**DA 02-805**

**April 15, 2002**

**[Via certified mail, return receipt requested]{.underline}**

Mr. Dennis C. Brown

DeltaCom, Inc.

1321 W. Eight Mile Rd.

Detroit, MI 48203

Mr. Michael L. Higgs

Brown and Schwaninger

1835 K Street, N.W., Suite 650

Washington, DC 20006

**Re: Final Bid Withdrawal Payment For Auction No. 18**

Dear Messrs. Brown and Higgs:

DeltaCom, Inc. ("DeltaCom"), a participant in Auction No. 18, withdrew a
high bid on license BEA 058D, Northern Michigan, Michigan in that
auction.[^1] Auction No. 24, the subsequent auction for the license on
which DeltaCom withdrew a high bid in Auction No. 18, has closed.[^2]
Therefore, in accordance with the Commission's rules, we are now able to
calculate DeltaCom's final bid withdrawal obligations.

Under the Commission's rules, a bidder 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the difference between the amount of the withdrawn bid and the amount of
the subsequent winning bid.[^3] If a high bid is withdrawn on a license
that remains unsold at the close of the auction, the withdrawing bidder
will be required to make an interim payment equal to three percent (3%)
of the net amount of the withdrawn bid.[^4] This payment amount is
deducted from any up-front payments or down payments deposited for this
bidder's account with the Commission.[^5] If, in a subsequent auction,
that license receives a winning bid in an amount equal to or greater
than the withdrawn bid amount, then no final bid withdrawal payment will
be assessed, and upon appropriate request, the Commission will refund
the interim three percent (3%) payment.[^6] If in a subsequent auction,
the winning bid for that license is less than the bidder's withdrawn bid
amount, then the bidder will be required to make a final bid withdrawal
payment equal to either the difference between the bidder's net
withdrawn bid and the subsequent net winning bid, or the difference
between the bidder's gross withdrawn bid and the subsequent gross
winning bid, whichever is less.[^7]

With respect to DeltaCom's bid withdrawal in Auction No. 18, the
Commission has previously deducted an interim bid withdrawal payment of
\$49.00 from the funds on deposit with the Commission because license
BEA 058D remained unsold at the end of the auction.[^8] As shown in
Attachment A, in Auction No. 24, the subsequent auction of license BEA
058D, the winning bid amount of \$325.00 for the license was less than
DeltaCom's withdrawn bid amount of \$1,625.00.[^9] In accordance with
Section 1.2104 of the Commission's rules,[^10] DeltaCom owes a final bid
withdrawal payment of \$1,300.00 in connection with license BEA 058D.
After applying the interim bid withdrawal payment of \$49.00, DeltaCom
owes an outstanding balance of \$1,251.00.[^11]

DeltaCom is in debt to the United States in the amount of \$1,251.00,
payable in full, immediately, and without further demand. As permitted
under 31 U.S.C. § 3717, the debt is subject to interest, penalties, and
administrative costs, and interest accrues from the date of this letter,
which is also its mailing date. DeltaCom, the debtor, may avoid payment
of the interest if it tenders to the Commission full payment within 30
days of the date of the letter. Moreover, the debt is subject to an
additional charge to cover the cost of processing and handling of
delinquent debts, and a penalty charge in the amount permitted by law.
The penalty charge for delinquent debt payments permitted by 31 U.S.C. §
3717 currently is 6 percent a year for the failure to pay any part of
the debt more than 90 days past due.

### [Ordering Clauses]{.underline}

Accordingly, IT IS ORDERED that, pursuant to Sections 4(i) and 309 of
the Communications Act of 1934 as amended, 47 U.S.C. §§ 154(i), 309, and
Section 1.2104 of the Commission's Rules, 47 C.F.R. § 1.2104(g),
DeltaCom IS ASSESSED a final withdrawal payment of \$1,300.00 as a
result of DeltaCom's withdrawal of its bid on license BEA 058D, as
computed in Attachment A.

IT IS FURTHER ORDERED, that, pursuant to 47 C.F.R. §§ 1.2104 and 1.2106,
DeltaCom's interim bid withdrawal payment of \$49.00 will be applied
towards the final withdrawal payment for license BEA 058D, leaving
DeltaCom with a debt to the Commission of \$1,251.00.

It is FURTHER ORDERED that DeltaCom's debt of \$1,251.00 be paid
immediately, in accordance with the payment instructions in Attachment B
within 30 days of the date of this letter, and if it is unpaid 30 days
of the date of this letter, interest will accrue from the date of this
letter along with penalties and administrative costs permitted by 31
U.S.C. § 3717.

It is FURTHER ORDERED that this letter shall be sent to the applicant
and its representatives by certified mail, return receipt requested.
This action is taken pursuant to authority delegated by Section 0.331 of
the Commission's rules, 47 C.F.R. § 0.331.

Sincerely,

Kelly Quinn, Deputy Chief

> Auctions and Industry Analysis Division
>
> Wireless Telecommunications Bureau

cc: John L. Zimmerman

President

DeltaCom, Inc.

1321 W. Eight Mile Rd.

Detroit, MI 48203

DA 02-805

## ATTACHMENT A

Phase II 220 MHz Service Spectrum License Auction

**Multi-Auction Bid Withdrawal Payment Report**

+----+-----+-------+-------+------+-------+--------+--------+-----+
| L  | Mar | AU    | AU    | AUC  | AU    | Final  | Delt   | To  |
| ic | ket | CTION | CTION | TION | CTION | Bid    | aCom's | tal |
| en | De  | 18,   | 18,   | 24,  | 24,   | With   | I      | Amo |
| se | scr |       |       |      |       | drawal | nterim | unt |
| Nu | ipt | Delta | Delta | Wa   | W     | P      | With   | Due |
| mb | ion | Com's | Com's | rren | arren | ayment | drawal |     |
| er |     | With  | With  | C.   | C.    |        | P      |     |
|    |     | drawn | drawn |      | Hav   | (Diff  | ayment |     |
|    |     |       | Net   | Have | ens's | erence | (3% of |     |
|    |     | Gross | Bid   | ns's |       | b      | wit    |     |
|    |     | Bid   | A     |      | Net   | etween | hdrawn |     |
|    |     | A     | mount | G    | Wi    | the    | net    |     |
|    |     | mount |       | ross | nning | A      | bid)   |     |
|    |     |       |       | Bid  | Bid   | uction |        |     |
|    |     |       |       |      | A     | 18 and |        |     |
|    |     |       |       | Am   | mount | A      |        |     |
|    |     |       |       | ount |       | uction |        |     |
|    |     |       |       |      |       | 24 Net |        |     |
|    |     |       |       |      |       | Bids)  |        |     |
+----+-----+-------+-------+------+-------+--------+--------+-----+
| B  | No  | \$2,5 | \$1,6 | \$50 | \$3   | \$1,   | \      | \   |
| EA | rth | 00.00 | 25.00 | 0.00 | 25.00 | 300.00 | $49.00 | $1, |
| 05 | ern |       |       |      |       |        |        | 251 |
| 8D | Mic |       |       |      |       |        |        | .00 |
|    | hig |       |       |      |       |        |        |     |
|    | an, |       |       |      |       |        |        |     |
|    | MI  |       |       |      |       |        |        |     |
+----+-----+-------+-------+------+-------+--------+--------+-----+

**[ATTACHMENT B]{.underline}**

The following information is being provided to assist you in making your
payment.

**PAYMENT INSTRUCTIONS**

All payments must be made in U.S. currency in the form of a wire
transfer. No personal checks, cashier's checks or other forms of payment
will be accepted. Wire transfer payments must be received by Mellon Bank
by 6:00 PM Eastern Time, no later than thirty days from the date of the
ORDER; however, if the 30th day falls on a non-business day, e.g.,
Saturday, Sunday or holiday, it is due the next business day. Applicants
must allow sufficient time for the wire transfer to be initiated and for
the transmission to be completed prior to the deadline. To submit funds
by wire, applicants will need the following information to properly
effect the transmittal:

ABA Routing Number: 043000261

Receiving Bank: Mellon Pittsburgh

BNF: FCC/Account #911-6106

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

"AUCTIONPAY"

FCC REGISTRATION NO. (FRN) (same as FCC Form 159, Block 11 and/or 21)

PAYMENT TYPE CODE (enter "APEN") same as FCC Form 159, Block 24A

FCC CODE 1 (same as FCC Form 159, Block 28A: ("18")

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

LOCKBOX No.: 358850

A completed FCC Remittance Advice Form (FCC Form 159, Version 2/00) must
accompany payments. On the same business day that the applicant submits
payment to Mellon Bank, the applicant must submit a completed FCC Form
159 via facsimile at (412) 209-6045, at least one-hour prior to placing
the order for the wire transfer. The specified debt is due and payable
to the United States immediately and without demand, and it is subject
to interest, penalties, and additional administrative costs. Interest
accrues from the date of the ORDER; however, to avoid the payment of
charges (i.e., interest, penalties, and administrative costs) and
enforced collection, full payment must be made and received within 30
days from the date of the ORDER. Debtor's failure to make complete
timely payment will result in assessment of such charges permitted by 31
U.S.C. § 3717.

For questions regarding the submission of payment, and the FCC Form 159,
contact Gail Glasser or Tim Dates, Office of the Managing Director,
Financial Operations Center, Auctions Accounting Group, at (202)
418-0578 or (202) 418-0496.

[^1]: Phase II 220 MHz Service Auction Closes: Winning Bidders In the
    Auction of 908 Phase II 220 MHz Service Licenses, Report No.
    AUC-18-F (Auction No. 18), *Public Notice*, 14 FCC Rcd 605,
    Attachment A (1998) ("*Auction No. 18 Winning Bidders Public
    Notice*").

[^2]: Phase II 220 MHz Service Auction Closes: Winning Bidders In the
    Auction of 225 Licenses in the Phase II 220 MHz Service, Report No.
    AUC-24-E (Auction No. 24), *Public Notice*, 14 FCC Rcd 11218 (1999)
    ("*Auction No. 24 Winning Bidders Public Notice*").

[^3]: 47 C.F.R. § 1.2104(g)(1) (1998).

[^4]: 47 C.F.R. § 1.2104(g)(1); *Auction No. 18 Winning Bidders' Public
    Notice,* 14 FCC Rcd at 608 and Attachment C (identifies bidders that
    withdrew bids in Auction No. 18 and states the interim three percent
    bid withdrawal payment).

[^5]: *See* 47 C.F.R. § 1.2106(e) (1998); *Auction No. 18 Winning
    Bidders' Public Notice*, 14 FCC Rcd at 608.

[^6]: 47 C.F.R. § 1.2104(g)(1) (1998).

[^7]: *Id.*

[^8]: *See Auction No. 18 Winning Bidders' Public Notice*, 14 FCC Rcd at
    Attachment C, 659. In Attachment C, the Commission set forth the
    amount of DeltaCom's interim bid withdrawal payment, \$49.00, and
    explained that the interim bid withdrawal payment was based on three
    percent (3%) of the net withdrawn bid on license BTA058D (\$1,625 x
    3%= \$49.00).

[^9]: *See* Attachment A to this letter (calculates the final bid
    withdrawal payment).

[^10]: 47 C.F.R. § 1.2104(g)(1).

[^11]: *Id.* To make the final bid withdrawal payment, DeltaCom must
    submit payment in accordance with the instructions set forth in
    Attachment B.