**DA 00-292**

**February 18, 2000**

**AUCTION OF LICENSES IN THE**

**747--762 AND 777--792 MHz BANDS**

**Auction Notice and Filing Requirements**

**for 12 Licenses in the 700 MHz Bands**

**Auction Scheduled for May 10, 2000**

**Minimum Opening Bids and Other Procedural Issues**

**Report No. AUC-00-31-C (Auction No. 31 )**

I. General Information [4](#general-information)

A. Introduction [4](#introduction)

1\. Background of Proceeding [4](#background-of-proceeding)

2\. Licenses to Be Auctioned [5](#licenses-to-be-auctioned)

B. Rules and Disclaimers [5](#rules-and-disclaimers)

1\. Relevant Authority [5](#relevant-authority)

2\. Prohibition of Collusion [6](#prohibition-of-collusion)

3\. Protection of Television Services
[7](#protection-of-television-services)

4\. Due Diligence [8](#due-diligence)

5\. Bidder Alerts 10

6\. National Environmental Policy Act (NEPA) Requirements...............
11

C. Auction Specifics [11](#auction-specifics)

1\. Auction Date [11](#auction-date)

2\. Auction Title [11](#auction-title)

3\. Bidding Methodology [12](#bidding-methodology)

4\. Pre-Auction Dates and Deadlines
[12](#pre-auction-dates-and-deadlines)

5\. Requirements for Participation 12

6\. General Contact Information 13

II\. SHORT-FORM (FCC FORM 175) APPLICATION REQUIREMENTS
[13](#short-form-fcc-form-175-application-requirements)

A. Ownership Disclosure Requirements (Form 175 Exhibit A)
[13](#ownership-disclosure-requirements-form-175-exhibit-a)

B. Consortia And Joint Bidding Arrangements (Form 175 Exhibit B)
[13](#consortia-and-joint-bidding-arrangements-form-175-exhibit-b)

C. Small Business Bidding Credits (Form 175 Exhibit C)
[14](#small-business-bidding-credits-form-175-exhibit-c)

1\. Eligibility [14](#eligibility)

2\. Application Showing [15](#application-showing)

3\. Bidding Credits [15](#bidding-credits)

D. Other Information (Form 175 Exhibits D and E)
[16](#other-information-form-175-exhibits-d-and-e)

E. Minor Modifications to Short-Form Applications (FCC Form 175)
[16](#minor-modifications-to-short-form-applications-fcc-form-175)

F. Maintaining Current Information in Short-Form Applications (FCC Form
175)
[16](#maintaining-current-information-in-short-form-applications-fcc-form-175)

III\. PRE-AUCTION PROCEDURES [17](#pre-auction-procedures)

A. Auction Seminar [17](#auction-seminar)

B. Short-Form Application (FCC Form 175) \-- Due April 10, 2000
[17](#short-form-application-fcc-form-175----due-april-10-2000)

1\. Electronic Filing [17](#electronic-filing)

2\. Completion of the FCC Form 175 [17](#completion-of-the-fcc-form-175)

3\. Electronic Review of FCC Form 175
[18](#electronic-review-of-fcc-form-175)

C. Application Processing and Minor Corrections
[18](#application-processing-and-minor-corrections)

D. Upfront Payments \-- Due April 24, 2000
[18](#upfront-payments----due-april-24-2000)

1\. Auction Payments by Wire Transfer
[19](#auction-payments-by-wire-transfer)

2\. FCC Form 159 [19](#fcc-form-159)

3\. Amount of Upfront Payment [19](#amount-of-upfront-payment)

4\. Applicant\'s Wire Transfer Information for Purposes of Refunds
[20](#applicants-wire-transfer-information-for-purposes-of-refunds)

E. Auction Registration [21](#auction-registration)

F. Remote Electronic Bidding Software
[21](#remote-electronic-bidding-software)

G. Mock Auction [22](#mock-auction)

IV\. AUCTION EVENT [22](#auction-event)

A. Auction Structure [22](#auction-structure)

1\. Simultaneous Multiple Round Auction
[22](#simultaneous-multiple-round-auction)

2\. Maximum Eligibility and Activity Rules
[22](#maximum-eligibility-and-activity-rules)

3\. Activity Rule Waivers and Reducing Eligibility
[23](#activity-rule-waivers-and-reducing-eligibility)

4\. Auction Stages [24](#auction-stages)

5\. Stage Transitions [25](#stage-transitions)

6\. Auction Stopping Rules [25](#auction-stopping-rules)

7\. Auction Delay, Suspension, or Cancellation
[27](#auction-delay-suspension-or-cancellation)

B. Bidding Procedures [27](#bidding-procedures)

1\. Round Structure [27](#round-structure)

2\. Reserve Price or Minimum Opening Bid
[27](#reserve-price-or-minimum-opening-bid)

3\. Bid Increments and Minimum Accepted Bids
[29](#bid-increments-and-minimum-accepted-bids)

4\. High Bids [29](#high-bids)

5\. Bidding [29](#bidding)

6\. Bid Removal and Bid Withdrawal [31](#bid-removal-and-bid-withdrawal)

7\. Special 30 MHz Nationwide Bid Withdrawal Procedure
[32](#special-30-mhz-nationwide-bid-withdrawal-procedure)

8\. Round Results 37

9\. Auction Announcements [37](#auction-announcements)

10\. Maintaining the Accuracy of FCC Form 175 Information
[37](#maintaining-the-accuracy-of-fcc-form-175-information)

V. POST-AUCTION PROCEDURES [37](#post-auction-procedures)

A. Down Payments and Withdrawn Bid Payments
[37](#down-payments-and-withdrawn-bid-payments)

B. Long-Form Application [37](#long-form-application)

C. Default and Disqualification [38](#default-and-disqualification)

D. Refund of Remaining Upfront Payment Balance
[38](#refund-of-remaining-upfront-payment-balance)

VI\. Attachment A [40](#attachment-a)

VII\. Attachment B [41](#attachment-b)

VIII\. Attachment C [42](#attachment-c)

IX\. Attachment D [45](#attachment-d)

X. Attachment E [52](#attachment-e)

XI\. Attachment F [54](#attachment-f)

XII\. Attachment G [56](#attachment-g)

XIII\. Attachment H [58](#attachment-h)

XIV\. Attachment I 62

XV\. Attachment J 67

# General Information

## Introduction

This public notice announces the procedures and minimum opening bids for
the upcoming auction of licenses for Fixed, Mobile, and Broadcasting
services in the 747-762 and 777-792 MHz bands ("Auction No. 31"). On
January 10, 2000, the Wireless Telecommunications Bureau ("Bureau")
released a public notice,[^1] seeking comment on the establishment of
reserve prices or minimum opening bids for Auction No. 31, in accordance
with the Balanced Budget Act of 1997.[^2] In addition, the Bureau sought
comment on a number of procedures to be used in Auction No. 31.[^3] The
Bureau received three comments and five reply comments in response to
the *Auction No. 31 Comment Public Notice*.[^4]

### Background of Proceeding

The 746-806 MHz band has historically been used exclusively by
television stations (Channels 60-69). Incumbent analog television
broadcasters are permitted by statute to continue operations in this
band until their markets are converted to digital television
("DTV").[^5] The Budget Act directed the Commission to reallocate this
spectrum for public safety and commercial use by December 31, 1997,[^6]
and to commence competitive bidding for the commercial licenses on the
reallocated spectrum after January 1, 2001.[^7] In November 1999,
Congress enacted a consolidated appropriations statute that revised the
latter instruction.[^8] This legislation accelerated the schedule for
auction of the commercial spectrum bands, and requires that the proceeds
from the auction of these bands be deposited in the U.S. Treasury by
September 30, 2000.

### Licenses to Be Auctioned 

The licenses available in this auction consist of one 20 megahertz
license (consisting of paired 10 megahertz blocks) and one 10 megahertz
license (consisting of paired 5 megahertz blocks) in each of six regions
to be known as the 700 MHz band economic area groupings ("700 MHz Band
EAGs"). These licenses are listed in this public notice on Attachment A.
The following table contains the Block/Frequency Band Limits
Cross-Reference List for each region in Auction No. 31:

#########  {#section .unnumbered}

**747-762 and 777-792 MHz Allocations**

  --------------- -------------------------------------------------------
  License Suffix  Frequencies

  C               747 -- 752, 777 -- 782

  D               752 -- 762, 782 -- 792
  --------------- -------------------------------------------------------

## Rules and Disclaimers

### Relevant Authority

Prospective bidders must familiarize themselves thoroughly with the
Commission\'s rules relating to the 700 MHz band, contained in Title 47,
Part 27 of the Code of Federal Regulations, and those relating to
application and auction procedures, contained in Title 47, Part 1 of the
Code of Federal Regulations.

Prospective bidders must also be thoroughly familiar with the
procedures, terms and conditions (collectively, "Terms") contained in
this public notice; the *Auction No. 31 Comment Public Notice;* Service
Rules for the 746-764 and 776-794 MHz Bands, and Revisions to Part 27 of
the Commission's Rules, *First Report and Order,* WT Docket No. 99-168,
FCC 00-5 (rel. January 7, 2000) ("*700 MHz First Report & Order*"), 65
Fed. Reg. 3139 (January 20, 2000); Reallocation of Television Channels
60-69, the 746-806 MHz Band, ET Docket No. 97-157, *Report and Order*,
12 FCC Rcd 22953 (1998), *recon*., 13 FCC Rcd 21578 (1998)
("*Reallocation Reconsideration"*).

The terms contained in the Commission\'s rules, relevant orders and
public notices are not negotiable. The Commission may amend or
supplement the information contained in our public notices at any time,
and will issue public notices to convey any new or supplemental
information to bidders. It is the responsibility of all prospective
bidders to remain current with all Commission rules and with all public
notices pertaining to this auction. Copies of most Commission documents,
including public notices, can be retrieved from the FCC Internet node
via anonymous ftp \@ftp.fcc.gov or the FCC Auctions World Wide Web site
at [http://www.fcc.gov/wtb/auctions]{.underline}. Additionally,
documents may be obtained for a fee by calling the Commission\'s copy
contractor, International Transcription Service, Inc. (ITS), at (202)
314-3070. When ordering documents from ITS, please provide the
appropriate FCC number (for example, FCC 00-5 for the *700 MHz First
Report & Order*).

### Prohibition of Collusion 

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.[^9] This prohibition begins with the filing
of short-form applications, and ends on the down payment due date after
the auction. Bidders competing for licenses in the same geographic
license areas are encouraged not to use the same individual as an
authorized bidder. A violation of the anti‑collusion rule could occur if
an individual acts as the authorized bidder for two or more competing
applicants, and conveys information concerning the substance of bids or
bidding strategies between the bidders he/she is authorized to represent
in the auction. Also, if the authorized bidders are different
individuals employed by the same organization (*e.g.*, law firm or
consulting firm), a violation could similarly occur. At a minimum, in
such a case, applicants should certify on their applications that
precautionary steps have been taken to prevent communication between
authorized bidders and that applicants and their bidding agents will
comply with the anti‑collusion rule.[^10]

The Bureau, however, cautions that merely filing a certifying statement
as part of an application will not outweigh specific evidence that
collusive behavior has occurred nor will it preclude the initiation of
an investigation when warranted.[^11] In Auction No. 31, for example,
the rule would apply to any applicants bidding for the same 700 MHz Band
EAG. Therefore, applicants that apply to bid for "all markets" would be
precluded from communicating with all other applicants after filing the
FCC Form 175. However, applicants may enter into bidding agreements
*before* filing their FCC Form 175 short-form applications, as long as
they disclose the existence of the agreement(s) in their Form 175
short-form applications.[^12] If parties agree in principle on all
material terms prior to the short-form filing deadline, those parties
must be identified on the short-form application under Section
1.2105(c), even if the agreement has not been reduced to writing. If the
parties have not agreed in principle by the filing deadline, an
applicant would not include the names of those parties on its
application, and may not continue negotiations with other applicants for
the same geographic license areas(s).[^13] By signing their FCC Form 175
short-form applications, applicants are certifying their compliance with
Section 1.2105(c). In addition, Section 1.65 of the Commission\'s Rules
requires an applicant to *maintain* the accuracy and completeness of
information furnished in its pending application and to notify the
Commission within 30 days of any substantial change that may be of
decisional significance to that application.[^14] Thus, Section 1.65
requires an auction applicant to notify the Commission of any violation
of the anti-collusion rules upon learning of such violation. Bidders are
therefore required to make such notification to the Commission
immediately upon discovery.

### Protection of Television Services

Licensees operating on the spectrum associated with Channels 60, 61, 62,
65, 66, and 67 must comply with the co-channel and adjacent channel
provisions of Section 27.60 of our Rules. For example, a licensee
operating on any portion of the 10 megahertz block (*i.e*., between 752
MHz and 762 MHz) that coincides with Channel 61 will have to provide
co-channel protection to television stations operating on Channel 61 and
adjacent channel protection to television stations operating on Channels
60 and 62; and any licensee operating on any portion of the 10 megahertz
block that coincides with Channel 62 will have to provide co-channel
protection to television stations operating on Channel 62 and adjacent
channel protection to television stations operating on Channels 61 and
63. Licensees operating on spectrum between 747 MHz and 752 MHz (Channel
60), in addition to providing co-channel protection to Channel 60
television stations, will have to provide adjacent channel protection to
television stations operating on both Channel 61 and 59.[^15]

#### Negotiations with Incumbent Broadcast Licensees

#### As the Commission noted in the *700 MHz First Report & Order*: "The Congressional plan set forth in Sections 336 and 337 of the \[Communications\] Act and in the 1997 Budget Act is to transition this spectrum from its current use for broadcast services to commercial use and public safety services."[^16] Congress also has directed the Commission to auction the 36 MHz of spectrum allocated for commercial use at least six years before the relocation deadline for incumbent broadcasters in this spectrum, while adopting interference limits and other technical restrictions necessary to protect full-service analog television service during the transition to DTV.[^17] In these circumstances, the Commission will consider specific regulatory requests needed to implement voluntary agreements reached between incumbent licensees and new licensees in these bands. In considering whether the public interest would be served by approving specific requests, the Commission would, for example, consider the benefits to consumers of the provision of new wireless services, such as next generation mobile services or Internet fixed access services.[^18] The Commission would also consider whether such agreements would help clear spectrum for public safety use in these bands and could result in the provision of new wireless service in rural and other relatively underserved communities. On the other hand, the Commission would also consider loss of service to the broadcast community of the licensee. For example, the Commission would consider the availability of the licensee's former analog programming within the service area, through simulcast of that programming on the licensee's DTV channel or distribution of the programming on cable or DBS, or the availability of similar broadcast services within the service area (e.g., whether the lost service is the only network service, the only source for local service, or the only source for otherwise unique broadcast service). {#as-the-commission-noted-in-the-700-mhz-first-report-order-the-congressional-plan-set-forth-in-sections-336-and-337-of-the-communications-act-and-in-the-1997-budget-act-is-to-transition-this-spectrum-from-its-current-use-for-broadcast-services-to-commercial-use-and-public-safety-services.-congress-also-has-directed-the-commission-to-auction-the-36-mhz-of-spectrum-allocated-for-commercial-use-at-least-six-years-before-the-relocation-deadline-for-incumbent-broadcasters-in-this-spectrum-while-adopting-interference-limits-and-other-technical-restrictions-necessary-to-protect-full-service-analog-television-service-during-the-transition-to-dtv.-in-these-circumstances-the-commission-will-consider-specific-regulatory-requests-needed-to-implement-voluntary-agreements-reached-between-incumbent-licensees-and-new-licensees-in-these-bands.-in-considering-whether-the-public-interest-would-be-served-by-approving-specific-requests-the-commission-would-for-example-consider-the-benefits-to-consumers-of-the-provision-of-new-wireless-services-such-as-next-generation-mobile-services-or-internet-fixed-access-services.-the-commission-would-also-consider-whether-such-agreements-would-help-clear-spectrum-for-public-safety-use-in-these-bands-and-could-result-in-the-provision-of-new-wireless-service-in-rural-and-other-relatively-underserved-communities.-on-the-other-hand-the-commission-would-also-consider-loss-of-service-to-the-broadcast-community-of-the-licensee.-for-example-the-commission-would-consider-the-availability-of-the-licensees-former-analog-programming-within-the-service-area-through-simulcast-of-that-programming-on-the-licensees-dtv-channel-or-distribution-of-the-programming-on-cable-or-dbs-or-the-availability-of-similar-broadcast-services-within-the-service-area-e.g.-whether-the-lost-service-is-the-only-network-service-the-only-source-for-local-service-or-the-only-source-for-otherwise-unique-broadcast-service. .unnumbered}

#### Canadian and Mexican Border Regions

There are currently separate agreements with Canada and Mexico covering
TV broadcast use of the UHF 470-806 MHz band. Such agreements do not
reflect the additional use or services adopted in the *700 MHz First
Report & Order* for 746-764 and 776-794 MHz bands.[^19] While the
Commission staff has been involved in discussions with both countries
regarding coordination of interference criteria for the use of these
bands in the border areas for the additional services, agreements have
yet to be reached.[^20] Therefore, until such agreements have been
finalized, the Commission found it necessary to adopt certain interim
requirements for licenses in these bands along the Canada and Mexico
borders.[^21] Accordingly, licenses issued for these bands within 120 km
of the borders were made subject to whatever future agreements the
United States developed with those two countries. In that the existing
agreements for the protection of TV stations in those countries are
still in effect and must be recognized until they are replaced or
modified to reflect the new uses, the Commission decided that licenses
in the border areas will be granted on the condition that harmful
interference may not be caused to, but must accept interference from,
UHF TV transmitters in Canada and Mexico. Furthermore, the Commission
pointed out that modifications may be necessary to comply with whatever
provisions are ultimately specified in future agreements with Canada and
Mexico regarding the use of these bands.[^22]

### Due Diligence 

The FCC makes no representations or warranties about the use of this
spectrum for particular services. Applicants should be aware that an FCC
auction represents an opportunity to become an FCC licensee in this
service, subject to certain conditions and regulations. An FCC auction
does not constitute an endorsement by the FCC of any particular
services, technologies or products, nor does an FCC license constitute a
guarantee of business success. Applicants should perform their
individual due diligence before proceeding as they would with any new
business venture.

Potential bidders are reminded that there are a number of incumbent
broadcast television licensees already licensed and operating in the
746-764 and 776-794 MHz bands (television Channels 60-62 and 65-67) that
will be subject to the upcoming auction. As discussed above in greater
detail, the Commission made clear that geographic area licensees
operating on the spectrum associated with Channels 60, 61, 62, 65, 66,
and 67 must comply with the co-channel and adjacent channel provision of
Section 90.545 of the Commission's rules.[^23] In addition, geographic
area licensees operating fixed stations in the 746-764 MHz band must
comply with the relevant provisions for "base stations" in Sections
90.309 and 90.545 of the Commissions Rules; and licensees operating
fixed stations in the 776-794 MHz band must comply with the relevant
provisions for "control stations" in those sections of the rules.[^24]

These limitations may restrict the ability of such geographic licensees
to use certain portions of the electromagnetic spectrum or provide
service to certain regions in their geographic license areas. Listed in
Attachment K are the facilities of incumbent television permittees and
licensees on television Channels 60-62 and 65-67 as well as on
television Channels 59 and 68. However, prospective bidders should not
rely solely on this list, but should carefully review the Commission's
databases and records before formulating bidding strategies. Records
relating to these stations are available for public inspection during
regular business hours in the Reference Information Center at the
Federal Communications Commission, 445 Twelfth Street, S.W., CY-A257,
Washington, D C 20554. The Commission makes no representation or
guarantees regarding the accuracy or completeness of the information in
Attachment K. In addition, the Commission makes no representations or
guarantees regarding the accuracy or completeness of information that
has been provided by incumbent licensees and incorporated into the
databases. Potential bidders are strongly encouraged to physically
inspect any sites located in or near the geographic area for which they
plan to bid.

Potential bidders should also be aware of the following:

> QUALCOMM Incorporated, Petition for Declaratory Ruling Giving
>
> Effect to the Mandate of the District of Columbia Circuit Court
>
> of Appeals, Service Rules for the 746-764 and 776-794 MHz
>
> Bands and Revisions to Part 27 of the Commission's Rules,
>
> Petition for Declaratory Ruling (filed January 28, 2000).
>
> "Wireless Telecommunications Bureau Seeks Comment On
>
> QUALCOMM Incorporated's Petition for Declaratory Ruling
>
> Seeking 700 MHz Band License Pursuant to Ruling
>
> of U.S. Circuit Court of Appeals," *Public Notice*, DA 00-219
>
> (rel. February 4, 2000); Extension of Filing Deadline for Comments
>
> to QUALCOMM Incorporated's Petition for Declaratory Ruling,
>
> *Public Notice*, DA 00-273 (rel. February 11, 2000).

**Potential bidders should also be aware that certain applications
(including those for modification), petitions for rulemaking, waiver
requests, requests for special temporary authority ("STA"), petitions to
deny, petitions for reconsideration, and applications for review may be
pending before the Commission that relate to the facilities in
Attachment K. We note that resolution of these pending matters could
have an impact on the availability of spectrum for licensees in the
746-764 and 776-794 MHz bands. While the Commission will continue to act
on pending matters, some of these matters may not be resolved by the
time of auction. Potential bidders are strongly encouraged to conduct
their own research prior to Auction No. 31 in order to determine the
existence of pending proceedings that might affect their decisions
regarding participation in the auction. Participants in Auction No. 31
are strongly encouraged to continue such research during the auction.**

**5. Bidder Alerts**

All applicants must certify on their FCC Form 175 applications under
penalty of perjury that they are legally, technically, financially and
otherwise qualified to hold a license, and not in default on any payment
for Commission licenses (including down payments) or delinquent on any
non-tax debt owed to any Federal agency. Prospective bidders are
reminded that submission of a false certification to the Commission is a
serious matter that may result in severe penalties, including monetary
forfeitures, license revocations, exclusion from participation in future
auctions, and/or criminal prosecution.

As is the case with many business investment opportunities, some
unscrupulous entrepreneurs may attempt to use Auction No. 31 to deceive
and defraud unsuspecting investors. Common warning signals of fraud
include the following:

-   The first contact is a "cold call" from a telemarketer, or is made
    in response to an inquiry prompted by a radio or television
    infomercial.

-   The offering materials used to invest in the venture appear to be
    targeted at IRA funds, for example by including all documents and
    papers needed for the transfer of funds maintained in IRA accounts.

-   The amount of the minimum investment is less than \$25,000.

-   The sales representative makes verbal representations that: (a) the
    Internal Revenue Service ("IRS"), Federal Trade Commission ("FTC"),
    Securities and Exchange Commission ("SEC"), FCC, or other government
    agency has approved the investment; (b) the investment is not
    subject to state or federal securities laws; or (c) the investment
    will yield unrealistically high short-term profits. In addition, the
    offering materials often include copies of actual FCC releases, or
    quotes from FCC personnel, giving the appearance of FCC knowledge or
    approval of the solicitation.

Information about deceptive telemarketing investment schemes is
available from the FTC at (202) 326-2222 and from the SEC at (202)
942-7040. Complaints about specific deceptive telemarketing investment
schemes should be directed to the FTC, the SEC, or the National Fraud
Information Center at (800) 876-7060. Consumers who have concerns about
specific 700 MHz proposals may also call the FCC National Call Center at
(888) CALL-FCC ((888) 225-5322).

### National Environmental Policy Act (NEPA) Requirements

The permitee must comply with the Commission\'s rules regarding the
National Environmental Policy Act (NEPA). The construction of a 700 MHz
facility is a federal action and the permitee must comply with the
Commission\'s NEPA rules for each such facility. *See* 47 C.F.R.
§§1.1305-1.1319. The Commission\'s NEPA rules require that, among other
things, the permitee consult with expert agencies having NEPA
responsibilities, including the U.S. Fish and Wildlife Service, the
State Historic Preservation Office, the Army Corp of Engineers and the
Federal Emergency Management Agency (through the local authority with
jurisdiction over floodplains). The permitee must prepare environmental
assessments for facilities that may have a significant impact in or on
wilderness areas, wildlife preserves, threatened or endangered species
or designated critical habitats, historical or archaeological sites,
Indian religious sites, floodplains, and surface features. The permitee
must also prepare environmental assessments for facilities that include
high intensity white lights in residential neighborhoods or excessive
radio frequency emission.

## Auction Specifics

### Auction Date 

The *Auction No. 31 Comment Public Notice* announced that the auction
would begin on May 10, 2000. In its comments, NextLink asks that the
Commission complete any proceeding associated with the terms and
conditions for the next C and F block PCS auction before the scheduled
commencement of Auction No. 31.[^25] In reply comments, AT&T takes a
similar position in urging that the Commission complete all proceedings
needed to establish the terms and conditions of the upcoming C and F
block auction, including a decision on which entities are eligible to
bid, prior to the short-form application deadline for Auction No.
31.[^26] Although we have begun consideration of these issues by seeking
comment on two petitions regarding C and F block rules, we cannot make
the auction start date dependent upon the conclusion of other
proceedings.[^27] As NextLink and AT&T are aware, the Commission is
under Congressional mandate to deposit the receipts from Auction No. 31
into the United States Treasury by September 30, 2000.[^28] Therefore,
all potential bidders, including NextLink and AT&T, must make business
decisions based on the environment in which they currently operate. The
business decisions that these two companies must make are no different
than the judgments that any other similarly situated potential bidder
must make. Accordingly, the auction will begin on Wednesday, May 10,
2000. The initial schedule for bidding will be announced by public
notice at least one week before the start of the auction. Unless
otherwise announced, bidding on all licenses will be conducted on each
business day until bidding has stopped on all licenses.

### Auction Title

Auction No. 31 --- 700 MHz Band

### Bidding Methodology 

The bidding methodology for Auction No. 31 will be simultaneous multiple
round bidding. Bidding will be permitted only from remote locations,
either electronically (by computer) or telephonically.

### Pre-Auction Dates and Deadlines

> Auction Seminar March 30, 2000
>
> Short-Form Application (FCC FORM 175) April 10, 2000; 5:30 p.m. ET
>
> Upfront Payments (via wire transfer) April 24, 2000; 6:00 p.m. ET
>
> Orders for Remote Bidding Software April 25, 2000; 5:30 p.m. ET
>
> Mock Auction May 8, 2000
>
> Auction Begins May 10, 2000

### Requirements for Participation 

Those wishing to participate in the auction must:

-   Submit a short form application (FCC Form 175) electronically by
    5:30 pm ET, April 10, 2000.

-   Submit a sufficient upfront payment and an FCC Remittance Advice
    Form (FCC Form 159) by 6:00 pm ET, April 24, 2000.

-   Comply with all provisions outlined in this public notice.

### General Contact Information

**GENERAL AUCTION INFORMATION** FCC Auctions Hotline

General Auction Questions (888) 225-5322, Press Option #2

Seminar Registration or direct (717) 338-2888

Orders for Remote Bidding Software Hours of service: 8 a.m. -- 5:30 p.m.
ET

***AUCTION LEGAL INFORMATION*** Auctions and Industry Analysis Division

Auction Rules, Policies, Regulations Legal Branch (202) 418-0660

***LICENSING INFORMATION*** Commercial Wireless Division

Rules, Policies, Regulations (202) 418-0620

Licensing Issues

Incumbency/Protection Issues

***TECHNICAL SUPPORT*** FCC Auctions Technical Support Hotline

Electronic Filing Assistance (202) 414-1250 (Voice),

Software Downloading (202) 414-1255 (TTY)

Hours of service: 8 a.m. -- 6:00 p.m. ET

***PAYMENT INFORMATION*** FCC Auctions Accounting Branch

Wire Transfers (202) 418-1995

Refunds (202) 418-2843 (Fax)

***TELEPHONIC BIDDING*** Will be furnished only to qualified bidders

***FCC COPY CONTRACTOR*** International Transcription Services, Inc.

Additional Copies of 445 12^th^ Street, SW Room CY-B400

Commission Documents Washington, DC 20554

\(202\) 314-3070

***PRESS INFORMATION*** Meribeth McCarrick (202) 418-0654

***FCC FORMS*** (800) 418-3676 (outside Washington, DC)

\(202\) 418-3676 (in the Washington Area)

<http://www.fcc.gov/formpage>

***FCC INTERNET SITES*** <http://www.fcc.gov/wtb/auctions>

[http://www.fcc.gov](http://www.fcc.gov/)

[ftp://ftp.fcc.gov](ftp://ftp.fcc.gov/)

# SHORT-FORM (FCC FORM 175) APPLICATION REQUIREMENTS

Guidelines for completion of the short-form (FCC Form 175) are set forth
on Attachment D to this public notice. The short-form application seeks
the applicant's name and address, legal classification, status, bidding
credit eligibility, identification of the authorization(s) sought, the
authorized bidders and contact persons.

## Ownership Disclosure Requirements (Form 175 Exhibit A)

All applicants must comply with the uniform Part 1 ownership disclosure
standards and provide information required by Sections 1.2105 and 1.2112
of the Commission's rules. Specifically, in completing Form 175,
applicants will be required to file an Exhibit A providing a full and
complete statement of the ownership of the bidding entity.[^29] The
ownership disclosure standards for the short-form are set forth in
Section 1.2112 of the Commission's rules.

## Consortia And Joint Bidding Arrangements (Form 175 Exhibit B)

Applicants will be required to identify on their short-form applications
any parties with whom they have entered into any consortium
arrangements, joint ventures, partnerships or other agreements or
understandings which relate in any way to the licenses being auctioned,
including any agreements relating to post-auction market structure.[^30]
*See* 47 C.F.R. §§ 1.2105(a)(2)(viii); 1.2105(c)(1). Applicants will
also be required to certify on their short-form applications that they
have not entered into any explicit or implicit agreements, arrangements
or understandings of any kind with any parties, other than those
identified, regarding the amount of their bids, bidding strategies, or
the particular construction permits on which they will or will not bid.
*See* 47 C.F.R*.* § 1.2105(a)(2)(ix). As discussed above, if an
applicant has had discussions, but has not reached a joint bidding
agreement by the short-form deadline, it would not include the names of
parties to the discussions on its application and may not continue
discussions with applicants for the same geographic license area(s)
after the deadline.[^31] In cases where applicants have entered into
consortia or joint bidding arrangements, applicants must submit an
Exhibit B to the FCC Form 175.

A party holding a non-controlling, attributable interest in one
applicant will be permitted to acquire an ownership interest in, form a
consortium with, or enter into a joint bidding arrangement with other
applicants for construction permits in the same geographic license area
provided that (i) the attributable interest holder(s) certify that it
has not and will not communicate with any party concerning the bids or
bidding strategies of more than one of the applicants in which it holds
an attributable interest, or with which it has formed a consortium or
entered into a joint bidding arrangement; and (ii) the arrangements do
not result in a change in control of any of the applicants.[^32] While
the anti-collusion rules do not prohibit non-auction related business
negotiations among auction applicants, bidders are reminded that certain
discussions or exchanges could broach on impermissible subject matters
because they may convey pricing information and bidding strategies.

## Small Business Bidding Credits (Form 175 Exhibit C)

In the *700 MHz First Report & Order*, the Commission adopted small
business provisions to promote and facilitate the participation of small
businesses in competitive bidding for licenses in the 700 MHz band.[^33]

### Eligibility

Bidding credits are available to small businesses and very small
businesses as defined in 47 C.F.R Section 27.502(a). For purposes of
determining which entities qualify as very small businesses or small
businesses, the Commission will consider the gross revenues of the
applicant, its controlling interests, and affiliates of the applicant
and its controlling interests. The Commission does not impose specific
equity requirements on controlling interests. Once principals or
entities with a controlling interest are determined, only the revenues
of those principals or entities, the applicant and its affiliates will
be counted in determining small business eligibility. The term "control"
includes both *de facto* and *de jure* control of the applicant.
Typically, *ownership of at least 50.1 percent of an entity's voting
stock evidences de jure control*. *De facto* control is determined on a
case-by-case basis.[^34] The following are some common indicia of
control:

-   the entity constitutes or appoints more than 50 percent of the board
    of directors or management committee;

-   the entity has authority to appoint, promote, demote, and fire
    senior executives that control the day-to-day activities of the
    licensee; or

-   the entity plays an integral role in management decisions.

A consortium of small businesses, or very small businesses is a
conglomerate organization formed as a joint venture between or among
mutually independent business firms, each of which *individually*
satisfies the definition of small or very small business in Section
27.502. Thus, each consortium member must disclose its gross revenues
along with those of its affiliates, controlling interests, and
controlling interests\' affiliates. We note that although the gross
revenues of the consortium members will not be aggregated for purposes
of determining eligibility for small or very small business credits,
this information must be provided to ensure that each individual
consortium member qualifies for any bidding credit awarded to the
consortium.

### Application Showing

Applicants should note that they will be required to file supporting
documentation as Exhibit C to their FCC Form 175 short form applications
to establish that they satisfy the eligibility requirements to qualify
as a small business or very small business (or consortia of small or
very small businesses) for this auction.[^35] Specifically, for Auction
No. 31, applicants applying to bid as small or very small businesses (or
consortia of small or very small businesses) will be required to
disclose on Exhibit C to their FCC Form 175 short-form applications,
*separately and in the aggregate*, the gross revenues for the preceding
three years of each of the following: (1) the applicant; (2) the
applicant\'s affiliates; (3) the applicant\'s controlling interests; and
(4) the affiliates of the applicant\'s controlling interests.
Certification that the average gross revenues for the preceding three
years do not exceed the applicable limit is not sufficient. A statement
of the total gross revenues for the preceding three years is also
insufficient. The applicant must provide separately for itself, its
affiliates, and its controlling interests, a schedule of gross revenues
for *each* of the preceding three years, as well as a statement of total
average gross revenues for the three-year period. If the applicant is
applying as a consortium of very small or small businesses, this
information must be provided for each consortium member.

### Bidding Credits

Applicants that qualify under the definitions of small business and very
small business (or consortia of small or very small businesses) as are
set forth in 47 C.F.R. § 27.502, are eligible for a bidding credit that
represents the amount by which a bidder\'s winning bids are
discounted.[^36] The size of a 700 MHz band bidding credit depends on
the average gross revenues for the preceding three years of the bidder
and its controlling interests and affiliates:

-   A bidder with average gross revenues of not more than \$40 million
    for the preceding three years receives a 15 percent discount on its
    winning bids for 700 MHz band licenses ("small business");[^37]

-   A bidder with average gross revenues of not more than \$15 million
    for the preceding three years receives a 25 percent discount on its
    winning bids for 700 MHz band licenses ("very small business").[^38]

Bidding credits are not cumulative: qualifying applicants receive either
the 15 percent or the 25 percent bidding credit, but not both.

Bidders in Auction No. 31 should note that unjust enrichment provisions
apply to winning bidders that use bidding credits and subsequently
assign or transfer control of their licenses to an entity not qualifying
for the same level of bidding credit.[^39] Finally, bidders should also
note that there are no installment payment plans in Auction No. 31.

## Other Information (Form 175 Exhibits D and E)

Applicants owned by minorities or women, as defined in 47 C.F.R. §
1.2110(b)(2), may attach an exhibit (Exhibit D) regarding this status.
This applicant status information is collected for statistical purposes
only and assists the Commission in monitoring the participation of
"designated entities" in

its auctions. Applicants wishing to submit additional information may do
so in Exhibit E, Miscellaneous Information to the FCC Form 175.

## Minor Modifications to Short-Form Applications (FCC Form 175)

After the short-form filing deadline (April 10, 2000), applicants may
make only minor changes to their FCC Form 175 applications. Applicants
will not be permitted to make major modifications to their applications
(*e.g*., change their license selections, change the certifying official
or change control of the applicant or change bidding credits). *See* 47
C.F.R. § 1.2105. Permissible minor changes include, for example,
deletion and addition of authorized bidders (to a maximum of three) and
revision of exhibits. Applicants should make these changes on-line, and
submit a letter to Amy Zoslov, Chief, Auctions and Industry Analysis
Division, Wireless Telecommunications Bureau, Federal Communications
Commission, 445 12th Street, SW, Suite 4-A760 Washington, DC 20554,
briefly summarizing the changes. Questions about other changes should be
directed to Howard Davenport of the Auctions and Industry Analysis
Division at (202) 418-0660.

## Maintaining Current Information in Short-Form Applications (FCC Form 175)

Applicants have an obligation under 47 C.F.R. §1.65, to maintain the
completeness and accuracy of information in their short-form
applications. Amendments reporting substantial changes of possible
decisional significance in information contained in FCC Form 175
applications, as defined by 47 C.F.R. § 1.2105(b)(2), will not be
accepted and may in some instances result in the dismissal of the FCC
Form 175 application.

# PRE-AUCTION PROCEDURES

## Auction Seminar

On March 30, 2000, the FCC will sponsor a free seminar for Auction No.
31 at the Federal Communications Commission, located at 445 12^th^
Street, S.W., Washington, D.C. The seminar will provide attendees with
information about pre-auction procedures, conduct of the auction, FCC
remote bidding software, and the 700 MHz band service and auction rules.
The seminar will also provide an opportunity for prospective bidders to
ask questions of FCC staff.

To register, complete the registration form included as Attachment B of
this public notice and submit it by Tuesday, March 28, 2000.
Registrations are accepted on a first-come, first-served basis.

## Short-Form Application (FCC Form 175) \-- Due April 10, 2000

In order to be eligible to bid in this auction, applicants must first
submit an FCC Form 175 application. This application must be submitted
electronically and received at the Commission by 5:30 p.m. ET on April
10, 2000. Late applications will not be accepted.

There is no application fee required when filing an FCC Form 175.
However, to be eligible to bid, an applicant must submit an upfront
payment. *See* Section. III.D, *below*.

### Electronic Filing

Applicants must file their FCC Form 175 applications
electronically.[^40] Applications may generally be filed at any time
from March 30, 2000 until 5:30 p.m. ET on April 10, 2000. Applicants are
strongly encouraged to file early, and applicants are responsible for
allowing adequate time for filing their applications. Applicants may
update or amend their electronic applications multiple times until the
filing deadline on April 10, 2000.

Applicants must press the "Submit Form 175" button on the "Submit" page
of the electronic form to successfully submit their FCC Forms 175. Any
form that is not submitted will not be reviewed by the FCC. Information
about accessing the FCC Form 175 is included in Attachment C. Technical
support is available at (202) 414-1250 (voice) or (202) 414-1255 (text
telephone (TTY)); the hours of service are 8 a.m. to 6 p.m. ET, Monday
through Friday.

### Completion of the FCC Form 175

Applicants should carefully review 47 C.F.R. § 1.2105, and must complete
all items on the FCC Form 175. Instructions for completing the FCC Form
175 are in Attachment D of this public notice. Applicants are encouraged
to begin preparing the required attachments for FCC Form 175 prior to
submitting the form. Attachments C and D to this public notice provide
information on the required attachments and appropriate formats.

### Electronic Review of FCC Form 175

The FCC Form 175 electronic review system may be used to review and
print applicants\' FCC Form 175 information. Applicants may also view
other applicants\' completed FCC Form 175s after the filing deadline has
passed and the FCC has issued a public notice explaining the status of
the applications. For this reason, it is important that applicants do
not include their Taxpayer Identification Numbers (TINs) on any Exhibits
to their FCC Form 175 applications**.** There is no fee for accessing
this system. *See* Attachment C for details on accessing the review
system.

## Application Processing and Minor Corrections

After the deadline for filing the FCC Form 175 applications has passed,
the FCC will process all timely submitted applications to determine
which are acceptable for filing, and subsequently will issue a public
notice identifying: (1) those applications accepted for filing
(including FCC account numbers and the licenses for which they applied);
(2) those applications rejected; and (3) those applications that have
minor defects that may be corrected, and the deadline for filing such
corrected applications.

As described more fully in the Commission\'s rules, after the April 10,
2000, short form filing deadline, applicants may make only minor
corrections to their FCC Form 175 applications. Applicants will not be
permitted to make major modifications to their applications (*e.g.*,
change their license selections, change the certifying official, change
control of the applicant, or change bidding credit eligibility).[^41]

## Upfront Payments \-- Due April 24, 2000 

In order to be eligible to bid in the auction, applicants must submit an
upfront payment accompanied by an FCC Remittance Advice Form (FCC Form
159). After completing the FCC Form 175, filers will have access to an
electronic version of the FCC Form 159 that can be printed and faxed to
Mellon Bank in Pittsburgh, PA. All upfront payments must be received at
Mellon Bank by 6:00 p.m. ET on April 24, 2000.

Please note that:

-   All payments must be made in U.S. dollars.

-   All payments must be made by wire transfer.

-   Upfront payments for Auction No. 31 go to a lockbox number different
    from the ones used in previous FCC auctions, and different from the
    lockbox number to be used for post-auction payments.

-   Failure to deliver the upfront payment by the April 24, 2000
    deadline will result in dismissal of the application and
    disqualification from participation in the auction.

### Auction Payments by Wire Transfer

Wire transfer payments must be received by 6:00 p.m. ET on April 24,
2000. To avoid untimely payments, applicants should discuss arrangements
(including bank closing schedules) with their banker several days before
they plan to make the wire transfer, and allow sufficient time for the
transfer to be initiated and completed before the deadline. Applicants
will need the following information:

ABA Routing Number: 043000261

> Receiving Bank: Mellon Pittsburgh
>
> BNF: FCC/AC 910-0171
>
> OBI Field: (Skip one space between each information item)

"AUCTIONPAY"

> TAXPAYER IDENTIFICATION NO. (same as FCC Form 159, block 26)
>
> PAYMENT TYPE CODE (enter "A31U")
>
> FCC CODE 1 (same as FCC Form 159, block 23A: "31")
>
> PAYER NAME (same as FCC Form 159, block 2)

LOCKBOX NO. \# 358430

**NOTE:** The BNF and Lockbox number are specific to the upfront
payments for this auction; do not use BNF or Lockbox numbers from
previous auctions.

Applicants must fax a completed FCC Form 159 to Mellon Bank at (412)
209-6045 or (412) 236-5702 at least one hour before placing the order
for the wire transfer (but on the same business day). On the cover sheet
of the fax, write "Wire Transfer - Auction Payment for Auction Event No.
31**.**" **Bidders should confirm receipt of their upfront payment at
Mellon Bank by contacting their sending financial institution.**

### FCC Form 159

A completed FCC Remittance Advice Form (FCC Form 159) must accompany
each upfront payment. Proper completion of FCC Form 159 is critical to
ensuring correct credit of upfront payments. Detailed instructions for
completion of FCC Form 159 are included in Attachment E to this public
notice. An electronic version of the FCC form 159 is available after
submitting the FCC Form 175. The FCC Form 159 can be completed
electronically, but must be filed with Mellon Bank via facsimile.

### Amount of Upfront Payment

In the *Part 1 Order, Memorandum Opinion and Order, and Notice of
Proposed Rule Making,* the Commission delegated to the Bureau the
authority and discretion to determine an appropriate upfront payment for
each license being auctioned.[^42] In the *Auction No. 31 Comment Public
Notice*, the Bureau proposed upfront payments for Auction No. 31.[^43]
Specifically, the Bureau proposed calculating the upfront payment based
on information available in the form of a Congressional estimate of the
value of the spectrum. There were no comments filed on the proposed
upfront payments set forth in the *Auction No. 31 Comment Public
Notice*.

Please note that upfront payments are not attributed to specific
licenses, but instead will be translated to bidding units to define a
bidder\'s maximum bidding eligibility. For Auction No. 31, the amount of
the upfront payment will be translated into bidding units on a
one-to-one basis, *e.g.*, a \$28,000,000 upfront payment provides the
bidder with 28,000,000 bidding units. The total upfront payment defines
the maximum number of bidding units on which the applicant will be
permitted to bid (including standing high bids) in any single round of
bidding. Thus, an applicant does not have to make an upfront payment to
cover all licenses that an applicant has selected on FCC Form 175, but
rather to cover the maximum number of bidding units that are associated
with licenses on which the bidder wishes to place bids and hold high
bids at any given time.

In order to be able to place a bid on a license, in addition to having
specified that license on the FCC Form 175, a bidder must have an
eligibility level that meets or exceeds the number of bidding units
assigned to that license. At a minimum, an applicant\'s total upfront
payment must be enough to establish eligibility to bid on at least one
of the licenses applied for on the FCC Form 175, or else the applicant
will not be eligible to participate in the auction.

In calculating its upfront payment amount, an applicant should determine
the [maximum]{.underline} number of bidding units it may wish to bid on
in any single round, and submit an upfront payment covering that number
of bidding units. In order to make this calculation, an applicant should
add together the upfront payments for all licenses on which it seeks to
bid in any given round. Bidders should check their calculations
carefully as there is no provision for increasing a bidder\'s maximum
eligibility after the upfront payment deadline.

NOTE: An applicant may, on its FCC Form 175, apply for every license
being offered, but its actual bidding in any round will be limited by
the bidding units reflected in its upfront payment.

### Applicant\'s Wire Transfer Information for Purposes of Refunds

The Commission will use wire transfers for all Auction No. 31 refunds.
To ensure that refunds of upfront payments are processed in an
expeditious manner, the Commission is requesting that all pertinent
information as listed below be supplied to the FCC. Applicants may
either submit the information electronically after filing their
short-form application or fax the Wire Transfer Instructions by April
24, 2000, to the FCC, Financial Operations Center, Auctions Accounting
Group, ATTN: Michelle Bennett or Gail Glasser, at (202) 418-2843. Should
the payer fail to submit the requested information, the refund will be
returned to the original payer. For additional information, please call
(202) 418-1995.

Name of Bank

ABA Number

> Contact and Phone Number

Account Number to Credit

Name of Account Holder

Correspondent Bank (if applicable)

ABA Number

Account Number

(Applicants should also note that implementation of the Debt Collection
Improvement Act of 1996 requires the FCC to obtain a Taxpayer
Identification Number (TIN) before it can disburse refunds.) Eligibility
for refunds is discussed in Section V.D., *below*.

## Auction Registration

Approximately ten days before the auction, the FCC will issue a public
notice announcing all qualified bidders for the auction. Qualified
bidders are those applicants whose FCC Form 175 applications have been
accepted for filing and that have timely submitted upfront payments
sufficient to make them eligible to bid on at least one of the licenses
for which they applied.

All qualified bidders are automatically registered for the auction.
Registration materials will be distributed prior to the auction by two
separate overnight mailings, each containing part of the confidential
identification codes required to place bids. These mailings will be sent
only to the contact person at the contact address listed in the FCC Form
175.

Applicants that do not receive both registration mailings will not be
able to submit bids. Therefore, any qualified applicant that has not
received both mailings by noon on Friday, May 5, 2000, should contact
the Auctions Hotline at 717-338-2888. Receipt of both registration
mailings is critical to participating in the auction and each applicant
is responsible for ensuring it has received all of the registration
material.

Qualified bidders should note that lost login codes, passwords or bidder
identification numbers can be replaced only by appearing [in
person]{.underline} at the FCC Auction Headquarters located at 445
12^th^ St., S. W., Washington, D.C. 20554. Only an authorized
representative or certifying official, as designated on an applicant\'s
FCC Form 175, may appear in person with two forms of identification (one
of which must be a photo identification) in order to receive replacement
codes. Qualified bidders requiring replacement codes must call technical
support prior to arriving at the FCC to arrange preparation of new
codes.

## Remote Electronic Bidding Software

Qualified bidders are allowed to bid electronically or by telephone. If
choosing to bid electronically, each bidder must purchase their own copy
of the remote electronic bidding software. Electronic bids will only be
accepted from those applicants purchasing the software. However, the
software may be copied by the applicant for use by its authorized
bidders at different locations. The price of the FCC's remote bidding
software is \$175.00 and must be ordered by Tuesday, April 25, 2000. For
security purposes, the software is only mailed to the contact person at
the contact address listed on the FCC Form 175. Please note that auction
software is tailored to a specific auction, so software from prior
auctions will not work for Auction No. 31. If bidding telephonically,
the telephonic bidding phone number will be supplied in the second
Federal Express mailing of confidential login codes. Qualified bidders
that do not purchase the software may only bid telephonically. To
indicate your bidding preference, an FCC Bidding Preference/Remote
Software Order Form can be accessed and electronically completed when
submitting the FCC Form 175. A copy of this form is included as
Attachment F in this public notice.

## Mock Auction

All qualified bidders will be eligible to participate in a mock auction
on May 8, 2000. The mock auction will enable applicants to become
familiar with the electronic software prior to the auction. Free
demonstration software will be available for use in the mock auction.
Participation by all bidders is strongly recommended. Details will be
announced by public notice.

# AUCTION EVENT

The first round of bidding for Auction No. 31 will begin on May 10,
2000. The initial bidding schedule will be announced in the public
notice listing the qualified bidders which is released approximately 10
days before the start of the auction.

## Auction Structure

### Simultaneous Multiple Round Auction

In the *Auction No. 31 Comment Public Notice*, we proposed to award 12
licenses in the 700 MHz bands in a single, simultaneous multiple round
auction.[^44] We received no comment on this issue. We conclude that it
is operationally feasible and appropriate to auction the 700 MHz band
licenses through a single, simultaneous multiple round auction. Unless
otherwise announced, bids will be accepted on all licenses in each round
of the auction. This approach, we believe, allows bidders to take
advantage of any synergies that exist among licenses and is most
administratively efficient.

### Maximum Eligibility and Activity Rules

In the *Auction No. 31 Comment Public Notice*, we proposed that the
amount of the upfront payment submitted by a bidder would determine the
initial maximum eligibility (as measured in bidding units) for each
bidder.[^45] We received no comments on this issue.

For Auction No. 31 we will adopt this proposal. The amount of the
upfront payment submitted by a bidder determines the initial maximum
eligibility (in bidding units) for each bidder. Note again that upfront
payments are not attributed to specific licenses, but instead will be
translated into bidding units to define a bidder\'s initial maximum
eligibility. The total upfront payment defines the maximum number of
bidding units on which the applicant will initially be permitted to bid.
As there is no provision for increasing a bidder\'s maximum eligibility
during the course of an auction (as described under "Auction Stages" as
set forth in Section IV.A.4, prospective bidders are cautioned to
calculate their upfront payments carefully. The total upfront payment
does not define the total dollars a bidder may bid on any given license.

In order to ensure that the auction closes within a reasonable period of
time, an activity rule requires bidders to bid actively throughout the
auction, rather than wait until the end before participating. Bidders
are required to be active on a specific percentage of their maximum
eligibility during each round of the auction.

A bidder\'s activity level in a round is the sum of the bidding units
associated with licenses on which the bidder is active. A bidder is
considered active on a license in the current round if it is either the
high bidder at the end of the previous bidding round and does not
withdraw the high bid in the current round, or if it submits an
acceptable bid in the current round (*see* "Minimum Accepted Bids" in
Section IV.B.3, *below*). The minimum required activity level is
expressed as a percentage of the bidder\'s maximum bidding eligibility,
and increases by stage as the auction progresses. Because these
procedures have proven successful in maintaining the pace of previous
auctions as set forth under "Auction Stages" in Section IV.A.4 and
"Stage Transitions" in Section IV.A.5, *below*, we adopt them for
Auction No. 31.

### Activity Rule Waivers and Reducing Eligibility

In the *Auction No. 31 Comment Public Notice*, we proposed that each
bidder in the auction would be provided five activity rule waivers that
may be used in any round during the course of the auction.[^46] We
received no comment on this issue. [^47]

Based upon our experience in previous auctions, we adopt our proposal
that each bidder be provided five activity rule waivers that may be used
in any round during the course of the auction. Use of an activity rule
waiver preserves the bidder\'s current bidding eligibility despite the
bidder\'s activity in the current round being below the required minimum
level. An activity rule waiver applies to an entire round of bidding and
not to a particular license. We are satisfied that our practice of
providing five waivers over the course of the auction provides a
sufficient number of waivers and maximum flexibility to the bidders,
while safeguarding the integrity of the auction.

The FCC automated auction system assumes that bidders with insufficient
activity would prefer to use an activity rule waiver (if available)
rather than lose bidding eligibility. Therefore, the system will
automatically apply a waiver (known as an "automatic waiver") at the end
of any round where a bidder\'s activity level is below the minimum
required unless: (1) there are no activity rule waivers available; or
(2) the bidder overrides the automatic application of a waiver by
reducing eligibility, thereby meeting the minimum requirements.

A bidder with insufficient activity that wants to reduce its bidding
eligibility rather than use an activity rule waiver must affirmatively
override the automatic waiver mechanism during the round by using the
reduce eligibility function in the software. In this case, the bidder\'s
eligibility is permanently reduced to bring the bidder into compliance
with the activity rules as described in "Auction Stages" (*see* Section
IV.A.4 discussion below). Once eligibility has been reduced, a bidder
will not be permitted to regain its lost bidding eligibility.

Finally, a bidder may proactively use an activity rule waiver as a means
to keep the auction open without placing a bid. If a bidder submits a
proactive waiver (using the proactive waiver function in the bidding
software) during a round in which no bids are submitted, the auction
will remain open and the bidder\'s eligibility will be preserved. An
automatic waiver invoked in a round in which there are no new valid bids
or withdrawals will not keep the auction open.

### Auction Stages

In the *Auction No. 31 Comment Public Notice*, we proposed to conduct
the auction in three stages and employ an activity rule. We further
proposed that, in each round of Stage One, a bidder desiring to maintain
its current eligibility would be required to be active on licenses
encompassing at least 50 percent of its current bidding eligibility.
[^48] In each round of Stage Two, a bidder desiring to maintain its
current eligibility would be required to be active on at least 80
percent of its current bidding eligibility. Finally, we proposed that a
bidder in Stage Three, in order to maintain eligibility, would be
required to be active on 100 percent of its current bidding
eligibility.[^49] We received no comment on these proposals.[^50]

We conclude that the auction will be composed of three stages, which are
each defined by an increasing activity rule. We will adopt our proposals
for the activity rules. Below are the activity levels for each stage of
the auction. The FCC reserves the discretion to further alter the
activity percentages before and/or during the auction.

**Stage One**: During the first stage of the auction, a bidder desiring
to maintain its current eligibility will be required to be active on
licenses that represent at least 50 percent of its current bidding
eligibility in each bidding round. Failure to maintain the required
activity level will result in a reduction in the bidder\'s bidding
eligibility in the next round of bidding (unless an activity rule waiver
is used). During Stage One, reduced eligibility for the next round will
be calculated by multiplying the sum of bidding units of the bidder's
standing high bids and valid bids during the current round by two.

**Stage Two**: During the second stage of the auction, a bidder desiring
to maintain its current eligibility is required to be active on 80
percent of its current bidding eligibility. Failure to maintain the
required activity level will result in a reduction in the bidder\'s
bidding eligibility in the next round of bidding (unless an activity
rule waiver is used). During Stage Two, reduced eligibility for the next
round will be calculated by multiplying the sum of bidding units of the
bidder's standing high bids and valid bids during the current round by
five-fourths (5/4).

**Stage Three**: During the third stage of the auction, a bidder
desiring to maintain its current eligibility is required to be active on
100 percent of its current bidding eligibility. Failure to maintain the
required activity level will result in a reduction in the bidder\'s
bidding eligibility in the next round of bidding (unless an activity
rule waiver is used). In this final stage, reduced eligibility for the
next round will be set at current round activity.

**CAUTION:** Since activity requirements increase in each auction stage,
bidders must carefully check their current activity during the bidding
period of the first round following a stage transition. This is
especially critical for bidders that have standing high bids and do not
plan to submit new bids. In past auctions, some bidders have
inadvertently lost bidding eligibility or used an activity rule waiver
because they did not re-verify their activity status at stage
transitions. Bidders may check their activity against the required
minimum activity level by using the bidding software\'s bidding module.

Because the foregoing procedures have proven successful in maintaining
proper pace in previous auctions, we adopt them for Auction No. 31.

### Stage Transitions

In the *Auction No. 31 Comment Public Notice*, we proposed that the
auction would generally advance to the next stage (*i.e.*, from Stage
One to Stage Two, and from Stage Two to Stage Three) when the auction
activity level, as measured by the percentage of bidding units receiving
new high bids, is below 10 percent for three consecutive rounds of
bidding in each stage. However, we further proposed that the Bureau
would retain the discretion to change stages unilaterally by
announcement during the auction. This determination, we proposed, would
be based on a variety of measures of bidder activity, including, but not
limited to, the auction activity level, the percentages of licenses (as
measured in bidding units) on which there are new bids, the number of
new bids, and the percentage increase in revenue.[^51] We received no
comments on this subject.

We adopt our proposal. Thus, the auction will start in Stage One. Under
the FCC\'s general guidelines the auction will start in Stage One and
will advance to the next stage (*i.e.*, from Stage One to Stage Two, and
from Stage Two to Stage Three) when, in each of three consecutive rounds
of bidding, the high bid has increased on 10 percent or less of the
licenses being auctioned (as measured in bidding units). However, the
Bureau will retain the discretion to regulate the pace of the auction by
announcement. This determination will be based on a variety of measures
of bidder activity, including, but not limited to, the auction activity
level, the percentages of licenses (as measured in bidding units) on
which there are new bids, the number of new bids, and the percentage
increase in revenue. We believe that these stage transition rules,
having proven successful in prior auctions, are appropriate for use in
Auction No. 31.

### Auction Stopping Rules

For Auction No. 31, the Bureau proposed to employ a simultaneous
stopping rule.[^52] The Bureau also sought comment on a modified version
of the simultaneous stopping rule. The modified version of the stopping
rule would close the auction for all licenses after the first round in
which no bidder submits a proactive waiver, a withdrawal, or a new bid
on any license on which it is not the standing high bidder. Thus, absent
any other bidding activity, a bidder placing a new bid on a license for
which it is the standing high bidder would not keep the auction open
under this modified stopping rule. The Bureau further sought comment on
whether this modified stopping rule should be used unilaterally or only
in stage three of the auction.

The Bureau further proposed retaining the discretion to keep an auction
open even if no new acceptable bids or proactive waivers are submitted
and no previous high bids are withdrawn. In addition, we proposed that
the Bureau reserve the right to declare that the auction will end after
a specified number of additional rounds ("special stopping rule"). If
the Bureau invokes this special stopping rule, it will accept bids in
the final round(s) only for licenses on which the high bid increased in
at least one of the preceding specified number of rounds. We proposed to
exercise this option only in circumstances such as where the auction is
proceeding very slowly, where there is minimal overall bidding activity
or where it appears likely that the auction will not close within a
reasonable period of time.[^53] We received no comment on these issues.

We adopt our proposals concerning the stopping rule. Adoption of these
rules, we believe, is most appropriate for Auction No. 31 because our
experience in prior auctions demonstrates that the simultaneous stopping
rule balances the interests of administrative efficiency and maximum
bidder participation. The substitutability between and among licenses in
different geographic areas and the importance of preserving the ability
of bidders to pursue backup strategies support the use of a simultaneous
stopping rule.

Under the simultaneous stopping rule, bidding will remain open on all
licenses until bidding stops on every license. The auction will close
for all licenses when one round passes during which no bidder submits a
new acceptable bid on any license, applies a proactive waiver, or
withdraws a previous high bid. After the first such round, bidding
closes simultaneously on all licenses. In addition, the Bureau retains
the discretion to close the auction for all licenses after the first
round in which no bidder submits a proactive waiver, a withdrawal, or a
new bid on any license on which it is not the standing high bidder.
Under this modified stopping rule, absent any other bidding activity, a
bidder placing a new bid on a license for which it is the standing high
bidder would not keep the auction open under this stopping rule
procedure. We will notify bidders in advance of implementing any change
to our simultaneous stopping rule.

The Bureau also retains the discretion to keep the auction open even if
no new acceptable bids or proactive waivers are submitted, and no
previous high bids are withdrawn in a round. In this event, the effect
will be the same as if a bidder had submitted a proactive waiver. Thus,
the activity rule will apply as usual, and a bidder with insufficient
activity will either lose bidding eligibility or use an activity rule
waiver (if it has any left).

Further, in its discretion, the Bureau reserves the right to invoke the
"special stopping rule," whereby it will accept bids in the final
round(s) only for licenses on which the high bid increased in at least
one of the preceding specified number of rounds. Before exercising this
option, the Bureau is likely to attempt to increase the pace of the
auction by, for example, moving the auction into the next stage (where
bidders would be required to maintain a higher level of bidding
activity), increasing the number of bidding rounds per day.

### Auction Delay, Suspension, or Cancellation 

In the *Auction No. 31 Comment Public Notice*, we proposed that, by
public notice or by announcement during the auction, the Bureau may
delay, suspend, or cancel the auction in the event of natural disaster,
technical obstacle, evidence of an auction security breach, unlawful
bidding activity, administrative or weather necessity, or for any other
reason that affects the fair and competitive conduct of competitive
bidding.[^54]

Because this approach has proven effective in resolving exigent
circumstances in previous auctions, we will adopt our proposed auction
cancellation rules. By public notice or by announcement during the
auction, the Bureau may delay, suspend or cancel the auction in the
event of natural disaster, technical obstacle, evidence of an auction
security breach, unlawful bidding activity, administrative or weather
necessity, or for any other reason that affects the fair and competitive
conduct of competitive bidding. In such cases, the Bureau, in its sole
discretion, may elect to: resume the auction starting from the beginning
of the current round; resume the auction starting from some previous
round; or cancel the auction in its entirety. Network interruption may
cause the Bureau to delay or suspend the auction. We emphasize that
exercise of this authority is solely within the discretion of the
Bureau, and its use is not intended to be a substitute for situations in
which bidders may wish to apply their activity rule waivers.

## Bidding Procedures

### Round Structure

The initial bidding schedule will be announced in the public notice
listing the qualified bidders which is released approximately 10 days
before the start of the auction. This public notice will be included
with the registration mailings. The round structure for each bidding
round contains a single bidding round followed by the release of the
round results. Multiple bidding rounds may be conducted in a given day.
Details regarding round results formats and locations will be included
in the Qualified Bidder Public Notice.

The FCC has discretion to change the bidding schedule in order to foster
an auction pace that reasonably balances speed with the bidders\' need
to study round results and adjust their bidding strategies. The FCC may
increase or decrease the amount of time for the bidding rounds and
review periods, or the number of rounds per day, depending upon the
bidding activity level and other factors.

### Reserve Price or Minimum Opening Bid

*Background*. The Balanced Budget Act of 1997 calls upon the Commission
to prescribe methods by which a reasonable reserve price will be
required or a minimum opening bid established when FCC licenses are
subject to auction (*i.e.*, because they are mutually exclusive), unless
the Commission determines that a reserve price or minimum opening bid is
not in the public interest.[^55] Consistent with this mandate, the
Commission directed the Bureau to seek comment on the use of a minimum
opening bid and/or reserve price prior to the start of each
auction.[^56] Among other factors, the Bureau must consider the amount
of spectrum being auctioned, levels of incumbency, the availability of
technology to provide service, the size of the geographic service areas,
the extent of interference with other spectrum bands, and any other
relevant factors that could have an impact on valuation of the spectrum
being auctioned.[^57] The Commission concluded that the Bureau should
have the discretion to employ either or both of these mechanisms for
future auctions.[^58]

In the *Auction No. 31 Comment Public Notice*, the Bureau proposed to
establish minimum opening bids for Auction No. 31 and to retain
discretion to lower the minimum opening bids.[^59] Specifically, for
Auction No. 31, the Commission proposed calculating the minimum opening
bid based on information available in the form of a Congressional
estimate of the value of the spectrum.

In its comments, U S West argues that the proposed minimum opening bid
amounts have failed to account for the "overly stringent" limitations
adopted in the *700 MHz First Report & Order* on out-of-band emissions
("OOBE") and permissible transmit power.[^60] We are not persuaded that
the proposed minimum opening bids are too high. We note that in
establishing OOBE, the Commission took into account the impact of
limitations on interference from new commercial licensees on public
safety service licensees.[^61] The Commission stated: "\[W\]e recognize
the need to adopt technical rules that provide adequate protection to
public safety entities operating in this band. We are mindful, however
that Congress also intended that we establish rules that will enable
viable commercial operations here."[^62] Thus, the Commission set OOBE
limits that, while achieving the primary goal of protecting public
safety, also struck a reasonable balance between protecting public
safety and maintaining the commercial viability of this band.

Further, we note that no other parties commented on either the OOBE and
transmit power limits or on the proposed minimum opening bids.
Significantly, U S West did not submit an alternative proposal or
substantiate its position with an alternate valuation or quantitative
analysis. Moreover, U S West did not even comment on this issue in the
service rule proceeding. Taking all of these factors into account, we
will adopt the minimum opening bids, as proposed, for the licenses in
Auction No. 31, which are reducible at the discretion of the Bureau.
Congress has enacted a presumption that unless the Commission determines
otherwise, minimum opening bids or reserve prices are in the public
interest.[^63] Based on our experience in using minimum opening bids in
other auctions, we believe that minimum opening bids speed the course of
the auction and ensure that valuable assets are not sold for nominal
prices, without unduly interfering with the efficient assignment of
licenses.[^64]

### Bid Increments and Minimum Accepted Bids

In the *Auction No. 31 Comment Public Notice*, we proposed to use a
smoothing methodology to calculate minimum bid increments.[^65] We
further proposed to retain the discretion to change the minimum bid
increment if circumstances so dictate.[^66] We received no comment on
this issue.

We will adopt our proposal for a smoothing formula. The smoothing
methodology is designed to vary the increment for a given license
between a maximum and minimum value based on the bidding activity on
that license. This methodology allows the increments to be tailored to
the activity level of a license, decreasing the time it takes for active
licenses to reach their final value. The formula used to calculate this
increment is included as Attachment G.

We adopt our proposal of initial values for the maximum of 0.2, or 20
percent of the license value, and a minimum of 0.1, or 10 percent of the
license value. The Bureau retains the discretion to change the minimum
bid increment if it determines that circumstances so dictate. The Bureau
will do so by announcement in the Automated Auction System. Under its
discretion, the Bureau may also implement an absolute dollar floor for
the bid increment to further facilitate a timely close of the auction.
The Bureau may also use its discretion to adjust the minimum bid
increment without prior notice if circumstances warrant. As an
alternative approach, the Bureau may, in its discretion, adjust the
minimum bid increment gradually over a number of rounds as opposed to
single large changes in the minimum bid increment (*e.g*., by raising
the increment floor by one percent every round over the course of ten
rounds). The Bureau also retains the discretion to use alternate
methodologies, such as a flat percentage increment for all licenses, for
Auction No. 31 if circumstances warrant.

### High Bids

Each bid will be date- and time-stamped when it is entered into the FCC
computer system. In the event of tie bids, the Commission will identify
the high bidder on the basis of the order in which the Commission
receives bids. The bidding software allows bidders to make multiple
submissions in a round. As each bid is individually date- and
time-stamped according to when it was submitted, bids submitted by a
bidder earlier in a round will have an earlier date and time stamp than
bids submitted later in a round.

### Bidding

During a bidding round, a bidder may submit bids for as many licenses as
it wishes, subject to its eligibility, as well as withdraw high bids
from previous bidding rounds, remove bids placed in the same bidding
round, or permanently reduce eligibility. Bidders also have the option
of making multiple submissions and withdrawals in each bidding round. If
a bidder submits multiple bids for a single license in the same round,
the system takes the last bid entered as that bidder\'s bid for the
round, and the date- and time-stamp of that bid reflects the latest time
the bid was submitted.

Please note that all bidding will take place remotely either through the
automated bidding software or by telephonic bidding. (Telephonic bid
assistants are required to use a script when entering bids placed by
telephone. Telephonic bidders are therefore reminded to allow sufficient
time to bid by placing their calls well in advance of the close of a
round. Normally, four to five minutes are necessary to complete a bid
submission.) There will be no on-site bidding during Auction No. 31.

A bidder\'s ability to bid on specific licenses in the first round of
the auction is determined by two factors: (1) the licenses applied for
on FCC Form 175; and (2) the upfront payment amount deposited. The bid
submission screens will be tailored for each bidder to include only
those licenses for which the bidder applied on its FCC Form 175. A
bidder also has the option to further tailor its bid submission screens
to call up specified groups of licenses.

The bidding software requires each bidder to login to the FCC auction
system during the bidding round using the FCC account number, bidder
identification number, and the confidential security codes provided in
the registration materials. Bidders are strongly encouraged to download
and print bid confirmations [after]{.underline} they submit their bids.

The bid entry screen of the automated auction system software for
Auction No. 31 allows bidders to place multiple increment bids, which
will let bidders increase high bids from one to nine bid increments. A
single bid increment is defined as the difference between the standing
high bid and the minimum acceptable bid for a license. The bidding
software will display the bid increment for each license.

To place a bid on a license, the bidder must increase the standing high
bid by one to nine times the bid increment. This is done by entering a
whole number between 1 and 9 in the bid increment multiplier (Bid Mult)
field in the software. This value will determine the amount of the bid
(Amount Bid) by multiplying the bid increment multiplier by the bid
increment and adding the result to the high bid amount according to the
following formula:

**Amount Bid = High Bid + (Bid Mult \* Bid Increment)**

Thus, bidders may place a bid that exceeds the standing high bid by
between one and nine times the bid increment. For example, to bid the
minimum acceptable bid, which is equal to one bid increment, a bidder
will enter "1" in the bid increment multiplier column and press submit.

For any license on which the FCC is designated as the high bidder
(*i.e.*, a license that has not yet received a bid in the auction or
where the high bid was withdrawn and a new bid has not yet been placed),
bidders will be limited to bidding only the minimum acceptable bid. In
both of these cases no increment exists for the licenses, and bidders
should enter "1" in the Bid Mult field. Note that in this case, any
whole number between 1 and 9 entered in the multiplier column will
result in a bid value at the minimum acceptable bid amount. Finally,
bidders are cautioned in entering numbers in the Bid Mult field because,
as explained in the following section, a high bidder that withdraws its
standing high bid from a previous round, even if mistakenly or
erroneously made, is subject to bid withdrawal payments.

### Bid Removal and Bid Withdrawal

In the *Auction No. 31 Comment Public Notice*, we proposed bid removal
and bid withdrawal rules.[^67] With respect to bid withdrawals, we
proposed limiting each bidder to withdrawals in no more than two rounds
during the course of the auction. The two rounds in which withdrawals
are utilized, we proposed, would be at the bidder\'s discretion. We
received no comment on this issue.

In previous auctions, we have detected bidder conduct that, arguably,
may have constituted strategic bidding through the use of bid
withdrawals. While we continue to recognize the important role that bid
withdrawals play in an auction, *i.e.*, reducing risk associated with
efforts to secure various geographic area licenses in combination, we
conclude that, for Auction No. 31, adoption of a limit on their use to
two rounds is the most appropriate outcome. By doing so we believe we
strike a reasonable compromise that will allow bidders to use
withdrawals. Our decision on this issue is based upon our experience in
prior auctions, particularly the PCS D, E and F block auctions, and 800
MHz SMR auction, and is in no way a reflection of our view regarding the
likelihood of any speculation or "gaming" in this auction.

The Bureau will therefore limit the number of rounds in which bidders
may place withdrawals to two rounds. These rounds will be at the
bidder\'s discretion and there will be no limit on the number of bids
that may be withdrawn in either of these rounds. Withdrawals during the
auction will still be subject to the bid withdrawal payments specified
in 47 C.F.R. § 1.2104(g). Bidders should note that abuse of the
Commission\'s bid withdrawal procedures could result in the denial of
the ability to bid on a market. If a high bid is withdrawn, the license
will be offered in the next round at the second highest bid price, which
may be less than, or equal to, in the case of tie bids, the amount of
the withdrawn bid, without any bid increment. The Commission will serve
as a "place holder" on the license until a new acceptable bid is
submitted on that license.

***Procedures*.** Before the close of a bidding round, a bidder has the
option of removing any bids placed in that round. By using the "remove
bid" function in the software, a bidder may effectively "unsubmit" any
bid placed within that round. A bidder removing a bid placed in the same
round is not subject to withdrawal payments. Removing a bid will affect
a bidder\'s activity for the round in which it is removed, *i.e.* a bid
that is subsequently removed does not count toward the bidder's activity
requirement. This procedure, about which we received no comments, will
enhance bidder flexibility during the auction. Therefore, we will adopt
these procedures for Auction No. 31.

Once a round closes, a bidder may no longer remove a bid. However, in
the next round, a bidder may withdraw standing high bids from previous
rounds using the "withdraw bid" function (assuming that the bidder has
not exhausted its withdrawal allowance). A high bidder that withdraws
its standing high bid from a previous round during the auction is
subject to the bid withdrawal payments specified in 47 C.F.R. §
1.2104(g). The procedure for withdrawing a bid and receiving a
withdrawal confirmation is essentially the same as the bidding procedure
described in "High Bids," Section IV.B.4.

***Calculation.*** Generally, the Commission imposes payments on bidders
that withdraw high bids during the course of an auction.[^68]
Specifically, 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.[^69] 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, less the three percent interim 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.

### Special 30 MHz Nationwide Bid Withdrawal Procedure

#### Background

For the licenses being offered in Auction No. 31, we noted that there
may be entities whose business plans are such that they may not wish to
acquire any licenses if they are unable to aggregate them all.[^70] Our
current rules are designed to facilitate the aggregation of licenses,
and we believe they are adequate to facilitate the aggregation of all
the 10 MHz or all 20 MHz licenses or any subset thereof. The bid
withdrawal provisions of our Part 1 rules could, however, potentially
discourage bidders from attempting a 30 MHz nationwide aggregation in an
auction where there are divergent business plans. This is because, were
such a large aggregation attempt ultimately to fail, a bidder might be
left with a potentially large subset of licenses that it does not wish
to win given its all-or-nothing strategy. The bidder would then be
forced to withdraw all of the high bids it holds and pay a bid
withdrawal payment. We therefore proposed and have determined to adopt a
nationwide bid withdrawal procedure for the 747-762 MHz and 777-792 MHz
bands to limit the exposure of bidders seeking a 30 MHz nationwide
aggregation.

**b. Discussion**

In its comments, PSINet asks that we allow applicants that choose to bid
for a 30 MHz nationwide aggregation to maintain the ability to also bid
on regional 30 MHz aggregations and that the "Commission adopt a similar
scheme for entities that desire to participate in regional 30 MHz
aggregations to that proposed by the Commission for the nationwide 30
MHz aggregation."[^71] Cisco submitted reply comments in which it
strongly urged the Commission to limit withdrawal penalties for regional
30 MHz bidders by adopting the bidding rule proposed by PSINet.[^72] On
reply, PSINet emphasizes that the Commission should apply limited
withdrawal penalties to applicants seeking to aggregate 30 MHz by
obtaining both the 10 MHz and 20 MHz licenses in a region[^73] and
contends that it is "extremely unlikely that an entity will win a
nationwide 30 MHz aggregation."[^74] BAM takes the opposite position in
its reply comments. According to BAM, we should not change long-standing
auction procedures for either nationwide or regional bidders.[^75]
AT&T's reply comments strongly suggest that the Commission should reject
PSINet's request to impose reduced bid withdrawal penalties on bidders
for regional, rather than nationwide, 30 MHz licenses.[^76]

In the *700 MHz First Report & Order*, the Commission directed the
Bureau to create a modified withdrawal procedure for those bidders
seeking a 30 megahertz nationwide aggregation, *i.e.*, those who have
the greatest exposure under the standard bid withdrawal payment
rule.[^77] Neither PSINet nor Cisco presents compelling reasons why the
Bureau can or should apply the special rule to those bidders that face
less exposure. In fact, bidders in the past auctions have successfully
aggregated licenses under the existing withdrawal rules. However, the
Bureau notes that the existence of all-or-nothing nationwide business
plans presents a unique situation for bidders. Likewise, BAM has not
persuaded the Bureau to exercise its limited discretion not to make this
procedure available to 30 MHz nationwide bidders.[^78] Accordingly, the
Bureau will adopt the bid withdrawal provisions as stated in this
section.

Bidders not choosing to avail themselves of the nationwide bid
withdrawal provision may still aggregate licenses subject to our
standard bid withdrawal provisions.[^79] The nationwide bid withdrawal
procedure is made available to limit the exposure associated with bid
withdrawal payments for those bidders whose business plans require an
all-or-nothing aggregation of all licenses in the auction, while still
discouraging insincere bidding. Under the nationwide bid withdrawal
procedure, an applicant will be required to declare on its short-form
application whether it is seeking a 30 MHz nationwide aggregation and
wishes to be subject to the nationwide bid withdrawal provisions.
Instructions for doing so will be part of the electronic filing system
for the short-form application.

An applicant that chooses to be a nationwide bidder will be required to
be active in each round of bidding on all licenses (a 100 percent
activity requirement). A nationwide bidder must win either the entire 30
MHz nationwide aggregation (all 12 licenses) or no licenses at all.
(Note that a nationwide bidder does not necessarily have to be the
standing high bidder on every license at the end of each round in order
to fulfill the 100 percent activity requirement. Activity on a license
in a given round is defined as a bidder either holding the high bid from
the previous round or placing a valid bid in the current round.)
Nationwide bidders that decide to no longer pursue the nationwide
aggregation and hold any high bids may withdraw those high bids subject
to the modified withdrawal payment described below. Once a nationwide
bidder withdraws a high bid from any market, it must withdraw any
remaining high bids it holds from all other markets. (The automated
auction system will allow a nationwide bidder only to withdraw all of
its standing high bids and not any subset thereof.) The nationwide
bidder will then have its eligibility reduced to zero, thus making the
bidder ineligible to continue bidding for any licenses.

If a 30 MHz nationwide bidder withdraws, eligibility, activity rule
waivers, and withdrawal round allowances will be restored to beginning
auction levels for all other bidders except for any nationwide bidders
that have withdrawn from the auction by either withdrawing their high
bids or failing to meet the activity requirement (and thus having their
high bids withdrawn for them). Without this restoration, few bidders
would likely be eligible to bid on licenses withdrawn late in the
auction.[^80] Upon the withdrawal of a nationwide bidder, the auction
will pause for 24 hours to allow for the restoration of eligibility,
activity rules waivers, and withdrawal allowances, and for the
notification of all auction participants that such a withdrawal has
occurred. The Bureau will contact the contact person listed on the FCC
Form 175 for each qualified bidder that is eligible for the restoration
of eligibility. Note that non-nationwide bidders that have already
dropped out of the auction will also have their eligibility, activity
rules waivers, and withdrawal allowances restored, and any nationwide
bidders still in the auction will have their activity rule waivers
restored.

[]{.mark}

The automated auction system will not allow bidders that identify
themselves as nationwide bidders to submit a group of bids that does not
result in the bidder being active on all licenses in the auction.
Nationwide bidders, like all other bidders in the auction, will be
provided 5 activity rule waivers to preserve their maximum eligibility
level in the instance that they do not meet the 100% activity
requirement. In each round of bidding that a nationwide bidder fails to
meet the activity rule requirement, an automatic waiver will be applied
to preserve the bidder's maximum eligibility. If a nationwide bidder
fails to meet the activity rule requirement and has no activity rule
waivers remaining, the bidder's maximum eligibility will be reduced to
zero and any high bids will automatically be withdrawn. In such a case,
the system will treat the bidder as if the bidder had placed a
withdrawal itself --- making the bidder subject to the special
withdrawal payments --- and the auction will pause to allow for the
restoration of eligibility, activity rules waivers, and withdrawal
allowances, as described above.

The bid withdrawal payment for a 30 MHz nationwide bidder that withdraws
from the auction will be calculated as the difference between the sum of
the standing high bids that the nationwide bidder withdraws and the sum
of the subsequent winning bids on those withdrawn licenses. In addition,
nationwide bid withdrawal payments will be limited to 5 percent of the
aggregate withdrawn bids. The withdrawn licenses will be offered in the
next round at the second highest bid price, which may be less than or
equal to the amount of the withdrawn bid, without any bid increment. The
FCC will serve as the \"place holder\" on the license until a new
acceptable bid is submitted.

> In the *700 MHz First Report & Order*, the Commission stated that
> nationwide bidders cannot win anything less than a nationwide 30 MHz
> aggregation.[^81] Thus, in the event that there is no other bidding
> activity in a given round so that the auction would otherwise close
> under the simultaneous stopping rule, but a nationwide bidder holds
> the high bid on licenses that comprise less than a 30 MHz nationwide
> aggregation, the auction will not close. Rather, the auction will
> proceed another round and the nationwide bidder (and all other bidders
> failing to meet the activity requirement) will use an activity rule
> waiver, if any remain. Once all the nationwide bidder's activity rule
> waivers are used, its standing high bids will be withdrawn, and
> eligibility will be restored to other bidders, as described above.

In its comments, BAM asks that if the Bureau decides to adopt a special
withdrawal penalty rule for nationwide bidders, any such bidder should
not be allowed to have any affiliation or bidding arrangement with any
other bidder that is pursuing a regional or individual market bidding
strategy. We agree with BAM on this point. In the Public Notice, we
stated that any applicant who chooses nationwide bidder status will not
be allowed to bid on anything other than all licenses comprising the 30
MHz nationwide aggregation.[^82] We will not allow a bidder to do
indirectly that which we have directly prohibited. Thus, any bidder who
seeks nationwide bidding status shall not have any controlling interest
in, or affiliate relationship with, any other applicant or any agreement
of any kind relating to the licenses being auctioned.

AT&T raises a similar point in seeking clarification that upon
withdrawal of a nationwide bidder from the auction, the eligibility of
all other bidders, except "bidding partners" of the withdrawing
nationwide bidder, will be restored to beginning auction levels.[^83]
Since nationwide bidders are not permitted to enter into agreements
regarding the licenses, AT&T's point is moot.

In reply comments, Omnipoint states that the bid withdrawal process for
a nationwide bidder is not yet sufficiently clear.[^84] In support of
its position, Omnipoint states that it is unclear whether the FCC
requires nationwide bidders to exercise bid withdrawal. Contrary to
Omnipoint's contention, the Commission clearly stated: "An applicant
that chooses to be such a nationwide bidder would not be allowed to bid
on anything other than all licenses comprising the 30 megahertz
nationwide aggregation, and must win either this nationwide aggregation
or no licenses at all. Thus, once such a nationwide bidder withdraws
from a market, it must withdraw from all markets and will be ineligible
to continue bidding for any licenses."[^85] If a nationwide bidder has
standing high bids on some licenses but decides not to continue bidding
on other licenses, then the bidder withdraws its standing high bids.
This may be accomplished one of two ways: (1) A nationwide bidder may
withdraw standing high bids using the bidding software. The bidding
software will only allow a nationwide bidder to remove all or none of
its standing high bids. Once a nationwide bidder exercises this option,
it is out of the auction. (2) A nationwide bidder may decide not to bid
on licenses on which it is not already the standing high bidder. Once
such a bidder's activity rule waivers expire, the FCC will withdraw the
standing high bids for the bidder --- which has the same effect as if
the bidder had withdrawn its own bids.

The Bureau provides the following additional information in response to
Omnipoint's Reply Comments. When a 30 megahertz nationwide bidder
withdraws a standing high bid, initial maximum eligibility, activity
rule waivers, and withdrawal allowances for all other bidders are
restored to beginning auction levels, except for those nationwide
bidders that have withdrawn from the auction. Once a nationwide bidder
is out of the auction, it cannot have its eligibility restored.
Eligibility restoration does not affect the activity requirements of the
different stages. For example, if a bidder has eligibility restored due
to the withdrawal from the auction of a nationwide bidder, the bidder
with restored eligibility would be subject to the activity rule of
whatever stage the auction is in when the eligibility is restored.
Finally, we reiterate that the activity rules for Stages I, II, and III
do not apply to nationwide bidders. A nationwide bidder will not be
allowed to be active on anything less than all licenses comprising the
30 megahertz nationwide aggregation. The bidder must be active on every
license in every round, or employ an activity rule waiver.

Also, PSINet seeks clarification on two items. First, PSINet asks that
the Bureau confirm that the withdrawal payment would be calculated as
the difference between the sum of the withdrawn bids and the sum of the
"subsequent winning bids" on the withdrawn licenses.[^86] PSI Net is
correct. The withdrawal payment would be calculated based on the amount
of the winning bids and not based upon the subsequent high bids in the
next round of bidding.[^87] PSI Net also seeks clarification that the
withdrawal penalty for a nationwide aggregation will be calculated using
the sum of all twelve withdrawn bids and the sum of subsequent
bids.[^88] In that regard, PSINet is incorrect. The withdrawal penalty
will be calculated using the sum of only the withdrawn standing high
bids and the sum of the subsequent winning bids for those licenses.[^89]

**8. Round Results**

Bids placed during a round will not be published until the conclusion of
that bidding period. After a round closes, the Commission will compile
reports of all bids placed, bids withdrawn, current high bids, new
minimum accepted bids, and bidder eligibility status (bidding
eligibility and activity rule waivers), and post the reports for public
access.[^90] Reports reflecting bidders\' identities and bidder
identification numbers for Auction No. 31 will be available before and
during the auction. Thus, bidders will know in advance of this auction
the identities of the bidders against which they are bidding.

### Auction Announcements

The FCC will use auction announcements to announce items such as
schedule changes and stage transitions. All FCC auction announcements
will be available on the FCC remote electronic bidding system, as well
as on the Internet.

### Maintaining the Accuracy of FCC Form 175 Information

As noted in Section II.E., after the short-form filing deadline,
applicants may make only minor changes to their FCC Form 175
applications. For example, permissible minor changes include deletion
and addition of authorized bidders (to a maximum of three) and certain
revisions to exhibits. Filers must make these changes on-line, and
submit a letter to:

Amy Zoslov, Chief,

Auctions and Industry Analysis Division,

Wireless Telecommunications Bureau,

Federal Communications Commission,

445 12^th^ Street, S.W., Washington, D.C. 20554

A separate copy of the letter should be mailed to Howard Davenport,
Auctions and Industry Analysis Division), briefly summarizing the
changes. Questions about other changes should be directed to Howard
Davenport, Auctions and Industry Analysis Division at (202) 418-0660.

# POST-AUCTION PROCEDURES

## Down Payments and Withdrawn Bid Payments

After bidding has ended, the Commission will issue a public notice
declaring the auction closed, identifying the winning bids and bidders
for each license, and listing bid withdrawal payments due.

Within ten business days after release of the auction closing public
notice, each winning bidder must submit sufficient funds (in addition to
its upfront payment) to bring its total amount of money on deposit with
the Government to 20 percent of its net winning bids (actual bids less
any applicable bidding credits). *See* 47 C.F.R. § 1.2107(b). In
addition, by the same deadline all bidders must pay any withdrawn bid
amounts due under 47 C.F.R. § 1.2104(g), as discussed in "Bid Removal
and Bid Withdrawal," Section IV.B.6. (Upfront payments are applied first
to satisfy any withdrawn bid liability, before being applied toward down
payments.)

## Long-Form Application 

Within ten business days after release of the auction closing public
notice, winning bidders must electronically submit a properly completed
long-form application and required exhibits for each 700 MHz band
license won through the auction. Winning bidders that are small
businesses or very small businesses must include an exhibit
demonstrating their eligibility for bidding credits. *See* 47 C.F.R. §
1.2112(b). Further filing instructions will be provided to auction
winners at the close of the auction.

## Default and Disqualification

Any high bidder that 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)
will be subject to the payments described in 47 C.F.R. § 1.2104(g)(2).
In such event the Commission may re-auction the license or offer it to
the next highest bidder (in descending order) at their final bid. *See*
47 C.F.R. § 1.2109(b) and (c). In addition, if a default or
disqualification involves gross misconduct, misrepresentation, or bad
faith by an applicant, the Commission may declare the applicant and its
principals ineligible to bid in future auctions, and may take any other
action that it deems necessary, including institution of proceedings to
revoke any existing licenses held by the applicant. *See* 47 C.F.R. §
1.2109(d).

## Refund of Remaining Upfront Payment Balance

All applicants that submitted upfront payments but were not winning
bidders for a 700 MHz license may be entitled to a refund of their
remaining upfront payment balance after the conclusion of the auction.
No refund will be made unless there are excess funds on deposit from
that applicant after any applicable bid withdrawal payments have been
paid.

Bidders that drop out of the auction completely may be eligible for a
refund of their upfront payments before the close of the auction.
However, bidders that reduce their eligibility and remain in the auction
are not eligible for partial refunds of upfront payments until the close
of the auction. Qualified bidders that have exhausted all of their
activity rule waivers, have no remaining bidding eligibility, and have
not withdrawn a high bid during the auction must submit a written refund
request which includes wire transfer instructions, a Taxpayer
Identification Number ("TIN"), and a copy of their bidding eligibility
screen print, to:

Federal Communications Commission

Financial Operations Center

Auctions Accounting Group

Shirley Hanberry

445 12th Street, S.W., Room 1-A824

Washington, D.C. 20554

Bidders are encouraged to file their refund information electronically
using the Refund Information portion of the FCC Form 175, but bidders
can also fax their request to the Auctions Accounting Group at (202)
418-2843. Once the request has been approved, a refund will be sent to
the party identified in the refund information.

> NOTE: Refund processing generally takes up to two weeks to complete.
> Bidders with questions about refunds should contact Michelle Bennett
> or Gail Glasser at (202) 418-1995.

**Media Contact:** Meribeth McCarrick at (202) 418-0654.

**Auctions and Industry Analysis Division:** Howard Davenport, Attorney,
Auctions Legal Branch at (202) 418-0660; Kathy Garland, Project Manager,
Auctions Operations Branch at (717) 338-2888, or Craig Bomberger,
Analyst, Auctions Operations Branch at (202) 418-0660.

**Commercial Wireless Division:** Roger Noel at (202) 418-0620.

**- FCC -**

# ATTACHMENT A

**Auction No. 31**

**Licenses to be Auctioned**

+-----+--------+------+----------+------+-------+--------+---------+
| *   | **Lic  | **L  | **Descr  | **Po | *     | **U    | **      |
| *Ec | ense** | icen | iption** | pula | *Bidd | pfront | Minimum |
| ono |        | se** |          | tion | ing** | Pay    | Opening |
| mic | **Num  |      |          | (199 |       | ment** | Bid**   |
| A   | bers** | *    |          | 0)** | **Un  |        |         |
| rea |        | *Ban |          |      | its** |        |         |
| G   |        | dwid |          |      |       |        |         |
| rou |        | th** |          |      |       |        |         |
| pin |        |      |          |      |       |        |         |
| g** |        | *    |          |      |       |        |         |
|     |        | *(MH |          |      |       |        |         |
|     |        | z)** |          |      |       |        |         |
+-----+--------+------+----------+------+-------+--------+---------+
| EAG | WXEA   | 10   | N        | 41   | 14,00 | \$14,0 | \$40,   |
| 701 | G701-C |      | ortheast | ,567 | 0,000 | 00,000 | 000,000 |
|     |        |      |          | ,654 |       |        |         |
+-----+--------+------+----------+------+-------+--------+---------+
| EAG | WXEA   | 10   | Mid-     | 42   | 14,00 | \$14,0 | \$40,   |
| 702 | G702-C |      | Atlantic | ,547 | 0,000 | 00,000 | 000,000 |
|     |        |      |          | ,218 |       |        |         |
+-----+--------+------+----------+------+-------+--------+---------+
| EAG | WXEA   | 10   | S        | 44   | 14,00 | \$14,0 | \$40,   |
| 703 | G703-C |      | outheast | ,516 | 0,000 | 00,000 | 000,000 |
|     |        |      |          | ,919 |       |        |         |
+-----+--------+------+----------+------+-------+--------+---------+
| EAG | WXEA   | 10   | Great    | 41   | 14,00 | \$14,0 | \$40,   |
| 704 | G704-C |      | Lakes    | ,560 | 0,000 | 00,000 | 000,000 |
|     |        |      |          | ,906 |       |        |         |
+-----+--------+------+----------+------+-------+--------+---------+
| EAG | WXEA   | 10   | Central  | 40   | 14,00 | \$14,0 | \$40,   |
| 705 | G705-C |      | /        | ,926 | 0,000 | 00,000 | 000,000 |
|     |        |      | Mountain | ,284 |       |        |         |
+-----+--------+------+----------+------+-------+--------+---------+
| EAG | WXEA   | 10   | Pacific  | 41   | 14,00 | \$14,0 | \$40,   |
| 706 | G706-C |      |          | ,427 | 0,000 | 00,000 | 000,000 |
|     |        |      |          | ,686 |       |        |         |
+-----+--------+------+----------+------+-------+--------+---------+
|     |        |      |          |      |       |        |         |
+-----+--------+------+----------+------+-------+--------+---------+
|     |        |      | Subtotal |      | 84,00 | \$84,0 | \$240,  |
|     |        |      |          |      | 0,000 | 00,000 | 000,000 |
+-----+--------+------+----------+------+-------+--------+---------+
|     |        |      |          |      |       |        |         |
+-----+--------+------+----------+------+-------+--------+---------+
| EAG | WXEA   | 20   | N        | 41   | 28,00 | \$28,0 | \$80,   |
| 701 | G701-D |      | ortheast | ,567 | 0,000 | 00,000 | 000,000 |
|     |        |      |          | ,654 |       |        |         |
+-----+--------+------+----------+------+-------+--------+---------+
| EAG | WXEA   | 20   | Mid-     | 42   | 28,00 | \$28,0 | \$80,   |
| 702 | G702-D |      | Atlantic | ,547 | 0,000 | 00,000 | 000,000 |
|     |        |      |          | ,218 |       |        |         |
+-----+--------+------+----------+------+-------+--------+---------+
| EAG | WXEA   | 20   | S        | 44   | 28,00 | \$28,0 | \$80,   |
| 703 | G703-D |      | outheast | ,516 | 0,000 | 00,000 | 000,000 |
|     |        |      |          | ,919 |       |        |         |
+-----+--------+------+----------+------+-------+--------+---------+
| EAG | WXEA   | 20   | Great    | 41   | 28,00 | \$28,0 | \$80,   |
| 704 | G704-D |      | Lakes    | ,560 | 0,000 | 00,000 | 000,000 |
|     |        |      |          | ,906 |       |        |         |
+-----+--------+------+----------+------+-------+--------+---------+
| EAG | WXEA   | 20   | Central  | 40   | 28,00 | \$28,0 | \$80,   |
| 705 | G705-D |      | /        | ,926 | 0,000 | 00,000 | 000,000 |
|     |        |      | Mountain | ,284 |       |        |         |
+-----+--------+------+----------+------+-------+--------+---------+
| EAG | WXEA   | 20   | Pacific  | 41   | 28,00 | \$28,0 | \$80,   |
| 706 | G706-D |      |          | ,427 | 0,000 | 00,000 | 000,000 |
|     |        |      |          | ,686 |       |        |         |
+-----+--------+------+----------+------+-------+--------+---------+
|     |        |      |          |      |       |        |         |
+-----+--------+------+----------+------+-------+--------+---------+
|     |        |      | Subtotal |      | 1     | \      | \$480,  |
|     |        |      |          |      | 68,00 | $168,0 | 000,000 |
|     |        |      |          |      | 0,000 | 00,000 |         |
+-----+--------+------+----------+------+-------+--------+---------+
|     |        |      |          |      |       |        |         |
+-----+--------+------+----------+------+-------+--------+---------+
|     |        |      | Total    |      | 2     | \      | \$720,  |
|     |        |      |          |      | 52,00 | $252,0 | 000,000 |
|     |        |      |          |      | 0,000 | 00,000 |         |
+-----+--------+------+----------+------+-------+--------+---------+

#  {#section-1 .unnumbered}

# Attachment B

FCC AUCTION SEMINAR REGISTRATION FORM

Auction No. 31

The FCC will sponsor a one-day seminar for the 700 MHz (Auction No. 31)
applicants. The seminar is free of charge and will provide information
about pre-auction procedures, service and auction rules, conduct of the
auction, and the FCC remote bidding software.

A maximum of two representatives from each company may attend on a
reservation basis. Additional representatives may attend on a
first-come, first-served basis until room capacity is filled. Additional
seating may be available on a stand-by basis the day of the seminar. The
seminar will be held:

**Thursday, March 30, 2000**

**Federal Communications Commission**

**445 12^th^ Street S.W.**

#### Washington, DC 20554 {#washington-dc-20554 .unnumbered}

**Registration 8:30 a.m. - 9:30 a.m.**

**Seminar 9:30 a.m. - 4 p.m.**

**If hotel accommodations are needed**

**Please contact 1-888-225-5322 (option #2) for a list of hotels in the
area**

**\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\***

**To register, complete the form below and**

**return by mail or fax to be received no later than**

**Tuesday, March 28, 2000,** to:

FCC Auction 31

Auctions Operations Branch

1270 Fairfield Road

Gettysburg, PA 17325-7245

FAX: 717-338-2850

Phone: 717-338-2888

I/We will attend the Auction No. 31 Seminar, scheduled for **Thursday,
March 30, 2000.**

Name of attendee:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name of attendee:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Company name:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Phone: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Fax:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

# Attachment C

**ELECTRONIC FILING AND REVIEW**

**OF THE FCC FORM 175**

Applicants must submit their FCC Form 175 applications electronically
using the Commission\'s remote access system. This system will generally
be available 24 hours per day. FCC Form 175 applications must be
submitted and confirmed by **5:30 p.m. ET on Monday, April 10, 2000.**
Late applications or unconfirmed submissions of electronic data will not
be accepted.

Applicants must press the **175 Submit** button on the *Submit* page to
successfully submit their FCC Form 175. The electronic filing process
consists of an initial filing period and a resubmission period to make
minor corrections. During each filing period, submitted applications may
be updated and amended multiple times until the filing deadline.

Applicants will need to meet the following minimum hardware and software
requirements:

**Minimum Hardware Requirements**

-   CPU: Intel Pentium

-   RAM: 16 MB (more recommended if you have multiple applications open)

-   Modem: v.32bis 14.4kbps Hayes compatible modem or faster (recommend
    56.6 Kbps)

-   Monitor: VGA or above

-   Mouse or other pointing device

**Minimum Software Requirements**

-   Operating System: Microsoft Windows 95 or 98

-   PPP (Point-to-Point Protocol) Dialer: Use the Dial-Up Networking
    feature included with Windows 95/98

-   Web Browser: Netscape Communicator 4.7 is recommended. However, you
    can also use Netscape Communicator 4.5, 4.51, or 4.61 (Internet web
    browser software).

**Note:** To download Netscape Communicator 4.7 free of charge, access
the Netscape download site at ***http://home.netscape.com/download/***

-   PDF Viewer: Adobe Acrobat Reader 3.0 or higher (available at
    ***http://www.adobe.com***)

-   If you wish to use the download feature in the Form 175 Review, you
    will need a .tar file extraction utility, e.g., Winzip (available at
    ***http://www.winzip.com***) or Pkzip for Windows (available at
    ***http://www.pkware.com/download.html***).

**Submitting FCC Form 175 Applications**

To submit FCC Form 175 applications electronically, you must first
connect to the FCC Network via a toll-free phone number (877-844-2788)
using Dial-Up Networking. Dial-Up Networking establishes a
point‑to‑point connection from your PC to the FCC Network. *This
point‑to‑point connection is not routed through the Internet*.

> **Note:** For instructions on how to connect to the FCC Network using
> Dial-Up Networking, see the *Accessing the FCC Network Using Windows
> 95/98* attachment.

After you have connected to the FCC Network, start your Netscape Web
browser. In your browser's *Location* field, enter
***http://wtbwww34.fcc.gov*** and then click **175 Submit**.

When uploading attachments in FCC Form 175 Submission, applicants may
use a variety of file formats - including Word, WordPerfect, Adobe PDF,
Excel, Lotus, and ASCII text - and should verify that the files contain
all exhibit information. Graphics file uploads (e.g., *.bmp*, *.tiff*,
*.jpg*) are not supported, and graphics images should not be imported
into any word processing files that are uploaded.

After you upload an attachment, check to see if it converted properly by
selecting the PDF filename in the rightmost column. The conversion
process generally completes within thirty minutes. If you are unable to
read this file after it has been converted, please do the following:

1\. Re-upload the attachment.

2\. If the file still has not converted properly, then simplify the
formatting of the file.

For example, if you are using a Table structure in a WordPerfect
document, remove the Table structure and leave the contents of the
table, then re-upload the attachment.

After you have successfully re-uploaded an attachment, please delete the
old, unreadable attachment files.

Applicants must press the **Submit Form 175** button on the *Submit*
page to successfully submit their FCC Form 175. During each filing
period, submitted applications may be updated and amended multiple times
until the filing deadline.

When you have finished, exit your Web browser; then disconnect from the
FCC Network.

**Reviewing FCC Form 175 Applications**

Once the FCC has completed the 175 Review process, you can review FCC
Form 175 applications electronically via the Internet. Start your
Netscape Web browser. In your browser's *Location* field, enter
***http://wtbwww15.fcc.gov*** and then click **175 Review**.

**Help**

For technical assistance with installing or using FCC software, contact
the FCC Technical Support Hotline at (202) 414‑1250 (V) or (202)
414-1255 (TTY). The FCC Technical Support Hotline is generally available
Monday through Friday, from 8 a.m. to 6 p.m. ET. *All calls to the FCC
Technical Support Hotline are recorded.*

# ATTACHMENT D

**GUIDELINES FOR COMPLETION**

**OF FCC FORM 175 AND EXHIBITS**

**A. FCC Form 175**

Because of the significance of the FCC Form 175 application to the
auction, bidders should especially note the following:

**Applicant Name:** Name given is used as your bidder name in the
auction.

**Address:** Give a street address (not a Post Office box number) for
the applicant, suitable for mail or private parcel delivery.

**Applicant Classification:** Applicants must indicate their legal
classification. The FCC Form 175 requires the applicant to classify
itself as an individual, joint venture, partnership, trust, corporation,
consortium, association, limited liability company (LLC) or government
entity.

**Applicant Status:** Applicants are also requested to indicate their
status as a rural telephone company, minority-owned business and/or
women-owned business, so that the FCC can monitor its performance in
promoting economic opportunities for these designated entities.

**Bidding Credit Eligibility:** Be advised that this is the sole
opportunity applicants have to elect small business or very small
business status and bidding credit level (if applicable), and there is
no opportunity to change the election once the short-form filing
deadline passes.

-   Small business or very small business applicants should enter the
    applicable bidding credit from the drop down menu. Applicants should
    be aware that this is the sole opportunity that they will have to
    elect the appropriate bidding credit.

**License Selection:** Applicants should identify all licenses on which
they want to be eligible to bid in the auction. Be advised that there is
no opportunity to change this list once the short-form filing deadline
passes. The FCC auction system will not accept bids on licenses for
which an applicant has not applied on its FCC Form 175.

**Authorized Bidders:** Applicants must list the name(s) of the
person(s) (no more than three) authorized to represent them at the
auction. Only those individuals listed on the FCC Form 175 will be
authorized to place or withdraw bids for the applicant during the
auction. **Note: Applicants may only share a common authorized bidder(s)
if each applicant has selected separate markets. *See* 47 CFR §
1.2105(c)**.

**Certifications:** Applicants should carefully read the list of
certifications on the FCC Form 175. These certifications help to ensure
a fair and competitive auction and require, among other things,
disclosure to the Commission of certain information on applicant
ownership and agreements or arrangements concerning the auction.
Submission of an FCC Form 175 application constitutes a representation
by the certifying official that he or she is an authorized
representative of the applicant, has read the form\'s instructions and
certifications, and that the contents of the application and its
attachments are true and correct. Submission of a false certification to
the Commission may result in penalties, including monetary forfeitures,
license forfeitures, ineligibility to participate in future auctions,
and/or criminal prosecution.

**Contact person/address:** If the Commission wishes to communicate with
the applicant by telephone or fax, those communications will be directed
to the contact person identified on the FCC Form 175. Space is provided
for an address, telephone number, fax number, and e-mail address. All
written communication and registration information will be directed to
the applicant\'s contact person at the address specified on the FCC Form
175. Applicants must provide a street address; no P.O. Box addresses may
be used.

**Completeness:** Applicants must submit all information required by the
FCC Form 175 and by applicable rules. Failure to submit required
information by the resubmission date will result in dismissal of the
application and inability to participate in the auction. *See* 47 C.F.R.
§ 1.2105(b).

**NOTE: Applicants must press the "Submit Form 175" button on the
"Submit" page to successfully submit their FCC Form 175.**

**Continuing Accuracy:** Each applicant is responsible for the
continuing accuracy and completeness of information furnished in the FCC
Form 175 and its exhibits. *See* 47 C.F.R. § 1.65. It is the FCC\'s
position that during the conduct of an auction, thirty business days
from a reportable change is a reasonable period of time. Applicants are
reminded that they consent to be audited in the certification section of
the FCC Form 175 (see certification item number 6).

**B. Exhibits and Attachments**

In addition to the FCC Form 175 itself, applicants must submit
additional information required by the FCC\'s rules. Although the FCC
does not require a particular format for this information, it has
developed the following guidelines that will facilitate the processing
of

short-form applications. The FCC encourages applicants to submit this
information in several attachments using the following format.

> *If you find that an attachment has not converted properly to Adobe
> PDF format, take the following steps:*
>
> *1) Delete the failed attachment.*
>
> *2) Simplify the formatting of the file. For example, if using a Table
> structure in a WordPerfect document, remove the Table structure
> leaving the contents of the table, re‑save the document.*
>
> *3) Re‑upload the attachment.*

**NOTE: Applicants should not list their TIN numbers on any Exhibits to
their**

**FCC Form 175s.**

**Exhibit A - Applicant Identity and Ownership Information**: 47 C.F.R.
§ 1.2105(a)(2)(ii) requires each applicant to fully disclose the real
party or parties-in-interest in an exhibit to its FCC Form 175
application. Each member of an applicant applying to bid as a small or
very small business consortium must provide this information. The
following information is required:

**1. General Information**

***Applicant Status Required Information***

General Partnership Name, citizenship, and address of all partners, and
the share or interest participation of each partner

Limited Partnership Name, citizenship, and address of each limited
partner whose interest in the applicant is equal to or greater than 10
percent (as calculated according to the percentage of equity paid in and
the percentage of distribution of profits and losses).

Corporation Corporate name and address; and name, title, and citizenship
of a responsible officer or director.

Limited Liability Corporate name and address; and name, address and
citizenship of all

Corporation members.

Trust Name, citizenship, and address of trustee.

None of the above Name, citizenship, title or other relation to the
applicant, and address of a principal or other responsible person

**2. Ownership Information**

***Applicant Status Required Information***

All applicants Name, citizenship, and address of all controlling
interests of the applicant as defined in Section II.C.1 of this

public notice.

All applicants Name, citizenship, and address of all parties holding 10
percent or more of any class of stock, warrants, options or debt
securities and the amount and percentage held.

All applicants Name of all parties holding a 10 percent or greater
interest in the applicant and the specific amount held.

All applicants List of any FCC-licensed entity or applicant for an FCC
license, in which

a\. the applicant;

b\. any party with a 10 percent or greater interest in the applicant; or

c.  a controlling interest (as discussed in Section II.C.1 of this
    public notice) of the applicant

> owns a 10 percent or greater interest or 10 percent or more of any
> class of stock, warrants, options or debt securities. (*See also* 47
> C.F.R. §§ 27.502 and 1.2110) This list must include a description of
> each such entities\' principal business and a description of each such
> entities\' relationship to the applicant.

*Example of a.* The applicant owns 10 percent of Company A (an
FCC-licensed entity or an applicant for an FCC license). The applicant
must list Company A on its Form 175

Exhibit A and provide the required information.

*Example of b.* Company A owns 10 percent of the applicant and 10
percent of Company B (an FCC-licensed entity or an

applicant for an FCC license). The applicant must list both Company A
and Company B on its Form 175 Exhibit A and provide the required
information.

*Example of c.* A owns 55% of the applicant and owns 10 percent of
Company B (an FCC-licensed entity or an

> Applicant for an FCC license). The applicant must list both A and
> Company B on its Form 175 Exhibit A and provide the required
> information.

All applicants List of all parties holding indirect ownership interests
in the applicant as determined by successive multiplication of the
ownership percentages in each link of the vertical ownership chain, that
equals 10 percent or more of the applicant, except that if the ownership
percentage for any link in the chain exceeds 50 percent or represents
actual control, it shall be reported as if it were a 100 percent
interest.

> *Example.* A owns 10% of Company B, which owns 60% of Company C, which
> owns 25% of the applicant.
>
> Company B\'s interest in the applicant would be 25% (the same as
> Company C\'s interest since Company B\'s interest in Company C exceeds
> 50%), and A\'s interest in the applicant would be 2.5% (0.1 \* 0.25).
> Under the 10% attribution benchmark, Company B\'s interest in the
> applicant must be reported on the applicant\'s FCC Form 175 Exhibit A,
> while A\'s interest in the applicant need not be reported. However, if
> A owned 40% of Company B in the above example, then A\'s interest in
> the applicant would be 10% (0.4 \* 0.25), and the applicant would need
> to report it on the applicant\'s FCC Form 175 Exhibit A.

**Exhibit B - Agreements with Other Parties/Joint Bidding
Arrangements:** Applicants must attach an exhibit identifying all
parties with which they have entered into any agreements, arrangements
or understandings which relate in any way to the licenses being
auctioned, including any relating to the post-auction market structure.
*See* 47 C.F.R. §1.2105(a)(2)(viii). Note that applicants that are
nationwide bidders may not be parties to such agreements. *See* Section
IV.B.7, above.

Be aware that pursuant to Certification (4) on the FCC Form 175, the
applicant certifies that it will not enter into any explicit or implicit
agreements or understandings of any kind with parties not identified in
the application regarding bid amounts, bidding strategies, or the
particular licenses the applicant will or will not bid. *See* 47
C.F.R..§ 1.2105(a)(2)(ix). *To prevent collusion, the Commission\'s
Rules generally prohibit communication among applicants for the same
license areas between the initial short-form applications filing
deadline and the down payment deadline for licenses won, when such
communications concern bids, bidding strategies, or settlements.* 47
C.F.R. § 1.2105(c).

**Exhibit C - Status as a Small Business or Very Small Business**:
Applicants claiming status as a very small business or small business
must attach an exhibit providing the following information regarding
this status.

***Entity Required Information***

Applicant Average gross revenues for the preceding three years set forth
*both separately* (*e.g.*, for each of the three preceding three years
individually) *and in the aggregate* (for all of the preceding three
years combined). Certification that the average gross revenues for the
preceding three years do not exceed the required limit, or providing
average gross revenues for the 3-year period without providing the gross
revenues for each of the preceding three years, is insufficient.

Applicant\'s Affiliates

*see* 47 CFR § 27.502 same information required as discussed above

Applicant\'s

Controlling Interests

*See* Section II.C.1, *above*.

*See also* 47 CFR § 1.2110. same information required as discussed above

> *Example.* The applicant had gross revenues of \$500,000 in 1997,
> \$1,000,000 in 1998, and \$3,000,000 in 1999, with average gross
> revenues for that time period of \$1,500,000.
>
> The applicant owns 60% of Company A, making Company A an affiliate of
> the applicant under Section 1.2110(b)(4)(i)(B), and Company B owns 52%
> of the applicant (making Company B a controlling interest of the
> applicant, as defined in Section II.C.1 of this public notice. The
> applicant\'s Exhibit C would look like this:

Applicant Name

1997 gross revenues \$ 500,000

1998 gross revenues \$ 1,000,000

1999 gross revenues \$ 3,000,000

Average gross revenues

for the preceding 3 years \$ 1,500,000

Company A (an affiliate of the applicant)

1997 gross revenues \$ enter amount

1998 gross revenues \$ enter amount

1999 gross revenues \$ enter amount

Average gross revenues

for the preceding 3 years \$ enter amount

Company B (a controlling interest in the applicant)

1997 gross revenues \$ enter amount

1998 gross revenues \$ enter amount

1999 gross revenues \$ enter amount

Average gross revenues

for the preceding 3 years \$ enter amount

**TOTAL: combined average gross revenues for the preceding three years
of the applicant, the applicant\'s affiliates and their controlling
interests**

**NOTE: Each member of an applicant that is applying to bid as a
consortium of small or very small businesses must provide this
information and qualify for the claimed status.**

**Exhibit D - Information Requested of Designated Entities:** Applicants
owned by minorities or women, as defined in 47 C.F.R. § 1.2110(b), or
that are rural telephone companies, may attach an exhibit regarding this
status. This information, in conjunction with the information requested
in Block 10 of the FCC Form 175, will assist the Commission in
monitoring the participation of these "designated entities" in its
auctions.

**Exhibit E - Miscellaneous Information**: Applicants wishing to submit
additional information should include it in Exhibit E.

Applicants are reminded that all information required in connection with
applications to participate in spectrum auctions is necessary to
determine the applicants\' qualifications, and as such will be available
for public inspection. Required proprietary information may be redacted,
or confidentiality may be requested, following the procedures set forth
in 47 C.F.R. § 0.459. Such requests must be submitted in writing to Amy
Zoslov, Chief, Auctions and Industry Analysis Division, Wireless
Telecommunications Bureau, Federal Communications Commission, 445 12^th^
Street, S.W., Room 4-A760, Washington, D.C. 20554 (with a separate copy
mailed to Howard Davenport, Legal Branch, Auctions and Industry Analysis
Division), in which case the applicant must indicate in Exhibit E that
it has filed a confidentiality request. Because the required information
bears on applicants\' qualifications, the FCC envisions that
confidentiality requests will not be routinely granted.

**Waivers:** Applicants requesting waiver of any rules must submit a
statement of reasons sufficient to justify the waiver sought. *See* 47
C.F.R. § 1.3.

# Attachment E

**AUCTION-SPECIFIC INSTRUCTIONS FOR**

**FCC REMITTANCE ADVICE (FCC FORM 159)**

**Upfront Payments**

The following information supplements the standard instructions for FCC
Form 159, and is provided to help ensure correct completion of FCC Form
159 for upfront payments for Auction No. 31. Applicants need to complete
FCC Form 159 carefully, since:

-   Mistakes may affect their bidding eligibility; and

-   Lack of consistency between information set forth in FCC Form 159,
    FCC Form 175, long-form application, and correspondence about an
    application may cause processing delays.

Therefore appropriate cross-references between the FCC Form 159
Remittance Advice

and the FCC Form 175 Short Form Application are described below:

Block

Number Required Information

> 1 LOCKBOX \# - Enter \"358430\"
>
> 2 Payer Name - Enter the name of the person or company making the
> payment.
>
> If the applicant itself is the payer, this entry would be the same as
> FCC Form 175.
>
> 3 Total Amount Paid - Enter the amount of the upfront payment
> associated with the FCC Form 159.
>
> 4-8 Street Address, City, State, ZIP Code - Enter the street mailing
> address (not Post Office box number) where mail should be sent to the
> payer. If the applicant is the payer, these entries would be the same
> as FCC Form 175, blocks 2 through 5.
>
> 9 Daytime Telephone Number - Enter the telephone number of a person
> knowledgeable about this upfront payment.
>
> 10 Country Code - For addresses outside the United States, enter the
> appropriate postal country code (available from the Mailing
> Requirements Department of the U.S. Postal Service).
>
> 20A Payment Type Code - Enter \"A31U\"
>
> 21A Quantity - Enter the number \"1\"
>
> 22A Amount Due - Enter the total upfront payment due.
>
> 23A FCC Code 1 - Enter the number \"31\" (indicating Auction No. 31).
>
> 26 Applicant TIN - Same as FCC Form 175, block 7.

NOTES:

-   Do not use Remittance Advice (Continuation Sheet), FCC Form 159-C,
    for upfront payments.

-   If applicant is different from the payer, complete blocks 11 through
    18 for the applicant, using the same information shown on FCC
    Form 175. Otherwise leave them blank.

-   Since credit card payments will not be accepted for this auction,
    leave this area blank.

**Winning Bidder Requirements, Down Payments and Final Payments**

Specific information regarding down payments and final payments will be
included in a post-auction public notice announcing the winning bidders.

# Attachment F

**FCC BIDDING PREFERENCE/**

**REMOTE SOFTWARE ORDER FORM**

**Auction No. 31**

***All qualified applicants who plan to participate in this auction
[must]{.underline} complete the form below.***

Each qualified applicant choosing to bid electronically must purchase
their own FCC Remote Bidding Software. Electronic bids will only be
accepted from those applicants purchasing the software. However, the
software may be copied by the applicant for use by its authorized
bidders at different locations.

The price of the FCC Remote Bidding Software is **\$175.00**, which
includes a user manual and shipping costs. (Since bidding software is
tailored to a specific auction, previous versions will not work for
Auction #31.) For security purposes, the software is only mailed to the
contact person at the contract address listed on the FCC Form 175.

Completed forms should be printed and either faxed or mailed to the
address below, ensuring receipt by no later than 5:30 p.m. ET on
**Tuesday, April 25, 2000.**

FCC BIDDING PREFERENCE (Auction No. 31)

[Auction Operations Branch]{.underline}

1270 Fairfield Rd.

Gettysburg, PA 17325-7245

FAX: 717-338-2850

Auction Applicant:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

FCC Assigned Account No. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Contact Phone: \_\_\_\_\_\_\_\_\_\_\_\_\_

Contact
Name:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Contact Address:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Contact City: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Contact State: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Contact Zip: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Contact Fax: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Bidding Preference: \_\_\_\_ Electronic \_\_\_\_ Telephonic

If planning to bid electronically, please complete the following:

Type: \_\_\_\_3.5 Diskette \_\_\_\_ CD-Rom

Payment of \$175.00 US by: \_\_\_\_ Check (payable to FCC) \_\_\_\_
Mastercard \_\_\_\_ Visa

Credit card number
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Expiration
date \_\_\_\_\_\_\_\_\_\_\_\_

Name on card
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Authorized signature
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date \_\_\_\_\_\_\_\_\_\_\_

# ATTACHMENT G

**Bid Increments and Exponential Smoothing**

*Background*. The Auctions Automation System ("AAS") calculates the
minimum bid increment for each license with a standing high bid in each
round of the auction based on all bidding activity for the license. For
this auction, the Commission will use a standard exponential smoothing
methodology to calculate minimum bid increments.

The AAS' exponential smoothing formula calculates the bid increment
based on a weighted average of activity received for each license in all
previous rounds. This methodology allows the Commission to tailor each
license's bid increment based on its specific level of activity
throughout the auction and provides a fairer means to determine license
value.

*Calculation*. The calculation of the percentage bid increment increase
for each license for the current round is made at the end of the
previous round. The computation is based on an activity index, which is
calculated as the weighted average of the activity in that round and the
activity index from the prior round. The activity index at the start of
the auction (round 0) will be set at 0. The current activity index is
equal to a weighting factor times the number of new bids received on the
license in the most recent bidding round plus one minus the weighting
factor times the activity index from the prior round. The activity index
is then used to calculate a percentage increment by multiplying a
minimum percentage increment by one plus the activity index with that
result being subject to a maximum percentage increment. The Commission
will initially set the weighting factor at 0.5, the minimum percentage
increment at 0.1, and the maximum percentage increment at 0.2. (See
example below.)

***Equations***

A~i~ = (C \* B~i~) + ( (1-C) \* A~i-1~)

I~i+1~ = smaller of ( (1 + A~i~) \* N) and M

where,

A~i~ = activity index for the current round (round i)

C = activity weight factor

B~i~ = number of bids in the current round (round i)

A~i-1~ = activity index from previous round (round i-1), A~0~ is 0

I~i+1~ = percentage bid increment for the next round (round i+1)

N = minimum percentage increment or bid increment floor

M = maximum percentage increment or bid increment ceiling

Under the exponential smoothing methodology, once a bid has been
received on a license, the minimum acceptable bid for that license in
the following round will be the new high bid plus the dollar amount
associated with the percentage increment (the high bid multiplied by
variable variable I~i+1~ from above). This result will be rounded to the
nearest thousand if the minimum acceptable bid is over ten thousand
dollars or to the nearest hundred if it is under ten thousand dollars.

**Examples**

License 1

C=0.5, N = 0.1, M = 0.2

[Round 1 (2 new bids, high bid = \$1,000,000)]{.underline}

1\. Calculation of percentage increment for round 2 using exponential
smoothing:

A~1~ = (0.5 \* 2) + (0.5 \* 0) = 1

The smaller of I~2~ = (1 + 1) \* 0.1 = 0.2 or 0.2 (the maximum
percentage increment)

2\. Minimum bid increment for round 2 using the percentage increment

0.2 \* \$1,000,000 = \$200,000

3\. Minimum acceptable bid for round 2 = \$1,200,000

[Round 2 (3 new bids, high bid = \$2,000,000)]{.underline}

1\. Calculation of percentage increment for round 3 using exponential
smoothing:

A~2~ = (0.5 \* 3) + (0.5 \* 1) = 2

The smaller of I~3~ = (1 + 2) \* 0.1 = 0.3 or 0.2 (the maximum
percentage increment)

2\. Minimum bid increment for round 3 using the percentage increment

0.2 \* \$2,000,000 = \$400,000

3\. Minimum acceptable bid for round 3 = \$2,400,000

[Round 3 (1 new bid, high bid = \$2,400,000)]{.underline}

1\. Calculation of percentage increment for round 4 using exponential
smoothing:

A~3~ = (0.5 \* 1) + (0.5 \* 2) = 1.5

The smaller of I~4~ = (1 + 1.5) \* 0.1 = 0.25 or 0.2 (the maximum
percentage

increment)

2\. Minimum bid increment for round 4 using the percentage increment

0.2 \* \$2,400,000 = \$480,000

3\. Minimum acceptable bid for round 4 = \$2,880,000

# Attachment H

**ACCESSING THE FCC NETWORK USING**

**WINDOWS 95/98**

This attachment describes how to access the FCC Network from a system
that is running the Microsoft Windows 95 or Microsoft Windows 98
operating system. This involves configuring dial-up network access and
then performing the dial-up procedure. Dial-up access to the FCC Network
is required to submit FCC Form 175 applications electronically or use
the FCC Remote Access System.

> **Note:** Dial-up access to the FCC Network is ***not*** required to
> review FCC Form 175 applications. You can perform that function from
> the Internet, by entering location ***http://wtbwww15.fcc.gov/*** on
> your Netscape Web browser and clicking the **175 Review** button.

**[Conventions]{.underline}**

The instructions in this section use the following typographical
conventions:

**bold** Represents objects on the screen that you click with the mouse
pointer, including buttons, Internet links, icons, tabs, menu items
(e.g., **Cancel** button, **Auctions** link, **Save** option in the File
menu).

*italic* Represents field names or areas of a screen (e.g., *Applicant*
field, *Selected Licenses* area of a screen).

***bold italic*** Represents characters that you must type exactly as
they appear in the instructions. For example, if you are instructed to
type ***http://wtbwww03.fcc.gov***, you should type all of the
characters shown in bold italic exactly as they are printed.

[Small Caps]{.smallcaps} Represents keys on the keyboard (e.g., [Enter,
Ctrl, Esc]{.smallcaps}).

***Note:*** Throughout these instructions, "enter" means to type the
appropriate information and then press the [Enter]{.smallcaps} key.

**Configuring Dial-Up Networking**

1\. To start dial-up networking:

> a\. Click the Windows 95/98 **Start** button.
>
> b\. Click the **Programs** option to display the Programs menu.
>
> c\. Click the **Accessories** option to display the Accessories menu.
>
> d\. In Windows 95, click **Dial-Up Networking**.
>
> In Windows 98, click **Communications**, then **Dial-Up Networking** .
>
> If **Dial-Up Networking** is not an option on your Accessories menu,
> you should install it from your Windows 95/98 CD or diskettes.

2\. When the Dial-Up Networking window appears, double-click the **Make
New Connection** icon.

> The Make New Connection window appears.

3\. If you are connecting to submit FCC Form 175 applications, type
***FCC Auctions 877#*** in the field titled *Type a name for the
computer you are dialing.*

> If you are connecting to use the FCC Remote Access System, type ***FCC
> Auctions 900#*** in the field titled *Type a name for the computer you
> are dialing.*
>
> **Note**: If you connect to the FCC's 900# telephone service, there is
> a charge of \$2.30 per minute. The first minute of connection time to
> the 900 number service is at no charge.

4\. In Windows 95, click the down arrow at the right of the *Select a
modem* field and select your modem from the menu of available modems.

> In Windows 98, click the down arrow at the right of the *Select a
> device* field and select your modem from the menu of available
> devices.
>
> If your modem does not appear on this list, you must install your
> modem driver according to the modem manufacturer installation
> procedures, which are usually described in your modem's user manual.

5\. Click the **Next** button.

6\. If you are connecting to submit FCC Form 175 applications, type
***877*** and ***844-2788*** in the *Area Code* and *Telephone Number*
fields, respectively.

> If you are connecting to use the FCC Remote Access System, type
> ***900*** and ***555-5554*** in the *Area Code* and *Telephone Number*
> fields, respectively.

7\. Verify that the correct country is selected in the *Country code*
field.

> If necessary, click the down arrow at the right of the *Country code*
> field and select the appropriate country from the menu of available
> countries.

8\. Click the **Next** button.

9\. Click the **Finish** button.

> An icon labeled either *FCC Auctions 877#* or *FCC Auctions 900#*
> appears in the Dial-Up Networking window.

10\. Verify that properties are configured correctly before attempting a
dial-up session. Put the mouse pointer on the FCC Auctions icon that you
wish to configure and click the **right** mouse button to display a
menu. Click **Properties** from the menu.

11\. Click the **Configure** button. Click the **Options** tab at the
top of the Properties window.

12\. In the *Connection control* area of the Options tab, verify that
*[neithe]{.underline}r* option is selected. If either option is
selected, click the check box at the left of the option to deselect it.
Then click **OK**.

13\. In Windows 95, click the **Server Type\...** button.

> In Windows 98, click the **Server Types** tab at the top of the
> Properties window.

14\. In the *Advanced Options* area, verify that only **Enable software
compression** is selected. If it is not selected, click the check box at
the left of the option to select it. If either of the other options is
selected, click the check box to deselect it.

15\. In the *Allowed Network Protocols* area, verify that only
**TCP/IP** is selected.

> If it is not selected, click the check box at the left of the option
> to select it. If either of the other options is selected, click the
> check box to deselect it.

16\. Click the **TCP/IP Settings** button. On the TCP/IP Settings
window, select **Server assigned IP addresses** at the top and select
**Specify name server addresses** midway down the window.

17\. Type ***165.135.79.95*** as the *Primary DNS*.

Ensure that these two options are checked:

-   **Use IP header compression**

-   **Use default gateway or remote network**

18\. Click **OK** on the *TCP/IP Settings* window and the *Server Type*
window.

19\. a. Click the Windows 95/98 **Start** button, then click the
**Settings** option to display the Settings menu.

> b\. Click **Control Panel** and then double-click the **Network**
> icon.
>
> c\. Highlight the *TCP/IP Protocol* and click **Properties**. If there
> are multiple TCP/IP protocols, highlight *TCP/IP \--\> Dial-Up
> Adapter* and click **Properties**.
>
> In a Windows 98 environment, a confirmation dialog appears. Read the
> information on the dialog, then click the **OK** button.
>
> d\. Click the **DNS Configuration** tab.
>
> e\. Select **Enable DNS**. Type ***bidder*** in the *Host* box, type
> ***fcc.gov*** in the *Domain* box, then type ***165.135.79.95*** in
> the *DNS Server Search Order* box and click the **Add** button.
>
> f\. Click **OK** on the TCP/IP Properties windows, then click **OK**
> on the Network windows.

f.  If you are prompted to restart your computer, click **Yes** to
    restart, then begin the Dial-Up Procedure.

**Dial-Up Procedure**

If the Dial-Up Networking window is not currently open, do the
following:

> a\. Click the Windows 95/98 **Start** button.
>
> b\. Click the **Programs** option to display the Programs menu.
>
> c\. Click the **Accessories** option to display the Accessories menu.
>
> d\. In Windows 95, click **Dial-Up Networking**
>
> In Windows 98, click **Communications**, then **Dial-Up Networking**.
>
> The Dial-Up Networking window appears.

2\. In the Dial-Up Networking window, double-click the **FCC Auctions
877#** or **FCC Auctions 900#** icon.

> **Note**: If you connect to the FCC's 900 number telephone service,
> there is a charge of \$2.30 per minute. The first minute of connection
> time to the 900 number service is at no charge.

3\. Click the **Connect** button on the window. *[Do not enter User name
and Password]{.underline}*.

> The Connection window appears, indicating the status of your
> connection as your modem dials into the system. This window must
> remain running during your dial-up session. You may minimize the
> window, if you wish.
>
> If your modem fails to establish a connection, please see the
> *Troubleshooting* section below.

4\. Once the connection is established, open your Web browser.

5\. In your browser's *Location* field, enter the appropriate Universal
Resource Locator (URL) as follows:

-   For FCC Form 175 Submit, enter ***http://wtbwww34.fcc.gov***
    (primary location) or ***http://wtbwww04.fcc.gov*** (secondary
    location)

-   For the FCC Remote Access System, enter
    ***http://wtbwww26.fcc.gov*** (primary location) or
    ***http://wtbwww03.fcc.gov*** (secondary location)

> If nothing appears in your Web browser, please see the
> *Troubleshooting* section below.

6\. When you have finished, exit the Web browser, then click the
**Disconnect** button on the Connection window to end your dial-up
session.

**Troubleshooting**

Following are problems you may encounter and possible solutions for
resolving or isolating them.

***Modem does not respond***

1\. Confirm that all physical connections for the modem are present.

2.  Confirm that the phone line is active by connecting it to a
    telephone and checking

for a dial-tone.

3\. If you are dialing the 900 number service, check for a 900 number
telephone block. If the volume settings are low, the modem may be
dialing but not connecting. Check for this by trying to connect to the
800 number, or by dialing the 900 number on that line using a telephone.

4\. Confirm that the correct modem driver is installed for your modem.

***Modem dials but does not connect***

1\. If you are dialing the 900 number service, check for a 900 number
telephone block. Check for this by dialing the 800 number to see if you
connect, or by dialing the 900 number on that line using a telephone.

2\. Confirm that the number the modem is dialing is correct.

3.  Confirm that the modem prefix, if any, is correct.

***Modem dials and connects, but nothing appears when you enter the
Location in the Web browser***

1.  Verify the Dial-Up Networking settings specified in the *Configuring
    Dial-Up*

*Networking* section of this attachment.

2.  Confirm that your Web browser is not using proxies:

```{=html}
<!-- -->
```
a)  On your browser, click the **Preferences** option in the Edit menu.

b)  In the Category area at the left, double-click **Advanced**.

c)  Click the Advanced structure's **Proxies** option.

d)  Click the radio button labeled **Direct connection to the
    Internet**.

e)  Click the **OK** button at the bottom of the window.

***Receive an Internal Server error in the Web browser***

1.  Confirm that the *Location* is correct.

2.  Confirm that Java and JavaScript are enabled in your Web browser,
    and confirm that *Cookies* is set to accept all.

**Help**

For technical assistance with installing or using FCC software, contact
the FCC Technical Support Hotline at (202) 414‑1250 (V) or (202)
414-1255 (TTY). The FCC Technical Support Hotline is generally available
Monday through Friday, from 8 a.m. to 6 p.m. ET. *All calls to the FCC
Technical Support Hotline are recorded.*

# Attachment I

**SUMMARY LISTING OF DOCUMENTS FROM THE COMMISSION**

**AND THE WIRELESS TELECOMMUNICATIONS BUREAU**

**ADDRESSING APPLICATION OF THE ANTI‑COLLUSION RULES**

> All of the following documents can be found at FCC web site:
> [http://www.fcc.gov/wtb/auctions/collusio/collusio.html]{.underline}
>
> **[Commission Decisions:]{.underline}**
>
> *Second Report and Order* in PP Docket No. 93‑253, FCC 94‑61, 9 FCC
> Rcd. 2348, 2386‑2388 (1994), paragraphs 221‑226.
>
> *Fifth Report and Order in* PP Docket No. 93‑253, FCC 94‑178, 9 FCC
> Rcd. 5532, 5570‑5571 (1994), paragraphs 91‑92.
>
> *Fourth Memorandum Opinion and Order* in PP Docket No. 93‑253, FCC
> 94‑264, 9 FCC Rcd. 6858, 6866‑6869 (1994), paragraphs 47‑60.
>
> *Second Memorandum Opinion and Order* in PP Docket No. 93‑253, FCC
> 94‑215, 9 FCC Rcd. 7245, 7253‑7255 (1994), paragraphs 48‑55.
>
> *Memorandum Opinion and Order* in PP Docket No. 93‑253, FCC 94‑295, 9
> FCC Rcd. 7684, 7687‑7689 (1994), paragraphs 8‑12.
>
> In re Commercial Realty St. Pete, *Notice of Apparent Liability for
> Forfeiture,* 10 FCC Rcd. 4277 (1995), In re Commercial Realty St.
> Pete, *Memorandum Opinion and Order,* 11 FCC Rcd. 15374 (1996).
>
> In re Applications of Mercury PCS II, LLC, *Notice of Apparent
> Liability for Forfeiture,* 12 FCC Rcd. 17970 (1997) (petition for
> partial reconsideration pending).
>
> Amendment of Part 1of the Commission\'s Rules ‑‑ Competitive Bidding
> Procedures, Allocation of Spectrum Below 5 GHz Transferred from
> Federal Government Use, 4660‑4685 MHz, WT Docket No. 97‑82, ET Docket
> No. 94‑32, FCC 97‑413, *Third Report and Order and Second Further
> Notice of Proposed Rule Making,* 13 FCC Rcd. 374, 463‑469 (1997),
> paragraphs 155-­166.
>
> In re Application of US West Communications, Inc., *Notice of Apparent
> Liability for Forfeiture,* FCC 98‑41 (March 16, 1998).
>
> In re Application of Western PCS BTA I Corporation, *Notice of
> Apparent Liability for Forfeiture, FCC* 98‑42 (March 16, 1998).

**[Wreless Telecommunications Bureau Decisions:]{.underline}**

Amendment of Parts 21 and 74 of the Commission\'s Rules with Regard to
Filing Procedures in the Multipoint Distribution Service and in the
Instructional Television Fixed Service, *Order,* 11 FCC Rcd. 9655
(Wireless Tel. Bur. 1995).

In re Applications of GWI PCS, Inc. For Authority to Construct and
Operate Broadband PCS Systems Operating on Frequency Block C,
*Memorandum Opinion and Order,* 12 FCC Rcd. 6441 (Wireless Tel. Bur.
1997).

In re Applications of Mercury PCS II, LLC, For Facilities in the
Broadband Personal Communications Services in the D, E, and F Blocks,
*Memorandum Opinion and Order on Reconsideration,* 12 FCC Rcd. 18093
(Wireless Tel. Bur. 1997).

In the Matter of Applications of High Plains Wireless, L.P., For
Authority to Construct and Operate Broadband PCS Systems on Frequency
Blocks D, E, and F, *Memorandum Opinion and Order,* 12 FCC Rcd. 19627
(Wireless Tel. Bur. 1997).

In the Matter of Applications of Mercury PCS II, LLC, For Authority to
Construct and Operate Broadband PCS Systems on Frequency Blocks D, E,
and F, *Memorandum Opinion and Order,* 13 FCC Rcd. 5756 (Wireless Tel.
Bur. 1997).

**[Public Notices:]{.underline}**

\"Wireless Telecommunications Bureau Clarifies Spectrum Auction
Anti‑Collusion Rules,\" *Public Notice,* 11 FCC Rcd. 9645 (1995).

\"FCC Staff Clarifies Application of Anti‑Collusion Rule to Broadband
PCS \'C\' Block Reauction,\" *Public Notice,* 11 FCC Rcd. 7031 (1996).

\"Wireless Telecommunications Bureau Provides Guidance on the
Anti‑Collusion Rule for D, E and F Block Bidders,\" *Public* *Notice,*
11 FCC Rcd. 10134 (1996).

**[Letters from the Office of General Counsel and the Wireless
Telecommunications Bureau:]{.underline}**

*Letter to Gary M. Epstein and James H. Barker from William E. Kennard,
General Counsel, Federal Communications Commission* (released October
25, 1994).

*Letter to Alan F. Ciamporcero from William E Kennard, General Counsel,
Federal Communications Commission* (released October 25, 1996).

*Letter to R. Michael Senkowski from Rosalind K. Allen, Acting Chief,
Commercial Radio Division, Wireless Telecommunications Bureau* (released
December 1, 1994).

*Letter to Leonard J. Kennedy from Rosalind K. Allen, Acting Chief,
Commercial Radio Division, Wireless Telecommunications Bureau* (released
December 14, 1994).

*Letter to Jonathan D. Blake and Robert J. Rini from Kathleen O\'Brien
Ham, Chief, Auctions Division, Wireless Telecommunications Bureau,* DA
95‑2404 (released November 28, 1995).

*Letter to Mark Grady from Kathleen O\'Brien Ham, Chief, Auctions
Division, Wireless Telecommunications Bureau,* 11 FCC Rcd. 10895 (1996).

*Letter to David L. Nace from Kathleen O\'Brien Ham, Chief, Auctions
Division, Wireless Telecommunications Bureau,* 11 FCC Rcd. 11363 (1996).

*Letter to Elliott J. Greenwald from Christopher J. Wright, General
Counsel, Federal Communications Commission* (released April 6, 1998).

**[Civil Actions Initiated by U.S. Department of Justice:]{.underline}**

*U.S. v. Omnipoint Corp.,* Proposed Final Judgements and Competitive
Impact Statements, Department of Justice, 63 FR 65228 (November 25,
1998).

\"Justice Department Sues Three Firms Over FCC Auction Practices,\"
*Press Release, U.S.* Department of Justice (November 10, 1998).

Complaint, U.S. *v. Omnipoint Corp.,* No. 1:98CV02750 (D.D.C. November
10, 1998).

Complaint, U.S. v. *Mercury PCS II, L.L C.,* No. 1:98CV02751 (D.D.C.
November 10, 1998).

Complaint, *U.S. v. 21st Century Bidding Corp., No.* 1:98CV02752 (D.D.C.
November 10, 1998).

[Miscellaneous:]{.underline}

Many of these documents can be retrieved from the following Commission
web site:

<http://www.fcc.gov/wtb/auctions/collusio/collusio.html>

These documents may be located by using our search engine (select the
link \"search\"). All of these documents can be ordered in hard copy for
a fee from the Commission's contractor, International Transcription
Service, Inc. at (202) 314­-3070.

Documents retrieved from the FCC web site are available in various
formats. In order to review a document in its entirety, including
footnotes, it is necessary to access the document in WordPerfect, MS
Word, or Acrobat Reader.

# ATTACHMENT J

Place holder for Attachment J, see Excel file.

[^1]: ^?^ *See* \"Auction of Licenses in the 747-762 and 777-792 MHz
    ("700 MHz") Bands Scheduled for May 10, 2000; Comment Sought on
    Reserve Prices or Minimum Opening Bids and Other Auction Procedural
    Issues,\" *Public Notice*, DA 00-43 (rel. January 10, 2000)
    *(\"Auction No. 31 Comment Public Notice*\"), 65 Fed. Reg. 2956
    (January 19, 2000).

[^2]: ^?^ Section 3002(a), Balanced Budget Act of 1997, Pub. L. 105-33,
    111 Stat. 251 (1997) (\"Budget Act\"); 47 U.S.C. §309(j)(4)(F). The
    Commission\'s authority to establish a reserve price or minimum
    opening bid is set forth in 47 C.F.R. § 1.2104 (c) and (d).

[^3]: *See* *Auction No. 31 Comment Public Notice* at 5-6.

[^4]: Comments were filed by NextLink Communications, Inc. ("NextLink");
    PSINet, Inc.; and U S West Wireless, LLC. ("U S West"); Reply
    Comments were filed by AT&T Corporation ("AT&T"); Bell Atlantic
    Mobile, Inc. ("BAM"); Cisco Systems, Inc. ("Cisco"); Omnipoint Corp.
    ("Omnipoint"); and PSINet, Inc ("PSINet").

[^5]: ^?^ *See* 47 U.S.C. § 337(e). See Advanced Television Systems and
    Their Impact Upon Existing Television Broadcast Service, MM Docket
    No. 87-268, *Reconsideration of Fifth Report and Order*, 13 FCC Rcd
    6860, 6887 (1998).

[^6]: ^?^ *See* Section 337(a) of the Communications Act, 47 U.S.C. §
    337(a).

[^7]: ^?^ *See* Section 337(b)(2) of the Communications Act, 47 U.S.C. §
    337(b)(2)(a).

[^8]: ^?^ *See Consolidated Appropriations*, Appendix E, § 213. *See
    also* 145 Cong. Rec. H12493-94 (Nov. 17, 1999).

[^9]: *See* *700 MHz* *First Report & Order, above* at ¶¶ 128-129; *See
    also* Amendment of the Commission's Rules Regarding the 37.0-38.6
    GHz and 38.6-40.0 GHz Bands, ET Docket No. 95-183, *Report & Order
    and Second Notice of Proposed Rule Making,* 12 FCC Rcd 18600 at ¶
    144 (1997) 62 Fed. Reg. 14015 (March 25, 1997) ("*Report & Order and
    Second NPRM"*); *See also* 47 C.F.R. § 1.2105(c).

[^10]: *See* In re Application of Nevada Wireless for a License to
    Provide 800 MHz Specialized Mobile Radio Service in the Farmington,
    NM-CO Economic Area (EA-155) Frequency Band A, *Memorandum Opinion
    and Order*, 13 FCC Rcd 11973, 11977, at ¶ 11 (1998) (\"*Nevada
    Wireless*\").

[^11]: *See Nevada Wireless*, 13 FCC Rcd at 11978.

[^12]: *See* 47 C.F.R. § 1.2105(c) Note that bidders with nationwide
    status are prohibited from entering into such agreements. *See*
    Section IV.B.7, below.

[^13]: ^?^ *See* "Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules," *Public Notice*, DA 95-2244 (rel.
    October 26, 1995), 11 FCC Rcd 9645 (1995).

[^14]: *See* 47 C.F.R. § 1.65.

[^15]: In addition, licensees operating fixed stations in the 747-762
    MHz band must comply with the relevant provisions for "base
    stations" in Section 90.309 of our Rules; and licensees operating
    fixed stations in the 777-792 MHz band must comply with the relevant
    provisions for "control stations" in Section 90.309 of our Rules.
    *See* 47 C.F.R. § 90.309.

[^16]: *See 700 MHz First Report & Order, above* at ¶ 145; *See* also 47
    U.S.C. §§ 336-337.

[^17]: *See Pub. Law 106-113, 113 Stat. 1501, Appendix E, Section 213;
    Consolidated Appropriations*, Appendix E, Sec. 213. *See also* 145
    Cong. Rec. at H12493-94, (Nov. 17, 1999).

[^18]: *See 700 MHz First Report & Order, above* at ¶ 145*.*

[^19]: *Id.* at ¶ 146

[^20]: *Id..* Furthermore, both Canada and Mexico have been notified
    that the Commission has changed the allocation of these bands, and
    the Commission has discussed with them the possibility of mutually
    compatible spectrum use in all three countries.

[^21]: *See 700 MHz First Report & Order, above* at footnote 17. There,
    the Commission stated that: "many agreements have used the
    geographic distance of 120 km from the border as the coordination or
    effected area. We will apply this criterion until agreements are
    reached."

[^22]: *Id.* at ¶ 146.

[^23]: *See 700 MHz First Report & Order* at ¶ 141. *See also* 47 C.F.R.
    § 90.545; *See also* Section I.B.3.

[^24]: *See* 47 C.F.R. §§ 90.309 and 90.545.

[^25]: *See* Comments of NextLink at 1-2.

[^26]: *See* Comments of AT&T at 1.

[^27]: *See* "Wireless Telecommunications Bureau Seeks Comment on SBC
    Communications Inc.'s Request for Waiver of the Eligibility
    Requirements for Participation in the Upcoming PCS C and F Block
    Auction," *Public Notice*, DA 00-145 (rel. January 31, 2000);
    "Wireless Telecommunications Bureau Seeks Comment on Nextel
    Communications, Inc.'s Petition Regarding PCS C and F Block
    Spectrum," *Public Notice*, DA 00-191 (rel. February 3, 2000);
    "Extension of Filing Deadline for Comments to the Petitions Filed by
    SBC Communications Inc. and Nextel Communications, Inc. Regarding
    PCS C and F Block Rules," *Public Notice*, DA 00-271 (rel. February
    11, 2000).

[^28]: *See* Public Law 106-113, 113 Stat. 1501, Appendix E, Section
    213. *See also* *Consolidated Appropriations*, Appendix E, Sec. 213.
    *See also* 145 Cong. Rec. at H12493-94, (Nov. 17, 1999).

[^29]: ^?^ Section 1.2105, in turn, requires the disclosure on the
    short-form of applicant ownership information as set forth in
    Section 1.2112.

[^30]: ^?^ Note that bidders with nationwide status are prohibited from
    entering into such agreements. *See* Section IV.B.7, below.

[^31]: ^?^ *See* Section I.B.2, above.

[^32]: ^?^ *See* 47 C.F.R. § 1.2105(c)(4)(i) & (ii).

[^33]: ^?^ *See* 47 C.F.R §§ 27.502.

[^34]: ^?^ For further guidance on the issue of control, see the
    Commission\'s affiliation rule at 47 C.F.R. § 1.2110(b)(4). *See
    also* Ellis Thompson Corp., 76 Rad. Reg. 2d (P & F) 1125, 1127-28
    (1994), in which the Commission identified the following factors
    used to determine control of a business: (1) use of facilities and
    equipment; (2) control of day-to-day operations; (3) control of
    policy decisions; (4) personnel responsibilities; (5) control of
    financial obligations; and (6) receipt of monies and profits;
    Intermountain Microwave, 24 Rad. Reg. (P & F) 983 (1963), and
    Application of Baker Creek Communications, LP, For Authority to
    Construct and Operate Local Multipoint Distribution Services in
    Multiple Basic Trading Areas, *Memorandum Opinion and Order*, 13 FCC
    Rcd 18,709 (rel. September 23, 1998).

[^35]: *See* 47 C.F.R. §§ 27.502 and 1.2105.

[^36]: *See* 47 C.F.R § 27.502.

[^37]: *See* 47 C.F.R. §27.502 and 1.2110(e)(iii).

[^38]: *See* 47 C.F.R. § 27.502 and 1.2110(e)(ii).

[^39]: *See* 47 C.F.R. § 27.502.

[^40]: All short-form applications must be filed electronically. *See*
    47 C.F.R. § 1.2105(a).

[^41]: *See* 47 C.F.R. § 1.2105. *See also* Two Way Radio of Carolina,
    Inc., *Memorandum, Opinion and Order*, FCC 99-189 (rel. July 22,
    1999).

[^42]: Amendment of Part 1 of the Commission\'s Rules \-- Competitive
    Bidding Proceeding, WT Docket No. 97-82, *Order, Memorandum Opinion
    and Order and Notice of Proposed Rule Making*, 12 FCC Rcd. 5686,
    5697-5698, ¶ 16 (1997); *See also 700 MHz First Report & Order,
    above* at ¶ 149.

[^43]: *See Auction No. 31 Comment Public Notice* at 2-3.

[^44]: *Auction No. 31 Comment Public Notice* at 2.

[^45]: *Id*. at 2-3.

[^46]: *Id*. at 4.

[^47]: ^?^ In its reply comments, Omnipoint raises questions concerning
    eligibility restoration and activity rule waivers in the context of
    how the rules apply to applicants proceeding under nationwide
    bidder\'s status in Auction No. 31. *See* Reply Comments of
    Omnipoint at 2-3. The Bureau addresses Omnipoint's concerns in
    Section IV.B.7, *below.*

[^48]: *Auction No. 31 Comment Public Notice, supra,* at 3-4.

[^49]: ^?^ Note that bidders with nationwide status have a 100 percent
    activity requirement in each stage. *See* Section IV.B.7, below.

[^50]: ^?^ In its reply comments, Omnipoint raises questions concerning
    the eligibility restoration mechanism and how it affects the Stage
    I, II, and III activity rules. *See* Reply Comments of Omnipoint at
    3. The Bureau addresses Omnipoint's concerns in Section IV.B.7,
    *below.*

[^51]: *Auction No. 31 Comment Public Notice, supra* at 3-4.

[^52]: *Id*. at 10.

[^53]: *Id*. at 11.

[^54]: *Id*. at 4.

[^55]: Budget Act, *see above* note 2.

[^56]: *See* Amendment of Part 1 of the Commission\'s Rules \--
    Competitive Bidding Procedures, WT Docket No. 97-82, *Third Report
    and Order and Second Further Notice of Proposed Rule Making*, 13 FCC
    Rcd. at 141, 455-456 (1998) (\"*Part 1 Third Report and Order*\").

[^57]: *Id*.

[^58]: *Id*.

[^59]: *Auction No. 31 Comment Public Notice* at 5-6.

[^60]: *See* Comments of U S West at 1-3.

[^61]: *See 700 MHz First Report & Order, above* at ¶¶ 103-107.

[^62]: ^58^ *Id.*

[^63]: Section 3002(F) of the Budget Act directs the Commission to
    \"prescribe methods by which a reasonable reserve price will be
    required, or a minimum bid established, to obtain any license or
    permit being assigned pursuant to the competitive bidding, unless
    the Commission determines that such a reserve price or minimum bid
    is not in the public interest.\"

[^64]: *See* 47 U.S.C. 309(j)(3)(C).

[^65]: *Auction No. 31 Comment Public Notice* at 6.

[^66]: ^?^ *Id*.

[^67]: *Auction No. 31 Comment Public Notice* at 8.

[^68]: *See* 47 C.F.R. §§ 1.2104(g) and 1.2109.

[^69]: *See*, *e.g.*, "Phase II 220 MHz Service Auction Closes, Winning
    Bidders in the Auction of 908 Phase II 220 MHz," *Public Notice*, 14
    FCC Rcd 605 (1998).

[^70]: ^?^ *See* *Auction No. 31 Comment Public Notice* at 9.

    ^?^ *See* Reply Comments of PSINet at 2-7.

[^71]: *See* Comments of PSINet at 4-8.

[^72]: *See* Reply Comments of Cisco at 2-4.

[^73]: *See* Reply Comments of PSINet at 2-7.

[^74]: *See Id.* at 3

[^75]: *See* Reply Comments of BAM at 1.

[^76]: *See* Reply Comments of AT&T at 4-6.

[^77]: *See* *700 MHz First Report & Order, above* at ¶¶ 126-127.

[^78]: *See Id.* at ¶ 126.

[^79]: *See* 47 C.F.R. § 1.2104(g).

[^80]: We adopted a similar rule for the General Wireless Communications
    Service. *See* Allocation of Spectrum Below 5 GHz Transferred from
    Federal Government Use, ET Docket No. 94-32, *Second Report and
    Order*, 11 FCC Rcd 624, 652-53, ¶¶ 71-73 (1995).

[^81]: *See 700 MHz First Report & Order, above* at ¶ 127.

[^82]: *See Auction No. 31 Comment Public Notice* at 10.

[^83]: *See* Comments of AT&T at 6-7.

[^84]: *See* Reply Comments of Omnipoint .

[^85]: *See 700 MHz First Report & Order, above* at ¶ 127.

[^86]: *See* PSINet Comments at 8.

[^87]: *See* *Auction 31 Comment Public Notice* at 10.

[^88]: *See* PSINet Comment at 9.

[^89]: *See* *Auction 31 Comment Public Notice* at 10.

[^90]: *See* Attachment I.