[Federal Register Volume 62, Number 50 (Friday, March 14, 1997)]
[Notices]
[Pages 12186-12198]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6418]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 97-386]


Auction of Wireless Communications Service (Auction No. 14)

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: The Wireless Telecommunications Bureau announced the 
application procedures for the upcoming WCS auction (Auction #14) in a 
Public Notice dated February 20, 1997. The auction is scheduled to 
begin April 15, 1997 and will consist of 128 licenses: two licenses in 
52 Major Economic Areas in the United States and two licenses in 12 
Regional Economic Area Groupings. The purpose of the public notice is 
to inform interested parties of the auction procedures the Commission 
will use in Auction #14 and the filing requirements to become an 
eligible bidder.

FOR FURTHER INFORMATION CONTACT: Louis Sigalos or Josh Roland, Wireless 
Telecommunications Bureau, at (202) 418-0660.

SUPPLEMENTARY INFORMATION: This is a summary of Public Notice DA 97-
386, ``Auction of Wireless Communications Service--Auction Notice and 
Filing Requirements for 128 WCS Licenses Scheduled for April 15, 
1997,'' released February 21, 1997. The complete text of the Public 
Notice is available for inspection and copying during normal business 
hours in the FCC Reference Center (Room 239), 1919 M Street, N.W., 
Washington, D.C. and also may be purchased from the Commission's copy 
contractor, International Transcription Service, (202) 857-3800, 2100 M 
Street, N.W., Suite 140, Washington, D.C. 20037.

Synopsis of the Public Notice

I. Introduction

    1. Licenses To Be Auctioned: 128 licenses. Wireless Communications 
Service (``WCS'') licensees are permitted, within their assigned 
spectrum and geographic areas, to provide any fixed, mobile, 
radiolocation or broadcast-satellite use consistent with the allocation 
table and associated international agreements concerning spectrum 
allocations. The auction will consist of 2 licenses (Frequency Blocks 
``A'' and ``B'') in 52 Major Economic Areas (MEAs), authorizing service 
on 10 MHz of spectrum, and 2 licenses (Frequency Blocks ``C'' and 
``D'') in each of 12 Regional Economic Area Groupings (REAGs), 
authorizing service on 5 MHz of spectrum. Each frequency block 
encompasses the following spectrum:

Frequency Block A: 2305-2310 MHz paired with 2350-2355 MHz
Frequency Block B: 2310-2315 MHz paired with 2355-2360 MHz
Frequency Block C: 2315-2320 MHz
Frequency Block D: 2345-2350 MHz

    A detailed listing of MEAs and REAGs, with their FCC market number, 
market description, license number, population, and upfront payment are 
provided in Attachment A.
    2. Auction Date: The auction will begin on April 15, 1997. The 
precise schedule for bidding will be announced by public notice at 
least one week before the start of the auction. Unless otherwise 
announced, bidding will be conducted on each business day until bidding 
has stopped on all licenses.
    3. Auction Title: This is the fourteenth spectrum auction the 
Commission has scheduled, and will be referred to as ``Auction No. 14, 
Wireless Communications Service.''
    4. Bidding Methodology: Simultaneous multiple round bidding. 
Bidding will be by electronic means from remote locations only. 
Participants should note that this auction will use a round structure 
that is different from the procedures used in previous Commission 
auctions.
    5. Pre-Auction Dates:
    * Short-Form Application (FCC Form 175): March 25, 1997, 5:30 p.m. 
ET.
    * Upfront Payments (Only Wire Transfer Accepted): April 4, 1997, 
6:00 p.m. ET.
    * Orders for Remote Bidding Software: April 4, 1997, 5:30 p.m. ET.
    * Mock Auction: April 10, 1997.
    6. Telephone Contacts:
    * FCC National Call Center: 888-CALL-FCC (888-225-5322) (Bidder 
Information Packages/General Auction Information).
    * FCC Technical Support Hotline: 202-414-1250.
    7. List of Attachments:
    * Attachment A: List of Licenses Offered.
    * Attachment B: Electronic Filing of FCC Form 175.
    * Attachment C: Guidelines for Completing FCC Form 175 and 
Exhibits.
    * Attachment D: Summary Listing of Documents from the Commission 
and the Wireless Telecommunications Bureau Addressing Application of 
the Anti-Collusion Rules.
    8. Bidder Information Package: More complete details about this 
auction will be contained in a Bidder Information Package. The 
Commission will provide one copy free of charge. Additional copies may 
be ordered at a cost of $16.00 each, including postage, payable by Visa 
or Master Card, or by check payable to ``Federal Communications 
Commission'' or ``FCC''. To place an order, please contact the FCC 
National Call Center at 888-CALL-FCC (888-225-5322). Bidders who do not 
receive their Packages within two weeks of ordering should contact the 
Call Center.
    9. Participation: Those wishing to participate in the auction must 
submit

[[Page 12187]]

an FCC Form 175 short-form application. The FCC Form 175 must be 
completed and filed in accordance with the Commission's rules and the 
instructions provided in the Bidder Information Package, and must be 
submitted electronically no later than 5:30 p.m. ET on March 25, 1997.
    10. Applicants will be required to submit an upfront payment and an 
FCC Remittance Advice (FCC Form 159). The upfront payment must be made 
in U.S. dollars by wire transfer. Payments must be received at Mellon 
Bank in Pittsburgh, Pennsylvania, no later than April 4, 1997 at 6:00 
p.m. ET. No other form of payment will be accepted.
    11. Prohibition of Collusion: To ensure the competitiveness of the 
auction process, the Commission's rules prohibit applicants for the 
same geographic areas from communicating with each other during the 
auction about bids, bidding strategies or settlements. This prohibition 
begins with the filing of short-form applications, and ends when 
winning bidders submit down payments. The prohibition does not apply 
where applicants enter into a bidding agreement before filing their 
short-form applications, and disclose the existence of the agreement in 
the short-form application. See 47 CFR Section 1.2105(c).
    12. Relevant Authority: Prospective bidders should familiarize 
themselves thoroughly with the FCC's rules relating to the Wireless 
Communications Service contained in Part 27 of this Chapter, and rules 
relating to application and auction procedures, contained in Part 1, 
Subpart Q.
    13. The specific rules applicable to WCS are contained in the 
Commission's Report and Order in Amendment of the Commission's Rules to 
Establish Part 27, the Wireless Communications Service (``WCS''), GN 
Docket No. 96-228, FCC 97-50 (released February 19, 1997), 62 FR 9635 
(March 3, 1997). This Report and Order is posted on the Commission's 
world wide web site at http://www.fcc.gov.
    14. The Terms contained in the FCC's rules, the Report and Order, 
this Public Notice, and in the Bidder Information Package are not 
negotiable. Prospective bidders should review these auction documents 
thoroughly prior to the auction to make certain that they understand 
all of the provisions and are willing to be bound by all of the Terms 
before participating in the auction.
    15. The Commission may amend or supplement the information 
contained in this Public Notice and in the Bidder Information Package 
at any time. The Commission will issue public notices to convey new or 
supplemental information to bidders. It is the responsibility of all 
prospective bidders to remain current with all FCC rules and with all 
public notices pertaining to this auction. Copies of FCC documents, 
including public notices, may be obtained for a fee by calling the 
Commission's copy contractor, International Transcription Service, 
Inc., at 202-857-3800. Additionally, many documents can be retrieved 
from the FCC Internet node via anonymous <a href="/cdn-cgi/l/email-protection#65031115250311154b0306064b020a13"><span class="__cf_email__" data-cfemail="f0968480b0968480de969393de979f86">[email protected]</span></a> or the FCC 
world wide web site at http://www.fcc.gov. Bidders should also note 
that a separate Auction's web page is available on the Commission's web 
site at http://www.fcc.gov/auctions.html.
    16. Bidder Alerts: All applicants must certify under penalty of 
perjury on their FCC Form 175 applications that they are legally, 
technically, financially and otherwise qualified to hold a license, and 
not in default on any Commission licenses. Prospective bidders are 
reminded that submission of a false certification to the Commission is 
a serious matter that may result in severe penalties, including 
monetary forfeitures, license revocations, exclusion from participation 
in future auctions, and/or criminal prosecution.
    17. The Commission makes no representations or warranties about the 
use of this spectrum for particular services. Applicants should be 
aware that an FCC auction represents an opportunity to become an FCC 
licensee in this service, subject to certain conditions and 
regulations. An FCC auction does not constitute an endorsement by the 
FCC of any particular services, technologies or products, nor does an 
FCC license constitute a guarantee of business success. Applicants 
should perform their individual due diligence before proceeding as they 
would with any new business venture.
    18. As is the case with many business investment opportunities, 
some unscrupulous entrepreneurs may attempt to use the WCS auction to 
deceive and defraud unsuspecting investors. Common warning signals of 
fraud include the following:
    * The first contact is a ``cold call'' from a telemarketer, or is 
made in response to an inquiry prompted by a radio or television 
infomercial.
    * The offering materials used to invest in the venture appear to be 
targeted at IRA funds, for example by including all documents and 
papers needed for the transfer of funds maintained in IRA accounts.
    * The amount of the minimum investment is less than $25,000.
    * The sales representative makes verbal representations that: (a) 
The IRS, FTC, SEC, FCC, or other government agency has approved the 
investment; (b) the investment is not subject to state or federal 
securities laws; or (c) the investment will yield unrealistically high 
short-term profits. In addition, the offering materials often include 
copies of actual FCC releases, or quotes from FCC personnel, giving the 
appearance of FCC knowledge or approval of the solicitation.
    19. Information about deceptive telemarketing investment schemes is 
available from the Federal Trade Commission (FTC) at 202-326-2222 and 
from the Securities and Exchange Commission (SEC) at 202-942-7040. 
Complaints about specific deceptive telemarketing investment schemes 
should be directed to the FTC, the SEC, or the National Fraud 
Information Center at 800-876-7060. Consumers who have concerns about 
specific WCS investment proposals may also call the FCC National Call 
Center at 888-CALL-FCC (888-225-5322).

II. Bidder Eligibility and Small Business Provisions

A. General Eligibility Criteria

    20. This auction offers a total of 128 WCS licenses, with two 
licenses available in each of the 52 MEAs (Frequency Blocks ``A'' and 
``B'') and two licenses available in each of the 12 REAGs (Frequency 
Blocks ``C'' and ``D''). WCS licensees will be permitted to partition 
their service areas into smaller geographic service areas and to 
disaggregate their spectrum into smaller blocks. See 47 CFR Section 
27.15.
    21. Section 27.12 of the Commission's rules sets out eligibility 
requirements for WCS licensees. Under Section 27.12, any entity, other 
than those precluded by foreign ownership restrictions set forth in 
Section 310 of the Communications Act of 1934, as amended, 47 U.S.C. 
Section 310, is eligible to hold a WCS license.
    22. Prospective bidders should note that the Commission is hosting 
an industry forum on the WCS on February 28, 1997, at the agency's 
auction site located at 2 Massachusetts Avenue, N.E., Washington, D.C. 
Additional information regarding the forum is available on the 
Auction's web page of the Commission's web site, or by calling Louis 
Sigalos or Josh Roland of the Auctions Division of the Wireless 
Telecommunications Bureau at 202-418-0660.

[[Page 12188]]

B. Special Financial Provisions for Qualifying Small Businesses

    23. Qualifying small business applicants are eligible for the 
special financial provision of bidding credits. See 47 CFR Section 
27.209.
(1) Definitions of Small Businesses
    24. The Commission defined the small business definitions for the 
WCS as:
    * A ``small business'' is defined as an entity with average gross 
revenues not exceeding $40 million for the preceding three years.
    * A ``very small business'' is defined as an entity with average 
gross revenues not exceeding $15 million for the preceding three years.
    25. Gross revenues include all income received by an entity, 
whether earned or passive, before any deductions are made for costs of 
doing business (e.g., cost of goods sold), as evidenced by audited 
financial statements for the relevant number of most recently completed 
calendar years, or, if audited financial statements were not prepared 
on a calendar-year basis, for the most recently completed fiscal years 
preceding the filing of the applicant's short-form application (FCC 
Form 175). If an entity was not in existence for all or part of the 
relevant period, gross revenues shall be evidenced by the audited 
financial statements of the entity's predecessor-in-interest or, if 
there is no identifiable predecessor-in-interest, unaudited financial 
statements certified by the applicant as accurate. When an applicant 
does not otherwise use audited financial statements, its gross revenues 
may be certified by its chief financial officer or its equivalent. See 
47 CFR Section 27.210.
    26. In determining whether an entity qualifies as a small business 
at either threshold, gross revenues of all ``controlling'' principals 
will be attributed to the prospective small business applicant, as well 
as the gross revenues of affiliates of the applicant. However, personal 
net worth is not included in the determination of eligibility for 
bidding as a small business. The term ``control'' includes both de jure 
and de facto control of the applicant. Typically, de jure control is 
evidenced by ownership of 50.1 percent of an entity's voting stock. De 
facto control is determined on a case-by-case basis. An entity must 
demonstrate at least the following indicia of control to establish that 
it retains de facto control of the applicant: (1) the entity 
constitutes or appoints more than 50 percent of the board of directors 
or partnership management committee; (2) the entity has authority to 
appoint, promote, demote and fire senior executives that control the 
day-to-day activities of the licensees; and (3) the entity plays an 
integral role in all major management decisions. The definition of 
``affiliate'' is set forth at Section 27.210(d) of the Commission's 
Rules.
(2) Bidding Credits
    27. The size of a WCS bidding credit depends on the annual gross 
revenues of the bidder and its affiliates, as averaged over the 
preceding three years:
    * A bidder with average gross annual revenues not exceeding $40 
million (a ``small business'') receives a 25-percent discount on its 
winning bids for WCS licenses.
    * A bidder with average gross annual revenues not exceeding $15 
million (a ``very small business'') receives a 35-percent discount on 
its winning bids for WCS licenses.
    These bidding credits are not cumulative.
(3) Application Showing
    28. Applicants should note that as part of their FCC Form 175 
filing they will be required to file supporting documentation to 
establish that they satisfy the eligibility requirements to bid as a 
small business or very small business in this auction, and that they 
are subject to audits to confirm their eligibility.
(4) Unjust Enrichment
    29. WCS winning bidders should note that unjust enrichment 
provisions apply to winning bidders who use bidding credits and 
subsequently assign or transfer control of their WCS licenses to an 
entity that does not qualify for the special financial provisions. See 
47 CFR Section 27.209. Likewise, unjust enrichment provisions apply to 
any WCS licensee that received a bidding credit and subsequently 
partitions a portion of its license or disaggregates a portion of its 
spectrum to an entity that would not have qualified for such a bidding 
credit.

III. Pre-Auction Procedures

A. Short-Form Application (FCC Form 175)--Due March 25, 1997

    30. In order to be eligible to bid in this auction, applicants must 
first submit an FCC Form 175 application to the Commission. This 
application must be submitted electronically by 5:30 p.m. ET on March 
25, 1997. Late applications will not be accepted.
    31. There is no application fee required when filing a FCC Form 
175. However, to be eligible to bid, an applicant will have to submit 
an upfront payment.
(1) Electronic Filing Only
    32. Applicants must file their applications electronically. Manual 
filing is not permitted for this auction. Generally, applicants may 
begin to file electronically on a 24-hour basis beginning at about the 
same time as release of the Bidder Information Package. All the 
information required to file the FCC Form 175 electronically (i.e., 
software, help files and configuration samples) will be available over 
both the Internet and the FCC's Bulletin Board System (``BBS').
(2) Completion of the FCC Form 175
    33. Applicants should carefully review 47 CFR Sections 1.2105 and 
27.204, and must complete all items on the FCC Form 175. Instructions 
for completing the FCC Form 175 will be contained in the Bidder 
Information Package.
    34. Failure to submit the required ownership information will 
result in dismissal of the application and loss of the ability to 
participate in the auction.
(3) Electronic Review of FCC Form 175
    35. The FCC Form 175 review software may be used to review and 
print applicants' FCC Form 175 applications. In other words, applicants 
who file electronically may review their own completed FCC Form 175s. 
Applicants also have access to view other applicants' completed FCC 
Form 175s after the deadline for filing FCC Form 175s has passed and 
the Commission has issued a public notice identifying the filing status 
of the applicants.

B. Application Processing and Minor Corrections

    36. After the deadline for filing the FCC Form 175 applications has 
passed, the Commission will process all timely applications to 
determine which are acceptable for filing, and subsequently will issue 
a public notice identifying: (1) Those applications accepted for filing 
(including FCC account numbers and the licenses for which they 
applied); (2) those applications rejected; and (3) those applications 
which have minor defects that may be corrected, and the deadline for 
filing such corrected applications.
    37. As described more fully in our rules, after the March 25, 1997 
short-form filing deadline, applicants may make only minor corrections 
to their FCC Form 175 applications. Applicants will not be permitted to 
make major modifications to their applications (e.g.,

[[Page 12189]]

change their license selections, change the certifying official or 
change control of the applicant). See 47 CFR Section 27.204(b).

C. Upfront Payments--Due April 4, 1997

    38. In order to be eligible to bid in the auction, applicants must 
submit an upfront payment accompanied by an FCC Remittance Advice (FCC 
Form 159). All upfront payments must be received by wire transfer at 
Mellon Bank in Pittsburgh, Pennsylvania, by 6:00 p.m. E.T. on April 4, 
1997.
    39. Please note that:
    *All payments must be made in U.S. dollars.
    *All payments must be made by wire transfer. No other form of 
payment will be accepted.
    *Upfront payments for Auction 14 go to a different lockbox number 
from the one used in previous FCC auctions, and different from the 
lockbox number to be used for post-auction payments.
    *Failure to deliver the upfront payment by the April 4, 1997 
deadline will result in dismissal of the application and 
disqualification from participation in the auction.
(1) Wire Transfers
    40. For this auction, the Commission requires applicants to make 
their upfront payments by wire transfer, which experience has shown 
provides the greatest reliability and efficiency. Wire transfer 
payments must be received by 6:00 p.m. ET on April 4, 1997. To avoid 
untimely payments, applicants should discuss arrangements (including 
bank closing schedules) with their banker several days before they plan 
to make the wire transfer, and allow sufficient time for the transfer 
to be initiated and completed before the deadline. Applicants will need 
the following information:

ABA Routing Number: 043000261
Receiving Bank: Mellon Pittsburgh
BNF: FCC/AC--9116106
OBI Field: (Skip one space between each information item) 
``AUCTIONPAY''
FCC ACCOUNT NO. (same as FCC Form 159, Block 1)
PAYMENT TYPE CODE (enter ``A30U'')
FCC CODE (same as FCC Form 159, Block 17A: ``14'')
PAYOR NAME (same as FCC Form 159, Block 3)
LOCKBOX NO. 358400

    Note: The BNF and Lockbox No. are specific to the upfront 
payments for WCS; do not use BNF or Lockbox numbers from previous 
auctions.

    41. Applicants must fax a completed FCC Form 159 to Mellon Bank at 
412-236-5702 at least one hour before placing the order for the wire 
transfer (but on the same business day). On the cover sheet of the fax, 
write ``Wire Transfer--Auction Payment for Auction Event #14''.
(2) FCC Form 159
    42. Each upfront payment must be accompanied by a completed FCC 
Remittance Advice (FCC Form 159). Proper completion of FCC Form 159 is 
critical to ensuring correct credit of upfront payments. Instructions 
for completing FCC Form 159 will be contained in the Bidder Information 
Package.
(3) Amount of Upfront Payment
    43. The amount of the upfront payment required to bid on a 
particular license in Auction No. 14 is $0.02 per megahertz per 
population (MHz-pop). As noted below, a different determination is used 
for the Gulf of Mexico service area. The upfront payment associated 
with each license offered is listed in Attachment A to this Public 
Notice. Upfront payments, however, are not attributed to specific 
licenses, but instead will be translated to bidding units to define the 
bidder's maximum bidding eligibility.
    44. Thus, an applicant does not have to make an upfront payment to 
cover all licenses for which it has applied. Rather, the total upfront 
payment defines the maximum amount of bidding units the applicant will 
be permitted to bid on (including standing high bids) in any single 
round of bidding. At a minimum, an applicant's total upfront payment 
must be enough to establish eligibility to bid on at least one of the 
licenses applied for on its FCC Form 175, or else the applicant will 
not be eligible to participate in the auction.
    45. In calculating the upfront payment amount, an applicant should 
determine the maximum number of bidding units in terms of MHz-pops it 
may wish to bid on in any single round, and submit an upfront payment 
covering that number of bidding units. In this auction, the licenses 
authorize service over 10 MHz of spectrum for MEAs and 5 MHz of 
spectrum for REAGs. Thus, if an applicant wants to be eligible to bid 
in any single bidding round on licenses in MEAs with a maximum total 
population of 750,000 persons, the applicant must submit an upfront 
payment of $150,000 (750,000 x 10 MHz x $0.02 = $150,000). Due to the 
unique circumstances of the Gulf of Mexico service area (no population 
figure), the Commission will establish an upfront payment of $5,000 and 
250,000 bidding units for each MEA license and an upfront payment of 
$2,500 and 125,000 bidding units for each REAG license in this area.

    Note: An applicant may, on its FCC Form 175, apply for every 
license being offered, but its actual bidding in any round will be 
limited by the bidding units reflected in its upfront payment. 
Bidders will be required to remain active in each round of the 
auction on a specified percentage of bidding units reflected in 
their upfront payments in order to retain their current eligibility.
(4) Refunds
    46. The Commission currently intends to use wire transfers for all 
Auction 14 refunds. To avoid delays in processing refunds, applicants 
should include wire transfer instructions with any refund request they 
file; they may also provide this information in advance by faxing it to 
the FCC Billings and Collections Branch, ATTN: Regina Dorsey or Linwood 
Jenkins, at 202-418-2843. Applicants should also note that 
implementation of the Debt Collection Improvement Act of 1996 requires 
the Commission to obtain a Taxpayer Identification Number before it can 
disburse refunds.

D. Auction Registration

    47. No later than five business days before the auction, the 
Commission will issue a public notice announcing all qualified bidders 
for the auction. Qualified bidders are those applicants whose FCC Form 
175 applications have been accepted for filing and who have timely 
submitted upfront payments sufficient to make them eligible to bid on 
at least one of the licenses for which they applied.
    48. All qualified bidders are automatically registered for the 
auction. Registration materials will be distributed prior to the 
auction by two separate overnight mailings, each containing part of the 
confidential identification codes required to place bids. These 
mailings only will be sent to the contact person at the applicant 
address listed in the FCC Form 175.
    49. Applicants who do not receive both registration mailings will 
not be able to submit bids. Therefore, any qualified applicant who has 
not received both mailings within three business days after the release 
of the qualified bidders public notice should contact the FCC National 
Call Center at 888-CALL-FCC (888-225-5322). Receipt of both 
registration mailings is critical to participating in the auction and 
each applicant is responsible for ensuring it has received all of the 
registration material.

    Note: Qualified bidders should note that lost login codes, 
passwords or bidder

[[Page 12190]]

identification numbers can only be replaced by appearing in person 
at the FCC Auction Headquarters located at 2 Massachusetts Avenue, 
N.E., Washington, D.C. 20002. Only an authorized representative or 
certifying official, as designated on an applicant's FCC Form 175, 
may appear in person with two forms of identification (one of which 
must be a photo identification) in order to receive replacement 
codes.

E. Remote Electronic Bidding Software

    50. Bidding for WCS licenses is by electronic means only. Bidders 
must purchase remote electronic bidding software for $175.00, including 
shipping and handling, by April 4, 1997. (Auction software is tailored 
to a specific auction, so software from prior auctions will not work 
for Auction 14.) Information about this software and an order form will 
be included in the Bidder Information Package. Bidders who order remote 
bidding software by the ordering deadline will receive it with the 
registration mailings.

F. Mock Auction

    51. All applicants whose FCC Form 175s have been accepted for 
filing will be eligible to participate in a mock auction beginning 
April 10, 1997. The mock auction will enable applicants to become 
familiar with the electronic software prior to the auction. Free 
demonstration software will be available for use in the mock auction. 
Due to different bidding procedures in the WCS auction from previous 
Commission auctions, participation by all bidders is strongly 
recommended. Details will be announced by public notice.

IV. Auction Event

    52. The Commission will begin the auction on Tuesday, April 15, 
1997.

A. Auction Structure

(1) Simultaneous Multiple Round Auction
    53. The 128 WCS licenses will be awarded through a single, 
simultaneous multiple round auction. Unless otherwise announced, bids 
will be accepted on all licenses in each round of the auction.
(2) Activity Rule
    54. In order to ensure that the auction closes within a reasonable 
period of time, an activity rule requires bidders to bid actively 
throughout the auction, rather than waiting until the end before 
participating. A bidder that does not satisfy the activity rule either 
loses bidding eligibility or uses an activity rule waiver.
    55. A bidder is considered ``active'' on a license in the current 
round if it either is the high bidder at the end of the previous 
round's bidding period and does not withdraw the high bid in the 
current round, or submits an acceptable bid in the current round. 
Placing and removing a bid in the same round does not count toward 
activity. A bidder's activity level in a round is the sum of the 
bidding units associated with licenses on which the bidder is active. 
The minimum required activity level is expressed as a percentage of the 
bidder's maximum bidding eligibility and increases as the auction 
progresses following stage transitions.
(3) Activity Rule Waivers
    56. Each bidder will be provided five activity rule waivers that 
may be used in any round during the course of the auction. Use of an 
activity rule waiver preserves the bidder's current bidding eligibility 
despite the bidder's activity in the current round being below the 
required minimum level. An activity rule waiver applies to an entire 
round of bidding and not to a particular license.
    57. The FCC auction system assumes that bidders with insufficient 
activity would prefer to use an activity rule waiver (if available) 
rather than lose bidding eligibility. Therefore, the system will 
automatically apply a waiver (known as an ``automatic waiver'') at the 
end of any bidding period where a bidder's activity level is below the 
minimum required unless: (1) there are no activity rule waivers 
available; or (2) the bidder overrides the automatic application of a 
waiver by reducing eligibility.
    58. A bidder with insufficient activity who wants to reduce its 
bidding eligibility rather than use an activity rule waiver must 
affirmatively override the automatic waiver mechanism during the 
bidding period. In this case, the bidder's eligibility is permanently 
reduced, and it will not be permitted to later regain its lost bidding 
eligibility.
    59. Finally, a bidder may proactively use an activity rule waiver 
as a means to keep the auction open without placing a bid. If a bidder 
submits a proactive waiver during a bidding period in which no bids are 
submitted, the auction will remain open. (Note that an automatic waiver 
invoked in a round in which there are no new valid bids will not keep 
the auction open.) Thus in the later rounds of the auction, if a bidder 
does not intend to bid but wants to ensure that the auction does not 
close, it should enter a proactive waiver in place of a bid.
(4) Auction Stages
    60. The auction is composed of three stages, which are each defined 
by an increasing activity rule. Below are the proposed activity levels 
for each stage of the WCS auction. The Commission reserves the 
discretion to alter the activity percentages.
    61. Stage One: In each round of the first stage of the auction, a 
bidder desiring to maintain its current eligibility is required to be 
active on licenses encompassing at least 60 percent of its current 
bidding eligibility. Failure to maintain the requisite activity level 
will result in a reduction in the bidder's bidding eligibility in the 
next round of bidding (unless an activity rule waiver is used). During 
Stage One, reduced eligibility for the next round will be calculated by 
multiplying the current round activity by five-thirds (\5/3\).
    62. Stage Two: In each round of the second stage, a bidder desiring 
to maintain its current eligibility is required to be active on 90 
percent of its current bidding eligibility. During Stage Two, reduced 
eligibility for the next round will be calculated by multiplying the 
current round activity by ten-ninths (\10/9\).
    63. Stage Three: In each round of the third stage, a bidder 
desiring to maintain its current eligibility is required to be active 
on 98 percent of its current bidding eligibility. In this final stage, 
reduced eligibility for the next round will be calculated by 
multiplying the current round activity by fifty-fortyninths (\50/49\).
    64. CAUTION: Since activity requirements increase in each auction 
stage, bidders must carefully check their current activity during the 
bidding period of the first round following a stage transition. This is 
especially critical for bidders who have standing high bids and do not 
plan to submit new bids. In past auctions, some bidders have 
inadvertently lost bidding eligibility or used an activity rule waiver 
because they did not reverify their activity status at stage 
transitions. Bidders may check their activity against the required 
minimum activity level by using the bidding software's bidding module.
(5) Stage Transitions
    65. The auction will start in Stage One. Under our general 
guidelines it will advance to the next stage (i.e., from Stage One to 
Stage Two, and from Stage Two to Stage Three) when in each of three 
consecutive rounds of bidding, the high bid has increased on 10 percent 
or less of the licenses being auctioned (as measured in bidding units). 
However, the Commission retains the discretion to accelerate the 
auction by announcement. This determination will

[[Page 12191]]

be based on a variety of measures of bidder activity including, but not 
limited to, the auction activity level, the percentages of licenses 
(measured in terms of activity units) on which there are new bids, the 
number of new bids, and the percentage increase in revenue.
(6) Auction Stopping Rules
    66. Barring extraordinary circumstances, bidding will remain open 
on all licenses until bidding stops on every license. Thus, the auction 
will close for all licenses when one round passes during which no 
bidder submits a new acceptable bid on any license, applies a proactive 
waiver, or withdraws a previous high bid.
    67. The Commission retains the discretion, however, to keep an 
auction open even if no new acceptable bids or proactive waivers are 
submitted, and no previous high bids are withdrawn. In this event, the 
effect will be the same as if a bidder had submitted a proactive 
waiver. Thus, the activity rule will apply as usual, and a bidder with 
insufficient activity will either lose bidding eligibility or use an 
activity rule waiver (if it has any left).
    68. Further, in its discretion, the Commission reserves the right 
to declare that the auction will end after a specified number of 
additional rounds (''special stopping rule''). If the Commission 
invokes this special stopping rule, it will accept bids in the final 
round(s) only for licenses on which the high bid increased in at least 
one of the preceding three rounds. The Commission intends to exercise 
this option only in extreme circumstances, such as where the auction is 
proceeding very slowly, where there is minimal overall bidding 
activity, or where it appears likely that the auction will not close 
within a reasonable period of time. Before exercising this option, the 
Commission will probably first attempt to increase the pace of the 
auction by, for example, moving the auction into the next stage (where 
bidders would be required to maintain a higher level of bidding 
activity), increasing the number of bidding rounds per day, and/or 
increasing the amount of the minimum bid increments for the limited 
number of licenses where there is still a high level of bidding 
activity.
(7) Auction Delay, Suspension or Cancellation
    69. By public notice or by announcement during the auction, the 
Commission may delay, suspend or cancel the auction in the event of 
natural disaster, technical obstacle, evidence of an auction security 
breach, unlawful bidding activity, administrative or weather necessity, 
or for any other reason that affects the fair and competitive conduct 
of competitive bidding. In such cases, the Commission, in its sole 
discretion, may elect to: resume the auction starting from the 
beginning of the current round; resume the auction starting from some 
previous round; or cancel the auction in its entirety. Network 
interruption may cause the Commission to delay or suspend the auction.

B. Bidding Procedures

(1) Round Structure
    70. The initial bidding schedule will be announced by public notice 
at least one week before the start of the auction, and will be included 
in the registration mailings. Each bidding round contains a single 
bidding period followed by the release of the round results. 
Participants should note that the round structure for the WCS auction 
is a different format than the round structure used in previous 
Commission auctions.
    71. The Commission has discretion to change the bidding schedule in 
order to foster an auction pace that reasonably balances speed with the 
bidders' need to study round results and adjust their bidding 
strategies. The Commission may increase or decrease the amount of time 
for the performance and review periods, or the number of rounds per 
day, depending upon the bidding activity level and other factors.
(2) Minimum Acceptable Bids
    72. The Commission does not anticipate establishing a minimum 
opening bid for WCS licenses, but reserves the discretion to implement 
minimum opening bids for any license. Bidders will be informed if a 
minimum opening bid is imposed through a public notice released prior 
to the start of the auction. Once there is a standing high bid on a 
license, the minimum bid increment for that license will be based on 
the level of activity that license has received in the current and 
previous rounds. The Commission will release the specific methodology 
for calculating this increment before the start of the auction.
(3) High Bids
    73. Each bid will be date-and time-stamped when it is entered into 
the computer system. In the event of tie bids, the Commission will 
identify the high bidder on the basis of the order in which bids are 
received by the Commission, starting with the earliest bid.
(4) Bidding
    74. During a bidding period, a bidder may submit bids for as many 
licenses as it is eligible, as well as withdraw high bids from previous 
bidding periods, remove bids placed in the same bidding period, or 
permanently reduce eligibility. This is a change in the procedures from 
previous auctions. Bidders also have the option of making multiple 
submissions and withdrawals per each bidding period, and will not have 
a separate period to withdraw bids. If a bidder enters multiple bids 
for a license in the same round, the system takes the last bid entered 
as that bidder's bid for the round. A bidder withdrawing a high bid 
from a previous round, will be subject to the bid withdrawal payments, 
but a bidder removing a bid placed in the same round is not subject to 
the payments. Eligibility in the first round of the auction is 
determined by: (a) the licenses applied for on FCC Form 175 and (b) the 
upfront payment amount deposited. The bid submission screens will be 
tailored for each bidder to include only those licenses for which the 
bidder applied on its FCC Form 175. A bidder also has the option to 
tailor its bid submission screens to call up specified groups of 
licenses.
    75. The bidding software requires each bidder to login to the FCC 
Auction System during the bidding period using the FCC Account Number, 
Bidder Identification Number, and confidential security codes provided 
in the registration materials. Bidders can download and print bid 
confirmations after they submit their bids.
(5) Bid Withdrawal
(a) Procedures
    76. A high bidder that withdraws its standing high bid from a 
previous round is subject to the bid withdrawal payments specified in 
Section 27.203 of the Commission's Rules. A bidder that places a bid 
and removes it during the same bidding period will not be subject to a 
bid withdrawal payment. The procedure for withdrawing a bid and 
receiving a withdrawal confirmation is essentially the same as the 
procedure for placing a bid. To prevent strategic delays to the close 
of the auction, the Commission retains the discretion to limit the 
number of times that a bidder may re-bid on a license from which it has 
withdrawn a high bid.
    77. If a high bid is withdrawn, the license will be offered in the 
next round at the second highest bid price, which may be less than, or 
equal to, in the case of tie bids, the amount of the withdrawn bid, 
without any bid increment. The

[[Page 12192]]

Commission will serve as a ``place holder'' on the license until a new 
acceptable bid is submitted on that license.
(b) Calculation
    78. Generally, a bidder who withdraws a standing high bid during 
the course of an auction will be subject to a payment equal to the 
lower of (1) the difference between the net withdrawn bid and the 
subsequent net winning bid, or (2) the difference between the gross 
withdrawn bid and the subsequent gross winning bid for that license. 
See 47 CFR Section 27.203. No withdrawal payment will be assessed if 
the subsequent winning bid exceeds the withdrawn bid.
(6) Round Results
    79. The bids placed during a bidding period are not published until 
the conclusion of that bidding period. After a bidding period closes, 
the Commission will compile reports of all bids placed, bids withdrawn, 
current high bids, new minimum accepted bids, and bidder eligibility 
status (bidding eligibility and activity rule waivers), and post the 
reports for public access.
    80. Reports reflecting bidders' identities and bidder 
identification numbers will be available before and during the auction. 
Thus, bidders will know in advance of the auction the identities of the 
bidders against whom they are bidding.
(7) Auction Announcements
    81. The Commission will use auction announcements to announce items 
such as schedule changes and stage transitions. All FCC auction 
announcements will be available on the FCC remote electronic bidding 
system, as well as the Internet and the FCC Bulletin Board System.
(8) Other Matters
    82. After the short-form filing deadline, applicants may make only 
minor changes to their FCC Form 175 applications. For example, 
permissible minor changes include deletion and addition of authorized 
bidders (to a maximum of three) and revision of exhibits. Filers should 
make these changes on-line, and submit a letter to Kathleen O'Brien 
Ham, Chief, Auctions Division, Wireless Telecommunications Bureau, 
Federal Communications Commission, 2025 M Street, N.W., Room 5322, 
Washington, D.C., 20554 (and mail a separate copy to Josh Roland, 
Auctions Division), briefly summarizing the changes. Questions about 
other changes should be directed to the FCC Auctions Division at 202-
418-0660.

V. Post-Auction Procedures

A. Down Payments and Withdrawn Bid Payments

    83. After bidding has ended, the Commission will issue a public 
notice declaring the auction closed (``auction closing notice''), 
identifying the winning bids and bidders for each license, and listing 
withdrawn bid payments due.
    84. Within ten business days after release of the auction closing 
notice, each winning bidder must submit sufficient funds to bring the 
total amount of money on deposit with the government (upfront payment 
less any withdrawal payments) to 20 percent of its high bids, unless it 
is an eligible small or very small business who elected to bid using 
bidding credits, then it must submit sufficient funds to bring the 
total amount of money on deposit with the government (upfront payment 
less any withdrawal payments) to 20 percent of its net winning bids 
(actual bids less any applicable bidding credits). See 47 CFR Section 
1.2107(b). In addition, by the same deadline all bidders must pay any 
withdrawn bid amounts due under Section 1.2104(g)(1) of the 
Commission's Rules. Upfront payments are applied first to satisfy any 
outstanding bid withdrawal payments before being applied toward down 
payments. 47 CFR Section 1.2104(g)(2).

B. Long-Form Application (FCC Form 600)

    85. Within ten business days after release of the auction closing 
notice, winning bidders must submit a properly completed FCC Form 600 
application and required exhibits for each WCS license won through the 
auction. Winning small business or very small business bidders must 
include an exhibit demonstrating their eligibility for the small 
business incentives. See 47 CFR Sections 1.2107 (c) and (d). Further 
instructions will be provided to auction winners at the close of the 
auction.
    86. The FCC Form 600 may be filed electronically. Alternatively, a 
hard copy plus required 3.5'' properly-formatted diskette copies may be 
sent to: FCC Form 600 Filing, Auction No. 14, Federal Communications 
Commission, Office of Operations, 1270 Fairfield Road, Gettysburg, PA 
17325-7245.

C. Application Processing and Grant; Final Payments

    87. Once a high bidder has submitted its down payment and filed an 
acceptable FCC Form 600 application, the Commission will release a 
public notice announcing acceptance of the long-form application. 
Parties will have five days following the public notice to file 
petitions to deny. Any responses to petitions to deny are due within 
five days. If the Commission dismisses or denies all petitions to deny, 
the Commission will announce by public notice that it is prepared to 
award a license, and the winning bidder will then have ten business 
days to submit the balance of its winning bid. If this payment is made, 
the license will be granted.
    88. Winning bidders will receive further instructions and detailed 
payment information after the auction closes.

D. Refund of Remaining Upfront Payment Balance

    89. All applicants who submitted upfront payments but were not 
winning bidders for any WCS license may be entitled to a refund of 
their remaining upfront payment balance after the conclusion of the 
auction. No refund will be made unless there are excess funds on 
deposit from that applicant after any applicable bid withdrawal 
payments have been paid.
    90. Bidders who drop out of the auction completely may be eligible 
for a refund of their upfront payments before the close of the auction. 
However, bidders who reduce their eligibility and remain in the auction 
are not eligible for partial refunds of upfront payments until the 
close of the auction. Qualified bidders who have exhausted all their 
activity rule waivers, have no remaining bidding eligibility, and have 
not withdrawn a high bid during the auction must submit a written 
refund request, along with a Taxpayer Identification Number (``TIN'') 
and a copy of their bidding eligibility screen print, to: Federal 
Communications Commission, Billings and Collections Branch, Attn: 
Regina Dorsey or Linwood Jenkins, 1919 M Street, N.W., Room 452, 
Washington, D.C. 20554.
    91. Bidders can also fax their request to the Billings and 
Collections Branch at (202) 418-2843. Once the request has been 
approved, a refund will be sent to the address provided on the FCC Form 
159.
    92. Refund processing generally takes up to two weeks to complete. 
Bidders with questions about refunds should contact Regina Dorsey or 
Linwood Jenkins at 202-418-1995.

E. Default and Disqualification

    93. Any high bidder that defaults or is disqualified after the 
close of the

[[Page 12193]]

auction (i.e., fails to remit the required down payment within the 
prescribed period of time, fails to submit a timely long-form 
application, fails to make full payment, or is otherwise disqualified) 
will be subject to the payments described in Sections 1.2104(g) and 
1.2109 of the Commission's Rules. In the event that the amount of those 
payments cannot be determined (i.e. until the license has been 
reauctioned), the Commission can require a ``deposit'' of at least 
three (3) percent of the defaulted bid amount. See In Re C. H. PCS, 
Inc., BTA No. B347 Frequency Block C, Order, DA 96-1825 (released 
November 4, 1996). See also Wireless Telecommunications Bureau Will 
Strictly Enforce Default Payment Rules, Public Notice, DA 96-481 (April 
4, 1996). Under certain circumstances the Commission can also reauction 
the license to existing or new applicants, or offer it to the other 
highest bidders (in descending order) at their final bids. See 47 CFR 
Sections 1.2109 (b) and (c). In addition, if a default or 
disqualification involves gross misconduct, misrepresentation or bad 
faith by an applicant, the Commission may declare the applicant and its 
principals ineligible to bid in future auctions, and may take any other 
action that it deems necessary, including institution of proceedings to 
revoke any existing licenses held by the applicant. See 47 CFR Section 
1.2107(d).

F. Service and Construction Requirements

    94. WCS licenses are required to provide substantial service to 
their service areas within ten years. Licensees failing to demonstrate 
that they are providing substantial service at the ten year period will 
be subject to forfeiture of their licenses.

Federal Communications Commission
William F. Caton,
Acting Secretary.

Attachment A--List of Licenses Offered

    The following tables lists the 128 Wireless Communications Service 
(``WCS'') licenses to be auctioned. The licenses consist of two 
licenses (Frequency Blocks ``A'' and ``B'') in each of 52 Major 
Economic Areas (MEAs) and two licenses (Frequency Blocks ``C'' and 
``D'') in each of 12 Regional Economic Area Groupings (REAGs). The MEAs 
and REAGs are based on the 172 Economic Area (``EAs'') developed by the 
Bureau of Economic Analysis of the U.S. Department of Commerce. More 
information regarding EAs is available on the Commission's Office of 
Engineering and Technology's Internet web page at: <a href="http://www.fcc.gov/
oet/info/maps/bea/

">http://www.fcc.gov/
oet/info/maps/bea/

</a> Summary of Licenses To Be Auctioned: Blocks A and B Major Economic Areas                    
----------------------------------------------------------------------------------------------------------------
                            Major economic area                                                                 
         MEA No.                    name                 License No.               Pop.         Upfront payment 
----------------------------------------------------------------------------------------------------------------
                              RE01--Northeast                                                                   
                                                                                                                
ME01....................  Boston.................  WSME01A/B                        8,672,944      $1,734,588.80
ME02....................  New York City..........  WSME02A/B                       29,027,017       5,805,403.40
ME03....................  Buffalo................  WSME03A/B                        1,529,735         305,947.00
ME04....................  Philadelphia...........  WSME04A/B                        7,942,319       1,588,463.80
                                                                                                                
                              RE02--Southeast                                                                   
                                                                                                                
ME05....................  Washington.............  WSME05A/B                        7,745,433       1,549,086.60
ME06....................  Richmond...............  WSME06A/B                        3,897,805         779,561.00
ME07....................  Charlotte-G'boro-        WSME07A/B                        9,825,342       1,965,068.40
                           Greenville-Raleigh.                                                                  
ME08....................  Atlanta................  WSME08A/B                        7,341,931       1,468,386.20
ME09....................  Jacksonville...........  WSME09A/B                        2,168,038         433,607.60
ME10....................  Tampa-St. Petersburg-    WSME10A/B                        5,528,763       1,105,752.60
                           Orlando.                                                                             
ME11....................  Miami..................  WSME11A/B                        5,025,606       1,005,121.20
                                                                                                                
                             RE03--Great Lakes                                                                  
                                                                                                                
ME12....................  Pittsburgh.............  WSME12A/B                        4,148,373         829,674.60
ME13....................  Cincinnati-Dayton......  WSME13A/B                        4,325,459         865,091.80
ME14....................  Columbus...............  WSME14A/B                        2,100,613         420,122.60
ME15....................  Cleveland..............  WSME15A/B                        5,077,339       1,015,467.80
ME16....................  Detroit................  WSME16A/B                       10,041,377       2,008,275.40
ME17....................  Milwaukee..............  WSME17A/B                        4,634,011         926,802.20
ME18....................  Chicago................  WSME18A/B                       12,495,510       2,499,102.00
ME19....................  Indianapolis...........  WSME19A/B                        2,753,182         550,636.40
ME20....................  Minneapolis-St. Paul...  WSME20A/B                        6,018,051       1,203,610.20
ME21....................  Des Moines-Quad Cities.  WSME21A/B                        2,733,385         546,677.00
                                                                                                                
                             RE04--Mississippi                                                                  
                                   Valley                                                                       
                                                                                                                
ME22....................  Knoxville..............  WSME22A/B                        1,364,665         272,933.00
ME23....................  Louisville-Lexington-    WSME23A/B                        4,059,317         811,863.40
                           Evansville.                                                                          
ME24....................  Birmingham.............  WSME24A/B                        3,082,737         616,547.40
ME25....................  Nashville..............  WSME25A/B                        2,002,283         400,456.60
ME26....................  Memphis-Jackson........  WSME26A/B                        3,850,949         770,189.80
ME27....................  New Orleans-Baton Rouge  WSME27A/B                        4,310,367         862,073.40
ME28....................  Little Rock............  WSME28A/B                        2,309,255         461,851.00
ME29....................  Kansas City............  WSME29A/B                        2,903,432         580,686.40
ME30....................  St. Louis..............  WSME30A/B                        4,436,804         887,360.80
                                                                                                                
                               RE05--Central                                                                    
                                                                                                                
ME31....................  Houston................  WSME31A/B                        5,513,511       1,102,702.20
ME32....................  Dallas-Fort Worth......  WSME32A/B                        9,575,762       1,915,152.40
ME33....................  Denver.................  WSME33A/B                        3,952,116         790,423.20
ME34....................  Omaha..................  WSME34A/B                        1,638,440         327,688.00
ME35....................  Wichita................  WSME35A/B                        1,094,213         218,842.60
ME36....................  Tulsa..................  WSME36A/B                        1,259,636         251,927.20
ME37....................  Oklahoma City..........  WSME37A/B                        1,695,572         339,114.40

[[Page 12194]]

                                                                                                                
ME38....................  San Antonio............  WSME38A/B                        2,944,684         588,936.80
ME39....................  El Paso-Albuquerque....  WSME39A/B                        2,114,287         422,857.40
ME40....................  Phoenix................  WSME40A/B                        3,458,935         691,787.00
                                                                                                                
                                 RE06--West                                                                     
                                                                                                                
ME41....................  Spokane-Billings.......  WSME41A/B                        1,727,716         345,543.20
ME42....................  Salt Lake City.........  WSME42A/B                        2,444,454         488,890.80
ME43....................  San Francisco-Oakland-   WSME43A/B                       11,956,167       2,391,233.40
                           San Jose.                                                                            
ME44....................  Los Angeles-San Diego..  WSME44A/B                       19,333,536       3,866,707.20
ME45....................  Portland...............  WSME45A/B                        2,999,719         599,943.80
ME46....................  Seattle................  WSME46A/B                        3,990,811         798,162.20
                                                                                                                
                                RE07--Alaska                                                                    
                                                                                                                
ME47....................  Alaska.................  WSME47A/B                          550,043         110,008.60
                                                                                                                
                                RE08--Hawaii                                                                    
                                                                                                                
ME48....................  Hawaii.................  WSME48A/B                        1,108,229         221,645.80
                                                                                                                
                          RE09--Guam and Northern                                                               
                               Mariana Islands                                                                  
                                                                                                                
ME49....................  Guam and Northern        WSME49A/B                          176,000          35,200.00
                           Mariana Islands.                                                                     
                                                                                                                
                           RE10--Puerto Rico and                                                                
                             U.S. Virgin Islands                                                                
                                                                                                                
ME50....................  Puerto Rico and U.S.     WSME50A/B                        3,623,846         724,769.20
                           Virgin Islands.                                                                      
                                                                                                                
                            RE11--American Samoa                                                                
                                                                                                                
ME51....................  American Samoa.........  WSME51A/B                           47,000           9,400.00
                                                                                                                
                            RE12--Gulf of Mexico                                                                
                                                                                                                
ME52....................  Gulf of Mexico.........  WSME52A/B                                0           5,000.00
                                                                           -------------------------------------
    Totals..............  .......................  .......................        252,556,719      50,516,343.80
----------------------------------------------------------------------------------------------------------------


              Summary of Licenses To Be Auctioned: Blocks C and D Regional Economic Area Groupings              
----------------------------------------------------------------------------------------------------------------
                           Regional economic area                                                               
       Region No.              grouping name             License No.               Pop.         Upfront payment 
----------------------------------------------------------------------------------------------------------------
RE01....................  Northeast..............  WSRE01C/D                       47,172,015      $4,717,201.50
RE02....................  Southeast..............  WSRE02C/D                       41,532,918       4,153,291.80
RE03....................  Great Lakes............  WSRE03C/D                       54,327,300       5,432,730.00
RE04....................  Mississippi Valley.....  WSRE04C/D                       28,319,809       2,831,980.90
RE05....................  Central................  WSRE05C/D                       33,247,156       3,324,715.60
RE06....................  West...................  WSRE06C/D                       42,452,403       4,245,240.30
RE07....................  Alaska.................  WSRE07C/D                          550,043          55,004.30
RE08....................  Hawaii.................  WSRE08C/D                        1,108,229         110,822.90
RE09....................  Guam and Northern        WSRE09C/D                          176,000          17,600.00
                           Mariana Islands.                                                                     
RE10....................  Puerto Rico and U.S.     WSRE10C/D                        3,623,846         362,384.60
                           Virgin Islands.                                                                      
RE11....................  American Samoa.........  WSRE11C/D                           47,000           4,700.00
RE12....................  Gulf of Mexico.........  WSRE12C/D                                0           2,500.00
                                                                           -------------------------------------
    Totals..............  .......................  .......................        252,556,719      25,258,171.90
----------------------------------------------------------------------------------------------------------------

Attachment B--Electronic Filing of FCC Form 175

    The Commission has implemented a remote access system to allow 
applicants to submit their FCC Form 175 applications electronically. 
The remote access system for initial filing of the FCC Form 175 
applications will generally be available 24 hours per day beginning at 
approximately the same time as the release of the Bidder Information 
Package. FCC Form 175 applications that are filed electronically using 
this remote access system must be submitted and confirmed by 5:30 p.m. 
ET on March 25, 1997. Late applications or unconfirmed submissions of 
electronic data will not be accepted. The electronic filing process 
consists of an initial filing period and a resubmission period to make 
minor corrections.
    Parties interested in filing FCC Form 175 applications 
electronically may do so via a (202) area code telephone service with 
no additional access charge or via a 900 number telephone service at a 
charge of $2.30 per minute. The first minute of connection time to the 
900 number service will be at no charge.
    Similarly, parties interested in reviewing FCC Form 175 
applications electronically will do so via the 900 telephone service at 
a charge of $2.30 per minute. The first minute of connection time to 
the 900 number service will be at no charge.
    Those applicants who wish to file their FCC Form 175 electronically 
or review other FCC Form 175 applications on-line will need the 
following hardware and software:

Hardware Requirements

    * CPU: Intel 80486 or above.
    * RAM: 8MB RAM (more recommended if you intend to open multiple 
applications).
    * Hard Disk: 12MB available disk space.
    * Modem: v.32bis 14.4kbps Hayes compatible modem.
    * Monitor: VGA or above.
    * Mouse or other pointing device.

[[Page 12195]]

    To create backup installation disks for the FCC Form 175 
Application, you will need the following:
    * 1.44MB 3.5'' Floppy Drive.
    * Three blank MS-DO<Register> formatted 1.44MB floppy disks.

Software Requirements

    * FCC Form 175 Application Software (available through the Internet 
and the FCC Bulletin Board System).
    * Microsoft Windows 3.1 or Microsoft Windows for Workgroups v3.11 
in an enhanced mode.

    Note: The FCC Form 175 Application has not been tested in a 
Macintosh, OS/2, or Windows95 environment. Therefore, the FCC will 
not support operating systems other than Microsoft Windows 3.1 or 
Microsoft Windows for Workgroups v3.11 in an enhanced mode. This 
includes any other emulated Windows environment. If your Windows is 
in a networked environment, you should check with your local network 
administrator for any potential conflicts with the PPP (Point-to-
Point Protocol) Dialer that is incorporated into the FCC Form 175 
Application. This usually includes any TCP/IP installed network 
protocol.

    The PPP Dialer that is incorporated into the FCC Form 175 
Application will establish a point-to-point connection from your PC to 
the FCC Network. This point-to-point connection is not routed through 
the Internet.
    Applicants who wish to file their FCC applications electronically 
or who wish to view other applicants' applications must first download 
the software from either the Internet or the FCC Bulletin Board System. 
Applicants must download the following compressed files to install the 
software: f175v10a.exe, f175v10b.exe, f175v10c.exe.

Internet Access

    In order to download the compressed files from the Internet, you 
will need to have access to the Internet and an ftp client software as 
follows:
    * World Wide Web: ftp://ftp.fcc.gov.
    Once you connect to the FCC ftp server, select the following 
directory and download the following files:
    Directory: /pub/Auctions/WCS/Auction__14/Programs.
    File: f175v10a.exe, f175v10b.exe, f175v10c.exe.
    * FTP: The following instructions are for the command line version 
of ftp.
    1. Connect to the FCC ftp server by typing ftp ftp.fcc.gov.
    2. At the user name prompt, type anonymous [Enter].
    3. At the password prompt, type your Internet e-mail address 
[Enter].
    4. To allow the file to be downloaded type: binary [Enter].
    5. Change your current directory to the Programs directory by 
typing: cd /pub/Auctions/WCS/Auction__14/Programs [Enter].
    6. Use the get command to download the files from the FCC ftp 
server by typing:

get f175v10a.exe [Enter]
get f175v10b.exe [Enter]
get f175v10c.exe [Enter]

    7. If you wish to exit, type: bye [Enter].
    * Gopher: gopher.ftp.fcc.gov or use any gopher to get to ``all the 
gophers in the world'' then `U.S.' then `DC' then `FCC'.

Dial-In Access to the FCC Auction Bulletin Board System (BBS)

    The FCC Auction Bulletin Board System provides dial-in access for 
the FCC Form 175 Application Software. In order to access the FCC 
Auction BBS, use a communications package that can handle at least 
xmodem protocol (e.g., pcAnyWhere, Telix, Procomm) to dial in to (202) 
682-5851. Use the settings of 8 data bits, no parity and 1 stop bit 
(8,N,1).
    * For new users follow steps 1-5, otherwise go to step 6 in the 
ANSI Protocol Instructions section or the Non-ANSI Protocol 
Instructions section (whichever is applicable):
    1. Type New and press [Enter]. If the word ANSI is blinking, type Y 
for yes. If the word ANSI is not blinking, type N for No.
    2. Type in your first and last name and press [Enter]. This will be 
your login name.
    3. Type in Y and press [Enter] when asked to verify your login 
name.
    4. Type in what you want your password to be and press [Enter].
    5. Retype the password for verification and press [Enter].
    *ANSI Protocol Instructions (once the account is generated):
    6. Type W for WCS Auction Files and press [Enter].
    7. Type A for Auction 14 and press [Enter].
    8. Type P for Programs and press [Enter].
    9. Type C for Current Library and press [Enter].
    10. Move the cursor to the file named f175v10a.exe and type 
[Control-D] for Download and press [Enter] (You may need to change the 
transfer protocol first--please see note below.)
    11. The FCC Auction BBS will begin transferring the file. You may 
need to give your terminal emulation software a command to receive the 
file; please consult your terminal emulation software manual for 
instructions concerning how to do so.
    12. Type X to return to the Programs menu. Repeat steps 10 and 11 
to download the following files: f175v10b.exe, f175v10c.exe.
    13. Type X to return to the Programs menu, then type X again. Type 
X to Exit and press [Enter] and continue to do so until asked if you 
want to Exit the BBS. Press Y for Yes when asked to verify that you 
want to exit.
    *Non-ANSI Protocol Instructions (once the account is generated):
    6. Type W for WCS Auction Files and press [Enter].
    7. Type A for Auction 14 and press [Enter].
    8. Type P for Programs and press [Enter].
    9. Type C for Current Library and press [Enter].
    10. Type the letter next to the file named f175v10a.exe and press 
[Enter].
    11. Type D for Download now and press [Enter] (You may need to 
change the transfer protocol first--please see the note below.)
    12. The FCC Auction BBS will begin transferring the file. You may 
need to give your terminal emulation software a command to receive the 
file; please consult your terminal emulation software manual for 
instructions concerning how to do so.
    13. Repeat steps 10 through 12 to download the following files: 
f175v10b.exe, f175v10c.exe.
    14. Type X, then type X to Exit and press [Enter] and continue to 
do so until asked if you want to Exit the BBS. Press Y for Yes when 
asked to verify that you want to exit.

    Note: To download files, you will need to match the transfer 
protocol on your BBS account to the transfer protocol set in your 
terminal emulation software. To set the BBS transfer protocol, 
return to the initial menu and type L for Library and [Enter], P for 
Preferences and [Enter], and P for File Transfer Protocol and 
[Enter]. Type the letter next to the protocol you desire and press 
[Enter]. You may now download files.

Extracting the FCC Form 175 Application

    The FCC Form 175 Application files are downloaded in a self-
extracting, compressed file format. When you have downloaded all of the 
compressed files for the FCC Form 175 Application, you must extract the 
FCC Form 175 Application from those files. To extract the software, 
start File Manager in the Main Program group, open the file folder 
where you downloaded the files, and double-click on f175v10a.exe. A 
message will appear listing the default directory to which the software 
will extract. If this directory does not exist, it will be created 
automatically. Press Unzip to begin extracting the software from the 
compressed file.

[[Page 12196]]

    When the extraction is complete, a message will appear listing the 
number of files that were unzipped. Press OK and repeat the above 
process for the remaining compressed files (f175v10b.exe, 
f175v10c.exe). Be sure to extract to the same directory as the first 
compressed file.

Installing the FCC Form 175 Application

    After you extract the software from the compressed files, you must 
install the FCC Form 175 Application. To install the software, start 
File Manager, open the file folder to which you extracted the software 
and double-click on setup.exe.
    When the setup program begins, a screen will appear listing the 
default directory to which the software will install. Press the Install 
button, then press OK to install to the specified directory. If the 
directory does not exist, the setup program will create it 
automatically.
    When the installation is complete, a message may appear asking you 
to restart Windows so that the changes made by the installation may 
take effect. Press Restart to restart Windows, or press Stay Here to 
restart at a later time. Do not use the FCC Form 175 Application until 
you restart Windows.

Creating Backup Installation Disks for the FCC Form 175 Application

    To create backup installation disks for the FCC Form 175 
Application, go to File Manager, open the file folder to which you 
extracted the software, double-click on backup.bat, and follow the 
instructions on the screen.

Running the FCC Form 175 Application

    When the installation process is complete, you will have a new 
Program Manager group called FCC Form 175 Application v10 with the 
following icons: Configure PPP, FCC Form 175 Submit, FCC Form 175 
Review, Suggestion Box, Readme, and Uninstall.
    You must verify/modify the parameters in the Configure PPP program 
prior to establishing a PPP connection. Please consult the readme.txt 
file included with the software for information regarding Configure 
PPP.
    Double-click on an icon to start the respective system.

Uninstalling the FCC Form 175 Application

    To uninstall the FCC Form 175 Application, double-click on the 
Uninstall icon in the FCC Form 175 v10 program group. Press Start to 
uninstall the software.
    Please note that the Uninstall program will remove ALL versions of 
the software located in that installation directory.
    Alternatively, you may uninstall the FCC Form 175 Application by 
deleting the directory to which you installed the software, then 
switching to Program Manager and deleting the FCC Form 175 v10 icons 
and group.

Help

    Detailed instructions for using all FCC Remote Electronic Auction 
System software can be found in the readme file associated with the 
software and in the context-sensitive help function associated with 
each software system.
    For technical assistance in installing or using the FCC Form 175 
Application, contact the FCC Technical Support Hotline at (202) 414-
1250. The FCC Technical Support Hotline will be generally available 
Monday through Friday, from 9 a.m. to 6 p.m. ET.

Attachment C--Guidelines for Completing FCC Form 175 and Exhibits

A. FCC Form 175

    Because of the significance of the Form 175 application to the 
auction, bidders should especially note the following:
    Electronic filing only: Applicants for the WCS auction must submit 
their FCC Form 175 applications by means of electronic filing. 
Applicants should note that any attachments must be submitted in ASCII 
text (.TXT) format.
    Items 2-5: Give a street address (not a Post Office box number) for 
the applicant, suitable for mail or private parcel delivery. The FCC 
will send all registration materials and other written communications 
to the applicant at this address.
    Item 6: Applicants should verify that this item is pre-filled with 
the number ``14.'' If this item is blank or contains another number, 
applicants should confirm that they entered ``14'' on the initial FCC 
Form 175 Welcome Screen.
    Item 7: Applicants must create a ten-digit FCC Account Number, 
which the Commission will use to identify and track applicants:
    * A bidder that has a taxpayer identification number (TIN) must 
create this FCC account number by using its TIN, plus the prefix of 
``0'' (i.e., 0123456789). A TIN is either the Employer Identification 
Number (EIN) in the case of a business, or the Social Security Account 
Number (SSAN) in the case of an individual.
    * If--and only if--an applicant does not have a taxpayer 
identification number, the applicant should use its ten-digit area code 
and telephone number (i.e., 2025551234) on an interim basis. However, 
the FCC must have a TIN before it will be able to issue a license or 
refund upfront payments.
    Each applicant must include its FCC Account Number when submitting 
amendments, additional information, or other correspondence or 
inquiries regarding its application, and must include this same number 
on each FCC Form 159 (FCC Remittance Advice) accompanying required 
auction deposits or payments.
    Item 8: Applicants must indicate their legal classification. 
Limited liability companies or joint ventures should check the 
``Other'' box and indicate their classification in the blank.
    Items 9 and 10: A box does not need to be checked in Item 9 unless 
small business status is selected in Item 10. Applicants should be 
aware that they will be committed to their election choices. 
(Applicants are also requested to indicate their status as a rural 
telephone company, minority-owned business or woman-owned business as 
well, so the FCC can monitor its performance in promoting economic 
opportunities for these designated entities.) Be advised that this is 
the sole opportunity applicants have to elect small business status and 
bidding credit level (if applicable), and there is no opportunity to 
change the election(s) made once the short-form filing deadline passes.
    * Small or very small business applicants eligible for bidding 
credits should check that gross revenues do not exceed the maximum 
dollar amount specified in the FCC rules governing the auctionable 
service in Item 9.
    * Small or very small business applicants should enter the 
applicable bidding credit in Item 10: either 25 or 35 percent. 
Applicants should be aware that this is the sole opportunity that they 
will have to elect the appropriate bidding credit.
    * Applicants should leave the Installment Payment Plan Type blank, 
as none is available for this auction.
    Item 11: For each license on which they seek bidding eligibility, 
applicants must identify the market number in the Market No. column, 
and the frequency block or blocks in the Frequency Block column; 
frequency blocks are A and B for MEAs and C and D for REAGs. Applicants 
that wish to bid on all frequency blocks on all markets should check 
the ``ALL'' boxes in the Market No. and Frequency Block/Channel No. 
headings.
    Applicants should identify all licenses they want to be eligible to 
bid on in the auction in Item 11. Be advised

[[Page 12197]]

that there is no opportunity to change this list once the short-form 
filing deadline passes. The FCC Auction System will not accept bids on 
licenses an applicant has not applied for on its FCC Form 175.
    Item 12: Applicants must list the name(s) of the person(s) (no more 
than three) authorized to represent them at the auction. Only those 
individuals listed on the FCC Form 175 will be authorized to place or 
withdraw bids for the applicant during the auction.
    Certifications: Applicants should carefully read the list of 
certifications on the FCC Form 175. These certifications help to ensure 
a fair and competitive auction and require, among other things, 
disclosure to the Commission of certain information on applicant 
ownership and agreements or arrangements concerning the auction. 
Additionally, the applicant must certify that it is not in default on 
any Commission licenses and that it is not delinquent on any extension 
of credit from any federal agency. Submission of an FCC Form 175 
application constitutes a representation by the certifying official 
that he or she is an authorized representative of the applicant, has 
read the form's instructions and certifications, and that the contents 
of the application and its attachments are true and correct. Submission 
of a false certification to the Commission may result in penalties, 
including monetary forfeitures, license forfeitures, ineligibility to 
participate in future auctions, and/or criminal prosecution.
    Contact person: If the Commission wishes to communicate with the 
applicant by telephone or fax, those communications will be directed to 
the contact person identified on the FCC Form 175. Space is provided 
for a telephone number, fax number, and e-mail address. All written 
communications and registration information will be directed to the 
applicant's contact person at the address specified on the FCC Form 
175. Applicants must provide a street address; no P.O. Box addresses 
may be used.
    Completeness: Applicants must submit all information required by 
FCC Form 175 and by applicable rules. Failure to submit required 
information will result in dismissal of the application and inability 
to participate in the auction.
    Continuing Accuracy: Each applicant is responsible for the 
continuing accuracy and completeness of information furnished in the 
FCC Form 175 and its exhibits. See 47 CFR Section 1.65. It is the 
staff's position that ten business days from a reportable change is a 
reasonable period of time in which applicants must amend their FCC Form 
175s. Applicants are reminded that Certification (6) on FCC Form 175 
includes consent to be audited.

B. Exhibits and Attachments

    In addition to FCC Form 175 itself, applicants must submit 
additional information required by the FCC's rules. Although we do not 
require a particular organization or format for this information, we 
have developed the following guidelines that will facilitate the 
processing of short-form applications. We encourage applicants to 
submit this information using the following format. All exhibits must 
be in ASCII text (.TXT) format.
    Exhibit A--Applicant Identity and Ownership Information: 47 CFR 
Section 1.2105(a)(2) requires each applicant to fully disclose the real 
party or parties-in-interest in an exhibit to its FCC Form 175 
application. This information should provide the name, citizenship and 
address of all partners, if the applicant is a partnership; of a 
responsible officer or director, if the applicant is a corporation; of 
the trustee, if the applicant is a trust; or, if the applicant is none 
of the foregoing, list the name, address and citizenship of a principal 
or other responsible person.
    Exhibit B--Agreements with Other Parties/Joint Bidding 
Arrangements: Applicants must attach an exhibit identifying all parties 
with whom the applicant has entered into partnerships, joint ventures, 
consortia or other agreements, arrangement or undertakings of any kind, 
relating to the licenses being auctioned, including any such agreements 
relating to post-auction market structure. 47 CFR Section 
1.2105(a)(2)(viii).
    Be aware that pursuant to Certification (4) on the FCC Form 175, 
the applicant certifies that it will not enter into any explicit or 
implicit agreements or understandings of any kind with parties not 
identified in the application regarding the amount to be bid, bidding 
strategies or the particular licenses on which the applicant will or 
will not bid. See 47 CFR Section 1.2105(a)(2)(ix). To prevent 
collusion, the Commission's rules generally prohibit communications 
during the course of the auction among applicants for the same license 
areas when such communications concern bids, bidding strategies, or 
settlements. 47 CFR Section 1.2105(c).
    Exhibit C--Status as a Small or Very Small Business Applicant: 
Applicants claiming status as a small or very small business must 
attach an exhibit regarding this status.
    * Small or very small business applicants must state the average 
gross revenues for the preceding three years for the applicant 
(including affiliates), as prescribed by 47 CFR Section 27.210. 
Certification that the average gross revenues for the preceding three 
years do not exceed the required limit is not sufficient.
    Exhibit D--Information Requested of Designated Entities: Applicants 
owned by minorities or women as defined in 47 CFR Section 1.2110(b), or 
who are rural telephone companies, may attach an exhibit regarding this 
status. This information, in conjunction with the information in Item 
10, will assist the Commission in monitoring the participation of 
designated entities in its auctions.
    Exhibit E--Miscellaneous Information: Applicants wishing to submit 
additional information should include it in Exhibit E.
    Applicants are reminded that all information required in connection 
with applications to participate in spectrum auctions is necessary to 
determine the applicants' qualifications, and as such will be available 
for public inspection. Required proprietary information may be 
redacted, or confidentiality may be requested, following the procedures 
set out in 47 CFR Section 0.459. Any such requests should be submitted 
in writing to Kathleen O'Brien Ham, Chief, Auctions Division, Wireless 
Telecommunications Bureau, Federal Communications Commission, 2025 M 
Street, N.W., Room 5322, Washington, D.C., 20554 (with a separate copy 
mailed to Josh Roland, Auctions Division), in which case the applicant 
must indicate in Exhibit E that it has filed a confidentiality request. 
Because the required information bears on applicants' qualifications, 
the Commission envisions that confidentiality requests will not be 
routinely granted.
    Waivers: Applicants requesting waiver of any rules must submit a 
statement of reasons sufficient to justify the waiver sought.

Attachment D--Summary Listing of Documents From the Commission and the 
Wireless Telecommunications Bureau Addressing Application of the Anti-
Collusion Rules

    To date, discussion concerning the anti-collusion rules may be 
found in the following Commission and Bureau items:

Commission Decisions

    Second Report and Order in PP Docket No. 93-253, FCC 94-61, 9 FCC

[[Page 12198]]

Rcd 2348 (1994), 59 FR 22980 (May 4, 1994), paragraphs 221-226.
    Fifth Report and Order in PP Docket No. 93-253, FCC 94-178, 9 FCC 
Rcd 5532 (1994), 59 FR 37566 (July 22, 1994), paragraphs 91-92.
    Second Memorandum Opinion and Order in PP Docket No. 93-253, FCC 
94-215, 9 FCC Rcd 7245 (1994), 59 FR 44272 (Aug. 26, 1994), paragraphs 
48-55.
    Fourth Memorandum Opinion and Order in PP Docket No. 93-253, FCC 
94-264, 9 FCC Rcd 6858 (1994), 59 FR 24947 (May 18, 1994), paragraphs 
47-60.
    Memorandum Opinion and Order in PP Docket No. 93-253, FCC 94-295, 9 
FCC Rcd 7684 (1994), 59 FR 64159 (Dec. 13, 1994), paragraphs 8-12.

Wireless Telecommunications Bureau Decisions

    Order in PP Docket No. 93-253 and MM Docket No. 94-131, DA 95-2292, 
(released November 3, 1995).

Public Notices

    ``Wireless Telecommunications Bureau Clarifies Spectrum Auction 
Anti-Collusion Rules,'' Public Notice, DA 95-2244 (released October 26, 
1995).
    ``Wireless Telecommunications Bureau Provides Guidance on the Anti-
Collusion Rule for D, E and F Block Bidders,'' Public Notice, DA 96-
1460 (released August 28, 1996).

Letters From the Office of General Counsel and the Wireless 
Telecommunications Bureau

    Letter to Gary M. Epstein and James H. Barker from William E. 
Kennard, General Counsel, Federal Communications Commission (released 
October 25, 1994).
    Letter to Alan F. Ciamporcero from William E. Kennard, General 
Counsel, Federal Communications Commission (released October 25, 1996).
    Letter to R Michael Senkowski from Rosalind K. Allen, Acting Chief, 
Commercial Radio Division, Wireless Telecommunications Bureau (released 
December 1, 1994).
    Letter to Leonard J. Kennedy from Rosalind K. Allen, Acting Chief, 
Commercial Radio Division, Wireless Telecommunications Bureau (released 
December 14, 1994).
    Letter to Jonathan D. Blake and Robert J. Rini from Kathleen 
O'Brien Ham, Chief, Auctions Division, Wireless Telecommunications 
Bureau, DA 95-2404 (released November 28, 1995).
    Letter to Mark Grady from Kathleen O'Brien Ham, Chief, Auctions 
Division, Wireless Telecommunications Bureau, DA 96-587 (released April 
16, 1996).
    Letter to David L. Nace from Kathleen O'Brien Ham, Chief, Auctions 
Division, Wireless Telecommunications Bureau, DA 96-1566 (released 
September 17, 1996).

[FR Doc. 97-6418 Filed 3-13-97; 8:45 am]
BILLING CODE 6712-01-P


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