9250 Federal Register / Vol. 87, No. 34 / Friday, February 18, 2022 / Rules and Regulations 

PART 180—TOLERANCES AND 

EXEMPTIONS FOR PESTICIDE 

CHEMICAL RESIDUES IN FOOD 

■ 1. The authority citation for part 180 

continues to read as follows: 

Authority: 21 U.S.C. 321(q), 346a and 371. 

■ 2. In § 180.661: 

■ a. Amend paragraph (a)(1) by: 

■ i. Designating the table as Table 1 to 

Paragraph (a)(1)’’; 

■ ii. Adding in alphabetical order the 

entry ‘‘Coffee, green beans’’; and 

■ iii. Revising the entries ‘‘Grain, cereal, 

group 15, except corn and rice’’ and 

‘‘Rapeseed subgroup 20A’’; 

■ b. Amend paragraph (a)(2) by: 

■ i. Designating the table as Table 2 to 

Paragraph (a)(2); and 

■ ii. Revising newly designated Table 2. 

The additions and revisions read as 

follows: 

§ 180.661 Fluopyram; tolerances for 

residues. 

(a) * * * 

(1) * * * 

TABLE 1 TO PARAGRAPH (a)(1) 

Commodity Parts per 

million 

* * * * * 

Coffee, green beans 2 ................. 0.03 

* * * * * 

Grain, cereal, group 15, except 

corn and rice ........................... 0.5 

* * * * * 

Rapeseed subgroup 20A ............ 0.3 

* * * * * 

* * * * * 2There are no U.S. registrations on coffee, 

green beans as of February 18, 2022. 

(2) * * * 

TABLE 2 TO PARAGRAPH (a)(2) 

Commodity Parts per 

million 

Cattle, fat .................................... 0.3 

Cattle, meat ................................ 0.3 

Cattle, meat byproducts ............. 3 

Egg ............................................. 0.03 

Goat, fat ...................................... 0.3 

Goat, meat .................................. 0.3 

Goat, meat byproducts ............... 3 

Hog, fat ....................................... 0.01 

Hog, meat ................................... 0.01 

Hog, meat byproducts ................ 0.04 

Horse, fat .................................... 0.3 

Horse, meat ................................ 0.3 

Horse, meat byproducts ............. 3 

Milk ............................................. 0.15 

Poultry, fat .................................. 0.01 

Poultry, meat .............................. 0.02 

Poultry, meat byproducts ............ 0.06 

TABLE 2 TO PARAGRAPH (a)(2)— 

Continued 

Commodity Parts per 

million 

Sheep, fat ................................... 0.3 

Sheep, meat ............................... 0.3 

Sheep, meat byproducts ............ 3 

* * * * * 

[FR Doc. 2022–03385 Filed 2–17–22; 8:45 am] 

BILLING CODE 6560–50–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Parts 1 and 73 

[AU Docket No. 21–449; DA 22–125; FR ID 

71977] 

Auction of Construction Permits for 

Full Power Television Stations; Notice 

and Filing Requirements, Minimum 

Opening Bids, Upfront Payments, and 

Other Procedures for Auction 112 

AGENCY: Federal Communications 

Commission. 

ACTION: Final action; requirements and 

procedures. 

SUMMARY: This document summarizes 

the procedures, deadlines, and upfront 

payment and minimum opening bid 

amounts for the upcoming auction of 

construction permits for full power 

television (TV) stations. The Auction 

112 Procedures Public Notice 

summarized here is intended to 

familiarize potential applicants with 

details of the procedures, terms, and 

conditions governing participation in 

Auction 112, as well as an overview of 

the post-auction application and 

payment processes. 

DATES: Applications to participate in 

Auction 112 must be submitted before 

6:00 p.m. Eastern Time (ET) on March 

30, 2022. Upfront payments for Auction 

112 must be received by 6:00 p.m. ET 

on May 6, 2022. Bidding in Auction 112 

is scheduled to start on June 7, 2022. 

FOR FURTHER INFORMATION CONTACT: 

General Auction 112 Information: 

FCC Auctions Hotline at 888–225–5322, 

option two; or 717–338–2868. 

Auction 112 Legal Information: Mary 

Lovejoy or Andrew McArdell at (202) 

418–0660. 

Licensing Information: Shaun Maher 

at (202) 418–2324 or Kevin Harding at 

(202) 418–7077. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Federal Communication 

Commission’s (Commission or FCC) 

document, Auction 112 Procedures 

Public Notice, in AU Docket No. 21– 

449; DA 21–125, released on February 

10, 2022. The complete text of this 

document, including attachments and 

any related documents, is available on 

the Commission’s website at http://

www.fcc.gov/auction/112 or by using 

the search function for on the 

Commission’s Electronic Comment 

Filing System (ECFS) web page at 

www.fcc.gov/ecfs. Alternative formats 

are available to persons with disabilities 

by sending an email to FCC504@fcc.gov 

or by calling the Consumer & 

Governmental Affairs Bureau at (202) 

418–0530 (voice), (202) 418–0432 

(TTY). 

I. General Information 

A. Introduction 

1. By the Auction 112 Procedures 

Public Notice, the Office of Economics 

and Analytics (OEA) and the Media 

Bureau (MB) establish the procedures 

and minimum opening bid amounts to 

be used for Auction 112, an auction of 

construction permits for full power 

television (TV) stations. Bidding in this 

auction is scheduled to start on June 7, 

2022. The Auction 112 Procedures 

Public Notice provides details regarding 

the procedures, terms, conditions, dates, 

and deadlines governing participation 

in Auction 112 bidding, as well as an 

overview of the post-auction application 

and payment processes. 

B. Background and Relevant Authority 

2. On November 19, 2021, OEA and 

MB released a public notice seeking 

comment on competitive bidding 

procedures to be used in Auction 112. 

One party filed comments in response to 

the Auction 112 Comment Public 

Notice, 86 FR 68203, December 1, 2021, 

and one party filed a reply. In the 

Auction 112 Procedures Public Notice, 

OEA and MB resolve all open issues 

raised in the Auction 112 Comment 

Public Notice. Auction 112 will proceed 

pursuant to the procedures described in 

the Auction 112 Procedures Public 

Notice, which have been adopted in 

accordance with 47 U.S.C. 309(j)(3). 

3. Other Commission rules and 

decisions provide the underlying 

authority for the procedures OEA and 

MB adopt for Auction 112. Auction 112 

applicants must familiarize themselves 

thoroughly with the Commission’s 

general competitive bidding rules, 

including Commission decisions in 

proceedings regarding competitive 

bidding procedures, application 

requirements, and obligations of 

Commission licensees. Prospective 

applicants should also familiarize 

themselves with the Commission’s 

television broadcast service and 


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competitive bidding requirements 

contained in part 73 of the 

Commission’s rules, as well as 

Commission orders concerning 

competitive bidding for broadcast 

construction permits. Applicants must 

also be thoroughly familiar with the 

procedures, terms and conditions 

contained in the Auction 112 

Procedures Public Notice and any future 

public notices that may be released in 

this proceeding. 

4. The terms contained in the 

Commission’s rules, relevant orders, 

and public notices are not negotiable. 

The Commission may amend or 

supplement the information contained 

in its public notices at any time and will 

issue public notices to convey any new 

or supplemental information to 

applicants. Pursuant to the 

Commission’s rules, OEA and MB also 

retain the authority to implement 

further procedures during the course of 

this auction. It is the responsibility of all 

applicants to remain current with all 

Commission rules and with all public 

notices pertaining to Auction 112. 

C. Construction Permits To Be Offered 

in Auction 112 

5. Auction 112 will offer 27 

construction permits for TV stations. 

The construction permits that will be 

available in Auction 112 are listed in 

Attachment A to the Auction 112 

Procedures Public Notice. 

6. The construction permits that will 

be available in Auction 112 are for 

channel allotments contained in the 

Table of Television Allotments (TV 

Table) and assigned at the indicated 

communities for which there currently 

is not a licensee. Each construction 

permit awarded will be for one of the 

allotted-but-unlicensed channels 

currently contained in the TV Table. 

D. Auction Specifics 

1. Auction Title and Start Date 

7. This auction of construction 

permits for TV stations will be referred 

to as ‘‘Auction 112.’’ Bidding in Auction 

112 is scheduled to begin on Tuesday, 

June 7, 2022. Pre-auction dates and 

deadlines are listed below. 

8. The initial schedule for bidding 

rounds will be announced by public 

notice at least one week before the 

bidding starts in Auction 112. Unless 

otherwise announced, bidding on all 

construction permits will be conducted 

on each business day until bidding has 

stopped on all construction permits. 

2. Auction Dates and Deadlines 

9. The following dates and deadlines 

apply to Auction 112: 

Auction Tutorial Available (via internet) .............................................................................................. No later than February 25, 2022. 

Short-Form Application (FCC Form 175) Filing Window Opens ........................................................ March 17, 2022, 12:00 p.m. ET. 

Short-Form Application (FCC Form 175) Filing Window Deadline .................................................... March 30, 2022, 6:00 p.m. ET. 

Upfront Payments (via wire transfer) .................................................................................................... May 6, 2022, 6:00 p.m. ET. 

Mock Auction .......................................................................................................................................... June 3, 2022. 

Bidding Begins in Auction 112 .............................................................................................................. June 7, 2022. 

3. Requirements for Participation 

10. Those wishing to participate in 

Auction 112 must: 

• Submit a short-form application 

(FCC Form 175) electronically prior to 

6:00 p.m. ET on March 30, 2022, 

following the electronic filing 

procedures set forth in the FCC Form 

175 Instructions. 

• Submit a sufficient upfront 

payment and an FCC Remittance Advice 

Form (FCC Form 159) by 6:00 p.m. ET 

on May 6, 2022, following the 

procedures and instructions set forth in 

Attachment B to the Auction 112 

Procedures Public Notice. 

• Comply with all provisions 

outlined in the Auction 112 Procedures 

Public Notice and applicable 

Commission rules. 

II. Applying To Participate in Auction 

112 

A. General Information Regarding 

Short-Form Applications 

11. A short-form application, or FCC 

Form 175, provides information that the 

Commission uses to determine whether 

the applicant has the legal, technical, 

and/or financial qualifications to 

participate in a Commission auction for 

licenses or permits. The short-form 

application is the first part of the 

Commission’s two-phased auction 

application process. In the first phase, a 

party seeking to participate in Auction 

112 must file a short-form application in 

which it certifies, under penalty of 

perjury, that it is qualified to 

participate. Eligibility to participate in 

Auction 112 is determined based on an 

applicant’s short-form application and 

certifications and on the applicant’s 

upfront payment. After bidding closes, 

in the second phase of the process, each 

winning bidder in Auction 112 must file 

a more comprehensive post-auction, 

long-form application FCC Form 2100, 

Schedule A, in the Media Bureau’s 

Licensing and Management System 

(LMS) for the construction permits it 

wins in the auction. 

12. A party seeking to participate in 

Auction 112 must file an FCC Form 175 

electronically via the Auction 

Application System prior to 6:00 p.m. 

ET on March 30, 2022, following the 

procedures prescribed in the FCC Form 

175 Instructions. If an applicant claims 

eligibility for a bidding credit, then the 

information provided in its FCC Form 

175 will be used to determine whether 

the applicant is eligible for the claimed 

bidding credit. Below OEA and MB 

describe more fully the information 

disclosures and certifications required 

in the short-form application. Each 

Auction 112 applicant will be subject to 

the Commission’s rule prohibiting 

certain communications. An applicant 

is subject to the prohibition beginning at 

the deadline for filing short-form 

applications—6:00 p.m. ET on March 

30, 2022. 

13. An Auction 112 applicant bears 

full responsibility for submitting an 

accurate, complete, and timely shortform application. Pursuant to the 

Commission’s competitive bidding 

rules, an applicant must make a series 

of certifications under penalty of perjury 

on its FCC Form 175 related to the 

information provided in its application 

and its participation in the auction, and 

an applicant must confirm that it is 

legally, technically, financially, and 

otherwise qualified to hold a permit. 

Additionally, each participant in 

Auction 112 must certify that it has read 

the Auction 112 Procedures Public 

Notice and familiarized itself both with 

the auction procedures and with the 

requirements for obtaining a 

construction permit for a television 

broadcast station. If an Auction 112 

applicant fails to make the required 

certifications in its FCC Form 175 by the 

filing deadline, then its application will 

be deemed unacceptable for filing and 

cannot be corrected after the filing 

deadline. 

14. An applicant should note that 

submitting an FCC Form 175 (and any 

amendments thereto) constitutes a 

representation by the certifying official 

that he or she is an authorized 

representative of the applicant with 

authority to bind the applicant, that he 

or she has read the form’s instructions 


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and certifications, and that the contents 

of the application, its certifications, and 

any attachments are true and correct. 

Submitting a false certification to the 

Commission may result in penalties, 

including monetary forfeitures, license 

forfeitures, ineligibility to participate in 

future auctions, and/or criminal 

prosecution. 

15. Applicants are cautioned that, 

because the required information 

submitted in FCC Form 175 bears on 

each applicant’s qualifications, requests 

for confidential treatment will not be 

routinely granted. The Commission 

generally has held that it may publicly 

release confidential business 

information where the party has put that 

information at issue in a Commission 

proceeding or where the Commission 

has identified a compelling public 

interest in disclosing the information. In 

this regard, the Commission specifically 

has held that information submitted in 

support of receiving bidding credits in 

auction proceedings should be made 

available to the public. 

16. No individual or entity may file 

more than one short-form application. If 

a party submits multiple short-form 

applications for an auction, then only 

one application may form the basis for 

that party to become qualified to bid in 

that auction. 

17. Similarly, and consistent with the 

Commission’s general prohibition on 

joint bidding agreements, a party 

generally is permitted to participate in 

a Commission auction only through a 

single bidding entity. Accordingly, the 

filing of applications in Auction 112 by 

multiple entities controlled by the same 

individual or set of individuals 

generally will not be permitted. 

Consistent with this requirement, a 

broadcaster interested in bidding on 

more than one construction permit 

cannot use two or more subsidiary 

entities to bid separately on 

construction permits in separate 

markets, regardless of whether each 

subsidiary were to select different 

construction permits on its short-form 

application. Likewise, if an entity, 

individual, or set of individuals hold 

controlling interests in multiple entities 

that are interested in participating in 

Auction 112, regardless of whether 

those entities have other, non-shared 

controlling or non-controlling interests, 

those entities must participate in the 

auction through a single bidding entity 

and only that bidding entity may file an 

auction application. In that regard, the 

bidding entity must disclose in its shortform application any joint ventures or 

other agreements or arrangements with 

any commonly controlled, nonapplicant entities related to bidding in 

Auction 112. As noted by the 

Commission in adopting the prohibition 

on applications by commonly controlled 

entities, this rule, in conjunction with 

the prohibition against joint bidding 

agreements, protects the 

competitiveness of the Commission’s 

auctions. 

18. OEA and MB discuss below 

additional details regarding certain 

information required to be submitted in 

the FCC Form 175. An applicant should 

consult the Commission’s rules to 

ensure that, in addition to the materials 

described below, all required 

information is included in its short-form 

application. To the extent the 

information in the Auction 112 

Procedures Public Notice does not 

address an applicant’s specific operating 

structure, or if the applicant needs 

additional information or guidance 

concerning the described disclosure 

requirements, the applicant should 

review the educational materials for 

Auction 112 (see the Education section 

of the Auction 112 website at 

www.fcc.gov/auction/112) and use the 

contact information provided in the 

Auction 112 Procedures Public Notice to 

consult with Commission staff to better 

understand the information that it must 

submit in its short-form application. 

B. Certification That Applicant Has 

Read the Procedures Public Notice and 

Familiarized Itself With Requirements 

19. In the Auction 112 Comment 

Public Notice, OEA and MB sought 

comment on a proposal to require each 

participant in Auction 112 to certify in 

its short-form application, under 

penalty of perjury, that it has read the 

public notice adopting procedures for 

the auction and that it has familiarized 

itself both with the auction procedures 

and with the requirements for obtaining 

a construction permit for a TV station. 

As with other certifications required to 

be made in an auction application, a 

failure to make the certification would 

render the application unacceptable for 

filing, and the applicant will not be 

found qualified to bid. OEA and MB 

proposed this requirement to help 

ensure that each applicant has reviewed 

the procedures to become a qualified 

bidder and participate in the auction 

process and that it has investigated and 

assessed technical and business factors 

that may be relevant to its use of the 

licenses being offered. OEA and MB 

expressed the belief that this 

requirement would promote an 

applicant’s successful participation and 

minimize its risk of defaulting on its 

auction obligations. No parties filed 

comments addressing this proposal, and 

OEA and MB adopt it in the Auction 

112 Procedures Public Notice. 

20. This certification is designed to 

bolster applicants’ efforts to educate 

themselves about the procedures for 

auction participation and to ensure that, 

prior to submitting their short-form 

applications, applicants understand 

their obligation to stay abreast of 

relevant, forthcoming information. 

Familiarity with the Commission’s rules 

and procedures governing Auction 112 

may also help bidders avoid the 

consequences to them associated with 

defaults, which also cause harm to other 

applicants and the public by reducing 

the efficiency of the auction process and 

reducing the likelihood that the license 

will be assigned to the bidder that 

values it the most. This certification, 

along with the other certifications 

required pursuant to 47 CFR 1.2105(a), 

will promote submission of applications 

that meet the Commission’s 

requirements, thereby leading to a more 

efficient application process. 

21. A substantively similar 

requirement was recently instituted for 

Auction 110, a Commission auction of 

flexible-use licenses in the 3.45–3.55 

GHz band. That requirement furthered a 

long-standing policy under which the 

Commission expressly places a burden 

upon each applicant to be thoroughly 

familiar with the procedures, terms, and 

conditions contained in the relevant 

Procedures Public Notice and any future 

public notices that may be released in 

the auction proceeding. While the 

certification OEA and MB add refers to 

information regarding auction 

procedures and licensing that is 

available at the time of certification, 

potential auction applicants are on 

notice that their educational efforts 

must continue even after their shortform applications are filed. Commission 

staff routinely makes available detailed 

educational materials, such as 

interactive, online tutorials and 

technical guides, to enhance interested 

parties’ comprehension of the prebidding and bidding processes and to 

help minimize the need for applicants 

to engage outside engineers, legal 

counsel, or other auction experts. 

22. For these reasons, OEA and MB 

will require each Auction 112 applicant 

to certify as follows in its short-form 

application: That the applicant has read 

the public notice adopting procedures 

for the auction and that it has 

familiarized itself both with the auction 

procedures and with the requirements 

for obtaining a construction permit for 

a television broadcast station. 

23. An applicant must provide this 

certification under penalty of perjury, 

consistent with 47 CFR 1.2105(a). 


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C. Authorized Bidders 

24. An applicant must designate at 

least one authorized bidder, and no 

more than three, in its FCC Form 175. 

The Commission’s rules prohibit an 

individual from serving as an 

authorized bidder for more than one 

auction applicant or being listed as an 

authorized bidder in more than one FCC 

Form 175 application. 

D. Permit Selection 

25. An applicant must select on its 

FCC Form 175 all of the construction 

permits on which it may want to bid. 

An applicant must carefully review and 

verify its construction permit selections 

before the FCC Form 175 filing deadline 

because permit selections cannot be 

changed after the initial auction 

application filing deadline. The FCC 

Auction Bidding System (bidding 

system) will not accept bids on 

construction permits that were not 

selected on the bidder’s FCC Form 175. 

E. Disclosure of Agreements and 

Bidding Arrangements 

26. An applicant must provide in its 

FCC Form 175 a brief description of, 

and identify each party to, any 

partnerships, joint ventures, consortia or 

agreements, arrangements, or 

understandings of any kind relating to 

the TV construction permits being 

auctioned, including any agreements 

that address or communicate directly or 

indirectly bids (including specific 

prices), bidding strategies (including the 

specific licenses on which to bid or not 

to bid), or the post-auction market 

structure, to which the applicant, or any 

party that controls or is controlled by 

the applicant, is a party. In connection 

with the agreement disclosure 

requirement, the applicant must certify 

under penalty of perjury in its FCC 

Form 175 that it has described, and 

identified each party to, any such 

agreements, arrangements, or 

understandings to which it (or any party 

that controls it or that it controls) is a 

party. If, after the FCC Form 175 filing 

deadline, an auction applicant enters 

into any agreement relating to the 

licenses being auctioned, then it is 

subject to these same disclosure 

obligations. Each applicant must 

maintain the accuracy and completeness 

of the information in its pending 

auction application. 

27. For purposes of making the 

required agreement disclosures on the 

FCC Form 175, if parties agree in 

principle on all material terms prior to 

the application filing deadline, then 

each party to the agreement that is 

submitting an auction application must 

provide a brief description of, and 

identify the other party or parties to, the 

agreement on its respective FCC Form 

175, even if the agreement has not been 

reduced to writing. Parties that have not 

agreed in principle by the FCC Form 

175 filing deadline should not describe, 

or include the names of parties to, the 

discussions on their applications. 

28. The Commission’s rules generally 

prohibit joint bidding and other 

arrangements involving auction 

applicants (including any party that 

controls or is controlled by such 

applicants). For purposes of the 

prohibition, a joint bidding arrangement 

includes any arrangement relating to the 

construction permits being auctioned 

that addresses or communicates, 

directly or indirectly, bidding at the 

auction, bidding strategies, including 

arrangements regarding price or the 

specific construction permits on which 

to bid, and any such arrangement 

relating to the post-auction market 

structure. 

29. To implement the prohibition on 

joint bidding arrangements, the 

Commission’s rules require each 

applicant to certify in its short-form 

application that it has disclosed any 

arrangements or understandings of any 

kind relating to the permits or licenses 

being auctioned to which it (or any 

party that controls or is controlled by it) 

is a party. The applicant must also 

certify that it (or any party that controls 

or is controlled by it) has not entered 

and will not enter into any arrangement 

or understanding of any kind relating 

directly or indirectly to bidding at 

auction with, among others, any other 

applicant. 

30. Although the Commission’s rules 

do not prohibit auction applicants from 

communicating about matters that are 

within the scope of an excepted 

agreement that has been disclosed in an 

FCC Form 175, the Commission reminds 

applicants that certain discussions or 

exchanges could nonetheless touch 

upon impermissible subject matters, and 

that compliance with the Commission’s 

rules will not insulate a party from 

enforcement of the antitrust laws. 

31. Applicants should bear in mind 

that a winning bidder will be required 

to disclose in its FCC Form 2100 postauction application the specific terms, 

conditions, and parties involved in any 

agreement relating to the construction 

permits being auctioned into which it 

had entered prior to the time bidding 

was completed. This applies to any 

settlement agreement, joint venture, 

partnership, or other agreement, 

arrangement, or understanding of any 

kind entered into relating to the 

competitive bidding process, including 

any agreements relating to the 

construction permits being auctioned 

that address or communicate directly or 

indirectly bids (including specific 

prices), bidding strategies (including the 

specific construction permits on which 

to bid or not to bid), or the post-auction 

market structure, to which the 

applicant, or any party that controls or 

is controlled by the applicant, is a party. 

F. Ownership Disclosure Requirements 

32. Each applicant must comply with 

the ownership disclosure requirements 

and provide information required by 47 

CFR 1.2105 and 1.2112. Specifically, in 

completing FCC Form 175, an applicant 

must fully disclose information 

regarding the real party or parties-ininterest in the applicant or application 

and the ownership structure of the 

applicant, including both direct and 

indirect ownership interests of 10% or 

more, as prescribed in 47 CFR 1.2105 

and 1.2112. These interest holders may 

differ from the types of attributable 

interest holders that are required to be 

reported by broadcast applicants under 

part 73 of the rules in conjunction with 

licensing and assignment and transfer of 

facilities or reporting of ownership 

information, such as insulated interest 

holders and holders of non-voting stock/ 

equity in the applicant. Each applicant 

is responsible for ensuring that 

information submitted in its short-form 

application is complete and accurate. 

33. In certain circumstances, an 

applicant may have previously filed an 

FCC Form 602 ownership disclosure 

information report or filed an auction 

application for a previous auction in 

which ownership information was 

disclosed. The most current ownership 

information contained in any FCC Form 

602 or previous auction application on 

file with the Commission that used the 

same FCC Registration Number (FRN) 

the applicant is using to submit its FCC 

Form 175 will automatically be prefilled into certain ownership sections on 

the applicant’s FCC Form 175, if such 

information is in an electronic format 

compatible with FCC Form 175. Each 

applicant must carefully review any 

ownership information automatically 

entered into its FCC Form 175, 

including any ownership attachments, 

to confirm that all information supplied 

on FCC Form 175 is complete and 

accurate as of the application filing 

deadline. Any information that needs to 

be corrected or updated must be 

changed directly in FCC Form 175. 

G. Foreign Ownership Disclosure 

Requirements 

34. The provisions in 47 U.S.C. 310 

require the Commission to review 


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foreign investment in radio station 

licenses and imposes specific 

restrictions on who may hold certain 

types of radio licenses. In completing 

FCC Form 175, an applicant is required 

to disclose information concerning 

foreign ownership of the applicant. If an 

applicant has foreign ownership 

interests in excess of the applicable 

limit or benchmark set forth in 47 U.S.C. 

310(b), then it may seek to participate in 

Auction 112 only if it has filed a 

petition for declaratory ruling with the 

Media Bureau prior to the FCC Form 

175 filing deadline. An applicant must 

certify in its FCC Form 175 that, as of 

the deadline for filing its application to 

participate in the auction, the applicant 

either is in compliance with the foreign 

ownership provisions of 47 U.S.C. 310 

or has filed a petition for declaratory 

ruling requesting Commission approval 

to exceed the applicable foreign 

ownership limit or benchmark in 47 

U.S.C. 310(b) that is pending before, or 

has been granted by, the Commission. 

H. Information Procedures During the 

Auction Process 

35. Consistent with past practice in 

most recent Commission spectrum 

auctions, OEA and MB adopt the 

proposal to limit information available 

in Auction 112 in order to discourage 

unproductive and anticompetitive 

strategic behavior. Accordingly, OEA 

and MB will not identify bidders 

placing particular bids until after the 

bidding has closed. While OEA and MB 

generally make available to the public 

information provided in each 

applicant’s FCC Form 175 following an 

initial review by Commission staff, they 

will not make public until after bidding 

has closed: (1) The construction permits 

that an applicant selects for bidding in 

its short-form application, (2) the 

amount of any upfront payment made 

by or on behalf of an applicant, (3) any 

applicant’s bidding eligibility, and (4) 

any other bidding-related information 

that might reveal the identity of the 

bidder placing a bid. 

36. The limited information 

procedures used in past auctions have 

helped safeguard against potential 

anticompetitive behavior such as 

retaliatory bidding and collusion. No 

commenters objected to this proposal, 

and OEA and MB find nothing in the 

record to suggest that they should not 

use those procedures for Auction 112. 

The competitive benefits associated 

with limiting information disclosure 

support adoption of such procedures 

and outweigh the potential benefits of 

full disclosure. 

37. After the close of each round of 

bidding in Auction 112, under the 

limited information procedures 

(sometimes also referred to as 

anonymous bidding), for each permit 

OEA and MB will make public its 

current provisionally winning bid 

amount, the minimum acceptable bid 

amount for the following round, and the 

amounts of all bids placed on the permit 

during the round. These reports will be 

publicly accessible. 

38. Throughout the auction, OEA and 

MB will provide bidders with secure 

access to certain non-public bidding 

information while bidding is ongoing. 

For example, bidders will be able to 

view their own level of eligibility, both 

before and during the auction. 

39. After the close of bidding, bidders’ 

permit selections, upfront payment 

amounts, bidding eligibility, bids, and 

other bidding-related information will 

be made publicly available. 

40. OEA and MB warn applicants that 

direct or indirect communication to 

other applicants or the public disclosure 

of non-public information (e.g., 

reductions in eligibility, identities of 

bidders) could violate the Commission’s 

rule prohibiting certain 

communications. Therefore, to the 

extent an applicant believes that such a 

disclosure is required by law or 

regulation, including regulations issued 

by the U.S. Securities and Exchange 

Commission (SEC), OEA and MB 

strongly urge that the applicant consult 

with Commission staff in the Auctions 

Division before making such disclosure. 

I. Prohibited Communications and 

Compliance With Antitrust Laws 

41. The rules prohibiting certain 

communications set forth in 47 CFR 

1.2105(c) and 73.5002(d) and (e) apply 

to each ‘‘applicant’’ in Auction 112. The 

provisions in 47 CFR 1.2105(c)(1) 

provide that, subject to specified 

exceptions, after the deadline for filing 

a short-form application, all applicants 

are prohibited from cooperating or 

collaborating with respect to, 

communicating with or disclosing, to 

each other in any manner the substance 

of their own, or each other’s, or any 

other applicant’s bids or bidding 

strategies (including post-auction 

market structure), or discussing or 

negotiating settlement agreements, until 

after the down payment deadline. 

1. Entities Subject to Section 1.2105(c) 

42. An ‘‘applicant’’ for purposes of 

this rule includes the officers and 

directors of the applicant, all 

‘‘controlling interests’’ in the entity 

submitting the FCC Form 175, as well as 

all holders of interests amounting to 

10% or more of that entity. A party that 

submits an application becomes an 

‘‘applicant’’ under the rule at the shortform application filing deadline, and 

that status does not change based on 

later developments, including failure to 

become a qualified bidder. Thus, an 

auction applicant that does not correct 

deficiencies in its application, fails to 

submit a timely and sufficient upfront 

payment, or does not otherwise become 

qualified, remains an ‘‘applicant’’ for 

purposes of the rule and remains subject 

to the prohibition on certain 

communications until the applicable 

down payment deadline. 

2. Prohibition Applies Until Down 

Payment Deadline 

43. The prohibition in 47 CFR 

1.2105(c) on certain communications 

begins at an auction’s short-form 

application filing deadline and ends at 

the auction’s down payment deadline 

after the auction closes, which will be 

announced in a future public notice. 

3. Scope of Prohibition on Certain 

Communications; Prohibition on Joint 

Bidding Agreements 

44. The provisions in 47 CFR 

1.2105(c) prohibit certain 

communications between auction 

applicants, regardless of whether the 

applicants seek permits in the same 

geographic area or market. The rule also 

prohibits any ‘‘joint bidding 

arrangement,’’ including arrangements 

relating to the permits being auctioned 

that address or communicate, directly or 

indirectly, bidding at the auction, 

bidding strategies, including 

arrangements regarding price or the 

specific permits on which to bid, and 

any such arrangements relating to the 

post-auction market structure. The rule 

allows for limited exceptions for 

communications within the scope of 

any arrangement consistent with the 

exclusion from the Commission’s rule 

prohibiting joint bidding, provided such 

arrangement is disclosed on the 

applicant’s short-form application. An 

applicant may communicate pursuant to 

any pre-existing agreements, 

arrangements, or understandings 

relating to the licenses being auctioned 

that are solely operational or that 

provide for the transfer or assignment of 

licenses, provided that such agreements, 

arrangements, or understandings are 

disclosed on its application and do not 

both relate to the permits at auction and 

address or communicate bids (including 

amounts), bidding strategies, or the 

particular permits or licenses on which 

to bid or the post-auction market 

structure. 

45. In addition to express statements 

of bids and bidding strategies, the 

prohibition against communicating ‘‘in 


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any manner’’ includes public 

disclosures as well as private 

communications and indirect or 

implicit communications. 

Consequently, an applicant must take 

care to determine whether its auctionrelated communications may reach 

another applicant. Applicants are 

reminded that the prohibition on 

communications between applicants 

begins at the deadline for submitting 

short-form applications and before the 

public notice identifying applicants is 

released. Special care should be taken 

with regard to any public disclosures or 

private communications regarding bids 

or bidding strategies during the period 

following the short-form application 

deadline when the identity of other 

applicants is not known. 

46. Parties subject to 47 CFR 1.2105(c) 

should take special care in 

circumstances where their officers, 

directors, and employees may receive 

information directly or indirectly 

relating to any applicant’s bids or 

bidding strategies. Such information 

may be deemed to have been received 

by the applicant under certain 

circumstances. For example, 

Commission staff have determined that, 

where an individual serves as an officer 

or director for two or more applicants, 

the bids and bidding strategies of one 

applicant are presumed to be conveyed 

to the other applicant through the 

shared officer or director, which creates 

an apparent violation of the rule 

47. Subject to the limited exceptions 

for communications within the scope of 

any arrangement consistent with the 

exclusion from the Commission’s rule 

prohibiting joint bidding, 47 CFR 

1.2105(c)(1) prohibits applicants from 

communicating with specified other 

parties only with respect to ‘‘their own, 

or each other’s, or any other applicant’s 

bids or bidding strategies . . . .’’ The 

Prohibited Communications Guidance 

Public Notice, 80 FR 63215, October 19, 

2015, released in advance of the 

broadcast incentive auction (Auction 

1000) reviewed the scope of the 

prohibition generally, as well as specific 

variations on the prohibition that were 

unique to Auction 1000. As the 

Commission explained therein, a 

communication conveying ‘‘bids or 

bidding strategies (including postauction market structure)’’ must also 

relate to the ‘‘licenses being auctioned’’ 

in order to be covered by the 

prohibition. Thus, the prohibition is 

limited in scope and does not apply to 

all communications between or among 

the specified parties. The Commission 

consistently has made clear that 

application of the rule prohibiting 

communications has never required 

total suspension of essential ongoing 

business. Entities subject to the 

prohibition may negotiate agreements 

during the prohibition period, provided 

that the communications involved do 

not relate to both: (1) The licenses or 

permits being auctioned and (2) bids or 

bidding strategies or post-auction 

market structure. 

48. Accordingly, business discussions 

and negotiations that are unrelated to 

bidding in Auction 112 and that do not 

convey information about the bids or 

bidding strategies of an applicant, 

including the post-auction market 

structure, are not prohibited by the rule. 

Moreover, not all auction-related 

information is covered by the 

prohibition. For example, 

communicating merely whether a party 

has or has not applied to participate in 

Auction 112 will not violate the rule. In 

contrast, communicating, among other 

things, how a party will participate, 

including whether or not a party plans 

to submit an upfront payment and the 

upfront payment amount, specific bid 

amounts, and/or whether or not the 

party is placing or intends to place bids, 

would convey bids or bidding strategies 

and would be prohibited. 

49. While 47 CFR 1.2105(c) does not 

prohibit business discussions and 

negotiations among auction applicants 

that are unrelated to the auction, each 

applicant must remain vigilant not to 

communicate, directly or indirectly, 

information that affects, or could affect, 

bids or bidding strategies. Certain 

discussions might touch upon subject 

matters that could convey price or 

geographic information related to 

bidding strategies. Such subject areas 

include, but are not limited to, 

management, sales, local marketing 

agreements, and other transactional 

agreements. 

50. OEA and MB caution applicants 

that bids or bidding strategies may be 

communicated outside of situations that 

involve one party subject to the 

prohibition communicating privately 

and directly with another such party. 

For example, the Commission has 

warned that prohibited communications 

concerning bids and bidding strategies 

may include communications regarding 

capital calls or requests for additional 

funds in support of bids or bidding 

strategies to the extent such 

communications convey information 

concerning the bids and bidding 

strategies directly or indirectly. 

Moreover, the Commission found a 

violation of the rule against prohibited 

communications when an applicant 

used the Commission’s bidding system 

to disclose its bidding strategy in a 

manner that explicitly invited other 

auction participants to cooperate and 

collaborate . . . in specific markets, and 

it has placed auction participants on 

notice that the use of its bidding system 

to disclose market information to 

competitors will not be tolerated and 

will subject bidders to sanctions. 

51. Likewise, when completing a 

short-form application, each applicant 

should avoid any statements or 

disclosures that may violate 47 CFR 

1.2105(c), particularly in light of the 

limited information procedures in effect 

for Auction 112. Specifically, an 

applicant should avoid including any 

information in its short-form application 

that might convey information regarding 

its permit selections, such as referring to 

certain markets in describing 

agreements, including any information 

in application attachments that will be 

publicly available that may otherwise 

disclose the applicant’s permit 

selections, or using applicant names 

that refer to permits being offered. 

52. Applicants also should be mindful 

that communicating non-public 

application or bidding information 

publicly or privately to another 

applicant may violate 47 CFR 1.2105(c) 

even though that information 

subsequently may be made public 

during later periods of the application 

or bidding processes. 

4. Communicating With Third Parties 

53. The provisions in 47 CFR 

1.2105(c) do not prohibit an applicant 

from communicating bids or bidding 

strategies to a third party, such as a 

consultant or consulting firm, counsel, 

or lender. The applicant should take 

appropriate steps, however, to ensure 

that any third party it employs for 

advice pertaining to its bids or bidding 

strategies does not become a conduit for 

prohibited communications to other 

specified parties, as that would violate 

the rule. For example, an applicant 

might require a third party, such as a 

lender, to sign a non-disclosure 

agreement before the applicant 

communicates any information 

regarding bids or bidding strategy to the 

third party. Within third-party firms, 

separate individual employees, such as 

attorneys or auction consultants, may 

advise individual applicants on bids or 

bidding strategies, as long as such firms 

implement firewalls and other 

compliance procedures that prevent 

such individuals from communicating 

the bids or bidding strategies of one 

applicant to other individuals 

representing separate applicants. 

Although firewalls and/or other 

procedures should be used, their 

existence is not an absolute defense to 


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liability if a violation of the rule has 

occurred. 

54. As the Commission has noted in 

other broadcast auctions, in the case of 

an individual, the objective 

precautionary measure of a firewall is 

not available. As a result, an individual 

that is privy to bids or bidding 

information of more than one applicant 

presents a greater risk of becoming a 

conduit for a prohibited 

communication. OEA and MB 

emphasize that whether a prohibited 

communication has taken place in a 

given case will depend on all the facts 

pertaining to the case, including who 

possessed what information, what 

information was conveyed to whom, 

and the course of bidding in the auction. 

55. OEA and MB remind potential 

applicants that they may discuss the 

short-form application or bids for 

specific permits with the counsel, 

consultant, or expert of their choice 

before the short-form application 

deadline. Furthermore, the same thirdparty individual could continue to give 

advice to multiple applicants regarding 

their applications after the short-form 

application deadline, provided that no 

information pertaining to bids or 

bidding strategies is conveyed to that 

individual from any of the applicants 

the individual advises. OEA and MB 

remind potential applicants, however, 

that no person may serve as an 

authorized bidder for more than one 

applicant in Auction 112. 

56. Applicants also should use 

caution in their dealings with other 

parties, such as members of the press, 

financial analysts, or others who might 

become conduits for the communication 

of prohibited bidding information. For 

example, even though communicating 

that it has applied to participate in this 

auction will not violate the rule, an 

applicant’s statement to the press or a 

statement on social media that it intends 

to stop bidding or does not intend to bid 

at all in an auction could give rise to a 

finding of a 47 CFR 1.2105 violation. 

Similarly, an FCC Form 175 applicant’s 

public statement of intent not to place 

bids during bidding in Auction 112 

could also violate the rule. 

5. Section 1.2105(c) Certifications 

57. By electronically submitting its 

FCC Form 175, each applicant in 

Auction 112 certifies its compliance 

with 47 CFR 1.2105(c) and 73.5002(d) of 

the rules. If an applicant has a noncontrolling interest with respect to more 

than one application, then the applicant 

must certify that it has established 

internal control procedures to preclude 

any person acting on behalf of the 

applicant from possessing information 

about the bids or bidding strategies of 

more than one applicant or 

communicating such information with 

respect to either applicant to another 

person acting on behalf of and 

possessing such information regarding 

another applicant. The mere filing of a 

certifying statement as part of an 

application, however, will not outweigh 

specific evidence that a prohibited 

communication has occurred, nor will it 

preclude the initiation of an 

investigation when warranted. Any 

applicant found to have violated these 

communication prohibitions may be 

subject to sanctions. 

6. Duty To Report Prohibited 

Communications 

58. The provision in 47 CFR 

1.2105(c)(4) requires that any applicant 

that makes or receives a communication 

that appears to violate 47 CFR 1.2105(c) 

must report such communication in 

writing to the Commission immediately, 

and in no case later than five business 

days after the communication occurs. 

Each applicant’s obligation to report any 

such communication continues beyond 

the five-day period after the 

communication is made, even if the 

report is not made within the five-day 

period. 

7. Procedures for Reporting Prohibited 

Communications 

59. A party reporting any information 

or communication pursuant to 47 CFR 

1.65 or 1.2105(a)(2) or (c)(4) must take 

care to ensure that any report of a 

prohibited communication does not 

itself give rise to a violation of 47 CFR 

1.2105(c). For example, reporting a 

prohibited communication through 

ECFS or another Commission filing 

system that allows public access to filed 

materials could violate the rule by 

communicating prohibited information 

to other parties covered by the rule. 

60. An applicant must file only a 

single report concerning a prohibited 

communication and must file that report 

with the Commission personnel 

expressly charged with administering 

the Commission’s auctions. This rule is 

designed to minimize the risk of 

inadvertent dissemination of 

information in such reports. Any reports 

required by 47 CFR 1.2105(c) must be 

filed consistent with the instructions set 

forth in the Auction 112 Procedures 

Public Notice. For Auction 112, such 

reports must be filed with the Chief of 

the Auctions Division, OEA, by the most 

expeditious means available. Any such 

report should be submitted by email to 

the Auctions Division Chief at the 

following email address: auction112@

fcc.gov. If you choose instead to submit 

a report in hard copy, contact Auctions 

Division staff at auction112@fcc.gov or 

(202) 418–0660 for guidance prior to 

making any filing. 

61. Given the potential competitive 

sensitivity of information in such a 

report, a party seeking to report a 

prohibited communication should 

consider submitting its report with a 

request that the report or portions of the 

submission be withheld from public 

inspection by following the procedures 

specified in 47 CFR 0.459. OEA and MB 

encourage such parties to coordinate 

with the Auctions Division staff about 

the procedures for submitting reports of 

prohibited communications. 

8. Winning Bidders Must Disclose 

Terms of Agreements 

62. Each applicant that is a winning 

bidder will be required to provide, as 

part of its long-form application, any 

agreement or arrangement relating to the 

competitive bidding process that it has 

entered into and a summary of the 

specific terms, conditions, and parties 

involved in that agreement. This applies 

to any settlement agreement, bidding 

consortia, joint venture, partnership, or 

agreement, understanding, or other 

arrangement entered into relating to the 

competitive bidding process, including 

any agreement relating to the postauction market structure. Failure to 

comply with the Commission’s rules 

can result in enforcement action. 

9. Additional Information Concerning 

Rule Prohibiting Certain 

Communications in Commission 

Auctions 

63. A summary listing of documents 

issued by the Commission and OEA 

addressing the application of 47 CFR 

1.2105(c) is available on the 

Commission’s auction web page at 

www.fcc.gov/summary-listingdocuments-addressing-application-ruleprohibiting-certain-communications. 

10. Antitrust Laws 

64. Regardless of compliance with the 

Commission’s rules, applicants remain 

subject to the antitrust laws, which are 

designed to prevent anticompetitive 

behavior in the marketplace. 

Compliance with the disclosure 

requirements of 47 CFR 1.2105(c)(4) will 

not insulate a party from enforcement of 

the antitrust laws. For instance, a 

violation of the antitrust laws could 

arise out of actions taking place well 

before any party submits a short-form 

application. The Commission has cited 

a number of examples of potentially 

anticompetitive actions that would be 

prohibited under antitrust laws: for 

example, actual or potential competitors 


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may not agree to divide territories in 

order to minimize competition, 

regardless of whether they split a market 

in which they both do business, or 

whether they merely reserve one market 

for one and another market for the other. 

65. To the extent the Commission 

becomes aware of specific allegations 

that suggest that violations of the federal 

antitrust laws may have occurred, the 

Commission may refer such allegations 

to the United States Department of 

Justice for investigation. If an applicant 

is found to have violated the antitrust 

laws or the Commission’s rules in 

connection with its participation in the 

competitive bidding process, then it 

may be subject to a forfeiture and may 

be prohibited from participating further 

in Auction 112 and in future auctions, 

among other sanctions. 

J. New Entrant Bidding Credit 

66. To promote the objectives of 47 

U.S.C. 309(j) and further its longstanding commitment to the 

diversification of broadcast facility 

ownership, the Commission provides a 

tiered new entrant bidding credit for 

broadcast auction applicants with no, or 

very few, other media interests. 

67. Applicants that qualify for the 

new entrant bidding credit are eligible 

for a bidding credit in this auction that 

represents the amount by which a 

bidder’s winning bid is discounted. 

Eligibility for the new entrant bidding 

credit must be specified in an 

applicant’s short-form application, 

which establishes that applicant’s 

maximum bidding credit eligibility for 

Auction 112. The size of a new entrant 

bidding credit depends on the number 

of ownership interests in other media of 

mass communications that are 

attributable to the bidder-entity and its 

attributable interest-holders: 

• A 35% bidding credit will be given 

to a winning bidder if it, and/or any 

individual or entity with an attributable 

interest in the winning bidder, has no 

attributable interest in any other media 

of mass communications, as defined in 

47 CFR 73.5008; 

• A 25% bidding credit will be given 

to a winning bidder if it, and/or any 

individual or entity with an attributable 

interest in the winning bidder, has an 

attributable interest in no more than 

three mass media facilities, as defined 

in 47 CFR 73.5008; 

• No bidding credit will be given if 

any of the commonly owned mass 

media facilities serve the ‘‘same area’’ as 

the broadcast permit proposed in the 

auction, as defined in 47 CFR 

73.5007(b), or if the winning bidder, 

and/or any individual or entity with an 

attributable interest in the winning 

bidder, has attributable interests in more 

than three mass media facilities. 

68. Bidding credits are not 

cumulative; qualifying applicants 

receive either the 25% or the 35% 

bidding credit, but not both. 

69. The interests of the applicant, and 

of any individuals or entities with an 

attributable interest in the applicant, in 

other media of mass communications 

are considered when determining an 

applicant’s eligibility for the new 

entrant bidding credit. Attributable 

interests are defined in 47 CFR 73.3555 

and note 2 of that section. In Auction 

112, the bidder’s attributable interests, 

and thus, its maximum new entrant 

bidding credit eligibility, are 

determined as of the short-form 

application filing deadline. An 

applicant intending to divest a media 

interest or make any other ownership 

change, such as resignation of positional 

interests (officer or director) in order to 

avoid attribution for purposes of 

qualifying for the new entrant bidding 

credit, must have consummated such 

divestment transactions, or have 

completed such ownership changes, by 

no later than the FCC Form 175 filing 

deadline. Each prospective bidder is 

reminded, however, that events 

occurring after the short-form 

application filing deadline, such as the 

acquisition of attributable interests in 

media of mass communications, may 

cause diminishment or loss of the 

bidding credit and, must be reported 

immediately. OEA and MB remind each 

applicant of its duty to continuously 

maintain the accuracy of information 

submitted in its auction application. 

70. Under broadcast attribution rules, 

those entities or individuals with an 

attributable interest in a bidder include: 

• All officers and directors of a 

corporate bidder; 

• any owner of 5% or more of the 

voting stock of a corporate bidder; 

• all general partners and limited 

partners of a partnership bidder, unless 

the limited partners are sufficiently 

insulated; and 

• all members of a limited liability 

company, unless sufficiently insulated. 

71. In cases where an applicant’s 

spouse or close family member holds 

other media interests, such interests are 

not automatically attributable to the 

bidder. The Commission decides 

attribution issues in this context based 

on certain factors traditionally 

considered relevant. 

72. In the New Entrant Bidding Credit 

Reconsideration Order, 64 FR 44856, 

August 18, 1999, the Commission 

further refined the eligibility standards 

for the new entrant bidding credit, 

judging it appropriate to attribute the 

media interests held by very substantial 

investors in, or creditors of, an applicant 

claiming new entrant status. 

Specifically, the attributable mass media 

interests held by an individual or entity 

with an equity and/or debt interest in an 

applicant shall be attributed to that 

bidder for purposes of determining its 

eligibility for the new entrant bidding 

credit, if the equity and debt interests, 

in the aggregate, exceed 33% of the total 

asset value of the applicant, even if such 

an interest is non-voting. 

73. In the Diversity Order, 76 FR 7719, 

February 11, 2011, the Commission 

relaxed the equity/debt plus attribution 

standard, to allow for higher investment 

opportunities in entities meeting the 

definition of ‘‘eligible entities.’’ An 

‘‘eligible entity’’ is defined in Note 2(i) 

of 47 CFR 73.3555. Pursuant to the 

Diversity Order, the Commission will 

allow the holder of an equity or debt 

interest in the applicant to exceed the 

above-noted 33% threshold without 

triggering attribution provided (1) the 

combined equity and debt in the 

‘‘eligible entity’’ is less than 50%; or (2) 

the total debt in the ‘‘eligible entity’’ 

does not exceed 80% of the asset value, 

and the interest holder does not hold 

any equity interest, option, or promise 

to acquire an equity interest in the 

‘‘eligible entity’’ or any related entity. 

74. Generally, media interests will be 

attributable for purposes of the new 

entrant bidding credit to the same extent 

that such other media interests are 

considered attributable for purposes of 

the broadcast multiple ownership rules. 

Attributable interests held by a winning 

bidder in existing low power television, 

television translator, or FM translator 

facilities, however, will not be counted 

among the applicant’s other mass media 

interests in determining its eligibility for 

a new entrant bidding credit. A medium 

of mass communications is defined in 

47 CFR 73.5008(b). Full service 

noncommercial educational stations, on 

both reserved and non-reserved 

channels, are included among ‘‘media of 

mass communications’’ as defined in 47 

CFR 73.5008(b). 

1. Application Requirements 

75. In addition to the ownership 

information required pursuant to 47 

CFR 1.2105 and 1.2112, applicants 

seeking a new entrant bidding credit are 

required to establish on their short-form 

applications that they satisfy the 

eligibility requirements to qualify for 

the bidding credit. In those cases, a 

certification under penalty of perjury 

must be provided in completing the 

short-form application. An applicant 

claiming that it qualifies for a 35% new 

entrant bidding credit must certify that 


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neither it nor any of its attributable 

interest holders has any attributable 

interests in any other media of mass 

communications. An applicant claiming 

that it qualifies for a 25% new entrant 

bidding credit must certify that neither 

it nor any of its attributable interest 

holders has any attributable interests in 

more than three media of mass 

communications, and must identify and 

describe such media of mass 

communications. 

2. Unjust Enrichment 

76. Applicants should note that unjust 

enrichment provisions apply to a 

winning bidder that utilizes a bidding 

credit and subsequently seeks to assign 

or transfer control of its license or 

construction permit to an entity not 

qualifying for the same level of bidding 

credit. 

K. Provisions Regarding Former and 

Current Defaulters 

77. Pursuant to the rules governing 

competitive bidding, each applicant 

must make certifications regarding 

whether it is a current or former 

defaulter or delinquent. A current 

defaulter or delinquent is not eligible to 

participate in Auction 112, but a former 

defaulter or delinquent may participate 

so long as it is otherwise qualified and 

makes an upfront payment that is 50% 

more than would otherwise be 

necessary. Accordingly, each applicant 

must certify under penalty of perjury on 

its FCC Form 175 that it, its affiliates, its 

controlling interests, and the affiliates of 

its controlling interests are not in 

default on any payment for a 

Commission construction permit or 

license (including down payments) and 

that it is not delinquent on any non-tax 

debt owed to any Federal agency. 

Additionally, an applicant must certify 

under penalty of perjury whether it 

(along with its controlling interests) has 

ever been in default on any payment for 

a Commission construction permit or 

license (including down payments) or 

has ever been delinquent on any non-tax 

debt owed to any Federal agency, 

subject to the exclusions described 

below. For purposes of making these 

certifications, the term ‘‘controlling 

interest’’ is defined in 47 CFR 

1.2105(a)(4)(i). 

78. Under the Commission’s rule 

regarding applications by former 

defaulters, an applicant is considered a 

‘‘former defaulter’’ or a ‘‘former 

delinquent’’ when, as of the FCC Form 

175 deadline, the applicant or any of its 

controlling interests has defaulted on 

any Commission construction permit or 

license or has been delinquent on any 

non-tax debt owed to any Federal 

agency, but has since remedied all such 

defaults and cured all of the outstanding 

non-tax delinquencies. For purposes of 

the certification under 47 CFR 

1.2105(a)(2)(xii), the applicant may 

exclude from consideration any cured 

default on a Commission construction 

permit or license or cured delinquency 

on a non-tax debt owed to a Federal 

agency for which any of the following 

criteria are met: (1) The notice of the 

final payment deadline or delinquency 

was received more than seven years 

before the FCC Form 175 filing 

deadline, (2) the default or delinquency 

amounted to less than $100,000, (3) the 

default or delinquency was paid within 

two quarters (i.e., six months) after 

receiving the notice of the final payment 

deadline or delinquency, or (4) the 

default or delinquency was the subject 

of a legal or arbitration proceeding and 

was cured upon resolution of the 

proceeding. With respect to the first 

exclusion, notice to a debtor may 

include notice of a final payment 

deadline or notice of delinquency and 

may be express or implied depending 

on the origin of any Federal non-tax 

debt giving rise to a default or 

delinquency. Additionally, for the third 

exclusion, the date of receipt of the 

notice of a final default deadline or 

delinquency by the intended party or 

debtor will be used for purposes of 

verifying receipt of notice. 

79. In addition to the Auction 112 

Procedures Public Notice, OEA and MB 

encourage applicants to review previous 

guidance on default and delinquency 

disclosure requirements in the context 

of the auction short-form application 

process. Parties are also encouraged to 

consult with Auctions Division staff if 

they have any questions about default 

and delinquency disclosure 

requirements. 

80. The Commission considers 

outstanding debts owed to the United 

States Government, in any amount, to be 

a serious matter. The Commission 

adopted rules, including a provision 

referred to as the ‘‘red light rule,’’ that 

implement its obligations under the 

Debt Collection Improvement Act of 

1996, which governs the collection of 

debts owed to the United States. Under 

the red-light rule, applications and other 

requests for benefits filed by parties that 

have outstanding debts owed to the 

Commission will not be processed. 

When adopting that rule, the 

Commission explicitly declared, 

however, that its competitive bidding 

rules ‘‘are not affected’’ by the red-light 

rule. As a consequence, the 

Commission’s adoption of the red-light 

rule does not alter the applicability of 

any of its competitive bidding rules, 

including the provisions and 

certifications of 47 CFR 1.2105 and 

1.2106, with regard to current and 

former defaults or delinquencies. 

81. OEA and MB remind each 

applicant, however, that the 

Commission’s Red Light Display 

System, which provides information 

regarding debts currently owed to the 

Commission, may not be determinative 

of an auction applicant’s ability to 

comply with the default and 

delinquency disclosure requirements of 

47 CFR 1.2105. Thus, while the red-light 

rule ultimately may prevent the 

processing of long-form applications by 

auction winners, an auction applicant’s 

lack of current ‘‘red light’’ status is not 

necessarily determinative of its 

eligibility to participate in an auction 

(or whether it may be subject to an 

increased upfront payment obligation). 

Moreover, a prospective applicant in 

Auction 112 should note that any longform applications filed after the close of 

bidding will be reviewed for compliance 

with the Commission’s red-light rule, 

and such review may result in the 

dismissal of a winning bidder’s longform application. OEA and MB 

encourage each applicant to carefully 

review all records and other available 

Federal agency databases and 

information sources to determine 

whether the applicant, or any of its 

affiliates, or any of its controlling 

interests, or any of the affiliates of its 

controlling interests, currently owes or 

was ever delinquent in the payment of 

non-tax debt owed to any Federal 

agency. 

L. Optional Applicant Status 

Identification 

82. An applicant owned by members 

of minority groups and/or women, as 

defined in 47 CFR 1.2110(c)(3), or that 

is a rural telephone company, as defined 

in 47 CFR 1.2110(c)(4), may identify 

itself as such in filling out its FCC Form 

175. This applicant status information is 

collected for statistical purposes only 

and assists the Commission in 

monitoring the participation of various 

groups in its auctions. 

M. Noncommercial Educational Status 

Election 

83. In the NCE Second Report and 

Order, 68 FR 26220, May 15, 2003, the 

Commission held that applications for 

noncommercial educational (NCE) 

broadcast stations on non-reserved 

spectrum, filed during an auction filing 

window, will be returned as 

unacceptable for filing if mutually 

exclusive with any application for a 

commercial station. Accordingly, if an 

FCC Form 175 filed during the Auction 


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112 filing window identifying the 

application’s proposed station as 

noncommercial educational is mutually 

exclusive with any application filed 

during that window for a commercial 

station, the NCE application will be 

returned as unacceptable for filing and 

the applicant will not be provided with 

any further opportunity to become 

eligible to bid in this auction. For this 

reason, each prospective applicant in 

this auction should consider carefully 

whether it wishes to propose NCE 

operation for any television broadcast 

station acquired in this auction. This 

NCE election cannot be reversed after 

the initial application filing deadline. 

N. Modifications to FCC Form 175 

1. Only Minor Modifications Allowed 

84. After the initial short-form 

application filing deadline, an Auction 

112 applicant will be permitted to make 

only minor changes to its FCC Form 

175. Examples of minor changes include 

the deletion or addition of authorized 

bidders (to a maximum of three) and the 

revision of addresses and telephone 

numbers of the applicant, its 

responsible party, and its contact 

person. Major modifications to an FCC 

Form 175 (e.g., change of construction 

permit selection, certain changes in 

ownership that would constitute an 

assignment or transfer of control of the 

applicant, change in the required 

certifications, change in applicant’s 

legal classification that results in a 

change in control, or change in claimed 

eligibility for a higher percentage of 

bidding credit) will not be permitted 

after the FCC Form 175 filing deadline. 

If an amendment reporting changes is a 

‘‘major amendment,’’ as described in 47 

CFR 1.2105(b)(2), the major amendment 

will not be accepted and may result in 

the dismissal of the application. 

Questions about FCC Form 175 

amendments should be directed to the 

Auctions Division at (202) 418–0660. 

2. Duty to Maintain Accuracy and 

Completeness of FCC Form 175 

85. Pursuant to 47 CFR 1.65, each 

applicant has a continuing obligation to 

maintain the accuracy and completeness 

of information furnished in a pending 

application, including a pending 

application to participate in Auction 

112. Consistent with the requirements 

for spectrum auctions, an applicant for 

Auction 112 must furnish additional or 

corrected information to the 

Commission within five business days 

after a significant occurrence, or amend 

its FCC Form 175 no more than five 

business days after the applicant 

becomes aware of the need for the 

amendment. In accordance with the 

Commission’s rules, an applicant’s 

obligation to make modifications to a 

pending auction application in order to 

provide additional or corrected 

information continues beyond the fiveday period, even if the report is not 

made within the five-day period. An 

applicant is obligated to amend its 

pending application even if a reported 

change may result in the dismissal of 

the application because it is 

subsequently determined to be a major 

modification. 

3. Modifying an FCC Form 175 

86. As noted above, a party seeking to 

participate in Auction 112 must file an 

FCC Form 175 electronically via the 

FCC’s Auction Application System. 

During the short-form application filing 

window, an applicant will be able to 

make any necessary modifications to its 

FCC Form 175 in the Auction 

Application System. An applicant that 

has certified and submitted its FCC 

Form 175 before the short-form 

application filing deadline may 

continue to make modifications as often 

as necessary until the filing deadline; 

however, the applicant must re-certify 

and re-submit its FCC Form 175 before 

the filing deadline in order to confirm 

and effect any application changes. 

After each submission, a confirmation 

page will be displayed stating the 

submission time and submission date. 

87. An applicant will also be allowed 

to modify its FCC Form 175 in the 

Auction Application System, except for 

certain fields, during the resubmission 

filing window and after the release of 

the public notice announcing the 

qualified bidders for an auction. During 

these times, if an applicant needs to 

make permissible minor changes to its 

FCC Form 175 or must make changes in 

order to maintain the accuracy and 

completeness of its application pursuant 

to 47 CFR 1.65 and 1.2105(b)(4), then it 

must make the change(s) in the Auction 

Application System and re-certify and 

re-submit its application to confirm and 

effect the change(s). 

88. An applicant’s ability to modify 

its FCC Form 175 in the Auction 

Application System will be limited 

between the closing of the initial filing 

window and the opening of the 

application resubmission filing window, 

and between the closing of the 

resubmission filing window and the 

release of the public notice announcing 

the qualified bidders for an auction. 

During these periods, an applicant will 

be able to view its submitted 

application, but will be permitted to 

modify only the applicant’s address, 

responsible party address, and contact 

information (e.g., name, address, 

telephone number, etc.) in the Auction 

Application System. An applicant will 

not be able to modify any other pages 

of the FCC Form 175 in the Auction 

Application System during these 

periods. If, during these periods, an 

applicant needs to make other 

permissible minor changes to its FCC 

Form 175, or changes to maintain the 

accuracy and completeness of its 

application pursuant to 47 CFR 1.65 and 

1.2105(b)(4), then the applicant must 

submit a letter briefly summarizing the 

changes to its FCC Form 175 via email 

to auction112@fcc.gov. The email 

summarizing the changes must include 

a subject line referring to Auction 112 

and the name of the applicant, for 

example, ‘‘Re: Changes to Auction 112 

Auction Application of XYZ Corp.’’ Any 

attachments to the email must be 

formatted as Adobe® Acrobat® (PDF) or 

Microsoft® Word documents. An 

applicant that submits its changes in 

this manner must subsequently modify, 

certify, and submit its FCC Form 175 

application(s) electronically in the 

Auction Application System once it is 

again open and available to applicants. 

89. Applicants should also note that 

even at times when the Auction 

Application System is open and 

available to applicants, the system will 

not allow an applicant to make certain 

other permissible changes itself (e.g., 

correcting a misstatement of the 

applicant’s legal classification, name, or 

certifying official). If an applicant needs 

to make a permissible minor change of 

this nature, then it must submit a 

written request by email to the Auctions 

Division Chief, via auction112@fcc.gov 

requesting that the Commission 

manually make the change on the 

applicant’s behalf. Once Commission 

staff has informed the applicant that the 

change has been made in the Auction 

Application System, the applicant must 

then re-certify and re-submit its FCC 

Form 175 in the Auction Application 

System to confirm and effect the 

change(s). 

90. As with filing the FCC Form 175, 

any amendment(s) to the application 

and related statements of fact must be 

certified by an authorized representative 

of the applicant with authority to bind 

the applicant. Applicants should note 

that submission of any such amendment 

or related statement of fact constitutes a 

representation by the person certifying 

that he or she is an authorized 

representative with such authority and 

that the contents of the amendment or 

statement of fact are true and correct. 

91. Applicants must not submit 

application-specific material through 

the Commission’s Electronic Comment 


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Filing System. Further, as discussed 

above, parties submitting information 

related to their applications should use 

caution to ensure that their submissions 

do not contain confidential information 

or communicate information that would 

violate 47 CFR 1.2105(c) or the limited 

information procedures adopted for 

Auction 112. An applicant seeking to 

submit, outside of the Auction 

Application System, information that 

might reflect non-public information, 

such as an applicant’s upfront payment 

amount, or bidding eligibility, should 

consider including in its email a request 

that the filing or portions of the filing be 

withheld from public inspection until 

the end of the prohibition on certain 

communications pursuant to 47 CFR 

1.2105(c). 

92. Questions about FCC Form 175 

amendments should be directed to the 

Auctions Division at (202) 418–0660. 

III. Preparing for Bidding in Auction 

112 

A. Due Diligence 

93. OEA and MB remind each 

potential bidder that it is solely 

responsible for investigating and 

evaluating all technical and marketplace 

factors that may have a bearing on the 

value of the construction permit(s) it is 

seeking in Auction 112 and that it is 

required to certify, under penalty of 

perjury, that it has read the Auction 112 

Procedures Public Notice and has 

familiarized itself both with the auction 

procedures and with the requirements 

for obtaining a construction permit for 

a TV station. The Commission makes no 

representations or warranties about the 

use of this spectrum or these 

construction permits for particular 

services. Each applicant should be 

aware that a Commission auction 

represents an opportunity to become an 

FCC permittee in a broadcast service, 

subject to certain conditions and 

regulations. This includes the 

established authority of the Commission 

to alter the terms of existing licenses by 

rulemaking, which is equally applicable 

to permits or licenses awarded by 

auction. A Commission auction does not 

constitute an endorsement by the 

Commission of any particular service, 

technology, or product, nor does a 

Commission construction permit or 

license constitute a guarantee of 

business success. 

94. An applicant should perform its 

due diligence research and analysis 

before proceeding, as it would with any 

new business venture. In particular, 

OEA and MB encourage each potential 

bidder to perform technical analyses 

and/or refresh its previous analyses to 

assure itself that, should it become a 

winning bidder for any Auction 112 

construction permit, it will be able to 

build and operate facilities that will 

fully comply with all applicable 

technical and legal requirements. OEA 

and MB also urge each applicant to 

inspect any prospective transmitter sites 

located in, or near, the service area for 

which it plans to bid, to confirm the 

availability of such sites, and to 

familiarize itself with the Commission’s 

rules regarding any applicable federal, 

state, and local requirements, including 

the National Environmental Policy Act 

(NEPA), the National Historic 

Preservation Act (NHPA), and other 

environmental statutes. 

95. OEA and MB also encourage each 

applicant in Auction 112 to continue to 

conduct its own research throughout the 

auction in order to determine the 

existence of pending or future 

administrative or judicial proceedings 

that might affect its decision to continue 

participating in the auction. Each 

applicant is responsible for assessing 

the likelihood of the various possible 

outcomes and for considering the 

potential impact on construction 

permits available in this auction. The 

due diligence considerations mentioned 

in the Auction 112 Procedures Public 

Notice do not comprise an exhaustive 

list of steps that should be undertaken 

prior to participating in Auction 112. As 

always, the burden is on the potential 

bidder to determine how much research 

to undertake, depending upon specific 

facts and circumstances related to its 

interests. 

96. Applicants are solely responsible 

for identifying associated risks and for 

investigating and evaluating the degree 

to which such matters may affect their 

ability to bid on, otherwise acquire, or 

make use of the construction permits 

available in Auction 112. Each potential 

bidder is responsible for undertaking 

research to ensure that any permits won 

in this auction will be suitable for its 

business plans and needs. Each 

potential bidder must undertake its own 

assessment of the relevance and 

importance of information gathered as 

part of its due diligence efforts. 

97. The Commission makes no 

representations or guarantees regarding 

the accuracy or completeness of 

information in its databases or any 

third-party databases, including, for 

example, court docketing systems. To 

the extent the Commission’s databases 

may not include all information deemed 

necessary or desirable by an applicant, 

it must obtain or verify such 

information from independent sources 

or assume the risk of any 

incompleteness or inaccuracy in said 

databases. Furthermore, the 

Commission makes no representations 

or guarantees regarding the accuracy or 

completeness of information that has 

been provided by incumbent licensees 

and incorporated into its databases. 

B. Bidder Education 

98. Before the opening of the shortform application filing window for 

Auction 112, detailed educational 

information will be provided in various 

formats to would-be participants on the 

Auction 112 web page. Specifically, 

OEA will provide various materials on 

the pre-bidding processes in advance of 

the opening of the short-form 

application window, beginning with the 

release of step-by-step instructions for 

completing the FCC Form 175, which 

OEA will make available in the 

Education section of the Auction 112 

website at www.fcc.gov/auction/112. In 

addition, OEA will provide an online 

tutorial for the auction, covering preauction procedures including 

completing a short-form application in 

the FCC Auction Application System, 

and bidding procedures including how 

to use the FCC auction bidding system. 

In advance of the start of the mock 

auction, OEA will release a user guide 

for the bidding system. 

99. OEA and MB believe that parties 

interested in participating in Auction 

112 will find the interactive, online 

tutorial an efficient and effective way to 

further their understanding of the 

application and bidding processes. The 

online tutorial will allow viewers to 

navigate the presentation outline, 

review written notes, and listen to audio 

of the notes. Additional features of this 

web-based tool include links to auctionspecific Commission releases, email 

links for contacting Commission staff, 

and screen shots of the online 

application and bidding systems. The 

online tutorial will be accessible in the 

Education section of the Auction 112 

website at www.fcc.gov/auction/112. 

Once posted, the tutorial will remain 

continuously accessible. 

C. Short-Form Applications: Due Before 

6:00 p.m. ET on March 30, 2022 

100. In order to be eligible to bid in 

Auction 112, an applicant must first 

submit a short-form application (FCC 

Form 175) electronically via the Auction 

Application System following the 

instructions set forth in the FCC Form 

175 Instructions. The short-form 

application will become available with 

the opening of the initial filing window 

and must be submitted prior to 6:00 

p.m. ET on March 30, 2022. Late 

applications will not be accepted. No 


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filing fee is required to be paid at the 

time of filing a short-form application. 

101. Applications may be filed at any 

time beginning at noon ET on March 17, 

2022, until the filing window closes at 

6:00 p.m. ET on March 30, 2022. 

Applicants are strongly encouraged to 

file early and are responsible for 

allowing adequate time for filing their 

applications. There are no limits or 

restrictions on the number of times an 

application can be updated or amended 

until the initial filing deadline on March 

30, 2022] 

102. An applicant must always click 

on the CERTIFY & SUBMIT button on 

the ‘‘Certify & Submit’’ screen to 

successfully submit its FCC Form 175 

and any modifications; otherwise the 

application or changes to the 

application will not be received or 

reviewed by Commission staff. 

Additional information about accessing, 

completing, and viewing the FCC Form 

175 is provided in the FCC Form 175 

Instructions. Applicants requiring 

technical assistance should contact FCC 

Auctions Technical Support at (877) 

480–3201, option nine; (202) 414–1250; 

or (202) 414–1255 (text telephony 

(TTY)). Hours of service are Monday 

through Friday, from 8:00 a.m. to 6:00 

p.m. ET. In order to provide better 

service to the public, all calls to 

Technical Support are recorded. 

D. Application Processing and Minor 

Modifications 

1. Public Notice of Applicants’ Initial 

Application Status and Opportunity for 

Minor Modifications 

103. Commission staff will review all 

timely submitted applications for 

Auction 112 to determine whether each 

applicant has complied with the 

application requirements and whether it 

has provided all required information 

concerning its qualifications for 

bidding. After this review is completed, 

OEA and MB will issue a public notice 

announcing applicants’ initial 

application status by identifying: (1) 

Those that are complete; (2) those that 

are rejected; and (3) those that are 

incomplete or deficient because of 

defects that may be corrected. This 

public notice also will establish an 

application resubmission filing window, 

during which an applicant may make 

permissible minor modifications to its 

application to address identified 

deficiencies. The public notice will 

include the deadline for resubmitting 

corrected applications and a copy of the 

public notice will be sent by overnight 

delivery to the contact address listed in 

the FCC Form 175 for each applicant. 

OEA and MB ask each applicant to 

make sure that the contact address 

provided in its short-form application is 

accurate and is a location capable of 

accepting packages that require a 

signature. In addition, each applicant 

with an incomplete application will be 

sent information on the nature of the 

deficiencies in its application, along 

with the name and contact information 

of a Commission staff member who can 

answer questions specific to the 

application. To become a qualified 

bidder, an applicant must have a 

complete application (i.e., have timely 

corrected any identified deficiencies) 

and make a timely and sufficient 

upfront payment. Qualified bidders will 

be identified by public notice at least 10 

days prior to the mock auction. 

104. After the initial application filing 

deadline on March 30, 2022, applicants 

can make only minor modifications to 

their applications. Major modifications 

will not be permitted. After the deadline 

for resubmitting corrected applications, 

an applicant will have no further 

opportunity to cure any deficiencies in 

its application or provide any additional 

information that may affect Commission 

staff’s ultimate determination of 

whether and to what extent the 

applicant is qualified to participate in 

Auction 112. 

105. Commission staff will 

communicate only with an applicant’s 

contact person or certifying official, as 

designated on the applicant’s FCC Form 

175, unless the applicant’s certifying 

official or contact person notifies 

Commission staff in writing that another 

representative is authorized to speak on 

the applicant’s behalf. Authorizations 

may be sent by email to auction112@

fcc.gov. 

2. Public Notice of Applicants’ Final 

Application Status After Upfront 

Payment Deadline 

106. After Commission staff review 

resubmitted applications for Auction 

112 and evaluate upfront payments, 

OEA and MB will release a public 

notice identifying applicants that have 

become qualified bidders. A Qualified 

Bidders Public Notice will be issued 

before bidding in the auction begins. 

Qualified bidders are those applicants 

with submitted FCC Forms 175 that are 

deemed timely filed and complete and 

that have made a sufficient upfront 

payment. 

E. Upfront Payments 

107. In order to be eligible to bid in 

Auction 112, a sufficient upfront 

payment and a complete and accurate 

FCC Remittance Advice Form (FCC 

Form 159) must be submitted before 

6:00 p.m. ET on May 6, 2022. After 

completing its short-form application, 

an applicant will have access to an 

electronic pre-filled version of the FCC 

Form 159. An accurate and complete 

FCC Form 159 (February 2003 edition) 

must accompany each payment. Proper 

completion of this form is critical to 

ensuring correct crediting of upfront 

payments. Payers using the pre-filled 

FCC Form 159 are responsible for 

ensuring that all the information on the 

form, including payment amounts, is 

accurate. Instructions for completing 

FCC Form 159 for Auction 112 are 

provided in Attachment B to the 

Auction 112 Procedures Public Notice. 

1. Making Upfront Payments by Wire 

Transfer for Auction 112 

108. Upfront payments for Auction 

112 must be wired to, and will be 

deposited in, the U.S. Treasury. 

109. Wire transfer payments for 

Auction 112 must be received before 

6:00 p.m. ET on May 6, 2022. No other 

payment method is acceptable. To avoid 

untimely payments, applicants should 

discuss arrangements (including bank 

closing schedules and other specific 

bank wire transfer requirements, such as 

an in-person written request before a 

specified time of day) with their bankers 

several days before they plan to make 

the wire transfer, and must allow 

sufficient time for the transfer to be 

initiated and completed before the 

deadline. The following information 

will be needed: 

ABA Routing Number: 021030004. 

Receiving Bank: TREAS NYC, 33 

Liberty Street, New York, NY 10045. 

Beneficiary: FCC, 45 L Street NE, 3rd 

Floor, Washington, DC 20554. 

Beneficiary Account Number: 

827000001002. 

Originating Bank Information (OBI 

Field): (Skip one space between each 

information item). 

‘‘Auctionpay’’. 

Applicant FCC Registration Number 

(FRN): (use the same FRN as used on the 

applicant’s FCC Form 159, block 21). 

Payment Type Code: (same as FCC 

Form 159, block 24A: ‘‘U112’’). 

Note: The beneficiary account number 

(BNF Account Number) is specific to the 

upfront payments for Auction 112. Do not 

use a BNF Account Number from a previous 

auction. 

110. At least one hour before placing 

the order for the wire transfer (but on 

the same business day), applicants must 

print and fax a completed FCC Form 

159 to the FCC at (202) 418–2843. 

Alternatively, the completed form can 


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be scanned and sent as an attachment to 

an email to RROGWireFaxes@fcc.gov. 

On the fax cover sheet or in the email 

subject header, write ‘‘Wire Transfer— 

Auction Payment for Auction 112.’’ To 

meet the upfront payment deadline, an 

applicant’s payment must be credited to 

the Commission’s account for Auction 

112 before the deadline. 

111. Each applicant is responsible for 

ensuring timely submission of its 

upfront payment and for timely filing of 

an accurate and complete FCC Form 

159. An applicant should coordinate 

with its financial institution well ahead 

of the due date regarding its wire 

transfer and allow sufficient time for the 

transfer to be initiated and completed 

prior to the deadline. The Commission 

repeatedly has cautioned auction 

participants about the importance of 

planning ahead to prepare for 

unforeseen last-minute difficulties in 

making payments by wire transfer. Each 

applicant also is responsible for 

obtaining confirmation from its 

financial institution that its wire 

transfer to the U.S. Treasury was 

successful and from Commission staff 

that its upfront payment was timely 

received and that it was deposited into 

the proper account. As a regulatory 

requirement, the U.S. Treasury screens 

all payments from all financial 

institutions before deposits are made 

available to specified accounts. If wires 

are suspended, the U.S. Treasury may 

direct questions regarding any transfer 

to the financial institution initiating the 

wire. Each applicant must take care to 

assure that any questions directed to its 

financial institution(s) are addressed 

promptly. To receive confirmation from 

Commission staff, contact Scott 

Radcliffe of the Office of Managing 

Director’s Revenue & Receivables 

Operations Group/Auctions at (202) 

418–7518 or Theresa Meeks at (202) 

418–2945. 

112. Please note the following 

information regarding upfront 

payments: 

• All payments must be made in U.S. 

dollars. 

• All payments must be made by wire 

transfer. 

• Upfront payments for Auction 112 

go to an account number different from 

the accounts used in previous FCC 

auctions. 

113. Failure to deliver a sufficient 

upfront payment as instructed herein by 

the upfront payment deadline will 

result in dismissal of the short-form 

application and disqualification from 

participation in the auction. 

2. Completing and Submitting FCC 

Form 159 

114. An accurate and complete FCC 

Form 159 must be sent to the FCC to 

accompany each upfront payment. At 

least one hour before placing the order 

for the wire transfer (but on the same 

business day), applicants must fax a 

completed Form 159 to the FCC at (202) 

418–2843. Alternatively, the completed 

form can be scanned and sent as an 

attachment to an email to 

RROGWireFaxes@fcc.gov. On the fax 

cover sheet or in the email subject 

header, write ‘‘Wire Transfer—Auction 

Payment for Auction 112.’’ 

3. Upfront Payments and Bidding 

Eligibility 

115. The Commission has delegated 

authority to OEA and MB to determine 

appropriate upfront payments for each 

construction permit being auctioned, 

taking into account such factors as the 

efficiency of the auction process and the 

potential value of similar licenses. An 

upfront payment is a refundable deposit 

made by each applicant seeking to 

participate in bidding to establish its 

eligibility to bid on construction 

permits. Upfront payments that are 

related to the specific construction 

permits being auctioned protect against 

frivolous or insincere bidding and 

provide the Commission with a source 

of funds from which to collect payments 

owed at the close of bidding. In the 

Auction 112 Comment Public Notice, 

OEA and MB proposed an upfront 

payment amount for each construction 

permit and sought comment on the 

upfront payment amounts. Although 

OEA and MB received no comments 

regarding the upfront payment amounts 

for Auction 112, they adopt upfront 

payment amounts that are 25% lower 

than those proposed in Attachment A of 

the Auction 112 Comment Public Notice 

so as to align the upfront payment 

amounts with the reduced minimum 

opening bids that are adopted below. 

116. An applicant must make an 

upfront payment sufficient to obtain 

bidding eligibility on the construction 

permits on which it will bid. OEA and 

MB proposed in the Auction 112 

Comment Public Notice that the amount 

of the upfront payment submitted by an 

applicant will determine its initial 

bidding eligibility, the maximum 

number of bidding units on which a 

bidder may place bids in any single 

round. Under that proposal, in order to 

bid on a particular construction permit, 

a qualified bidder must have a current 

eligibility level that meets or exceeds 

the number of bidding units assigned to 

that construction permit. At a 

minimum, therefore, an applicant’s total 

upfront payment must be enough to 

establish eligibility to bid on at least one 

of the construction permits selected on 

its FCC Form 175 for Auction 112, or 

else the applicant will not become 

qualified to participate in the auction. 

An applicant does not have to make an 

upfront payment to cover all 

construction permits the applicant 

selected on its FCC Form 175, rather 

only enough to cover the maximum 

number of bidding units that are 

associated with construction permits on 

which the applicant wishes to place 

bids and hold provisionally winning 

bids in any given round. The total 

upfront payment does not affect the 

total dollar amount the bidder may bid 

on any given construction permit. 

117. OEA and MB received no 

comments on the proposals that the 

upfront payment amount would 

determine a bidder’s initial eligibility 

and to assign each construction permit 

a specific number of bidding units, 

equal to one bidding unit per one 

thousand dollars of the upfront 

payment. Therefore, OEA and MB adopt 

these proposals. Each applicant’s 

upfront payment amount will determine 

that bidder’s initial bidding eligibility. 

118. In calculating its upfront 

payment amount, an applicant must 

determine the maximum number of 

bidding units on which it may wish to 

bid in any single round and submit an 

upfront payment amount for the auction 

covering that number of bidding units. 

In order to make this calculation, an 

applicant should add together the 

bidding units for all construction 

permits on which it seeks to be active 

in any given round. A qualified bidder’s 

maximum eligibility will not exceed the 

sum of the bidding units associated with 

the total number of construction permits 

selected on its FCC Form 175. In some 

cases, a qualified bidder’s maximum 

eligibility may be less than the amount 

of its upfront payment because the 

qualified bidder has either previously 

been in default on a Commission 

construction permit or license or 

delinquent on non-tax debt owed to a 

Federal agency, or has submitted an 

upfront payment that exceeds the total 

amount of bidding units associated with 

the construction permits it selected on 

its FCC Form 175. Applicants should 

check their calculations carefully, as 

there is no provision for increasing a 

bidder’s eligibility after the upfront 

payment deadline. 

119. An applicant that is a former 

defaulter, as described above, must pay 

an upfront payment 50% greater than 

that required of an applicant that is not 

a former defaulter. For purposes of this 


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rule, defaults and delinquencies of the 

applicant itself and its controlling 

interests are included. If an applicant is 

a former defaulter, it must calculate its 

upfront payment for all of its selected 

construction permits by multiplying the 

number of bidding units on which it 

wishes to be active (bid on or hold 

provisionally winning bids on) during a 

given round by 1.5. In order to calculate 

the number of bidding units to assign to 

former defaulters, the Commission will 

divide the upfront payment received by 

1.5 and round the result up to the 

nearest bidding unit. 

F. Auction Registration 

120. All qualified bidders for Auction 

112 are automatically registered for the 

auction. Registration materials will be 

distributed prior to the auction by 

overnight delivery. The mailing will be 

sent only to the contact person at the 

contact address listed in the FCC Form 

175 and will include the SecurID®

tokens that will be required to place 

bids, the web address and instructions 

for accessing and logging in to the 

auction bidding system, FCC assigned 

username (User ID) for each authorized 

bidder, and the Auction Bidder Line 

phone number. 

121. Qualified bidders that do not 

receive this registration mailing will not 

be able to submit bids. Therefore, if this 

mailing is not received by the contact 

person for a qualified bidder by noon on 

May 31, 2022, call the Auctions Hotline 

at (717) 338–2868. Receipt of this 

registration mailing is critical to 

participating in the auction, and each 

qualified bidder is responsible for 

ensuring it has received all registration 

materials. 

122. In the event that a SecurID®

token is lost or damaged, only a person 

who has been designated as an 

authorized bidder, the contact person, 

or the certifying official on the 

applicant’s short-form application may 

request a replacement. To request a 

replacement, call the Auction Bidder 

Line at the telephone number provided 

in the registration materials or the 

Auction Hotline at (717) 338–2868. 

G. Remote Electronic Bidding via the 

FCC Auction Bidding System 

123. Bidders will be able to 

participate in Auction 112 over the 

internet using the FCC Auction Bidding 

System (bidding system) or by 

telephonic bidding. Each applicant 

should indicate its bidding preference— 

electronic or telephonic—on its FCC 

Form 175. Please note that telephonic 

bid assistants are required to use a script 

when entering bids placed by telephone. 

Telephonic bidders are therefore 

reminded to allow sufficient time to bid 

by placing their calls well in advance of 

the close of a round. The length of a call 

to place a telephonic bid may vary; 

please allow a minimum of 10 minutes. 

The toll-free telephone number for the 

auction bidder line will be provided to 

qualified bidders prior to the start of 

bidding in the auction. 

124. Only authorized bidders bidding 

on behalf of a qualified bidder will be 

permitted to bid. Each qualified bidder 

will be issued three SecurID® tokens, 

which the Commission will provide at 

no charge. Each authorized bidder for a 

qualified bidder must have an 

individually assigned SecurID® token in 

order to access the bidding system, 

either by telephone or over the internet. 

In order to access the bidding function 

of the bidding system, bidders must be 

logged in during the bidding round 

using the passcode generated by the 

SecurID® token and a personal 

identification number (PIN) created by 

the bidder. Bidders are strongly 

encouraged to print a bid summary for 

each round after they have completed 

all of their activity for that round. For 

security purposes, the SecurID® tokens, 

bidding system web address, FCCassigned username, and the telephonic 

bidding telephone number are only 

mailed to the contact person at the 

contact address listed on the FCC Form 

175. Each SecurID® token is tailored to 

a specific auction. SecurID® tokens 

issued for other auctions or obtained 

from a source other than the FCC will 

not work for Auction 112. Please note 

that the SecurID® tokens can be 

recycled, and the Commission requests 

that bidders return the tokens to the 

FCC. Pre-addressed envelopes will be 

provided to return the tokens once the 

auction has ended. 

125. The Commission makes no 

warranties whatsoever, and shall not be 

deemed to have made any warranties, 

with respect to the FCC Auction 

Application System and the auction 

bidding system, including any implied 

warranties of merchantability or fitness 

for a particular purpose. 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 

use, loss of revenue, loss of business 

information, or any other direct, 

indirect, or consequential damages) 

arising out of or relating to the 

existence, furnishing, functioning, or 

use of the FCC Auction Application 

System or the FCC auction bidding 

system. Moreover, no obligation or 

liability will arise out of the 

Commission’s technical, programming, 

or other advice or service provided in 

connection with the FCC auction 

systems. 

126. To the extent an issue arises with 

the bidding system itself, the 

Commission will take all appropriate 

measures to resolve such issues quickly 

and equitably. Should an issue arise that 

is outside the bidding system or 

attributable to a bidder, including, but 

not limited to, a bidder’s hardware, 

software, or internet access problem that 

prevents the bidder from submitting a 

bid prior to the end of a round, the 

Commission shall have no obligation to 

resolve or remedy such an issue on 

behalf of the bidder. Similarly, if an 

issue arises due to bidder error using the 

bidding system, the Commission shall 

have no obligation to resolve or remedy 

such an issue on behalf of the bidder. 

Accordingly, after the close of a bidding 

round, the results of bid processing will 

not be altered absent evidence of any 

failure in the bidding system. 

H. Mock Auction 

127. All qualified bidders will be 

eligible to participate in a mock auction 

on June 3, 2022. The mock auction will 

enable qualified bidders to become 

familiar with the FCC auction bidding 

system and to practice submitting bids 

prior to the auction. OEA and MB 

recommend that all qualified bidders, 

including all their authorized bidders, 

participate to ensure that they can log in 

to the bidding system and gain 

experience with the bidding procedures. 

Participating in the mock auction may 

reduce the likelihood of a bidder 

making a mistake during the auction. 

Details regarding the mock auction will 

be announced in the Qualified Bidders 

Public Notice for Auction 112 

I. Auction Delay, Suspension, or 

Cancellation 

128. In the Auction 112 Comment 

Public Notice, OEA and MB proposed 

that, at any time before or during the 

bidding process, OEA, in conjunction 

with MB, may delay, suspend, or cancel 

bidding in the auction in the event of 

natural disaster, technical obstacle, 

network interruption, administrative or 

weather necessity, evidence of an 

auction security breach or unlawful 

bidding activity, or for any other reason 

that affects the fair and efficient conduct 

of competitive bidding. OEA and MB 

received no comments on this proposal. 

129. Because this approach has 

proven effective in resolving exigent 

circumstances in previous auctions, 

OEA and MB adopt these proposals 

regarding auction delay, suspension, or 

cancellation. By public notice or by 

announcement through the FCC auction 


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bidding system, OEA and MB may 

delay, suspend, or cancel bidding in the 

auction in the event of natural disaster, 

technical obstacle, network 

interruption, administrative or weather 

necessity, evidence of an auction 

security breach or unlawful bidding 

activity, or for any other reason that 

affects the fair and efficient conduct of 

competitive bidding. In such cases, 

OEA, in its sole discretion, may elect to 

resume the auction starting from the 

beginning of the current round or from 

some previous round, or cancel the 

auction in its entirety. OEA and MB 

emphasize that they will exercise this 

authority solely at their discretion, and 

not as a substitute for situations in 

which bidders may wish to apply their 

activity rule waivers. 

J. Environmental Review Requirements 

130. Permittees or licensees must 

comply with the Commission’s rules for 

environmental review under the 

National Environmental Policy Act, the 

National Historic Preservation Act, and 

other federal environmental statutes. 

The construction of a broadcast facility 

is a federal action, and the permittee or 

licensee must comply with the 

Commission’s environmental rules for 

each such facility. These environmental 

rules require, among other things, that 

the permittee or licensee consult with 

expert agencies having environmental 

responsibilities, including the U.S. Fish 

and Wildlife Service, the State Historic 

Preservation Office, the U.S. Army 

Corps of Engineers, and the Federal 

Emergency Management Agency 

(through the local authority with 

jurisdiction over floodplains). In 

assessing the effect of facility 

construction on historic properties, the 

permittee or licensee must follow the 

provisions of the FCC’s Nationwide 

Programmatic Agreement Regarding the 

Section 106 National Historic 

Preservation Act Review Process. The 

permittee or licensee must prepare 

environmental assessments for any 

facility that may have a significant 

impact in or on wilderness areas, 

wildlife preserves, threatened or 

endangered species, or designated 

critical habitats, historical or 

archaeological sites, Indian religious 

sites, floodplains, and surface features. 

In addition, the permittee or licensee 

must prepare environmental 

assessments for facilities that include 

high intensity white lights in residential 

neighborhoods or excessive radio 

frequency emission. 

IV. Bidding 

131. The first round of bidding for 

Auction 112 will begin on June 7, 2022. 

The initial bidding schedule will be 

announced in a public notice listing the 

qualified bidders, which will be 

released at least one week before the 

start of bidding in the auction. 

A. Auction Structure 

1. Simultaneous Multiple Round 

Auction 

132. In the Auction 112 Comment 

Public Notice, OEA and MB proposed to 

auction all construction permits listed 

in Attachment A to the Auction 112 

Procedures Public Notice in a single 

auction using a simultaneous multipleround auction format. This type of 

auction offers every construction permit 

for bid at the same time and consists of 

successive bidding rounds in which 

qualified bidders may place bids on 

individual construction permits. OEA 

and MB received no comments on this 

proposal, and this proposal is adopted. 

Unless otherwise announced, bids will 

be accepted on all construction permits 

in each round of the auction until 

bidding stops on every construction 

permit. 

2. Round Structure 

133. Limited information about the 

results of a round will be made public 

after the conclusion of the round. 

Specifically, after a round closes, OEA 

and MB will make available for each 

construction permit its current 

provisionally winning bid amount, the 

minimum acceptable bid amount for the 

following round, the amounts of all bids 

placed on the construction permit 

during the round, and whether the 

license is FCC-held. The reports will be 

publicly accessible. Moreover, after 

Auction 112 closes, OEA and MB will 

make available complete reports of all 

bids placed during each round of the 

auction, including bidder identities. 

134. As in past Commission spectrum 

auctions, bidders will have secure 

access to certain non-public bidding 

information while bidding is ongoing. 

Specifically, after each round ends, and 

before the next round begins, OEA and 

MB will make the following information 

available to individual bidders: 

• The bidder’s activity, based on all 

bids in the previous round; and 

• Summary statistics of the bidder’s 

bidding/bid-related actions in each 

round, including the construction 

permits on which it bid and the price it 

bid for each of those construction 

permits, the result of each of its bids, 

whether it has any provisionally 

winning bids, and remaining activity 

rule waivers. 

135. Limiting the availability of 

bidding information during the auction 

balances the Commission’s interest in 

providing bidders with sufficient 

information about the status of their 

own bids and bidding across all 

construction permits to allow them to 

bid confidently and effectively, while 

restricting the availability of 

information that may facilitate 

identification of bidders placing 

particular bids, which could potentially 

lead to undesirable strategic bidding. 

3. Round Structure 

136. The initial schedule of bidding 

rounds will be announced in the public 

notice listing the qualified bidders in 

the auction. Each bidding round is 

followed by the release of round results. 

Multiple bidding rounds may be 

conducted each day. 

137. In the Auction 112 Comment 

Public Notice, OEA and MB proposed to 

retain the discretion to adjust 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. OEA and MB received no 

comments on the proposal, and they 

adopt it for Auction 112. OEA and MB 

may change the amount of time for 

bidding rounds, the amount of time 

between rounds, or the number of 

rounds per day, depending upon 

bidding activity and other factors. 

4. Eligibility and Activity Rules 

138. As discussed above, the amount 

of the upfront payment submitted by a 

bidder will determine its initial bidding 

eligibility in terms of bidding units. A 

bidder’s bidding eligibility is the 

maximum number of bidding units on 

which a bidder may be active (bid or 

hold provisionally winning bids) in a 

given round. As noted earlier, each 

construction permit is assigned a 

specific number of bidding units, as 

listed in Attachment A to the Auction 

112 Procedures Public Notice. The 

bidding unit amounts listed in 

Attachment A of the Auction 112 

Procedures Public Notice are 25% lower 

than the bidding unit amounts proposed 

in Attachment A of the Auction 112 

Comment Public Notice. OEA and MB 

adopt these adjusted bidding unit 

amounts to correspond with the reduced 

upfront payments adopted above. 

Bidding units assigned to each 

construction permit do not change as 

prices rise during the auction. Upfront 

payments are not attributed to specific 

construction permits. Rather, a bidder 

may place bids on any of the 

construction permits selected on its FCC 

Form 175 as long as the total number of 

bidding units associated with those 


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construction permits does not exceed 

the bidder’s current eligibility. 

139. Eligibility cannot be increased 

during the auction; it can only remain 

the same or decrease. Thus, in 

calculating its upfront payment amount, 

an applicant must determine the 

maximum number of bidding units on 

which it may wish to bid or hold 

provisionally winning bids in any single 

round, and submit an upfront payment 

amount covering that total number of 

bidding units. At a minimum, an 

applicant’s upfront payment must cover 

the bidding units for at least one of the 

construction permits it selected on its 

short-form application. The total 

upfront payment does not affect the 

total dollar amount a bidder may bid on 

any given construction permit. OEA and 

MB received no comments on the 

bidding eligibility proposals, and these 

proposals are adopted. 

140. To ensure that an auction closes 

within a reasonable period of time, an 

activity rule requires bidders to bid 

actively throughout the auction, rather 

than wait until late in the auction before 

participating. Bidders are required to be 

active (bid or hold provisionally 

winning bids) on a specific percentage 

of their current bidding eligibility 

during each round of the auction. A 

bidder’s activity level in a round is the 

sum of the bidding units associated with 

construction permits covered by the 

bidder’s new bids in the current round 

and provisionally winning bids from the 

previous round. Bidding units 

associated with construction permits for 

which the bidder has removed bids do 

not count towards current activity. 

Provisionally winning bids are bids that 

would become final winning bids if the 

auction were to close after the given 

round. 

141. OEA and MB received no 

comments on the eligibility and activity 

rules proposal. Therefore, in order to 

ensure that the auction closes within a 

reasonable period of time, OEA and MB 

adopt the following activity requirement 

as proposed: A bidder is required to be 

active on 100% of its current eligibility 

during each round of the auction. That 

is, a bidder must either place a bid or 

be a provisionally winning bidder 

during each round of the auction. 

Failure to maintain the requisite activity 

level will result in the use of an activity 

rule waiver, if any remain, or a 

reduction in the bidder’s eligibility, 

possibly curtailing or eliminating the 

bidder’s ability to place bids in 

subsequent rounds of the auction. 

5. Activity Rule Waivers 

142. In the Auction 112 Comment 

Public Notice, OEA and MB proposed 

that each bidder in the auction be 

provided with three activity rule 

waivers, which are principally a 

mechanism for a bidder to avoid the loss 

of bidding eligibility in the event that 

exigent circumstances prevent it from 

bidding in a particular round. OEA and 

MB received no comments on this issue. 

143. Therefore, OEA and MB adopt 

this proposal to provide bidders with 

three activity rule waivers. Use of an 

activity rule waiver preserves the 

bidder’s eligibility despite its activity in 

the current round being below the 

required minimum activity level. An 

activity rule waiver applies to an entire 

round of bidding and not to a particular 

construction permit. A bidder may use 

an activity rule waiver in any round of 

the auction as long as the bidder has not 

used all of its waivers. 

144. The FCC auction bidding system 

will assume that a bidder that does not 

meet the activity requirement would 

prefer to use an activity rule waiver (if 

available) rather than lose bidding 

eligibility. Therefore, the system will 

automatically apply a waiver at the end 

of any bidding round in which a 

bidder’s activity level is below the 

minimum required unless (1) the bidder 

has no activity rule waiver remaining, or 

(2) the bidder overrides the automatic 

application of a waiver by reducing 

eligibility, therefore meeting the activity 

requirement. If the bidder has no 

waivers remaining and does not satisfy 

the required activity level, the bidder’s 

current eligibility will be permanently 

reduced, possibly curtailing or 

eliminating the ability to place 

additional bids in the auction. 

145. A bidder with insufficient 

activity may wish to reduce its bidding 

eligibility rather than use an activity 

rule waiver. If so, the bidder must 

affirmatively override the automatic 

waiver mechanism during the bidding 

round by using the reduce eligibility 

function in the FCC auction bidding 

system. In this case, the bidder’s 

eligibility will be permanently reduced 

to bring it into compliance with the 

activity rule described above. Reducing 

eligibility is an irreversible action once 

the round has closed, and a bidder 

cannot regain its lost bidding eligibility. 

146. Finally, a bidder may apply an 

activity rule waiver proactively as a 

means to keep the auction open without 

placing a bid. If a bidder proactively 

applies an activity rule waiver (using 

the proactive waiver function in the FCC 

auction bidding system) during a 

bidding round in which no bids are 

placed, the auction will remain open 

and the bidder’s eligibility will be 

preserved. An automatic waiver applied 

by the FCC auction bidding system in a 

round in which there is no new bid or 

a proactive waiver will not keep the 

auction open. 

6. Stopping Rule 

147. For Auction 112, OEA and MB 

proposed to employ a simultaneous 

stopping rule approach, which means 

all construction permits remain 

available for bidding until bidding stops 

on every construction permit. 

Specifically, bidding will close on all 

construction permits after the first 

round in which no bidder submits a 

new bid or applies a proactive activity 

rule waiver. 

148. OEA and MB also sought 

comment on alternative versions of the 

simultaneous stopping rule for Auction 

112: 

Option 1. The auction would close for 

all construction permits after the first 

round in which no bidder applies a 

proactive waiver or places a new bid on 

any construction permit on which it is 

not the provisionally winning bidder. 

Thus, absent any other bidding activity, 

a bidder placing a new bid on a 

construction permit for which it is the 

provisionally winning bidder would not 

keep the auction open under this 

modified stopping rule. 

Option 2. The auction would close for 

all construction permits after the first 

round in which no bidder applies a 

waiver or places any new bid on any 

construction permit that already has a 

provisionally winning bid. Thus, absent 

any other bidding activity, a bidder 

placing a new bid on an FCC-held 

construction permit (a construction 

permit that does not have a 

provisionally winning bid) would not 

keep the auction open under this 

modified stopping rule. 

Option 3. The auction would close 

using a modified version of the 

simultaneous stopping rule that 

combines Option 1 and Option 2 above. 

Option 4. The auction would close 

after a specified number of additional 

rounds (special stopping rule) to be 

announced in advance in the FCC 

auction bidding system. If OEA and MB 

invoke this special stopping rule, they 

will accept bids in the specified final 

round(s), after which the auction will 

close. 

Option 5. The auction would remain 

open even if no bidder places a new bid 

or applies a waiver. In this event, the 

effect will be the same as if a bidder had 

applied a waiver. Thus, the activity rule 

will apply as usual, and a bidder with 

insufficient activity will either lose 

bidding eligibility or use a waiver. 

149. OEA and MB proposed to 

exercise these options only in certain 

circumstances, for example, where the 


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auction is proceeding unusually slowly 

or quickly, there is minimal overall 

bidding activity, or it appears likely that 

the auction will not close within a 

reasonable period of time or will close 

prematurely. Before exercising these 

options, OEA and MB are likely to 

attempt to change the pace of the 

auction. For example, OEA and MB may 

adjust the pace of bidding by changing 

the number of bidding rounds per day 

and/or the minimum acceptable bids. 

OEA and MB proposed to retain the 

discretion to exercise any of these 

options with or without prior 

announcement during the auction. OEA 

and MB received no comments on these 

proposals and adopt them for Auction 

112. 

B. Bidding Procedures 

1. Minimum Opening Bids and 

Acceptable Bid Amounts 

150. The provision at 47 U.S.C. 309(j) 

calls upon the Commission to prescribe 

methods by which a reasonable reserve 

price will be required or a minimum 

opening bid established when 

applications for FCC licenses or 

construction permits are subject to 

auction (i.e., because they are mutually 

exclusive), unless the Commission 

determines that a reserve price or 

minimum opening bid is not in the 

public interest. Consistent with this 

mandate, the Commission directed the 

Bureaus to seek comment on the use of 

a minimum opening bid and/or reserve 

price prior to the start of each auction. 

151. In the Auction 112 Comment 

Public Notice, OEA and MB proposed 

not to establish reserve prices for 

specific construction permits listed in 

Attachment A that are different from 

minimum opening bid amounts. This is 

consistent with previous broadcast 

spectrum auctions. OEA and MB 

received no comments on this proposal 

and adopt it. 

152. In the Auction 112 Comment 

Public Notice, OEA and MB sought 

comment on specifically proposed 

minimum opening amounts for each 

construction permit listed in 

Attachment A to the Auction 112 

Procedures Public Notice, reasoning that 

a minimum opening bid, which has 

been used in other broadcast auctions, 

is an effective tool for accelerating the 

competitive bidding process. 

Specifically, a minimum opening bid 

was proposed for each construction 

permit by taking into account various 

factors relating to the efficiency of the 

auction and the potential value of the 

spectrum, including the type of service 

and class of facility offered, market size, 

population covered by the proposed 

broadcast facility, and recent broadcast 

transaction data, to the extent such 

information is available. 

153. Two commenters request that 

OEA and MB reduce or eliminate the 

minimum opening bids that were 

proposed in the Auction 112 Comment 

Public Notice, in order to reduce costs 

for prospective stations in remote areas. 

Brian Lane recommends that OEA and 

MB cut all proposed opening bids in 

half, arguing that there are considerable 

equipment and engineering costs that 

could be prohibitive to smaller and 

diverse bidders. Edge Networks, Inc 

d/b/a Evoca (Evoca) supports Mr. Lane’s 

proposal but suggests that it may not go 

far enough in order to bring new, 

improved, and innovative TV and 

internet services to small, remote, and 

rural communities. Evoca claims that 

the markets involved in Auction 112 are 

so small that layering on any costs in 

addition to construction and operation 

of a TV may all but assure that these 

communities do not get any new service 

at all, and therefore suggests that OEA 

and MB consider eliminating the 

minimums altogether for at least the 

smaller communities. 

154. OEA and MB are not persuaded 

by arguments that reducing the 

minimum opening bids by 50% will 

significantly affect the viability of 

prospective stations in remote areas. 

However, in furtherance of their goals of 

promoting competition and encouraging 

greater participation by an array of 

entities, OEA and MB adopt a more 

modest reduction in minimum opening 

bids of 25%, which they believe 

balances these goals with the goal of 

conducting the auction in an efficient 

manner that avoids burdening bidders. 

Those minimum opening bids are laid 

out in Attachment A to the Auction 112 

Procedures Public Notice. 

155. In the Auction 112 Comment 

Public Notice, OEA and MB proposed 

that, in each round, a qualified bidder 

will be able to place a bid on a given 

construction permit in any of up to nine 

different amounts. Under the proposal, 

the FCC auction bidding system 

interface will list the nine acceptable 

bid amounts for each construction 

permit. OEA and MB received no 

comments on this proposal, and adopt 

it as proposed. 

156. In the Auction 112 Comment 

Public Notice, to calculate the first of 

the acceptable bid amounts, OEA and 

MB proposed to use a minimum 

acceptable bid increment percentage of 

10%. This means that the minimum 

acceptable bid amount for a 

construction permit will be 

approximately 10% greater than the 

provisionally winning bid amount for 

the construction permit. To calculate 

the eight additional acceptable bid 

amounts, OEA and MB proposed in the 

Auction 112 Comment Public Notice to 

use an additional bid increment 

percentage of 5% of the minimum 

acceptable bid. OEA and MB did not 

receive any comments on these 

proposals to use 10% and 5% 

respectively in our calculation of nine 

acceptable bid amounts for each 

construction permit. Experience in 

previous broadcast auctions suggests 

that a minimum acceptable bid 

increment percentage of 10% and an 

additional bid increment percentage of 

5% are sufficient to ensure active 

bidding. Therefore, OEA and MB will 

begin the auction with a minimum 

acceptable bid increment percentage of 

10% and an additional bid increment 

percentage of 5%. 

157. In Auction 112, the minimum 

acceptable bid amount for a 

construction permit will be equal to its 

minimum opening bid amount until 

there is a provisionally winning bid for 

the construction permit. After there is a 

provisionally winning bid for a 

construction permit, the minimum 

acceptable bid amount will be 

calculated by multiplying the 

provisionally winning bid amount by 

one plus the minimum acceptable bid 

percentage—i.e., provisionally winning 

bid amount * 1.10, rounded. The result 

of this calculation is subject to a 

minimum of $100. Under the 

Commission’s standard rounding 

procedure for auctions, results above 

$10,000 are rounded to the nearest 

$1,000; results below $10,000 but above 

$1,000 are rounded to the nearest $100; 

and results below $1000 are rounded to 

the nearest $10. 

158. The FCC auction bidding system 

will calculate the eight additional bid 

amounts by multiplying the minimum 

acceptable bid amount by the additional 

bid increment percentage of 5%, and 

that result (rounded) is the additional 

increment amount. The first additional 

acceptable bid amount equals the 

minimum acceptable bid amount plus 

the additional increment amount. The 

second additional acceptable bid 

amount equals the minimum acceptable 

bid amount plus two times the 

additional increment amount; the third 

additional acceptable bid amount is the 

minimum acceptable bid amount plus 

three times the additional increment 

amount; etc. Because the additional bid 

increment percentage is 5%, the 

calculation of the additional increment 

amount is (minimum acceptable bid 

amount) * (0.05), rounded. The first 

additional acceptable bid amount equals 

(minimum acceptable bid amount) + 


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(additional increment amount); the 

second additional acceptable bid 

amount equals (minimum acceptable 

bid amount) + (2*(additional increment 

amount)); the third additional 

acceptable bid amount equals 

(minimum acceptable bid amount) + 

(3*(additional increment amount)); etc. 

159. OEA and MB proposed to retain 

the discretion to change the minimum 

acceptable bid amounts, the minimum 

acceptable bid increment percentage, 

the additional bid increment percentage, 

and the number of acceptable bid 

amounts if they determine that 

circumstances so dictate, consistent 

with past practice. OEA and MB also 

proposed to retain the discretion to do 

so on a construction permit-byconstruction permit basis. OEA and MB 

also proposed to retain the discretion to 

limit (a) the amount by which a 

minimum acceptable bid for a 

construction permit may increase 

compared with the corresponding 

provisionally winning bid, and (b) the 

amount by which an additional bid 

amount may increase compared with 

the immediately preceding acceptable 

bid amount. For example, OEA and MB 

could set a $1,000 limit on increases in 

minimum acceptable bid amounts over 

provisionally winning bids. Thus, if 

calculating a minimum acceptable bid 

using the minimum acceptable bid 

increment percentage results in a 

minimum acceptable bid amount that is 

$1,200 higher than the provisionally 

winning bid on a construction permit, 

the minimum acceptable bid amount 

would instead be capped at $1,000 

above the provisionally winning bid. 

160. OEA and MB received no 

comments on these proposals 

concerning changes of bid amounts, and 

adopt the discretion to utilize them. 

OEA and MB typically exercise this 

discretion based on their monitoring of 

ongoing bidding and reserve such 

discretion here. If OEA and MB exercise 

this discretion, they will alert bidders 

by announcement in the FCC auction 

bidding system during the auction. 

2. Provisionally Winning Bids 

161. Consistent with practice in past 

auctions, the FCC auction bidding 

system at the end of each bidding round 

will determine a provisionally winning 

bid for each construction permit based 

on the highest bid amount received for 

that permit. A provisionally winning 

bid will remain the provisionally 

winning bid until there is a higher bid 

on the same construction permit at the 

close of a subsequent round. 

Provisionally winning bids at the end of 

the auction become the winning bids. 

162. In the Auction 112 Comment 

Public Notice, OEA and MB proposed to 

use a pseudo-random number generator 

to select a single provisionally winning 

bid if identical high bid amounts are 

submitted on a construction permit in a 

given round (i.e., tied bids). No 

comments were received on this 

proposal, and OEA and MB adopt it as 

proposed. 

163. Accordingly, the FCC auction 

bidding system will assign a pseudorandom number to each bid upon 

submission. The tied bid with the 

highest pseudo-random number wins 

the tiebreaker and becomes the 

provisionally winning bid. The 

remaining bidders, as well as the 

provisionally winning bidder, can 

submit higher bids in subsequent 

rounds. However, if the auction were to 

close with no other bids being placed, 

the winning bidder would be the one 

that placed the provisionally winning 

bid. If the construction permit receives 

any bids in a subsequent round, the 

provisionally winning bid again will be 

determined by the highest bid amount 

received for the construction permit. 

164. As a reminder, provisionally 

winning bids count toward activity for 

purposes of the activity rule. 

3. Bid Removal and Bid Withdrawal 

165. In the Auction 112 Comment 

Public Notice, OEA and MB explained 

that each qualified bidder has the option 

of removing any bids placed in a round 

provided that such bids are removed 

before the close of that bidding round. 

By removing a bid within a round, a 

bidder effectively ‘‘unsubmits’’ the bid. 

A bidder removing a bid placed in the 

same round is not subject to withdrawal 

payments. Removing a bid will affect a 

bidder’s activity because a removed bid 

no longer counts toward bidding 

activity for the round. Once a round 

closes, a bidder may no longer remove 

a bid. 

166. In the Auction 112 Comment 

Public Notice, OEA and MB proposed to 

prohibit bidders from withdrawing any 

bid after close of the round in which 

that bid was placed. This proposal was 

made in recognition of the site-specific 

nature and wide geographic dispersion 

of the permits available in this auction, 

as well as OEA and MB’s experience 

with past auctions of broadcast 

construction permits. OEA and MB 

received no comments on this issue. 

Accordingly, OEA and MB will prohibit 

bid withdrawals in Auction 112. 

Bidders are cautioned to select bid 

amounts carefully because no bid 

withdrawals will be allowed, even if a 

bid was mistakenly or erroneously 

made. 

4. Bidding Results 

167. After Auction 112 closes, OEA 

and MB will provide a means for the 

public to view and download reports of 

all bids placed during each round of the 

auction and all bid results, including 

bidder identities. 

5. Auction Announcements 

168. Commission staff will use 

auction announcements to report 

necessary information, such as schedule 

changes, to bidders. All auction 

announcements will be available by 

clicking a link in the FCC auction 

bidding system. 

V. Post-Auction Procedures 

169. The public notice announcing 

the close of the bidding and auction 

results will be released shortly after 

bidding has ended in Auction 112. This 

public notice will also establish the 

deadlines for submitting down 

payments, final payments, and the longform applications. 

A. Down Payments 

170. The Commission’s rules provide 

that, unless otherwise specified by 

public notice, within ten business days 

after the release of the auction closing 

public notice, each winning bidder must 

submit sufficient funds (in addition to 

the upfront payment) to bring its total 

amount of money on deposit with the 

Commission for Auction 112 to 20% of 

the net amount of its winning bid(s) 

(gross bid(s) less any applicable new 

entrant bidding credit). 

B. Final Payments 

171. Each winning bidder will be 

required to submit the balance of the net 

amount for each of its winning bid(s) 

within 10 business days after the 

applicable deadline for submitting 

down payments. 

C. Long-Form Application (FCC Form 

2100—Schedule A) 

172. The Commission’s rules 

currently provide that within thirty days 

following the close of bidding and 

notification to the winning bidders, 

unless a longer period is specified by 

public notice, each winning bidder must 

electronically submit a separate, 

properly completed long-form 

application for each permit won, and 

required exhibits, along with the 

applicable applicant filing fee. Winning 

bidders for TV construction permits will 

electronically file FCC Form 2100, 

Schedule A, in the Media Bureau’s 

Licensing and Management System 

(LMS). Winning bidders claiming new 

entrant status must include an exhibit 

demonstrating their eligibility for the 


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bidding credit. Further instructions on 

these and other filing requirements will 

be provided to winning bidders in the 

auction closing public notice. 

D. Default and Disqualification 

173. Any winning bidder that defaults 

or is disqualified after the close of an 

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

down payment by the specified 

deadline, fails to submit a timely longform application, fails to make a full 

and timely final payment, or is 

otherwise disqualified) is liable for 

default payments as described in 47 

CFR 1.2104(g)(2). A default payment 

consists of a deficiency payment, equal 

to the difference between the amount of 

the Auction 112 bidder’s winning bid 

and the amount of the winning bid the 

next time a construction permit 

covering the same spectrum is won in 

an auction, plus an additional payment 

equal to a percentage of the defaulter’s 

bid or of the subsequent winning bid, 

whichever is less. 

174. The percentage of the applicable 

bid to be assessed as an additional 

payment for defaults in a particular 

auction is established in advance of the 

auction. Accordingly, in the Auction 

112 Comment Public Notice, OEA and 

MB proposed to set the additional 

default payment for this auction at 20% 

of the applicable bid. OEA and MB 

received no comments on this proposal, 

and it is therefore adopted for the 

reasons described in the Auction 112 

Comment Public Notice. 

175. Finally, in the event of a default, 

the Commission has the discretion to reauction the construction permit or offer 

it to the next highest bidder (in 

descending order) at its final bid 

amount. In addition, if a default or 

disqualification involves gross 

misconduct, misrepresentation, or bad 

faith by an applicant, then the 

Commission may declare the applicant 

and its principals ineligible to bid in 

future auctions and may take any other 

action that it deems necessary, 

including institution of proceedings to 

revoke any existing authorizations held 

by the applicant. 

E. Refund of Remaining Upfront 

Payment Balance 

176. All refunds of upfront payment 

balances will be returned to the payer of 

record as identified on the FCC Form 

159 unless the payer submits written 

authorization instructing otherwise. 

Bidders are encouraged to use the 

Refund Information icon found on the 

Auction Application Manager page or 

the Refund Form link available on the 

Auction Application Submit 

Confirmation page in the FCC Auction 

Application System to access the form. 

After the required information is 

completed on the blank form, the form 

must be printed, signed, and submitted 

to the Commission by mail, fax, or email 

as instructed below. 

177. If you have elected not to access 

the Refund Form through the Auction 

Application Manager page, then OEA 

and MB request that all information 

listed below be supplied in writing. 

1. Name, address, contact and phone 

number of Bank 

2. ABA Number (capable to accept ACH 

payments) (please verify this 

number with your Bank) 

3. Account Number to Credit 

4. Name of Account Holder 

5. FCC Registration Number (FRN) 

178. The refund request must be 

submitted by fax to the Revenue & 

Receivables Operations Group/Auctions 

at (202) 418–2843, or by email to 

RROGWireFaxes@fcc.gov. 

Note: Refund processing generally takes up 

to two weeks to complete. Bidders with 

questions about refunds should contact Scott 

Radcliffe at (202) 418–7518 or Theresa Meeks 

at (202) 418–2945. 

VI. Procedural Matters 

A. Paperwork Reduction Act 

179. The Office of Management and 

Budget (OMB) has approved the 

information collections in the 

Application to Participate in an FCC 

Auction, FCC Form 175. The Auction 

112 Procedures Public Notice does not 

contain new or substantively modified 

information collection requirements 

subject to the Paperwork Reduction Act 

of 1995 (PRA), Public Law 104–13. 

Therefore, it does not contain any new 

or modified information collection 

burden for small business concerns with 

fewer than 25 employees pursuant to 

the Small Business Paperwork Relief 

Act of 2002, Public Law 107–198. The 

Commission will be submitting a nonsubstantive change request to OMB 

concerning OMB 3060–0600 related to 

the certification requirement for 

Auction 112 applicants adopted herein, 

and the Commission will not require 

Auction 112 applicants to make this 

certification on FCC Form 175 until 

OMB has approved the non-substantive 

change request. 

B. Congressional Review Act 

180. The Commission has determined, 

and Administrator of the Office of 

Information and Regulatory Affairs, 

Office of Management and Budget, 

concurs, that these rules are ‘‘nonmajor’’ under the Congressional Review 

Act, 5 U.S.C. 804(2). The Commission 

will send a copy of the Auction 112 

Procedures Public Notice in a report to 

Congress and the Government 

Accountability Office pursuant to the 

Congressional Review Act, 5 U.S.C. 

801(a)(1)(A). 

C. Supplemental Final Regulatory 

Flexibility Analysis 

181. As required by the Regulatory 

Flexibility Act of 1980, as amended 

(RFA), the Commission prepared Initial 

Regulatory Flexibility Analyses (IRFAs) 

in connection with the Broadcast 

Competitive Bidding Notice of Proposed 

Rulemaking (NPRM), 62 FR 65392, 

December 12, 1997, and other 

Commission NPRMs (collectively, 

Competitive Bidding NPRMs) pursuant 

to which Auction 112 will be 

conducted. Final Regulatory Flexibility 

Analyses (FRFAs) likewise were 

prepared in the Broadcast Competitive 

Bidding Order, 63 FR 48615, September 

11, 1998, and other Commission 

rulemaking orders (collectively, 

Competitive Bidding Orders) pursuant 

to which Auction 112 will be 

conducted. In this proceeding, a 

Supplemental Initial Regulatory 

Flexibility Analysis (Supplemental 

IRFA) was incorporated in the Auction 

112 Comment Public Notice. The 

Commission sought written public 

comment on the proposals in the 

Auction 112 Comment Public Notice, 

including comments on the 

Supplemental IRFA. This Supplemental 

Final Regulatory Flexibility Analysis 

(Supplemental FRFA) supplements the 

FRFAs in the Competitive Bidding 

Orders to reflect the actions taken in the 

Auction 112 Procedures Public Notice 

and conforms to the RFA. 

182. Need for, and Objectives of, the 

Public Notice. The procedures for the 

conduct of Auction 112 as described in 

the Auction 112 Procedures Public 

Notice implement the Commission’s 

competitive bidding rules, which have 

been adopted by the Commission in 

multiple notice-and-comment 

rulemaking proceedings. More 

specifically, the Auction 112 Procedures 

Public Notice provides an overview of 

the procedures, terms, and conditions 

governing Auction 112, and the postauction application and payment 

processes, as well as setting the 

minimum opening bid amount for each 

of the TV construction permits that are 

subject to being assigned by competitive 

bidding. 

183. To promote the efficient and fair 

administration of the competitive 

bidding process for all Auction 112 

participants, including small 

businesses, in the Auction 112 

Procedures Public Notice, OEA and MB 

announce the following procedures: 


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• A requirement that any applicant 

seeking to participate in Auction 112 

certify in its short-form application, 

under penalty of perjury, that it has read 

the public notice adopting procedures 

for Auction 112, and that it has 

familiarized itself with those procedures 

and the requirements for obtaining a 

construction permit for a TV station; 

• establishment of an additional 

default payment of 20% under 47 CFR 

1.2104(g)(2) in the event that a winning 

bidder defaults or is disqualified after 

the auction; 

• use of a simultaneous multipleround auction format, consisting of 

sequential bidding rounds with a 

simultaneous stopping rule (with 

discretion to exercise alternative 

stopping rules under certain 

circumstances); 

• use of anonymous bidding/limited 

information procedures which will not 

make public until after bidding has 

closed: (1) The construction permits that 

an applicant selects for bidding in its 

short-form application, (2) the amount 

of any upfront payment made by or on 

behalf of an applicant, (3) any 

applicant’s bidding eligibility, and (4) 

any other bidding-related information 

that might reveal the identity of the 

bidder placing a bid; 

• retention by OEA, in conjunction 

with MB, of its discretion to delay, 

suspend, or cancel bidding in Auction 

112 for any reason that affects the fair 

and efficient conduct of the competitive 

bidding process; 

• retention by OEA of its discretion to 

adjust the bidding schedule in order to 

manage the pace of Auction 112; 

• a specific minimum opening bid 

amount for each construction permit 

available in Auction 112; 

• a specific number of bidding units 

for each construction permit; 

• a specific upfront payment amount 

for each construction permit; 

• establishment of a bidder’s initial 

bidding eligibility in bidding units 

based on that bidder’s upfront payment 

through assignment of a specific number 

of bidding units for each construction 

permit; 

• use of an activity requirement so 

that bidders must bid actively during 

the auction rather than waiting until late 

in the auction before participating; 

• a single stage auction in which a 

bidder is required to be active on 100% 

of its bidding eligibility in each round 

of the auction; 

• provision of three activity waivers 

for each qualified bidder to allow it to 

preserve eligibility during the course of 

the auction; 

• use of minimum acceptable bid 

amounts and additional bid increments, 

along with a proposed methodology for 

calculating such amounts, while 

retaining discretion to change their 

methodology if circumstances dictate; 

• bid removal procedures; and 

• a prohibition on bid withdrawals. 

184. Summary of Significant Issues 

Raised by Public Comments in Response 

to the IRFA. There were no comments 

filed that specifically addressed the 

procedures and policies proposed in the 

Supplemental IRFA. 

185. Response to Comments by the 

Chief Counsel for Advocacy of the Small 

Business Administration. Pursuant to 

the Small Business Jobs Act of 2010, 

which amended the RFA, the 

Commission is required to respond to 

any comment filed by the Chief Counsel 

for Advocacy of the Small Business 

Administration (SBA), and to provide a 

detailed statement of any change made 

to the proposed procedures as a result 

of those comments. The Chief Counsel 

did not file any comments in response 

to the procedures that were proposed in 

the Auction 112 Comment Public 

Notice. 

186. Description and Estimate of the 

Number of Small Entities to Which the 

Procedures Will Apply. The RFA directs 

agencies to provide a description of and, 

where feasible, an estimate of the 

number of small entities that may be 

affected by the rules adopted herein. 

The RFA generally defines the term 

‘‘small entity’’ as having the same 

meaning as the terms ‘‘small business,’’ 

‘‘small organization,’’ and ‘‘small 

governmental jurisdiction.’’ In addition, 

the term ‘‘small business’’ has the same 

meaning as the term ‘‘small business 

concern’’ under the Small Business Act. 

A ‘‘small business concern’’ is one 

which: (1) Is independently owned and 

operated; (2) is not dominant in its field 

of operation; and (3) satisfies any 

additional criteria established by the 

SBA. 

187. The specific competitive bidding 

procedures and minimum opening bid 

amounts described in the Auction 112 

Procedures Public Notice will affect all 

applicants participating in Auction 112. 

OEA and MB expect that the pool of 

applicants who seek to bid in Auction 

112 will include firms of all sizes. 

188. Television Broadcasting. This 

Economic Census category ‘‘comprises 

establishments primarily engaged in 

broadcasting images together with 

sound.’’ These establishments operate 

television broadcast studios and 

facilities for the programming and 

transmission of programs to the public. 

These establishments also produce or 

transmit visual programming to 

affiliated broadcast television stations, 

which in turn broadcast the programs to 

the public on a predetermined schedule. 

Programming may originate in their own 

studio, from an affiliated network, or 

from external sources. The SBA has 

created the following small business 

size standard for such businesses: those 

having $41.5 million or less in annual 

receipts. The 2012 Economic Census 

reports that 751 firms operated that 

entire year. Of that number, 656 had 

annual receipts of $25,000,000 or less, 

and 25 had annual receipts between 

$25,000,000 and $49,999,999. Based on 

this data OEA and MB therefore 

estimate that the majority of commercial 

television broadcasters are small entities 

under the applicable SBA size standard. 

189. Additionally, the Commission 

has estimated the number of licensed 

commercial television stations to be 

1,373. Of this total, 1,269 stations (or 

about 92.4%) had revenues of $41.5 

million or less, according to 

Commission staff review of the BIA 

Kelsey Inc. Media Access Pro Television 

Database (BIA), and therefore these 

stations qualify as small entities under 

the SBA definition. 

190. In addition, the Commission has 

estimated the number of licensed 

noncommercial educational (NCE) 

television stations to be 385. These 

stations are non-profit, and therefore 

considered to be small entities. 

191. OEA and MB note, however, that 

the SBA size standard data does not 

enable them to make a meaningful 

estimate of the number of small entities 

that may participate in Auction 112. 

192. In assessing whether a business 

entity qualifies as small under the SBA 

definition, business control affiliations 

must be included. The estimate 

therefore likely overstates the number of 

small entities that might be affected by 

this auction because the revenue figures 

on which this estimate is based does not 

include or aggregate revenues from 

affiliated companies. Moreover, the 

definition of small business also 

requires that an entity not be dominant 

in its field of operation and that the 

entity be independently owned and 

operated. The estimate of small 

businesses to which Auction 112 

competitive bidding rules may apply 

does not exclude any television station 

from the definition of a small business 

on these bases and is therefore overinclusive to that extent. Furthermore, 

OEA and MB are unable at this time to 

define or quantify the criteria that 

would establish whether a specific 

television station is dominant in its field 

of operation. 

193. OEA and MB also note that they 

are unable to accurately develop an 

estimate of how many of the potential 

Auction 112 applicants might prove to 


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be small businesses based on the 

number of small entities that applied to 

participate in prior broadcast auctions 

because that information is not collected 

from applicants for broadcast auctions 

in which bidding credits are not based 

on an applicant’s size (as is the case in 

certain auctions of licenses for wireless 

services). OEA and MB conclude, 

however, that the majority of Auction 

112 eligible bidders will likely meet the 

SBA’s definition of a small business 

concern. 

194. Description of Projected 

Reporting, Recordkeeping, and Other 

Compliance Requirements for Small 

Entities. For Auction 112, no new 

reporting, recordkeeping, or other 

compliance requirements for small 

entities or other auction applicants were 

proposed. The Commission designed 

the auction application process itself to 

minimize reporting and compliance 

requirements for applicants, including 

small business applicants. For all 

spectrum auctions, in the first part of 

the Commission’s two-phased auction 

application process, parties desiring to 

participate in an auction file 

streamlined, short-form applications in 

which they certify under penalty of 

perjury as to their qualifications. 

Eligibility to participate in bidding is 

based on an applicant’s short-form 

application and certifications, as well as 

its upfront payment. In the second 

phase of the auction application 

process, there are additional compliance 

requirements for winning bidders. Thus, 

a small business that fails to become a 

winning bidder does not need to 

provide the additional showings and 

more detailed demonstrations required 

of a winning bidder. 

195. Auction 112 applicants, 

including small entities, will become 

qualified to bid in Auction 112 only if 

they comply with the following: (1) 

Submission of a short-form application 

that is timely and is found to be 

substantially complete, and (2) timely 

submission of a sufficient upfront 

payment for at least one of the 

construction permits that the applicant 

selected on its FCC Form 175. In 

accordance with the terms of 47 CFR 

1.2105(b)(2), an applicant whose 

application is found to contain 

deficiencies will have a limited 

opportunity to bring its application into 

compliance with the Commission’s 

competitive bidding rules during a 

resubmission window. In addition, each 

Auction 112 applicant must maintain 

the accuracy of its previously filed 

short-form application electronically 

using the FCC Auction Application 

System. 

196. In the second phase of the 

process, there are additional compliance 

requirements only applicable to 

winning bidders. As with other winning 

bidders, any small entity that is a 

winning bidder will be required to 

comply with the terms of the following 

rules, among others: (1) 47 CFR 

1.2107(b), by submitting as a down 

payment within 10 business days after 

release of the auction closing public 

notice sufficient funds (in addition to its 

upfront payment) to bring its total 

amount of money on deposit with the 

Commission for Auction 112 to 20% of 

the amount of its winning bid or bids; 

(2) 47 CFR 1.2109(a), by submitting 

within 10 business days after the down 

payment deadline the balance of the 

amount for each of its winning bids; and 

(3) 47 CFR 73.5005(a), by electronically 

filing a long-form application and 

required exhibits for each construction 

permit won through Auction 112. 

197. Further, as required by 47 CFR 

1.2105(c), reports concerning prohibited 

communications must be filed with the 

Chief of the Auctions Division, as 

detailed in the Auction 112 Procedures 

Public Notice. 

198. Steps Taken to Minimize the 

Significant Economic Impact on Small 

Entities, and Significant Alternatives 

Considered. The RFA requires an 

agency to describe any significant, 

specifically small business, alternatives 

that it has considered in reaching its 

proposed approach, which may include 

the following four alternatives (among 

others): (1) The establishment of 

differing compliance or reporting 

requirements or timetables that take into 

account the resources available to small 

entities; (2) the clarification, 

consolidation, or simplification of 

compliance and reporting requirements 

under the rule for such small entities; 

(3) the use of performance rather than 

design standards; and (4) an exemption 

from coverage of the rule, or any part 

thereof, for such small entities. 

199. OEA and MB intend that the 

procedures adopted in the Auction 112 

Procedures Public Notice to facilitate 

participation in Auction 112 will result 

in both operational and administrative 

cost savings for small entities and other 

auction participants. In light of the 

numerous resources that will be 

available from the Commission to small 

entities and other auction participants at 

no cost, the processes and procedures 

announced in the Auction 112 

Procedures Public Notice should 

minimize any economic impact of the 

auction processes and procedures on 

small entities and should result in both 

operational and administrative cost 

savings for small entities and other 

auction participants. For example, prior 

to the beginning of bidding in this 

auction, the Commission will hold a 

mock auction to allow qualified bidders 

the opportunity to familiarize 

themselves with both the processes and 

systems that will be used in Auction 

112. During the auction, participants 

will be able to access and participate in 

bidding via the internet using a webbased system, or telephonically, 

providing two cost-effective methods of 

participation and avoiding the cost of 

travel for in-person participation. 

Further, small entities as well as other 

auction participants will be able to avail 

themselves of a telephone hotline for 

assistance with auction processes and 

procedures as well as a technical 

support telephone hotline to assist with 

issues such as access to or navigation 

within the electronic FCC Form 175 and 

use of the FCC’s auction bidding system. 

In addition, all auction participants, 

including small business entities, will 

have access to various other sources of 

information and databases through the 

Commission that will aid in both their 

understanding and participation in the 

process. These mechanisms are made 

available to facilitate participation by all 

qualified bidders and may result in 

significant cost savings for small 

business entities that utilize these 

mechanisms. These resources, coupled 

with the description and 

communication of the bidding 

procedures before bidding begins in 

Auction 112, should ensure that the 

auction will be administered 

predictably, efficiently and fairly, thus 

providing certainty for small entities as 

well as other auction participants. In 

addition, in consideration of comments 

submitted in this proceeding, the 

minimum opening bid amounts were 

reduced to amounts 25% lower than 

those that had been proposed in the 

Auction 112 Comment Public Notice; 

this change is intended to encourage 

participation in Auction 112 by a greater 

number of interested parties, which may 

include some small entities. 

200. Notice to SBA. The Commission 

will send a copy of the Auction 112 

Procedures Public Notice, including this 

Supplemental FRFA, to the Chief 

Counsel for Advocacy of the SBA. 

Federal Communications Commission. 

William Huber, 

Associate Chief, Auctions Division, Office of 

Economics and Analytics. 

[FR Doc. 2022–03348 Filed 2–17–22; 8:45 am] 

BILLING CODE 6712–01–P 


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