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                                Before the
             FEDERAL COMMUNICATIONS COMMISSION     DA 95-1614
                          Washington, D.C.  20554
In the Matter of             )
                                        )
Implementation of Section 309(j)        )
of the Communications Act -  )           PP Docket No. 93-253
Competitive Bidding          )
      )
Amendment of the Commission's)
Cellular PCS Cross-Ownership Rule  )    GN Docket No. 90-314
      )
Implementation of Sections 3(n) and 332 )
of the Communications Act    )          GN Docket No. 93-252
Regulatory Treatment of Mobile Services )
      )
                                  ERRATUM
            Released:  July 19, 1995
 This Erratum revises the Sixth Report and Order in the above-captioned proceeding,
FCC 95-301 (rel. July 18, 1995).  The Sixth Report and Order inadvertently deleted part of
Section 24.715 of the Commission's Rules as well as included several typographical errors in
other sections of the Commission's Rules.  The revised text of the complete rules is attached
as Appendix A to the Erratum.  The revisions included in Appendix A have been made prior
to publication in the FCC Record and Federal Register and thus will be incorporated into the
published document.
                  FEDERAL COMMUNICATIONS COMMISSION
                  Kathleen O. Ham
                  Chief, Auctions Division
                  Wireless Telecommunications Bureau                                APPENDIX A
                                FINAL RULES
Parts 20 and 24 of Chapter I of Title 47 of the Code of Federal Regulations are amended as
follows:
PART 20 - COMMERCIAL MOBILE RADIO SERVICES
1.  The authority citation for Part 20 continues to read as follows:
AUTHORITY:  Secs. 4, 303, and 332, 48 Stat. 1066, 1082, as amended; 47 U.S.C.  154,
303, and 332, unless otherwise noted.
2.  Section 20.6 is amended by revising paragraph (d)(2) to read as follows:
 20.6 CMRS spectrum aggregation limit.
* * * * *
(d)* * *
(2)      Partnership and other ownership interests and any stock interest amounting to 20
percent or more of the equity, or outstanding stock, or outstanding voting stock of a
broadband PCS, cellular or SMR licensee shall be attributed, except that ownership will not
be attributed unless the partnership and other ownership interests and any stock interest
amount to at least 40 percent of the equity, or outstanding stock, or outstanding voting stock
of a broadband PCS, cellular or SMR licensee if the ownership interest is held by a small
business, a rural telephone company or a business owned by minorities and/or women, as
these terms are defined in Sec. 1.2110 of this chapter or other related provisions of the
Commission's rules, or if the ownership interest is held by an entity with a non-controlling
equity interest in a broadband PCS licensee or applicant that is a business owned by
minorities and/or women.  For purposes of broadband PCS licenses for frequency block C, the
40 percent attribution levels shall only apply to interests held by a small business or a rural
telephone company and interests held by an entity with a non-controlling equity interest in a
licensee or applicant that is a small business.
* * * * *
PART 24 - PERSONAL COMMUNICATIONS SERVICES
1.  The authority citation for Part 24 continues to read as follows:
AUTHORITY: Secs. 4, 301, 302, 303, 309 and 332, 48 Stat. 1066, 1082, as amended; 47
U.S.C.  154, 301, 302, 303, 309 and 332, unless otherwise noted.
2.  Section 24.204 is amended by revising paragraph (d)(2)(ii) to read as follows:
 24.204 Cellular eligibility.
                                 * * * * *
(d)* * *
(2)* * *
 (ii) Partnership and other ownership interests and any stock interest amounting to 20 percent
or more of the equity, or outstanding stock, or outstanding voting stock of a cellular licensee
will be attributable, except that ownership will not be attributed unless the partnership and
other ownership interests and any stock interest amount to 40 percent or more of the equity,
or outstanding stock, or outstanding voting stock of a cellular licensee if the ownership
interest is held by a small business, a rural telephone company, or a business owned by
minorities and/or women, as these terms are defined in Sec. 24.720, or if the ownership
interest is held by an entity with a non-controlling equity interest in a broadband PCS licensee
or applicant that is a business owned by minorities and/or women.  For purposes of broadband
PCS licenses for frequency block C, the 40 percent attribution levels shall only apply to
interests held by a small business or rural telephone company and interests held by an entity
with a non-controlling equity interest in a licensee or applicant that is a small business.
                                  *****
3.  Section 24.709 is amended by revising the heading and paragraphs (a), (b)(6), (c)(1),
(c)(2), (c)(2)(ii) and (e) to read as follows:
 24.709 Eligibility for licenses for frequency Block C.
(a) General Rule.
  (1) No application is acceptable for filing and no license shall be granted for frequency
block C, unless the applicant, together with its affiliates and persons or entities that hold
interests in the applicant and their affiliates, have gross revenues of less than $125 million in
each of the last two years and total assets of less than $500 million at the time the applicant s
short-form application (Form 175) is filed.
 (2) The gross revenues and total assets of the applicant (or licensee), and its affiliates, and
(except as provided in paragraph (b) of this section) of persons or entities that hold interests
in the applicant (or licensee), and their affiliates, shall be attributed to the applicant and
considered on a cumulative basis and aggregated for purposes of determining whether the
applicant (or licensee) is eligible for a license for frequency block C under this section.
 (3) Any licensee awarded a license pursuant to this section (or pursuant to  24.839(d)(2))
shall maintain its eligibility until at least five years from the date of initial license grant,
except that a licensee s (or other attributable entity s) increased gross revenues or increased
total assets due to nonattributable equity investments (i.e., from sources whose gross
revenues, and total assets are not considered under paragraph (b) of this section), debt
financing, revenue from operations or other investments, business development or expanded
service shall not be considered.
 (b)* * *
 (5)* * *
 (C) The remaining 10 percent of the applicant's (or licensee's) total equity may be
owned, either unconditionally or in the form of stock options, by any of the following entities,
which may not comply with  24.720(n)(1):
 (1) Institutional investors;
 (2) Noncontrolling existing investors in any preexisting entity that is a member of the
control group;
 (3) Individuals that are members of the applicant's (or licensee's) management; or
 (4) Qualifying investors, as specified in  24.720(n)(4).
 (6) Control Group Minimum 50.1 Percent Equity Requirement.  In order to be eligible to
exclude gross revenues and total assets of persons or entities identified in paragraph (b)(4) of
this section, an applicant (or licensee) must comply with the following requirements:
 (i) Except for an applicant (or licensee) whose sole control group member is a preexisting
entity, as provided in paragraph (b)(6)(ii) of this section, at the time the applicant s short-form
application (Form 175) is filed and until at least three years following the date of initial
license grant, the applicant s (or licensee s) control group must own at least 50.1 percent of
the applicant s (or licensee s) total equity as follows:
 (A) at least 30 percent of the applicant s (or licensee s) total equity must be held by
qualifying investors, either unconditionally or in the form of options, exercisable at the option
of the holder, at any time and at any exercise price equal to or less than the market value at
the time the applicant files its short-form application (Form 175);
 (B) Such qualifying investors must hold 50.1 percent of the voting stock and all general
partnership interests within the control group and must have de facto control of the control
group and of the applicant;
 (C) The remaining 20.1 percent of the applicant s (or licensee s) total equity may be owned
by qualifying investors, either unconditionally or in the form of stock options not subject to
the restrictions of paragraph (b)(6)(i)(A) of this section, or by any of the following entities
which may not comply with  24.720(n)(1):
 (1) Institutional investors, either unconditionally or in the form of stock options;
 (2) Noncontrolling existing investors in any preexisting entity that is a member of the control
group, either unconditionally or in the form of stock options;
 (3) Individuals that are members of the applicant s (or licensee s) management, either
unconditionally or in the form of stock options; or
 (4) Qualifying investors, as specified in  24.720(n)(4).
  (D) Following termination of the three-year period specified in paragraph (b)(6)(i) of this
section, qualifying investors must continue to own at least 20 percent of the applicant s (or
licensee s) total equity, either unconditionally or in the form of stock options subject to the
restrictions in paragraph (b)(6)(i)(A) of this section.  The restrictions specified in paragraph
(b)(6)(i)(C)(1) through (4) of this section no longer apply to the remaining equity after
termination of such three-year period.
  (ii) At the election of an applicant (or licensee) whose control group s sole member is a
preexisting entity, the 50.1 percent minimum equity requirements set forth in paragraph
(b)(6)(i) of this section shall apply, except that only 20 percent of the applicant s (or
licensee s) total equity must be held by qualifying investors, and that the remaining 30.1
percent of the applicant s (or licensee s) total equity may be held by qualifying investors, or
noncontrolling existing investors in such control group member or individuals that are
members of the applicant s (or licensee s) management.  These restrictions on the identity of
the holder(s) of the remaining 30.1 percent of the licensee s total equity no longer apply after
termination of the three-year period specified in paragraph (b)(6)(i) of this section.
                                 * * * * *
(c)* * *
 (1) Short-form Application.  In addition to certifications and disclosures required by Part 1,
subpart Q of this Chapter and  24.813, each applicant for a license for frequency Block C
shall certify on its short-form application (Form 175) that it is eligible to bid on and obtain
such license(s), and (if applicable) that it is eligible for designated entity status pursuant to
this section and  24.720, and shall append the following information as an exhibit to its
Form 175:
                                 * * * * *
  (2) Long-form Application.  In addition to the requirements in subpart I of this part and
other applicable rules (e.g.,  24.204(f), 20.6(e)  and 20.9(b) of this chapter), each applicant
submitting a long-form application for a license(s) for frequency block C shall, in an exhibit
to its long-form application:
                                 * * * * *
  (ii) List and summarize all agreements or other instruments (with appropriate references to
specific provisions in the text of such agreements and instruments) that support the applicant s
eligibility for a license(s) for frequency Block C and its eligibility under  24.711, 24.712,
24.714 and 24.720, including the establishment of de facto and de jure control; such
agreements and instruments include articles of incorporation and bylaws, shareholder
agreements, voting or other trust agreements, partnership agreements, management
agreements, joint marketing agreements, franchise agreements, and any other relevant
agreements (including letters of intent), oral or written; and
                                 * * * * *
(e) Definitions.  The terms affiliate, business owned by members of minority groups and
women, consortium of small businesses, control group, existing investor, gross revenues,
institutional investor, members of minority groups, nonattributable equity, preexisting entity,
publicly traded corporation with widely dispersed voting power, qualifying investor, small
business and total assets used in this section are defined in  24.720.
 4.  Section 24.711 is amended by revising the heading and paragraphs (a) introductory
text, (a)(1), (b) introductory text and (b)(3), and removing paragraphs (b)(4) and (5) to read
as follows:
 24.711 Upfront payments, down payments and installment payments for licenses for
frequency Block C.
 (a) Upfront Payments and Down Payments.
  (1) Each eligible bidder for licenses on frequency Block C subject to auction shall pay an
upfront payment of $0.015 per MHz per pop for the maximum number of licenses (in terms
of MHz-pops) on which it intends to bid pursuant to  1.2106 of this Chapter and procedures
specified by Public Notice.
                                 * * * * *
 (b) Installment Payments.  Each eligible licensee of frequency Block C may pay the
remaining 90 percent of the net auction price for the license in installment payments pursuant
to  1.2110(e) of this Chapter and under the following terms:
                                 * * * * *
 (3) For an eligible licensee that qualifies as a small business or as a consortium of
small businesses, interest shall be imposed based on the rate for ten-year U.S. Treasury
obligations applicable on the date the license is granted; payments shall include interest only
for the first six years and payments of interest and principal amortized over the remaining
four years of the license term.
                                 * * * * *
 5.  Section 24.712 is amended by revising the heading and paragraph (a), removing
paragraphs (b) and (c), and redesignating paragraph (d) as paragraph (b) to read as follows:
 24.712  Bidding credits for licenses for frequency Block C.
  (a) A wining bidder that qualifies as a small business or a consortium of small businesses
may use a bidding credit of twenty-five percent to lower the cost of its winning bid.
* * * * *
6.   Section 24.713 is removed and reserved.
7.  A new Section 24.715 is added to Subpart H to read as follows:
 24.715 Eligibility for licenses for frequency Block F.
 (a) General Rule.
  (1) No application is acceptable for filing and no license shall be granted for frequency
block F, unless the applicant, together with its affiliates and persons or entities that hold
interests in the applicant and their affiliates, have gross revenues of less than $125 million in
each of the last two years and total assets of less than $500 million at the time the applicant's
short-form application (Form 175) is filed.
  (2) The gross revenues and total assets of the applicant (or licensee), and its affiliates, and
(except as provided in paragraph (b) of this section) of persons or entities that hold interests
in the applicant (or licensee), and their affiliates, shall be attributed to the applicant and
considered on a cumulative basis and aggregated for purposes of determining whether the
applicant (or licensee) is eligible for a license for frequency block F under this section.
  (3) Any licensee awarded a license pursuant to this section (or pursuant to  24.839(d)(2))
shall maintain its eligibility until at least five years from the date of initial license grant,
except that a licensee's (or other attributable entity's) increased gross revenues or increased
total assets due to nonattributable equity investments (i.e., from sources whose gross
revenues, and total assets are not considered under paragraph (b) of this section), debt
financing, revenue from operations or other investments, business development or expanded
service shall not be considered.
  (b) Exceptions to General Rule.
  (1) Small Business Consortia.  Where an applicant (or licensee) is a consortium of small
businesses, the gross revenues and total assets of each small business shall not be aggregated.
  (2) Publicly-Traded Corporations.  Where an applicant (or licensee) is a publicly traded
corporation with widely dispersed voting power, the gross revenues and total assets of a
person or entity that holds an interest in the applicant (or licensee), and its affiliates, shall not
be considered.
  (3) 25 Percent Equity Exception.  The gross revenues and total assets of a person or entity
that holds an interest in the applicant (or licensee), and its affiliates, shall not be considered so
long as:
  (i) Such person or entity, together with its affiliates, holds only nonattributable equity
equaling no more than 25 percent of the applicant's (or licensee's) total equity;
  (ii) Except as provided in paragraph (b)(5) of this section, such person or entity is not a
member of the applicant's (or licensee's) control group; and
  (iii) The applicant (or licensee) has a control group that complies with the minimum equity
requirements of paragraph (b)(5) of this section, and, if the applicant (or licensee) is a
corporation, owns at least 50.1 percent of the applicant's (or licensee's) voting interests, and,
if the applicant (or licensee) is a partnership, holds all of its general partnership interests.
  (4) 49.9 Percent Equity Exception.  The gross revenues and total assets of a person or entity
that holds an interest in the applicant (or licensee), and its affiliates, shall not be considered so
long as:
  (i) Such person or entity, together with its affiliates, holds only nonattributable equity
equaling no more than 49.9 percent of the applicant's (or licensee's) total equity;
  (ii) Except as provided in paragraph (b)(6) of this section, such person or entity is not a
member of the applicant's (or licensee's) control group; and
  (iii) The applicant (or licensee) has a control group that complies with the minimum equity
requirements of paragraph (b)(6) of this section and, if the applicant (or licensee) is a
corporation, owns at least 50.1 percent of the applicant's (or licensee's) voting interests, and,
if the applicant (or licensee) is a partnership, holds all of its general partnership interests.
  (5) Control Group Minimum 25 Percent Equity Requirement.  In order to be eligible to
exclude gross revenues and total assets of persons or entities identified in paragraph (b)(3) of
this section, an applicant (or licensee) must comply with the following requirements:
  (i) Except for an applicant (or licensee) whose sole control group member is a preexisting
entity, as provided in paragraph (b)(5)(ii) of this section, at the time the applicant's short-form
application (Form 175) is filed and until at least three years following the date of initial
license grant, the applicant's (or licensee's) control group must own at least 25 percent of the
applicant's (or licensee's) total equity as follows:
  (A) At least 15 percent of the applicant's (or licensee's) total equity must be held by
qualifying investors, either unconditionally or in the form of options exercisable, at the option
of the holder, at any time and at any exercise price equal to or less than the market value at
the time the applicant files its short-form application (Form 175);
  (B) Such qualifying investors must hold 50.1 percent of the voting stock and all general
partnership interests within the control group, and must have de facto control of the control
group and of the applicant;
  (C) The remaining 10 percent of the applicant's (or licensee's) total equity may be owned
by qualifying investors, either unconditionally or in the form of stock options not subject to
the restrictions of paragraph (b)(5)(i)(A) of this section, or by any of the following entities,
which may not comply with section 24.720(n)(1):
  (1) Institutional investors, either unconditionally or in the form of stock options;
  (2) Noncontrolling existing investors in any preexisting entity that is a member of the
control group, either unconditionally or in the form of stock options;
  (3) Individuals that are members of the applicant's (or licensee's) management, either
unconditionally or in the form of stock options; or
  (4) Qualifying investors, as specified in  24.720(n)(4).
  (D) Following termination of the three-year period specified in paragraph (b)(5)(i) of this
section, qualifying investors must continue to own at least 10 percent of the applicant's (or
licensee's) total equity, either unconditionally or in the form of stock options subject to the
restrictions in paragraph (b)(5)(i)(A) of this section.  The restrictions specified in paragraph
(b)(5)(i)(C)(1) through (4) of this section no longer apply to the remaining equity after
termination of such three-year period.
  (ii) At the election of an applicant (or licensee) whose control group's sole member is a
preexisting entity, the 25 percent minimum equity requirements set forth in paragraph (b)(5)(i)
of this section shall apply, except that only 10 percent of the applicant's (or licensee's) total
equity must be held by qualifying investors and that the remaining 15 percent of the
applicant's (or licensee's) total equity may be held by qualifying investors or noncontrolling
existing investors in such control group member or individuals that are members of the
applicant's (or licensee's) management.  These restrictions on the identity of the holder(s) of
the remaining 15 percent of the licensee's total equity no longer apply after termination of the
three-year period specified in paragraph (b)(5)(i) of this section.
  (6) Control Group Minimum 50.1 Percent Equity Requirement.  In order to be eligible to
exclude gross revenues and total assets of persons or entities identified in paragraph (b)(4) of
this section, an applicant (or licensee) must comply with the following requirements:
  (i) Except for an applicant (or licensee) whose sole control group member is a preexisting
entity, as provided in paragraph (b)(6)(ii) of this section, at the time the applicant's short-form
application (Form 175) is filed and until at least three years following the date of initial
license grant, the applicant's (or licensee's) control group must own at least 50.1 percent of
the applicant's (or licensee's) total equity as follows:
  (A) at least 30 percent of the applicant's (or licensee's) total equity must be held by
qualifying minority and/or women investors, either unconditionally or in the form of options
exercisable, at the option of the holder, at any time and at any exercise price equal to or less
than the market value at the time the applicant files its short-form application (Form 175);
  (B) Such qualifying minority and/or women investors must hold 50.1 percent of the voting
stock and all general partnership interests within the control group and must have de facto
control of the control group and of the applicant;
  (C) The remaining 20.1 percent of the applicant's (or licensee's) total equity may be owned
by qualifying investors, either unconditionally or in the form of stock options not subject to
the restrictions of paragraph (b)(5)(i)(A) of this section, or by any of the following entities,
which may not comply with section 24.720(n)(1):
  (1) Institutional investors, either unconditionally or in the form of stock options;
  (2) Noncontrolling existing investors in any preexisting entity that is a member of the
control group, either unconditionally or in the form of stock options;
  (3) Individuals that are members of the applicant's (or licensee's) management, either
unconditionally or in the form of stock options; or
  (4) Qualifying investors, as specified in  24.720(n)(4).
  (D) Following termination of the three-year period specified in paragraph (b)(6)(i) of this
section, qualifying minority and/or women investors must continue to own at least 20 percent
of the applicant's (or licensee's) total equity, either unconditionally or in the form of stock
options subject to the restrictions in paragraph (b)(6)(i)(A) of this section.  The restrictions
specified in paragraph (b)(6)(i)(C)(1) through (4) of this section no longer apply to the
remaining equity after termination of such three-year period.
  (ii) At the election of an applicant (or licensee) whose control group's sole member is a
preexisting entity, the 50.1 percent minimum equity requirements set forth in paragraph
(b)(6)(i) of this section shall apply, except that only 20 percent of the applicant's (or
licensee's) total equity must be held by qualifying minority and/or women investors, and that
the remaining 30.1 percent of the applicant's (or licensee's) total equity may be held by
qualifying minority and/or women investors, or noncontrolling existing investors in such
control group member or individuals that are members of the applicant's (or licensee's)
management.  These restrictions on the identity of the holder(s) of the remaining 30.1 percent
of the licensee's total equity no longer apply after termination of the three-year period
specified in paragraph (b)(6)(i) of this section.
  (7) Calculation of Certain Interests. Except as provided in paragraphs (b)(5) and (b)(6) of
this section, ownership interests shall be calculated on a fully diluted basis; all agreements
such as warrants, stock options and convertible debentures will generally be treated as if the
rights thereunder already have been fully exercised, except that such agreements may not be
used to appear to terminate or divest ownership interests before they actually do so, in order
to comply with the nonattributable equity requirements in paragraphs (b)(3)(i) and (b)(4)(i) of
this section.
  (8) Aggregation of Affiliate Interests. Persons or entities that hold interest in an applicant (or
licensee) that are affiliates of each other or have an identity of interests identified in 
24.720(1)(3) will be treated as though they were one person or entity and their ownership
interests aggregated for purposes of determining an applicant's (or licensee's) compliance with
the nonattributable equity requirements in paragraphs (b)(3)(i) and (b)(4)(i) of this section.
  Example 1 for paragraph (b)(8). ABC Corp. is owned by individuals, A, B, and C, each
having an equal one-third voting interest in ABC Corp. A and B together, with two-thirds of
the stock have the power to control ABC Corp. and have an identity of interest.  If A & B
invest in DE Corp., a broadband PCS applicant for block C, A and B's separate interests in
DE Corp. must be aggregated because A and B are to be treated as one person.
  Example 2 for paragraph (b)(8).  ABC Corp. has subsidiary BC Corp., of which it holds a
controlling 51 percent of the stock.  If ABC Corp. and BC Corp., both invest in DE Corp.,
their separate interests in DE Corp. must be aggregated because ABC Corp. and BC Corp. are
affiliates of each other.
  (c) Short-Form and Long-Form Applications: Certifications and Disclosure.
  (1) Short-form Application. In addition to certifications and disclosures required by Part 1,
subpart Q of this Chapter and  24.813, each applicant for a license for frequency Block F
shall certify on its short-form application (Form 175) that it is eligible to bid on and obtain
such license(s), and (if applicable) that it is eligible for designated entity status pursuant to
this section and  24.720, and shall append the following information as an exhibit to its
Form 175:
  (i) For an applicant that is a publicly traded corporation with widely disbursed voting power:
  (A) A certified statement that such applicant complies with the requirements of the
definition of publicly traded corporation with widely disbursed voting power set forth in 
24.720(m);
  (B) The identify of each affiliate of the applicant if not disclosed pursuant to  24.813; and
  (C) The applicant's gross revenues and total assets, computed in accordance with paragraphs
(a) and (b) of this section.
  (ii) For all other applicants:
  (A) The identity of each member of the applicant's control group, regardless of the size of
each member's total interest in the applicant, and the percentage and type of interest held;
  (B) The citizenship and the gender or minority group classification for each member of the
applicant's control group if the applicant is claiming status as a business owned by members
of minority groups and/or women;
  (C) The status of each control group member that is an institutional investor, an existing
investor, and/or a member of the applicant's management;
  (D) The identity of each affiliate of the applicant and each affiliate of individuals or entities
identified pursuant to paragraphs (c)(1)(ii)(A) and (c)(1)(ii)(C) of this section if not disclosed
pursuant to  24.813;
  (E) A certification that the applicant's sole control group member is a preexisting entity, if
the applicant makes the election in either paragraph (b)(5)(ii) or (b)(6)(ii) of this section; and
  (F) The applicant's gross revenues and total assets, computed in accordance with paragraphs
(a) and (b) of this section.
  (iii) for each applicant claiming status as a small business consortium, the information
specified in paragraph (c)(1)(ii) of this section, for each member of such consortium.
  (2) Long-form Application.  In addition to the requirements in subpart I of this part and
other applicable rules (e.g.,  24.204(f), 20.6(e) and 20.9(b) of this chapter), each applicant
submitting a long-form application for license(s) for frequency Block F shall, in an exhibit to
its long-form application:
  (i) Disclose separately and in the aggregate the gross revenues and total assets, computed in
accordance with paragraphs (a) and (b) of this section, for each of the following: the
applicant; the applicant's affiliates, the applicant's control group members; the applicant's
attributable investors; and affiliates of its attributable investors;
  (ii) List and summarize all agreements or other instruments (with appropriate references to
specific provisions in the text of such agreements and instruments) that support the applicant's
eligibility for a license(s) for frequency Block F and its eligibility under  24.711 through
24.270, including the establishment of de facto and de jure control; such agreements and
instruments include articles of incorporation and bylaws, shareholder agreements, voting or
other trust agreements, partnership agreements, management agreements, joint marketing
agreements, franchise agreements, and any other relevant agreements (including letters of
intent), oral or written; and
  (iii) List and summarize any investor protection agreements and identify specifically any
such provisions in those agreements identified pursuant to paragraph (c)(2)(ii) of this section,
including rights of first refusal, supermajority clauses, options, veto rights, and rights to hire
and fire employees and to appoint members to boards of directors or management committees.
  (3) Records Maintenance.  All applicants, including those that are winning bidders, shall
maintain at their principal place of business an updated file of ownership, revenue and asset
information, including those documents referenced in paragraphs (c)(2)(ii) and (c)(2)(iii) of
this section and any other documents necessary to establish eligibility under this section or
under the definitions of small business and/or business owned by members of minority groups
and/or women. Licensees (and their successors in interest) shall maintain such files for the
term of the license. Applicants that do not obtain the license(s) for which they applied shall
maintain such files until the grant of such license(s) is final, or one year from the date of the
filing of their short-form application (Form 175), whichever is earlier.
  (d) Audits.
  (1) Applicants and licensees claiming eligibility under this section or  24.711 through
24.720 shall be subject to audits by the Commission, using in- house and contract resources.
Selection for audit may be random, on information, or on the basis of other factors.
  (2) Consent to such audits is part of the certification included in the short-form application
(Form 175).  Such consent shall include consent to the audit of the applicant's or licensee's
books, documents and other material (including accounting procedures and practices)
regardless of form or type, sufficient to confirm that such applicant's or licensee's
representations are, and remain, accurate.  Such consent shall include inspection at all
reasonable times of the facilities, or parts thereof, engaged in providing and transacting
business, or keeping records regarding licensed broadband PCS service and shall also include
consent to the interview of principals, employees, customers and suppliers of the applicant or
licensee.
  (e) Definitions.  The terms affiliate, business owned by members of minority groups and
women, consortium of small businesses, control group, existing investor, gross revenues,
institutional investor, members of minority groups, nonattributable equity, preexisting entity,
publicly traded corporation with widely dispersed voting power, qualifying investor, qualifying
minority and/or woman investor, small business and total assets used in this section are
defined in  24.720.
 8.  A new section 24.716 is added to Subpart H to read as follows:
 24.716 Upfront payments, down payments, and installment payments for licenses for
frequency Block F.
  (a) Upfront Payments and Down Payments.
  (1) Each eligible bidder for licenses on frequency Block F subject to auction shall pay an
upfront payment of $0.015 per MHz per pop for the maximum number of licenses (in terms
of MHz-pops) on which it intends to bid pursuant to  1.2106 of this Chapter and procedures
specified by Public Notice.
  (2) Each winning bidder shall make a down payment equal to ten percent of its winning bid
(less applicable bidding credits); a winning bidder shall bring its total amount on deposit with
the Commission (including upfront payment) to five percent of its net winning bid within five
business days after the auction closes, and the remainder of the down payment (five percent)
shall be paid within five business days after the application required by  24.809(b) is
granted.
  (b) Installment Payments. Each eligible licensee of frequency Block F may pay the
remaining 90 percent of the net auction price for the license in installment payments pursuant
to  1.2110(e) of this Chapter and under the following terms:
  (1) For an eligible licensee with gross revenues exceeding $75 million (calculated in
accordance with  24.715(a)(2) and (b)) in each of the two preceding years (calculated in
accordance with 24.720(f)), interest shall be imposed based on the rate for ten-year U.S.
Treasury obligations applicable on the date the license is granted, plus 3.5 percent; payments
shall include both principal and interest amortized over the term of the license.
  (2) For an eligible licensee with gross revenues not exceeding $75 million (calculated in
accordance with  24.715(a)(2) and (b)) in each of the two preceding years, interest shall be
imposed based on the rate for ten-year U.S. Treasury obligations applicable on the date the
license is granted, plus 2.5 percent; payments shall include interest only for the first year and
payments of interest and principal amortized over the remaining nine years of the license
term.
  (3) For an eligible licensee that qualifies as a small business or as a consortium of small
businesses, interest shall be imposed based on the rate for ten-year U.S. Treasury obligations
applicable on the date the license is granted, plus 2.5 percent; payments shall include interest
only for the first two years and payments of interest and principal amortized over
the remaining eight years of the license term.
  (4) For an eligible licensee that qualifies as a business owned by members of minority
groups and/or women, interest shall be imposed based on the rate for ten-year U.S. Treasury
obligations applicable on the date the license is granted; payments shall include interest only
for the first three years and payments of interest and principal amortized over the remaining
seven years of the license term.
  (5) For an eligible licensee that qualifies as a small business owned by members of minority
groups and/or women or as a consortium of small business owned by members of minority
groups and/or women, interest shall be imposed based on the rate for ten-year U.S. Treasury
obligations applicable on the date the license is granted; payments shall include interest only
for the first six years and payments of interest and principal amortized over the remaining
four years of the license term.
  (c) Unjust Enrichment.
  (1) If a licensee that utilizes installment financing under this section seeks to assign or
transfer control of its license to an entity not meeting the eligibility standards for installment
payments, the licensee must make full payment of the remaining unpaid principal and any
unpaid interest accrued through the date of assignment or transfer as a condition of approval.
  (2) If a licensee that utilizes installment financing under this section seeks to make any
change in ownership structure that would result in the licensee losing eligibility for installment
payments, the licensee shall first seek Commission approval and must make full payment of
the remaining unpaid principal and any unpaid interest accrued through the date of such
change as a condition of approval. A licensee's (or other attributable entity's) increased gross
revenues or increased total assets due to nonattributable equity investments (i.e., from sources
whose gross revenues and total assets are not considered under  24.715(b)), debt financing,
revenue from operations or other investments, business development or expanded service shall
not be considered to result in the licensee losing eligibility for installment payments.
  (3) If a licensee seeks to make any change in ownership that would result in the licensee
qualifying for a less favorable installment plan under this section, the licensee shall seek
Commission approval and must adjust its payment plan to reflect its new eligibility status.  A
licensee may not switch its payment plan to a more favorable plan.
 9.  A new Section 24.717 is added to Subpart H to read as follows:
 24.717 Bidding credits for licenses for frequency Block F.
  (a) A winning bidder that qualifies as a small business or a consortium of small businesses
may use a bidding credit of ten percent to lower the cost of its winning bid.
  (b) A winning bidder that qualifies as a business owned by members of minority groups
and/or women may use a bidding credit of fifteen percent to lower the cost of its winning bid.
  (c) A winning bidder that qualifies as a small business owned by members of minority
groups and/or women or a consortium of small business owned by members of minority
groups and/or women may use a bidding credit of twenty-five percent to lower the cost of its
winning bid.
  (d) Unjust Enrichment.
  (1) If during the term of the initial license grant (see  24.15), a licensee that utilizes a
bidding credit under this section seeks to assign or transfer control of its license to an entity
not meeting the eligibility standards for bidding credits or seeks to make any other change in
ownership that would result in the licensee no longer qualifying for bidding credits under this
section, the licensee must seek Commission approval and reimburse the government for the
amount of the bidding credit as a condition of the approval of such assignment, transfer or
other ownership change.
  (2) If during the term of the initial license grant (see  24.15), a licensee that utilizes a
bidding credit under this section seeks to assign or transfer control of its license to an entity
meeting the eligibility standards for lower bidding credits or seeks to make any other change
in ownership that would result in the licensee qualifying for a lower bidding credit under this
section, the licensee must seek Commission approval and reimburse the government for the
difference between the amount of the bidding credit obtained by the licensee and the bidding
credit for which the assignee, transferee or licensee is eligible under this section as a condition
of the approval of such assignment, transfer or other ownership change.
 10.  Section 24.720 is amended by revising paragraphs (a), (b)(2), (c)(2), (j)(2),
(1)(11)(i), (l)(11)(ii), (n)(1), (n)(3) and adding paragraph (n)(4) to read as follows:
 24.720 Definitions.
 (a) Scope. The definitions in this section apply to  24.709 through 24.717, unless
otherwise specified in those sections.
 (b)* * *
 (2) For purposes of determining whether an entity meets the $40 million average
annual gross revenues size standard set forth in paragraph (b)(1) of this section, the gross
revenues of the entity, its affiliates, persons or entities holding interests in the entity and their
affiliates shall be considered on a cumulative basis and aggregated, subject to the exceptions
set forth  24.709(b) or 24.715(b).
                                 * * * * *
 (c)* * *
 (2) That complies with the requirements of  24.715(b)(3) and (b)(5) or  24.715(b)(4)
and (b)(6).
                                 * * * * *
 (j)* * *
 (2) For purposes of assessing compliance with the equity limits in  24.709(b)(3)(i)
and (b)(4)(i) or  24.715(b)(3)(i) and (b)(4)(i), where such interests are not held directly in
the applicant, the total equity held by a person or entity shall be determined by successive
multiplication of the ownership percentages for each link in the vertical ownership chain.
 (l)* * *
 (11) * * *
 (i) For purposes of  24.709(a)(2), 24.715(a)(2) and paragraphs (b)(2) and (d) of this
section, Indian tribes or Alaska Regional or Village Corporations organized pursuant to the
Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), or entities owned and
controlled by such tribes or corporations, are not considered affiliates of an applicant (or
licensee) that is owned and controlled by such tribes, corporations or entities, and that
otherwise complies with the requirements of  24.709 (b)(3) and (b)(5) or  24.709 (b)(4) and
(b)(6) or  24.715 (b)(3) and (b)(5) or  24.715 (b)(4) and (b)(6), except that gross revenues
derived from gaming activities conducted by affiliated entities pursuant to the Indian Gaming
Regulatory Act (25 U.S.C. 2701 et seq.) will be counted in determining such applicant's (or
licensee's) compliance with the financial requirements of  24.709(a) or  24.715(a) and
paragraphs (b) and (d) of this section, unless such applicant establishes that it will not receive
a substantial unfair competitive advantage because significant legal constraints restrict the
applicant's ability to access such gross revenues.
 (ii) For the C block, for purposes of  24.709(a)(2) and paragraph (b)(2) of this
section, an affiliate with gross revenues of less than $125 million in each of the last two years
and total assets of less than $500 million at the time the applicant's short-form application
(Form 175) is filed will not be considered an affiliate of an applicant (or licensee) that
qualifies as a small business under section 24.720(b)(2) (small business definition) provided
the gross revenues and total assets of all such affiliates, when considered on a cumulative
basis and aggregated with each other do not exceed the amounts specified in section
24.709(a)(1) (entrepreneurs' block caps).
                                * * * * *
 (n) * * *
 (1) A qualifying investor is a person who is (or holds an interest in) a member of the
applicant's (or licensee's) control group and whose gross revenues and total assets, when
aggregated with those of all other attributable investors and affiliates, do not exceed the gross
revenues and total assets limits specified in  24.709(a) or  24.715(a) , or, in the case of an
applicant (or licensee) that is a small business, do not exceed the gross revenues limit
specified in paragraph (b) of this section.
* * * * *
(3) For purposes of assessing compliance with the minimum equity requirements of 
24.709(b)(5) and (6) or  24.715(b)(5) and (6), where such equity interests are not held
directly in the applicant, interests held by qualifying investors or qualifying minority and/or
woman investors shall be determined by successive multiplication of the ownership
percentages for each link in the vertical ownership chain.
(4) For purposes of  24.709(b)(5)(C) and (b)(6)(C) or  24.715(b)(5)(C) and (b)(6)(C), a
qualifying investor is a person who is (or holds an interest in) a member of the applicant's (or
licensee's) control group and whose gross revenues and total assets do not exceed the gross
revenues and total assets limits specified in  24.709(a) or  24.715(a).
                                * * * * *