Federal Register / Vol. 75, No. 230 / Wednesday, December 1, 2010 / Notices 74719 

Needs and Uses: The Commission 

will submit this expiring information 

collection (IC) to the OMB during this 

comment period. There is no change in 

the reporting, recordkeeping and/or 

third party disclosure requirements. 

There are no changes to the 

Commission’s previous burden 

estimates. 

The Commission is seeking a revision 

for approval from the Office of 

Management and Budget (OMB) because 

the Commission will be requesting a 

certification and/or showing of 

compliance of narrowband equivalency 

as an attachment and correcting chief 

financial officers on Schedule B. 

OMB Control Number: 3060–1058. 

Title: FCC Application or Notification 

for Spectrum Leasing Arrangement or 

Private Commons Arrangement: 

Wireless Telecommunications Bureau 

and Public Safety and Homeland 

Security Bureau. 

Form No.: FCC Form 608. 

Type of Review: Revision of a 

currently approved collection. 

Respondents: Business or other forprofit, not-for-profit institutions, and 

state, local or tribal government. 

Number of Respondents: 991 

respondents; 991 responses. 

Estimated Time per Response: 5 

hours. 

Frequency of Response: On occasion 

reporting requirement and 

recordkeeping requirement. 

Obligation to Respond: Required to 

obtain or retain benefits. Statutory 

authority for this information collection 

is contained in 47 U.S.C. 151, 154(i), 

154(j), 155, 158, 161, 301, 303(r), 308, 

309, 310, 332, and 503. 

Total Annual Burden: 4,955 hours. 

Total Annual Cost: $910,500. 

Privacy Act Impact Assessment: N/A. 

Nature and Extent of Confidentiality: 

Respondents may request materials or 

information submitted to the 

Commission be withheld from public 

inspection under 47 CFR 0.459 of the 

Commission’s rules. 

Needs and Uses: The Commission 

will submit this expiring information 

collection (IC) to the OMB during this 

comment period. There is no change in 

the reporting and/or recordkeeping 

requirements. The Commission is 

reporting a 3,200 hourly decrease in 

burden and a $423,606 decrease in 

annual costs. The decrease adjustments 

are due to fewer respondents than the 

last submission to the OMB and the 

estimates have been recalculated. 

The Commission is seeking OMB 

approval for a revision for changes in 

the wording on the FCC Form 608 data 

elements, adding a question inquiring if 

filing is the lead application on the 

Main Form, and changing language in 

the instructions. 

The required notifications and 

applications will provide the 

Commission with useful information 

about spectrum usage and help to 

ensure that licensees and lessees are 

complying with Commission 

interference and non-interference 

related policies and rules. Similar 

information and verification 

requirements have been used in the past 

for licensees operating under 

authorizations, and such requirements 

will serve to minimize interference, 

verify that lessees are legally and 

technically qualified to hold licenses, 

and ensure compliance with 

Commission rules. 

Federal Communications Commission. 

Marlene H. Dortch, 

Secretary. 

[FR Doc. 2010–30183 Filed 11–30–10; 8:45 am] 

BILLING CODE 6712–01–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

[AU Docket No. 10–147; DA 10–2008] 

Auction of VHF Commercial Television 

Station Construction Permits 

Scheduled for February 15, 2011; 

Notice and Filing Requirements, 

Minimum Opening Bids, Upfront 

Payments, and Other Procedures for 

Auction 90 

AGENCY: Federal Communications 

Commission. 

ACTION: Notice. 

SUMMARY: This document announces the 

procedures and minimum opening bids 

for the upcoming auction of certain VHF 

commercial TV construction permits 

(Auction 90). This document is 

intended to familiarize prospective 

bidders with the procedures and 

minimum opening bids for the auction. 

DATES: Applications to participate in 

Auction 90 must be filed prior to 6 p.m. 

Eastern Time (ET) on December 15, 

2010. Bidding for construction permits 

in Auction 90 is scheduled to begin on 

February 15, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Wireless Telecommunications Bureau, 

Auctions and Spectrum Access Division: 

For legal questions: Howard Davenport 

or Lynne Milne at (202) 418–0660. For 

general auction questions: Jeff Crooks at 

(202) 418–0660 or Barbara Sibert at 

(717) 338–2829. Media Bureau, Audio 

Division: For licensing information and 

service rule questions: Shaun Maher or 

Adrienne Denysyk at (202) 418–2700. 

To request materials in accessible 

formats (Braille, large print, electronic 

files or audio format) for people with 

disabilities, send an e-mail to 

fcc504@fcc.gov or call the Consumer 

and Governmental Affairs Bureau at 

(202) 418–0530 or (202) 418–0432 

(TTY). 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Auction 90 Procedures 

Public Notice, which was released on 

November 1, 2010. The complete text of 

the Auction 90 Procedures Public 

Notice, including attachments, as well 

as related Commission documents, are 

available for public inspection and 

copying from 8 a.m. to 4:30 p.m. ET 

Monday through Thursday and from 

8 a.m. to 11:30 a.m. ET on Friday in the 

FCC Reference Information Center, 445 

12th Street, SW., Room CY–A257, 

Washington, DC 20554. The Auction 90 

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 

Web site: http://www.BCPIWEB.com, 

using document number DA 10–2008 

for the Auction 90 Procedures Public 

Notice. The Auction 90 Procedures 

Public Notice and related documents are 

also available on the Internet at the 

Commission’s Web site: http:// 

wireless.fcc.gov/auctions/90/. 

I. General Information 

A. Introduction 

1. The Wireless Telecommunications 

Bureau and Media Bureau (collectively, 

the Bureaus) announce the procedures 

and minimum opening bid amounts for 

the upcoming auction of two digital 

very high frequency (VHF) commercial 

television station construction permits. 

This auction, which is designated as 

Auction 90, is scheduled to commence 

on February 15, 2011. On September 8, 

2010, the Bureaus released a public 

notice seeking comment on competitive 

bidding procedures to be used in 

Auction 90. Two parties submitted 

comments and reply comments in 

response to the Auction 90 Comment 

Public Notice 75 FR 59747, September 

23, 2010. 

i. Background 

2. The Media Bureau recently 

amended the Post-Transition Table of 

DTV Allotments by allotting digital VHF 

commercial television channels in New 

Jersey and Delaware. The first allotment 

is channel 4 in Atlantic City, New Jersey 

and the second allotment is channel 5 

in Seaford, Delaware. 


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ii. Construction Permits in Auction 90 

3. Auction 90 will offer construction 

permits for two VHF commercial 

television stations. The Commission’s 

competitive bidding rules will be used 

to select among mutually exclusive 

applications for these construction 

permits in Auction 90. When two or 

more short-form applications (FCC 

Forms 175) are accepted for filing for 

the same construction permit in Auction 

90, mutual exclusivity exists for auction 

purposes. Once mutual exclusivity 

exists for auction purposes, even if only 

one applicant for a particular 

construction permit submits an upfront 

payment, that applicant is required to 

submit a bid in order to obtain the 

construction permit. Any applicant that 

submits a short-form application but 

fails to timely submit an upfront 

payment will retain its status as an 

applicant in Auction 90 and will remain 

subject to the Commission’s rules 

concerning prohibited communications, 

but, having purchased no bidding 

eligibility, will not be eligible to bid. 

4. A commenter asked that the 

Commission to amend the PostTransition Table of DTV Allotments as 

set-out in 47 CFR 73.622(i) in order to 

allow the eventual winner of Auction 90 

to license the VHF television station to 

any community in Delaware or New 

Jersey provided that such an allotment 

would not cause harmful interference to 

other VHF services. The proposal is 

beyond the scope of this proceeding, 

which is confined to establishing 

competitive bidding procedures for this 

auction of DTV construction permits. 

This proceeding is not an appropriate 

forum in which to challenge 

determinations made in the DTV 

allocation rulemaking proceeding. 

Accordingly, the Bureaus are unable to 

adopt this proposal. 

B. Rules and Disclaimers 

i. Relevant Authority 

5. Prospective applicants must 

familiarize themselves thoroughly with 

the Commission’s general competitive 

bidding rules, including recent 

amendments and clarifications, as well 

as Commission decisions in proceedings 

regarding competitive bidding 

procedures, application requirements, 

and obligations of Commission 

licensees. Potential applicants should 

also familiarize themselves with the 

Commission’s rules relating to the 

Television Broadcast Service contained 

in 47 CFR Part 73. 

6. 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 its 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. Prohibited Communications and 

Compliance With Antitrust Laws 

7. To ensure the competitiveness of 

the auction process, 47 CFR 1.2105(c) 

prohibits auction applicants for 

construction permits in any of the same 

geographic license areas from 

communicating with each other about 

bids, bidding strategies, or settlements 

unless such applicants have identified 

each other on their short-form 

applications (FCC Form 175) as parties 

with whom they have entered into 

agreements pursuant to 47 CFR 

1.2105(a)(2)(viii). 

a. Entities Subject to Section 1.2105 

8. 47 CFR 1.2105(c)’s prohibition on 

certain communications will apply to 

any applicants that submit short-form 

applications seeking to participate in a 

Commission auction for construction 

permits in the same geographic license 

area. Thus, unless they have identified 

each other on their short-form 

applications as parties with whom they 

have entered into agreements under 47 

CFR 1.2105(a)(2)(viii), applicants for 

any of the same geographic license areas 

must affirmatively avoid all 

communications with or disclosures to 

each other that affect or have the 

potential to affect bids or bidding 

strategy. In some instances, this 

prohibition extends to communications 

regarding the post-auction market 

structure. This prohibition applies to all 

applicants regardless of whether such 

applicants become qualified bidders or 

actually bid. The ‘‘geographic license 

area’’ is the market designation of the 

particular service. For the Television 

Broadcast Service, the market 

designation is the particular vacant DTV 

allotment (e.g., Atlantic City, NJ, 

Channel DTV 4, MM–DTV012–4). 

9. Applicants are also reminded that, 

for purposes of this prohibition on 

certain communications, 47 CFR 

1.2105(c)(7)(i) defines applicant as 

including all officers and directors of 

the entity submitting a short-form 

application to participate in the auction, 

all controlling interests of that entity, 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. For 

example, where an individual served as 

an officer for two or more applicants, 

the Bureaus have found that the bids 

and bidding strategies of one applicant 

are necessarily conveyed to the other 

applicant, and, absent a disclosed 

bidding agreement, an apparent 

violation of 47 CFR 1.2105(c) occurs. 

10. Individuals and entities subject to 

47 CFR 1.2105(c) should take special 

care in circumstances where their 

employees may receive information 

directly or indirectly from a competing 

applicant relating to any competing 

applicant’s bids or bidding strategies. 

The Bureaus have not addressed 

situations where non-principals (i.e., 

those who are not officers or directors 

and thus not considered to be the 

applicant) receive information regarding 

a competing applicant’s bids or bidding 

strategies and whether that information 

might be deemed to necessarily convey 

to the applicant. An exception to the 

prohibition on certain communications 

allows non-controlling interest holders 

to obtain interests in more than one 

competing applicant without violating 

47 CFR 1.2105(c) provided specified 

conditions are met (including a 

certification that no prohibited 

communications have occurred or will 

occur), but that exception does not 

extend to controlling interest holders. 

11. Moreover, Auction 90 applicants 

are encouraged not to use the same 

individual as an authorized bidder. A 

violation of 47 CFR 1.2105(c) 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 such 

applicants. Also, if the authorized 

bidders are different individuals 

employed by the same organization 

(e.g., law firm or engineering firm or 

consulting firm), a violation similarly 

could occur. 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 47 CFR 

1.2105(c). 

b. Prohibition Applies Until Down 

Payment Deadline 

12. The 47 CFR 1.2105(c) prohibition 

on certain communications begins at the 

short-form application filing deadline 

and ends at the down payment deadline 

after the auction, which will be 

announced in a future public notice. 

c. Prohibited Communications 

13. Applicants should note that they 

must not communicate directly or 


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indirectly about bids or bidding strategy 

to other applicants in this auction. 47 

CFR 1.2105(c) prohibits not only a 

communication about an applicant’s 

own bids or bidding strategy, but also a 

communication of another applicant’s 

bids or bidding strategy. While 47 CFR 

1.2105(c) does not prohibit non-auctionrelated business negotiations among 

auction applicants, applicants must 

remain vigilant so as not to 

communicate directly or indirectly 

information that affects, or could affect, 

bids or bidding strategy, or the 

negotiation of settlement agreements. 

14. The Commission remains vigilant 

about prohibited communications 

taking place in other situations. For 

example, the Commission has warned 

that prohibited communications 

concerning bids and bidding strategies 

may include communications regarding 

capital calls or requests for additional 

funds in support of bids or bidding 

strategies to the extent such 

communications convey information 

concerning the bids and bidding 

strategies directly or indirectly. 

Applicants are hereby placed on notice 

that public disclosure of information 

relating to bids, or bidding strategies, or 

to post auction market structures may 

violate 47 CFR 1.2105(c), including an 

applicant’s use of the Commission’s 

bidding system or a statement to the 

press, financial analysts or others. 

d. Disclosure of Bidding Agreements 

and Arrangements 

15. The Commission’s rules do not 

prohibit applicants from entering into 

otherwise lawful bidding agreements 

before filing their short-form 

applications, as long as they disclose the 

existence of the agreement(s) in their 

short-form applications. If parties agree 

in principle on all material terms prior 

to the short-form application filing 

deadline, each party to the agreement 

must identify the other party or parties 

to the agreement on its short-form 

application under 47 CFR 1.2105(c), 

even if the agreement has not been 

reduced to writing. If the parties have 

not agreed in principle by the shortform filing deadline, they should not 

include the names of parties to 

discussions on their applications, and 

they may not continue negotiations, 

discussions or communications with 

any other applicants after the short-form 

application filing deadline. 

e. Section 1.2105(c) Certification 

16. By electronically submitting a 

short-form application, each applicant 

in Auction 90 certifies its compliance 

with 47 CFR 1.2105(c) and 73.5002. 

However, the Bureaus caution that 

merely filing a certifying statement as 

part of an application will not outweigh 

specific evidence that a prohibited 

communication has occurred, nor will it 

preclude the initiation of an 

investigation when warranted. The 

Commission has stated that it intends to 

scrutinize carefully any instances in 

which bidding patterns suggest that 

collusion may be occurring. Any 

applicant found to have violated 47 CFR 

1.2105(c) may be subject to sanctions. 

f. Duty to Report Prohibited 

Communications: Reporting Procedure 

17. 47 CFR 1.2105(c)(6) provides that 

any applicant that makes or receives a 

communication that appears to violate 

47 CFR 1.2105(c) must report such 

communication in writing to the 

Commission immediately, and in no 

case later than five business days after 

the communication occurs. The 

Commission has clarified that each 

applicant’s obligation to report any such 

communication continues beyond the 

five-day period after the communication 

is made, even if the report is not made 

within the five-day period. 

18. In addition, 47 CFR 1.65 requires 

an applicant to maintain the accuracy 

and completeness of information 

furnished in its pending application and 

to notify the Commission of any 

substantial change that may be of 

decisional significance to that 

application. Thus, 47 CFR 1.65 requires 

an auction applicant to notify the 

Commission of any substantial change 

to the information or certifications 

included in its pending short-form 

application. An applicant is therefore 

required by 47 CFR 1.65 to report to the 

Commission any communication the 

applicant has made to or received from 

another applicant after the short-form 

application filing deadline that affects 

or has the potential to affect bids or 

bidding strategy, unless such 

communication is made to or received 

from a party to an agreement identified 

under 47 CFR 1.2105(a)(2)(viii). 

19. 47 CFR 1.65(a) and 1.2105(c) 

require applicants in competitive 

bidding proceedings to furnish 

additional or corrected information 

within five days of a significant 

occurrence, or to amend their short-form 

applications no more than five days 

after the applicant becomes aware of the 

need for amendment. These reporting 

requirements facilitate the auction 

process by making the information 

available promptly to all participants 

and enabling the Bureaus to act 

expeditiously on those changes when 

such action is necessary. 

20. A party reporting any 

communication pursuant to 47 CFR 

1.65, 1.2105(a)(2), or 1.2105(c)(6) must 

take care to ensure that any reports of 

prohibited communications do not 

themselves give rise to a violation of 47 

CFR 1.2105(c). For example, a party’s 

report of a prohibited communication 

could violate the rule by communicating 

prohibited information to other 

applicants through the use of 

Commission filing procedures that 

would allow such materials to be made 

available for public inspection. 

21. 47 CFR 1.2105(c) requires parties 

to file only a single report and to file 

that report with Commission personnel 

expressly charged with administering 

the Commission auctions. This 

requirement is designed to minimize the 

risk of inadvertent dissemination of 

information in such reports. Pursuant to 

the amended rule, any reports required 

by 47 CFR 1.2105(c) must be filed 

consistent with the instructions set forth 

in the Auction 90 Procedures Public 

Notice. For Auction 90, such reports 

should be filed with the Chief of the 

Auctions and Spectrum Access 

Division, Wireless Telecommunications 

Bureau, by the most expeditious means 

available. Specifically, any such report 

should be submitted by e-mail to 

auction90@fcc.gov or delivered to the 

following address: Margaret W. Wiener, 

Chief, Auctions and Spectrum Access 

Division, Wireless Telecommunications 

Bureau, Federal Communications 

Commission, 445 12th Street, SW., 

Room 6423, Washington, DC 20554. 

22. A party seeking to report such 

prohibited communications should 

consider submitting its report with a 

request that the report or portions of the 

submission be withheld from public 

inspection. Such parties also are 

encouraged to coordinate with the 

Auctions and Spectrum Access Division 

staff if they have any questions about 

the procedures for submitting such 

reports. Applicants must be aware that 

failure to comply with the 

Commission’s rules can result in 

enforcement action. 

g. Winning Bidders Must Disclose 

Terms of Agreements 

23. Applicants that are winning 

bidders will be required to disclose in 

their long-form applications the specific 

terms, conditions, and parties involved 

in any bidding consortia, joint venture, 

partnership; or agreement, 

understanding, or other arrangement 

entered into relating to the competitive 

bidding process. 


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h. Additional Information Concerning 

Rule Prohibiting Certain 

Communications 

24. A summary listing of documents 

issued by the Commission and the 

Bureaus addressing the application of 

47 CFR 1.2105(c) may be found in 

Attachment D of the Auction 90 

Procedures Public Notice. 

i. Antitrust Laws 

25. Applicants are also reminded that, 

regardless of compliance with the 

Commission’s rules, they remain subject 

to the antitrust laws, which are designed 

to prevent anticompetitive behavior in 

the marketplace. Compliance with the 

disclosure requirements of 47 CFR 

1.2105(c) will not insulate a party from 

enforcement of the antitrust laws. For 

instance, a violation of the antitrust 

laws could arise out of actions taking 

place well before any party submitted a 

short-form application. If an applicant is 

found to have violated the antitrust laws 

or the Commission’s rules in connection 

with its participation in the competitive 

bidding process, it may be subject to 

forfeiture of its upfront payment, down 

payment or full bid amount and may be 

prohibited from participating in future 

auctions, among other sanctions. See 47 

CFR 1.2109(d). 

iii. Due Diligence 

26. Potential applicants are reminded 

that they are solely responsible for 

investigating and evaluating all 

technical and marketplace factors that 

may have a bearing on the value of the 

construction permits for broadcast 

facilities they are seeking in this 

auction. Bidders are responsible for 

assuring themselves that, if they win a 

construction permit, they will be able to 

build and operate facilities in 

accordance with the Commission’s 

rules. 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 

construction permittee in a broadcast 

service, subject to certain conditions 

and regulations. An FCC auction does 

not constitute an endorsement by the 

FCC of any particular service, 

technology, or product, nor does an FCC 

construction permit or license constitute 

a guarantee of business success. 

Applicants should perform their due 

diligence research and analysis before 

proceeding, as they would with any new 

business venture. Applicants are 

strongly encouraged to conduct their 

own research prior to Auction 90 in 

order to determine the existence of any 

pending administrative or judicial 

proceedings, including pending 

allocations rulemaking proceedings that 

might affect their decisions regarding 

participation in the auction. Participants 

in Auction 90 are strongly encouraged 

to continue such research throughout 

the auction. Applicants should perform 

due diligence to identify and consider 

all proceedings that may affect the 

construction permits being auctioned 

and that could have an impact on the 

availability of spectrum for Auction 90. 

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 the construction permits 

available in Auction 90. In addition, 

potential applicants should review the 

Auction 90 Procedures Public Notice for 

additional guidance as they plan and 

undertake their due diligence efforts. 

iv. Use of Integrated Spectrum Auction 

System 

27. The Commission will make 

available a browser-based bidding 

system to allow bidders to participate in 

Auction 90 over the Internet using the 

Commission’s Integrated Spectrum 

Auction System (ISAS or FCC Auction 

System). The Commission makes no 

warranty whatsoever with respect to the 

FCC Auction System. In no event shall 

the Commission, or any of its officers, 

employees, or agents, be liable for any 

damages whatsoever (including, but not 

limited to, loss of business profits, 

business interruption, loss of business 

information, or any other loss) arising 

out of or relating to the existence, 

furnishing, functioning, or use of the 

FCC Auction System that is accessible 

to qualified bidders in connection with 

this auction. Moreover, no obligation or 

liability will arise out of the 

Commission’s technical, programming, 

or other advice or service provided in 

connection with the FCC Auction 

System. 

v. Environmental Review Requirements 

28. Permittees or licensees must 

comply with the Commission’s rules 

regarding implementation of the 

National Environmental Policy Act and 

other Federal environmental statutes. 

The construction of a broadcast facility 

is a Federal action and the permittee or 

licensee must comply with the 

Commission’s environmental rules for 

each such facility. 

C. Auction Specifics 

i. Auction Start Date 

29. Bidding in Auction 90 will begin 

on Tuesday, February 15, 2011, as 

announced in the Auction 90 Comment 

Public Notice. 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 construction 

permits will be conducted on each 

business day until bidding has stopped 

on all construction permits. 

ii. Bidding Methodology 

30. The bidding methodology for 

Auction 90 will be simultaneous 

multiple round bidding. The 

Commission will conduct this auction 

over the Internet using the FCC Auction 

System, and telephonic bidding will be 

available as well. Qualified bidders are 

permitted to bid electronically via the 

Internet or by telephone. All telephone 

calls are recorded. 

iii. Pre-Auction Dates and Deadlines 

31. The following dates and deadlines 

apply: 

Auction Tutorial Available (via 

Internet)—December 8, 2010 

Short-Form Application (FCC Form 175) 

Filing Window Opens—December 8, 

2010; 12 noon ET 

Short-Form Application (FCC Form 175) 

Filing Window Deadline—December 

15, 2010; prior to 6 p.m. ET 

Upfront Payments (via wire transfer)— 

January 21, 2011; 6 p.m. ET 

Mock Auction—February 11, 2011 

Auction Begins—February 15, 2011 

II. Short-Form Application (FCC Form 

175) Requirements 

A. General Information Regarding 

Short-Form Applications 

32. An application to participate in an 

FCC auction, referred to as a short-form 

application or FCC Form 175, provides 

information used in determining 

whether the applicant is legally, 

technically, and financially qualified to 

participate in Commission auctions for 

licenses or permits. The short-form 

application is the first part of the 

Commission’s two-phased auction 

application process. In the first phase of 

this process, parties desiring to 

participate in the auction must file 

streamlined, short-form applications in 

which they certify under penalty of 

perjury as to their qualifications. Each 

applicant must take seriously its duties 

and responsibilities and carefully 

determine before filing an application 

that the applicant has the legal, 

technical and financial resources to 


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participate in Auction 90, as well as 

construct and operate a broadcast 

station if the auction applicant becomes 

a licensee as a result of its participation 

in this auction. Eligibility to participate 

in bidding is based on the applicants’ 

short-form applications and 

certifications as well as their upfront 

payments, as explained below. In the 

second phase of the process, winning 

bidders must file more comprehensive 

long-form applications. 

33. Entities and individuals seeking 

construction permits available in 

Auction 90 must file a short-form 

application electronically via the FCC 

Auction System prior to 6 p.m. ET on 

December 15, 2010, following the 

procedures prescribed in Attachment B 

to the Auction 90 Procedures Public 

Notice. If an applicant claims eligibility 

for a bidding credit, the information 

provided in its FCC Form 175 will be 

used in determining whether the 

applicant is eligible for the claimed 

bidding credit. Applicants filing a shortform application are subject to the 

Commission’s rules prohibiting certain 

communications beginning on the 

deadline for filing, as described above. 

34. Applicants bear full responsibility 

for submitting accurate, complete and 

timely short-form applications. All 

applicants must certify on their shortform applications under penalty of 

perjury that they are legally, technically, 

financially, and otherwise qualified to 

hold a license. Applicants should read 

the instructions set forth in Attachment 

B to the Auction 90 Procedures Public 

Notice carefully and should consult the 

Commission’s rules to ensure that all 

the information that is required under 

the Commission’s rules is included with 

their short-form applications. 

35. An entity may not submit more 

than one short-form application for a 

single auction. If a party submits 

multiple short-form applications, only 

one application may be accepted for 

filing. 

36. Entities seeking to apply for a 

noncommercial educational station in 

the Auction 90 allotments should be 

aware that the Commission policy 

requires that an application for a 

noncommercial educational station that 

is mutually exclusive with any 

application for a commercial station 

will be returned as unacceptable for 

filing. Applications specifying the same 

television station construction permit 

are considered mutually exclusive. 

37. Applicants also should note that 

submission of a short-form application 

(and any amendments thereto) 

constitutes a representation by the 

certifying official that he or she is an 

authorized representative of the 

applicant, that he or she has read the 

form’s instructions and certifications, 

and that the contents of the application, 

its certifications, and any attachments 

are true and correct. Applicants are not 

permitted to make major modifications 

to their applications; such 

impermissible changes include a change 

of the certifying official to the 

application. 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. 

B. Permit Selection 

38. An applicant must select the 

construction permits on which it wants 

to bid from the Eligible Permits list on 

its short-form application. Applicants 

will not be able to change their 

construction permit selections after the 

short-form application filing deadline. 

Applicants interested in participating in 

Auction 90 must have selected 

construction permit(s) available in this 

auction by the short-form application 

filing deadline. Applicants must review 

and verify their construction permit 

selections before the deadline for 

submitting short-form applications. The 

FCC Auction System will not accept 

bids from an applicant on construction 

permits that the applicant has not 

selected on its short-form application. 

C. New Entrant Bidding Credit 

39. To promote the objectives of 

section 309(j) and further its longstanding commitment to the 

diversification of broadcast facility 

ownership, the Commission adopted a 

tiered New Entrant Bidding Credit for 

broadcast auction applicants with no, or 

very few, other media interests. 

40. The interests of the applicant and 

of any individuals or entities with an 

attributable interest in the applicant, in 

other media of mass communications 

are considered when determining an 

applicant’s eligibility for the New 

Entrant Bidding Credit. In Auction 90, 

the bidder’s attributable interests are 

determined as of the short-form 

application filing deadline. Thus, the 

applicant’s maximum new entrant 

bidding credit eligibility will be 

determined as of the short-form 

application filing deadline. Applicants 

intending to divest a media interest or 

make any other ownership changes, 

such as resignation of positional 

interests, in order to avoid attribution 

for purposes of qualifying for the New 

Entrant Bidding Credit must have 

consummated such divestment 

transactions or have completed such 

ownership changes by no later than the 

short-form filing deadline. Prospective 

bidders are reminded, however, that 

events occurring after the short-form 

filing deadline, such as the acquisition 

of attributable interests in media of mass 

communications, may cause 

diminishment or loss of the bidding 

credit, and must be reported 

immediately. 

41. Under traditional broadcast 

attribution rules, those entities or 

individuals with an attributable interest 

in a bidder include: (1) All officers and 

directors of a corporate bidder; (2) Any 

owner of 5 percent or more of the voting 

stock of a corporate bidder; (3) All 

partners and limited partners of a 

partnership bidder, unless the limited 

partners are sufficiently insulated; and 

(4) All members of a limited liability 

company, unless sufficiently insulated. 

42. In cases where an applicant’s 

spouse or close family member holds 

other media interests, such interests are 

not automatically attributable to the 

bidder. The Commission decides 

attribution issues in this context based 

on certain factors traditionally 

considered relevant. Applicants should 

note that the mass media attribution 

rules were revised in 1999. 

43. Bidders are also reminded that, by 

the New Entrant Bidding Credit 

Reconsideration Order, the Commission 

further refined the eligibility standards 

for the New Entrant Bidding Credit, 

judging it appropriate to attribute the 

media interests held by very substantial 

investors in, or creditors of, an applicant 

claiming new entrant status. 

Specifically, the attributable mass media 

interests held by an individual or entity 

with an equity and/or debt interest in an 

applicant shall be attributed to that 

bidder for purposes of determining its 

eligibility for the New Entrant Bidding 

Credit, if the equity and debt interests, 

in the aggregate, exceed 33 percent of 

the total asset value of the applicant, 

even if such an interest is non-voting. 

44. In the Diversity Order, the 

Commission relaxed the equity/debt 

plus (‘‘EDP’’) attribution standard, to 

allow for higher investment 

opportunities in entities meeting the 

definition of eligible entities. An eligible 

entity is defined in Note 2(i) of 47 CFR 

73.3555. Pursuant to the Diversity 

Order, the Commission will now allow 

the holder of an equity or debt interest 

in the applicant to exceed the abovenoted 33 percent threshold without 

triggering attribution provided (1) the 

combined equity and debt in the eligible 

entity is less than 50 percent; or (2) the 

total debt in the eligible entity does not 

exceed 80 percent of the asset value, 

and the interest holder does not hold 

any equity interest, option, or promise 


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to acquire an equity interest in the 

eligible entity or any related entity. 

45. Generally, media interests will be 

attributable for purposes of the New 

Entrant Bidding Credit to the same 

extent that such other media interests 

are considered attributable for purposes 

of the broadcast multiple ownership 

rules. However attributable interests 

held by a winning bidder in existing 

low power television, television 

translator or FM translator facilities will 

not be counted among the bidder’s other 

mass media interests in determining its 

eligibility for a New Entrant Bidding 

Credit. A medium of mass 

communications is defined in 47 CFR 

73.5008(b). Full service noncommercial 

educational stations, on both reserved 

and nonreserved channels, are included 

among media of mass communications 

as defined in 47 CFR 73.5008(b). 

D. Application Requirements 

46. In addition to the ownership 

information required pursuant to 47 

CFR 1.2112, applicants seeking a New 

Entrant Bidding Credit are required to 

establish on their short-form 

applications that they satisfy the 

eligibility requirements to qualify for 

the bidding credit. In those cases, a 

certification under penalty of perjury 

must be provided in completing the 

applicant’s short-form application. An 

applicant claiming that it qualifies for a 

35 percent New Entrant Bidding Credit 

must certify that neither it nor any of its 

attributable interest holders have any 

attributable interests in any other media 

of mass communications. An applicant 

claiming that it qualifies for a 25 percent 

New Entrant Bidding Credit must certify 

that neither it nor any of its attributable 

interest holders has any attributable 

interests in more than three media of 

mass communications, and must 

identify and describe such media of 

mass communications. 

i. Bidding Credits 

47. Applicants that qualify for the 

New Entrant Bidding Credit, as 

specified in the applicable rule, are 

eligible for a bidding credit that 

represents the amount by which a 

bidder’s winning bid is discounted. The 

size of a New Entrant Bidding Credit 

depends on the number of ownership 

interests in other media of mass 

communications that are attributable to 

the bidder-entity and its attributable 

interest-holders: (1) A 35 percent 

bidding credit will be given to a 

winning bidder if it, and/or any 

individual or entity with an attributable 

interest in the winning bidder, has no 

attributable interest in any other media 

of mass communications, as defined in 

47 CFR 73.5008; (2) A 25 percent 

bidding credit will be given to a 

winning bidder if it, and/or any 

individual or entity with an attributable 

interest in the winning bidder, has an 

attributable interest in no more than 

three mass media facilities, as defined 

in 47 CFR 73.5008; and (3) No bidding 

credit will be given if any of the 

commonly owned mass media facilities 

serve the same area as the broadcast 

station proposed in the auction, as 

defined in 47 CFR 73.5007(b), or if the 

winning bidder, and/or any individual 

or entity with an attributable interest in 

the winning bidder, has attributable 

interests in more than three mass media 

facilities. 

48. Bidding credits are not 

cumulative; qualifying applicants 

receive either the 25 percent or the 35 

percent bidding credit, but not both. 

Attributable interests are defined in 47 

CFR 73.3555 and note 2 of that section. 

Applicants should note that unjust 

enrichment provisions apply to a 

winning bidder that utilizes a bidding 

credit and subsequently seeks to assign 

or transfer control of its license or 

construction permit to an entity not 

qualifying for the same level of bidding 

credit. 

E. Disclosure of Bidding Arrangements 

49. Applicants will be required to 

identify in their short-form application 

all parties with whom they have entered 

into any agreements, arrangements, or 

understandings of any kind relating to 

the construction permits being 

auctioned, including any agreements 

relating to post-auction market 

structure. 

50. Applicants also will be required to 

certify under penalty of perjury in their 

short-form applications that they have 

not entered and will not enter into any 

explicit or implicit agreements, 

arrangements or understandings of any 

kind with any parties, other than those 

identified in the application, regarding 

the amount of their bids, bidding 

strategies, or the particular construction 

permits on which they will or will not 

bid. If an applicant has had discussions, 

but has not reached an agreement by the 

short-form application filing deadline, it 

should not include the names of parties 

to the discussions on its application and 

may not continue such discussions with 

any applicants after the deadline. 

51. After the filing of short-form 

applications, the Commission’s rules do 

not prohibit a party holding a noncontrolling, attributable interest in one 

applicant from acquiring an ownership 

interest in or entering into a joint 

bidding arrangement with other 

applicants, 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 entered into a joint bidding 

arrangement; and (ii) the arrangements 

do not result in a change in control of 

any of the applicants. While 47 CFR 

1.2105(c) of the rules does 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. 

Such subject areas include, but are not 

limited to, issues such as management 

sales, local marketing agreements, 

rebroadcast agreements, and other 

transactional agreements. Further, 

compliance with the disclosure 

requirements of 47 CFR 1.2105(c) will 

not insulate a party from enforcement of 

the antitrust laws. 

F. Ownership Disclosure Requirements 

52. All applicants must comply with 

the uniform Part 1 ownership disclosure 

standards and provide information 

required by 47 CFR 1.2105 and 1.2112. 

Specifically, in completing the shortform application, applicants will be 

required to fully disclose information on 

the real party- or parties-in-interest and 

ownership structure of the applicant, 

including both direct and indirect 

ownership interests of 10 percent or 

more. The ownership disclosure 

standards for the short-form application 

are prescribed in 47 CFR 1.2105 and 

1.2112. Each applicant is responsible for 

information submitted in its short-form 

application being complete and 

accurate. 

53. In certain circumstances, an 

applicant’s most current ownership 

information on file with the 

Commission, if in an electronic format 

compatible with the short-form 

application (FCC Form 175) (such as 

information submitted in an on-line 

FCC Form 602 or in an FCC Form 175 

filed for a previous auction using ISAS) 

will automatically be entered into the 

applicant’s short-form application. 

Applicants are responsible for ensuring 

that the information submitted in their 

short-form application for Auction 90 is 

complete and accurate. Accordingly, 

applicants should carefully review any 

information automatically entered to 

confirm that it is complete and accurate 

as of the deadline for filing the shortform application. 


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G. Provisions Regarding Former and 

Current Defaulters 

54. Current defaulters or delinquents 

are not eligible to participate in Auction 

90, but former defaulters or delinquents 

can participate so long as they are 

otherwise qualified and make upfront 

payments that are fifty percent more 

than the normal upfront payment 

amounts. An applicant is considered a 

current defaulter or a current delinquent 

when it, any of its affiliates, any of its 

controlling interests, or any of the 

affiliates of its controlling interests, are 

in default on any payment for any 

Commission construction permits or 

licenses (including down payments) or 

are delinquent on any non-tax debt 

owed to any Federal agency as of the 

filing deadline for short-form 

applications. An applicant is considered 

a former defaulter or a former 

delinquent when it, any of its affiliates, 

any of its controlling interests, or any of 

the affiliates of its controlling interests, 

have defaulted on any Commission 

construction permit or license or been 

delinquent on any non-tax debt owed to 

any Federal agency, but have since 

remedied all such defaults and cured all 

of the outstanding non-tax 

delinquencies. 

55. On the short-form application, an 

applicant must certify under penalty of 

perjury that it, its affiliates, its 

controlling interests, and the affiliates of 

its controlling interests, as defined by 47 

CFR 1.2110 are not in default on any 

payment for a Commission construction 

permit or license (including down 

payments) and that it is not delinquent 

on any non-tax debt owed to any 

Federal agency. Each applicant must 

also state under penalty of perjury 

whether it, its affiliates, its controlling 

interests, and the affiliates of its 

controlling interests, have ever been in 

default on any Commission construction 

permit or license or have ever been 

delinquent on any non-tax debt owed to 

any Federal agency. Prospective 

applicants are reminded that 

submission of a false certification to the 

Commission is a serious matter that may 

result in severe penalties, including 

monetary forfeitures, license 

revocations, exclusion from 

participation in future auctions, and/or 

criminal prosecution. These statements 

and certifications are prerequisites to 

submitting an application to participate 

in an FCC auction. 

56. Applicants are encouraged to 

review the Bureaus’ previous guidance 

on default and delinquency disclosure 

requirements in the context of the shortform application process. For example, 

it has been determined that, to the 

extent that Commission rules permit 

late payment of regulatory or 

application fees accompanied by late 

fees, such debts will become delinquent 

for purposes of 47 CFR 1.2105(a) and 

1.2106(a) only after the expiration of a 

final payment deadline. Therefore, with 

respect to regulatory or application fees, 

the provisions of 47 CFR 1.2105(a) and 

1.2106(a) regarding default and 

delinquency in connection with 

competitive bidding are limited to 

circumstances in which the relevant 

party has not complied with a final 

Commission payment deadline. Parties 

are also encouraged to consult with the 

Commission’s Office of Managing 

Director or the Wireless 

Telecommunications Bureau’s Auctions 

and Spectrum Access Division staff if 

they have any questions about default 

and delinquency disclosure 

requirements. 

57. The Commission considers 

outstanding debts owed to the United 

States Government, in any amount, to be 

a serious matter. The Commission 

adopted rules, including a provision 

referred to as the red light rule, that 

implement the Commission’s 

obligations under the Debt Collection 

Improvement Act of 1996, which 

governs the collection of claims owed to 

the United States. Under the red light 

rule, the Commission will not process 

applications and other requests for 

benefits filed by parties that have 

outstanding debts owed to the 

Commission. In the same rulemaking 

order, the Commission explicitly 

declared, however, that the 

Commission’s competitive bidding rules 

are not affected by the red light rule. As 

a consequence, the Commission’s 

adoption of the red light rule does not 

alter the applicability of any of the 

Commission’s competitive bidding 

rules, including the provisions and 

certifications of 47 CFR 1.2105 and 

1.2106, with regard to current and 

former defaults or delinquencies. 

58. Applicants are reminded, 

however, that the Commission’s Red 

Light Display System, which provides 

information regarding debts currently 

owed to the Commission, may not be 

determinative of an auction applicant’s 

ability to comply with the default and 

delinquency disclosure requirements of 

47 CFR 1.2105. Thus, while the red light 

rule ultimately may prevent the 

processing of long-form applications by 

auction winners, an auction applicant’s 

lack of current ‘‘red light’’ status is not 

necessarily determinative of its 

eligibility to participate in an auction or 

of its upfront payment obligation. 

59. Moreover, prospective applicants 

in Auction 90 should note that any longform applications filed after the close of 

bidding will be reviewed for compliance 

with the Commission’s red light rule, 

and such review may result in the 

dismissal of a winning bidder’s longform application. 

H. Optional Applicant Status 

Identification 

60. Applicants owned by members of 

minority groups and/or women, as 

defined in 47 CFR 1.2110(c)(3), and 

rural telephone companies, as defined 

in 47 CFR 1.2110(c)(4), may identify 

themselves regarding this status in 

filling out their short-form applications. 

This applicant status information is 

collected for statistical purposes only 

and assists the Commission in 

monitoring the participation of 

designated entities in its auctions. 

I. Minor Modifications to Short-Form 

Applications 

61. After the deadline for filing initial 

applications, an Auction 90, applicant is 

permitted to make only minor changes 

to its application. Permissible minor 

changes include, among other things, 

deletion and addition of authorized 

bidders (to a maximum of three) and 

revision of addresses and telephone 

numbers of the applicants and their 

contact persons. An applicant is not 

permitted to make a major modification 

to its application (e.g., change their 

construction permit selections, change 

control of the applicant, change the 

certifying official, claim eligibility for a 

higher percentage of bidding credit or 

change their identification of the 

application’s proposed facilities as 

noncommercial educational) after the 

initial application filing deadline. Thus, 

any change in control of an applicant, 

resulting from a merger for example, 

will be considered a major modification 

to the applicant’s application, which 

will consequently be dismissed. 

62. If an applicant wishes to make 

permissible minor changes to its shortform application, such changes should 

be made electronically to its short-form 

application using the FCC Auction 

System whenever possible. Applicants 

are reminded to click on the SUBMIT 

button in the FCC Auction System for 

the changes to be submitted and 

considered by the Commission. After 

the revised application has been 

submitted, a confirmation page will be 

displayed that states the submission 

time, submission date, and a unique file 

number. 

63. An applicant cannot use the FCC 

Auction System outside of the initial 

and resubmission filing windows to 

make changes to its short-form 

application other than administrative 


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changes (e.g. changing certain contact 

information or the name of an 

authorized bidder). If these or other 

permissible minor changes need to be 

made outside of these windows, the 

applicant must submit a letter briefly 

summarizing the changes and 

subsequently update its short-form 

application in ISAS once the system is 

available. Moreover, after the filing 

window has closed, ISAS will not 

permit applicants to make certain 

changes, such as the applicant’s legal 

classification and the identification of 

the application’s proposed facilities as 

noncommercial educational. 

64. Any letter describing changes to 

an applicant’s short-form application 

should be submitted by e-mail to 

auction90@fcc.gov. The e-mail 

summarizing the changes must include 

a subject or caption referring to Auction 

90 and the name of the applicant. 

65. Any application amendment and 

related statements of fact must be 

certified by (1) the applicant, if the 

applicant is an individual; (2) one of the 

partners if the applicant is a 

partnership; (3) an officer, director, or 

duly authorized employee, if the 

applicant is a corporation; (4) a member 

who is an officer, if the applicant is an 

unincorporated association; (5) the 

trustee, if the applicant is an amateur 

radio service club; or (6) a duly elected 

or appointed official who is authorized 

to make such certifications under the 

laws of the applicable jurisdiction, if the 

applicant is a governmental entity. 

66. Applicants must not submit 

application-specific material through 

the Commission’s Electronic Comment 

Filing System (ECFS), which was used 

for submitting comments regarding 

Auction 90. 

J. Maintaining Current Information in 

Short-Form Applications 

67. 47 CFR 1.65 and 1.2105(b) require 

an applicant to maintain the accuracy 

and completeness of information in its 

pending application and to furnish 

additional or corrected information to 

the Commission within five days of a 

significant occurrence, or to amend its 

short-form application no more than 

five days after the applicant becomes 

aware of the need for amendment. 

Changes that cause a loss of or reduction 

in the percentage of bidding credit 

specified on the originally submitted 

application must be reported 

immediately. For example, if ownership 

changes result in the attribution of new 

interest holders that affect the 

applicant’s qualifications for a new 

entrant bidding credit, such information 

must be clearly stated in the applicant’s 

amendment. Events occurring after the 

application filing deadline, such as the 

acquisition of attributable interests in 

media of mass communications, may 

also cause diminishment or loss of the 

bidding credit, and must be reported 

immediately. If an amendment reporting 

substantial changes is a major 

amendment, as defined by 47 CFR 

1.2105, the major amendment will not 

be accepted and may result in the 

dismissal of the application. After the 

application filing deadline, applicants 

may make only minor changes to their 

applications. 

68. After the application filing 

deadline, applicants may make only 

minor changes to their applications. 

Applicants must click on the SUBMIT 

button in the FCC Auction System for 

any changes to be submitted and 

considered by the Commission. If a 

submission in compliance with 47 CFR 

1.65 is needed outside of the initial and 

resubmission filing windows, applicants 

must submit a brief letter summarizing 

the changes in accordance with the 

instructions specified in the Auction 90 

Procedures Public Notice. 

III. Pre-Auction Procedures 

A. Online Auction Tutorial—Available 

December 8, 2010 

69. On Wednesday, December 8, 2010, 

the Commission will post an 

educational auction tutorial on the 

Auction 90 Web page for prospective 

bidders to familiarize themselves with 

the auction process. This online tutorial 

will provide information about preauction procedures, completing shortform applications, auction conduct, the 

FCC Auction Bidding System, auction 

rules, and broadcast services rules. The 

tutorial will also provide an avenue to 

ask FCC staff questions about the 

auction, auction procedures, filing 

requirements, and other matters related 

to this auction. 

70. The Auction 90 online tutorial 

replaces the live bidder seminars that 

have been offered for most previous 

auctions. The Bureaus believe parties 

interested in participating in Auction 90 

will find this interactive, online tutorial 

a more efficient and effective way to 

further their understanding of the 

auction process. 

71. The auction tutorial will be 

accessible from the FCC’s Auction 90 

Web page at http://wireless.fcc.gov/ 

auctions/90/ through an Auction 

Tutorial link. Once posted, this tutorial 

will remain available for reference in 

connection with the procedures 

outlined in the Auction 90 Procedures 

Public Notice and accessible anytime. 

B. Short-Form Applications—Due Prior 

to 6 p.m. ET on December 15, 2010 

72. In order to be eligible to bid in this 

auction, applicants must first follow the 

procedures set forth in Attachment B to 

the Auction 90 Procedures Public Notice 

to submit a short-form application (FCC 

Form 175) electronically via the FCC 

Auction System. This short-form 

application must be submitted through 

the FCC Auction System prior to 6 p.m. 

ET on December 15, 2010. Late 

applications will not be accepted. There 

is no application fee required when 

filing an FCC Form 175, but an 

applicant must submit a timely upfront 

payment to be eligible to bid. 

C. Application Processing and Minor 

Corrections 

73. After the deadline for filing FCC 

Form 175 applications, the Commission 

will process all timely submitted 

applications to determine which are 

complete, and subsequently will issue a 

public notice identifying (1) those 

applications that are complete; (2) those 

applications that are rejected; and (3) 

those applications that are incomplete 

because of minor defects that may be 

corrected. The public notice will 

include the deadline for resubmitting 

corrected applications. 

74. Non-mutually exclusive 

applications will not proceed to auction, 

but will proceed in accordance with 

instructions set forth in a public notice. 

All mutually exclusive applications will 

be considered under the relevant 

procedures for conflict resolution. 

Mutually exclusive applications 

proposing commercial stations will 

proceed to auction. In the NCE Second 

Report and Order, 68 FR 26220, May 15, 

2003, the Commission held that 

applications for NCE full power 

television stations on nonreserved 

spectrum, filed during a television filing 

window, will be returned as 

unacceptable for filing if mutually 

exclusive with any application for a 

commercial station. Accordingly, if an 

FCC Form 175 filed during the Auction 

90 filing window identifying the 

application’s proposed station as 

noncommercial educational is mutually 

exclusive with any application filed 

during that window by an applicant for 

a commercial station, the former will be 

returned as unacceptable for filing. 

75. After the application filing 

deadline on December 15, 2010, 

applicants continue to be able to make 

only minor corrections to their 

applications. Applicants will not be 

permitted to make major modifications 

to their applications (e.g., change their 

construction permit selections, change 


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control of the applicant, change the 

certifying official, claim eligibility for a 

higher percentage of bidding credit, or 

change their self-identification as NCE). 

76. Applicants should be aware the 

Commission staff will communicate 

only with an applicant’s contact person 

or certifying official, as designated on 

the applicant’s short-form application, 

unless the applicant’s certifying official 

or contact person notifies the 

Commission in writing that applicant’s 

counsel or other representative is 

authorized to speak on its behalf. 

Authorizations may be sent by e-mail to 

auction90@fcc.gov. 

D. Upfront Payments—Due January 21, 

2011 

77. In order to be eligible to bid in this 

auction, applicants must submit an 

upfront payment accompanied by an 

FCC Remittance Advice Form (FCC 

Form 159). We note that all applicants 

for permits must make an upfront 

payment in order to qualify as a bidder 

and obtain a permit, whether or not any 

other applicant in their MX groups 

becomes a qualified bidder. After 

completing its short-form application, 

an applicant will have access to an 

electronic version of the FCC Form 159 

that can be printed and sent by fax to 

U.S. Bank in St. Louis, Missouri. All 

upfront payments must be made as 

instructed in this Public Notice and 

must be received in the proper account 

at U.S. Bank before 6 p.m. ET on January 

21, 2011. 

i. Making Upfront Payments by Wire 

Transfer 

78. Wire transfer payments must be 

received before 6 p.m. ET on January 21, 

2011. No other payment method is 

acceptable. To avoid untimely 

payments, applicants should discuss 

arrangements (including bank closing 

schedules) with their bankers 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. 

79. At least one hour before placing 

the order for the wire transfer (but on 

the same business day), applicants must 

fax a completed FCC Form 159 (Revised 

2/03) to U.S. Bank at (314) 418–4232. 

On the fax cover sheet, applicants 

should write Wire Transfer—Auction 

Payment for Auction 90. In order to 

meet the Commission’s upfront payment 

deadline, an applicant’s payment must 

be credited to the Commission’s account 

for Auction 90 before the deadline. The 

applicant is responsible for obtaining 

confirmation from its financial 

institution that U.S. Bank has timely 

received its upfront payment and 

deposited it in the proper account. 

80. Please note the following 

information regarding upfront 

payments: (1) All payments must be 

made in U.S. dollars; (2) All payments 

must be made by wire transfer; (3) 

Upfront payments for Auction 90 go to 

a lockbox number different from the 

lockboxes used in previous FCC 

auctions; and (4) Failure to deliver a 

sufficient upfront payment as instructed 

by the January 21, 2011, deadline will 

result in dismissal of the short-form 

application and disqualification from 

participation in the auction. 

ii. FCC Form 159 

81. A completed FCC Remittance 

Advice Form (FCC Form 159, Revised 

2/03) must be faxed to U.S. Bank to 

accompany each upfront payment. 

Proper completion of FCC Form 159 is 

critical to ensuring correct crediting of 

upfront payments. Detailed instructions 

for completion of FCC Form 159 are 

included in Attachment C to the 

Auction 90 Procedures Public Notice. 

An electronic pre-filled version of the 

FCC Form 159 is available after 

submitting the FCC Form 175. Payers 

using the pre-filled FCC Form 159 are 

responsible for ensuring that all of the 

information on the form, including 

payment amounts, is accurate. The FCC 

Form 159 can be completed 

electronically, but must be filed with 

U.S. Bank by fax. 

iii. Upfront Payments and Bidding 

Eligibility 

82. The Commission has delegated to 

the Bureaus the authority and discretion 

to determine appropriate upfront 

payments for each auction. Upfront 

payments help deter frivolous or 

insincere bidding, and provide the 

Commission with a source of funds in 

the event that the bidder incurs liability 

during the auction. 

83. Applicants that are former 

defaulters, as described above, must 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 47 CFR 1.2110 of the 

Commission’s rules. 

84. Applicants must make upfront 

payments sufficient to obtain bidding 

eligibility on the construction permits 

on which they will bid. The Bureaus 

proposed, in the Auction 90 Comment 

Public Notice, that the amount of the 

upfront payment would determine a 

bidder’s initial bidding eligibility, the 

maximum number of bidding units on 

which a bidder may place bids. Under 

the Bureaus’ proposal, in order to bid on 

a particular construction permit, a 

qualified bidder must have selected the 

construction permit on its FCC Form 

175 and must have a current eligibility 

level that meets or exceeds the number 

of bidding units assigned to that 

construction permit. At a minimum, 

therefore, an applicant’s total upfront 

payment must be enough to establish 

eligibility to bid on at least one of the 

construction permits selected on its FCC 

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 

construction permits the applicant 

selected on its FCC Form 175, but only 

enough to cover the maximum number 

of bidding units that are associated with 

construction permits on which the 

bidder wishes to place bids and hold 

provisionally winning bids at any given 

time. 

85. In the Auction 90 Comment Public 

Notice, the Bureaus proposed upfront 

payments for each construction permit 

taking into account various factors 

related to the efficiency of the auction 

process and the potential value of 

similar spectrum and sought comment 

on this proposal. The Bureaus received 

no comments on the proposal that the 

upfront payment amount would 

determine a bidder’s initial bidding 

eligibility or in response to the specific 

upfront payments proposed in the 

Auction 90 Comment Public Notice. 

Therefore, the Bureaus adopt the 

upfront payments and bidding units 

proposed for each construction permit 

in Auction 90. Upfront payment 

amounts and bidding units are set forth 

in Attachment A of the Auction 90 

Procedures Public Notice. 

86. In calculating its upfront payment 

amount, an applicant should determine 

the maximum number of bidding units 

on which it may wish to be active (bid 

on or hold provisionally winning bids 

on) in any single round, and submit an 

upfront payment amount covering that 

number of bidding units. In order to 

make this calculation, an applicant 

should add together the bidding units 

for all construction permits on which it 

seeks to be active in any given round. 

Applicants should check their 

calculations carefully, as there is no 

provision for increasing a bidder’s 

eligibility after the upfront payment 

deadline. 

87. If an applicant is a former 

defaulter, it must calculate its upfront 

payment for all of its identified 

construction permits by multiplying the 

number of bidding units on which it 

wishes to be active by 1.5. In order to 


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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. 

E. Applicant’s Wire Transfer 

Information for Purposes of Refunds of 

Upfront Payments 

88. To ensure that refunds of upfront 

payments are processed in an 

expeditious manner, the Commission is 

requesting that all pertinent information 

listed below be supplied. Applicants 

can provide the information 

electronically during the initial shortform application filing window after the 

form has been submitted. (Applicants 

are reminded that information 

submitted as part of an FCC Form 175 

will be available to the public; for that 

reason, wire transfer information should 

not be included in an FCC Form 175.) 

Wire Transfer Instructions can also be 

manually faxed to the FCC, Financial 

Operations, Auctions Accounting 

Group, Attn: Gail Glasser, at (202) 418– 

2843. 

F. Auction Registration 

89. Approximately ten days before the 

auction, the Bureaus will issue a public 

notice announcing all qualified bidders 

for the auction. Qualified bidders are 

those applicants with submitted FCC 

Form 175 applications that are deemed 

timely-filed, accurate, and complete, 

provided that such applicants have 

timely submitted an upfront payment 

that is sufficient to qualify them to bid. 

90. All qualified bidders are 

automatically registered for the auction. 

Registration materials will be 

distributed prior to the auction by 

overnight mail. The mailing will be sent 

only to the contact person at the contact 

address listed in the FCC Form 175 and 

will include the SecurID tokens that 

will be required to place bids, the 

Integrated Spectrum Auction System 

(ISAS) Bidder’s Guide, and the Auction 

Bidder Line phone number. 

91. Qualified bidders that do not 

receive this registration mailing will not 

be able to submit bids. Therefore, any 

qualified bidder that has not received 

this mailing by noon on Wednesday, 

February 9, 2011, should call (717) 338– 

2868. Receipt of this registration mailing 

is critical to participating in the auction, 

and each applicant is responsible for 

ensuring it has received all of the 

registration material. 

92. In the event that SecurID tokens 

are lost or damaged, only a person who 

has been designated as an authorized 

bidder, the contact person, or the 

certifying official on the applicant’s 

short-form application may request 

replacements. Qualified bidders 

requiring the replacement of these items 

must call Technical Support at (877) 

480–3201, option nine; (202) 414–1250; 

or (202) 414–1255 (TTY). 

G. Remote Electronic Bidding 

93. The Commission will conduct this 

auction over the Internet, and 

telephonic bidding will be available as 

well. Only qualified bidders are 

permitted to bid. Each applicant should 

indicate its bidding preference— 

electronic or telephonic—on its FCC 

Form 175. In either case, each 

authorized bidder must have its own 

SecurID token, which the Commission 

will provide at no charge. Each 

applicant with one authorized bidder 

will be issued two SecurID tokens, 

while applicants with two or three 

authorized bidders will be issued three 

tokens. For security purposes, the 

SecurID tokens, the telephonic bidding 

telephone number, and the Integrated 

Spectrum Auction System (ISAS) 

Bidder’s Guide are only mailed to the 

contact person at the contact address 

listed on the FCC Form 175. Each 

SecurID token is tailored to a specific 

auction. SecurID tokens issued for 

other auctions or obtained from a source 

other than the FCC will not work for 

Auction 90. 

H. Mock Auction—February 11, 2011 

94. All qualified bidders will be 

eligible to participate in a mock auction 

on Friday, February 11, 2011. The mock 

auction will enable qualified bidders to 

become familiar with the FCC Auction 

System prior to the auction. 

Participation by all bidders is strongly 

recommended. Details will be 

announced by public notice. 

IV. Auction Event 

95. The first round of bidding for 

Auction 90 will begin on Tuesday, 

February 15, 2011. The initial bidding 

schedule will be announced in a public 

notice listing the qualified bidders, 

which is to be released approximately 

10 days before the start of the auction. 

A. Auction Structure 

i. Simultaneous Multiple Round 

Auction 

96. In the Auction 90 Comment Public 

Notice, the Bureaus proposed to auction 

the two construction permits in Auction 

90 using the Commission’s standard 

simultaneous multiple-round auction 

format. This type of auction offers every 

construction permit for bid at the same 

time and consists of successive bidding 

rounds in which eligible bidders may 

place bids on individual construction 

permits. A bidder may bid on, and 

potentially win, any number of 

construction permits. The Bureaus 

received no comment on this proposal; 

this proposal is adopted. Unless 

otherwise announced, bids will be 

accepted on all construction permits in 

each round of the auction until bidding 

stops on every construction permit. 

ii. Eligibility and Activity Rules 

97. The Bureaus will use upfront 

payments to determine initial 

(maximum) eligibility (as measured in 

bidding units) for Auction 90. The 

amount of the upfront payment 

submitted by a bidder determines initial 

bidding eligibility, the maximum 

number of bidding units on which a 

bidder may be active. Each construction 

permit is assigned a specific number of 

bidding units listed in Attachment A of 

the Auction 90 Procedures Public 

Notice. Bidding units for a given 

construction permit do not change as 

prices rise during the auction. A 

bidder’s upfront payment is not 

attributed to specific construction 

permits. Rather, a bidder may place bids 

on any of the construction permits 

selected on its short-form application as 

long as the total number of bidding 

units associated with those construction 

permits does not exceed its current 

eligibility. Eligibility cannot be 

increased during the auction; it can only 

remain the same or decrease. Thus, in 

calculating its upfront payment amount, 

an applicant must determine the 

maximum number of bidding units it 

may wish to bid on or hold 

provisionally winning bids on in any 

single round, and submit an upfront 

payment amount covering that total 

number of bidding units. At a 

minimum, an applicant’s upfront 

payment must cover the bidding units 

for at least one of the construction 

permits it selected on its short-form 

application. The total upfront payment 

does not affect the total dollar amount 

a bidder may bid on any given 

construction permit. 

98. In order to ensure that an 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. Bidders are 

required to be active on a specific 

percentage of their current bidding 

eligibility during each round of the 

auction. 

99. A bidder’s activity level in a 

round is the sum of the bidding units 

associated with any construction 

permits covered by new and 

provisionally winning bids. A bidder is 

considered active on a construction 

permit in the current round if it is either 


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the provisionally winning bidder at the 

end of the previous bidding round or if 

it submits a bid in the current round. 

100. The Bureaus received no 

comments on the proposed eligibility 

and activity rules. Therefore, in order to 

ensure that the auction closes within a 

reasonable period of time, the Bureaus 

adopt the proposal with the following 

activity requirement: A bidder is 

required to be active on 100 percent of 

its current eligibility during each round 

of the auction. That is, a bidder must 

place a bid (or bids) and/or have a 

provisionally winning bid (or bids) 

during each round of the auction. 

Failure to maintain the requisite activity 

level will result in the use of an activity 

rule waiver, if any remain, or a 

reduction in the bidder’s eligibility, 

possibly curtailing or eliminating the 

bidder’s ability to place additional bids 

in the auction. 

iii. Activity Rule Waivers 

101. In the Auction 90 Comment 

Public Notice, the Bureaus proposed 

that each bidder in the auction be 

provided with three activity rule 

waivers. The Bureaus received no 

comments on this issue. Therefore, the 

Bureaus adopt this proposal to provide 

each bidder with three activity rule 

waivers. 

102. Bidders may use an activity rule 

waiver 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 minimum activity 

level. The FCC Auction System will 

automatically apply a waiver at the end 

of any bidding round where a bidder’s 

activity level is below the minimum 

required unless (1) there are no activity 

rule waivers available or (2) the bidder 

overrides the automatic application of a 

waiver by reducing eligibility. If a 

bidder has no waivers remaining and 

does not satisfy the activity 

requirement, the FCC Auction System 

will permanently reduce the bidder’s 

eligibility, possibly curtailing or 

eliminating the bidder’s ability to place 

additional bids in the auction. It is 

important for bidders to understand that 

applying a waiver is irreversible. Once 

a bidder submits a proactive waiver, the 

bidder cannot unsubmit the waiver even 

if the round has not yet ended. 

iv. Auction Stopping Rules 

103. For Auction 90, the Bureaus 

proposed to employ a simultaneous 

stopping rule approach. A simultaneous 

stopping rule means that all 

construction permits remain available 

for bidding until bidding closes 

simultaneously on all construction 

permits. More specifically, bidding will 

close simultaneously on all construction 

permits after the first round in which no 

bidder submits any new bids or applies 

a proactive waiver. 

104. The Bureaus also sought 

comment on three alternative versions 

of the simultaneous stopping rule for 

Auction 90. The Bureaus received no 

comment on these proposals and adopt 

them for Auction 90 as specified in the 

Auction 90 Comment Public Notice. The 

Bureaus retain the discretion to exercise 

any of these options with or without 

prior announcement during the auction. 

v. Auction Delay, Suspension, or 

Cancellation 

105. In the Auction 90 Comment 

Public Notice, the Bureaus proposed 

that, by public notice or by 

announcement during the auction, they 

may delay, suspend, or cancel the 

auction in the event of natural disaster, 

technical obstacle, administrative or 

weather necessity, evidence of an 

auction security breach or unlawful 

bidding activity, or for any other reason 

that affects the fair and efficient conduct 

of competitive bidding. The Bureaus 

received no comment on this issue. 

Because this approach to notification of 

delay during an auction has proven 

effective in resolving exigent 

circumstances in previous auctions, the 

Bureaus adopt these proposed rules 

regarding auction delay, suspension, or 

cancellation. 

B. Bidding Procedures 

i. Round Structure 

106. 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. 

107. The Bureaus have the 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 Bureaus may 

increase or decrease the amount of time 

for the bidding rounds, the amount of 

time between rounds, or the number of 

rounds per day, depending upon 

bidding activity and other factors. 

ii. Reserve Price and Minimum Opening 

Bids 

108. Section 309(j) of the 

Communications Act of 1934, as 

amended, calls upon the Commission to 

prescribe methods by which a 

reasonable reserve price will be required 

or a minimum opening bid established 

when applications for FCC licenses or 

construction permits are subject to 

auction (i.e., because they are mutually 

exclusive), unless the Commission 

determines that a reserve price or 

minimum opening bid is not in the 

public interest. Consistent with this 

mandate, the Commission directed the 

Bureaus to seek comment on the use of 

a minimum opening bid and/or reserve 

price prior to the start of each auction. 

109. In the Auction 90 Comment 

Public Notice, the Bureaus did not 

propose to establish a reserve price for 

the construction permits to be offered in 

Auction 90. This is consistent with 

policy applied in earlier broadcast 

spectrum auctions. The Bureaus, 

however, did propose to establish 

minimum opening bids for each 

construction permit, reasoning that a 

minimum opening bid, which has been 

used in other auctions, is an effective 

bidding tool for accelerating the 

competitive bidding process. 

Specifically, a minimum opening bid 

was proposed for each construction 

permit by taking into account various 

factors relating to the efficiency of the 

auction and the potential value of the 

spectrum, including the type of service 

and class of facility offered, market size, 

population covered by the proposed 

VHF commercial television station and 

any other relevant factors. The Bureaus 

sought comment on the proposed 

minimum opening bids. A Commenter 

requests that the minimum opening bid 

for the new television channel in 

Seaford, Delaware, be lowered from the 

proposed $200,000 to $50,000. The 

Commenter points out that Seaford, 

with a population of roughly 10,000 

people, is in the Salisbury Designated 

Market Area, and that Atlantic City is in 

the Philadelphia, PA DMA. The 

Commenter suggests that the minimum 

opening bid should be lower for the 

Seaford permit than for the Atlantic City 

permit on account of the larger 

population of the Philadelphia DMA. 

On that basis, the Commenter concludes 

that the opening bid for Seaford, DE 

should be less than a station in the 

Philadelphia market. The Bureaus’ are 

not persuaded that the minimum 

opening bid previously proposed for the 

Seaford construction permit is too high. 

In Commission auctions, minimum 

opening bids are intended to serve as 

useful starting points for bidding. Based 

on the Bureaus’ experience using 

minimum opening bids in other 

auctions, they believe that minimum 

opening bids speed the course of the 


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auction and ensure that valuable assets 

are not sold for nominal prices, without 

unduly interfering with the efficient 

awarding of construction permits. 

Accordingly, the Bureaus adopt the 

minimum opening bid amounts as 

proposed in the Auction 90 Comment 

Public Notice. 

110. The specific minimum opening 

bid amounts for the construction 

permits available in Auction 90 are set 

forth below and in Attachment A to the 

Auction 90 Procedures Public Notice. 

iii. Bid Amounts 

111. In the Auction 90 Comment 

Public Notice, the Bureaus proposed 

that in each round, eligible bidders be 

able to place a bid on a given 

construction permit in any of up to nine 

different amounts. Under the proposal, 

the FCC Auction System interface will 

list the nine acceptable bid amounts for 

each construction permit. The Bureaus 

received no comments on this proposal; 

therefore, this proposal is adopted. 

112. The first of the acceptable bid 

amounts is called the minimum 

acceptable bid amount. The minimum 

acceptable bid amount for a 

construction permit will be equal to its 

minimum opening bid amount until 

there is a provisionally winning bid on 

the construction permit. After there is a 

provisionally winning bid for a permit, 

the minimum acceptable bid amount 

will be a percentage higher. 

113. In the Auction 90 Comment 

Public Notice, the Bureaus proposed to 

use a minimum acceptable bid 

percentage of 10 percent. The Bureaus 

did not receive any comments on this 

proposal. The Bureaus’ experience in 

previous broadcast auctions assures that 

a minimum acceptable bid percentage of 

10 percent is sufficient to ensure active 

bidding. Therefore, the Bureaus will 

begin the auction with a minimum 

acceptable bid percentage of 10 percent. 

114. The eight additional bid amounts 

are calculated using the minimum 

acceptable bid amount and a bid 

increment percentage. In the Auction 90 

Comment Public Notice, the Bureaus 

proposed to use a bid increment 

percentage of 5 percent, and received no 

comment on this issue. The Bureaus 

believe that a bid increment percentage 

of 5 percent will give bidders the 

flexibility to speed up the pace of the 

auction, if appropriate. The Bureaus 

therefore adopt this proposal, and will 

begin the auction with a bid increment 

percentage of 5 percent. 

115. The Bureaus proposed to retain 

the discretion to change the minimum 

acceptable bid amounts, the minimum 

acceptable bid percentage, the bid 

increment percentage, and the number 

of acceptable bid amounts if the Bureaus 

determine that circumstances so dictate. 

Further, the Bureaus proposed to retain 

the discretion to do so on a construction 

permit-by-construction permit basis. 

The Bureaus also proposed to retain the 

discretion to limit (a) the amount by 

which a minimum acceptable bid for a 

construction permit may increase 

compared with the corresponding 

provisionally winning bid, and (b) the 

amount by which an additional bid 

amount may increase compared with 

the immediately preceding acceptable 

bid amount. 

116. The Bureaus did not receive any 

comments on their proposal to retain 

the discretion to change bid amounts if 

they determine that circumstances so 

dictate. The Bureaus adopt this 

proposal. If the Bureaus exercise this 

discretion, they will alert bidders by 

announcement in the FCC Auction 

System during the auction. 

iv. Provisionally Winning Bids 

117. At the end of each bidding 

round, a provisionally winning bid will 

be determined based on the highest bid 

amount received for each construction 

permit. A provisionally winning bid 

will remain the provisionally winning 

bid until there is a higher bid on the 

same construction permit at the close of 

a subsequent round. Provisionally 

winning bids at the end of the auction 

become the winning bids. Bidders are 

reminded that provisionally winning 

bids count toward activity for purposes 

of the activity rule. 

118. In the Auction 90 Comment 

Public Notice, the Bureaus proposed to 

use a random number generator to select 

a single provisionally winning bid in 

the event of identical high bid amounts 

being submitted on a construction 

permit in a given round (i.e., tied bids). 

No comments were received on this 

proposal. 

119. Hence, the Bureaus adopt the 

proposal. The FCC Auction System will 

assign a random number to each bid 

upon submission. The tied bid with the 

highest random number wins the 

tiebreaker, and becomes the 

provisionally winning bid. Bidders, 

regardless of whether they hold a 

provisionally winning bid, can submit 

higher bids in subsequent rounds. 

However, if the auction were to end 

with no other bids being placed, the 

winning bidder would be the one that 

placed the provisionally winning bid. 

v. Bidding 

120. All bidding will take place 

remotely either through the FCC 

Auction System or by telephonic 

bidding. There will be no on-site 

bidding during Auction 90. Please note 

that 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. The length of a call to place a 

telephonic bid may vary; please allow a 

minimum of ten minutes. 

121. A bidder’s ability to bid on 

specific construction permits is 

determined by two factors: (1) The 

construction permits selected on the 

bidder’s FCC Form 175 and (2) the 

bidder’s eligibility. The bid submission 

screens will allow bidders to submit 

bids on only those construction permits 

the bidder selected on its FCC Form 

175. 

122. In order to access the bidding 

function of the FCC Auction System, 

bidders must be logged in during the 

bidding round using the passcode 

generated by the SecurID token and a 

personal identification number (PIN) 

created by the bidder. Bidders are 

strongly encouraged to print a round 

summary for each round after they have 

completed all of their activity for that 

round. 

123. In each round, eligible bidders 

will be able to place bids on a given 

construction permit in any of up to nine 

pre-defined bid amounts. For each 

construction permit, the FCC Auction 

System will list the acceptable bid 

amounts in a drop-down box. Bidders 

use the drop-down box to select from 

among the acceptable bid amounts. The 

FCC Auction System also includes an 

upload function that allows bidders to 

upload text files containing bid 

information. 

124. Until a bid has been placed on 

a construction permit, the minimum 

acceptable bid amount for that 

construction permit will be equal to its 

minimum opening bid amount. Once 

there is a bid on a construction permit, 

the minimum acceptable bid for that 

construction permit for the following 

round will be determined. 

125. During a round, an eligible 

bidder may submit bids for as many 

construction permits as it wishes 

(provided that it has enough bidding 

eligibility), remove bids placed in the 

current bidding round, or permanently 

reduce eligibility. If a bidder submits 

multiple bids for the same construction 

permit 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 construction permits for 

which the bidder has removed bids do 

not count toward the bidder’s current 

activity. 


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vi. Bid Removal and Bid Withdrawal 

126. In the Auction 90 Comment 

Public Notice, the Bureaus proposed bid 

removal procedures. The Bureaus 

proposed to provide each bidder with 

the option of removing any bids placed 

in a round provided that such bids are 

removed before the close of that bidding 

round. By using the remove bids 

function in the FCC Auction 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. 

The Bureaus received no comments on 

this issue of bid removals. These 

removal procedures will enhance bidder 

flexibility during the auction. Therefore, 

the Bureaus adopt their proposed 

procedures to permit bid removals for 

Auction 90. 

127. Once a round closes, a bidder 

may no longer remove a bid. In the 

Auction 90 Comment Public Notice, the 

Bureaus proposed to prohibit bidders 

from withdrawing any bids after the 

round in which bids were placed has 

closed. This proposal was made in 

recognition that bid withdrawals, 

particularly those made late in this 

auction, could result in delays in 

licensing of digital broadcast television 

service to the public in these two 

markets. The Bureaus received no 

comments on the issue of bid 

withdrawal. Accordingly, the Bureaus 

will prohibit bid withdrawals in 

Auction 90. Bidders are cautioned to 

select bid amounts carefully because no 

bid withdrawals will be allowed in 

Auction 90, even if a bid was 

mistakenly or erroneously made. 

vii. Round Results 

128. Reports reflecting bidders’ 

identities for Auction 90 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. 

129. Bids placed during a round will 

not be made public until the conclusion 

of that round. After a round closes, the 

Bureaus will compile reports of all bids 

placed, current provisionally winning 

bids, new minimum acceptable bid 

amounts for the following round, 

whether the construction permit is FCC 

held, and bidder eligibility status 

(bidding eligibility and activity rule 

waivers), and post the reports for public 

access. 

viii. Auction Announcements 

130. The Commission will use auction 

announcements to announce items such 

as schedule changes. All auction 

announcements will be available by 

clicking a link in the FCC Auction 

System. 

V. Post-Auction Procedures 

131. Shortly after bidding has ended, 

the Commission will issue a public 

notice declaring the auction closed, 

identifying the winning bidders, and 

establishing the deadlines for 

submitting down payments, final 

payments, and the long-form 

applications (FCC Form 301). 

A. Down Payments 

132. Within ten business days after 

release of the auction closing public 

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 90 to 20 

percent of the net amount of its winning 

bids (gross bids less any applicable new 

entrant bidding credits). 

B. Final Payments 

133. Each winning bidder will be 

required to submit the balance of the net 

amount of its winning bids within ten 

business days after the applicable 

deadline for submitting down payments. 

C. Long-Form Application (FCC Form 

301) 

134. The Commission’s rules 

currently provide that within thirty days 

after release of the auction closing 

notice, winning bidders must 

electronically submit a properly 

completed long-form application (FCC 

Form 301, Application for Construction 

Permit for Commercial Broadcast 

Station), and required exhibits for each 

construction permit won through 

Auction 90. Winning bidders claiming 

new entrant status must include an 

exhibit demonstrating their eligibility 

for the bidding credit. Further 

instructions on these and other filing 

requirements will be provided to 

winning bidders in the auction closing 

public notice. 

D. Default and Disqualification 

135. Any winning 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). The 

payments include both a deficiency 

payment, equal to the difference 

between the amount of the bidder’s bid 

and the amount of the winning bid the 

next time a construction permit 

covering the same spectrum is won in 

an auction, plus an additional payment 

equal to a percentage of the defaulter’s 

bid or of the subsequent winning bid, 

whichever is less. 

136. The percentage of the applicable 

bid to be assessed as an additional 

payment for defaults in a particular 

auction is established in advance of the 

auction. Accordingly, in the Auction 90 

Comment Public Notice, the Bureaus 

proposed to set the additional default 

payment for this auction at twenty 

percent of the applicable bid. The 

Bureaus received no comments on this 

proposal, and therefore, adopt the 

proposal. 

137. Finally, in the event of a default, 

the Commission has the discretion to reauction the construction permit or offer 

it to the next highest bidder (in 

descending order) at its final bid 

amount. 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 authorizations held by the 

applicant. 

E. Refund of Remaining Upfront 

Payment Balance 

138. After the auction, applicants that 

are not winning bidders or are winning 

bidders whose upfront payment 

exceeded the total net amount of their 

winning bids may be entitled to a 

refund of some or all of their upfront 

payment. 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. Bidders that drop out of the 

auction completely (have exhausted all 

of their activity rule waivers and have 

no remaining bidding eligibility) may 

request a refund of their upfront 

payments before the close of the 

auction. 

Federal Communications Commission. 

Gary D. Michaels, 

Deputy Chief, Auctions and Spectrum Access 

Division, WTB. 

[FR Doc. 2010–30219 Filed 11–30–10; 8:45 am] 

BILLING CODE 6712–01–P 


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