**DA 01-2882**

**December 13, 2001**

**AUCTION NO. 82 CONSTRUCTION PERMITS**

**FOR NEW ANALOG TELEVISION STATIONS**

**SCHEDULED FOR FEBRUARY 5, 2002**

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

**Upfront Payments and Other Procedural Issues**

**Report No. AUC-01-82-C (Auction No. 82)**

I. General Information [3](#general-information)

A. Introduction [3](#introduction)

1\. Construction Permits to Be Auctioned
[3](#construction-permits-to-be-auctioned)

B. Rules and Disclaimers [3](#rules-and-disclaimers)

1\. Relevant Authority [3](#relevant-authority)

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

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

4\. Bidder Alerts [6](#bidder-alerts)

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

C. Auction Specifics [7](#auction-specifics)

1\. Auction Date [7](#auction-date)

2\. Auction Title [7](#auction-title)

3\. Bidding Methodology [7](#bidding-methodology)

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

5\. Requirements for Participation [8](#requirements-for-participation)

6\. General Contact Information [9](#general-contact-information)

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

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

B. Electronic Review of Short --Form Applications (FCC Form 175)
[10](#electronic-review-of-short-form-applications-fcc-form-175)

C. Installment Payments [10](#installment-payments)

III\. PRE-AUCTION PROCEDURES [11](#pre-auction-procedures)

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

B. Auction Seminar [11](#auction-seminar)

C. Upfront Payments \-- Due January 14, 2002
[11](#upfront-payments----due-january-14-2002)

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

2\. FCC Form 159 [12](#fcc-form-159)

3\. Amount of Upfront Payment [12](#amount-of-upfront-payment)

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

D. Auction Registration [14](#auction-registration)

E. Electronic Bidding [15](#electronic-bidding)

F. Mock Auction [15](#mock-auction)

IV\. AUCTION EVENT [15](#auction-event)

A. Auction Structure [15](#auction-structure)

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

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

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

4\. Auction Stopping Rules [17](#auction-stopping-rules)

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

B. Bidding Procedures [18](#bidding-procedures)

1\. Round Structure [18](#round-structure)

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

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

4\. High Bids [20](#high-bids)

5\. Bidding [20](#bidding)

6\. Bid Removal and Bid Withdrawal [21](#bid-removal-and-bid-withdrawal)

7\. Round Results [23](#round-results)

8\. Auction Announcements [23](#auction-announcements)

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

V. POST-AUCTION PROCEDURES [24](#post-auction-procedures)

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

B. Long-Form Application [24](#long-form-application)

C. Default and Disqualification [24](#default-and-disqualification)

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

VI\. Attachment A: List of Construction Permits and Applicants
A-[1](#attachment-a)

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

VIII\. Attachment C: Instructions for FCC Remittance Advice (FCC Form
159) C-[1](#attachment-c)

IX\. Attachment D: Minimum Acceptable Bids, Bid Increcemts, and the
Smoothing Formula D-[1](#attachment-d)

X. Attachment E: Summary of Documents Addressing the Anti-Collusion
Rules E-[1](#attachment-e)

# General Information

## Introduction

This public notice announces the procedures and minimum opening bids for
the upcoming auction of construction permits for new analog television
stations ("Auction No. 82"). On November 9, 2001, in accordance with the
Balanced Budget Act of 1997,[^1] the Mass Media Bureau ("MMB") and the
Wireless Telecommunications Bureau ("WTB") (collectively, the "Bureaus")
released the *Auction No. 82 Comment Public Notice*,[^2] seeking comment
on the establishment of reserve prices and/or minimum opening bids for
Auction No. 82. In addition, the Bureaus sought comment on a number of
procedures to be used in Auction No. 82. The Bureaus received four[^3]
comments and no reply comments in response to the *Auction No. 82
Comment Public Notice*.

### Construction Permits to Be Auctioned 

The construction permits available in Auction No. 82 include four new
analog television stations. These construction permits are the subject
of pending, mutually exclusive short-form applications (FCC Form 175)
and participation in this auction is limited to the applicants
identified in Attachment A. The minimum opening bids and upfront
payments for these construction permits are also included on Attachment
A.

## Rules and Disclaimers

### Relevant Authority

Prospective bidders must familiarize themselves thoroughly with the
Commission\'s rules relating to broadcast auctions, contained in Title
47, Part 73 of the Code of Federal Regulations. Prospective bidders must
also be thoroughly familiar with the procedures, terms and conditions
contained in this Public Notice, the *Auction No. 82* *Comment Public
Notice*, the *Broadcast First Report and Order,*[^4] the *Broadcast
Reconsideration Order,*[^5] and the *New Entrant Bidding Credit
Reconsideration Order*.[^6] Potential bidders must also familiarize
themselves with Part 1, Subpart Q of the Commission's rules concerning
competitive bidding proceedings.[^7]

The terms contained in the Commission\'s rules, relevant orders, and
public notices are not negotiable. The Commission may amend or
supplement the information contained in our public notices at any time,
and will issue public notices to convey any new or supplemental
information to bidders. It is the responsibility of all prospective
bidders to remain current with all Commission rules and with all public
notices pertaining to this auction. Copies of most Commission documents,
including public notices, can be retrieved from the FCC Auctions
Internet site at [http://wireless.fcc.gov/auctions]{.underline}.
Additionally, documents are available for public inspection and copying
during regular business hours at the FCC Reference Information Center,
Portals II, 445 12^th^ Street, SW, Room CY-A257, Washington, DC, 20554
or may be purchased from the Commission's duplicating contractor, Qualex
International, Portals II, 445 12^th^ Street, SW, Room CY-B402,
Washington, DC 20554, telephone 202-863-2893, facsimile 202-863-2898, or
via e-mail qualexint@aol.com. When ordering documents from Qualex,
please provide the appropriate FCC number (for example, FCC 98-194 for
the *Broadcast First Report and Order* and FCC 99-74 for the *Broadcast
Reconsideration Order*).

### Prohibition of Collusion 

Bidders are reminded that Section 1.2105(c) of the Commission\'s rules
prohibits short-form applicants from communicating with each other
during the auction about bids, bidding strategies, or settlements unless
they have identified each other as parties with whom they have entered
into agreements under Section 1.2105(a)(2)(viii).[^8] For further
details regarding the anti-collusion rule, refer to the *Auction Filing
Window Public Notice*, released May 25, 2001.[^9] For Auction No. 82,
this prohibition became effective at the short-form application deadline
(June 29, 2001) and will end on the down payment due date after the
auction (to be announced in a future public notice). Applicants
certified compliance with Section 1.2105(c) when they signed their
short-form applications. However, the Bureau cautions that merely filing
a certifying statement as part of an application will not outweigh
specific evidence that collusive behavior has occurred, nor will it
preclude the initiation of an investigation when warranted.[^10]

Bidders in Auction No. 82 are encouraged not to use the same individual
acting as an authorized bidder for any other applicant. A violation of
the anti‑collusion rule could occur if an individual acts as the
authorized bidder for two or more competing applicants, and conveys
information concerning the substance of bids or bidding strategies
between the bidders he/she is authorized to represent in the auction. A
violation could similarly occur if the authorized bidders are different
individuals employed by the same organization (*e.g.*, law firm or
consulting firm).

In addition, Section 1.65 of the Commission\'s rules requires an
applicant to *maintain* the accuracy and completeness of information
furnished in its pending application and to notify the Commission within
30 days of any substantial change that may be of decisional significance
to that application.[^11] Thus, Section 1.65 requires an auction
applicant to notify the Commission of any violation of the
anti-collusion rules immediately upon learning of such violation.
Bidders therefore are required to make such notification to the
Commission immediately upon discovery.[^12]

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

### Due Diligence 

Potential bidders are reminded that they are solely responsible for
investigating and evaluating all technical and market place factors that
may have a bearing on the value of the television facilities in this
auction. **The FCC makes no representations or warranties about the use
of this spectrum for particular services.** **Applicants should be aware
that an FCC auction represents an opportunity to become an FCC permittee
in the broadcast service, subject to certain conditions and
regulations.** **An FCC auction does not constitute an endorsement by
the FCC of any particular service, technology, or product, nor does an
FCC construction permit or license constitute a guarantee of business
success.** Applicants should perform their individual due diligence
before proceeding as they would with any new business venture.

Potential bidders are strongly encouraged to conduct their own research
prior to Auction No. 82 in order to determine the existence of pending
proceedings that might affect their decisions regarding participation in
the auction. Participants in Auction No. 82 are strongly encouraged to
continue such research during the auction.

Potential bidders should note that, in November 1999, Congress enacted
the Community Broadcasters Protection Act of 1999 (CBPA) which
established a new Class A television service.[^13] In response to the
enactment of the CBPA, the Commission adopted rules to establish the new
Class A television service.[^14] In the *Class A Report and Order*, the
Commission adopted rules to provide interference protection for eligible
Class A television stations from new full power television
stations.[^15] Given the Commission's ruling in the *Class A Report and
Order*, the winning bidders in Auction No. 82, upon submission of their
long-form application (FCC Form 301), will have to provide interference
protection to qualified Class A television stations. Therefore,
potential bidders are encouraged to perform engineering studies to
determine the existence of Class A television stations and their effect
on the ability to operate the full power television stations proposed in
this auction. Information about the identity and location of Class A
television stations is available from the Mass Media Bureau's
Consolidated Database System (CDBS) (public access available at:
<http://www.fcc.gov/mmb>) and on the Mass Media Bureau's Class A
television web page: <http://www.fcc.gov/mmb/vsd/files/classa.html>.

Potential bidders are also reminded that full service television
stations are in the process of converting from analog to digital
operation and that stations may have pending applications to construct
and operate digital television facilities, construction permits and/or
licenses for such digital facilities. Bidders should investigate the
impact such applications, permits and licenses may have on their ability
to operate the facilities proposed in this auction.

Bidders for the Columbia, South Carolina, station on Channel 47 should
note that there is pending a petition for rulemaking to change the DTV
channel for WCSC-TV, Charleston, South Carolina, from Channel 52 to
Channel 47.[^16] Pending the outcome of the Channel 47 Charleston DTV
rulemaking proceeding, bidders for Channel 47 at Columbia are advised
that the construction permit for their facility will be conditioned on
acceptance of interference from WCSC-DT, Channel 47, Charleston, South
Carolina.[^17]

### Bidder Alerts 

All applicants must certify on their FCC Form 175 applications under
penalty of perjury that they are legally, technically, financially and
otherwise qualified to hold a license, and not in default on any payment
for Commission licenses (including down payments) or delinquent on any
non-tax debt owed to any Federal agency.[^18] Prospective bidders are
reminded that submission of a false certification to the Commission is a
serious matter that may result in severe penalties, including monetary
forfeitures, license revocations, exclusion from participation in future
auctions, and/or criminal prosecution.

As is the case with many business investment opportunities, some
unscrupulous entrepreneurs may attempt to use Auction No. 82 to deceive
and defraud unsuspecting investors. Common warning signals of fraud
include the following:

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

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

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

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

Information about deceptive telemarketing investment schemes is
available from the FTC at (202) 326-2222 and from the SEC at (202)
942-7040. Complaints about specific deceptive telemarketing investment
schemes should be directed to the FTC, the SEC, or the National Fraud
Information Center at (800) 876-7060. Consumers who have concerns about
specific proposals may also call the FCC Consumer Center at (888)
CALL-FCC ((888) 225-5322).

### National Environmental Policy Act (NEPA) Requirements

Permittees must comply with the Commission\'s rules regarding the
National Environmental Policy Act (NEPA). The construction of a
broadcast antenna facility is a federal action and the permittee must
comply with the Commission\'s NEPA rules for each such facility.[^19]
The Commission\'s NEPA rules require, among other things, that the
permittee consult with expert agencies having NEPA responsibilities,
including the U.S. Fish and Wildlife Service, the State Historic
Preservation Office, the Army Corp of Engineers and the Federal
Emergency Management Agency (through the local authority with
jurisdiction over floodplains). The permittee must prepare environmental
assessments for facilities that may have a significant impact in or on
wilderness areas, wildlife preserves, threatened or endangered species
or designated critical habitats, historical or archaeological sites,
Indian religious sites, floodplains, and surface features. The permittee
must also prepare environmental assessments for facilities that include
high intensity white lights in residential neighborhoods or excessive
radio frequency emission.

## Auction Specifics

### Auction Date

Auction No. 82 will begin on Tuesday, February 5, 2002. The initial
schedule for bidding will be announced by public notice at least one
week before the start of the auction. Unless otherwise announced,
bidding on all construction permits will be conducted on each business
day until bidding has stopped on all construction permits.

### Auction Title

Auction No. 82 --- New Analog Television

### Bidding Methodology 

The bidding methodology for Auction No. 82 will be simultaneous multiple
round bidding. The Commission will conduct this auction over the
Internet. Telephonic bidding will also be available. As a contingency,
the FCC Wide Area Network, which requires access to a 900 number
telephone service, will be available as well. Qualified bidders are
permitted to bid telephonically or electronically.

### Pre-Auction Dates and Deadlines

> Auction Seminar January 8, 2002
>
> Upfront Payments (via wire transfer) January 14, 2002; 6:00 p.m. ET
>
> Mock Auction January 31, 2002
>
> Auction Begins February 5, 2002

### Requirements for Participation 

Those wishing to participate in the auction must:

-   Be listed on Attachment A of this public notice.

-   Submit a sufficient upfront payment and an FCC Remittance Advice
    Form (FCC Form 159) by 6:00 p.m. ET, January 14, 2002.

-   Comply with all provisions outlined in this public notice.

### General Contact Information

+-----------------------------------+----------------------------------+
| GENERAL AUCTION INFORMATION       | FCC Auctions Hotline             |
+-----------------------------------+----------------------------------+
| General Auction Questions         | \(888\) 225-5322, Press Option   |
|                                   | #2                               |
+-----------------------------------+----------------------------------+
| Seminar Registration              | or direct (717) 338-2888         |
+-----------------------------------+----------------------------------+
|                                   | Hours of service: 8 a.m. -- 5:30 |
|                                   | p.m. ET                          |
+-----------------------------------+----------------------------------+
| AUCTION LEGAL INFORMATION         | Auctions and Industry Analysis   |
|                                   | Division                         |
+-----------------------------------+----------------------------------+
| Auction Rules, Policies,          | Legal Branch (202) 418-0660      |
| Regulations                       |                                  |
+-----------------------------------+----------------------------------+
| LICENSING INFORMATION             | Video Services Division          |
+-----------------------------------+----------------------------------+
| Rules, Policies, Regulations      | \(202\) 418-1600                 |
|                                   |                                  |
| Licensing Issues                  |                                  |
|                                   |                                  |
| Due Diligence                     |                                  |
|                                   |                                  |
| Incumbency Issues                 |                                  |
+-----------------------------------+----------------------------------+
| TECHNICAL SUPPORT                 | FCC Auctions Technical Support   |
|                                   | Hotline                          |
+-----------------------------------+----------------------------------+
| Electronic Filing                 | \(202\) 414-1250 (Voice),        |
+-----------------------------------+----------------------------------+
| Automated Auction System          | \(202\) 414-1255 (TTY)           |
|                                   |                                  |
|                                   | Hours of service: Monday through |
|                                   | Friday 7 a.m. to 10:00 p.m. ET,  |
|                                   | Saturday, 8:00 a.m. to 7:00      |
|                                   | p.m., Sunday, 12:00 noon to 6:00 |
|                                   | p.m.                             |
+-----------------------------------+----------------------------------+
| PAYMENT INFORMATION               | FCC Auctions Accounting Branch   |
+-----------------------------------+----------------------------------+
| Wire Transfers                    | \(202\) 418-1995                 |
+-----------------------------------+----------------------------------+
| Refunds                           | \(202\) 418-2843 (Fax)           |
+-----------------------------------+----------------------------------+
| TELEPHONIC BIDDING                | Will be furnished only to        |
|                                   | qualified bidders                |
+-----------------------------------+----------------------------------+
| FCC COPY CONTRACTOR               | Qualex International             |
+-----------------------------------+----------------------------------+
| Additional Copies of              | Portals II, 445 12^th^ Street,   |
|                                   | SW, Room CY-B402                 |
+-----------------------------------+----------------------------------+
| Commission Documents              | Washington, DC 20554             |
|                                   |                                  |
|                                   | \(202\) 863-2893                 |
|                                   |                                  |
|                                   | \(202\) 863-2898 (Fax)           |
|                                   |                                  |
|                                   | qualexint@aol.com (E-mail)       |
+-----------------------------------+----------------------------------+
| PRESS INFORMATION                 | Meribeth McCarrick (202)         |
|                                   | 418-0654                         |
+-----------------------------------+----------------------------------+
| FCC FORMS                         | \(800\) 418-3676 (outside        |
|                                   | Washington, DC)                  |
|                                   |                                  |
|                                   | \(202\) 418-3676 (in the         |
|                                   | Washington Area)                 |
|                                   |                                  |
|                                   | <h                               |
|                                   | ttp://www.fcc.gov/formpage>.html |
+-----------------------------------+----------------------------------+
| FCC INTERNET SITES                | [http://w                        |
|                                   | ww.fcc.gov](http://www.fcc.gov/) |
|                                   |                                  |
|                                   | [ht                              |
|                                   | tp://wireless.fcc.gov/](http://w |
|                                   | ww.fcc.gov/wtb/auctions)auctions |
|                                   |                                  |
|                                   | http://wireless.fcc.gov/uls      |
+-----------------------------------+----------------------------------+

# SHORT-FORM (FCC FORM 175) APPLICATION REQUIREMENTS

## Maintaining Current Information in Short-Form Applications (FCC Form 175)

As noted in the *Auction No. 82 Comment Public Notice*[^20]*,* and under
47 C.F.R. §1.65, applicants have an obligation to maintain the
completeness and accuracy of information in their short-form
applications. Amendments reporting substantial changes of possible
decisional significance in information contained in short-form
applications, as defined by 47 C.F.R. § 1.2105(b)(2), will not be
accepted and may in some instances result in the dismissal of the
short-form application. Auction No. 82 applicants may file changes to
their FCC Form 175 applications by electronic mail sent to the following
address: \<auction82@fcc.gov\>. The Bureau prefers that any attachments
be in a Word or pdf format. Documents filed by electronic mail must
include a subject or caption referring to Auction No. 82. Filers must
also submit a letter summarizing the changes to:

Margaret Wiener, Chief

Auctions and Industry Analysis Division

Wireless Telecommunications Bureau

Federal Communications Commission

445 12^th^ Street, SW, Room 4-A760

Washington, DC 20554

A separate copy of the letter should faxed to the attention of Kathryn
Garland at (717) 338-2850. Questions about other changes should be
directed to Kenneth Burnley at (202) 418-0660.

In addition, applicants should make these changes to their FCC Form 175
applications on-line after release of the public notice explaining the
status of the applications.

## Electronic Review of Short --Form Applications (FCC Form 175)

As noted in the *Auction Filing Window Public Notice*[^21]*,* applicants
may review their own and other applicants' completed FCC Form 175s after
the FCC has issued a public notice concerning the status of the
applications. The FCC Form 175 electronic review system will be
available at that time, and may be used to locate and print applicants\'
FCC Form 175 information. Applicants will also be able to view other
applicants\' completed FCC Form 175 applications. There is no fee for
accessing this system. Instructions for electronic review of FCC Form
175 applications will be discussed in a future public notice.

## Installment Payments

Installment payment plans will not be available in Auction No. 82.

# PRE-AUCTION PROCEDURES

## Application Processing and Minor Corrections

Before the auction seminar, the FCC will process all timely submitted
applications to determine which are acceptable for filing, and
subsequently will issue a public notice identifying: (1) those
applications accepted for filing; (2) those applications rejected; and
(3) those applications which have minor defects that may be corrected,
and the deadline for filing such corrected applications.

As described more fully in the Commission's rules, after the short-form
filing deadline, applicants may make only minor corrections to their FCC
Form 175 applications. Applicants will not be permitted to make major
modifications to their applications (*e.g.*, change their construction
permit selections, change the certifying official, change control of the
applicant, or change bidding credit eligibility).[^22]

## Auction Seminar

On January 8, 2002, the FCC will sponsor a free seminar for Auction No.
82 at the Federal Communications Commission, located at 445 12^th^
Street, S.W. (Room 3-B516), Washington, D.C. The seminar will provide
attendees with information about pre-auction procedures, conduct of the
auction, FCC remote bidding software, and the broadcast service and
auction rules. The seminar will also provide an opportunity for
prospective bidders to ask questions of FCC staff.

To register, complete the registration form included as Attachment B of
this public notice and submit it by Friday, January 4, 2002.
Registrations are accepted on a first-come, first-served basis.

## Upfront Payments \-- Due January 14, 2002 

In order to be eligible to bid in the auction, applicants must submit an
upfront payment accompanied by an FCC Remittance Advice Form (FCC Form
159). After the FCC Form 175 becomes available electronically, filers
will have access to an electronic version of the FCC Form 159 that can
be printed and faxed to Mellon Bank in Pittsburgh, PA. All upfront
payments must be received at Mellon Bank by 6:00 p.m. ET on January 14,
2002.

Please note that:

-   All payments must be made in U.S. dollars.

-   All payments must be made by wire transfer.

-   Upfront payments for Auction No. 82 go to a lockbox number different
    from the ones used in previous FCC auctions, and different from the
    lockbox number to be used for post-auction payments.

-   Failure to deliver the upfront payment by the January 14, 2002
    deadline will result in dismissal of the application and
    disqualification from participation in the auction.

### Making Auction Payments by Wire Transfer

Wire transfer payments must be received by 6:00 p.m. ET on January 14,
2002. To avoid untimely payments, applicants should discuss arrangements
(including bank closing schedules) with their banker several days before
they plan to make the wire transfer, and allow sufficient time for the
transfer to be initiated and completed before the deadline. Applicants
will need the following information:

> ABA Routing Number: 043000261
>
> Receiving Bank: Mellon Pittsburgh
>
> BNF: FCC/Account \# 910-0180
>
> OBI Field: (Skip one space between each information item)
>
> "AUCTIONPAY"
>
> TAXPAYER IDENTIFICATION NO. (same as FCC Form 159, block 12)
>
> PAYMENT TYPE CODE (same as FCC Form 159, Block 24A; A82U)
>
> FCC CODE 1 (same as FCC Form 159, block 28A: "82")
>
> PAYER NAME (same as FCC Form 159, block 2)
>
> LOCKBOX NO. \# 358420

**NOTE:** The BNF and Lockbox number are specific to the upfront
payments for this auction; do not use BNF or Lockbox numbers from
previous auctions.

Applicants must fax a completed FCC Form 159 (Revised 2/00) to Mellon
Bank at (412) 209-6045 **at least** **one hour before** placing the
order for the wire transfer (but on the same business day). On the cover
sheet of the fax, write "Wire Transfer - Auction Payment for Auction
Event No. 82." **Bidders should confirm receipt of their upfront payment
at Mellon Bank by contacting their sending financial institution.**

### FCC Form 159

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

### Amount of Upfront Payment

In the *Part 1 Order, Memorandum Opinion and Order, and Notice of
Proposed Rule Making,* the Commission delegated to the Bureau the
authority and discretion to determine appropriate upfront payment(s) for
each auction.[^23] In addition, in the *Part 1 Fifth Report and Order*,
the Commission ordered that "former defaulters," *i.e.*, applicants that
have ever been in default on any Commission license or have ever been
delinquent on any non-tax debt owed to any Federal agency, be required
to pay upfront payments fifty percent greater than non-"former
defaulters."[^24]

In the *Auction No. 82 Comment Public Notice*, we proposed translating
bidders' upfront payments to bidding units to define a bidder's maximum
eligibility.[^25] In order to bid on a construction permit, otherwise
qualified bidders who applied for that construction permit on Form 175
must have an eligibility level that meets or exceeds the number of
bidding units assigned to that construction permit. At a minimum,
therefore, an applicant's total upfront payment must be enough to
establish eligibility to bid on at least one of the construction permits
applied for on Form 175, or else the applicant will not be eligible to
participate in the auction. An applicant does not have to make an
upfront payment to cover all construction permits for which the
applicant has applied on Form 175, but rather to cover the maximum
number of bidding units that are associated with construction permits on
which the bidder wishes to place bids and hold high bids at any given
time.

WyoMedia contends that the upfront payment for Scottsbluff, Nebraska
should be reduced to between \$41,000 and \$46,000.[^26] WyoMedia
provides community of license information for each permit in the auction
and contends that parties interested in the Scottsbluff permit would be
paying an upfront payment that is three times as much for other permits.
WyoMedia urges the Bureaus to adopt an upfront payment that is
consistent with those set for other permits.[^27] Based upon the
information WyoMedia provides, we conclude that the upfront payment for
Scottsbluff, Nebraska should be reduced to \$50,000.

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

In calculating its upfront payment amount, an applicant should determine
the [maximum]{.underline} number of bidding units it may wish to bid on
in any single round, and submit an upfront payment covering that number
of bidding units. In order to make this calculation, an applicant should
add together the upfront payments for all construction permits on which
it seeks to bid in any given round. **Bidders should check their
calculations carefully, as there is no provision for increasing a
bidder's maximum eligibility after the upfront payment deadline.**

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

NOTE: An applicant's actual bidding in any round will be limited by the
bidding units reflected in its upfront payment, in conjunction with the
selections made on the FCC Form 175.

### Applicant\'s Wire Transfer Information for Purposes of Refunds

The Commission will use wire transfers for all Auction No. 82 refunds.
To ensure that refunds of upfront payments are processed in an
expeditious manner, the Commission is requesting that all pertinent
information as listed below be supplied to the FCC. Applicants can
provide the information electronically after the FCC Form 175 becomes
available for review. Wire Transfer Instructions can also be manually
faxed to the FCC, Financial Operations Center, Auctions Accounting
Group, ATTN: Tim Dates or Gail Glasser, at (202) 418-2843 by January 14,
2002. All refunds will be returned to the payer of record as identified
on the FCC Form 159 unless the payer submits written authorization
instructing otherwise. For additional information, please call (202)
418-1995.

Name of Bank

ABA Number

> Contact and Phone Number

Account Number to Credit

Name of Account Holder

Taxpayer Identification Number (see below)

Correspondent Bank (if applicable)

ABA Number

Account Number

(Applicants should also note that implementation of the Debt Collection
Improvement Act of 1996 requires the FCC to obtain a Taxpayer
Identification Number (TIN) before it can disburse refunds.) Eligibility
for refunds is discussed in Section V.D., below.

## Auction Registration

Approximately ten days before the auction, the FCC will issue a public
notice announcing all qualified bidders for the auction. Qualified
bidders are those applicants whose FCC Form 175 applications have been
accepted for filing and have timely submitted upfront payments
sufficient to make them eligible to bid on at least one of the
construction permits for which they applied.

All qualified bidders are automatically registered for the auction.
Registration materials will be distributed prior to the auction by two
separate overnight mailings, one containing the confidential bidder
identification number (BIN) required to place bids and the other
containing the SecurID cards. These mailings will be sent only to the
contact person at the contact address listed in the FCC Form 175.

Applicants that do not receive both registration mailings will not be
able to submit bids. Therefore, any qualified applicant that has not
received both mailings by noon on Tuesday, January 29, 2002, should
contact the Auctions Hotline at 717-338-2888. Receipt of both
registration mailings is critical to participating in the auction and
each applicant is responsible for ensuring it has received all of the
registration material.

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

## Electronic Bidding 

The Commission will conduct this auction over the Internet. Telephonic
bidding will also be available. As a contingency, the FCC Wide Area
Network, which requires access to a 900 number telephone service, will
be available as well. Qualified bidders are permitted to bid
telephonically or electronically, *i.e.*, over the Internet or the FCC's
Wide Area Network. In either case, **each authorized bidder** must have
its own Remote Security Access SecurID card, which the FCC will provide
at no charge. Each applicant with less than three authorized bidders
will be issued two SecurID cards, while applicants with three authorized
bidders will be issued three cards. For security purposes, the SecurID
cards are only mailed to the contact person at the contact address
listed on the FCC Form 175. Please note that each SecurID card is
tailored to a specific auction, therefore, SecurID cards issued for
other auctions or obtained from a source other than the FCC will not
work for Auction No. 82. The telephonic bidding phone number will be
supplied in the first Federal Express mailing of the confidential bidder
identification number. Your bidding preference---electronic or
telephonic---can be specified on the FCC Form 175 during the resubmit
window.

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

## Mock Auction

All qualified bidders will be eligible to participate in a mock auction
on Thursday, January 31, 2002. The mock auction will enable applicants
to become familiar with the electronic system prior to the auction.
Participation by all bidders is strongly recommended. Details will be
announced by public notice.

# AUCTION EVENT

The first round of bidding for Auction No. 82 will begin on Tuesday,
February 5, 2002. The initial bidding schedule will be announced in the
public notice listing the qualified bidders, which is released
approximately 10 days before the start of the auction.

## Auction Structure

### Simultaneous Multiple Round Auction

In the *Auction No. 82 Comment Public Notice*, we proposed to award all
construction permits in a single, simultaneous multiple round
auction.[^28] We received no comments on this issue. We therefore
conclude that it is operationally feasible and appropriate to auction
the new analog television station construction permits through a single,
simultaneous multiple round auction. Unless otherwise announced, bids
will be accepted on the construction permits in each round of the
auction.

### Maximum Eligibility and Activity Rules

In the *Auction No. 82 Comment Public Notice*, we proposed that the
amount of the upfront payment submitted by a bidder would determine the
initial maximum eligibility (as measured in bidding units) for each
bidder.[^29] We received no comments on this issue.

For Auction No. 82, we adopt this proposal. The amount of the upfront
payment submitted by a bidder determines the initial maximum eligibility
(in bidding units) for each bidder. Note again that each construction
permit is assigned a specific number of bidding units equal to the
upfront payment listed in Attachment A on a bidding unit per dollar
basis. The total upfront payment defines the maximum number of bidding
units on which the applicant will be permitted to bid and hold high
bids. As there is no provision for increasing a bidder's maximum
eligibility during the course of an auction, prospective bidders are
cautioned to calculate their upfront payments carefully. The total
upfront payment does not affect the total dollars a bidder may bid on
any given construction permit.

In addition, we received no comments on our proposal for a single stage
auction. Therefore, in order to ensure that the auction closes within a
reasonable period of time, we adopt our proposal with the following
activity requirements: a bidder must either place a valid bid and/or be
the standing high bidder during each round of the auction rather than
wait until the end before participating. A bidder is required to be
active on 100 percent of their bidding eligibility. Failure to maintain
the requisite activity level will result in the use of an activity rule
waiver, if any remain, or a reduction in the bidder's bidding
eligibility.

### Activity Rule Waivers and Reducing Eligibility

In the *Auction No. 82 Comment Public Notice*, we proposed that each
bidder in the auction would be provided three activity rule waivers that
may be used in any round during the course of the auction.[^30] We
received no comments on this issue.

Based upon our experience in previous auctions, we adopt our proposal
that each bidder be provided three activity rule waivers that may be
used in any round during the course of the auction. Use of an activity
rule waiver preserves the bidder\'s current bidding eligibility despite
the bidder\'s activity in the current round being below the required
minimum level. We are satisfied that our practice of providing three
waivers over the course of the auction provides a sufficient number of
waivers and maximum flexibility to the bidders, while safeguarding the
integrity of the auction.

The FCC Automated Auction System assumes that bidders with insufficient
activity would prefer to use an activity rule waiver (if available)
rather than lose bidding eligibility. Therefore, the system will
automatically apply a waiver (known as an "automatic waiver") at the end
of any round where a bidder\'s activity level is below the minimum
required unless: (1) there are no activity rule waivers available; or
(2) the bidder overrides the automatic application of a waiver by
reducing eligibility, thereby meeting the minimum requirements. If a
bidder has no waivers remaining and does not satisfy the required
activity level, the current eligibility will be permanently reduced,
possibly eliminating them from the auction.

A bidder with insufficient activity that wants to reduce its bidding
eligibility rather than use an activity rule waiver must affirmatively
override the automatic waiver mechanism during the round by using the
reduce eligibility function in the bidding system. In this case, the
bidder's eligibility is permanently reduced to bring the bidder into
compliance with the activity rules (*see* Part IV.A.2 discussion
*above*). Once eligibility has been reduced, a bidder will not be
permitted to regain its lost bidding eligibility.

Finally, a bidder may proactively use an activity rule waiver as a means
to keep the auction open without placing a bid. If a bidder submits a
proactive waiver (using the proactive waiver function in the bidding
system) during a round in which no bids are submitted, the auction will
remain open and the bidder\'s eligibility will be preserved. However, an
automatic waiver triggered during a round in which there are no new
valid bids or withdrawals will not keep the auction open. **Note: Once a
proactive waiver is placed during a round, that waiver cannot be
unsubmitted.**

### Auction Stopping Rules

For Auction No. 82, the Bureaus proposed to employ a simultaneous
stopping rule.[^31] Under this rule, bidding will remain open on all
construction permits until bidding stops on every construction permit.
The auction will close for all construction permits when one round
passes during which no bidder submits a new acceptable bid on any
construction permit, applies a proactive waiver, or withdraws a previous
high bid. After the first such round, bidding closes simultaneously on
all construction permits.

The Bureaus also proposed retaining discretion to implement a modified
version of the simultaneous stopping rule. The modified version will
close the auction for all construction permits after the first round in
which no bidder submits a proactive waiver, a withdrawal, or a new bid
on any construction permit on which it is not the standing high bidder.
Thus, absent any other bidding activity, a bidder placing a new bid on a
construction permit for which it is the standing high bidder will not
keep the auction open under this modified stopping rule.

The Bureaus further proposed retaining the discretion to keep the
auction open even if no new acceptable bids or proactive waivers are
submitted and no previous high bids are withdrawn in a round. In this
event, the effect will be the same as if a bidder had submitted a
proactive waiver. Thus, the activity rule will apply as usual, and a
bidder with insufficient activity will either lose bidding eligibility
or use an activity rule waiver (if any remain).

In addition, we proposed that the Bureaus reserve the right to declare
that the auction will end after a designated number of additional rounds
("special stopping rule"). If the Bureaus invoke this special stopping
rule, it will accept bids in the final round(s) only for construction
permits on which the high bid increased in at least one of the preceding
specified number of rounds. We proposed to exercise this option only in
circumstances such as where the auction is proceeding very slowly, where
there is minimal overall bidding activity or where it appears likely
that the auction will not close within a reasonable period of time.[^32]
Before exercising this option, the Bureaus are likely to attempt to
increase the pace of the auction by, for example, increasing the number
of bidding rounds per day, and/or adjusting the amount of the minimum
bid increments for the construction permits.

We received no comments on the subject, therefore, we adopt all of the
above proposals concerning the auction stopping rules. Auction No. 82
will begin under the simultaneous stopping rule, and the Bureaus will
retain the discretion to invoke the other versions of the stopping rule.
We believe that these stopping rules are most appropriate for Auction
No. 82, because our experience in prior auctions demonstrates that the
auction stopping rules balance the interests of administrative
efficiency and maximum bidder participation.

### Auction Delay, Suspension, or Cancellation 

In the *Auction No. 82 Comment Public Notice*, we proposed that, by
public notice or by announcement during the auction, the Bureaus may
delay, suspend, or cancel the auction in the event of natural disaster,
technical obstacle, evidence of an auction security breach, unlawful
bidding activity, administrative or weather necessity, or for any other
reason that affects the fair conduct of competitive bidding.[^33]

Because this approach has proven effective in resolving exigent
circumstances in previous auctions, we adopt our proposed auction
cancellation rules. By public notice or by announcement during the
auction, the Bureaus may delay, suspend or cancel the auction in the
event of natural disaster, technical obstacle, evidence of an auction
security breach, unlawful bidding activity, administrative or weather
necessity, or for any other reason that affects the fair and competitive
conduct of competitive bidding. In such cases, the Bureaus, in their
sole discretion, may elect to resume the auction starting from the
beginning of the current round, resume the auction starting from some
previous round, or cancel the auction in its entirety. Network
interruption may cause the Bureaus to delay or suspend the auction. We
emphasize that exercise of this authority is solely within the
discretion of the Bureaus, and its use is not intended to be a
substitute for situations in which bidders may wish to apply their
activity rule waivers.

## Bidding Procedures

### Round Structure

The initial bidding schedule will be announced in the public notice
listing the qualified bidders which is released approximately 10 days
before the start of the auction. This public notice will be included
with the registration mailings. The round structure for each bidding
round contains a single bidding round followed by the release of the
round results. Multiple bidding rounds may be conducted in a given day.
Details regarding round result formats and locations will also be
included in the qualified bidders public notice referenced above.

The FCC has discretion to change the bidding schedule in order to foster
an auction pace that reasonably balances speed with the bidders\' need
to study round results and adjust their bidding strategies. The FCC may
increase or decrease the amount of time for the bidding rounds and
review periods, or the number of rounds per day, depending upon the
bidding activity level and other factors.

### Reserve Price or Minimum Opening Bid

*Background*. The Balanced Budget Act calls upon the Commission to
prescribe methods by which a reasonable reserve price will be required
or a minimum opening bid established when FCC licenses or construction
permits are subject to auction (*i.e.*, because they are mutually
exclusive), unless the Commission determines that a reserve price or
minimum opening bid is not in the public interest.[^34] Consistent with
this mandate, the Commission directed the Bureaus to seek comment on the
use of a minimum opening bid and/or reserve price prior to the start of
each auction.[^35] Among other factors, the Bureaus must consider the
amount of spectrum being auctioned, levels of incumbency, the
availability of technology to provide service, the size of the
geographic service areas, the extent of interference with other spectrum
bands, and any other relevant factors that could have an impact on
valuation of the spectrum being auctioned.[^36] The Commission concluded
that the Bureaus should have the discretion to employ either or both of
these mechanisms for future auctions.[^37]

Congress has enacted a presumption that unless the Commission determines
otherwise, minimum opening bids or reserve prices are in the public
interest.[^38] Based on our experience in using minimum opening bids in
other auctions, we believe that minimum opening bids speed the course of
the auction and ensure that valuable assets are not sold for nominal
prices, without unduly interfering with the efficient assignment of
construction permits.[^39]

In the *Auction No. 82 Comment Public Notice*, the Bureaus proposed to
establish minimum opening bids for Auction No. 82 and to retain
discretion to lower the minimum opening bids.[^40] Specifically, for
Auction No. 82, the Bureaus proposed calculating the minimum opening bid
based on the potential value of the spectrum, including the type of
service, market size, industry cash flow data and recent broadcast
transactions. Three commenters challenged the minimum opening bids
proposed for this auction. WyoMedia Corp. challenged the minimum opening
bid for Scottsbluff, Nebraska, asking that it be reduced to between
\$41,000 and \$46,000. WyoMedia contends that those parties interested
in the Scottsbluff permit would be paying a minimum opening bid that is
three times as much for other permits. WyoMedia urges the Bureaus to
adopt a minimum opening bid that is consistent with those set for other
permit.[^41] Hubbard contends that \$250,000 is a more reasonable value
for the minimum opening bid for Pittsfied, Massachusetts.[^42] Powell
Meredith requests that all of the minimum opening bids be reduced since
the costs of constructing new television stations have increased.[^43]
We agree that minimum opening bids for Scottsbluff, Nebraska should be
reduced to \$50,000. However, we do not find that the commenters have
justified reducing the minimum opening bids for other permits. Therefore
only the minimum opening bids for Scottsbluff, Nebraska will be reduced.

### Bid Increments and Minimum Accepted Bids

In the *Auction No. 82 Comment Public Notice*, we proposed to use a
smoothing methodology to calculate minimum acceptable bids.[^44] We
further proposed to retain the discretion to change the minimum
acceptable bids and bid increments if circumstances so dictate.[^45] We
received no comment on this issue.

We adopt our proposal for a smoothing formula. The smoothing methodology
is designed to vary the increment for a given construction permit
between a maximum and minimum value based on the bidding activity on
that construction permit. This methodology allows the increments to be
tailored to the activity level of a construction permit, decreasing the
time it takes for active construction permits to reach their final
value. The formula used to calculate this increment is included as
Attachment D.

We adopt our proposal of initially setting the weighing factor at 0.5,
the minimum percentage increment at 0.1 (10 percent), and the maximum at
0.2 (20 percent). The Bureaus retains the discretion to change the
minimum acceptable bids and bid increments if it determines that
circumstance so dictate. The Bureaus will do so by announcement in the
Automated Auction System. Under its discretion, the Bureaus may also
implement an absolute dollar floor for the bid increment to further
facilitate a timely close of the auction. The Bureaus may also use its
discretion to adjust the minimum bid increment without prior notice if
circumstances warrant. The Bureaus also retains the discretion to use
alternate methodologies, such as a flat percentage increment for all
construction permits, for Auction No. 82 if circumstances warrant.

### High Bids

At the end of each round, the Automated Auction System determines the
standing high bid for each construction permit based on the gross dollar
amounts of the bids received for each construction permit.

In the case of tied high bids, a pseudo-random generator will be used to
determine the standing high bid. A random number will be assigned to
each bid. The tie bid having the highest random number will become the
standing high bid.

### Bidding

During a bidding round, a bidder may submit bids for as many
construction permits as it wishes (subject to its eligibility), withdraw
high bids from previous bidding rounds, remove bids placed in the same
bidding round, or permanently reduce eligibility. Bidders also have the
option of making multiple submissions and withdrawals in each bidding
round. If a bidder submits multiple bids for a construction permit in
the same round, the system takes the last bid entered as that bidder\'s
bid for the round.

Please note that all bidding will take place remotely either through the
Automated Auction System or by telephonic bidding. (Telephonic bid
assistants are required to use a script when entering bids placed by
telephone. Telephonic bidders are therefore reminded to allow sufficient
time to bid by placing their calls well in advance of the close of a
round. Normally, four to five minutes are necessary to complete a bid
submission.) There will be no on-site bidding during Auction No. 82.

A bidder's ability to bid on specific construction permits in the first
round of the auction is determined by two factors: (1) the construction
permits applied for on FCC Form 175 and (2) the upfront payment amount
deposited. The bid submission screens will allow bidders to submit bids
on only those construction permits for which the bidder applied on its
FCC Form 175.

The FCC Automated Auction System requires each bidder to be logged in
during the bidding round using the bidder identification number provided
in the registration materials, and the generated SecurID code. Bidders
are strongly encouraged to print bid confirmations [after]{.underline}
they submit their bids.

In each round, eligible bidders will be able to place bids on a given
construction permit in any of nine different amounts.[^46] For each
construction permit, the Automated Auction System interface will list
the nine acceptable bid amounts in a drop-down box. Bidders may use the
drop-down box to select from among the nine acceptable bid amounts. The
Automated Auction System also includes an import function that allows
bidders to upload text files containing their bid information.

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

Until a bid has been placed on a construction permit, the minimum
acceptable bid for that construction permit will be equal to its minimum
opening bid. The additional bid amounts for construction permits that
have not yet received a bid are calculated using the difference between
the minimum opening bid times one plus the minimum percentage increment,
rounded,[^47] and the minimum opening bid. Therefore, when the minimum
percentage increment equals 0.1, the first additional bid amount will be
approximately ten percent higher than the minimum opening bid; the
second, twenty percent; the third, thirty percent; etc.

### Bid Removal and Bid Withdrawal

In the *Auction No. 82 Comment Public Notice*, we proposed bid removal
and bid withdrawal rules.[^48] With respect to bid withdrawals, we
proposed limiting each bidder to withdrawals in no more than one round
during the course of the auction. The one round in which withdrawals are
utilized, we proposed, would be at the bidder's discretion. We received
no comments on this issue.

**Procedures.** Before the close of a bidding round, a bidder has the
option of removing any bids placed in that round. By using the "remove
bid" function in the bidding system, a bidder may effectively "unsubmit"
any bid placed within that round. A bidder removing a bid placed in the
same round is not subject to withdrawal payments. Removing a bid will
affect a bidder's activity for the round in which it is removed, *i.e.*,
a bid that is subsequently removed does not count toward the bidder's
activity requirement. This procedure, about which we received no
comments, will enhance bidder flexibility during the auction. Therefore,
we adopt these procedures for Auction No. 82.

Once a round closes, a bidder may no longer remove a bid. However, in
later rounds, a bidder may withdraw standing high bids from previous
rounds using the "withdraw bid" function (assuming that the bidder has
not exhausted its withdrawal allowance). A high bidder that withdraws
its standing high bid from a previous round during the auction is
subject to the bid withdrawal payments specified in 47 C.F.R. §
1.2104(g). **Note: Once a withdrawal is placed during a round, that
withdrawal cannot be unsubmitted.**

In previous auctions, we have detected bidder conduct that, arguably,
may have constituted strategic bidding through the use of bid
withdrawals. While we continue to recognize the important role that bid
withdrawals play in an auction, *i.e.*, reducing risk associated with
efforts to secure various construction permits in combination, we
conclude that, for Auction No. 82, adoption of a limit on their use to
one round is the most appropriate outcome. By doing so we believe we
strike a reasonable compromise that will allow bidders to use
withdrawals. Our decision on this issue is based upon our experience in
prior auctions, particularly the PCS D, E and F block auctions, and 800
MHz SMR auction, and is in no way a reflection of our view regarding the
likelihood of any speculation or "gaming" in this auction.

The Bureaus will therefore limit the number of rounds in which bidders
may place withdrawals to one round. This round will be at the bidder's
discretion and there will be no limit on the number of bids that may be
withdrawn in this round. Withdrawals during the auction will still be
subject to the bid withdrawal payments specified in 47 C.F.R. §
1.2104(g). Bidders should note that abuse of the Commission's bid
withdrawal procedures could result in the denial of the ability to bid
on a permit. If a high bid is withdrawn, the minimum accepted bid in the
next round will be the prior round's second highest bid price, which may
be less than, or equal to, in the case of tie bids, the amount of the
withdrawn bid.[^49] The additional bid amounts are calculated using the
difference between the second highest bid times one plus the minimum
percentage increment, rounded, and the second highest bid. The
Commission will serve as a "place holder" on the construction permit
until a new acceptable bid is submitted on that construction permit

**Calculation.** Generally, the Commission imposes payments on bidders
that withdraw high bids during the course of an auction.[^50] If a
bidder withdraws its bid and there is no higher bid in the same or
subsequent auction(s), the bidder that withdrew its bid is responsible
for the difference between its withdrawn bid and the net high bid in the
same or subsequent auction(s). In the case of multiple bid withdrawals
on a single construction permit, within the same or subsequent
auctions(s), the payment for each bid withdrawal will be calculated
based on the sequence of bid withdrawals and the amounts withdrawn. No
withdrawal payment will be assessed for a withdrawn bid if either the
subsequent winning bid or any of the intervening subsequent withdrawn
bids, in either the same or subsequent auctions(s), equals or exceeds
that withdrawn bid. Thus, a bidder that withdraws a bid will not be
responsible for any withdrawal payments if there is a subsequent higher
bid in the same or subsequent auction(s). This policy allows bidders
most efficiently to allocate their resources as well as to evaluate
their bidding strategies and business plans during an auction while, at
the same time, maintaining the integrity of the auction process. The
Bureaus retain the discretion to scrutinize multiple bid withdrawals on
a single construction permit for evidence of anti-competitive strategic
behavior and take appropriate action when deemed necessary.

In the *Part 1 Fifth Report and Order*, the Commission modified Section
1.2104(g)(1) of the rules regarding assessments of interim bid
withdrawal payments.[^51] As amended, Section 1.2104(g)(1) provides that
in instances in which bids have been withdrawn on a license that is not
won in the same auction, the Commission will assess an interim
withdrawal payment equal to 3 percent of the amount of the withdrawn
bids. The 3 percent interim payment will be applied toward any final bid
withdrawal payment that will be assessed after subsequent auction of the
license. Assessing an interim bid withdrawal payment ensures that the
Commission receives a minimal withdrawal payment pending assessment of
any final withdrawal payment. The *Part 1 Fifth Report and Order*
provides specific examples showing application of the bid withdrawal
payment rule.[^52]

.

### Round Results

Bids placed during a round will not be published until the conclusion of
that bidding period. After a round closes, the Bureaus will compile
reports of all bids placed, bids withdrawn, current high bid, new
minimum accepted bid, and bidder eligibility status (bidding eligibility
and activity rule waivers), and post the reports for public access.
Reports reflecting bidders\' identities and bidder identification
numbers for Auction No. 82 will be available before and during the
auction. Thus, bidders will know in advance of this auction the
identities of the bidders against which they are bidding.

### Auction Announcements

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

### Maintaining the Accuracy of Short-Form (FCC Form 175) Information

As noted in Part II.A., after the short-form filing deadline, applicants
may make only minor changes to their FCC Form 175 applications. For
example, permissible minor changes include deletion and addition of
authorized bidders (to a maximum of three) and certain revision of
exhibits. Filers must make these changes on-line, and submit a letter
summarizing the changes to:

Margaret Wiener, Chief,

Auctions and Industry Analysis Division,

Wireless Telecommunications Bureau,

Federal Communications Commission,

445 12^th^ Street, S.W., Room 4-A760

Washington, D.C. 20554

A separate copy of the letter should be faxed to Kenneth Burnley,
Auctions and Industry Analysis Division, (202) 418-2923. Questions about
other changes should be directed to Kenneth Burnley at (202) 418-0660.

# POST-AUCTION PROCEDURES

## Down Payments and Withdrawn Bid Payments

After bidding has ended, the Commission will issue a public notice
declaring the auction closed, identifying the winning bidders, down
payments and any withdrawn payments due.

Within ten business days after release of the auction closing notice,
each winning bidder must submit sufficient funds (in addition to its
upfront payment) to bring its total amount of money on deposit with the
Government to 20 percent of its net winning bids (actual bids less any
applicable bidding credit). *See* 47 C.F.R. § 1.2107(b). In addition, by
the same deadline all bidders must pay any bid withdrawal payments due
under 47 C.F.R. § 1.2104(g), as discussed in "Bid Removal and Bid
Withdrawal," Part IV.B.6. (Upfront payments are applied first to satisfy
any withdrawn bid liability, before being applied toward down payments.)

## Long-Form Application 

Within ten business days after release of the auction closing public
notice, winning bidders must electronically submit a properly completed
long-form application and required exhibits for each construction permit
won through Auction No. 82. Winning bidders that are claiming new
entrant status must include an exhibit demonstrating their eligibility
for the bidding credit. *See* 47 C.F.R. § 1.2112(b). Further filing
instructions will be provided to the auction winners at the close of the
auction.

## Default and Disqualification

Any high bidder that defaults or is disqualified after the close of the
auction (*i.e.*, fails to remit the required down payment within the
prescribed period of time, fails to submit a timely long-form
application, fails to make full payment, or is otherwise disqualified)
will be subject to the payments described in 47 C.F.R. § 1.2104(g)(2).
In such event the Commission may re-auction the construction permit or
offer it to the next highest bidder (in descending order) at their final
bid. *See* 47 C.F.R. § 1.2109(b) and (c). In addition, if a default or
disqualification involves gross misconduct, misrepresentation, or bad
faith by an applicant, the Commission may declare the applicant and its
principals ineligible to bid in future auctions, and may take any other
action that it deems necessary, including institution of proceedings to
revoke any existing licenses or construction permits held by the
applicant. *See* 47 C.F.R. § 1.2109(d).

## Refund of Remaining Upfront Payment Balance

All applicants that submitted upfront payments but were not winning
bidders for a construction permit in Auction No. 82 may be entitled to a
refund of their upfront payment balance after the conclusion of the
auction. No refund will be made unless there are excess funds on deposit
from that applicant after any applicable bid withdrawal payments have
been paid. All refunds will be returned to the payer of record, as
identified on the FCC Form 159, unless the payer submits written
authorization instructing otherwise.

Qualified bidders that have exhausted all of their activity rule
waivers, have no remaining bidding eligibility, and have not withdrawn a
high bid during the auction must submit a written refund request. If you
have completed the refund instructions electronically, then only a
written request for the refund is necessary. If not, the request must
also include wire transfer instructions and a Taxpayer Identification
Number (TIN). Send refund request to:

Federal Communications Commission

Financial Operations Center

Auctions Accounting Group

Michelle Bennett

445 12th Street, SW, Room 1-C864

Washington, DC 20554

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

> NOTE: Refund processing generally takes up to two weeks to complete.
> Bidders with questions about refunds should contact Tim Dates or Gail
> Glasser at (202) 418-1995.

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

**Auctions and Industry Analysis Division:** Kenneth Burnley, Legal
Branch, or Jeff Crooks, Auctions Operations Branch, at (202) 418-0660;
Linda Sanderson, Auctions Operations Branch at (717) 338-2888.

**Video Services Division:** Shaun Maher at (202) 418-1600.

**- FCC -**

# ATTACHMENT A

**New Analog Television Station Construction Permits**

  --------- -------------- ------------- ----------- -------------- -------------- ----------------------------
  **MX      **Location**   **Channel**   **Bidding   **Upfront      **Minimum      **Applicants**
  Group**                                Units**     Payment**      Opening Bid**  

  PST1      Columbia, SC   47            295,000     \$295,000.00   \$295,000.00   Alliance Trust

                                                                                   Christian Television
                                                                                   Corporation, Inc.

                                                                                   Equity Broadcasting
                                                                                   Corporation

                                                                                   Fant Broadcast Development,
                                                                                   L.L.C

                                                                                   Gary Cooper

                                                                                   George S. Flinn, Jr.

                                                                                   Glory TV

                                                                                   Grant Video Inc.

                                                                                   Innovative Television III,
                                                                                   G.P.

                                                                                   Knoxville Channel 25, L.L.C.

                                                                                   Marcia T. Turner d/b/a/
                                                                                   Turner Enterprises

                                                                                   Outlook Communications, Inc.

                                                                                   Pappas Telecasting Companies

                                                                                   Pegasus Broadcast
                                                                                   Television, Inc.

                                                                                   Powell Meredith
                                                                                   Communications Company

                                                                                   Richard Alan Cooper

                                                                                   Richland Holdings, LLC

                                                                                   Roberts Broadcasting USA,
                                                                                   LLC

                                                                                   Terrill Weiss

                                                                                   Trinity Christian Center of
                                                                                   Santa Ana, Inc. d/b/a
                                                                                   Trinity Broadcasting Network

                                                                                   Venture Technologies Group,
                                                                                   LLC

  PST2      Pittsfield, MA 51            420,000     \$420,000.00   \$420,000.00   CAM Broadcasting Company,
                                                                                   Inc.

                                                                                   Equity Broadcasting
                                                                                   Corporation

                                                                                   George S. Flinn, Jr.

                                                                                   Grant Video Inc.

                                                                                   Hubbard Broadcasting, Inc.

                                                                                   Marcia T. Turner d/b/a/
                                                                                   Turner Enterprises

                                                                                   Outlook Communications, Inc.

                                                                                   Pappas Telecasting of
                                                                                   America, A California
                                                                                   Limited Partnership

                                                                                   Powell Meredith
                                                                                   Communications Company

                                                                                   Roberts Broadcasting USA,
                                                                                   LLC

                                                                                   Terrill Weiss

                                                                                   Trinity Christian Center of
                                                                                   Santa Ana, Inc. d/b/a
                                                                                   Trinity Broadcasting Network

                                                                                   Venture Technologies Group,
                                                                                   LLC
  --------- -------------- ------------- ----------- -------------- -------------- ----------------------------

**ATTACHMENT A**

**New Analog Television Station Construction Permits**

  --------- -------------- ------------- ----------- -------------- -------------- ----------------------------
  **MX      **Location**   **Channel**   **Bidding   **Upfront      **Minimum      **Applicants**
  Group**                                Units**     Payment**      Opening Bid**  

  PST3      Magee, MS      34            295,000     \$295,000.00   \$295,000.00   Christian Television
                                                                                   Corporation, Inc.

                                                                                   Equity Broadcasting
                                                                                   Corporation

                                                                                   Evergreen Trust

                                                                                   George S. Flinn, Jr.

                                                                                   Grant Video Inc.

                                                                                   KM Communications, Inc.

                                                                                   Marcia T. Turner d/b/a/
                                                                                   Turner Enterprises

                                                                                   Marri Broadcasting, L.P.

                                                                                   Pappas Telecasting of
                                                                                   America, A California
                                                                                   Limited Partnership

                                                                                   Powell Meredith
                                                                                   Communications Company

                                                                                   Richard Alan Cooper

                                                                                   Roberts Broadcasting USA,
                                                                                   LLC

                                                                                   Terrill Weiss

                                                                                   Venture Technologies Group,
                                                                                   LLC

  PST4      Scottsbluff,   16            50,000      \$50,000.00    \$50,000.00    Equity Broadcasting
            NE                                                                     Corporation

                                                                                   George S. Flinn, Jr.

                                                                                   KM Communications, Inc.

                                                                                   Marcia T. Turner d/b/a/
                                                                                   Turner Enterprises

                                                                                   Pappas Telecasting of
                                                                                   America, A California
                                                                                   Limited Partnership

                                                                                   Powell Meredith
                                                                                   Communications Company

                                                                                   Roberts Broadcasting USA,
                                                                                   LLC

                                                                                   Terrill Weiss

                                                                                   WyoMedia Corp.
  --------- -------------- ------------- ----------- -------------- -------------- ----------------------------

# ATTACHMENT B

FCC AUCTION SEMINAR REGISTRATION FORM

Auction No. 82

The FCC will sponsor a one-day seminar for Auction No. 82 applicants.
The seminar is free of charge and will provide information about
pre-auction procedures, service and auction rules, conduct of the
auction, and the Automated Auction System.

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

Tuesday, January 8, 2002

Federal Communications Commission

445 12^th^ Street S.W. (Room 3-B516)

Washington, DC 20554

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

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

**If hotel accommodations are needed**

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

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

**To register, complete the form below and**

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

**Friday, January 4, 2002,** to:

FCC Auction 82

Auctions Operations Branch

1270 Fairfield Road

Gettysburg, PA 17325-7245

FAX: 717-338-2850

Phone: 717-338-2888

I/We will attend the Auction No. 82 Seminar, scheduled for **Tuesday,
January 8, 2002.**

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

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

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

Phone: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Fax:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

# ATTACHMENT C

**AUCTION-SPECIFIC INSTRUCTIONS FOR**

**FCC REMITTANCE ADVICE (FCC FORM 159-February 2000 edition)**

## Upfront Payments

The following information supplements the standard instructions for FCC
Form 159 (Revised 2/00), and is provided to help ensure correct
completion of FCC Form 159 for upfront payments for Auction No. 82.
Applicants need to complete FCC Form 159 carefully, since:

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

```{=html}
<!-- -->
```
-   **Lack of consistency between information set forth in FCC Form 159
    (Revised 2/00), FCC Form 175, long-form application, and
    correspondence about an application may cause processing delays.**

Therefore appropriate cross-references between the FCC Form 159
Remittance Advice and the FCC

Form 175 Short Form Application are described below:

Block

Number Required Information

> 1 LOCKBOX \# - Enter "358420"
>
> 2 Payer Name - Enter the name of the person or company making the
> payment.
>
> If the applicant itself is the payer, this entry would be the same as
> FCC Form 175.
>
> 3 Total Amount Paid - Enter the amount of the upfront payment
> associated with the
>
> FCC Form 159 (Revised 2/00).

8.  Street Address, City, State, ZIP Code - Enter the street mailing
    address (not Post

> Office box number) where mail should be sent to the payer. If the
> applicant is the
>
> payer, these entries would be the same as FCC Form 175 from the
> Applicant
>
> Information section.

9.  Daytime Telephone Number - Enter the telephone number of a person
    knowledgeable

> about this upfront payment.

10. Country Code - For addresses outside the United States, enter the
    appropriate postal country code (available from the Mailing
    Requirements Department of the U.S. Postal Service).

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

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

> 24A Payment Type Code - Enter "A82U"
>
> 25A Quantity - Enter the number "1"
>
> 26A Fee Due - Amount of Upfront Payment
>
> 27A Total Fee - Will be the same amount as 26A.
>
> 28A FCC Code 1 - Enter the number "82" (indicating Auction No. 82).

NOTES:

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

-   If applicant is different from the payer, complete blocks 13 through
    22 for the applicant, using the same information shown on FCC
    Form 175. Otherwise leave them blank.

-   Since credit card payments will not be accepted for this auction,
    leave Section E blank.

## Winning Bidder Requirements, Down Payments and Final Payments

Specific information regarding down payments and final payments will be
included in a post-auction public notice announcing the winning bidders.

# ATTACHMENT D

Minimum Acceptable Bids, Bid Increments, and the Smoothing Formula

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

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

In a given round, the calculation of the percentage increment for each
construction permit is made at the end of the previous round. The
computation is based on an activity index, which is calculated as the
weighted average of the activity in that round and the activity index
from the prior round. The activity index at the start of the auction
(round 0) will be set at 0. The current activity index is equal to a
weighting factor times the number of new bids received on the
construction permit in the most recent bidding round plus one minus the
weighting factor times the activity index from the prior round. The
activity index is then used to calculate a percentage increment by
multiplying a minimum percentage increment by one plus the activity
index with that result being subject to a maximum percentage increment.
The Commission will initially set the weighting factor at 0.5, the
minimum percentage increment at 0.1 (10%), and the maximum percentage
increment at 0.2 (20%).

Equations

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

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

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

where,

A~i~ = activity index for the current round (round i)

C = activity weight factor

B~i~ = number of bids in the current round (round i)

A~i-1~ = activity index from previous round (round i-1), A~0~ is 0

I~i+1~ = percentage increment for the next round (round i+1)

N = minimum percentage increment or percentage increment floor

M = maximum percentage increment or percentage increment ceiling

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

Y~i~ = high bid from the current round

Under the smoothing methodology, once a bid has been received on a
construction permit, the minimum acceptable bid for that construction
permit in the following round will be the high bid from the current
round plus the dollar amount associated with the percentage increment,
with the result rounded to the nearest thousand if it is over ten
thousand, to the nearest hundred if it is under ten thousand but over
one thousand, or to the nearest ten if it is below one thousand.

Examples

Construction Permit 1

C=0.5, N = 0.1, M = 0.2

[Round 1 (2 new bids, high bid = \$1,000,000)]{.underline}

1\. Calculation of percentage increment for round 2 using the smoothing
formula:

A~1~ = (0.5 \* 2) + (0.5 \* 0) = 1

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

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

X~2~ = 0.2 \* \$1,000,000 = \$200,000

3\. Minimum acceptable bid for round 2 = \$1,200,000

[Round 2 (3 new bids, high bid = \$2,000,000)]{.underline}

1\. Calculation of percentage increment for round 3 using the smoothing
formula:

A~2~ = (0.5 \* 3) + (0.5 \* 1) = 2

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

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

X~3~ = 0.2 \* \$2,000,000 = \$400,000

3\. Minimum acceptable bid for round 3 = \$2,400,000

[Round 3 (1 new bid, high bid = \$2,400,000)]{.underline}

1\. Calculation of percentage increment for round 4 using the smoothing
formula:

A~3~ = (0.5 \* 1) + (0.5 \* 2) = 1.5

I~4~ = The smaller of ( (1 + 1.5) \* 0.1) = 0.25 or 0.2 (the maximum
percentage increment)

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

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

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

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

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

# ATTACHMENT E

**SUMMARY LISTING OF DOCUMENTS FROM THE COMMISSION**

**AND THE WIRELESS TELECOMMUNICATIONS BUREAU**

**ADDRESSING APPLICATION OF THE ANTI‑COLLUSION RULES**

All of the following documents can be found at FCC web site:
[http://wireless.fcc.gov/auctions/collusio/collusio.html]{.underline}

## Commission Decisions:

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

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

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

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

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

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

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

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

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

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

In the Matter of Amendment of Part 1 of the Commission's
Rules---Competitive Bidding Procedures, *Seventh Report and Order*, FCC
01-270 (rel. September 27, 2001).

## Wireless Telecommunications Bureau Decisions:

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

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

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

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

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

### Public Notices:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

### Miscellaneous:

Many of these documents can be retrieved from the following Commission
web site:

[http://wireless.fcc.gov/auctions/collusio/collusio.html](http://www.fcc.gov/wtb/auctions/collusio/collusio.html)

These documents may be located by using our search engine (select the
link "search"). All of these documents can be ordered in hard copy for a
fee from the Commission's contractor, International Transcription
Service, Inc. at (202) 857-3800.

Documents retrieved from the FCC web site are available in various
formats. In order to review a document in its entirety, including
footnotes, it is necessary to access the document in WordPerfect, MS
Word, or Acrobat Reader.

[^1]: ^?^ Section 3002(a), Balanced Budget Act of 1997, Pub. L. 105-33,
    111 Stat. 251 (1997) (\"Balanced Budget Act\"); 47 U.S.C.
    §309(j)(4)(F). The Commission\'s authority to establish a reserve
    price or minimum opening bid is set forth in 47 C.F.R. § 1.2104 (c)
    and (d).

[^2]: ^?^ *See* Auction of Construction Permits For New Analog
    Television Stations Scheduled for February 5, 2002; Comment Sought
    on Reserve Prices or Minimum Opening Bids and Other Auction
    Procedural Issues, *Public Notice*, DA 01-2605 (rel. November 9,
    2001) (\"*Auction No. 82 Comment Public Notice*\").

[^3]: ^?^ Comments were filed by Powell Meredith Communications Company
    ("Powell Meredith"), WCSC, Inc. ("WCSC"), WyoMedia Corp.
    ("WyoMedia"), and Hubbard Broadcasting, Inc. ("Hubbard").

[^4]: ^?^ *See* Implementation of Section 309(j) of the Communications
    Act -- Competitive Bidding for Commercial Broadcast and
    Instructional Television Fixed Service Licenses, MM Docket No.
    97-234, GC Docket No. 92-52 and GEN Docket No. 90-264, *First Report
    and Order*, 13 FCC Rcd 15920 (1998) ("*Broadcast First Report and
    Order*").

[^5]: ^?^ *See* Implementation of Section 309(j) of the Communications
    Act -- Competitive Bidding for Commercial Broadcast and
    Instructional Television Fixed Service Licenses, MM Docket No.
    97-234, *Memorandum Opinion and Order*, 14 FCC Rcd 8724 (1999)
    ("*Broadcast Reconsideration Order*").

[^6]: ^?^ *See* Implementation of Section 309(j) of the Communications
    Act -- Competitive Bidding for Commercial Broadcast and
    Instructional Television Fixed Service Licenses, MM Docket No.
    97-234, *Memorandum Opinion and Order*, 14 FCC Rcd 12541 (1999)
    ("*New Entrant Bidding Credit Reconsideration Order*").

[^7]: *See* Part 1, Subpart Q of Title 47 of the Code of Federal
    Regulations.

[^8]: *See* 47 C.F.R. § 1.2105(c).

[^9]: ^?^ *See* Auction Filing Window For New Analog Television Stations
    Auction No. 82, *Public Notice*, DA 01-1300 (rel. May 25, 2001)
    ("*Auction Filing Window Public Notice*").

[^10]: ^?^ *See Nevada Wireless,* 13 FCC Rcd at 11978.

[^11]: ^?^ *See* 47 C.F.R. § 1.65.

[^12]: ^?^ The Commission recently amended Section 1.2105 to require
    auction applicants to report prohibited communications in writing to
    the Commission immediately, but in no case later than five business
    days after the communication occurs. In the Matter of Amendment of
    Part 1 of the Commission's Rules\--Competitive Bidding Procedures,
    WT Docket No. 97-82, *Seventh Report and Orde*r, FCC 01-270, at 10
    (rel. September 27, 2001) ("*Part 1 Seventh Report and Orde*r").

[^13]: Pub. L. No. 106-113, 113 Stat. 1501 (1999), codified at 47 U.S.C.
    § 336(f).

[^14]: *See* Establishment of a Class A Television Service, MM Docket
    No. 00-10, *Report and Order*, FCC 00-115 ( rel. April 4, 2000 )
    ("*Class A Report and Order*").

[^15]: *Id*. at ¶¶ 37-38.

[^16]: ^?^ "*See* Digital Television Broadcast Service; Substitution of
    DTV Channel 47 for Assigned DTV Channel 52 in Charleston, South
    Carolina; MM Docket No. 01-128, *Notice of Proposed Rulemaking*, DA
    01-1465 (rel. June 25, 2001)."

[^17]: ^?^ *See* Comments and Request for Clarification of WCSC, Inc.

[^18]: ^?^ *See* 47 C.F.R. § 1.2105.

[^19]: ^?^ *See* 47 C.F.R. §§1.1305-1.1319.

[^20]: ^?^ *See Auction No. 82 Comment Public Notice* at 11.

[^21]: ^?^ *See* Auction Filing Window For New Analog Television
    Stations for Auction No. 82, *Public Notice*, DA 01-1300 (rel. May
    25, 2001) ("*Auction Filing Window Public Notice*").

[^22]: ^?^ *See* 47 C.F.R. § 1.2105. *See also* Two Way Radio of
    Carolina, Inc., *Memorandum, Opinion and Order*, 14 FCC Rcd 12035
    (1999).

[^23]: *See* Amendment of Part 1 of the Commission\'s Rules \--
    Competitive Bidding Proceeding, WT Docket No. 97-82, *Order,
    Memorandum Opinion and Order and Notice of Proposed Rule Making*, 12
    FCC Rcd 5686, 5697-5698, ¶ 16 (1997). *See* also *Broadcast First
    Report and Order,* 13 FCC Rcd at 15967-68, ¶ 127-128.

[^24]: ^?^ In the Matter of Amendment of Part 1 of the Commission's
    Rules\--Competitive Bidding Procedures, WT Docket No. 97-82, *Order
    on Reconsideration of the Third Report and Order, Fifth Report and
    Order, and Fourth Further Notice of Proposed Rule Making*, 15 FCC
    Rcd at 15316-17, ¶¶ 40-42 (2000) ("*Part 1 Fifth Report and
    Order*"); 47 C.F.R. § 1.2106(a); *see also* 47 C.F.R.
    §§1.2105(a)(2)(xi).

[^25]: *See Auction No. 82 Comment Public Notice* at 2.

[^26]: WyoMedia Comments at 1.

[^27]: *Id*. at 3.

[^28]: *Auction No. 82 Comment Public Notice* at 2.

[^29]: *Id*.

[^30]: *Id*. at 3.

[^31]: ^?^ *Id*. at 8-9.

[^32]: ^?^ *Id.* at 9.

[^33]: ^?^ *Id*. at 4.

[^34]: Balanced Budget Act, *see* note 2, *supra*.

[^35]: *See* Amendment of Part 1 of the Commission\'s Rules \--
    Competitive Bidding Procedures, WT Docket No. 97-82, *Third Report
    and Order and Second Further Notice of Proposed Rule Making*, 13 FCC
    Rcd at 141, 455-456 (1998) (\"*Part 1 Third Report and Order*\").

[^36]: *Id*.

[^37]: *Id*.

[^38]: Section 3002(F) of the Balanced Budget Act directs the Commission
    to \"prescribe methods by which a reasonable reserve price will be
    required, or a minimum bid established, to obtain any license or
    permit being assigned pursuant to the competitive bidding, unless
    the Commission determines that such a reserve price or minimum bid
    is not in the public interest.\"

[^39]: *See* 47 U.S.C. 309(j)(3)(C).

[^40]: *Auction No. 82 Comment Public Notice* at 4-5.

[^41]: ^?^ WyoMedia Comments at 3.

[^42]: ^?^ Hubbard Comments at

[^43]: ^?^ Poweel Meredith Comments at 2.

[^44]: ^?^ *Id*. at 5-8.

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

[^46]: ^?^ Bidders must have sufficient eligibility to place a bid on
    the particular construction permit. *See* Section III.C.3 "Amount of
    Upfront Payment," *infra*.

[^47]: ^?^ The product of the minimum opening bid times one plus the
    minimum percentage increment is rounded to the nearest thousand if
    it is over ten thousand, to the nearest hundred if it is under ten
    thousand but over one thousand, or to the nearest ten if it is below
    one thousand.

[^48]: ^?^ *Auction No. 82 Comment Public Notice* at 8.

[^49]: ^?^ The Bureau retains the discretion to lower the minimum
    acceptable bid on such construction permits in the next round or in
    later rounds.

[^50]: ^?^ *See* 47 C.F.R. §§ 1.2104(g), 1.2109.

[^51]: ^?^ *See* *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15302, ¶
    15; 47 C.F.R. § 1.2104(g)(1).

[^52]: ^?^ *See Part 1 Fifth Report and Order*, 15 FCC Rcd at 15302, ¶
    15.