**DA 01-2507**

**October 31, 2001**

**AUCTION OF LICENSES FOR**

**MULTIPLE ADDRESS SYSTEMS SPECTRUM**

**13 Qualified Bidders**

Report No. AUC-01-42-D (Auction No. 42)

In this *Public Notice,* the Federal Communications Commission ("FCC" or
"Commission") identifies 13 applicants found to be qualified to bid in
the Multiple Address Systems ("MAS") Spectrum Auction ("Auction No.
42"). Auction No. 42 is scheduled to begin on Wednesday, November 14,
2001, and will include 5,104 multiple address systems licenses. In
addition, this *Public Notice* contains bidding instructions and other
important information regarding Auction No. 42.

**Attachment A** lists each of the 13 qualified bidders, their upfront
payments, and maximum eligibility in bidding units.[^1]

**Attachment B** lists the number of licenses selected on each qualified
bidder's FCC Form 175. In previous auctions, Attachment B has listed the
licenses selected in each accepted application. However, due to the
large volume of licenses in Auction No. 42, lists of the licenses
selected in each accepted application will be provided in electronic
format only, available with this public notice at
<http://www.fcc.gov/wtb/auctions/42/>.

***Waiver Request:*** In Attachment B, applications denoted with an
asterisk (\*) have pending waiver request(s). In no event does
acceptance of such applications indicate that the waiver requests have
been or will be granted. Final resolution of such waiver requests will
be released separately and may affect an applicant's qualifications to
participate in Auction No. 42, either entirely or with respect to
particular licenses.

**Attachment C** lists the applicants that submitted FCC Form 175
applications, but did not qualify to bid in this auction.

**Attachment D** describes how to participate in the mock auction.

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

In order to participate effectively in the auction, qualified bidders
should again familiarize themselves with the auction rules and other
information contained in the *Auction No. 42 Procedures Public Notice*
and subsequent public notices.[^2] An electronic copy of this *Public
Notice*, and other documents related to Auction No. 42, are available on
the Commission's auctions website,
[[http://www.fcc.gov/wtb/auctions]{.underline}](http://www.fcc.gov/wtb/auctions).
The following information provides additional guidance.

***Registration**.* Qualified bidders have been automatically registered
for the auction. For security reasons, the Commission will confirm
registration through two separate mailings of registration materials.
Both mailings will be sent to the bidder's contact person at the contact
address identified in the bidder\'s FCC Form 175. Upon receipt of both
mailings, each bidder should be in possession of the following
information:

-   Bidder Identification Number

-   At least two SecurID cards

-   SecurID card usage instructions

-   Bidding System User Manual

-   FCC Telephonic Bidding phone number

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

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

Any qualified bidder listed in Attachment A of this *Public Notice* that
has not received both registration mailings **by noon on Wednesday,
November 7, 2001**, must contact the Auctions Hotline directly at (717)
338-2888. Receipt of both registration mailings is critical to
participating in both the mock auction and the actual auction event, and
it is the responsibility of each qualified bidder to ensure that all
registration information has been received.

***Registration Material Replacement**.* Lost bidder identification
numbers or SecurID cards can be replaced only by appearing [in
person]{.underline} at the FCC Headquarters, located at 445 12^th^
Street, SW, Washington, DC. Only an authorized bidder, the contact
person or the certifying official, as designated on the 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 replacements.
Qualified bidders requiring replacements must call technical support
prior to arriving at the FCC.

If you receive a damaged card(s), the contact person should call
Technical Support to request a replacement. Technical Support will
verify that the card is unusable, and a new card will be sent by Federal
Express along with a self-addressed stamped envelope for returning the
damaged card(s).

***Bidding**.* The Commission will conduct this auction over the
Internet. Telephonic bidding will also be available. As a contingency,
the FCC Wide Area Network, which requires access to a 900 number
telephone service, will be available as well.

Qualified bidders are permitted to bid telephonically or electronically.
In either case, **each authorized bidder** must have its own Remote
Security Access SecurID card, which the FCC will provide at no charge.
Each applicant with less than three authorized bidders will be issued
two SecurID cards, while applicants with three authorized bidders will
be issued three cards. For security purposes, the SecurID cards and the
instructions for using them are only mailed to the contact person at the
contact address listed on the FCC Form 175. Please note that each
SecurID card is tailored to a specific auction. SecurID cards issued for
other auctions or obtained from a source other than the FCC will not
work for Auction No. 42. The telephonic bidding phone number will be
supplied in the first mailing along with the confidential bidder
identification number.

Please note that the SecurID cards can be recycled, and we encourage
bidders to return the cards to the FCC. We will provide pre-addressed
envelopes that bidders may use to return the cards once the auction is
over.

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

In their registration materials, all qualified bidders will be supplied
with a telephone number for telephonic bidding. Bidders choosing to bid
telephonically are required to use this telephone number to place bids.
Electronic bidders may use this telephone number as an alternate method
of bidding in the event they are unable to submit their bids
electronically. In the past, four to five minutes have been necessary to
complete a bid submission. **Due to the large number of licenses in
Auction No. 42, bidders may require more time to submit their bids than
in past auctions. Telephonic bidders are therefore reminded to allow
sufficient time to bid by placing their calls well in advance of the
close of a round.**

***Minimum Opening Bids**.* There will be a minimum opening bid for each
license in Auction No. 42, calculated in accordance with the formulas
previously announced.[^3] The minimum opening bid amount is subject to
reduction at the discretion of the Commission. However, bidders should
be aware that the Commission will not entertain requests to lower
minimum opening bids. The agency will exercise its discretion, if at
all, independent of any communications from bidders.

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

***Bidding Schedule**.* On Wednesday, November 14, 2001, there will be
two rounds of bidding as follows:

  ----------------------------- --------------- ----- --------------------
  Bidding Period                9:00 a.m.       \-    11:00 a.m. ET

  Bidding Period                2:00 p.m.       \-    4:00 p.m. ET
  ----------------------------- --------------- ----- --------------------

The bidding schedule for Thursday, November 15, 2001, and continuing
until further notice, will be:

Bidding Period 9:00 a.m. - 10:00 a.m. ET

Bidding Period 11:00 a.m. - 12:00 p.m. ET

Bidding Period 1:30 p.m. - 2:30 p.m. ET

Bidding Period 3:30 p.m. - 4:30 p.m. ET

Round results will be provided after the close of each round. Due to the
large number of licenses, however, it may take up to 30 minutes before
results are posted. The FCC will set the pace of the auction based upon
its monitoring of the bidding and its assessment of the auction\'s
progress. All schedule changes will be made by announcement during the
course of the auction.

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

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

***Monitoring Round Results.*** Attachment E (How to Monitor the FCC
Auctions On-Line) of this *Public Notice* provides instructions for
reviewing and downloading round results, as well as other material
related to Auction No. 42, that will be released by the Commission
during the course of the auction.

***Amendments to FCC Form 175s**.* Applicants are responsible for
maintaining the accuracy and completeness of information furnished in
their FCC Form 175 and exhibits.[^4] Applicants should amend their
applications within ten business days from the occurrence of a
reportable change. Filers should make modifications to their FCC Form
175 electronically, and submit a letter briefly summarizing the changes
to:

Margaret Wiener

Chief, Auctions and Industry Analysis Division

Wireless Telecommunications Bureau

Federal Communications Commission

445 12^th^ Street, SW, Room 4-A760

Washington, DC 20554

A courtesy copy should also be sent to Francis Gutierrez, at the same
address, Room 4-A425.

Applicants that send their letters via Federal Express or any other
express mail service should use the zip code "20024." Hand-delivered or
messenger-delivered letters will be accepted at 9300 East Hampton Drive,
Capitol Heights, MD 20743.[^5]

As described in the Commission\'s rules, applicants may make only minor
corrections to their FCC Form 175 applications (*e.g*., authorized
bidder, fax number).[^6] Major modifications (*e.g.*, changing the
markets applied for, changing control of the applicant, changing the
certifying official) will not be accepted.[^7]

***Due Diligence.*** Bidders are reminded that they should continue to
conduct due diligence examinations regarding incumbents and other legal
developments with respect to the licenses for which they may bid during
the course of the auction.[^8]

***Mock Auction**.* The FCC will conduct a mock auction on Friday,
November 9, 2001, which will allow qualified bidders to familiarize
themselves with the new internet bidding system. Only qualified bidders
will be permitted to participate in the mock auction. Telephonic bidding
will also be available. As a contingency, the FCC Wide Area Network,
which requires access to a 900 number telephone service, will be
available as well. Qualified bidders that wish to place bids
telephonically, should use the telephone number supplied in the Auction
No. 42 registration materials.

The mock auction will include all Auction No. 42 licenses, and will
follow the rules governing the actual auction. **The mock auction will
be identified as Auction No. 74. The program will assume that each
bidder applied for all MAS licenses. The program will also assume that
each bidder submitted upfront payments of \$50,000, which corresponds to
50,000 bidding units.** The mock auction will simulate the start of the
auction and all bidders will be required to be active on 80 percent of
their bidding units, or risk having a waiver automatically applied.

Electronic bidders participating in the mock auction are advised to
review the Bidding System User Manual provided in the second mailing.
Attachment D of this *Public Notice* provides instructions for accessing
the FCC Mock Auction site.

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

  --------------------------- -------------------------------------------
  [Round 1 Bidding            9:00 a.m. ‑ 11:00 a.m. ET
  Period]{.underline}         

                              

  [Round 2 Bidding            12:30 p.m. ‑ 1:30 p.m. ET
  Period]{.underline}         

                              

  [Round 3 Bidding            2:30 p.m. - 3:00 p.m. ET
  Period]{.underline}         

                              

  [Round 4 Bidding            4:00 p.m. - 4:30 p.m. ET
  Period]{.underline}         

                              
  --------------------------- -------------------------------------------

**OTHER IMPORTANT INFORMATION**

***Prohibition of Collusion*.** Bidders are reminded that Section
1.2105(c) of the Commission\'s Rules prohibits applicants for the same
geographic license area from communicating with each other during the
auction about bids, bidding strategies, or settlements unless they have
identified each other as parties with whom they have entered into
agreements under Section 1.2105(a)(2)(viii). For Auction No. 42, this
prohibition became effective at the filing deadline of short-form
applications on Friday, September 28, 2001, and will end on the
post-auction down payment deadline. The post-auction down payment
deadline will be announced in a future public notice. If parties had
agreed in principle on all material terms, those parties must have been
identified on the short-form application under Section 1.2105(c), even
if the agreement had not been reduced to writing. If parties had not
agreed in principle by the filing deadline, an applicant should not have
included the names of those parties on its application, and must not
have continued negotiations with other applicants for licenses in the
same geographic area.[^9]

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 importance
to that application.[^10] 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 therefore
are required to make such notification to the Commission immediately
upon discovery.[^11] For further details regarding the prohibition
against collusion refer to the *Auction No. 42 Procedures Public
Notice*.[^12]

Winning bidders will be required to disclose in their long-form
applications the specific terms, conditions, and parties involved in all
bidding consortia, joint ventures, partnerships, and other arrangements
entered into relating to the competitive bidding process. Bidders found
to have violated the anti-collusion rule may be subject to
sanctions.[^13] In addition, applicants are reminded that they are
subject to the antitrust laws, which are designed to prevent
anti-competitive behavior in the marketplace. If a bidder is found to
have violated the antitrust laws in connection with its participation in
the competitive bidding process, it may be subject to forfeiture of its
upfront payment, down payment, or full bid amount and may be prohibited
from participating in future auctions.[^14]

***Long-Form Applications.*** Applicants that claim status as a small
business should be aware that at the long-form application stage, they
will be subject to more extensive reporting requirements contained in
the Commission\'s Part 1 ownership disclosure rule.[^15] In addition,
applicants with foreign ownership interests will be required to comply
with 47 U.S.C. Section 310(b) at the long-form application stage.

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

**[- FCC -]{.smallcaps}**

[^1]: We note, however, that IBG, Inc. ("IBG") is listed as a qualified
    bidder only conditionally, pending resolution of a request for
    waiver, filed on October 25, 2001, of the upfront payment deadline.
    The Wireless Telecommunications Bureau reserves the right to find
    IBG ineligible to bid and dismiss its short-form application (FCC
    Form 175) should the request for waiver be denied.

[^2]: *See* Multiple Address Systems Spectrum Auction Scheduled for
    November 14, 2001; Notice and Filing Requirements, Minimum Opening
    Bids, Upfront Payments and Other Procedural Issues, *Public Notice*,
    DA 01-1789 ("*Auction No. 42 Procedures Public Notice*").

[^3]: *Id.* at 27-28. For information on the minimum opening bid for
    each of the licenses offered in Auction No. 42, *see id.,*
    Attachment A.

[^4]: 47 C.F.R § 1.65.

[^5]: *See* FCC Announces Changes in Filing Procedures*, Public Notice*,
    DA 01-2430 (rel. Oct. 17. 2001); FCC Announces Change in Filing
    Location for Paper Documents, *Public Notice*, DA 01-2436 (rel. Oct.
    17, 2001); Clarification on FCC's Announced Changes in Filing
    Procedures*,Public Notice*, DA 01-2451 (rel. Oct. 18, 2001).

[^6]: 47 C.F.R. § 1.2105(b).

[^7]: *Id*.

[^8]: *Auction No. 42 Procedures Public Notice* at 6-7 and Attachment B.
    The Public Safety Private Wireless Division will release shortly a
    public notice providing supplemental due diligence information on
    pending MAS matters. However, applicants are reminded that they are
    solely responsible for identifying associated risks and
    investigating and evaluating the degree to which matters may affect
    their ability to bid on, otherwise acquire, or make us of licenses
    available in Auction No. 42.

[^9]: Wireless Telecommunications Bureau Clarifies Spectrum Auction
    Anti-Collusion Rules, *Public Notice*, 11 FCC Rcd 9645 (1995).

[^10]: 47 C.F.R. § 1.65.

[^11]: The Commission recently amended Section 1.2105 to require auction
    applicants to report prohibited communications in writing to the
    Commission immediately, but in no case later than five business days
    after the communication occurs. Amendment of Part 1 of the
    Commission's Rules -- Competitive Bidding Procedures, *Seventh
    Report and Orde*r, FCC 00-1270, at 10 (rel. Sept. 27, 2001). This
    rule takes effect 30 days after publication in the Federal Register.
    *Id*. at 11.

[^12]: *Auction No. 42 Procedures Public Notice* at 4-5 and Attachment
    I.

[^13]: 47 C.F.R. §§ 1.2105(c), 1.2107(d), and 1.2109(d).

[^14]: 47 C.F.R. §1.2109 (d).

[^15]: 47 C.F.R. § 1.2112(b)(2).