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 PUBLIC  NOTICE  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 

 1  See  Amendment  of  Part  1  of  the  Commissions  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  Commissions  Rules   
 Competitive  Bidding  Procedures,  WT  Docket  No.  97-  82,  Erratum,  DA  00-  2475  (rel  Nov.  3,  2000). 

 News  media  information  202  /  418-  0500 
 Fax-  On-  Demand  202  /  418-  2830 
 TTY  202  /  418-  2555 
 Internet:  http://  www.  fcc.  gov 
 ftp.  fcc.  gov 
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 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 

 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,  see  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). 
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 I.  Calculation  for  Determining  Minimum  Acceptable  Bids 
 Background 
 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  bidders  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  bidders  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  bidders  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  auctions 
 pace.  15 

 Discussion. 
 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 

 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. 
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 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  bidders  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 

 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  bidders 
 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 
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 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. 

 II.  Last  and  Best  Bids 
 Background 
 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 
 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  bidders  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. 
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 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 
 bidders  bids  that  remain  in  the  provisionally  winning  set.  29 

 Discussion 
 In  their  comments,  Pekec  and  Rothkopf  state  that  the  Bureaus  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  Bureaus  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  Bureaus  decision  to  prohibit  from  further 
 bidding  a  bidder  that  chooses  to  make  a  last  and  best  bid.  32  Verizon  claims  that  the  Bureaus 
 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 

 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. 
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 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  bidders  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  bidders  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. 

 III.  Ties  with  the  FCC  at  the  Minimum  Opening  Bid 
 In  the  Auction  No.  31  Package  Bidding  Procedures  Public  Notice,  we  stated  that 

 36  In  applying  activity  rules,  bidding  activity  for  each  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. 
7
 8 
 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. 

 IV.  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. 

 V.  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 

 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) 
8
 9 
 Bidding  Preference  Form  Deadline  February  20,  2001;  6:  00  p.  m.  ET 
 Mock  Auction  March  1-  2,  2001 
 Auction  Start  Date  March  6,  2001 

 VI.  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. 

 VII.  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  Commissions  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  Bureaus  Consolidated  Database  System  on  the  Commissions  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 

 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. 
9
 10 
 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. 

 VIII.  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  Commissions  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  Commissions  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 

 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). 
10
 11 
 made  under  penalty  of  perjury  indicating  whether  or  not  the  applicant  (or  any  of  the  applicants 
 controlling  interests  or  their  affiliates,  as  defined  by  Section  1.  2110  of  the  Commissions  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. 

 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  Commissions  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). 
11
 12 
 IX.  Changes  to  Post  Auction  Procedures 
 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  Commissions 
 Order. 

 X.  Contact  Information 
 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. 

 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). 
12
 13 
 ATTACHMENT  A 
 Summary  of  Package  Bidding  Rules  for  700  MHz  Auction 
 I.  Available  Packages 
 x  A  bidder  may  bid  only  on  those  licenses  selected  on  its  Form  175  and  on  packages  created 
 from  those  licenses.  53 

 x  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. 

 II.  New  Bids 
 x  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  bidders  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  bidders  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 

 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 
13
 14 
 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  bidders  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 

 x  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 

 x  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 

 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  bidders  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. 
14
 15 
 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. 

 III.  Renewed  Bids 
 x  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  bidders  bids  on  a  license/  package  may  not  decrease.  73 

 x  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. 

 IV.  Determining  Winners 
 x  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  bidders  provisionally  winning  bids  at  the  end  of  the  previous  round.  75 

 x  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 

 70  Id.  In  applying  activity  rules,  bidding  activity  for  each  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. 
15
 16 
 x  Overlapping  bids  (bids  that  include  the  same  license)  by  the  same  bidder  in  the  same  round  are 
 treated  as  mutually  exclusive  (  or)  bids.  78 

 x  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. 

 x  The  winning  bids  are  the  provisionally  winning  bids  when  the  auction  closes. 

 x  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. 

 x  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. 

 V.  Closing  Rules 
 x  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  bidders  previous  high  bid.  81 

 x  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. 

 x  We  run  the  solver  after  every  round  except  the  last  round. 

 VI.  Activity  and  Eligibility 
 x  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. 

 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. 
16
 17 
 x  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  bidders  bidding  activity  in  the  current  round  must  be  less  than  or  equal  to  its  current 
 eligibility.  83 

 x  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  bidders  bidding  exposure  in  the  current  round 
 must  be  less  than  or  equal  to  its  initial  eligibility. 

 x  Initial  eligibility.  A  bidders  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. 

 x  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  bidders  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  bidders  bids  that 
 remain  in  the  provisionally  winning  set. 

 x  Current  eligibility.  A  bidders  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. 

 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. 
17
 18 
 x  Eligibility  activity  waivers.  If  a  bidders  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  bidders  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 

 86  See  15  FCC  Rcd.  at  11540. 
 87  See  15  FCC  Rcd  at  11539. 
 88  Id.  at  11539-  40. 
18
 19 
 ATTACHMENT  B 
 PACKAGE  BIDDING  ACTIVITY  CALCULATIONS 
 Name  Definition  Rule/  Application 
 Bidding  activity  Maximum  number  of  bidding  units  a  bidder  can  win  considering: 
 x  new  bids 
 x  renewed  provisionally  winning 

 bids 
 made  or  renewed  in  the  current  round. 

 Bidding  activity  d  current 
 eligibility 

 In  the  current  round,  a 
 bidder  may  not  place  new 
 bids  or  renew  provisionally 
 winning  bids  so  that  it  can 
 win  more  bidding  units  than 
 its  current  eligibility. 
 Bidding 
 exposure 
 Maximum  number  of  bidding  units  a 
 bidder  can  win  considering:  x 
 new  bids  x 
 renewed  provisionally  winning 
 bids  x 
 renewed  non-  provisionally 
 winning  bids 
 made  or  renewed  in  the  current  round. 

 Bidding  exposure  d  initial 
 eligibility 

 In  the  current  round,  a 
 bidder  may  not  place  new 
 bids  or  renew  provisionally 
 winning  or  non-provisionally 
 winning  bids 
 so  that  it  can  win  more 
 bidding  units  than  its  initial 
 eligibility. 
 Eligibility 
 activity 
 Maximum  number  of  bidding  units  a 
 bidder  can  win  considering:  x 
 new  bids  x 
 renewed  provisionally  winning 
 bids 
 made  or  renewed  in  the  current  round,  x 
 provisionally  winning  bids  at  the 
 end  of  the  previous  round. 

 Eligibility  activity  =  max  [bidding 
 activity,  bidding  units  associated  with 
 a  bidders  provisionally  winning  bids] 

 Eligibility(  t+  1)  =  min 
 [eligibility(  t),  2  x  eligibility 
 activity(  t)] 

 A  bidders  eligibility  in  the 
 current  round  is  the  lesser 
 of:  (i)  its  eligibility  in  the 
 previous  round,  or  (ii)  twice 
 its  eligibility  activity  in  the 
 previous  round,  if  it  does 
 not  use  a  waiver  and  the 
 required  bidding  activity 
 level  is  50%. 
19
 20 
 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 

 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 

 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:  ______________________________ 
20
 21 
 ATTACHMENT  D 
 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 
 applicants  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 
21
 22 
 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  FCCs  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: 

 1.  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  Part  nership  Name,  cit  izenship,  and  address  of  each  limited  part  ner  whose  int  erest 
 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  Liabilit  y  Corporat  ion  Corporat  e  name  and  address;  and  name,  address,  and  cit  izenship  of 
 all  members 
22
 23 
 Applicant  Status  Required  Information 
 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 

 2.  Ownership  Information 
 Applicant  Status  Required  Information 
 All  applicant  s  Name,  cit  izenship,  and  address  of  all  cont  rolling  int  erest  s  of  the 
 applicant  as  defined  in  47  C.  F.  R.    1.2110  and  1.2112. 

 All  applicant  s  Name,  cit  izenship,  and  address  of  all  part  ies  holding  10  percent  or 
 more  of  each  class  of  stock,  warrants,  options  or  debt  securities  and 
 the  amount  and  percentage  held. 

 All  applicant  s  Name  of  all  part  ies  holding  a  10  percent  or  great  er  int  erest  in  the 
 applicant  and  the  specific  amount  held. 

 All  applicant  s  List  of  all  part  ies  holding  indirect  ownership  int  erest  s  in  the  applicant 
 as  det  ermined  by  successive  mult  iplicat  ion  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 
 int  erest  in  the  applicant  would  be  25%  (t  he  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  int  erest  in  the  applicant  need  not  be 
 report  ed.  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 
23
 24 
 Applicant  Status  Required  Information 
 c.  a  cont  rolling  int  erest  that  owns  a  10  percent  or  great  er  int  erest 
 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 
 underst  andings  which  relat  e  in  any  way  to  the  licenses  being  auct  ioned,  including  any  relat  ing  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 
 ent  er  int  o  any  explicit  or  implicit  agreement  s  or  underst  andings  of  any  kind  wit  h  part  ies  not  ident  ified  in 
 t  he  applicat  ion  regarding  bid  amount  s,  bidding  st  rat  egies,  or  the  part  icular  licenses  the  applicant  will  or 
 will  not  bid.  See  47  C.  F.  R.  1.2105(  a)(  2)(  ix).  To  prevent  collusion,  the  Commissions  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:  Applicant  s  claiming  st  at  us  as  a 
 very  small  business  or  small  business  must  attach  an  exhibit  providing  the  following  information 
 regarding  this  status. 
24
 25 
 Entity  Required  Information 
 Applicant  Average  annual  gross  revenues  for  the  preceding  three  years  set 
 forth  both  separately  (e.  g.,  for  each  of  the  three  preceding  three 
 years  individually)  and  in  the  aggregate  (for  all  of  the  preceding 
 three  years  combined).  Certification  that  the  average  annual  gross 
 revenues  for  the  preceding  three  years  do  not  exceed  the  required 
 limit,  or  providing  average  gross  revenues  for  the  3-  year  period 
 without  providing  the  gross  revenues  for  each  of  the  preceding 
 three  years,  is  insufficient. 

 Applicant's  Affiliates 
 See  47  CFR    1.2110 
 Same  information  required  as  discussed  above 

 Applicant's  Controlling 
 Interests  See  47  CFR   
 1.2110  and  1.2112. 

 Same  information  required  as  discussed  above 

 Example.  The  applicant  had  gross  revenues  of  $500,000  in  1997, 
 $1,000,000  in  1998,  and  $3,000,000  in  1999,  with  average  gross 
 revenues  for  that  time  period  of  $1,500,000.  The  applicant  owns 
 60%  of  Company  A,  making  Company  A  an  affiliate  of  the 
 applicant  under  Sections  1.2110  and  1.2112,  and  Company  B  owns 
 52%  of  the  applicant,  making  Company  B  a  controlling  interest  of 
 the  applicant.  (Id.)  The  applicant's  Exhibit  C  would  look  like  this: 

 Applicant  Name 
 1997  gross  revenues  $  500,000 
 1998  gross  revenues  $  1,000,000 
 1999  gross  revenues  $  3,000,000 
 Average  gross  revenues 
 for  the  preceding  3  years  $  1,500,000 
 Company  A  (an  affiliate  of  the  applicant) 
 1997  gross  revenues  $  enter  amount 
 1998  gross  revenues  $  enter  amount 
 1999  gross  revenues  $  enter  amount 
 Average  gross  revenues  for 
 the  preceding  3  years 
 $  enter  amount 

 Company  B  (a  controlling  interest  in  the  applicant) 
 1997  gross  revenues  $  enter  amount 
25
 26 
 Entity  Required  Information 
 1998  gross  revenues  $  enter  amount 

 1999  gross  revenues  $  enter  amount 
 Average  gross  revenues  for 
 the  preceding  3  years 
 $  enter  amount 

 TOTAL:  combined  average  gross  revenues  for  the 
 preceding  three  years  of  the  applicant,  the 
 applicant's  affiliates  and  their  controlling 
 interests 

 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:  Applicant  s  owned  by  minorit  ies  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  monit  oring  the  part  icipat  ion  of  these  designat  ed 
 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 
 writ  ing  to  Margaret  Weiner,  Chief,  Auct  ions  and  Indust  ry  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 
 applicant  s  qualificat  ions,  the  FCC  envisions  that  confident  ialit  y  request  s  will  not  be  rout  inely  grant  ed. 

 Waivers:  Applicants  requesting  waiver  of  any  rules  must  submit  a  statement  of  reasons  sufficient  to 
26
 27 
 just  ify  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  forms  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  FCCs  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. 
27
 28 
 Attachment  E  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. 

 I.  Minimum  Hardware  and  Software  Requirements  Applicants  will  need  to  meet  the  following  minimum  hardware  and  software  requirements: 

 II.  Minimum  Hardware  Requirements 
 x  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 

 III.  Minimum  Software  Requirements 
 Operating  System:  Microsoft  Windows  95  or  98 

 Web  Browser:  Netscape  Communicator  4.7x  is  recommended. 
 PDF  Viewer:  Adobe  Acrobat  Reader  3.0  or  higher  (available  at  http://  www.  adobe.  com) 

 IV.  Submitting  FCC  Form  175  Applications  You  can  submit  FCC  Form  175  applications  electronically  via  the  Internet.  Start  your  Netscape 
 Web  browser.  In  your  browsers  Location  field,  enter  http://  wtbwww15.fcc.  gov  and  then  click 
 175  Submit. 
28
 29 
 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: 

 x  Graphics  files  (e.  g.,  .bmp,  .tiff,  .jpg)  and  spreadsheets  (e.  g.,  Excel,  Lotus)  are  not  supported, 
 x  Word  processing  files  that  are  uploaded  may  not  contain  graphic  images. 
 x  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.  x 
 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. 

 V.  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  browsers 
 Location  field,  enter  http://  wtbwww15.fcc.  gov  and  then  click  175  Review. 

 VI.  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. 
29
 30 
 Attachment  F 
 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. 

 I.  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  italic  Represents  characters  that  you  must  type  exactly  as  they  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. 

 II.  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. 

 III.  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. 
30
 31 
 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 
 modems  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  option  is  selected.  If 
 either  option  is  selected,  click  the  check  box  at  the  left  of  the  option  to  deselect  it.  Then 
 click  OK. 
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 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: 

 x  Use  IP  header  compression 
 x  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. 

 IV.  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. 
 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. 
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 V.  Submitting  FCC  Form  175  Applications  After  you  have  connected  to  the  FCC  Network,  start  your  Netscape  Web  browser.  In  your 
 browsers  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: 

 x  Graphics  files  (e.  g.,  .bmp,  .tiff,  .jpg)  and  spreadsheets  (e.  g.,  Excel,  Lotus)  are  not  supported, 
 x  Word  processing  files  that  are  uploaded  may  not  contain  graphic  images. 
 x  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.  x 
 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. 

 VI.  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 
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 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. 

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

 VIII.  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. 
 IX.  Modem  dials  but  does  not  connect 
 1.  Confirm  that  the  number  the  modem  is  dialing  is  correct. 

 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: 

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

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

 x  In  Step  17,  type  165.135.241.149  as  the  Primary  DNS. 
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 X.  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: 
 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  structures  Proxies  option. 
 d)  Click  the  radio  button  labeled  Direct  connection  to  the  Internet. 
 e)  Click  the  OK  button  at  the  bottom  of  the  window. 

 XI.  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. 

 XII.  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. 
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 Attachment  G 
 FCC  BIDDING  PREFERENCE/ 
 REMOTE  SECURITY  ACCESS  CARDS  SOFTWARE  ORDER  FORM 
 Auction  No.  31 

 All  qualified  applicants  who  plan  to  participate  in  this  auction  must  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 
 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  ___________ 
36