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

**FEDERAL COMMUNICATIONS COMMISSION** News Media Information: (202)
418-0500

**445 12th STREET, S.W.** Fax-On-Demand: (202) 418-2830

# WASHINGTON, D.C. 20554 Internet: [http://www.fcc.gov](http://www.fcc.gov/)

# ftp.fcc.gov

#######  DA 01-1177

####### May 11, 2001

#### AUCTION OF LICENSES FOR

**VHF PUBLIC COAST AND**

**LOCATION AND MONITORING SERVICE SPECTRUM AUCTION**

###### Status of FCC Form 175 Applications to Participate in the Auction

**Report No. AUC-39-C (Auction No. 39)**

The Federal Communications Commission ("FCC") has received 7 FCC Form
175 applications to participate in Auction No. 39 scheduled to begin on
Wednesday, June 6, 2001, for 16 licenses in the VHF Public Coast
spectrum and 241 licenses in the Location and Monitoring Service ("LMS")
spectrum. The applications have been reviewed for completeness and
compliance with the Commission\'s rules, and have been classified into
the following categories:

**ACCEPTED FOR
FILING\...\...\...\...\...\...\...\...\...\...\...\...\...\...\.... 4
Applications**

**INCOMPLETE\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...
3 Applications**

**Accepted:** Applications accepted for filing are listed alphabetically
in Attachment A. **These applicants will become qualified bidders upon
receipt of the required upfront payment due by 6:00 p.m. ET on Friday,
May 18, 2001.**[^1] With respect to the FCC Form 175 applications, these
applicants need take no further action except as may be necessary to
maintain the accuracy of their applications.[^2] Also, applicants are
advised that Attachment A includes FCC account numbers that were
automatically created by the FCC software system for each applicant, and
which are applicable for bidding only.

**Incomplete:** Applications found to be incomplete are listed
alphabetically in Attachment B. Applicants whose FCC Form 175
applications have been deemed incomplete will receive overnight
correspondence indicating what information is required to make the
applications acceptable for filing. **These applicants may become
qualified bidders only if they: (1) make the required upfront payments
by 6:00 p.m. ET on Friday, May 18, 2001; and (2) resubmit their
applications by 6:00 p.m. ET on Friday, May 18, 2001, to correct the
minor deficiencies indicated.** Applicants must also maintain the
accuracy of their FCC Form 175 applications as required by the
Commission's rules.[^3] In addition, applicants are advised that
Attachment B includes FCC account numbers that were automatically
created by the FCC software system for each applicant. These account
numbers are applicable for bidding purposes only, should the applicant
become eligible to participate in Auction No. 39.

The filing window for resubmitting FCC Form 175 applications is now
open. Corrected applications must be filed no later than **6:00 p.m. ET
on Friday, May 18, 2001.** This will be the only opportunity to cure FCC
Form 175 defects; late resubmissions will not be accepted. In addition,
if an application remains incomplete or otherwise deficient after the
resubmission deadline has passed, the application will be dismissed.

### UPFRONT PAYMENT DEADLINE

Upfront payments and accompanying FCC Remittance Advice (FCC Form 159)
for Auction No. 39 are due at Mellon Bank, Pittsburgh, Pennsylvania,
**no later than 6:00 p.m. ET on Friday, May 18, 2001.** Payments must be
made by wire transfer and applicants must include their Taxpayer
Identification Numbers (TIN). No other payment method is acceptable for
this auction. **Applicants are reminded to use their TIN and not their
FCC Account Numbers on the FCC Remittance Advice (FCC Form 159).**

**Applicants that have filed applications deemed to be incomplete, as
noted in this public notice, must submit timely and sufficient upfront
payments before the Commission will review their resubmitted
applications.** If such an application remains incomplete following its
resubmission, the application will be dismissed. If the applicant has
provided its Taxpayer Identification Number (TIN) and wire transfer
instructions, the upfront payment will be refunded automatically.

**We remind applicants that to avoid untimely upfront payments they
should discuss arrangements (including bank closing schedules) with
their banker several days before making the wire transfer, and allow
sufficient time for the transfer to be initiated and completed before
the deadline.** Detailed information regarding upfront payments
including additional requirements for "former defaulters" can be found
in the *Auction No. 39 Procedural Public Notice*[^4] under Section
III.D.

### OTHER IMPORTANT INFORMATION

**Qualified Bidders:** Approximately one week after the upfront payment
deadline, following Commission review of resubmitted FCC Form 175
applications, and correlation of payments and applications, a public
notice listing all applicants qualified to bid in the auction will be
released. The same public notice will also include instructions on how
to access the auction tracking tool software, a bidding schedule for the
Mock Auction, and the bidding schedule for the first day of the auction.

**Prohibition of Collusion:** Bidders are reminded that Section
1.2105(c) of the Commission\'s Rules prohibits applicants for the same
geographic license area from communicating with each other during the
auction about bids, bidding strategies, or settlements unless they have
identified each other as parties with whom they have entered into
agreements under Section 1.2105(a)(2)(viii). For Auction No. 39, this
prohibition became effective at the filing deadline of short-form
applications on Friday, May 4, 2001, and will end on the post-auction
down payment deadline. The post-auction down payment deadline will be
announced in a future public notice. If parties had agreed in principle
on all material terms, those parties must have been identified on the
short-form application under Section 1.2105(c), even if the agreement
had not been reduced to writing. If parties had not agreed in principle
by the filing deadline, an applicant should not have included the names
of those parties on its application, and must not have continued
negotiations with other applicants for licenses in the same geographic
area.[^5] For further details regarding the prohibition against
collusion refer to the *Auction No. 39 Procedural Public Notice*.[^6]

Winning bidders will be required to disclose in their long-form
applications the specific terms, conditions, and parties involved in all
bidding consortia, joint ventures, partnerships, and other arrangements
entered into relating to the competitive bidding process. Bidders found
to have violated the anti-collusion rule may be subject to
sanctions.[^7] In addition, applicants are reminded that they are
subject to the antitrust laws, which are designed to prevent
anti-competitive behavior in the marketplace. If a bidder is found to
have violated the antitrust laws in connection with its participation in
the competitive bidding process, it may be subject to forfeiture of its
upfront payment, down payment, or full bid amount and may be prohibited
from participating in future auctions.[^8]

## Auction Discount Voucher: On June 8, 2000, the Commission awarded Qualcomm, Inc. a transferable Auction Discount Voucher in the amount of \$125,273,878.00.[^9] This Auction Discount Voucher 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. The Commission has received notice from Qualcomm that it has transferred the Auction Discount Voucher.[^10] The Commission has also received notice from Qualcomm's transferee that it intends to use the full amount of the Auction Discount Voucher to adjust the transferee's winning bids in FCC Auction No. 35.[^11] If Qualcomm or its transferee ultimately does not use the full amount of the Auction Discount Voucher to adjust the transferee's winning bids in Auction No. 35, the Auction Discount Voucher could be used to adjust winning bids in another FCC auction, including Auction No. 39. 

**Ex Parte Rule:** Applicants should also be aware that the Commission
has generally exempted auction proceedings from the strict requirements
of the *ex parte* rule found in Section 1.1208[^12] of the Commission's
rules.[^13]

**Mock Auction:** All applicants found to be qualified bidders are
eligible to participate in a mock electronic auction on **Monday, June
4, 2001**. In the *Qualified Bidders Public Notice*, the Bureau will
announce when software for the mock auction will be posted on the World
Wide Web.

**Remote Bidding Software:** Applicants are reminded that qualified
bidders are eligible to bid either electronically or telephonically. To
bid electronically, applicants must complete the software order form
included in the *Auction No. 39 Procedural Public Notice* or contact the
Auctions Hotline at (717) 338-2888. To ensure timely delivery of remote
bidding software before the auction begins, the Commission requests
receipt of software orders by **6:00 p.m. ET on** **Monday, May 21,
2001**.

The FCC Remote Bidding System requires access to a 900 service telephone
line. The first minute of connection time to the 900 number service is
at no charge, however, \$2.30 will be charged for each additional
minute. The minimum hardware and software specifications required for
the FCC remote bidding system are listed below:

-   CPU: Intel ® Pentium or above

-   RAM: 16 MB (more recommended if you have multiple applications open)

-   Hard Disk: 33 MB available disk space

-   1.44 MB Floppy Drive or CD-ROM Drive (to install the Remote Bidding
    System)

-   Modem: v.32bis 28.8 kbps Hayes© compatible modem (56.6 kbps
    recommended)

-   Monitor: VGA or above

-   Mouse or other pointing device

-   Microsoft® Windows™ 95™ or 98™

-   We recommend that you use Netscape® Communicator™ 4.73. However, you
    can also use Netscape Communicator 4.5, 4.51, 4.61, 4.7, or 4.72.

To download Netscape Communicator 4.73 free of charge, access the
Netscape download site at http://home.netscape.com/download/

**Note:** The FCC Remote Bidding System has not been tested in a
Macintosh, OS/2, or Windows NT™ environment. Therefore, the FCC will not
support operating systems other than Microsoft Windows 95 or 98. This
includes any other emulated Windows environment.

**Long-Form Applications:** All applicants should be aware that at the
long-form application stage, they will be subject to the more extensive
reporting requirements contained in the Commission\'s Part 1 ownership
disclosure rule.[^14]

**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.
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.

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 may also call the FCC Consumer Center at (888)
CALL-FCC ((888) 225-5322).

**\* \* \* \* \***

For questions about payment or instructions for wiring upfront payments,
contact Gail Glasser or Tim Dates, Auctions Accounting Group, at (202)
418-1995.

For specific questions about an applicant\'s incomplete status, the
applicant should contact the staff attorney identified in the
correspondence sent to the applicant by overnight mail.

For additional information, contact: Kenneth Burnley, Auctions Legal
(regarding legal questions) or Lyle Ishida, Analyst, Auctions Operations
(regarding bidding and auction structure) at (202) 418-0660; Linda
Sanderson, Auctions Operations (regarding bidding and general filing
status) at (717) 338-2888.

**- FCC -**

[^1]: ^?^ *See* 47 C.F.R. § 1.2106.

[^2]: ^?^ *See* 47 C.F.R. § 1.65.

[^3]: *Id*.

[^4]: *See* VHF Public Coast and Location and Monitoring Service
    Spectrum Auction Scheduled for June 6, 2001; Notice and Filing
    Requirements for 16 Licenses in the VHF Public Coast and 241
    Licenses in the Location and Monitoring Service Auction; Minimum
    Opening Bids Upfront Payments and Other Procedural Issues, *Public
    Notice*, DA 01-746 (rel. March 26, 2001) ("*Auction No. 39
    Procedural Public Notice*").

[^5]: "Wireless Telecommunications Bureau Clarifies Spectrum Auction
    Anti-Collusion Rules," *Public Notice*, 11 FCC Rcd 9645 (1995).

[^6]: *See* VHF Public Coast and Location and Monitoring Service
    Spectrum Auction Scheduled for June 6, 2001; Notice and Filing
    Requirements for 16 Licenses in the VHF Public Coast and 241
    Licenses in the Location and Monitoring Service Auction; Minimum
    Opening Bids Upfront Payments and Other Procedural Issues, *Public
    Notice*, DA 01-746 (rel. March 26, 2001) ("*Auction No. 39
    Procedural Public Notice*").

[^7]: *See* 47 C.F.R. §§ 1.2105(c), 1.2107(d), and 1.2109(d).

[^8]: *See* 47 C.F.R. §1.2109 (d).

[^9]: *See* Qualcomm Incorporated Petition for Declaratory Ruling Giving
    Effect to the Mandate of the District of Columbia Circuit Court of
    Appeals, *Order*, FCC 00-189 (rel. June 8, 2000).

[^10]: *See* Letter from Kevin J. Kelley, Senior Vice President,
    Qualcomm, Inc., to Auctions Accounting Group, Federal Communications
    Commission (March 9, 2001).

[^11]: *See* Letter from James E. Hoffmann, Senior Vice President,
    General Counsel and Secretary, to Auctions Accounting Group, Federal
    Communications Commission (March 14, 2001).

[^12]: *See* 47 C.F.R. §1.1208.

[^13]: *See* 47 C.F.R. §1.1200(a) note (1); *see also* "Commission
    Announces that Mutually Exclusive 'Short-Form' Applications (Form
    175) to Participate in Competitive Bidding Process ('Auctions') Are
    Treated as Exempt for Ex Parte Purposes," *Public Notice*, 9 FCC Rcd
    6760 (1994).

[^14]: *See* 47 C.F.R. § 1.2112(b).