PUBLIC NOTICE

FEDERAL COMMUNICATIONS COMMISSION
1919 M STREET, N.W.
WASHINGTON, D.C.  20554                                   News Media Information: (202) 418-0500
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                                                      DA 97-2420         
                                                        November 18, 1997
                                                                         
       OPPORTUNITY FOR REPLY COMMENT ON RESERVE PRICES OR MINIMUM
                 OPENING BIDS FOR LMDS AUCTION EXTENDED
                                    
                                    
Report No. AUC-17-D (Auction No. 17)

     When FCC licenses are subject to auction (i.e., because they are mutually exclusive)
the recently enacted Balanced Budget Act of 1997 calls upon the Commission to prescribe
methods by which a reasonable reserve price will be required or a minimum opening bid
established, unless the Commission determines that a reserve price or minimum bid is not in
the public interest.  The Commission recently announced the auction of 986 licenses for the
Local Multipoint Distribution Service ("LMDS"), and originally set an auction
commencement date of December 10, 1997, later rescheduled to February 18, 1998.  In
anticipation of that auction and in light of the Balanced Budget Act, the Commission
proposed that minimum opening bids be established for the LMDS auction, that they be
calculated under a specific iterated formula, and that the Commission have discretion to
lower the minimum opening bids as it deems appropriate.  Because of the imminence of the
auction, the Commission sought 

comment on its proposals under a schedule that provided a somewhat abbreviated deadline
for reply comments.

      The Commission received comments from the following parties:

BroadBand, Inc.
Cornerstone Wireless Communications, L.L.C.
East Ascension Telephone Company, Inc.
Eclipse Communications Corporation
Fremont Telcom Co.
HighSpeed.Com, L.L.C.
Horizon Personal Communications, Inc.
JATO Communications Corp.
Midwest Wireless Communications, L.L.C.
Montana Wireless, Inc.
North Alabama Cellular, LLC
Pioneer Telephone Association, Inc.
Richard L. Vega Group, Inc.
Spectraware Corporation
Tel/Logic Inc.
Thomas F. Mitts and Pappas Telecasting Companies
U.S. WaveLink Telecommunications, L.P.
U.S. Wireless Communications, Inc.
Vanguard Cellular Systems, Inc.
VIPC
Virginia Tech Foundation, Inc.
WinStar Communications, Inc.
Zip Communications Corporation

A reply comment was received from the National Telephone Cooperative Association.

        More recently, the Commission postponed the auction commencement date until
February 18, 1998.  Because of the additional time available prior to the commencement of
the auction, the Commission hereby reopens the period for reply comments on its above-
referenced proposals regarding minimum opening bids.  Reply comments therefore will be
due on or before December 1, 1997.  To file formally, parties must submit an original and
four copies to the Office of the Secretary, Room 222, 1919 M Street, N.W., Washington,
D.C. 20554.  Comments and reply comments will be available for public inspection during
regular 

business hours in the FCC Public Reference Room, Room 239, 1919 M Street, N.W.,
Washington, D.C. 20554.

      For further information concerning this proceeding, contact Brett Tarnutzer, Auctions
and Industry Analysis Division, Wireless Telecommunications Bureau, at (202) 418-0660.


   - FCC -