October 31, 2006

DA 06-2171

**[Via Certified Mail, Return Receipt Requested]{.underline}**

Progeny LMS, LLC

Attn: Michael McMains

9000 Guaranty Building, 20

North Meridian Street

Indianapolis, IN 46204

**Re: Final Bid Withdrawal Payment For Auction No. 21**

Dear Mr. McMains:

Progeny LMS, LLC ("Progeny"), a participant in Auction No. 21, withdrew
high bids on two licenses, BEA022B and BEA022C, in that auction. Auction
No. 39, the subsequent auction for the licenses on which Progeny
withdrew high bids, has closed. As shown on Attachment A, in accordance
with the Federal Communications Commission's ("Commission's") rules, we
are now able to calculate Progeny's final bid withdrawal payment
obligation.

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the difference between the amount of the withdrawn bid and the amount of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. If a high bid is withdrawn on a license that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the net amount of the withdrawn bid.[^1] This payment amount is deducted
from any upfront payments or down payments deposited for this bidder's
account with the Commission.[^2] 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withdrawn bid amount, then no final bid withdrawal payment will be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.[^3] If in a subsequent auction, the
winning bid for that license is less than the bidder's withdrawn amount,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equal to either the difference between the bidder's net withdrawn bid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bidder's gross withdrawn bid and the subsequent gross winning bid,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.[^4]

As shown in Attachment A, in accordance with Section 1.2104(g)(1), after
applying any interim bid withdrawal payments or amounts on deposit with
the Commission, Progeny has an outstanding balance of \$1,651.00.

Progeny is in debt to the United States in the amount of \$1,651.00,[^5]
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. Progeny, 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 per year for the failure to pay any part of
the debt more than 90 days past due.

**Ordering Clauses**

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(g) of the Commission's rules, 47 C.F.R. § 1.2104(g),
Progeny LMS, LLC is ASSESSED final bid withdrawal payments as computed
in Attachment A.

IT IS FURTHER ORDERED that, pursuant to 47 C.F.R. §§ 1.2104 and 1.2106,
Progeny's interim bid withdrawal payments or funds on deposit will be
applied towards the sum of the final bid withdrawal payments.

IT IS FURTHER ORDERED that Progeny's debt of \$1,651.00 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 after 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,

Rita Cookmeyer

Financial Policy Analyst

> Auctions and Spectrum Access Division
>
> Wireless Telecommunications Bureau

##  

## ATTACHMENT A

**Multi-Auction Bid Withdrawal Payment Report**

+----------+-----------+------------+------------+----------+----------+
| **L      | **Wi      | *          | **Re       | **Re     | **Final  |
| icense** | thdrawn** | *Withdrawn | -auction** | -auction | Bid      |
|          |           | Net Bid**  |            | Net      | Wi       |
| **       | **Gross   |            | **Gross    | Bid**    | thdrawal |
| Number** | Bid**     | *          | Bid**      |          | P        |
|          |           | *Auction** |            | **A      | ayment** |
| **F      | **        |            | *          | uction** |          |
| requency | Auction** | **\# 21**  | *Auction** |          |          |
| Block**  |           |            |            | **\#     |          |
|          | **\# 21** |            | **\# 39**  | 39**     |          |
+----------+-----------+------------+------------+----------+----------+
| BEA022B  | \         | \$1,625.00 | \$1,000.00 | \$650.00 | \$975.00 |
|          | $2,500.00 |            |            |          |          |
+----------+-----------+------------+------------+----------+----------+
| BEA022C  | \         | \$1,820.00 | \$1,600.00 | \$       | \$780.00 |
|          | $2,800.00 |            |            | 1,040.00 |          |
+----------+-----------+------------+------------+----------+----------+

## 

## 

## 

## 

  ----------------------------------------------- -----------------------
  Sum of Final Bid Withdrawal Payments            \$1,755.00

  Less Sum of Interim Bid Withdrawal Payments or  \$104.00
  Amounts on Deposit                              

  **Outstanding Balance Due on Final Bid          **\$1,651.00**
  Withdrawal Payments**                           
  ----------------------------------------------- -----------------------

## ATTACHMENT B

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: ("21")

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

LOCKBOX No.: 358850

A completed FCC Remittance Advice Form (FCC Form 159, Version 2/03) 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, Office of the Managing Director, Financial
Operations Center, Auctions Accounting Group, at (202) 418-0578.

[^1]: ^?^ Implementation of Section 309(j) of the Communications
    Act---Competitive Bidding, PP Docket No. 93-253, *Fifth Report and
    Order*, 9 FCC Rcd 5532, 5563 at n. 51 (1994); C.H. PCS, Inc., 11 FCC
    Rcd 14495 (1996) (requiring a three percent deposit).

[^2]: ^?^ 47 C.F.R. § 1.2106(d) and (e).

[^3]: ^?^ 47 C.F.R. § 1.2104(g)(1).

[^4]: ^?^ 47 C.F.R. § 1.2104(g)(1).

[^5]: *See* Attachments A and B.