**DA 05-51**

**January 11, 2005**

**BROADBAND PCS SPECTRUM AUCTION**

**35 Bidders Qualified to Participate in Auction No. 58**

**Report No. AUC-05-58-G (Auction No. 58)**

In this Public Notice*,* the Wireless Telecommunications Bureau
("Bureau") identifies 35 applicants found to be qualified to bid in the
upcoming auction for 242 broadband Personal Communication Service (PCS)
licenses ("Auction No. 58"). Auction No. 58 is scheduled to begin on
Wednesday, January 26, 2005. In addition, this Public Notice contains
bidding instructions and other important information regarding Auction
No. 58.

**Attachment A** lists each of the 35 qualified bidders, their upfront
payments, and their maximum eligibility in bidding units.

**Attachment B** lists the licenses selected on each qualified bidder's
FCC Form 175 (short-form) application.

**Attachment C** lists those entities that submitted a short-form
application but did not qualify to bid in this auction. Such entities
are reminded that they remain subject to the Commission's rules
prohibiting collusion in Commission auctions notwithstanding that they
did not qualify to bid in this auction.[^1]

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

**Attachment E** provides information on how to monitor the auction
online and instructions for reviewing and downloading round results, as
well as other material related to Auction No. 58, that will be released
by the Commission during the course of the auction.

In order to participate effectively in the auction, qualified bidders
should again familiarize themselves with the auction rules, procedures,
and other information contained in the *Auction No. 58 Procedures Public
Notice*[^2] and subsequent public notices. These public notices and
other documents related to Auction No. 58 are available on the
Commission's auctions website at <http://wireless.fcc.gov/auctions/>.
The following information provides additional guidance.

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

-   Bidder Identification Number

-   At least two SecurID cards

-   Automated Auction System Bidder's Guide

-   FCC Telephonic Bidding phone number

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

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

Any qualified bidder listed in Attachment A of this Public Notice that
has not received both registration mailings **by noon on Wednesday,
January 19, 2005**, must contact the Auctions Hotline directly at (717)
338-2888. Receipt of both registration mailings is critical to
participating in both the mock auction and the actual auction event, and
it is the responsibility of each qualified bidder to ensure that all
registration information has been received.

**Registration Material Replacement.** In the event that a bidder's
identification numbers or SecurID cards are lost, only a person who has
been designated as an authorized bidder, the contact person, or the
certifying official on the applicant's short-form application may
request replacement registration material. Qualified bidders requiring
the replacement of these items must first call Technical Support at
1-877-480-3201 option 9, (202) 414-1250, or (202) 414-1255 (TTY). After
the qualified bidder has notified Technical Support, the designated
official of the qualified bidder must appear **in person** at the FCC
headquarters (445 12^th^ Street, SW, Washington, DC) with two forms of
identification, one of which must be a photo identification, to receive
replacement materials.

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

**Bidding.** The Commission will conduct this auction over the Internet,
and telephonic bidding will be available as well. As a contingency plan,
bidders may also dial in to the FCC Wide Area Network.

Qualified bidders are permitted to bid telephonically or electronically.
In either case, **each authorized bidder** must have its own Remote
Security Access SecurID card, which the FCC will provide at no charge.
Applicants with only 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
instructions for using them are only mailed to the contact person at the
contact address listed on the applicant's short-form application. Please
note that each SecurID card is tailored to a specific auction. SecurID
cards issued for other auctions or obtained from a source other than the
FCC will not work for Auction No. 58. The telephonic bidding phone
number will be supplied in the first mailing along with the confidential
bidder identification number.

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

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

In their registration materials, all qualified bidders will be supplied
with a telephone number for telephonic bidding. Bidders choosing to bid
telephonically are required to use this telephone number to place bids.
Electronic bidders may use this telephone number as an alternate method
of bidding in the event they are unable to submit their bids
electronically. **Telephonic bidders are reminded to allow sufficient
time to bid by placing their calls well in advance of the close of a
round.**[^3]

**Minimum Opening Bids.** There will be a minimum opening bid for each
license in Auction No. 58, calculated in accordance with the formulas
previously announced.[^4] The minimum opening bid amount is subject to
reduction at the discretion of the Commission. The Commission will not
entertain requests to lower minimum opening bids. The agency will
exercise its discretion, if at all, independent of any communications
from bidders.

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

**Bidding Schedule.** The bidding schedule for Wednesday, January 26,
2005, and continuing until further notice, will be:

[]{.mark}

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

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

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

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

Round results will be provided approximately 10 minutes after the close
of each round. The Commission will set the pace of the auction based
upon its monitoring of the bidding and its assessment of the auction's
progress. All subsequent schedule changes will be made by announcement
via the FCC Automated Auction System during the course of the auction.

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

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

The FCC Automated Auction System includes a function for bidders to
submit suggestions to the FCC, but this is **not** an appropriate
mechanism for asking questions that may need a timely response, such as
questions about auction procedures or other issues. **Such questions
should be asked via one of the above telephone options.**

**Monitoring Round Results.** Attachment E of this Public Notice ("How
to Monitor the FCC Auctions On-Line") provides instructions for
reviewing and downloading round results, as well as other material
related to Auction No. 58, that will be released by the Commission
during the course of the auction.

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

The ATT version specifically designed for Auction No. 58 is available
for downloading and should be used for both the mock auction and the
actual auction. The ATT is located at the auctions web site,
<http://wireless.fcc.gov/auctions/>. From the options on the left,
select **Tracking Tools**.

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

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

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

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-   Microsoft Excel 97 or higher

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-   The FCC simultaneous multiple-round auction format

**Amendments to FCC Form 175.** Applicants are responsible for
maintaining the accuracy and completeness of information furnished in
their short-form applications, including their exhibits.[^5] Applicants
should amend their short-form applications within ten business days from
the occurrence of a reportable change. Applicants should make
modifications to their FCC Form 175 electronically and submit a letter,
briefly summarizing the changes, by email to the attention of Margaret
Wiener, Chief, Auctions and Spectrum Access Division, at the following
address: [auction58@fcc.gov](mailto:auction50@fcc.gov). Questions about
changes should be directed to Audrey Bashkin or Scott Mackoul at (202)
418-0660.

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

**Due Diligence.** Potential bidders are reminded that they are solely
responsible for investigating and evaluating all technical and
marketplace factors that may have a bearing on the value of the licenses
being offered in this auction. The Commission makes no representations
or warranties about the use of this spectrum for particular services.
Potential bidders are strongly encouraged to conduct their own research
prior to Auction No. 58 in order to determine the existence of pending
proceedings that might affect their decisions regarding participation in
the auction. Participants in Auction No. 58 are strongly encouraged to
continue such research during the auction. For further details regarding
due diligence, qualified bidders should refer to the *Auction No. 58
Procedures Public Notice* under Section I.B.3.[^8]

**Mock Auction.** On Friday, January 21, 2005, the Bureau will conduct a
mock auction which will allow qualified bidders to familiarize
themselves with the FCC Automated Auction System. Only qualified bidders
will be permitted to participate in the mock auction. The Bureau will
conduct this auction over the Internet, but telephonic bidding will also
be available. As a contingency plan, bidders may dial in to the FCC Wide
Area Network. Qualified bidders that wish to place bids telephonically
should use the telephone number supplied in the Auction No. 58
registration materials.

**The mock auction will be identified as "Auction No. 74"** and will
follow the rules governing the actual auction, **except for licenses
available and bidders' initial bidding eligibility**. The mock auction
will include **only the first 50 licenses** shown on Attachment A of the
*Auction No. 58 Procedures Public Notice*. Bidders with entrepreneur
status will be permitted to place bids on any of the 50 licenses,[^9]
while bidders without entrepreneur status will not be able to place bids
on those of the 50 licenses that are available only to entrepreneurs in
closed bidding.[^10] **The program will also reflect that each bidder
submitted an upfront payment of \$10,904,000.00, which will determine
each bidder's initial (maximum) bidding eligibility of 10,904,000
bidding units.** The mock auction will simulate the start of the
auction, and each bidder will be required to be active on 80 percent of
its current bidding eligibility. If a bidder does not meet this
requirement, it will have a waiver automatically applied (if the bidder
has any waivers available), or its current eligibility will be
permanently reduced (if the bidder has no waivers remaining), possibly
eliminating the bidder from further bidding in the auction.

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

The mock auction bidding schedule for Friday, January 21, 2005, will be:

Round 1 Bidding Period 9:00 a.m. - 10:00 a.m. ET

Round 2 Bidding Period 11:00 a.m. - 12:00 p.m. ET

Round 3 Bidding Period 1:00 p.m. - 1:30 p.m. ET

Round 4 Bidding Period 2:00 p.m. - 2:30 p.m. ET

Round 5 Bidding Period 3:00 p.m. - 3:15 p.m. ET

Round 6 Bidding Period 4:00 p.m. - 4:15 p.m. ET

**Prohibition of Collusion.** Applicants are reminded that Section
1.2105(c) of the Commission's rules prohibits applicants for licenses in
any of the same geographic areas from communicating with each other
during the auction about bids, bidding strategies, or settlements unless
they have identified each other as parties with which they have entered
into agreements under Section 1.2105(a)(2)(viii).[^11] For Auction No.
58, this prohibition became effective at the short-form application
filing deadline on Tuesday, November 30, 2004, and will end on the
post-auction down payment deadline, which will be announced in a future
public notice.[^12] **This prohibition applies to all applicants
regardless of whether such applicants became qualified bidders or
actually bid.**[^13] For purposes of this prohibition, Section
1.2105(c)(7)(i) defines "applicant" to include all controlling interests
in the entity submitting a short-form application to participate in the
auction, as well as all holders of partnership and other ownership
interests and any stock interest amounting to 10 percent or more of the
entity, or outstanding stock, or outstanding voting stock of the entity
submitting a short-form application, and all officers and directors of
that entity.[^14] If parties had agreed in principle on all material
terms of a bidding agreement(s), those parties must have been identified
on the short-form application under Section 1.2105(c), even if the
agreement had not been reduced to writing. If parties had not agreed in
principle by the filing deadline, an applicant should not have included
the names of those parties on its application and must not have
continued negotiations.[^15]

The Bureau has encouraged applicants competing for licenses in any of
the same geographic license areas not to use the same individual as an
authorized bidder.[^16] 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 take precautionary steps to
prevent communication between authorized bidders.[^17]

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.[^18] Thus, Section 1.65 requires auction applicants
that engage in communications of bids or bidding strategies that result
in a bidding agreement, arrangement, or understanding not already
identified on their short-form applications to promptly disclose any
such agreement, arrangement or understanding to the Commission by
amending their pending applications. In addition, Section 1.2105(c)(6)
requires all auction applicants to report prohibited discussions or
disclosures regarding bids or bidding strategy to the Commission in
writing immediately but in no case later than five business days after
the communication occurs, even if the communication does not result in
an agreement or understanding regarding bids or bidding strategy that
must be reported under Section 1.65.[^19]

Applicants that are winning bidders will be required to disclose in
their long-form applications the specific terms, conditions, and parties
involved in all bidding consortia, joint ventures, partnerships, and
other arrangements entered into relating to the competitive bidding
process.[^20] Any applicant found to have violated the anti-collusion
rule may be subject to sanctions.[^21] In addition, applicants are
reminded that they are subject to the antitrust laws, which are designed
to prevent anti-competitive behavior in the marketplace. If an applicant
is found to have violated the antitrust laws in connection with its
participation in the competitive bidding process, it may be subject to
forfeiture of its upfront payment, down payment, or full bid amount and
may be prohibited from participating in future auctions.[^22]

**Submission of Auction No. 58-related Filings:** As noted above,
applicants seeking to amend their short-form applications during the
auction should make modifications to their FCC Form 175 electronically
and submit a letter, briefly summarizing the changes, by email to the
attention of Margaret Wiener, Chief, Auctions and Spectrum Access
Division, at the following address:
[auction58@fcc.gov](mailto:auction50@fcc.gov).

Parties wishing to submit requests, complaints, or other information
concerning Auction No. 58 should also send a copy by email to the
attention of Margaret Wiener, Chief, Auctions and Spectrum Access
Division, at the following address:
[auction58@fcc.gov](mailto:auction50@fcc.gov), in addition to following
other procedures prescribed by the Commission's rules. The Commission
occasionally receives complaints regarding certain bidders and requests
to suspend bidding during an auction. While the Commission reserves the
right to take appropriate action during an auction, to preserve the
integrity of the auction process, it is generally our practice to
address any such allegations only after the winning bidders have
submitted their long-form applications, when there is greater
opportunity for investigation of such allegations, if warranted.

Finally, parties wishing to make suggestions concerning Auction No. 58
or future auctions are encouraged to present such ideas using the
suggestion feature of the FCC Automated Auction System. (As mentioned
above, this feature is not an appropriate mechanism for posing questions
that need a timely response.) Commission staff always takes suggestions
into consideration, but may not provide an individualized response.

**Long-Form Applications.** Applicants that claim entrepreneur
eligibility or eligibility to receive a small or very small business
bidding credit should be aware that, following the auction, they will be
subject to more extensive reporting requirements contained in the
Commission's Part 1 ownership disclosure rule.[^23] In addition,
applicants with foreign ownership interests will be required to comply
with 47 U.S.C. § 310(b) at the long-form application stage.

For additional information regarding this Public Notice, please contact
the following staff in the Auctions and Spectrum Access Division:

> For general auction questions: Jeff Crooks at (202) 418-0660 or Lisa
> Stover at (717) 338-2888
>
> For legal questions: Audrey Bashkin or Scott Mackoul at (202) 418-0660

For technical questions about software or hardware, please contact FCC
Technical Support at 1-877-480-3201 option 9, (202) 414-1250, or (202)
414-1255 (TTY).

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

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

[^1]: *See* 47 C.F.R. § 1.2105(c); *infra*, pp. 5-7.

[^2]: "Broadband PCS Spectrum Auction Scheduled for January 12, 2005,
    Notice and Filing Requirements, Minimum Opening Bids, Upfront
    Payments, and Other Auction Procedures for Auction No. 58," *Public
    Notice,* 19 FCC Rcd. 18190 (WTB 2004) ("*Auction No. 58 Procedures
    Public Notice"*).

[^3]: The length of a call to place a telephonic bid may vary; please
    allow a minimum of 10 minutes.

[^4]: *Auction No. 58 Procedures Public Notice*, 19 FCC Rcd at 18220-22.
    Attachment A of the *Auction No. 58 Public Notice* sets forth the
    minimum opening bids for each license offered in Auction No. 58.

[^5]: *See* 47 C.F.R § 1.65.

[^6]: *See* 47 C.F.R. § 1.2105(b).

[^7]: *Id*.

[^8]: *Auction No. 58 Public Notice*, 19 FCC Rcd at 18199-200.

[^9]: Bidders must have sufficient bidding eligibility to place a bid on
    a given license.

[^10]: Attachment A of the *Auction No. 58 Procedures Public Notice*
    lists the licenses that are available only to entrepreneurs in
    closed bidding as "Closed." The other licenses are listed as "Open"
    or "n/a."

[^11]: 47 C.F.R. § 1.2105(a)(2)(viii); 47 C.F.R. § 1.2105(c)(1). *See
    also* Amendment of Part 1 of the Commission's Rules -- Competitive
    Bidding Procedures, *Seventh Report and Order*, 16 FCC Rcd 17546
    (2001) ("*Part 1* *Seventh Report and Order*"); Amendment of Part of
    the Commission's -- Competitive Bidding Procedures, *Order on
    Reconsideration of the Third Report and Order, Fifth Report and
    Order, and Fourth Further Notice of Proposed Rule Making*, 15 FCC
    Rcd 15293, 15297-98 ¶¶ 7-8 (2000).

[^12]: 47 C.F.R. § 1.2105(c)(1).

[^13]: *See, e.g.*, Letter to Robert Pettit, Esquire, from Margaret W.
    Wiener, Chief, Auctions and Industry Analysis Division, Wireless
    Telecommunications Bureau, Federal Communications Commission, 16 FCC
    Rcd 10080 (WTB 2000) (declining to except an applicant's controlling
    interest from coverage by the anti-collusion rule, even though the
    applicant never made an upfront payment for the auction and was not
    listed as a qualified bidder); Star Wireless, LLC, *Forfeiture
    Order*, 19 FCC Rcd 18626 (EB 2004) (imposing forfeiture in the
    amount of \$100,000 for violation of the anti-collusion rule);
    Northeast Communications of Wisconsin, LLC, *Forfeiture Order*, 19
    FCC Rcd 18635 (EB 2004) (imposing forfeiture in the amount of
    \$100,000 for violation of the anti-collusion rule, even though the
    applicant never made an upfront payment for the auction and was not
    listed as a qualified bidder).

[^14]: 47 C.F.R. § 1.2105(c)(7)(i).

[^15]: *See* "Wireless Telecommunications Bureau Clarifies Spectrum
    Auction Anti-Collusion Rules," *Public Notice*, 11 FCC Rcd 9645 (WTB
    1995).

[^16]: *See Auction No. 58 Procedures Public Notice,* 19 FCC Rcd. at
    18197-99.

[^17]: *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).

[^18]: 47 C.F.R. § 1.65.

[^19]: 47 C.F.R. §§ 1.65, 1.2105(c)(6); *see also Part 1* *Seventh
    Report and Order*, 16 FCC Rcd at 17555 ¶ 17.

[^20]: *See* 47 C.F.R. § 1.2107(d).

[^21]: *See* 47 C.F.R. §§ 1.2105(c), 1.2107(d), and 1.2109(d).

[^22]: *See* 47 C.F.R. § 1.2109(d).

[^23]: *See* 47 C.F.R. § 1.2112(b)(2).