8070 Federal Register / Vol. 75, No. 35 / Tuesday, February 23, 2010 / Notices 

Total Annual Burden: 1,034,620 

hours. 

Privacy Act Impact Assessment: N/A. 

Nature and Extent of Confidentiality: 

The Commission will continue to allow 

respondents to certify, on the first page 

of each submission, that some data 

contained in that submission are 

privileged or confidential commercial or 

financial information and that 

disclosure of such information would 

likely cause substantial harm to the 

competitive position of the entity 

making the submission. If the 

Commission receives a request for, or 

proposes to disclose the information, 

the respondent would be required to 

show, pursuant to the Commission’s 

rules for withholding from public 

inspection information submitted to the 

Commission, that the information in 

question is entitled to confidential 

treatment. We will retain our current 

policies and procedures regarding the 

confidential treatment of submitted FCC 

Form 477 data, including use of 

aggregated, non–company specific data 

in our published reports. 

Need and Uses: The Commission will 

submit this information collection to the 

Office of Management and Budget 

(OMB) during this comment period in 

order to obtain the full three year 

clearance from them. The Commission 

is submitting this information collection 

to OMB as an extension (no change in 

the reporting requirement). There is a 

50,520 hourly burden reduction that is 

being reported to OMB. This adjustment 

is due to a reduction in the estimated 

time per response from the last 

submission to the OMB. It is also due to 

respondents’ increased familiarity with 

the new, online filing procedures and 

with the changes in their own systems 

that were necessary to comply with this 

information collection, which 

respondents have gained in experience 

during the two filings required during 

OMB’s one year approval of the data 

collection on a pilot basis. 

This collection improves the 

Commission’s understanding of the 

extent of broadband deployment, 

facilitating the development of 

appropriate broadband policies and the 

Commission’s ability to carry out its 

obligation under section 706 of the 

Telecommunications Act of 1996 to 

‘‘determine whether advanced 

telecommunications capability is being 

deployed to all Americans in a 

reasonable and timely fashion.’’ In 

addition, the Telecommunications Act 

of 1996 directs the Commission to take 

actions to open all participants, 

including new entrants. A central task 

in creating his framework is the opening 

of previously monopolized local 

telecommunications markets. By 

collecting timely and reliable 

information about the pace and extent of 

competition for local telephony service 

in different geographic areas, including 

rural areas, the Commission 

significantly improves the ability to 

evaluate the effectiveness of actions the 

Commission and the states are taking to 

facilitate economic competition in those 

areas. 

The information is used by 

Commission staff to prepare reports that 

help inform consumers and policy 

makers at the federal and state level of 

deployment of competition in the local 

telephone service market and the 

deployment of broadband services. The 

Commission will continue to use the 

information to better inform its 

understanding of broadband 

deployment in conjunction with its 

congressionally mandated section 706 

reports. The Commission also uses the 

data to support this analyses in a variety 

of rulemaking proceedings under the 

Communications Act of 1934, as 

amended. Absent this information 

collection, the Commission would lack 

essential data for assisting it in 

determining the effectiveness of its 

policies and fulfilling its statutory 

responsibilities in accordance with the 

Communications Act of 1934, as 

amended. 

Federal Communications Commission. 

Marlene H. Dortch, 

Secretary, Office of the Secretary, Office of 

Managing Director. 

[FR Doc. 2010–3541 Filed 2–22–10; 8:45 am] 

BILLING CODE 6712–01–S 

FEDERAL COMMUNICATIONS 

COMMISSION 

[AU Docket No. 10–31; DA 10–125] 

Closed Auction of Broadcast 

Construction Permits Scheduled for 

July 20, 2010; Auction 88 Applicants 

Must Provide Supplemental 

Information by March 12, 2010; 

Comment Sought on Competitive 

Bidding Procedures for Auction 88 

AGENCY: Federal Communications 

Commission. 

ACTION: Notice. 

SUMMARY: This document announces the 

auction of certain broadcast FM, AM, 

and FM Translator construction permits 

scheduled to commence on July 20, 

2010 (Auction 88). This document also 

seeks comments on competitive bidding 

procedures for Auction 88. 

DATES: Comments are due on or before 

February 25, 2010, and reply comments 

are due on or before March 11, 2010. 

Auction 88 applicants must provide 

supplemental information by March 12, 

2010. 

ADDRESSES: You may submit comments, 

identified by AU Docket No. 10–31, by 

any of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Federal Communications 

Commission’s Web Site: http:// 

fjallfoss.fcc.gov/ecfs2/. Follow the 

instructions for submitting comments. 

• Paper Filers: Parties who choose to 

file by paper must file an original and 

four copies of each filing. Filings can be 

sent by hand or messenger delivery, by 

commercial overnight courier, or by 

first-class or overnight U.S. Postal 

Service mail. All filings must be 

addressed to the Commission’s 

Secretary, Attn: WTB/ASAD, Office of 

the Secretary, Federal Communications 

Commission. 

• All hand-delivered or messengerdelivered paper filings for the 

Commission’s Secretary must be 

delivered to FCC Headquarters at 445 

12th St., SW., Room TW–A325, 

Washington, DC 20554. All hand 

deliveries must be held together with 

rubber bands or fasteners. Any 

envelopes must be disposed of before 

entering the building. 

• Commercial overnight mail (other 

than U.S. Postal Service Express Mail 

and Priority Mail) must be sent to 9300 

East Hampton Drive, Capitol Heights, 

MD 20743. 

• People with Disabilities: Contact the 

FCC to request reasonable 

accommodations (accessible format 

documents, sign language interpreters, 

CART, etc.) by e-mail: FCC504@fcc.gov 

or telephone: 202–418–0530 or TTY: 

202–418–0432. 

• The Wireless Telecommunications 

Bureau requests that a copy of all 

comments and reply comments be 

submitted electronically to the 

following address: auction88@fcc.gov. 

• People with Disabilities: Contact the 

FCC to request reasonable 

accommodations (accessible format 

documents, sign language interpreters, 

CART, etc.) by e-mail: FCC504@fcc.gov 

or phone: 202–418–0530 or TTY: 202– 

418–0432. 

FOR FURTHER INFORMATION CONTACT: 

Wireless Telecommunications Bureau, 

Auctions and Spectrum Access Division: 

For auction legal questions: Lynne 

Milne and Howard Davenport at (202) 

418–0660. For general auction 

questions: Jeff Crooks at (202) 418–0660 

or Linda Sanderson at (717) 338–2868. 

Media Bureau, Audio Division: For 

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Federal Register / Vol. 75, No. 35 / Tuesday, February 23, 2010 / Notices 8071 

service rule questions: Lisa Scanlan or 

Tom Nessinger at (202) 418–2700. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Auction 88 Comment 

Public Notice released on February 4, 

2010. The complete text of the Auction 

88 Comment Public Notice, including 

Attachments A and B, and related 

Commission documents, are available 

for public inspection and copying from 

8 a.m. to 4:30 p.m. ET Monday through 

Thursday or from 8 a.m. to 11:30 a.m. 

ET on Fridays in the FCC Reference 

Information Center, 445 12th Street SW., 

Room CY–A257, Washington, DC 20554. 

The Auction 88 Comment Public Notice 

and related Commission documents also 

may be purchased from the 

Commission’s duplicating contractor, 

Best Copy and Printing, Inc. (BCPI), 445 

12th Street SW., Room CY–B402, 

Washington, DC 20554, telephone 202– 

488–5300, fax 202–488–5563, or you 

may contact BCPI at its Web site: 

http://www.BCPIWEB.com. When 

ordering documents from BCPI, please 

provide the appropriate FCC document 

number, for example, DA10–125. The 

Auction 88 Comment Public Notice and 

related documents also are available on 

the Internet at the Commission’s Web 

site: http://wireless.fcc.gov/ 

auctions/88/, or by using the search 

function for AU Docket No. 10–31 on 

the ECFS Web page at http:// 

www.fcc.gov/cgb/ecfs/. 

I. Introduction 

1. The Wireless Telecommunications 

and the Media Bureaus (the Bureaus) 

announced an auction of certain 

broadcast FM, AM, and FM Translator 

construction permits and sought 

comment on the procedures to be used 

for this auction. The Auction 88 

Comment Public Notice also establishes 

a deadline for the submission to the 

Commission of an FCC Registration 

Number (FRN) by each applicant to 

permit access to the Commission’s 

electronic short-form application filing 

and auction bidding systems, and 

provides for dismissal of those 

application(s) where the applicant fails 

to provide its FRN by March 12, 2010. 

This auction, which is designated 

Auction 88, is scheduled to commence 

on July 20, 2010. Auction 88 will be a 

closed auction; only those entities listed 

in Attachment A to the Auction 88 

Comment Public Notice will be eligible 

to participate in this auction. 

II. Background 

2. Auction 88 will resolve pending 

closed groups of mutually exclusive 

applications for full-power FM and FM 

translator construction permits that 

have been the subject of various 

Commission and judicial decisions. 

Included in these groups are twelve 

applications that were recently 

amended to specify operation as 

commercial broadcast stations. Auction 

88 will also resolve mutual exclusivity 

between applications for new AM 

stations on 640 kHz and 1230 kHz in the 

Terre Haute, Indiana, area. The 13 FM 

application groups and the two FM 

Translator application groups (all of 

which are former Mixed Groups), and 

the three closed AM application groups 

identified in Attachment A of the 

Auction 88 Comment Public Notice will 

now proceed to auction. 

III. Construction Permits in Auction 88 

3. Auction 88 will offer construction 

permits for 13 commercial FM stations, 

two commercial FM translator stations, 

and three commercial AM stations as 

listed in Attachment A. Attachment A of 

the Auction 88 Comment Public Notice 

also sets forth proposed minimum 

opening bids and upfront payments for 

permits being offered in this auction. 

4. An applicant listed in Attachment 

A of the Auction 88 Comment Public 

Notice may become qualified to bid only 

if it submits an FRN pursuant to the 

instructions set forth in the Auction 88 

Comment Public Notice and meets the 

additional filing, qualification and 

payment requirements, as will be 

further described in future public 

notices. Each qualified bidder will be 

eligible to bid on only those 

construction permits specified for that 

qualified bidder in Attachment A of the 

Auction 88 Comment Public Notice. All 

applicants within these groups of 

mutually exclusive applications (MX 

groups) are directly mutually exclusive 

with one another, therefore no more 

than one construction permit will be 

awarded for each MX group. 

IV. Due Diligence 

5. Potential bidders 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. 

V. FCC Registration Number 

Information Required 

6. Each applicant is required to 

submit its FCC Registration Number 

(FRN) by no later than 5 p.m. Eastern 

Time (ET) on Friday, March 12, 2010, in 

order to be able and eligible to 

participate in Auction 88. Failure to 

submit an FRN pursuant to the 

instructions in the Auction 88 Comment 

Public Notice will result in dismissal of 

the applicant’s application(s) and will 

result in disqualification of the 

applicant from Auction 88. 

7. The Commission’s rules require all 

persons and entities doing business 

with the Commission to obtain a unique 

identifying number called the FRN and 

to provide the FRN with all applications 

or feeable filings, as well as with other 

transactions with the Commission 

involving payment of money. 

Accordingly, use of an FRN is 

mandatory for all applicants for Auction 

88. Submission of an FRN is necessary 

to permit each applicant to log in to the 

FCC’s Integrated Spectrum Auction 

System (ISAS or FCC Auction System) 

and continue to participate in the 

auction process. 

8. Applicants that do not have an FRN 

must obtain one by registering using the 

FCC’s Commission Registration System 

(CORES). To access CORES, point your 

web browser to the FCC Auctions page 

at http://wireless.fcc.gov/auctions/ and 

click the CORES link under Related 

Sites. Next, follow the directions 

provided to register and receive your 

FRN. Be sure to retain this number and 

password and keep such information 

strictly confidential. 

9. To submit an FRN, each applicant 

listed in Attachment A must provide its 

applicant name and FRN in an e-mail to 

auction88@fcc.gov or fax this 

information to Kathryn Hostetter at 

(717) 338–2850. Each applicant’s FRN 

submission also must describe the 

submitter’s relationship to the applicant 

or must describe the basis for the 

submitter’s authorization to submit an 

FRN on behalf of the applicant. The 

Bureaus note that, in some cases, an 

individual or entity may have obtained 

multiple FRNs during the time that the 

applications in Attachment A have been 

pending. For those applicants listed in 

Attachment A with a short-form 

application (FCC Form 175) on file (i.e., 

the closed AM application groups MM– 

AM039–640, MM–AM040–1230 and 

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MM–AM041–750), the applicant must 

submit the FRN associated with the 

Taxpayer Identification Number (TIN) 

that it used in connection with the 

submission of its initially filed shortform application. 

10. For further information, contact 

the FCC ULS Customer Support Hotline 

at (877) 480–3201 option 2, (717) 338– 

2888, or (717) 338–2824 (TTY). The 

hotline is available to assist with 

questions Monday through Friday 8 a.m. 

to 6 p.m. ET. In order to provide better 

service to the public, all calls to the 

hotline are recorded. 

VI. Submission of Auction Short-Form 

Applications 

11. The Bureaus will specify 

procedures for Auction 88 applicants to 

electronically file short-forms 

applications (FCC Form 175) in ISAS in 

a future public notice. Those procedures 

will include instructions for reporting 

changes pursuant to 47 CFR 1.65. 

Applicants are reminded that certain 

changes may be considered a major 

modification of an application and 

could result in dismissal of the 

application and disqualification of an 

applicant from participation in Auction 

88. 

VII. Bureaus Seek Comment on Auction 

Procedures 

A. Auction Structure 

i. Simultaneous Multiple-Round 

Auction Design 

12. The Bureaus proposed to auction 

all construction permits included in 

Auction 88 using the Commission’s 

standard simultaneous multiple-round 

(SMR) 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. 

Typically, bidding remains open on all 

construction permits until bidding stops 

on every construction permit. The 

Bureaus seek comment on this proposal. 

ii. Round Structure 

13. The Commission will conduct 

Auction 88 over the Internet, and 

telephonic bidding will be available as 

well. The toll-free telephone number for 

the Auction Bidder Line will be 

provided to qualified bidders. The 

initial bidding schedule will be 

announced in a public notice to be 

released at least one week before the 

start of the auction. 

14. The auction will consist of 

sequential bidding rounds, each 

followed by the release of round results. 

Details on viewing round results, 

including the location and format of 

downloadable round results files, will 

be included in the same public notice. 

15. The Bureaus proposed to retain 

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. Under this proposal, the 

Bureaus may change 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. The 

Bureaus seek comment on this proposal. 

Commenters may wish to address the 

role of the bidding schedule in 

managing the pace of the auction and 

the tradeoffs in managing auction pace 

by bidding schedule changes, by 

changing the activity requirements or 

bid amount parameters, or by using 

other means. 

iii. Stopping Rule 

16. The Bureaus have discretion to 

establish stopping rules before or during 

multiple round auctions in order to 

terminate the auction within a 

reasonable time. For Auction 88, 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, applies a proactive waiver, or 

withdraws any provisionally winning 

bids (if bid withdrawals are permitted in 

this auction). Thus, unless the Bureaus 

announce alternative procedures, 

bidding will remain open on all 

construction permits until bidding stops 

on every construction permit. 

Consequently, it is not possible to 

determine in advance how long the 

auction will last. 

17. Further, the Bureaus proposed to 

retain the discretion to exercise any of 

the following options during Auction 

88: (1) Use a modified version of the 

simultaneous stopping rule. The 

modified stopping rule would close the 

auction for all construction permits after 

the first round in which no bidder 

applies a waiver, withdraws a 

provisionally winning bid (if 

withdrawals are permitted in this 

auction), or places any new bids on any 

construction permit for which it is not 

the provisionally winning bidder. Thus, 

absent any other bidding activity, a 

bidder placing a new bid on a 

construction permit for which it is the 

provisionally winning bidder would not 

keep the auction open under this 

modified stopping rule; (2) Declare that 

the auction will end after a specified 

number of additional rounds (special 

stopping rule). If the Bureaus invoke 

this special stopping rule, they will 

accept bids in the specified final 

round(s), after which the auction will 

close; and (3) Keep the auction open 

even if no bidder places any new bids, 

applies a waiver, or withdraws any 

provisionally winning bids (if 

withdrawals are permitted in this 

auction). In this event, the effect will be 

the same as if a bidder had applied a 

waiver. The activity rule will apply as 

usual, and a bidder with insufficient 

activity will either lose bidding 

eligibility or use a waiver. 

18. The Bureaus proposed to exercise 

these options only in certain 

circumstances, for example, where the 

auction is proceeding unusually slowly 

or quickly, there is minimal overall 

bidding activity, or it appears likely that 

the auction will not close within a 

reasonable period of time or will close 

prematurely. Before exercising these 

options, the Bureaus are likely to 

attempt to change the pace of the 

auction by, for example, changing the 

number of bidding rounds per day and/ 

or changing minimum acceptable bids. 

The Bureaus proposed to retain the 

discretion to exercise any of these 

options with or without prior 

announcement during the auction. The 

Bureaus seek comment on these 

proposals. 

iv. Information Relating to Auction 

Delay, Suspension, or Cancellation 

19. For Auction 88, the Bureaus 

proposed that, by public notice or by 

announcement during the auction, the 

Bureaus 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. In such cases, the Bureaus, in 

their sole discretion, may elect to 

resume the auction starting from the 

beginning of the current round, resume 

the auction starting from some previous 

round, or cancel the auction in its 

entirety. Network interruption may 

cause the Bureaus to delay or suspend 

the auction. The Bureaus emphasize 

that exercise of this authority is solely 

within the discretion of the Bureaus, 

and its use is not intended to be a 

substitute for situations in which 

bidders may wish to apply their activity 

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Federal Register / Vol. 75, No. 35 / Tuesday, February 23, 2010 / Notices 8073 

rule waivers. The Bureaus seek 

comment on this proposal. 

B. Auction Procedures 

i. Upfront Payments and Bidding 

Eligibility 

20. The Bureaus have delegated 

authority and discretion to determine an 

appropriate upfront payment for each 

construction permit being auctioned, 

taking into account such factors as the 

efficiency of the auction process and the 

potential value of similar spectrum. The 

upfront payment is a refundable deposit 

made by each bidder to establish 

eligibility to bid on construction 

permits. Upfront payments related to 

the specific spectrum subject to auction 

protect against frivolous or insincere 

bidding and provide the Commission 

with a source of funds from which to 

collect payments owed at the close of 

the auction. With these considerations 

in mind, the Bureaus proposed the 

upfront payments set forth in 

Attachment A of the Auction 88 

Comment Public Notice. The Bureaus 

seek comment on this proposal. 

21. The Bureaus further proposed that 

the amount of the upfront payment 

submitted by a bidder will determine 

the bidder’s initial bidding eligibility in 

bidding units. The Bureaus proposed 

that each construction permit be 

assigned a specific number of bidding 

units equal to the upfront payment 

listed in Attachment A of the Auction 

88 Comment Public Notice, on a bidding 

unit per dollar basis. The number of 

bidding units for a given construction 

permit is fixed and does not change 

during the auction as prices change. A 

bidder may place bids on multiple 

construction permits, provided that (1) 

each such construction permit is 

designated for that bidder in 

Attachment A of the Auction 88 

Comment Public Notice, and (2) the 

total number of bidding units associated 

with those construction permits does 

not exceed the bidder’s current 

eligibility. Eligibility cannot be 

increased during the auction; it can only 

remain the same or decrease. Thus, in 

calculating its upfront payment amount 

and hence its initial bidding eligibility, 

an applicant must determine the 

maximum number of bidding units on 

which it may wish to bid (or hold 

provisionally winning bids) in any 

single round, and submit an upfront 

payment amount covering that total 

number of bidding units. Provisionally 

winning bids are bids that would 

become final winning bids if the auction 

were to close in that given round. 

ii. Activity Rule 

22. In order to ensure that the auction 

closes within a reasonable period of 

time, an activity rule requires bidders to 

bid actively throughout the auction, 

rather than wait until late in the auction 

before participating. 

23. The Bureaus proposed a single 

stage auction with the following activity 

requirement: In each round of the 

auction, a bidder desiring to maintain 

its current bidding eligibility is required 

to be active on one hundred (100) 

percent of its bidding eligibility. A 

bidder’s activity in a round will be the 

sum of the bidding units associated with 

any construction permits upon which it 

places bids during the current round 

and the bidding units associated with 

any construction permits for which it 

holds provisionally winning bids. 

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. The Bureaus seek 

comment on this proposal. 

iii. Activity Rule Waivers and Reducing 

Eligibility 

24. Use of an activity rule waiver 

preserves the bidder’s eligibility despite 

the bidder’s activity in the current 

round being below the required 

minimum level. An activity rule waiver 

applies to an entire round of bidding, 

not to a particular construction permit. 

Activity rule waivers can be either 

proactive or automatic and are 

principally a mechanism for auction 

participants to avoid the loss of bidding 

eligibility in the event that exigent 

circumstances prevent them from 

bidding in a particular round. 

25. The FCC Auction System assumes 

that a bidder that does not meet the 

activity requirement would prefer to use 

an activity rule waiver (if available) 

rather than lose bidding eligibility. 

Therefore, the system will automatically 

apply a waiver at the end of any bidding 

round in which a bidder’s activity level 

is below the minimum required unless 

(1) the bidder has no activity rule 

waivers remaining; or (2) the bidder 

overrides the automatic application of a 

waiver by reducing eligibility, thereby 

meeting the activity requirement. If a 

bidder that is eligible to bid on only one 

construction permit has no waivers 

remaining and does not satisfy the 

required activity level, its eligibility will 

be permanently reduced, eliminating 

the bidder from the auction. If a bidder 

that is eligible to bid on more than one 

construction permit has no waivers 

remaining and does not satisfy the 

required activity level, its current 

eligibility will be permanently reduced, 

possibly curtailing or eliminating the 

bidder’s ability to place additional bids 

in the auction. 

26. A bidder that is eligible to bid on 

more than one construction permit and 

has insufficient activity may wish to 

reduce its bidding eligibility rather than 

use an activity rule waiver. If so, the 

bidder must affirmatively override the 

automatic waiver mechanism during the 

bidding round by using the reduce 

eligibility function in the FCC Auction 

System. In this case, the bidder’s 

eligibility is permanently reduced to 

bring the bidder into compliance with 

the activity rule. Reducing eligibility is 

an irreversible action; once eligibility 

has been reduced, a bidder will not be 

permitted to regain its lost bidding 

eligibility, even if the round has not yet 

closed. 

27. Under the proposed simultaneous 

stopping rule, a bidder may apply an 

activity rule waiver proactively as a 

means to keep the auction open without 

placing a bid. If a bidder proactively 

applies an activity rule waiver (using 

the apply waiver function in the FCC 

Auction System) during a bidding round 

in which no bids are placed or 

withdrawn (if bid withdrawals are 

permitted in this auction), the auction 

will remain open and the bidder’s 

eligibility will be preserved. An 

automatic waiver applied by the FCC 

Auction System in a round in which 

there are no new bids, withdrawals (if 

bid withdrawals are permitted in this 

auction), or proactive waivers will not 

keep the auction open. A bidder cannot 

apply a proactive waiver after bidding 

in a round, and applying a proactive 

waiver will preclude a bidder from 

placing any bids in that round. 

Applying a waiver is irreversible; once 

a proactive waiver is submitted, that 

waiver cannot be unsubmitted, even if 

the round has not yet closed. 

28. The Bureaus proposed that each 

bidder in Auction 88 be provided with 

three activity rule waivers that may be 

used at the bidder’s discretion during 

the course of the auction. The Bureaus 

seek comment on this proposal. 

iv. Reserve Price or Minimum Opening 

Bids 

29. The Bureaus proposed to establish 

minimum opening bid amounts for 

Auction 88. The Bureaus believe a 

minimum opening bid amount, which 

has been used in other broadcast 

auctions, is an effective bidding tool for 

accelerating the competitive bidding 

process. The Bureaus do not propose to 

establish a separate reserve price for the 

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construction permits to be offered in 

Auction 88. 

30. For Auction 88, the Bureaus 

proposed minimum opening bid 

amounts determined by taking into 

account the type of service and class of 

facility offered, market size, population 

covered by the proposed broadcast 

facility, and recent broadcast transaction 

data. A proposed minimum opening bid 

amount for each construction permit 

available in Auction 88 is set forth in 

Attachment A of the Auction 88 

Comment Public Notice. The Bureaus 

seek comment on these proposals. 

31. If commenters believe that these 

minimum opening bid amounts will 

result in unsold construction permits, 

are not reasonable amounts, or should 

instead operate as reserve prices, they 

should explain why this is so, and 

comment on the desirability of an 

alternative approach. Commenters are 

advised to support their claims with 

valuation analyses and suggested 

amounts or formulas for reserve prices 

or minimum opening bids. In 

establishing the minimum opening bid 

amounts, the Bureaus particularly seek 

comment on factors that could 

reasonably have an impact on valuation 

of the broadcast spectrum, including the 

type of service and class of facility 

offered, market size, population covered 

by the proposed broadcast FM, AM and 

FM Translator station and any other 

relevant factors. 

v. Bid Amounts 

32. 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 this proposal, the FCC 

Auction System interface will list the 

acceptable bid amounts for each 

construction permit. 

33. 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 for 

the construction permit. After there is a 

provisionally winning bid for a 

construction permit, the minimum 

acceptable bid amount will be a certain 

percentage higher. That is, the 

minimum acceptable bid amount will be 

calculated by multiplying the 

provisionally winning bid amount times 

one plus the minimum acceptable bid 

percentage. If, for example, the 

minimum acceptable bid percentage is 

10 percent, the minimum acceptable bid 

amount will equal (provisionally 

winning bid amount) * (1.10), rounded. 

If bid withdrawals are permitted in this 

auction, in the case of a construction 

permit for which the provisionally 

winning bid has been withdrawn, the 

minimum acceptable bid amount will 

equal the second highest bid received 

for the construction permit. 

34. The eight additional bid amounts 

are calculated using the minimum 

acceptable bid amount and a bid 

increment percentage, which need not 

be the same as the percentage used to 

calculate the minimum acceptable bid 

amount. The first additional acceptable 

bid amount equals the minimum 

acceptable bid amount times one plus 

the bid increment percentage, rounded. 

If, for example, the bid increment 

percentage is 5 percent, the calculation 

is (minimum acceptable bid amount) * 

(1 + 0.05), rounded, or (minimum 

acceptable bid amount) * 1.05, rounded; 

the second additional acceptable bid 

amount equals the minimum acceptable 

bid amount times one plus two times 

the bid increment percentage, rounded, 

or (minimum acceptable bid amount) * 

1.10, rounded; etc. The Bureaus will 

round the results using the 

Commission’s standard rounding 

procedures for auctions. 

35. For Auction 88, the Bureaus 

proposed to use a minimum acceptable 

bid percentage of 10 percent. This 

means that the minimum acceptable bid 

amount for a construction permit will be 

approximately 10 percent greater than 

the provisionally winning bid amount 

for the construction permit. To calculate 

the additional acceptable bid amounts, 

the Bureaus proposed to use a bid 

increment percentage of 5 percent. 

36. The Bureaus 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 retain the 

discretion to do so on a construction 

permit-by-construction permit basis. 

The Bureaus also 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. For example, the Bureaus 

could set a $10,000 limit on increases in 

minimum acceptable bid amounts over 

provisionally winning bids. Thus, if 

calculating a minimum acceptable bid 

using the minimum acceptable bid 

percentage results in a minimum 

acceptable bid amount that is $12,000 

higher than the provisionally winning 

bid on a construction permit, the 

minimum acceptable bid amount would 

instead be capped at $10,000 above the 

provisionally winning bid. The Bureaus 

seek comment on the circumstances 

under which the Bureaus should 

employ such a limit, factors the Bureaus 

should consider when determining the 

dollar amount of the limit, and the 

tradeoffs in setting such a limit or 

changing other parameters, such as 

changing the minimum acceptable bid 

percentage, the bid increment 

percentage, or the number of acceptable 

bid amounts. If the Bureaus exercise this 

discretion, they will alert bidders by 

announcement in the FCC Auction 

System during the auction. The Bureaus 

seek comment on these proposals. 

vi. Provisionally Winning Bids 

37. Provisionally winning bids are 

bids that would become final winning 

bids if the auction were to close in that 

given round. At the end of a bidding 

round, a provisionally winning bid for 

each construction permit will be 

determined based on the highest bid 

amount received for the construction 

permit. In the event of identical high bid 

amounts being submitted on a 

construction permit in a given round 

(i.e., tied bids), the Bureaus will use a 

random number generator to select a 

single provisionally winning bid from 

among the tied bids. (Each bid is 

assigned a random number, and the tied 

bid with the highest random number 

wins the tiebreaker.) The remaining 

bidders, as well as the provisionally 

winning bidder, 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. If any bids are received on 

the construction permit in a subsequent 

round, the provisionally winning bid 

again will be determined by the highest 

bid amount received for the 

construction permit. 

38. A provisionally winning bid will 

remain the provisionally winning bid 

until there is a higher bid on the 

construction permit at the close of a 

subsequent round, unless the 

provisionally winning bid is withdrawn 

(if bid withdrawals are permitted in this 

auction). Bidders are reminded that 

provisionally winning bids count 

toward activity for purposes of the 

activity rule. 

vii. Bid Removal and Bid Withdrawal 

39. For Auction 88, the Bureaus 

proposed the following bid removal 

procedures. Before the close of a 

bidding round, a bidder has the option 

of removing any bid placed in that 

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Federal Register / Vol. 75, No. 35 / Tuesday, February 23, 2010 / Notices 8075 

round. By removing selected bids in the 

FCC Auction System, a bidder may 

effectively unsubmit any bid placed 

within that round. In contrast to the bid 

withdrawal provisions a bidder 

removing a bid placed in the same 

round is not subject to a withdrawal 

payment. Once a round closes, a bidder 

may no longer remove a bid. The 

Bureaus seek comment on this bid 

removal proposal. 

40. The Bureaus also seek comment 

on whether bid withdrawals should be 

permitted in Auction 88. When 

permitted in an auction, bid 

withdrawals provide a bidder with the 

option of withdrawing bids placed in 

prior rounds that have become 

provisionally winning bids. A bidder 

may withdraw its provisionally winning 

bids using the withdraw bids function 

in the FCC Auction System. If 

permitted, a bidder that withdraws its 

provisionally winning bid(s) is subject 

to the bid withdrawal payment 

provisions of the Commission rules. 

41. In Auction 88, bidders will have 

limited opportunity to aggregate 

construction permits because of the preestablished closed MX Groups. 

Moreover, bid withdrawals, particularly 

those made late in Auction 88, could 

result in delays in licensing new 

broadcast FM, AM and FM Translator 

stations and attendant delays in the 

offering of new broadcast service to the 

public. The Commission also has noted 

that in some instances bidders may seek 

to withdraw bids for improper purposes. 

Based on this Commission guidance, on 

the experience of the Bureaus with past 

broadcast auctions, and on the potential 

for delays in providing broadcast service 

to the public, for this auction the 

Bureaus proposed to prohibit bidders 

from withdrawing any bids after the 

round has closed in which bids were 

placed. The Bureaus seek comment on 

this proposal. 

C. Post-Auction Payments 

i. Interim Withdrawal Payment 

Percentage 

42. If withdrawals are allowed in this 

auction, the Bureaus seek comment on 

the appropriate percentage of a 

withdrawn bid that should be assessed 

as an interim withdrawal payment, in 

the event that a final withdrawal 

payment cannot be determined at the 

close of the auction. In general, the 

Commission’s rules provide that a 

bidder that withdraws a bid during an 

auction is subject to a withdrawal 

payment equal to the difference between 

the amount of the withdrawn bid and 

the amount of the winning bid in the 

same or a subsequent auction. However, 

if a construction permit for which a bid 

has been withdrawn does not receive a 

subsequent higher bid or winning bid in 

the same auction, the final withdrawal 

payment cannot be calculated until a 

corresponding construction permit 

receives a higher bid or winning bid in 

a subsequent auction. When that final 

payment cannot yet be calculated, the 

bidder responsible for the withdrawn 

bid is assessed an interim bid 

withdrawal payment, which will be 

applied toward any final bid withdrawal 

payment that is ultimately assessed. 

43. The Commission’s rules provide 

that, in advance of each auction, a 

percentage shall be established between 

three percent and twenty percent of the 

withdrawn bid to be assessed as an 

interim bid withdrawal payment. The 

Commission has indicated that the level 

of the interim withdrawal payment in a 

particular auction will be based on the 

nature of the service and the inventory 

of the construction permits being 

offered. The Commission noted that it 

may impose a higher interim 

withdrawal payment percentage to deter 

the anti-competitive use of withdrawals 

when, for example, there are few 

synergies to be captured by combining 

construction permits. 

44. Applying the reasoning that a 

higher interim withdrawal payment 

percentage is appropriate when 

aggregation of construction permits is 

not expected, as with the construction 

permits subject to competitive bidding 

in Auction 88, if the Bureaus allow bid 

withdrawals in this auction, the Bureaus 

proposed the maximum interim 

withdrawal payment allowed under the 

current rules. Specifically, the Bureaus 

proposed to establish an interim bid 

withdrawal payment of twenty percent 

of the withdrawn bid for this auction. 

The Bureaus seek comment on this 

proposal. 

ii. Additional Default Payment 

Percentage 

45. Any winning bidder that defaults 

or is disqualified after the close of an 

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) is 

liable for a default payment under 47 

CFR 1.2104(g)(2). This payment consists 

of 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. 

46. The Commission’s rules provide 

that, in advance of each auction, a 

percentage shall be established between 

three percent and twenty percent of the 

applicable bid to be assessed as an 

additional default payment. The 

Commission has indicated that the level 

of the additional payment in a particular 

auction will be based on the nature of 

the service and the inventory of the 

construction permits being offered. As 

the Commission has indicated, the level 

of this payment in each case will be 

based on the nature of the service and 

the inventory of the construction 

permits being offered. 

47. As previously noted by the 

Commission, defaults weaken the 

integrity of the auction process and may 

impede the deployment of service to the 

public, and an additional default 

payment of more than the previous 

three percent will be more effective in 

deterring defaults. In light of these 

considerations for Auction 88, the 

Bureaus proposed an additional default 

payment of twenty percent of the 

relevant bid. The Bureaus seek comment 

on this proposal. 

48. This proceeding has been 

designated as a permit-but-disclose 

proceeding in accordance with the 

Commission’s ex parte rules. Persons 

making oral ex parte presentations are 

reminded that memoranda summarizing 

the presentations must contain 

summaries of the substance of the 

presentations and not merely a listing of 

the subjects discussed. More than a one 

or two sentence description of the views 

and arguments presented is generally 

required. Other rules pertaining to oral 

and written ex parte presentations in 

permit-but-disclose proceedings are set 

forth in 47 CFR 1.1206(b). 

Auction 88 Applicants 

Albert Benavides 

Amor Radio Group Corp. 

Aritaur Communications, Inc. 

Arkansas Valley Broadcasting, LLC 

BBK Broadcasting 

Big Sky Company 

Birach Broadcasting Corporation 

Boat Of Steam Broadcasting 

Bott Broadcasting Company 

Central Michigan University 

Colorado Alpine Broadcasting Company 

Contemporary Media Inc. 

Coyote Communications, Inc. 

CTS Communications Development 

Corp. 

Darby Radio Enterprises 

David Fleisher & Melissa Krantz 

Directel Inc. 

EB Needles LLC 

Educational Media Foundation 

mstockstill on DSKH9S0YB1PROD with NOTICES

8076 Federal Register / Vol. 75, No. 35 / Tuesday, February 23, 2010 / Notices 

Eric P. Straus 

Evandel Ministries Inc. 

Evangel Ministries, Incorporated 

Fort Bend Broadcasting Company Inc. 

Four Corners Broadcasting LLC 

George S. Flinn, Jr. 

Good News Media Inc. 

Grace Communications L.C. 

Harry Media 

Hawkeye Communications, Inc. 

Jem Broadcasting Co., Inc. 

KM Communications, Inc. 

KRJ Company 

La Capra Corporation 

Lancer Media 

Marist College 

Metro Broadcasters-Texas Inc. 

Metro North Communications Inc. 

Michael R. Walton Jr. 

Mid-America Radio Group Inc. 

MTD, Inc. 

Music Express Broadcasting, Corp. 

Music Ministries, Inc. 

Oxford Radio Inc. 

Peace Broadcasting Network 

Penn-Jersey Educational Radio Corp. 

Poor Mountain Broadcasting 

Positive Alternative Radio, Inc. 

Powell Meredith Communications 

Company 

Radio Rosendale 

Ramar Communications Inc. 

Ramsey Leasing, Inc. 

Robert Durango LLC 

Robert M. McDaniel 

Rocky Mountain Radio Company LLC 

Romar Communications, Inc. 

Rosen Broadcasting, Inc. 

S.I. Broadcasting 

Sacred Heart University, Inc. 

Salija Bokram/Michael J. St. Cyr 

Sarkes Tarzian Inc. 

South Shore Broadcasting, inc. 

Southern Cultural Foundation 

Steven Dinetz 

The MacDonald Broadcasting Company 

Tri-County Radio, Incorporated 

William S. Poorman 

Willtronics Broadcasting Co. 

Word Power, Inc. 

WTCM Radio, Inc. 

Yampa Valley Broadcasting Inc. 

Federal Communications Commission. 

William W. Huber, 

Associate Chief, Auctions and Spectrum 

Access Division, WTB. 

[FR Doc. 2010–3583 Filed 2–22–10; 8:45 am] 

BILLING CODE 6712–01–P 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

Agency Information Collection 

Activities: Renewal of a Currently 

Approved Collection (3064–0127); 

Comment Request 

AGENCY: Federal Deposit Insurance 

Corporation (FDIC). 

ACTION: Notice and request for comment. 

SUMMARY: In accordance with 

requirements of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.), the FDIC may not conduct or 

sponsor, and the respondent is not 

required to respond to, an information 

collection unless it displays a currently 

valid Office of Management and Budget 

(OMB) control number. The FDIC 

hereby gives notice that it is seeking 

public comment on the proposed 

renewal of its Occasional Qualitative 

Surveys information collection (OMB 

No. 3064–0127). At the end of the 

comment period, any comments and 

recommendations received will be 

analyzed to determine the extent to 

which the FDIC should modify the 

collection prior to submission to OMB 

for review and approval. 

DATES: Comments must be submitted on 

or before April 26, 2010. 

ADDRESSES: Interested parties are 

invited to submit written comments. All 

comments should refer to the name of 

the collection. Comments may be 

submitted by any of the following 

methods: 

• http://www.FDIC.gov/regulations/ 

laws/federal/notices.html. 

• E-mail: comments@fdic.gov. 

• Mail: Gary A. Kuiper 

(202.898.3877), Counsel, Federal 

Deposit Insurance Corporation, F–1072, 

550 17th Street, NW., Washington, DC 

20429. 

• Hand Delivery: Comments may be 

hand-delivered to the guard station at 

the rear of the 550 17th Street Building 

(located on F Street), on business days 

between 7 a.m. and 5 p.m. 

A copy of the comments may also be 

submitted to the FDIC Desk Officer, 

Office of Information and Regulatory 

Affairs, Office of Management and 

Budget, New Executive Office Building, 

Room 10235, Washington, DC 20503. 

FOR FURTHER INFORMATION CONTACT: For 

further information about this renewal, 

please contact Gary A. Kuiper, by 

telephone at 202.898.3877 or by mail at 

the address identified above. 

SUPPLEMENTARY INFORMATION: The FDIC 

is proposing to renew this collection: 

Title: Occasional Qualitative Surveys. 

Estimated Number of Respondents 

and Burden Hours: 

FDIC document Number of 

surveys 

Hours per survey Number of respondents Burden hours 

Occasional Qualitative Surveys ....................................................................... 15 1 850 12,750 

Total .......................................................................................................... 15 1 850 12,750 

General Description of Collection: The 

information collected in these surveys is 

anecdotal in nature, that is, samples are 

not necessarily random, the results are 

not necessarily representative of a larger 

class of potential respondents, and the 

goal is not to produce a statistically 

valid and reliable database. Rather, the 

surveys are expected to yield anecdotal 

information about the particular 

experiences and opinions of members of 

the public, primarily staff at respondent 

banks or bank customers. The 

information is used to improve the way 

FDIC relates to its clients, to develop 

agendas for regulatory or statutory 

change, and in some cases to simply 

learn how particular policies or 

programs are working, or are perceived 

in particular cases. 

Current Action: The FDIC is 

proposing to renew this information 

collection. 

Request for Comment 

Comments are invited on: (a) Whether 

this collection of information is 

necessary for the proper performance of 

the FDIC’s functions, including whether 

the information has practical utility; (b) 

the accuracy of the estimate of the 

burden of the information collection, 

including the validity of the 

methodology and assumptions used; (c) 

ways to enhance the quality, utility, and 

clarity of the information to be 

collected; and (d) ways to minimize the 

burden of the information collection on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

All comments will become a matter of 

public record. 

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