**PUBLIC NOTICE**![](media/image1.png){width="0.6541666666666667in"
height="0.6604166666666667in"}

**Federal Communications Commission**

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

**Washington, D.C. 20554**

**DA 01-12**

**January 5, 2001**

**AUCTION OF LICENSES IN THE 747-762 AND 777-792 MHz BANDS**

**SCHEDULED FOR MARCH 6, 2001**

MODIFICATIONS TO THE CALCULATION

FOR DETERMINING MINIMUM ACCEPTABLE BIDS AND THE PROVISIONS CONCERNING
"LAST AND BEST BIDS"

**AND OTHER PROCEDURAL ISSUES**

*BIDDER SEMINAR SCHEDULED FOR JANUARY 23, 2001,*

*AND TEST OF PACKAGE BIDDING SYSTEM SET FOR*

***JANUARY 24, 25, AND 26, 2001***

**Report No. AUC-00-31-J (Auction No. 31)**

In this *Public Notice*, the Wireless Telecommunications Bureau
("Bureau") announces two refinements to the package bidding procedures
for Auction No. 31. We adopt our proposal to change part (iii) of the
formula for determining minimum acceptable bids to incorporate a
shortfall allocation. This revision will ensure a reasonable auction
pace and a timely close of the auction. We also adopt our proposal to
change provisions concerning last and best bids to allow a bidder to
submit up to two sets of last and best bids. This is likely to produce a
more efficient assignment of licenses because it permits bidders to
express their valuations more precisely. In addition, the Bureau
highlights for prospective bidders the dates already set forth for the
conduct of Auction No. 31 and recent changes to the Competitive Bidding
Rules.[^1] To further facilitate participation in the first auction that
will allow package bidding as an option, the Bureau has included, in
Attachments A and B to this *Public Notice*, a summary of the provisions
that will govern package bidding in this auction and a chart that
summarizes package bidding activity calculations; respectively. This
*Public Notice* also contains the following additional attachments: (i)
Attachment C, the registration form for participation in the bidders'
seminar; (ii) Attachment D, guidelines for completing FCC Form 175 and
exhibits; (iii) Attachment E, an explanation of electronic filing and
review of FCC Form 175; (iv) Attachment F, instructions for accessing
the FCC network to file FCC Form 175; and (v) Attachment G, FCC Bidding
Preference/Remote Security Access Cards Software Order Form.

On July 3, 2000, the Bureau announced the procedures[^2] for
implementing package bidding for Auction No. 31.[^3] After further
testing and analysis, the Bureau issued *Auction No. 31 Package Bidding
Further Comment Public Notice*[^4] proposing changes to and seeking
comment on the following matters: (i) the calculation for determining
minimum acceptable bids; and (ii) the provisions concerning last and
best bids. In response to the *Auction No. 31 Package Bidding Further
Comment Public Notice*, comments were filed by Verizon Wireless
("Verizon"),[^5] Aleksandar Pekec and Michael H. Rothkopf,[^6] and
Charles R. Plott.[^7] No reply comments were filed.[^8]

# Calculation for Determining Minimum Acceptable Bids

> **[Background]{.underline}**

In the *Auction No. 31 Package Bidding Procedures* *Public Notice,* the
Bureau adopted a three-part formula for determining minimum acceptable
bids.[^9] Specifically, the minimum acceptable bid for any license or
package would be the greater of: (i) the minimum opening bid; (ii) the
bidder's own previous high bid on that package plus x%, where the Bureau
would specify the value of x in each round; and (iii) the number of
bidding units[^10] for the license or package multiplied by the lowest
\$/bidding unit on any provisionally winning package in the last 5
rounds.

In the *Auction No. 31 Package Bidding Further Comment Public Notice*,
we proposed to replace part (iii) of the minimum acceptable bid formula
with the *sum* of a bidder's previous high bid on a license/package and
a share of the increase in revenue needed to tie the provisional
winners.[^11] We defined the *shortfall* associated with a
license/package as the difference between the revenue of the
provisionally winning bid set[^12] and the maximum total revenue
associated with the set of bids that includes that particular
license/package.[^13] The *deficit* was defined as an allocation of the
shortfall to the particular license/package in proportion to its share
of bidding units relative to those associated with bids that were not
part of the provisionally winning set but are part of the set that
maximizes revenue when including the particular license/package.[^14]
(When there is more than one set of bids that yields the same shortfall
for a given bid, we proposed to choose the shortfall set that includes
the most provisionally winning bidding units.) We proposed to set part
(iii) of the minimum acceptable bid formula initially to be a bidder's
previous high bid on a license/package plus *100* *percent* of the
deficit, but retain the discretion to adjust the percentage of the
deficit during the course of the auction to provide control over the
auction's pace.[^15]

**[Discussion.]{.underline}**

Pekec and Rothkopf agree that using the shortfall calculation in the
determination of the minimum acceptable bid price is a clear improvement
to the originally proposed calculation.[^16] However, they believe that
the allocation of this calculated shortfall should be proportional to
bid amounts rather than bidding units.[^17]

The Bureau acknowledges that if all bidders bid in a straightforward
fashion, it is likely that current prices would be the best estimate of
the relative values of the licenses/packages. Under these circumstances,
the proposal made by Pekec and Rothkopf might be a better approach to
allocating the shortfall than that set forth by the Bureau. However, the
Bureau is concerned with two potential consequences of implementing a
procedure that allocates shortfall based on bid amounts. Such an
allocation of the shortfall would (1) provide an incentive for bidders
to game the auction by bidding up the price on a license/package that
would partner with their own license/package in order to shift the
burden of the shortfall to another bidder; and (2) afford to bidders
that have not bid on a license/package for some time the ability to
"park" (i.e., make bids that receive eligibility activity credit but
have little prospect of winning) on that license/package since
potentially small allocations of shortfall will be added to a bid amount
that is well below the amount needed to become a provisional winner.
Consequently, the Bureau believes that using bidding units to allocate
the shortfall provides an efficient mechanism for determining the
minimum bid *increment* added to a bidder's previous high bid. In
addition, if the minimum acceptable bid price is too high, bidders will
have the opportunity to bid a price less than that amount if they choose
to exit the auction via last and best bids.[^18]

In the *Auction No. 31 Package Bidding Further Comment Public Notice*,
we proposed an exception to the modified minimum acceptable bid formula
for new packages.[^19] We proposed that part (iii) of the formula for
the initial minimum acceptable bid for any package other than a global
package[^20] created during the auction will continue to be calculated
by multiplying the number of bidding units in the package by the lowest
\$/bidding unit of any provisionally winning bid in the last five
rounds.[^21]

Pekec and Rothkopf argue that we should calculate the minimum acceptable
bid for new packages the same way as for all other bids and calculate
the minimum acceptable bid prices for all possible packages and licenses
regardless of whether the bidder has bid on a license/package.[^22] We
note that this would require the determination of minimum acceptable bid
values equal to the total number of possible combinations of the twelve
licenses times the number of bidders, with most of the calculations
never being used.[^23] Alternatively, we could provide for immediate
minimum acceptable bid calculations for any new package, but that could
allow individuals to flood the FCC bidding system with requests and
possibly disrupt the auction.

Balancing operational considerations with the desire to set the minimum
acceptable bid at a level that provides a realistic chance of a bid
becoming a provisional winner,[^24] the Bureau adopts the procedure
proposed in the *Auction No. 31 Package Bidding Further Comment Public
Notice.* For a *new* package created after the close of the prior round,
part (iii) of the initial minimum acceptable bid will be calculated by
multiplying the number of bidding units in the package by the lowest
\$/bidding unit of any provisionally winning bid in the last five
rounds. This exception will not apply to a global package whose minimum
acceptable bid will always be (a percentage of) the maximum revenue from
the previous round.[^25]

After each round, the Bureau will, for every bidder, calculate part
(iii) of the minimum acceptable bid price based on shortfall allocation
for every license and for every *constructed package.*[^26] When there
is no previous high bid because the bidder has not bid on a license or
an already created package, we will use the minimum opening bid as the
previous high bid to calculate part (iii) of the minimum acceptable bid
rule; and part (ii) of the rule does not apply.

# "Last and Best" Bids

**[Background]{.underline}**

In the July 3, 2000, *Public Notice*, the Bureau adopted a "last and
best" bid procedure. Specifically, bidders that wish to drop out of the
auction would have the opportunity before they drop out to make a "last
and best" bid on any packages for which they remain eligible. Such bids
could be of any amount (in thousand dollar increments) between their
previous high bid and the minimum acceptable bid. A bidder that submits
a last and best bid(s) would not be permitted to make any further bids
in the auction.

In the *Auction No. 31 Package Bidding Further Comment Public Notice,*
we proposed modifying the last and best bid procedure to allow a bidder
to submit two sets of mutually exclusive last and best bids.[^27] We
proposed that in determining the provisionally winning bid(s), the round
solver[^28] would consider these two sets of mutually exclusive bids as
well as any of the bidder's bids that remain in the provisionally
winning set.[^29]

**[Discussion]{.underline}**

In their comments, Pekec and Rothkopf state that the Bureau's proposed
modifications, particularly in the case of last and best bid provisions,
are of limited importance and are not sufficient to affect the overall
quality of the auction.[^30]

Verizon supports the Bureau's general plan to allow bidders the
opportunity to make a last and best bid on any package for which they
remain eligible before they drop out of the auction.[^31] However,
Verizon disagrees with the Bureau's decision to prohibit from further
bidding a bidder that chooses to make a last and best bid.[^32] Verizon
claims that the Bureau's proposal is inconsistent with the public
interest because it could prematurely reduce the number of participants
in the auction, ultimately resulting in an inefficient assignment of
licenses.[^33] Verizon urges the Bureau to apply the last and best bid
option to licenses and packages, rather than bidders.[^34] Verizon
further requests that the Bureau clarify or confirm that the second
opportunity to place a last and best bid means that a bidder whose last
and best bid was bested by another bidder has an opportunity to place an
additional last and best bid on another license or package. Verizon also
asks that the Bureau provide bidders an example that applies this
two-round process to a hypothetical set of last and best bids.[^35]

The Bureau clarifies the procedure for placing last and best bids as
follows. A bidder may make up to two sets of last and best bids. The two
sets of last and best bids must be submitted in a single round, but will
be treated as mutually exclusive, as are bids placed in two separate
rounds. Once last and best bids are placed, the bidder will not be
permitted to place new bids or renew previous bids in any subsequent
round. If a bidder chooses to submit two sets of last and best bids,
then, for the remainder of the auction, the "solver" (computer software)
will consider those two sets of bids. If a bidder chooses to submit only
one set of last and best bids, then, for the remainder of the auction,
the solver will consider this set of bids and the set of bids from the
last round in which the bidder placed bids. The only other bids that
would be considered in a round for a bidder that places last and best
bids are provisionally winning bids from the previous round.

Each set of last and best bids may consist of bids on any or all of the
licenses and any or all of the packages created by the bidder,
consistent with the activity rules and the twelve package
limitation.[^36] The last and best bid amount for any license or package
is any amount, in thousand dollar increments, greater than or equal to
the bidder's previous high bid on the license or package and less than
or equal to the ninth increment above the minimum acceptable bid for
that license or package. Note that placing a last and best bid equal to
the bidder's previous high bid will be considered as a renewed bid when
applying activity rules. Also, if the bidder has never placed a bid on a
package or license, the lower bound on the last and best bid amount is
equal to the minimum opening bid for that package or license.

The Bureau believes that the procedure for placing last and best bids
provides a bidder that is dropping out of the auction with sufficient
flexibility to pursue its current business strategies, while maintaining
bidding rules consistent with the overall auction structure. Moreover,
providing bidders with opportunities in each round to place bids below
the minimum acceptable bid amount may significantly slow the pace of the
auction. Having a bidder-specific procedure, rather than a bid-specific
procedure, is also more straightforward to implement. The Bureau
believes that bidders are unlikely to exit the auction prematurely, as
Verizon argues, because they may renew their bids and utilize activity
rule waivers to prevent eligibility reduction.

> The following is a simple example of the procedures for last and best
> bids. Bidder A desires to win the Great Lakes 10 MHz license and
> either a package of the two licenses in the Pacific region or a
> package of the two licenses in the Northeast region. To meet this
> objective, Bidder A has been bidding on the Great Lakes 10 MHz license
> and a package consisting of both the 10 MHz and the 20 MHz licenses in
> the Pacific region in even rounds while bidding on the Great Lakes 10
> MHz license and a package consisting of both the 10 MHz and the 20 MHz
> licenses in the Northeast region in odd rounds. Because of the mutual
> exclusivity of bids placed in different rounds, this strategy will
> ensure that Bidder A does not win more than it wants. Suppose that
> Bidder A has decided to place last and best bids. Bidder A may create
> a set of last and best bids comprised of a bid on the Great Lakes 10
> MHz license and a bid on the Pacific region package. Bidder A may also
> submit a second set of last and best bids comprised of a bid on the
> Great Lakes 10 MHz license and a bid on the Northeast region package.
> In this example, the last and best bid procedure affords the bidder
> the opportunity to value the Great Lakes 10 MHz license differently in
> the two sets according to its synergistic relation to the other bids
> in each set.

# Ties with the FCC at the Minimum Opening Bid

In the *Auction No. 31 Package Bidding Procedures Public Notice,* we
stated that individual licenses on which no bids are available to be
considered when solving for the provisionally winning set will be
treated as having a bid by the FCC at the minimum opening bid.[^37] We
now wish to clarify treatment of FCC bids where there are other bids
available to be considered for the provisionally winning set.
Implementing the minimum opening bid requirement by treating the FCC as
having a bid on each license at the minimum opening bid could result in
the FCC retaining a license even though a bidder had an equivalent
minimum opening bid on that license. To ensure that a bid on a license
or package at the minimum opening bid always beats the FCC bid, the
Bureau will treat all licenses as having FCC bids at some small amount
less than the minimum opening bid.

# Comments on Other Package Bid Provisions 

> Comments filed by Paul Milgrom and Charles Plott addressed some
> matters that are beyond the scope of the *Auction No. 31 Package
> Bidding Further Comment Public Notice* and upon which other parties
> have not had an opportunity to comment.[^38] That *Public Notice*
> sought comment specifically on the calculation for determining minimum
> acceptable bids and the last and best bid procedures. While we
> appreciate the input provided by commenters, we cannot at this time
> make any further changes to our package bidding procedures. The
> auction is scheduled to begin on March 6, 2001, and short-form
> applications are due on February 2, 2001. We are confident that the
> package bidding procedures we have established for Auction No. 31 will
> work effectively. We will revisit our package bidding procedure
> whenever we consider the use of package bidding for another auction.

# Auction Schedule

The Commission set forth the following dates which will govern the
conduct of Auction No. 31:

Opening of the Form 175 Filing Window January 11, 2001

Bidders' Seminar[^39] January 23, 2001

Industry Test January 24-26, 2001;

> 9:00 a.m. to 5:00 p.m. ET

Filing Deadline for FCC Form 175 February 2, 2001; 6:00 p.m. ET

Upfront Payment Deadline February 16, 2001; 6:00 p.m. ET

Bidding Preference Form Deadline February 20, 2001; 6:00 p.m. ET

Mock Auction March 1-2, 2001

Auction Start Date March 6, 2001

# Industry Test of the Package Bidding System

As stated, package bidding is a new concept in our auctions program. To
further facilitate understanding and participation, the Bureau has
scheduled an industry test that will help potential bidders and other
interested parties to become familiar with the system**.** The industry
test will run from 9:00 a.m. to 5:00 p.m. Eastern Time on January 24, 25
& 26, 2001. The test software, like the auction software, will run over
the Internet. To use this software, your computer must have the minimum
hardware and software listed in the attachment titled *Electronic Filing
and Review of the FCC Form 175*.

To participate in the test, send an e-mail to 31bidder@fcc.gov by 4:00
p.m. ET on January 17, 2001. Please include your company name and the
name and e-mail address of the person we should contact with any
questions. If you want our response sent to a different address than
where you sent from, please include that return e-mail address as well.
The Bureau will e‑mail to that address the URL of our test system, along
with a bidder ID and password that you will need to access the system.

## Due Diligence

Potential bidders are reminded that there are a number of incumbent
broadcast television licensees already licensed and operating in the
746-764 and 776-794 MHz bands (television Channels 60-62 and 65-67) that
will be subject to the upcoming auction. Listed in Attachment J[^40] to
the *Auction No. 31 Procedures Public Notice* are facilities of
incumbent television permittees and licensees on television Channels
60-62 and 65-67 as well as on adjacent television Channels 59, 63, 64,
and 68. However, prospective bidders should not rely solely on this
list, but should carefully review the Commission's databases and records
before formulating bidding strategies.

In addition, there are several pending applications and rule making
petitions for new analog and digital television authorizations on
channel 59 which, if granted, would become additional incumbents on that
channel. Information on pending applications can be found in the Mass
Media Bureau's Consolidated Database System on the Commission's website.
The Commission makes no representations or guarantees regarding the
accuracy or completeness of information that has been incorporated into
the databases. Potential bidders are strongly encouraged to physically
inspect any sites located in or near the geographic area for which they
plan to bid.

As more fully discussed in the *Auction No. 31 Procedures Public
Notice*,[^41] we remind potential bidders that certain applications
(including those for modification), petitions for rulemaking, waiver
requests, requests for special temporary authority ("STA"), petitions to
deny, petitions for reconsideration, and applications for review may be
pending before the Commission that relate to the facilities listed in
Attachment J[^42] to *the Auction No. 31 Procedures Public Notice*. We
again note that resolution of these pending matters could have an impact
on the availability of spectrum for licensees in the 746-764 and 776-794
MHz bands. While the Commission will continue to act on pending matters,
some of these matters may not be resolved by the time of Auction No. 31.
Potential bidders are strongly encouraged to conduct their own research
prior to Auction No. 31 in order to determine the existence of pending
proceedings that might affect their decisions regarding participation in
the auction. Participants in Auction No. 31 are strongly encouraged to
continue such research during the auction.

## Other Procedural Issues

Since the release of the *Auction No. 31 Package Bidding Procedures
Public Notice*, there have been changes in the Competitive Bidding
Rules[^43] that will apply to Auction No. 31. The Bureau has set forth
below significant amendments to the Competitive Bidding Rules, but it is
the responsibility of each applicant to carefully review and comply with
all applicable rules.

A.  **Ownership Disclosure Requirements (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.[^44] Specifically, in completing 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.

B.  **Provisions Regarding Defaulters and Former Defaulters (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.[^45] 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 (or any
of the applicant's controlling interests or their affiliates, as defined
by Section 1.2110 of the Commission's Rules, as recently amended in the
*Part 1 Fifth Report and Order*) has ever been in default on any
Commission licenses or has ever been delinquent on any non-tax debt owed
to any federal agency.[^46] **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 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.

"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. 31, provided that they are otherwise qualified. However, as
discussed *infra* in Section VII.C, former defaulters are required to
pay upfront payments that are fifty percent more than the normal upfront
payment amounts.[^47]

> C. **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 an appropriate upfront payment for
each license being auctioned.[^48] The Bureau set forth the amount of
the upfront payment associated with each of the 12 licenses available in
this auction.[^49] Those amounts remain unchanged.[^50]

The upfront payment amount for "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, will be
fifty percent more than the normal amount required to be paid.[^51]
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 calculating 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.

IV. **Changes to Post Auction Procedures**

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A.  **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(e). 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). In
order for a winning bidder to be awarded a tribal land bidding credit,
it must provide specific certifications regarding the servicing of
tribal lands and is subject to specific performance criteria as set
forth in 47 C.F.R. § 1.2110(e).

For additional information on the tribal land bidding credit, including
how to determine the amount of credit available, see *Public Notice*, DA
00-2219, released September 28, 2000, entitled *Wireless
Telecommunications Bureau Announces Availability of Bidding Credits for
Providing Wireless Services to Qualifying Tribal Lands*.

B.  **Auctions Discount Voucher**

On June 8, 2000, the Commission awarded Qualcomm, Inc. a transferable
Auction Discount Voucher in the amount of \$125,273,878.00[^52] 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.

# X. Contact Information {#x.-contact-information .unnumbered}

For further information concerning this *Public Notice*, contact Walter
D. Strack, Bureau Chief Economist, Wireless Telecommunications Bureau,
(202) 418-0600; Evan Kwerel, Senior Economist, Office of Plans and
Policy, (202) 418-2030; Howard Davenport, Auctions Attorney; Craig
Bomberger, Auctions Analyst; or Karen Wrege, Auctions and Industry
Analysis Division, Wireless Telecommunications Bureau, (202) 418-0600.

**ATTACHMENT A**

# Summary of Package Bidding Rules for 700 MHz Auction {#summary-of-package-bidding-rules-for-700-mhz-auction .unnumbered}

### Available Packages

-   A bidder may bid only on those licenses selected on its Form 175 and
    on packages created from those licenses.[^53]

-   Bidders may bid on up to *twelve packages*.[^54] Bidders may create
    or remove packages at any time provided that they have no more than
    twelve packages. [^55] Packages may not be removed once bid upon. A
    license is not considered a package.

### New Bids

-   *Minimum acceptable bid.* A bidder may make a minimum acceptable bid
    on a license/package.[^56] A minimum acceptable bid is the *greater*
    of:

i.  The *minimum opening bid*. The Commission sets the minimum opening
    bids for licenses prior to the auction. Minimum opening bids for
    packages are the sum of the minimum opening bids for the licenses
    composing the package.[^57]

ii. A bidder's *previous high bid* on the license/package *plus X%.* The
    Commission sets X and may vary it during the course of the
    auction.[^58] Part (ii) does not apply if a bidder has not bid on a
    license/package.

iii. A bidder's *previous high bid* on a license/package *plus a share
     of the increase in revenue needed to tie the provisional
     winners*.[^59] When there is no previous high bid because the
     bidder has not bid on a license or an already constructed package,
     we will use the minimum opening bid as the previous high bid.[^60]
     We define the *shortfall* associated with a license/package as the
     difference between the revenue of the provisionally winning bid set
     and the maximum total revenue associated with the set of bids that
     includes that particular license/package while satisfying all
     constraints for determining the provisionally winning set.[^61] The
     *deficit* is an allocation of the shortfall to the particular
     license/package in proportion to its share of bidding units
     relative to those associated with bids that were not part of the
     provisionally winning set, but are part of the set that maximizes
     revenue when including the particular license/package.[^62]
     Part (iii) of the minimum acceptable bid formula is a bidder's
     previous high bid (or the minimum opening bid) on a license or
     constructed package plus *100 percent of the deficit*. The Bureau
     may adjust the percentage during the course of the auction.

> For a *new* package created after the close of the prior round,
> however, part (iii) of the initial minimum acceptable bid formula will
> be calculated by multiplying the number of bidding units in the
> package by the lowest \$/bidding unit of any provisionally winning bid
> in the last five rounds.[^63] This exception will not apply to bids
> for the *global package*, however, whose minimum acceptable bid will
> always be (a percentage of) the maximum revenue from the previous
> round.[^64]

-   *Increment bid.* A bidder may make an increment bid on a
    license/package. An increment bid is equal to the minimum acceptable
    bid plus 1 -- 9 increments more than the minimum acceptable
    bid.[^65] An increment is equal to X% of the minimum acceptable bid.
    X% is determined by the Commission.[^66]

-   *Last and best bids*. A bidder may make up to two sets of last and
    best bids.[^67] The two sets of last and best bids must be submitted
    in a single round but will be treated as mutually exclusive.[^68]
    Once last and best bids are placed the bidder will not be permitted
    to place new bids or renew previous bids in any subsequent
    round.[^69] Each set of last and best bids may consist of bids on
    any or all of the licenses and any or all of the packages created by
    the bidder, consistent with activity rules and the twelve package
    limitation.[^70] The last and best bid amount for any license or
    package may be any amount, in thousand dollar increments, greater
    than or equal to the bidder\'s previous high bid on the license or
    package and less than or equal to the ninth increment above the
    minimum acceptable bid for that license or package.[^71] Also, if a
    bidder has never placed a bid on a package or license the lower
    bound on the last and best bid is equal to the minimum opening bid
    for that package or license.

### Renewed Bids

-   A bidder may renew a bid made previously on a license/package at the
    highest amount it previously bid on that license/package.[^72] Thus,
    a bidder can renew only its own last bid on a license/package, and a
    bidder's bids on a license/package may not decrease.[^73]

-   As discussed below (in the section on activity and eligibility),
    renewed provisionally winning bids count as bidding activity and
    eligibility activity, while renewed *non*-provisionally winning bids
    count as neither. Thus a bidder can renew non-provisionally winning
    bids without regard to its current eligibility, provided it has not
    made a last-and-best bid. Renewal of non-provisionally winning bids
    is constrained by initial eligibility, however.

### Determining Winners

-   In determining provisionally winning bids in the current round, for
    each bidder we *consider:*

i.  Bids (new and renewed) made by that bidder in the last two rounds in
    which the bidder placed bids.[^74]

ii. The bidder's provisionally winning bids at the end of the previous
    round.[^75]

-   Bids made by the same bidder in different rounds are treated as
    *mutually exclusive* ("or") bids.[^76] Thus for each bidder, any
    bids in the provisionally winning set must have been made in the
    same round. If a bidder does not want a bid from a previous round
    (including a provisionally winning bid) to be considered mutually
    exclusive with bids made in the current round, it must renew or
    increase the bid in the current round.[^77]

-   Overlapping bids (bids that include the same license) by the same
    bidder in the same round are treated as *mutually exclusive* ("or")
    bids.[^78]

-   The *provisionally winning* bids at the end of each round consist of
    those non-mutually exclusive considered bids that maximize revenue
    while assigning each license only once.

-   The *winning bids* are the provisionally winning bids when the
    auction closes.

```{=html}
<!-- -->
```
-   *Ties.* Ties will be broken randomly using a two-step process.[^79]
    To begin, each considered bid is assigned a selection number as the
    sum of n pseudo-random numbers where n is the number of licenses
    comprising the bid\'s package (n = 1 for individual license bids).
    Then with knowledge of the maximum revenue for the round, a second
    optimization determines the provisionally winning set by choosing a
    set of non-mutually exclusive considered bids that maximizes the sum
    of selection numbers while still yielding the maximum revenue.

-   A bid at the minimum opening bid beats the "FCC bid". This is
    accomplished by putting in "FCC bids" at some small amount less than
    the minimum opening bid.

### Closing Rules

-   The auction closes after the second round in which no new bids have
    been placed.[^80] Renewed bids (whether provisionally winning or
    non-provisionally winning) are not new bids. Last and best bids are
    considered to be new bids in the round in which they are placed
    except for those last and best bids placed at the bidder's previous
    high bid.[^81]

-   After the first round in which no new bids have been placed, bidders
    will receive a message warning that if no new bids are placed in the
    next round, the auction will close and the current provisionally
    winning bids will become the winning bids.

-   We run the solver after every round *except* the last round.

### Activity and Eligibility

-   *Bidding units.* Prior to the auction, licenses are assigned a
    specific number of bidding units for the purpose of calculating
    bidder compliance with the activity rules. The number of bidding
    units assigned to a license is fixed and does not increase as prices
    rise during the auction.

```{=html}
<!-- -->
```
-   *Bidding activity.* *Bidding activity* in a round is the maximum
    number of bidding units a bidder can win considering new bids and
    renewed provisionally winning bids placed in that round.[^82] A
    bidder's *bidding activity* in the current round must be *less* than
    or equal to its *current* eligibility.[^83]

```{=html}
<!-- -->
```
-   *Bidding exposure.* *Bidding exposure* in a round is the maximum
    number of bidding units a bidder can win considering *all* the bids
    (new, renewed provisionally winning, renewed non-provisionally
    winning) placed in that round. A bidder's *bidding exposure* in the
    current round must be *less* than or equal to its *initial*
    eligibility.

-   *Initial eligibility*. A bidder's *initial eligibility* is
    determined by its selection on Form 175 and the upfront payment it
    makes.[^84] Its initial eligibility in bidding units is equal to its
    upfront payment in dollars.

-   *Eligibility activity.* *Eligibility activity* in a round is the
    maximum number of bidding units a bidder can win considering new
    bids and renewed provisionally winning bids placed in that round,
    and the bidder's provisionally winning bids at the end of the
    previous round. Since bids made in different rounds are mutually
    exclusive, *eligibility activity* in a round is the *greater* of (i)
    bidding activity in the round; and (ii) the bidding units associated
    with the bidder's bids that remain in the provisionally winning set.

-   *Current eligibility.* A bidder's *eligibility* in the *current*
    round is the *lesser* of (i) its eligibility in the previous round
    and (ii) the reciprocal of the *activity requirement* (1/activity
    requirement) multiplied by its *eligibility activity* in the
    previous round.[^85] When the auction begins the activity
    requirement is 50%, so until we change it, the current eligibility
    is the lesser of previous round eligibility, and twice previous
    round eligibility activity. Absent eligibility activity waivers, if
    eligibility activity in the current round falls below the activity
    requirement (e.g., 50%) times current eligibility, eligibility in
    the next round will be reduced.

-   *Eligibility activity waivers.* If a bidder's eligibility activity
    does not meet the activity requirement, its eligibility is not
    reduced if it has a waiver available.[^86] Each bidder initially has
    five waivers. [^87] If a bidder has used up its five waivers and
    then fails to meet the activity requirement, the bidder's
    eligibility is reduced in the next round to meet the activity
    requirement, just as if it had affirmatively reduced its
    eligibility. A bidder may also affirmatively reduce its eligibility
    if it wishes in order not to use a waiver.[^88]

> **ATTACHMENT B**
>
> **PACKAGE BIDDING ACTIVITY CALCULATIONS**

+---------------+------------------------------+-----------------------+
| #             | ## Definiti                  | ## Rule/              |
| # Name {#name | on {#definition .unnumbered} | Application {#ruleapp |
|  .unnumbered} |                              | lication .unnumbered} |
+---------------+------------------------------+-----------------------+
| ## Bidding a  | Maximum number of bidding    | Bidding activity ≤    |
| ctivity {#bid | units a bidder can win       | current eligibility   |
| ding-activity | considering:                 |                       |
|  .unnumbered} |                              | In the current round, |
|               | -   new bids                 | a bidder may not      |
|               |                              | place new bids or     |
|               | -   renewed provisionally    | renew provisionally   |
|               |     winning bids             | winning bids so that  |
|               |                              | it can win more       |
|               | made or renewed in the       | bidding units than    |
|               | current round.               | its *current*         |
|               |                              | eligibility.          |
+---------------+------------------------------+-----------------------+
| ## Bidding e  | Maximum number of bidding    | Bidding exposure ≤    |
| xposure {#bid | units a bidder can win       | initial eligibility   |
| ding-exposure | considering:                 |                       |
|  .unnumbered} |                              | In the current round, |
|               | -   new bids                 | a bidder may not      |
|               |                              | place new bids or     |
|               | -   renewed provisionally    | renew provisionally   |
|               |     winning bids             | winning or            |
|               |                              | non-provisionally     |
|               | -   renewed                  | winning bids so that  |
|               |     non-provisionally        | it can win more       |
|               |     winning bids             | bidding units than    |
|               |                              | its *initial*         |
|               | made or renewed in the       | eligibility.          |
|               | current round.               |                       |
+---------------+------------------------------+-----------------------+
| ## Elig       | Maximum number of bidding    | Eligibility(t+1) =    |
| ibility activ | units a bidder can win       | min \[eligibility(t), |
| ity {#eligibi | considering:                 | 2 x eligibility       |
| lity-activity |                              | activity(t)\]         |
|  .unnumbered} | -   new bids                 |                       |
|               |                              | A bidder's            |
|               | -   renewed provisionally    | eligibility in the    |
|               |     winning bids             | current round is the  |
|               |                              | *lesser* of: (i) its  |
|               | made or renewed in the       | eligibility in the    |
|               | current round,               | previous round, or    |
|               |                              | (ii) twice its        |
|               | -   provisionally winning    | eligibility activity  |
|               |     bids at the end of the   | in the previous       |
|               |     previous round.          | round, if it does not |
|               |                              | use a waiver and the  |
|               | Eligibility activity = max   | required bidding      |
|               | \[bidding activity, bidding  | activity level is     |
|               | units associated with a      | 50%.                  |
|               | bidder's provisionally       |                       |
|               | winning bids\]               |                       |
+---------------+------------------------------+-----------------------+

ATTACHMENT C

FCC AUCTION SEMINAR REGISTRATION FORM

Auction No. 31

The FCC will sponsor a one-day seminar for the 700 MHz Auction
applicants. The seminar is free of charge and will provide information
about pre-auction procedures, radio service and auction rules, conduct
of the auction, and the FCC remote bidding software.

Representatives from each company can make reservations to attend the
seminar being held:

**Tuesday, January 23, 2001**

**Federal Communications Commission**

**445 12^th^ Street S.W.**

#### Washington, DC 20554 {#washington-dc-20554 .unnumbered}

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

**Seminar: 10:00 a.m. -- 4:00 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 by mail or fax to be received no later than
[noon]{.underline}**

**Friday, January 19, 2001,** to:

FCC Auction No. 31

Auctions Operations Branch

1270 Fairfield Road

Gettysburg, PA 17325-7245

FAX: 717-338-2850

Phone: 717-338-2888

I/We will attend the Auction No. 31 Seminar, scheduled for **Tuesday,
January 23, 2001.**

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

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

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

Phone: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Fax:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

# ATTACHMENT D {#attachment-d .unnumbered}

**GUIDELINES FOR COMPLETION**

**OF FCC FORM 175 AND EXHIBITS**

**A. FCC Form 175**

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

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

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

**Applicant 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 or government
entity.

**Applicant Status:** Applicants are also requested to indicate their
status as a rural telephone company, minority-owned business,
women-owned business, and/or non-commercial educational 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. **Note: Applicants may only share a common authorized bidder(s)
if each applicant has selected separate markets. *See* 47 CFR §
1.2105(c)**.

**Bidding Credit Eligibility:** Be advised that this is the sole
opportunity applicants have to elect small business or very small
business status and bidding credit level (if applicable), and there is
no opportunity to change the election once the short-form filing
deadline passes.

**License Selection:** Applicants should identify 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. It is critically important that you confirm the licenses that
you have selected because the FCC auction system will not accept bids on
licenses for which an applicant has not applied on its FCC Form 175.
**Note that there are twelve licenses offered in Auction 31 (*e.g.*,
EAG701 Channel Block C, EAG701 Channel Block D, EAG702 Channel Block C,
etc.) Each of the six regions (Markets) consists of two licenses: one
for Channel Block C and one for Channel Block D. To be eligible to bid
on a license, individually or as part of a package, that license must be
selected. (That is, to be eligible to bid on license EAG701 Channel
Block C, a bidder must select EAG701 Channel Block C; to be eligible to
bid on EAG701 Channel Block D, a bidder must select EAG701 Channel Block
D; to be eligible to bid on the Northeast Region, a package consisting
of licenses EAG701 Channel Block C and EAG701 Channel Block D, a bidder
must select both EAG701 Channel Block C and EAG701 Channel Block D.)**

**B. Exhibits and Attachments**

In addition to the FCC Form 175 itself, applicants must submit
additional information required by the FCC's rules. 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 list their TIN numbers 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 or
very small business 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; and name, title, and
                         citizenship of a responsible officer or director

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

  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     |
|                      | defined in 47 C.F.R. §§ 1.2110 and 1.2112.    |
+----------------------+-----------------------------------------------+
| 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 as       |
|                      | determined by successive multiplication of    |
|                      | the ownership percentages in each link of the |
|                      | vertical ownership chain, that equals 10      |
|                      | percent or more of the applicant, 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-licensed 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 that 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* 47      |
|                      | > C.F.R. §§ 1.2110 and 1.2112) 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 licensed 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 licensed 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 licensed 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 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 communication among applicants for the same license
areas between the initial short-form applications filing deadline and
the down payment on licenses won, when such communications concern bids,
bidding strategies, or settlements.* 47 C.F.R. § 1.2105(c).

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

+----------------------+---------+----------+-------------------------+
| ***Entity***         | ***R    |          |                         |
|                      | equired |          |                         |
|                      | Informa |          |                         |
|                      | tion*** |          |                         |
+======================+=========+==========+=========================+
| Applicant            | Average |          |                         |
|                      | annual  |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for the |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | three   |          |                         |
|                      | years   |          |                         |
|                      | set     |          |                         |
|                      | forth   |          |                         |
|                      | *both   |          |                         |
|                      | sepa    |          |                         |
|                      | rately* |          |                         |
|                      | (       |          |                         |
|                      | *e.g.*, |          |                         |
|                      | for     |          |                         |
|                      | each of |          |                         |
|                      | the     |          |                         |
|                      | three   |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | three   |          |                         |
|                      | years   |          |                         |
|                      | indivi  |          |                         |
|                      | dually) |          |                         |
|                      | *and in |          |                         |
|                      | the     |          |                         |
|                      | agg     |          |                         |
|                      | regate* |          |                         |
|                      | (for    |          |                         |
|                      | all of  |          |                         |
|                      | the     |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | three   |          |                         |
|                      | years   |          |                         |
|                      | com     |          |                         |
|                      | bined). |          |                         |
|                      | Certif  |          |                         |
|                      | ication |          |                         |
|                      | that    |          |                         |
|                      | the     |          |                         |
|                      | average |          |                         |
|                      | annual  |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for the |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | three   |          |                         |
|                      | years   |          |                         |
|                      | do not  |          |                         |
|                      | exceed  |          |                         |
|                      | the     |          |                         |
|                      | r       |          |                         |
|                      | equired |          |                         |
|                      | limit,  |          |                         |
|                      | or      |          |                         |
|                      | pr      |          |                         |
|                      | oviding |          |                         |
|                      | average |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for the |          |                         |
|                      | 3-year  |          |                         |
|                      | period  |          |                         |
|                      | without |          |                         |
|                      | pr      |          |                         |
|                      | oviding |          |                         |
|                      | the     |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for     |          |                         |
|                      | each of |          |                         |
|                      | the     |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | three   |          |                         |
|                      | years,  |          |                         |
|                      | is      |          |                         |
|                      | insuff  |          |                         |
|                      | icient. |          |                         |
+----------------------+---------+----------+-------------------------+
| Applicant\'s         | Same    |          |                         |
| Affiliates           | info    |          |                         |
|                      | rmation |          |                         |
| *See* 47 CFR §       | r       |          |                         |
| 1.2110               | equired |          |                         |
|                      | as      |          |                         |
|                      | di      |          |                         |
|                      | scussed |          |                         |
|                      | above   |          |                         |
+----------------------+---------+----------+-------------------------+
| Applicant\'s         | Same    |          |                         |
| Controlling          | info    |          |                         |
| Interests *See* 47   | rmation |          |                         |
| CFR §§               | r       |          |                         |
|                      | equired |          |                         |
| 1.2110 and 1.2112.   | as      |          |                         |
|                      | di      |          |                         |
|                      | scussed |          |                         |
|                      | above   |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | *Ex     |          |                         |
|                      | ample.* |          |                         |
|                      | The     |          |                         |
|                      | ap      |          |                         |
|                      | plicant |          |                         |
|                      | had     |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | of      |          |                         |
|                      | \$      |          |                         |
|                      | 500,000 |          |                         |
|                      | in      |          |                         |
|                      | 1997,   |          |                         |
|                      | \$1,    |          |                         |
|                      | 000,000 |          |                         |
|                      | in      |          |                         |
|                      | 1998,   |          |                         |
|                      | and     |          |                         |
|                      | \$3,    |          |                         |
|                      | 000,000 |          |                         |
|                      | in      |          |                         |
|                      | 1999,   |          |                         |
|                      | with    |          |                         |
|                      | average |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for     |          |                         |
|                      | that    |          |                         |
|                      | time    |          |                         |
|                      | period  |          |                         |
|                      | of      |          |                         |
|                      | \$1,5   |          |                         |
|                      | 00,000. |          |                         |
|                      | The     |          |                         |
|                      | ap      |          |                         |
|                      | plicant |          |                         |
|                      | owns    |          |                         |
|                      | 60% of  |          |                         |
|                      | Company |          |                         |
|                      | A,      |          |                         |
|                      | making  |          |                         |
|                      | Company |          |                         |
|                      | A an    |          |                         |
|                      | af      |          |                         |
|                      | filiate |          |                         |
|                      | of the  |          |                         |
|                      | ap      |          |                         |
|                      | plicant |          |                         |
|                      | under   |          |                         |
|                      | S       |          |                         |
|                      | ections |          |                         |
|                      | 1.2110  |          |                         |
|                      | and     |          |                         |
|                      | 1.2112, |          |                         |
|                      | and     |          |                         |
|                      | Company |          |                         |
|                      | B owns  |          |                         |
|                      | 52% of  |          |                         |
|                      | the     |          |                         |
|                      | app     |          |                         |
|                      | licant, |          |                         |
|                      | making  |          |                         |
|                      | Company |          |                         |
|                      | B a     |          |                         |
|                      | cont    |          |                         |
|                      | rolling |          |                         |
|                      | i       |          |                         |
|                      | nterest |          |                         |
|                      | of the  |          |                         |
|                      | app     |          |                         |
|                      | licant. |          |                         |
|                      | (*Id*.) |          |                         |
|                      | The     |          |                         |
|                      | appli   |          |                         |
|                      | cant\'s |          |                         |
|                      | Exhibit |          |                         |
|                      | C would |          |                         |
|                      | look    |          |                         |
|                      | like    |          |                         |
|                      | this:   |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | Ap      |          |                         |
|                      | plicant |          |                         |
|                      | Name    |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1997    |          | \$ 500,000              |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1998    |          | \$ 1,000,000            |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1999    |          | \$ 3,000,000            |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | Average |          |                         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | for the |          | \$ 1,500,000            |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | 3 years |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | Company |          |                         |
|                      | A (an   |          |                         |
|                      | af      |          |                         |
|                      | filiate |          |                         |
|                      | of the  |          |                         |
|                      | app     |          |                         |
|                      | licant) |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1997    |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1998    |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1999    |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | Average |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for the |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | 3 years |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | Company |          |                         |
|                      | B (a    |          |                         |
|                      | cont    |          |                         |
|                      | rolling |          |                         |
|                      | i       |          |                         |
|                      | nterest |          |                         |
|                      | in the  |          |                         |
|                      | app     |          |                         |
|                      | licant) |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1997    |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1998    |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | 1999    |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | Average |          | \$ enter amount         |
|                      | gross   |          |                         |
|                      | r       |          |                         |
|                      | evenues |          |                         |
|                      | for the |          |                         |
|                      | pr      |          |                         |
|                      | eceding |          |                         |
|                      | 3 years |          |                         |
+----------------------+---------+----------+-------------------------+
|                      | **T     | **       |                         |
|                      | OTAL:** | combined |                         |
|                      |         | average  |                         |
|                      |         | gross    |                         |
|                      |         | revenues |                         |
|                      |         | for the  |                         |
|                      |         | p        |                         |
|                      |         | receding |                         |
|                      |         | three    |                         |
|                      |         | years of |                         |
|                      |         | the      |                         |
|                      |         | ap       |                         |
|                      |         | plicant, |                         |
|                      |         | the      |                         |
|                      |         | appl     |                         |
|                      |         | icant\'s |                         |
|                      |         | af       |                         |
|                      |         | filiates |                         |
|                      |         | and      |                         |
|                      |         | their    |                         |
|                      |         | con      |                         |
|                      |         | trolling |                         |
|                      |         | int      |                         |
|                      |         | erests** |                         |
+----------------------+---------+----------+-------------------------+

**NOTE:** Each member of an applicant that is applying to bid as a
consortium of small or very small businesses 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 has ever been in default on any Commission license
or has ever been delinquent on any non‑tax debt owed to any Federal
agency. If any of an applicant\'s controlling interests holders or their
affiliates, as defined by Section 1.2110 of the Commission\'s rules (as
recently amended in the *Part 1 Fifth Report and Order*) has ever been
in default on any Commission license or has ever been delinquent on any
non‑tax debt owed to any Federal agency, the applicant must include such
information as part of the same attached statement.

**Exhibit E -- Information Requested of Designated Entities:**
Applicants owned by minorities or women, as defined in 47 C.F.R. §
1.2110(b), 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.

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 in writing to
Margaret Weiner, Chief, Auctions and Industry Analysis Division,
Wireless Telecommunications Bureau, Federal Communications Commission,
445 12^th^ Street, S.W., Room 4-A669, Washington, D.C. 20554 (with a
separate copy mailed to Howard Davenport, Legal Branch, Auctions and
Industry Analysis Division, Room 4-A435), 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.

**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.

**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 Form 175" button on the "Submit"
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.

# Attachment E {#attachment-e .unnumbered}

ELECTRONIC FILING AND REVIEW

OF THE FCC FORM 175

Applicants must submit their FCC Form 175 applications electronically,
using either the FCC Auctions System page on the Internet or the FCC
Wide-Area Network. The FCC Wide-Area Network will generally be available
24 hours per day. FCC Form 175 applications must be submitted and
confirmed by **6:00 p.m. ET on Friday, February 2, 2001.** Late
applications or unconfirmed submissions of electronic data will not be
accepted.

Applicants must press the **Submit Form 175** button on the *Submit*
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.

## Minimum Hardware and Software Requirements

Applicants will need to meet the following minimum hardware and software
requirements:

### Minimum Hardware Requirements

-   CPU: Intel Pentium

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

Modem: 28.8 Kbps Hayes compatible modem or faster (recommend 56.6 Kbps)

Monitor: VGA or above

Mouse or other pointing device

### Minimum Software Requirements

Operating System: Microsoft Windows 95 or 98

Web Browser: Netscape Communicator 4.7*x* is recommended.

PDF Viewer: Adobe Acrobat Reader 3.0 or higher (available at
***http://www.adobe.com***)

## Submitting FCC Form 175 Applications

You can submit FCC Form 175 applications electronically via the
Internet. Start your Netscape Web browser. In your browser's *Location*
field, enter ***http://wtbwww15.fcc.gov*** and then click **175
Submit**.

> **Note:** If you have problems with the Internet, you may submit FCC
> Form 175 applications via the FCC Wide-Area Network, using Dial-Up
> Networking. For details, refer to the *Accessing the FCC Network to
> File FCC Form 175* attachment.

When uploading attachments in FCC Form 175 Submission, applicants may
use a variety of file formats \-- including Word 97 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.

After you upload an attachment and it has been converted, check to see
if it converted properly by selecting the PDF filename in the rightmost
column. The conversion process generally completes within thirty
minutes. If you are unable to read this file after it has been
converted, please do the following:

1\. Re-upload the attachment.

2\. If the file still has not 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.

Applicants must press the **Submit Form 175** button on the *Submit*
page to successfully submit their FCC Form 175. Pressing **Submit Form
175** produces a confirmation message 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 review FCC
Form 175 applications electronically via the Internet. Start your
Netscape Web browser. In your browser's *Location* field, enter
***http://wtbwww15.fcc.gov*** and then click **175 Review**.

## Help

For technical assistance with installing or 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.*

# Attachment F {#attachment-f .unnumbered}

ACCESSING THE FCC NETWORK

TO FILE FCC FORM 175

This attachment describes how to access the FCC Network from a system
that is running the Microsoft Windows 95 or Microsoft Windows 98
operating system. This involves configuring dial-up network access and
then performing the dial-up procedure.

> **Note:** Dial-up access to the FCC Network is ***not*** required to
> submit or review FCC Form 175 applications. You can perform those
> functions from the Internet, by entering location
> ***http://wtbwww15.fcc.gov/*** on your Netscape Web browser and
> clicking the **175 Submit** or **175 Review** button, respectively.
> For more details, refer to the *Electronic Filing and Review of the
> FCC Form 175* attachment.

## Conventions

The instructions in this section use the following typographical
conventions:

  ----------- -----------------------------------------------------------
  **bold**    Represents objects on the screen that you click with the
              mouse pointer, including buttons, Internet links, icons,
              tabs, menu items (e.g., **Cancel** button, **Auctions**
              link, **Save** option in the File menu).

  *italic*    Represents field names or areas of a screen (e.g.,
              *Applicant* field, *Selected Licenses* area of a screen).

  ***bold     Represents characters that you must type exactly as they
  italic***   appear in the instructions. For example, if you are
              instructed to type ***http://wtbwww15.fcc.gov***, you
              should type all of the characters shown in bold italic
              exactly as they are printed.
  ----------- -----------------------------------------------------------

## Accessing the FCC Network to Submit FCC Form 175 Applications

The following section provides the instructions for configuring the
dial-up network access in preparation for submitting FCC Form 175
applications. The subsequent section gives the dial-up procedure.

### Configuring Dial-Up Networking

1\. To start dial-up networking:

> a\. Click the Windows 95/98 **Start** button.
>
> b\. Click the **Programs** option to display the Programs menu.
>
> c\. Click the **Accessories** option to display the Accessories menu.
>
> d\. In Windows 95, click **Dial-Up Networking**.
>
> In Windows 98, click **Communications**, then **Dial-Up Networking**.
>
> If **Dial-Up Networking** is not an option on your Accessories menu,
> you should install it from your Windows 95/98 CD or diskettes.

2\. When the Dial-Up Networking window appears, double-click the **Make
New Connection** icon.

The Make New Connection window appears.

3\. Type ***FCC Auctions 877#*** in the field titled *Type a name for
the computer you are dialing.*

4\. In Windows 95, click the down arrow at the right of the *Select a
modem* field and select your modem from the menu of available modems.

> In Windows 98, click the down arrow at the right of the *Select a
> device* field and select your modem from the menu of available
> devices.
>
> If your modem does not appear on this list, you must install your
> modem driver according to the modem manufacturer installation
> procedures, which are usually described in your modem's user manual.

5\. Click the **Next** button.

6.  Type ***877*** and ***844-2788*** in the *Area Code* and *Telephone
    Number* fields, respectively.

> If you need to dial *9* or some other digit to get an outside line,
> include that digit in the *Area Code* field. For example, you might
> type ***9, 1 877*** in this field.

7\. Verify that the correct country is selected in the *Country code*
field.

> If necessary, click the down arrow at the right of the *Country code*
> field and select the appropriate country from the menu of available
> countries.

8\. Click the **Next** button.

9\. Click the **Finish** button.

> An icon labeled *FCC Auctions 877#* appears in the Dial-Up Networking
> window.

10\. Verify that properties are configured correctly before attempting a
dial-up session. Put the mouse pointer on the icon and click the
**right** mouse button to display a menu. Click **Properties** from the
menu.

11\. Click the **Configure** button. Click the **Options** tab at the
top of the Properties window.

12\. In the *Connection control* area of the Options tab, verify that
*[neither]{.underline}* option is selected. If either option is
selected, click the check box at the left of the option to deselect it.
Then click **OK**.

13\. In Windows 95, click the **Server Type\...** button.

In Windows 98, click the **Server Types** tab at the top of the
Properties window.

14\. In the *Advanced Options* area, verify that **only** *Enable
software compression* is selected. If it is not selected, click the
check box at the left of the option to select it. If either of the other
options is selected, click the check box to deselect it.

15\. In the *Allowed Network Protocols* area, **verify that only
*TCP/IP* is selected**.

> If it is not selected, click the check box at the left of the option
> to select it. If either of the other options is selected, click the
> check box to deselect it.

16\. Click the **TCP/IP Settings** button. On the TCP/IP Settings
window, select *Server assigned IP addresses* at the top and select
*Specify name server addresses* midway down the window.

17\. Type ***165.135.79.95*** as the Primary DNS and
***165.135.241.149*** as the Secondary DNS.

Ensure that these two options are checked:

-   Use IP header compression

-   Use default gateway or remote network

18. Click **OK** on the *TCP/IP Settings* window and the *Server Type*
    window.

19. Close the *Dial-Up Networking* window.

### Dial-Up Procedure

1.  If the Dial-Up Networking window is not currently open, do the
    following:

> a\. Click the Windows 95/98 **Start** button.
>
> b\. Click the **Programs** option to display the Programs menu.
>
> c\. Click the **Accessories** option to display the Accessories menu.
>
> d\. In Windows 95, click **Dial-Up Networking**
>
> In Windows 98, click **Communications**, then **Dial-Up Networking**.

The Dial-Up Networking window appears.

2\. In the Dial-Up Networking window, double-click the **FCC Auctions
877#** icon.

3\. Click the **Connect** button on the window. *[Do not enter User name
or Password]{.underline}*.

> The Connection window appears, indicating the status of your
> connection as your modem dials into the system. This window must
> remain running during your dial-up session. You may minimize the
> window, if you wish.
>
> If your modem fails to establish a connection, please see the
> *Troubleshooting* section.

## Submitting FCC Form 175 Applications

After you have connected to the FCC Network, start your Netscape Web
browser. In your browser's *Location* field, enter
***http://wtbwww15.fcc.gov*** (primary location) or
***http://wtbwww34.fcc.gov*** (secondary location) and then click **175
Submit**.

> **Note:** The *wtbwww34* location can only be accessed through dial-up
> networking; it cannot be accessed through the Internet.

When uploading attachments in FCC Form 175 Submission, applicants may
use a variety of file formats \-- including Word 97 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.

After you upload an attachment and it has been converted, check to see
if it converted properly by selecting the PDF filename in the rightmost
column. The conversion process generally completes within thirty
minutes. If you are unable to read this file after it has been
converted, please do the following:

1.  Re-upload the attachment.

2.  If the file still has not 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.

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

When you have finished, exit your Web browser; then click the
**Disconnect** button on the Connection window to end your dial-up
session.

## Removing the Dial-Up Networking Service

Once you have finished using the dial-up networking service, you can
remove it from your computer, by deleting the **FCC Auctions 877#** icon
from the Dial-Up Networking window. Do the following:

1.  Click the Windows 95/98 **Start** button.

2.  Click the **Programs** option to display the Programs menu.

3.  Click the **Accessories** option to display the Accessories menu.

4.  In Windows 95, click **Dial-Up Networking**.

> In Windows 98, click **Communications**, then **Dial-Up Networking**.

5.  In the Dial-Up Networking window, click the **FCC Auctions 877#**
    icon with your *right* mouse button and then click the **Delete**
    option in the pull-down menu.

## Troubleshooting

Following are solutions to problems you may encounter using FCC Dial-Up
Networking:

### Modem does not respond

1.  Confirm that all physical connections for the modem are present.

2.  Confirm that the phone line is active by connecting it to a
    telephone and checking for a dial-tone.

3.  Confirm that the correct modem driver is installed for your modem.

### Modem dials but does not connect

1.  Confirm that the number the modem is dialing is correct.

```{=html}
<!-- -->
```
2.  Confirm that the modem prefix, if any, is correct.

***Using a Backup Dial-In Number.*** If the number and prefix are
correct, the 877 number being dialed may be experiencing problems. In
this case, you can reconfigure the dial-up software using an alternate
dial-in number, which is also toll-free. To use the backup number,
perform the *Configuring Dial-Up Networking* procedure again, but this
time make the following changes:

-   In Step 3, type ***FCC Auctions 800#*** in the field titled *Type a
    name for the computer you are dialing.*

-   In Step 6, type ***800*** and ***378-7435*** in the *Area Code* and
    *Telephone Number* fields, respectively.

-   In Step 17, type ***165.135.241.149*** as the Primary DNS.

### Modem dials and connects, but nothing appears when you enter the Location in the Web browser 

1.  Verify the Dial-Up Networking settings specified in the *Configuring
    Dial-Up* *Networking* section.

2.  Confirm that your Web browser is not using proxies:

```{=html}
<!-- -->
```
a)  On your browser, click the **Preferences** option in the Edit menu.

b)  In the Category area at the left, double-click **Advanced**.

c)  Click the Advanced structure's **Proxies** option.

d)  Click the radio button labeled **Direct connection to the
    Internet**.

e)  Click the **OK** button at the bottom of the window.

### Receive an Internal Server error in the Web browser 

1.  Confirm that the *Location* is set to ***http://wtbwww15.fcc.gov***
    or ***http://wtbwww34.fcc.gov***

2.  On your browser, click the **Preferences** option in the Edit menu.
    In the Category area at the left, double-click **Advanced**. In the
    area at the top, confirm that *Enable Java* and *Enable JavaScript*
    are selected. In the Cookies area, confirm that *Accept all cookies*
    is selected.

## Help

# For technical assistance with installing or 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.*  {#for-technical-assistance-with-installing-or-using-fcc-software-contact-the-fcc-technical-support-hotline-at-202-4141250-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. .unnumbered}

#  {#section .unnumbered}

# Attachment G {#attachment-g .unnumbered}

**FCC BIDDING PREFERENCE/**

**REMOTE SECURITY ACCESS CARDS SOFTWARE ORDER FORM**

**Auction No. 31**

***All qualified applicants who plan to participate in this auction
[must]{.underline} complete the form below.***

Qualified bidders are permitted to bid electronically or telephonically.
Each bidder choosing to bid electronically must purchase their own FCC
Remote Security Access SecurID Cards software. Electronic bids will only
be accepted from those applicants purchasing the SecurID cards software.
(Telephonic bidders will be supplied with security login codes in lieu
of using the SecurID cards software.)

The price of the FCC Remote Security Access SecurID Cards software
package is **\$175.00**, which includes a user manual and shipping
costs. For security purposes, the FCC Remote Security Access SecurID
Cards software package is only mailed to the contact person at the
contract address listed on the FCC Form 175.

Completed forms should be printed and either faxed or mailed to the
address below, ensuring receipt by no later than 6:00 p.m. ET on
**Tuesday, February 20, 2001.**

FCC BIDDING PREFERENCE (Auction No. 31)

[Auction Operations Branch]{.underline}

1270 Fairfield Rd.

Gettysburg, PA 17325-7245

**FAX: 717-338-2850**

Auction Applicant:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

FCC Assigned Account No. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Contact Phone: \_\_\_\_\_\_\_\_\_\_\_\_\_

Contact
Name:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Contact Address:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Contact City: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Contact State: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Contact Zip: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Contact Fax: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Bidding Preference: \_\_\_\_ Electronic \_\_\_\_ Telephonic Only (no
money is due and no security software cards will be sent)

Payment of \$175.00 US by: \_\_\_\_ Check (payable to FCC) \_\_\_\_
MasterCard \_\_\_\_ Visa

Credit card number
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Expiration
date \_\_\_\_\_\_\_\_\_\_\_\_

Name on card
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Authorized signature
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date \_\_\_\_\_\_\_\_\_\_\_

#  {#section-1 .unnumbered}

[^1]: *See* 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*, FCC
    00-274, 15 FCC Rcd. 15293, (rel. August 14, 2000), 65 Fed Reg. 52323
    (August 29, 2000) ("*Part 1 Fifth Report and Order*"); *See also*
    Amendment of Part 1 of the Commission's Rules -- Competitive Bidding
    Procedures, WT Docket No. 97-82, *Erratum*, DA 00-2475 (rel Nov. 3,
    2000).

[^2]: *See* Auction of Licenses in the 747-762 and 777-762 and 777-792
    MHz Bands Scheduled for September 6, 2000, Procedures Implementing
    Package Bidding for Auction No. 31; Bidder Seminar Scheduled for
    July 24, 2000, *Public Notice*, DA 00-1486, 15 FCC Rcd 11526, (rel.
    July 3, 2000) ("*Auction No. 31 Package Bidding Procedures Public
    Notice*").

[^3]: The Bureau issued a *Public Notice* that announced the procedures
    that will govern the overall conduct of Auction No. 31. *See*
    Auction of Licenses in the 747-762 and 777-792 MHz Bands; Auction
    Notice and Filing Requirements for 12 Licenses in the 700 MHz Bands
    Auction Scheduled for May 10, 2000; Minimum Opening Bids and Other
    Auction Procedural Issues, *Public Notice*, DA 00-292, 15 FCC Rcd
    2921 (rel. Feb. 18, 2000), 65 Fed. Reg. 12251 (Mar. 8, 2000)
    ("*Auction No. 31 Procedures Public Notice*"). The auction
    procedures announced in the *Auction No. 31 Procedures Public
    Notice* remain in effect except as modified by: (i) this *Public*
    *Notice;* (ii) the *Auction 31 Package Bidding Procedures Public
    Notice, above*; (iii) the *Public Notice* issued by the Commission
    that rescheduled Auction No. 31, s*ee* Auction of Licenses for the
    747-762 and 777-792 MHz Bands Postponed until March 6, 2001, WT
    Docket No. 99-168, *Public Notice*, FCC 00-282 (rel. July 31, 2000)
    ("*Bidder Postponement Public Notice*"); and (iv) changes in the
    Competitive Bidding Rules (*See Part 1 Fifth Report and Order,
    supra)*.

[^4]: *See* Auction of Licenses in the 747-762 and 777-792 MHz Bands
    Scheduled for March 6, 2001, Comment Sought on Modifying the
    Calculation for Determining Minimum Accepted Bids and Changing the
    Provisions Concerning "Last and Best" Bids, *Public Notice*, DA
    00-2404 (rel. November 2, 2000), 65 Fed. Reg. 66752 (November 7,
    2000) ("*Auction No. 31* *Package Bidding Further Comment Public
    Notice*").

[^5]: *See* Comments of Verizon Wireless (filed November 15, 2000).

[^6]: *See* Discussion of the Novel Auction Rules Should Not Be Limited
    to a Few Details, Comments on DA 00-2404, "Comment Sought on
    Modifying the Calculation for Determining Minimum Accepted Bids and
    Changing the Provisions Concerning *Last and Best Bids*" Report No.
    AUC-00-31-I (Auction No. 31), filed by Aleksandar Pekec and Michael
    H. Rothkopf, (filed November 15, 2000) ("Pekec and Rothkopf
    Comments").

[^7]: *See* The FCC Rules for the 700 MHz Auction: A Potential Disaster,
    California Institute of Technology, Charles R. Plott, ("Plott
    Comments") (filed November 15, 2000).

[^8]: The *Auction No. 31 Package Bidding Further Comment Public Notice*
    allowed interested parties until November 22, 2000, to file reply
    comments. No replies were filed, but on November 26, 2000, Paul
    Milgrom submitted to the Auctions and Industry Analysis Division
    "Putting Auction Theory to Work: Ascending Auctions with Package
    Bidding" ("Milgrom Comments").

[^9]: *See* 15 FCC Rcd. at 11545-11547.

[^10]: Prior to the auction, licenses are assigned a specific number of
    *bidding units* for the purpose of calculating bidder compliance
    with the activity rules. The number of bidding units assigned to a
    license is fixed and does not increase as prices rise during the
    auction.

[^11]: *See Auction No. 31 Package Bidding Further Comment Public
    Notice, supra,* pp. 2-4.

[^12]: The *provisionally winning* *bid* *set* at the end of each round
    consist of those non-mutually exclusive considered bids that
    maximize revenue while assigning each license only once.

[^13]: *See Auction No. 31 Package Bidding Further Comment Public
    Notice, supra,* pp. 2-4.

[^14]: *Id.*

[^15]: *Id.*

[^16]: *See* Pekec and Rothkopf Comments, at 1-2.

[^17]: *Id.*

[^18]: *See* Section II, *infra*.

[^19]: *See Auction No. 31 Package Bidding Further Comment Public
    Notice,* at 4.

[^20]: A global package is a package that contains all twelve of the
    licenses in Auction No. 31.

[^21]: *Id.*

    *.*

[^22]: *See* Pekec and Rothkopf Comments, *above* at 3.

[^23]: Minimum acceptable bids are bidder specific and there are 4,095
    (2^12^ - 1 = 4,095) possible combinations of licenses in this
    auction. The base for both part two and part three of the formula is
    the particular bidder's previous high bid on that license or
    package, and the deficit (to determine the increment) for part three
    of the formula is also bidder specific. The shortfall and the
    deficit for a specific license/package may vary across bidders not
    only because the bid amount for that license/package is bidder
    specific, but also because the other bids in the shortfall set may
    differ because of the bidder specific mutual exclusivity of bids.

[^24]: Our revision of the formula for determining minimum acceptable
    bids should ensure a reasonable auction pace and a timely close of
    the auction. *See* 15 FCC Rcd. at 11543-11547. If a bid has no
    prospect of becoming a provisional winner, it has no potential to
    increase auction revenue and will do nothing to move the auction
    towards completion.

[^25]: *See Auction No. 31 Package Bidding Further Comment Public
    Notice,* at 4. With respect to bids for the global package, we will
    apply the three-part calculation as modified because the shortfall
    and deficit are so simple to calculate. Because a bid for the global
    package could never become a provisional winner unless it equals the
    maximum revenue from the previous round, the initial minimum
    acceptable bid of a global package will be a percentage of the
    maximum revenue from the previous round.

[^26]: A *constructed* package is a package created any time during the
    auction before the close of the prior round and not removed by the
    bidder. Thus, it is either (a) a package already bid by that bidder
    and will be counted as one of the bidder's twelve packages, or (b)
    it is a package that the bidder created before the close of the
    prior round but neither bid on nor removed. The publicly available
    round result files posted at the end of each round will *not*
    include information about packages that have been constructed but
    not bid upon. In this way, bidders may construct packages without
    disclosing backup business strategies to other bidders.

[^27]: *See Auction No. 31 Package Bidding Further Comment Public
    Notice,* at 5.

[^28]: The *round solver* is software developed to determine the
    provisionally winning bids at the end of each round.

[^29]: *See Auction No. 31 Package Bidding Further Comment Public
    Notice,* at 5.

[^30]: *See* Pekec and Rothkopf Comments, at 1.

[^31]: *See* Verizon Comments, at 1.

[^32]: *Id.* at 2.

[^33]: *See* Verizon Comments, at 2*.*

[^34]: *Id.*

[^35]: *Id.* at 3.

[^36]: In applying activity rules, bidding activity for
    [each]{.underline} of the sets of last and best bids must not exceed
    current eligibility, as determined at the beginning of the round in
    which these bids are placed. In other words, eligibility for the
    second set of last and best bids will not be recalculated based on
    eligibility activity associated with the first set of bids.

[^37]: *See* 15 FCC Rcd. at 11550.

[^38]: *See* footnotes 7 and 8, *supra*.

[^39]: The *Bidder Postponement* *Public Notice* did not provide a date
    for the Bidders' Seminar. This *Public Notice*, therefore, announces
    the date for the Bidders' Seminar. (*See also* Attachment C)

[^40]: The Bureau amended Attachment J to add the digital television
    stations that must also be protected from interference during the
    transitional period. *See* 747-762 and 777-792 MHz Band Auction
    Filing Dates and Changes to Attachment J, *Public Notice*, DA
    00-785, 15 FCC Rcd 6196 (rel. April 12, 2000). This minor correction
    reinforced and highlighted the requirement that new licensees in the
    747-762 and 777-792 MHz bands must provide full protection to both
    analog television and digital television operations during the
    transitional period.

[^41]: *See* 15 FCC Rcd at 2930.

[^42]: *See* 15 FCC Rcd. at 6198-6202.

[^43]: *See Part 1 Fifth Report and Order, supra.*

[^44]: See 47 C.F.R. §§ 1.2105 and 1.2112. Section 1.2105 requires the
    disclosure on the short-form of applicant ownership information as
    set forth in Section 1.2112. Both sections were revised in the *Part
    1 Fifth Report and Order, supra.*

[^45]: 47 C.F.R. § 1.2105(a)(2)(x).

[^46]: 47 C.F.R. § 1.2105(a)(2)(xi). *See also* Part 1 Fifth Report and
    Order, *supra* at ¶ 42.

[^47]: 47 C.F.R. § 1.2106(a).

[^48]: 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); *See also 700 MHz First Report & Order,* at
    ¶ 149.

[^49]: *See Auction No. 31 Procedures Public Notice,* at Attachment A.

[^50]: Bidders are also reminded that in Auction No. 31 only, the
    Commission has determined that bidders that default on their bids
    will be subject to an additional payment of 25 percent of the
    subsequent winning bid(s) or the defaulting bids, whichever is less.
    *See* In the Matter of 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, *Second Memorandum Opinion and Order*, FCC 00-330 (rel.
    September 14, 2000).

[^51]: *Part 1 Fifth Report and Order*, ¶¶ 40-42; 47 C.F.R. § 1.2106(a).

[^52]: *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).

[^53]: *See* Auction of Licenses in the 747-762 and 777-762 and 777-792
    MHz Bands Scheduled for September 6, 2000, Procedures Implementing
    Package Bidding for Auction No. 31; Bidder Seminar Scheduled for
    July 24, 2000, *Public Notice*, DA 00-1486, 15 FCC Rcd 11526, 11554
    (rel July 3, 2000) ("*Auction No. 31 Package Bidding Procedures
    Public Notice*").

[^54]: *Id.* 15 FCC Rcd. at 11532.

[^55]: *See Auction No. 31 Package Bidding Procedures Public Notice,* 15
    FCC Rcd. at 11533.

[^56]: *Id.* 15 FCC Rcd. at 11543-11547; *see also* Auction of Licenses
    in the 747-762 and 777-792 MHz Bands Scheduled for March 6, 2001,
    Modifications to the Calculation for Determining Minimum Acceptable
    Bids and Changing the Provisions Concerning Last and Best Bids and
    Other Procedural Issues, Bidder Seminar Scheduled for January 23,
    2001 and Test of Package Bidding System Set For January 24, 25, and
    26, 2001, *Public Notice*, DA 01-12, January 5, 2001, at 2-4.
    ("*Auction No. 31 Package Bidding Further Procedures Public
    Notice*").

[^57]: *Id.* 15 FCC Rcd. at 11543.

[^58]: *Id.* 15 FCC Rcd. at 11545.

[^59]: *Id.* 15 FCC Rcd. at 11545-47; see also *Auction No. 31 Package
    Bidding Further Procedures Public Notice* at 2-4.

[^60]: A *constructed* package is a package created any time during the
    auction before the close of the prior round and not removed by the
    bidder. Thus, it is either (a) a package already bid by that bidder
    and will be counted as one of the bidder's twelve packages, or (b)
    it is a package that the bidder created before the close of the
    prior round but neither bid on nor removed.

[^61]: *Id.*

[^62]: *Id.*

[^63]: *See Auction No. 31 Package Bidding Further Procedures Public
    Notice* at 4.

[^64]: *See Auction No. 31 Package Bidding Further Comment Public
    Notice,* at 4; *see also* *Auction No. 31 Package Bidding Further
    Procedures Public Notice* at 4.

[^65]: *See* 15 FCC Rcd. at 11547.

[^66]: *Id.*

[^67]: *See Auction No. 31 Package Bidding Further Procedures Public
    Notice* at 5-6.

[^68]: *Id.*

[^69]: *Id.*

[^70]: *Id.* In applying activity rules, bidding activity for
    [each]{.underline} of the sets of last and best bids must not exceed
    current eligibility, as determined at the beginning of the round in
    which these bids are place. In other words, eligibility for the
    second set of last and best bids will not be recalculated based on
    eligibility activity associated with the first set of bids.

[^71]: *See* 15 FCC Rcd. at 11548-50.

[^72]: *See* 15 FCC Rcd. at 11548.

[^73]: *Id.*

[^74]: 15 FCC Rcd. at 11553.

[^75]: *Id.*

[^76]: *See* 15 FCC Rcd. at 11549-51.

[^77]: *Id.*

[^78]: *Id.* at 11554.

[^79]: *Id.* at 11549-50.

[^80]: *See* 15 FCC Rcd at 11541-42. In addition, the Bureau has
    discretion to employ a Special Stopping Rule. *See id.*

[^81]: *Id.* at 11541.

[^82]: *See* 15 FCC Rcd at 11538.

[^83]: *Id.*

[^84]: *See* 15 FCC Rcd at 11536, 11554.

[^85]: *See* 15 FCC Rcd. at 11536-37.

[^86]: *See* 15 FCC Rcd. at 11540.

[^87]: *See* 15 FCC Rcd at 11539.

[^88]: *Id*. at 11539-40.