DA 01-2763
November 30, 2001
MULTIPLE ADDRESS SYSTEMS SPECTRUM
 AUCTION CLOSES
Winning Bidders Announced
Down Payments Due December 14, 2001
FCC Forms 601 and 602 Due December 14, 2001
Ten-Day Petition to Deny Period

Report No. AUC-01-42-F (Auction No. 42)

On November 27, 2001, the Federal Communications Commission completed the auction of 5,104 
licenses in the Multiple Address Systems Spectrum Auction (Auction No. 42), raising (in net high 
bids) a total of $1,202,725 for the U.S. Treasury.  13 winning bidders won a total of 878 licenses in this 
auction.

This Public Notice provides detailed information concerning winning bidders, down payments, bid 
withdrawal payments and/or deposits, FCC Forms 601 and 602 filing requirements, requests for rule 
waivers, and licensing matters.  Key information appears in the following attachments:

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

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

	Attachment C:		Withdrawal/Payment Report lists withdrawal bid payments owed by 
all bidders.

	Attachment D:		Instructions for Completing FCC Form 601 for Multiple Address 
Systems License Applicants provides detailed information about how a 
winning bidder should complete the required FCC Form 601 and FCC 
Form 602 for MAS license applications.

Attachment E:		Instructions for Using ULS to Register FRN and Call Signs With FCC 
and File FCC Form 601 Electronically. 

Attachment F: 	Accessing the FCC Network using Windows 95/98 for Universal 
Licensing System Filing.

A copy of this Public Notice will be sent via overnight mail to each winning bidder.  
	
A. Down Payments
The Commissions rules require that within ten business days after the release of this Public Notice, in 
this case 6:00 p.m. ET on December 14,  2001, winning bidders in Auction No. 42 must have on deposit 
with Mellon Bank in Pittsburgh, Pennsylvania, enough funds to cover 1) down payments on winning 
bids, and 2) payments for withdrawn bids, if applicable.  If a winning bidders upfront payment is not 
sufficient to meet both of these requirements, the winning bidder must deposit additional funds.  

The amount now due from each winning bidder, if any, is set out in the last column of Attachment B.  
Note that a payment and FCC Form 159 are necessary only if a winning bidders upfront payment does 
not cover the required total of down payments and withdrawn bid payments (as reflected in Attachment 
B).  Each winning bidders down payment must be a total of any withdrawal payments (if applicable) 
plus twenty (20) percent of its net winning bid(s).

B. Final Payments
After the termination of the licensing pleading cycle,  the Commission will issue a public notice 
announcing that it is prepared to grant the licenses.  Within ten business days after the date of that public 
notice, winning bidders will be required to make full payment of the balance of their winning bids.  
Licenses will be granted only after the full and timely payment of winning bids and any applicable late 
fees, in accordance with Section 1.2109(a).  

C. Method of Payment
All payments must be in U.S. dollars and made in the form of a wire transfer.  No personal checks, credit 
card payments, or other forms of payment will be accepted.  All payments must be accompanied by a 
completed FCC Remittance Advice Form (FCC Form 159).   If applicable, a partially completed copy of 
the FCC Form 159 will be sent along with this Public Notice to facilitate submission of the correct down 
payment.  Questions regarding FCC Form 159 should be addressed to Tim Dates or Gail Glasser at 202-
418-1995.  Please note, however, that winning bidders are ultimately responsible for insuring the 
verification and submission of the correct down payment from their bank to Mellon Bank. 

Wire transfer payments must be received by Mellon Bank by 6:00 p.m. ET, on December 14, 2001. 
Winning bidders should coordinate with their bankers ahead of time regarding their wire transfers, and 
allow sufficient time for the wire transfer to be initiated and completed prior to the deadline.  

To submit funds by wire transfer, winning bidders will need the following information: 

ABA Routing Number: 043000261
Receiving Bank: Mellon Pittsburgh
BNF:  FCC Account Number 910-6106 
OBI Field:   (Skip one space between each information item) AUCTIONPAY
TAXPAYER IDENTIFICATION NO. (same as FCC Form 159, Block 12)
PAYMENT TYPE CODE (enter A42D)	
FCC CODE 1 (same as FCC Form 159, Block 28A:  42)
PAYOR NAME (same as FCC Form 159, Block 2)
LOCKBOX NO.: 358850

Winning bidders must fax a completed FCC Form 159 to Mellon Bank at 412-209-6045 at least one hour 
before placing the order for the wire transfer (but on the same business day).

Proper completion of the FCC Form 159 is critical to ensuring correct credit of bidder deposits.  
Winning bidders must use the same Taxpayer Identification Number used on their FCC Form 
175.   Questions concerning the calculation and submission of down payments should be directed to Gail 
Glasser at 202-418-1995. 

D. 	Withdrawal, Default and Disqualification Payments

The Commission imposes payments on bidders that withdraw high bids during the course of an auction, 
default on payments due after an auction closes, or those that are disqualified.  

	1.  Bid Withdrawal Payments.  A bidder (Bidder X) that withdraws a high bid during the course 
of an auction is subject to a bid withdrawal payment equal to the difference between the amount 
withdrawn and the amount of the subsequent winning bid.  No withdrawal payment will be assessed for a 
withdrawn bid if either the subsequent winning bid or any of the intervening subsequent withdrawn bids 
equals or exceeds that withdrawn bid.  If a high bid is withdrawn on a license that remains unsold at the 
close of the auction, Bidder X will be required to make an interim payment equal to three (3) percent of 
the net amount of the withdrawn bid.   This payment amount is deducted from any upfront payments or 
down payments that Bidder X has deposited with the Commission.  If, in a subsequent auction, that 
license receives a valid bid in an amount equal to or greater than the withdrawn bid amount, then no final 
bid withdrawal payment will be assessed, and upon appropriate request, the Commission will refund the 
interim three (3) percent payment.  If, in a subsequent auction, the winning bid amount for that license is 
less than Bidder Xs withdrawn bid amount, then Bidder X will be required to make a final bid 
withdrawal payment equal to either the difference between Bidder Xs net withdrawn bid and the 
subsequent net winning bid, or the difference between Bidder Xs gross withdrawn bid and the 
subsequent gross winning bid, whichever is less.  The three (3) percent interim payment will be applied 
toward the withdrawal payment.

Attachment C identifies bidders that owe withdrawal payments to the Commission as a result of bid 
withdrawals made in Auction No. 42.  Any upfront payments or down payments that the withdrawing 
bidder has deposited with the Commission will first be applied to satisfy the withdrawal payment(s) 
amount before being applied towards a winning bidders down payment.  

	2.  Bid Default/Disqualification Payments.  If a high bidder defaults or is disqualified after the 
close of the auction, the defaulting bidder will be subject to the same bid withdrawal payment obligations 
as described above, plus an additional payment equal to three (3) percent of the subsequent winning bid 
or three (3) percent of the defaulted bid, whichever is less.  Where a bidding credit applies to the winning 
bid in either the original or the subsequent auction, the calculation of the three percent payment is based 
on the smaller of the two gross bids or smaller of the two net bids, whichever basis (gross or net) was 
used to figure the first component.  Thus, if the difference between the gross bids is less than the 
difference between the net bids, the three percent payment will be computed on the lower of the gross 
bids.  If the difference between the net bids is less than or equal to the difference between the gross bids, 
the three percent payment will be computed on the lower of the net bids.  However, if both the difference 
between the gross bids and the difference between the net bids are less than or equal to zero, the three 
percent payment will be computed on the lower of the net bids. 

If a winning bidder fails to remit the required down payment within ten (10) business days after the 
Commission has released this Public Notice, in this case by December 14, 2001, the bidder will be 
deemed to have defaulted, its application will be dismissed, and it will be liable for a default payment as 
described above.  In such event, the Commission, at its discretion, may either auction the spectrum to 
existing or new applicants, or offer it to the other highest bidders (in descending order) at their final 
bids.  

If a winning bidder fails to pay the balance of its winning bids in a lump sum by the applicable deadline 
as specified by the Commission, it will be allowed to make payment within ten (10) business days after 
the payment deadline provided that it also pays a late fee equal to five (5) percent of the amount due.  
When a winning bidder fails to pay the balance of its winning bid plus late fee by the late payment 
deadline, it is considered to be in default on its license(s) and subject to the applicable default payments. 

Licenses will be awarded upon the full and timely payment of winning bids and any applicable late 
fees.  A winning bidder that is found unqualified to be a licensee, fails to remit the balance of its 
winning bid in a timely manner, or defaults or is disqualified for any reason after having made the 
required down payment, will be deemed to have defaulted and will be liable for the payment set forth in 
Section 1.2104(g)(2).   In such event, the Commission may either auction the spectrum to existing or 
new applicants or offer it to the other highest bidders (in descending order) at their final bids. 

Additionally, bidders that are found to have violated the antitrust laws or the Commissions rules in 
connection with their participation in the competitive bidding process may be subject, in addition to any 
other applicable sanctions, to forfeiture of their upfront payment, down payment, or full bid amount, and 
may be prohibited from participating in future auctions.  

E.	Refund of Excess Upfront Payments 
Upfront monies on deposit that are in excess of the required down payment, withdrawal and/or default 
payment amounts will be refunded to the payer of record as identified on FCC Form 159 promptly upon 
receipt of the necessary wire transfer instructions.  Such instructions must be faxed to Gail Glasser at 
202-418-2843.  Any questions concerning refunds should be referred to Gail Glasser or Tim Dates at 
202-418-1995. 

F.	FCC Form 601    
By 6:00 p.m. ET on December 14, 2001, winning bidders must submit a completed long-form license 
application(s) covering each license for which they were the winning high bidder.  Attachment D sets 
out instructions for completing the FCC Form 601.  Applications must be filed electronically.  Detailed 
instructions for filing the Form 601 electronically are set out in Attachment E.  

Failure to timely file FCC Form 601 will result in default.  Late-filed applications will not be 
accepted without a showing of good cause. 

G.	Tribal Land Bidding Credit
The Commission has implemented a tribal land bidding credit to encourage the growth of wireless 
services in federally recognized tribal lands.  For information relating to the tribal land bidding credit, see 
Attachment D.

H.	FCC Form 602
Pursuant to Section 1.919 of the Commissions rules, an applicant for a license in an auctionable service 
must have on file with the Commission a current FCC Form 602 regarding ownership information of the 
applicant.  Therefore, unless the applicant already has a current FCC Form 602 on file with the 
Commission, the applicant must submit one at the time the FCC Form 601 is filed.  Any late-filed FCC 
Form 602 must contain a request for waiver of the filing requirement in 47 C.F.R.  1.919. 

FCC Form 602 must be filed manually (not electronically), and may be obtained from the Internet at 
http://www.fcc.gov/formpage.html or by calling the FCCs Form Distribution Center at 1-800-418-
FORM (3676).  For more detailed information on FCC Form 602, see Wireless Telecommunications 
Bureau Answers Frequently Asked Questions Concerning Reporting of Ownership Information on FCC 
Form 602, Public Notice, DA 99-1001 (rel. May 25, 1999).

Applicants that do not have a current FCC Form 602 on file should send the form to:

Federal Communications Commission
Rear entrance 35 York Street
Gettysburg, PA  17325

Filing an FCC Form 602 is a separate requirement from, and in addition to, the ownership reporting 
requirements associated with filing FCC Form 601, Exhibit A, as set forth in Attachment D.  However, to 
avoid duplication, applicants may provide certain information required in Exhibit A by attaching a copy 
of their FCC Form 602 (in Adobe PDF Format) to their FCC Form 601 submission.  Applicants are 
reminded, however, that an original FCC Form 602 still must be filed manually in Gettysburg, PA.  For 
further information, see Instructions in Attachment D.

I.	Applications for Multiple Licenses
Applicants may submit one FCC Form 601 (including all required schedules, attachments, and exhibits) 
and Form 602 for multiple licenses if all filing information (name and address information, all ownership 
and eligibility attachments, and waiver requests) associated with the application is identical.  Licensing 
information such as market designator, block, and/or market name may be different (i.e., 
MSBEA001AA Bangor, Maine; MSBEA176BC  Gulf of Mexico).

Filers whose name and address, ownership, eligibility, and waiver requests are identical for some licenses 
but different for other licenses must submit a separate Form 601 and 602 for those licenses for which 
filing information is unique.  The streamlined filing procedure described in the above paragraph may 
only be used for licenses that have identical filing information.

Applicants seeking a tribal land bidding credit for one or more markets are encouraged to submit two 
applications.  One application would include markets in which the applicant intends to apply for a tribal 
land bidding credit.  The other application would include those markets in which the applicant is not 
seeking a tribal land bidding credit. 

J.	Maintaining Accuracy of Information
After the auction closes, applicants are required to make all changes in the ULS system (Form 601). 
Applicants are no longer required to maintain accuracy and completeness of information furnished on 
their FCC Form 175 and exhibits. 

K.	Application Processing and License Grant
Pursuant to Section 1.2108(b)  of the Commissions rules and the Balanced Budget Act of 1997,  
interested parties will have ten (10) days to file petitions to deny after the Commission releases a public 
notice announcing the FCC Forms 601 and 602 are acceptable for filing.  An applicant may file an 
opposition to any petition to deny within five (5) business days after the time for filing petitions to deny 
has expired.  The petitioner may file a reply to such opposition within five (5) business days after the 
time for filing oppositions has expired.   If the Commission determines an applicant is qualified and 
there is no substantial and material issue of fact concerning that determination, the Commission will 
issue a public notice announcing that it is prepared to grant the application conditioned upon the full and 
timely payment of the remaining balance of the applicants winning bid.  Once the Commission has 
received full payment of the applicants winning bid, it will issue a public notice announcing grant of the 
license (or licenses) to the applicant.

Frivolous Pleadings.  The Commission reminds parties to our proceedings and their attorneys that the 
Commission intends to use its authority fully to deter the filing of frivolous pleadings.  

L.	Anti-collusion Rules
To ensure the competitiveness of the auction process, the Commissions rules prohibit applicants for the 
same geographic license area from communicating with each other during the auction about bids, bidding 
strategies, or settlements.  As explained more fully in the Auction No. 42 Procedures Public Notice,  this 
prohibition began with the filing of short-form applications and ends on the down payment due date, or 
December 14, 2001.   The prohibition ends on the down payment due date whether or not a high bidder 
must supplement its upfront payment to cover its down payment.  Applicants certified their compliance 
with Section 1.2105(c) when their FCC Form 175 short-form applications were signed.  

M. Return of SecurID Cards

Bidders are encouraged to return their SecurID cards to the FCC by December 14, 2001 for recycling.  A 
pre-addressed, stamped envelope is provided in this mailing that bidders should use to return the cards 
now that the auction is over.  Please note that each SecurID card is tailored to a specific auction, 
therefore, the cards issued for this auction will not work for future auctions.

*          *          *          *          *

For further information, contact

News Media:
Meribeth McCarrick at 202-418-0654

Technical Support Hotline:
Technical Support Personnel at 
202-414-1250  
or 202-414-1255 (text telephone (TTY))	

Office of the Managing Director 
Auctions Accounting Group
(Payment, FCC Form 159 and refund 
questions)
Gail Glasser or Tim Dates 
at 202-418-1995

Wireless Telecommunications Bureau,
Steve Buenzow, Engineer, at 717-338-2646 
Public Safety and Private Wireless Division
Michael Pollak, Engineer, at 202-418-0680 
(FCC Form 601and 602 questions)
Shellie Blakeney, Attorney, at 202-418-0680

Wireless Telecommunications Bureau, 
Auctions and Industry Analysis Division  
(Auction-related questions)
Barbara Sibert, Project Manager at 717-338-2888 
Francis Gutierrez, Attorney, at 202-418-0660

- FCC -
  	47 C.F.R.  1.2104(g), 1.2107(b). In the event a bidder has withdrawn a bid(s) and is subject to a bid 
withdrawal payment(s), the bidders upfront payment will be first applied to satisfy the withdrawal payment(s) 
before being applied toward its down payment.
  	47 C.F.R.  1.2108.
 	47 C.F.R.  1.2107(b) and 1.2109.
  	47 C.F.R. 1.2109(a).
  	Copies of the FCC Form 159 may be obtained by calling the Commissions Forms Distribution Center at 
1-800-418-3676 (outside Washington, D.C.) or 202-418-3676 (in the Washington D.C. area).  Copies of the FCC 
Form 159 can also be obtained via the Internet (http://www.fcc.gov/formpage.html) or by Fax-On-Demand (202-
418-2830).
 	If, subsequent to final submission of its FCC Form 175, a bidder has provided the Commission with a 
written correction of its Taxpayer Identification Number, the bidder should use the corrected number.
  	47 C.F.R.  1.2104(g), 1.2109.
 	47 C.F.R.  1.2104(g)(1); Amendment of Part 1 of the Commissions Rules  Competitive Bidding 
Procedures, Order on Reconsideration of the Third Report and Order, Fifth Report and Order, and Fourth 
Further Notice of Proposed Rule Making, 15 FCC Rcd 15293, 15301-302,  13-15 (2000); see also, 
Implementation of Section 309(j) of the Communications Act  Competitive Bidding, , Fifth Report and Order, 9 
FCC Rcd 5532, 5563 n.51 (1994); Phase II 220 MHz Service Auction Closes, Winning Bidders in the Auction of 
908 Phase II 220 MHz Service Licenses, Public Notice, 14 FCC Rcd 605 (1999). 
  	47 C.F.R.  1.2104(g)(1). 
  	47 C.F.R.  1.2109(b).
  	47 C.F.R. 1.2109(a).
  	47 C.F.R.  1.2104(g)(2).
  	47 C.F.R.  1.2109(c).
  	47 C.F.R.  1.2109(d).
 	47 C.F.R.  1.2107(c). 
  	47 C.F.R.  1.919.
  	Id.
  	47 C.F.R.  1.2108(b).
  	Pub. L. 105-33, 111 Stat. 251 (1997).
  	See 47 C.F.R. 1.2108(c).
  	Id.
 	See Commission Taking Tough Measures Against Frivolous Pleadings, Public Notice, 11 FCC Rcd 3030 
(1996). 
 	 See Multiple Address Systems Spectrum Auction Scheduled for November 14, 2001; Notice and Filing 
Requirements, Minimum Opening Bids, Upfront Payments and Other Procedural Issues, Public Notice, 16 FCC 
Rcd 14610 (2001) (Auction No. 42 Procedures Public Notice).
 	Id. at 7664-65. 
  	47 C.F.R. 1.2105(c). 
 

 
 

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PUBLIC NOTICE

		Federal Communications Commission
		445 12th St., S.W.
		Washington, D.C. 20554