49228 Federal Register / Vol. 62, No. 182 / Friday, September 19, 1997 / Notices

Dated: September 16, 1997.

Floyd Fithian,

Secretary, Farm Credit Administration Board.

[FR Doc. 97–25115 Filed 9–17–97; 2:35 pm]

BILLING CODE 6705–01–P

FEDERAL COMMUNICATIONS

COMMISSION

[DA 97–1672]

Auction of 800 MHZ Specialized Mobile

Radio Service Licenses; Auction

Notice and Filing Requirements for 525

Licenses in the Upper 200 Channels

Scheduled for October 28, 1997

Released August 6, 1997.

1. Introduction

Licenses to Be Auctioned: 525

licenses in the upper 200 channels of

the 800 MHz Specialized Mobile Radio

Service (‘‘SMR’’). The auction will

consist of 3 licenses in each of 175

Economic Areas (‘‘EAs’’); frequency

block A is allocated 20 channels;

frequency block B is allocated 60

channels; and frequency block C is

allocated 120 channels. Each frequency

block encompasses the following

spectrum and channel numbers:

Spectrum

block

Channel

Nos.

Frequencies (Base and

Mobile)

A ............ 401–420 861.0–861.5 MHz.

816.0–816.5 MHz.

B ............ 421–480 861.5–863.0 MHz.

816.5–818.0 MHz.

C ............ 481–600 863.0–866.0 MHz.

818.0–821.0 MHz.

A detailed listing of the EAs, with

their FCC market number, market

location, license number, population,

and upfront payment, as well as a

service area map, are provided in

Attachment A.

Note: As indicated below, not all 200 SMR

channels in Spectrum Blocks A, B and C are

available for auction in the Canadian and

Mexican border areas. Some frequencies are

subject to international assignment and

coordination. For further information, see

paragraphs 23–26 of the Memorandum

Opinion and Order on Reconsideration, FCC

97–224, 62 FR 41225 (July 31, 1997) and

Appendix C to the Second Report & Order,

FCC 97–223, 62 FR 41190 (July 31, 1997).

CANADIAN BORDER AREA

Spectrum block

Available

channels regions 1,

4, 5 and

6

Available

channels region 2

Available

channels

region 3

Available

channels

regions 7

and 8

A ............................................................................................................................................................ None ... None ... 4 12

B ............................................................................................................................................................ 18 ........ None ... 44 32

C ............................................................................................................................................................ 72 ........ 55 ........ 72 48

MEXICAN BORDER AREA

Spectrum block

Available

offset

channels

A .................................................. 3

B .................................................. 12

C ................................................. 18

Auction Date: The auction will begin

on October 28, 1997. The precise

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 all licenses.

Auction Title: This is the sixteenth

spectrum auction the FCC has

scheduled, and will be referred to as

‘‘Auction No. 16, 800 MHz SMR—Upper

200 Channels.’’

Bidding Methodology: Simultaneous

multiple round bidding. Bidding will be

permitted only from remote locations,

either electronically (by computer) or

telephonically.

Pre-Auction Dates:

• An Auction Seminar will be

conducted at a location and date to be

announced.

• Short-Form Application (FCC Form

175)—September 29, 1997, 5:30 p.m.

ET

• Upfront Payments: (Only Wire

Transfer Accepted)—October 14,

1997, 6:00 p.m. ET

• Orders for Remote Bidding Software—

October 15, 1997, 5:30 p.m. ET

• Mock Auction—October 23, 1997

Telephone Contacts:

• FCC National Call Center—888–

CALL–FCC (888–225–5322) (General

Auction Information and Seminar

Registration, press option #2 at the

prompt)

• FCC Technical Support Hotline—

202–414–1250

List of Attachments:

• Attachment A: List of Licenses

Offered

• Attachment B: Guidelines for

Completion of FCC Forms 159 and

175 and Exhibits

• Attachment C: Electronic Filing of

FCC Form 175

• Attachment D: Summary Listing of

FCC Documents Addressing

Application of the Anti-Collusion

Rules

Release of Further Information: The

Commission plans to release public

notices with further information

regarding Auction 16 in the following

order:

• Due diligence

• Software ordering information and

bidders seminar registration

• Instructions for on-line monitoring,

bid tracking tool, outstanding auction

event issues (including round

schedules and bid increment

calculations)

Background: In December 1995, the

Commission restructured the licensing

framework that governs the 800 MHz

SMR service. Site- and frequencyspecific licensing was replaced with a

geography-based system similar to those

used in other Commercial Mobile Radio

Services (‘‘CMRS’’). The geographic

areas for the licenses were created based

on Economic Areas developed by the

Bureau of Economic Analysis of the U.S.

Department of Commerce.

Service and operational requirements

for the 800 MHz SMR service are

contained in part 90 of the

Commission’s Rules, 47 CFR part 90.

Potential bidders are reminded that

there are a substantial number of

incumbent licensees already licensed

and operating in the 800 MHz SMR

service on frequencies that will be

subject to the upcoming auction. Such

incumbents must be protected from
Federal Register / Vol. 62, No. 182 / Friday, September 19, 1997 / Notices 49229

harmful interference in accordance with

the Commission’s rules by geographic

area licensees. These limitations may

restrict the ability of geographic area

licensees to use certain portions of the

electromagnetic spectrum or provide

service to certain areas in their

geographic license area. Potential

bidders are solely responsible for

investigating and evaluating the degree

to which incumbents are licensed and

operating in areas where potential

bidders may seek EA licenses. Some

information regarding the licensing of

such incumbents is available in the

Commission’s licensing database. This

information is available for inspection

in the Wireless Telecommunications

Bureau’s Public Reference Rooms. These

facilities are located at 2025 M Street,

NW, Room 5608, Washington, DC and

1270 Fairfield Road, Gettysburg, PA.

Paper files are available for inspection

in the Public Reference Room of the

Wireless Telecommunications Bureau’s

Gettysburg, PA offices only. Any

telephone inquiries regarding licensing

of incumbents should be directed to the

National Call Center at (888) CALL–FCC

or (888) 225–5322. The licensing

database, which includes information

regarding incumbent licensees in the

800 MHz upper SMR band, is available

for on-line review at http://

www.fcc.gov/wtb/databases.html.

Additionally, the Land Mobile database

may be queried on-line on the World

Wide Web at: http://gullfoss.fcc.gov/cgibin/wtb—pt—rad/ptradsrch.sh. This

software permits queries of 800 SMR

data for the upper 200 channels

utilizing latitude/longitude and a

specified radius. However, the

Commission makes no representations

or guarantees regarding the accuracy of

information provided by incumbent

licensees and incorporated into the

database.

Potential bidders should also be

aware that there are pending before the

Commission certain applications,

waiver requests, petitions to deny,

petitions for reconsideration, and

applications for review that relate to

specific incumbent 800 MHz SMR

licenses or applications. Resolution of

these pending matters could have an

impact on the availability of spectrum to

EA licensees in this auction. In

addition, some of these matters may not

have reached final resolution by the

time of the auction. Potential bidders

are solely responsible for investigating

and evaluating the degree to which such

pending matters may affect spectrum

availability in areas where potential

bidders may seek EA licenses. In the

near future, the Commission will release

a Public Notice listing pending matters

that relate to licenses or applications

that affect 800 MHz upper band

spectrum. The Commission will also

make available for public inspection the

pleadings and related filings in those

matters.

Participation: Those wishing to

participate in the auction must submit

an FCC Form 175 short-form

application. The FCC Form 175 must be

completed and filed in accordance with

the Commission’s rules and the

instructions provided. This form must

be received at the Commission no later

than 5:30 p.m. ET on September 29,

1997. See Attachments B and C for

detailed information on how to

complete and electronically file the

required FCC Form 175 information.

Applicants will be required to submit

an upfront payment and an FCC

Remittance Advice (FCC Form 159). The

upfront payment must be made in U.S.

dollars by wire transfer. Payments must

be received at Mellon Bank in

Pittsburgh, Pennsylvania, no later than

October 14, 1997 at 6:00 p.m. ET. No

other form of payment will be accepted.

Prohibition of Collusion: To ensure

the competitiveness of the auction

process, the FCC’s rules prohibit

applicants for the same geographic areas

from communicating with each other

during the auction about bids, bidding

strategies or settlements. This

prohibition begins with the filing of

short-form applications, and ends when

winning bidders submit their initial

down payment. The prohibition does

not apply where applicants enter into a

bidding agreement before filing their

short-form applications, and disclose

the existence of the agreement in the

short-form application. See 47 CFR

1.2105(c). See also the Summary Listing

of Documents from the Commission and

the Wireless Telecommunications

Bureau Addressing Application of the

Anti-Collusion Rules in Attachment D

to this Public Notice.

Relevant Authority: Prospective

bidders should familiarize themselves

thoroughly with the FCC’s rules relating

to the 800 MHz SMR service contained

in title 47, part 90 of the Code of Federal

Regulations (‘‘CFR’’), and rules relating

to application and auction procedures,

contained in title 47, part 1, subpart Q.

Also, prospective bidders should be

familiar with the procedures, terms, and

rules contained in the Commission’s

docket Amendment of part 90 of the

Commission’s Rules to Facilitate Future

Development of SMR Systems in the

800 MHz Frequency Band, PR Docket

No. 93–144. The latest releases in this

docket, the First Report and Order,

Eighth Report and Order, and Second

Further Notice of Proposed Rule

Making, FCC 95–501, 61 FR 6138

(February 16, 1996), the Second Report

and Order, FCC 97–223, 62 FR 41190

(July 31, 1997) and Memorandum

Opinion and Order on Reconsideration,

FCC 97–224, 62 FR 41225 (July 31,

1997) are posted on the Commission’s

World Wide Web site, http://

www.fcc.gov.

The terms contained in the FCC’s

rules, documents in the 800 MHz SMR

proceeding and this Public Notice are

not negotiable. Prospective bidders

should review these auction documents

thoroughly prior to the auction to make

certain that they understand all of the

provisions and are willing to be bound

by all of the terms before participating

in the auction.

Potential bidders should be aware that

petitions for reconsideration of the

FCC’s actions in the Second Report and

Order and Memorandum Opinion and

Order on Reconsideration may be filed

and that the terms adopted therein are

therefore subject to change upon

reconsideration or appeal.

The Commission may amend or

supplement the information contained

in this Public Notice at any time. The

FCC will issue public notices to convey

new or supplemental information to

bidders. It is the responsibility of all

prospective bidders to remain current

with all FCC rules and with all public

notices pertaining to this auction.

Copies of FCC documents, including

public notices, may be obtained for a fee

by calling the Commission’s copy

contractor, International Transcription

Service, Inc., at 202–857–3800.

Additionally, many documents can be

retrieved from the FCC Internet node via

anonymous ftp@ftp.fcc.gov or the FCC

World Wide Web site at http://

www.fcc.gov. Bidders should also note

that a separate Auction’s web page is

available on the Commission’s web site

at http://www.fcc.gov/auctions.html.

Minimum Bids: At present, there is no

minimum opening bid on any of the

licenses in this auction. Also, there is no

minimum bid increment for a license

until a license has received an initial

bid. Recently adopted legislation,

however, may require minimum bids or

reserve prices in this auction. If

minimum bids or reserve prices are

established, notification will be

provided prior to the start of the

auction.

Bidder Alerts: All applicants must

certify under penalty of perjury on their

FCC Form 175 applications that they are

legally, technically, financially and

otherwise qualified to hold a license,

and not in default on any Commission

licenses. Prospective bidders are
49230 Federal Register / Vol. 62, No. 182 / Friday, September 19, 1997 / Notices

reminded that submission of a false

certification to the Commission is a

serious matter that may result in severe

penalties, including monetary

forfeitures, license revocations,

exclusion from participation in future

auctions, and/or criminal prosecution.

The FCC makes no representations or

warranties about the use of this

spectrum for particular services.

Applicants should be aware that an FCC

auction represents an opportunity to

become an FCC licensee in this service,

subject to certain conditions and

regulations. An FCC auction does not

constitute an endorsement by the FCC of

any particular services, technologies or

products, nor does an FCC license

constitute a guarantee of business

success. Applicants should perform

their individual due diligence before

proceeding as they would with any new

business venture.

As is the case with many business

investment opportunities, some

unscrupulous entrepreneurs may

attempt to use the auction of the upper

200 channels in the 800 MHz SMR

service to deceive and defraud

unsuspecting investors. Common

warning signals of fraud include the

following: (1) 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. (2) 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. (3) The amount of the

minimum investment is less than

$25,000. (4) The sales representative

makes verbal representations that: (a)

The IRS, FTC, 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.

(5) 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.

Information about deceptive

telemarketing investment schemes is

available from the Federal Trade

Commission (FTC) at 202–326–2222 and

from the Securities and Exchange

Commission (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 800

MHz SMR investment proposals may

also call the FCC National Call Center at

888–CALL–FCC (888–225–5322).

2. Bidder Eligibility and Small Business

Provisions

A. General Eligibility Criteria

Any entity, other than those

precluded by foreign ownership

restrictions set forth in § 310 of the

Communications Act of 1934, as

amended, 47 U.S.C. 310, is eligible to

hold an 800 MHz SMR license.

Prospective bidders should note that the

Commission’s rules limit the total

CMRS spectrum (i.e., broadband PCS,

cellular and SMR services) in which a

party may have an attributable interest

in any geographic area at any given time

to 45 MHz. See 47 CFR 20.3–20.9. SMR

licensees will be permitted to partition

their service areas into smaller

geographic service areas and to

disaggregate their spectrum into smaller

blocks. See 47 CFR 90.911.

B. Special Financial Provisions for

Qualifying Small Businesses

Qualifying small business applicants

are eligible for bidding credits. See 47

CFR 90.910. This auction does not offer

installment payments for small business

applicants.

(1) Definitions of Small Businesses

The Commission defined the small

business definitions for the 800 MHz

SMR as (1) a ‘‘small business,’’which is

defined as an entity with average gross

revenues that do not exceed $15 million

for the preceding three years or (2) a

‘‘very small business,’’ which is defined

as an entity with average gross revenues

that do not exceed $3 million for the

preceding three years.

Gross revenues include all income

received by an entity, whether earned or

passive, before any deductions are made

for costs of doing business (e.g., cost of

goods sold), as evidenced by audited

financial statements for the relevant

number of most recently completed

calendar years, or, if audited financial

statements were not prepared on a

calendar-year basis, for the most

recently completed fiscal years

preceding the filing of the applicant’s

short-form application (FCC Form 175).

If an entity was not in existence for all

or part of the relevant period, gross

revenues shall be evidenced by the

audited financial statements of the

entity’s predecessor-in-interest or, if

there is no identifiable predecessor-ininterest, unaudited financial statements

certified by the applicant as accurate.

When an applicant does not otherwise

use audited financial statements, its

gross revenues may be certified by its

chief financial officer or its equivalent.

See 47 CFR 90.912–13.

In determining whether an entity

qualifies as a small business at either

threshold, gross revenues of all

‘‘controlling’’ principals will be

attributed to the prospective small

business applicant, as well as the gross

revenues of affiliates of the applicant.

However, personal net worth is not

included in the determination of

eligibility for bidding as a small

business. The term ‘‘control’’ includes

both de jure and de facto control of the

applicant. Typically, de jure control is

evidenced by ownership of 50.1 percent

of an entity’s voting stock. De facto

control is determined on a case-by-case

basis. An entity must demonstrate at

least the following indicia of control to

establish that it retains de facto control

of the applicant: (1) The entity

constitutes or appoints more than 50

percent of the board of directors or

partnership management committee; (2)

the entity has authority to appoint,

promote, demote and fire senior

executives that control the day-to-day

activities of the licensees; and (3) the

entity plays an integral role in all major

management decisions. The definition

of ‘‘affiliate’’ is set forth at § 90.912(d) of

the Commission’s Rules.

(2) Bidding Credits

The size of a bidding credit depends

on the annual gross revenues of the

bidder and its affiliates, as averaged

over the preceding three years: One, a

bidder with average gross annual

revenues not exceeding $15 million (a

‘‘small business’’) receives a 25-percent

discount on its winning bids for 800

MHz SMR licenses. Two, a bidder with

average gross annual revenues not

exceeding $3 million (a ‘‘very small

business’’) receives a 35-percent

discount on its winning bids for 800

MHz SMR licenses. These bidding

credits are not cumulative.

(3) Application Showing

Applicants should note that as part of

their FCC Form 175 filing they will be

required to file supporting

documentation to establish that they

satisfy the eligibility requirements to bid

as a small business or very small

business in this auction, and that they

are subject to audits to confirm their

eligibility.

(4) Unjust Enrichment

Winning bidders in the auction for

licenses in the upper 200 channels of

the 800 MHz SMR service should note

that unjust enrichment provisions apply

to winning bidders who use bidding

credits and subsequently assign or
Federal Register / Vol. 62, No. 182 / Friday, September 19, 1997 / Notices 49231

transfer control of their licenses to an

entity that does not qualify for the

special financial provisions. See 47 CFR

§ 90.910(b). Likewise, unjust enrichment

provisions apply to any licensee that

received a bidding credit and

subsequently partitions a portion of its

license or disaggregates a portion of its

spectrum to an entity that would not

have qualified for such a bidding credit.

3. Pre-Auction Procedures

A. Short-Form Application (FCC Form

175)—Due September 29, 1997

In order to be eligible to bid in this

auction, applicants must first submit an

FCC Form 175 application. This

application must be received at the

Commission by 5:30 p.m. ET on

September 29, 1997. Late applications

will not be accepted.

There is no application fee required

when filing a FCC Form 175. However,

to be eligible to bid, an applicant will

have to submit an upfront payment. See

part 3.C below.

(1) Filing Options

Auction applicants are strongly

encouraged to file their applications

electronically in order to take full

advantage of the greater efficiencies and

convenience of electronic filing, bidding

and access to bidding data. For example,

electronic filing enables the applicant

to: (a) receive interactive feedback while

completing the application, and (b)

receive immediate acknowledgement

that the FCC Form 175 has been

submitted for filing. In addition, only

those applicants who file electronically

will have the option of bidding

electronically. However, manual filing

(via hard copy) is also permitted. Please

note that manual filers will not be

permitted to bid electronically and must

bid telephonically, unless the FCC Form

175 is amended electronically prior to

the resubmission date for incomplete or

deficient applicants. Applicants who

file electronically may make

amendments to their applications up

until the filing deadline. The following

is a brief description of each filing

method.

(a) Electronic Filing. Applicants

wishing to file electronically may

generally do so on a 24-hour basis

beginning September 2, 1997. All the

information required to file the FCC

Form 175 electronically (i.e., software

and help files) will be available over

both the Internet and the FCC’s Bulletin

Board System (‘‘BBS’’). Information

about downloading, installing, and

running the FCC Form 175 application

software is included in Attachment C to

this Public Notice.

(b) Manual Filing. Auction applicants

will be permitted to file their FCC Form

175 applications in hard copy. Where

any manually filed FCC Form 175 and

175–S exceeds five pages in length, the

FCC additionally requires that all

attachments be submitted on a 3.5–inch

diskette, or the entire application be

filed in a microfiche version. Manual

filers must use a 1997 version of FCC

Form 175 and the October 1995 edition

of the 175–S (if applicable). Earlier

versions of this form will not be

accepted for filing. Copies of FCC Forms

175 and 175–S can be obtained by

calling 202–418–FORM.

Manual applications may be

submitted by hand delivery (including

private ‘‘overnight’’ courier), or by U.S.

mail (certified mail with return receipt

recommended). They must be addressed

to: FCC Form 175 Filing, Auction No.

16, Federal Communications

Commission, Auctions Division, 1270

Fairfield Road, Gettysburg, PA 17325–

7245.

Note: Manual applications delivered to any

other locations will not be accepted.

(2) Completion of the FCC Form 175

Applicants should carefully review 47

CFR 1.2105 and 90.906, and must

complete all items on the FCC Form 175

(and 175–S, if applicable). Instructions

for completing the FCC Form 175 are in

Attachment B of this Public Notice.

Failure to sign a manually filed FCC

Form 175 or failure to submit the

required ownership information (for

both electronic and manual filers) will

result in dismissal of the application

and loss of the ability to participate in

the auction. Only original signatures

will be accepted for manually filed

applications.

(3) Electronic Review of FCC Form 175

The FCC Form 175 review software

may be used to review and print

applicants’ FCC Form 175 applications.

In other words, applicants who file

electronically may review their own

completed FCC Form 175s. Applicants

also have access to view other

applicants’ completed FCC Form 175s,

after the filing deadline has passed and

the FCC has issued a public notice

explaining the status of the applications.

There is a fee of $2.30 per minute for

accessing this system. See Attachment C

for details.

B. Application Processing and Minor

Corrections

After the deadline for filing the FCC

Form 175 applications has passed, the

FCC will process all timely applications

to determine which are acceptable for

filing, and subsequently will issue a

public notice identifying: (1) Those

applications accepted for filing

(including FCC account numbers and

the licenses for which they applied); (2)

those applications rejected; and (3)

those applications which have minor

defects that may be corrected, and the

deadline for filing such corrected

applications.

As described more fully in our rules,

after the September 29, 1997 short-form

filing deadline, applicants may make

only minor corrections to their FCC

Form 175 applications. Applicants will

not be permitted to make major

modifications to their applications (e.g.,

change their license selections, change

the certifying official or change control

of the applicant). See 47 CFR 1.2105.

C. Upfront Payments—Due October 14,

1997

In order to be eligible to bid in the

auction, applicants must submit an

upfront payment accompanied by an

FCC Remittance Advice (FCC Form

159). All upfront payments must be

received by wire transfer at Mellon Bank

in Pittsburgh, Pennsylvania, by 6:00

p.m. E.T. on October 14, 1997.

Please note that:

• All payments must be made in U.S.

dollars.

• All payments must be made by wire

transfer. No other form of payment will

be accepted.

• Upfront payments for Auction 16 go

to a different lockbox number from the

one 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 October 14, 1997

deadline will result in dismissal of the

application and disqualification from

participation in the auction.

(1) Wire Transfers

For this auction, the FCC requires

applicants to make their upfront

payments by wire transfer, which

experience has shown provides the

greatest reliability and efficiency. Wire

transfer payments must be received by

6:00 p.m. ET on October 14, 1997. 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—9116878

OBI Field: (Skip one space between

each information item)
49232 Federal Register / Vol. 62, No. 182 / Friday, September 19, 1997 / Notices

‘‘AUCTIONPAY’’

FCC ACCOUNT NO. (same as FCC Form

159, Block 1)

PAYMENT TYPE CODE (enter

‘‘AW8U’’)

FCC CODE (same as FCC Form 159,

Block 17A: ‘‘16’’)

PAYOR NAME (same as FCC Form 159,

Block 3)

LOCKBOX NO. 358400

Note: The BNF and Lockbox No. are

specific to the upfront payments for this

auction; do not use BNF or Lockbox numbers

from previous auctions.

Applicants must fax a completed FCC

Form 159 to Mellon Bank at 412–236–

5702 at least one hour before placing the

order for the wire transfer (but on the

same business day). On the cover sheet

of the fax, write ‘‘Wire Transfer—

Auction Payment for Auction Event

#16’’.

(2) FCC Form 159

Each upfront payment must be

accompanied by a completed FCC

Remittance Advice (FCC Form 159).

Proper completion of FCC Form 159 is

critical to ensuring correct credit of

upfront payments.

(3) Amount of Upfront Payment

We have applied a uniform discount

factor to the upfront payments

associated with each license across the

board, discounting the $0.02 per

bidding unit to take into account the

large amount of incumbency that exists

in the upper 800 MHz SMR channels.

This incumbency factor has been

applied equally across all channel

blocks and geographic areas and has not

been adjusted for different levels of

incumbencies in each individual block

or area. The upfront payment amounts

listed in Attachment A reflect these

calculations.

The amount of the upfront payment

required to bid on a particular license in

Auction No. 16 is listed in Attachment

A to this Public Notice. Upfront

payments will be translated into bidding

units to define the bidder’s maximum

bidding eligibility for the licenses for

which it has applied.

Thus, an applicant does not have to

make an upfront payment to cover all

licenses for which it has applied.

Rather, the total upfront payment

defines the maximum amount of

bidding units the applicant will be

permitted to bid on (including standing

high bids) in any single round of

bidding. At a minimum, an applicant’s

total upfront payment must be enough

to establish eligibility to bid on at least

one of the licenses applied for on its

FCC Form 175, or else the applicant will

not be eligible to participate in the

auction.

In calculating the upfront payment

amount, an applicant should determine

the maximum number of bidding units

it may wish to be active on in any single

round, and submit an upfront payment

covering that number of bidding units.

(See part 4.A(2) for a discussion of

activity and bidding units.)

Note: An applicant may, on its FCC Form

175, apply for every license being offered, but

its actual bidding in any round will be

limited by the bidding units reflected in its

upfront payment. As explained in parts

4.A(2) and 4.A(4) below, bidders will be

required to remain active in each round of

the auction on a specified percentage of

bidding units reflected in their upfront

payment in order to retain their current

eligibility.

(4) Refunds

The FCC plans to use wire transfers

for all Auction 16 refunds. To avoid

delays in processing refunds, applicants

should include wire transfer

instructions with any refund request

they file; they may also provide this

information in advance by faxing it to

the FCC Billings and Collections

Branch, ATTN: Regina Dorsey or

Linwood Jenkins, at 202–418–2843.

(Applicants should also note that

implementation of the Debt Collection

Improvement Act of 1996 requires the

FCC to obtain a Taxpayer Identification

Number before it can disburse refunds.)

Eligibility for refunds is discussed later

in part 5.D.

D. Auction Registration

No later than five business days

before the auction, the FCC will issue a

public notice announcing all qualified

bidders for the auction. Qualified

bidders are those applicants whose FCC

Form 175 applications have been

accepted for filing and who have timely

submitted upfront payments sufficient

to make them eligible to bid on at least

one of the licenses for which they

applied.

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 only will be sent

to the contact person at the applicant

address listed in the FCC Form 175.

Applicants who do not receive both

registration mailings will not be able to

submit bids. Therefore, any qualified

applicant who has not received both

mailings within three business days

after the release of the qualified bidders

public notice should contact the FCC

National Call Center at 888–CALL–FCC

(888–225–5322, press option #2 at the

prompt). 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.

Qualified bidders should note that

lost login codes, passwords or bidder

identification numbers can only be

replaced by appearing in person at the

FCC Auction Headquarters located at 2

Massachusetts Avenue, N.E.,

Washington, D.C. 20002. Only an

authorized representative or certifying

official, as designated on an applicant’s

FCC Form 175, may appear in person

with two forms of identification (one of

which must be a photo identification) in

order to receive replacement codes.

E. Remote Electronic Bidding Software

Qualified bidders who file or amend

the FCC Form 175 electronically are

allowed to bid electronically, but must

purchase remote electronic bidding

software for $175.00, including shipping

and handling, by October 15, 1997.

(Auction software is tailored to a

specific auction, so software from prior

auctions will not work for Auction 16.)

Bidders who order remote bidding

software by the ordering deadline will

receive it with the registration mailings.

A software order form will appear in a

subsequent public notice.

F. Mock Auction

All applicants whose FCC Form 175s

have been accepted for filing will be

eligible to participate in a mock auction

beginning October 23, 1997. 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. Due to

different bidding procedures in this

auction from previous Commission

auctions, participation by all bidders is

strongly recommended. Details will be

announced by public notice.

4. Auction Event

The first round of the auction will

begin at 10:00 am ET on October 28,

1997.

A. Auction Structure

(1) Simultaneous Multiple Round

Auction

The 525 EA licenses in the upper 200

channels of the 800 MHz SMR service

will be awarded through a single,

simultaneous multiple round auction.

Unless otherwise announced, bids will

be accepted on all licenses in each

round of the auction.
Federal Register / Vol. 62, No. 182 / Friday, September 19, 1997 / Notices 49233

(2) Maximum Eligibility and Activity

Rules

As explained in part 3.B(3) above, the

amount of the upfront payment

submitted by a bidder determines the

initial maximum eligibility (in bidding

units) for each bidder. In order to ensure

that the auction closes within a

reasonable period of time, an activity

rule requires bidders to bid actively

throughout the auction, rather than wait

until the end before participating.

Bidders are required to be active on a

percentage of their maximum eligibility

during each round of the auction.

Details of the specific percentages for

each stage are set forth under Auction

Stages in part 4.A(4) below. A bidder

that does not satisfy the activity rule

will either lose bidding eligibility or use

an activity rule waiver, as explained by

Activity Rule Waivers and Reducing

Eligibility in part 4.A(3) below.

A bidder is considered active on a

license in the current round if it either

is the high bidder at the end of the

previous bidding period and does not

withdraw the high bid in the current

round, or if it submits an acceptable bid

in the current round (see Minimum

Acceptable Bids in part 4.B(2) below). A

bidder’s activity level in a round is the

sum of the bidding units associated with

licenses on which the bidder is active.

The minimum required activity level is

expressed as a percentage of the bidder’s

maximum bidding eligibility and

increases as the auction progresses, as

set forth under Auction Stages in parts

4.A(4) and 4.A(5) below.

(3) Activity Rule Waivers and Reducing

Eligibility

Each bidder will be provided five

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. An activity

rule waiver applies to an entire round

of bidding and not to a particular

license.

The FCC 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 bidding period where a bidder’s

activity level is below the minimum

required unless: (1) There are no activity

rule waivers available; or (2) the bidder

overrides the automatic application of a

waiver by reducing eligibility, thereby

meeting the minimum requirements.

A bidder with insufficient activity

who wants to reduce its bidding

eligibility rather than use an activity

rule waiver must affirmatively override

the automatic waiver mechanism during

the bidding period by using the reduce

eligibility function in the software. In

this case, the bidder’s eligibility is

permanently reduced to bring the bidder

into compliance with the activity rules

as described in Auction Stages, part

4.A(4) below. Once eligibility has been

reduced, a bidder will not be permitted

to regain its lost bidding eligibility.

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 bidding period 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.

(4) Auction Stages

The auction is composed of three

stages, which are each defined by an

increasing activity rule. Below are the

proposed activity levels for each stage of

the auction. The FCC reserves the

discretion to alter the activity

percentages before and during the

auction.

Stage One: In each round of the first

stage of the auction, a bidder desiring to

maintain its current eligibility is

required to be active on licenses

encompassing at least 80 percent of its

current bidding eligibility. Failure to

maintain the requisite activity level will

result in a reduction in the bidder’s

bidding eligibility in the next round of

bidding (unless an activity rule waiver

is used). During Stage One, reduced

eligibility for the next round will be

calculated by multiplying the current

round activity by five-fourths (5⁄4).

Stage Two: In each round of the

second stage, a bidder desiring to

maintain its current eligibility is

required to be active on 90 percent of its

current bidding eligibility. During Stage

Two, reduced eligibility for the next

round will be calculated by multiplying

the current round activity by ten-ninths

(10/9).

Stage Three: In each round of the

third stage, a bidder desiring to

maintain its current eligibility is

required to be active on 98 percent of its

current bidding eligibility. In this final

stage, reduced eligibility for the next

round will be calculated by multiplying

the current round activity by fiftyfortyninths (50/49).

Caution: Since activity requirements

increase in each auction stage, bidders

must carefully check their current

activity during the bidding period of the

first round following a stage transition.

This is especially critical for bidders

who have standing high bids and do not

plan to submit new bids. In past

auctions, some bidders inadvertently

lost bidding eligibility or used an

activity rule waiver because they did

not reverify their activity status at stage

transitions. Bidders may check their

activity against the required minimum

activity level by using the bidding

software’s bidding module.

(5) Stage Transitions

The auction will start in Stage One.

Under our general guidelines it will

advance to the next stage (i.e., from

Stage One to Stage Two, and from Stage

Two to Stage Three) when in each of

three consecutive rounds of bidding, the

high bid has increased on 10 percent or

less of the licenses being auctioned (as

measured in bidding units). However,

the FCC retains the discretion to

accelerate the auction by

announcement. This determination will

be based on a variety of measures of

bidder activity including, but not

limited to, the auction activity level, the

percentages of licenses (measured in

terms of bidding units) on which there

are new bids, the number of new bids,

and the percentage increase in revenue.

(6) Auction Stopping Rules

Barring extraordinary circumstances,

bidding will remain open on all licenses

until bidding stops on every license.

Thus, the auction will close for all

licenses when one round passes during

which no bidder submits a new

acceptable bid on any license, applies a

proactive waiver, or withdraws a

previous high bid.

The FCC retains the discretion,

however, to keep an auction open even

if no new acceptable bids or proactive

waivers are submitted, and no previous

high bids are withdrawn. In this event,

the effect will be the same as if a bidder

had submitted a proactive waiver. Thus,

the activity rule will apply as usual, and

a bidder with insufficient activity will

either lose bidding eligibility or use an

activity rule waiver (if it has any left).

Further, in its discretion, the FCC

reserves the right to declare that the

auction will end after a specified

number of additional rounds (‘‘special

stopping rule’’). If the FCC invokes this

special stopping rule, it will accept bids

in the final round(s) only for licenses on

which the high bid increased in at least

one of the preceding specified number

of rounds. The FCC intends to exercise
49234 Federal Register / Vol. 62, No. 182 / Friday, September 19, 1997 / Notices

this option only in extreme

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. Before

exercising this option, the FCC is likely

to attempt to increase the pace of the

auction by, for example, moving the

auction into the next stage (where

bidders would be required to maintain

a higher level of bidding activity),

increasing the number of bidding

rounds per day, and/or increasing the

amount of the minimum bid increments

for the limited number of licenses where

there is still a high level of bidding

activity.

(7) Auction Delay, Suspension or

Cancellation

By public notice or by announcement

during the auction, the FCC 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 FCC, in its

sole discretion, may elect to: resume the

auction starting from the beginning of

the current round; resume the auction

starting from some previous round; or

cancel the auction in its entirety.

Network interruption may cause the

FCC to delay or suspend the auction.

B. Bidding Procedures

(1) Round Structure

The initial bidding schedule will be

announced by public notice at least one

week before the start of the auction, and

will be included in the registration

mailings. The round structure for each

bidding round contains a single bidding

period followed by the release of the

round results. Participants should note

that the round structure for this auction

is the same structure as was used in the

recent Wireless Communications

Service auction. This format is different

from the round structure used in

previous Commission auctions.

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

performance and review periods, or the

number of rounds per day, depending

upon the bidding activity level and

other factors.

(2) Minimum Acceptable Bids

There will be no minimum opening

bid and no minimum bid increment for

a license until the license has received

an initial bid. For further discussion, see

pages five and six above. Once there is

a standing high bid on a license, a bid

increment will be applied to that license

to establish a minimum acceptable bid

for the following round. The

Commission will release the specific

methodology for calculating this

increment before the start of the auction.

(3) High Bids

Each bid will be date-and timestamped when it is entered into the

computer system. In the event of tie

bids, the Commission will identify the

high bidder on the basis of the order in

which bids are received by the

Commission, starting with the earliest

bid.

(4) Bidding

Durng a bidding period, a bidder may

submit bids for as many licenses as it is

eligible, as well as withdraw high bids

from previous bidding periods, remove

bids placed in the same bidding period,

or permanently reduce eligibility.

Bidders also have the option of making

multiple submissions and withdrawals

in each bidding period, and will not

have a separate period to withdraw bids.

If a bidder enters multiple bids for a

license in the same round, the system

takes the last bid entered as that

bidder’s bid for the round. A bidder’s

maximum eligibility in the first round of

the auction is determined by: (a) The

licenses applied for on FCC Form 175

and (b) the upfront payment amount

deposited. The bid submission screens

will be tailored for each bidder to

include only those licenses for which

the bidder applied on its FCC Form 175.

A bidder also has the option to further

tailor its bid submission screens to call

up specified groups of licenses.

The bidding software requires each

bidder to login to the FCC Auction

System during the bidding period using

the FCC Account Number, Bidder

Identification Number, and confidential

security codes provided in the

registration materials. Bidders are

encouraged to download and print bid

confirmations after they submit their

bids.

(5) Bid Withdrawal and Bid Removal

(a) Procedures. Before the close of a

bidding period, a bidder has the option

of removing any bids placed in that

round. By using the remove bid function

in the software, a bidder may effectively

‘unsubmit’ any bid placed within that

round. A bidder removing a bid placed

in the same round is not subject to

withdrawal payments. Note that

removing a bid will affect a bidder’s

eligibility for the round in which it is

removed.

Once a round closes, a bidder may no

longer remove a bid. However, in the

next round, a bidder may withdraw

standing high bids from previous

rounds using the withdraw bid function.

A high bidder that withdraws its

standing high bid from a previous round

is subject to the bid withdrawal

payments specified in 47 CFR 90.905.

The procedure for withdrawing a bid

and receiving a withdrawal

confirmation is essentially the same as

the bidding procedure described in

Bidding, part 4.B(4) above. To prevent

strategic delays to the close of the

auction, the FCC retains the discretion

to limit the number of times that a

bidder may re-bid on a license from

which it has withdrawn a high bid.

Bidders should note that abuse of the

Commission’s bid withdrawal

procedures could result in the denial of

the ability to bid on a market.

If a high bid is withdrawn, the license

will be offered in the next round at the

second highest bid price, which may be

less than, or equal to, in the case of tie

bids, the amount of the withdrawn bid,

without any bid increment. The FCC

will serve as a ‘‘place holder’’ on the

license until a new acceptable bid is

submitted on that license.

(b) Calculation. Generally, a bidder

who withdraws a standing high bid

during the course of an auction will be

subject to a payment equal to the lower

of (1) the difference between the net

withdrawn bid and the subsequent net

winning bid, or (2) the difference

between the gross withdrawn bid and

the subsequent gross winning bid for

that license. See 47 CFR 90.905. No

withdrawal payment will be assessed if

the subsequent winning bid exceeds the

withdrawn bid.

(6) Round Results

The bids placed during a bidding

period are not published until the

conclusion of that bidding period. After

a bidding period closes, the FCC will

compile reports of all bids placed, bids

withdrawn, current high bids, new

minimum accepted bids, and bidder

eligibility status (bidding eligibility and

activity rule waivers), and post the

reports for public access.

Reports reflecting bidders’ identities

and bidder identification numbers for

Auction 16 will be available before and

during the auction. Thus, bidders will

know in advance of this auction the

identities of the bidders against whom

they are bidding.
Federal Register / Vol. 62, No. 182 / Friday, September 19, 1997 / Notices 49235

(7) Auction Announcements

The FCC will use auction

announcements to announce items such

as schedule changes and stage

transitions. All FCC auction

announcements will be available on the

FCC remote electronic bidding system,

as well as the Internet and the FCC

Bulletin Board System.

(8) Other Matters

As noted in part 3.B above, 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 revision of exhibits. Filers

should make these changes on-line, and

submit a letter to Kathleen O’Brien

Ham, Chief, Auctions Division, Wireless

Telecommunications Bureau, Federal

Communications Commission, 2025 M

Street, NW., Room 5322, Washington,

DC, 20554 (and mail a separate copy to

Alice Elder, Auctions Division), briefly

summarizing the changes. Questions

about other changes should be directed

to the FCC Auctions Division at 202–

418–0660.

5. Post-Auction Procedures

A. Down Payments and Withdrawn Bid

Payments

After bidding has ended, the FCC will

issue a public notice declaring the

auction closed (‘‘auction closing

notice’’), identifying the winning bids

and bidders for each license, and listing

withdrawn bid payments due.

Within ten business days after release

of the public notice announcing the

close of the auction, each winning

bidder must submit sufficient funds to

bring the total amount of money on

deposit with the government (upfront

payment less any withdrawal payments)

to 20 percent of its high bids, unless it

is an eligible small or very small

business who elected to bid using

bidding credits, then it must submit

sufficient funds to bring the total

amount of money on deposit with the

government (upfront payment less any

withdrawal payments) to 20 percent of

its net winning bids (actual bids less

any applicable bidding credits). See 47

CFR 90.907. In addition, by the same

deadline all bidders must pay any

withdrawn bid amounts due under

§ 90.905 of the Commission’s Rules, as

discussed in part 4.B(5) above. Upfront

payments are applied first to satisfy any

outstanding bid withdrawal payments

before being applied toward down

payments. 47 CFR 1.2104(g)(2).

B. Long-Form Application

Within ten business days after release

of the auction closing notice, winning

bidders must submit a properly

completed long-form application and

required exhibits for each 800 MHz

SMR license won through the auction.

Winning small business or very small

business bidders must include an

exhibit demonstrating their eligibility

for the small business provisions. See 47

CFR 1.2107 (c)–(d). Further filing

instructions will be provided to auction

winners at the close of the auction.

C. Application Processing and Grant;

Final Payments

Once a high bidder has submitted its

down payment and filed an acceptable

long-form application, the FCC will

release a public notice announcing

acceptance of the long-form application.

Unless otherwise announced, parties

will have thirty days following the

public notice to file petitions to deny.

Oppositions to petitions to deny are due

within ten days after the filing of the

petition to deny. Replies to oppositions

may be filed within five days after the

time for filing the oppositions has

expired. See 47 CFR 1.45, 1.2105(b) and

(c). If the Commission dismisses or

denies all petitions to deny, the

Commission will announce by public

notice that it is prepared to award a

license, and the winning bidder will

then have ten business days to submit

the balance of its winning bid. If this

payment is made, the license will be

granted.

Winning bidders will receive further

instructions and detailed payment

information after the auction closes.

D. Refund of Remaining Upfront

Payment Balance

All applicants who submitted upfront

payments but were not winning bidders

for any 800 MHz SMR 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.

Bidders who drop out of the auction

completely may be eligible for a refund

of their upfront payments before the

close of the auction. However, bidders

who reduce their eligibility and remain

in the auction are not eligible for partial

refunds of upfront payments until the

close of the auction. Qualified bidders

who have exhausted all 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, along with a

Taxpayer Identification Number (‘‘TIN’’)

and a copy of their bidding eligibility

screen print, to: Federal

Communications Commission, Billings

and Collections Branch, Attn: Regina

Dorsey or Linwood Jenkins, 1919 M

Street, NW., Room 452, Washington, DC

20554.

Bidders can also fax their request to

the Billings and Collections Branch at

(202) 418–2843. Once the request has

been approved, a refund will be sent to

the address provided on the FCC Form

159.

Note: Refund processing generally takes up

to two weeks to complete. Bidders with

questions about refunds should contact

Regina Dorsey or Linwood Jenkins at 202–

418–1995.

E. Default and Disqualification

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 § 90.905 of the

Commission’s Rules. In the event that

the amount of those payments cannot be

determined (i.e., until the license has

been reauctioned), the FCC can require

a ‘‘deposit’’ of at least three (3) percent

of the defaulted bid amount. See In Re

C. H. PCS, Inc., BTA No. B347

Frequency Block C, Order, DA 96–1825

(released November 4, 1996). See also

Wireless Telecommunications Bureau

Will Strictly Enforce Default Payment

Rules, Public Notice, DA 96–41 (April 4,

1996). Under certain circumstances the

FCC can also reauction the license to

existing or new applicants, or offer it to

the other highest bidders (in descending

order) at their final bids. See 47 CFR

90.905. In addition, if a default or

disqualification involves gross

misconduct, misrepresentation or bad

faith by an applicant, the FCC 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 1.2107(d).

F. Service and Construction

Requirements

EA-based licensees in the upper 200

channels of the 800 MHz SMR service

are subject to a five-year construction

deadline. See 47 CFR 90.685.

News Media Contact: Audrey Spivack

(202) 418–0654
49236 Federal Register / Vol. 62, No. 182 / Friday, September 19, 1997 / Notices

Wireless Telecommunications Bureau

Contacts:

Internet address: http://www.fcc.gov/

wtb

Auctions and Industry Analysis

Division:

Legal Questions (auctions rules)—

Alice Elder (202) 418–0660

General Information—Kathy Garland

(888) 225–5322 (press option #2 at

the prompt) and Ruby Hough (202)

418–0660

Commercial Wireless Division:

Legal Questions (service rules)—

Wilbert Nixon (202) 418–0620

Licensing Questions—Eric Smith and

Linda Spence (888) 225–5322 (press

option #2 at the prompt)

Federal Communications Commission.

Shirley S. Suggs,

Chief, Publications Branch.

Attachment A—List of Licenses Offered

The attached table lists the 525

licenses to be auctioned in the upper

200 channels of the 800 MHz SMR

service. The licenses consist of three

licenses in each of 175 Economic Area

(‘‘EAs’’). More information regarding

EAs is available on the Commission’s

Office of Engineering and Technology’s

Internet web page at: http://

www.fcc.gov/oet/info/maps/bea/

Attachment B— Guidelines for

Completion of FCC Forms 159 and 175

and Exhibits

A. FCC Form 175

Because of the significance of the

Form 175 application to the auction,

bidders should especially note the

following:

Paper form version: Manual filers

must use a 1997 edition of the FCC

Form 175 and the October 1995 edition

of the 175–S (if applicable). Earlier

versions of the FCC Form 175 will not

be accepted. Copies of the FCC Form

175 can be obtained by calling the

Commission’s Forms Distribution

Center at 1–800–418–3676 (outside

Washington, D.C.) or 202–418–3676 (in

the Washington area). Copies of the FCC

Form 175 can also be obtained via FaxOn-Demand at 202–418–0177. If

applicants have any questions

concerning availability of the FCC Form

175, they should call the FCC Records

Management Branch at 202–418–0210.

Items 2–5: Give a street address (not

a Post Office box number) for the

applicant, suitable for mail or private

parcel delivery. The FCC will send all

registration materials and other written

communications to the applicant at this

address.

Item 6: The 800 MHz SMR auction

will be the sixteenth auction conducted

by the FCC. For ‘‘Auction No.’’ in item

6 of the FCC Form 175, enter ‘‘16.’’

Item 7: Applicants must create a tendigit FCC Account Number, which the

Commission will use to identify and

track applicants:

• A bidder that has a taxpayer

identification number (TIN) must create

this FCC account number by using its

TIN, plus the prefix of ‘‘0’’ (i.e.,

0123456789). A TIN is either the

Employer Identification Number (EIN)

in the case of a business, or the Social

Security Number (SSN) in the case of an

individual.

• If—and only if—an applicant does

not have a taxpayer identification

number, the applicant should use its

ten-digit area code and telephone

number (i.e., 2025551234) on an interim

basis. However, the FCC must have a

TIN before it will be able to issue a

license or refund upfront payments.

Each applicant must include its FCC

Account Number when submitting

amendments, additional information, or

other correspondence or inquiries

regarding its application, and must

include this same number on each FCC

Form 159 (FCC Remittance Advice)

accompanying required auction deposits

or payments.

Item 8: Applicants must indicate their

legal classification. The July 1997

version of FCC Form 175 requires the

applicant to classify itself as an

individual, partnership, trust,

corporation, government entity, limited

liability company (LLC) or association.

In the event an applicant that classifies

itself as a government entity, LLC or

association uses an earlier version of the

form (which does not include these

specific classifications), it should check

the box labelled ‘‘other’’ and specify its

classification in the blank space

provided.

Items 9 and 10: A box does not need

to be checked in Item 9 unless small

business status is selected in Item 10.

Applicants should be aware that they

will be committed to their election

choices. (Applicants are also requested

to indicate their status as a rural

telephone company, minority-owned

business or women-owned business as

well, so the FCC can monitor its

performance in promoting economic

opportunities for these designated

entities.) Be advised that this is the sole

opportunity applicants have to elect

small business status and bidding credit

level (if applicable), and there is no

opportunity to change the election(s)

made once the short-form filing

deadline passes.

• Small or very small business

applicants eligible for bidding credits

should check that gross revenues do not

exceed the maximum dollar amount

specified in the FCC rules governing the

auctionable service in Item 9.

• Small or very small business

applicants should enter the applicable

bidding credit in Item 10: either 25 or

35 percent. Applicants should be aware

that this is the sole opportunity that

they will have to elect the appropriate

bidding credit.

• Applicants should leave the

Installment Payment Plan Type blank,

as none is available for this auction.

Item 11: For each license on which

they seek bidding eligibility, applicants

must identify the market number in the

Market No. column, and the frequency

block or blocks in the Frequency Block/

Channel No. set of columns. The market

number for each EA is listed in

Attachment A; frequency blocks are A,

B, and C. Applicants that wish to bid on

all EAs in a given frequency block or

blocks should check the ‘‘ALL’’ box in

the Market No. column and list the

frequency block or blocks desired in the

Frequency Block/Channel No. headings.

If filing manually, the FCC Form 175

provides space to list only five markets,

applicants should use one or more FCC

Form 175–S to list any additional

markets.

Applicants should identify all

licenses they want to be eligible to bid

on in the auction in Item 11. Be advised

that there is no opportunity to change

this list once the short-form filing

deadline passes. The FCC auction

system will not accept bids on licenses

an applicant has not applied for on its

FCC Form 175.

Item 12: Applicants must list the

name(s) of the person(s) (no more than

three) authorized to represent them at

the auction. Only those individuals

listed on the FCC Form 175 will be

authorized to place or withdraw bids for

the applicant during the auction.

Certifications: Applicants should

carefully read the list of certifications on

the FCC Form 175. These certifications

help to ensure a fair and competitive

auction and require, among other things,

disclosure to the Commission of certain

information on applicant ownership and

agreements or arrangements concerning

the auction. Submission of an FCC Form

175 application constitutes a

representation by the certifying official

that he or she is an authorized

representative of the applicant, has read

the form’s instructions and

certifications, and that the contents of

the application and its attachments are

true and correct. Submission of a false

certification to the Commission may

result in penalties, including monetary

forfeitures, license forfeitures,
Federal Register / Vol. 62, No. 182 / Friday, September 19, 1997 / Notices 49237

ineligibility to participate in future

auctions, and/or criminal prosecution.

Contact person: If the Commission

wishes to communicate with the

applicant by telephone or fax, those

communications will be directed to the

contact person identified on the FCC

Form 175. Space is provided for both a

telephone number, fax number, and email address. All written

communication and registration

information will be directed to the

applicant’s contact person at the address

specified on the FCC Form 175.

Applicants must provide a street

address; no P.O. Box addresses may be

used.

Signature: Manually filed FCC Form

175s must bear an original signature.

Absence of an original signature will

result in dismissal of the application

and disqualification from participating

in the auction. (Applicants filing

electronically should type the name of

the certifying official in the signature

block.)

Paper or Diskette Copies: For this

auction the FCC will accept, in lieu of

paper copies, a 3.5-inch diskette which

contains ASCII text (.TXT) files of all

exhibit documentation attached to the

FCC Form 175. (Applicants that use a

word processing program to prepare

these files must be sure to save the files

in the ASCII format before submitting

the diskette, and verify that the ASCII

files contain all exhibit information.)

Completeness: Applicants must

submit all information required by the

FCC Form 175 and by applicable rules,

including a certifying signature on

manual filings. Failure to submit

required information by the

resubmission date will result in

dismissal of the application and

inability to participate in the auction.

See 47 CFR 1.2105(b).

Continuing Accuracy: Each applicant

is responsible for the continuing

accuracy and completeness of

information furnished in the FCC Form

175 and its exhibits. See 47 CFR § 1.65.

It is the FCC’s position that ten business

days from a reportable change is a

reasonable period of time in which

applicants must amend their FCC Form

175s. Applicants are reminded that

Certification 6 on the FCC Form 175

includes consent to be audited.

B. Exhibits and Attachments

In addition to the FCC Form 175

itself, applicants must submit additional

information required by the FCC’s rules.

Although we do not require a particular

format for this information, we have

developed the following guidelines that

will facilitate the processing of shortform applications. We encourage

applicants filing both electronically and

manually to submit this information

using the following format. All exhibits

must be in ASCII text (.TXT).

Exhibit A—Applicant Identity and

Ownership Information: 47 CFR

1.2105(2)(ii) requires each applicant to

fully disclose the real party or partiesin-interest in an exhibit to its FCC Form

175 application. The information should

provide the name, citizenship and

address of all partners, if the applicant

is a partnership; or a responsible officer

or director, if the applicant is a

corporation; of the trustee, if the

applicant is a trust; or, if the applicant

is none of the foregoing, list the name,

address and citizenship of a principal or

other responsible person.

Exhibit B—Agreements with Other

Parties/Joint Bidding Arrangements:

Applicants must attach an exhibit

identifying all parties with whom they

have entered into any agreements,

arrangements or understandings which

relate in any way to the licenses being

auctioned, including any relating to the

post-auction market structure. See 47

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

Be aware that pursuant to

Certification (4) on the FCC Form 175,

the applicant certifies that it will not

enter into any explicit or implicit

agreements or understandings of any

kind with parties not identified in the

application regarding bid amounts,

bidding strategies or the particular

licenses the applicant will or will not

bid. See 47 CFR 1.2105(a)(2)(ix). To

prevent collusion, the Commission’s

rules generally prohibit communication

during the course of the auction among

applicants for the same license areas

when such communications concern

bids, bidding strategies, or settlements.

47 CFR 1.2105(c).

Exhibit C—Status as a Small or Very

Small Business Applicant: Applicants

claiming status as a small or very small

business must attach an exhibit

regarding this status.

• Small or very small business

applicants must state the average gross

revenues for the preceding three years

for the applicant (including affiliates),

as prescribed by 47 CFR 90.913.

Certification that the average gross

revenues for the preceding three years

do not exceed the required limit is not

sufficient.

Exhibit D—Information Requested of

Designated Entities: Applicants owned

by minorities or women as defined in 47

CFR 1.2110(b), or who are rural

telephone companies, may attach an

exhibit regarding this status. This

information, in conjunction with the

information in Item 10, will assist the

Commission in monitoring the

participation of these ‘‘designated

entities’’ in its auctions.

Exhibit E—Miscellaneous

Information: Applicants wishing to

submit additional information should

include it in Exhibit E.

Applicants are reminded that all

information required in connection with

applications to participate in spectrum

auctions is necessary to determine the

applicants’ qualifications, and as such

will be available for public inspection.

Required proprietary information may

be redacted, or confidentiality may be

requested, following the procedures set

out in 47 CFR 0.459. Any such requests

must be submitted in writing to

Kathleen O’Brien Ham, Chief, Auctions

Division, Wireless Telecommunications

Bureau, Federal Communications

Commission, 2025 M Street, NW., Room

5322, Washington, DC 20554 (with a

separate copy mailed to Alice Elder,

Auctions Division), in which case the

applicant must indicate in Exhibit E that

it has filed a confidentiality request.

Because the required information bears

on applicants’ qualifications, the FCC

envisions that confidentiality requests

will not be routinely granted.

Waivers: Applicants requesting

waiver of any rules must submit a

statement of reasons sufficient to justify

the waiver sought.

Auction Specific Instructions: FCC

Remittance Advice, FCC Form 159

Upfront Payments

The following information

supplements the standard instructions

for FCC Form 159, and is provided to

help ensure its correct completion for

upfront payments for the 800 MHz

Specialized Mobile Radio Service (SMR)

auction (Auction 16). Applicants need

to complete FCC Form 159 carefully,

since:

Mistakes may affect their bidding

eligibility, and

Lack of consistency between

information in FCC Form 159, FCC

Form 175, FCC Form 600, and

correspondence about an application

may cause processing delays.

Therefore appropriate cross-references

between the FCC Form 159 Remittance

Advice and the FCC Form 175 Short

Form Application are described below.
49238 Federal Register / Vol. 62, No. 182 / Friday, September 19, 1997 / Notices

Block No. Required information

(RESERVED) ...... In the upper left hand corner of the form is a rectangle with ‘‘(RESERVED)’’ in the middle. Enter the number ‘‘358400’’

somewhere in this rectangle.

1 .......................... FCC Account Number—Same as FCC Form 175, block 7. Note: It is critical that this number exactly match the applicant’s

account number shown on FCC Form 175.

2 .......................... Total Amount Paid—Enter the total amount of the upfront payment associated with the FCC Form 159.

3 .......................... Payor Name—Enter the name of the person or company making the payment. If the applicant itself is the payor, this entry

would be the same as FCC Form 175, block 1.

4–8 ...................... Street Address, City, State, ZIP Code—Enter the street mailing address (not Post Office box number) where mail should be

sent to the payor. If the applicant is the payor, these entries would be the same as FCC Form 175, blocks 2 through 5.

9 .......................... Daytime Telephone Number—Enter the telephone number of a person knowledgeable about this upfront payment.

10 ........................ Country Code—For addresses outside the United States, enter the appropriate postal country code (available from the Mailing Requirements Department of the U.S. Postal Service).

14A ...................... Payment Type Code—Enter ‘‘AW8U.’’

15A ...................... Quantity—Enter the numeral ‘‘1.’’

16A ...................... Amount Due—Enter the total upfront payment indicated in block 2.

17A ...................... FCC Code 1—Enter the number ‘‘16’’ (indicating Auction 16).

Notes:

• Blocks 12A and 18A do not apply, so

leave them blank.

• If applicant is different from the payor,

complete blocks 11A, 13A, 19A, 20A and

21A for the applicant, using the same

information shown on FCC Form 175.

Otherwise leave them blank.

• Since this auction does not involve

multiple applications, leave blocks 11B

through 21B blank. For the same reason, do

not use Advice (Continuation Sheet), FCC

Form 159-C, for upfront payments.

• Since credit card payments will not be

accepted for this auction, leave blocks 22 and

23 blank.

Attachment B contains blank copies of FCC

Forms 175 and 159.

Electronic filers use on-line software to

generate these forms and do not need paper

copies. Manual filers can obtain paper copies

by calling 202–418–FORM.

Attachment C—Electronic Filing of FCC

Form 175

The Commission has implemented a

remote access system to allow

applicants to submit their FCC Form

175 applications electronically. The

remote access system for initial filing of

the FCC Form 175 applications will

generally be available 24 hours per day

beginning at approximately the same

time as the release of this Public Notice.

FCC Form 175 applications that are filed

electronically using this remote access

system must be submitted and

confirmed by 5:30 p.m. ET on

September 29, 1997. Late applications

or unconfirmed submissions of

electronic data will not be accepted. The

electronic filing process consists of an

initial filing period and a resubmission

period to make minor corrections.

The FCC Remote Electronic Auction

System includes various software, with

which applicants can:

1. file an FCC Form 175 short-form

application,

2. review other FCC Form 175

applications filed,

3. submit and withdraw bids and

activity rule waivers,

4. receive auction messages/

announcements and submit

suggestions,

5. create and download customized

round results files, and

6. file a long-form application.

In 1995 the FCC issued a Report and

Order in WT Docket No. 95–69, FCC 95–

308, 60 FR 38,276 (July 26, 1995),

establishing fair and reasonable charges

for auction software and on-line access

to the FCC’s wide area network to use

the software. It established the following

schedule of charges:

Software

Access

per

minute

FCC Form 175 Filing ..... FREE .. FREE.

FCC Form 175 Review .. FREE .. $2.30.

Bid Submission .............. $175.00 $2.30.

Messages/Announcements.FREE .. $2.30.

Suggestion Box .............. FREE .. $2.30.

Round Results Reports .. FREE .. $2.30.

Bidding Analysis ............. FREE .. OffLine.

Parties interested in filing FCC Form

175 applications electronically may do

so in one of two ways:

• Via a (202) number code telephone

service with no additional access charge

or

• Via a 900 number telephone service

at a charge of $2.30 per minute. The first

minute of connection time to the 900

number service will be at no charge.

Similarly, parties interested in

reviewing FCC Form 175 applications

electronically will do so via the 900

telephone service at a charge of $2.30

per minute. The first minute of

connection time to the 900 number

service will be at no charge. Applicants

who wish to file their FCC Form 175

electronically or review other FCC Form

175 applications on-line will need the

following hardware and software:

Hardware Requirements

• CPU: Intel 80486 or above

• RAM: 8 MB RAM (more

recommended if you intend to open

multiple applications)

• Hard Disk: 12 MB available disk space

• Modem: v.32bis 14.4kbps Hayes

compatible modem

• Monitor: VGA or above

• Mouse or other pointing device

To create backup installation disks for

the FCC Form 175 Application, you will

need the following:

• 1.44 MB 3.5′′ Floppy Drive

• Three blank MS–DOS formatted

1.44-MB floppy disks

Software Requirements

• FCC Form 175 Application Software

(available through the Internet and the

FCC Bulletin Board System)

• Microsoft Windows 3.1 or Microsoft

Windows for Workgroups v3.11

Note: The FCC Form 175 Application has

not been tested in a Macintosh, OS/2, or

Windows 95 environment. Therefore, the

FCC will not support operating systems other

than Microsoft Windows 3.1 or Microsoft

Windows for Workgroups v3.11. This

includes any other emulated Windows

environment. If your Windows is in a

networked environment, check with your

local network administrator for any potential

conflicts with the PPP (Point-to-Point

Protocol) Dialer that is incorporated into the

FCC Form 175 Application. This usually

includes any TCP/IP installed network

protocol.

The PPP Dialer that is incorporated

into the FCC Form 175 Application will

establish a point-to-point connection

from your PC to the FCC Network. This

point-to-point connection is not routed

through the Internet.

Applicants who wish to file their FCC

applications electronically or who wish

to view other applicants’ applications
Federal Register / Vol. 62, No. 182 / Friday, September 19, 1997 / Notices 49239

must first download the software from

either the Internet or the FCC Bulletin

Board System. Applicants must

download the following compressed

files to install the software:

f175v11a.exe, f175v11b.exe,

f175v11c.exe.

Download Method 1: Internet Access

You may download the compressed

files from your Internet browser using

either http or ftp, as described in the

following sections.

• Internet Browser via http: http://

www.fcc.gov

1. Connect to your Internet service

provider and start your Internet

browser.

2. Enter the following location:

http://www.fcc.gov

3. Click on Auctions

4. Scroll down to Auction 16 and

click on the Auctions Tools/

Programs icon.

5. Download the following files:

f175v11a.exe, f175v11b.exe,

f175v11c.exe

• Internet Browser via ftp: ftp://

ftp.fcc.gov/pub/Auctions/SMR/800/

Auctionl16/Programs

1. Connect to your Internet service

provider and start your Internet

browser.

2. Enter the following location:

ftp://ftp.fcc.gov

3. Click on the pub directory

Click on the Auctions directory

Click on the SMR directory

Click on the 800 directory

Click on the Auctionl16 directory

Click on the Programs directory

4. Download the following files:

f175v11a.exe, f175v11b.exe,

f175v11c.exe

Download Method 2: Dial-In Access to

the FCC Auction Bulletin Board System

(BBS): The FCC Auction Bulletin Board

System (BBS) provides dial-in access for

the FCC Form 175 Application

Software. To access the FCC Auction

BBS, use a communications package

that can handle at least Xmodem

protocol (such as PcAnyWhere,

Procomm, or Microsoft Terminal in

Windows 3.x) to dial in to (202) 682–

5851. Use the settings of 8 data bits, no

parity and 1 stop bit (8,N,1). Once your

computer is connected to the Auction

BBS, do the following:

1. To create an account:

(a) Enter your first name.

Note: Throughout these instructions,

‘‘enter’’ means to type the appropriate

information and then press the Enter key.

(b) Enter your last name.

(c) When asked whether you want to

create an account, enter Y.

(d) When prompted, enter a password.

The password can be from four to

ten characters long, where the

characters can be either letters or

numbers.

(e) To confirm the password, enter it

again.

(f) When prompted for contact

information, enter your voice phone

number. Include the area code; for

example, you might enter 202–555–

1234.

(g) Enter your company name.

2. On the Welcome screen, enter C for

Continue. (You may also enter c, the

program accepts either case.)

Since C is the default (automatic)

selection, you can also just press

Enter to continue.

3. When asked whether you want to

view the bulletin menu. Enter Y for Yes.

Then, to continue, press Enter to obtain

the FCC Auction BBS Main Menu.

4. Enter A (for Auction Menu) to

obtain the Auction Library Menu. The

top options on this menu provide a

range of numbers to represent the

available auctions.

5. To select Auction 16, enter B to

select the second range.

6. On the Auctions Library Menu,

enter the number of the auction you

want. Enter 16, in this case.

The Auction Menu appears.

7. Enter P to select Program files. The

list of available files for Auction 16

appears. These files are sorted by date,

with the most recent files at the

beginning of the list.

8. To scroll downward to the next

screen of file names, either press Enter

or enter C for Continue. To scroll

upward to the preceding screen of file

names, enter P for Previous.

Note that on each screen, file names

are numbered separately, starting

with 1.

9. To select one or more files for

downloading or viewing, mark the files

you want. The program marks a file by

preceding its name with an asterisk (*).

You can do the following:

• To mark an individual file, enter its

line number.

• To mark a range of files, enter M

(for Mark) and then enter the range of

files in response to the prompt.

For example, to mark files 6 through

12, enter 6–12 at the prompt.

• To unmark a file, enter its number

again.

You can also use Mark to unmark a

range of files. Use any of these

techniques to mark the following files:

f175v11a.exe, f175v11b.exe,

f175v11c.exe

10. When you have finished marking

files, download them as follows:

(a) Enter D for Download.

The program displays a list that

summarizes the download operation.

The Time column lists the download

time for each file; the Total Time

column lists a running total of the

download times.

(b) Enter D to proceed.

(c) Select the file transfer protocol that

has been specified in your terminal

emulation software (e.g., Xmodem or

Zmodem). When the download

operation has finished, the list of files

reappears.

11. Enter X to leave the BBS.

Extracting the FCC Form 175

Application

The FCC Form 175 Application files

are downloaded in a self-extracting,

compressed file format. When you have

downloaded all of the compressed files

for the FCC Form 175 Application, you

must extract the FCC Form 175

Application from those files. To extract

the software, start File Manager in the

Main Program group, open the file

folder where you downloaded the files,

and double-click on f175v11a.exe. A

message will appear listing the default

directory to which the software will

extract. If this directory does not exist,

it will be created automatically. Press

Unzip to begin extracting the software

from the compressed file. When the

extraction is complete, a message will

appear listing the number of files that

were unzipped. Press OK and repeat the

above process for the remaining

compressed files (f175v11b.exe,

f175v11c.exe). Be sure to extract to the

same directory as the first compressed

file.

Installing the FCC Form 175 Application

After you extract the software from

the compressed files, you must install

the FCC Form 175 Application. To

install the software, start File Manager,

open the file folder to which you

extracted the software, and double-click

on setup.exe.

To begin, the setup program shows a

screen listing the default directory to

which the software will install. Press

the Install button, then press OK to

install to the specified directory. If the

directory does not exist, the setup

program will create it automatically.

When the installation is complete, a

message may appear asking you to

restart Windows so that the changes

made by the installation may take effect.

Press Restart to restart Windows or

press Stay Here to restart at a later time.

Do not use the FCC Form 175

Application until you have restarted

Windows.
49240 Federal Register / Vol. 62, No. 182 / Friday, September 19, 1997 / Notices

Creating Backup Installation Disks for

the FCC Form 175 Application

To create backup installation disks for

the FCC Form 175 Application, go to

File Manager, open the file folder to

which you extracted the software,

double-click on backup.bat, and follow

the instructions on the screen.

Running the FCC Form 175 Application

When the installation process is

complete, you will have a new Program

Manager group called FCC Form 175

Application v11 with the following

icons: Configure PPP, FCC Form 175

Submit, FCC Form 175 Review,

Suggestion Box, Readme File, and

Uninstall. You must verify/modify the

parameters in the Configure PPP

program prior to establishing a PPP

connection. Please consult the

readme.txt file included with the

software for information regarding

Configure PPP.

Double-click on an icon to start the

respective system.

Uninstalling the FCC Form 175

Application

To uninstall the FCC Form 175

Application, double-click on the

Uninstall icon in the FCC Form 175 v11

program group. Press Start to uninstall

the software.

Note that the Uninstall program will

remove all versions of the FCC Form

175 software located in that installation

directory.

Alternatively, you may uninstall the

FCC Form 175 Application by deleting

the directory to which you installed the

software, then switching to Program

Manager and deleting the FCC Form 175

v11 icons and group.

Help

Detailed instructions for using all FCC

Remote Electronic Auction System

software are contained in the readme

file associated with the software and in

the context-sensitive help function

associated with each software system.

For technical assistance in installing

or using the FCC Form 175 Application,

contact the FCC Technical Support

Hotline at (202) 414–1250. The FCC

Technical Support Hotline will be

generally available Monday through

Friday, from 9 a.m. to 6 p.m. ET.

How To Monitor FCC Auctions

Auction announcements and round

results for Auction 16 will be accessible

through the FCC Wide Area Network,

the Internet and the FCC Auction

Bulletin Board System (BBS). Using

these tools, you can check on round

results and/or read material released by

the Commission during the course of the

auction. Additionally, a software tool

for tracking the progress of the FCC’s

SMR 800 MHz auction will be made

available to the public prior to the start

of the auction. The software for the

tracking tool will be available via the

Internet and the FCC Auctions Bulletin

Board System. A public notice will be

released to provide detailed installation

and access instructions.

Disclaimer. The Commission makes

no warranty whatsoever with respect to

the auctions tracking software packages.

In no event shall the Commission, or

any of its officers, employees, or agents,

be liable for any damages whatsoever

(including, but not limited to, loss of

business profits, business interruption,

loss of business information, or any

other loss) arising out of or relating to

the existence, furnishing, functioning or

use of the auctions tracking software

packages. Moreover, no obligation or

liability will arise out of the

Commission’s technical, programming

or other advice or service provided in

connection with the auctions tracking

software packages.

Attachment D—Summary Listing of

Documents From the Commission and

the Wireless Telecommunications

Bureau

Addressing Application of the AntiCollusion Rules

To date, discussion concerning the

anti-collusion rules may be found in the

following Commission and Bureau

items:

Commission Decisions

Second Report and Order in PP

Docket No. 93–253, FCC 94–61, 59 FR

18493, 9 FCC Rcd 2348 (1994),

paragraphs 221–226.

Fifth Report and Order in PP Docket

No. 93–253, FCC 94–178, 59 FR 37,566,

9 FCC Rcd 5532 (1994), paragraphs

91–92.

*Internet Address: http://

www.fcc.gov/wtb/auctions/smr200u1/

frao3253.pdf/txt/wp

Second Memorandum Opinion and

Order in PP Docket No. 93–253, FCC

94–215, 59 FR 44,272, 9 FCC Rcd 7245

(1994), paragraphs 48–55.

Fourth Memorandum Opinion and

Order in PP Docket No. 93–253, FCC

94–264, 59 FR 53364, 9 FCC Rcd 6858

(1994), paragraphs 47–60.

*Internet Address: http://

www.fcc.gov/wtb/auctions/smr200u1/

fmoo 4264.pdf/txt/wp

Memorandum Opinion and Order in

PP Docket No. 93–253, FCC 94–295, 9

FCC Rcd 7684 (1994), paragraphs 8–12.

In re Commercial Realty St. Pete,

Notice of Apparent Liability for

Forfeiture, 10 FCC Rcd 4277 (1995).

In re Applications of GWI PCS, Inc.

For Authority to Construct and Operate

Broadband PCS Systems Operating on

Frequency Block C, Memorandum

Opinion and Order, DA 96–674

(released April 4, 1997).

Wireless Telecommunications Bureau

Decisions

Order in PP Docket No. 93–253 and

MM Docket No. 94–131, DA 95–2292,

(released November 3, 1995).

Public Notices

‘‘Wireless Telecommunications

Bureau Clarifies Spectrum Auction

Anti-Collusion Rules,’’ Public Notice,

DA 95–2244 (released October 26,

1995).

*Internet Address: http://

www.fcc.gov/Bureaus/Wireless/

Public—Notices/1995/da952244.txt

‘‘Wireless Telecommunications Bureau

Provides Guidance on the AntiCollusion Rule for D, E and F Block

Bidders,’’ Public Notice, DA 96–1460

(released August 28, 1996). *Internet

Address: http://www.fcc.gov/wtb/

auctions/smr200u1/da961460.txt/wp/

pdf

Letters From the Office of General

Counsel and the Wireless

Telecommunications Bureau

Letter to Gary M. Epstein and James

H. Barker from William E. Kennard,

General Counsel, Federal

Communications Commission (released

October 25, 1994).

Letter to Alan F. Ciamporcero from

William E. Kennard, General Counsel,

Federal Communications Commission

(released October 25, 1996).

Letter to R. Michael Senkowski from

Rosalind K. Allen, Acting Chief,

Commercial Radio Division, Wireless

Telecommunications Bureau (released

December 1, 1994).

Letter to Leonard J. Kennedy from

Rosalind K. Allen, Acting Chief,

Commercial Radio Division, Wireless

Telecommunications Bureau (released

December 14, 1994).

Letter to Jonathan D. Blake and Robert

J. Rini from Kathleen O’Brien Ham,

Chief, Auctions Division, Wireless

Telecommunications Bureau, DA 95–

2404 (released November 28, 1995).

Letter to Mark Grady from Kathleen

O’Brien Ham, Chief, Auctions Division,

Wireless Telecommunications Bureau,

DA 96–587 (released April 16, 1996).

Letter to David L. Nace from Kathleen

O’Brien Ham, Chief, Auctions Division,

Wireless Telecommunications Bureau,

DA 96–1566 (released September 17,

1996).
Federal Register / Vol. 62, No. 182 / Friday, September 19, 1997 / Notices 49241

Miscellaneous

The Commission has received a

formal complaint alleging that the

practice of using ‘‘trailer’’ bids to signal

interest in particular markets (e.g. by

using the BTA number of a market as

the final three digits of the bid amount)

is an improper disclosure of bidding

strategy, and as such violates the anticollusion rule, 47 CFR 1.2105(c). The

Commission has reached no

determination on the merits of this

argument. See In re Application of

Mercury PCS II, LLC to Bid in the

Broadband PCS Auction for

Authorization to Serve BTAs 013

(Amarillo, Texas) and 264 (Lubbock,

Texas) on Frequency Blocks D, E and F

(Auction No. 11), Emergency Motion for

Disqualification (filed November 26,

1996) and related pleadings.

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[FR Doc. 97–24930 Filed 9–18–97; 8:45 am]

BILLING CODE 6712–01–U

FEDERAL COMMUNICATIONS

COMMISSION

[DA 97–1933]

Comment Sought on Balanced Budget

Provisions Calling for Reserve Prices

or Minimum Opening Bids in FCC

Auctions

Released September 5, 1997.

Report No. AUC–16–E (Auction No. 16)

When FCC licenses are subject to

auction (i.e, because they are mutually

exclusive) the recently enacted

Balanced Budget Act of 1997 calls upon

the Commission to prescribe methods

by which a reasonable reserve price is

required or minimum opening bid

established, unless it determines that

such an assessment is not in the public

interest. The Wireless

Telecommunications Bureau recently

announced the auction of 525 licenses

in the upper 10 MHz of the 800 MHz

Specialized Mobile Service (SMR),

which is to begin October 28, 1997. In

anticipation of that auction, and in light

of the recently adopted legislation, it is

proposed that a reserve price or

minimum opening bid be established.

Specifically, it is proposed that in no

event should any of the licenses in the

800 MHz auction be sold for less than

the value of the upfront payment

amounts specified for the licenses in the

Public Notice released August 6, 1997

for that auction. The upfront payments

for the 800 MHz SMR auction are based

on a $0.02 per MHz–POP formula, as

was used in the 900 MHz SMR auction.

The $0.02 MHz–POP has been

discounted for each Economic Area by

75 percent, with a floor of $2,500, to

account for the degree of incumbency

for this service. Under this formulation,

the minimum amount is $2,500 and the

maximum amount is $717,571.

Comment is sought on this proposal.

Parties should also comment on

whether the upfront payment should be

considered a reserve price or a

minimum opening bid for this auction.

Normally, a reserve price is an absolute

minimum price below which an item

will not be sold in a given auction.

Reserve prices can be either published

or unpublished. A minimum opening

bid, on the other hand, is the minimum

bid price set at the beginning of the

auction below which no bids are

accepted. In a minimum opening bid

scenario, the auctioneer often has the

discretion to lower it later in the

auction.

Furthermore, commenters should also

address whether the amount of the

reserve price or minimum opening bid

should be capped to ensure that bidding

is not deterred on high valuation

markets, in particular. For example, a

cap of $250,000 could be applied.

Finally, if commenters believe that a

reserve price or minimum opening bid

equal to the upfront payment will result

in substantial unsold licenses, or is not

a reasonable amount, they should

explain why this is so, and comment on

the desirability of a reserve price or

minimum opening bid greater or less

than the upfront payment.

Comments are due on or before

September 12, 1997. To file formally,

parties must file an original and four

copies. Parties may send comments to

the Chief, Auctions and Industry

Analysis Division, Wireless

Telecommunications Bureau, Federal

Communications Commission, Room

5202, 2025 M Street, NW., Washington,

DC 20554. Comments will be available

for public inspection during regular

business hours in the FCC Reference

Center of the Federal Communications

Commission, Room 239, 1919 M Street,

NW., Washington, DC 20554.

For further information concerning

this proceeding, contact Alice Elder at

the Auctions and Industry Analysis

Division, Wireless Telecommunications

Bureau at (202) 418–0660.

Federal Communications Commission.

Shirley S. Suggs,

Chief, Publications Branch.

[FR Doc. 97–24931 Filed 9–18–97; 8:45 am]

BILLING CODE 6712–01–P

FEDERAL COMMUNICATIONS

COMMISSION

Public Information Collections

Approved by Office of Management

and Budget

September 11, 1997.

The Federal Communications

Commission (FCC) has received Office

of Management and Budget (OMB)

approval for the following public

information collections pursuant to the

Paperwork Reduction Act of 1995,

Public Law 104–13. An agency may not

conduct or sponsor and a person is not

required to respond to a collection of

information unless it displays a

currently valid control number. For

further information contact Shoko B.

Hair, Federal Communications

Commission, (202) 418–1379.

Federal Communications Commission

OMB Control No.: 3060–0789.

Expiration Date: 03/31/98.

Title: Modified Alternative Plan, CC

Docket No. 90–571, Order (1997

Suspension Order).

Form No.: N/A.

Respondents: Business or other for

profit.

Estimated Annual Burden: 36

respondents; 13 hours per response

(avg.); 468 total annual burden hours for

all collections.

Estimated Annual Reporting and

Recordkeeping Cost Burden: $0.

Frequency of Response: On occasion;

one-time requirement.

Description: Title IV of the Americans

with Disabilities Act of 1990 (‘‘ADA’’)

requires each common carrier providing

voice transmission services to provide

Telecommunications Relay Services

(‘‘TRS’’) throughout the area it serves to

individuals with hearing and speech

disabilities by 1993. The TRS enables

customers with hearing or speech

disabilities to use the telephone network

in ways that are ‘‘functionally

equivalent’’ to those used by customers

using traditional telephone service.

Under the Commission’s rules, the TRS

must be able to handle all calls normally

provided by common carriers, unless

those carriers demonstrate the

infeasibility of doing so. 47 CFR

64.604(a)(3). The Commission has

interpreted ‘‘all calls’’ to include coin

sent-paid calls, which are calls made by

depositing coins in a standard coin