**PUBLIC NOTICE**![](media/image1.png){width="0.7388888888888889in"
height="0.7458333333333333in"}

**FEDERAL COMMUNICATIONS COMMISSION**

**445 12th STREET, S.W.**

# WASHINGTON, D.C. 20554

News Media Information: (202) 418-0500

Fax-On-Demand: (202) 418-2830

Internet: http://www.fcc.gov

ftp.fcc.gov

**DA 99-2153**

October 12, 1999

**Closed Broadcast Auction No. 25 Closes**

## 91 Winning Bidders in the Auction of 118 Broadcast Construction Permits 

Down Payments Due October 26, 1999

Long-Form Application Amendments Due November 12, 1999

*Ten Day Petition to Deny Period for AM, FM and Television;*

*Fifteen Day Petition to Deny Period for LPTV and FM Translator*

**Report No. AUC-25-H (Auction No. 25)**

On October 8, 1999, the Federal Communications Commission completed the
auction of 118 broadcast construction permits, raising (in net high
bids) a total of \$57,820,350 for the U.S. Treasury. At the conclusion
of the auction, there were 91 winning bidders acquiring a total of 115
broadcast construction permits.

This public notice provides detailed information concerning winning
bidders, down payments, bid withdrawal payments and/or deposits,
amendment filing requirements for FCC Forms 301, 346 and 349 ("long-form
applications") of winning bidders and other licensing matters. Key
information appears in the following attachments:

**Attachment A:** "Round Results, High Bids" lists winning bidders and
both the gross and net high winning bid amounts.

**Attachment B:** "Bidder Payment/Refund Report" lists down payments and
withdrawal bid payments owed by winning bidders, if any.

A copy of this public notice will be sent via overnight mail to each
winning 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. ET on October 26, 1999**, winning bidders in the Closed
Broadcast Auction (Auction No. 25) must have on deposit with Mellon Bank
in Pittsburgh, Pennsylvania, enough funds to cover all required down
payments on winning bids. If a bidder\'s upfront payment is not
sufficient to meet this requirement, the bidder must deposit additional
funds. *See* 47 C.F.R. §§1.2107(b) and 73.5003(b).[^1]

The amount now due from each bidder, if any, is set out in the last
column of **Attachment B**. *Note that only if a bidder\'s upfront
payment covers the required total of down payments and withdrawn bid
payments (as reflected in Attachment B) is no payment or FCC Form 159
necessary at this time.* Each bidder\'s down payment must be a total of
twenty (20) percent of its net winning bid(s).

**Long-Form Applications**. Winning bidders must submit minor amendments
to previously filed long-form applications within 30 days, by November
12, 1999. Winning bidders' long form applications, as amended, will be
placed on public notice, triggering the appropriate period for the
filing of petitions to deny. [*See* further discussion at pp. 6-7,
*infra*]{.underline}.

**Final payments.** After the termination of the pleading cycle for
petitions to deny (*see* 47 C.F.R. §73.5006), the Commission will issue
a public notice announcing that it is prepared to award the construction
permits of the winning bidders whose applications are uncontested.[^2]
Within ten business days after the date of that public notice,
uncontested winning bidders will be required to make full payment of the
balance of their winning bids. *See* 47 C.F.R. §§1.2109 and 73.5003(c).
Broadcast construction permits will be granted by the Commission
following the receipt of full payment. The previously filed long-form
applications of the unsuccessful competing bidders will be dismissed
following the grant of the winning bidder's construction permit.

**Method of payment.** All payments must be in U.S. dollars and made in
the form of a wire transfer. No personal checks, credit card payments,
or other forms of payment will be accepted. All payments must be
accompanied by a completed FCC Remittance Advice Form (FCC Form
159).[^3] A partially completed copy of the FCC Form 159 will be sent to
each winning bidder within three (3) business days following the release
of this public notice to facilitate submission of the correct down
payment. Winning bidders that have not received the partially completed
FCC Form 159 by that date should contact Michelle Bennett or Gail
Glasser at 202-418-1995. **However, winning bidders are ultimately
responsible for insuring the verification and submission of the correct
down payment from their bank to Mellon bank.**

**Wire transfer payments** must be **received** by Mellon Bank by **6:00
p.m. ET, on October 26, 1999.** Bidders should coordinate with their
bankers ahead of time regarding their wire transfers, and allow
sufficient time for the wire transfer to be **initiated and completed
prior to the deadline**. **As the Commission is not accountable for the
acts of an applicant's bank, bidders are urged to confirm before the
deadline that their wire transfer payments have been properly and timely
transmitted by their bank to Mellon Bank.** To submit funds by wire
transfer, bidders will need the following information:

ABA Routing Number: 043000261

Receiving Bank: Mellon Pittsburgh

BNF: 911-6106

> OBI Field: (Skip one space between each information item) "AUCTIONPAY"

TAXPAYER IDENTIFICATION NO. (same as FCC Form 159, Block 26)

PAYMENT TYPE CODE (enter \"A25D\")

FCC CODE 1 (same as FCC Form 159, Block 23A: \"25\")

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

LOCKBOX NO.: 358850

Bidders must fax a completed FCC Form 159 to Mellon Bank at 412-236-5702
at least one hour before placing the order for the wire transfer (but on
the same business day).

Proper completion of the **FCC Form 159** is critical to ensuring
correct credit of bidder deposits. **Bidders must use the same Taxpayer
Identification Number used on**

**their FCC Form 175.**[^4] Questions concerning the calculation and
submission of down

payments should be directed to Michelle Bennett or Gail Glasser at
202-418-1995.

**Withdrawal, default and disqualification payments.** The Commission
imposes payments on bidders that withdraw high bids during the course of
an auction, or that default on payments due after an auction closes, or
that are disqualified. *See* 47 C.F.R. §§ 1.2104(g), 1.2109(c),
73.5004(a). In Auction No. 25, there were no bid withdrawals during the
course of the auction.

*Bid Default/Disqualification Payments.* If a high bidder defaults or is
disqualified after the close of the auction, it will be subject to the
following payment obligations: 1) the difference between the high bid
and the amount of the winning bid the next time the construction permit
is offered by the Commission, **and** 2) a payment equal to 3 percent of
the subsequent winning bid. If the subsequent winning bid exceeds the
defaulting bidder's bid amount, the 3 percent payment will be calculated
based on the defaulting bidder's bid amount. With respect to the first
component above, the difference between the defaulted and subsequent bid
is determined by comparing the net defaulted bid with the subsequent net
bid, or the difference between the gross defaulted bid and the
subsequent gross bid, whichever is less.

Similarly, the calculation of the three percent payment is based on the
smaller of the two gross bids or smaller of the two net bids, whichever
basis (gross or net) was used to figure the first component. Thus, if
the difference between the gross bids is less than the difference
between the net bids, the three percent payment will be computed on the
lower of the gross bids. If the difference between the net bids is less
than or equal to the difference between the gross bids, the three
percent payment will be computed on the lower of the net bids. However,
if the differences between both the gross bids and the net bids are less
than or equal to zero, the three percent payment will be computed on the
lower of the net bids.

If a winning bidder fails to remit the required down payment within ten
(10) business days after the Commission has released this Public Notice,
in this case, by 6:00 p.m. ET, on October 26, 1999, the bidder will be
deemed to have defaulted, its application will be dismissed, and it will
be liable for a default payment as described above. In such event, the
Commission will offer the construction permit to the other highest
bidders (in descending order) at their final bids.[^5]

If a winning bidder fails to pay the balance of its winning bid(s) in a
lump sum by the applicable deadline for final payments as specified by
the Commission, it will be allowed to make payment within ten (10)
business days after the payment deadline provided that it also pays a
late fee equal to five (5) percent of the amount due. When a winning
bidder fails to pay the balance of its winning bid plus late fee by the
late payment deadline, it is considered to be in default on its
construction permit(s) and subject to the applicable default payments.
Construction permits will be awarded upon the full and timely payment of
winning bids and any applicable late fees. *See* 47 C.F.R. §1.2109(a). A
winning bidder that is found unqualified to be a licensee, fails to
remit the balance of its winning bid in a timely manner, or defaults or
is disqualified for any reason after having made the required down
payment, will be deemed to have defaulted and will be liable for the
payment set forth in Section 1.2104(g)(2). In such event, the Commission
shall offer the construction permit to the other highest bidders (in
descending order) at their highest bids.[^6]

Finally, bidders that are found to have violated the antitrust laws or
the Commission\'s rules in connection with their participation in the
competitive bidding process may be subject, in addition to any other
applicable sanctions, to forfeiture of their upfront payment, down
payment, or full bid amount, and may be prohibited from participating in
future auctions. *See* 47 C.F.R. § 1.2109(d).

**Refund of excess upfront payments (for winning bidders).** Upfront
monies on deposit that are in excess of the required down amounts will
be refunded to the payor of record promptly upon receipt of the
necessary wire transfer instructions. Winning bidders must fax the
necessary wire transfer instructions to Michelle Bennett at
202-418-2843. Any questions concerning refunds should be referred to
Michelle Bennett or Gail Glasser at 202-418-1995.

**Refund of upfront payments (for non-winning bidders).** Non-winning
bidders must fax the necessary wire transfer instructions to Michelle
Bennett at 202-418-2843. Any questions concerning refunds for
non-winning bidders should be referred to Michelle Bennett or Gail
Glasser at 202-418-1995.

**Amendment to Long-Form Application.** By **7:00 p.m. ET on November
12, 1999**, winning bidders must submit any necessary minor amendments
to their previously-filed long-form application(s) for markets in which
they were the winning high bidder.[^7] Long-form amendments (in hard
copies) must be filed in accordance with 47 C.F.R. §73.3513, with the
same number of copies as the originally filed long-form application.
Amendments must be submitted to the Office of the Secretary, TW B204,
445 12^th^ Street S.W. Washington, DC 20554. Winning bidders filing
amendments to FM and FM translator long-form applications may also send
a courtesy copy of the amendment to James Crutchfield, Room 2-B450, at
the same street address. In accordance with Commission rules, winning
bidders may not submit amendments that constitute a major change from
either the technical or legal proposal specified in the previously filed
long-form application. Given the length of time that many long-form
applications have been pending, winning bidders should take into account
any relevant rule changes or procedural modifications in supplementing
their long-form applications on file. For example, the Commission
recently significantly modified its broadcast application and licensing
procedures to eliminate unwarranted regulatory burdens.[^8] The
Commission has also established streamlined procedures regarding antenna
structure registration.[^9] The Commission also amended certain aspects
of its guidelines for evaluating the effects of radio frequency (RF)
electromagnetic emissions.[^10]

Winning bidders' long-form applications, as amended, will subsequently
be placed on public notice, triggering the period for the filing of
petitions to deny. Petitions to deny the long-form application for an
AM, FM or television construction permit must be filed within 10 days
following issuance of the public notice announcing acceptance of the
long-form application. Petitions to deny the long-form application for a
low power television ("LPTV") or FM translator construction permit must
be filed within 15 days following issuance of an acceptance public
notice. In the case of AM, FM and television broadcast services, an
opposition must be filed 5 days from the filing date of the petition to
deny and a reply is to be filed 5 days from the filing date of the
opposition. For LPTV and FM translator cases, oppositions must be filed
15 days from the filing date of the petition to deny and a reply must be
filed 10 days from the filing date of the opposition. **Late-filed
amendments will not be accepted without a showing of good cause.**

**Anti-collusion rules.** To ensure the competitiveness of the auction
process, the Commission's rules prohibit applicants for the same MX
Group from communicating with each other during the auction about bids,
bidding strategies, or settlements. As explained more fully in the
Public Notice announcing Auction No. 25,[^11] this prohibition begins
with the filing of short-form applications and ends on the down payment
due date.[^12] The prohibition ends on the down payment due date whether
or not a high bidder must supplement its upfront payment to cover its
down payment. By signing their FCC Form 175 short-form applications,
applicants are certifying their compliance with Section 1.2105(c).
Applicants that entered into joint bidding arrangements are reminded
that a full, post-auction disclosure is required of the terms,
conditions and parties involved in any bidding consortia, joint venture,
partnership or other agreement or arrangement it entered into prior to
the completion of bidding.[^13]

**Additional Post-Auction Filing Requirements.** Section 73.5005(a) of
the Commission's rules requires that post auction filings include the
exhibits mandated by 47 C.F.R. § 1.2107(d) (concerning the terms,
conditions and parties involved in any bidding consortia, joint venture,
partnership or other agreement or arrangement the applicant had entered
into relating to the competitive bidding process); 47 C.F.R. § 1.2110
(i) (concerning a description of how the applicant satisfies the
eligibility requirements for designated entity status); and 47 C.F.R. §
1.2112 (a) and (b) (concerning disclosure of ownership and real party in
interest information). Where applicable, such exhibits must be filed as
amendments to the previously filed long-form application and must be
submitted by no later than November 12, 1999.

\* \* \* \*

**For further information, contact:**

News Media: Meribeth McCarrick at 202-418-0654

Office of the Managing Director Michelle Bennett or Gail Glasser

(Payment, FCC Form 159 and refund at 202-418-1995

questions)

Mass Media Bureau:

Video Services Division Shaun Maher at (202) 418-2324

Audio Services Division Lisa Scanlan at (202) 418-2700

Wireless Telecommunications Bureau, Kathy Garland, Operations or

Auctions and Industry Analysis Division Bob Reagle, Auctions Analysis

(Auction-related questions) at 717-338-2888; Bob Allen,

Legal Branch at 202-418-0660

**- FCC -**

[^1]: ^?^ In the event a bidder has withdrawn one or more bids and is
    subject to a bid withdrawal payment, the bidder\'s upfront payment
    will be first applied to satisfy the withdrawal payment before being
    applied toward its down payment.

[^2]: ^?^ In cases where petitions to deny are filed, no final payment
    public notice shall be issued for associated construction permits
    until the petitions have been reviewed. In such situations, final
    payment public notices shall be issued on a case-by-case basis. As
    each case is resolved, a separate final payment Public Notice shall
    issue if warranted.

[^3]: ^?^ Copies of the FCC Form 159 may be obtained by calling the
    Commission\'s Forms Distribution Center at 1-800-418-3676 (outside
    Washington, D.C.) or 202-418-3676 (in the Washington area). Copies
    of the FCC Form 159 can also be obtained via the Internet
    (http://www.fcc.gov/formpage.html) or by Fax-On-Demand
    (202-418-2830).

[^4]: ^?^ If, subsequent to final submission of its FCC Form 175, a
    bidder has provided the Commission with a written correction of its
    Taxpayer Identification Number, the bidder should use the corrected
    number.

[^5]: *See Implementation of Section 309(j) of the Communications Act --
    Competitive Bidding for Commercial Broadcast and Instructional
    Television Fixed Service Licenses, First Report and Order* in MM
    Docket No.97-234, GC Docket No. 92-52 and GEN Docket No. 90-264, 13
    FCC Rcd 15920 (1998) ("*Broadcast First Report and Order*"), at
    Para. 86.

[^6]: ^?^ *Broadcast First Report and Order* at Para. 100.

[^7]: *Broadcast First Report and Order* at Para. 85.

[^8]: ^8^ *See* *1998 Biennial Regulatory Review -- Streamlining of Mass
    Media Applications Rules and Processes, Report and Order*, MM Docket
    No. 98-43, 13 FCC Rcd 23056 (1998), *Memorandum Opinion and Order*,
    FCC 99-267 (rel. October 6, 1999).

[^9]: ^?^ *See In the Matter of Streamlining the Commission's Antenna
    Structure Clearance Procedures and Revision of Part 17 of the
    Commission's Rules Concerning Construction, Marking and Lighting of
    Antenna Structures*, *Report and Order*, WT Docket No. 95-5, 11 FCC
    Rcd 4272 (1995).

[^10]: ^?^ *See Guidelines for Evaluating the Environmental Effects of
    Radiofrequency Radiation, Second Memorandum Opinion and Order*, ET
    Docket No. 93-62, (rel. August 25, 1997).

[^11]: ^?^ "Closed Broadcast Auction; Minimum Opening Bids and Other
    Procedural Issues," *Public Notice*, DA 99-1346 (rel. July 9, 1999).

[^12]: ^?^ *See id*. at 4-5.

[^13]: ^13^ *See* 47 C.F.R *.* § 1.2107(d).