[Federal Register Volume 65, Number 123 (Monday, June 26, 2000)]
[Notices]
[Pages 39400-39406]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16099]


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FEDERAL COMMUNICATIONS COMMISSION

[Report No. AUC-00-80-B (Auction No. 80); DA 00-1226]


Auction Notice and Filing Requirements for a New Television 
Station Construction Permit, Channel 52 at Blanco, TX; Auction 
Scheduled for July 12, 2000; Minimum Opening Bids and Other Procedural 
Issues

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This document announces the auction and procedures governing 
the auction of licenses for a new television station construction 
permit at Blanco, Texas (``Auction No. 80''), scheduled to commence on 
July 12, 2000.

DATES: Auction No. 80 is scheduled for July 12, 2000.

FOR FURTHER INFORMATION CONTACT: Kenneth Burnley, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, at (202) 418-
0660; Shaun Maher, Audio Services Division, Mass Media Bureau, at (202) 
418-2324.

SUPPLEMENTARY INFORMATION: This is a summary of a public notice 
released June 5, 2000 (``Auction Public Notice''). The complete text, 
including all attachments, of the Auction Public Notice is available 
for inspection and copying during normal business hours in the FCC 
Reference Center (Room CY-A257), 445 12th Street, SW, Washington, DC. 
It may also be purchased from the Commission's copy contractor, 
International Transcription Services, Inc., (ITS, Inc.) 1231 20th 
Street, NW, Washington, DC 20035, (202) 857-3800. It is also available 
on the Commission's website at http://www.fcc.gov/wtb/auctions.

[[Page 39401]]

I. General Information

A. Introduction

    1. The Auction Public Notice announces the procedures and minimum 
opening bid for the upcoming auction of a construction permit for 
Channel 52 at Blanco, Texas (``Auction No. 80''). On May 12, 2000, the 
Mass Media Bureau (``MMB'') and the Wireless Telecommunications Bureau 
(``WTB'') (collectively, the ``Bureaus'') released the Auction No. 80 
Comment Public Notice, seeking comment on the establishment of reserve 
price and/or minimum opening bid for Auction No. 80, in accordance with 
the Balanced Budget Act of 1997. See Auction of Construction Permit For 
New Television Station Channel 52 at Blanco, Texas Scheduled for July 
12, 2000; Comment Sought on Reserve Price or Minimum Opening Bid and 
Other Auction Procedural Issues, Public Notice, DA 00-1069 (released 
May 12, 2000) (``Auction No. 80 Comment Public Notice''). See also 
section 3002(a), Balanced Budget Act of 1997, Public Law 105-33, 111 
Stat. 251 (1997) (``Budget Act''); 47 U.S.C. 309(j)(4)(F). In addition, 
the Bureaus sought comment on a number of procedures to be used in 
Auction No. 80. The Bureaus received no comments in response to the 
Auction No. 80 Comment Public Notice.
i. Construction Permit To Be Auctioned
    2. The construction permit available in Auction No. 80 is for a new 
analog, full-power, television station on Channel 52 at Blanco, Texas. 
This construction permit is the subject of pending, mutually exclusive 
short-form applications (FCC Form 175) and participation in this 
auction is limited to the applicants identified in Attachment A of the 
Auction Public Notice. The minimum opening bid and upfront payment for 
this construction permit are also included on Attachment A of the 
Auction Public Notice.

B. Rules and Disclaimers

i. Relevant Authority
    3. Prospective bidders must familiarize themselves thoroughly with 
the Commission's rules relating to broadcast auctions, contained in 
title 47, part 73 of the Code of Federal Regulations. Prospective 
bidders must also be thoroughly familiar with the procedures, terms and 
conditions contained in the Auction Public Notice, the Auction No. 80 
Comment Public Notice, the Broadcast First Report and Order (see 
Implementation of Section 309(j) of the Communications Act--Competitive 
Bidding for Commercial Broadcast and Instructional Television Fixed 
Service Licenses, MM Docket No. 97-234, GC Docket No. 92-52 and GEN 
Docket No. 90-264, First Report and Order, 63 FR 48615 (September 11, 
1998) (``Broadcast First Report and Order'')), the Broadcast 
Reconsideration Order (see Implementation of Section 309(j) of the 
Communications Act--Competitive Bidding for Commercial Broadcast and 
Instructional Television Fixed Service Licenses, MM Docket No. 97-234, 
Memorandum Opinion and Order, 64 FR 56974 (October 22, 1999) 
(``Broadcast Reconsideration Order'')), and the New Entrant Bidding 
Credit Reconsideration Order (see Implementation of Section 309(j) of 
the Communications Act--Competitive Bidding for Commercial Broadcast 
and Instructional Television Fixed Service Licenses, MM Docket No. 97-
234, Memorandum Opinion and Order, 64 FR 44856 (August 18, 1999) (``New 
Entrant Bidding Credit Reconsideration Order''). Potential bidders must 
also familiarize themselves with part 1, subpart Q of the Commission's 
rules concerning competitive bidding proceedings.
    4. The terms contained in the Commission's rules, relevant orders 
and public notices are not negotiable. The Commission may amend or 
supplement the information contained in our public notices at any time, 
and will issue public notices to convey any new or supplemental 
information to bidders. It is the responsibility of all prospective 
bidders to remain current with all Commission rules and with all public 
notices pertaining to this auction. Copies of most Commission 
documents, including public notices, can be retrieved from the FCC 
Internet node via anonymous <a href="/cdn-cgi/l/email-protection#27415357674153570941444409404851"><span class="__cf_email__" data-cfemail="b6d0c2c6f6d0c2c698d0d5d598d1d9c0">[email protected]</span></a> or the FCC Auctions World 
Wide Web site at http://www.fcc.gov/wtb/auctions. Additionally, 
documents may be obtained for a fee by calling the Commission's copy 
contractor, International Transcription Service, Inc. (ITS), at (202) 
314-3070. When ordering documents from ITS, please provide the 
appropriate FCC number.
ii. Prohibition of Collusion
    5. Bidders are reminded that Sec. 1.2105(c) of the Commission's 
rules prohibits short-form applicants from communicating with each 
other during the auction about bids, bidding strategies, or settlements 
unless they have identified each other as parties with whom they have 
entered into agreements under Sec. 1.2105(a)(2)(viii). See 47 CFR 
1.2105(c). For Auction No. 80, this prohibition became effective at the 
short-form application deadline (February 1, 2000) and will end on the 
down payment due date after the auction (to be announced in a future 
public notice). Applicants certified compliance with 47 CFR1.2105(c) 
when they signed their short-form applications. However, the Bureau 
cautions that merely filing a certifying statement as part of an 
application will not outweigh specific evidence that collusive behavior 
has occurred, nor will it preclude the initiation of an investigation 
when warranted.
    6. Bidders in Auction No. 80 are encouraged not to use the same the 
same individual as an authorized bidder. A violation of the anti-
collusion rule could occur if an individual acts as the authorized 
bidder for two or more competing applicants, and conveys information 
concerning the substance of bids or bidding strategies between the 
bidders he/she is authorized to represent in the auction. Also, if the 
authorized bidders are different individuals employed by the same 
organization (e.g., law firm or consulting firm), a violation could 
similarly occur.
    7. In addition, Sec. 1.65 of the Commission's rules require an 
applicant to maintain the accuracy and completeness of information 
furnished in its pending application and to notify the Commission 
within 30 days of any substantial change that may be of decisional 
significance to that application. See 47 CFR 1.65. Thus, Sec. 1.65 
requires an auction applicant to notify the Commission of any violation 
of the anti-collusion rules immediately upon learning of such 
violation. A summary listing of documents from the Commission and the 
Bureau addressing the application of the anti-collusion rules may be 
found in Attachment E of the Auction Public Notice.
iii. Due Diligence
    8. Potential bidders are solely responsible for investigating and 
evaluating all technical and market place factors that may have a 
bearing on the value of the Blanco television facility. The FCC makes 
no representations or warranties about the use of this spectrum for 
particular services. Applicants should be aware that a FCC auction 
represents an opportunity to become a FCC permittee in the broadcast 
service, subject to certain conditions and regulations. A FCC auction 
does not constitute an endorsement by the FCC of any particular 
service, technology, or product, nor does a FCC construction permit or 
license constitute a guarantee of business success. Applicants should 
perform their individual due diligence

[[Page 39402]]

before proceeding as they would with any new business venture.
    9. Potential bidders are strongly encouraged to conduct their own 
research prior to Auction No. 80 in order to determine the existence of 
pending proceedings that might affect their decisions regarding 
participation in the auction. Participants in Auction No. 80 are 
strongly encouraged to continue such research during the auction.
    10. Potential bidders should note that, in November 1999, Congress 
enacted the Community Broadcasters Protection Act of 1999 (CBPA) which 
established a new Class A television service. In response to the 
enactment of the CBPA, the Commission adopted rules to establish the 
new Class A television service. See Establishment of a Class A 
Television Service, MM Docket No. 00-10, Report and Order, 65 FR 29985 
(May 10, 2000) (``Class A Report and Order''). In the Class A Report 
and Order, the Commission adopted rules to provide interference 
protection for eligible Class A television stations from new full power 
television stations. Given the Commission's ruling in the Class A 
Report and Order, the winning bidder in the auction for the new full 
power television station on Channel 52 at Blanco, Texas, upon 
submission of its long-form application (FCC Form 301), will have to 
provide interference protection to qualified Class A television 
stations. Therefore, potential bidders are encouraged to perform 
engineering studies to determine the existence of Class A television 
stations and their effect on the ability to operate a full power 
television station on Channel 52 at Blanco, Texas. Information about 
the identity and location of Class A television stations is available 
from the Mass Media Bureau's Consolidated Database System (CDBS) 
(public access available at: http://www.fcc.gov/mmb) and on the Mass 
Media Bureau's Class A television web page: http://www.fcc.gov/mmb/vsd/files/classa.html.
iv. Bidder Alerts
    11. As is the case with many business investment opportunities, 
some unscrupulous entrepreneurs may attempt to use Auction No. 80 to 
deceive and defraud unsuspecting investors. Common warning signals of 
fraud include the following:
    <bullet> The first contact is a ``cold call'' from a telemarketer, 
or is made in response to an inquiry prompted by a radio or television 
infomercial.
    <bullet> The offering materials used to invest in the venture 
appear to be targeted at IRA funds, for example by including all 
documents and papers needed for the transfer of funds maintained in IRA 
accounts.
    <bullet> The amount of the minimum investment is less than $25,000.
    <bullet> The sales representative makes verbal representations 
that: (a) The Internal Revenue Service (``IRS''), Federal Trade 
Commission (``FTC''), Securities and Exchange Commission (``SEC''), 
FCC, or other government agency has approved the investment; (b) the 
investment is not subject to state or federal securities laws; or (c) 
the investment will yield unrealistically high short-term profits. In 
addition, the offering materials often include copies of actual FCC 
releases, or quotes from FCC personnel, giving the appearance of FCC 
knowledge or approval of the solicitation.
    12. Information about deceptive telemarketing investment schemes is 
available from the FTC at (202) 326-2222 and from the SEC at (202) 942-
7040. Complaints about specific deceptive telemarketing investment 
schemes should be directed to the FTC, the SEC, or the National Fraud 
Information Center at (800) 876-7060. Consumers who have concerns about 
specific proposals may also call the FCC National Call Center at (888) 
CALL-FCC ((888) 225-5322).
v. National Environmental Policy Act (NEPA) Requirements
    13. The permittee must comply with the Commission's rules regarding 
the National Environmental Policy Act (NEPA). The construction of a 
broadcast antenna facility is a federal action and the permittee must 
comply with the Commission's NEPA rules for each such facility. See 47 
CFR 1.1305-1.1319. The Commission's NEPA rules require that, among 
other things, the permittee consult with expert agencies having NEPA 
responsibilities, including the U.S. Fish and Wildlife Service, the 
State Historic Preservation Office, the Army Corp of Engineers and the 
Federal Emergency Management Agency (through the local authority with 
jurisdiction over floodplains). The permittee must prepare 
environmental assessments for facilities that may have a significant 
impact in or on wilderness areas, wildlife preserves, threatened or 
endangered species or designated critical habitats, historical or 
archaeological sites, Indian religious sites, floodplains, and surface 
features. The permittee must also prepare environmental assessments for 
facilities that include high intensity white lights in residential 
neighborhoods or excessive radio frequency emission.

C. Auction Specifics

i. Auction Date
    14. Auction No. 80 will begin on July 12, 2000. 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 will be conducted on each business day until bidding has 
stopped on the construction permit.
ii. Auction Title
    15. Auction No. 80--Blanco, Texas Broadcast
iii. Bidding Methodology
    16. The bidding methodology for Auction No. 80 will be a multiple-
round, ascending auction. Bidding will be permitted only from remote 
locations, either electronically (by computer) or telephonically.
iii. Pre-Auction Dates and Deadlines
    <bullet> Auction Seminar--June 16, 2000
    <bullet> Upfront Payments (via wire transfer)--June 26, 2000; 6 
p.m. ET
    <bullet> Orders for Remote Bidding Software--June 26, 2000; 5:30 
p.m. ET
    <bullet> Mock Auction--July 10, 2000
    <bullet> Auction Begins--July 12, 2000
iv. Requirements for Participation
    17. Those wishing to participate in the auction must:
    <bullet> Be listed on Attachment A of this public notice.
    <bullet> Submit a sufficient upfront payment and an FCC Remittance 
Advice Form (FCC Form 159) by 6 p.m. ET, June 26, 2000.
    <bullet> Comply with all provisions outlined in this public notice.
v. General Contact Information
    <bullet> FCC Auctions Hotline: (888) 225-5322, Press Option #2 or 
direct (717) 338-2888. Hours of service: 8 a.m.-5:30 p.m. ET.
    <bullet> Auction Legal Information: Auctions and Industry Analysis 
Division, Legal Branch (202) 418-0660.
    <bullet> Licensing information: Mass Media Bureau, Video Services 
Division: (202) 418-1600.
    <bullet> FCC Auctions Technical Support Hotline: (202) 414-1250 
(Voice), (202) 414-1255 (TTY). Hours of service: 8 a.m.-6 p.m. ET.
    <bullet> Payment Information: FCC Auctions Accounting Branch: (202) 
418-1995.
    <bullet> FCC Copy Contractor: International Transcription Services, 
Inc., 445 12th Street, SW Room CY-B400, Washington, DC 20554, (202) 
314-3070.
    <bullet> Press Information: Meribeth McCarrick (202) 418-0654.
    <bullet> FCC Internet Sites:


[[Page 39403]]


http://www.fcc.gov/wtb/auctions
http://www.fcc.gov
ftp://ftp.fcc.gov

II. Short-Form (FCC Form 175) Application Requirements

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

    18. Applicants may make only minor changes to their short-form 
applications. Applicants are not permitted to make major modifications 
to their applications (e.g., change the certifying official or change 
control of the applicant or change bidding credits). See 47 CFR 1.2105. 
Permissible minor changes include, for example, deletion and addition 
of authorized bidders (to a maximum of three), fax number, and revision 
of exhibits. Applicants should notify the Commission of these changes 
in a letter to Amy Zoslov, Chief, Auctions and Industry Analysis 
Division, Wireless Telecommunications Bureau, Federal Communications 
Commission, 445 12th Street, SW, Suite 4-A760, Washington, DC 20554. A 
separate copy of the letter should be mailed to Kenneth Burnley, 
Auctions and Industry Analysis Division. After the Bureau's release of 
a public notice listing the qualified bidders in Auction No. 80, 
applicants should make these changes to their short-form applications 
on-line. Questions about other changes should be directed to Kenneth 
Burnley at (202) 418-0660.

B. Maintaining Current Information in Short-Form Applications

    19. Applicants have an obligation under 47 CFR 1.65, to maintain 
the completeness and accuracy of information in their short-form 
applications. Amendments reporting substantial changes of possible 
decisional significance in information contained in short-form 
applications, as defined by 47 CFR 1.2105(b)(2), will not be accepted 
and may in some instances result in the dismissal of the short-form 
application.

III. Pre-Auction Procedures

A. Auction Seminar

    20. On June 16, 2000, the FCC will sponsor a free seminar for 
Auction No. 80 at the Federal Communications Commission, located at 445 
12th Street, S.W. (Room 2-B516), Washington, D.C. The seminar will 
provide attendees with information about pre-auction procedures, 
conduct of the auction, FCC remote bidding software, and the broadcast 
service and auction rules. To register, complete the registration form 
included as Attachment B of this public notice and submit it by 
Wednesday, June 14, 2000. Registrations are accepted on a first-come, 
first-served basis.

B. Upfront Payments--Due June 26, 2000

    21. In order to be eligible to bid in the auction, applicants must 
submit an upfront payment accompanied by an FCC Remittance Advice Form 
(FCC Form 159). FCC Form 159 must be completed manually and faxed to 
Mellon Bank in Pittsburgh, PA. All upfront payments must be received at 
Mellon Bank by 6 p.m. ET on June 26, 2000. Please note that:
    <bullet> All payments must be made in U.S. dollars.
    <bullet> All payments must be made by wire transfer.
    <bullet> Upfront payments for Auction No. 80 go to a lockbox number 
different from the ones used in previous FCC auctions, and different 
from the lockbox number to be used for post-auction payments.
    <bullet> Failure to deliver the upfront payment by the June 26, 
2000 deadline will result in dismissal of the application and 
disqualification from participation in the auction.
i. Auction Payments by Wire Transfer
    22. Wire transfer payments must be received by 6:00 p.m. ET on June 
26, 2000. To avoid untimely payments, applicants should discuss 
arrangements (including bank closing schedules) with their banker 
several days before they plan to make the wire transfer, and allow 
sufficient time for the transfer to be initiated and completed before 
the deadline. Applicants will need the following information:

    <bullet> ABA Routing Number: 043000261
    <bullet> Receiving Bank: Mellon Pittsburgh
    <bullet> BNF: FCC/AC 910-1211
    <bullet> OBI Field: (Skip one space between each information item)
    <bullet> ``AUCTIONPAY''
    <bullet> TAXPAYER IDENTIFICATION NO. (same as FCC Form 159, block 
26)
    <bullet> PAYMENT TYPE CODE (enter ``A80U'')
    <bullet> FCC CODE 1 (same as FCC Form 159, block 23A: ``80'')
    <bullet> PAYER NAME (same as FCC Form 159, block 2)
    <bullet> LOCKBOX NO. <greek-i> 358435

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

    23. Applicants must fax a completed FCC Form 159 to Mellon Bank at 
(412) 209-6045 at least one hour before placing the order for the wire 
transfer (but on the same business day). Bidders should confirm receipt 
of their upfront payment at Mellon Bank by contacting their sending 
financial institution.
ii. FCC Form 159
    24. A completed FCC Remittance Advice Form (FCC Form 159) must 
accompany each upfront payment. Detailed instructions for completion of 
FCC Form 159 are included in Attachment C to the Auction Public Notice. 
The FCC Form 159 must be completed manually and filed with Mellon Bank 
via facsimile.
iii. Amount of Upfront Payment
    25. In the Auction No. 80 Comment Public Notice, the Bureaus 
proposed an upfront payment of $420,000. No comments were received 
concerning this upfront payment. We therefore adopt our proposed 
upfront payment amount for Auction No. 80.
iv. Applicant's Wire Transfer Information for Purposes of Refunds
    26. The Commission will use wire transfers for all Auction No. 80 
refunds. To ensure that refunds of upfront payments are processed in an 
expeditious manner, the Commission is requesting that all pertinent 
information as listed below be supplied to the FCC. Applicants must fax 
the Wire Transfer Instructions by June 26, 2000, to the FCC, Financial 
Operations Center, Auctions Accounting Group, ATTN: Tim Dates or Gail 
Glasser, at (202) 418-2843. Should the payer fail to submit the 
requested information, the refund will be returned to the original 
payer by check. For additional information, please call (202) 418-1995.

<bullet> Name of Bank
<bullet> ABA Number
<bullet> Contact and Phone Number
<bullet> Account Number to Credit
<bullet> Name of Account Holder
<bullet> Correspondent Bank (if applicable)
<bullet> ABA Number
<bullet> Account Number

C. Auction Registration

    27. Approximately ten days before the auction, the FCC will issue a 
public notice announcing all qualified bidders for the auction. 
Qualified bidders are those applicants whose short-form applications 
have been accepted for filing and that have timely submitted an upfront 
payment.
    28. All qualified bidders are automatically registered for the 
auction. Registration materials will be distributed prior to the 
auction by two separate overnight mailings, each containing part of the 
confidential identification codes required to place bids. These 
mailings will be sent only to the contact person at the contact

[[Page 39404]]

address listed in the short-form applications.
    29. Applicants that do not receive both registration mailings will 
not be able to submit bids. Therefore, any qualified applicant that has 
not received both mailings by noon on Friday, July 7, 2000, should 
contact the Auctions Hotline at 717-338-2888. Receipt of both 
registration mailings is critical to participating in the auction and 
each applicant is responsible for ensuring it has received all of the 
registration material.
    30. Qualified bidders should note that lost login codes, passwords 
or bidder identification numbers can be replaced only by appearing in 
person at the FCC Auction Headquarters located at 445 12th Street, 
S.W., Washington, D.C. 20554. Only an authorized representative or 
certifying official, as designated on an applicant's short-form 
application, may appear in person with two forms of identification (one 
of which must be a photo identification) in order to receive 
replacement codes. Qualified bidders requiring replacement codes must 
call technical support prior to arriving at the FCC to arrange 
preparation of new codes.

D. Remote Electronic Bidding Software

    31. Qualified bidders are allowed to bid electronically or by 
telephone. If choosing to bid electronically, each bidder must purchase 
their own copy of the remote electronic bidding software. Electronic 
bids will only be accepted from those applicants purchasing the 
software. However, the software may be copied by the applicant for use 
by its authorized bidders at different locations. The price of the 
FCC's remote bidding software is $175.00 and must be ordered by Monday, 
June 26, 2000. For security purposes, the software is only mailed to 
the contact person at the contact address listed on the short-form 
application. Please note that auction software is tailored to a 
specific auction, so software from prior auctions will not work for 
Auction No. 80.

E. Mock Auction

    32. All qualified bidders will be eligible to participate in a mock 
auction on Monday, July 10, 2000. The mock auction will enable 
applicants to become familiar with the electronic software prior to the 
auction. Free demonstration software will be available for use in the 
mock auction. Participation by all bidders is strongly recommended. 
Details will be announced by public notice.

IV. Auction Event

    33. The first round of bidding for Auction No. 80 will begin on 
Wednesday, July 12, 2000. The initial bidding schedule will be 
announced in the public notice listing the qualified bidders which is 
released approximately 10 days before the start of the auction.

A. Auction Structure

i. Multiple Round, Ascending Auction
    34. In the Auction No. 80 Comment Public Notice, the Bureaus 
proposed to award the construction permit for Channel 52 at Blanco, 
Texas in a multiple-round, ascending auction. We received no comments 
on this issue. The Bureaus therefore conclude that it is operationally 
feasible and appropriate to auction the construction permit for Channel 
52 at Blanco, Texas in a multiple-round, ascending auction. Unless 
otherwise announced, bids will be accepted on the construction permit 
in successive rounds of bidding.
ii. Maximum Eligibility and Activity Rules
    35. In the Auction No. 80 Comment Public Notice, the Bureaus 
proposed that the amount of the upfront payment submitted by a bidder 
would determine the eligibility (as measured in bidding units) for 
participation in Auction No. 80. The Bureaus received no comments on 
this issue. For Auction No. 80, the Bureaus will adopt their proposal 
that the amount of the upfront payment submitted by a bidder determines 
the eligibility (in bidding units) for participation in Auction No. 80.
    36. In addition, the Bureaus received no comments on their proposal 
for a single stage auction. Therefore, the Bureaus will adopt their 
proposal with the following activity requirements: a bidder must either 
place a valid bid and/or be the standing high bidder during each round 
of the auction rather than wait until the end before participating. A 
bidder is required to be active on 100 percent of their bidding 
eligibility. 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 bidding eligibility, thus eliminating the 
bidder from the auction.
iii. Activity Rule Waivers and Reducing Eligibility
    37. The Bureaus adopt their proposal that each bidder be provided 
three activity rule waivers that may be used in any round during the 
course of the auction. Use of an activity rule waiver preserves the 
bidder's current bidding eligibility despite the bidder's activity in 
the current round being below the required minimum level. We are 
satisfied that by providing three waivers over the course of the 
auction we will offer maximum flexibility to the bidders, while 
safeguarding the integrity of the auction.
    38. The FCC automated auction system assumes that bidders with 
insufficient activity would prefer to use an activity rule waiver (if 
available) rather than lose bidding eligibility. Therefore, the system 
will automatically apply a waiver (known as an ``automatic waiver'') at 
the end of any round where a bidder's activity level is below the 
minimum required. If there are no activity rule waivers available, the 
bidder's eligibility will be reduced, eliminating them from the 
auction.
    39. Finally, a bidder may proactively use an activity rule waiver 
as a means to keep the auction open without placing a bid. If a bidder 
submits a proactive waiver (using the proactive waiver function in the 
bidding software) during a round in which no bids are submitted, the 
auction will remain open and the bidder's eligibility will be 
preserved. An automatic waiver invoked in a round in which there are no 
new valid bids will not keep the auction open.
iv. Auction Stopping Rules
    40. For Auction No. 80, the Bureaus will employ a modified version 
of the stopping rule. The modified version of the stopping rule would 
close the auction after the first round in which no bidder submits a 
proactive waiver or a new bid on the construction permit when it is not 
the standing high bidder. Thus, absent any other bidding activity, a 
bidder placing a new bid on the construction permit for which it is the 
standing high bidder would not keep the auction open under this 
modified stopping rule.
    41. The Bureaus will further retain the discretion to keep an 
auction open even if no new acceptable bids or proactive waivers are 
submitted. In addition, the Bureaus reserves the right to declare that 
the auction will end after a specified number of additional rounds 
(``special stopping rule''). The Bureaus will exercise this option only 
in circumstances such as where the auction is proceeding very slowly, 
where there is minimal overall bidding activity or where it appears 
likely that the auction will not close within a reasonable period of 
time. Under the stopping rule, bidding will remain open on the 
construction permit until bidding stops. The auction will close for the 
construction permit when one round passes during which no bidder 
submits

[[Page 39405]]

a new acceptable bid or applies a proactive waiver. After the first 
such round, bidding will close on the construction permit. In addition, 
the Bureaus retain the discretion to close the auction after the first 
round in which no bidder submits a proactive waiver or a new bid on the 
construction permit on which it is not the standing high bidder. Under 
this modified stopping rule, absent any other bidding activity, a 
bidder placing a new bid on the construction permit for which it is the 
standing high bidder would not keep the auction open under this 
stopping rule procedure.
    42. The Bureaus also retain the discretion to keep the auction open 
even if no new acceptable bids or proactive waivers are submitted in a 
round. Further, in their discretion, the Bureaus reserve the right to 
invoke the ``special stopping rule.'' Before exercising this option, 
the Bureaus are likely to attempt to increase the pace of the auction 
by, for example, increasing the number of bidding rounds per day.
v. Auction Delay, Suspension, or Cancellation
    43. 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, evidence of an auction security 
breach, unlawful bidding activity, administrative or weather necessity, 
or for any other reason that affects the fair and competitive conduct 
of competitive bidding. In such cases, the 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. 
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 rule waivers.

B. Bidding Procedures

i. Round Structure
    44. The initial bidding schedule will be announced in the public 
notice listing the qualified bidders which is released approximately 10 
days before the start of the auction. This public notice will be 
included with the registration mailings. The round structure contains a 
single bidding round followed by the release of the round results. 
Multiple bidding rounds may be conducted in a given day. Details 
regarding round result formats and locations will be included in a 
future public notice listing the qualified bidders of Auction No. 80. 
The FCC has discretion to change the bidding schedule in order to 
foster an auction pace that reasonably balances speed with the bidders' 
need to study round results and adjust their bidding strategies. The 
FCC may increase or decrease the amount of time for the bidding rounds 
and review periods, or the number of rounds per day, depending upon the 
bidding activity level and other factors.
ii. Reserve Price or Minimum Opening Bid
    45. In the Auction No. 80 Comment Public Notice, the Bureaus 
proposed to establish a minimum opening bid for Auction No. 80 of 
$420,000. Specifically, for Auction No. 80, the Commission proposed 
calculating the minimum opening bid based on the potential value of the 
spectrum, including the type of service, market size, industry cash 
flow data and recent broadcast transactions. No comments were received, 
therefore we will adopt the minimum opening bid of $420,000, as 
proposed, for Auction No. 80.
iii. Bid Increments and Minimum Accepted Bids
    46. The Bureaus will apply a minimum bid increment of 10 percent 
and will retain the discretion to change the minimum bid increment if 
circumstances so dictate. Once there is a standing high bid on the 
construction permit, there will be a bid increment associated with that 
bid indicating the minimum amount by which the bid on that permit can 
be raised. For Auction No. 80, the Bureaus will use a flat, across-the-
board increment of 10 percent to calculate the minimum bid increment. 
The Bureaus retain the discretion to compute the minimum bid increment 
through other methodologies if it determines circumstances so dictate. 
Advanced notice of the Bureaus' decision to do so will be announced via 
the Automated Auction System.
iv. High Bids
    47. Each bid will be date- and time-stamped when it is entered into 
the Automated Auction System. In the event of tie bids, the Commission 
will identify the high bidder on the basis of the order in which the 
Commission receives bids. The bidding software allows bidders to make 
multiple submissions in a round. As each bid is individually date- and 
time-stamped according to when it was submitted, a bid submitted by a 
bidder earlier in a round will have an earlier date and time stamp than 
a bid submitted later in a round.
v. Bidding
    48. During a bidding round, a bidder may submit a bid, subject to 
its eligibility, as well as, remove a bid placed in the same bidding 
round. If a bidder submits multiple bids for the construction permit in 
the same round, the system takes the last bid entered as that bidder's 
bid for the round, and the date- and time-stamp of that bid reflects 
the latest time the bid was submitted.
    49. Please note that all bidding will take place remotely either 
through the automated bidding software or by telephonic bidding. 
(Telephonic bid assistants are required to use a script when entering 
bids placed by telephone. Telephonic bidders are therefore reminded to 
allow sufficient time to bid by placing their calls well in advance of 
the close of a round. Normally, four to five minutes are necessary to 
complete a bid submission.) There will be no on-site bidding during 
Auction No. 80.
    50. When utilizing the bidding software, each bidder is required to 
login using the FCC account number, bidder identification number, and 
the confidential security codes provided in the registration materials. 
Bidders are strongly encouraged to download and print bid confirmations 
after they submit their bids.
    51. The bid entry screen of the automated auction system software 
for Auction No. 80 allows bidders to place a multiple increment bid, 
which will let bidders increase a high bid from one to nine bid 
increments. A single bid increment is defined as the difference between 
the standing high bid and the minimum acceptable bid for the 
construction permit. The bidding software will display the bid 
increment.
    52. To place a bid on the construction permit, the bidder must 
increase the standing high bid by one to nine times the bid increment. 
This is done by entering a whole number between 1 and 9 in the bid 
increment multiplier (Bid Mult) field in the software. This value will 
determine the amount of the bid (Amount Bid) by multiplying the bid 
increment multiplier by the bid increment and adding the result to the 
high bid amount according to the following formula:

Amount Bid = High Bid + (Bid Mult * Bid Increment)

    53. Thus, bidders may place a bid that exceeds the standing high 
bid by between one and nine times the bid increment. For example, to 
bid the minimum acceptable bid, which is

[[Page 39406]]

equal to one bid increment, a bidder will enter ``1'' in the bid 
increment multiplier column and press submit.
    54. In the first round of the auction, bidders will be limited to 
bidding only the minimum acceptable bid. In this case no increment 
exists for the construction permit, and bidders should enter ``1'' in 
the Bid Mult field. Note that in this case, any whole number between 1 
and 9 entered in the multiplier column will result in a bid value at 
the minimum acceptable bid amount.
vi. Bid Removal and Bid Withdrawal
    55. The Bureaus will employ bid removal and bid withdrawal rules. 
With respect to bid withdrawals, bidders will not be permitted to 
withdraw bids in any round. Before the close of a bidding round, a 
bidder has the option of removing a bid placed in that round. By using 
the ``remove bid'' function in the software, a bidder may effectively 
``unsubmit'' a bid placed within that round. Removing a bid will affect 
a bidder's activity for the round in which it is removed, i.e. a bid 
that is subsequently removed does not count toward the bidder's 
activity requirement. Once a round closes, a bidder may no longer 
remove a bid.
vii. Round Results
    56. Bids placed during a round will not be published until the 
conclusion of that bidding period. After a round closes, the Commission 
will compile reports of all bids placed, current high bid, new minimum 
accepted bid, and bidder eligibility status (bidding eligibility and 
activity rule waivers), and post the reports for public access. Reports 
reflecting bidders' identities and FCC account numbers for Auction No. 
80 will be available before and during the auction. Thus, bidders will 
know in advance of this auction the identities of the bidders against 
which they are bidding.
viii. Auction Announcements
    57. The FCC will use auction announcements to announce items such 
as schedule changes. All FCC auction announcements will be available on 
the FCC remote electronic bidding system, as well as on the Internet.
ix. Maintaining the Accuracy of Short-Form (FCC Form 175) Information
    58. After the short-form filing deadline, applicants may make only 
minor changes to their FCC Form 175 applications. For example, 
permissible minor changes include deletion and addition of authorized 
bidders (to a maximum of three) and certain revision of exhibits. 
Filers must make these changes on-line, and submit a letter summarizing 
the changes to: Amy Zoslov, Chief, Auctions and Industry Analysis 
Division, Wireless Telecommunications Bureau, Federal Communications 
Commission, 445 12th Street, S.W., Washington, D.C. 20554. A separate 
copy of the letter should be mailed to Kenneth Burnley, Auctions and 
Industry Analysis Division, 4-B524, Wireless Telecommunications Bureau, 
Federal Communications Commission, 445 12th Street, S.W., Washington, 
D.C. 20554. Applicants should make these changes to their short-form 
applications on-line after the Bureau's release of a public notice 
listing qualified bidders in Auction No. 80. Questions about other 
changes should be directed to Kenneth Burnley at (202) 418-0660.

V. Post-Auction Procedures

A. Down Payments

    59. After bidding has ended, the Commission will issue a public 
notice declaring the auction closed, identifying the winning bid and 
bidder for the construction permit. Within ten business days after 
release of the auction closing public notice, the winning bidder must 
submit sufficient funds (in addition to its upfront payment) to bring 
its total amount of money on deposit with the United States Government 
to 20 percent of its net winning bid (actual bid less any applicable 
bidding credit). See 47 CFR 1.2107(b).

B. Long-Form Application

    60. Within ten business days after release of the auction closing 
public notice, the winning bidder must electronically submit a properly 
completed long-form application and required exhibits for the 
construction permit won through the auction. If the winning bidder is 
claiming new entrant status it must include an exhibit demonstrating 
their eligibility for the bidding credit. See 47 CFR 1.2112(b). Further 
filing instructions will be provided to the auction winner at the close 
of the auction.

C. Default and Disqualification

    61. If the high bidder 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) 
it will be subject to the payments described in 47 CFR 1.2104(g)(2). In 
such event the Commission may re-auction the construction permit or 
offer it to the next highest bidder (in descending order) at their 
final bid. See 47 CFR 1.2109(b) and (c). In addition, if a default or 
disqualification involves gross misconduct, misrepresentation, or bad 
faith by an applicant, the Commission may declare the applicant and its 
principals ineligible to bid in future auctions, and may take any other 
action that it deems necessary, including institution of proceedings to 
revoke any existing licenses or construction permits held by the 
applicant. See 47 CFR 1.2109(d).

D. Refund of Remaining Upfront Payment Balance

    62. All applicants that submitted upfront payments but were not the 
winning bidder for the construction permit will be entitled to a refund 
of their upfront payment after the conclusion of the auction. Bidders 
that drop out of the auction completely may be eligible for a refund of 
their upfront payment before the close of the auction. Bidders that 
have exhausted all of their activity rule waivers and have no remaining 
bidding eligibility must submit a written refund request which includes 
wire transfer instructions and a Taxpayer Identification Number 
(``TIN''), to:

<bullet> Federal Communications Commission
<bullet> Financial Operations Center
<bullet> Auctions Accounting Group
<bullet> Shirley Hanberry
<bullet> 445 12th Street, S.W., Room 1-A824
<bullet> Washington, D.C. 20554

Bidders can fax their request to the Auctions Accounting Group at (202) 
418-2843. Once the request has been approved, a refund will be sent to 
the party identified in the refund information.

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

    63. For additional information, please contact the following 
persons: Media: Meribeth McCarrick at (202) 418-0654. Auctions and 
Industry Analysis Division: Kenneth Burnley, Attorney, Auctions Legal 
Branch at (202) 418-0660; Lisa Stover, Project Manager or Bob Reagle, 
Analyst, Auctions Operations Branch at (717) 338-2888. Audio Services 
Division: Shaun Maher at (202) 418-2324.

Federal Communications Commission.
Louis Sigalos,
Deputy Chief, Auctions and Industry Analysis Division.
[FR Doc. 00-16099 Filed 6-23-00; 8:45 am]
BILLING CODE 6712-01-P


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