DA 02-1316
June 6, 2002
CELLULAR RURAL SERVICE AREAS
 AUCTION CLOSES
Winning Bidders Announced
Down Payments Due June 20, 2002
FCC Forms 601 and 602 Due June 20, 2002
Ten-Day Petition to Deny Period


Report No. AUC-02-45-F (Auction No. 45)

On June 4, 2002, the Federal Communications Commission completed the auction of three cellular Rural 
Service Area (RSA) licenses (Auction No. 45), raising (in net high bids) a total of $15,871,000 for the 
U.S. Treasury.  Three winning bidders won a total of 3 licenses in this auction.

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

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

Attachment B:		Bidder Payment/Refund Report lists down payments and withdrawal 
bid payments owed by winning bidders, if any.
	
	Attachment C:		Instructions for Completing FCC Form 601 provides detailed 
information about how a winning bidder should complete the required 
FCC Form 601 and FCC Form 602 for cellular RSA license applications.

Attachment D:		Instructions for Using ULS to Associate Call Signs With the FRN and 
File FCC Form 601 Electronically. 

Attachment E: 	Accessing the FCC Network using Windows 95/98 for ULS Filing.

A copy of this Public Notice will be sent via overnight mail to each winning bidder.  
	
A. Down Payments
The Commissions rules require that within ten business days after the release of this Public Notice, in 
this case before 6:00 p.m. ET on June 20, 2002, winning bidders in Auction No. 45 must have on 
deposit with Mellon Bank in Pittsburgh, Pennsylvania, enough funds to cover 1) down payments on 
winning bids, and 2) payments for withdrawn bids, if applicable.  If a winning bidders upfront payment 
is not sufficient to meet both of these requirements, the winning bidder must deposit additional funds.  

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not cover the required total of down payments and withdrawn bid payments (as reflected in Attachment 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

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

C. Method of Payment
All payments must be in U.S. dollars and made in the form of a wire transfer.  No personal checks, credit 
card payments, or other forms of payment will be accepted.  All payments must be accompanied by a 
completed FCC Remittance Advice Form (FCC Form 159).   If applicable, a partially completed copy of 
the FCC Form 159 will be sent along with this Public Notice to facilitate submission of the correct down 
payment.  Questions regarding FCC Form 159 should be addressed to Gail Glasser at 202-418-0578 or 
Tim Dates at 202-418-0496.   Please note, however, that winning bidders are ultimately responsible 
for insuring the verification and submission of the correct down payment from their bank to 
Mellon Bank. 

Wire transfers for down payments must be received by Mellon Bank by 6:00 p.m. ET, on June 20, 
2002. Winning bidders should coordinate with their bankers ahead of time regarding their wire transfers, 
and allow sufficient time for the wire transfer to be initiated and completed prior to the deadline.  
To submit funds by wire transfer, winning bidders will need the following information: 

ABA Routing Number: 043000261
Receiving Bank: Mellon Pittsburgh
BNF:  FCC Account Number 910-6106 
OBI Field:   (Skip one space between each information item) AUCTIONPAY
APPLICANTS TAXPAYER IDENTIFICATION NO.: (same as FCC Form 159, Block 22)
APPLICANTS FCC REGISTRATION NO. (FRN): (same as FCC Form 159, Block 21)
PAYMENT TYPE CODE: (enter A45D)	
FCC CODE 1: (same as FCC Form 159, Block 28A:  45)
PAYOR NAME: (same as FCC Form 159, Block 2)
LOCKBOX NO.: 358850

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

Proper completion of the FCC Form 159 is critical to ensuring correct credit of bidder deposits.  
Winning bidders must use the same Taxpayer Identification Number (TIN) / FCC Registration 
Number (FRN) used on their FCC Form 175.   Questions concerning the calculation and submission 
of down payments should be directed to Gail Glasser at 202-418-0578 or Tim Dates at 202-418-0496.

D. Default and Disqualification Payments
The Commission imposes payments on bidders that withdraw high bids during the course of an auction, 
those that default on payments due after an auction closes, or those that are disqualified.   In Auction No. 
45 there were no bid withdrawals during the course of the auction.  If a high bidder defaults or is 
disqualified after the close of the auction, the defaulting bidder will be subject to the following payment 
obligations: 1) the difference between the high bid and the amount of the winning bid the next time the 
license is offered by the Commission, and 2) an additional payment equal to three (3) percent of the 
subsequent winning bid or three (3) percent of the defaulted bid, whichever is less.  Where a bidding 
credit applies to the winning bid in either the original or the subsequent auction, the calculation of the 
three percent payment is based on the smaller of the two gross bids or smaller of the two net bids, 
whichever basis (gross or net) was used to figure the first component. Thus, if the difference between the 
gross bids is less than the difference between the net bids, the three percent payment will be computed on 
the lower of the gross bids.  If the difference between the net bids is less than or equal to the difference 
between the gross bids, the three percent payment will be computed on the lower of the net bids.   
However, if both the difference between the gross bids and the difference between the net bids are less 
than or equal to zero, the three percent payment will be computed on the lower of the net bids. 

If a winning bidder fails to remit the required down payment within ten (10) business days after the 
Commission has released this Public Notice, in this case by June 20, 2002, the bidder will be deemed to 
have defaulted, its application will be dismissed, and it will be liable for a default payment as described 
above.  In such event, the Commission, at its discretion, may either auction the license(s) to existing or 
new applicants, or offer it to the other highest bidders (in descending order) at their final bids.  

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

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

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

E.	Refund of Excess Upfront Payments 
Upfront monies on deposit that are in excess of the required down payment, withdrawal and/or default 
payment amounts will be refunded to the payer of record as identified on FCC Form 159 promptly upon 
receipt of the necessary wire transfer instructions.  Such instructions must be faxed to Gail Glasser at 
202-418-2843.  Any questions concerning refunds should be referred to Gail Glasser at 202-418-0578 or  
Tim Dates at 202-418-0496. 

F.	FCC Form 601    
By 6:00 p.m. ET on June 20, 2002 winning bidders must submit a completed long-form license 
application(s) covering each license for which they were the winning high bidder.  Attachment C sets 
out instructions for completing the FCC Form 601. Applications must be filed electronically.  Detailed 
instructions for filing the Form 601 electronically are set out in Attachment D.  

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

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

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

FCC Form 602 must be filed manually (not electronically), and may be obtained from the Internet at 
http://www.fcc.gov/formpage.html or by calling the FCCs Form Distribution Center at 1-800-418-
FORM (3676) (outside Washington, D.C.) or 202-418-3676 (in the Washington D.C. area).  For more 
detailed information on FCC Form 602, see Wireless Telecommunications Bureau Answers Frequently 
Asked Questions Concerning Reporting of Ownership Information on FCC Form 602, Public Notice, 
DA 99-1001, 14 FCC Rcd 8261 (1999).

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

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

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

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



J.	Application Processing and License Grant
Pursuant to 47 C.F.R.  1.2108(b) and the Balanced Budget Act of 1997,  interested parties will have ten 
(10) days to file petitions to deny after the Commission releases a public notice announcing the FCC 
Forms 601 and 602 that are acceptable for filing.  An applicant may file an opposition to any petition to 
deny within five (5) business days after the time for filing petitions to deny has expired.   The petitioner 
may file a reply to such opposition within five (5) business days after the time for filing oppositions has 
expired.   If the Commission determines an applicant is qualified and there is no substantial and material 
issue of fact concerning that determination, the Commission will issue a public notice announcing that it 
is prepared to grant the application conditioned upon the full and timely payment of the remaining 
balance of the applicants winning bid.  Once the Commission has received full payment of the 
applicants winning bid, it will issue a public notice announcing grant of the license (or licenses) to the 
applicant.

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

K.	Anti-collusion Rules
To ensure the competitiveness of the auction process, the Commissions rules prohibit competing 
applicants for the same geographic license area from communicating with each other during the auction 
about bids, bidding strategies, or settlements.  As explained more fully in the Auction No. 45 Procedures 
Public Notice,  this prohibition began with the filing of short-form applications and ends on the down 
payment due date, or June 20, 2002.   The prohibition ends on the down payment due date whether or 
not a high bidder must supplement its upfront payment to cover its down payment.  Applicants certified 
their compliance with Section 1.2105(c) when their FCC Form 175 short-form applications were signed. 

L.	Return of SecurID Cards

Bidders are encouraged to return their SecurID cards to the FCC by June 20, 2002 for recycling.  The 
Commission will send bidders a copy of this Public Notice and a pre-addressed, stamped envelope.  All 
bidders should use the envelope to return the cards now that the auction is over.  Please note that each 
SecurID card is tailored to a specific auction, therefore, the cards issued for this auction will not work for 
future auctions.



*          *          *          *          *


For further information, contact

News Media:
Meribeth McCarrick at 202-418-0654


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


Office of the Managing Director 
Auctions Accounting Group
(Payment, FCC Form 159 and refund 
questions)
Gail Glasser or Tim Dates 
at 202-418-0578 or 202-418-0496


Wireless Telecommunications Bureau,
Commercial Wireless Division
Dwain Livingston, Engineer, at 202-418-1338
Michael Kleeb, Analyst, at 202-418-1306
(FCC Form 601and 602 questions)
Evan Baranoff, Attorney, at 202-418-7142 

Amal Abdallah, Attorney, at 202-418-7307


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


- FCC -
  	47 C.F.R.  1.2104(g), 1.2107(b).  In the event a bidder has withdrawn a bid(s) and is subject to a bid 
withdrawal payment(s), the bidders upfront payment will be first applied to satisfy the withdrawal payment(s) 
before being applied toward its down payment.  47 C.F.R.  1.2104(g)(1).
  	47 C.F.R.  1.2108.
  	47 C.F.R.  1.2107(b), 1.2109.
  	47 C.F.R.  1.2109(a).
  	Copies of the FCC Form 159 may be obtained by calling the Commissions Forms Distribution Center at 
1-800-418-3676 (outside Washington, D.C.) or 202-418-3676 (in the Washington D.C. area).  Copies of the FCC 
Form 159 can also be obtained via the Internet (http://www.fcc.gov/formpage.html) or by calling the Commissions 
Fax-On-Demand at 202-418-2830.
 	If, subsequent to final submission of its FCC Form 175, a bidder has provided the Commission with a 
written correction of its Taxpayer Identification Number, the bidder should use the corrected number.
  	47 C.F.R.  1.2104(g), 1.2109.
  	47 C.F.R.  1.2109(b). 

  	47 C.F.R.  1.2109(a).
  	47 C.F.R.  1.2104(g)(2).
  	47 C.F.R.  1.2109(c). 

  	47 C.F.R.  1.2109(d).
 	47 C.F.R.  1.2107(c). 
  	47 C.F.R.  1.919.  See 47 C.F.R.  1.2107(f). 
  	Pub. L. No. 105-33, 111 Stat. 251 (1997).
  	See 47 C.F.R.  1.2108(c).
  	See id.
  	See Commission Taking Tough Measures Against Frivolous Pleadings, Public Notice, 11 FCC Rcd 3030 
(1996).
 	 See Auction No. 45 Cellular Rural Service Areas Auction Scheduled for May 29, 2002; Notice and Filing 
Requirements, Minimum Opening Bids, Upfront Payments and Other Auction Procedures, Public Notice, DA 02- 
470 (rel. March 4, 2002), 67 Fed. Reg. 16383 (rel. April 5, 2002) (Auction No. 45 Procedures Public Notice).
 	Auction No. 45 Procedures Public Notice at 3. 
 

 
 


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PUBLIC NOTICE

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