DA 02-563

March 20, 2002

AUCTION OF LICENSES IN THE 698-746 MHz BAND

SCHEDULED FOR JUNE 19, 2002

**Notice and Filing Requirements, Minimum Opening Bids,**

**Upfront Payments and Other Auction Procedures**

Report No. AUC-02-44-B (Auction No. 44)

I. General Information [1](#general-information)

A. Introduction [1](#introduction)

1\. Background of Proceeding [2](#background-of-proceeding)

2\. Licenses to Be Auctioned [3](#licenses-to-be-auctioned)

B. Rules and Disclaimers [6](#rules-and-disclaimers)

1\. Relevant Authority [6](#relevant-authority)

2\. Prohibition of Collusion [7](#prohibition-of-collusion)

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

4\. Due Diligence 11

5\. Bidder Alerts [12](#bidder-alerts)

6\. National Environmental Policy Act ("NEPA") Requirements
[13](#national-environmental-policy-act-nepa-requirements)

C. Auction Specifics [14](#auction-specifics)

1\. Auction Date [14](#auction-date)

2\. Auction Title [14](#auction-title)

3\. Bidding Methodology [14](#bidding-methodology)

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

5\. Requirements For Participation [14](#requirements-for-participation)

6\. General Contact Information [15](#general-contact-information)

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

A. License Selection [16](#license-selection)

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

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

D. Eligibility [17](#eligibility)

1\. Bidding Credit Eligibility (FCC Form 175 Exhibit C)
[17](#bidding-credit-eligibility-fcc-form-175-exhibit-c)

2\. Tribal Land Bidding Credit [18](#tribal-land-bidding-credit)

3\. Applicability of Part 1 Attribution Rules
[18](#applicability-of-part-1-attribution-rules)

4\. Supporting Documentation [19](#supporting-documentation)

E. Provisions Regarding Defaulters and Former Defaulters (FCC Form 175
Exhibit D)
[20](#provisions-regarding-defaulters-and-former-defaulters-fcc-form-175-exhibit-d)

F. Installment Payments [20](#installment-payments)

G. Other Information (FCC Form 175 Exhibits E and F)
[20](#other-information-fcc-form-175-exhibits-e-and-f)

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

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

III\. PRE-AUCTION PROCEDURES [21](#pre-auction-procedures)

A. Auction Seminar [21](#auction-seminar)

B. Short-Form Application (FCC Form 175) --- Due May 8, 2002
[21](#short-form-application-fcc-form-175-due-may-8-2002)

1\. Electronic Filing [22](#electronic-filing)

2\. Completion of the FCC Form 175 [22](#completion-of-the-fcc-form-175)

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

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

D. Upfront Payments --- Due May 28, 2002
[23](#upfront-payments-due-may-28-2002)

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

2\. FCC Form 159 [24](#fcc-form-159)

3\. Amount of Upfront Payment [24](#amount-of-upfront-payment)

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

E. Auction Registration [26](#auction-registration)

F. Electronic Bidding [27](#electronic-bidding)

G. Mock Auction [27](#mock-auction)

IV\. AUCTION EVENT [27](#auction-event)

A. Auction Structure [27](#auction-structure)

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

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

3\. Auction Stages [29](#auction-stages)

4\. Stage Transitions [30](#stage-transitions)

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

6\. Auction Stopping Rules [31](#auction-stopping-rules)

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

B. Bidding Procedures [32](#bidding-procedures)

1\. Round Structure [32](#round-structure)

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

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

4\. High Bids [35](#high-bids)

5\. Bidding [35](#bidding)

6\. Bid Removal and Bid Withdrawal [37](#bid-removal-and-bid-withdrawal)

7\. Round Results [38](#round-results)

8\. Auction Announcements [39](#auction-announcements)

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

V. POST-AUCTION PROCEDURES [39](#post-auction-procedures)

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

B. Auction Discount Voucher [39](#auction-discount-voucher)

C. Long-Form Application [40](#long-form-application)

D. Tribal Land Bidding Credit [40](#tribal-land-bidding-credit-1)

E. Default and Disqualification [41](#default-and-disqualification)

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

VI\. Attachment A: Licenses to be Auctioned
A-[1](#__RefHeading___Toc4388499)

VII\. Attachment B: FCC Auction Seminar Registration Form
B-[1](#attachment-b)

VIII\. Attachment C: Electronic Filing and Review of the FCC Form 175
C-[1](#attachment-c)

IX\. Attachment D: Guidelines for Completion of FCC Form 175 and
Exhibits D-[1](#attachment-d)

X. Attachment E: Auction-Specific Instructions for FCC Remittance Advice
(FCC Form 159 - February 2000 Edition E-[1](#attachment-e)

XI\. Attachment F: Minimum Acceptable Bids, Bid Increments, and the
Smoothing Formula F-[1](#attachment-f)

XII\. Attachment G: Summary Listing of Documents from the Commission and
the Wireless Telecommunications Bureau Addressing Application of the
Anti-Collusion Rules G-[1](#attachment-g)

# General Information

## Introduction

By this public notice, the Wireless Telecommunications Bureau ("Bureau")
announces the procedures and minimum opening bids for the upcoming
auction of licenses in the 698-746 MHz ("Lower 700 MHz") band scheduled
for June 19, 2002 (Auction No. 44).[^1] On January 24, 2002, in
accordance with the Balanced Budget Act of 1997,[^2] the Bureau released
a public notice seeking comment on reserve prices or minimum opening
bids and the procedures to be used in Auction No. 44.[^3] The Bureau
received eight comments[^4] and thirteen reply comments[^5] in
response[^6] to the *Auction No. 44 Comment Public Notice.*[^7]

### Background of Proceeding 

On January 18, 2002, the Commission released the *Lower 700 MHz Report &
Order* which adopted allocation and service rules for the Lower 700 MHz
Band.[^8] Specifically, the Commission reallocated the entire 48
megahertz of spectrum in the Lower 700 MHz Band to fixed and mobile
services and retained the existing broadcast allocation for both new
broadcast services and incumbent broadcast services during their
transition to digital television ("DTV").[^9] The Commission established
technical criteria designed to protect incumbent television operations
in the band during the DTV transition period, allowed low power
television ("LPTV") and TV translator stations to retain secondary
status and operate in the band after the transition, and set forth a
mechanism by which pending broadcast applications may be amended to
provide analog or digital service in the core television spectrum or to
provide digital service on TV Channels 52- 58.[^10]

In its service rules, the Commission divided the Lower 700 MHz Band into
three 12-megahertz blocks, with each block consisting of a pair of 6-
megahertz segments, and two 6-megahertz blocks of contiguous, unpaired
spectrum. The Commission will license the five blocks in the Lower 700
MHz Band plan as follows: the two 6-megahertz blocks of contiguous
unpaired spectrum, as well as two of the three 12-megahertz blocks of
paired spectrum, will be assigned over six Economic Area Groupings
("EAGs"); the remaining 12 megahertz block of paired spectrum will be
licensed over 734 Metropolitan Statistical Areas ("MSAs") and Rural
Service Areas ("RSAs").[^11] All operations in the Lower 700 MHz Band
will be generally regulated under the framework of Part 27's technical,
licensing, and operating rules.[^12] To permit both wireless services
and certain new broadcast operations in the Lower 700 MHz Band, however,
the Commission has amended the maximum power limits in Part 27 to permit
50 kW effective radiated power ("ERP") transmissions in the Lower 700
MHz Band, subject to certain conditions.[^13] Finally, the Commission
established competitive bidding procedures and voluntary band-clearing
mechanisms for the Lower 700 MHz Band.[^14]

With respect to the MSA and RSA licenses, the Bureau notes that MSAs and
RSAs are collectively known as Cellular Market Areas (CMAs). CMAs 1-306
are based on MSAs; CMAs 307-734 are based on RSAs. The CMA designation,
not MSA/RSA, is used in the FCC Automated Auction System and in the
Universal Licensing System.

### Licenses to Be Auctioned

The licenses available in Auction No. 44 will include 758 licenses in
the Lower 700 MHz band. In the *Auction No. 44 Comment Public Notice*,
the Bureau offered two options for grouping the 758 licenses. The Bureau
sought comment on 1) grouping all 758 licenses together in Auction No.
44, or 2) including only the 734 MSA/RSA licenses in Auction No. 44 and
including the 24 Lower 700 MHz EAG licenses in Auction No. 31 with the
12 EAG licenses in the 747-762 and 777-792 MHz bands ("Upper 700 MHz"
bands). The Bureau also sought comment on this issue in a public notice
addressing procedures for Auction No. 31.[^15]

Commenters were divided on whether to include the 24 Lower 700 MHz band
EAG licenses in Auction No. 31. Commenters favoring the inclusion of the
Lower 700 MHz band EAG licenses in Auction No. 31 tended to focus on
separating the Lower 700 MHz band EAG licenses from the 734 Lower 700
MHz band MSA/RSA licenses rather than on combining the 24 Lower 700 MHz
band EAG licenses with the 12 Upper 700 MHz band EAG licenses.
Commenters opposing inclusion tended to focus on the possibility that
continuing rule making proceedings in the Lower 700 MHz band might delay
auction of those licenses and any other licenses grouped with them,
including the Upper 700 MHz band licenses.

**(a)** **Comments Favoring Including the Lower 700 MHz EAG Licenses in
Auction No. 31**

RTG and the Rural 700 MHz Group request that the Commission combine in a
single auction the 24 EAG licenses in the Lower 700 MHz band with the 12
EAG licenses in the Upper 700 MHz band.[^16] According to the Rural 700
MHz Group, it would be administratively simple for bidders interested in
the EAG licenses to participate in a single auction, rather than two
simultaneous auctions.[^17] The Rural 700 MHz Group also contends that
separating the EAG licenses from the MSA/RSA licenses might attract new
small business entrants to Auction No. 44.[^18] RTG believes that
grouping the MSA/RSA licenses with the EAG licenses in the Lower 700 MHz
band may discourage many smaller carriers from participating in Auction
No. 44.[^19] RTG also asserts that grouping the Lower 700 MHz
EAG-licenses with the Upper 700 MHz EAG-licenses will avoid confusion
and improve the efficiency of both Auction Nos. 31 and 44.[^20] TCA also
supports limiting Auction No. 44 to MSA/RSA licenses, believing that it
will limit the amount of overall bidding eligibility and increase the
number of licenses in the control of many different entities, including
rural telephone companies.[^21] TCA supports auctioning the MSA/RSA
licenses separately from the EAG licenses in the Lower 700 MHz band, to
further the opportunities for small and rural carriers.[^22] McBride
also does not want the larger EAG licenses to be grouped with MSA/RSA
licenses that are likely to be of interest to smaller carriers.[^23]
Finally, NTCA agrees with RTG, the Rural 700 MHz Group and TCA that
auctioning the MSA/RSA licenses separately may increase rural carrier
and other small business participation.[^24]

Leap believes that grouping the EAG licenses in the Upper and the Lower
700 MHz bands in the same auction is the most efficient way to conduct
the auction, because bidders will perceive EAG licenses in the two bands
as relatively substitutable and will implicitly place values on these
licenses with reference to the price and availability of all
others.[^25] Leap also contends that combining Auction Nos. 31 and 44
would produce an unmanageable situation in a package bidding environment
and thus, recommends that the MSA/RSA licenses be auctioned separately,
without package bidding features.[^26]

> **(b) Comments Opposing Including the 24 Lower 700 MHz Band EAG
> Licenses in Auction No. 31**

In its comments, Paxson opposes grouping the 24 EAG licenses in Auction
No. 44 with the 12 EAG licenses in Auction No. 31.[^27] Paxson asserts
that there is no chance of clearing the Lower 700 MHz band for many
years to come, and thus, it recommends that the EAG licenses in Auction
No. 31 be kept separate from the EAG licenses in Auction No. 44 to
assure that a delay in conducting Auction No. 44 does not result in a
delay in the start of Auction No. 31.[^28] Paxson also argues there are
no real administrative efficiencies to be achieved by linking Auction
Nos. 31 and 44, because all of the prospective bidders have been
planning their software and tracking tools based on current auction
inventory.[^29] Spectrum Exchange/Allen agrees that all 758 licenses
should be sold together, adding that the Bureau should use package
bidding provisions similar to those employed for Auction No. 31.[^30]
The Spectrum Alliance also supports Paxson's position that the Bureau
should not risk delaying the Upper 700 MHz auction by linking it with
the Lower 700 MHz auction in any regard.[^31] Finally, Entravision
agrees with Paxson that the Bureau's proposal to group the EAG licenses
from both the Upper 700 MHz and Lower 700 MHz auctions would delay the
Upper 700 MHz auction because postponement of the Lower 700 MHz auction
is likely due to the heavily encumbered status of the Lower 700 MHz
spectrum.[^32]

> **(c) Comments Advocating Including All Lower and Upper 700 MHz Band
> Licenses in a Single Auction**

One commenter, US Cellular, recommends that the Bureau include in a
single auction all 12 licenses in the Upper 700 MHz band and 758
licenses in the Lower 700 MHz band.[^33] According to US Cellular, a
consolidation of the auction of the 700 MHz spectrum will help avoid the
"effects of the head-start advantage" of licensing EAGs before licensing
MSAs/RSAs in the 700 MHz band.[^34]

After careful review of the comments, the Bureau concludes that it will
not include the 24 Lower 700 MHz EAG licenses in Auction No. 31 with the
Upper 700 MHz EAG licenses. The Bureau is not persuaded that grouping
the MSA/RSA licenses in an auction with the Lower 700 MHz EAG licenses
will create a disadvantage to small businesses and rural telephone
companies. We do not agree with those commenters that believe that
separating the 734 MSAs/RSAs from the 24 EAGs would provide greater
opportunities for small businesses and rural telephone companies.[^35]
Larger entities that do not qualify for bidding credits would continue
to be eligible to participate in an auction of the 734 MSA/RSA licenses.
In the *Lower 700 MHz Report and Order*, the Commission adopted
MSAs/RSAs as the licensing area for a portion of the Lower 700 MHz band
to promote opportunities for a wide variety of applicants, including
small and rural wireless providers, to obtain spectrum.[^36] However,
the Commission did not decide to restrict eligibility for these licenses
to small and rural service providers.[^37] Because the Commission
adopted licensing rules for the Lower 700 MHz band that provide for open
eligibility, the Bureau declines to consider license groupings for the
purpose of discouraging participation in the auction by any particular
class of bidders. We disagree with those commenters who suggest that
grouping the MSA/RSA licenses with the EAG licenses in the Lower 700 MHz
band may discourage many smaller carriers from participating in Auction
No. 44. The Commission has sought to provide small businesses with an
opportunity to successfully compete against larger, well-financed
bidders by defining three tiers of small-businesses that are eligible
for bidding credits. As the Commission noted in the *Lower 700 MHz
Report & Order*, the use of a third small entity definition may result
in the dissemination of licenses among an even wider range of small
business entities, consistent with its obligations under Section
309(j)(3)(B) of the Act.[^38]

Therefore, Auction No. 44 will include all 758 licenses in the Lower 700
MHz band. Two 12-megahertz blocks consisting of a pair of 6-megahertz
segments and two 6-megahertz blocks of contiguous, unpaired spectrum
will be offered in each of the six 700 MHz band EAGs. Additionally, one
12-megahertz block consisting of a pair of 6-megahertz segments will be
offered in each of 734 MSAs/RSAs. A complete list of licenses available
in Auction No. 44 and their descriptions is included in Attachment A of
this Public Notice.

The following table contains the block/frequency cross-reference for the
698-746 MHz band and also shows the current television channelization:

  ----- -------- -------- -------- -------- -------- -------- -------- -------- --
        A        B        C        D        E        A        B        C        

                                                                                

        52       53       54       55       56       57       58       59       

                                                                                

  698                                                                  746 MHz  
  MHz                                                                           
  ----- -------- -------- -------- -------- -------- -------- -------- -------- --

  --------------------- --------------------------- -------- ------------------------- ----------------------- ------------------- ----------------------- -- --
  [Block]{.underline}   [Frequencies]{.underline}            [Bandwidth]{.underline}   [Pairing]{.underline}   [Geographic Area    [No.of                     
                                                                                                               Type]{.underline}   Licenses]{.underline}      

  A                     698-704, 728-734                     12 MHz                    2 x 6 MHz               700 MHz EAG         6                          

  B                     704-710, 734-740                     12 MHz                    2 x 6 MHz               700 MHz EAG         6                          

  C                     710-716, 740-746                     12 MHz                    2 x 6 MHz               MSA/RSA             734                        

  D                     716-722                              6 MHz                     unpaired                700 MHz EAG         6                          

  E                     722-728                              6 MHz                     unpaired                700 MHz EAG         6                          
  --------------------- --------------------------- -------- ------------------------- ----------------------- ------------------- ----------------------- -- --

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

## Rules and Disclaimers

### Relevant Authority

Prospective bidders must familiarize themselves thoroughly with the
Commission's rules relating to the Lower 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. 44 Comment*
*Public Notice;* and the *Part 1 Fifth Report and Order* (as well as
prior and subsequent Commission proceedings regarding competitive
bidding procedures).[^39]

Auction participants bidding on licenses in the 698-746 MHz spectrum
band should also be familiar with the *Lower 700 MHz* *Notice of
Proposed Rule Making*,[^40] and the *Lower 700 MHz Report & Order*.[^41]

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 Auctions
Internet site at [http://wireless.fcc.gov/auctions]{.underline}.
Additionally, documents are available for public inspection and copying
during regular business hours at the FCC Reference Information Center,
Portals II, 445 12th Street, SW, Room CY-A257, Washington, DC, 20554 or
may be purchased from the Commission's duplicating contractor, Qualex
International, Portals II, 445 12th Street, SW, Room CY-B402,
Washington, DC 20554, telephone 202-863-2893, facsimile 202-863-2898, or
via e-mail qualexint@aol.com. When ordering documents from Qualex,
please provide the appropriate FCC number (for example, FCC 01-364 for
the *Lower 700 MHz Report and 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.[^42] This prohibition begins at the
short-form application filing deadline and ends at the down payment
deadline 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 or she is
authorized to represent in the auction. A violation could similarly
occur if the authorized bidders are different individuals employed by
the same organization (*e.g.*, law firm or consulting firm). In such a
case, at a minimum, 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.[^43]

However, the Bureau 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.[^44] In Auction No. 44, for example,
the rule would apply to any applicants bidding for the same MSA/RSA or
EAG. Furthermore, the rule would apply to an applicant bidding for an
EAG and another applicant bidding for an MSA/RSA within that EAG.[^45]
In addition, applicants that apply to bid for "all markets" would be
precluded from communicating with all other applicants until after the
down payment deadline. However, applicants may enter into bidding
agreements *before* filing their FCC Form 175, as long as they disclose
the existence of the agreement(s) in their Form 175.[^46] 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
pursuant to 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 licenses covering the same geographic areas.[^47] 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.[^48] Thus, Sections 1.65 and 1.2105 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.[^49]

A summary listing of documents from the Commission and the Bureau
addressing the application of the anti-collusion rules may be found in
Attachment G.

### Interference Protection of Television Services

Among other licensing and technical rules, new Lower 700 MHz licensees
must comply with the interference protection requirements set forth in
Section 27.60 of the Commission's rules.[^50] Generally, Section 27.60
establishes standards for protection of co- and adjacent-channel analog
TV and DTV facilities. Thus, for example, a new licensee seeking to
operate on the 698-740 MHz portion of the Lower 700 MHz band must
provide co-channel protection to nearby TV and DTV operations on Channel
59 and adjacent-channel protection to stations on Channels 58 and 60. In
addition, Appendix D of the *Lower 700 MHz Report and Order* describes
additional adjacent-channel interference considerations that are
designed to mitigate the possibility of base-to-base interference that
may arise at base receive stations that are in close proximity to high
power transmitters operating on adjacent channels.[^51] Moreover,
licensees intending to operate a facility at a power level of greater
than 1 kilowatt must provide advance notice to the Commission and to
licensees authorized in their area of operation.[^52] New Lower 700 MHz
licensees also will have to comply with any additional technical
requirements or interference protection requirements that may be adopted
in the future as a result of pending and future rulemaking
proceedings.[^53]

Potential bidders should recognize that the interference protection
requirements for the Lower 700 MHz band are more stringent in certain
respects relative to the interference standards that apply to the Upper
700 MHz band.[^54] These interference obligations will remain in force
until the end of the DTV transition period at which time analog TV and
DTV broadcasters will be require to vacate both the Upper and Lower 700
MHz bands.[^55]

Potential bidders should be aware that a greater number of broadcast
incumbents exist in the Lower 700 MHz band relative to the Upper 700 MHz
band. The Commission has also observed that, although there is
approximately the same number of analog incumbents in both the Upper and
Lower 700 MHz bands, the Lower 700 MHz consists of less spectrum and,
therefore, incumbent licensees are more densely situated across the
band.[^56] Further, there is a significantly greater number of DTV
assignments on the eight television channels in the Lower 700 MHz band,
including licenses, construction permits, pending applications, and
pending allotment petitions, than exist in the Upper 700 MHz band.[^57]
The Commission may also permit certain Channel 60-69 broadcasters to
relocate temporarily into Channels 52-58 pursuant to a voluntary
clearing arrangement.[^58]

#### Negotiations with Incumbent Broadcast Licensees 

The Commission has established a policy of facilitating voluntary
clearing of the 700 MHz bands to allow for the introduction of new
wireless services and to promote the transition of incumbent analog
television licensees to DTV service.[^59] Generally speaking, this
policy provides that the Commission will consider specific regulatory
requests needed to implement voluntary agreements between incumbent
broadcasters and new licensees to clear the Lower 700 MHz Band early, if
consistent with the public interest. The fundamentals of the
Commission's voluntary clearing policy for the 700 MHz bands were
established in a series of decisions beginning with the adoption of the
*Upper 700 MHz First Report and Order* in January 2000.[^60] However, in
light of certain differences between the Upper and Lower 700 MHz Bands,
the Commission decided not to extend certain aspects of its voluntary
clearing policy to the Lower 700 MHz band, including the presumptions
that were established in the Upper 700 MHz Band for analyzing voluntary
band-clearing proposals and the extended DTV construction period that
was provided to certain single-channel broadcasters in connection with
the arrangements for early clearing of the Upper 700 MHz band.[^61] In
considering such regulatory requests, the Commission will consider
whether grant of the request would result in public interest benefits,
such as making new or expanded public safety or other wireless services
available to consumers or deploying wireless service to rural or other
underserved communities.[^62] The Commission intends to weigh these
benefits against any likely public interest costs, such as the loss of
any of the four stations in the designated market area with the largest
audience share, the loss of the sole service licensed to the local
community, the loss of a community's sole service on a channel reserved
for noncommercial educational broadcast service, or a negative effect on
the pace of the DTV transition in the market.[^63]

#### Canadian and Mexican Border Regions (Auction \# 44)

The United States has bilateral agreements with both Canada and Mexico
setting forth allotment and assignment plans for TV broadcast stations
covering the 698-746 MHz band (Channels 52-59). While the U.S. has
identified this band for reallocation to new services, neither Canada
nor Mexico has done so to date.[^64] Pursuant to these agreements, the
U.S. must protect the signals of Canadian and Mexican TV broadcast
stations located in the border areas, and such operations will therefore
affect U.S. non-broadcast use and services in this band. Accordingly,
licenses issued for this band will be subject to whatever future
agreements the U. S. develops with these two countries. Furthermore,
until such time as existing agreements are replaced or modified to
reflect the new uses, licensees in the band will be subject to existing
agreements and the condition that harmful interference not be caused to,
and must be accepted from, television broadcast operations in those
countries.[^65]

### Due Diligence

Potential bidders are reminded that there are a number of incumbent
broadcast television licensees already licensed and operating in the
698-746 MHz band (television Channels 52-59) 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 52, 53, 54, 55, 56, 57, 58 and 59 must comply
with the co-channel and the adjacent channel provision of Section 27.60
of the Commission's rules.[^66] 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.

Potential 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. 44.

To aid potential bidders, the Bureau will issue shortly a Due Diligence
Announcement listing incumbent licensees operating in these bands. The
Commission makes no representations or guarantees that the matters
listed in this Due Diligence Announcement are the only pending matters
that could affect spectrum availability in these services.

Potential bidders also 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 decisions reached in this
proceeding may be subject to judicial appeal and may be the subject of
additional reconsideration or appeal. We note that resolution of these
matters could have an impact on the availability of spectrum in Auction
No. 44. In addition, although the Commission will continue to act on
pending applications, requests and petitions, some of these matters may
not be resolved by the time of the auction. To aid potential bidders,
the Bureau will issue shortly a Due Diligence Announcement listing
matters pending before the Commission that relate to licenses or
applications in these services. The Commission makes no representations
or guarantees that the listed matters are the only pending matters that
could affect spectrum availability in these services.

In addition, potential bidders may research the licensing database for
the Mass Media Bureau on the Internet in order to determine which
frequencies are already licensed to incumbent licensees. The Commission
makes no representations or guarantees regarding the accuracy or
completeness of information in its databases or any third party
databases, including, for example, court docketing systems. Furthermore,
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 database. **Potential
bidders are strongly encouraged to physically inspect any sites located
in, or near, the EAG, MSA, or RSA for which they plan to bid.**

Licensing records for the Mass Media Bureau are contained in the Mass
Media Bureau's Consolidated Data Base System (CDBS) and may be
researched on the Internet at
[http://www.fcc.gov/](http://www.fcc.gov/wtb/uls)[mmb/]{.underline}.
Potential bidders may query the database online and download a copy of
their search results if desired. Detailed instructions on using Search
for Station Information, Search for Ownership Report Information and
Search for Application Information and downloading query results are
available online by selecting the CDBS Public Access (main) button at
the bottom of the Electronic Filing and Public Access list section. The
database searches return either station or application data. The
application search provides an application link that displays the
complete electronically filed application in application format. An
AL/TC search under the application search link permits searching for
Assignment of License/Transfer of Control groups using the AL/TC group
lead application. For further details, click on the
[Help](../help_pa.htm) file.

Potential bidders should direct questions regarding the search
capabilities of CDBS to the Mass Media Bureau help line at (202)
418-2662, or via e-mail at <mmbinfo@fcc.gov>.

### 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.[^67] 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.

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 and interested parties should
perform their own due diligence before proceeding, as they would with
any new business venture.

As is the case with many business investment opportunities, some
unscrupulous entrepreneurs may attempt to use Auction No. 44 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 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 proposals regarding Auction No. 44 may also call the FCC
Consumer Center at (888) CALL-FCC ((888) 225-5322).

### National Environmental Policy Act ("NEPA") Requirements

Licensees must comply with the Commission's rules regarding the National
Environmental Policy Act (NEPA).[^68] The construction of a wireless
antenna facility is a federal action and the licensee must comply with
the Commission's NEPA rules for each such facility.[^69] The
Commission's NEPA rules require, among other things, that the licensee
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
licensee 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 licensee 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 will begin on Wednesday, June 19, 2002.[^70] 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. 44 -- Lower 700 MHz Band

### Bidding Methodology

The bidding methodology for Auction No. 44 will be simultaneous multiple
round 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.

### Pre-Auction Dates and Deadlines

Auction Seminar May 1, 2002

Short-Form Application (FCC FORM 175) May 8, 2002; 6:00 p.m. ET

Upfront Payments (via wire transfer) May 28, 2002; 6:00 p.m. ET

Mock Auction June 14, 2002

Auction Begins June 19, 2002

### Requirements For Participation

Those wishing to participate in the auction must:

-   Submit a short-form application (FCC Form 175) electronically by
    6:00 p.m. ET, May 8, 2002.

-   Submit a sufficient upfront payment and an FCC Remittance Advice
    Form (FCC Form 159) by 6:00 p.m. ET, May 28, 2002.

-   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         |
+-----------------------------------+----------------------------------+
|                                   | Hours of service: 8 a.m. -- 5:30 |
|                                   | p.m. ET                          |
+-----------------------------------+----------------------------------+
| AUCTION LEGAL INFORMATION         | Auctions and Industry Analysis   |
|                                   | Division                         |
+-----------------------------------+----------------------------------+
| Auction Rules, Policies,          | Legal Branch (202) 418-0660      |
| Regulations                       |                                  |
+-----------------------------------+----------------------------------+
| LICENSING INFORMATION             | Commercial Wireless Division     |
+-----------------------------------+----------------------------------+
| Rules, Policies, Regulations      | \(202\) 418-0620                 |
|                                   |                                  |
| Licensing Issues                  |                                  |
|                                   |                                  |
| Due Diligence                     |                                  |
|                                   |                                  |
| Incumbency Issues                 |                                  |
+-----------------------------------+----------------------------------+
| TECHNICAL SUPPORT                 | FCC Auctions Technical Support   |
|                                   | Hotline                          |
+-----------------------------------+----------------------------------+
| Electronic Filing                 | \(202\) 414-1250 (Voice),        |
+-----------------------------------+----------------------------------+
| Automated Auction System          | \(202\) 414-1255 (TTY)           |
|                                   |                                  |
|                                   | Hours of service: Monday through |
|                                   | Friday 7 a.m. to 10:00 p.m. ET,  |
|                                   | Saturday, 8:00 a.m. to 7:00      |
|                                   | p.m., Sunday, 12:00 noon to 6:00 |
|                                   | p.m.                             |
+-----------------------------------+----------------------------------+
| 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               | Qualex International             |
+-----------------------------------+----------------------------------+
| Additional Copies of              | Portals II, 445 12^th^ Street,   |
|                                   | SW, Room CY-B402                 |
+-----------------------------------+----------------------------------+
| Commission Documents              | Washington, DC 20554             |
|                                   |                                  |
|                                   | \(202\) 863-2893                 |
|                                   |                                  |
|                                   | \(202\) 863-2898 (Fax)           |
|                                   |                                  |
|                                   | qualexint@aol.com (E-mail)       |
+-----------------------------------+----------------------------------+
| PRESS INFORMATION                 | Meribeth McCarrick (202)         |
|                                   | 418-0654                         |
+-----------------------------------+----------------------------------+
| FCC FORMS                         | \(800\) 418-3676 (outside        |
|                                   | Washington, DC)                  |
|                                   |                                  |
|                                   | \(202\) 418-3676 (in the         |
|                                   | Washington Area)                 |
|                                   |                                  |
|                                   | <h                               |
|                                   | ttp://www.fcc.gov/formpage>.html |
+-----------------------------------+----------------------------------+
| FCC INTERNET SITES                | [http://w                        |
|                                   | ww.fcc.gov](http://www.fcc.gov/) |
|                                   |                                  |
|                                   | [ht                              |
|                                   | tp://wireless.fcc.gov/auctions]( |
|                                   | http://www.fcc.gov/wtb/auctions) |
|                                   |                                  |
|                                   | http://wireless.fcc.gov/uls      |
+-----------------------------------+----------------------------------+

# SHORT-FORM (FCC FORM 175) APPLICATION REQUIREMENTS

Guidelines for completion of the short-form (FCC Form 175) are set forth
in Attachment D to this public notice. The short-form application seeks
the applicant's name and address, legal classification, status, small,
very small business or entrepreneur bidding credit eligibility,
identification of the license(s) sought, the authorized bidders and
contact persons. 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,
as discussed below in Section II.E (Provisions Regarding Defaulters and
Former Defaulters), that they are not in default on any payment for
Commission licenses (including down payments) or delinquent on any
non-tax debt owed to any Federal agency.

## License Selection

In Auction No. 44, Form 175 will include a mechanism that allows an
applicant to filter the licenses by License Area (either "EAG" or
"CMA"),[^71] Market Number, and/or Block to create customized lists of
licenses. The applicant will make selections for one or more of the
filter criteria and the system will produce a list of licenses
satisfying the specified criteria. The applicant may apply for all the
licenses in the customized list by using the "Save all filtered
licenses" option; select and save individual licenses separately from
the list; or create a second customized list without selecting any of
the licenses from the first list. Applicants also will be able to select
licenses from one customized list and then create a second customized
list to select additional licenses.

## Ownership Disclosure Requirements (FCC 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 FCC Form 175,
applicants will be required to file an "Exhibit A" providing a full and
complete statement of the ownership of the bidding entity. The ownership
disclosure standards for the short-form are set forth in Section 1.2112
of the Commission's rules.[^72]

## Consortia And Joint Bidding Arrangements (FCC 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.[^73]
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 licenses on which they will or will not
bid.[^74] 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
applications and may not continue discussions with applicants for the
same geographic license area(s) after the deadline.[^75] 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 licenses in the same geographic license area provided
that (i) the attributable interest holder certifies 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.[^76] 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 touch upon impermissible subject matters
because they may convey pricing information and bidding strategies.

## Eligibility

### Bidding Credit Eligibility (FCC Form 175 Exhibit C)

Bidding credits will be available to small and very small businesses and
entrepreneurs, or consortia, thereof, as defined in 47 C.F.R. § 27.702
for the Lower 700 MHz band.[^77] A bidding credit represents the amount
by which a bidder's winning bids are discounted.[^78] The size of the
bidding credit depends on the average of the aggregated annual gross
revenues for each of the preceding three years of the bidder, its
affiliates, its controlling interests, and the affiliates of its
controlling interests:

-   A bidder with attributed average annual gross revenues of not more
    than \$40 million for the preceding three years ("small business")
    receives a 15 percent discount on its winning bids for the Lower 700
    MHz licenses;[^79]

-   A bidder with attributed average annual gross revenues of not more
    than \$15 million for the preceding three years ("very small
    business") receives a 25 percent discount on its winning bids for
    the Lower 700 MHz licenses;[^80]

-   A bidder with attributed average annual gross revenues of not more
    than \$3 million for the preceding three years ("entrepreneur")
    receives a 35 percent discount on its winning bids for the 734
    MSA/RSA licenses in the Lower 700 MHz band. This definition applies
    only with respect to licenses in Block C (710-716 MHz and 740-746
    MHz) as specified in § 27.5(c)(1).

A bidder that qualifies as an entrepreneur may bid on EAG licenses, but
will receive a 25 percent bidding credit on any EAG license that it
wins. Bidding credits are not cumulative; a qualifying applicant
receives either the 15 percent, 25 percent, or 35 percent bidding credit
on its winning bid, but only one of them per license.

### Tribal Land Bidding Credit

To encourage the growth of wireless services in federally recognized
tribal lands the Commission has implemented a tribal land bidding
credit. *See* Part V.C. of this Public Notice.

### Applicability of Part 1 Attribution Rules

***Controlling interest standard.*** On August 14, 2000, the Commission
released the *Part 1 Fifth Report and Order*,[^81] in which the
Commission, *inter alia*, adopted a "controlling interest" standard for
attributing to auction applicants the gross revenues of their investors
and affiliates in determining small business eligibility for future
auctions.[^82] The Commission observed that the rule modifications
adopted in the various Part 1 orders would result in discrepancies
and/or redundancies between certain of the new Part 1 rules and existing
service-specific rules, and the Commission delegated to the Bureau the
authority to make conforming edits to the Code of Federal Regulations
(CFR) consistent with the rules adopted in the Part 1 proceeding.[^83]
Part 1 rules that superseded inconsistent service-specific rules will
control in Auction No. 44.[^84] *Accordingly, the "controlling interest"
standard as set forth in the Part 1 rules will be in effect for Auction
No. 44, even if conforming edits to the CFR are not made prior to the
auction.*

***Control.*** 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.[^85] The following are
some common indicia of *de facto* 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.

***Attribution for small, very small business and entrepreneur
eligibility.*** In determining which entities qualify as small, very
small businesses or entrepreneur, the Commission will consider the gross
revenues of the applicant, its affiliates, its controlling interests,
and the affiliates of its controlling interests. The Commission does not
impose specific equity requirements on controlling interest holders.
Once the principals or entities with a controlling interest are
determined, only the revenues of those principals or entities, the
affiliates of those principals or entities, the applicant and its
affiliates, will be counted in determining small business eligibility.

A consortium of small, very small businesses or entrepreneurs is a
"conglomerate organization formed as a joint venture between or among
mutually independent business firms," each of which *individually* must
satisfy the definition of small, very small business and entrepreneur in
Sections 1.2110(f), 27.702. Thus, each consortium member must disclose
its gross revenues along with those of its affiliates, its controlling
interests, and the affiliates of its controlling interests. We note that
although the gross revenues of the consortium members will not be
aggregated for purposes of determining eligibility for small, very small
business or entrepreneur credits, this information must be provided to
ensure that each individual consortium member qualifies for any bidding
credit awarded to the consortium.

### Supporting Documentation

Applicants should note that they will be required to file supporting
documentation to their FCC Form 175 short-form applications to establish
that they satisfy the eligibility requirements to qualify as small, very
small businesses or entrepreneurs (or consortia of small, very small
businesses or entrepreneurs) for this auction.[^86]

Applicants should further note that 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.

***Small business, very small business, or entrepreneur eligibility
(Exhibit C).*** Entities applying to bid as small or very small
businesses or entrepreneurs (or consortia of small or very small
businesses or entrepreneurs) 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) its affiliates, (3) its
controlling interests, and (4) the affiliates of its controlling
interests. **Certification that the average annual 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, its controlling interests, and the
affiliates of 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 small, very small businesses or
entrepreneur, this information must be provided for each consortium
member.

## Provisions Regarding Defaulters and Former Defaulters (FCC Form 175 Exhibit D)

Each applicant must certify on its FCC Form 175 application that it is
not in default on any Commission licenses and that it is not delinquent
on any non-tax debt owed to any Federal agency.[^87] In addition, each
applicant must attach to its FCC Form 175 application a statement made
under penalty of perjury indicating whether or not the applicant, its
affiliates, its controlling interests, or the affiliates of its
controlling interest have ever been in default on any Commission
licenses or have ever been delinquent on any non-tax debt owed to any
Federal agency. The applicant must provide such information for itself,
for each of its controlling interests and affiliates, and for each
affiliate of its controlling interests, as defined by Section 1.2110 of
the Commission's rules (as amended in the *Part 1 Fifth Report and
Order*).[^88] **Applicants must include this statement as Exhibit D of
the FCC Form 175.** Prospective bidders are reminded that the statement
must be made under penalty of perjury and, further, 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.

"Former defaulters" --- *i.e.*, applicants, including their attributable
interest holders, that in the past have defaulted on any Commission
licenses or been delinquent on any non-tax debt owed to any Federal
agency, but that have since remedied all such defaults and cured all of
their outstanding non-tax delinquencies --- are eligible to bid in
Auction No. 44, provided that they are otherwise qualified. However, as
discussed *infra* in Section III.D.3, former defaulters are required to
pay upfront payments that are fifty percent more than the normal upfront
payment amounts.[^89]

## Installment Payments

Installment payment plans will not be available in Auction No. 44.

## Other Information (FCC Form 175 Exhibits E and F)

Applicants owned by minorities or women, as defined in 47 C.F.R. §
1.2110(c)(2), may attach an exhibit (Exhibit E) 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 on Exhibit F (Miscellaneous
Information) to the FCC Form 175.

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

After the short-form filing deadline (May 8, 2002), 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 or proposed service areas,
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 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: [auction44@fcc.gov]{.underline}. The
electronic mail summarizing the changes must include a subject or
caption referring to Auction No. 44. The Bureau requests that parties
format any attachments to electronic mail as Adobe^®^ Acrobat^®^ (pdf)
or Microsoft^®^ Word documents.

A separate copy of the letter should be faxed to the attention of
Kathryn Garland at (717) 338-2850. 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 Wednesday, May 1, 2002, the FCC will sponsor a free seminar for
Auction No. 44 at the Federal Communications Commission, located at 445
12^th^ Street, SW, Washington, DC. The seminar will provide attendees
with information about pre-auction procedures, conduct of the auction,
the FCC Automated Auction System, and the lower 700 MHz 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 attached hereto as
Attachment B and submit it by Monday, April 29, 2002. Registrations are
accepted on a first-come, first-served basis.

## Short-Form Application (FCC Form 175) --- Due May 8, 2002

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 no later than 6:00 p.m. ET
on May 8, 2002. 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* Part III.D, *below*.

### Electronic Filing

Applicants must file their FCC Form 175 applications
electronically.[^90] Applications may generally be filed at any time
beginning at noon ET on May 1, 2002, until 6:00 p.m. ET on May 8, 2002.
Applicants are strongly encouraged to file early and 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 May 8, 2002.

Applicants must press the "SUBMIT Application" button on the
"Submission" page of the electronic form to successfully submit their
FCC Form 175s. 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 Monday
through Friday, from 7:00 AM to 10:00 PM ET, Saturday, 8:00 AM to 7:00
PM ET, and Sunday, 12:00 noon to 6:00 PM ET. In order to provide better
service to the public, *all calls to the hotline are recorded.*

Applicants can also contact Technical Support via e-mail. To obtain the
address, click the **Support** tab on the Form 175 Homepage.

### 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 locate 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. NOTE: Applicants should not include sensitive
information (*i.e.*, TIN/EIN) 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; (2)
those applications rejected; and (3) those applications which 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 May 8,
2002, 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).[^91]

## Upfront Payments --- Due May 28, 2002

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 May 28, 2002.

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. 44 go to a lockbox number different
    from the lockboxes 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 May 28, 2002, deadline
    will result in dismissal of the application and disqualification
    from participation in the auction.

### Making Auction Payments by Wire Transfer

Wire transfer payments must be received by 6:00 p.m. ET on May 28, 2002.
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
>
> BENEFICIARY: FCC/Account \# 910-1182
>
> OBI Field: (Skip one space between each information item)

> "AUCTIONPAY"

> FCC REGISTRATION NUMBER (FRN): (same as FCC Form 159, block 11 and/or
> 21)
>
> PAYMENT TYPE CODE (same as FCC Form 159, block 24A: A44U)
>
> FCC CODE 1 (same as FCC Form 159, block 28A: "44")
>
> PAYER NAME (same as FCC Form 159, block 2)
>
> LOCKBOX NO. \# 358415

**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 (Revised 2/00) to Mellon
Bank at (412) 209-6045 **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. 44." **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, Revised 2/00) must
be faxed to Mellon Bank in order to accompany each upfront payment.
Proper completion of FCC Form 159 (Revised 2/00) 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 filing 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 appropriate upfront payment(s) for
each auction.[^92] In addition, in the *Part 1 Fifth Report and Order*,
the Commission ordered that "former defaulters," *i.e.*, applicants that
have ever been in default on any Commission license or have ever been
delinquent on any non-tax debt owed to any Federal agency, be required
to pay upfront payments fifty percent greater than non-"former
defaulters."[^93] For purposes of this calculation, the "applicant"
includes the applicant itself, its affiliates, its controlling
interests, and affiliates of its controlling interests, as defined by
Section 1.2110 of the Commission's rules (as amended in the *Part 1
Fifth Report and Order*).[^94]

In the *Auction No. 44 Comment Public Notice*, we proposed translating
bidders' upfront payments to bidding units to define a bidder's maximum
eligibility.[^95] In order to bid on a license, otherwise qualified
bidders who applied for that license on Form 175 must have an
eligibility level that meets or exceeds the number of bidding units
assigned to that license. At a minimum, therefore, an applicant's total
upfront payment must be enough to establish eligibility to bid on at
least one of the licenses applied for on Form 175, or else the applicant
will not be eligible to participate in the auction. An applicant does
not have to make an upfront payment to cover all licenses for which the
applicant has applied on 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 the *Auction No. 44 Comment Public Notice*,[^96] the Bureau proposed
upfront payments on a license-by-license basis using the following
formula:

\$0.0125 \* MHz \* License Area Population[^97] with a minimum of
\$1,000 per license.[^98]

We did not receive any comments on the general levels of the upfront
payments. However, the Rural 700 MHz Group requests that the rate for
calculating minimum opening bids for RSAs be one-half of the rate
applied to MSAs, since it is more costly to build out a rural
telecommunications system than a system in a metropolitan area.[^99] The
Bureau notes that there are numerous factors affecting the relative
costs of build-out, and elects to adopt the proposed formula for
determining upfront payments.

The specific upfront payments and bidding units for each license are set
forth in Attachment A of this Public Notice.

In calculating its upfront payment amount, an applicant should determine
the [maximum]{.underline} number of bidding units on which it may wish
to be active (bidding units associated with licenses on which the bidder
has the standing high bid from the previous round and licenses on which
the bidder places a bid in the current round) 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.**

  -------------------- ---------- ----------- ------------------ ---------------- ----------- ----------- -----
  **Example: Lower 700                                                                                    
  MHz Band Upfront                                                                                        
  Payments and Bidding                                                                                    
  Flexibility**                                                                                           

                       **Market   **Block**   **Market Name**    **Population**   **Bidding   **Upfront   
                       No.**                                                      Units**     Payment**   

                       CMA153     C           Columbus, GA-AL    243,072          36,000      \$ 36,000   

                       CMA311     C           Alabama 5          206,735          31,000      \$ 31,000   
                                              -Cleburne                                                   

  If a bidder wishes                                                                                      
  to bid on both                                                                                          
  licenses in a round,                                                                                    
  it must have                                                                                            
  selected both on its                                                                                    
  FCC Form 175 and                                                                                        
  purchased at least                                                                                      
  67,000 bidding units                                                                                    
  (36,000 + 31,000).                                                                                      
  If a bidder only                                                                                        
  wishes to bid on                                                                                        
  one, but not both,                                                                                      
  purchasing 36,000                                                                                       
  bidding units would                                                                                     
  meet the requirement                                                                                    
  for either license.                                                                                     
  The bidder would be                                                                                     
  able to bid on                                                                                          
  either license, [but                                                                                    
  not both at the same                                                                                    
  time]{.underline}.                                                                                      
  If the bidder                                                                                           
  purchased only                                                                                          
  31,000 bidding                                                                                          
  units, it would have                                                                                    
  enough eligibility                                                                                      
  for the Alabama 5 -                                                                                     
  Cleburne license but                                                                                    
  not for the                                                                                             
  Columbus, GA-AL                                                                                         
  license.                                                                                                
  -------------------- ---------- ----------- ------------------ ---------------- ----------- ----------- -----

> Former defaulters should calculate their upfront payment for all
> licenses by multiplying the number of bidding units they wish to
> purchase by 1.5. In order to calculate the number of bidding units to
> assign to former defaulters, the Commission will divide the upfront
> payment received by 1.5 and round the result up to the nearest bidding
> unit.
>
> NOTE: An applicant may, on its FCC Form 175, apply for every
> applicable 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 of Upfront Payments

The Commission will use wire transfers for all Auction No. 44 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 can
provide the information electronically during the initial short-form
filing window after the form has been submitted. Wire Transfer
Instructions can also be manually faxed to the FCC, Financial Operations
Center, Auctions Accounting Group, ATTN: Tim Dates or Gail Glasser, at
(202) 418-2843 by May 28, 2002. All refunds will be returned to the
payer of record as identified on the FCC Form 159 unless the payer
submits written authorization instructing otherwise. 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
>
> FCC Registration Number (FRN)
>
> Taxpayer Identification Number (see below)
>
> 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 Part V.E., *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 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, one containing the confidential bidder
identification number (BIN) required to place bids and the other
containing the SecurID cards. 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 Wednesday, June 12, 2002, 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 bidder identification numbers or
SecurID cards can be replaced only by appearing [in person]{.underline}
at the FCC Auction Headquarters located at 445 12^th^ St., SW,
Washington, DC 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 replacements. Qualified bidders
requiring replacements must call technical support prior to arriving at
the FCC.

## Electronic 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, *i.e.*, over the Internet or the FCC's
Wide Area Network at \$2.30 per minute. 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 one
authorized bidder will be issued two SecurID cards, while applicants
with two or three authorized bidders will be issued three cards. For
security purposes, the SecurID cards and the FCC Automated Auction
System User Manual 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, therefore, SecurID cards issued for
other auctions or obtained from a source other than the FCC will not
work for Auction No. 44. The telephonic bidding phone number will be
supplied in the first overnight mailing, which also includes the
confidential bidder identification number. Each applicant should
indicate its bidding preference---electronic or telephonic---on the FCC
Form 175.

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.

## Mock Auction

All qualified bidders will be eligible to participate in a mock auction
on Friday, June 14, 2002. The mock auction will enable applicants to
become familiar with the FCC Automated Auction System prior to the
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. 44 will begin on Wednesday,
June 19, 2002. The initial bidding schedule will be announced in a
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. 44 Comment Public Notice*, we proposed to award all
licenses in Auction No. 44 in a single, simultaneous multiple round
auction.[^100] US Cellular strongly supports the use of simultaneous
multiple-round auction in a single auction that consolidates licenses,
large and small service areas, for all of the newly reallocated 700 MHz
spectrum.[^101] Spectrum Exchange/Allen proposes that package bidding
procedures be used.[^102] McBride strongly supports use of simultaneous
multiple-round auction procedures.[^103] Leap recommends that the
MSA/RSA licenses be auctioned, without package bid provisions and
separate from the EAG licenses.[^104] According to Leap, applying
package bid provisions to the MSA/RSA licenses would produce more than
10![](media/image2.wmf){width="0.20833333333333334in"
height="0.20833333333333334in"} possible combinations.[^105] Taking all
the submissions into account, the Bureau concludes that it is
operationally feasible and appropriate to auction the licenses in the
Lower 700 MHz band 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 administratively efficient.

### Maximum Eligibility and Activity Rules 

In the *Auction No. 44 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.[^106] We received no comments on this issue.

For Auction No. 44 we 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 each license is
assigned a specific number of bidding units equal to the upfront payment
listed in Attachment A on a bidding unit per dollar basis. The total
upfront payment defines the maximum number of bidding units on which the
applicant will be permitted to bid and hold high bids during any given
round. As there is no provision for increasing a bidder's maximum
eligibility during the course of an auction, prospective bidders are
cautioned to calculate their upfront payments carefully. The total
upfront payment does not affect 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 current
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* "Bid Increments and Minimum
Accepted Bids" in Part 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 Part IV.A.3
and "Stage Transitions" in Part IV.A.4, *below*), we adopt them for
Auction No. 44.

### Auction Stages

In the *Auction No. 44 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 80 percent of its current bidding
eligibility.[^107] In each round of Stage Two, a bidder desiring to
maintain its current eligibility would be required to be active on at
least 90 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 98 percent of its current bidding
eligibility. We received no comments on this proposal.

We 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 80 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 bidder's current activity (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 Two:** During the second stage of the auction, a bidder desiring
to maintain its current eligibility is required to be active on 90
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 bidder's current activity
(the sum of bidding units of the bidder's standing high bids and valid
bids during the current round) by ten-ninths (10/9).

**Stage Three:** During the third stage of the auction, a bidder
desiring to maintain its current eligibility is required to be active on
98 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 calculated by multiplying the bidder's current
activity (the sum of bidding units of the bidder's standing high bids
and valid bids during the current round) by fifty-fortyninths (50/49).

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 system's bidding module.

Because the foregoing procedures have proven successful in maintaining
proper pace in previous auctions, we adopt them for Auction No. 44.

### Stage Transitions

In the *Auction No. 44 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 20 percent for three consecutive rounds of
bidding in each Stage. 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.[^108] We received no comments on this
subject.

We adopt our proposal. Thus, the auction will start in Stage One and it
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 20 percent or less of the
licenses being auctioned (as measured in bidding units). In addition,
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. 44.

### Activity Rule Waivers and Reducing Eligibility

In the *Auction No. 44 Comment Public Notice*, we proposed that each
bidder in the auction would be provided five activity rule waivers.
Bidders may use an activity rule waiver in any round during the course
of the auction.[^109] We received no comments on this issue.

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 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. If a
bidder has no waivers remaining and does not satisfy the required
activity level, the current eligibility will be permanently reduced,
possibly eliminating them from the auction.

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 bidding system. 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* Part IV.A.3 discussion *above*). 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
system) during a round in which no bids are submitted, the auction will
remain open and the bidder's eligibility will be preserved. However, an
automatic waiver triggered during a round in which there are no new
valid bids or withdrawals will not keep the auction open. **Note: Once a
proactive waiver is placed during a round, that waiver cannot be
unsubmitted.**

### Auction Stopping Rules

For Auction No. 44, the Bureau proposed to employ a simultaneous
stopping rule.[^110] Under this 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.

The Bureau also proposed retaining discretion to implement a modified
version of the simultaneous stopping rule. The modified version will
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 will not keep the auction open
under this modified stopping rule.

The Bureau further proposed retaining 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).

In addition, we proposed that the Bureau reserve the right to declare
that the auction will end after a designated 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.[^111] 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 will be required to maintain
a higher level of bidding activity), increasing the number of bidding
rounds per day, and/or adjusting the amount of the minimum bid
increments for the licenses.

Leap[^112] recommends that the Bureau retain its current stopping rule.
The Rural 700 MHz Group[^113] suggests that the Bureau not utilize its
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, claiming that any additional rounds impose monitoring costs
on small businesses. The Bureau emphasizes that it will only utilize an
alternative stopping rule when unusual circumstances suggest that the
public interest is better served by deviating from the standard
simultaneous stopping rule. Therefore, we adopt the above proposals
concerning the auction stopping rules. Auction No. 44 will begin under
the simultaneous stopping rule, and the Bureau will retain the
discretion to invoke the other versions of the stopping rule. We believe
that these stopping rules are most appropriate for Auction No. 44,
because our experience in prior auctions demonstrates that the auction
stopping rules balance the interests of administrative efficiency and
maximum bidder participation.

### Auction Delay, Suspension, or Cancellation

In the *Auction No. 44 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 conduct of competitive bidding.[^114]

Because this approach has proven effective in resolving exigent
circumstances in previous auctions, we 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. 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 also be
included in the above public notice referenced above.

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 Bureau 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 Communications Act, as amended, 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.[^115] 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.[^116] Among other factors, the Bureau should 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 the
spectrum being auctioned.[^117] The Commission concluded that the Bureau
should have the discretion to employ either or both of these mechanisms
for future auctions.[^118]

In the *Auction No. 44 Comment Public Notice*, the Bureau proposed to
establish minimum opening bids for Auction No. 44.[^119] Specifically,
for Auction No. 44, the Bureau proposed the following license-by-license
formula for calculating minimum opening bids:

\$0.0250 \* MHz \* License Area Population[^120] with a minimum of
\$1,000 per license.[^121]

In the alternative, the Bureau sought comment on whether, consistent
with the Balanced Budget Act, the public interest would be served by
having no minimum opening bid or reserve price.[^122]

Several commenters say that the minimum opening bids are too high and
request that the Bureau lower them to the level of the upfront payments,
i.e., by approximately one-half.[^123] Rural 700 MHz Group[^124] and the
NTCA[^125] claim that the delayed use of the spectrum resulting from the
time required for clearing incumbents will affect small businesses
especially adversely. Leap alleges that disparities in encumbrance were
not factored into the minimum opening bid. [^126] However, Leap does not
propose an alternate methodology for formulating minimum opening bids.
Rural 700 MHz Group[^127] and Council Tree[^128] cite the general state
of the economy as a reason minimum bids should be lowered. TCA,[^129]
Council Tree [^130] and NTCA[^131] warn that the suggested minimum
opening bids may discourage some small and rural carriers from
participating in the auction.

Following consideration of comments received, we adopt our proposed
minimum opening bids for Auction No. 44. We believe the minimum opening
bids are well below the levels of the likely winning bids, and are not
so high as to discourage competition. The commenters have provided no
evidence to support their contention that our proposed minimum opening
bids are too high. Moreover, the Commission has sought to provide small
businesses with an opportunity to successfully compete against larger,
well-financed bidders for the Lower 700 MHz band, defining three tiers
of small businesses for MSA/RSA licenses, and two tiers of small
businesses for EAG licenses, that are eligible for bidding
credits.[^132] Because we are not persuaded that the proposed minimum
opening bids are unreasonable, we adopt our proposal.

The specific minimum opening bids for each license are set forth in
Attachment A of this Public Notice.

The minimum opening bids we adopt are reducible at the discretion of the
Bureau. We emphasize, however, that such discretion will be exercised,
if at all, sparingly and early in the auction, *i.e.*, before bidders
lose all waivers and begin to lose substantial eligibility. During the
course of the auction, the Bureau will not entertain requests to reduce
the minimum opening bid on specific licenses.

### Minimum Accepted Bids and Bid Increments 

In the *Auction No. 44 Comment Public Notice*, we proposed to use a
smoothing methodology to calculate minimum acceptable bids.[^133] We
further proposed to retain the discretion to change the minimum
acceptable bids and bid increments if circumstances so dictate.[^134]

Several commenters requested that we use a simple percentage increment
to calculate minimum acceptable bids, rather than the smoothing formula.
The Rural 700 MHz Group,[^135] TCA,[^136] and NTCA[^137] believe that a
simpler formula would allow bidders to plan their strategies in advance
whereas the smoothing formula does not. While we recognize that the
smoothing methodology is computationally more complex, it is the Bureau
that performs the calculations and provides the appropriate bid
increment amounts to bidders. Furthermore, regardless of whether the
smoothing formula or a simple percentage increment is used, minimum
acceptable bid amounts depend upon the bids actually placed in the
previous round, and therefore cannot be predicted in advance.

We 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 F.

We adopt our proposal of initially setting the weighing factor at 0.5,
the minimum percentage increment at 0.1 (10 percent), and the maximum at
0.2 (20 percent).[^138] The Bureau retains the discretion to change the
minimum acceptable bids and bid increments if it determines that
circumstance 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. The Bureau also retains the discretion to use
alternate methodologies, such as a flat percentage increment for all
licenses, for Auction No. 44 if circumstances warrant.

### High Bids

At the end of each bidding round, the Automated Auction System
determines the standing high bid for each license based on the gross
dollar amounts of the bids received for each license.

In the case of tied high bids, a random number generator will be used to
determine the standing high bid. A random number will be assigned to
each bid. The tie bid having the highest random number will become the
standing high bid.

### Bidding

During a bidding round, a bidder may submit bids for as many licenses as
it wishes (subject to its eligibility), 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. Bidders
should note that the bidding units associated with licenses for which
the bidder has removed or withdrawn its bid do not count towards the
bidder's activity at the close of the round.

Please note that all bidding will take place remotely either through the
Automated Auction System 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, five to ten minutes are necessary to complete a bid
submission.) There will be no on-site bidding during Auction No. 44.

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 allow bidders to submit bids on only those
licenses for which the bidder applied on its FCC Form 175.

The Automated Auction System requires each bidder to be logged in during
the bidding round using the bidder identification number provided in the
registration materials, and the generated SecurID code. Bidders are
strongly encouraged to print bid confirmations [after]{.underline} they
submit their bids.

In each round, eligible bidders will be able to place bids on a given
license in any of nine different amounts.[^139] For each license, the
Automated Auction System interface will list the nine acceptable bid
amounts in a drop-down box. Bidders may use the drop-down box to select
from among the nine acceptable bid amounts. The Automated Auction System
also includes an import function that allows bidders to upload text
files containing their bid information.

Once there is a standing high bid on a license, the Automated Auction
System will calculate a minimum acceptable bid for that license for the
following round. The difference between the minimum acceptable bid and
the standing high bid for each license will define the *bid increment*.
The nine acceptable bid amounts for each license consist of the minimum
acceptable bid (the standing high bid plus one bid increment) and
additional amounts calculated using multiple bid increments (*i.e.*, the
second bid amount equals the standing high bid plus two times the bid
increment, the third bid amount equals the standing high bid plus three
times the bid increment, etc.).

Until a bid has been placed on a license, the minimum acceptable bid for
that license will be equal to its minimum opening bid. The additional
bid amounts for licenses that have not yet received a bid are calculated
using the difference between the minimum opening bid times one plus the
minimum percentage increment, rounded,[^140] and the minimum opening
bid. Therefore, when the minimum percentage increment equals 0.1, the
first additional bid amount will be approximately ten percent higher
than the minimum opening bid; the second, twenty percent; the third,
thirty percent; etc.

In the case of a license for which the standing high bid has been
withdrawn,[^141] the minimum acceptable bid will equal the second
highest bid received for the license. The additional bid amounts are
calculated using the difference between the second highest bid times one
plus the minimum percentage increment, rounded, and the second highest
bid.

See Attachment F for more detail on the calculation of the various bid
amounts.

Finally, bidders are cautioned in selecting their bid amounts because,
as explained in the following section, bidders who withdraw a standing
high bid from a previous round, even if mistakenly or erroneously made,
are subject to bid withdrawal payments.

### Bid Removal and Bid Withdrawal

In the *Auction No. 44 Comment Public Notice*, we proposed bid removal
and bid withdrawal rules.[^142] 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 comments on this issue.

**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 bidding system, 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 adopt these procedures for Auction No. 44.

Once a round closes, a bidder may no longer remove a bid. However, in
later rounds, 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). **Note: Once a withdrawal is placed during a round, that
withdrawal cannot be unsubmitted.**

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 licenses in combination, we conclude that, for
Auction No. 44, 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 minimum
accepted bid in the next round will be the prior round's second highest
bid price, which may be less than, or equal to, in the case of tie bids,
the amount of the withdrawn bid.[^143] The additional bid amounts are
calculated using the difference between the second highest bid times one
plus the minimum percentage increment, rounded, and the second highest
bid. The Commission will serve as a "place holder" on the license until
a new acceptable bid is submitted on that license.

**Calculation.** Generally, the Commission imposes payments on bidders
that withdraw high bids during the course of an auction.[^144] If a
bidder withdraws its bid and there is no higher bid in the same or
subsequent auction(s), the bidder that withdrew its bid is responsible
for the difference between its withdrawn bid and the net high bid in the
same or subsequent auction(s). In the case of multiple bid withdrawals
on a single license, within the same or subsequent auctions(s), the
payment for each bid withdrawal will be calculated based on the sequence
of bid withdrawals and the amounts withdrawn. No withdrawal payment will
be assessed for a withdrawn bid if either the subsequent winning bid or
any of the intervening subsequent withdrawn bids, in either the same or
subsequent auctions(s), equals or exceeds that withdrawn bid. Thus, a
bidder that withdraws a bid will not be responsible for any withdrawal
payments if there is a subsequent higher bid in the same or subsequent
auction(s). This policy allows bidders most efficiently to allocate
their resources as well as to evaluate their bidding strategies and
business plans during an auction while, at the same time, maintaining
the integrity of the auction process. The Bureau retains the discretion
to scrutinize multiple bid withdrawals on a single license for evidence
of anti-competitive strategic behavior and take appropriate action when
deemed necessary.

In the *Part 1 Fifth Report and Order*, the Commission modified Section
1.2104(g)(1) of the rules regarding assessments of interim bid
withdrawal payments.[^145] As amended, Section 1.2104(g)(1) provides
that in instances in which bids have been withdrawn on a license that is
not won in the same auction, the Commission will assess an interim
withdrawal payment equal to 3 percent of the amount of the withdrawn
bids. The 3 percent interim payment will be applied toward any final bid
withdrawal payment that will be assessed after subsequent auction of the
license. Assessing an interim bid withdrawal payment ensures that the
Commission receives a minimal withdrawal payment pending assessment of
any final withdrawal payment. The *Part 1 Fifth Report and Order*
provides specific examples showing application of the bid withdrawal
payment rule.[^146]

### Round Results

Bids placed during a round will not be published until the conclusion of
that bidding period. After a round closes, the Bureau 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. Reports reflecting bidders' identities and bidder identification
numbers for Auction No. 44 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 by clicking a link on the Automated Auction System.

### Maintaining the Accuracy of FCC Form 175 Information

As noted in Part II.H., 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 revision of
exhibits. Applicants should make these 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:
[auction44@fcc.gov](mailto:auction82@fcc.gov). The electronic mail
summarizing the changes must include a subject or caption referring to
Auction No. 44. The Bureau requests that parties format any attachments
to electronic mail as Adobe^®^ Acrobat^®^ (pdf) or Microsoft^®^ Word
documents.

**A separate copy of the letter should be faxed to the attention of
Kathryn Garland at (717) 338-2850.** Questions about other changes
should be directed to Howard Davenport of the 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 winning bidders, down payments
and any withdrawn bid payments due.

Within ten business days after release of the auction closing 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 small, very small business or entrepreneur bidding credits).
*See* 47 C.F.R. § 1.2107(b). In addition, by the same deadline all
bidders must pay any bid withdrawal payments due under 47 C.F.R. §
1.2104(g), as discussed in "Bid Removal and Bid Withdrawal," Part
IV.B.6. (Upfront payments are applied first to satisfy any withdrawn bid
liability, before being applied toward down payments.)

## Auction Discount Voucher

On June 8, 2000, the Commission awarded Qualcomm, Inc. a transferable
Auction Discount Voucher ("ADV") in the amount of
\$125,273,878.00.[^147] This ADV may be used by Qualcomm or its
transferee, in whole or in part, to adjust a winning bid in any spectrum
auction prior to June 8, 2003, subject to terms and conditions set forth
in the Commission's Order. Qualcomm transferred \$10,848,000.00 of the
ADV to a winning bidder in FCC Auction No. 35 and the transferee used
its portion of the ADV to pay a portion of one of its winning bids in
Auction No. 35.[^148] The remaining portion of Qualcomm's ADV could be
used to adjust winning bids in another FCC auction, including Auction
No. 44.

## Long-Form Application

Within ten business days after release of the auction closing notice,
winning bidders must electronically submit a properly completed
long-form application (FCC Form 601) and required exhibits for each
license won through Auction No. 44. Winning bidders that are small, very
small businesses or entrepreneurs must include an exhibit demonstrating
their eligibility for small, very small business or entrepreneur 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.

## Tribal Land Bidding Credit

A winning bidder that intends to use its license(s) to deploy facilities
and provide services to federally-recognized tribal lands that are
unserved by any telecommunications carrier or that have a telephone
service penetration rate equal to or below 70 percent is eligible to
receive a tribal land bidding credit as set forth in 47 C.F.R. §§ 1.2107
and 1.2110(f). A tribal land bidding credit is in addition to, and
separate from, any other bidding credit for which a winning bidder may
qualify.

Unlike other bidding credits that are requested prior to the auction, a
winning bidder applies for the tribal land bidding credit *after*
winning the auction when it files its long-form application (FCC Form
601). When filing the long-form application, the winning bidder will be
required to advise the Commission whether it intends to seek a tribal
land bidding credit, for each market won in the auction, by checking the
designated box(es). After stating its intent to seek a tribal land
bidding credit, the applicant will have 90 days from the close of the
long-form filing window to amend its application to select the specific
tribal lands to be served and provide the required tribal government
certifications. Licensees receiving a tribal land bidding credit are
subject to performance criteria as set forth in 47 C.F.R. § 1.2110(f).

For additional information on the tribal land bidding credit, including
how the amount of the credit is calculated, applicants should review the
Commission's rule making proceeding regarding tribal land bidding
credits and related public notices.[^149] Relevant documents can be
viewed on the Commission's web site by going to
[http://wireless.fcc.gov/auctions](http://www.fcc.gov/wtb/auctions) and
clicking on *Tribal Land Credits*.

## 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. 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 license in Auction No. 44 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. All refunds will be returned to the payer of record, as
identified on the FCC Form 159, unless the payer submits written
authorization instructing otherwise.

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. If you
have completed the refund instructions electronically, then only a
written request for the refund is necessary. If not, the request must
also include wire transfer instructions, Taxpayer Identification Number
(TIN) and FCC Registration Number (FRN). Send refund request to:

Federal Communications Commission

Financial Operations Center

Auctions Accounting Group

Gail Glasser or Tim Dates

445 12th Street, SW, Room 1-C863

Washington, DC 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 information to the Auctions Accounting Group at (202)
418-2843. Once the information 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 Tim Dates or Gail
> Glasser at (202) 418-1995.

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

**Auctions and Industry Analysis Division:** Howard Davenport, Legal
Branch, or Lyle Ishida, Auctions Operations Branch, at (202) 418-0660;
Linda Sanderson, Auctions Operations Branch, at (717) 338-2888

**Commercial Wireless Division:** Amal Abdallah and Gary Oshinsky**,**
Policy and Rules Branch, or Joanne Epps and Melvin Spann, Licensing and
Technical Analysis Branch, at (202) 418-0620

[]{#__RefHeading___Toc4388499 .anchor}Attachment A

PLACE HOLDER

# attachment B

FCC AUCTION SEMINAR REGISTRATION FORM

Auction No. 44

The FCC will sponsor a one-day seminar for Auction No. 44 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 Automated Auction System.

Representatives from each company may attend on a reservation basis,
first-come first-served until room capacity is filled. The seminar will
be held:

Wednesday, May 1, 2002

Federal Communications Commission

445 12th Street SW

Washington, DC 20554

Registration 9:30 a.m. -- 10:00 a.m.

Seminar 10:00 a.m. - 2 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 no later than

Monday, April 29, 2002, by fax to:

FCC Auction 44

Auctions Operations Branch

[1270 Fairfield Road]{.underline}

[Gettysburg, PA 17325-7245]{.underline}

FAX: 717-338-2850

Phone: 717-338-2888

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

I/We will attend the Auction No. 44 Seminar, scheduled for Wednesday,
May 1, 2002.

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

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

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

Company address:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Phone:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_Fax:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

# Attachment C

ELECTRONIC FILING AND REVIEW

OF THE FCC FORM 175

Applicants must submit their FCC Form 175 applications electronically.
The FCC recommends submitting your Form 175 via the Internet. As a
contingency, you can submit via the FCC Wide-Area Network. FCC Form 175
applications must be submitted and confirmed by **6:00 p.m. ET on
Wednesday, May 8, 2002.** Late applications or unconfirmed submissions
of electronic data will not be accepted.

Applicants must click the **SUBMIT Application** button on the
*Submission* 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.

## Software Requirements

Applicants will need to meet the following minimum software
requirements:

-   Web Browser, either of the following:

```{=html}
<!-- -->
```
-   Microsoft® Internet Explorer 4.0 or higher (recommended). Your
    browser must have either Microsoft VM or Java Plug-In Version 1.3.1
    installed.

-   Netscape® Communicator™ 4.0 or higher, with Java Plug-In Version
    1.3.1.

> Java Plug-In Version 1.3.1 is available for downloading at
> [***http://java.sun.com/getjava/download.html***](http://java.sun.com/products/plugin/).

-   PDF Viewer: Adobe Acrobat Reader 4.0 or higher (available at
    ***http://www.adobe.com***)

    If you wish to use the download feature on the Search Results page,
    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/shareware***).

## Submitting FCC Form 175 Applications

You can submit FCC Form 175 applications electronically via the
Internet. Start your web browser and point it to either
***https://auctions.fcc.gov/*** (primary location) or
***https://auctions2.fcc.gov/*** (secondary location). On the FCC
Auctions page, click **Form 175 Application & Search** to obtain the
Form 175 Homepage.

**Note:** As a contingency, you may submit FCC Form 175 applications via
the FCC Wide Area Network, using Dial-Up Networking. To access the Wide
Area Network, configure your dial-up network to dial ***800-378-7435***.
(Alternatively, you can configure your dial-up network to dial
***877-844-2788***.)

### Logging On

The Form 175 Homepage has a Form 175 Logon area at the top right. This
area provides fields that let you identify yourself to the system before
submitting a Form 175 application.

**Important:** On December 3, 2001, the FCC Registration Number (FRN)
became mandatory for all parties conducting business with the FCC. An
FRN is mandatory for all filers logging onto the 175 Application System.

Once you have logged on with your FRN, you can click the **New Form**
link to obtain the *Profile* page for the auction.

### Uploading Attachments

When uploading attachments from the Form 175 *Attachments* page,
applicants may use a variety of file formats\--including Word 2000 or
earlier, WordPerfect 6.*x* or earlier, Adobe PDF, and ASCII text \-- and
should verify that the files contain all exhibit information. Also note
the following about files to be uploaded:

-   Graphics files (e.g., .*bmp, .tiff, .jpg*) and spreadsheets (e.g.,
    Excel, Lotus) are not supported,

-   Word processing files that are uploaded may not contain graphic
    images.

-   Do not include punctuation marks (e.g., ? . -- ,) in the name of a
    file to be uploaded. The FCC system will not be able to convert that
    file.

-   Do not upload a password-protected file. The FCC system will not be
    able to open it or convert it.

The system converts each uploaded attachment to PDF format. (The
conversion process generally completes within 30 minutes.) Until the
system has converted your file to PDF format, the description field
shows *Not converted*.

Repeat this procedure for each additional attachment you want to add.
When you have finished adding attachments, click the **Continue to
CERTIFICATION** button to obtain the *Certification* page.

#### Unreadable Attachment Files

If you are unable to read an attachment file after it has been
converted, please do the following:

1\. Re-upload the attachment.

2\. If the file still has not been 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 using their **Delete** links.

### Completing the Submission Procedure

Applicants must press the **SUBMIT Application** button on the
*Submission* page to successfully submit their FCC Form 175. Pressing
**SUBMIT Application** produces a *Submission Confirmation* page showing
the assigned FCC Account Number. During each filing period, submitted
applications may be updated and amended multiple times until the filing
deadline.

## Reviewing FCC Form 175 Applications

Once the FCC has completed the 175 Review process, you can view FCC Form
175 applications electronically by searching for them in the FCC
database. Start your web browser and point it to either
***https://auctions.fcc.gov/*** (primary location) or
***https://auctions2.fcc.gov/*** (secondary location). Click the **Form
175 Application & Search** link, then click the **SEARCH** link at the
top of the page. When the *Form 175 Search* page appears, select the
search criteria you want and then click the **Submit** button.

## Help

For technical assistance with 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 7 a.m. to 10 p.m. ET, Saturday from 8 a.m. to 7 p.m. ET, and
Sunday from 12 noon to 6 p.m. ET. *All calls to the FCC Technical
Support Hotline are recorded.*

You can also contact Technical Support via e-mail. To obtain the
address, click the **Support** tab on the Form 175 Homepage.

# Attachment D

GUIDELINES FOR COMPLETION OF FCC FORM 175 AND EXHIBITS

## FCC Form 175

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

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

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

**Legal 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 corporation (LLC) or
government entity.

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

**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.**

**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.

**Bidding Credit Eligibility:** Applicants that qualify for a small,
very small business or entrepreneur bidding credit must select the
applicable bidding credit (15 percent, 25 percent or 35 percent) in the
bidding credit eligibility item on the Form 175. Applicants are advised
that this is the sole opportunity applicants have to elect small
business status and bidding credit level (if applicable). There is no
opportunity to change the election once the short-form filing deadline
passes on May 8, 2002.

**Telephonic or Electronic Bidding Options:** Bidders may participate in
the auction either electronically or telephonically, and must specify
their preference. To participate in the auction, every authorized bidder
must have a SecurID card, which the FCC will provide free of charge.

**License Selection:** Applicants should select 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 on May 8, 2002. It is critically important that you confirm the
licenses that you have selected because the Automated Auction System
will not accept bids on licenses for which an applicant has not applied
on its FCC Form 175.

The online Form 175 application provides filters that enable you to
generate a list of licenses by License Area (either "EAG" or "CMA"),
Market Number, and/or Block. Once you obtain this customized list, you
can use it to select the licenses you are interested in.

## Exhibits and Attachments 

In addition to the FCC Form 175 itself, applicants must submit
additional information required by the FCC's rules. If attachments are
not uploaded, the FCC Form 175 submission process cannot be completed.
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 using the following format.

If you find that an attachment has not converted properly to Adobe PDF
format, take the following steps:

*1) 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.*

*2) Re‑upload the attachment.*

*3) When the re-uploaded attachment has successfully converted, delete
the failed attachment.*

**NOTE: Applicants should not include sensitive information (i.e.,
TIN/EIN) 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 ,
very small business or entrepreneur consortium must provide this
information. The following information is required:

### 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; name, title, and
                         citizenship of a responsible officer or director

  Limited Liability      Corporate name and address; name, address, and
  Corporation            citizenship of all members 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)

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

### Ownership Information

+----------------------+-----------------------------------------------+
| ***Applicant         | ***Required Information***                    |
| Status***            |                                               |
+======================+===============================================+
| All applicants       | Name, citizenship, and address of all         |
|                      | controlling interests of the applicant as     |
|                      | discussed in Part II.D.3 of this public       |
|                      | notice.                                       |
+----------------------+-----------------------------------------------+
| All applicants       | Name, citizenship, and address of all parties |
|                      | holding 10 percent or more of each 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 all parties holding indirect          |
|                      | ownership interests in the applicant that     |
|                      | equals 10 percent or more, as determined by   |
|                      | successive multiplication of the ownership    |
|                      | percentages in each link of the vertical      |
|                      | ownership chain, 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.* Company 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 Company 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 Company A's     |
|                      | interest in the applicant need not be         |
|                      | reported. However, if Company A owned 40% of  |
|                      | Company B in the above example, then Company  |
|                      | 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                                     |
+----------------------+-----------------------------------------------+
| All applicants       | List of any FCC-regulated 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 |
|                      | > Part II.D.3 of this public notice)          |
|                      |                                               |
|                      | owns a 10 percent or greater interest of the  |
|                      | applicant or 10 percent or more of any class  |
|                      | of stock, warrants, options or debt           |
|                      | securities of the applicant. (*See also* 47   |
|                      | C.F.R. § 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 regulated entity or an   |
|                      | applicant for an FCC license). The applicant  |
|                      | must list Company A on its FCC 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 regulated entity or an applicant for an   |
|                      | FCC license). The applicant must list both    |
|                      | Company A and Company B on its FCC Form 175   |
|                      | Exhibit A and provide the required            |
|                      | information.                                  |
+----------------------+-----------------------------------------------+
|                      | *Example of c.* Company A owns 55% of the     |
|                      | applicant and owns 10 percent of Company B    |
|                      | (an FCC regulated entity or an Applicant for  |
|                      | an FCC license). The applicant must list both |
|                      | Company A and Company B on its FCC Form 175   |
|                      | Exhibit A and provide the required            |
|                      | information.                                  |
+----------------------+-----------------------------------------------+

**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).

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 on which 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 applicants for licenses covering the same
geographic area from communicating concerning bids, bidding strategies,
or settlements during the period between the initial short-form
applications filing deadline and the deadline for down payments on
licenses won in the auction.* 47 C.F.R. § 1.2105(c).

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

+----------------------+--------------------+-------------------------+
| ***Entity***         | ***Required        |                         |
|                      | Information***     |                         |
+======================+====================+=========================+
| Applicant            | Average annual     |                         |
|                      | gross revenues for |                         |
|                      | the preceding      |                         |
|                      | three years set    |                         |
|                      | forth *both        |                         |
|                      | separately*        |                         |
|                      | (*e.g.*, for each  |                         |
|                      | of the preceding   |                         |
|                      | three years        |                         |
|                      | individually) *and |                         |
|                      | in the aggregate*  |                         |
|                      | (for all of the    |                         |
|                      | preceding three    |                         |
|                      | years combined).   |                         |
|                      | Certification that |                         |
|                      | the average of the |                         |
|                      | aggregated annual  |                         |
|                      | 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          | Same information   |                         |
| Affiliates           | required as        |                         |
|                      | discussed above    |                         |
| *See* 47 CFR §§      |                    |                         |
| 1.2110, 1.2112       |                    |                         |
+----------------------+--------------------+-------------------------+
| Applicant's          | Same information   |                         |
| Controlling          | required as        |                         |
| Interests *See* 47   | discussed above    |                         |
| CFR §§ 1.2110,       |                    |                         |
| 1.2112.              |                    |                         |
+----------------------+--------------------+-------------------------+
|                      | *Example.* The     |                         |
|                      | applicant had      |                         |
|                      | gross revenues of  |                         |
|                      | \$500,000 in 1999, |                         |
|                      | \$1,000,000 in     |                         |
|                      | 2000, and          |                         |
|                      | \$3,000,000 in     |                         |
|                      | 2001, 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(c)(5)(i)(B). |                         |
|                      | Company B owns 52% |                         |
|                      | of the applicant,  |                         |
|                      | making Company B a |                         |
|                      | controlling        |                         |
|                      | interest of the    |                         |
|                      | applicant, as      |                         |
|                      | defined in Part    |                         |
|                      | II.D.3 of this     |                         |
|                      | public notice.     |                         |
|                      | Company B owns     |                         |
|                      | 100% of Company C, |                         |
|                      | making Company C   |                         |
|                      | an affiliate of    |                         |
|                      | the applicant's    |                         |
|                      | controlling        |                         |
|                      | interest, under    |                         |
|                      | Section            |                         |
|                      | 1                  |                         |
|                      | .2110(c)(5)(i)(C). |                         |
|                      | The applicant's    |                         |
|                      | Exhibit C would    |                         |
|                      | look like this:    |                         |
+----------------------+--------------------+-------------------------+
|                      | Applicant Name     |                         |
+----------------------+--------------------+-------------------------+
|                      | 1999 gross         | \$ 500,000              |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2000 gross         | \$ 1,000,000            |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2001 gross         | \$ 3,000,000            |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | Average gross      | \$ 1,500,000            |
|                      | revenues for the   |                         |
|                      | preceding 3 years  |                         |
+----------------------+--------------------+-------------------------+
|                      | Company A (an      |                         |
|                      | affiliate of the   |                         |
|                      | applicant)         |                         |
+----------------------+--------------------+-------------------------+
|                      | 1999 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2000 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2001 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | Average gross      | \$ enter amount         |
|                      | revenues for the   |                         |
|                      | preceding 3 years  |                         |
+----------------------+--------------------+-------------------------+
|                      | Company B (a       |                         |
|                      | controlling        |                         |
|                      | interest in the    |                         |
|                      | applicant)         |                         |
+----------------------+--------------------+-------------------------+
|                      | 1999 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2000 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2001 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | Average gross      | \$ enter amount         |
|                      | revenues for the   |                         |
|                      | preceding 3 years  |                         |
+----------------------+--------------------+-------------------------+
|                      | Company C (an      |                         |
|                      | affiliate of the   |                         |
|                      | applicant's        |                         |
|                      | controlling        |                         |
|                      | interest)          |                         |
+----------------------+--------------------+-------------------------+
|                      | 1999 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2000 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | 2001 gross         | \$ enter amount         |
|                      | revenues           |                         |
+----------------------+--------------------+-------------------------+
|                      | Average gross      | \$ enter amount         |
|                      | revenues for the   |                         |
|                      | preceding 3 years  |                         |
+----------------------+--------------------+-------------------------+

**NOTE:** Each member of an applicant that is applying to bid as a
consortium of small, very small

businesses or entrepreneurs must provide this information and qualify
for the claimed status.

**Exhibit D -- Information Required of All Applicants Regarding Prior
Defaults and Prior Delinquencies:** Each applicant must include at
Exhibit D a statement made under penalty of perjury indicating whether
or not the applicant, its affiliates, its controlling interests, or the
affiliates of its controlling interest have ever been in default on any
Commission licenses or have ever been delinquent on any non-tax debt
owed to any Federal agency. The applicant must provide such information
for itself, for each of its controlling interests and affiliates, and
for each affiliate of its controlling interests as defined by Section
1.2110 of the Commission's rules (as amended in the *Part 1 Fifth Report
and Order*).

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

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

**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, 1.925.

**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.

**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 Application" button on the
"Submission" 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).

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 by electronic mail
to the attention of Margaret Wiener, Chief, Auctions and Industry
Analysis Division, at the following address: <auction44@fcc.gov>, in
which case the applicant must indicate in Exhibit F 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.

The electronic mail summarizing the changes must include a subject or
caption referring to Auction No. 44. The Bureau requests that parties
format any attachments to electronic mail as Adobe^®^ Acrobat^®^ (pdf)
or Microsoft^®^ Word documents.

**A separate copy of the letter should be faxed to the attention of
Kathryn Garland at (717) 338-2850.**

# Attachment E

AUCTION-SPECIFIC INSTRUCTIONS FOR

FCC REMITTANCE ADVICE (FCC FORM 159-February 2000 edition)

## Upfront Payments

The following information supplements the standard instructions for FCC
Form 159 (Revised 2/00), and is provided to help ensure correct
completion of FCC Form 159 for upfront payments for Auction No. 44.
Applicants need to complete FCC Form 159 carefully, since:

-   **Mistakes may affect their bidding eligibility; and**

```{=html}
<!-- -->
```
-   **Lack of consistency between information set forth in FCC Form 159
    (Revised 2/00), 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 "358415"
>
> 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 (Revised 2/00).

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 from the
> Applicant
>
> Information section.
>
> 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).

11. Payer FRN -- Enter the payer's ten-digit FCC Registration Number
    (FRN)

> registered in the Commission Registration System (CORES).

12. Payer TIN -- Enter the payer's nine-digit Taxpayer Identification
    Number (TIN).

> 24A Payment Type Code - Enter "A44U"
>
> 25A Quantity - Enter the number "1"
>
> 26A Fee Due - Amount of Upfront Payment
>
> 27A Total Fee - Will be the same amount as 26A.
>
> 28A FCC Code 1 - Enter the number "44" (indicating Auction No. 44).

NOTES:

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

-   If applicant is different from the payer, complete blocks 13 through
    22 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 Section E 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

Minimum Acceptable Bids, Bid Increments, and the Smoothing Formula

The Automated Auction System calculates the minimum acceptable bids and
bid increments 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 smoothing methodology to
calculate minimum acceptable bids and bid increments.

The smoothing formula calculates minimum acceptable bids by first
calculating a *percentage increment*, not to be confused with the *bid
increment*, for each license based on a weighted average of the activity
received on each license in all previous rounds. This methodology
tailors the percentage increment for each license based on activity,
rather than setting a global increment for all licenses.

In a given round, the calculation of the percentage increment for each
license 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 (10%), and the
maximum percentage increment at 0.2 (20%).

Equations

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

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

X ~i+1~ = I~i+1~ \* Y~i~

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 increment for the next round (round i+1)

N = minimum percentage increment or percentage increment floor

M = maximum percentage increment or percentage increment ceiling

X ~i+1~ = dollar amount associated with the percentage increment

Y~i~ = high bid from the current round

Under the 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 high bid from the current round plus the dollar amount
associated with the percentage increment, with the result rounded to the
nearest thousand if it is over ten thousand, to the nearest hundred if
it is under ten thousand but over one thousand, or to the nearest ten if
it is below one thousand.

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 the smoothing
formula:

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

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

2\. Calculation of dollar amount associated with the percentage
increment for round 2 (using I~2~ from above):

X~2~ = 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 the smoothing
formula:

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

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

2\. Calculation of dollar amount associated with the percentage
increment for round 3 (using I~3~ from above):

X~3~ = 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 the smoothing
formula:

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

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

2\. Calculation of dollar amount associated with the percentage
increment for round 4 (using I~4~ from above):

X~4~ = 0.2 \* \$2,400,000 = \$480,000

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

As stated above, until a bid has been placed on a license, the minimum
acceptable bid for that license will be equal to its minimum opening
bid. The additional bid amounts are calculated using the difference
between the minimum opening bid times one plus the minimum percentage
increment, rounded as described above, and the minimum opening bid. That
is, I = (minimum opening bid)(1 + N){rounded}- (minimum opening bid).
Therefore, when N equals 0.1, the first additional bid amount will be
approximately ten percent higher than the minimum opening bid; the
second, twenty percent; the third, thirty percent; etc.

In the case of a license for which the standing high bid has been
withdrawn, the minimum acceptable bid will equal the second highest bid
received for the license. The additional bid amounts are calculated
using the difference between the second highest bid times one plus the
minimum percentage increment, rounded, and the second highest bid.

# ATTACHMENT G

SUMMARY LISTING OF DOCUMENTS FROM THE COMMISSION

AND THE WIRELESS TELECOMMUNICATIONS BUREAU

ADDRESSING APPLICATION OF THE ANTI‑COLLUSION RULES

## Commission Decisions:

*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. 15,374 (1996).

In re Applications of Mercury PCS II, LLC, *Notice of Apparent Liability
for Forfeiture,* 12 FCC Rcd. 17,970 (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,*13 FCC Rcd 8286 (1998); In the Matter of
Notice of Apparent Liability for Forfeiture of US West Communications,
Inc., *Order*, FCC 99-90 (May 7, 1999).

In re Application of Western PCS BTA I Corporation, *Notice of Apparent
Liability for Forfeiture, FCC* 98‑42 (March 16, 1998); In the Matter of
Notice of Apparent Liability for Forfeiture of Western PCS BTA 1
Corporation, *Memorandum Opinion and Orde*r, 14 FCC Rcd 21571, 21577-78,
¶ 20 (rel. Dec. 13, 1999).

In the Matter of Amendment of Part 1 of the Commission's
Rules---Competitive Bidding Procedures, *Seventh Report and Order*, 16
FCC Rcd 17546 (2001).

## Wireless Telecommunications Bureau Decisions:

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. 18,093
(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. 19,627
(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:

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. 10,134 (1996).

Wireless Telecommunications Bureau Responds to Questions About the Local
Multipoint Distribution Service Auction, *Public Notice*, DA 98-37 (rel.
January 9, 1998).

### Letters from the Office of General Counsel and the Wireless Telecommunications Bureau:

*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. 10,895
(1996).

*Letter to David L. Nace from Kathleen O'Brien Ham, Chief, Auctions
Division, Wireless Telecommunications Bureau,* 11 FCC Rcd. 11,363
(1996).

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

*Letter to Robert Pettit, Wiley, Rein & Fielding from Margaret W.
Wiener, Chief, Auctions and Industry Analysis Division, Wireless
Telecommunications Bureau*, DA 00-2905 (released December 26, 2000).

### Civil Actions Initiated by U.S. Department of Justice:

*U.S. v. Omnipoint Corp.,* Proposed Final Judgements and Competitive
Impact Statements, Department of Justice, 63 FR 65,228 (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).

**How to Obtain Copies of the Anti-Collusion Decisions:**

Many of the documents listed in this attachment can be retrieved from
the following Commission web site:
[http://wireless.fcc.gov/auctions/anticollusion]{.underline}

The documents may be located by using our search engine (select the link
"search"). Documents retrieved from the web site are available in
various formats including Word, WordPerfect, Acrobat Reader, Excel, and
ASCII Text. To review a document in its entirety, including footnotes,
it is necessary to access the document in WordPerfect, MS Word, or
Acrobat Reader.

Additionally, all of the documents can be ordered in hard copy for a fee
from the Commission's contractor, Qualex International at (202)
863-2893.

[^1]: *See* Reallocation and Service Rules for the 698-746 Spectrum MHz
    Band (Television Channels 52-59), GN Docket 01-74, *Report and
    Order*, FCC 01-364, ("*Lower 700 MHz Report & Order*") (rel. January
    18, 2002).

[^2]: Balanced Budget Act of 1997, Pub. L. No. 105-33, 111 Stat. 251, §
    3002(a) (1997) (codified at 47 U.S.C. § 309(j)(4)(F)) ("Balanced
    Budget Act"). 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 of Licenses in the 698-746 MHz Band Scheduled for
    June 19, 2002; Comment Sought on Reserve Prices or Minimum Opening
    Bids and Other Auction Procedural Issues, *Public Notice*, DA 02-200
    (rel. January 24, 2002) ("A*uction No. 44 Comment Public Notice"*).

[^4]: Comments were filed on January 31, 2002 by Scott D. Reiter and
    Vincent D. McBride ("Reiter/McBride"). Comments were filed on
    February 6, 2002 by McBride Spectrum Partners, LLC ("McBride"),
    Paxson Communications Corporation ("Paxson"), Rural 700 MHz Group,
    Rural Telecommunications Group ("RTG"), Spectrum Exchange Group, LLC
    and Allen & Company Incorporated ("Spectrum Exchange/Allen"), Telcom
    Consulting Associates ("TCA"), and United States Cellular
    Corporation ("US Cellular").

[^5]: Reply Comments were filed on February 13, 2002 by Council Tree
    Communications, LLC ("Council Tree"), Entravision Communications
    Corporation ("Entravision"), Leap Wireless International, Inc.
    ("Leap"), McBride Spectrum Partners, LLC ("McBride"), National
    Telephone Cooperative Association ("NTCA"), Norwell Television, LLC
    ("Norwell"), Paxson Communications Corporation ("Paxson"), Rural 700
    MHz Group ("Group"), Rural Telecommunications Group ("RTG"),
    Spectrum Clearing Alliance ("Spectrum Alliance"), Spectrum Exchange
    Group, LLC and Allen & Company Incorporated ("Spectrum
    Exchange/Allen"), Telecom Consulting Associates ("TCA"), and United
    States Cellular Corporation ("US Cellular"). Spectrum Exchange Group
    submitted a late-filed comment on March 15, 2002.

[^6]: A substantial portion of the comments filed by Reiter/McBride and
    McBride address the Commission's ownership attribution rules as
    applied in Auction No. 35. *See* Comments of Reiter/McBride at 1-3;
    *see also* Comments of McBride at 1-7. Because these rules have been
    adopted by the Commission in its Part 1 rulemaking proceeding and
    were not a matter upon which the Bureau sought comment, the Bureau
    will not address them in this public notice. S*ee* Amendment of Part
    1 of the Commission's Rules\--Competitive Bidding Procedures, WT
    Docket No. 97-82, *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 (2000) (modified by Erratum,
    DA 00-2475 (rel. Nov. 3, 2000) ("*Part 1 Fifth Report and Order*")
    (recons. pending).

[^7]: On February 28, 2002, the Rural 700 MHz Group submitted a
    "Supplement" to its Comments and Reply Comments. In its Supplement,
    the Rural 700 MHz Group stated that the name "PVT" should be added
    to the list of participants in the Rural 700 MHz Group.

[^8]: *Lower 700 MHz Report & Order* at ¶ 1*.*

[^9]: *Id* at ¶¶ 13-14.

[^10]: *Id.* at ¶¶ 13-14, 27-33, and 44-46.

[^11]: *Id.* at ¶¶ 76-96. For the Lower 700 MHz band, the Commission
    adopted Metropolitan Statistical Areas (MSAs) and Rural Service
    Areas (RSAs) as defined by Public Notice Report No. CL-92-40 "Common
    Carrier Public Mobile Services Information, Cellular MSA/RSA Markets
    and Counties," dated January 24, 1992, DA 92-109, 7 FCC Rcd 742
    (1992), with the following modifications: (i) the service areas of
    cellular markets that border the U.S. coastline of the Gulf of
    Mexico extend 12 nautical miles from the U.S. Gulf coastline; and
    (ii) the service area of cellular market 306 that comprises the
    water area of the Gulf of Mexico extends from 12 nautical miles off
    the U.S. Gulf coast outward into the Gulf. *See* 47 C.F.R. §
    27.6(c)(2).

[^12]: *Id.* at ¶¶ 97-123.

[^13]: *Id.* at ¶¶ 99-111.

[^14]: *Id.* at ¶¶ 164-179.

[^15]: Auction of Licenses in the 747-762 and 777-792 MHz Bands
    Scheduled for June 19, 2002;Comment Sought on Adding to Auction
    Inventory and Further Modifying Package Bidding Procedures, DA
    02-260*, Public Notice*, 17 FCC Rcd 2117 (2002).

[^16]: Comments of Rural 700 MHz Group at 2; Comments of RTG at 2-3.

[^17]: Comments of Rural 700 MHz Group at 2.

[^18]: *Id*. at 2-3.

[^19]: Comments of RTG at 2-3.

[^20]: *Id.* at 2-3.

[^21]: Comments of TCA at 2.

[^22]: Reply Comments of TCA at 2-3.

[^23]: Reply Comments of McBride at 1-2. *But see* Reply Comments of
    McBride at 3, in which McBride supports consolidation of licenses
    into a single auction.

[^24]: Reply Comments of the NTCA at 1-2.

[^25]: Reply Comments of Leap at 1-2.

[^26]: *Id.* at 2-5. Leap also requests that the Commission create more
    MSA/RSA licenses from the Lower 700 MHz spectrum. *Id.* The
    Commission decided on a band plan for the Lower 700 MHz band in the
    *Lower 700 MHz Report & Order*. *See* *Lower 700 MHz Report & Order*
    ¶¶ at 7-36. Because this issue has been addressed by the Commission
    and was not an issue on which the Bureau sought comment, we will not
    address it in this public notice.

[^27]: Comments of Paxson at 7; *see also* Reply Comments of Paxson at
    3-5.

[^28]: *Id.* at 8-9.

[^29]: Reply Comments of Paxson at 3-5

[^30]: Comments of Spectrum Exchange/Allen at 5-7; see also Reply
    Comments of Spectrum Exchange/Allen at 1-2.

[^31]: Reply Comments of Spectrum Alliance at 1-2.

[^32]: Reply Comments of Entravision at 1-2.

[^33]: Comments of US Cellular at 2.

[^34]: *Id.*

[^35]: Comments of TCA at 2; *see also* Comments of RTG at 2-3, and
    Reply Comments of the NTCA at 1-2.

[^36]: *Lower 700 MHz Report & Order* at ¶ 173.

[^37]: *Id.* at ¶ 95.

[^38]: *Lower 700 MHz Report & Order* at ¶ 174.

[^39]: *Part 1 Fifth Report and Order.* The Commission has further
    amended Section 1.2105 of the Competitive Bidding Rules. *See* In
    the Matter of Amendment of Part 1 of the Commission's
    Rules\--Competitive Bidding Procedures, *Seventh Report and Order*,
    16 FCC Rcd 17546, 17555, ¶ 17 (2001) ("*Part 1* *Seventh Report and
    Order*"). *See infra* note 49. On February 8, 2002, the Commission
    further amended Section 1.2110 of the Competitive Bidding Rules.
    Amendment of Part 1 of the Commission's Rules -- Competitive Bidding
    Procedures, *Eighth Report and Order*, FCC 02-34 (rel. February 13,
    2002). These further amendments do not take effect until 30 days
    after publication in the Federal Register.

[^40]: *See* Reallocation and Service Rules for the 698-746 MHz Spectrum
    Band (Television Channels 52-59) GN Docket No. 01-74, *Notice of
    Proposed Rule Making*, FCC 01-91 ("*Lower 700 MHz NPRM*") (rel.
    March 28, 2001).

[^41]: *See* note 1 *supra*.

[^42]: *See* *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15297-98, ¶¶
    7-8; *see also* 47 C.F.R. § 1.2105.

[^43]: *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 ¶ 11 (1998) ("*Nevada
    Wireless*"*)*.

[^44]: *See id*., at 11978.

[^45]: *See* Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules, *Public Notice*, DA 95-2244 , 11 FCC
    Rcd 9645 (1995).

[^46]: *See* 47 C.F.R. § 1.2105(c).

[^47]: *See* Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules, *Public Notice*, 11 FCC Rcd 9645
    (1995).

[^48]: *See* 47 C.F.R. § 1.65.

[^49]: 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. *Part 1* *Seventh Report and Order*,
    16 FCC Rcd at 17555, ¶ 17.

[^50]: 47 C.F.R. § 27.60 (co- and adjacent-channel interference
    protection to analog TV and DTV facilities).

[^51]: *Lower 700 MHz Report and Order*, 17 FCC Rcd at 1121, Appendix D.

[^52]: 47 C.F.R. § 27.50(c)(5).

[^53]: A Due Diligence Announcement that includes a listing of some of
    the pending matters that may relate to the 698- 746 MHz band will be
    released shortly. The Bureau does not represent that this list will
    include all pending matters that may relate to the 698-746 MHz band.

[^54]: *Lower 700 MHz Report and Order,* 17 FCC Rcd at 1045-47 ¶¶ 52-57;
    47 C.F.R. § 27.60(a).

[^55]: *Lower 700 MHz Report and Order,* 17 FCC Rcd at 1033 n. 73.
    Because broadcast operations will exist in the core TV spectrum (on
    and below Channels 51), which is sub-adjacent to the Lower 700 MHz
    band, adjacent-channel and other interference protections may apply
    beyond the end of the DTV transition period.

[^56]: *Id.* at 1039 ¶ 39.

[^57]: *Id.* at 1039 ¶ 39 and n. 111.

[^58]: *Id.* at 1034 ¶ 24.

[^59]: *Id.* at 1094-95 ¶¶ 182-184.

[^60]: The Commission initially stated that it would "consider specific
    regulatory requests needed to implement voluntary agreements"
    between incumbent broadcasters and new licensees to clear the Upper
    700 MHz Band early, if consistent with public interest. *See*
    Service Rules for the 746-764 and 776-794 MHz Bands, and Revisions
    to Part 27 of the Commission's Rules, WT Docket No. 99-168, *Upper
    700 MHz First Report and Order*, 15 FCC Rcd 476 (2000) ("*Upper 700
    MHz First Report and Order")*. Subsequently, the Commission
    established a rebuttable presumption favoring the grant of requests
    that would both result in certain specific benefits and avoid
    specific detriments. *See* Service Rules for the 746-764 and 776-794
    MHz Bands, and Revisions to Part 27 of the Commission's Rules, WT
    Docket No. 99-168, *Memorandum Opinion and Order and Further Notice
    of Proposed Rulemaking*, 15 FCC Rcd 20845 at 20870-71 ¶ 61 (2000)
    ("*Upper 700 MHz MO&O and FNPRM").* These policies were later
    extended to "three-way" band clearing arrangements, in which
    non-Channel 59-69 broadcasters were also potential parties. *See*
    Service Rules for the 746-764 and 776-794 MHz Bands, and Revisions
    to Part 27 of the Commission's Rules, WT Docket No. 99-168, Carriage
    of the Transmissions of Digital Broadcast Stations, CS Docket No.
    98-120, Review of the Commission's Rules and Policies Affecting the
    Conversion to Digital Television, MM Docket No. 00-39, *Third Report
    and Order*, 16 FCC Rcd 2703, 2718 at ¶ 36 (2001) ("*Upper 700 MHz
    Third Report and Order").* Subsequently, the Commission provided
    certain additional flexibility to facilitate voluntary agreements
    for early clearing and granted a request for relief from two
    specific DTV-related requirements. *See* Service Rules for the
    746-764 and 776-794 MHz Bands, and Revisions to Part 27 of the
    Commission's Rules, WT Docket No. 99-168, Carriage of the
    Transmissions of Digital Broadcast Stations, CS Docket No. 98-120,
    Review of the Commission's Rules and Policies Affecting the
    Conversion to Digital Television, MM Docket No. 00-39, *Order on
    Reconsideration of the* *Third Report and Order*, 16 FCC Rcd 21633
    (2001). The fundamentals of this policy were extended to the Lower
    700 MHz in the *Lower 700 MHz Report and Order*. *See Lower 700 MHz
    Report and Order*, 17 FCC Rcd at 1094 n. 537 and 1095 ¶ 184.

[^61]: *Lower 700 MHz Report and Order*, 17 FCC Rcd at 1095 ¶ 184.

[^62]: *Id.* at 1096 n. 549.

[^63]: *Id.*

[^64]: A Letter of Understanding ("LOU") with Canada recognized U.S.
    plans to use this band for other than broadcasting services, and
    notes that Canada is independently considering a reduction of the
    spectrum in this band allocated to television. This LOU also
    specifically provides for non-broadcast allocations and services in
    the 746-806 MHz bands (Channels 60-69) by establishing criteria to
    protect DTV stations and analog TV stations established in
    accordance with the existing TV Agreement (Nov. 3, 1993 -- Jan. 5,
    1994). The FCC and Mexico's Secretariat of Communications and
    Transportation have signed a Memorandum of Understanding ("MOU")
    that establishes procedures for implementing digital television
    (DTV) service along the United States/Mexico border and approves all
    five DTV stations in the U.S./Mexico border area slated to begin
    service in November 1998 and May 1999. The MOU, which covers DTV
    operations in the area extending 275 kilometers on either side of
    the U.S./Mexico common border, contains the following provisions: a
    list of mutually acceptable second channel DTV allotments for each
    country; procedures to be used for notifying each administration of
    plans to implement DTV service relative to an allotment; and the
    methods to be used by each administration in evaluating the
    acceptability of proposed DTV facilities.

[^65]: Agreements affecting the use of this band between the United
    States, Canada and Mexico may be referenced on the internet at
    http://www.fcc.gov/ib/pnd/agree/.

[^66]: *See* 47 C.F.R. § 27.60; *See also* Section I.B.3 of this Public
    Notice.

[^67]: *See* 47 C.F.R. § 1.2105.

[^68]: *See* 47 C.F.R. Ch. 1, Subpart I.

[^69]: *See* 47 C.F.R. §§ 1.1305-1.1319.

[^70]: Although the Bureau did not seek comment on the issue, several
    commenters stated their opposition to any delay of Auction No. 44.
    *See* Reply Comments of the Rural 700 MHz Group at 1-2; Reply
    Comments of RTG at 1-2; Reply Comments of TCA at 4-5, Reply Comments
    of Norwell at 1-2; *see also* Reply Comments of Paxson at 6 where it
    opposes US Cellular's proposal to delay both auctions. US Cellular
    favored postponement of Auction No. 44 to permit development of band
    clearing agreements. *See* Comments of US Cellular at 2. Leap
    Wireless suggests that Auction No. 44 not be held until the status
    of Auction No. 35 is resolved. *See* Reply Comments of Leap at 6.
    Spectrum Exchange/Allen recommends that Auction No. 44 be delayed at
    least until September 2002. *See* Comments of Spectrum
    Exchange/Allen at 5. As noted above, Auction No. 44 is scheduled to
    begin concurrently with Auction No. 31 on June 19, 2002, as
    previously announced.

[^71]: As previously stated, Metropolitan Statistical Areas (MSAs) and
    Rural Service Areas (RSAs) are collectively known as Cellular Market
    Areas (CMAs).

[^72]: 47 C.F.R. § 1.2105 requires the disclosure on the short-form of
    the applicant's ownership information as set forth in 47 C.F.R. §
    1.2112. Note that both of these sections were revised in the *Part 1
    Fifth Report and Order*.

[^73]: *See* 47 C.F.R. §§ 1.2105(a)(2)(viii), (c)(1).

[^74]: *See* 47 C.F.R*.* § 1.2105(a)(2)(ix).

[^75]: *See* Section I.B.2, above.

[^76]: *See* 47 C.F.R. § 1.2105(c)(4)(i), (ii).

[^77]: Reiter/McBride and McBride state that the Commission should
    revisit its definition of very small businesses. Comments of
    Reiter/McBride at 2; Reply Comments of McBride at 2. The Commission
    adopted small business definitions for licenses in the Lower 700 MHz
    band in the *Lower 700 MHz Report & Order* at ¶¶ 169-179, and
    therefore the Bureau did not seek comment on this issue. Because
    this issue has been addressed by the Commission, we will not address
    it in this public notice.

[^78]: *See* 47 C.F.R. §§ 1.2110(f), 27.702

[^79]: *Id.*

[^80]: *Id.*

[^81]: A substantial portion of the comments filed by Reiter/McBride and
    McBride are devoted to criticism of the attribution rules as applied
    in Auction No. 35. (*see* note 6)

[^82]: The eligibility for small business preferences will be determined
    based on the attribution rules in effect at the short-form
    application deadline. *See* *Part 1 Fifth Report and Order*, 15 FCC
    Rcd at 15327, ¶ 67.

[^83]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15330, ¶ 78.

[^84]: *See* Amendment of Part 1 of 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, *Third Report and Order and Second Further Notice
    of Proposed Rule Making*, 13 FCC Rcd 374, 382, ¶ 5 (1997) ("*Part 1
    Third Report and Order*"); *Part 1 Fifth Report and Order,*15 FCC
    Rcd at 15330, ¶ 78.

[^85]: For further guidance on the issue of *de facto* control, see the
    Commission's affiliation rule at 47 C.F.R. § 1.2110(b)(5); *see
    also* Ellis Thompson Corp., *Summary Decision of Administrative Law
    Judge Joseph Chachkin*, 10 FCC Rcd. 12554, 12555-56 (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, 12 FCC 2d. 559 (1963), and Application of Baker Creek
    Communications, L.P., for Authority to Construct and Operate Local
    Multipoint Distribution Services in Multiple Basic Trading Areas,
    *Memorandum Opinion and Order*, 13 FCC Rcd. 18709 (1998).

[^86]: *See* 47 C.F.R. § 1.2105.

[^87]: 47 C.F.R. § 1.2105(a)(2)(x).

[^88]: 47 C.F.R. § 1.2105(a)(2)(xi).

[^89]: 47 C.F.R. § 1.2106(a).

[^90]: *See* 47 C.F.R. § 1.2105(a).

[^91]: *See* 47 C.F.R. § 1.2105; *see also* Two Way Radio of Carolina,
    Inc., *Memorandum, Opinion and Order*, 14 FCC Rcd. 12035 (1999).

[^92]: 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) ("*Part 1 Order"*).

[^93]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15316-17, ¶¶
    40-42; 47 C.F.R. § 1.2106(a); *see* 47 C.F.R. §§1.2105(a)(2)(xi)

[^94]: *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15316-17, ¶¶
    40-42.

[^95]: *Auction No. 44 Comment Public Notice* at 3.

[^96]: *Id*.

[^97]: All population figures are from the 4/1/90 U.S. Census, U.S.
    Department of Commerce, Bureau of the Census.

[^98]: Results below \$10,000 are rounded to the nearest hundred;
    results above \$10,000 are rounded to the nearest thousand.

[^99]: Comments of the Rural 700 MHz Group at 4.

[^100]: *Auction No. 44 Comment Public Notice* at 3.

[^101]: Comments of US Cellular at 1-2.

[^102]: Comments of Spectrum Exchange/Allen at 5-6.

[^103]: Reply Comments of McBride at 3.

[^104]: Reply Comments of Leap at 2.

[^105]: *Id.*

[^106]: *Auction No. 44 Comment Public Notice* at 3.

[^107]: *Auction No. 44 Comment Public Notice* at 4.

[^108]: *Id*. at 4.

[^109]: *Id*. at 5.

[^110]: *Id*. at 10.

[^111]: *Id.* at 10.

[^112]: Reply Comments of Leap at 8.

[^113]: Comments of the Rural 700 MHz Group at 5-6*; see also* Reply
    Comments of the Rural 700 MHz Group at 6.

[^114]: *Auction No. 44 Comment Public Notice* at 5.

[^115]: *See* Balanced Budget Act, section 3002(a), 47 U.S.C. §
    309(j)(4)(F).

[^116]: *See* *Part 1 Third Report and Order*, 13 FCC Rcd 374, 455-456 ¶
    141 (1997)*.*

[^117]: *Id*.

[^118]: *Id*.

[^119]: *Auction No. 44 Comment Public Notice* at 6.

[^120]: All population figures are from the 4/1/90 U.S. Census, U.S.
    Department of Commerce, Bureau of the Census.

[^121]: Results below \$10,000 are rounded to the nearest hundred;
    results above \$10,000 are rounded to the nearest thousand.

[^122]: *Auction 44 Comment Public Notice* at 6-7.

[^123]: Comments of the Rural 700 MHz Group at 3-4; Comments of TCA at
    3-4; *see also* Reply Comments of McBride at 2; Reply Comments of
    Council Tree at 2-3; Reply Comments of Leap at 7; Reply Comments of
    NTCA at 2-3.

[^124]: Comments of the Rural 700 MHz Group at 3.

[^125]: Reply Comments of NTCA at 2-3.

[^126]: Reply Comments of Leap at 7.

[^127]: Comments of the Rural 700 MHz Group at 3.

[^128]: Reply Comments of Council Tree at 2.

[^129]: Comments of TCA at 4.

[^130]: Reply Comments of Council Tree at 4.

[^131]: Reply Comments of NTCA at 2.

[^132]: *Lower 700 MHz Report & Order* at ¶¶ 171-173.

[^133]: *Auction No. 44 Comment Public Notice* at 7-9.

[^134]: *Id*.

[^135]: Comments of the Rural 700 MHz Group at 4.

[^136]: Comments of TCA at 5.

[^137]: Reply Comments of NTCA at 3.

[^138]: *Auction No. 44 Comment Public Notice* at 7-9.

[^139]: Bidders must have sufficient eligibility to place a bid on the
    particular license. *See* Section III.D.3 "Amount of Upfront
    Payment," *infra*.

[^140]: The product of the minimum opening bid times one plus the
    minimum percentage increment is rounded to the nearest thousand if
    it is over ten thousand, to the nearest hundred if it is under ten
    thousand but over one thousand, or to the nearest ten if it is below
    one thousand.

[^141]: *See* Section IV.B.6 "Bid Removal and Bid Withdrawal," *infra*.

[^142]: *Auction No. 44 Comment Public Notice* at 9.

[^143]: The Bureau retains the discretion to lower the minimum
    acceptable bid on such licenses in the next round or in later
    rounds.

[^144]: *See* 47 C.F.R. §§ 1.2104(g), 1.2109.

[^145]: *See* *Part 1 Fifth Report and Order*, 15 FCC Rcd at 15302, ¶
    15; 47 C.F.R. § 1.2104(g)(1).

[^146]: *See Part 1 Fifth Report and Order*, 15 FCC Rcd at 15302, ¶ 15.

[^147]: In the Matter of Qualcomm Incorporated Petition for Declaratory
    Ruling Giving Effect to the Mandate of the District of Columbia
    Circuit Court of Appeals, *Order*, 16 FCC Rcd 4042 (2000).

[^148]: *See* Supplement to Public Notice Released August 22, 2001 By
    Wireless Telecommunications Bureau Announcing It Is Prepared to
    Grant Four C and F Block Broadband Personal Communications Services
    (PCS) Licenses Upon Full and Timely Payment, Auction Event No. 35,
    DA 01-2071, *Public Notice*, 16 FCC Rcd 16,025 (2001). All of the
    terms and conditions applicable to Qualcomm's use of the ADV shall
    apply to its use by a transferee, except that a transferee may not
    transfer the ADV to an entity other than back to Qualcomm. *See* In
    the Matter of Qualcomm Incorporated Petition for Declaratory Ruling
    Giving Effect to the Mandate of the District of Columbia Circuit
    Court of Appeals, *Order*, 16 FCC Rcd 4042 (2000); *see also* Letter
    from Thomas J. Sugrue, Chief, Wireless Telecommunications Bureau,
    Federal Communications Commission, to Veronica M. Ahern, Attorney
    for Qualcomm Incorporated (December 22, 2000).

[^149]: *See* Extending Wireless Telecommunications Services to Tribal
    Lands, WT Docket No. 99-266, *Report and Order and Further Notice of
    Proposed Rule Making*, 15 FCC Rcd 11794 (2000); Wireless
    Telecommunications Bureau Announces Availability of Bidding Credits
    For Providing Wireless Services To Qualifying Tribal Lands, *Public
    Notice*, 15 FCC Rcd 18351 (2000); Wireless Telecommunications Bureau
    Releases Additional Information Regarding the Procedures for
    Obtaining a Tribal Lands Bidding Credit and List of Tribal Lands,
    *Public Notice*, DA 00-2836, (rel. December 14, 2000); Wireless
    Telecommunications Bureau Announces Enhancements to the Universal
    Licensing System to Help Winning Bidders of FCC Auctions File for
    Tribal Land Bidding Credits, *Public Notice*, DA 01-613, (rel. March
    8, 2001).