39400 Federal Register / Vol. 65, No. 123 / Monday, June 26, 2000 / Notices

B. Long-Form Application

116. Within ten business days after

release of the auction closing notice,

winning bidders must electronically

submit a properly completed long-form

application and required exhibits for

each 800 MHz license won through the

auction. Winning bidders that are small

businesses or very small businesses

must include an exhibit demonstrating

their eligibility for bidding credits. See

47 CFR 1.2112(b). Further filing

instructions will be provided to auction

winners at the close of the auction.

C. Default and Disqualification

117. Any high bidder that defaults or

is disqualified after the close of the

auction (i.e., fails to remit the required

down payment within the prescribed

period of time, fails to submit a timely

long-form application, fails to make full

payment, or is otherwise disqualified)

will be subject to the payments

described in 47 CFR 1.2104(g)(2). In

such event the Commission may reauction the license 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 held by the applicant.

See 47 CFR 1.2109(d).

D. Refund of Remaining Upfront

Payment Balance

118. All applicants that submitted

upfront payments but were not winning

bidders for a 800 MHz license may be

entitled to a refund of their remaining

upfront payment balance after the

conclusion of the auction. No refund

will be made unless there are excess

funds on deposit from that applicant

after any applicable bid withdrawal

payments have been paid.

119. Qualified bidders that have

exhausted all of their activity rule

waivers, have no remaining bidding

eligibility, and have not withdrawn a

high bid during the auction must submit

a written refund request. If you have

completed the refund instructions

electronically, then only a written

request for the refund is necessary. If

not, the request must also include wire

transfer instructions and a Taxpayer

Identification Number (‘‘TIN’’). Send

refund request to: Federal

Communications Commission,

Financial Operations Center, Auctions

Accounting Group, Shirley Hanberry,

445 12th Street, SW, Room 1–A824,

Washington, DC 20554.

120. Bidders are encouraged to file

their refund information electronically

using the refund information portion of

the FCC Form 175, but bidders can also

fax their information to the Auctions

Accounting Group at (202) 418–2843.

Once the information has been

approved, a refund will be sent to the

party identified in the refund

information.

Note: Refund processing generally takes up

to two weeks to complete. Bidders with

questions about refunds should contact

Michelle Bennett or Gail Glasser at (202)

418–1995.

Federal Communications Commission

Louis J. Sigalos,

Deputy Chief, Auctions & Industry Analysis

Division.

[FR Doc. 00–16117 Filed 6–23–00; 8:45 am]

BILLING CODE 6712–01–P

FEDERAL COMMUNICATIONS

COMMISSION

[DA–00–1184]

Telecommunications Services

Between the United States and Cuba

AGENCY: Federal Communications

Commission.

ACTION: Notice.

SUMMARY: On May 25, 2000, the

Commission approved the application

of Sprint Communications Company,

L.P. (Sprint) to acquire and operate

additional satellite facilities for

provision of service between the United

States and Cuba. This application

includes upgrade of an existing private

line circuit between an authorized

international earth station in New Jersey

and INTELSAT’s Atlantic Ocean Region

satellite. Sprint is currently authorized

by the Commission to provide service

directly to Cuba.

The Commission has authorized

Sprint to provide service between the

United States and Cuba in accordance

with the provisions of the Cuban

Democracy Act. This will help meet the

demand for direct telecommunications

services between the United States and

Cuba. Under the guidelines established

by the Department of State, Sprint is to

submit reports indicating the numbers

of circuits activated by facility, on or

before June 30, and December 31 of each

year, and on the one year anniversary of

this notification in the Federal Register.

The authorization is, however, subject

to revocation if the Department of State

or the Federal Communications

Commission determines that Sprint’s

continued provision of communications

services to Cuba no longer serves the

national interest.

FOR FURTHER INFORMATION, CONTACT: J.

Breck Blalock, Chief, Policy and

Facilities Branch, (202) 418–1460 or

Justin Connor, Attorney Advisor, Policy

and Facilities Branch, (202) 418–1476.

Dated: June 20, 2000.

Federal Communications Commission.

Rebecca Arbogast,

Chief, Telecommunications Division,

International Bureau.

[FR Doc. 00–16118 Filed 6–23–00; 8:45 am]

BILLING CODE 6712–01–U

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.

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.

Federal Register / Vol. 65, No. 123 / Monday, June 26, 2000 / Notices 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 ftp@ftp.fcc.gov 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

§ 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 § 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, § 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,

§ 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

39402 Federal Register / Vol. 65, No. 123 / Monday, June 26, 2000 / Notices

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:

• The first contact is a ‘‘cold call’’

from a telemarketer, or is made in

response to an inquiry prompted by a

radio or television infomercial.

• The offering materials used to

invest in the venture appear to be

targeted at IRA funds, for example by

including all documents and papers

needed for the transfer of funds

maintained in IRA accounts.

• The amount of the minimum

investment is less than $25,000.

• The sales representative makes

verbal representations that: (a) The

Internal Revenue Service (‘‘IRS’’),

Federal Trade Commission (‘‘FTC’’),

Securities and Exchange Commission

(‘‘SEC’’), FCC, or other government

agency has approved the investment; (b)

the investment is not subject to state or

federal securities laws; or (c) the

investment will yield unrealistically

high short-term profits. In addition, the

offering materials often include copies

of actual FCC releases, or quotes from

FCC personnel, giving the appearance of

FCC knowledge or approval of the

solicitation.

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 multipleround, ascending auction. Bidding will

be permitted only from remote

locations, either electronically (by

computer) or telephonically.

iii. Pre-Auction Dates and Deadlines

• Auction Seminar—June 16, 2000

• Upfront Payments (via wire

transfer)—June 26, 2000; 6 p.m. ET

• Orders for Remote Bidding

Software—June 26, 2000; 5:30 p.m. ET

• Mock Auction—July 10, 2000

• Auction Begins—July 12, 2000

iv. Requirements for Participation

17. Those wishing to participate in

the auction must:

• Be listed on Attachment A of this

public notice.

• Submit a sufficient upfront

payment and an FCC Remittance Advice

Form (FCC Form 159) by 6 p.m. ET,

June 26, 2000.

• Comply with all provisions

outlined in this public notice.

v. General Contact Information

• 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.

• Auction Legal Information:

Auctions and Industry Analysis

Division, Legal Branch (202) 418–0660.

• Licensing information: Mass Media

Bureau, Video Services Division: (202)

418–1600.

• FCC Auctions Technical Support

Hotline: (202) 414–1250 (Voice), (202)

414–1255 (TTY). Hours of service: 8

a.m.–6 p.m. ET.

• Payment Information: FCC Auctions

Accounting Branch: (202) 418–1995.

• FCC Copy Contractor: International

Transcription Services, Inc., 445 12th

Street, SW Room CY–B400, Washington,

DC 20554, (202) 314–3070.

• Press Information: Meribeth

McCarrick (202) 418–0654.

• FCC Internet Sites:

Federal Register / Vol. 65, No. 123 / Monday, June 26, 2000 / Notices 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:

• All payments must be made in U.S.

dollars.

• All payments must be made by wire

transfer.

• 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.

• 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:

• ABA Routing Number: 043000261

• Receiving Bank: Mellon Pittsburgh

• BNF: FCC/AC 910–1211

• OBI Field: (Skip one space between

each information item)

• ‘‘AUCTIONPAY’’

• TAXPAYER IDENTIFICATION NO.

(same as FCC Form 159, block 26)

• PAYMENT TYPE CODE (enter

‘‘A80U’’)

• FCC CODE 1 (same as FCC Form

159, block 23A: ‘‘80’’)

• PAYER NAME (same as FCC Form

159, block 2)

• LOCKBOX NO. ι 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.

• Name of Bank

• ABA Number

• Contact and Phone Number

• Account Number to Credit

• Name of Account Holder

• Correspondent Bank (if applicable)

• ABA Number

• 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

39404 Federal Register / Vol. 65, No. 123 / Monday, June 26, 2000 / Notices

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

Federal Register / Vol. 65, No. 123 / Monday, June 26, 2000 / Notices 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 timestamped 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 onsite 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

39406 Federal Register / Vol. 65, No. 123 / Monday, June 26, 2000 / Notices

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 ShortForm (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 reauction 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:

• Federal Communications Commission

• Financial Operations Center

• Auctions Accounting Group

• Shirley Hanberry

• 445 12th Street, S.W., Room 1–A824

• 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