DA 02-563
March 20, 2002

AUCTION OF LICENSES IN THE 698-746 MHz BAND  
SCHEDULED FOR JUNE 19, 2002

Notice and Filing Requirements, Minimum Opening Bids, 
Upfront Payments and Other Auction Procedures 

Report No. AUC-02-44-B (Auction No. 44)
I.	General Information	1
A.	Introduction	1
1.	Background of Proceeding	2
2.	Licenses to Be Auctioned	3
B.	Rules and Disclaimers	6
1.	Relevant Authority	6
2.	Prohibition of Collusion	7
3.	Interference Protection of Television Services	8
4.	Due Diligence	11
5.	Bidder Alerts	12
6.	National Environmental Policy Act (NEPA) Requirements	13
C.	Auction Specifics	14
1.	Auction Date	14
2.	Auction Title	14
3.	Bidding Methodology	14
4.	Pre-Auction Dates and Deadlines	14
5.	Requirements For Participation	14
6.	General Contact Information	15
II.	SHORT-FORM (FCC FORM 175) APPLICATION REQUIREMENTS	16
A.	License Selection	16
B.	Ownership Disclosure Requirements (FCC Form 175 Exhibit A)	16
C.	Consortia And Joint Bidding Arrangements (FCC Form 175 Exhibit B)	16
D.	Eligibility	17
1.	Bidding Credit Eligibility (FCC Form 175 Exhibit C)	17
2.	Tribal Land Bidding Credit	18
3.	Applicability of Part 1 Attribution Rules	18
4.	Supporting Documentation	19
E.	Provisions Regarding Defaulters and Former Defaulters (FCC Form 175 Exhibit 
D)	20
F.	Installment Payments	20
G.	Other Information (FCC Form 175 Exhibits E and F)	20
H.	Minor Modifications to Short-Form Applications (FCC Form 175)	21
I.	Maintaining Current Information in Short-Form Applications (FCC Form 175)	21
III.	PRE-AUCTION PROCEDURES	21
A.	Auction Seminar	21
B.	Short-Form Application (FCC Form 175)  Due May 8, 2002	21
1.	Electronic Filing	22
2.	Completion of the FCC Form 175	22
3.	Electronic Review of FCC Form 175	22
C.	Application Processing and Minor Corrections	22
D.	Upfront Payments  Due May 28, 2002	23
1.	Making Auction Payments by Wire Transfer	23
2.	FCC Form 159	24
3.	Amount of Upfront Payment	24
4.	Applicants Wire Transfer Information for Purposes of Refunds of 
Upfront Payments	26
E.	Auction Registration	26
F.	Electronic Bidding	27
G.	Mock Auction	27
IV.	AUCTION EVENT	27
A.	Auction Structure	27
1.	Simultaneous Multiple Round Auction	27
2.	Maximum Eligibility and Activity Rules	28
3.	Auction Stages	29
4.	Stage Transitions	30
5.	Activity Rule Waivers and Reducing Eligibility	30
6.	Auction Stopping Rules	31
7.	Auction Delay, Suspension, or Cancellation	32
B.	Bidding Procedures	32
1.	Round Structure	32
2.	Reserve Price or Minimum Opening Bid	33
3.	Minimum Accepted Bids and Bid Increments	34
4.	High Bids	35
5.	Bidding	35
6.	Bid Removal and Bid Withdrawal	37
7.	Round Results	38
8.	Auction Announcements	39
9.	Maintaining the Accuracy of FCC Form 175 Information	39
V.	POST-AUCTION PROCEDURES	39
A.	Down Payments and Withdrawn Bid Payments	39
B.	Auction Discount Voucher	39
C.	Long-Form Application	40
D.	Tribal Land Bidding Credit	40
E.	Default and Disqualification	41
F.	Refund of Remaining Upfront Payment Balance	41
VI.	Attachment A:  Licenses to be Auctioned	A-1
VII.	Attachment B:  FCC Auction Seminar Registration Form	B-1
VIII.	Attachment C:  Electronic Filing and Review of the FCC Form 175	C-1
IX.	Attachment D:  Guidelines for Completion of FCC Form 175 and Exhibits	D-1
X.	Attachment E:  Auction-Specific Instructions for FCC Remittance Advice (FCC Form 
159 - February 2000 Edition	E-1
XI.	Attachment F:  Minimum Acceptable Bids, Bid Increments, and the Smoothing Formula	F-1
XII.	Attachment G:  Summary Listing of Documents from the Commission and the Wireless 
Telecommunications Bureau Addressing Application of the Anti-Collusion Rules	G-1

I. GENERAL INFORMATION
A. Introduction
By this public notice, the Wireless Telecommunications Bureau (Bureau) announces the procedures 
and minimum opening bids for the upcoming auction of licenses in the 698-746 MHz (Lower 700 
MHz) band scheduled for June 19, 2002 (Auction No. 44).   On January 24, 2002, in accordance with 
the Balanced Budget Act of 1997,  the Bureau released a public notice seeking comment on reserve 
prices or minimum opening bids and the procedures to be used in Auction No. 44.   The Bureau received 
eight comments  and thirteen reply comments  in response  to the Auction No. 44 Comment Public 
Notice.    

1. Background of Proceeding   
On January 18, 2002, the Commission released the Lower 700 MHz Report & Order which adopted 
allocation and service rules for the Lower 700 MHz Band.   Specifically, the Commission  reallocated  
the  entire  48  megahertz  of  spectrum  in  the  Lower  700  MHz  Band  to  fixed  and  mobile  services  
and  retained  the  existing  broadcast  allocation  for  both  new  broadcast  services  and  incumbent  
broadcast  services  during  their  transition  to  digital  television  (DTV).   The Commission 
established  technical  criteria  designed  to  protect  incumbent  television  operations  in  the  band  
during  the  DTV  transition  period,  allowed  low  power  television  (LPTV)  and  TV  translator  
stations  to  retain  secondary  status  and  operate  in  the  band  after  the  transition,  and  set  forth  a  
mechanism  by  which  pending  broadcast  applications  may  be  amended  to  provide  analog  or  
digital  service  in  the  core  television  spectrum  or  to  provide  digital  service  on  TV  Channels  52-  
58. 

In its service rules, the Commission divided the Lower 700 MHz Band into  three  12-megahertz  blocks,  
with  each  block  consisting  of  a  pair  of  6- megahertz  segments,  and  two  6-megahertz  blocks  of 
contiguous,  unpaired  spectrum.  The Commission will license the five blocks in the Lower 700 MHz  
Band  plan  as  follows:  the  two  6-megahertz  blocks  of  contiguous  unpaired  spectrum,  as  well  as  
two  of  the  three  12-megahertz  blocks  of  paired  spectrum,   will be assigned  over  six  Economic  
Area  Groupings  (EAGs);  the  remaining  12  megahertz  block  of  paired  spectrum will be licensed  
over  734  Metropolitan  Statistical  Areas  (MSAs)  and  Rural  Service  Areas  (RSAs).   All  
operations  in  the  Lower  700  MHz  Band will be generally  regulated  under  the  framework  of  Part  
27s  technical,  licensing,  and  operating  rules.   To permit both wireless services and certain new 
broadcast  operations  in  the  Lower  700  MHz  Band,  however,  the Commission  has  amended  the 
maximum  power  limits  in Part 27 to  permit  50  kW  effective  radiated  power  (ERP)  transmissions  
in  the  Lower  700  MHz  Band,  subject  to  certain  conditions.   Finally, the Commission established  
competitive  bidding  procedures  and  voluntary  band-clearing  mechanisms  for  the  Lower  700  MHz  
Band.   

With respect to the MSA and RSA licenses, the Bureau notes that MSAs and RSAs are collectively 
known as Cellular Market Areas (CMAs).  CMAs 1-306 are based on MSAs; CMAs 307-734 are based 
on RSAs.  The CMA designation, not MSA/RSA, is used in the FCC Automated Auction System and in 
the Universal Licensing System.

2. Licenses to Be Auctioned
The licenses available in Auction No. 44 will include 758 licenses in the Lower 700 MHz band.  In the 
Auction No. 44 Comment Public Notice, the Bureau offered two options for grouping the 758 licenses.  
The Bureau sought comment on 1) grouping all 758 licenses together in Auction No. 44, or 2) including 
only the 734 MSA/RSA licenses in Auction No. 44 and including the 24 Lower 700 MHz EAG licenses 
in  Auction No. 31 with the 12 EAG licenses in the 747-762 and 777-792 MHz bands (Upper 700 MHz 
bands).  The Bureau also sought comment on this issue in a public notice addressing procedures for 
Auction No. 31.    

Commenters were divided on whether to include the 24 Lower 700 MHz band EAG licenses in Auction 
No. 31.  Commenters favoring the inclusion of the Lower 700 MHz band EAG licenses in Auction No. 
31 tended to focus on separating the Lower 700 MHz band EAG licenses from the 734 Lower 700 MHz 
band MSA/RSA licenses rather than on combining the 24 Lower 700 MHz band EAG licenses with the 
12 Upper 700 MHz band EAG licenses.  Commenters opposing inclusion tended to focus on the 
possibility that continuing rule making proceedings in the Lower 700 MHz band might delay auction of 
those licenses and any other licenses grouped with them, including the Upper 700 MHz band licenses.

			(a) 	Comments Favoring Including the Lower 700 MHz EAG Licenses in 
Auction No. 31 

RTG and the Rural 700 MHz Group request that the Commission combine in a single auction the 24 
EAG licenses in the Lower 700 MHz band with the 12 EAG licenses in the Upper 700 MHz band.   
According to the Rural 700 MHz Group, it would be administratively simple for bidders interested in the 
EAG licenses to participate in a single auction, rather than two simultaneous auctions.   The Rural 700 
MHz Group also contends that separating the EAG licenses from the MSA/RSA licenses might attract 
new small business entrants to Auction No. 44.   RTG believes that grouping the MSA/RSA licenses 
with the EAG licenses in the Lower 700 MHz band may discourage many smaller carriers from 
participating in Auction No. 44.   RTG also asserts that grouping the Lower 700 MHz EAG-licenses 
with the Upper 700 MHz EAG-licenses will avoid confusion and improve the efficiency of both Auction 
Nos. 31 and 44.   TCA also supports limiting Auction No. 44 to MSA/RSA licenses, believing that it 
will limit the amount of overall bidding eligibility and increase the number of licenses in the control of 
many different entities, including rural telephone companies.   TCA supports auctioning the MSA/RSA 
licenses separately from the EAG licenses in the Lower 700 MHz band, to further the opportunities for 
small and rural carriers.   McBride also does not want the larger EAG licenses to be grouped with 
MSA/RSA licenses that are likely to be of interest to smaller carriers.   Finally, NTCA agrees with RTG, 
the Rural 700 MHz Group and TCA that auctioning the MSA/RSA licenses separately may increase rural 
carrier and other small business participation.  

Leap believes that grouping the EAG licenses in the Upper and the Lower 700 MHz bands in the same 
auction is the most efficient way to conduct the auction, because bidders will perceive EAG licenses in 
the two bands as relatively substitutable and will implicitly place values on these licenses with reference 
to the price and availability of all others.   Leap also contends that combining Auction Nos. 31 and 44 
would produce an unmanageable situation in a package bidding environment and thus, recommends that 
the MSA/RSA licenses be auctioned separately, without package bidding features.  
	
	(b)	Comments Opposing Including the 24 Lower 700 MHz Band EAG 
Licenses in Auction No. 31

In its comments, Paxson opposes grouping the 24 EAG licenses in Auction No. 44 with the 12 EAG 
licenses in Auction No. 31.   Paxson asserts that there is no chance of clearing the Lower 700 MHz band 
for many years to come, and thus, it recommends that the EAG licenses in Auction No. 31 be kept 
separate from the EAG licenses in Auction No. 44 to assure that a delay in conducting Auction No. 44 
does not result in a delay in the start of Auction No. 31.   Paxson also argues there are no real 
administrative efficiencies to be achieved by linking Auction Nos. 31 and 44, because all of the 
prospective bidders have been planning their software and tracking tools based on current auction 
inventory.   Spectrum Exchange/Allen agrees that all 758 licenses should be sold together, adding that 
the Bureau should use package bidding provisions similar to those employed for Auction No. 31.   The 
Spectrum Alliance also supports Paxsons position that the Bureau should not risk delaying the Upper 
700 MHz auction by linking it with the Lower 700 MHz auction in any regard.   Finally, Entravision 
agrees with Paxson that the Bureaus proposal to group the EAG licenses from both the Upper 700 MHz 
and Lower 700 MHz auctions would delay the Upper 700 MHz auction because postponement of the 
Lower 700 MHz auction is likely due to the heavily encumbered status of the Lower 700 MHz 
spectrum.  

(c)	Comments Advocating Including All Lower and Upper 700 MHz 
Band Licenses in a Single Auction

One commenter, US Cellular, recommends that the Bureau include in a single auction all 12 licenses in 
the Upper 700 MHz band and 758 licenses in the Lower 700 MHz band.   According to US Cellular, a 
consolidation of the auction of the 700 MHz spectrum will help avoid the effects of the head-start 
advantage of licensing EAGs before licensing MSAs/RSAs in the 700 MHz band.  

After careful review of the comments, the Bureau concludes that it will not include the 24 Lower 700 
MHz EAG licenses in Auction No. 31 with the Upper 700 MHz EAG licenses.  The Bureau is not 
persuaded that grouping the MSA/RSA licenses in an auction with the Lower 700 MHz EAG licenses 
will create a disadvantage to small businesses and rural telephone companies.  We do not agree with 
those commenters that believe that separating the 734 MSAs/RSAs from the 24 EAGs would provide 
greater opportunities for small businesses and rural telephone companies.   Larger entities that do not 
qualify for bidding credits would continue to be eligible to participate in an auction of the 734 MSA/RSA 
licenses.  In the Lower 700 MHz Report and Order, the Commission adopted MSAs/RSAs as the 
licensing area for a portion of the Lower 700 MHz band to promote opportunities for a wide variety of 
applicants, including small and rural wireless providers, to obtain spectrum.   However, the Commission 
did not decide to restrict eligibility for these licenses to small and rural service providers.   Because the 
Commission adopted licensing rules for the Lower 700 MHz band that provide for open eligibility, the 
Bureau declines to consider license groupings for the purpose of discouraging participation in the auction 
by any particular class of bidders.  We disagree with those commenters who suggest that grouping the 
MSA/RSA licenses with the EAG licenses in the Lower 700 MHz band may discourage many smaller 
carriers from participating in Auction No. 44.  The Commission has sought to provide small businesses 
with an opportunity to successfully compete against larger, well-financed bidders by defining three tiers 
of small-businesses that are eligible for bidding credits.  As the Commission noted in the Lower 700 MHz 
Report & Order, the use of a third small entity definition may result in the dissemination of licenses 
among an even wider range of small business entities, consistent with its obligations under Section 
309(j)(3)(B) of the Act. 
  
Therefore, Auction No. 44 will include all 758 licenses in the Lower 700 MHz band.  Two 12-megahertz 
blocks consisting of a pair of 6-megahertz segments and two 6-megahertz blocks of contiguous, unpaired 
spectrum will be offered in each of the six 700 MHz band EAGs.  Additionally, one 12-megahertz block 
consisting of a pair of 6-megahertz segments will be offered in each of 734 MSAs/RSAs.  A complete list 
of licenses available in Auction No. 44 and their descriptions is included in Attachment A of this Public 
Notice. 

The following table contains the block/frequency cross-reference for the 698-746 MHz band and also 
shows the current television channelization:

A
B
C
D
E
A
B
C

52
53
54
55
56
57
58
59

698 MHz

746 MHz

Block
Frequencies
Bandwidth
Pairing
Geographic Area Type
No.of Licenses
A
698-704, 728-734
12 MHz
2 x 6 MHz
700 MHz EAG
6

B
704-710, 734-740
12 MHz
2 x 6 MHz
700 MHz EAG
6

C
710-716, 740-746
12 MHz
2 x 6 MHz
MSA/RSA
734

D
716-722

6 MHz
unpaired
700 MHz EAG
6

E
722-728

6 MHz
unpaired
700 MHz EAG
6

		___________________________________________________________________

B. Rules and Disclaimers
1. Relevant Authority
Prospective bidders must familiarize themselves thoroughly with the Commissions rules relating to the 
Lower 700 MHz band contained in Title 47, Part 27 of the Code of Federal Regulations, and those 
relating to application and auction procedures, contained in Title 47, Part 1 of the Code of Federal 
Regulations. Prospective bidders must also be thoroughly familiar with the procedures, terms and 
conditions (collectively, "Terms") contained in this Public Notice; the Auction No. 44 Comment Public 
Notice; and the Part 1 Fifth Report and Order (as well as prior and subsequent Commission proceedings 
regarding competitive bidding procedures). 

Auction participants bidding on licenses in the 698-746 MHz spectrum band should also be familiar with 
the Lower 700 MHz  Notice of Proposed Rule Making,  and the Lower 700 MHz Report & Order.  

The terms contained in the Commissions rules, relevant orders, and public notices are not negotiable.  
The Commission may amend or supplement the information contained in our public notices at any time, 
and will issue public notices to convey any new or supplemental information to bidders.  It is the 
responsibility of all prospective bidders to remain current with all Commission rules and with all public 
notices pertaining to this auction.  Copies of most Commission documents, including public notices, can 
be retrieved from the FCC Auctions Internet site at http://wireless.fcc.gov/auctions.  Additionally, 
documents are available for public inspection and copying during regular business hours at the FCC 
Reference Information Center, Portals II, 445 12th Street, SW, Room CY-A257, Washington, DC, 20554 
or may be purchased from the Commissions duplicating contractor, Qualex International, Portals II, 445 
12th Street, SW, Room CY-B402, Washington, DC 20554, telephone 202-863-2893, facsimile 202-863-
2898, or via e-mail qualexint@aol.com.  When ordering documents from Qualex, please provide the 
appropriate FCC number (for example, FCC 01-364 for the Lower 700 MHz Report and Order).  

2. Prohibition of Collusion     
To ensure the competitiveness of the auction process, the Commissions rules prohibit applicants for the 
same geographic license area from communicating with each other during the auction about bids, bidding 
strategies, or settlements.   This prohibition begins at the short-form application filing deadline and ends 
at the down payment deadline after the auction. Bidders competing for licenses in the same geographic 
license areas are encouraged not to use the same individual as an authorized bidder.  A violation of the 
anti-collusion rule could occur if an individual acts as the authorized bidder for two or more competing 
applicants, and conveys information concerning the substance of bids or bidding strategies between the 
bidders he or she is authorized to represent in the auction.  A violation could similarly occur if the 
authorized bidders are different individuals employed by the same organization (e.g., law firm or 
consulting firm).  In such a case, at a minimum, applicants should certify on their applications that 
precautionary steps have been taken to prevent communication between authorized bidders and that 
applicants and their bidding agents will comply with the anti-collusion rule. 

However, the Bureau cautions that merely filing a certifying statement as part of an application will not 
outweigh specific evidence that collusive behavior has occurred, nor will it preclude the initiation of an 
investigation when warranted.   In Auction No. 44, for example, the rule would apply to any applicants 
bidding for the same MSA/RSA or EAG.  Furthermore, the rule would apply to an applicant bidding for 
an EAG and another applicant bidding for an MSA/RSA within that EAG.   In addition, applicants that 
apply to bid for all markets would be precluded from communicating with all other applicants until 
after the down payment deadline.  However, applicants may enter into bidding agreements before filing 
their FCC Form 175, as long as they disclose the existence of the agreement(s) in their Form 175.   If 
parties agree in principle on all material terms prior to the short-form filing deadline, those parties must 
be identified on the short-form application pursuant to Section 1.2105(c), even if the agreement has not 
been reduced to writing.  If the parties have not agreed in principle by the filing deadline, an applicant 
would not include the names of those parties on its application, and may not continue negotiations with 
other applicants for licenses covering the same geographic areas.   By signing their FCC Form 175 
short-form applications, applicants are certifying their compliance with Section 1.2105(c).  

In addition, Section 1.65 of the Commissions rules requires an applicant to maintain the accuracy and 
completeness of information furnished in its pending application and to notify the Commission within 30 
days of any substantial change that may be of decisional significance to that application.   Thus, 
Sections 1.65 and 1.2105 requires an auction applicant to notify the Commission of any violation of the 
anti-collusion rules upon learning of such violation.  Bidders therefore are required to make such 
notification to the Commission immediately upon discovery. 

A summary listing of documents from the Commission and the Bureau addressing the application of the 
anti-collusion rules may be found in Attachment G.

3. Interference Protection of Television Services
Among other licensing and technical rules, new Lower 700 MHz licensees must comply with the 
interference protection requirements set forth in Section 27.60 of the Commissions rules.   Generally, 
Section 27.60 establishes standards for protection of co- and adjacent-channel analog TV and DTV 
facilities.  Thus, for example, a new licensee seeking to operate on the 698-740 MHz portion of the Lower 
700 MHz band must provide co-channel protection to nearby TV and DTV operations on Channel 59 and 
adjacent-channel protection to stations on Channels 58 and 60.  In addition, Appendix D of the Lower 700 
MHz Report and Order describes additional adjacent-channel interference considerations that are designed 
to mitigate the possibility of base-to-base interference that may arise at base receive stations that are in close 
proximity to high power transmitters operating on adjacent channels.   Moreover, licensees intending to 
operate a facility at a power level of greater than 1 kilowatt must provide advance notice to the Commission 
and to licensees authorized in their area of operation.   New Lower 700 MHz licensees also will have to 
comply with any additional technical requirements or interference protection requirements that may be 
adopted in the future as a result of pending and future rulemaking proceedings.  
Potential bidders should recognize that the interference protection requirements for the Lower 700 MHz 
band are more stringent in certain respects relative to the interference standards that apply to the Upper 700 
MHz band.   These interference obligations will remain in force until the end of the DTV transition period 
at which time analog TV and DTV broadcasters will be require to vacate both the Upper and Lower 700 
MHz bands.   
Potential bidders should be aware that a greater number of broadcast incumbents exist in the Lower 700 
MHz band relative to the Upper 700 MHz band.  The Commission has also observed that, although there is 
approximately the same number of analog incumbents in both the Upper and Lower 700 MHz bands, the 
Lower 700 MHz consists of less spectrum and, therefore, incumbent licensees are more densely situated 
across the band.   Further, there is a significantly greater number of DTV assignments on the eight 
television channels in the Lower 700 MHz band, including licenses, construction permits, pending 
applications, and pending allotment petitions, than exist in the Upper 700 MHz band.   The Commission 
may also permit certain Channel 60-69 broadcasters to relocate temporarily into Channels 52-58 pursuant 
to a voluntary clearing arrangement. 

a. Negotiations with Incumbent Broadcast Licensees  
The Commission has established a policy of facilitating voluntary clearing of the 700 MHz bands to 
allow for the introduction of new wireless services and to promote the transition of incumbent analog 
television licensees to DTV service.   Generally speaking, this policy provides that the Commission will 
consider specific regulatory requests needed to implement voluntary agreements between incumbent 
broadcasters and new licensees to clear the Lower 700 MHz Band early, if consistent with the public 
interest.  The fundamentals of the Commissions voluntary clearing policy for the 700 MHz bands were 
established in a series of decisions beginning with the adoption of the Upper 700 MHz First Report and 
Order in January 2000.   However, in light of certain differences between the Upper and Lower 700 
MHz Bands, the Commission decided not to extend certain aspects of its voluntary clearing policy to the 
Lower 700 MHz band, including the presumptions that were established in the Upper 700 MHz Band for 
analyzing voluntary band-clearing proposals and the extended DTV construction period that was 
provided to certain single-channel broadcasters in connection with the arrangements for early clearing of 
the Upper 700 MHz band.   In considering such regulatory requests, the Commission will consider 
whether grant of the request would result in public interest benefits, such as making new or expanded 
public safety or other wireless services available to consumers or deploying wireless service to rural or 
other underserved communities.   The Commission intends to weigh these benefits against any likely 
public interest costs, such as the loss of any of the four stations in the designated market area with the 
largest audience share, the loss of the sole service licensed to the local community, the loss of a 
communitys sole service on a channel reserved for noncommercial educational broadcast service, or a 
negative effect on the pace of the DTV transition in the market. 

b. Canadian and Mexican Border Regions (Auction # 44)
The United States has bilateral agreements with both Canada and Mexico setting forth allotment and 
assignment plans for TV broadcast stations covering the 698-746 MHz band (Channels 52-59).  While 
the U.S. has identified this band for reallocation to new services, neither Canada nor Mexico has done so 
to date.   Pursuant to these agreements, the U.S. must protect the signals of Canadian and Mexican TV 
broadcast stations located in the border areas, and such operations will therefore affect U.S. non-
broadcast use and services in this band.  Accordingly, licenses issued for this band will be subject to 
whatever future agreements the U. S. develops with these two countries.  Furthermore, until such time as 
existing agreements are replaced or modified to reflect the new uses, licensees in the band will be subject 
to existing agreements and the condition that harmful interference not be caused to, and must be accepted 
from, television broadcast operations in those countries. 

4. Due Diligence
Potential bidders are reminded that there are a number of incumbent broadcast television licensees 
already licensed and operating in the 698-746 MHz band (television Channels 52-59) that will be subject 
to the upcoming auction. As discussed above in greater detail, the Commission made clear that 
geographic area licensees operating on the spectrum associated with Channels 52, 53, 54, 55, 56, 57, 58 
and 59 must comply with the co-channel and the adjacent channel provision of Section 27.60 of the 
Commissions rules.   These limitations may restrict the ability of such geographic licensees to use 
certain portions of the electromagnetic spectrum or provide service to certain regions in their geographic 
license areas.  

Potential bidders are solely responsible for identifying associated risks and for investigating and 
evaluating the degree to which such matters may affect their ability to bid on, otherwise acquire, 
or make use of licenses available in Auction No. 44.

To aid potential bidders, the Bureau will issue shortly a Due Diligence Announcement listing incumbent 
licensees operating in these bands.  The Commission makes no representations or guarantees that the 
matters listed in this Due Diligence Announcement are the only pending matters that could affect 
spectrum availability in these services.

Potential bidders also should be aware that certain applications (including those for modification), 
petitions for rulemaking, requests for special temporary authority (STA), waiver requests, petitions to 
deny, petitions for reconsideration, and applications for review may be pending before the Commission 
and relate to particular applicants or incumbent licensees.  In addition, certain decisions reached in this 
proceeding may be subject to judicial appeal and may be the subject of additional reconsideration or 
appeal.   We note that resolution of these matters could have an impact on the availability of spectrum in 
Auction No. 44.  In addition, although the Commission will continue to act on pending applications, 
requests and petitions, some of these matters may not be resolved by the time of the auction.  To aid 
potential bidders, the Bureau will issue shortly a Due Diligence Announcement listing matters pending 
before the Commission that relate to licenses or applications in these services.  The Commission makes 
no representations or guarantees that the listed matters are the only pending matters that could affect 
spectrum availability in these services.

	
In addition, potential bidders may research the licensing database for the Mass Media Bureau on the 
Internet in order to determine which frequencies are already licensed to incumbent licensees. The 
Commission makes no representations or guarantees regarding the accuracy or completeness of 
information in its databases or any third party databases, including, for example, court docketing systems.  
Furthermore, the Commission makes no representations or guarantees regarding the accuracy or 
completeness of information that has been provided by incumbent licensees and incorporated into the 
database.  Potential bidders are strongly encouraged to physically inspect any sites located in, or 
near, the EAG, MSA, or RSA for which they plan to bid.

Licensing records for the Mass Media Bureau are contained in the Mass Media Bureaus Consolidated 
Data Base System (CDBS) and may be researched on the Internet at http://www.fcc.gov/mmb/.  Potential 
bidders may query the database online and download a copy of their search results if desired.  Detailed 
instructions on using Search for Station Information, Search for Ownership Report Information and 
Search for Application Information and downloading query results are available online by selecting the 
CDBS Public Access (main) button at the bottom of the Electronic Filing and Public Access list section.  
The database searches return either station or application data. The application search provides an 
application link that displays the complete electronically filed application in application format.  An 
AL/TC search under the application search link permits searching for Assignment of License/Transfer of 
Control groups using the AL/TC group lead application. For further details, click on the Help file.

Potential bidders should direct questions regarding the search capabilities of CDBS to the Mass Media 
Bureau help line at (202) 418-2662, or via e-mail at mmbinfo@fcc.gov.

5. Bidder Alerts
All applicants must certify on their FCC Form 175 applications under penalty of perjury that they are 
legally, technically, financially and otherwise qualified to hold a license, and not in default on any 
payment for Commission licenses (including down payments) or delinquent on any non-tax debt owed to 
any Federal agency.   Prospective bidders are reminded 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.

The FCC makes no representations or warranties about the use of this spectrum for particular 
services.  Applicants should be aware that an FCC auction represents an opportunity to become an 
FCC licensee in this service, subject to certain conditions and regulations.  An FCC auction does 
not constitute an endorsement by the FCC of any particular services, technologies or products, nor 
does an FCC license constitute a guarantee of business success.  Applicants and interested parties 
should perform their own due diligence before proceeding, as they would with any new business 
venture.

As is the case with many business investment opportunities, some unscrupulous entrepreneurs may 
attempt to use Auction No. 44 to deceive and defraud unsuspecting investors.  Common warning signals 
of fraud include the following:

? The first contact is a cold call from a telemarketer, or is made in response to an inquiry 
prompted by a radio or television infomercial.
? The offering materials used to invest in the venture appear to be targeted at IRA funds, for 
example, by including all documents and papers needed for the transfer of funds maintained in 
IRA accounts.
? The amount of investment is less than $25,000.
? The sales representative makes verbal representations that:  (a) the Internal Revenue Service 
(IRS), Federal Trade Commission (FTC), Securities and Exchange Commission (SEC), 
FCC, or other government agency has approved the investment; (b) the investment is not subject 
to state or federal securities laws; or (c) the investment will yield unrealistically high short-term 
profits.  In addition, the offering materials often include copies of actual FCC releases, or quotes 
from FCC personnel, giving the appearance of FCC knowledge or approval of the solicitation.
Information about deceptive telemarketing investment schemes is available from the FTC at (202) 326-
2222 and from the SEC at (202) 942-7040.  Complaints about specific deceptive telemarketing 
investment schemes should be directed to the FTC, the SEC, or the National Fraud Information Center at 
(800) 876-7060.  Consumers who have concerns about specific proposals regarding Auction No. 44 may 
also call the FCC Consumer Center at (888) CALL-FCC ((888) 225-5322).

6. National Environmental Policy Act (NEPA) Requirements
Licensees must comply with the Commissions rules regarding the National Environmental Policy Act 
(NEPA).   The construction of a wireless antenna facility is a federal action and the licensee must 
comply with the Commissions NEPA rules for each such facility.   The Commissions NEPA rules 
require, among other things, that the licensee consult with expert agencies having NEPA responsibilities, 
including the U.S. Fish and Wildlife Service, the State Historic Preservation Office, the Army Corp of 
Engineers and the Federal Emergency Management Agency (through the local authority with jurisdiction 
over floodplains).  The licensee must prepare environmental assessments for facilities that may have a 
significant impact in or on wilderness areas, wildlife preserves, threatened or endangered species or 
designated critical habitats, historical or archaeological sites, Indian religious sites, floodplains, and 
surface features.  The licensee must also prepare environmental assessments for facilities that include 
high intensity white lights in residential neighborhoods or excessive radio frequency emission.
 
C. Auction Specifics
1. Auction Date
The auction will begin on Wednesday, June 19, 2002.   The initial schedule for bidding will be 
announced by public notice at least one week before the start of the auction.  Unless otherwise 
announced, bidding on all licenses will be conducted on each business day until bidding has stopped on 
all licenses.

2. Auction Title
Auction No. 44  Lower 700 MHz Band 

3. Bidding Methodology
The bidding methodology for Auction No. 44 will be simultaneous multiple round bidding.  The 
Commission will conduct this auction over the Internet.  Telephonic bidding will also be available.  As a 
contingency, the FCC Wide Area Network, which requires access to a 900 number telephone service, 
will be available as well.  Qualified bidders are permitted to bid telephonically or electronically.

4. Pre-Auction Dates and Deadlines
Auction Seminar 	May 1, 2002
Short-Form Application (FCC FORM 175) 	May 8, 2002; 6:00 p.m. ET
Upfront Payments (via wire transfer) 	May 28, 2002; 6:00 p.m. ET
Mock Auction 	June 14, 2002
Auction Begins	June 19, 2002

5. Requirements For Participation
Those wishing to participate in the auction must:

? Submit a short-form application (FCC Form 175) electronically by 6:00 p.m. ET, May 8, 2002.
? Submit a sufficient upfront payment and an FCC Remittance Advice Form (FCC Form 159) by 
6:00 p.m. ET, May 28, 2002.
? Comply with all provisions outlined in this public notice.
6. General Contact Information
GENERAL AUCTION INFORMATION
FCC Auctions Hotline 
General Auction Questions
(888) 225-5322, Press Option #2
Seminar Registration
or direct (717) 338-2888

Hours of service: 8 a.m.  5:30 p.m. ET
AUCTION LEGAL INFORMATION
Auctions and Industry Analysis Division
Auction Rules, Policies, Regulations
Legal Branch (202) 418-0660

LICENSING INFORMATION
Commercial Wireless Division
Rules, Policies, Regulations 
Licensing Issues 
Due Diligence
Incumbency Issues
(202) 418-0620

TECHNICAL SUPPORT
FCC Auctions Technical Support Hotline
Electronic Filing 
(202) 414-1250 (Voice), 
Automated Auction System
(202) 414-1255 (TTY) 
Hours of service: Monday through Friday 7 a.m. to 
10:00 p.m. ET, Saturday, 8:00 a.m. to 7:00 p.m., 
Sunday, 12:00 noon to 6:00 p.m.

PAYMENT INFORMATION
FCC Auctions Accounting Branch
Wire Transfers
(202) 418-1995
Refunds
(202) 418-2843 (Fax)
TELEPHONIC BIDDING
Will be furnished only to qualified bidders
FCC COPY CONTRACTOR
Qualex International
Additional Copies of
Portals II, 445 12th Street, SW, Room CY-B402
Commission Documents
Washington, DC  20554 
(202) 863-2893
(202) 863-2898 (Fax)
 qualexint@aol.com (E-mail) 

PRESS INFORMATION
Meribeth McCarrick (202) 418-0654

FCC FORMS
(800) 418-3676 (outside Washington, DC) 
(202) 418-3676 (in the Washington Area)
http://www.fcc.gov/formpage.html
FCC INTERNET SITES

http://www.fcc.gov
http://wireless.fcc.gov/auctions
http://wireless.fcc.gov/uls

II. SHORT-FORM (FCC FORM 175) APPLICATION REQUIREMENTS

Guidelines for completion of the short-form (FCC Form 175) are set forth in Attachment D to this public 
notice.  The short-form application seeks the applicants name and address, legal classification, status, 
small, very small business or entrepreneur bidding credit eligibility, identification of the license(s) 
sought, the authorized bidders and contact persons.  All applicants must certify on their FCC Form 175 
applications under penalty of perjury that they are legally, technically, financially and otherwise qualified 
to hold a license and, as discussed below in Section II.E (Provisions Regarding Defaulters and Former 
Defaulters), that they are not in default on any payment for Commission licenses (including down 
payments) or delinquent on any non-tax debt owed to any Federal agency.

A. License Selection
In Auction No. 44, Form 175 will include a mechanism that allows an applicant to filter the licenses by 
License Area (either EAG or CMA),   Market Number, and/or Block to create customized lists of 
licenses.  The applicant will make selections for one or more of the filter criteria and the system will 
produce a list of licenses satisfying the specified criteria.  The applicant may apply for all the licenses in 
the customized list by using the Save all filtered licenses option; select and save individual licenses 
separately from the list; or create a second customized list without selecting any of the licenses from the 
first list.  Applicants also will be able to select licenses from one customized list and then create a second 
customized list to select additional licenses. 

B. Ownership Disclosure Requirements (FCC 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.  Specifically, in 
completing FCC 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. 

C. Consortia And Joint Bidding Arrangements (FCC Form 175 Exhibit B)
Applicants will be required to identify on their short-form applications any parties with whom they have 
entered into any consortium arrangements, joint ventures, partnerships or other agreements or 
understandings which relate in any way to the licenses being auctioned, including any agreements 
relating to post-auction market structure.   Applicants will also be required to certify on their short-form 
applications that they have not entered into any explicit or implicit agreements, arrangements or 
understandings of any kind with any parties, other than those identified, regarding the amount of their 
bids, bidding strategies, or the particular licenses on which they will or will not bid.   As discussed 
above, if an applicant has had discussions, but has not reached a joint bidding agreement by the short-
form deadline, it would not include the names of parties to the discussions on its applications and may 
not continue discussions with applicants for the same geographic license area(s) after the deadline.   
Where applicants have entered into consortia or joint bidding arrangements, applicants must submit an 
Exhibit B to the FCC Form 175.

A party holding a non-controlling, attributable interest in one applicant will be permitted to acquire an 
ownership interest in, form a consortium with, or enter into a joint bidding arrangement with other 
applicants for licenses in the same geographic license area provided that (i) the attributable interest 
holder certifies that it has not and will not communicate with any party concerning the bids or bidding 
strategies of more than one of the applicants in which it holds an attributable interest, or with which it 
has formed a consortium or entered into a joint bidding arrangement; and (ii) the arrangements do not 
result in a change in control of any of the applicants.   While the anti-collusion rules do not prohibit 
non-auction related business negotiations among auction applicants, bidders are reminded that certain 
discussions or exchanges could touch upon impermissible subject matters because they may convey 
pricing information and bidding strategies.

D. Eligibility
1. Bidding Credit Eligibility (FCC Form 175 Exhibit C)
Bidding credits will be available to small and very small businesses and entrepreneurs, or consortia, 
thereof, as defined in 47 C.F.R.  27.702 for the Lower 700 MHz band.   A bidding credit represents the 
amount by which a bidders winning bids are discounted.   The size of the bidding credit depends on the 
average of the aggregated annual gross revenues for each of the preceding three years of the bidder, its 
affiliates, its controlling interests, and the affiliates of its controlling interests:

? A bidder with attributed average annual gross revenues of not more than $40 million for the 
preceding three years (small business) receives a 15 percent discount on its winning bids for the 
Lower 700 MHz licenses; 

? A bidder with attributed average annual gross revenues of not more than $15 million for the 
preceding three years (very small business) receives a 25 percent discount on its winning bids for 
the Lower 700 MHz licenses; 

? A bidder with attributed average annual gross revenues of not more than $3 million for the preceding 
three years (entrepreneur) receives a 35 percent discount on its winning bids for the 734 
MSA/RSA licenses in the Lower 700 MHz band. This definition applies only with respect to licenses 
in Block C (710-716 MHz and 740-746 MHz) as specified in  27.5(c)(1).

A bidder that qualifies as an entrepreneur may bid on EAG licenses, but will receive a 25 percent bidding 
credit on any EAG license that it wins.  Bidding credits are not cumulative; a qualifying applicant 
receives either the 15 percent, 25 percent, or 35 percent bidding credit on its winning bid, but only one of 
them per license.

2. Tribal Land Bidding Credit
To encourage the growth of wireless services in federally recognized tribal lands the Commission has 
implemented a tribal land bidding credit.  See Part V.C. of this Public Notice.

3. Applicability of Part 1 Attribution Rules
Controlling interest standard.  On August 14, 2000, the Commission released the Part 1 Fifth Report 
and Order,  in which the Commission, inter alia, adopted a controlling interest standard for 
attributing to auction applicants the gross revenues of their investors and affiliates in determining small 
business eligibility for future auctions.   The Commission observed that the rule modifications adopted 
in the various Part 1 orders would result in discrepancies and/or redundancies between certain of the new 
Part 1 rules and existing service-specific rules, and the Commission delegated to the Bureau the authority 
to make conforming edits to the Code of Federal Regulations (CFR) consistent with the rules adopted in 
the Part 1 proceeding.   Part 1 rules that superseded inconsistent service-specific rules will control in 
Auction No. 44.   Accordingly, the controlling interest standard as set forth in the Part 1 rules will be 
in effect for Auction No. 44, even if conforming edits to the CFR are not made prior to the auction. 

Control.  The term control includes both de facto and de jure control of the applicant.  Typically, 
ownership of at least 50.1 percent of an entitys voting stock evidences de jure control.  De facto control 
is determined on a case-by-case basis.   The following are some common indicia of de facto control:

? the entity constitutes or appoints more than 50 percent of the board of directors or management 
committee;
? the entity has authority to appoint, promote, demote, and fire senior executives that control the 
day-to-day activities of the licensee; or
? the entity plays an integral role in management decisions.
Attribution for small,  very small business and entrepreneur eligibility.  In determining which entities 
qualify as small, very small businesses or entrepreneur, the Commission will consider the gross revenues 
of the applicant, its affiliates, its controlling interests, and the affiliates of its controlling interests.  The 
Commission does not impose specific equity requirements on controlling interest holders.  Once the 
principals or entities with a controlling interest are determined, only the revenues of those principals or 
entities, the affiliates of those principals or entities, the applicant and its affiliates, will be counted in 
determining small business eligibility.

A consortium of small, very small businesses or entrepreneurs is a conglomerate organization formed as 
a joint venture between or among mutually independent business firms, each of which individually must 
satisfy the definition of small, very small business and entrepreneur in Sections 1.2110(f), 27.702.  Thus, 
each consortium member must disclose its gross revenues along with those of its affiliates, its controlling 
interests, and the affiliates of its controlling interests.  We note that although the gross revenues of the 
consortium members will not be aggregated for purposes of determining eligibility for small, very small 
business or entrepreneur credits, this information must be provided to ensure that each individual 
consortium member qualifies for any bidding credit awarded to the consortium.

4. Supporting Documentation
Applicants should note that they will be required to file supporting documentation to their FCC Form 175 
short-form applications to establish that they satisfy the eligibility requirements to qualify as small, very 
small businesses or entrepreneurs (or consortia of small, very small businesses or entrepreneurs) for this 
auction. 

Applicants should further note that 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.

Small business, very small business, or entrepreneur eligibility (Exhibit C).  Entities applying to bid as 
small or very small businesses or entrepreneurs (or consortia of small or very small businesses or 
entrepreneurs) will be required to disclose on Exhibit C to their FCC Form 175 short-form applications, 
separately and in the aggregate, the gross revenues for the preceding three years of each of the 
following: (1) the applicant, (2) its affiliates, (3) its controlling interests, and (4) the affiliates of its 
controlling interests.  Certification that the average annual gross revenues for the preceding three 
years do not exceed the applicable limit is not sufficient.  A statement of the total gross revenues 
for the preceding three years is also insufficient.  The applicant must provide separately for itself, 
its affiliates, its controlling interests, and the affiliates of its controlling interests, a schedule of 
gross revenues for each of the preceding three years, as well as a statement of total average gross 
revenues for the three-year period.  If the applicant is applying as a consortium of small, very small 
businesses or entrepreneur, this information must be provided for each consortium member.

E. Provisions Regarding Defaulters and Former Defaulters (FCC 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.   In addition, each 
applicant must attach to its FCC Form 175 application a statement made under penalty of perjury 
indicating whether or not the applicant, its affiliates, its controlling interests, or the affiliates of its 
controlling interest have ever been in default on any Commission licenses or have ever been delinquent on 
any non-tax debt owed to any Federal agency.  The applicant must provide such information for itself, for 
each of its controlling interests and affiliates, and for each affiliate of its controlling interests, as defined 
by Section 1.2110 of the Commissions rules (as amended in the Part 1 Fifth Report and Order).   
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, further, 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. 44, provided that they are otherwise qualified.  
However, as discussed infra in Section III.D.3, former defaulters are required to pay upfront payments 
that are fifty percent more than the normal upfront payment amounts. 

F. Installment Payments
Installment payment plans will not be available in Auction No. 44.

G. Other Information (FCC Form 175 Exhibits E and F)
Applicants owned by minorities or women, as defined in 47 C.F.R.  1.2110(c)(2), may attach an exhibit 
(Exhibit E) regarding this status.  This applicant status information is collected for statistical purposes 
only and assists the Commission in monitoring the participation of designated entities in its auctions.  
Applicants wishing to submit additional information may do so on Exhibit F (Miscellaneous Information) 
to the FCC Form 175.

H. Minor Modifications to Short-Form Applications (FCC Form 175)
After the short-form filing deadline (May 8, 2002), applicants may make only minor changes to their 
FCC Form 175 applications.  Applicants will not be permitted to make major modifications to their 
applications (e.g., change their license selections or proposed service areas, change the certifying official 
or change control of the applicant or change bidding credits).  See 47 C.F.R.  1.2105.  Permissible minor 
changes include, for example, deletion and addition of authorized bidders (to a maximum of three) and 
revision of exhibits.  Applicants should make these modifications to their FCC Form 175 electronically 
and submit a letter, briefly summarizing the changes, by electronic mail to the attention of Margaret 
Wiener, Chief, Auctions and Industry Analysis Division, at the following address: auction44@fcc.gov.  
The electronic mail summarizing the changes must include a subject or caption referring to Auction No. 
44.  The Bureau requests that parties format any attachments to electronic mail as Adobe Acrobat (pdf) 
or Microsoft Word documents. 

A separate copy of the letter should be faxed to the attention of Kathryn Garland at (717) 338-2850. 
Questions about other changes should be directed to Howard Davenport of the Auctions and Industry 
Analysis Division at (202) 418-0660.

I. Maintaining Current Information in Short-Form Applications (FCC Form 175)
Applicants have an obligation under 47 C.F.R. 1.65, to maintain the completeness and accuracy of 
information in their short-form applications.  Amendments reporting substantial changes of possible 
decisional significance in information contained in FCC Form 175 applications, as defined by 47 C.F.R. 
 1.2105(b)(2), will not be accepted and may in some instances result in the dismissal of the FCC Form 
175 application.

III. PRE-AUCTION PROCEDURES
A. Auction Seminar
On Wednesday, May 1, 2002, the FCC will sponsor a free seminar for Auction No. 44 at the Federal 
Communications Commission, located at 445 12th Street, SW, Washington, DC.  The seminar will 
provide attendees with information about pre-auction procedures, conduct of the auction, the FCC 
Automated Auction System, and the lower 700 MHz and auction rules.  The seminar will also provide an 
opportunity for prospective bidders to ask questions of FCC staff.

To register, complete the registration form attached hereto as Attachment B and submit it by Monday, 
April 29, 2002.  Registrations are accepted on a first-come, first-served basis.

B. Short-Form Application (FCC Form 175)  Due May 8, 2002
In order to be eligible to bid in this auction, applicants must first submit an FCC Form 175 application.  
This application must be submitted electronically and received at the Commission no later than 6:00 p.m. 
ET on May 8, 2002.  Late applications will not be accepted.

There is no application fee required when filing an FCC Form 175.  However, to be eligible to bid, an 
applicant must submit an upfront payment.  See Part III.D, below.

1. Electronic Filing
Applicants must file their FCC Form 175 applications electronically.   Applications may generally be 
filed at any time beginning at noon ET on May 1, 2002, until 6:00 p.m. ET on May 8, 2002.  Applicants 
are strongly encouraged to file early and are responsible for allowing adequate time for filing their 
applications.  Applicants may update or amend their electronic applications multiple times until the filing 
deadline on May 8, 2002.

Applicants must press the  SUBMIT Application button on the Submission page of the electronic 
form to successfully submit their FCC Form 175s.  Any form that is not submitted will not be reviewed 
by the FCC.  Information about accessing the FCC Form 175 is included in Attachment C.  Technical 
support is available at (202) 414-1250 (voice) or (202) 414-1255 (text telephone (TTY)); the hours of 
service Monday through Friday, from 7:00 AM to 10:00 PM ET, Saturday, 8:00 AM to 7:00 PM ET, and 
Sunday, 12:00 noon to 6:00 PM ET.  In order to provide better service to the public, all calls to the 
hotline are recorded.

Applicants can also contact Technical Support via e-mail.  To obtain the address, click the Support tab 
on the Form 175 Homepage.

2. Completion of the FCC Form 175
Applicants should carefully review 47 C.F.R.  1.2105, and must complete all items on the FCC Form 
175.  Instructions for completing the FCC Form 175 are in Attachment D of this public notice. 
Applicants are encouraged to begin preparing the required attachments for FCC Form 175 prior to 
submitting the form.  Attachments C and D to this public notice provide information on the required 
attachments and appropriate formats.

3. Electronic Review of FCC Form 175
The FCC Form 175 electronic review system may be used to locate and print applicants FCC Form 175 
information.  Applicants may also view other applicants completed FCC Form 175s after the filing 
deadline has passed and the FCC has issued a public notice explaining the status of the applications.  
NOTE: Applicants should not include sensitive information (i.e., TIN/EIN) on any exhibits to their FCC 
Form 175 applications.  There is no fee for accessing this system.  See Attachment C for details on 
accessing the review system.

C. Application Processing and Minor Corrections
After the deadline for filing the FCC Form 175 applications has passed, the FCC will process all timely 
submitted applications to determine which are acceptable for filing, and subsequently will issue a public 
notice identifying:  (1) those applications accepted for filing; (2) those applications rejected; and (3) 
those applications which have minor defects that may be corrected, and the deadline for filing such 
corrected applications.

As described more fully in the Commissions rules, after the May 8, 2002, short-form filing deadline, 
applicants may make only minor corrections to their FCC Form 175 applications.  Applicants will not be 
permitted to make major modifications to their applications (e.g., change their license selections, change 
the certifying official, change control of the applicant, or change bidding credit eligibility). 

D. Upfront Payments  Due May 28, 2002
In order to be eligible to bid in the auction, applicants must submit an upfront payment accompanied by 
an FCC Remittance Advice Form (FCC Form 159).  After completing the FCC Form 175, filers will have 
access to an electronic version of the FCC Form 159 that can be printed and faxed to Mellon Bank in 
Pittsburgh, PA.  All upfront payments must be received at Mellon Bank by 6:00 p.m. ET on May 28, 
2002. 

Please note that:

? All payments must be made in U.S. dollars.
? All payments must be made by wire transfer.
? Upfront payments for Auction No. 44 go to a lockbox number different from the lockboxes used 
in previous FCC auctions, and different from the lockbox number to be used for post-auction 
payments.
? Failure to deliver the upfront payment by the May 28, 2002, deadline will result in dismissal of 
the application and disqualification from participation in the auction.

1. Making Auction Payments by Wire Transfer
Wire transfer payments must be received by 6:00 p.m. ET on May 28, 2002.  To avoid untimely 
payments, applicants should discuss arrangements (including bank closing schedules) with their banker 
several days before they plan to make the wire transfer, and allow sufficient time for the transfer to be 
initiated and completed before the deadline.  Applicants will need the following information:

ABA Routing Number:   043000261
Receiving Bank: Mellon Pittsburgh
BENEFICIARY:   FCC/Account # 910-1182
OBI Field:   (Skip one space between each information item)
AUCTIONPAY
FCC REGISTRATION NUMBER (FRN):  (same as FCC Form 159, block 11 and/or 21)
PAYMENT TYPE CODE   (same as FCC Form 159, block 24A: A44U)
FCC CODE  1 (same as FCC Form 159, block 28A: 44)
PAYER NAME   (same as FCC Form 159, block 2)
LOCKBOX NO.   # 358415

NOTE:  The BNF and Lockbox number are specific to the upfront payments for this auction; do not use 
BNF or Lockbox numbers from previous auctions.

Applicants must fax a completed FCC Form 159 (Revised 2/00) 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).  On the 
cover sheet of the fax, write Wire Transfer  Auction Payment for Auction Event No. 44.  Bidders 
should confirm receipt of their upfront payment at Mellon Bank by contacting their sending 
financial institution.

2. FCC Form 159
A completed FCC Remittance Advice Form (FCC Form 159, Revised 2/00) must be faxed to Mellon 
Bank in order to accompany each upfront payment.  Proper completion of FCC Form 159 (Revised 2/00) 
is critical to ensuring correct credit of upfront payments.  Detailed instructions for completion of FCC 
Form 159 are included in Attachment E to this public notice.  An electronic version of the FCC Form 159 
is available after filing the FCC Form 175.  The FCC Form 159 can be completed electronically, but must 
be filed with Mellon Bank via facsimile.

3. 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 appropriate upfront 
payment(s) for each auction.   In addition, in the Part 1 Fifth Report and Order, the Commission 
ordered that 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, be required to pay 
upfront payments fifty percent greater than non-former defaulters.   For purposes of this calculation, 
the applicant includes the applicant itself, its affiliates, its controlling interests, and affiliates of its 
controlling interests, as defined by Section 1.2110 of the Commissions rules (as amended in the Part 1 
Fifth Report and Order). 

In the Auction No. 44 Comment Public Notice, we proposed translating bidders upfront payments to 
bidding units to define a bidders maximum eligibility.   In order to bid on a license, otherwise qualified 
bidders who applied for that license on Form 175 must have an eligibility level that meets or exceeds the 
number of bidding units assigned to that license.  At a minimum, therefore, an applicants total upfront 
payment must be enough to establish eligibility to bid on at least one of the licenses applied for on Form 
175, or else the applicant will not be eligible to participate in the auction.  An applicant does not have to 
make an upfront payment to cover all licenses for which the applicant has applied on Form 175, but 
rather to cover the maximum number of bidding units that are associated with licenses on which the 
bidder wishes to place bids and hold high bids at any given time.

In the Auction No. 44 Comment Public Notice,  the Bureau proposed upfront payments on a license-by-
license basis using the following formula: 

         $0.0125 * MHz * License Area Population  with a minimum of $1,000 per license. 

We did not receive any comments on the general levels of the upfront payments.  However, the Rural 700 
MHz Group requests that the rate for calculating minimum opening bids for RSAs be one-half of the rate 
applied to MSAs, since it is more costly to build out a rural telecommunications system than a system in 
a metropolitan area.   The Bureau notes that there are numerous factors affecting the relative costs of 
build-out, and elects to adopt the proposed formula for determining upfront payments.

The specific upfront payments and bidding units for each license are set forth in Attachment A of this 
Public Notice.

In calculating its upfront payment amount, an applicant should determine the maximum number of 
bidding units on which it may wish to be active (bidding units associated with licenses on which the 
bidder has the standing high bid from the previous round and licenses on which the bidder places a bid in 
the current round) in any single round, and submit an upfront payment covering that number of bidding 
units.  In order to make this calculation, an applicant should add together the upfront payments for all 
licenses on which it seeks to bid in any given round.  Bidders should check their calculations 
carefully, as there is no provision for increasing a bidders maximum eligibility after the upfront 
payment deadline.

Example: Lower 700 MHz Band Upfront Payments and Bidding Flexibility

Market No.
Block
Market Name
Population
Bidding 
Units
Upfront 
Payment

CMA153
C
Columbus, GA-AL
243,072
36,000
$ 36,000

CMA311
C
Alabama 5 -Cleburne
206,735
31,000
$ 31,000

If a bidder wishes to bid on both licenses in a round, it must have selected both on its FCC Form 175 and  
purchased at least 67,000 bidding units (36,000 + 31,000).  If a bidder only wishes to bid on one, but not both, 
purchasing 36,000 bidding units would meet the requirement for either license.  The bidder would be able to 
bid on either license, but not both at the same time.  If the bidder purchased only 31,000 bidding units, it 
would have enough eligibility for the Alabama 5 - Cleburne license but not for the Columbus, GA-AL license.

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 order to calculate 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.
NOTE:  An applicant may, on its FCC Form 175, apply for every applicable license being offered, but its 
actual bidding in any round will be limited by the bidding units reflected in its upfront payment.
4. Applicants Wire Transfer Information for Purposes of Refunds of Upfront 
Payments
The Commission will use wire transfers for all Auction No. 44 refunds.  To ensure that refunds of 
upfront payments are processed in an expeditious manner, the Commission is requesting that all pertinent 
information as listed below be supplied to the FCC.  Applicants can provide the information 
electronically during the initial short-form filing window after the form has been submitted.   Wire 
Transfer Instructions can also be manually faxed to the FCC, Financial Operations Center, Auctions 
Accounting Group, ATTN: Tim Dates or Gail Glasser, at (202) 418-2843 by May 28, 2002. All refunds 
will be returned to the payer of record as identified on the FCC Form 159 unless the payer submits 
written authorization instructing otherwise.  For additional information, please call (202) 418-1995.

Name of Bank
ABA Number
Contact and Phone Number
Account Number to Credit
Name of Account Holder
FCC Registration Number (FRN)
Taxpayer Identification Number (see below)
Correspondent Bank (if applicable)
ABA Number
Account Number

(Applicants should also note that implementation of the Debt Collection Improvement Act of 1996 
requires the FCC to obtain a Taxpayer Identification Number (TIN) before it can disburse refunds.)  
Eligibility for refunds is discussed in Part V.E., below.

E. Auction Registration
Approximately ten days before the auction, the FCC will issue a public notice announcing all qualified 
bidders for the auction.  Qualified bidders are those applicants whose FCC Form 175 applications have 
been accepted for filing and have timely submitted upfront payments sufficient to make them eligible to 
bid on at least one of the licenses for which they applied.

All qualified bidders are automatically registered for the auction.  Registration materials will be 
distributed prior to the auction by two separate overnight mailings, one containing the confidential bidder 
identification number (BIN) required to place bids and the other containing the SecurID cards.  These 
mailings will be sent only to the contact person at the contact address listed in the FCC Form 175.

Applicants that do not receive both registration mailings will not be able to submit bids.  Therefore, any 
qualified applicant that has not received both mailings by noon on Wednesday, June 12, 2002, should 
contact the Auctions Hotline at (717) 338-2888.  Receipt of both registration mailings is critical to 
participating in the auction and each applicant is responsible for ensuring it has received all of the 
registration material.

Qualified bidders should note that lost bidder identification numbers or SecurID cards can be replaced 
only by appearing in person at the FCC Auction Headquarters located at 445 12th St., SW, Washington, 
DC 20554.  Only an authorized representative or certifying official, as designated on an applicants FCC 
Form 175, may appear in person with two forms of identification (one of which must be a photo 
identification) in order to receive replacements.  Qualified bidders requiring replacements must call 
technical support prior to arriving at the FCC.

F. Electronic Bidding 
The Commission will conduct this auction over the Internet. Telephonic bidding will also be available.  
As a contingency, the FCC Wide Area Network, which requires access to a 900 number telephone 
service, will be available as well.  Qualified bidders are permitted to bid telephonically or electronically, 
i.e., over the Internet or the FCCs Wide Area Network at $2.30 per minute.  In either case, each 
authorized bidder must have its own Remote Security Access SecurID card, which the FCC will 
provide at no charge.   Each applicant with one authorized bidder will be issued two SecurID cards, while 
applicants with two or three  authorized bidders will be issued three cards.  For security purposes, the 
SecurID cards and the FCC Automated Auction System User Manual are only mailed to the contact 
person at the contact address listed on the FCC Form 175.  Please note that each SecurID card is tailored 
to a specific auction, therefore, SecurID cards issued for other auctions or obtained from a source other 
than the FCC will not work for Auction No. 44.  The telephonic bidding phone number will be supplied 
in the first overnight mailing, which also includes the confidential bidder identification number.  Each 
applicant should indicate its bidding preferenceelectronic or telephonicon the FCC Form 175. 

Please note that the SecurID cards can be recycled, and we encourage bidders to return the cards to the 
FCC.  We will provide pre-addressed envelopes that bidders may use to return the cards once the auction 
is over.

G. Mock Auction
All qualified bidders will be eligible to participate in a mock auction on Friday, June 14, 2002.  The 
mock auction will enable applicants to become familiar with the FCC Automated Auction System prior 
to the auction. Participation by all bidders is strongly recommended.  Details will be announced by public 
notice.

IV. AUCTION EVENT
The first round of bidding for Auction No. 44 will begin on Wednesday, June 19, 2002.  The initial 
bidding schedule will be announced in a public notice listing the qualified bidders, which is released 
approximately 10 days before the start of the auction.

A. Auction Structure
1. Simultaneous Multiple Round Auction
In the Auction No. 44 Comment Public Notice, we proposed to award all licenses in Auction No. 44 in a 
single, simultaneous multiple round auction.   US Cellular strongly supports the use of simultaneous 
multiple-round auction in a single auction that consolidates licenses, large and small service areas, for all 
of the newly reallocated 700 MHz spectrum.   Spectrum Exchange/Allen proposes that package bidding 
procedures be used.   McBride strongly supports use of simultaneous multiple-round auction 
procedures.   Leap recommends that the MSA/RSA licenses be auctioned, without package bid 
provisions and separate from the EAG licenses.   According to Leap, applying package bid provisions 
to the MSA/RSA licenses would produce more than 10  possible combinations.   Taking all the 
submissions into account, the Bureau concludes that it is operationally feasible and appropriate to auction 
the licenses in the Lower 700 MHz band through a single, simultaneous multiple round auction. Unless 
otherwise announced, bids will be accepted on all licenses in each round of the auction.  This approach, 
we believe, allows bidders to take advantage of any synergies that exist among licenses and is 
administratively efficient.

2. Maximum Eligibility and Activity Rules 
In the Auction No. 44 Comment Public Notice, we proposed that the amount of the upfront payment 
submitted by a bidder would determine the initial maximum eligibility (as measured in bidding units) for 
each bidder.   We received no comments on this issue.

For Auction No. 44 we adopt this proposal.  The amount of the upfront payment submitted by a bidder 
determines the initial maximum eligibility (in bidding units) for each bidder.  Note again that each 
license is assigned a specific number of bidding units equal to the upfront payment listed in Attachment 
A on a bidding unit per dollar basis.  The total upfront payment defines the maximum number of bidding 
units on which the applicant will be permitted to bid and hold high bids during any given round.  As there 
is no provision for increasing a bidders maximum eligibility during the course of an auction, prospective 
bidders are cautioned to calculate their upfront payments carefully.  The total upfront payment does not 
affect the total dollars a bidder may bid on any given license.

In order to ensure that the auction closes within a reasonable period of time, an activity rule requires 
bidders to bid actively throughout the auction, rather than wait until the end before participating.  Bidders 
are required to be active on a specific percentage of their current eligibility during each round of the 
auction.

A bidders activity level in a round is the sum of the bidding units associated with licenses on which the 
bidder is active.  A bidder is considered active on a license in the current round if it is either the high 
bidder at the end of the previous bidding round and does not withdraw the high bid in the current round, 
or if it submits an acceptable bid in the current round (see Bid Increments and Minimum Accepted 
Bids in Part IV.B.(3), below).  The minimum required activity level is expressed as a percentage of the 
bidders maximum bidding eligibility, and increases by stage as the auction progresses.  Because these 
procedures have proven successful in maintaining the pace of previous auctions (as set forth under 
Auction Stages in Part IV.A.3 and Stage Transitions in Part IV.A.4, below), we adopt them for 
Auction No. 44.

3. Auction Stages
In the Auction No. 44 Comment Public Notice, we proposed to conduct the auction in three stages and 
employ an activity rule.  We further proposed that, in each round of Stage One, a bidder desiring to 
maintain its current eligibility would be required to be active on licenses encompassing at least 80 
percent of its current bidding eligibility.   In each round of Stage Two, a bidder desiring to maintain its 
current eligibility would be required to be active on at least 90 percent of its current bidding eligibility. 
Finally, we proposed that a bidder in Stage Three, in order to maintain eligibility, would be required to 
be active on 98 percent of its current bidding eligibility.  We received no comments on this proposal. 

We adopt our proposals for the activity rules. Below are the activity levels for each stage of the auction.  
The FCC reserves the discretion to further alter the activity percentages before and/or during the auction.

Stage One: During the first stage of the auction, a bidder desiring to maintain its current eligibility will 
be required to be active on licenses that represent at least 80 percent of its current bidding eligibility in 
each bidding round.  Failure to maintain the required activity level will result in a reduction in the 
bidders bidding eligibility in the next round of bidding (unless an activity rule waiver is used).  During 
Stage One, reduced eligibility for the next round will be calculated by multiplying the bidders current 
activity (the sum of bidding units of the bidders standing high bids and valid bids during the current 
round) by five-fourths (5/4).

Stage Two: During the second stage of the auction, a bidder desiring to maintain its current eligibility is 
required to be active on 90 percent of its current bidding eligibility. Failure to maintain the required 
activity level will result in a reduction in the bidders bidding eligibility in the next round of bidding 
(unless an activity rule waiver is used). During Stage Two, reduced eligibility for the next round will be 
calculated by multiplying the bidders current activity (the sum of bidding units of the bidders standing 
high bids and valid bids during the current round) by ten-ninths (10/9).

Stage Three: During the third stage of the auction, a bidder desiring to maintain its current eligibility is 
required to be active on 98 percent of its current bidding eligibility. Failure to maintain the required 
activity level will result in a reduction in the bidders bidding eligibility in the next round of bidding 
(unless an activity rule waiver is used). In this final stage, reduced eligibility for the next round will be 
calculated by multiplying the bidders current activity (the sum of bidding units of the bidders standing 
high bids and valid bids during the current round) by fifty-fortyninths (50/49).

CAUTION:  Since activity requirements increase in each auction stage, bidders must carefully 
check their current activity during the bidding period of the first round following a stage 
transition.  This is especially critical for bidders that have standing high bids and do not plan to 
submit new bids.  In past auctions, some bidders have inadvertently lost bidding eligibility or 
used an activity rule waiver because they did not re-verify their activity status at stage transitions.  
Bidders may check their activity against the required minimum activity level by using the bidding 
systems bidding module.

Because the foregoing procedures have proven successful in maintaining proper pace in previous 
auctions, we adopt them for Auction No. 44.

4. Stage Transitions
In the Auction No. 44 Comment Public Notice, we proposed that the auction would generally advance to 
the next stage (i.e., from Stage One to Stage Two, and from Stage Two to Stage Three) when the auction 
activity level, as measured by the percentage of bidding units receiving new high bids, is below 20 
percent for three consecutive rounds of bidding in each Stage.  We further proposed that the Bureau 
would retain the discretion to change stages unilaterally by announcement during the auction.  This 
determination, we proposed, would be based on a variety of measures of bidder activity, including, but 
not limited to, the auction activity level, the percentages of licenses (as measured in bidding units) on 
which there are new bids, the number of new bids, and the percentage increase in revenue.   We 
received no comments on this subject. 

We adopt our proposal.  Thus, the auction will start in Stage One and it will advance to the next stage 
(i.e., from Stage One to Stage Two, and from Stage Two to Stage Three) when, in each of three 
consecutive rounds of bidding, the high bid has increased on 20 percent or less of the licenses being 
auctioned (as measured in bidding units).  In addition, the Bureau will retain the discretion to regulate the 
pace of the auction by announcement.  This determination will be based on a variety of measures of 
bidder activity, including, but not limited to, the auction activity level, the percentages of licenses (as 
measured in bidding units) on which there are new bids, the number of new bids, and the percentage 
increase in revenue.  We believe that these stage transition rules, having proven successful in prior 
auctions, are appropriate for use in Auction No. 44.

5. Activity Rule Waivers and Reducing Eligibility
In the Auction No. 44 Comment Public Notice, we proposed that each bidder in the auction would be 
provided five activity rule waivers.  Bidders may use an activity rule waiver in any round during the 
course of the auction.   We received no comments on this issue. 

Based upon our experience in previous auctions, we adopt our proposal that each bidder be provided 
five activity rule waivers that may be used in any round during the course of the auction.  Use of an 
activity rule waiver preserves the bidders current bidding eligibility despite the bidders activity in the 
current round being below the required minimum level.  An activity rule waiver applies to an entire 
round of bidding and not to a particular license. We are satisfied that our practice of providing five 
waivers over the course of the auction provides a sufficient number of waivers and maximum flexibility 
to the bidders, while safeguarding the integrity of the auction.

The Automated Auction System assumes that bidders with insufficient activity would prefer to use an 
activity rule waiver (if available) rather than lose bidding eligibility.  Therefore, the system will 
automatically apply a waiver (known as an automatic waiver) at the end of any round where a bidders 
activity level is below the minimum required unless:  (1) there are no activity rule waivers available; or 
(2) the bidder overrides the automatic application of a waiver by reducing eligibility, thereby meeting the 
minimum requirements.  If a bidder has no waivers remaining and does not satisfy the required activity 
level, the current eligibility will be permanently reduced, possibly eliminating them from the auction.

A bidder with insufficient activity that wants to reduce its bidding eligibility rather than use an activity 
rule waiver must affirmatively override the automatic waiver mechanism during the round by using the 
reduce eligibility function in the bidding system.  In this case, the bidders eligibility is permanently 
reduced to bring the bidder into compliance with the activity rules as described in Auction Stages (see 
Part IV.A.3 discussion above).  Once eligibility has been reduced, a bidder will not be permitted to regain 
its lost bidding eligibility.

Finally, a bidder may proactively use an activity rule waiver as a means to keep the auction open without 
placing a bid.  If a bidder submits a proactive waiver (using the proactive waiver function in the bidding 
system) during a round in which no bids are submitted, the auction will remain open and the bidders 
eligibility will be preserved.  However, an automatic waiver triggered during a round in which there are 
no new valid bids or withdrawals will not keep the auction open.  Note: Once a proactive waiver is 
placed during a round, that waiver cannot be unsubmitted.

6. Auction Stopping Rules
For Auction No. 44, the Bureau proposed to employ a simultaneous stopping rule.   Under this rule, 
bidding will remain open on all licenses until bidding stops on every license.  The auction will close for 
all licenses when one round passes during which no bidder submits a new acceptable bid on any license, 
applies a proactive waiver, or withdraws a previous high bid.  After the first such round, bidding closes 
simultaneously on all licenses.

The Bureau also proposed retaining discretion to implement a modified version of the simultaneous 
stopping rule.  The modified version will close the auction for all licenses after the first round in which 
no bidder submits a proactive waiver, a withdrawal, or a new bid on any license on which it is not the 
standing high bidder.  Thus, absent any other bidding activity, a bidder placing a new bid on a license for 
which it is the standing high bidder will not keep the auction open under this modified stopping rule.

The Bureau further proposed retaining the discretion to keep the auction open even if no new acceptable 
bids or proactive waivers are submitted and no previous high bids are withdrawn in a round.  In this 
event, the effect will be the same as if a bidder had submitted a proactive waiver.  Thus, the activity rule 
will apply as usual, and a bidder with insufficient activity will either lose bidding eligibility or use an 
activity rule waiver (if it has any left).

In addition, we proposed that the Bureau reserve the right to declare that the auction will end after a 
designated number of additional rounds (special stopping rule).  If the Bureau invokes this special 
stopping rule, it will accept bids in the final round(s) only for licenses on which the high bid increased in 
at least one of the preceding specified number of rounds.  We proposed to exercise this option only in 
circumstances such as where the auction is proceeding very slowly, where there is minimal overall 
bidding activity or where it appears likely that the auction will not close within a reasonable period of 
time.   Before exercising this option, the Bureau is likely to attempt to increase the pace of the auction 
by, for example, moving the auction into the next stage (where bidders will be required to maintain a 
higher level of bidding activity), increasing the number of bidding rounds per day, and/or adjusting the 
amount of the minimum bid increments for the licenses.

Leap  recommends that the Bureau retain its current stopping rule.  The Rural 700 MHz Group  
suggests that the Bureau not utilize its discretion to keep the auction open even if no new acceptable bids 
or proactive waivers are submitted and no previous high bids are withdrawn in a round, claiming that any 
additional rounds impose monitoring costs on small businesses.  The Bureau emphasizes that it will only 
utilize an alternative stopping rule when unusual circumstances suggest that the public interest is better 
served by deviating from the standard simultaneous stopping rule.  Therefore, we adopt the above 
proposals concerning the auction stopping rules.  Auction No. 44 will begin under the simultaneous 
stopping rule, and the Bureau will retain the discretion to invoke the other versions of the stopping rule.  
We believe that these stopping rules are most appropriate for Auction No. 44, because our experience in 
prior auctions demonstrates that the auction stopping rules balance the interests of administrative 
efficiency and maximum bidder participation.  
 
7. Auction Delay, Suspension, or Cancellation
In the Auction No. 44 Comment Public Notice, we proposed that, by public notice or by announcement 
during the auction, the Bureau may delay, suspend, or cancel the auction in the event of natural disaster, 
technical obstacle, evidence of an auction security breach, unlawful bidding activity, administrative or 
weather necessity, or for any other reason that affects the fair conduct of competitive bidding. 

Because this approach has proven effective in resolving exigent circumstances in previous auctions, we 
adopt our proposed auction cancellation rules. By public notice or by announcement during the auction, 
the Bureau may delay, suspend, or cancel the auction in the event of natural disaster, technical obstacle, 
evidence of an auction security breach, unlawful bidding activity, administrative or weather necessity, or 
for any other reason that affects the fair and competitive conduct of competitive bidding.  In such cases, 
the Bureau, in its sole discretion, may elect to resume the auction starting from the beginning of the 
current round, resume the auction starting from some previous round, or cancel the auction in its entirety.  
Network interruption may cause the Bureau to delay or suspend the auction.  We emphasize that exercise 
of this authority is solely within the discretion of the Bureau, and its use is not intended to be a substitute 
for situations in which bidders may wish to apply their activity rule waivers.

B. Bidding Procedures
1. Round Structure
The initial bidding schedule will be announced in the public notice listing the qualified bidders, which is 
released approximately 10 days before the start of the auction.  The round structure for each bidding 
round contains a single bidding round followed by the release of the round results.  Multiple bidding 
rounds may be conducted in a given day. Details regarding round results formats and locations will also 
be included in the above public notice referenced above. 

The FCC has discretion to change the bidding schedule in order to foster an auction pace that reasonably 
balances speed with the bidders need to study round results and adjust their bidding strategies.  The 
Bureau may increase or decrease the amount of time for the bidding rounds and review periods, or the 
number of rounds per day, depending upon the bidding activity level and other factors.  

2. Reserve Price or Minimum Opening Bid
Background.  The Communications Act, as amended, calls upon the Commission to prescribe methods by 
which a reasonable reserve price will be required or a minimum opening bid established when FCC 
licenses are subject to auction (i.e., because they are mutually exclusive), unless the Commission 
determines that a reserve price or minimum opening bid is not in the public interest.   Consistent with 
this mandate, the Commission directed the Bureau to seek comment on the use of a minimum opening 
bid and/or reserve price prior to the start of each auction.   Among other factors, the Bureau should 
consider the amount of spectrum being auctioned, levels of incumbency, the availability of technology to 
provide service, the size of the geographic service areas, the extent of interference with other spectrum 
bands, and any other relevant factors that could have an impact on the spectrum being auctioned.   The 
Commission concluded that the Bureau should have the discretion to employ either or both of these 
mechanisms for future auctions. 

In the Auction No. 44 Comment Public Notice, the Bureau proposed to establish minimum opening bids 
for Auction No. 44.   Specifically, for Auction No. 44, the Bureau proposed the following license-by-
license formula for calculating minimum opening bids:

$0.0250 * MHz * License Area Population  with a minimum of $1,000 per license. 

In the alternative, the Bureau sought comment on whether, consistent with the Balanced Budget Act, the 
public interest would be served by having no minimum opening bid or reserve price.   

Several commenters say that the minimum opening bids are too high and request that the Bureau lower 
them to the level of the upfront payments, i.e., by approximately one-half.   Rural 700 MHz Group  
and the NTCA  claim that the delayed use of the spectrum resulting from the time required for clearing 
incumbents will affect small businesses especially adversely. Leap alleges that disparities in 
encumbrance were not factored into the minimum opening bid.    However, Leap does not propose an 
alternate methodology for formulating minimum opening bids.  Rural 700 MHz Group  and Council 
Tree  cite the general state of the economy as a reason minimum bids should be lowered.  TCA,  
Council Tree   and NTCA  warn that the suggested minimum opening bids may discourage some 
small and rural carriers from participating in the auction. 

Following consideration of comments received, we adopt our proposed minimum opening bids for 
Auction No. 44.  We believe the minimum opening bids are well below the levels of the likely winning 
bids, and are not so high as to discourage competition.  The commenters have provided no evidence to 
support their contention that our proposed minimum opening bids are too high. Moreover, the 
Commission has sought to provide small businesses with an opportunity to successfully compete against 
larger, well-financed bidders for the Lower 700 MHz band, defining three tiers of small businesses for 
MSA/RSA licenses, and two tiers of small businesses for EAG licenses, that are eligible for bidding 
credits.  Because we are not persuaded that the proposed minimum opening bids are unreasonable, we 
adopt our proposal.   

The specific minimum opening bids for each license are set forth in Attachment A of this Public Notice.

The minimum opening bids we adopt are reducible at the discretion of the Bureau.  We emphasize, 
however, that such discretion will be exercised, if at all, sparingly and early in the auction, i.e., before 
bidders lose all waivers and begin to lose substantial eligibility.  During the course of the auction, the 
Bureau will not entertain requests to reduce the minimum opening bid on specific licenses.

3. Minimum Accepted Bids and Bid Increments 
In the Auction No. 44 Comment Public Notice, we proposed to use a smoothing methodology to calculate 
minimum acceptable bids.   We further proposed to retain the discretion to change the minimum 
acceptable bids and bid increments if circumstances so dictate.   

Several commenters requested that we use a simple percentage increment to calculate minimum 
acceptable bids, rather than the smoothing formula.  The Rural 700 MHz Group,  TCA,  and NTCA  
believe that a simpler formula would allow bidders to plan their strategies in advance whereas the 
smoothing formula does not.  While we recognize that the smoothing methodology is computationally 
more complex, it is the Bureau that performs the calculations and provides the appropriate bid increment 
amounts to bidders.  Furthermore, regardless of whether the smoothing formula or a simple percentage 
increment is used, minimum acceptable bid amounts depend upon the bids actually placed in the previous 
round, and therefore cannot be predicted in advance. 

We adopt our proposal for a smoothing formula.  The smoothing methodology is designed to vary the 
increment for a given license between a maximum and minimum value based on the bidding activity on 
that license.  This methodology allows the increments to be tailored to the activity level of a license, 
decreasing the time it takes for active licenses to reach their final value.  The formula used to calculate 
this increment is included as Attachment F.

We adopt our proposal of initially setting the weighing factor at 0.5, the minimum percentage increment 
at 0.1 (10 percent), and the maximum at 0.2 (20 percent).   The Bureau retains the discretion to change 
the minimum acceptable bids and bid increments if it determines that circumstance so dictate.  The 
Bureau will do so by announcement in the Automated Auction System. Under its discretion, the Bureau 
may also implement an absolute dollar floor for the bid increment to further facilitate a timely close of 
the auction.  The Bureau may also use its discretion to adjust the minimum bid increment without prior 
notice if circumstances warrant.  The Bureau also retains the discretion to use alternate methodologies, 
such as a flat percentage increment for all licenses, for Auction No. 44 if circumstances warrant.
 
4. High Bids
At the end of each bidding round, the Automated Auction System determines the standing high bid for 
each license based on the gross dollar amounts of the bids received for each license.

In the case of tied high bids, a random number generator will be used to determine the standing high bid.  
A random number will be assigned to each bid.  The tie bid having the highest random number will 
become the standing high bid. 

5. Bidding
During a bidding round, a bidder may submit bids for as many licenses as it wishes (subject to its 
eligibility), withdraw high bids from previous bidding rounds, remove bids placed in the same bidding 
round, or permanently reduce eligibility.  Bidders also have the option of making multiple submissions 
and withdrawals in each bidding round.  If a bidder submits multiple bids for a single license in the same 
round, the system takes the last bid entered as that bidders bid for the round.  Bidders should note that 
the bidding units associated with licenses for which the bidder has removed or withdrawn its bid do not 
count towards the bidders activity at the close of the round.

Please note that all bidding will take place remotely either through the Automated Auction System or by 
telephonic bidding.  (Telephonic bid assistants are required to use a script when entering bids placed by 
telephone.  Telephonic bidders are therefore reminded to allow sufficient time to bid by placing their 
calls well in advance of the close of a round. Normally, five to ten minutes are necessary to complete a 
bid submission.)  There will be no on-site bidding during Auction No. 44.

A bidders ability to bid on specific licenses in the first round of the auction is determined by two factors:  
(1) the licenses applied for on FCC Form 175 and (2) the upfront payment amount deposited.  The bid 
submission screens will allow bidders to submit bids on only those licenses for which the bidder applied 
on its FCC Form 175.

The Automated Auction System requires each bidder to be logged in during the bidding round using the 
bidder identification number provided in the registration materials, and the generated SecurID code.  
Bidders are strongly encouraged to print bid confirmations after they submit their bids. 

In each round, eligible bidders will be able to place bids on a given license in any of nine different 
amounts.   For each license, the Automated Auction System interface will list the nine acceptable bid 
amounts in a drop-down box.  Bidders may use the drop-down box to select from among the nine 
acceptable bid amounts.  The Automated Auction System also includes an import function that allows 
bidders to upload text files containing their bid information.

Once there is a standing high bid on a license, the Automated Auction System will calculate a minimum 
acceptable bid for that license for the following round.  The difference between the minimum acceptable 
bid and the standing high bid for each license will define the bid increment.  The nine acceptable bid 
amounts for each license consist of the minimum acceptable bid (the standing high bid plus one bid 
increment) and additional amounts calculated using multiple bid increments (i.e., the second bid amount 
equals the standing high bid plus two times the bid increment, the third bid amount equals the standing 
high bid plus three times the bid increment, etc.).

Until a bid has been placed on a license, the minimum acceptable bid for that license will be equal to its 
minimum opening bid.  The additional bid amounts for licenses that have not yet received a bid are 
calculated using the difference between the minimum opening bid times one plus the minimum 
percentage increment, rounded,  and the minimum opening bid. Therefore, when the minimum 
percentage increment equals 0.1, the first additional bid amount will be approximately ten percent higher 
than the minimum opening bid; the second, twenty percent; the third, thirty percent; etc.

In the case of a license for which the standing high bid has been withdrawn,  the minimum acceptable 
bid will equal the second highest bid received for the license.  The additional bid amounts are calculated 
using the difference between the second highest bid times one plus the minimum percentage increment, 
rounded, and the second highest bid.

See Attachment F for more detail on the calculation of the various bid amounts.

Finally, bidders are cautioned in selecting their bid amounts because, as explained in the following 
section, bidders who withdraw a standing high bid from a previous round, even if mistakenly or 
erroneously made, are subject to bid withdrawal payments.

6. Bid Removal and Bid Withdrawal
In the Auction No. 44 Comment Public Notice, we proposed bid removal and bid withdrawal rules.  
With respect to bid withdrawals, we proposed limiting each bidder to withdrawals in no more than two 
rounds during the course of the auction.  The two rounds in which withdrawals are utilized, we proposed, 
would be at the bidders discretion.  We received no comments on this issue. 

Procedures.   Before the close of a bidding round, a bidder has the option of removing any bids placed in 
that round.  By using the remove bid function in the bidding system, a bidder may effectively 
unsubmit any bid placed within that round.  A bidder removing a bid placed in the same round is not 
subject to withdrawal payments.  Removing a bid will affect a bidders activity for the round in which it 
is removed, i.e., a bid that is subsequently removed does not count toward the bidders activity 
requirement.  This procedure, about which we received no comments, will enhance bidder flexibility 
during the auction.  Therefore, we adopt these procedures for Auction No. 44.

Once a round closes, a bidder may no longer remove a bid.  However, in later rounds, a bidder may 
withdraw standing high bids from previous rounds using the withdraw bid function (assuming that the 
bidder has not exhausted its withdrawal allowance).  A high bidder that withdraws its standing high bid 
from a previous round during the auction is subject to the bid withdrawal payments specified in 47 
C.F.R.  1.2104(g).  Note: Once a withdrawal is placed during a round, that withdrawal cannot be 
unsubmitted. 

In previous auctions, we have detected bidder conduct that, arguably, may have constituted strategic 
bidding through the use of bid withdrawals.  While we continue to recognize the important role that bid 
withdrawals play in an auction, i.e., reducing risk associated with efforts to secure various licenses in 
combination, we conclude that, for Auction No. 44, adoption of a limit on their use to two rounds is the 
most appropriate outcome.  By doing so we believe we strike a reasonable compromise that will allow 
bidders to use withdrawals.  Our decision on this issue is based upon our experience in prior auctions, 
particularly the PCS D, E and F block auctions, and 800 MHz SMR auction, and is in no way a reflection 
of our view regarding the likelihood of any speculation or gaming in this auction.

The Bureau will therefore limit the number of rounds in which bidders may place withdrawals to two 
rounds.  These rounds will be at the bidders discretion and there will be no limit on the number of bids 
that may be withdrawn in either of these rounds.  Withdrawals during the auction will still be subject to 
the bid withdrawal payments specified in 47 C.F.R.  1.2104(g).  Bidders should note that abuse of the 
Commissions bid withdrawal procedures could result in the denial of the ability to bid on a market.  If a 
high bid is withdrawn, the minimum accepted bid in the next round will be the prior rounds second 
highest bid price, which may be less than, or equal to, in the case of tie bids, the amount of the withdrawn 
bid.   The additional bid amounts are calculated using the difference between the second highest bid 
times one plus the minimum percentage increment, rounded, and the second highest bid.  The 
Commission will serve as a place holder on the license until a new acceptable bid is submitted on that 
license. 

Calculation.   Generally, the Commission imposes payments on bidders that withdraw high bids during 
the course of an auction.   If a bidder withdraws its bid and there is no higher bid in the same or 
subsequent auction(s), the bidder that withdrew its bid is responsible for the difference between its 
withdrawn bid and the net high bid in the same or subsequent auction(s).  In the case of multiple bid 
withdrawals on a single license, within the same or subsequent auctions(s), the payment for each bid 
withdrawal will be calculated based on the sequence of bid withdrawals and the amounts withdrawn.  No 
withdrawal payment will be assessed for a withdrawn bid if either the subsequent winning bid or any of 
the intervening subsequent withdrawn bids, in either the same or subsequent auctions(s), equals or 
exceeds that withdrawn bid.  Thus, a bidder that withdraws a bid will not be responsible for any 
withdrawal payments if there is a subsequent higher bid in the same or subsequent auction(s).  This 
policy allows bidders most efficiently to allocate their resources as well as to evaluate their bidding 
strategies and business plans during an auction while, at the same time, maintaining the integrity of the 
auction process.  The Bureau retains the discretion to scrutinize multiple bid withdrawals on a single 
license for evidence of anti-competitive strategic behavior and take appropriate action when deemed 
necessary.

In the Part 1 Fifth Report and Order, the Commission modified Section 1.2104(g)(1) of the rules 
regarding assessments of interim bid withdrawal payments.   As amended, Section 1.2104(g)(1) 
provides that in instances in which bids have been withdrawn on a license that is not won in the same 
auction, the Commission will assess an interim withdrawal payment equal to 3 percent of the amount of 
the withdrawn bids.  The 3 percent interim payment will be applied toward any final bid withdrawal 
payment that will be assessed after subsequent auction of the license.  Assessing an interim bid 
withdrawal payment ensures that the Commission receives a minimal withdrawal payment pending 
assessment of any final withdrawal payment.  The Part 1 Fifth Report and Order provides specific 
examples showing application of the bid withdrawal payment rule. 

7. Round Results
Bids placed during a round will not be published until the conclusion of that bidding period.  After a 
round closes, the Bureau will compile reports of all bids placed, bids withdrawn, current high bids, new 
minimum accepted bids, and bidder eligibility status (bidding eligibility and activity rule waivers), and 
post the reports for public access.  Reports reflecting bidders identities and bidder identification 
numbers for Auction No. 44 will be available before and during the auction.  Thus, bidders will know in 
advance of this auction the identities of the bidders against which they are bidding.

8. Auction Announcements
The FCC will use auction announcements to announce items such as schedule changes and stage 
transitions.  All FCC auction announcements will be available by clicking a link on the Automated 
Auction System. 

9. Maintaining the Accuracy of FCC Form 175 Information
As noted in Part II.H., after the short-form filing deadline, applicants may make only minor changes to 
their FCC Form 175 applications.  For example, permissible minor changes include deletion and addition 
of authorized bidders (to a maximum of three) and certain revision of exhibits.  Applicants should make 
these modifications to their FCC Form 175 electronically and submit a letter, briefly summarizing the 
changes, by electronic mail to the attention of Margaret Wiener, Chief, Auctions and Industry Analysis 
Division at the following address:  auction44@fcc.gov.  The electronic mail summarizing the changes 
must include a subject or caption referring to Auction No. 44.  The Bureau requests that parties format 
any attachments to electronic mail as Adobe Acrobat (pdf) or Microsoft Word documents. 

A separate copy of the letter should be faxed to the attention of Kathryn Garland at (717) 338-
2850.  Questions about other changes should be directed to Howard Davenport of the Auctions and 
Industry Analysis Division at (202) 418-0660.

V. POST-AUCTION PROCEDURES
A. Down Payments and Withdrawn Bid Payments
After bidding has ended, the Commission will issue a public notice declaring the auction closed, 
identifying winning bidders, down payments and any withdrawn bid payments due. 

Within ten business days after release of the auction closing notice, each winning bidder must submit 
sufficient funds (in addition to its upfront payment) to bring its total amount of money on deposit with 
the Government to 20 percent of its net winning bids (actual bids less any applicable small, very small 
business or entrepreneur bidding credits).  See 47 C.F.R.  1.2107(b).  In addition, by the same deadline 
all bidders must pay any bid withdrawal payments due under 47 C.F.R.  1.2104(g), as discussed in Bid 
Removal and Bid Withdrawal, Part IV.B.6.  (Upfront payments are applied first to satisfy any 
withdrawn bid liability, before being applied toward down payments.)

B. Auction Discount Voucher
On June 8, 2000, the Commission awarded Qualcomm, Inc. a transferable Auction Discount Voucher 
(ADV) in the amount of $125,273,878.00.   This ADV 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.  Qualcomm transferred $10,848,000.00 of the ADV 
to a winning bidder in FCC Auction No. 35 and the transferee used its portion of the ADV to pay a 
portion of one of its winning bids in Auction No. 35.   The remaining portion of Qualcomms ADV 
could be used to adjust winning bids in another FCC auction, including Auction No. 44.

C. Long-Form Application
Within ten business days after release of the auction closing notice, winning bidders must electronically 
submit a properly completed long-form application (FCC Form 601) and required exhibits for each 
license won through Auction No. 44.  Winning bidders that are small, very small businesses or 
entrepreneurs must include an exhibit demonstrating their eligibility for small, very small business or 
entrepreneur bidding credits.  See 47 C.F.R.  1.2112(b).  Further filing instructions will be provided to 
auction winners at the close of the auction.

D. 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(f).  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).  
When filing the long-form application, the winning bidder will be required to advise the Commission 
whether it intends to seek a tribal land bidding credit, for each market won in the auction, by checking 
the designated box(es).  After stating its intent to seek a tribal land bidding credit, the applicant will have 
90 days from the close of the long-form filing window to amend its application to select the specific 
tribal lands to be served and provide the required tribal government certifications.  Licensees receiving a 
tribal land bidding credit are subject to performance criteria as set forth in 47 C.F.R.  1.2110(f).

For additional information on the tribal land bidding credit, including how the amount of the credit is 
calculated, applicants should review the Commissions rule making proceeding regarding tribal land 
bidding credits and related public notices.   Relevant documents can be viewed on the Commissions 
web site by going to http://wireless.fcc.gov/auctions and clicking on Tribal Land Credits.

E. Default and Disqualification
Any high bidder that defaults or is disqualified after the close of the auction (i.e., fails to remit the 
required down payment within the prescribed period of time, fails to submit a timely long-form 
application, fails to make full payment, or is otherwise disqualified) will be subject to the payments 
described in 47 C.F.R.  1.2104(g)(2).  In such event the Commission may re-auction the license or offer 
it to the next highest bidder (in descending order) at their final bid.  In addition, if a default or 
disqualification involves gross misconduct, misrepresentation, or bad faith by an applicant, the 
Commission may declare the applicant and its principals ineligible to bid in future auctions, and may take 
any other action that it deems necessary, including institution of proceedings to revoke any existing 
licenses held by the applicant.  See 47 C.F.R.  1.2109(d).

F. Refund of Remaining Upfront Payment Balance
All applicants that submitted upfront payments but were not winning bidders for a license in Auction No. 
44 may be entitled to a refund of their remaining upfront payment balance after the conclusion of the 
auction.  No refund will be made unless there are excess funds on deposit from that applicant after any 
applicable bid withdrawal payments have been paid.  All refunds will be returned to the payer of record, 
as identified on the FCC Form 159, unless the payer submits written authorization instructing otherwise.

Qualified bidders that have exhausted all of their activity rule waivers, have no remaining bidding 
eligibility, and have not withdrawn a high bid during the auction must submit a written refund request.  If 
you have completed the refund instructions electronically, then only a written request for the refund is 
necessary.  If not, the request must also include wire transfer instructions, Taxpayer Identification 
Number (TIN) and FCC Registration Number (FRN).  Send refund request to:

Federal Communications Commission
Financial Operations Center
Auctions Accounting Group
Gail Glasser or Tim Dates
445 12th Street, SW, Room 1-C863
Washington, DC  20554

Bidders are encouraged to file their refund information electronically using the refund information 
portion of the FCC Form 175, but bidders can also fax their information to the Auctions Accounting 
Group at (202) 418-2843.  Once the information has been approved, a refund will be sent to the party 
identified in the refund information.

NOTE:  Refund processing generally takes up to two weeks to complete.  Bidders 
with questions about refunds should contact Tim Dates or Gail Glasser at  (202) 418-
1995.

Media Contact: Meribeth McCarrick at (202) 418-0654

Auctions and Industry Analysis Division: Howard Davenport, Legal Branch, or Lyle Ishida, Auctions 
Operations Branch, at (202) 418-0660; Linda Sanderson, Auctions Operations Branch, at (717) 338-2888

Commercial Wireless Division: Amal Abdallah and Gary Oshinsky, Policy and Rules Branch, or 
Joanne Epps and Melvin Spann, Licensing and Technical Analysis Branch, at (202) 418-0620  

	Attachment A

PLACE HOLDER

VI. ATTACHMENT B

FCC AUCTION SEMINAR REGISTRATION FORM

Auction No. 44

The FCC will sponsor a one-day seminar for Auction No. 44 applicants.  The seminar is free of charge 
and will provide information about pre-auction procedures, service and auction rules, conduct of the 
auction, and the Automated Auction System. 

Representatives from each company may attend on a reservation basis, first-come first-served until room 
capacity is filled.  The seminar will be held:   

Wednesday, May 1, 2002
Federal Communications Commission
445 12th Street SW
Washington, DC  20554
Registration 9:30 a.m.  10:00 a.m.
Seminar 10:00 a.m. - 2 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 no later than
Monday, April 29, 2002, by fax to:

FCC Auction 44
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. 44 Seminar, scheduled for Wednesday, May 1, 2002.

Name of attendee: _____________________________________________________
Name of attendee: _____________________________________________________
Company name:  ______________________________________________________
Company address: _____________________________________________________
Phone:______________________________Fax:____________________________

VII. ATTACHMENT C

ELECTRONIC FILING AND REVIEW
OF THE FCC FORM 175

Applicants must submit their FCC Form 175 applications electronically.  The FCC recommends 
submitting your Form 175 via the Internet.  As a contingency, you can submit via the FCC Wide-Area 
Network.  FCC Form 175 applications must be submitted and confirmed by 6:00 p.m. ET on 
Wednesday, May 8, 2002.  Late applications or unconfirmed submissions of electronic data will not be 
accepted.  

Applicants must click the SUBMIT Application button on the Submission 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.

A. Software Requirements
Applicants will need to meet the following minimum software requirements:

? Web Browser, either of the following:

? Microsoft Internet Explorer 4.0 or higher (recommended).  Your browser must have either 
Microsoft VM or Java Plug-In Version 1.3.1 installed.
? Netscape Communicator 4.0 or higher, with Java Plug-In Version 1.3.1.

Java Plug-In Version 1.3.1 is available for downloading at 
http://java.sun.com/getjava/download.html.

? PDF Viewer:  Adobe Acrobat Reader 4.0 or higher (available at http://www.adobe.com)

If you wish to use the download feature on the Search Results page, you will need a .tar file 
extraction utility, e.g., Winzip (available at http://www.winzip.com) or Pkzip for Windows (available at 
http://www.pkware.com/shareware). 

B. Submitting FCC Form 175 Applications
You can submit FCC Form 175 applications electronically via the Internet.  Start your web browser and 
point it to either https://auctions.fcc.gov/ (primary location) or https://auctions2.fcc.gov/ (secondary 
location).  On the FCC Auctions page, click Form 175 Application & Search to obtain the Form 175 
Homepage.

Note:  As a contingency, you may submit FCC Form 175 applications via the FCC Wide Area Network, 
using Dial-Up Networking.  To access the Wide Area Network, configure your dial-up network to dial 
800-378-7435. (Alternatively, you can configure your dial-up network to dial 877-844-2788.) 

1. Logging On
The Form 175 Homepage has a Form 175 Logon area at the top right.  This area provides fields that let 
you identify yourself to the system before submitting a Form 175 application.  

Important: On December 3, 2001, the FCC Registration Number (FRN) became mandatory for all 
parties conducting business with the FCC.  An FRN is mandatory for all filers logging onto the 175 
Application System.  

Once you have logged on with your FRN, you can click the New Form link to obtain the Profile page for 
the auction.  

2. Uploading Attachments
When uploading attachments from the Form 175 Attachments page, applicants may use a variety of file 
formats--including Word 2000 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:

? Graphics files (e.g., .bmp, .tiff, .jpg) and spreadsheets (e.g., Excel, Lotus) are not supported, 
? Word processing files that are uploaded may not contain graphic images. 
? 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.  
? Do not upload a password-protected file.  The FCC system will not be able to open it or convert 
it.

The system converts each uploaded attachment to PDF format.  (The conversion process generally 
completes within 30 minutes.)  Until the system has converted your file to PDF format, the description 
field shows Not converted. 

Repeat this procedure for each additional attachment you want to add.  When you have finished adding 
attachments, click the Continue to CERTIFICATION button to obtain the Certification page.

a. Unreadable Attachment Files

If you are unable to read an attachment file after it has been converted, please do the following:

1.	Re-upload the attachment.

2.	If the file still has not been 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 
using their Delete links.

3. Completing the Submission Procedure
Applicants must press the SUBMIT Application button on the Submission page to successfully submit 
their FCC Form 175.  Pressing SUBMIT Application produces a Submission Confirmation page 
showing the assigned FCC Account Number.  During each filing period, submitted applications may be 
updated and amended multiple times until the filing deadline.

C. Reviewing FCC Form 175 Applications
Once the FCC has completed the 175 Review process, you can view FCC Form 175 applications 
electronically by searching for them in the FCC database.  Start your web browser and point it to either 
https://auctions.fcc.gov/ (primary location) or https://auctions2.fcc.gov/ (secondary location). Click the 
Form 175 Application & Search link, then click the SEARCH link at the top of the page. When the 
Form 175 Search page appears, select the search criteria you want and then click the Submit button.

D. Help
For technical assistance with 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.  

You can also contact Technical Support via e-mail.  To obtain the address, click the Support tab on the 
Form 175 Homepage.

VIII. 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 given is used as your bidder name in the auction.

Address:  Applicants must provide a street address (not a Post Office box number) for the applicant, 
suitable for mail or private parcel delivery. 

Legal 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 (LLC) or government entity.  

Applicant Status: Applicants are requested to indicate their status as a rural telephone company, 
minority- and/or women-owned business, 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. 

Bidding Credit Eligibility: Applicants that qualify for a small, very small business or entrepreneur 
bidding credit must select the applicable bidding credit (15 percent, 25 percent or 35 percent) in the 
bidding credit eligibility item on the Form 175.  Applicants are advised that this is the sole opportunity 
applicants have to elect small business status and bidding credit level (if applicable).  There is no 
opportunity to change the election once the short-form filing deadline passes on May 8, 2002. 

Telephonic or Electronic Bidding Options:  Bidders may participate in the auction either electronically  
or telephonically, and must specify their preference.  To participate in the auction, every authorized 
bidder must have a SecurID card, which the FCC will provide free of charge.
 
License Selection: Applicants should select 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 on May 8, 2002.  It is critically important that you confirm the licenses that you have selected 
because the Automated Auction System will not accept bids on licenses for which an applicant has not 
applied on its FCC Form 175. 

The online Form 175 application provides filters that enable you to generate a list of licenses by License 
Area (either EAG or CMA), Market Number, and/or Block.  Once you obtain this customized list, 
you can use it to select the licenses you are interested in.

B. Exhibits and Attachments 
In addition to the FCC Form 175 itself, applicants must submit additional information required by the 
FCCs rules.  If attachments are not uploaded, the FCC Form 175 submission process cannot be 
completed.  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 include sensitive information (i.e., TIN/EIN) 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 , very small business or entrepreneur 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 Partnership
Name, citizenship, and address of each limited partner whose interest 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; name, title, and citizenship of a 
responsible officer or director 
Limited Liability Corporation
Corporate name and address; name, address, and citizenship of all 
members whose interest 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)
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 applicants 
Name, citizenship, and address of all controlling interests of the 
applicant as discussed in Part II.D.3 of this public notice.
All applicants 
Name, citizenship, and address of all parties holding 10 percent or more 
of each class of stock, warrants, options or debt securities and the 
amount and percentage held.
All applicants
Name of all parties holding a 10 percent or greater interest in the 
applicant and the specific amount held.
All applicants
List of all parties holding indirect ownership interests in the applicant 
that equals 10 percent or more, as determined by successive 
multiplication of the ownership percentages in each link of the vertical 
ownership chain, 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 Bs interest 
in the applicant would be 25% (the same as Company Cs interest since 
Company Bs interest in Company C exceeds 50%), and Company As 
interest in the applicant would be 2.5% (0.1 * 0.25).  Under the 10% 
attribution benchmark, Company Bs interest in the applicant must be 
reported on the applicants FCC Form 175 Exhibit A, while Company 
As interest in the applicant need not be reported.  However, if 
Company A owned 40% of Company B in the above example, then 
Company As interest in the applicant would be 10% (0.4 * 0.25), and 
the applicant would need to report it on the applicants FCC Form 175 
Exhibit A
All applicants
List of any FCC-regulated 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 

c. a controlling interest (as discussed in Part II.D.3 of this public 
notice) 
owns a 10 percent or greater interest of the applicant or 10 percent or 
more of any class of stock, warrants, options or debt securities of the 
applicant. (See also 47 C.F.R.  1.2110)  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 
regulated 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 regulated 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 regulated 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 
understandings which relate in any way to the licenses being auctioned, including any relating 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 enter 
into any explicit or implicit agreements or understandings of any kind with parties not identified in the 
application regarding bid amounts, bidding strategies, or the particular licenses on which 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 applicants for licenses covering the same geographic area from communicating concerning bids, 
bidding strategies, or settlements during the period between the initial short-form applications filing 
deadline and the deadline for down payments on licenses won in the auction.  47 C.F.R.  1.2105(c).

Exhibit C  Status as a Small Business, Very Small Business or Entrepreneur: Applicants claiming 
status as a small business, very small business or entrepreneur must attach an exhibit providing the 
following information regarding this status.

Entity
Required Information
Applicant
Average annual gross revenues for the preceding three years set forth 
both separately (e.g., for each of the preceding three years 
individually) and in the aggregate (for all of the preceding three years 
combined).  Certification that the average of the aggregated 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. 
Applicants Affiliates
See 47 CFR  1.2110, 1.2112
Same information required as discussed above
Applicants Controlling Interests 
See 47 CFR  1.2110, 1.2112.
Same information required as discussed above

Example.  The applicant had gross revenues of $500,000 in 1999, 
$1,000,000 in 2000, and $3,000,000 in 2001, 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 
Section 1.2110(c)(5)(i)(B).  Company B owns 52% of the applicant, 
making Company B a controlling interest of the applicant, as defined in 
Part II.D.3 of this public notice.  Company B owns 100% of Company 
C, making Company C an affiliate of the applicants controlling 
interest, under Section 1.2110(c)(5)(i)(C).  The applicants Exhibit C 
would look like this:

Applicant Name

1999 gross revenues
$ 500,000

2000 gross revenues
$ 1,000,000

2001 gross revenues
$ 3,000,000

Average gross revenues for 
the preceding 3 years
                                                             
$ 1,500,000

Company A (an affiliate of the applicant)

1999 gross revenues
$    enter amount

2000 gross revenues
$    enter amount

2001 gross revenues
$    enter amount

Average gross revenues for 
the preceding 3 years
                                                             
$    enter amount

Company B (a controlling interest in the applicant)

1999 gross revenues
$    enter amount

2000 gross revenues
$    enter amount 

2001 gross revenues
$    enter amount  

Average gross revenues for 
the preceding 3 years
                                                             
$    enter amount

Company C (an affiliate of the applicants controlling interest)

1999 gross revenues
$    enter amount

2000 gross revenues
$    enter amount 

2001 gross revenues
$    enter amount  

Average gross revenues for 
the preceding 3 years
                                                                     
$    enter amount

NOTE: Each member of an applicant that is applying to bid as a consortium of small, very small 
businesses or entrepreneurs 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, its affiliates, its controlling interests, or the affiliates of its 
controlling interest have ever been in default on any Commission licenses or have ever been delinquent on 
any non-tax debt owed to any Federal agency.  The applicant must provide such information for itself, for 
each of its controlling interests and affiliates, and for each affiliate of its controlling interests as defined 
by Section 1.2110 of the Commissions rules (as amended in the Part 1 Fifth Report and Order).  

Exhibit E -- Information Requested of Designated Entities: Applicants owned by minorities or women, 
as defined in 47 C.F.R.  1.2110(c), 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 monitoring the participation of these designated entities in its auctions.

Exhibit F -- Miscellaneous Information: Applicants wishing to submit additional information should 
include it in Exhibit F.

Waivers:  Applicants requesting waiver of any rules must submit a statement of reasons sufficient to justify 
the waiver sought.  See 47 C.F.R.  1.3, 1.925.

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 Application button on the Submission 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 (see certification item number 6). 

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 by electronic mail 
to the attention of Margaret Wiener, Chief, Auctions and Industry Analysis Division, at the following 
address: auction44@fcc.gov, in which case the applicant must indicate in Exhibit F that it has filed a 
confidentiality request.  Because the required information bears on applicants qualifications, the FCC 
envisions that confidentiality requests will not be routinely granted.  

The electronic mail summarizing the changes must include a subject or caption referring to Auction No. 
44. The Bureau requests that parties format any attachments to electronic mail as Adobe Acrobat (pdf) 
or Microsoft Word documents. 

A separate copy of the letter should be faxed to the attention of Kathryn Garland at (717) 338-
2850. 

IX. ATTACHMENT E
AUCTION-SPECIFIC INSTRUCTIONS FOR
FCC REMITTANCE ADVICE (FCC FORM 159-February 2000 edition)

A. Upfront Payments
The following information supplements the standard instructions for FCC Form 159 (Revised 2/00), and 
is provided to help ensure correct completion of FCC Form 159 for upfront payments for Auction No. 44.  
Applicants need to complete FCC Form 159 carefully, since:

? Mistakes may affect their bidding eligibility; and

? Lack of consistency between information set forth in FCC Form 159 (Revised 2/00), FCC Form 
175, long-form application, and correspondence about an application may cause processing 
delays.

Therefore appropriate cross-references between the FCC Form 159 Remittance Advice and the FCC 
Form 175 Short Form Application are described below:

	Block 
	 Number 	Required Information                                 
1	LOCKBOX # - Enter 358415      

2	Payer Name - Enter the name of the person or company making the payment.
	If the applicant itself is the payer, this entry would be the same as FCC Form 175.

3	Total Amount Paid - Enter the amount of the upfront payment associated with the       
FCC Form 159 (Revised 2/00).

4-8           Street Address, City, State, ZIP Code - Enter the street mailing address (not Post
                       Office box number) where mail should be sent to the payer.  If the applicant is the
                       payer, these entries would be the same as FCC Form 175 from the Applicant 
                       Information section.

9	Daytime Telephone Number - Enter the telephone number of a person 
knowledgeable about this upfront payment.

10	Country Code  - For addresses outside the United States, enter the appropriate 
postal country code (available from the Mailing Requirements Department of the 
U.S. Postal Service).

11   	Payer FRN  Enter the payers ten-digit FCC Registration Number (FRN) 
 	registered in the Commission Registration System (CORES).  

12       	Payer TIN  Enter the payers nine-digit Taxpayer Identification Number (TIN).  

24A	Payment Type Code - Enter A44U

25A	Quantity -  Enter the number 1

26A	Fee Due - Amount of Upfront Payment

27A	Total Fee - Will be the same amount as 26A.

28A	FCC Code 1 - Enter the number 44 (indicating Auction No. 44).

             
NOTES:

? Do not use Remittance Advice (Continuation Sheet), FCC Form 159-C, for upfront payments.

? If applicant is different from the payer, complete blocks 13 through 22 for the applicant, using the 
same information shown on FCC Form 175. Otherwise leave them blank.

? Since credit card payments will not be accepted for this auction, leave Section E blank.

B. Winning Bidder Requirements, Down Payments and Final Payments
Specific information regarding down payments and final payments will be included in a post-auction 
public notice announcing the winning bidders.

X. ATTACHMENT F

Minimum Acceptable Bids, Bid Increments, and the Smoothing Formula

The Automated Auction System calculates the minimum acceptable bids and bid increments for each 
license with a standing high bid in each round of the auction based on all bidding activity for the license.  
For this auction, the Commission will use a standard smoothing methodology to calculate minimum 
acceptable bids and bid increments.

The smoothing formula calculates minimum acceptable bids by first calculating a percentage increment, 
not to be confused with the bid increment, for each license based on a weighted average of the activity 
received on each license in all previous rounds.  This methodology tailors the percentage increment for 
each license based on activity, rather than setting a global increment for all licenses. 

In a given round, the calculation of the percentage increment for each license is made at the end of the 
previous round.  The computation is based on an activity index, which is calculated as the weighted 
average of the activity in that round and the activity index from the prior round.  The activity index at the 
start of the auction (round 0) will be set at 0.  The current activity index is equal to a weighting factor 
times the number of new bids received on the license in the most recent bidding round plus one minus the 
weighting factor times the activity index from the prior round.  The activity index is then used to 
calculate a percentage increment by multiplying a minimum percentage increment by one plus the 
activity index with that result being subject to a maximum percentage increment.  The Commission will 
initially set the weighting factor at 0.5, the minimum percentage increment at 0.1 (10%), and the 
maximum percentage increment at 0.2 (20%).  

Equations

Ai = (C * Bi) + ( (1-C) * Ai-1)
Ii+1 = smaller of ( (1 + Ai) * N) and M
X i+1  = Ii+1 * Yi
where,
Ai  = activity index for the current round (round i)
C = activity weight factor
Bi = number of bids in the current round (round i)
Ai-1 = activity index from previous round (round i-1), A0 is 0
Ii+1 = percentage increment for the next round (round i+1)
N = minimum percentage increment or percentage increment floor
M = maximum percentage increment or percentage increment ceiling
X i+1 = dollar amount associated with the percentage increment
Yi  = high bid from the current round

Under the smoothing methodology, once a bid has been received on a license, the minimum acceptable 
bid for that license in the following round will be the high bid from the current round plus the dollar 
amount associated with the percentage increment, with the result rounded to the nearest thousand if it is 
over ten thousand, to the nearest hundred if it is under ten thousand but over one thousand, or to the 
nearest ten if it is below one thousand. 

Examples

License 1
C=0.5, N = 0.1, M = 0.2

Round 1 (2 new bids, high bid = $1,000,000)

1. Calculation of percentage increment for round 2 using the smoothing formula:
             A1 = (0.5 * 2) + (0.5 * 0) = 1
             I2 = The smaller of ( (1 + 1) * 0.1) = 0.2 or 0.2 (the maximum percentage increment)

2. Calculation of dollar amount associated with the percentage increment for round 2 (using I2 from 
above):
             X2 = 0.2 * $1,000,000 =  $200,000

3. Minimum acceptable bid for round 2 = $1,200,000

Round 2 (3 new bids, high bid = $2,000,000)

1. Calculation of percentage increment for round 3 using the smoothing formula:
             A2 = (0.5 * 3) + (0.5 * 1) = 2
             I3 = The smaller of ( (1 + 2) * 0.1) = 0.3 or 0.2 (the maximum percentage increment)

2. Calculation of dollar amount associated with the percentage increment for round 3 (using I3 from 
above):
             X3 = 0.2 * $2,000,000 =  $400,000

3. Minimum acceptable bid for round 3 = $2,400,000

Round 3 (1 new bid, high bid = $2,400,000)

1. Calculation of percentage increment for round 4 using the smoothing formula:
             A3 = (0.5 * 1) + (0.5 * 2) = 1.5
              I4 = The smaller of ( (1 + 1.5) * 0.1) = 0.25 or 0.2 (the maximum percentage increment)
 
2. Calculation of dollar amount associated with the percentage increment for round 4 (using I4 from 
above):
              X4 = 0.2 * $2,400,000 =  $480,000

3. Minimum acceptable bid for round 4 = $2,880,000

As stated above, until a bid has been placed on a license, the minimum acceptable bid for that license will 
be equal to its minimum opening bid.  The additional bid amounts are calculated using the difference 
between the minimum opening bid times one plus the minimum percentage increment, rounded as 
described above, and the minimum opening bid.  That is, I = (minimum opening bid)(1 + N){rounded}- 
(minimum opening bid).  Therefore, when N equals 0.1, the first additional bid amount will be 
approximately ten percent higher than the minimum opening bid; the second, twenty percent; the third, 
thirty percent; etc.

In the case of a license for which the standing high bid has been withdrawn, the minimum acceptable bid 
will equal the second highest bid received for the license.  The additional bid amounts are calculated 
using the difference between the second highest bid times one plus the minimum percentage increment, 
rounded, and the second highest bid.

XI. ATTACHMENT G

SUMMARY LISTING OF DOCUMENTS FROM THE COMMISSION
AND THE WIRELESS TELECOMMUNICATIONS BUREAU
ADDRESSING APPLICATION OF THE ANTI-COLLUSION RULES

A. Commission Decisions:
Second Report and Order in PP Docket No. 93-253, FCC 94-61, 9 FCC Rcd. 2348, 2386-2388 (1994), 
paragraphs 221-226.

Fifth Report and Order in PP Docket No. 93-253, FCC 94-178, 9 FCC Rcd. 5532, 5570-5571 (1994), 
paragraphs 91-92.

Fourth Memorandum Opinion and Order in PP Docket No. 93-253, FCC 94-264, 9 FCC Rcd. 6858, 
6866-6869 (1994), paragraphs 47-60.

Second Memorandum Opinion and Order in PP Docket No. 93-253, FCC 94-215, 9 FCC Rcd. 7245, 
7253-7255 (1994), paragraphs 48-55.

Memorandum Opinion and Order in PP Docket No. 93-253, FCC 94-295, 9 FCC Rcd. 7684, 7687-7689 
(1994), paragraphs 8-12.

In re Commercial Realty St. Pete, Notice of Apparent Liability for Forfeiture, 10 FCC Rcd. 4277 (1995), 
In re Commercial Realty St. Pete, Memorandum Opinion and Order, 11 FCC Rcd. 15,374 (1996).

In re Applications of Mercury PCS II, LLC, Notice of Apparent Liability for Forfeiture, 12 FCC Rcd. 
17,970 (1997) (petition for partial reconsideration pending).

Amendment of Part 1of the Commissions rules -- Competitive Bidding Procedures, Allocation of 
Spectrum Below 5 GHz Transferred from Federal Government Use, 4660-4685 MHz, WT Docket No. 
97-82, ET Docket No. 94-32, FCC 97-413, Third Report and Order and Second Further Notice of 
Proposed Rule Making, 13 FCC Rcd. 374, 463-469 (1997), paragraphs 155-166.

In re Application of US West Communications, Inc., Notice of Apparent Liability for Forfeiture,13 FCC 
Rcd 8286 (1998); In the Matter of Notice of Apparent Liability for Forfeiture of US West 
Communications, Inc., Order, FCC 99-90 (May 7, 1999).

In re Application of Western PCS BTA I Corporation, Notice of Apparent Liability for Forfeiture, FCC 
98-42 (March 16, 1998); In the Matter of Notice of Apparent Liability for Forfeiture of Western PCS 
BTA 1 Corporation, Memorandum Opinion and Order, 14 FCC Rcd 21571, 21577-78,  20 (rel. Dec. 13, 
1999).

In the Matter of Amendment of Part 1 of the Commissions RulesCompetitive Bidding Procedures, 
Seventh Report and Order, 16 FCC Rcd 17546 (2001).

B. Wireless Telecommunications Bureau Decisions:

Amendment of Parts 21 and 74 of the Commissions rules with Regard to Filing Procedures in the 
Multipoint Distribution Service and in the Instructional Television Fixed Service, Order, 11 FCC Rcd. 
9655 (Wireless Tel. Bur. 1995).

In re Applications of GWI PCS, Inc. For Authority to Construct and Operate Broadband PCS Systems 
Operating on Frequency Block C, Memorandum Opinion and Order, 12 FCC Rcd. 6441 (Wireless Tel. 
Bur. 1997).

In re Applications of Mercury PCS II, LLC, For Facilities in the Broadband Personal Communications 
Services in the D, E, and F Blocks, Memorandum Opinion and Order on Reconsideration, 12 FCC Rcd. 
18,093 (Wireless Tel. Bur. 1997).

In the Matter of Applications of High Plains Wireless, L.P., For Authority to Construct and Operate 
Broadband PCS Systems on Frequency Blocks D, E, and F, Memorandum Opinion and Order, 12 FCC 
Rcd. 19,627 (Wireless Tel. Bur. 1997).

In the Matter of Applications of Mercury PCS II, LLC, For Authority to Construct and Operate 
Broadband PCS Systems on Frequency Blocks D, E, and F, Memorandum Opinion and Order, 13 FCC 
Rcd. 5756 (Wireless Tel. Bur. 1997).

1. Public Notices:
Wireless Telecommunications Bureau Clarifies Spectrum Auction Anti-Collusion Rules, Public Notice, 
11 FCC Rcd. 9645 (1995).

FCC Staff Clarifies Application of Anti-Collusion Rule to Broadband PCS C Block Reauction, Public 
Notice, 11 FCC Rcd. 7031 (1996).

Wireless Telecommunications Bureau Provides Guidance on the Anti-Collusion Rule for D, E and F 
Block Bidders, Public Notice, 11 FCC Rcd. 10,134 (1996).

Wireless Telecommunications Bureau Responds to Questions About the Local Multipoint Distribution 
Service Auction, Public Notice, DA 98-37 (rel. January 9, 1998).

2. Letters from the Office of General Counsel and the Wireless 
Telecommunications Bureau:
Letter to Gary M. Epstein and James H. Barker from William E. Kennard, General Counsel, Federal 
Communications Commission (released October 25, 1994).

Letter to Alan F. Ciamporcero from William E Kennard, General Counsel, Federal Communications 
Commission (released October 25, 1996).

Letter to R. Michael Senkowski from Rosalind K. Allen, Acting Chief, Commercial Radio Division, 
Wireless Telecommunications Bureau (released December 1, 1994).

Letter to Leonard J. Kennedy from Rosalind K. Allen, Acting Chief, Commercial Radio Division, 
Wireless Telecommunications Bureau (released December 14, 1994).

Letter to Jonathan D. Blake and Robert J. Rini from Kathleen OBrien Ham, Chief, Auctions Division, 
Wireless Telecommunications Bureau, DA 95-2404 (released November 28, 1995).

Letter to Mark Grady from Kathleen OBrien Ham, Chief, Auctions Division, Wireless 
Telecommunications Bureau, 11 FCC Rcd. 10,895 (1996).

Letter to David L. Nace from Kathleen OBrien Ham, Chief, Auctions Division, Wireless 
Telecommunications Bureau, 11 FCC Rcd. 11,363 (1996).

Letter to Elliott J. Greenwald from Christopher J. Wright, General Counsel, Federal Communications 
Commission (released April 6, 1998).

Letter to Robert Pettit, Wiley, Rein & Fielding from Margaret W. Wiener, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, DA 00-2905 (released December 26, 2000).

3. Civil Actions Initiated by U.S. Department of Justice:
U.S. v. Omnipoint Corp., Proposed Final Judgements and Competitive Impact Statements, Department of 
Justice, 63 FR 65,228 (November 25, 1998).

Justice Department Sues Three Firms Over FCC Auction Practices, Press Release, U.S. Department of 
Justice (November 10, 1998).

Complaint, U.S. v. Omnipoint Corp., No. 1:98CV02750 (D.D.C. November 10, 1998).

Complaint, U.S. v. Mercury PCS II, L.L C., No. 1:98CV02751 (D.D.C. November 10, 1998).

Complaint, U.S. v. 21st Century Bidding Corp., No. 1:98CV02752 (D.D.C. November 10, 1998).

How to Obtain Copies of the Anti-Collusion Decisions:

Many of the documents listed in this attachment can be retrieved from the following Commission web 
site:  http://wireless.fcc.gov/auctions/anticollusion

The documents may be located by using our search engine (select the link search).  Documents 
retrieved from the web site are available in various formats including Word, WordPerfect, Acrobat 
Reader, Excel, and ASCII Text.  To review a document in its entirety, including footnotes, it is necessary 
to access the document in WordPerfect, MS Word, or Acrobat Reader.

Additionally, all of the documents can be ordered in hard copy for a fee from the Commissions 
contractor, Qualex International at (202) 863-2893.

  	See Reallocation and Service Rules for the 698-746 Spectrum MHz Band (Television Channels 52-59), 
GN Docket 01-74, Report and Order, FCC 01-364, (Lower 700 MHz Report & Order) (rel. January 18, 2002).
  	Balanced Budget Act of 1997, Pub. L. No. 105-33, 111 Stat. 251,  3002(a) (1997) (codified at 47 U.S.C.  
 309(j)(4)(F)) (Balanced Budget Act).  The Commissions authority to establish a reserve price or minimum 
opening bid is set forth in 47 C.F.R.  1.2104(c) and (d).
  	See  Auction of Licenses in the 698-746 MHz Band Scheduled for June 19, 2002; Comment Sought on 
Reserve Prices or Minimum Opening Bids and Other Auction Procedural Issues, Public Notice, DA 02-200 (rel. 
January 24, 2002) (Auction No. 44 Comment Public Notice).
  	Comments were filed on January 31, 2002 by Scott D. Reiter and Vincent D. McBride 
(Reiter/McBride).  Comments were filed on February 6, 2002 by McBride Spectrum Partners, LLC (McBride), 
Paxson Communications Corporation (Paxson), Rural 700 MHz Group, Rural Telecommunications Group 
(RTG), Spectrum Exchange Group, LLC and Allen & Company Incorporated (Spectrum Exchange/Allen), 
Telcom Consulting Associates (TCA), and United States Cellular Corporation (US Cellular). 
  	Reply Comments were filed on February 13, 2002 by Council Tree Communications, LLC (Council 
Tree), Entravision Communications Corporation (Entravision), Leap Wireless International, Inc. (Leap), 
McBride Spectrum Partners, LLC (McBride), National Telephone Cooperative Association (NTCA), Norwell 
Television, LLC (Norwell), Paxson Communications Corporation (Paxson), Rural 700 MHz Group (Group), 
Rural Telecommunications Group (RTG), Spectrum Clearing Alliance (Spectrum Alliance), Spectrum 
Exchange Group, LLC and Allen & Company Incorporated (Spectrum Exchange/Allen), Telecom Consulting 
Associates (TCA), and United States Cellular Corporation (US Cellular).  Spectrum Exchange Group 
submitted a late-filed comment on March 15, 2002.
  	A substantial portion of the comments filed by Reiter/McBride and McBride address the Commissions 
ownership attribution rules as applied in Auction No. 35. See Comments of Reiter/McBride at 1-3; see also 
Comments of McBride at 1-7.  Because these rules have been adopted by the Commission in its Part 1 rulemaking 
proceeding and were not a matter upon which the Bureau sought comment, the Bureau will not address them in this 
public notice. 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, 15 FCC Rcd 15293 (2000) (modified by Erratum, DA 00-2475 (rel. Nov. 3, 
2000) (Part 1 Fifth Report and Order) (recons. pending).
  	On February 28, 2002, the Rural 700 MHz Group submitted a Supplement to its Comments and Reply 
Comments.  In its Supplement, the Rural 700 MHz Group stated that the name PVT should be added to the list 
of participants in the Rural 700 MHz Group.
  	Lower 700 MHz Report & Order at  1.
  	Id at  13-14.
  	Id. at  13-14, 27-33, and 44-46.
  	Id. at  76-96.  For the Lower 700 MHz band, the Commission adopted Metropolitan Statistical Areas 
(MSAs) and Rural Service Areas (RSAs) as defined by Public Notice Report No. CL-92-40 Common Carrier 
Public Mobile Services Information, Cellular MSA/RSA Markets and Counties, dated January 24, 1992, DA 92-
109, 7 FCC Rcd 742 (1992), with the following modifications: (i) the service areas of cellular markets that border 
the U.S. coastline of the Gulf of Mexico extend 12 nautical miles from the U.S. Gulf coastline; and (ii) the service 
area of cellular market 306 that comprises the water area of the Gulf of Mexico extends from 12 nautical miles off 
the U.S. Gulf coast outward into the Gulf.  See 47 C.F.R.  27.6(c)(2).
  	Id. at  97-123.
  	Id. at  99-111.
  	Id. at   164-179.
  	Auction of Licenses in the 747-762 and 777-792 MHz Bands Scheduled for June 19, 2002;Comment 
Sought on Adding to Auction Inventory and Further Modifying Package Bidding Procedures, DA 02-260, Public 
Notice, 17 FCC Rcd 2117 (2002).	
  	Comments of Rural 700 MHz Group at 2; Comments of RTG at 2-3.
  	Comments of Rural 700 MHz Group at 2.
  	Id. at 2-3.
  	Comments of RTG at 2-3.
  	Id. at 2-3.
  	Comments of TCA at 2.
  	Reply Comments of TCA at 2-3.
  	Reply Comments of McBride at 1-2.  But see Reply Comments of McBride at 3, in which McBride 
supports consolidation of licenses into a single auction.
  	Reply Comments of the NTCA at 1-2.
  	Reply Comments of Leap at 1-2.
  	Id. at 2-5.  Leap also requests that the Commission create more MSA/RSA licenses from the Lower 700 
MHz spectrum. Id.  The Commission decided on a band plan for the Lower 700 MHz band in the Lower 700 MHz 
Report & Order.  See Lower 700 MHz Report & Order  at 7-36.  Because this issue has been addressed by the 
Commission and was not an issue on which the Bureau sought comment, we will not address it in this public 
notice.
  	Comments of Paxson at 7; see also Reply Comments of Paxson at 3-5.
  	Id. at 8-9.
  	Reply Comments of Paxson at 3-5
  	Comments of Spectrum Exchange/Allen at 5-7; see also Reply Comments of Spectrum Exchange/Allen at 
1-2.
  	Reply Comments of Spectrum Alliance at 1-2.
  	Reply Comments of Entravision at 1-2.
  	Comments of US Cellular at 2.
  	Id.
  	Comments of TCA at 2; see also Comments of RTG at 2-3, and Reply Comments of the NTCA at 1-2.
  	Lower 700 MHz Report & Order at  173.
  	Id. at  95.
  	Lower 700 MHz Report & Order at  174.
  	Part 1 Fifth Report and Order.  The Commission has further amended Section 1.2105 of the Competitive 
Bidding Rules.  See In the Matter of Amendment of Part 1 of the Commissions Rules--Competitive Bidding 
Procedures, Seventh Report and Order, 16 FCC Rcd 17546, 17555,  17  (2001) (Part 1 Seventh Report and 
Order).  See infra note 49.  On February 8, 2002, the Commission further amended Section 1.2110 of the 
Competitive Bidding Rules. Amendment of Part 1 of the Commissions Rules  Competitive Bidding Procedures, 
Eighth Report and Order, FCC 02-34 (rel. February 13, 2002).  These further amendments do not take effect until 
30 days after publication in the Federal Register.  
  	See Reallocation and Service Rules for the 698-746 MHz Spectrum Band (Television Channels 52-59) 
GN Docket No. 01-74, Notice of Proposed Rule Making, FCC 01-91 (Lower 700 MHz NPRM) (rel. March 28, 
2001).
  	See note 1 supra.  
  	See Part 1 Fifth Report and Order, 15 FCC Rcd at 15297-98,  7-8; see also 47 C.F.R.  1.2105.
  	See In re Application of Nevada Wireless for a License to Provide 800 MHz Specialized Mobile Radio 
Service in the Farmington, NM-CO Economic Area (EA-155) Frequency Band A, Memorandum Opinion and 
Order, 13 FCC Rcd. 11973, 11977  11 (1998) (Nevada Wireless).
  	See id., at 11978.
  	See Wireless Telecommunications Bureau Clarifies Spectrum Auction Anti-Collusion Rules, Public 
Notice, DA 95-2244 , 11 FCC Rcd 9645 (1995).
  	See 47 C.F.R.  1.2105(c).
  	See Wireless Telecommunications Bureau Clarifies Spectrum Auction Anti-Collusion Rules, Public 
Notice, 11 FCC Rcd 9645 (1995).
  	See 47 C.F.R.  1.65.
  	The Commission amended Section 1.2105 to require auction applicants to report prohibited 
communications in writing to the Commission immediately, but in no case later than five business days after the 
communication occurs.  Part 1 Seventh Report and Order, 16 FCC Rcd at 17555,  17.
  	47 C.F.R.  27.60 (co- and adjacent-channel interference protection to analog TV and DTV facilities).
  	Lower 700 MHz Report and Order, 17 FCC Rcd at 1121, Appendix D.
  	47 C.F.R.  27.50(c)(5).
  	A Due Diligence Announcement that includes a listing of some of the pending matters that may relate to 
the 698- 746 MHz band will be released shortly.  The Bureau does not represent that this list will include all 
pending matters that may relate to the 698-746 MHz band.
  	Lower 700 MHz Report and Order, 17 FCC Rcd at 1045-47  52-57; 47 C.F.R.  27.60(a).
  	Lower 700 MHz Report and Order, 17 FCC Rcd at 1033 n. 73.  Because broadcast operations will exist in 
the core TV spectrum (on and below Channels 51), which is sub-adjacent to the Lower 700 MHz band, adjacent-
channel and other interference protections may apply beyond the end of the DTV transition period.
  	Id. at 1039  39.
  	Id. at 1039  39 and n. 111.
  	Id. at 1034  24.
  	Id. at 1094-95  182-184.
  	The Commission initially stated that it would consider specific regulatory requests needed to implement 
voluntary agreements between incumbent broadcasters and new licensees to clear the Upper 700 MHz Band early, 
if consistent with public interest.  See 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, Upper 700 MHz First Report and Order, 15 FCC Rcd 
476 (2000) (Upper 700 MHz First Report and Order).  Subsequently, the Commission established a rebuttable 
presumption favoring the grant of requests that would both result in certain specific benefits and avoid specific 
detriments.  See 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, Memorandum Opinion and Order and Further Notice of Proposed 
Rulemaking, 15 FCC Rcd 20845 at 20870-71  61 (2000) (Upper 700 MHz MO&O and FNPRM).  These 
policies were later extended to three-way band clearing arrangements, in which non-Channel 59-69 broadcasters 
were also potential parties.  See 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, Carriage of the Transmissions of Digital Broadcast Stations, 
CS Docket No. 98-120, Review of the Commissions Rules and Policies Affecting the Conversion to Digital 
Television, MM Docket No. 00-39, Third Report and Order, 16 FCC Rcd 2703, 2718 at  36 (2001) (Upper 700 
MHz Third Report and Order).  Subsequently, the Commission provided certain additional flexibility to facilitate 
voluntary agreements for early clearing and granted a request for relief from two specific DTV-related 
requirements.  See 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, Carriage of the Transmissions of Digital Broadcast Stations, CS 
Docket No. 98-120, Review of the Commissions Rules and Policies Affecting the Conversion to Digital 
Television, MM Docket No. 00-39, Order on Reconsideration of the Third Report and Order, 16 FCC Rcd 21633 
(2001).  The fundamentals of this policy were extended to the Lower 700 MHz in the Lower 700 MHz Report and 
Order.  See Lower 700 MHz Report and Order, 17 FCC Rcd at 1094 n. 537 and 1095  184.
  	Lower 700 MHz Report and Order, 17 FCC Rcd at 1095  184.
  	Id. at 1096 n. 549.
  	Id.
  	A Letter of Understanding (LOU) with Canada recognized U.S. plans to use this band for 
other than broadcasting services, and notes that Canada is independently considering a reduction of the spectrum in 
this band allocated to television.  This LOU also specifically provides for non-broadcast allocations and services in 
the 746-806 MHz bands (Channels 60-69) by establishing criteria to protect DTV stations and analog TV stations 
established in accordance with the existing TV Agreement (Nov. 3, 1993  Jan. 5, 1994).  The FCC and Mexicos 
Secretariat of Communications and Transportation have signed a Memorandum of Understanding (MOU) that 
establishes procedures for implementing digital television (DTV) service along the United States/Mexico border and 
approves all five DTV stations in the U.S./Mexico border area slated to begin service in November 1998 and May 
1999.  The MOU, which covers DTV operations in the area extending 275 kilometers on either side of the 
U.S./Mexico common border, contains the following provisions: a list of mutually acceptable second channel DTV 
allotments for each country; procedures to be used for notifying each administration of plans to implement DTV 
service relative to an allotment; and the methods to be used by each administration in evaluating the acceptability of 
proposed DTV facilities.

  	Agreements affecting the use of this band between the United States, Canada and Mexico may be 
referenced on the internet at http://www.fcc.gov/ib/pnd/agree/.
  	See 47 C.F.R.  27.60; See also Section I.B.3 of this Public Notice.
  	See 47 C.F.R.  1.2105.
  	See 47 C.F.R. Ch. 1, Subpart I.
  	See 47 C.F.R.  1.1305-1.1319.
  	Although the Bureau did not seek comment on the issue, several commenters stated their opposition to 
any delay of Auction No. 44.  See Reply Comments of the Rural 700 MHz Group at 1-2; Reply Comments of RTG 
at 1-2; Reply Comments of TCA at 4-5, Reply Comments of Norwell at 1-2; see also Reply Comments of Paxson 
at 6 where it opposes US Cellulars proposal to delay both auctions.  US Cellular favored postponement of Auction 
No. 44 to permit development of band clearing agreements. See Comments of US Cellular at 2.  Leap Wireless 
suggests that Auction No. 44 not be held until the status of Auction No. 35 is resolved.  See Reply Comments of 
Leap at 6.  Spectrum Exchange/Allen recommends that Auction No. 44 be delayed at least until September 2002.  
See Comments of Spectrum Exchange/Allen at 5.  As noted above, Auction No. 44 is scheduled to begin 
concurrently with Auction No. 31 on June 19, 2002, as previously announced.
  	As previously stated, Metropolitan Statistical Areas (MSAs) and Rural Service Areas (RSAs) are 
collectively known as Cellular Market Areas (CMAs).
  	47 C.F.R.  1.2105 requires the disclosure on the short-form of the applicants ownership information as 
set forth in 47 C.F.R.  1.2112.  Note that both of these sections were revised in the Part 1 Fifth Report and Order.
  	See 47 C.F.R.  1.2105(a)(2)(viii), (c)(1).
  	See 47 C.F.R.  1.2105(a)(2)(ix).
  	See Section I.B.2, above.
  	See 47 C.F.R.  1.2105(c)(4)(i), (ii).
  	Reiter/McBride and McBride state that the Commission should revisit its definition of very small 
businesses.  Comments of Reiter/McBride at 2; Reply Comments of McBride at 2.  The Commission adopted small 
business definitions for licenses in the Lower 700 MHz band in the Lower 700 MHz Report & Order at  169-
179, and therefore the Bureau did not seek comment on this issue.  Because this issue has been addressed by the 
Commission, we will not address it in this public notice.
  	See 47 C.F.R.  1.2110(f), 27.702
  	Id.
  	Id.
  	A substantial portion of the comments filed by Reiter/McBride and McBride are devoted to criticism of 
the attribution rules as applied in Auction No. 35. (see note 6) 
  	The eligibility for small business preferences will be determined based on the attribution rules in effect at 
the short-form application deadline.  See Part 1 Fifth Report and Order, 15 FCC Rcd at 15327,  67.
  	Part 1 Fifth Report and Order, 15 FCC Rcd at 15330,  78.
  	See Amendment of Part 1 of the Commissions Rules-Competitive Bidding Procedures, Allocation of 
Spectrum Below 5 GHz Transferred from Federal Government Use, 4660-4685 MHz, WT Docket No. 97-82, ET 
Docket No. 94-32, Third Report and Order and Second Further Notice of Proposed Rule Making, 13 FCC Rcd 
374, 382,  5 (1997) (Part 1 Third Report and Order); Part 1 Fifth Report and Order,15 FCC Rcd at 15330,  
78.
  	For further guidance on the issue of de facto control, see the Commissions affiliation rule at 47 C.F.R.  
1.2110(b)(5); see also Ellis Thompson Corp., Summary Decision of Administrative Law Judge Joseph Chachkin, 
10 FCC Rcd. 12554, 12555-56 (1994), in which the Commission identified the following factors used to determine 
control of a business: (1) use of facilities and equipment; (2) control of day-to-day operations; (3) control of policy 
decisions; (4) personnel responsibilities; (5) control of financial obligations; and (6) receipt of monies and profits; 
Intermountain Microwave, 12 FCC 2d. 559 (1963), and Application of Baker Creek Communications, L.P., for 
Authority to Construct and Operate Local Multipoint Distribution Services in Multiple Basic Trading Areas, 
Memorandum Opinion and Order, 13 FCC Rcd. 18709 (1998).
  	See 47 C.F.R.  1.2105.
  	47 C.F.R.  1.2105(a)(2)(x).
  	47 C.F.R.  1.2105(a)(2)(xi).
  	47 C.F.R.  1.2106(a).
  	See 47 C.F.R.  1.2105(a).
  	See 47 C.F.R.  1.2105; see also Two Way Radio of Carolina, Inc., Memorandum, Opinion and Order, 
14 FCC Rcd. 12035 (1999).
  	Amendment of Part 1 of the Commissions 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) (Part 1 Order).
  	Part 1 Fifth Report and Order, 15 FCC Rcd at 15316-17,  40-42; 47 C.F.R.  1.2106(a); see 47 C.F.R. 
1.2105(a)(2)(xi) 
  	Part 1 Fifth Report and Order, 15 FCC Rcd at 15316-17,  40-42.
  	Auction No. 44 Comment Public Notice at 3.
  	Id.
   	All population figures are from the 4/1/90 U.S. Census, U.S. Department of Commerce, Bureau of the 
Census.
  	Results below $10,000 are rounded to the nearest hundred; results above $10,000 are rounded to the 
nearest thousand.
  	Comments of the Rural 700 MHz Group at 4.
  	Auction No. 44 Comment Public Notice at 3.
  	Comments of US Cellular at 1-2.
  	Comments of Spectrum Exchange/Allen at 5-6.
  	Reply Comments of McBride at 3.
  	Reply Comments of Leap at 2.
  	Id.
  	Auction No. 44 Comment Public Notice at 3.
  	Auction No. 44 Comment Public Notice at 4.
  	Id. at 4.
  	Id. at 5.
  	Id. at 10.
  	Id. at 10. 
  	Reply Comments of Leap at 8.
  	Comments of the Rural 700 MHz Group at 5-6; see also Reply Comments of the Rural 700 MHz Group at 
6. 
  	Auction No. 44 Comment Public Notice at 5.
  	See Balanced Budget Act, section 3002(a), 47 U.S.C.  309(j)(4)(F).
  	See Part 1 Third Report and Order, 13 FCC Rcd 374, 455-456  141 (1997).
  	Id.
  	Id.
  	Auction No. 44 Comment Public Notice at 6.
   	All population figures are from the 4/1/90 U.S. Census, U.S. Department of Commerce, Bureau of the 
Census.
   	Results below $10,000 are rounded to the nearest hundred; results above $10,000 are rounded to the 
nearest thousand.
  	Auction 44 Comment Public Notice at 6-7.
  	Comments of the Rural 700 MHz Group at 3-4; Comments of TCA at 3-4; see also Reply Comments of 
McBride at 2; Reply Comments of Council Tree at 2-3; Reply Comments of Leap at 7; Reply Comments of NTCA 
at 2-3.
  	Comments of the Rural 700 MHz Group at 3.
  	Reply Comments of NTCA at 2-3.
  	Reply Comments of Leap at 7.
  	Comments of the Rural 700 MHz Group at 3.
  	Reply Comments of Council Tree at 2.
  	Comments of TCA at 4.
  	Reply Comments of Council Tree at 4.
  	Reply Comments of NTCA at 2.
  	Lower 700 MHz Report & Order at  171-173.
  	Auction No. 44 Comment Public Notice at 7-9.  
  	Id.
  	Comments of the  Rural 700 MHz Group at 4.
  	Comments of TCA at 5.
  	Reply Comments of NTCA at 3.
  	Auction No. 44 Comment Public Notice at 7-9.
  	Bidders must have sufficient eligibility to place a bid on the particular license.  See Section III.D.3 
Amount of Upfront Payment, infra.
  	The product of the minimum opening bid times one plus the minimum percentage increment is rounded to 
the nearest thousand if it is over ten thousand, to the nearest hundred if it is under ten thousand but over one 
thousand, or to the nearest ten if it is below one thousand.
  	See Section IV.B.6 Bid Removal and Bid Withdrawal, infra.
  	Auction No. 44 Comment Public Notice at 9. 
  	The Bureau retains the discretion to lower the minimum acceptable bid on such licenses in the next round 
or in later rounds.
  	See 47 C.F.R.  1.2104(g), 1.2109.
  	See Part 1 Fifth Report and Order, 15 FCC Rcd at 15302,  15; 47 C.F.R.  1.2104(g)(1).
  	See Part 1 Fifth Report and Order, 15 FCC Rcd at 15302,  15.
       In the Matter of Qualcomm Incorporated Petition for Declaratory Ruling Giving Effect to the Mandate of the 
District of Columbia Circuit Court of Appeals, Order, 16 FCC Rcd 4042 (2000).

     See Supplement to Public Notice Released August 22, 2001 By Wireless Telecommunications Bureau 
Announcing It Is Prepared to Grant Four C and F Block Broadband Personal Communications Services (PCS) 
Licenses Upon Full and Timely Payment, Auction Event No. 35, DA 01-2071, Public Notice, 16 FCC Rcd 16,025 
(2001).  All of the terms and conditions applicable to Qualcomms use of the ADV shall apply to its use by a 
transferee, except that a transferee may not transfer the ADV to an entity other than back to Qualcomm.  See In the 
Matter of Qualcomm Incorporated Petition for Declaratory Ruling Giving Effect to the Mandate of the District of 
Columbia Circuit Court of Appeals, Order, 16 FCC Rcd 4042 (2000); see also Letter from Thomas J. Sugrue, Chief, 
Wireless Telecommunications Bureau, Federal Communications Commission, to Veronica M. Ahern, Attorney for 
Qualcomm Incorporated (December 22, 2000).

  	See Extending Wireless Telecommunications Services to Tribal Lands, WT Docket No. 99-266, Report 
and Order and Further Notice of Proposed Rule Making, 15 FCC Rcd 11794 (2000); Wireless 
Telecommunications Bureau Announces Availability of Bidding Credits For Providing Wireless Services To 
Qualifying Tribal Lands, Public Notice, 15 FCC Rcd 18351 (2000); Wireless Telecommunications Bureau 
Releases Additional Information Regarding the Procedures for Obtaining a Tribal Lands Bidding Credit and List of 
Tribal Lands, Public Notice, DA 00-2836, (rel. December 14, 2000); Wireless Telecommunications Bureau 
Announces Enhancements to the Universal Licensing System to Help Winning Bidders of FCC Auctions File for 
Tribal Land Bidding Credits, Public Notice, DA 01-613, (rel. March 8, 2001).
 

 
 

 

PUBLIC NOTICE

		Federal Communications Commission
		445 12th Street, SW
		Washington, DC  20554

1

B-1

                                                                                
3
                                                                                C-

D-7

                                                                               
 

PUBLIC NOTICE

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

E-1

                                                                               

E-2
 

PUBLIC NOTICE

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

F-3

G-1