided in this subpart.

118. Amend § 101.538 by redesignating paragraphs (a)(7) and (c) as
     paragraphs (a)(5) and (b)

     and revising newly redesignated paragraphs (a)(5) and (b) to read
     as follows:

**[§ 101.538 Designated entities]{.underline}.**

(a) \* \* \*

\(5\) A consortium of very small businesses, a consortium of small
businesses, or a consortium of entrepreneurs is a conglomerate
organization formed as a joint venture between or among mutually
independent business firms, each of which individually satisfies the
applicable definition in paragraphs (a)(1), (a)(2) or (a)(3) of this
section. Where an applicant or licensee is a consortium of very small

businesses, a consortium of small businesses, or a consortium of
entrepreneurs, the gross revenues of each very small business, small
business, or entrepreneur shall not be aggregated.

\(b\) Bidding credits. A winning bidder that qualifies as a very small
business or a consortium of very small businesses as defined in this
section may use the bidding credit specified in § 1.2110(f)(2)(i) of
this chapter. A winning bidder that qualifies as a small business or a
consortium of small businesses as defined in this section may use the
bidding credit specified in § 1.2110(f)(2)(ii) of this chapter. A
winning bidder that qualifies as an entrepreneur or a consortium of
entrepreneurs as defined in this section may use the bidding credit
specified in § 1.2110(f)(2)(iii) of this chapter.

119. Revise § 101.1101 to read as follows:

**[§ 101.1101 LMDS service subject to competitive
bidding.]{.underline}**

Mutually exclusive initial applications for LMDS licenses are subject to
competitive bidding procedures. The general competitive bidding
procedures set forth in Part 1, Subpart Q of this chapter will apply
unless otherwise provided in this subpart.

**[§ 101.1102 through § 101.1105 \[Removed and Reserved\]]{.underline}**

120. Remove and reserve § 101.1102 through § 101.1105.

121. Revise § 101.1107 to read as follows:

[§ 101.1107 Bidding credits for very small businesses, small businesses
and entrepreneurs.]{.underline}

\(a\) A winning bidder that qualifies as a very small business or a
consortium of very small businesses pursuant to § 101.1112 may use a
bidding credit of 45 percent to lower the cost of its winning bid.

\(b\) A winning bidder that qualifies as a small business or a
consortium of small businesses pursuant to § 101.1112 may use a bidding
credit of 35 percent to lower the cost of its winning bid.

\(c\) A winning bidder that qualifies as an entrepreneur or a consortium
of entrepreneurs pursuant to § 101.1112 may use a bidding credit of 25
percent to lower the cost of its winning bid.

\(d\) The bidding credits referenced in paragraphs (a), (b) and (c) of
this section are not cumulative.

122. Revise § 101.1109 to read as follows:

**[§ 101.1109 Certifications, disclosures, and records
maintenance.]{.underline}**

\(a\) Short‑form applications: certifications and disclosure. In
addition to certifications and disclosures required in Part 1, Subpart
Q, of this chapter, each applicant for an LMDS license which qualifies
as a very small business, small business or entrepreneurs pursuant to §
101.1112 shall append the following information as an exhibit to its
short‑form applications (FCC Form 175): The identities of the
applicant\'s affiliates and controlling interests.

\(b\) Records maintenance. All winning bidders qualifying as very small
businesses, small businesses or entrepreneurs shall maintain at their
principal place of business an updated file of ownership, revenue, and
asset information, including any document necessary to establish
eligibility as a very small business, small business or entrepreneur.
Licensees (and their successors‑in‑ interest) shall maintain such files
for the term of the license. Applicants that do not obtain the
license(s) for which they applied shall maintain such files until the
grant of such license(s) is final, or one year from the date of the
filing of their short‑form application (FCC Form 175), whichever is
earlier.

**[§ 101.1110 \[Removed and Reserved\]]{.underline}**

123. Remove and reserve § 101.1110.

124. Amend § 101.1112 by revising paragraphs (b), (c), (d), and (e) to
     read as follows:

**[§ 101.1112 Definitions.]{.underline}**

\* \* \* \* \*

(b) Very small business. A very small business is an entity that,
    together with its affiliates and

controlling interests, has average gross revenues for the three
preceding years of not more than \$15 million.

(c) Small business. A small business is an entity that, together with
    its affiliates and controlling interests, has average gross revenues
    for the three preceding years of more than \$15 million but not more
    than \$40 million.

(d) Entrepreneur. An entrepreneur is an entity that, together with 7its
    affiliates and controlling interests, has average gross revenues for
    the three preceding years of more than \$40 million but not more
    than \$75 million.

(e) For purposes of determining whether an entity meets the definition
    of very small business, small

business or entrepreneur, the gross revenues of the applicant, its
affiliates and controlling interests shall be considered on a cumulative
basis and aggregated.

\* \* \* \* \*

125. Revise § 101.1201 to read as follows:

**[§ 101.1201 38.6-40.0 GHz subject to competitive
bidding.]{.underline}**

Mutually exclusive initial applications for 38.6‑40.0 GHz band licenses
are subject to competitive bidding. The general competitive bidding
procedures set forth in Part 1, Subpart Q of this chapter will apply
unless otherwise provided in this subpart.

**[§ 101.1202 through § 101.1207 \[Removed and Reserved\]]{.underline}**

126. Remove and reserve § 101.1202 through § 101.1207.

127. Revise § 101.1208 to read as follows:

**[§ 101.1208 Bidding credits for small businesses.]{.underline}**

A winning bidder that qualifies as a small business or a consortium of
small businesses, (as defined in § 101.1209(b)(1)(i) may use a bidding
credit of 25 percent to lower the cost of its winning bid on any of the
licenses in this part. A winning bidder that qualifies as a very small
business or a consortium of very small businesses, (as defined in §
101.1209(b)(1)(ii) may use a bidding credit of 35 percent to lower the
cost of its winning bid on any of the licenses in this part.

128. Amend § 101.1209 by redesignating paragraph (b)(3) as (b)(2) and
     revising newly redesignated paragraph (b)(2) to read as follows:

**[§ 101.1209 Definitions.]{.underline}**

\* \* \* \* \*

b.  \(b\) \* \* \*

\(2\) A small business consortium is a conglomerate organization formed
as a joint venture between or among mutually independent business firms,
each of which individually satisfies either definition of a small
business in paragraphs (b)(1) of this section.

129. Revise § 101.1317 to read as follows:

**[§ 101.1317 Competitive bidding procedures for mutually exclusive MAS
EA applications.]{.underline}**

Mutually exclusive initial applications for licenses in the portions of
the MAS bands licensed on a geographic area basis are subject to
competitive bidding procedures. The general competitive bidding
procedures set forth in Part 1, Subpart Q of this chapter will apply
unless otherwise provided in this subpart.

130. Amend § 101.1319 by removing paragraph (c) and revising
     paragraph (b) to read as follows:

     **[§ 101.1319 Competitive bidding provisions.]{.underline}**

\* \* \* \* \*

\(b\) Bidding credits. A winning bidder that qualifies as a small
business, as defined in this section, or a consortium of small
businesses, may use the bidding credit specified in § 1.2110(f)(2)(ii)
of this chapter. A winning bidder that qualifies as a very small
business, as defined in this section, or a consortium of very small
businesses, may use the bidding credit specified in § 1.2110(f)(2)(i) of
this chapter.

131. Amend § 101.1323 by redesignating paragraphs (d) and (e) as
     paragraphs (c) and (d).

[^1]: Service-specific rules are rules promulgated by the Commission
    that are tailored to a particular service. Implementation of Section
    309(j) of the Communications Act -- Competitive Bidding, *Second
    Report and Order*, 9 FCC Rcd 2348, 2350, ¶ 10 (1994) ("*Competitive
    Bidding Second Report and Order*"). We recognize that the spectrum
    governed by the Part 26 rules is subject to ongoing proceeding and
    that the Commission is considering a proposal to delete the Part 26
    rules. 4.9 GHz Transferred from Federal Government Use, *Notice of
    Proposed Rulemaking*, 15 FCC Rcd 4778 (2000); Amendment of the
    Commission\'s Rules With Regard to the 3650-3700 MHz Government
    Transfer Band and 4.9 GHz Band Transferred from Federal Government
    Use, *First Report and Order and Second Notice of Proposed
    Rulemaking*, 15 FCC Rcd 20488 (2000). Pending action on this
    proposal, the Bureau makes conforming edits to the Part 26
    competitive bidding rules consistent with edits made to the other
    service-specific competitive bidding rules.

[^2]: The Part 1 general competitive bidding rules are found in 47
    C.F.R. Part 1, Subpart Q ("Part 1 general competitive bidding
    rules").

[^3]: Amendment of Part 1 of the Commission's Rules -- Competitive
    Bidding Procedures*, 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, 15330, ¶ 78, 15336, ¶ 101
    (2000) ("*Part 1 Recon Order of the Third Report & Order*" and
    "*Part 1 Fifth Report and Order*") ("We hereby instruct the Wireless
    Telecommunications Bureau to make conforming edits to the Code of
    Federal Regulations consistent with this decision."); 47 U.S.C. §
    155(c); 47 C.F.R. §§ 0.131(d) and 0.331(d).

[^4]: 47 U.S.C. § 161(a); *see* 2000 Biennial Regulatory Review,
    *Report*, 16 FCC Rcd 1207 (2001) (The Bureau "has also engaged in a
    comprehensive effort to streamline its procedures."); Biennial
    Regulatory Review 2000, *Staff Report*, 15 FCC Rcd 21089, 21238,
    21329, 21324-43, 21352-53, 21358 (2000) ("*2000 Biennial Staff
    Report*") (recommending that service-specific rules be eliminated to
    the extent that they are redundant with the Part 1 competitive
    bidding rules).

[^5]: 47 C.F.R. § 0.331(d).

[^6]: *E.g*., 47 C.F.R. § 101.538(a)(7) ("and" is changed to "or").

[^7]: 47 C.F.R. § 24.711(b) (installment payments for broadband PCS C
    block licenses).

[^8]: Amendment of Part 1 of the Commission's Rules -- Competitive
    Bidding Procedures, *Third Report and Order and Second Further
    Notice of Proposed Rule Making*, 13 FCC Rcd 374, 530-31 (1998)
    ("*Part 1 Third Report and Order*"); Section 309(j) of the
    Communications Act - Competitive Bidding, *Sixth Report and Order*,
    11 FCC Rcd 136 (1996) ("*Competitive Bidding Sixth Report and
    Order"*).

[^9]: 47 C.F.R. § 0.331(d). In the *Part 1 Order*, the Commission
    clarified that the Bureau's delegation of authority to administer
    auctions includes the authority to implement all of the Commission's
    rules pertaining to auctions procedures. Amendment of Part 1 of the
    Commission's Rules -- Competitive Bidding Procedures, *Order,
    Memorandum Opinion and Order and Notice of Proposed Rulemaking*, 12
    FCC Rcd 5686, 5697-98, ¶ 16 (1997) ("*Part 1 Order*") (citing 47
    C.F.R. § 0.131). Accordingly, we delete, in whole or in part, the
    following service-specific provisions that are redundant with this
    broad delegation of authority to conduct auctions: sections 22.962,
    22.964, 27.202, 90.803, 90.805, 90.806, 90.903(c)-(f), 90.906,
    100.73, 100.75, 101.1103(g), 101.1204. 47 C.F.R. §§ 22.962, 22.964,
    27.202, 90.803, 90.805, 90.806, 90.903(c)-(f), 90.906, 100.73,
    100.75, 101.1103(g), and 101.1204.

[^10]: *Competitive Bidding Second Report and Order*, 9 FCC Rcd at 2350,
    ¶ 10, 2405-12.

[^11]: Accordingly, the service-specific competitive bidding rules
    explicitly state that the Part 1 rules apply unless otherwise
    provided. 47 C.F.R. §§ 21.950, 22.201, 22.228, 22.960, 24.301,
    24.701, 25.401, 26.201, 27.201, 27.501(a), 27.701, 73.5000(a),
    74.910, 80.1251, 90.801, 90.901, 90.1001, 90.1101, 95.816(a),
    100.71, 101.537, 101.1101, 101.1201, and 101.1317. Section 74.910
    incorporates this design to the Instructional Television Fixed
    Service (ITFS) by referencing section 73.5000. 47 C.F.R. §§ 73.5000
    and 74.819; *see also* *Part 1 Third Report and Order*, 13 FCC Rcd
    at 376-81, ¶¶ 1-3; *Competitive Bidding Second Report and Order*, 9
    FCC Rcd at 2350, ¶ 10 ("\[I\]n the future, specific rules within the
    scope of these general \[Part 1\] rules will be adopted in a Report
    and Order for each service subject to competitive bidding. These
    subsequent Reports and Orders will set forth specific competitive
    bidding rules for each service that meets the criteria in section
    309(j)(2).").

[^12]: *See, e.g.,* 47 C.F.R. §§ 24.301-24.320 (1994) (narrowband
    Personal Communications Service ("PCS")), 47 C.F.R. §§ 24.701-24.720
    (1994) (broadband PCS), 47 C.F.R. §§ 90.901-90.913 (1996) (800 MHz
    Specialized Mobile Radio (SMR)), 47 C.F.R. § 95.816 (1999) (218-219
    MHz Service)), 47 C.F.R. §§ 100.71-100.80 (1995) (Direct Broadcast
    Satellite), and 47 C.F.R. §§ 21.921-21.961 (1995) (Multipoint
    Distribution Service).

[^13]: *Part 1* *Order,* 12 FCC Rcd at 5689, ¶ 4.

[^14]: *Compare, e.g.,* 47 C.F.R. § 24.720(e) (definition of "rural
    telephone company" in the broadband PCS rules) *with* 47 C.F.R. §
    1.2110(c)(4) (definition of "rural telephone company" in the Part 1
    rules).

[^15]: *Part 1* *Order,* 12 FCC Rcd at 5689, ¶ 4 ("\[W\]e seek to
    establish a uniform set of provisions that would incorporate our
    experience to date and allow us to conduct future auctions in a more
    consistent, efficient, and effective manner."); *Part 1 Third Report
    and Order*, 13 FCC Rcd at 376-81, ¶¶ 1-3.

[^16]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15330, ¶ 78.

[^17]: *Id.* ("We hereby instruct the Wireless Telecommunications Bureau
    to make conforming edits to the Code of Federal Regulations
    consistent with this decision.").

[^18]: *Id.*

[^19]: Redundant rules repeat or unnecessarily cross-reference the Part
    1 general competitive bidding rules.

[^20]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15330, ¶ 78. The
    Commission's reference to the "course of the Part 1 proceeding"
    includes the modifications adopted in the *Part 1 Third Report and
    Order*.

[^21]: When the Commission departed from the Part 1 general competitive
    bidding rules the Commission so indicated in the rule itself and/or
    the respective proceeding that adopted the rule. For example, in the
    Radio Broadcast Services context, section 73.5005, the
    service-specific rule that outlines the long-form application
    procedures, is retained because this rule departs from the general
    competitive long-form application rule in section 1.2107. 47 C.F.R.
    §§ 1.2107 and 73.5005. Implementation of Section 309(j) of the
    Communications Act -- Competitive Bidding for Commercial Broadcast
    and Instructional Television Fixed Service Licenses*, First Report
    and Order*, 13 FCC Rcd 15920, 15984, ¶ 163 (1998) ("*Commercial
    Broadcast Competitive Bidding First Report and Order "*) (Because of
    the technical and legal complexities of long-form applications
    submitted for licenses in the radio broadcast services, winning
    bidders in the Radio Broadcast Services auction were permitted 30
    business days after notification of their winning bidder status to
    file their long-form application for a license, rather than the 10
    days allocated in the Part 1 general competitive bidding rules.); 47
    C.F.R. § 1.2107.

[^22]: 47 C.F.R. § 0.331(d).

[^23]: 47 C.F.R. §§ 22.227, 24.711(b)(3)-(5), 73.5009, 90.809(b),
    90.813(a), 90.909(c), 90.913(a), 95.816(f), and 101.538(a)(7).

[^24]: We note that some rules or portions thereof are removed or
    modified for more than one reason. Thus, this Order must be read in
    its entirety to understand all the reasons a particular rule or
    portion thereof is modified or removed. For example, portions of
    section 22.962 are removed because they are redundant with the
    Bureau's broad delegation of authority to conduct auctions. 47
    C.F.R. § 0.331(d); *see supra* note 9. Section 22.962 is also
    removed because it is redundant with section 1.2104. 47 C.F.R. §§
    1.2104, 22.962; *see* paragraph 8.

[^25]: 47 C.F.R. §§ 1.2107(e), 1.2110(f)(3)(ii)(B), (f)(3)(iii)-(iv),
    (vii), 21.956(b)(3), 21.960(b)(4), 22.223(b)(3), 24.321(c)(1),
    24.709, 24.711(b)-(b)(2), 24.712(a)-(b), 24.714(d)(1), (d)(2)(i),
    (iii), (d)(3)(i), (ii), 24.716(b)-(b)(2), 24.717(a)-(b),
    24.720(b)(5), (c)(2), (j)(2), (k)(4), (n)(3)-(4), 26.210(a),
    27.15(d)-(e), 73.3571(h)(4)(i), 73.3573(f)(5)(ii), 73.5005(a),
    73.5006(d), 80.1252(d), 90.705, 90.813(d)(2)(ii)-(iv), (3)(ii), (e),
    (f), 90.814(a)(3), 90.910(a), 90.1017(a), 90.1025(b), 90.1103(d),
    95.816(e), 95.823(c)(2)(i), (iii), (3), 101.538(c), and 101.1319(b).

[^26]: Thus, to opt out of a particular Part 1 general competitive
    bidding rule, the service-specific competitive bidding rule need
    only specify the provision that is not applicable. For example, the
    Part 1 unjust enrichment provisions contained in section
    1.2111(b)-(e) do not apply to assignments or transfers of broadcast
    construction permits or licenses governed by Part 73 because Part 73
    has a service-specific unjust enrichment provision. 47 C.F.R §
    73.5007(c). Accordingly, we modify section 73.5009 to state that
    section 1.2111(b)-(e) does not apply. However, it is unnecessary to
    further provide in section 73.5009 that section 1.2111(a) continues
    to apply in light of the provision in section 73.5000 that the Part
    1 competitive bidding rules apply unless otherwise indicated.
    Similarly, we modify section 73.5009(b) to enumerate only those
    portions of the Part 1 ownership disclosure requirements contained
    in section 1.2112(a) that do not apply to the assignment or transfer
    of broadcast construction permits or licenses that are subject to
    competitive bidding. 47 C.F.R. §§ 1.2112(a), 73.5009(b);
    Implementation of Section 309(j) of the Communications Act --
    Competitive Bidding for Commercial Broadcast and Instructional
    Television Fixed Service Licenses, *Memorandum Opinion and Order*,
    14 FCC Rcd 8724, 8746-47, ¶ 45 (1999) ("*Commercial Broadcast
    Competitive Bidding MO&O"*). Again, in light of section 73.5000(a),
    it would be redundant to repeat those portions of section 1.2112
    that continue to apply to services governed by Part 73. Further,
    because section 73.5009(b) only applies to assignment or transfers
    of control, section 1.2112(a) would continue to apply to short form
    applications ("FCC Form 175").

[^27]: The cross-reference to section 73.5000 in section 73.3572(e)(2)
    is removed, and section 73.5000(a) is revised by adding Class A
    television to the list of services subject to competitive bidding.
    47 C.F.R. §§ 73.3572(e)(2) and 73.5000(a).

[^28]: We remove the provision in section 73.3572(f) stating that the
    competitive bidding procedures will apply to applications for minor
    modifications to Class A service if there is mutual exclusivity.
    This provision is redundant with section 73.5000(a), as revised by
    this Order. 47 C.F.R. §§ 73.3572(f) and 73.5000(a).

[^29]: 47 C.F.R. §§ 21.950, 22.201, 22.228, 22.960, 24.301, 24.701,
    25.401, 26.201, 27.201, 27.501(a), 27.701, 73.3572(e)(2), (f),
    73.5000(a), 80.1251, 90.801, 90.901, 90.1001, 90.1101, 95.816(a),
    100.71, 101.537, 101.1101, 101.1201, and 101.1317.

[^30]: 47 C.F.R. § 1.2103.

[^31]: *Id*.; *Competitive Bidding Second Report and Order*, 9 FCC Rcd
    at 2360-68, ¶¶ 68-115; *Part 1 Third Report and Order*, 13 FCC Rcd
    at 447-54, ¶¶ 123-37.

[^32]: 47 C.F.R. §§ 1.2103, 21.951(a)-(a)(1), 22.203, 22.961, 24.702,
    26.202, 90.802, 90.902, 90.1003, 100.72, 101.1102, and 101.1202.

[^33]: 47 C.F.R. § 1.2104; *Competitive Bidding Second Report and
    Order*, 9 FCC Rcd at 2367-73, ¶¶ 116-45.

[^34]: The default provisions of section 1.2104(g)(2) do not apply to
    installment payment defaulters. 47 C.F.R. § 1.2104(g)(2); *Part 1
    Fifth Report and Order*, 15 FCC Rcd at 15315-16, ¶ 39 (clarifying
    that licensees defaulting on installment payments are not subject to
    section 1.2104(g)(2), but are instead subject to section
    1.2110(g)(4). A petition for reconsideration is pending on this
    issue).

[^35]: 47 C.F.R. § 1.2104; *Competitive Bidding Second Report and
    Order*, 9 FCC Rcd at 2367- 75, ¶¶ 116-59; *Part 1 Third Report and
    Order*, 13 FCC Rcd at 454-70, ¶¶ 138-169.

[^36]: 47 C.F.R. § 1.2104.

[^37]: 47 C.F.R. §§ 21.951(a)(2)-(c), 22.205, 22.962, 25.402, 26.203,
    27.202, 73.5001, 90.803, 90.903(c)-(f), 90.1005, 90.1015(b), 100.73,
    101.1103, and 101.1203.

[^38]: 47 C.F.R. § 1.2104.

[^39]: 47 C.F.R. §§ 21.959(a)-(b), 22.207, 22.215(b), 22.963, 24.704,
    27.203, 73.5004(a), 90.805, 90.905, 90.1007, 100.74, and 100.78(b).

[^40]: 47 C.F.R. § 1.2105; *Competitive Bidding Second Report and
    Order*, 9 FCC Rcd at 2386-88, ¶¶ 221-26; *Part 1 Third Report and
    Order*, 13 FCC Rcd at 412-16, ¶¶ 63-70, 463-69, ¶¶ 155-66; *Part 1
    Recon Order of the Third Report and Order*, 15 FCC Rcd at 15297-98,
    ¶¶ 7-8.

[^41]: 47 C.F.R. § 1.2105; *Competitive Bidding Second Report and
    Order*, 9 FCC Rcd at 2375-77, ¶¶ 161-68. Section 1.2105 also sets
    forth the uniform definitions of major and minor amendments to the
    short-form application. We also remove service-specific rules
    inconsistent with this uniform definition. 47 C.F.R. § 1.2105; *Part
    1 Third Report and Order*, 13 FCC Rcd at 414, ¶ 66, 465, ¶ 158.

[^42]: 47 C.F.R. § 1.2105(c).

[^43]: Amendment of Part 1 of the Commission's Rules -- Competitive
    Bidding Procedures, *Seventh Report and Order*, 16 FCC Rcd 17546
    (2001); Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules, *Public Notice*, 11 FCC Rcd 9645
    (1995).

[^44]: 47 C.F.R. § 1.2105.

[^45]: 47 C.F.R. §§ 21.952, 22.209, 22.227, 22.964, 24.709(a)(4)-(5),
    26.205, 27.204(a)-(b), 90.806, 90.906, 90.1009, 100.75, 101.531(a),
    101.1104, and 101.1204.

[^46]: 47 C.F.R. § 1.2105.

[^47]: 47 C.F.R. §§ 21.953, 25.405, 27.204(c), and 100.79.

[^48]: 47 C.F.R. § 1.2106; *Competitive Bidding Second Report and
    Order*, 9 FCC Rcd at 2377-81, ¶ 169-88; *Part 1 Third Report and
    Order*, 13 FCC Rcd at 423, ¶ 83.

[^49]: 47 C.F.R. § 1.2106.

[^50]: 47 C.F.R. §§ 21.954, 22.211(a), 22.965(a), 24.706(a), (c),
    24.711(a)(1), 24.716(a)(1), 26.206, 27.205, 73.5003(a), 90.807(a),
    90.907(a), 90.1011(a), 100.76(a), 101.1105(a), and 101.1205(a).

[^51]: 47 C.F.R. § 1.2107. We recognize that other licensing bureaus may
    use different FCC Forms for their long-form application. *See e.g.*,
    47 C.F.R. § 73.5005 (requiring applicants to submit to the Media
    Bureau an appropriate long-form application, *i.e.* "FCC Forms 301,
    346, 349 or 330," for licenses or construction permits).

[^52]: 47 C.F.R. § 1.2107(b). Included in the calculation of the sum due
    to the Commission is any deduction from the amounts on deposit
    necessary to satisfy applicable withdrawal or default payments under
    section 1.2104(g). 47 C.F.R. § 1.2104(g).

[^53]: *Part 1 Third Report and Order*, 13 FCC Rcd at 427, ¶ 90.

[^54]: *Id.*

[^55]: 47 C.F.R. § 1.2107; *Competitive Bidding* *Second Report and
    Order*, 9 FCC Rcd at 2383, ¶ 199; *Part 1 Third Report and Order*,
    13 FCC Rcd at 420, ¶ 77, 422, ¶ 80.

[^56]: 47 C.F.R. § 1.2107(c).

[^57]: 47 C.F.R. § 1.2109(a); *Part 1 Third Report and Order*, 13 FCC
    Rcd at 428-29, ¶¶ 92, 95.

[^58]: 47 C.F.R. § 1.2110(g). In the *Part 1 Third Report and Order*,
    the Commission suspended the use of installment payments as a means
    of financing small businesses and other designated entities seeking
    to secure spectrum licenses. *Part 1 Third Report and Order*, 13 FCC
    Rcd at 398-400, ¶ 40, *aff'd,* *Part 1 Fifth Report and Order*, 15
    FCC Rcd at 15302-18, ¶¶ 16-43.

[^59]: *Id.*

[^60]: 47 C.F.R. § 1.2107.

[^61]: 47 C.F.R. §§ 21.955(a), (c), 21.958, 22.211(b), 22.213,
    22.965(b), 24.706(b), 24.711(a)(2), 24.716(a)(2), 25.404(a), (b),
    26.206, 26.207, 27.206, 73.3573(f)(5)(i), 73.5003(b)-(c),
    74.1233(d)(5)(i), 90.807(b), 90.808, 90.907(b), 90.908, 90.1011(b),
    90.1013, 100.76(b), 101.531, 101.1105(b), 101.1205(b), and 101.1206.

[^62]: 47 C.F.R. § 1.2108.

[^63]: *Id*.

[^64]: The Commission delegated to the appropriate licensing bureau the
    discretion to reduce this ten-day period for filing petitions to
    deny. 47 C.F.R. § 1.2108; *Part 1 Fifth Report and Order*, 15 FCC
    Rcd at 15330, ¶ 78.

[^65]: 47 C.F.R. § 1.2108; *Part 1 Fifth Report and Order*, 15 FCC Rcd
    at 15330, ¶¶ 77-78.

[^66]: 47 C.F.R. § 1.2108.

[^67]: 47 C.F.R. §§ 21.957, 90.1025(a), 101.1110, and 101.1207.

[^68]: 47 C.F.R. § 1.2109(b); *Competitive Bidding* *Second Report and
    Order*, 9 FCC Rcd at 2381-82, ¶¶ 189-92; *Part 1 Third Report and
    Order*, 13 FCC Rcd at 428-31, ¶¶ 92-96.

[^69]: 47 C.F.R. § 1.2109(a); *Competitive Bidding* *Second Report and
    Order*, 9 FCC Rcd at 2382, ¶ 194; *Part 1 Third Report and Order*,
    13 FCC Rcd at 431-32, ¶¶ 97-99.

[^70]: 47 C.F.R. § 1.2109(b); *Competitive Bidding* *Second Report and
    Order*, 9 FCC Rcd at 2382-84, ¶¶ 195-205; *Part 1 Third Report and
    Order*, 13 FCC Rcd at 460-62, ¶¶ 151-54.

[^71]: 47 C.F.R. § 1.2109(d). This section provides for additional
    sanctions against bidders who violate federal antitrust laws or
    Commission regulations. *Competitive Bidding* *Second Report and
    Order*, 9 FCC Rcd at 2387, ¶ 225 (preventing collusion by reliance,
    in part, on Section One of the Sherman Antitrust Act, 15 U.S.C. § 1
    *et. seq*.).

[^72]: 47 C.F.R. § 1.2109(c); *Competitive Bidding* *Second Report and
    Order*, 9 FCC Rcd at 2382-84, ¶¶ 195-205; *Part 1 Third Report and
    Order*, 13 FCC Rcd at 516.

[^73]: 47 C.F.R. § 1.2109.

[^74]: 47 C.F.R. §§ 21.959(c)-(e), 22.207, 22.215, 22.967, 24.708,
    24.711(a)(2), 24.716(a)(2), 25.406, 26.208, 27.208, 73.5004,
    90.809(a), 90.909(a)-(b), 90.1015, and 100.78(a).

[^75]: Other modifications to definitions are discussed in paragraph 10
    of this Order. For ease of reference, we include here changes to
    definitional sections that are based on the "controlling interest"
    standard.

[^76]: 47 C.F.R. § 1.2110; *Competitive Bidding* *Second Report and
    Order*, 9 FCC Rcd at 2393-98, ¶¶ 258-88; *Part 1 Third Report and
    Order*, 13 FCC Rcd at 386-389, ¶¶ 13-19, 394-95, ¶¶ 31-33; *Part 1
    Fifth Report and Order*, 15 FCC Rcd at 15318-21, ¶¶ 45-53. The
    Commission\'s rules define designated entities as "small businesses,
    businesses owned by women or members of minority groups, and rural
    telephone companies." 47 C.F.R. § 1.2110(a); *see* 47 U.S.C. §§
    309(j)(4)(C)-(D). However, the term is generally used in a more
    limited context to refer to those entities qualifying for benefits
    available to businesses based on size standards.

[^77]: 47 C.F.R. § 1.2110.

[^78]: 47 C.F.R. §§ 21.955(b), 24.321(a)(7), 24.716(c),
    27.210(b)(3)(ii), (c), 27.502(a)(7), 90.812(a), and 101.538(a)(8).

[^79]: 47 C.F.R. § 1.2110(b).

[^80]: 47 C.F.R. §§ 21.961(b)(2), 22.223(b)(2)-(4), 24.321(a)(3)-(5),
    24.709(a)(2), 24.720(b)(3)-(4), 26.4, 26.210(b), 27.210(b)(3),
    27.502(a)(3)-(5), 80.1252(b)(3)-(4), 90.814(b)(2), 90.912(b)(3),
    90.1021(b)(3), 90.1103(b)(3)-(4), 95.816(c)(3)-(4),
    101.538(a)(5)-(6), and 101.1209(b)(2).

[^81]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15323-25, ¶¶
    58-64.

[^82]: 47 C.F.R. §§ 90.912(b)(1)-(2), 90.913(a)(1), 90.1021(b)(1)-(2),
    90.1023(a)(1), 101.1109(a)(1), and 101.1112(b)-(e). We make these
    modifications to comport with the *Part 1 Fifth Report* *and Order,*
    15 FCC Rcd at 323-27, ¶¶ 58-67, which adopted the "controlling
    interest" standard as the general attribution rule for determining
    which applicants qualify for designated entity status based on size
    standards.

[^83]: 47 C.F.R. §§ 1.2110(c)(2).

[^84]: 47 C.F.R. §§ 22.223(e), 22.225(e), 24.321(b), 26.4, 27.502(b),
    80.1252(c), 90.812(a), 90.814(g), 90.1103(c), 95.816(d), and
    101.538(b).

[^85]: Section 24.709 is modified to conform the rule to the
    Commission's direction in the *Part 1 Fifth Report and Order*
    specifying how the "controlling interest" standard would apply to
    current C and F block licensees that won licenses or otherwise
    acquired licenses through assignment or transfer once the
    "controlling interest" standard became effective. *Part 1 Fifth
    Report and Order*, 15 FCC Rcd at 326-27, ¶ 67.

[^86]: 47 C.F.R. § 1.2111.

[^87]: *Id.*

[^88]: Although sections 90.813(c) and (d)(2)(i) were removed as
    redundant with section 1.2111 of the Commission's rules, other
    portions of section 90.813(d)(2) were retained because they provide
    additional details regarding assignments and transfers. 47 C.F.R. §§
    1.2111, 90.813(c), (d)(2)(i). As noted earlier in paragraph 6,
    service-specific competitive bidding rules that supplement the Part
    1 general competitive bidding rules are retained.

[^89]: 47 C.F.R. §§ 21.960(b)(5)(i)-(ii), (d)(1), 22.217(b), 24.711(c),
    24.712(c), 24.714(c), 24.716(d), 24.717(c), 26.210(d), 27.15(c),
    27.209(d), 73.5009(a), 90.810(b), 90.812(b), 90.813(c), (d)(2)(i),
    90.910(b), 90.911(c), 90.1017(b), 95.823(c)(1), 101.56(i),
    101.535(a)(1), (c), 101.1107(e), 101.1208(b), 101.1319(c), and
    101.1323(c). Section 73.5007, the unjust enrichment provision for
    broadcast services subject to competitive bidding, as defined in
    section 73.5000, has been retained because based on the bidding
    credit eligibility standards applicable to broadcast services, this
    service-specific rule departs from the Part 1 general competitive
    bidding unjust enrichment rule. *Commercial Broadcast Competitive
    Bidding First Report and Order*, 13 FCC Rcd at 15997-98 ¶¶ 193-96,
    16046-47 (1998); *Commercial Broadcast Competitive Bidding MO&O*, 14
    FCC Rcd at 8767-68, ¶¶ 83-85 (1999). The service-specific unjust
    enrichment provision in section 73.5007 applies where bidding credit
    eligibility is determined according to a new entrant's attributable
    interests in mass media facilities. 47 C.F.R. § 73.5007; *Commercial
    Broadcast Competitive Bidding First Report and Order*, 13 FCC Rcd at
    15994-95, ¶ 189. Whereas, the Part 1 unjust enrichment provision
    applies to situations where bidding credit eligibility is determined
    according to a bidder's average gross revenue. 47 C.F.R. § 1.2111.

[^90]: 47 C.F.R. § 1.2112; *Competitive Bidding* *Second Report and
    Order*, 9 FCC Rcd at 2375-77, ¶¶ 161-68; *see also*, 47 C.F.R. §
    1.2105.

[^91]: 47 C.F.R. § 1.2112; *Competitive Bidding* *Second Report and
    Order*, 9 FCC Rcd at 2383, ¶ 199; *Part 1 Third Report and Order*,
    13 FCC Rcd at 420, ¶ 77, 422, ¶ 80; *see also*, 47 C.F.R. §
    1.2107(c).

[^92]: 47 C.F.R. §§ 22.225(b), 90.815(a)-(b), 90.913(a)-(b),
    90.1023(a)-(b), and 101.1109(a)-(b).

[^93]: 47 C.F.R. § 1.2112.

[^94]: 47 C.F.R. §§ 1.2112(a), 73.5009(b). For a discussion of the
    interrelationship between section 73.5009 and the Part 1 competitive
    bidding rules *see supra* note 26.

[^95]: 47 C.F.R. § 1.2110(c)(5); *Part 1 Third Report and Order*, 13 FCC
    Rcd at 390, ¶ 27 (discussing uniform definitions of "affiliate");
    *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15323-27, ¶¶ 58-67
    (discussing the attribution "gross revenues" of investors and
    "affiliates").

[^96]: 47 C.F.R. § 1.2110(m); *Part 1 Third Report and Order*, 9 FCC Rcd
    at 422-23, ¶¶ 81-82 (modifying the Commission's rules governing
    designated entity eligibility to expressly provide that applicants
    claiming eligibility for small business provisions shall be subject
    to audits by the Commission).

[^97]: 47 C.F.R. § 1.2110(c)(3); *Part 1 Fifth Report and Order*, 15 FCC
    Rcd at 15318-20, ¶¶ 45-50 (amending the term "minority" to conform
    to the definition adopted by the U.S. Office of Management and
    Budget).

[^98]: 47 C.F.R. § 1.2110(c)(2); *Part 1 Fifth Report and Order*, 15 FCC
    Rcd at 15323-27, ¶¶ 58-67 (adopting the "controlling interest
    standard" as the general attribution rule for determining which
    applicants qualify as a small business).

[^99]: 47 C.F.R. § 1.2110(c)(1); *Part 1 Third Report and Order*, 13 FCC
    Rcd at 388-89, ¶¶ 18-19 ("small business size standards").

[^100]: 47 C.F.R. § 1.2110(n); *Part 1 Third Report and Order*, 13 FCC
    Rcd at 389-392, ¶¶ 20-25 (definition of "gross revenues"); *Part 1
    Fifth Report and Order*, 15 FCC Rcd at 15323-27, ¶¶ 58-67.

[^101]: 47 C.F.R. § 1.2110(c)(4); *Part 1 Third Report and Order*, 13
    FCC Rcd at 395, ¶ 33.

[^102]: 47 C.F.R. § 1.2110(c)(5).

[^103]: 47 C.F.R. §§ 21.961(d), 22.223(d), 22.225(e), 24.709(g),
    24.720(l), 26.4, 27.210(d), 90.814(h), 90.815(e), 90.912(d),
    90.913(d)(3), 90.1021(d), 90.1023(e), 90.1323(e), 101.1112(h), and
    101.1209(e).

[^104]: 47 C.F.R. § 1.2110(m).

[^105]: 47 C.F.R. §§ 1.2110(m), 21.960(g), 22.225(d), 24.709(d),
    26.210(c), 90.815(d), 90.913(d), 90.1023(d), and 101.1109(d).

[^106]: 47 C.F.R. § 1.2110(c)(3).

[^107]: 47 C.F.R. §§ 24.709(g), 24.720(i), 90.814(e)-(f), and 90.815(e).

[^108]: 47 C.F.R. § 1.2110(n).

[^109]: 47 C.F.R. §§ 21.961(c), 22.223(c), 22.225(e), 24.709(g),
    24.720(f), 26.4, 27.210(c), 90.814(d), 90.815(e), 90.912(c),
    90.913(d)(3), 90.1021(c), 90.1023(e), 90.1323(e), 101.1112(g), and
    101.1209(d).

[^110]: 47 C.F.R. § 1.2110(c)(4).

[^111]: 47 C.F.R. §§ 24.720(e), 26.4, 90.814(c), and 101.1209(c).

[^112]: 47 C.F.R. §§ 1.2110(b),(o).

[^113]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15326-27, ¶ 67
    (modified by *Erratum*, 15 FCC Rcd 21520 (2000)). We recognize that
    the Commission, in the *Part 1 Eighth Report and Order,* declined to
    include a total assets test for purposes of determining small
    business bidding credit eligibility. Amendment of Part 1 of the
    Commission's Rules -- Competitive Bidding Procedures, *Eighth Report
    and Order*, FCC 02-34, ¶ 3 (rel. February 13, 2002) ("*Part 1 Eighth
    Report and Order*"). The total assets test added by this Order to
    the Part 1 general competitive bidding rules is used to evaluate the
    eligibility of applicants to acquire broadband Personal
    Communications Services C and F block licenses made available in
    "closed" (entrepreneur-only) bidding. *Id.* at ¶ 2; 47 C.F.R. §
    24.709(a). Although only applicable in limited circumstances, we
    move this attribution rule to the Part 1 general competitive bidding
    rules for ease of reference.

[^114]: 47 C.F.R. § 24.709(g), 24.720(g), and 90.815(e).

[^115]: 47 C.F.R. §§ 1.2107(e), 1.2110(f)(3)(ii)(B), (f)(3)(iii)-(iv),
    (vii), 21.956(b)(3), 21.960(b)(4), 22.223(b)(3), 24.321(c)(1),
    24.709, 24.711(b)-(b)(2), 24.712(a)-(b), 24.714(d)(1), (d)(2)(i),
    (iii), (d)(3)(i), (ii), 24.716(b)-(b)(2), 24.717(a)-(b),
    24.720(b)(5), (c)(2), (j)(2), (k)(4), (n)(3)-(4), 26.210(a),
    27.15(d)-(e), 73.3571(h)(4)(i), 73.3573(f)(5)(ii), 73.5005(a),
    73.5006(d), 80.1252(d), 90.705, 90.813(d)(2)(ii)-(iv), (3)(ii), (e),
    (f), 90.814(a)(3), 90.910(a), 90.1017(a), 90.1025(b), 90.1103(d),
    95.816(e), 95.823(c)(2), (c)(2)(iii), (c)(3), 101.538(c), and
    101.1319(b). With respect to section 24.709, we note that the
    technical amendments related to this rule may be found in Attachment
    A.

[^116]: 47 C.F.R. § 0.331(d).

[^117]: 47 C.F.R. § 24.711(b)(3)-(5). The *Competitive Bidding Sixth
    Report and Order* deleted sections 24.711(b)(4)-(5), which,
    respectively, concern installment payment terms for minority- and/or
    women-owned businesses and small businesses that are also a
    minority- and/or women-owned. 47 C.F.R. § 24.711(b)(4)-(5);
    *Competitive Bidding Sixth Report and Order,* 11 FCC Rcd at 156-59,
    ¶¶ 35-43, Appendix A, ¶ 172. The Federal Register summary of the
    *Competitive Bidding Sixth Report and Order*, however,
    inadvertently, did not indicate this deletion. *Sixth Report and
    Order*, 60 Fed. Reg. 37786 (July 21, 1995). Moreover, the
    installment payment terms for eligible small businesses in section
    24.711(b) were inadvertently changed in the "final rule" appendix to
    the *Part 1 Third Report and Order*. *Part 1 Third Report and
    Order*, 13 FCC Rcd at 530-31. Therefore, a ministerial conforming
    amendment is made to section 24.711(b)(3-(5) to implement the
    changes indicated in the *Competitive Bidding Sixth Report and
    Order*. 47 C.F.R. § 24.711(b)(3)-(5); *Competitive Bidding Sixth
    Report and Order,* 11 FCC Rcd at 156-59, ¶¶ 35-43, Appendix A, ¶
    172.

[^118]: 47 C.F.R. § 73.5009; *see supra* n.26.

[^119]: 47 C.F.R. §§ 22.227, 24.711(b)(3)-(5), 73.5009, 90.809(b),
    90.813(a), 90.909(c), 90.913(a), 95.816(f), and 101.538(a)(7).
    Moreover, sections 22.227, 90.809(b), and 90.909(c) were modified to
    comport with the changes made by the *1998 Biennial Regulatory
    Review*. Biennial Regulatory Review -- Amendment of Parts 0, 1, 13,
    22, 24, 26, 80, 87, 90, 97, and 101 of the Commission's Rules to
    Facilitate the Development and Use of the Universal Licensing System
    in the Wireless Telecommunications Services, *Report and Order*, 13
    FCC Rcd 21027 at Appendix E, "ULS Rule Conversion Chart" (1998)
    ("*1998 Biennial Regulatory Review*") (Appendix not reproduced in
    the FCC Record, but available on-line at 1998 WL 735878).