**PUBLIC NOTICE**![](media/image1.png){width="0.7388888888888889in"
height="0.7458333333333333in"}

**FEDERAL COMMUNICATIONS COMMISSION**

**445 12th STREET, S.W.**

# WASHINGTON, D.C. 20554

News Media Information: (202) 418-0500

Fax-On-Demand: (202) 418-2830

Internet: http://www.fcc.gov

ftp.fcc.gov

**DA 99-1287**

July 1, 1999

**Phase II 220 MHz Service Spectrum**

**Auction Closes**

## Winning Bidders in the Auction of 225 Licenses in the 

## Phase II 220 MHz Service

Down Payments Due July 16, 1999

FCC Forms 601 and 602 Due July 16, 1999

*Ten-Day Petition to Deny Period*

**Report No. AUC-24-E (Auction No. 24)**

On June 30, 1999, the Federal Communications Commission completed the
auction of 225 Phase II 220 MHz service licenses, raising (in net high
bids) a total of \$1,924,950 for the U.S. Treasury. 16 winning bidders
won a total of 222 Phase II 220 MHz licenses.

This public notice provides detailed information concerning winning
bidders, down payments, bid withdrawal payments and/or deposits, default
payments, FCC Forms 601 and 602 filing requirements, requests for rule
waivers, and licensing matters. Key information appears in the following
attachments:

**Attachment A:** "Round Results, High Bids" lists winning bidders and
both the gross and net high winning bid amounts.

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

**Attachment C:** "Withdrawal/Payment Report" lists withdrawal bid
payments owed by all bidders.

**Attachment D:** "Default Payment Report" contains total default
payment based upon reconciliation of final results of Auction No. 18 and
Auction No. 24.

**Attachment E:** "Multi-Auction Withdrawal Payment Report" contains
amount due/refund due based upon reconciliation of final results of
Auction No. 18 and Auction No. 24.

**Attachment F:** "Instructions for Completing FCC Form 601" provides
detailed information about how a winning bidder should complete the
required FCC Form 601 for Phase II 220 MHz license applications.

**Attachment G:** "Instructions for Using ULS to Register TIN and Call
Signs With FCC and File FCC Form 601 Electronically"

**Attachment H:** "Accessing the FCC Network using Windows 95/98"

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

**Down payments.** The Commission\'s rules require that within ten
business days after the release of this public notice, in this case,
**by 6:00 p.m. ET on July 16, 1999**, winning bidders in Phase II 220
MHz Auction (Auction 24) must have on deposit with Mellon Bank in
Pittsburgh, Pennsylvania, enough funds to cover all required: (1) down
payments on winning bids, and (2) payments for withdrawn bids, if
applicable. If a bidder\'s upfront payment is not sufficient to meet
both of these requirements, the bidder must deposit additional funds.
*See* 47 C.F.R. §§1.2107(b), 90.1011(b).[^1]

The amount now due from each bidder, if any, is set out in the last
column of **Attachment B**. *Note that only if a bidder\'s upfront
payment covers the required total of down payments and withdrawn bid
payments (as reflected in Attachment B) is no payment or FCC Form 159
necessary at this time.* Each bidder\'s down payment must be a total of
twenty (20) percent of its net winning bid(s) plus any withdrawal
payments.

**Final payments.** After the termination of the licensing pleading
cycle (*see* 47 C.F.R. §1.2108), the Commission will issue a public
notice announcing that it is prepared to grant the licenses. Within ten
business days after the date of that public notice, winning bidders will
be required to make full payment of the balance of their winning bids.
*See* 47 C.F.R. §§1.2109 and 1.2107(b). Licenses will be granted only
after final payment is made.

**Method of payment.** All payments must be in U.S. dollars and made in
the form of a wire transfer. No personal checks, credit card payments,
or other forms of payment will be accepted. All payments must be
accompanied by a completed FCC Remittance Advice Form (FCC Form
159).[^2] A partially completed copy of the FCC Form 159 will be sent to
each winning bidder within three (3) business days following release of
this public notice to facilitate submission of the correct down payment.
Winning bidders that have not received the partially completed FCC Form
159 by that date should contact Geoffrey Idika or Gail Glasser at
202-418-1995. **However, winning bidders are ultimately responsible for
the verification and submission of the correct down payment.**

**Wire transfer payments** must be **received** by Mellon Bank by **6:00
p.m. ET, on July 16, 1999.** Bidders should coordinate with their
bankers ahead of time regarding their wire transfers, and allow
sufficient time for the wire transfer to be **initiated and completed
prior to the deadline**. To submit funds by wire transfer, bidders will
need the following information:

ABA Routing Number: 043000261

Receiving Bank: Mellon Pittsburgh

BNF: 911-6106

> OBI Field: (Skip one space between each information item) "AUCTIONPAY"

TAXPAYER IDENTIFICATION NO. (same as FCC Form 159, Block 26)

PAYMENT TYPE CODE (enter \"A24U\")

FCC CODE 1 (same as FCC Form 159, Block 23A: \"24\")

PAYOR NAME (same as FCC Form 159, Block 2)

LOCKBOX NO.: 358850

Bidders must fax a completed FCC Form 159 to Mellon Bank at 412-236-5702
at least one hour before placing the order for the wire transfer (but on
the same business day).

Proper completion of the **FCC Form 159** is critical to ensuring
correct credit of bidder deposits. **Bidders must use the same Taxpayer
Identification Number used on their FCC Form 175.**[^3] Questions
concerning the calculation and submission of down payments should be
directed to Gail Glasser at 202-418-1995.

**Withdrawal, default and disqualification payments.** The Commission
imposes payments on bidders that withdraw high bids during the course of
an auction, or that default on payments due after an auction closes, or
that are disqualified. *See* 47 C.F.R. §§ 1.2104(g), 1.2109(c), 90.007,
90.1015.

*1. Bid Withdrawal Payments.* A bidder (Bidder X) that withdraws a high
bid during the course of an auction is subject to a bid withdrawal
payment equal to the difference between the amount withdrawn and the
amount of the subsequent winning bid. If a high bid is withdrawn on a
license that remains unsold at the close of the auction, Bidder X will
be required to make an interim payment equal to three (3) percent of the
net amount of the withdrawn bid. [^4] This payment amount is deducted
from any upfront payments or down payments that Bidder X has deposited
with the Commission. If, in a subsequent auction, that license receives
a valid bid in an amount equal to or greater than the withdrawn bid
amount, then no final bid withdrawal payment will be assessed, and
Bidder X may request a refund of the interim three (3) percent payment.
If, in a subsequent auction, the selling price for that license is less
than Bidder X's withdrawn bid amount, then Bidder X will be required to
make a final bid withdrawal payment equal to either the difference
between Bidder X's net withdrawn bid and the subsequent net winning bid,
or the difference between Bidder X's gross withdrawn bid and the
subsequent gross winning bid, whichever is less.

**Attachment C** identifies bidders that owe withdrawal payments to the
Commission as a result of bid withdrawals made in Auction No. 24. In
addition, now that Auction No. 24 is complete, we are in a position to
calculate and assess final bid withdrawal payments owed as a result of
withdrawals on licenses in Auction No. 18. These final bid withdrawal
payments are identified in **Attachment E**. Forthcoming orders will
assess such payments.

*2. Bid Default/Disqualification Payments.* If a high bidder defaults or
is disqualified after the close of the auction, the defaulting bidder
will be subject to the same bid withdrawal payment obligations as
described above, plus an additional payment equal to three (3) percent
of the subsequent winning bid or three (3) percent of the defaulted bid,
whichever is less. Where a bidding credit applies to the winning bid
from either the original or the subsequent auction, the calculation of
the three percent payment is based on the smaller of the two gross bids
or smaller of the two net bids, whichever basis (gross or net) was used
to figure the first component. Thus, if the difference between the gross
bids is less than the difference between the net bids, the three percent
payment will be computed on the lower of the gross bids. If the
difference between the net bids is less than or equal to the difference
between the gross bids, the three percent payment will be computed on
the lower of the net bids. However, if the differences between both the
gross bids and the net bids are less than or equal to zero, the three
percent payment will be computed on the lower of the net bids.

If a winning bidder fails to remit the required down payment within ten
(10) business days after the Commission has released this Public Notice,
in this case, July 16, 1999, the bidder will be deemed to have
defaulted, its application will be dismissed, and it will be liable for
a default payment as described above. In such event, the Commission, at
its discretion, may either auction the spectrum to existing or new
applicants, or offer it to the other highest bidders (in descending
order) at their final bids. *See* 47 C.F.R. § 1.2109(b).

If a winning bidder fails to pay the balance of its winning bids in a
lump sum by the applicable deadline as specified by the Commission, it
will be allowed to make payment within ten (10) business days after the
payment deadline provided that it also pays a late fee equal to five (5)
percent of the amount due. When a winning bidder fails to pay the
balance of its winning bid plus late fee by the late payment deadline,
it is considered to be in default on its license(s) and subject to the
applicable default payments. Licenses will be awarded upon the full and
timely payment of winning bids and any applicable late fees. *See* 47
C.F.R. §1.2109(a). A winning bidder that is found unqualified to be a
licensee, fails to remit the balance of its winning bid in a timely
manner, or defaults or is disqualified for any reason after having made
the required down payment, will be deemed to have defaulted and will be
liable for the payment set forth in Section 1.2104(g)(2). In such event,
the Commission may either auction the spectrum to existing or new
applicants or offer it to the other highest bidders (in descending
order) at their final bids. *See* 47 C.F.R. § 1.2109(c).

Finally, bidders that are found to have violated the antitrust laws or
the Commission\'s rules in connection with their participation in the
competitive bidding process may be subject, in addition to any other
applicable sanctions, to forfeiture of their upfront payment, down
payment, or full bid amount, and may be prohibited from participating in
future auctions. *See* 47 C.F.R. § 1.2109(d).

Now that Auction No. 24 is complete, we are in a position to calculate
and assess final default payments owed as a result of defaults on
licenses in Auction No. 18. These payments are identified in
**Attachment D**. Forthcoming orders will assess such payments.

**Refund of excess upfront payments (for winning bidders).** Upfront
monies on deposit that are in excess of the required down payment,
withdrawal and/or default payment amounts will be refunded to the payor
of record promptly upon receipt of the necessary wire transfer
instructions. Winning bidders must fax the necessary wire transfer
instructions to Geoffrey Idika at 202-418-2843. Any questions concerning
refunds should be referred to Geoffrey Idika or Gail Glasser at
202-418-1995.

**Refund of upfront payments (for non-winning bidders).** Non-winning
bidders must fax the necessary wire transfer instructions to Geoffrey
Idika at 202-418-2843. Any questions concerning refunds for non-winning
bidders should be referred to Geoffrey Idika or Gail Glasser at
202-418-1995.

**FCC FORM 601**

By **5:30 p.m. ET on July 16, 1999**, winning bidders must submit
completed long-form license application(s) covering each license for
which they were the winning high bidder. **Attachment F** sets out
instructions for completing the FCC Form 601. Applications must be filed
electronically. Detailed instructions for filing the Form 601
electronically are set out in **Attachment G**.

**Failure to timely file FCC Form 601 will result in default. Late-filed
applications will not be accepted without a showing of good cause.**[^5]

**FCC FORM 602**

Pursuant to Section 1.919 of the Commission's rules, an applicant for a
license in an auctionable service must have on file with the Commission
a current FCC Form 602 regarding ownership information of the applicant.
Therefore, unless the applicant already has a current FCC Form 602 on
file with the Commission, it must submit one by **July 16, 1999.**

FCC Form 602 must be filed manually (not electronically), and may be
obtained from the Internet at,
[http://www.fcc.gov/formpage.html]{.underline} or by calling the FCC's
Form Distribution Center at 1-800-418-FORM (3676). For more detailed
information on FCC Form 602, *see* "Wireless Telecommunications Bureau
Answers Frequently Asked Questions Concerning Reporting of Ownership
Information on FCC Form 602," *Public Notice*, DA 99-1001 (rel. May 25,
1999).

Applicants that do not have a current FCC Form 602 on file should send
the form to:

Federal Communications Commission

1270 Fairfield Road

Gettysburg, PA 17325-7245

Filing FCC Form 602 is a [separate]{.underline} requirement in addition
to the ownership reporting requirements associated with filing FCC Form
601, Exhibit A, as set forth in Attachment F. However, to avoid
duplication, applicants may provide certain information required in
Exhibit A by attaching a copy of their FCC Form 602 to FCC Form 601. For
further information, see Instructions in Attachment F.

**Applications for multiple licenses.** Applicants for multiple licenses
are not required to submit separate Forms 601 and 602 for each market if
**all** filing requirements associated with the application (name and
address information, all ownership and eligibility attachments, and
waiver requests) are identical **except** for the market designator,
channel block and market name (for Auction No. 24, this would be the
Phase II 220 MHz service geographic area license designator; for
example, BEA001\--Bangor, ME or EAG001\--Northeast). Under these
circumstances, applicants may submit *one* FCC Form 601 Main Form and
Schedule B, and Form 602.

Filers whose name and address, ownership, eligibility, and waiver
requests are identical for some licenses but different for others may
utilize this streamlined filing procedure only for those licenses that
have identical filing information. For those licenses with unique
information, a separate application must be submitted.

**Application processing and license grant.** Pursuant to 47 C.F.R. §§
90.1025, 1.2108(b), and the Balanced Budget Act of 1997, Pub. L. 105-33,
111 Stat. 251 (1997), interested parties will have **ten (10) days** to
file petitions to deny after the Commission releases a public notice
announcing that the FCC Form 601 and 602 are acceptable for filing. An
applicant may file an opposition to any petition to deny within **five
(5) days** after the time for filing petitions to deny has expired.
*See* 47 C.F.R. §1.2108(c). The petitioner may file a reply to such
opposition within **five (5) days** after the time for filing
oppositions has expired. *See* 47 C.F.R. §1.2108(c). If the Commission
determines that an applicant is qualified and there is no substantial
and material issue of fact concerning that determination, it will grant
the application.

**Anti-collusion rules.** To ensure the competitiveness of the auction
process, the Commission's rules prohibit applicants for the same
geographic license area from communicating with each other during the
auction about bids, bidding strategies, or settlements. As explained
more fully in the Public Notice announcing Auction No. 24,[^6] this
prohibition begins with the filing of short-form applications and ends
on the down payment due date.[^7] The prohibition ends on the down
payment due date whether or not a high bidder must supplement its
upfront payment to cover its down payment. By signing their FCC Form 175
short-form applications, applicants are certifying their compliance with
Section 1.2105(c).

**Post-auction forum.** The Wireless Telecommunications Bureau will
sponsor a post-auction forum for bidders that participated in Auction
No. 24. This forum will be held on July 27, 1999 from 1 p.m. to 3 p.m.
in the FCC's Commission Meeting Room (Room #TW-C305), 445 12^th^ Street,
S.W., Washington, DC. The purpose of this forum is to receive feedback
from bidders on the auctions process and their experiences. In addition,
bidders are encouraged to use this forum to present specific
recommendations for improving the operational components of the auctions
process. Among the general topics to be discussed are information
dissemination, application processing and payment, and the overall
conduct of the auction. Key FCC staff will be available to answer
questions. Interested parties must call (888) 225-5322 (press #2 at the
prompt) or 717-338-2888 to register.

\* \* \* \* \*

**For further information, contact:**

News Media: Meribeth McCarrick at 202-418-0654

Technical Support Hotline: Technical Support Personnel

at 202-414-1250 (V)

or 202-414-1255 (text telephone (TTY))

Office of the Managing Director Shirley Hanberry or Gail Glasser

(Payment, FCC Form 159 and refund at 202-418-1995

questions)

Wireless Telecommunications Bureau, Paul Noone or Scott Mackoul

Commercial Wireless Division at 202-418-7240

(FCC Form 601and 602 questions)

Wireless Telecommunications Bureau, Bob Reagle, Auctions Analysis,

Auctions and Industry Analysis Division at 717-338-2807; Ruby Hough,

(Auction-related questions) Operations, at 202-418-0660;

Anne Napoli, Legal Branch

at 202-418-0660

**- FCC -**

[^1]: ^?^ In the event a bidder has withdrawn a bid(s) and is subject to
    a bid withdrawal payment(s), the bidder\'s upfront payment will be
    first applied to satisfy the withdrawal payment(s) before being
    applied toward its down payment.

[^2]: ^?^ Copies of the FCC Form 159 may be obtained by calling the
    Commission\'s Forms Distribution Center at 1-800-418-3676 (outside
    Washington, D.C.) or 202-418-3676 (in the Washington area). Copies
    of the FCC Form 159 can also be obtained via the Internet
    (http://www.fcc.gov/formpage.html) or by Fax-On-Demand
    (202-418-2830).

[^3]: If, subsequent to final submission of its FCC Form 175, a bidder
    has provided the Commission with a written correction of its
    Taxpayer Identification Number, the bidder should use the corrected
    number.

[^4]: *See* "Phase II 220 MHz Service Auction Closes, Winning Bidders in
    the Auction of 908 Phase II 220 MHz Service Licenses," *Public
    Notice*, 14 FCC Rcd 605 (1999).

[^5]: 47 C.F.R. § 1.2107(c).

[^6]: ^?^ "Phase II 220 MHz Service Spectrum Auction; Notice and Filing
    Requirements for Auction of Phase II 220 MHz Service Spectrum
    Scheduled for June 8, 1999; Minimum Opening Bids and Other
    Procedural Issues," *Public Notice*, DA 99-474 (rel. March 8, 1999).

[^7]: ^?^ *See id*. at 5-6.