**DA 01-258**

February 2, 2001

**AUCTION OF LICENSES FOR**

**700 MHz GUARD BANDS**

**5 Qualified Bidders**

Report No. AUC-38-E (Auction No. 38)

In this *Public Notice,* the Federal Communications Commission ("FCC" or
"Commission") identifies 5 applicants found to be qualified to bid for
the 8 licenses in the 700 MHz Guard Bands spectrum auction ("Auction No.
38"). Auction No. 38 is scheduled to begin on Tuesday, February 13,
2001. In addition, this *Public Notice* contains bidding instructions
and other important information regarding Auction No. 38.

**Attachment A** lists each of the 5 qualified bidders, their upfront
payments, and maximum eligibility in bidding units.

**Attachment B** lists the licenses selected on each qualified bidder's
FCC Form 175.

**Attachment C** contains software downloading/installation instructions
for participation in the mock auction.

**Attachment D** provides information on "How to Monitor the FCC Auction
On-line," and round results file formats for use during the auction.

**Attachment E** provides information on accessing the FCC network using
Windows 95/98.

In order to participate effectively in the auction, qualified bidders
should again familiarize themselves with the auction rules and other
information contained in the *Auction No. 38 Procedures Public
Notice*.[^1] This *Public Notice*, and other documents related to
Auction No. 38, are available on the Commission's website,.
[[http://www.fcc.gov/wtb/auctions]{.underline}](http://www.fcc.gov/wtb/auctions).
The following information provides additional guidance.

***Registration**.* Qualified bidders have been automatically registered
for the auction. For security reasons, the Commission will confirm
registration through two separate mailings of registration materials.
Both mailings will be sent to the bidder's contact person at the contact
address identified in the bidder\'s FCC Form 175. Each mailing will
include confidential bidding codes. The second mailing will also include
remote bidding system software, if ordered. Upon receipt of both
mailings, each bidder should be in possession of the following
information:

-   FCC Account Number (as assigned by FCC)

-   Bidder Identification Number

-   Login ID

-   Login Password

-   Remote bidding system software and instruction booklet, (if
    purchased)

-   FCC Bidder Line Telephone Number

Qualified bidders are solely responsible for ensuring the security of
their computer systems, the security of their bidding codes, and that
only authorized bidders place bids on their behalf. The FCC assumes no
responsibility or liability for these matters.

WARNING: Any unauthorized entity accessing or tampering with an FCC or
other government computer will be prosecuted to the full extent of the
law.

Any qualified bidder listed in Attachment A of this *Public Notice* that
has not received both registration mailings **by noon on Thursday,
February 8, 2001**, must contact the Auctions Hotline directly at (717)
338-2888. It is the responsibility of each qualified bidder to ensure
that all registration information has been received.

**Note:** The bidding software included in the second registration
mailing is not the same software used in the mock auction, and is
specifically designed only for use in the actual auction event.
Qualified bidders may download the mock auction software, as discussed
below.

***Bidding Code Replacement**.* Lost Login IDs, Login Passwords, and
Bidder Identification Numbers can only be replaced at FCC Auction
Headquarters, located at 445 12^th^ Street, S.W., Washington, D.C. If
replacement is necessary, the authorized representative should
immediately contact the technical support hotline to arrange for the
generation of replacement bidding codes. Either an authorized
representative or the certifying official, as designated on the
applicant\'s FCC Form 175, must appear in person with two forms of
identification, at least one of which must be a photo ID.

***Electronic Bidding Software**.* Only qualified bidders that have
purchased the Commission\'s electronic bidding software will be
permitted to bid electronically. The FCC Remote Bidding Software will
not accept electronic bids from qualified bidders that have not
purchased the bidding software. The software has been updated for
Auction No. 38; therefore, **software from previous auctions will not
work for this auction**. For backup purposes, bidders are advised to
duplicate the electronic bidding software for use by each of its
authorized bidders at different locations.

The FCC Remote Bidding System requires access to a 900 service telephone
line. Bidders should verify in advance that the telephone systems they
will be using to submit electronic bids permit access to 900 service
telephone numbers, and should consult their telephone administrators if
they need assistance.

***Bidding Contingency Plan**.* Bidders should develop comprehensive
contingency plans that can be quickly implemented if bidders experience
difficulty participating in the auction. While the FCC will correct any
problems within Commission‑controlled facilities, bidders are solely
responsible for anticipating and overcoming problems such as bidder
technical failures, local telephone service interruptions, adverse local
weather conditions, unavailability of authorized bidders, or the loss or
breach of confidential security codes.

In their registration materials, all qualified bidders will be supplied
with a telephone number for telephonic bidding. Bidders choosing not to
bid electronically are required to use this telephone number to place
bids. Electronic bidders may use this telephone number as an alternate
method of bidding in the event they are unable to submit their bids
electronically.

***Minimum Opening Bids**.* There will be a minimum opening bid for each
license in Auction No. 38, calculated in accordance with the formulas
previously announced.[^2] The minimum opening bid amount is subject to
reduction at the discretion of the Commission. However, bidders should
be aware that the Commission will not entertain requests to lower
minimum opening bids. The agency will exercise its discretion, if at
all, independent of any communications from bidders.

***Messages and Announcements**.* The FCC will post pertinent auction
information as messages and announcements on the FCC Remote Bidding
System and on its Internet site. Bidders should routinely check for
messages and announcements each time they enter the Remote Bidding
System, and should read this information carefully.

***Bidding Schedule**.* The bidding schedule for Tuesday, February 13,
2001, and continuing until further notice, will be:

  ----------------------------- --------------- ----- --------------------
  Bidding Period                9:00 a.m.       \-    9:20 a.m. ET

  Round Results                 9:20 a.m.       \-    9:35 a.m. ET

                                                      

  Bidding Period                10:30 a.m.      \-    10:50 a.m. ET

  Round Results                 10:50 a.m.      \-    11:05 a.m. ET

                                                      

  Round Period                  12:00 p.m.      \-    12:20 p.m. ET

  Round Results                 12:20 p.m.      \-    12:35 p.m. ET

                                                      

  Round Period                  1:30 p.m.       \-    1:50 p.m. ET

  Round Results                 1:50 p.m.       \-    2:05 p.m. ET

                                                      

  Round Period                  3:00 p.m.       \-    3:20 p.m. ET

  Round Results                 3:20 p.m.       \-    3:35 p.m. ET

                                                      

  Round Period                  4:30 p.m.       \-    4:50 p.m. ET

  Round Results                 4:50 p.m.       \-    5:05 p.m. ET
  ----------------------------- --------------- ----- --------------------

The FCC will set the pace of the auction based upon its monitoring of
the bidding and its assessment of the auction\'s progress. All schedule
changes will be made by announcement during the course of the auction.

***Bidder Questions during the Auction.*** FCC auction officials and
technical support staff will be available during the course of the
auction to answer questions from authorized bidders. Bidders should
identify themselves as a bidder with time sensitive auction questions
when calling any number. Help can be obtained through the following
telephone numbers:

+-----------------------------------+-----------------------------------+
| FCC Bidder Line                   | Use telephonic bid number         |
|                                   | supplied in registration mailing  |
| (telephonic bidding, auction      |                                   |
| conduct questions)                |                                   |
+-----------------------------------+-----------------------------------+
| FCC Technical Support Hotline     | \(202\) 414-1250                  |
|                                   |                                   |
| (all technical questions,         |                                   |
| software and hardware)            |                                   |
+-----------------------------------+-----------------------------------+
| FCC Auctions Division (legal      | \(202\) 418-0660                  |
| questions)                        |                                   |
+-----------------------------------+-----------------------------------+

***Monitoring Round Results.*** Attachment D (How to Monitor the FCC
Auction On-Line) of this *Public Notice* provides instructions for
reviewing and downloading round results, as well as other material
related to Auction No. 38, released by the Commission during the course
of the auction.

***Auction Tracking Tool (ATT).*** The FCC has developed a tool for
tracking the results of its auctions. The ATT is a stand-alone
application, which runs on Windows 95-98 and NT operating systems and
does not require any other software, although some advanced features
require Microsoft Excel 97. The tool will allow users to import round
result files and analyze bidding results after each round of the
auction. For installation and user instructions, see the README file,
the ATT User Manual, or the on-line help system that accompanies the
ATT.

The ATT version specifically designed for Auction No. 38 will be
available for downloading at noon on Thursday, February 8, 2001 and
should be used in both the mock auction and the actual auction. Also, a
sample version of the tool from a previous auction is currently
available for those individuals wishing to familiarize themselves with
the ATT before the auction. Both versions are located at the auctions
web site, <http://www.fcc.gov/wtb/auctions>. Under the "Auctions"
section on the right, select **700 MHz Guard** **Band** **(#38)**, and
from the menu select **Auction Tracking Tool** or **Sample Auction
Tracking Tool**, as appropriate*.*

The ATT, provided to bidders free of charge, is an additional means of
analyzing the auction round results. Bidders should have a back up
strategy in place, which may be quickly implemented, should they
experience technical difficulties with the ATT.

> **User Requirements.** This software is designed to be used by a wide
> range of users. For most effective use of the tool, users should be
> familiar with:

-   Microsoft Windows 95/98 or NT

-   Microsoft Excel 97

-   The FCC simultaneous multiple round auction format

> **Software and Hardware Requirements.** At a minimum, you will need
> the following:

-   Microsoft Windows 95/98 or NT.

-   Up to 40-50 MB of available hard disk space. For the application
    itself, only 2-3 MB will be necessary, but the auction database can
    grow quite large.

-   16 MB RAM and Pentium based processor are required with 32 MB RAM
    and a Pentium 166 or higher strongly recommended.

-   Some advanced features of the tool will require Microsoft Excel 97,
    but the majority of the tool\'s features can be used without Excel.

***Amendments to FCC Form 175s**.* Applicants are responsible for
maintaining the accuracy and completeness of information furnished in
their FCC Form 175 and exhibits.[^3] It is the staff\'s position that
applicants should amend their applications within ten business days from
the occurrence of a reportable change. Filers should make modifications
to their FCC Form 175 electronically, and submit a letter briefly
summarizing the changes to:

Louis Sigalos

Deputy Chief, Auctions and Industry Analysis Division

Wireless Telecommunications Bureau

Federal Communications Commission

Room 4-A668

445 12^th^ Street, SW

Washington, DC 20554

A courtesy copy should also be sent to Howard Davenport, at the same
address, Room 4-A435. As described in the Commission\'s rules,
applicants may make only minor corrections to their FCC Form 175
applications (e.g., authorized bidder, fax number).[^4] Major
modifications (*e.g.*, changing the markets applied for, changing
control of the applicant, changing the certifying official) will not be
accepted.[^5]

***Due Diligence.*** Bidders are reminded that they should continue to
conduct due diligence examinations regarding incumbents and other legal
developments with respect to the licenses for which they may bid during
the course of the auction.[^6]

***Mock Auction**.* The FCC will conduct a mock auction on Friday,
February 9, 2001, to allow qualified bidders to familiarize themselves
with the electronic bidding software. Only qualified bidders will be
permitted to participate in the mock auction. As in the actual auction,
telephonic bidding will be available during the mock auction. Qualified
bidders that wish to place bids telephonically, should use the telephone
number supplied in the Auction No. 38 registration materials.
Pre-registration is not required to participate in the mock auction.

The mock auction will include all Auction No. 38 licenses, and will
follow the rules governing the actual auction. The mock auction will be
identified as Auction No. 74. The program will assume that each bidder
applied for all 8 licenses. The program will also assume that each
bidder submitted upfront payments of \$161,000, which corresponds to
161,000 bidding units. The mock auction will simulate the start of the
auction and all bidders will be required to be active on 100 percent of
their bidding units, or risk having a waiver automatically applied. If
there are no activity rule waivers available, the bidder's eligibility
will be reduced, eliminating them from the auction.

Electronic bidders participating in the mock auction are advised to
review the software manual provided in the first mailing. For
installation instructions, please refer to Attachment C of this *Public
Notice*.

The mock auction bidding schedule for Friday, February 9, 2001 will be:

  ---------------- --------------------------------------------------------
  [Round           
  1]{.underline}   

  Bidding Period   9:00 a.m. ‑ 9:20 a.m. ET

  Round Results    9:20 a.m. ‑ 9:35 a.m. ET

                   

  [Round           
  2]{.underline}   

  Bidding Period   11:00 a.m. ‑ 11:20 a.m. ET

  Round Results    11:20 a.m. ‑ 11:35 a.m. ET

                   

  [Round           
  3]{.underline}   

  Bidding Period   1:00 p.m. ‑ 1:20 p.m. ET

  Round Results    1:20 p.m. ‑ 1:35 p.m. ET

                   

  [Round           
  4]{.underline}   

  Bidding Period   3:00 p.m. ‑ 3:20 p.m. ET

  Round Results    3:20 p.m. ‑ 3:35 p.m. ET
  ---------------- --------------------------------------------------------

Auction No. 38 bidders who wish to participate in the mock auction using
electronic bidding must establish a Point-to-Point Protocol (PPP)
connection to the FCC Auction Network through either an 800 or a 900
number, as selected through the mock auction software. (The FCC strongly
encourages participants to test their ability to connect using the 900
number, in order to identify any potential problems such as a 900-number
telephone block. There will be no access charge for the first minute of
the 900-number connection time.)

When participants establish the PPP connection and start the Mock
Bidding System, they will register for the mock auction by entering
their FCC Account Number. The Login Name, Login Password, and Bidder
Identification Number (BINs) will be pre-filled. Note: Pre-filled codes
are used for the mock auction only. For the actual auction, bidders must
enter the confidential bidding codes supplied in the overnight mailings
in order to access the bidding software.

Remote bidding software for the mock auction will be available via the
FCC\'s Internet System by noon on Thursday, February 8, 2001. *See*
Attachment C for downloading/installation instructions. This software is
specifically designed for this simulation, and is not adaptable to any
other FCC spectrum auction. As part of the software, the Commission has
established a suggestion box and welcomes your comments regarding the
software.

**OTHER IMPORTANT INFORMATION**

***Prohibition of Collusion*.** Bidders are reminded that Section
1.2105(c) of the Commission\'s Rules prohibits applicants for the same
geographic license area 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). For Auction No. 38, this
prohibition became effective at the filing deadline of short-form
applications on Friday, January 12, 2001, and will end on the
post-auction down payment deadline. The post-auction down payment
deadline will be announced in a future public notice. If parties had
agreed in principle on all material terms, those parties must have been
identified on the short-form application under Section 1.2105(c), even
if the agreement had not been reduced to writing. If parties had not
agreed in principle by the filing deadline, an applicant should not have
included the names of those parties on its application, and must not
have continued negotiations with other applicants for licenses in the
same geographic area.[^7] For further details regarding the prohibition
against collusion refer to the *Auction No. 38 Procedures Public
Notice*.[^8]

Winning bidders will be required to disclose in their long-form
applications the specific terms, conditions, and parties involved in all
bidding consortia, joint ventures, partnerships, and other arrangements
entered into relating to the competitive bidding process. Bidders found
to have violated the anti-collusion rule may be subject to
sanctions.[^9] In addition, applicants are reminded that they are
subject to the antitrust laws, which are designed to prevent
anti-competitive behavior in the marketplace. If a bidder is found to
have violated the antitrust laws in connection with its participation in
the competitive bidding process, it may be subject to forfeiture of its
upfront payment, down payment, or full bid amount and may be prohibited
from participating in future auctions.[^10]

***Long-Form Applications.*** Applicants that claim status as a small or
very small business should be aware that at the long-form application
stage, they will be subject to more extensive reporting requirements
contained in the Commission\'s Part 1 ownership disclosure rule.[^11] In
addition, applicants with foreign ownership interests will be required
to comply with 47 U.S.C. Section 310(b) at the long-form application
stage.

For additional information regarding this *Public Notice*, please
contact Linda Sanderson, Auctions Project Manager at (717) 338-2888,
Lyle Ishida, Auctions Analyst, or Howard Davenport, Auctions Attorney,
at (202) 418-0660. Questions about software or hardware should be
directed to Technical Support at (202) 414-1250.

[- FCC -]{.smallcaps}

[^1]: *See* "Auction of Licenses for the 700 MHz Guard Bands Scheduled
    for February 13, 2001; Auction Notice and Filing Requirements for 8
    Licenses in the 700 MHz Guard Bands; Minimum Opening Bids, and Other
    Procedural Issues," *Public Notice*, DA 00-2571 (rel. November 14,
    2000) 65 Fed. Reg. 83024 ("*Auction No. 38 Procedures Public
    Notice*").

[^2]: *See Auction No. 38 Procedures Public Notice* at 25. For
    information on the minimum opening bid for each of the licenses
    offered in Auction No. 38, *see* *Auction No. 38 Procedures Public
    Notice*, Attachment A.

[^3]: *See* 47 C.F.R § 1.65.

[^4]: *See* 47 C.F.R. § 1.2105(b).

[^5]: *Id*.

[^6]: *See Auction No. 38 Procedures Public Notice* at 8-9; *see also*
    "Auction of Licenses for 700 MHz Guard Bands; Status of FCC Form 175
    Applications to Participate in the Auction," *Public Notice*, DA
    01-138 (released January 19, 2001) (*"Auction No. 38 Status Public
    Notice"*).

[^7]: "Wireless Telecommunications Bureau Clarifies Spectrum Auction
    Anti-Collusion Rules," *Public Notice*, DA 95-2244 (rel. October 26,
    1995), 11 FCC Rcd 9645 (1995).

[^8]: *See* *Auction No. 38 Procedures Public Notice* at 6-7.

[^9]: *See* 47 C.F.R. §§ 1.2105(c), 1.2107(d), and 1.2109(d).

[^10]: *See* 47 C.F.R. §1.2109 (d).

[^11]: *See* 47 C.F.R. § 1.2112(b).