[Federal Register Volume 69, Number 208 (Thursday, October 28, 2004)]
[Notices]
[Pages 62884-62896]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-24118]


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FEDERAL COMMUNICATIONS COMMISSION

[Report No. AUC-04-58-C; DA 04-3005; Report No. AUC-04-58-D; DA 04-3270 
(Auction No. 58)]


Broadband PCS Spectrum Auction Start Date Re-Scheduled for 
January 26, 2005; New Pre-Auction Dates and Deadlines Established; 
Notice and Filing Requirements, Minimum Opening Bids, Upfront Payment 
and Other Auction Procedures

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This document announces the procedures and minimum opening 
bids for the upcoming auction of 242 Broadband Personal Communications 
Service (PCS) licenses and announces that the auction initially 
scheduled to commence on January 12, 2005 is rescheduled to begin on 
January 26, 2005. In addition, this document announces the rescheduling 
of certain pre-auction events and deadlines. This document is intended 
to familiarize prospective bidders with the procedures and minimum 
opening bids for this auction.

DATES: Auction No. 58 is scheduled to begin on January 26, 2005.

FOR FURTHER INFORMATION CONTACT: Auctions and Spectrum Access Division 
(WTB): For legal questions: Audrey Bashkin or Scott Mackoul at (202) 
418-0660. For general auction questions: Jeff Crooks at (202) 418-0660 
or Lisa Stover at (717) 338-2888. For service rule questions: Mobility 
Division, WTB, Kathy Harris or Erin McGrath at (202) 418-0620. For 
technical questions: Chris Miller or JoAnn Epps at (202) 418-0620.
    Media Contact: Lauren Patrich at (202) 418-7944.

SUPPLEMENTARY INFORMATION: This is a summary of the Auction No. 58 
Procedures Public Notice released on September 16, 2004, and the public 
notice released October 15, 2004, rescheduling the upcoming auction and 
certain pre-auction events and deadlines. In light of the Commission's 
decision in the Memorandum Opinion and Order, FCC 04-249, released 
October 15, 2004, the Bureau rescheduled the start date and the pre-
auction dates and deadlines for Auction No. 58 in order to provide 
additional time for bidder preparation and planning. The Bureau 
originally provided more than six months for bidders to prepare for 
Auction No. 58, which normally should provide more than sufficient time 
for planning purposes. Requests to amend or waive the Commission's 
eligibility rules for certain broadband PCS licenses, however, created 
some uncertainty regarding whether such licenses would be available in 
open or closed bidding. Now that a final decision has been made on 
those matters, the Commission therefore believes a slight modification 
to its auction schedule is warranted. The complete text of the Auction 
No. 58 Procedures Public Notice, including attachments, as well as 
related Commission 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. The Auction No. 58 Procedures Public Notice and related 
Commission documents may also be purchased from the Commission's 
duplicating contractor, Best Copy and Printing, Inc. (``BCPI''), 
Portals II, 445 12th Street, SW., Room CY-B402, Washington, DC, 20554, 
telephone 202-488-5300, facsimile 202-488-5563, or you may contact BCPI 
at its Web site: http://www.BCPIWEB.com. The Auction No. 58 Procedures 
Public Notice and related documents are also available on the Internet 
at the Commission's Web site: http://wireless.fcc.gov/auctions/58/.

I. General Information

A. Introduction

    1. The Auction No. 58 Procedures Public Notice, announces the 
procedures and minimum opening bids for the upcoming auction of 
licenses in the broadband personal communication services (``PCS'') 
scheduled for January 26, 2005 (Auction No. 58). On June 18, 2004, in 
accordance with the Balanced Budget Act of 1997, the Wireless 
Telecommunications Bureau (``WTB'') released a public notice seeking 
comment on reserve prices or minimum opening bids and the procedures to 
be used for the auction of broadband PCS licenses in Auction No. 58. 
The Bureau released a second public notice on August 3, 2004, revising 
the list of licenses available and seeking comment on procedures for 
the auction of those licenses. The Bureau received 19 comments and five 
reply comments in response to the Auction No. 35 Comment Public Notice, 
65 FR 55243, September 13, 2000, and no comments in response to the 
Auction No. 58 Revised Inventory Public Notice, 69 FR 49897, August 12, 
2004.

[[Page 62885]]

i. Background of Proceeding
    2. Auction No. 58 includes licenses for A, C, D, E, and F blocks of 
broadband PCS spectrum. This auction will be the fifth auction of C 
block broadband PCS spectrum and the fourth auction of F block 
broadband PCS spectrum. The Commission initially designated the C and F 
block licenses to be held only by those entities that qualified as 
``entrepreneurs'' under the Commission's rules. Specifically, only 
those entities that qualified as entrepreneurs could bid on the C and F 
block licenses and hold the licenses for the first five years following 
the date of the initial license grant. The initial C block licenses 
were awarded through two auctions, Auction No. 5, which ended on May 6, 
1996, and Auction No. 10, which concluded on July 16, 1996. Auction No. 
11, the initial F block auction, ended on January 14, 1997, and also 
included D and E block licenses. Auction No. 22, which concluded on 
April 15, 1999, made available C, E and F block licenses that had been 
returned to, or reclaimed by, the Commission.
    3. In 2000, the Commission revised certain service and auction 
rules for the C and F block licenses. Among the modifications to the 
Commission's rules, the C/F Block Sixth Report and Order, 65 FR 53624, 
September 5, 2000, reconfigured the size of 30 megahertz C block 
licenses available for auction, creating three 10 megahertz licenses. 
The Commission also removed the entrepreneur eligibility restrictions 
for some C block licenses. It did so by first establishing two 
categories for licenses: Tier 1 being comprised of those Basic Trading 
Areas (BTAs) with populations that, according to the 1990 census, are 
equal to or greater than 2.5 million and Tier 2 being comprised of the 
remaining BTAs. The Commission then established ``open bidding'' (i.e., 
bidding without entrepreneur eligibility restrictions) for two of the 
three newly reconfigured 10 megahertz C block licenses in Tier 1 and 
for one of the three newly reconfigured 10 megahertz C block licenses 
in Tier 2. The remaining 10 megahertz C block licenses in Tier 1 and 2 
were reserved for entrepreneurs. Finally, with respect to available 15 
megahertz C block licenses, the Commission eliminated eligibility 
restrictions for such licenses in Tier 1, but maintained the 
eligibility requirements in Tier 2.
    4. Following the adoption of the C/F Block Sixth Report and Order, 
the Commission held Auction No. 35, which included 422 C and F block 
broadband PCS licenses. Certain of the licenses won at auction, 
however, were not granted because the spectrum was the subject of 
litigation and/or bankruptcy proceedings. Recent settlement in a number 
of those matters has made C and F block spectrum available again for 
licensing. This spectrum, along with spectrum associated with other 
licenses that cancelled or were otherwise returned to the Commission, 
is now included in the inventory for Auction No. 58.
    5. Additionally, following the announcement of Auction No. 58, 
CTIA--The Wireless Association <SUP>TM</SUP> (``CTIA'') filed a 
petition for rulemaking, or in the alternative, a request for waiver of 
the eligibility restrictions placed on certain C block licenses (``CTIA 
Petition''). This petition was placed on public notice and will be 
addressed in a proceeding separate from the instant one which is 
intended to establish procedures for the conduct of Auction No. 58. The 
eligibility issue raised in the CTIA Petition was also addressed in 
nearly all of the comments filed pursuant to the Auction No. 58 Comment 
Public Notice, as well as in the Verizon Wireless petition for 
reconsideration. As explained in more detail below, this issue is 
beyond the scope of that public notice and will be addressed 
separately. Accordingly, unless the Commission decides otherwise, the 
current eligibility structure for C block licenses (i.e., closed 
bidding for certain C block licenses by only those entities that 
qualify as entrepreneurs) will remain in effect for Auction No. 58.
ii. Licenses To Be Auctioned
    6. Auction No. 58 will offer 242 broadband PCS licenses. A complete 
list of the licenses available in Auction No. 58 and their description 
is included in Attachment A of the Auction No. 58 Procedures Public 
Notice.
    7. While most licenses are available to all bidders in open 
bidding, 119 C block licenses are available only to entrepreneurs in 
closed bidding. In order to qualify as an ``entrepreneur,'' an 
applicant, together with its affiliates and persons or entities that 
hold interests in the applicant and their affiliates, must have had 
gross revenues of less than $125 million in each of the last two years 
and must have less than $500 million in total assets.
    8. For C and F block licenses available in open bidding, bidding 
credits are available to small and very small businesses, or consortia 
thereof, as defined in the Commission's rules. Specifically, an entity 
will be considered a small business if it, together with its 
affiliates, has less than $40 million in average annual gross revenues 
for the preceding three years. An entity will be considered a very 
small business if it, together with its affiliates, has less than $15 
million in average annual gross revenues for the preceding three years. 
Small business and very small business bidding credits are not 
available for C block licenses won in closed bidding or for licenses in 
the A, D, or E blocks.
    9. The following table contains the block/eligibility status/
frequency cross-reference list for Auction No. 58:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      Eligibility status                    Bandwidth
                                     ---------------------------------------------------  (MHz) (unless
           Frequency block                                                                  otherwise      Frequency (MHz)  (unless otherwise noted in
                                               Tier 1                    Tier 2             noted in                      Attachment A)
                                                                                          Attachment A)
--------------------------------------------------------------------------------------------------------------------------------------------------------
A...................................  n/a.....................  n/a....................              30  1850-1865, 1930-1945
C1..................................  Open....................  Closed.................              15  1902.5-1910, 1982.5-1990
C2..................................  Open....................  Closed.................              15  1895-1902.5, 1975-1982.5
C3..................................  Closed..................  Closed.................              10  1895-1900, 1975-1980
C4..................................  Open....................  Closed.................              10  1900-1905, 1980-1985
C5..................................  Open....................  Open...................              10  1905-1910, 1985-1990
D...................................  n/a.....................  n/a....................              10  1865-1870, 1945-1950
E...................................  n/a.....................  n/a....................              10  1885-1890, 1965-1970
F...................................  Open....................  Open...................              10  1890-1895, 1970-1975
--------------------------------------------------------------------------------------------------------------------------------------------------------

    10. In some cases, licenses are available for only part of a market 
or may not include all of the spectrum associated with a particular 
frequency block in Auction No. 58. Dark gray boxes indicate that no 
license of the

[[Page 62886]]

particular tier/frequency block combination will be available in 
Auction No. 58. See Attachment A of the Auction No. 58 Procedures 
Public Notice to determine which licenses will be offered.

B. Rules and Disclaimers

i. Relevant Authority
    11. Prospective applicants must familiarize themselves thoroughly 
with the Commission's rules relating to broadband PCS, contained in 
Title 47, part 24, 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 applicants must 
also be thoroughly familiar with the procedures, terms and conditions 
(collectively, ``terms'') contained in the Auction No. 58 Procedures 
Public Notice; the Auction No. 58 Comment Public Notice; the Auction 
No. 58 Revised Inventory Public Notice; the C/F Block Sixth Report and 
Order, (as well as any other prior and subsequent Commission 
proceedings regarding competitive bidding procedures).
    12. The terms contained in the Commission's 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 applicants. It is the responsibility of all applicants 
to remain current with all Commission rules and with all public notices 
pertaining to this auction.
ii. Prohibition of Collusion
    13. To ensure the competitiveness of the auction process, Sec.  
1.2105(c) of the Commission's rules prohibits applicants for any of the 
same geographic license areas from communicating with each other during 
the auction about bids, bidding strategies, or settlements unless such 
applicants have identified each other on their FCC Form 175 
applications as parties with whom they have entered into agreements 
under Sec.  1.2105(a)(2)(viii). Thus, applicants for any of the same 
geographic license areas must affirmatively avoid all discussions with 
each other that affect, or in their reasonable assessment have the 
potential to affect, bidding or bidding strategy. This prohibition 
begins at the short-form application filing deadline and ends at the 
down payment deadline after the auction. This prohibition applies to 
all applicants regardless of whether such applicants become qualified 
bidders or actually bid. For purposes of this prohibition, Sec.  
1.2105(c)(7)(i) defines applicant as including all controlling 
interests in the entity submitting a short-form application to 
participate in the auction, as well as all holders of partnership and 
other ownership interests and any stock interest amounting to 10 
percent or more of the entity, or outstanding stock, or outstanding 
voting stock of the entity submitting a short-form application, and all 
officers and directors of that entity.
    14. Applicants for licenses in any of 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 applicants 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.
    15. The Commission's anti-collusion rules allow applicants to form 
certain agreements during the auction, provided the applicants have not 
applied for licenses covering the same geographic areas. In addition, 
applicants that apply to bid for all markets will be precluded from 
communicating with all other applicants until after the down payment 
deadline. However, all 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 Sec.  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. By 
signing their FCC Form 175 short-form applications, applicants are 
certifying their compliance with Sec.  1.2105(c).
    16. Section 1.65 of the Commission's 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, Sec.  1.65 requires auction applicants that engage 
in communications of bids or bidding strategies that result in a 
bidding agreement, arrangement or understanding not already identified 
on their short-form applications to promptly disclose any such 
agreement, arrangement or understanding to the Commission by amending 
their pending applications. In addition, Sec.  1.2105(c)(6) requires 
all auction applicants to report prohibited discussions or disclosures 
regarding bids or bidding strategy to the Commission in writing 
immediately but in no case later than five business days after the 
communication occurs, even if the communication does not result in an 
agreement or understanding regarding bids or bidding strategy that must 
be reported under Sec.  1.65.
    17. A summary listing of documents issued by the Commission and the 
Bureau addressing the application of the anti-collusion rules may be 
found in Attachment G of the Auction No. 58 Procedures Public Notice.
iii Due Diligence
    18. 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 should perform their 
individual due diligence before proceeding as they would with any new 
business venture.
    19. Applicants are reminded that private and common carrier fixed 
microwave services (``FMS'') operating in the 1850-1990 MHz band (and 
other bands) are being relocated to available frequencies in higher 
bands or to other media. Applicants should become familiar with the 
status of FMS operation and relocation, and applicable Commission rules 
and orders, in order to make a reasoned, appropriate decision about 
their participation in Auction No. 58 and their bidding strategy.

[[Page 62887]]

    20. Applicants 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. 58.
    21. Applicants should also be aware that certain pending and future 
applications (including those for modification), petitions for 
rulemaking, requests for special temporary authority (``STA''), waiver 
requests, petitions to deny, petitions for reconsideration, informal 
oppositions, and applications for review before the Commission may 
relate to particular applicants or incumbent licensees or the licenses 
available in Auction No. 58. In addition, pending and future judicial 
proceedings may relate to particular applicants or incumbent licensees, 
or the licenses available in Auction No. 58. Applicants are responsible 
for assessing the likelihood of the various possible outcomes, and 
considering their potential impact on spectrum licenses available in 
this auction.
    22. Applicants should perform due diligence to identify and 
consider all proceedings that may affect the spectrum licenses being 
auctioned. We note that resolution of such matters could have an impact 
on the availability of spectrum for Auction No. 58. In addition, 
although the Commission may continue to act on various pending 
applications, informal objections petitions, and other requests for 
Commission relief, some of these matters may not be resolved by the 
time of the auction or by the time of license grant.
    23. Applicants may obtain information about licenses available in 
Auction No. 58 through the Bureau's licensing databases on the World 
Wide Web at http://wireless.fcc.gov/uls. Applicants may query the 
database online and download a copy of their search results if desired. 
Detailed instructions on using License Search (including frequency 
searches and the GeoSearch capability) and downloading query results 
are available online by selecting the ``?'' button at the upper right-
hand corner of the License Search screen. Applicants should direct 
questions regarding the search capabilities to the FCC Technical 
Support hotline at (202) 414-1250 (voice) or (202) 414-1255 (TTY), or 
via e-mail at <a href="/cdn-cgi/l/email-protection#67120b1404080a0a2701040449000811"><span class="__cf_email__" data-cfemail="8affe6f9e9e5e7e7caece9e9a4ede5fc">[email protected]</span></a>.
    24. 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. 
To the extent the Commission's databases may not include all 
information deemed necessary or desirable by an applicant, applicants 
may obtain or verify such information from independent sources or 
assume the risk of any incompleteness or inaccuracy in said databases. 
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. 
Applicants are strongly encouraged to physically inspect any sites 
located in, or near, the service area(s) for which they plan to bid.
iv. Bidder Alerts
    25. As is the case with many business investment opportunities, 
some unscrupulous entrepreneurs may attempt to use Auction No. 58 to 
deceive and defraud unsuspecting investors. 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. 58 may also call the FCC Consumer Center at (888) CALL-FCC 
((888) 225-5322).
v. National Environmental Policy Act Requirements
    26. Licensees must comply with the Commission's 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 Commission's NEPA rules for each such facility.

C. Auction Specifics

i. Auction Date
    27. The auction will begin on Wednesday, January 26, 2005. 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.
ii. Auction Title
    28. Auction No. 58--Broadband PCS.
iii. Bidding Methodology
    29. The bidding methodology for Auction No. 58 will be simultaneous 
multiple round bidding. The Commission will conduct this auction over 
the Internet, and telephonic bidding will be available as well. As a 
contingency plan, bidders may also dial in to the FCC Wide Area 
Network. Qualified bidders are permitted to bid telephonically or 
electronically.
iv. Pre-Auction Dates and Deadlines
    30. Listed are important dates associated with Auction No. 58:
    Auction Seminar--November 1, 2004.
    Short-Form Application (FCC Form 175) Filing Window Opens--November 
16, 2004; 9 a.m. ET.
    Short-Form Application (FCC Form 175) Filing Window Deadline--
November 30, 2004; 6 p.m. ET.
    Upfront Payments (via wire transfer)--December 29, 2004; 6 p.m. ET.
    Mock Auction--January 21, 2005.
    Auction Begins--January 26, 2005.
v. Requirements for Participation
    31. Those wishing to participate in the auction must:
    <bullet> Submit a short-form application (FCC Form 175) 
electronically by 6 p.m. ET, November 30, 2004.
    <bullet> Submit a sufficient upfront payment and an FCC Remittance 
Advice Form (FCC Form 159) by 6 p.m. ET, December 29, 2004.
    <bullet> Comply with all provisions outlined in the Auction No. 58 
Procedures Public Notice and applicable Commission rules.
vi. Any Filings Related to Auction No. 58
    32. An electronic copy of any filings that are submitted to the 
Commission related to Auction No. 58, including filings made with the 
Commission's Office of the Secretary, should also be submitted by 
electronic mail to the following address: <a href="/cdn-cgi/l/email-protection#0f6e7a6c7b6660613a374f696c6c21686079"><span class="__cf_email__" data-cfemail="bedfcbddcad7d1d08b86fed8dddd90d9d1c8">[email protected]</span></a>.
vii. General Contact Information
    33. The following is a list of general contact information relating 
to Auction 58.

General Auction Information: General Auction Questions, Seminar 
Registration
    FCC Auctions Hotline, (888) 225-5322, Press Option <greek-i>2, or 
direct (717) 338-2888, Hours of service: 8 a.m.--5:30 p.m. ET, Monday 
through Friday. Auction Legal Information:
Auction Rules, Policies, Regulations
    Auctions and Spectrum Access Division, (202) 418-0660.
Licensing Information: Rules, Policies, Regulations, Licensing Issues, 
Due Diligence, Incumbency Issues
    Mobility Division, (202) 418-0620.

[[Page 62888]]

Technical Support: Electronic Filing, FCC Automated Auction System
    FCC Auctions Technical Support Hotline, (202) 414-1250, (202) 414-
1255 (TTY), Hours of service: 8 a.m.--6 p.m. ET, Monday through Friday.
Payment Information: Wire Transfers, Refunds
    FCC Auctions Accounting Branch, (202) 418-0578, (202) 418-2843 
(Fax).
Telephonic Bidding:
    Will be furnished only to qualified bidders.
Press Information:
    Lauren Patrich (202) 418-7944.
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

    34. Guidelines for completion of the short-form (FCC Form 175) are 
set forth in Attachment D of the Auction No. 58 Procedures Public 
Notice. All applicants must certify on their FCC Form 175 applicants 
under penalty of perjury that they are legally, technically, 
financially and otherwise qualified to hold a license.

A. Ownership Disclosure Requirements (FCC Form 175 Exhibit A)

    35. All applicants must comply with the uniform Part 1 ownership 
disclosure standards and provide information required by Sec. Sec.  
1.2105 and 1.2112 of the Commission's 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 Sec.  1.2112 of the Commission's rules.

B. Consortia and Joint Bidding Arrangements (FCC Form 175 Exhibit B)

    36. 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 that 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.
    37. 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, applicants are reminded that 
certain discussions or exchanges could touch upon impermissible subject 
matters because they may convey pricing information and bidding 
strategies.

C. Eligibility

i. Eligibility for Closed Bidding (FCC Form 175 Exhibit C)
    38. In order to be eligible to bid for one or more closed C block 
licenses, an applicant must demonstrate that it meets the eligibility 
requirements of Sec.  24.709(a) of the Commission's rules. 47 CFR 
24.709(a). Specifically, as of the FCC Form 175 filing deadline, the 
applicant, together with its affiliates and persons or entities that 
hold interests in the applicant and their affiliates, must have 
combined total assets of less than $500 million and must have had 
combined gross revenues of less than $125 million in each of the last 
two years. Id. Applicants should make this showing in ``Exhibit C'' to 
the FCC Form 175.
    39. The majority of comments filed in response to the Auction No. 
58 Comment Public Notice address the eligibility restrictions placed on 
the C block licenses, referred to as set-aside licenses, reserved to 
only entities that qualify as entrepreneurs. Some parties advocate a 
change in the current rules to allow all entities to bid on the set-
aside licenses. On the other hand, a number of commenters oppose any 
change to the eligibility structure, and at least one party advocates a 
change in the current structure to increase the number of licenses 
limited to entrepreneurs. The requests made in comments filed to the 
Auction No. 58 Comment Public Notice to change the eligibility rules 
are beyond the scope of this public notice regarding the procedures for 
Auction No. 58. As noted above, the eligibility issue was also raised 
in a petition for rulemaking and a request for waiver filed by CTIA, 
and in the Verizon Wireless petition for reconsideration. Those 
petitions have been addressed separately.
    40. Included in its Auction No. 58 comments, another commenter also 
seeks a waiver of the Commission's rules to extend the expired 
entrepreneur eligibility provisions of Sec.  24.709(a)(5)(i) to allow 
it and other entities to participate in closed bidding in Auction No. 
58. This matter has also been addressed separately.
ii. Bidding Credit Eligibility (FCC Form 175 Exhibit D)
    41. Bidding credits are available to small and very small 
businesses, or consortia thereof, (as defined in 47 CFR 24.720(b)) that 
win C and F block licenses in open bidding. A bidding credit represents 
the amount by which a bidder's 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.
    42. For Auction No. 58, bidding credits will be available to small 
businesses or consortia thereof, as follows:
    <bullet> A bidder with attributable average annual gross revenues 
of not more than $40 million for the preceding three years (``small 
business'') will receive a 15 percent discount on its winning bids for 
C and F block licenses;
    <bullet> A bidder with attributable average annual gross revenues 
of not more than $15 million for the preceding three years (``very 
small business'') will receive a 25 percent discount on its winning 
bids for C and F block licenses.
    43. Small business bidding credits are not cumulative; a qualifying 
applicant receives the 15 percent or 25 percent bidding credit on its 
winning bid, but only one credit per license. No small and very small 
business bidding credits are provided for licenses in the A, E and D 
blocks or C block licenses available only to entrepreneurs in closed 
bidding.
    44. To encourage the growth of wireless services in federally 
recognized tribal lands the Commission has implemented a tribal land 
bidding credit. See section V.E. of the Auction No. 58 Procedures 
Public Notice.

[[Page 62889]]

iii. Applicability of Part 1 Attribution Rules
    45. Controlling interest standard. On August 14, 2000, the 
Commission released the Part 1 Fifth Report and Order, 65 FR 52323, 
August 29, 2000, in which the Commission, inter alia, adopted a 
``controlling interest'' standard for attributing to auction applicants 
the total assets and/or gross revenues of their investors and 
affiliates in determining entrepreneur and small business eligibility 
for future C and F block 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. More recently, the Commission made further modifications 
to its rules governing the attribution of gross revenues for purposes 
of determining small business eligibility. These changes included 
exempting the gross revenues of the affiliates of a rural telephone 
cooperative's officers and directors from attribution to the applicant 
if certain specified conditions are met. The Commission also clarified 
that in calculating an applicant's gross revenues under the controlling 
interest standard, the personal net worth, including personal income, 
of its officers and directors will not be attributed to the applicant.
    46. The Commission will thoroughly review the information provided 
in applicants' FCC Form 175 in determining eligibility for designated 
entity status. Eligibility for small business preferences will be 
determined based on the attribution rules in effect at the short-form 
application deadline. Accordingly, the ``controlling interest'' 
standard, as recently modified, and the Part 1 rules that superseded 
inconsistent service-specific rules, will apply in Auction No. 58.
    47. ``Control'' for purposes of controlling interest standard. The 
term ``control'' includes both de facto and de jure control of the 
applicant. Typically, ownership of at least 50.1 percent of an entity's 
voting stock indicates de jure control. De facto control is determined 
on a case-by-case basis. The following are some common indicia of de 
facto control:
    <bullet> The entity constitutes or appoints more than 50 percent of 
the board of directors or management committee;
    <bullet> The entity has authority to appoint, promote, demote, and 
fire senior executives that control the day to-day activities of the 
licensee; or
    <bullet> The entity plays an integral role in management decisions.
    48. Attribution for entrepreneur eligibility. For purposes of 
determining which entities qualify as entrepreneurs for closed bidding, 
the Commission will consider the total assets and gross revenues of the 
applicant, its controlling interest holders, the affiliates of the 
applicant, and their controlling interest holders. The Commission does 
not impose specific equity requirements on parties with controlling 
interests. Once principals or entities with a controlling interest are 
determined, only the assets and revenues of those principals or 
entities, the applicant, and their affiliates will be counted in 
determining entrepreneur eligibility. Applicants for closed bidding in 
Auction No. 58 should not include existing C and F block licenses in 
their calculations of total assets; however, all other Commission 
licenses must be included in such calculations.
    49. Attribution for small business and very small business 
eligibility. Similarly, in determining which entities qualify as small 
businesses or very small businesses, 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, and the 
applicant and its affiliates, will be counted in determining small 
business eligibility.
    50. A consortium of small businesses or very small businesses is a 
``conglomerate organization formed as a joint venture between or among 
mutually independent business firms,'' each of which individually must 
satisfy one of the definitions of small business or very small business 
in Sec.  24.720(b) of the Commission's rules.
iv. Supporting Documentation
    51. 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 entrepreneurs and/or small business or very small business (or 
consortia of small businesses or very small businesses) for this 
auction.
    52. 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 form's 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.
    53. Entrepreneur eligibility (Exhibit C). Entities applying to bid 
on closed licenses 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 two years and the total assets of 
each of the following: (i) The applicant, (ii) the applicant's 
affiliates, (iii) the applicant's controlling interest holders, and 
(iv) the affiliates of the applicant's controlling interest holders. 
Certification that the gross revenues for each of the preceding two 
years or the total assets do not exceed the applicable limit is not 
sufficient. The applicant must provide separately for itself, its 
affiliates, its controlling interest holders, and their affiliates a 
schedule of gross revenues for each of the preceding two years.
    54. Small business or very small business eligibility (Exhibit D). 
Entities applying to bid as small businesses or very small businesses 
(or consortia of small businesses or very small businesses) will be 
required to disclose on Exhibit D 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: (i) The applicant, 
(ii) its affiliates, (iii) its controlling interests, and (iv) 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 
businesses or very small businesses, this information must be provided 
for each consortium member.

[[Page 62890]]

D. Provisions Regarding Defaulters and Former Defaulters (FCC Form 175 
Exhibit E)

    55. Each applicant must certify on its FCC Form 175 application 
under penalty of perjury that the applicant, its controlling interests, 
its affiliates, and the affiliates of its controlling interests, as 
defined by Sec.  1.2110, are not in default on any payment for 
Commission licenses (including down payments) and 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 interests, as defined by Sec.  1.2110, have ever been in 
default on any Commission licenses or have ever been delinquent on any 
non-tax debt owed to any Federal agency. Applicants must include this 
statement as Exhibit E to the FCC Form 175.
    56. ``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. 58, provided that they are otherwise qualified. 
However, as discussed infra in section III.D.iii, former defaulters are 
required to pay upfront payments that are fifty percent more than the 
normal upfront payment amounts.

E. Transfer and Assignment Restrictions on Licenses Won in Closed 
Bidding

    57. Licenses won in closed bidding generally may be transferred or 
assigned only to an entity that meets the entrepreneur financial caps 
or that holds another C or F block license that it acquired while 
meeting the entrepreneur financial caps. This restriction ends five 
years after the date of the initial license grant or upon notification 
by the licensee that it has satisfied its five-year construction 
requirement under 47 CFR 24.203(c), whichever comes first. Licenses won 
in open bidding are not subject to this restriction and may be 
transferred or assigned any time after grant to any qualified entity, 
subject to Commission consent.

F. Unjust Enrichment Payments

    58. C or F block licensees that use a small or very small business 
bidding credit, and during the first five years of their license term 
seek to assign or transfer control of a license to an entity that does 
not meet the eligibility criteria for a small or very small business 
bidding credit, or that is eligible for a lower bidding credit, will 
have to reimburse the U.S. Government for a percentage of the amount of 
the bidding credit, plus interest.

G. Installment Payments

    59. Installment payment plans will not be available in Auction No. 
58.

H. Other Information (FCC Form 175 Exhibits F and G)

    60. Applicants owned by minorities or women, as defined in 47 CFR 
1.2110(c)(2), may attach an exhibit (Exhibit F) 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 G.

J. Minor Modifications to Short-Form Applications (FCC Form 175)

    61. After the short-form filing deadline (6 p.m. ET November 30, 
2004), 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, change the certifying official, change control of the 
applicant, or change bidding credits). See 47 CFR 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 Spectrum 
Access Division, at the following address: <a href="/cdn-cgi/l/email-protection#69081c0a1d0006075c51290f0a0a470e061f"><span class="__cf_email__" data-cfemail="a4c5d1c7d0cdcbca919ce4c2c7c78ac3cbd2">[email protected]</span></a>. The 
electronic mail summarizing the changes must include a subject or 
caption referring to Auction No. 58. The Bureau requests that parties 
format any attachments to electronic mail as Adobe[reg] Acrobat[reg] 
(pdf) or Microsoft[reg] Word documents.

K. Maintaining Current Information in Short-Form Applications (FCC Form 
175)

    62. Section 1.65 of the Commission's 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. Amendments reporting substantial changes of possible 
decisional significance in information contained in FCC Form 175 
applications, as defined by 47 CFR 1.2105(b)(2), will not be accepted 
and may in some instances result in the dismissal of the FCC Form 175 
application. An electronic copy of any filings that are submitted to 
the Commission related to Auction No. 58, including filings made with 
the Commission's Office of the Secretary, should also be submitted by 
electronic mail to the following address: <a href="/cdn-cgi/l/email-protection#29485c4a5d4046475a1c11694f4a4a074e465f"><span class="__cf_email__" data-cfemail="e4859187908d8b8a97d1dca4828787ca838b92">[email protected]</span></a>.

III. Pre-Auction Procedures

A. Auction Seminar

    63. On Monday, November 1, 2004, the FCC will sponsor a seminar for 
Auction No. 58 at the Federal Communications Commission, located at 445 
12th Street, SW., Washington, DC. The seminar will provide attendees 
with information about pre-auction procedures, auction conduct, the FCC 
Automated Auction System, auction rules, and the broadband PCS rules.
    64. For individuals who are unable to attend, Audio/Video of this 
seminar will be Web cast live from the FCC's Audio/Video Events page at 
http://www.fcc.gov/realaudio/. A recording of the Web cast will also be 
available for playback from the FCC's A/V Archives Page following the 
meeting.

B. Short-Form Application (FCC Form 175)--Due November 30, 2004

    65. 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 
p.m. ET on November 30, 2004. Late applications will not be accepted.
    66. 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 section III.D.
i. Electronic Filing
    67. Applicants must file their FCC Form 175 applications 
electronically. Applications may generally be filed at any time 
beginning at 9 a.m. ET on November 16, 2004, until 6 p.m. ET on 
November 30, 2004. 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 November 30, 
2004.

[[Page 62891]]

    68. 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 of the Auction No. 58 Procedures Public Notice. Technical 
support is available at (202) 414-1250 (voice) or (202) 414-1255 (text 
telephone (TTY)); hours of service are Monday through Friday, from 8 
a.m. to 6 p.m. ET. In order to provide better service to the public, 
all calls to the hotline are recorded.
ii. Completion of the FCC Form 175
    69. Applicants should carefully review 47 CFR 1.2105, and must 
complete all items on the FCC Form 175. Instructions for completing the 
FCC Form 175 are in Attachment D of the Auction No. 58 Procedures 
Public Notice.
iii. Electronic Review of FCC Form 175
    70. The FCC Form 175 electronic review system may be used to locate 
and print applicants' FCC Form 175 information. There is no fee for 
accessing this system. See Attachment C of the Auction No. 58 
Procedures Public Notice for details on accessing the review system.
    71. 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.

C. Application Processing and Minor Corrections

    72. 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: (i) Those applications accepted for 
filing; (ii) those applications rejected; and (iii) those applications 
which have minor defects that may be corrected, and the deadline for 
filing such corrected applications.

D. Upfront Payments--Due December 29, 2004

    73. 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 p.m. ET on December 29, 2004. Failure 
to deliver the upfront payment by the December 29, 2004, deadline will 
result in dismissal of the application and disqualification from 
participation in the auction.
i. Making Auction Payments by Wire Transfer
    74. Wire transfer payments must be received by 6 p.m. ET on 
December 29, 2004. 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.
    75. Applicants must fax a completed FCC Form 159 (Revised 2/03) 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. 58.'' In order to meet the Commission's upfront 
payment deadline, an applicant's payment must be credited to the 
Commission's account by the deadline. Applicants are responsible for 
obtaining confirmation from their financial institution that Mellon 
Bank has timely received their upfront payment and deposited it in the 
proper account.
ii. Amount of Upfront Payment
    76. In the Part 1 Order, 62 FR 13540 (March 21, 1997), 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 50 
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 Sec.  1.2110 of the Commission's 
rules (as amended in the Part 1 Fifth Report and Order).
    77. The amount of the upfront payment will determine the number of 
bidding units on which a bidder may place bids. In order to bid on a 
license, otherwise qualified bidders that 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 applicant's 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.
    78. For Auction No. 58 the Commission adopts upfront payments on a 
license-by-license basis using a formula based on bandwidth and license 
area population: $0.05 * MHz * License Area Population.
    79. The specific upfront payments and bidding units for each 
license are set forth in Attachment A of the Auction No. 58 Procedures 
Public Notice.
    80. 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. Applicants should check their calculations carefully, as there 
is no provision for increasing a bidder's maximum eligibility after the 
upfront payment deadline.
    81. 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.
iii. Applicant's Wire Transfer Information for Purposes of Refunds of 
Upfront Payments
    82. The Commission will use wire transfers for all Auction No. 58 
refunds. To ensure that refunds of upfront payments are processed in an 
expeditious manner, the Commission is requesting that all pertinent 
information as listed be supplied to the FCC. Applicants can provide 
the information electronically during the initial short-form filing 
window after the form has

[[Page 62892]]

been submitted. Wire Transfer Instructions can also be manually faxed 
to the FCC, Financial Operations Center, Auctions Accounting Group, 
ATTN: Gail Glasser, at (202) 418-2843 by December 29, 2004. 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.

E. Auction Registration

    83. 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.
    84. 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) and the other 
containing the SecurID cards, both of which are required to place bids. 
These mailings will be sent only to the contact person at the contact 
address listed in the FCC Form 175.
    85. Qualified bidders that do not receive both registration 
mailings will not be able to submit bids. Therefore, any qualified 
bidder that has not received both mailings by noon on Wednesday, 
January 5, 2005, should contact the Auctions Hotline at (717) 338-2888. 
Receipt of both registration mailings is critical to participating in 
the auction, and each qualified bidder is responsible for ensuring it 
has received all of the registration material.
    86. Qualified bidders should note that lost bidder identification 
numbers or SecurID cards can be replaced only by appearing in person at 
the FCC headquarters, located at 445 12th St., SW., Washington, DC 
20554. Only an authorized representative or certifying official, as 
designated on an applicant's 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. Remote Electronic Bidding

    87. The Commission will conduct this auction over the Internet, and 
telephonic bidding will be available as well. As a contingency plan, 
bidders may also dial in to the FCC Wide Area Network. Qualified 
bidders are permitted to bid telephonically or electronically. Each 
applicant should indicate its bidding preference--electronic or 
telephonic--on the FCC Form 175. In either case, each authorized bidder 
must have its own 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. 58. The 
telephonic bidding phone number will be supplied in the first overnight 
mailing, which also includes the confidential bidder identification 
number.

G. Mock Auction

    88. All qualified bidders will be eligible to participate in a mock 
auction on Friday, January 21, 2005. 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.

IV. Auction Event

    89. The first round of bidding for Auction No. 58 will begin on 
Wednesday, January 26, 2005. 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

i. Simultaneous Multiple Round Auction
    90. The Bureau will award all licenses in Auction No. 58 in a 
simultaneous multiple round auction. The Bureau concludes that it is 
operationally feasible and appropriate to auction the PCS licenses 
through a 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 
synergies that exist among licenses and is administratively efficient.
ii. Maximum Eligibility and Activity Rules
    91. The amount of the upfront payment submitted by a bidder would 
determine the initial (maximum) eligibility (as measured in bidding 
units) for each bidder.
    92. Note again that each license is assigned a specific number of 
bidding units equal to the upfront payment listed in Attachment A of 
the Auction No. 58 Procedures Public Notice 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 in a round. As there is no provision for increasing a 
bidder's eligibility after the upfront payment deadline, applicants are 
cautioned to calculate their upfront payments carefully. The total 
upfront payment does not affect the total dollar amount a bidder may 
bid on any given license.
    93. 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 late in the auction 
before participating.
    94. A bidder's 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 a bid in 
the current round (see ``Minimum Acceptable Bids and Bid Increments'' 
in section IV.B.iii). The minimum required activity is expressed as a 
percentage of the bidder's current 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 section IV.A.iii and ``Stage 
Transitions'' in section IV.A.iv), we adopt them for Auction No. 58.
iii. Auction Stages
    95. The Commission will conduct the auction in two stages and 
employ an activity rule. 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. Finally, in each round of Stage Two, a bidder desiring to 
maintain its current eligibility would be required to be active on at 
least 95 percent of its current bidding eligibility.
    96. The Bureau reserves the discretion to further alter the 
activity requirements

[[Page 62893]]

before and/or during the auction. We also note that the Bureau has 
other mechanisms by which it may influence the speed of an auction. 
When determining the bidding schedule, the Bureau takes into 
consideration the desirability of concluding the auction reasonably 
swiftly, and the Bureau also attempts to ensure that bidders have 
sufficient time for placing bids during rounds and for analysis between 
rounds. For Auction No. 58, the Bureau has already taken steps to 
adjust bid increments in a manner that should help speed the auction: 
the Bureau has proposed a maximum percentage increment of 0.3 (30%). 
This relatively high maximum percentage increment will allow licenses 
for which there is greater demand--i.e., those receiving many bids--to 
rise in price faster than if a lower maximum percentage increment were 
used. Additionally, the minimum opening bids adopted by the Bureau 
should help to avoid a protracted auction.
    97. The Commission adopts its proposals for the activity rules and 
stages. Listed are the activity levels for each stage of the auction. 
The Bureau 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 encompassing 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 bidder's 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 bidder's current activity 
(the sum of bidding units of the bidder's standing high bids and 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 95 percent of its current bidding eligibility. Failure to maintain 
the required activity level will result in a reduction in the bidder's 
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 bidder's current 
activity (the sum of bidding units of the bidder's standing high bids 
and bids during the current round) by twenty-nineteenths (20/19).
    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 
activity level by using the bidding system's bidding module.
    98. Because the foregoing procedures have proven successful in 
maintaining proper pace in previous auctions, we adopt them for Auction 
No. 58.
iv. Stage Transitions
    99. The auction will generally advance to the next stage (i.e., 
from Stage One to Stage Two) 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. 
The Bureau will retain the discretion to change stages unilaterally by 
announcement during the auction.
    100. Thus, 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. The Commission 
believes that these stage transition rules are appropriate for use in 
Auction No. 58.
v. Activity Rule Waivers and Reducing Eligibility
    101. Each bidder in the auction will be provided three activity 
rule waivers that may be used in any round during the course of the 
auction. Use of an activity rule waiver preserves the bidder's current 
bidding eligibility despite the bidder's activity in the current round 
being below the required level. An activity rule waiver applies to an 
entire round of bidding and not to a particular license.
    102. The FCC 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 bidder's activity level is below the 
minimum required unless: (i) There are no activity rule waivers 
available; or (ii) 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 the bidder from further 
bidding in the auction.
    103. 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 bidder's eligibility is permanently reduced to bring the 
bidder into compliance with the activity rules as described in 
``Auction Stages'' (see section IV.A.iii discussion). Once eligibility 
has been reduced, a bidder will not be permitted to regain its lost 
bidding eligibility.
    104. 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 
FCC Automated Auction System) during a round in which no bids are 
submitted, the auction will remain open and the bidder's eligibility 
will be preserved. However, an automatic waiver triggered during a 
round in which there are no new bids or withdrawals will not keep the 
auction open.

    Note: Once a proactive waiver is submitted during a round, that 
waiver cannot be unsubmitted.

vi. Auction Stopping Rules
    105. For Auction No. 58, the Bureau will employ a simultaneous 
stopping rule, and retain discretion to invoke a modified version of 
the stopping rule. The modified version of the stopping rule would 
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.
    106. In addition, the Bureau reserves 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. The Bureau may 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

[[Page 62894]]

likely that the auction will not close within a reasonable period of 
time.
vii. Auction Delay, Suspension, or Cancellation
    107. 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. 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

i. Round Structure
    108. The initial schedule of bidding rounds will be announced in 
the public notice listing the qualified bidders, which is released 
approximately 10 days before the start of the auction. Each bidding 
round is followed by the release of 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 qualified bidders 
public notice.
    109. 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.
ii. Reserve Price or Minimum Opening Bid
    110. In establishing minimum opening bids for Auction No. 58, the 
Bureau adopts the following license-by license formulas based on 
bandwidth and license area population.

Population >= 2,000,000: $0.50 * MHz * License Area Population.
Population >= 500,000: $0.25 * MHz * License Area Population.
Population < 500,000: $0.15 * MHz * License Area Population.

    111. The Bureau adopts the minimum opening bids proposed in the 
Auction No. 58 Comment Public Notice and the Auction No. 58 Revised 
Inventory Public Notice. By comparing the minimum opening bids proposed 
in Auction No. 58 only to those of Auction No. 35, commenters have not 
adequately substantiated their argument that the minimum opening bids 
are excessive. On average, for the licenses for spectrum that was 
available in Auction No. 35, the Auction No. 58 minimum opening bids 
are significantly lower than the net amount of winning bids from 
Auction No. 35.
    112. The minimum opening bids we adopt for Auction No. 58 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.
    113. The specific minimum opening bids for each license available 
in Auction No. 58 are set forth in Attachment A of the Auction No. 58 
Procedures Public Notice.
iii. Minimum Acceptable Bids and Bid Increments
    114. In Auction No. 58 we will use a smoothing methodology to 
calculate minimum acceptable bids. The smoothing methodology is 
designed to vary the increment for a given license between a maximum 
and minimum percentage based on the bidding activity on that license. 
This methodology allows the increments to be tailored to the activity 
on a license, decreasing the time it takes for licenses receiving many 
bids to reach their final prices. The formula used to calculate this 
increment is included as Attachment F of the Auction No. 58 Procedures 
Public Notice. We will initially set the weighting factor at 0.5, the 
minimum percentage increment at 0.1 (10%), and the maximum percentage 
increment at 0.3 (30%). Hence, at these initial settings, the 
percentage increment will fluctuate between 10% and 30% depending upon 
the number of bids for the license. The Bureau will retain the 
discretion to change the minimum acceptable bids and bid increments if 
circumstances so dictate.
    115. In each round, each eligible bidder will be able to place a 
bid on a particular license for which it applied in any of nine 
different amounts. The FCC Automated Auction System will list the nine 
bid amounts for each license.
    116. Once there is a standing high bid on a license, the FCC 
Automated Auction System will calculate a minimum acceptable bid for 
that license for the following round, as described in Attachment F of 
the Auction No. 58 Procedures Public Notice. The difference between the 
minimum acceptable bid and the standing high bid for each license will 
define the bid increment--i.e., bid increment = (minimum acceptable 
bid)-(standing high bid). 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.).
    117. At the start of the auction and until a bid has been placed on 
a license, the minimum acceptable bid for that license will be equal to 
its minimum opening bid. Corresponding additional bid amounts will be 
calculated using bid increments defined as the difference between the 
minimum opening bid times one plus the percentage increment, rounded as 
described in Attachment F of the Auction No. 58 Procedures Public 
Notice, and the minimum opening bid--i.e., bid increment = (minimum 
opening bid) (1 + percentage increment) {rounded{time} -(minimum 
opening bid). At the start of the auction and until a bid has been 
placed on a license, the nine acceptable bid amounts for each license 
consist of the minimum opening bid and additional amounts calculated 
using multiple bid increments (i.e., the second bid amount equals the 
minimum opening bid plus the bid increment, the third bid amount equals 
the minimum opening bid plus two times the bid increment, etc).
    118. 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.
    119. The Bureau retains the discretion to change the minimum 
acceptable bids and bid increments and the methodology for determining 
the minimum acceptable bids and bid increments if it determines that 
circumstances so dictate. The Bureau will do so by announcement in the 
FCC Automated Auction System. The Bureau

[[Page 62895]]

may also use its discretion to adjust the minimum bid increment without 
prior notice if circumstances warrant.
iv. High Bids
    120. At the end of each bidding round, the high bids will be 
determined based on the highest gross bid amount received for each 
license. A high bid from a previous round is sometimes referred to as a 
``standing high bid.'' A ``standing high bid'' will remain the high bid 
until there is a higher bid on the same license at the close of a 
subsequent round. Bidders are reminded that standing high bids are 
counted as activity for purposes of the activity rule.
    121. In the event of identical high bids on a license in a given 
round (i.e., tied bids) a Sybase[reg] SQL pseudo-random number 
generator will be used to assign a random number to each bid. The 
remaining bidders, as well as the high bidder, will be able to submit a 
higher bid in a subsequent round. If no bidder submits a higher bid in 
a subsequent round, the high bid from the previous round will win the 
license. If any bids are received on the license in a subsequent round, 
the high bid will once again be determined on the highest gross bid 
amount received for the license.
v. Bidding
    122. During a 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 round. If a bidder 
submits multiple bids for a single license in the same round, the 
system takes the last bid entered as that bidder's 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 bidder's activity at the close of the round.
    123. Please note that all bidding will take place remotely either 
through the FCC 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).
    124. A bidder's ability to bid on specific licenses in the first 
round of the auction is determined by three factors: (i) The licenses 
applied for on FCC Form 175 and (ii) the eligibility restrictions on 
those licenses, if any, and (iii) 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.
    125. In order to access the bidding function of the FCC Automated 
Auction System, bidders must be logged in during the bidding round 
using the bidder identification number provided in the registration 
materials, and the password generated by the SecurID card. Bidders are 
strongly encouraged to print bid confirmations for each round after 
they have completed all of their activity for that round.
    126. 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 
FCC 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 bid amounts. The FCC Automated Auction 
System also includes an import function that allows bidders to upload 
text files containing bid information.
    127. Finally, bidders are cautioned to select their bid amounts 
carefully because, as explained in the following section, bidders that 
withdraw a standing high bid from a previous round, even if the bid was 
mistakenly or erroneously made, are subject to bid withdrawal payments.
vi. Bid Removal and Bid Withdrawal
    128. For Auction No. 58 the Commission adopts bid removal and bid 
withdrawal procedures. With respect to bid withdrawals, the Commission 
will limit each bidder to withdrawals in no more than two rounds during 
the course of the auction. The two rounds in which withdrawals are used 
would be at the bidder's discretion.
    129. 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 bidder's activity for the round in which 
it is removed, i.e., a bid that is removed does not count toward 
bidding activity. These procedures will enhance bidder flexibility 
during the auction.
    130. 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 in the FCC Automated 
Auction System (assuming that the bidder has not reached its withdrawal 
limit). 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 CFR 1.2104(g).

    Note: Once a withdrawal is submitted during a round, that 
withdrawal cannot be unsubmitted.

    131. The Bureau will limit the number of rounds in which bidders 
may place withdrawals to two rounds. These rounds will be at the 
bidder's 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 be subject to the bid withdrawal payments specified in 47 
CFR 1.2104(g). Bidders should note that abuse of the Commission's bid 
withdrawal procedures could result in the denial of the ability to bid 
on a market.
    132. 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 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).
    133. 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. The Part 1 Fifth Report and Order provides 
specific examples showing application of the bid withdrawal payment 
rule.

[[Page 62896]]

vii. Round Results
    134. Bids placed during a round will not be made public 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 acceptable bids, and bidder eligibility status 
(bidding eligibility and activity rule waivers), and post the reports 
for public access. Reports reflecting bidders' identities for Auction 
No. 58 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.
viii. Auction Announcements
    135. 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 FCC Automated 
Auction System.

V. Post-Auction Procedures

A. Down Payments and Withdrawn Bid Payments

    136. After bidding has ended, the Commission will issue a public 
notice declaring the auction closed and identifying winning bidders, 
down payments, final payments, and any withdrawn bid payments due.
    137. 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 Commission for Auction No. 58 to 20 percent of the net amount 
of its winning bids (gross bids less any applicable small business or 
very small business bidding credits). In addition, by the same 
deadline, all bidders must pay any bid withdrawal payments due under 47 
CFR 1.2104(g), as discussed in ``Bid Removal and Bid Withdrawal,'' 
section IV.B.vi. (Upfront payments are applied first to satisfy any 
withdrawn bid liability, before being applied toward down payments.)

B. Final Payments

    138. Each winning bidder will be required to submit the balance of 
the net amount of its winning bids within ten business days after the 
deadline for submitting down payments.

C. Long-Form Application (FCC Form 601)

    139. 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. 58.

D. Ownership Disclosure Information Report (FCC Form 602)

    140. At the time it submits its long-form application (FCC Form 
601), each winning bidder also must comply with the ownership reporting 
requirements as set forth in 47 CFR 1.913, 1.919, and 1.2112.

E. Tribal Land Bidding Credit

    141. 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 CFR 
1.2107 and 1.2110(f). A tribal land bidding credit is in addition, and 
separate from, any other bidding credit for which a winning bidder may 
qualifiy.

F. Default and Disqualification

    142. 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 CFR 
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 its 
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.

G. Refund of Remaining Upfront Payment Balance

    143. All applicants that submit upfront payments but are not 
winning bidders for a license in Auction No. 58 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 the 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.
    144. Bidders that drop out of the auction completely may be 
eligible for a refund of their upfront payments before the close of the 
auction. 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, 445 12th 
Street, SW., Room 1-C864, Washington, DC 20554.
    145. 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 Gail 
Glasser at (202) 418-0578.


Federal Communications Commission.
Gary Michaels,
Deputy Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. 04-24118 Filed 10-27-04; 8:45 am]
BILLING CODE 6712-01-P


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