[Federal Register Volume 65, Number 194 (Thursday, October 5, 2000)]
[Notices]
[Pages 59419-59421]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-25530]


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FEDERAL COMMUNICATIONS COMMISSION

[Report No. AUC-33-H (Auction No. 33); DA 00-2154]


700 MHz Guard Bands Auction Closes

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This document provides detailed information concerning winning 
bidders, down payments, bid withdrawal payments and/or deposits, FCC 
Forms 601 and 602 filing requirements, requests for rule waivers, and 
licensing matters.

FOR FURTHER INFORMATION CONTACT: Howard Davenport, Attorney, Auctions 
and Industry Analysis Division, at (202) 418-0660.

SUPPLEMENTARY INFORMATION: This is a summary of a Public Notice 
released September 25, 2000. The complete text of the public notice, 
including the attachments, is available for inspection and copying 
during normal business hours in the FCC Reference Center (Room CY-
A257), 445 12th Street, SW., Washington, DC. It may also be purchased 
from the Commission's copy contractor, International Transcription 
Services, Inc. (ITS, Inc.) 1231 20th Street, NW., Washington, DC 20036, 
(202) 857-3800. It is also available on the Commission's web site at 
http://www.fcc.gov.
    List of Attachments available at the FCC:

Attachment A: ``Round Results, High Bids'' lists winning bidders and 
both the gross and net high winning bid amounts.
Attachment B: ``Bidder Payment/Refund Report'' lists down payments and 
any withdrawn bid payments owed by winning bidders.
Attachment C: ``Withdrawal/Payment Report'' lists withdrawn bid 
payments owed by all bidders.
Attachment D: ``Instructions for Completing FCC Form 601'' provides 
detailed information about how a winning bidder should complete the 
required FCC Form 601 for 700 MHz Guard Bands license applications.
Attachment E: ``Instructions for Using ULS to Register TIN and Call 
Signs With FCC and File FCC Form 601 Electronically.''
Attachment F: ``Accessing the FCC Network using Windows 95/98 for 
Universal Licensing System Filing.''

    1. On September 21, 2000, the Federal Communications Commission 
completed the auction of 104 licenses in the 700 MHz Guard Bands 
(``Auction No. 33''), raising (in net high bids) a total of 
$519,892,575.00 for the U.S. Treasury. Nine winning bidders won a total 
of 96 licenses in this auction.

A. Down Payments

    2. The Commission's rules require that within ten business days 
after the release of the Public Notice, in this case 6:00 p.m. ET on 
October 10, 2000, winning bidders in Auction No. 33 must have on 
deposit with Mellon Bank in Pittsburgh, Pennsylvania, enough funds to 
cover all required: (i) down payments on winning bids, and (ii) 
payments for withdrawn bids, if applicable. If a winning bidder's 
upfront payment is not sufficient to meet both of these requirements, 
the winning bidder must deposit additional funds. See 47 CFR 1.2107(b), 
1.2104(g).
    3. The amount now due from each winning bidder, if any, is set out 
in the last column of Attachment B of the Public Notice. Note that a 
payment and FCC Form 159 are necessary only if a winning bidder's 
upfront payment does not cover the required total of down payments and 
withdrawn bid payments (as reflected in Attachment B) of the Public 
Notice. Each winning bidder's down payment must be a total of twenty 
(20) percent of its net winning bid(s) plus any withdrawal payments.

B. Final Payments

    4. After the termination of the licensing pleading cycle (see 47 
CFR 1.2108), the Commission will issue a public notice announcing that 
it is prepared to grant the licenses. Within ten business days after 
the date of that public notice, winning bidders will be required to 
make full payment of the balance of their winning bids. See 47 CFR 
1.2109 and 1.2107(b). Licenses will be granted only after the full and 
timely payment of winning bids and any applicable late fees, in 
accordance with Sec. 1.2109(a). See 47 CFR 1.2109(a).

C. Method of Payment

    5. All payments must be in U.S. dollars and made in the form of a 
wire transfer. No personal checks, credit card payments, or other forms 
of payment will be accepted. All payments must be accompanied by a 
completed FCC Remittance Advice Form (FCC Form 159). If applicable, a 
partially completed copy of the FCC Form 159 will be sent along with 
the Public Notice to facilitate submission of the correct down payment. 
Questions regarding FCC Form 159 should be addressed to Tim Dates or 
Gail Glasser at 202-418-1995. Please note, however, that winning 
bidders are ultimately responsible for insuring the verification and 
submission of the correct down payment from their bank to Mellon bank.
    6. Wire transfer payments must be received by Mellon Bank by 6 p.m. 
ET, on October 10, 2000. Winning bidders should coordinate with their 
bankers ahead of time regarding their wire transfers, and allow 
sufficient time for the wire transfer to be initiated and completed 
prior to the deadline. To submit funds by wire transfer, winning 
bidders will need the following information:
    ABA Routing Number: 043000261.
    Receiving Bank: Mellon Pittsburgh.
    BNF: 911-6106.
    OBI Field: (Skip one space between each information item) 
``AUCTIONPAY''.
    Taxpayer Identification No. (same as FCC Form 159, Block 25).
    Payment Type Code (enter ``A33D'').
    FCC Code 1 (same as FCC Form 159, Block 23A: ``33'').

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    Payor Name (same as FCC Form 159, Block 2).
    Lockbox No.: 358850.

Winning bidders must fax a completed FCC Form 159 to Mellon Bank at 
412-209-6045 or 412-236-5702 at least one hour before placing the order 
for the wire transfer (but on the same business day).
    7. Proper completion of the FCC Form 159 is critical to ensuring 
correct credit of bidder deposits. Winning bidders must use the same 
Taxpayer Identification Number used on their FCC Form 175. Questions 
concerning the calculation and submission of down payments should be 
directed to Gail Glasser at 202-418-1995.

D. Withdrawal, Default and Disqualification Payments

    8. The Commission imposes payments on bidders that withdraw high 
bids during the course of an auction, default on payments due after an 
auction closes, or those that are disqualified. See 47 CFR 1.2104(g), 
1.2109.
    9. Bid Withdrawal Payments. A bidder (Bidder X) that withdraws a 
high bid during the course of an auction is subject to a bid withdrawal 
payment equal to the difference between the amount withdrawn and the 
amount of the subsequent winning bid. If a high bid is withdrawn on a 
license that remains unsold at the close of the auction, Bidder X will 
be required to make an interim payment equal to three (3) percent of 
the net amount of the withdrawn bid. This payment amount is deducted 
from any upfront payments or down payments that Bidder X has deposited 
with the Commission. If, in a subsequent auction, that license receives 
a valid bid in an amount equal to or greater than the withdrawn bid 
amount, then no final bid withdrawal payment will be assessed, and 
Bidder X may request a refund of the interim three (3) percent payment. 
If, in a subsequent auction, the winning bid amount for that license is 
less than Bidder X's withdrawn bid amount, then Bidder X will be 
required to make a final bid withdrawal payment equal to either the 
difference between Bidder X's net withdrawn bid and the subsequent net 
winning bid, or the difference between Bidder X's gross withdrawn bid 
and the subsequent gross winning bid, whichever is less. The three (3) 
percent interim payment will be applied toward the withdrawal payment.
    Attachment C of the Public Notice identifies bidders that owe 
withdrawal payments to the Commission as a result of bid withdrawals 
made in Auction No. 33.
    10. Bid Default/Disqualification Payments. If a high bidder 
defaults or is disqualified after the close of the auction, the 
defaulting bidder will be subject to the same bid withdrawal payment 
obligations as described above, plus an additional payment equal to 
three (3) percent of the subsequent winning bid or three (3) percent of 
the defaulted bid, whichever is less. Where a bidding credit applies to 
the winning bid in either the original or the subsequent auction, the 
calculation of the three percent payment is based on the smaller of the 
two gross bids or smaller of the two net bids, whichever basis (gross 
or net) was used to figure the first component. Thus, if the difference 
between the gross bids is less than the difference between the net 
bids, the 3 percent payment will be computed on the lower of the gross 
bids. If the difference between the net bids is less than or equal to 
the difference between the gross bids, the 3 percent payment will be 
computed on the lower of the net bids. However, if the differences 
between both the gross bids and the net bids are less than or equal to 
zero, the three percent payment will be computed on the lower of the 
net bids.
    11. If a winning bidder fails to remit the required down payment 
within ten (10) business days after the Commission has released the 
Public Notice, in this case by October 10, 2000, the bidder will be 
deemed to have defaulted, its application will be dismissed, and it 
will be liable for a default payment as described above. In such event, 
the Commission, at its discretion, may either auction the spectrum to 
existing or new applicants, or offer it to the other highest bidders 
(in descending order) at their final bids. See 47 CFR 1.2109(b).
    12. If a winning bidder fails to pay the balance of its winning 
bids in a lump sum by the applicable deadline as specified by the 
Commission, it will be allowed to make payment within ten (10) business 
days after the payment deadline provided that it also pays a late fee 
equal to five (5) percent of the amount due. When a winning bidder 
fails to pay the balance of its winning bid plus late fee by the late 
payment deadline, it is considered to be in default on its license(s) 
and subject to the applicable default payments. Licenses will be 
awarded upon the full and timely payment of winning bids and any 
applicable late fees. See 47 CFR 1.2109(a). A winning bidder that is 
found unqualified to be a licensee, fails to remit the balance of its 
winning bid in a timely manner, or defaults or is disqualified for any 
reason after having made the required down payment, will be deemed to 
have defaulted and will be liable for the payment set forth in 
Sec. 1.2104(g)(2). In such event, the Commission may either auction the 
spectrum to existing or new applicants or offer it to the other highest 
bidders (in descending order) at their final bids. See 47 CFR 
1.2109(c).
    13. Finally, bidders that are found to have violated the antitrust 
laws or the Commission's rules in connection with their participation 
in the competitive bidding process may be subject, in addition to any 
other applicable sanctions, to forfeiture of their upfront payment, 
down payment, or full bid amount, and may be prohibited from 
participating in future auctions. See 47 CFR 1.2109(d).

E. Refund of Excess Upfront Payments (for winning bidders)

    14. Upfront monies on deposit that are in excess of the required 
down payment, withdrawal and/or default payment amounts will be 
refunded to the payer of record promptly upon receipt of the necessary 
wire transfer instructions. Winning bidders must fax the necessary wire 
transfer instructions to Gail Glasser at 202-418-2843. Any questions 
concerning refunds should be referred to Gail Glasser or Tim Dates at 
202-418-1995.

F. Refund of Upfront Payments (for non-winning bidders)

    15. Non-winning bidders must fax the necessary wire transfer 
instructions to Gail Glasser or Tim Dates at 202-418-2843. Any 
questions concerning refunds for non-winning bidders should be referred 
to Gail Glasser or Tim Dates at 202-418-1995.

G. FCC Form 601

    16. By 6 p.m. ET on October 10, 2000, winning bidders must submit a 
completed long-form license application(s) covering each license for 
which they were the winning high bidder. Attachment D of the Public 
Notice sets out instructions for completing the FCC Form 601. 
Applications must be filed electronically. Detailed instructions for 
filing the Form 601 electronically are set out in Attachment E of the 
Public Notice. Failure to timely file FCC Form 601 will result in 
default. Late-filed applications will not be accepted without a showing 
of good cause.

H. FCC Form 602

    17. Pursuant to Sec. 1.919 of the Commission's rules, an applicant 
for a license in an auctionable service must have on file with the 
Commission a current FCC Form 602 regarding

[[Page 59421]]

ownership information of the applicant. See 47 CFR 1.919. Therefore, 
unless the applicant already has a current FCC Form 602 on file with 
the Commission, the applicant must submit one at the time the FCC Form 
601 is filed. Any late-filed FCC Form 602 must contain a request for 
waiver of the filing requirement in 47 CFR 1.919.
    18. FCC Form 602 must be filed manually (not electronically), and 
may be obtained from the Internet at http://www.fcc.gov/formpage.html 
or by calling the FCC's Form Distribution Center at 1-800-418-FORM 
(3676). For more detailed information on FCC Form 602, see ``Wireless 
Telecommunications Bureau Answers Frequently Asked Questions Concerning 
Reporting of Ownership Information on FCC Form 602,'' Public Notice, DA 
99-1001 (14 FCC Rcd. 8261) 1999.
    Applicants that do not have a current FCC Form 602 on file should 
send the form to: Federal Communications Commission, 1270 Fairfield 
Road, Gettysburg, PA 17325-7245.
    19. Filing FCC Form 602 is a separate requirement from, and in 
addition to, the ownership reporting requirements associated with 
filing FCC Form 601, Exhibit A, as set forth in Attachment D of the 
Public Notice. However, to avoid duplication, applicants may provide 
certain information required in Exhibit A by attaching a copy of their 
FCC Form 602 (in Adobe PDF Format) to their FCC Form 601 submission. 
Applicants are reminded, however, that an original FCC Form 602 still 
must be filed manually in Gettysburg, PA. For further information, see 
Instructions in Attachment D of the Public Notice.

I. Applications for Multiple Licenses

    20. Applicants may submit one FCC Form 601 Main Form, Schedule B, 
and Form 602 for multiple licenses if all filing information (name and 
address information, all ownership and eligibility attachments, and 
waiver requests) associated with the application is identical. 
Licensing information such as market designator, channel block, and/or 
market name may be different (i.e. WXMEA001A and WXMEA001B- Boston, MA; 
WXMEA022A--Knoxville, TN).
    21. Filers whose name and address, ownership, eligibility, and 
waiver requests are identical for some licenses but different for other 
licenses must submit a separate Form 601 and 602 for those licenses for 
which filing information is unique. The streamlined filing procedure 
described in paragraph 20 may only be used for licenses that have 
identical filing information.

J. Maintaining Accuracy of Information

    22. Applicants are no longer required to maintain accuracy and 
completeness of information furnished on their FCC Form 175 and 
exhibits. After the auction closes, applicants are required to make all 
changes in the ULS system (Forms 601/602).

K. Application Processing and License Grant

    23. Pursuant to 47 CFR 1.2108(b) and the Balanced Budget Act of 
1997, Public Law 105-33, 111 Stat. 251 (1997), interested parties will 
have ten (10) days to file petitions to deny after the Commission 
releases a public notice announcing the FCC Forms 601 and 602 are 
acceptable for filing. An applicant may file an opposition to any 
petition to deny within five (5) days after the time for filing 
petitions to deny has expired. See 47 CFR1.2108(c). The petitioner may 
file a reply to such opposition within five (5) days after the time for 
filing oppositions has expired. See 47 CFR 1.2108(c). If the Commission 
determines that an applicant is qualified and there is no substantial 
and material issue of fact concerning that determination, the 
Commission will issue a public notice announcing that it is prepared to 
grant the application conditioned upon the full and timely payment of 
the remaining balance of the applicant's winning bid. Once the 
Commission has received full payment of the applicant's winning bid, it 
will issue a public notice announcing grant of the license (or 
licenses) to the applicant.

L. Clarifications

    24. Applicants should be aware that the Policy Division of the 
Wireless Telecommunications Bureau has issued two Errata. The first 
Errata, inter alia, makes conforming amendments to Sec. 27.308 of the 
Commission's Rules, concerning technical content of applications. The 
second Errata, inter alia, makes conforming amendments to Sec. 27.6 of 
the Commission's Rules, referencing the definitional criterion for the 
Gulf of Mexico EA.

M. Anti-collusion Rules

    25. To ensure the competitiveness of the auction process, the 
Commission's rules prohibit applicants for the same geographic license 
area from communicating with each other during the auction about bids, 
bidding strategies, or settlements. As explained more fully in the 
Auction No. 33 Procedures Public Notice, 65 FR 21182 (April 20, 2000), 
this prohibition began with the filing of short-form applications and 
ends on the down payment due date. The prohibition ends on the down 
payment due date whether or not a high bidder must supplement its 
upfront payment to cover its down payment. Applicants certified their 
compliance with Sec. 1.2105(c) when their FCC Form 175 short-form 
applications were signed.
    26. The following is a list of important numbers relating to 
Auction No. 33:
    News Media: Meribeth McCarrick at 202-418-0654.
    Technical Support Hotline: Technical Support Personnel at 202-414-
1250 (V) or 202-414-1255 (text telephone (TTY)).
    Office of the Managing Director Auctions Accounting Group (Payment, 
FCC Form 159 and refund questions) Gail Glasser or Tim Dates at 202-
418-1995.
    Wireless Telecommunications Bureau, Commercial Wireless Division 
(FCC Form 601 and 602 questions) JoAnn Epps at 202-418-1342, Gary 
Oshinsky at 202-418-7167 or Erin McGrath at 202-418-2042.
    Wireless Telecommunications Bureau, Auctions and Industry Analysis 
Division Auctions (Auction-related questions) Lisa Stover, Project 
Manager at 717-338-2888, or Howard Davenport, Attorney, at 202-418-
0660.

Federal Communications Commission.
Margaret Wiener,
Deputy Chief, Auctions and Industry Analysis Division, Wireless 
Telecommunications Bureau.
[FR Doc. 00-25530 Filed 10-4-00; 8:45 am]
BILLING CODE 6712-01-P