Before the
                FEDERAL COMMUNICATIONS COMMISSION
                     Washington, D.C.  20554

                                             DA 96-706      
In the Matter of                )
                                )
Georgia Independent PCS Corporation)
Request to Waive Bid Withdrawal )
Payment Provision               )
                                 
                                                    ORDER

     Adopted:  May 6, 1996                        Released: May 6, 1996

By the Chief, Wireless Telecommunications Bureau

     1.  The Wireless Telecommunications Bureau has before it a Request for Waiver of
Section 24.704(a)(1) of the Commission's rules filed by Georgia Independent PCS Corporation
("Georgia").  By this Order, we hereby resolve Georgia's request.  Specifically, this Order
reduces Georgia's bid withdrawal payment to the minimum bid increment for License B-076
(Chattanooga, TN) in Round 37 of the broadband Personal Communications Services (PCS) C
block auction, or $569,898.

     2.  Background.  On March 6, 1995, Georgia filed a request for waiver of the bid
withdrawal payment provisions applicable to the broadband PCS C block auction.  Under the
Commission's rules, the amount of the bid withdrawal payment is equal to the difference between
the withdrawn bid amount and the amount of the subsequent winning bid, if the subsequent
winning bid is lower.  No withdrawal payment is assessed if the subsequent winning bid exceeds
the withdrawn bid. 

     3.  The Commission recently issued an Order partially waiving the bid withdrawal
payment provisions applicable to the 900 MHz Specialized Mobile Radio (SMR) and broadband
PCS C block auctions.  The Order resolved the waiver requests of two applicants who submitted
erroneous bids which were later withdrawn.  The Order also delegated authority to resolve
requests for waiver of the bid withdrawal payment provisions involving similar factual
circumstances to the Wireless Telecommunications Bureau ("Bureau").  The Order indicated that
for a party to be eligible for such a waiver, it must submit a request for waiver accompanied by a
sworn declaration attesting to the veracity of the factual circumstances surrounding the erroneous
bid submission.  In addition, the Bureau was directed to consider such requests on a case-by-case
basis.   

     4.  Georgia Waiver Request.  In its request, Georgia alleges that due to a clerical or
typographical error, it submitted a bid of $119,720,000 for License B-076 (Chattanooga, TN) in
Round 37 of the broadband PCS C block auction.  Georgia further alleges that the error may have
been due in part to a "flaw" in the Commission's remote bidding software.  Georgia states that it
intended to submit the minimum accepted bid for that round and license, or $11,972,000. 
Georgia attempted to withdraw its $119,972,000 bid during the bid withdrawal period for Round
37 by contacting the FCC telephonically.  Due in part to technical problems with the FCC's
wide-area network, Georgia claims it was not able to withdraw its erroneous bid until Round 38. 
The final high bid on this market at the close of the auction was $21,288,000.  Consequently, if
the bid withdrawal payment requirement were fully enforced, Georgia would be subject to a bid
withdrawal payment of $73,824,000.  Affidavits by A.J. Paserella, and Robert L. Swearingen, Jr.,
two of Georgia's authorized bidders, and Mr. Swearingen's secretary, Wanda Queen, describe the
events surrounding the erroneous bid submission.  

     5.  Georgia argues that imposition of the bid withdrawal payment for its erroneous bid
would be unduly burdensome and contrary to the public interest.  Georgia contends that there is
established case law governing mistaken bids that prohibit the requirement of any payment for
bids resulting from typographical or clerical errors.  It observes that Section 24.822 of the
Commission's rules allows for the correction of typographical errors on applicants' short-form
applications (FCC Form 175s) and that the Auctions Division has granted waiver requests to
other C block applicants which sought to correct clerical or typographical errors.  Finally,
Georgia argues that the most that the Commission should require from bidders who submit
erroneous bids is the forfeiture of a single activity rule waiver.

     6.  Decision.  In the May 3 Order, the Commission considered the same issues presented
here and indicated that full application of the bid withdrawal payment provisions in instances of
erroneous bids would cause an extreme and unnecessary hardship on most bidders.  On the other
hand, the Commission also indicated that a full waiver of these provisions could threaten the
economic efficiency of the auction process.  The Commission therefore decided to reduce the
bid withdrawal payments substantially, taking into consideration the round and stage in which the
mistaken bids were submitted and withdrawn. 
     7.  Among other things, the Commission decided specifically that if a mistaken bid is
withdrawn in the same round in which it was submitted, the withdrawal payment should be the
greater of a) the minimum bid increment during the round in which it was submitted or b) the
standard bid withdrawal payment calculated as if the bidder had made a bid at the  minimum
accepted bid.  The Commission applied this calculation to reduce the bid withdrawal payment of
MAP Wireless, L.L.C., who withdrew its erroneous bid in the same round in which it was
submitted.  

     8.  Under the facts presented, Georgia has demonstrated that it submitted an erroneous bid
of $119,720,000 for License B-076 (Chattanooga, TN) in Round 37 of the broadband PCS C
block auction.  Georgia has further demonstrated that it attempted to withdraw its erroneous bid
in Round 37.  Georgia submitted a request for waiver accompanied by sworn affidavits attesting
to the veracity of the factual circumstances surrounding the erroneous bid.  We find that full
enforcement of the bid withdrawal payment against Georgia in this instance would not serve the
purpose of this rule and would be contrary to the public interest.  In accordance with the
Commission's May 3 Order, we find that a partial waiver of Section 24.704(a)(1) of the
Commission's rules is warranted.  Specifically, because Georgia attempted to withdraw its
erroneous bid in the same round in which it was submitted, we will reduce Georgia's required bid
withdrawal payment to the minimum bid increment for License B-076 in Round 37 of the
broadband PCS C block auction, or $569,898.   

     9.  Accordingly, IT IS ORDERED that the waiver request submitted by Georgia
Independent PCS L.L.C. is granted to the extent indicated above.  

     10.  IT IS FURTHER ORDERED that Georgia Independent PCS L.L.C. is subject to a
bid withdrawal payment requirement of $569,898.    

     
                         
                         
                         _____________________________
                         Michele C. Farquhar
                         Chief, Wireless Telecommunications Bureau