DA 07-1176

March 14, 2007

**AUCTION OF 1.4 GHz BAND LICENSES CLOSES**

**Winning Bidders Announced for Auction No. 69**

**Down Payments due March 28, 2007**

**FCC Forms 601 and 602 due March 28, 2007**

**Final Payments due April 11, 2007**

***Ten-Day Petition to Deny Period***

**Report No. AUC-07-69-E (Auction No. 69)**

On March 8, 2007, the Federal Communications Commission completed the
auction of licenses in the paired 1392-1395 MHz and 1432-1435 MHz bands
and in the unpaired 1390-1392 MHz band (Auction No. 69), raising (in net
bids) a total of \$123,599,000. In this auction, two winning bidders won
a total of 64 licenses.

This Public Notice provides detailed information concerning winning
bidders, down payments, final payments and/or refunds, FCC Forms 601 and
602 filing requirements, requests for rule waivers, and licensing
matters. Key information appears in the following attachments:

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

> **Attachment B:** "Bidder Payment/Refund" lists down payments and
> final payments owed by winning bidders and refunds due, if any.[^1]
>
> **Attachment C:** "Instructions for Completing FCC Form 601 & FCC Form
> 602" provides detailed information about how a winning bidder should
> complete the required FCC Form 601 and FCC Form 602 for 1.4 GHz band
> license applications.

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

## Down Payments

The Commission's rules require that within ten business days after the
release of this Public Notice, in this case by **6:00 p.m. Eastern Time
(ET) on March 28, 2007**, winning bidders in Auction No. 69 must have on
deposit with Mellon Bank in Pittsburgh, Pennsylvania, enough funds to
cover down payments on winning bids.[^2] If a winning bidder's upfront
payment is not sufficient to meet this requirement, the winning bidder
must deposit additional funds to meet its required down payment.[^3]

The amount now due from each winning bidder, if any, is set out in the
"Additional Amount Due after Upfront Payment Balance Applied Due by
March 28, 2007" column of Attachment B. **Note that a payment and FCC
Remittance Advice Form (FCC Form 159) are necessary only if a winning
bidder's upfront payment does not cover the required total down payment
(as reflected in Attachment B). Each winning bidder's total deposit must
be twenty percent of the net amount of its winning bids.**

## Final Payments

Each winning bidder will be required to submit the balance of the net
amount of its winning bids by April 11, 2007,[^4] as set out in the
"Final Balance Due By April 11, 2007 or (Refund)" column of Attachment
B. All winning bidders, including those winning bidders that apply for a
tribal lands bidding credit, must pay the full amount of the Final
Balance Due shown in Attachment B by **6:00 p.m. ET on April 11, 2007**,
(or by 6:00 p.m. ET on April 25, 2007, along with the five percent late
fee required by Section 1.2109(a) of the Commission's rules).[^5] Full
and timely payment of winning bids and any applicable late fees must be
made in accordance with Section 1.2109(a) and must occur before action
will be taken upon a winning bidder's long-form application (FCC Form
601).[^6] Specifically, licenses will be granted only after the full and
timely payment of winning bids and any applicable late fees, in
accordance with 47 C.F.R. § 1.2109(a).

If an applicant's request for a tribal lands bidding credit is approved,
the Commission will deduct the amount of the tribal lands bidding credit
from the eligible applicant's auction payments on deposit (including the
final payment), and that amount will later be refunded to the payer of
record as identified on FCC Remittance Advice Form (FCC Form 159).

## Method of Payment for Down and Final Payments

All payments must be in U.S. dollars and made in the form of a wire
transfer.[^7] No personal checks, credit card payments, or other forms
of payment will be accepted. All payments must be accompanied by a
completed FCC Form 159.[^8]

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

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

> ABA Routing Number: 043000261
>
> Receiving Bank: Mellon Pittsburgh
>
> 500 Ross Street
>
> Pittsburgh, PA 15262
>
> BNF: FCC Account Number 911-6106
>
> OBI Field: (Skip one space between each information item) "AUCTIONPAY"
>
> APPLICANT'S FCC REGISTRATION NUMBER (FRN): (same as FCC Form 159,
> block 21)
>
> PAYMENT TYPE CODE: (same as FCC Form 159, block 24A: "A69D")
>
> FCC CODE 1: (same as FCC Form 159, Block 28A: "69")
>
> PAYOR NAME: (same as FCC Form 159, Block 2)

LOCKBOX NO.: #358850

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

Wire transfers for down payments must be received by Mellon Bank by
**6:00 p.m. ET on March 28, 2007**. A winning bidder should coordinate
with its financial institution ahead of time regarding its wire transfer
and allow sufficient time for the wire transfer to be initiated and
completed prior to the deadline.

At least one hour before placing the order for the wire transfer (but on
the same business day), winning bidders must send by facsimile the
completed FCC Form 159 to Mellon Bank at (412) 209-6045. Proper
completion of the FCC Form 159 is critical to ensuring correct credit of
bidder deposits. A winning bidder must use the same FCC Registration
Number (FRN) used on its FCC Form 175.

Failure to complete this down payment process by **6:00 p.m. ET on March
28, 2007**, will result in default.[^9]

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

Wire transfers of final payments must be received by Mellon Bank by
**6:00 p.m. ET on April 11, 2007** (or by 6:00 p.m. ET on April 25,
2007, along with the five percent late fee required by Section 1.2109(a)
of the Commission's rules).[^10] A winning bidder should coordinate with
its financial institution ahead of time regarding its wire transfer and
allow sufficient time for the wire transfer to be initiated and
completed prior to the deadline.

Payments must be preceded by the completed FCC Remittance Advice Form
(FCC Form 159). The winning bidder must send by facsimile, at least one
hour prior to placing the order for the wire transfer, but on the same
business day that it pays the balance due to Mellon Bank, a completed
FCC Form 159 to Mellon Bank at (412) 209-6045. On the FCC Form 159, the
applicant must use the same FRN used on its FCC Form 175.

Failure to complete the final payment by **6:00 p.m. ET on April 25,
2007** (along with the five percent late fee, if applicable) will result
in default.[^11]

## Default and Disqualification Payments

The Commission imposes payments on bidders that default on payments due
after an auction closes, and those that are disqualified.[^12]

If a winning bidder defaults or is disqualified after the close of the
auction (*i.e.*, fails to remit the required down payment within the
prescribed period of time, fails to submit a timely long-form
application, fails to make full payment, or is otherwise disqualified),
the defaulting bidder will be subject to the payments described in 47
C.F.R. § 1.2104(g)(2). The payments include both a deficiency payment,
equal to the difference between the amount of the bidder's bid and the
amount of the winning bid the next time a license covering the same
spectrum is won in an auction, plus an additional payment equal to ten
percent of the defaulter's bid or the subsequent winning bid, whichever
is less.[^13]

If a winning bidder fails to remit the required down payment within ten
business days after the Commission has released this Public Notice, in
this case by March 28, 2007, the bidder will be deemed to have
defaulted, its long-form application will be dismissed, and it will be
liable for a default payment as described above.[^14]

If a winning bidder fails to pay the balance of its winning bid in a
lump sum by the applicable deadline as specified by the Commission, it
will be allowed to make payment within ten business days after the
payment deadline, provided that it also pays a late fee equal to five
percent of the amount due.[^15] When a winning bidder fails to pay the
balance of its winning bid plus the late fee by the late payment
deadline, it will be deemed to have defaulted on its license(s) and
subject to the applicable default payments.[^16]

[]{.mark}

Licenses will be awarded upon completion of the review of each
applicant's long-form application and a determination that the
applicant's long-form application meets Commission requirements for
grant but only after the full and timely payment of winning bids and any
applicable late fees.[^17] If a winning bidder defaults on any of its
required payments or is disqualified for any reason after having made
the required payments, it will be deemed to have defaulted, its
application will be dismissed, and it will be liable for the payment set
forth in Section 1.2104(g)(2).[^18]

In the event of a default, the Commission, at its discretion, may either
auction the license to existing or new applicants or offer it to the
other highest bidders (in descending order) at their final bids.[^19]

Additionally, a bidder that is found to have violated the antitrust laws
or the Commission's rules in connection with its participation in the
competitive bidding process may be subject, in addition to any other
applicable sanctions, to forfeiture of its upfront payment, down
payment, or full bid amount, and may be prohibited from participating in
future auctions.[^20]

## Refund of Excess Payments 

Upfront monies on deposit that are in excess of the required down
payment, final payment and/or default payment amounts will be refunded
to the payer of record as identified on the FCC Form 159 promptly at the
close of the auction if the necessary refund request and wire transfer
instructions have been received. Applicants should provide this
information by accessing the "See Wire Transfer for Refund Purposes"
link under the Post-Auction section of the My Auctions web page by
**April 11, 2007**. After this date, applicants must send a request for
refund along with the necessary wire transfer instructions and FRN by
facsimile to Gail Glasser of the Office of the Managing Director at
(202) 418-2843. Any questions concerning refunds should be referred to
Gail Glasser at (202) 418-0578.

## FCC Form 601

Prior to **6:00 p.m. ET on March 28, 2007,** winning bidders must submit
electronically a properly completed long-form application (FCC Form 601)
for all licenses for which it was the winning bidder in Auction No. 69.
Attachment C sets out instructions for completing the FCC Form 601,
including information about the pre-filling of the FCC Form 601 from a
winning bidder's FCC Form 175.[^21]

**An applicant that fails to submit the required long-form application
before the specified deadline, and fails to establish good cause for any
late-filed submission, shall be deemed to have defaulted and shall be
subject to the payments set forth in Section 1.2104(g) of the
Commission's rules.**[^22]

## Tribal Lands Bidding Credit

The Commission has implemented a tribal lands bidding credit to
encourage the growth of wireless services in federally recognized tribal
lands. For information relating to the tribal lands bidding credit, see
Attachment C.

## FCC Form 602 

Pursuant to Sections 1.919 and 1.2107(f) of the Commission's rules, an
applicant for a license in an auctionable service must have on file with
the Commission a current FCC Form 602 reporting the applicant's complete
and accurate ownership information.[^23] Filing an FCC Form 602 is a
separate requirement from, and in addition to, the ownership reporting
requirements associated with filing FCC Form 601, Exhibit A, as set
forth in Attachment C.[^24] For further information on filing the FCC
Form 602 Ownership Disclosure Information through electronic filing, see
instructions in Attachment C.

[]{.mark}

## Maintaining Accuracy of Information

After the auction closes, applicants are required to make all changes in
the Commission's Universal Licensing System ("ULS") using FCC Form
601.[^25] With the release of this Public Notice, applicants are no
longer required to maintain the accuracy and completeness of information
furnished on their FCC Form 175 short-form applications and exhibits.

## Application Processing and License Grant

After its initial review of the FCC Forms 601, the Commission will issue
a public notice listing the applications that are acceptable for filing.
Pursuant to Section 1.2108(b) of the Commission's rules, interested
parties will have ten business days from release of that public notice
to file petitions to deny any of these applications.[^26] An applicant
may file an opposition to any petition to deny within five business days
after the time for filing petitions to deny has expired.[^27] The
petitioner may file a reply to such opposition within five business days
after the time for filing oppositions has expired.[^28] After the
long-form review process, if the Commission determines that additional
payments from applicants may be required, the Wireless
Telecommunications Bureau will provide further instructions in a future
public notice regarding any such additional payments. If the Commission
determines that an applicant is otherwise qualified, that there are no
substantial and material issues of fact raised in any petition to deny,
and that no additional payments are due, it will issue a public notice
announcing grant of the license to the applicant.

**Frivolous Pleadings**. The Commission reminds parties to our
proceedings and their attorneys that the Commission intends to use its
authority fully to deter the filing of frivolous pleadings.[^29]

## Anti-collusion Rules

To ensure the competitiveness of the auction process, the Commission's
rules prohibit competing applicants from communicating with each other
about bids, bidding strategies, or settlements, unless such applicants
have identified each other on their FCC Form 175 short-form applications
as parties with whom they have entered into agreements under section
1.2105(a)(2)(viii).[^30] As explained more fully in the *Auction No. 69
Qualified Bidders Public Notice*,[^31] this prohibition began at the
short-form application filing deadline and ends at the down payment
deadline, which is 6:00 p.m. ET on March 28, 2007.[^32] The prohibition
applies to all applicants in Auction No. 69 (unless they have identified
each other on their FCC Form 175 applications as parties with whom they
have entered into agreements under Section 1.2105(a)(2)(viii))
regardless of whether an applicant became a qualified bidder or actually
participated in the bidding, and the prohibition continues for all
applicants until the down payment deadline regardless of whether a
winning bidder needs to make an additional payment by the down payment
deadline.[^33] Applicants certified their compliance with Section
1.2105(c) when their FCC Form 175 short-form applications were signed.

## Return of SecurID^®^ Tokens

Bidders are encouraged to return their SecurID^®^ tokens to the FCC for
recycling by March 28, 2007. The Commission will send bidders a copy of
this public notice and a pre-addressed, stamped envelope. All bidders
should use the envelope to return the tokens now that the auction is
closed. Please note that each SecurID^®^ token is tailored to a specific
auction. Therefore, the tokens issued for this auction will not work for
future auctions.

**For further information, contact**

+-------------------------------+--------------------------------------+
| News Media:                   | Chelsea Fallon at (202) 418-7991     |
|                               |                                      |
|                               | (Wireless Telecommunications Bureau) |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Technical Support Hotline:    | FCC Auctions Technical Support       |
|                               | Hotline at                           |
| (Hardware/Software Issues)    |                                      |
|                               | \(877\) 480-3201, option nine; (202) |
|                               | 414-1250;                            |
|                               |                                      |
|                               | or (202) 414-1255 (text telephony    |
|                               | (TTY))                               |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Office of the Managing        | Gail Glasser at (202) 418-0578       |
| Director                      |                                      |
|                               |                                      |
| Auctions Accounting Group     |                                      |
|                               |                                      |
| (Payment, FCC Form 159 and    |                                      |
| refund questions)             |                                      |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Wireless Telecommunications   | Erin McGrath, Attorney, at (202)     |
| Bureau,                       | 418-0620                             |
|                               |                                      |
| Mobility Division             | Michael Connelly, Attorney, at (202) |
|                               | 418-0620                             |
| (FCC Form 601 and 602         |                                      |
| questions)                    | Keith Harper, Electronics Engineer,  |
|                               | at (202) 418-0620                    |
|                               |                                      |
|                               | Bettye Woodward, Analyst, at (202)   |
|                               | 418-0620                             |
+-------------------------------+--------------------------------------+
|                               |                                      |
+-------------------------------+--------------------------------------+
| Wireless Telecommunications   | Barbara Sibert, Project Manager, at  |
| Bureau, Auctions and Spectrum | (717) 338-2868                       |
| Access Division               |                                      |
| (Auction-related questions)   | Howard Davenport, Attorney, at (202) |
|                               | 418-0660                             |
+-------------------------------+--------------------------------------+

To request materials in accessible formats (Braille, large print,
electronic files, audio format) for people with disabilities, send an
e-mail to <fcc504@fcc.gov> or call the Consumer and Governmental Affairs
Bureau at (202) 418-0530 or (202) 418-0432 (TTY).

\- FCC -

[^1]: The amounts listed in Attachment B are based on upfront payments
    and winning bids. The amounts have not been adjusted to reflect any
    upfront payments already refunded.

[^2]: 47 C.F.R. § 1.2107(b).

[^3]: *Id*.

[^4]: 47 C.F.R. § 1.2109(a).

[^5]: *Id.*

[^6]: 47 C.F.R. § 1.2109. A winning bidder that is found unqualified to
    be a Commission licensee will be deemed to have defaulted, its
    application will be dismissed, and it will be liable for the payment
    set forth in Sections 1.2104(g)(2) or 1.2104(g)(3) of the
    Commission's rules, whichever is applicable. *See* 47 C.F.R. §§
    1.2104(g), 1.2109(c).

[^7]: A wire transfer is a transaction that you initiate through your
    bank. It authorizes your bank to wire funds from your account to our
    lockbox bank, the Mellon Bank in Pittsburgh, Pennsylvania.
    Additional information on wire transfers is available on the
    Commission's web site at: <http://www.fcc.gov/fees/wiretran.html>.

[^8]: Copies of the FCC Form 159 may be obtained by calling the
    Commission's Forms Distribution Center at (800) 418-3676 (outside
    Washington, D.C.) or (202) 418-3676. Copies of the FCC Form 159 can
    also be obtained via the Internet
    (<http://www.fcc.gov/formpage.html>) or by calling from the handset
    of a facsimile machine the Commission's Fax Information System at
    (202) 418-2830.

[^9]: Section D., below.

[^10]: 47 C.F.R. § 1.2109(a).

[^11]: Section D., below.

[^12]: 47 C.F.R. §§ 1.2104(g), 1.2109.

[^13]: Auction of 1.4 GHz Band Licenses Scheduled for February 7, 2007;
    Notice and Filing Requirements, Minimum Opening Bids, Upfront
    Payments and Other Procedures for Auction No. 69, AU Docket No.
    06-104, *Public Notice*, 21 FCC Rcd 12393, 12440 ¶ 192-93 (2006).

[^14]: 47 C.F.R. §§ 1.2104(g), 1.2109(g)(2).

[^15]: 47 C.F.R. §§ 1.2109(a).

[^16]: 47 C.F.R. §§ 1.2104(g)(2), 1.2109(a), 1.2109(c).

[^17]: 47 C.F.R. §§1.2109(a).

[^18]: 47 C.F.R. §§ 1.2104(g)(2), 1.2109.

[^19]: 47 C.F.R. § 1.2109(b)-(c).

[^20]: 47 C.F.R. § 1.2109(d).

[^21]: The information collection associated with FCC Form 601 was
    revised in the *Designated Entity* *Second Report and Order* and the
    revision was approved by the Office of Management and Budget (OMB)
    under Section 3507 of the Paperwork Reduction Act of 1995 (PRA) on
    September 8, 2006. *See* *Notice of Office of Management and Budget
    Action* regarding OMB Control No. 3060-0798 from John F. Morrall
    III, Acting Deputy Administrator, Office of Information and
    Regulatory Affairs, Office of Management and Budget, dated September
    8, 2006; *see also* Implementation of the Commercial Spectrum
    Enhancement Act and Modernization of the Commission's Competitive
    Bidding Rules and Procedures, WT Docket No. 05-211, *Second Report
    and Order and Second Further Notice of Proposed Rulemaking*, 21 FCC
    Rcd 4753 (2006) ("*Designated Entity* *Second Report and Order*"),
    *modified by erratum*, 21 FCC Rcd 6622 (2006), *clarified by Order
    on Reconsideration*, 21 FCC Rcd 6703 (2006).

[^22]: 47 C.F.R. §§ 1.2104(g), 1.2107(c).

[^23]: 47 C.F.R. §§ 1.919, 1.2107(f).

[^24]: We note that the FCC Form 602 ownership reporting requirement can
    be fulfilled by referencing the file number, date, and name of filer
    of the appropriate FCC Form 602. See discussion below, Attachment C.

[^25]: 47 C.F.R. § 1.65.

[^26]: 47 C.F.R. § 1.2108(b).

[^27]: 47 C.F.R. §§ 1.45(b), 1.2108(c).

[^28]: 47 C.F.R. §§ 1.45(c), 1.2108(c)*.*

[^29]: *See* Commission Taking Tough Measures Against Frivolous
    Pleadings, *Public Notice*, 11 FCC Rcd 3030 (1996).

[^30]: 47 C.F.R. §§ 1.2105(a)(2)(viii), 1.2105(c)(1). *See also*
    Amendment of Part 1 of the Commission\'s Rules -- Competitive
    Bidding Procedures, WT Docket No. 97-82, *Seventh Report and Order*,
    16 FCC Rcd 17546 (2001); *id.*, *Order on Reconsideration of the
    Third Report and Order, Fifth Report and Order, and Fourth Further
    Notice of Proposed Rule Making*, 15 FCC Rcd 15293, 15297-98 ¶¶ 7-8
    (2000).

[^31]: Auction of 1.4 GHz Band Licenses; Nine Bidders Qualified to
    Participate in Auction No. 69; *Public Notice*, DA 07-123, pp. 7-9
    (rel. January 23, 2007).

[^32]: *Id*.

[^33]: *Id*.