DA 08-2482

November 14, 2008

**Auction of LPTV and TV Translator Digital Companion Channels Closes**

**Winning Bidders Announced for Auction 85**

**Down Payments** **Due December 1, 2008**

**Final Payments** **Due December 15, 2008**

**FCC Forms 301-CA or 346 Due December 15, 2008**

**Fifteen-Day Petition to Deny Period**

Report No. AUC-08-85-J (Auction 85)

# INTRODUCTION

1.  On November 10, 2008, the Federal Communications Commission
    completed the auction of 43 construction permits for specified Low
    Power Television (LPTV), including Class A Television (TV), and TV
    Translator digital companion channels. The auction, designated
    Auction 85, raised (in net bids) a total of \$134,725, with 19
    winning bidders winning a total of 30 construction permits.

# aUCTION RESULTS

2.  This Public Notice provides detailed information concerning winning
    bidders, down payments, final payments and/or refunds, long-form
    application (FCC Forms 301-CA or 346) filing requirements, requests
    for rule waivers, and licensing matters. Key information appears in
    the following attachments:

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

> **Attachment B:** "Bidder Payment/Refund" lists down payments and
> final payments owed by winning bidders and refunds due, if any.[^1]
>
> **Attachment C:** Lists case file numbers to be used by winning
> bidders when filing long-form applications.

A copy of this Public Notice will be sent via overnight delivery to each
qualified bidder.

# POST-AUCTION PROCEDURES

## Down Payments

3.  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.
    Eastern Time (ET) on December 1, 2008**, winning bidders in Auction
    85 must have on deposit with the Commission enough funds to cover
    the down payments on winning bids.[^2] Specifically, each winning
    bidder's total deposit must be twenty percent of the net amount of
    its winning bids. If a winning bidder's upfront payment is not
    sufficient to meet this requirement, the winning bidder must deposit
    additional funds to meet its required down payment.[^3]

4.  The amount now due from each winning bidder, if any, is set out in
    the "Additional Amount Due after Upfront Payment Balance Applied Due
    by December 1, 2008" column of Attachment B. Note that a payment and
    FCC Remittance Advice Form (FCC Form 159) are necessary only if a
    winning bidder's upfront payment does not cover the required total
    down payment (as reflected in Attachment B).

## Final Payments

5.  Each winning bidder will be required to submit the balance of the
    net amount of its winning bids by **6:00 p.m. ET on December 15,
    2008**,[^4] as set out in the "Final Balance Due By December 15,
    2008 or (Refund)" column of Attachment B. All winning bidders must
    pay the full amount of the Final Balance Due shown in Attachment B
    by 6:00 p.m. ET on December 15, 2008 (or by 6:00 p.m. ET on December
    30, 2008, along with the five percent late fee required by Section
    1.2109(a) of the Commission's rules).[^5] Full and timely payment of
    winning bids and any applicable late fees must be made in accordance
    with Section 1.2109(a) of the Commission's rules and must occur
    before action will be taken upon a winning bidder's long-form
    applications (FCC Forms 301-CA or 346).[^6] Specifically, permits
    will be granted only after the full and timely payment of winning
    bids and any applicable late fees, in accordance with Section
    1.2109(a).[^7]

## Method of Payment for Down and Final Payments

6.  All payments must be in U.S. dollars and made in the form of a wire
    transfer.[^8] No personal checks, credit card payments, automated
    clearing house ("ACH"), or other forms of payment will be accepted.
    All payments must be accompanied by a completed FCC Form 159.[^9]

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

8.  To submit funds by wire transfer, winning bidders will need the
    following information:

> ABA Routing Number: **021030004**
>
> Receiving Bank: **TREAS NYC**
>
> 33 Liberty Street
>
> New York, NY 10045
>
> ACCOUNT NAME: **FCC**
>
> ACCOUNT NUMBER: **27000001**
>
> OBI Field: (Skip one space between each information item) "AUCTIONPAY"
>
> APPLICANT FRN: (same as FCC Form 159, block 21)
>
> PAYMENT TYPE CODE: (same as FCC Form 159, block 24A: "A85D")
>
> FCC CODE 1: (same as FCC Form 159, Block 28A: "85")
>
> PAYER NAME: (same as FCC Form 159, Block 2)

LOCKBOX NO.: \#**979085**

### Down Payment

9.  If applicable, a partially completed copy of the FCC Form 159 will
    be sent to winning bidders to facilitate submission of the correct
    down payment. Please note, however, that a winning bidder is
    responsible for ensuring timely submission of the correct down
    payment, for timely filing of an accurate and complete FCC Form 159,
    and for obtaining confirmation from its financial institution that
    the Commission has timely received the down payment and deposited it
    into the proper account.

10. Wire transfers for down payments must be received by the Commission
    by **6:00 p.m. ET on December 1, 2008**. A winning bidder should
    coordinate with its financial institution ahead of time regarding
    its wire transfer and allow sufficient time for the wire transfer to
    be initiated and completed prior to the deadline.

11. At least one hour before placing the order for the wire transfer
    (but on the same business day), winning bidders must fax the
    completed FCC Form 159 to U.S. Bank in St. Louis, Missouri, at (314)
    418-4232. Proper completion of the FCC Form 159 is critical to
    ensuring correct credit of bidder deposits. A winning bidder must
    use the same FCC Registration Number (FRN) used on its short-form
    application (FCC Form 175).

12. Failure to complete this down payment process by 6:00 p.m. ET on
    December 1, 2008, will result in default.[^10]

### Final Payment

13. If applicable, a partially completed copy of the FCC Form 159 will
    be sent to winning bidders to facilitate submission of the correct
    final payment. Please note, however, that a winning bidder is
    responsible for ensuring timely submission of the correct final
    payment, for timely filing of an accurate and complete FCC Form 159,
    and for obtaining confirmation from its financial institution that
    the Commission has timely received the final payment and deposited
    it into the proper account.

14. Wire transfers of final payments must be received by the Commission
    by **6:00 p.m. ET on December 15, 2008** (or by 6:00 p.m. ET on
    December 30, 2008, along with the five percent late fee required by
    Section 1.2109(a) of the Commission's rules).[^11] A winning bidder
    should coordinate with its financial institution ahead of time
    regarding its wire transfer and allow sufficient time for the wire
    transfer to be initiated and completed prior to the deadline.

15. Payments must be preceded by the completed FCC Remittance Advice
    Form (FCC Form 159). The winning bidder must fax, at least one hour
    prior to placing the order for the wire transfer, but on the same
    business day that it pays the balance due to the Commission, a
    completed FCC Form 159 to U.S. Bank in St. Louis, Missouri, at (314)
    418-4232. On the FCC Form 159, the applicant must use the same FRN
    used on its short-form application (FCC Form 175).

16. Failure to complete the final payment by 6:00 p.m. ET on December
    15, 2008; or by 6:00 p.m. ET on December 30 2008, along with the
    five percent late fee, will result in default.[^12]

## Default and Disqualification Payments

17. The Commission imposes payment obligations on bidders that default
    on payments due after an auction closes and on those that are
    disqualified.[^13]

### Bid Default/Disqualification Payments from Auction 85

18. If a winning bidder 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), the defaulting bidder will be subject to the payment
    obligations described in Section 1.2104(g)(2).[^14] These payment
    obligations include both a deficiency payment, equal to the
    difference between the amount of the bidder's bid and the amount of
    the winning bid the next time a permit or license covering the same
    spectrum is won in an auction, plus an additional payment equal to a
    percent of the defaulter's bid or the subsequent winning bid,
    whichever is less.[^15] The additional default payment for Auction
    85 permits was set at twenty percent of the applicable bid.[^16]

19. If a winning bidder fails to remit the required down payment within
    ten business days after the Commission has released this Public
    Notice, in this case by December 1, 2008, the bidder will be deemed
    to have defaulted, its long-form application will be dismissed, and
    it will be liable for a default payment as described above.[^17]

20. If a winning bidder fails to pay the balance of its winning bid in a
    lump sum by the applicable deadline as specified by the Commission,
    it will be allowed to make a late payment within ten business days
    after the payment deadline, provided that it also pays a late fee
    equal to five percent of the amount due.[^18] If a winning bidder
    fails to pay (a) the balance of its winning bid by the payment
    deadline on December 15, 2008, or (b) the balance of its winning bid
    plus the late fee by the late payment deadline, on December 30,
    2008, it will be deemed to have defaulted, and it will be subject to
    applicable default payments.[^19]

21. Construction permits will be awarded upon completion of the review
    of each applicant's long-form application and a determination that
    the applicant's long-form application meets Commission requirements
    for grant, but only after the full and timely payment of winning
    bids and any applicable late fees.[^20] If a winning bidder defaults
    on any of its required payments or is disqualified for any reason
    after having made the required payments, it will be deemed to have
    defaulted, its application will be dismissed, and it will be liable
    for the payment set forth in Section 1.2104(g)(2).[^21]

22. Additionally, a bidder that is found to have violated the antitrust
    laws or the Commission's rules in connection with its participation
    in the competitive bidding process may be subject, in addition to
    any other applicable sanctions, to forfeiture of its upfront
    payment, down payment, or full bid amount, and may be prohibited
    from participating in future auctions.[^22]

## Refund of Excess Payments

23. Upfront monies on deposit that are in excess of an applicant's
    Auction 85 obligations may be refunded to the payer of record as
    identified on the FCC Form 159. To be eligible to receive a refund,
    an applicant must submit a refund request and provide wire transfer
    instructions. Applicants can provide this information by using the
    Commission's Integrated Spectrum Auction System ("ISAS") and
    clicking on the "See Wire Transfer for Refund Purposes" link under
    the Post-Auction section of the My Auctions web page by December
    1, 2008. After this date, applicants must send a request for refund
    along with the necessary wire transfer instructions and FRN by fax
    to Gail Glasser of the Office of the Managing Director at (202)
    418-2843. Any questions concerning refunds should be referred to
    Gail Glasser at (202) 418-0578.

## FCC Forms 301-CA or 346

24. Prior to **6:00 p.m. ET on December 15, 2008,** winning bidders must
    submit electronically a properly completed long-form application
    (FCC Forms 301-CA or 346, as appropriate), including required
    exhibits, for each digital companion channel construction permit for
    which they were the winning bidder in Auction 85.[^23]

25. Applicants must file accurate and complete long-form applications
    (FCC Forms 301-CA or 346) *electronically* through the Media
    Bureau's Consolidated Database System (CDBS) online electronic
    filing system.[^24] In accordance with the Commission's rules,
    information submitted on the new FCC Form 301-CA or 346 application
    by winning bidders must not constitute a major change from any
    information specified in the winning bidder\'s previously filed FCC
    Form 175 or from information on file in connection with the winning
    bidder's authorized LPTV or TV Translator station.[^25] Instructions
    for use of the Media Bureau\'s electronic filing system can be
    accessed from the electronic filing web site at
    http://www.fcc.gov/mb/cdbs.html.

26. When filing FCC Forms 301-CA or 346, applicants must select "Long
    Form Application for LPTV Auction 85" on the Pre-form and enter the
    relevant case file number from Attachment C. For assistance with
    electronic filing, call Hossein Hashemzadeh at 202-418-1600. An
    applicant that fails to submit the required long-form application
    before the specified deadline and fails to establish good cause for
    any late-filed submission shall be deemed to have defaulted and
    shall be subject to the payments set forth in Section 1.2104(g) of
    the Commission's rules.[^26]

## Additional Post-Auction Filing Requirements

27. Section 73.5005(a) of the Commission's rules[^27] requires that
    post-auction long-form applications include the exhibits mandated by
    Section 1.2107(d) (providing a detailed explanation of the terms,
    conditions, and parties involved in any bidding consortium, joint
    venture, partnership, or other agreement or arrangement the
    applicant had entered into relating to the competitive bidding
    process);[^28] Section 1.2110(j) (requiring an applicant claiming
    bidding credit eligibility to describe how it satisfies the
    eligibility requirements for such bidding credit, and to list and
    summarize all agreements that affect such status, such as
    partnership agreements, shareholder agreements, management
    agreements, and any other agreements, including oral agreements,
    that establish that the auction applicant will have both *de facto*
    and *de jure* control of the entity);[^29] and Section 1.2112(a)
    (requiring that each long-form application fully disclose ownership
    information and the real party or parties in interest in the
    applicant or application).[^30]

28. Applicants also are reminded that the Commission's "red light rule"
    implementing the Debt Collection Improvement Act will be
    enforced.[^31] Under the red light rule, the Commission will not
    process applications or other requests for benefits filed by parties
    that have outstanding debts owed to the Commission.[^32]

## Maintaining Accuracy of Information

29. After the auction closes, applicants are required to make all
    changes to their applications by filing FCC Forms 301-CA or
    346.[^33] With the release of this Public Notice, applicants are no
    longer required to maintain the accuracy and completeness of
    information furnished on their short-form applications and exhibits.

## Application Processing and Construction Permit Grant

30. After its initial review of the long-form applications, the Media
    Bureau will issue a public notice listing the applications that are
    acceptable for filing. Pursuant to Section 1.2108(b) and
    73.5006,[^34] of the Commission's rules, interested parties will
    have fifteen days from release of that public notice to file
    petitions to deny any of these applications.[^35] An applicant may
    file an opposition to any petition to deny within fifteen days after
    the filing deadline for petitions to deny.[^36] The petitioner may
    file a reply to such opposition within ten days after the filing
    deadline for oppositions.[^37] The Commission reminds all parties
    and their counsel that the Commission intends to use its authority
    fully to deter the filing of frivolous pleadings.[^38]

31. After the long-form review process, if the Commission determines
    that an applicant is otherwise qualified, that there are no
    substantial and material issues of fact, and that no additional
    payments are due, it will issue a public notice announcing grant of
    a construction permit to the applicant.[^39]

# OTHER IMPORTANT INFORMATION

## Maintaining Prohibition of Collusion

32. To ensure the competitiveness of the auction process, the
    Commission's rules prohibit competing applicants from communicating
    with each other about bids, bidding strategies, or settlements,
    unless such applicants have identified each other on their
    short-form applications as parties with whom they have entered into
    agreements under Section 1.2105(a)(2)(viii).[^40] For Auction 85,
    this prohibition began at the short-form application filing deadline
    of June 30, 2006, at 6:00 p.m. ET and continues until the down
    payment deadline, which is 6:00 p.m. ET on December 1, 2008.[^41]

33. The collusion prohibition applies to all applicants in Auction 85
    (unless they have identified each other on their short-form
    applications as parties with whom they have entered into agreements
    under Section 1.2105(a)(2)(viii)), regardless of whether an
    applicant became a qualified bidder or actually participated in the
    bidding, and the prohibition continues for all applicants until the
    down payment deadline regardless of whether a winning bidder needs
    to make an additional payment by the down payment deadline.[^42]
    Each applicant in this auction certified its compliance with 47
    C.F.R. § 1.2105(c) when its short-form application was filed.

## Return of SecurID^®^ Tokens

34. The SecurID^®^ tokens distributed to qualified bidders are tailored
    to this auction and will not work for future auctions. Bidders
    should return their SecurID^®^ tokens to the Commission for
    recycling. The Commission will send bidders, along with the copy of
    this Public Notice, a pre-addressed, stamped envelope to return the
    SecurID^®^ tokens. Bidders should return the tokens by December 1,
    2008.

## Contact Information

35. For further information, contact:

+-----------------------------------+----------------------------------+
| **News Media**                    | **Wireless Telecommunications    |
|                                   | Bureau**                         |
|                                   |                                  |
|                                   | Matt Nodine at (202) 418-1646    |
+-----------------------------------+----------------------------------+
| **Licensing Information**         | **Media Bureau, Video Division** |
|                                   |                                  |
| > Service Rules, Policies,        | Shaun Maher (legal) or           |
| > Regulations                     |                                  |
| >                                 | Hossein Hashemzadeh              |
| > Licensing Issues, Engineering   | (engineering) at                 |
| > Issues                          |                                  |
| >                                 | \(202\) 418-1600                 |
| > Due Diligence, Incumbency       |                                  |
| > Issues                          |                                  |
+-----------------------------------+----------------------------------+
| **Auction Payment Information**   | **FCC Auctions Accounting        |
|                                   | Branch**                         |
| > Wire Transfers                  |                                  |
| >                                 | Gail Glasser at (202) 418-0578,  |
| > Refunds                         | or                               |
|                                   |                                  |
|                                   | \(202\) 418-2843 (fax)           |
+-----------------------------------+----------------------------------+
| **Auction 85 Information**        | **Auctions and Spectrum Access   |
|                                   | Division**                       |
| > General Auction Information,    |                                  |
| > Process, and Procedures         | Linda Sanderson, Project         |
| >                                 | Manager, or                      |
| > Auction Rules, Policies, and    |                                  |
| > Regulations                     | Roy Knowles, Auction Analyst, at |
|                                   | (717) 338-2868 or (202) 418-0660 |
|                                   |                                  |
|                                   | Howard Davenport at (202)        |
|                                   | 418-0660                         |
+-----------------------------------+----------------------------------+
| **Accessible Formats**            | **Consumer and Governmental      |
|                                   | Affairs Bureau**                 |
| > Braille, large print,           |                                  |
| > electronic files, or            | \(202\) 418-0530, or (202)       |
| >                                 | 418-0432 (TTY)                   |
| > audio format for people with    |                                  |
| > disabilities                    | fcc504@fcc.gov                   |
+-----------------------------------+----------------------------------+
| **FCC Internet Sites**            | http://www.fcc.gov               |
|                                   |                                  |
|                                   | http://wireless.fcc.gov/auctions |
|                                   |                                  |
|                                   | http://www.fcc.gov/mb/cdbs.html  |
+-----------------------------------+----------------------------------+

**- FCC -**

[^1]: The amounts listed in Attachment B are based on upfront payments
    and winning bids.

[^2]: 47 C.F.R. § 1.2107(b).

[^3]: *Id*.

[^4]: 47 C.F.R. § 1.2109(a).

[^5]: *Id.*

[^6]: 47 C.F.R. § 1.2109. A winning bidder that is found unqualified to
    be a Commission permitee will be deemed to have defaulted, its
    application will be dismissed, and it will be liable for the payment
    set forth in Section 1.2104(g)(2) of the Commission's rules. *See*
    47 C.F.R. §§ 1.2104(g), 1.2109(c).

[^7]: 47 C.F.R. § 1.2109(a).

[^8]: The wire transfer must be initiated by the winning bidder through
    its bank, authorizing the bank to wire funds from the bidder's
    account to the Commission's account, which will receive payments for
    financial obligations resulting from Auction 85. Additional
    information on wire transfers is available on the Commission's web
    site at: http://www.fcc.gov/fees/wiretran.html.

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

[^10]: *See* Section III. D., "Default and Disqualification Payment,"
    below.

[^11]: 47 C.F.R. § 1.2109(a).

[^12]: Section III.D., "Default and Disqualification Payment," below.

[^13]: *See* 47 C.F.R. §§ 1.2104(g), 1.2109.

[^14]: 47 C.F.R. § 1.2104(g)(2).

[^15]: *Id*. *See also* Auction of LPTV and TV Translator Digital
    Companion Channels Scheduled for November 5, 2008; Notice and Filing
    Requirements, Minimum Opening Bids, Upfront Payments and Other
    Procedures for Auction 85, DA 08-1944, *Procedures* *Public Notice*,
    23 FCC Rcd 14,530, 14,554-55 ¶ 115-17 (*Auction 85* *Procedures
    Public Notice*).

[^16]: *Id.*

[^17]: 47 C.F.R. §§ 1.2104(g)(2), 1.2109(b).

[^18]: 47 C.F.R. § 1.2109(a).

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

[^20]: 47 C.F.R. § 1.2109(a).

[^21]: 47 C.F.R. §§ 1.2104(g)(2), 1.2109.

[^22]: 47 C.F.R. § 1.2109(d).

[^23]: *See* 47 C.F.R. § 73.5005(a).

[^24]: For information regarding electronic application filing, refer to
    "Mass Media Bureau Implements Mandatory Electronic Filing of FCC
    Forms 301, 314, and 315," *Public Notice*, 16 FCC Rcd 3989 (MMB
    2001).

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

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

[^27]: 47 C.F.R. § 73.5005(a). *See also* Instructions for Form 301,
    Application for Construction Permit for Commercial Broadcast
    Station, Instructions for Section II: Legal Information, paragraph
    G: Item 10: Auction Authorization for auction-related exhibit filing
    requirements.

[^28]: 47 C.F.R. § 1.2107(d).

[^29]: 47 C.F.R. § 1.2110(j).

[^30]: 47 C.F.R. § 1.2112(a).

[^31]: 47 C.F.R. § 1.1910.

[^32]: *Id.*; *see also* 47 C.F.R. § 1.2109(c) (post-auction defaults).

[^33]: *See* 47 C.F.R. § 1.65.

[^34]: 47 C.F.R. § 73.5006.

[^35]: 47 C.F.R. § 73.5006.

[^36]: *Id*.

[^37]: *Id*.

[^38]: *See* "Commission Taking Tough Measures Against Frivolous
    Pleadings," *Public Notice*, 11 FCC Rcd 3030 (1996).

[^39]: *See* 47 C.F.R. §§ 1.2108(d), 1.2109(a).

[^40]: 47 C.F.R. §§ 1.2105(a)(2)(viii), 1.2105(c)(1). *See also*
    Amendment of Part 1 of the Commission\'s Rules -- Competitive
    Bidding Procedures, WT Docket No. 97-82, *Seventh Report and Order*,
    16 FCC Rcd 17,546 (2001); *Order on Reconsideration of the Third
    Report and Order, Fifth Report and Order, and Fourth Further Notice
    of Proposed Rule Making*, 15 FCC Rcd 15,293, 15,297-98 ¶¶ 7-8
    (2000).

[^41]: *See also Auction 85 Procedures Public Notice*, 23 FCC Rcd at
    14,534-38 ¶¶ 8-18.

[^42]: *Id*.