Federal Register / Vol. 62, No. 53 / Wednesday, March 19, 1997 / Notices 13009

number of respondents impacted by this

collection.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

[FR Doc. 97–6899 Filed 3–18–97; 8:45 am]

BILLING CODE 6712–01–F

[DA 97–477; Report No. AUC 97–01]

Auction of Satellite Digital Audio Radio

Service; Auction Notice and Filing

Requirements For 2 DARS Licenses

Scheduled for April 1, 1997

AGENCY: Federal Communications

Commission.

ACTION: Notice.

SUMMARY: The Wireless

Telecommunications Bureau announced

the application procedures for the

upcoming DARS auction (Auction #15)

in a Public Notice dated March 6, 1997.

The auction is scheduled to begin on

April 1, 1997 and will consist of two

nationwide licenses. The purpose and

intent of the notice is to inform the

general public and the four DARS

applicants of the auction procedures the

Commission will utilize in Auction #15

and the filing requirements to become

an eligible bidder.

FOR FURTHER INFORMATION CONTACT:

Amy Zoslov, Christina Clearwater, or

Ruby Hough, Wireless

Telecommunications Bureau, at (202)

418–0660, or Rosalee Chiara, at (202)

418–0754, or Ron Repasi, at (202) 418–

0768, of the International Bureau.

SUPPLEMENTARY INFORMATION:

1. Auction Date: 9 a.m., Eastern Time,

April 1, 1997. The precise schedule for

bidding will be announced by Public

Notice prior to the start of the auction.

2. Auction Methodology:

Simultaneous multiple round auction.

Bidding will be permitted only at the

FCC Auction site, 2 Massachusetts

Avenue, NE., Washington, DC. (adjacent

to Union Station; entrance on North

Capitol Street). Telephonic bids and

electronic bids from remote locations

will not be accepted.

3. Licenses to be Auctioned: Two

nationwide licenses will be auctioned in

the satellite Digital Audio Radio Service

(‘‘DARS’’). Licenses will authorize

service on 12.5 MHz of spectrum over

the continental United States located in

the S-band of 2320–2354 MHz.

License No. Spectrum

authorized

EBN001 ....................... 2320–2332.5 MHz

EBN002 ....................... 2332.5–2345 MHz

In addition to the Supplemental

Information described below, applicants

must indicate to the FCC the license(s)

on which they intend to bid.

4. Closed Auction: Participation in

this auction will be limited to the

following four entities: American

Mobile Radio Corporation, Digital

Satellite Broadcasting Corporation,

Primosphere Limited Partnership, and

Satellite CD Radio, Inc.

5. Pre-Auction Deadlines:

*Supplemental Information

5:30 p.m., ET, on the fifth day from

publication of the DARS rules in

the Federal Register. This day will

be specified in a subsequent Public

Notice.

*Upfront Payment of $3 million (by

Wire Transfer)

3 p.m., ET, Fri., March 28, 1997

*Auction Registration

2 p.m.–3 p.m., ET, March 31, 1997

*Mock Auction

3 p.m.–5 p.m., ET, March 31, 1997

6. Prohibition of Collusion: To ensure

the competitiveness of the auction

process, the FCC’s rules prohibit all

applicants from communicating with

each other during the auction about

bids, bidding strategies, or settlements.

This prohibition begins with the filing

deadline of the Supplemental

Information and ends when bidders

submit down payments.

7. Telephone Contacts:

• FCC Technical Support Hotline: (202)

414–1250

• Wireless Bureau—Auctions Division

—Amy Zoslov: (202) 418–0660

—Ruby Hough: (202) 418–0660

—Christina Clearwater: (202) 418–0660

• International Bureau

—Rosalee Chiara: (202) 418–0754

—Ron Repasi: (202) 418–0768

8. List of Attachments:

• Attachment A:

Federal Communications Commission

DARS Licenses Auction; Auction

Specific Instructions, FCC

Remittance Advice, FCC Form 159

• Attachment B:

FCC Remittance Advice (FCC Form

159) and Instructions for Using FCC

Form 159 (Remittance Advice)

I. Introduction

9. Those wishing to participate in the

DARS auction must submit certain

supplemental information

(’’Supplemental Information’’) in

accordance with the Commission’s rules

and the instructions in this Public

Notice. The FCC will not issue a Bidder

Information Package for this auction. All

information necessary to participate in

this auction will be available through

this Public Notice, subsequent Public

Notices, or the Commission’s Rules. See

47 CFR § 1.2101–1.2103, 1.2104(a)

through (f), (h) and (i), and 25.401–

25.406; Establishment of Rules and

Policies for the Digital Audio Radio

Satellite Service in the 2310–2360 MHz

Frequency Band, Report and Order,

Memorandum Opinion and Order, and

Further Notice of Proposed Rulemaking,

FCC 97–70 (released March 3, 1997)

(’’DARS Report and Order’’).

10. The Supplemental Information

must be received no later than 5:30 p.m.

Eastern Time on the fifth day from the

publication of the DARS rules in the

Federal Register. This date will be

specified in a subsequent Public Notice.

Applicants for the DARS auction must

file their Supplemental Information

manually pursuant to the instructions

set forth in this Public Notice.

11. Applicants will be required to

submit an upfront payment (in U.S.

dollars) to be eligible to participate in

the auction. The upfront payment shall

be made by wire transfer and must be

received by 3 p.m. Eastern Time on

March 28, 1997, at the Mellon Bank in

Pittsburgh, Pennsylvania.

12. Prospective bidders must

familiarize themselves thoroughly with

the procedures, terms and conditions

contained in this Public Notice. The

rules contained in the DARS Report and

Order in IB Docket No. 95–91 and GEN

Docket No. 90–357, FCC 97–70 (released

March 3, 1997), this Public Notice, and

subsequent Public Notices 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.

13. The information contained in this

Public Notice may be subsequently

amended or supplemented by the FCC

or the Wireless Telecommunications

Bureau at any time. The Wireless

Telecommunications Bureau will issue

Public Notices to convey new or

supplemental information to

prospective bidders. It is the

responsibility of all prospective bidders

to remain fully informed regarding all

FCC rules and Public Notices pertaining

to this auction. FCC Public Notices and

other FCC documents may be obtained

for a fee by calling the FCC duplication

contractor, International Transcription

Services, Inc., at (202) 857–3800.

Additionally, prospective bidders may

retrieve some of these documents from

the FCC Internet site using ftp to

connect as anonymous@ftp.fcc.gov, or

via the world wide web at www.fcc.gov.
13010 Federal Register / Vol. 62, No. 53 / Wednesday, March 19, 1997 / Notices

II. Bidder Eligibility and Pre-Auction

Procedures

14. In order to be eligible to bid in the

DARS auction, bidders must: (1) Satisfy

the Commission’s eligibility

requirements, (2) submit the

Supplemental Information, and (3) remit

an upfront payment in compliance with

applicable FCC rules and regulations.

A. Eligibility Requirements

15. Eligibility to participate in this

auction is reserved for those four parties

who filed DARS applications by the

December 15, 1992 cut-off date. They

are as follows:

1. American Mobile Radio Corporation

2. Digital Satellite Broadcasting

Corporation

3. Primosphere Limited Partnership

4. Satellite CD Radio, Inc.

16. Bidders may win only one license,

and as such will be permitted to be

active on only one license at a time.

However, bidders will be permitted to

bid on either license during the course

of the auction provided they indicate

this intention in their Supplemental

Information (see below).

B. Supplemental Information

17. In order to be eligible to bid,

applicants must submit Supplemental

Information to the Commission. For this

auction, the Supplemental Information

will replace the FCC Form 175 that the

FCC has used in previous auctions. This

information must be received by the

FCC no later than 5:30 p.m. Eastern

Time on the fifth day from the

publication of the DARS rules in the

Federal Register. This date will be

specified in a subsequent Public Notice.

Late Supplemental Information will not

be accepted. This supplemental

information must be submitted by hand

delivery, by certified U.S. mail, or by

private courier. Electronic submissions

will not be accepted. Applicants should

carefully review 47 CFR 1.2101–1.2103,

1.2104(a) through (f), (h) and (i), and

25.401–25.406 of the Commission’s

rules before submitting the

Supplemental Information.

Required Supplemental Information

18. Because the FCC Form 175 is not

required, bidders must submit the

following supplemental information in

printed form:

a. Applicant Name.

b. Mailing Address: 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 contact

person (specified in item j. below) at

this address.

c. City.

d. State.

e. Zip Code.

f. Auction Number 15.

g. FCC Account Number: 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.

h. Authorized Bidder(s): 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

Supplemental Information filing will be

authorized to place or withdraw bids for

the applicant during the auction.

i. Name and Title of Person Certifying:

Applicants should carefully read the

following list of certifications. 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.

The applicant must indicate the name

and title of the certifying official.

Submission of the Supplemental

Information constitutes a representation

by the certifying official that he or she

is an authorized representative of the

applicant, has read this Public Notice’s

instructions and certifications, and that

the contents of the Supplemental

Information 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.

Applicants must certify the following:

(a) The applicant is legally,

technically, financially and otherwise

qualified pursuant to 308(b) of the

Communications Act and the

Commission’s rules and, to the extent

that it applies, is in compliance with the

foreign ownership provisions contained

in section 310 of the Communications

Act;

(b) The applicant is the real party-ininterest in this application and that

there are no agreements or

understandings other than those

specified in the Supplemental

Information, which provide that

someone other than the applicant shall

have an interest in the license;

(c) The applicant is aware that, if

upon Commission inspection, this

Supplemental Information is shown to

be defective, the application may be

dismissed without further

consideration, and certain fees forfeited.

Other penalties may also apply;

(d) The applicant, upon the deadline

for filing the Supplemental Information,

will not cooperate, collaborate, discuss,

or disclose in any manner the substance

of its bids or bidding strategies, or

discuss or negotiate settlement

agreements with other applicants until

after the high bidder makes the required

down payment;

(e) The applicant, or any party to this

Supplemental Information, is not

subject to a denial of federal benefits

pursuant to Section 5301 of the AntiDrug Abuse Act of 1988; and

(f) The applicant is and will, during

the pendency of its application and

Supplemental Information, remain in

compliance with any service-specific

qualifications applicable to the license

on which the applicant intends to bid

including, but not limited to, financial

qualifications.

(g) The applicant is not in default on

any Commission authorizations and it is

not delinquent on any extension of

credit from any federal agency.

j. 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

Supplemental Information. Please

provide a telephone number, fax

number, and e-mail address (if

available). All written communications

and registration information will be

directed to the applicant’s contact

person at the address specified on the

Supplemental Information. Applicants

must provide a street address; no Post

Office Box addresses may be used.

k. Signature and Date: The

Supplemental Information must bear an

original signature of the certifying

official. Absence of an original signature
Federal Register / Vol. 62, No. 53 / Wednesday, March 19, 1997 / Notices 13011

will result in dismissal of the

application and disqualification from

participation in the auction.

•• In addition to this Supplemental

Information, applicants must indicate

the license(s) on which they intend to

bid (i.e., EBN001 and/or EBN002).

After the submission deadline for the

supplemental information, the

Commission will issue a Public Notice

which will identify qualified and nonqualified applicants and the licenses for

which each qualified applicant has

applied. All applications are still subject

to FCC approval.

C. Filing of Supplemental Information

19. Auction applicants must file their

Supplemental Information in hard copy.

Whether the Supplemental Information

is mailed, hand delivered or sent by

private courier, it must be sent to:

Office of the Secretary, Attn: Auction 15

Supplemental Information Processing,

Federal Communications

Commission, 1919 M Street, NW.,

Room 222, Washington, DC 20554

20. Failure to sign Supplemental

Information will result in dismissal of

the application and inability to

participate in the auction. Only original

signatures will be accepted.

D. Application Fee

21. There is no application fee

required when filing Supplemental

Information. However, to be eligible to

bid, an applicant must submit an

upfront payment. See Section E below.

E. Upfront Payments

22. In order to be eligible to bid in the

auction, applicants must submit an

upfront payment together with an FCC

Remittance Advice Form (FCC Form

159) to Mellon Bank.

23. All payments must be made in

U.S. dollars and must be in the form of

a wire transfer. Payments must be

received by 3:00 p.m. Eastern Time,

Friday, March 28, 1997. Failure to

deliver the upfront payment in a timely

manner will result in dismissal of the

application and inability to participate

in the auction.

(1) Amount of Upfront Payments

24. The upfront payment required to

participate in the auction is $3 million.

This fully qualifies bidders to

participate on either license. See DARS

Report and Order.

(2) Making Auction Payments by Wire

Transfer

25. To make an auction payment by

wire transfer, an applicant must fax a

completed FCC Remittance Advice

Form (FCC Form 159) to Mellon Bank at

(412) 236–5702 at least one hour prior

to placing the order for the wire transfer

(but on the same business day). On the

cover sheet of the fax, the applicant

should write ‘‘Wire Transfer—Auction

Payment for Auction Event #15’’. To

submit funds by wire transfer, you will

need the following information:

ABA Routing Number: 043000261

Receiving Bank: Mellon Pittsburgh

BNF: FCC/AC—910–0198

OBI Field: (Skip one space between

each information item)

‘‘AUCTIONPAY’’

FCC ACCOUNT NO. (SAME AS ITEM

(g) ON SUPPLEMENTAL

INFORMATION)

PAYMENT TYPE CODE (ADAU)

FCC CODE (‘‘15’’ INDICATING

AUCTION 15)

PAYOR NAME (SAME AS ITEM (a) ON

SUPPLEMENTAL INFORMATION)

LOCKBOX NO. 358410

26. Given the abbreviated time period

in which the Wireless

Telecommunications Bureau must

confirm receipt of upfront payments, the

Bureau will require applicants to bring

to the registration a wire transfer

confirmation receipt from their bank

certifying that the upfront payment

funds have been transferred to the FCC

account. This confirmation will serve as

a reserve method to confirm that the

required funds have been transferred to

the FCC if there is any delay in

obtaining electronic confirmation.

27. Detailed directions for completing

the FCC Form 159 and a sample form

are attached to this Public Notice.

III. Registration for the Auction

28. Only qualified applicants who

have submitted timely upfront

payments will be permitted to register

for the auction. Registration will occur

on March 31, 1997, from 2 p.m. ET to

3 p.m. ET at the FCC auction site. At

least one authorized representative as

stated in the applicant’s Supplemental

Information must register. This

representative must have two forms of

identification, one of which must be a

photo identification. At the end of the

registration process, bidders will be in

possession of the following information:

• FCC Account Number (self-assigned

in the Supplemental Information)

• Bidder Identification Number

• Login Name

• Login Password

29. All applicants will be preregistered prior to the auction event.

30. Qualified bidders must be aware

that lost login codes, passwords or

bidder identification numbers can be

replaced and/or distributed only at the

FCC auction site located at 2

Massachusetts Avenue, NE,

Washington, DC 20002. Please be

advised that an authorized

representative or certifying official, as

designated on an applicant’s

Supplemental Information, must appear

in person at the auction site with two

forms of identification (one of which

must be a photo identification) in order

to receive replacement codes.

31. The FCC will allow qualified

bidders an opportunity to use the

bidding software following registration

on March 31, 1997 from 3 p.m. ET to 5

p.m. ET. Specific instructions for the

mock auction will be provided at

registration.

IV. Auction Event and Bidding Rounds

32. The DARS auction will begin at 9

a.m. Eastern Time on Tuesday, April 1,

1997. Initially, bidding rounds are

expected to last 30 minutes to allow

bidders to become familiar with the bid

submission process. The FCC expects

the length of the bidding rounds to

decrease as the auction progresses. The

Commission will adjust the pace of the

auction based on its monitoring of the

bidding and assessment of auction

progress. The precise schedule for

bidding will be included in the

registration package.

V. Auction Procedures

33. The two DARS licenses will be

auctioned simultaneously. The high bid

amount will be posted after the end of

the bidding period. Information

regarding all valid bids submitted in

each round also will be posted.

A. Bid Submission and Withdrawal

Procedures

(1) Bid Submission

34. Bidders must place their bids

electronically at the FCC auction site.

Each bidder will be required to log in

to the FCC auction computer system,

using a login name and login password

unique to that bidder, and in addition

must provide its Bidder Identification

Number and FCC Account Number in

order to place or withdraw a bid.

35. All accepted bids and the

minimum valid bid amount for the next

round will be announced after the

conclusion of each bidding period.

Bidders may receive a hard copy bid

confirmation after they have submitted

their bids by pressing the Print Bid

Verification button on the Options

screen.

36. Bidders will have the option of

making multiple submissions in each

bidding period. This is a change in the

procedures from previous auctions. If a

bidder enters multiple bids for a license
13012 Federal Register / Vol. 62, No. 53 / Wednesday, March 19, 1997 / Notices

in the same round, the system takes the

last bid entered as that bidder’s bid for

the round. A bidder changing or

removing a bid placed in the same

round is not subject to bid withdrawal

payments.

37. Only persons authorized in the

applicant’s Supplemental Information to

make or withdraw a bid will be allowed

to enter the bidding booth. Each

authorized representative will be

required to show photo identification to

enter the bidding booth.

(2) Bid Withdrawals

38. A high bidder that withdraws its

standing high bid is subject to the bid

withdrawal payment specified in

§ 1.2104(g)(1) of the Commission’s rules.

Bid withdrawal will be permitted only

after a round in which there have been

no new bids or proactive waivers. After

a round with no new bids or proactive

waivers, the Commission will specify a

bid withdrawal period. If one or both of

the standing high bids from a previous

round are withdrawn, the Commission

will reoffer the license or licenses in the

next round. To prevent multiple

withdrawals by the same party in the

same auction, the Commission will bar

a bidder who withdraws a bid from

continued participation in that auction.

39. The offer price for a withdrawn

license will be the highest price at or

above which bids were made by four

distinct bidders in any previous round

and on any license. If there is no price

at or above which bids were made in

previous rounds by four bidders, then

the Commission will reoffer the license

in the next round at the minimum

opening bid for the license. The

Commission may at its discretion

reduce the offering price in subsequent

rounds if it receives no bids at this

price. Prior to restarting the auction, the

Commission will also restore the

eligibility of all bidders who have not

withdrawn. If eligibility is not restored,

it is possible, given the activity rules,

that no bidders would be eligible to bid

when a license is reoffered after a bid

withdrawal. Restoring eligibility of all

but those who withdrew will ensure the

maximum number of sincere bidders for

the license when the auction is

restarted. After a withdrawal, the

Commission will also issue each eligible

bidder one activity rule waiver in

addition to any remaining waivers,

subject to a maximum of three, to

provide additional time for bid

preparation and to avoid accidental

disqualification.

B. Minimum Opening Bid, Bid

Increments, and Tie Bids

(1) Minimum Opening Bid

40. The FCC believes that it is useful

to have a minimum opening bid to help

move the auction along. Therefore, the

Commission has established a minimum

opening bid of $8 million each for these

licenses. Based on our observations of

the market, the FCC believes this

minimum opening bid is high enough to

move the auction along at a rapid pace,

but significantly below the expected

final bid for the spectrum. See DARS

Report and Order, para. 159.

(2) Bid Increments

41. The minimum bid increment is

the amount or percentage by which a

bid must be raised above the previous

high bid in order to be accepted as a

valid bid in the current round. The

amount of the minimum valid bid for

each license (generally, the sum of the

minimum bid increment and the high

bid from the previous round) will be

announced at the beginning of each

round. See 47 CFR 25.402.

42. Once a bid has been received for

a license, the minimum bid increment

will be ten (10) percent of the previous

high bid on that license. The

Commission retains the discretion to

establish, raise and lower minimum bid

increments in the course of the auction.

This discretion is necessary to ensure

that the Commission can efficiently

control the pace of the auction.

(3) Tie Bids

43. Each bid will be date and time

stamped when it is entered into the

computer system. In the event of tie

bids, the Wireless Telecommunications

Bureau will identify the high bidder on

the basis of the order in which bids are

received, starting with the earliest bid.

See 47 CFR 25.402.

C. Activity Rules

44. In order to ensure that the auction

closes within a reasonable period of

time, the Commission will impose an

activity rule to discourage bidders from

waiting until the end of the auction

before participating. See generally 47

CFR 25.402.

(1) Activity Requirements

45. Bidders must be active on one

license in each round of the auction or

use an activity rule waiver, as defined

below. Bidders will not be permitted to

be active on more than one license in a

single round. To be active in the current

round, a bidder must submit a valid bid

in the current round or have the high

bid from the previous round. A bidder

who is not active in a round and has no

remaining activity rule waivers will no

longer be eligible to bid on the licenses

being auctioned. However, as discussed

above, in the event of a bid withdrawal,

the eligibility of all bidders who have

not withdrawn will be restored.

(2) Activity Rule Waivers

46. Bidders will be provided three

activity rule waivers that may be used

in any round during the course of the

auction. A waiver will preserve

eligibility in the next round. Waivers

may be applied automatically by the

Commission or invoked proactively by

bidders. If a bidder is not active in a

round, a waiver will be applied

automatically if any waivers remain. An

automatic waiver applied in a round in

which there are no new valid bids will

not keep the auction open. A proactive

activity rule waiver is a waiver invoked

by a bidder during the bidding period.

If a bidder submits a proactive waiver in

a round in which no other bidding

activity occurs, the auction will remain

open. Therefore, 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.

47. The Commission retains the

discretion to issue additional waivers

during the course of the auction for

circumstances beyond a bidder’s control

or in the event of a bid withdrawal, as

discussed above.

D. Stopping Rules

48. A stopping rule specifies when an

auction is over. The auction will close

after one round passes in which no new

valid bids or proactive waivers are

submitted on both licenses, subject to

the following two qualifications. First, if

a high bidder withdraws its bid during

the bid withdrawal period the

Commission will reoffer the license in

the next round as specified in Section

A.2 above. Second, the Commission

retains the discretion to keep an auction

open even if no new valid bids and no

proactive waivers are submitted. In the

event that the Commission exercises

this discretion, the effect will be the

same as if a bidder had submitted a

proactive waiver. See Implementation of

Section 309(j) of the Communications

Act—Competitive Bidding, Second

Report and Order, 59 FR 22980 (May 4,

1994).

VI. Delay, Suspension or Cancellation

of the Auction

49. The Commission may, by Public

Notice or by announcement during the

auction, delay, suspend or cancel the

auction in the event of natural disaster,
Federal Register / Vol. 62, No. 53 / Wednesday, March 19, 1997 / Notices 13013

technical obstacle, evidence of auction

security breach, unlawful bidding

activity, administrative necessity, or for

any other reason that affects the fair and

competitive conduct of competitive

bidding. In such cases, the Commission

may, in its sole discretion, resume the

auction starting from the beginning of

the current or some previous round or

cancel the auction in its entirety.

VII. Default and Disqualification

Payments

50. A default payment will be

assessed if a winning bidder fails to pay

the full amount of its 20 percent down

payment or the balance of its winning

bid in a timely manner, or is

disqualified after the close of an

auction. The amount of this default

payment will be equal to the difference

between the defaulting auction winner’s

‘‘winning’’ bid and the amount of the

winning bid the next time the license is

offered for auction by the Commission,

if the latter bid is lower. In addition, the

defaulting auction winner will be

required to submit a payment of three

percent of the subsequent winning bid

or three percent of its own ‘‘winning’’

bid, whichever is less. See 47 CFR

25.406. In the event that the amount of

those payments cannot be determined

(i.e., until the license has been

reauctioned), the FCC can require a

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

and at most twenty (20) 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 Will Strictly

Enforce Default Payment Rules, Public

Notice, 61 FR 16914 (April 18, 1996).

51. If withdrawal, default or

disqualification involves gross

misconduct, misrepresentation or bad

faith by an applicant, the Commission

retains the option to declare the

applicant and its principals ineligible to

bid in future auctions, or take any other

actions the Commission deems

necessary, including institution of

proceedings to revoke any existing

licenses held by the applicant. See

Implementation of section 309(j) of the

Communications Act—Competitive

Bidding, Second Report and Order.

VIII. Releasing Bidder Identities

52. Bidders’ identities and FCC

account numbers will be disclosed prior

to the auction. Thus, bidders will know

in advance of the auction the identities

of the bidders against whom they are

bidding.

IX. Collusion

53. To prevent collusion, § 25.405 of

the Commission’s rules prohibits

applicants, after the deadline for filing

Supplemental Information and before

down payments are submitted, from

cooperating, collaborating, discussing,

or disclosing in any manner the

substance of their bids or bidding

strategies, or discussing or negotiating

settlement agreements with other

applicants. See 47 CFR 25.405.

X. Post-Auction Procedures

A. Down Payment

54. The winning bidder for each

license must submit sufficient

additional funds (a ‘‘down payment’’) to

bring the amount of money on deposit

(not including upfront payments

applied to satisfy bid withdrawal or

default payments) with the government

to 20 percent of its winning bid within

ten (10) business days after the high

bidder is announced. See 47 CFR

25.404.

55. Specific information regarding the

submission of down payments will be

included in the Public Notice

announcing the winning bidders.

B. Submission of License Application

and Award of Licenses

56. The winning bidder for each

license also will be required to file

information in conformance with part

25 of the Commission’s rules. This

procedure will constitute the ‘‘long-form

application’’ process referred to in our

general auction rules. Winning bidders

must file this information with the

Commission within 30 days of the

publication of the Public Notice

announcing the winning bidders.

Winning bidders must submit, as part of

this post-auction application process, a

signed statement describing their efforts

to date and future plans to come into

compliance with any applicable

spectrum limitations, if they are not

already in compliance. See 47 CFR

25.404.

57. After reviewing a winning

bidder’s information supplied in

conformance with Part 25 and

determining that the bidder is qualified

to be a licensee, and after verifying

receipt of the bidder’s 20 percent down

payment, the Commission will

announce the application’s acceptance

for filing in a Public Notice, thus

triggering the filing window for

petitions to deny. If, pursuant to section

309(d) of the Communications Act, the

Commission dismisses or denies any

and all petitions to deny, the

Commission will issue a Public Notice

announcing this, and the winning

bidder will then have ten business days

to submit the balance of its winning bid.

If the bidder does so, the license will be

granted subject to a condition, if

necessary, that the permittee come into

compliance with any applicable

spectrum limitations within 12 months

of the final grant. The licensee may

come into compliance with this

spectrum cap by either surrendering to

the Commission its excess channels or

filing an application that would result

in divestiture of the excess channels. If

the bidder fails to submit the balance of

the winning bid or the license is

otherwise denied, the FCC will assess a

default payment as set forth above and

reauction the license. See Section VII of

this Public Notice.

C. Refund of Upfront Money

58. All applicants who submitted

upfront payments, yet were not winning

bidders, may be entitled to a refund of

their upfront payments after the

conclusion of the auction. Any refund

will be conditioned upon the existence

of excess funds on deposit after any

applicable bid withdrawal payments

have been deducted.

59. Because experience with prior

auctions has shown that in most cases

wire transfers provide quicker and more

efficient refunds than paper checks, the

FCC currently intends to use wire

transfers for all Auction 15 refunds. To

avoid delays in processing refunds,

applicants should include wire transfer

instructions with any refund request

they file; they may also provide this

information in advance by faxing it to

the FCC Billings and Collections

Branch, ATTN: Regina Dorsey or

Linwood Jenkins, at 202–418–2843.

(Applicants should also note that

implementation of the Debt Collection

Improvement Act of 1996 requires the

FCC to obtain a Taxpayer Identification

Number before it can disburse funds.) In

lieu of faxing, please mail the

information to:

Federal Communications Commission,

ATTN: Linwood Jenkins, 1919 M

Street, NW., Room 450, Washington,

DC 20554

D. Construction Requirements

60. Licensees in satellite DARS must

begin construction of or complete

contracting for construction of their

space stations within one year of license

grant; launch and begin operating their

first satellite within four years; and

begin operating their entire system

within six years. Failure to meet these

milestone requirements will result in

forfeiture of the license, and the licensee

will be ineligible to regain it. See 47

CFR 25.214(b).
13014 Federal Register / Vol. 62, No. 53 / Wednesday, March 19, 1997 / Notices

XI. Bidder Alert

61. The terms contained in the

Commission’s Rules, Reports, Orders,

and Public Notices 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 making any bid.

62. All applicants must certify under

penalty of perjury on their

Supplemental Information that they are

legally, technically, financially and

otherwise qualified to hold a DARS

license. 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, being

barred from participating in future

auctions, and/or criminal prosecution.

63. The FCC makes no representations

or warranties about the use of this

spectrum for particular services.

Applicants should be aware that an FCC

auction represents an opportunity to

become an FCC licensee in this service,

subject to certain conditions and

regulations. An FCC auction does not

constitute an endorsement by the FCC of

any particular services, technologies or

products, nor does an FCC license

constitute a guarantee of business

success. Applicants should perform

their individual due diligence before

proceeding as they would with any new

business venture.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

Attachment A—Federal Communications

Commission; DARS Licenses Auction

Auction Specific Instructions FCC

Remittance Advice, FCC Form 159

Upfront Payments

The following instructions are specifically

written for the auction of DARS licenses.

These instructions are intended as a

supplement to the standard instructions

issued by the FCC’s Billings and Collections

Branch, at telephone number (202) 418–1995.

Bidders should ensure that they complete the

FCC Form 159 accurately, since mistakes

may affect their bidding eligibility. Please

note that it is vital that all forms,

applications, correspondence, etc. submitted

to the Commission by an applicant contain

identical information necessary for

verification purposes. To this end,

appropriate references between the FCC

Form 159 Remittance Advice and the

Supplemental Information have been

provided below:

Block No. Required information

1 ............. FCC Account Number—Same as Supplemental Information item ‘‘g’’. 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.

2 ............. Total Amount Paid—Enter the total remittance based on the payment amount. To bid in this auction, the upfront payment is

$3,000,000.

3 ............. Payor Name—Enter the full name of the person or company (i.e., maker of the check) responsible for payment.

4 ............. Street Address (Line 1)—Same as Supplemental Information item ‘‘b’’. The street address to which correspondence should be sent.

5 ............. Street Address (Line 2)—Same as Supplemental Information item ‘‘b’’. This line may be used if further identification of the address

is required.

6 ............. City—Same as provided in Supplemental Information item ‘‘c’’. The name of the city associated with the street address given in

block (4) of the FCC Form 159.

7 ............. State—Same as provided in Supplemental Information item ‘‘d’’. Enter the appropriate two-character abbreviation here.

8 ............. Zip Code—Same as provided in Supplemental Information item ‘‘e’’. Enter the appropriate five-digit or nine-digit code here.

9 ............. Daytime Telephone Number—Same as provided in Supplemental Information item ‘‘j’’. Enter the ‘‘payor’s’’ ten-digit telephone number here.

10 ........... Country Code—Used for payors who have addresses outside the U.S. Proper codes may be obtained from the Mailing Requirements Dept. of the U.S. Postal Service.

Note—If applicant, licensee, regulatee or debtor is the same as the payor, do not complete blocks 11, 13, 18, 19, 20, & 21. This auction does

not involve multiple applications or filings, so the FCC is concerned only with the remaining blocks 12A, 14A, 15A, 16A & 17A.

Item # ‘‘1’’ information

12A ......... FCC Call Sign/Other Identifier—Leave blank.

14A ......... Payment Type Code—Enter A D A U.

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

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

17A ......... FCC Code 1—Enter the number ‘‘15’’.

Note. In the upper left hand corner of the FCC form 159 is a rectangle with the word ‘‘(RESERVED)’’ typed in the middle of it. Please enter

the number ‘‘358410’’ somewhere in this rectangle.

BILLING CODE 6712–01–P
Federal Register / Vol. 62, No. 53 / Wednesday, March 19, 1997 / Notices 13015

Attachment B.—FCC Remittance Advice (FCC Form 159) and Instructions for Using FCC Form 159 (Remittance Advice)
13016 Federal Register / Vol. 62, No. 53 / Wednesday, March 19, 1997 / Notices
Federal Register / Vol. 62, No. 53 / Wednesday, March 19, 1997 / Notices 13017
13018 Federal Register / Vol. 62, No. 53 / Wednesday, March 19, 1997 / Notices
Federal Register / Vol. 62, No. 53 / Wednesday, March 19, 1997 / Notices 13019

[FR Doc. 97–6832 Filed 3–18–97; 8:45 am]

BILLING CODE 6712–01–C