**DA 03-1565**

**May 13, 2003**

**AUCTION OF LICENSES FOR**

**LOWER 700 MHz BAND**

**56 Qualified Bidders**

Report No. AUC-03-49-F (Auction No. 49)

In this *Public Notice,* the Federal Communications Commission ("FCC" or
"Commission") identifies 56 applicants found to be qualified to bid in
the upcoming auction of 256 licenses in the Lower 700 MHz band C and D
blocks ("Auction No. 49"). Auction No. 49 is scheduled to begin on
Wednesday, May 28, 2003. In addition, this *Public Notice* contains
bidding instructions and other important information regarding Auction
No. 49.

**Attachment A** lists each of the 56 qualified bidders, their upfront
payments, and maximum eligibility in bidding units.[^1]

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

***Waiver Requests***: 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. 49 with respect to particular licenses or
eligibility for a bidding credit.[^2]

**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. 49 Procedures Public Notice*
and subsequent public notices.[^3] This *Public Notice* and other
documents related to Auction No. 49 are available on the Commission's
auctions website,
[[http://wireless.fcc.gov/auctions](http://www.fcc.gov/wtb/auctions)/]{.underline}.
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

-   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 Tuesday, May
20, 2003**, 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 a bidder receives a damaged card(s), the bidder's 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, and telephonic bidding will be available as well. As a
contingency plan, bidders may also dial in to the FCC Wide Area Network.

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. 49. 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. **Telephonic bidders are 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. 49, calculated in accordance with the formulas
previously announced.[^4] 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
Automated Auction System, and should read this information carefully.

***Bidding Schedule**.* The bidding schedule for Wednesday, May 28,
2003, will be:

[]{.mark}

Bidding Period 9:00 a.m. - 10:30 a.m. ET

Bidding Period 2:00 p.m. - 3:30 p.m. ET

The bidding schedule for Thursday, May 29, 2003, 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 approximately 15 to 30 minutes after the
close of each round. 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 subsequent 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. 49, that will be released by the Commission
during the course of the auction.

***Auction Tracking Tool (ATT).*** The FCC has developed a tool for
tracking the results of its auctions. The ATT is a stand-alone
application that runs on Windows 95, 98, 2000, ME, NT, and XP operating
systems. It does not require any other software, although some advanced
features require Microsoft Excel. The tool will allow users to import
round result files and analyze bidding results after each round of the
auction. For installation and user instructions, see the README file,
the ATT User Manual, or the on-line help system that accompanies the
ATT.

The ATT version specifically designed for Auction No. 49 is available
for downloading and should be used for both the mock auction and the
actual auction. The ATT is located at the auctions web site,
<http://wireless.fcc.gov/auctions/>. From the options on the left,
select **Tracking Tools**.

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

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

-   Microsoft Windows 95, 98, NT, 2000, ME or XP

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-   Microsoft Excel 97 or higher

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-   The FCC simultaneous multiple-round auction format

***Amendments to FCC Form 175s**.* Applicants are responsible for
maintaining the accuracy and completeness of information furnished in
their FCC Form 175 and exhibits.[^5] 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,
by electronic mail to the attention of Margaret Wiener, Chief, Auctions
and Industry Analysis Division, at the following address:
<auction49@fcc.gov>. A separate copy of the letter should be faxed to
Howard Davenport, Auctions and Industry Analysis Division, (202)
418-0890. Questions about other changes should be directed to Howard
Davenport at (202) 418-0660.

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] Bidders should be aware that certain
applications (including those for modification), petitions for
rulemaking, requests for special temporary authority ("STA"), waiver
requests, petitions to deny, petitions for reconsideration, and
applications for review may be pending before the Commission and relate
to particular applicants or incumbent licensees. In addition, certain
judicial proceedings that may relate to particular applicants or the
licenses available in Auction No. 49 may be commenced, or may be pending
or subject to further review. We note that resolution of these matters
could have an impact on the availability of spectrum in Auction No. 49.
Some of these matters (whether before the Commission or the courts) may
not be resolved by the time of the auction.[^9]

Bidders are solely responsible for identifying associated risks and for
investigating and evaluating the degree to which such matters may affect
their ability to bid on, otherwise acquire, or make use of licenses
available in Auction No. 49.

***Mock Auction***. The FCC will conduct a mock auction on Thursday, May
22, 2003, which will allow qualified bidders to familiarize themselves
with the FCC Automated Auction System. Only qualified bidders will be
permitted to participate in the mock auction. The Bureau will conduct
this auction over the Internet, and telephonic bidding will be available
as well. As a contingency plan, bidders may also dial in to the FCC Wide
Area Network. Qualified bidders that wish to place bids telephonically
should use the telephone number supplied in the Auction No. 49
registration materials.

The mock auction will include all Auction No. 49 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 CMA and EAG licenses. The program will also
assume that each bidder submitted upfront payments of \$3,000,000, which
corresponds to 3,000,000 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 current bidding eligibility. A bidder not meeting
this requirement will have a waiver automatically applied (if the bidder
has any waivers available), or its current eligibility will be
permanently reduced (if the bidder has no waivers remaining), possibly
eliminating the bidder from the auction.

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 Thursday, May 22, 2003, will be:

  --------------------------- -------------------------------------------
  [Round 1 Bidding            9:00 a.m. ‑ 10:00 a.m. ET
  Period]{.underline}         

                              

  [Round 2 Bidding            11:00 a.m. ‑ 12:00 p.m. ET
  Period]{.underline}         

                              

  [Round 3 Bidding            1:00 p.m. - 1:30 p.m. ET
  Period]{.underline}         

                              

  [Round 4 Bidding            2:00 p.m. - 2:30 p.m. ET
  Period]{.underline}         

                              

  [Round 5 Bidding            3:00 p.m. - 3:15 p.m. ET
  Period]{.underline}         

                              

  [Round 6 Bidding            4:00 p.m. - 4:15 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. 49, this
prohibition became effective at the filing deadline of short-form
applications on Friday, April 11, 2003, 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.[^10]

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.[^11] 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.[^12] For further details regarding the prohibition
against collusion refer to the *Auction No. 49 Procedures Public
Notice*.[^13]

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.[^14] 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.[^15]

***Long-Form Applications.*** Applicants that claim status as a small
business, very small business or entrepreneur 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.[^16] In addition, applicants with foreign ownership
interests will be required to comply with 47 U.S.C. Section 310(b) at
the long-form application stage.

For additional information regarding this *Public Notice*, please
contact Linda Sanderson, Auctions Project Manager at (717) 338-2888; or
Lyle Ishida, Auctions Analyst, or Howard Davenport, Auctions Attorney,
at (202) 418-0660.

Technical questions about software or hardware should be directed to
Technical Support at (202) 414-1250 (V) or (202) 414-1255 (TTY).

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

![](media/image2.wmf){width="6.944444444444445e-4in"
height="6.944444444444445e-4in"}

[^1]: We note, however, that Lynch 3G Communications ("Lynch") is listed
    as a qualified bidder only conditionally, pending resolution of a
    request for waiver, filed on May 6, 2003, of the upfront payment
    deadline. The Wireless Telecommunications Bureau ("Bureau") reserves
    the right to find Lynch ineligible to bid and dismiss its short-form
    application (FCC Form 175) should the request for waiver be denied.

[^2]: The following qualified bidders have pending waiver requests that
    when finally resolved may affect those bidders' eligibility for a
    bidding credit or affect the amount of the bidding credit those
    bidders receive: (i) Adams Telcom, Inc., filed on April 11, 2003;
    (ii) Cable & Communications Corporation, filed on April 10, 2003 and
    amended on May 2, 2003; (iii) Coleman County Telecommunications,
    Ltd., filed on April 11, 2003 and amended on April 28 and 29, 2003;
    (iv) Grand River Communications, Inc., filed on April 11, 2003 and
    amended on April 28 and 29, 2003; (v) Northeast Nebraska Telephone
    Company, filed on April 7, 2003 and amended on May 1, 2003; (vi)
    S.E.I. Data, Inc., filed on April 11, 2003 and amended on April 28
    and 29, 2003; and (vii) WCTA Wireless, Inc., filed on April 10,
    2003. *See* Amendment of Part 1 of the Commission's
    Rules-Competitive Bidding Procedures, WT Docket No. 97-82, *Second
    Order on Reconsideration of the Third Report and Order and Order on
    Reconsideration of the Fifth Report and Order*, FCC 03-98, at ¶¶
    10-20 (rel. May 8, 2003).

[^3]: *See* Auction of Licenses in the Lower 700 MHz Band Scheduled for
    May 28, 2003, Notice and Filing Requirements, Minimum Opening Bids,
    Upfront Payments and Other Auction Procedures, *Public Notice,* DA
    03-567, (rel. March 4, 2003), 68 Fed. Reg. 14640 ("*Auction No. 49
    Procedures Public Notice"*).

[^4]: *Auction No. 49 Procedures Public Notice* at 33-34. Attachment A
    of the *Auction No. 49 Procedures Public Notice* sets forth the
    minimum opening bids for each license offered in Auction No. 49.

[^5]: 47 C.F.R § 1.65.

[^6]: 47 C.F.R. § 1.2105(b).

[^7]: *Id*.

[^8]: *See* *Auction No. 49 Procedures Public Notice* at 9-10; *see
    also* Due Diligence Announcement for the Upcoming Auction of
    Licenses in the Lower 700 MHz Band Scheduled for May 28, 2003,
    *Public Notice*, DA 03-845 (rel. March 21, 2003).

[^9]: In the event that a final determination reached in a pending
    proceeding requires a winning bidder to surrender rights to a
    license(s) won in Auction No. 49, the Commission will return
    payments relating to such license(s) to the payer of record. The
    Commission, however, will not pay interest on the returned
    payment(s) as it lacks legal authority to do so.

[^10]: Wireless Telecommunications Bureau Clarifies Spectrum Auction
    Anti-Collusion Rules, *Public Notice*, 11 FCC Rcd 9645 (1995).

[^11]: 47 C.F.R. § 1.65.

[^12]: The Commission 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, 16 FCC Rcd 17546, 17555, ¶ 17 (2001).

[^13]: *Auction No. 49 Procedures Public Notice* at 4-6 and Attachment
    G.

[^14]: 47 C.F.R. §§ 1.2105(c), 1.2107(d), and 1.2109(d).

[^15]: 47 C.F.R. §1.2109(d).

[^16]: 47 C.F.R. § 1.2112(b)(2).